Loading...
HomeMy WebLinkAbout04-07-2021 Agenda PacketIMPORTANT COVID-19 NOTICE In an effort to protect public health and prevent the spread of COVID-19 and to enable appropriate social distancing , the Mayor and City Council meeting is not open f or public attendance at this time. All meeting s will be held via tele-conf erence. To view the live meeting: Select the link to view the live-stream on the City’s website: http://sbcity.tiny.us/mcc04072021 or Spectrum & Frontier customers may view the broadcast on Channel 3. You may also view the archived video on the City’s website the day after the meeting. To provide public comments: Submit a written comment online via http://sbcity.tiny.us/comments ; Or Email your written comment to publiccomments@sbcity.org by 4:00 p.m. the day of the scheduled meeting; or Call (909)384-5208 and leave a recorded comment not to exceed three (3) minutes by 4:00 p.m. the day of the scheduled meeting. The subject line of your email should include the meeting date, w hether your comment is for the Special Meeting, Closed Session, or Open Session, and w hether it is for public comment or for a specific agenda item. Example: 04/7/21 – Open Session - Agenda Item No. 5 To provide public comments for a Public Hearing: Send an email to publiccomments@sbcity.org by 4:00 p.m. the day of the scheduled meeting. Include your name, telephone number, and the agenda item number. At the time of the requested agenda item, the City Clerk will call the commenter. Each person will be allowed to speak f or up to three-minutes. W ritten comments will be provided to the Mayor and City Council prior to the meeting and will be posted online f or public review, but will not be read aloud. Voicemail comments will be played aloud during the appropriate public comment portion of the meeting. Please note that written & recorded comments received after the deadline will not be included in the record until the next regular meeting. Recorded comments received past the deadline will not be played during the meeting. T o view PowerPoint presentations, written comments, or any revised documents for this meeting date select the link below: https://edocs.sbcity.org/WebLink/Browse.aspx?id=4120202&dbid=0&repo=SB Or visit the City Clerk’s page: From the City’s homepage www.sbcity.org select the Government category-> City Clerkon the Navigation menu select Search for Records Online-> Council Agendas->Current Year 2021->Meeting Date CITY OF SAN BERNARDINO AG ENDA 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, APRIL 7, 2021 5:30 PM – CLOSED SESSION 7:00 PM – OPEN SESSION VIA ZOOM • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez John Valdivia Damon L. Alexander COUNCIL MEMBER, W ARD 1 MAYOR COUNCIL MEMBER, WARD 7 Sandra Ibarra Robert D. Field MAYOR PRO TEM, 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 CITY CLERK Ben Reynoso COUNCIL MEMBER, W ARD 5 Kimberly Calvin COUNCIL MEMBER, W ARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. o Written comment on any item may also be submitted to the City Clerk to be included in the meeting record. It will not be read aloud by the City Clerk. o Those who wish to speak on public or quasi-judicial hearing items will have three minutes for each item. o 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. Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 4/2/2021 CALL TO ORDER Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez    Mayor Pro-Tem, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Ben Reynoso    Council Member, Ward 6 Kimberly Calvin    Council Member, Ward 7 Damon L Alexander    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    5:30 P.M. CLOSED SESSION PUBLIC COMMENT CLOSED SESSION A. PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS Pursuant to Government Code Section 54957 (Discussion of evaluation procedures and preparation for annual evaluation of Mayor and Council appointees) Title: City Manager Title: City Attorney Title: City Clerk B. POTENTIAL THREAT TO PUBLIC SERVICES OR FACILITIES Pursuant to Government Code Section 54957 Consultation with Chief of Police 7:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT CITY MANAGER UPDATE APPOINTMENTS Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 4/2/2021 1. GENERAL PLAN ADVISORY COMMITTEE APPOINTMENT (WARD 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Angela M. Torres to the General Plan Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 2. Parks, Recreation and Community Services Commission Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Micah E. Lee to the Parks, Recreation and Community Services Commission representing Ward 6. Mr. Lee will replace Charlè Jacobs with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 3. General Plan Advisory Committee Appointment (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Anthony R. Aguirre to the General Plan Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 4. Measure S Citizens Oversight Committee Appointment (Ward 5) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Anthony J. Roberson to the Measure S Citizens Oversight Committee representing Ward 5. Mr. Roberson will replace Eric Roark with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 5. Measure S Citizens Oversight Committee Reappointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Ms. Bronica L. Martindale to the Measure S Citizens Oversight Committee representing Ward 6 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 6. Charter Review Commission Reappointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Ms. Vicki Lee to th e Charter Review Commission representing Ward 6 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 4/2/2021 PRESENTATIONS 7. Proclamation for National Library Week - April 4-10, 2021 PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA STAFF REPORTS 8. Animal Services Update (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and file a staff report on the status of improvements to the Animal Shelter; 2. Adopt Resolution No. 2021-87, accepting a grant award in the amount of $1,500,000 from the San Manuel Band of Mission Indians for Animal Shelter Programs and Services allocated over a three year period (FY 2020/2 1 through FY 2022/23) and delegating authority to the City Manager to conduct all negotiations and sign and submit all necessary documents to receive the grant award; and 3. Authorize the Director of Finance to amend the FY 2020/21 Budget to appropriate $500,000 of the grant funding for animal shelter programs and services; and 4. Authorize the Director of Finance to amend the FY 2020/21 budget to transfer $31,160 from the Animal Services Fund (account 124 230 0001 5704) to Public Works Facilities and Maintenance Operations budget for the emergency removal and replacement of the modular trailer required to mitigate an immediate risk to the health and safety of City employees. 9. Administrative Policies (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and consider the following proposed administrative policies and provide direction for modifications or adopt the resolutions as presented: 1. Use of the City Seal (Resolution No.2021-67); and 2. Procedure for Elected Officials to Place Items on the City Council Agenda (Resolution No.2021-68); and 3. Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs (Resolution No. 2021-69). Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 6 Printed 4/2/2021 10. Amendment to the 2021 Legislative and Regulatory Platform (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve an amendment to the 2021 Legislative and Regulatory Platform to include access to higher education. CONSENT CALENDAR 11. Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes for the February 17, 2021, Regular Meeting of the Mayor and City Council. 12. Electoral Redistricting Advisory Committee Recommendation Adopt Resolution No. 2021-70 of the Mayor and City Council of the City of San Bernardino, California, establishing the Electoral Redistricting Advisory Committee 13. Third Amendment to Neighborhood Stabilization Program Developer Master Agreement (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: Adopt Resolution No. 2021-71 approving the Third Amendment to Neighborhood Stabilization Program Developer Master Agreement and Exclusive Negotiation Agreement with Mary Erickson Community Housing, a Non Profit Corporation, and Authorizing the City Manager or Designee to take any f urther actions and execute additional documents as necessary to effectuate the agreements. 14. Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01 (The Landing by San Manuel) - Second Reading Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept the final reading and adopt Ordinance No. MC-1557 adopting Development Code Amendment (Zoning Map Amendment) 20 -03 and Specific Plan Amendment 20-01 changing the Zoning District Classification from Public Facilities (PF) to Specific Plan - Alliance California (SP-AC) Third Street Land Use District of a parcel (APN: 0136-371-33) containing approximately 12.89 acres, pursuant to a certified Final Environmental Impact Report (California State Clearinghouse Schedule No. 2020100067). 15. Code Amendment - Downtown Advisory Committee Final Reading (Wards 1 & 3) Recommendation Accept the final reading and adopt Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendment to Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 7 Printed 4/2/2021 Section 2.17.040 related to Appointment-Registered voters requirement- Compensation-Oath, with the amendments identified by the Mayor and City Council incorporated. 16. Professional Services Agreement for Grant Financial Management Services with Annie Clark (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-72 authorizing the execution of a two-year Professional Services Agreement for grant financial management consultant services between the City of San Bernardino and Annie Clark, in an amount not to exceed $182,400; and 2. Authorize the City Manager or designee to take any further actions necessary to effectuate the agreement. 17. Approval of Resolutions to Execute Agreements for Revenue Audit and Recovery Services (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-73 authorizing the execution of an agreement between the City of San Bernardino and Eide Bailly LLP for the provision of Transient Occupancy Tax (ToT)/Hotel Tax audit services; and 2. Adopt Resolution No. 2021-74 authorizing the execution of an agreement between the City of San Bernardino and Davis Farr LLP for the provision of Utility Users Tax and Franchise Fee audit services; and 3. Adopt Resolution No. 2021-75 authorizing the execution of an agreement between the City of San Bernardino and Hind erliter, de Llamas & Associates for the provision of Sales Tax analysis and audit services; and 4. Adopt Resolution No. 2021-76, authorizing the examination of Transactions and Use Tax Records of the CDTFA. 18. Investment Portfolio Report for February 2021 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for February 2021. 19. Final Reading and Adoption of Ordinance MC-1555 (Ward 3) 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-1555 levying special Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 8 Printed 4/2/2021 taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of ce rtain public improvements and costs of administration with respect to City of San Bernardino Community Facilities District No. 2021-1 (Ferree Street). 20. Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for March 2021. 21. Authorization to Issue Purchase Orders to GovConnection, Inc. for the Purchase of Workstations, Laptops and Monitors (All Wards) Recommendation Adopt Resolution No. 2021-77 of the Mayor and City Council of the City of San Bernardino, California authorizing the City Manager or designee to authorize and issue Purchase Orders to GovConnection, Inc., in an amount not to exceed $150,000.00, for the purchase of workstations, laptops and monitors as outlined in the report. 22. Accept the FY 2020/21 Power Resiliency Allocation (All Wards) Recommendation Adopt Resolution No. 2021-78 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to accept the FY 2020/21 Community Power Resiliency Allocations to Cities Program, and authorize the Director of Finance to amend the FY 2020/21 Adopted Budget appropriating $300,000 in both revenue and expenditures. 23. First Amendment to Professional Services Agreement with Bio-Tox Laboratories, Inc. (All Wards) Recommendation Adopt Resolution No. 2021-79 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 with Bio -Tox Laboratories, Inc. 24. Update Regarding Trespassing and Other Illegal Activities in County Flood Control Areas (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file this staff report regarding trespassing and other illegal activities in County flood control areas. 25. Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards) Recommendation Adopt Resolution No. 2021-80 of the Mayor and City Council of the City of San Bernardino, California: 1. Authorizing the Director of Finance to amend the FY 2020/21 Capital Improvement Plan, and record a supplemental appropriation in the amount of Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 9 Printed 4/2/2021 $922,227 in SB-1 Fund No. 125-160-8769 for Citywide Pavement Rehabilitation (SB1) Project; and 2. Approving the award of a Construction Contract with Matich Corporation in the amount of $4,050,000 to provide Citywide Pavement Rehabilitation; and 3. Authorizing project construction, construction contingencies and inspections costs in the total amount of $4,622,227 for Citywide Pavement Rehabilitation (SB1) Project (CIP SS-21-001); and 4. Authorizing the City Manager or designee to expend th e contingency fund, if necessary, to complete the Project. 26. Stop Sign Installation at Various Locations (Wards 5, 7) Recommendation Adopt Resolution No. 2021-81 of the Mayor and City Council of the City of San Bernardino, California, amending Resolution No. 655 entitled, in part, “A Resolution… designating certain streets or portions thereof as through highways…” and authorizing the establishment of an all-way stop control at the intersections of 28th Street and Sierra Way (4-way) and State Street and Sheridan Road (4-way). 27. Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 3) Recommendation Adopt Resolution No. 2021-82 of the Mayor and City Council of the City of San Bernardino, California: 1. Authorizing the Director of Finance to amend the FY 2020/21 Capital Improvement Plan (CIP), recording a supplemental appropriation in the amount of $209,650 in Measure I Fund No. 129 -160-7306 for CIP Project SS-D - Citywide Pavement Rehabilitation Slurry/Crack Seal (“Project”); and 2. Approving the award of a Construction Contract with All American Asphalt of Corona, California in the amount of $549,395 to provide Citywide slurry and crack seal repairs; and 3. Authorizing project construction, construction contingencies and inspections costs in the total amount of $631,860 for the Project; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. 28. First Amendment to Consultant Services Agreement with Paragon Partners, Ltd. (Wards 4) Recommendation Adopt Resolution No. 2021-83 of the Mayor and City Council of the City of San Bernardino, California approving the First Amendment to Consultant Services Agreement ("First Amendment") with Paragon Partners, Ltd., extending the contract term through June 30, 2022, for right-of-way acquisition services related to H Street Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 10 Printed 4/2/2021 widening project between 40th Street and Kendall Drive ("Project"). 29. Public Works Equipment Purchases (All Wards) Recommendation Adopt Resolution No. 2021-84 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the purchase of the following Public Works equipment approved for funding through the FY 2020/21 Mid-Year Budget Report: 1. One new Caterpillar Model 262D3 Skid Steer Loader with grinder attachment from Quinn Company in the amount of $74,000; and 2. One new Envirosight Rovver X Pipeline Inspection System from Haaker Equipment Company in the amount of $97,977.13; and 3. One new FORD Super Duty F-550 with aerial Versa-lift from National Auto Fleet Group in the amount of $129,544.94. 30. Award of Nuisance Abatement Services Agreement to Cemex Corporation for Removal of Concrete Pile on N. Palm Avenue (Ward 5) Recommendation Adopt Resolution No. 2021-85 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 in an amount not to exceed $1,470,000 to provide abatement services required at private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000 (“Project”); and 2. Amending the FY 2020/21 operating budget to appropriate $2,000,000 from the City’s undesignated General Fund reserve to support the project to include the cost of the abatement services in the amount of $1,470,000, project contingencies in the amount of $330,000, and anticipated project water use in the amount of $200,000; and 3. Authorizing the City Manager to expend contingencies as necessary to complete the Project. 31. Resolution Declaring Glen Helen Road Property as Surplus Land Recommendation Adopt Resolution No. 2021-86 of the Mayor and City Council of the City of San Bernardino, California, declaring City-owned property located on Glen Helen Road, west of the I-215 and I-15 interchange, and parallel to the Southern Pacific Railroad, as surplus land, and direct the General Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for the disposition of surplus land. Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 11 Printed 4/2/2021 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 32. Request Full Report (Within 30 Days) on the Process to Restrict Truck Routes (Council Member Alexander) 33. Direction to Develop a Policy Regarding Appointments to Boards and Commissions (Council Member Alexander) 34. Amend the Charter to Remove the Position of the Mayor as a Full -Time Elected Official (Council Member Shorett) 35. Public Comments and Comments by Council Members from the Dais at Council Meetings (Council Member Shorett) 36. Citywide Warehouse Moratorium (Council Member Reynoso) ITEMS TO BE REFERRED TO COMMITTEE REPORTS ON CONFERENCES/MEETINGS ATTENDED ADJOURNMENT The Mayor and City Council will adjourn to a special meeting that will be held on Thursday, April 8, 2021 via tele-conference. Open Session will begin at 5:30 p.m. CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the April 7, 2021 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, April 2, 2021. I declare under the penalty of perjury that the foregoing is true and correct. ___________________________________ Genoveva Rocha, CMC, City Clerk Regular Meeting Agenda April 7, 2021 Mayor and City Council of the City of San Bernardino Page 12 Printed 4/2/2021 NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized. Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to “share” his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer an y item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless th e 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 Closed Session City of San Bernardino Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Sonia Carvalho, City Attorney Subject: Closed Session A. PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS Pursuant to Government Code Section 54957 (Discussion of evaluation procedures and preparation for annual evaluation of Mayor and Council appointees) Title: City Manager Title: City Attorney Title: City Clerk B. POTENTIAL THREAT TO PUBLIC SERVICES OR FACILITIES Pursuant to Government Code Section 54957 Consultation with Chief of Police Packet Pg. 13 Page 1 Appointment City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Juan Figueroa, Council Member, Ward 3 Subject: General Plan Advisory Committee Appointment (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Angela M. Torres to the General Plan Advisory Committee representing Ward 3 with the term ending December 2024. Coun cil Staff has verified that appointee is a registered voter within the City. Background The General Plan Advisory Committee was established by Resolution No. 2021 -02 on January 20, 2021. Discussion The General Plan Advisory Committee (GPAC) is an advisory committee established by the Mayor and City Council to assist with the update of the City's comprehensive General Plan. The General Plan Advisory Committee serves as an important component of the public participation program providing one of the primar y communication channels for the community making recommendations to the Planning Commission and the Mayor and City Council. Meetings of the GPAC will be open and public in accordance with the Brown Act. The General Plan Advisory Committee is comprised of seventeen (17) members who serve at pleasure of the Mayor and City Council. Pursuant to Resolution No. 2021 -02, the Mayor shall appoint three (3) members and each City Council member shall nominate two (2) members. In accordance with the City Charter an d the City's Municipal Code, appointees must be residents of the City of San Bernardino. Appointees should be able to clearly articulate the community perspective and/or the area of the City in which they live. 2020-2025 Strategic Targets and Goals The proposed commission appointment aligns 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 City. 1 Packet Pg. 14 7197 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Angela M. Torres to the General Plan Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 - Commission application - Ms. Angela M. Torres Ward: 3 Synopsis of Previous Council Action: January 20, 2021 Resolution No. 2021-02 establishing the General Plan Advisory Committee was adopted. 1 Packet Pg. 15 1.a Packet Pg. 16 Attachment: Attachment 1 - MCC.Commission Application - Angela M. Torres (7197 : General Plan Advisory Committee Appointment (Ward 3)) 1.a Packet Pg. 17 Attachment: Attachment 1 - MCC.Commission Application - Angela M. Torres (7197 : General Plan Advisory Committee Appointment (Ward 3)) 1.a Packet Pg. 18 Attachment: Attachment 1 - MCC.Commission Application - Angela M. Torres (7197 : General Plan Advisory Committee Appointment (Ward 3)) 1.a Packet Pg. 19 Attachment: Attachment 1 - MCC.Commission Application - Angela M. Torres (7197 : General Plan Advisory Committee Appointment (Ward 3)) 1.a Packet Pg. 20 Attachment: Attachment 1 - MCC.Commission Application - Angela M. Torres (7197 : General Plan Advisory Committee Appointment (Ward 3)) Page 1 Appointment City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Kimberly Calvin, Council Member, Ward 6 Subject: Parks, Recreation and Community Services Commission Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Micah E. Lee to the Parks, Recreation and Community Services Commission representing Ward 6. Mr. Lee will replace Charlè Jacobs with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Background The Parks, Recreation and Community Services Commission was established by Resolution No. 2018-47 on February 21, 2018 and is charged with advising the Mayor, City Council and City Staff on matters pertaining to pertaining to parks, recreation, youth and senior affairs in the City. Appointees to the commission must have relative experience or knowledge in the area of parks, recreation services, youth and senior services or other areas which relate to the mission and purpose of the Commission. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns 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 It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Micah E. Lee to the Parks, Recreation and Community Services Commission with the term ending December 2024. Council Staff 2 Packet Pg. 21 7198 Page 2 has verified that appointee is a registered voter within the City. Attachments Attachment 1 Commission Application - Micah E. Lee Ward: 6 2 Packet Pg. 22 2.a Packet Pg. 23 Attachment: Attachment 1 - MCC.Commission Application - Micah E. Lee (7198 : Parks, Recreation and Community Services Commission 2.a Packet Pg. 24 Attachment: Attachment 1 - MCC.Commission Application - Micah E. Lee (7198 : Parks, Recreation and Community Services Commission 2.a Packet Pg. 25 Attachment: Attachment 1 - MCC.Commission Application - Micah E. Lee (7198 : Parks, Recreation and Community Services Commission Page 1 Appointment City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Juan Figueroa, Council Member, Ward 3 Subject: General Plan Advisory Committee Appointment (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Anthony R. Aguirre to the General Plan Advisory Committee representing Ward 3 with the term ending December 2024. Co uncil Staff has verified that appointee is a registered voter within the City. Background The General Plan Advisory Committee was established by Resolution No. 2021 -02 on January 20, 2021. Discussion The General Plan Advisory Committee (GPAC) is an advisory committee established by the Mayor and City Council to assist with the update of the City's comprehensive General Plan. The General Plan Advisory Committee serves as an important component of the public participation program providing one of the prim ary communication channels for the community making recommendations to the Planning Commission and the Mayor and City Council. Meetings of the GPAC will be open and public in accordance with the Brown Act. The General Plan Advisory Committee is comprised of seventeen (17) members who serve at pleasure of the Mayor and City Council. Pursuant to Resolution No. 2021 -02, the Mayor shall appoint three (3) members and each City Council member shall nominate two (2) members. In accordance with the City Charter and the City's Municipal Code, appointees must be residents of the City of San Bernardino. Appointees should be able to clearly articulate the community perspective and/or the area of the City in which they live. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns 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 City. 3 Packet Pg. 26 7203 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Anthony R. Aguirre to the General Plan Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 - Commission application - Mr. Anthony R. Aguirre Ward: 3 Synopsis of Previous Council Action: January 20, 2021 Resolution No. 2021-02 establishing the General Plan Advisory Committee was adopted. 3 Packet Pg. 27 3.a Packet Pg. 28 Attachment: Attachment 1 - MCC.Commission Application - Anthony Aguirre (7203 : General Plan Advisory Committee Appointment (Ward 3)) 3.a Packet Pg. 29 Attachment: Attachment 1 - MCC.Commission Application - Anthony Aguirre (7203 : General Plan Advisory Committee Appointment (Ward 3)) 3.a Packet Pg. 30 Attachment: Attachment 1 - MCC.Commission Application - Anthony Aguirre (7203 : General Plan Advisory Committee Appointment (Ward 3)) Page 1 Appointment City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Ben Reynoso, Council Member, Ward 5 Subject: Measure S Citizens Oversight Committee Appointment (Ward 5) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Anthony J. Roberson to the Measure S Citizens Oversight Committee representing Ward 5. Mr. Roberson will replace Eric Roark with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Background The Measure “S” Citizens Oversight Committee was established by Resolution No. 2020-248, replacing Measure “Z” Citizens Oversight Committee. The committee is charged with reviewing and reporting on the spending plan for the one percent general district sales tax generated under Measure S passed by voters on November 3, 2020, and verifying that the proposed expenditures are in accordance with the Measure S ballot language and the Mayor and Council’s adopted strategic goals and priorities. The Committee is also charged with reviewing and reporting annually on the results of the annual audit of the Measure S revenues and expenditures completed by an independent certified public accounting firm. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns 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 City. 4 Packet Pg. 31 7205 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Anthony J. Roberson to the Measure S Citizens Oversight Committee with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 - Commission application - Mr. Anthony J. Roberson Ward: 5 4 Packet Pg. 32 4.a Packet Pg. 33 Attachment: Attachment 1 - MCC.Commission Appointment - Anthony J. Roberson (7205 : Measure S Citizens Oversight Committee 4.a Packet Pg. 34 Attachment: Attachment 1 - MCC.Commission Appointment - Anthony J. Roberson (7205 : Measure S Citizens Oversight Committee 4.a Packet Pg. 35 Attachment: Attachment 1 - MCC.Commission Appointment - Anthony J. Roberson (7205 : Measure S Citizens Oversight Committee 4.a Packet Pg. 36 Attachment: Attachment 1 - MCC.Commission Appointment - Anthony J. Roberson (7205 : Measure S Citizens Oversight Committee 4.a Packet Pg. 37 Attachment: Attachment 1 - MCC.Commission Appointment - Anthony J. Roberson (7205 : Measure S Citizens Oversight Committee 4.a Packet Pg. 38 Attachment: Attachment 1 - MCC.Commission Appointment - Anthony J. Roberson (7205 : Measure S Citizens Oversight Committee 4.a Packet Pg. 39 Attachment: Attachment 1 - MCC.Commission Appointment - Anthony J. Roberson (7205 : Measure S Citizens Oversight Committee Page 1 Appointment City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Kimberly Calvin, Council Member, Ward 6 Subject: Measure S Citizens Oversight Committee Reappointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Ms. Bronica L. Martindale to the Measure S Citizens Oversight Committee representing Ward 6 with the term e nding December 2024. Council Staff has verified that appointee is a registered voter within the City. Background The Measure “S” Citizens Oversight Committee was established by Resolution No. 2020-248, replacing Measure “Z” Citizens Oversight Committee. The committee is charged with reviewing and reporting on the spending plan for the one percent general district sales tax generated under Measure S passed by voters on November 3, 2020, and verifying that the proposed expenditures are in accordance with t he Measure S ballot language and the Mayor and Council’s adopted strategic goals and priorities. The Committee is also charged with reviewing and reporting annually on the results of the annual audit of the Measure S revenues and expenditures completed by an independent certified public accounting firm. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns 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 City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, 5 Packet Pg. 40 7209 Page 2 California, approve the reappointment of Ms. Bronica L. Martindale to the Measure S Citizens Oversight Committee with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 - Commission application - Ms. Bronica L. Martindale Ward: 6 5 Packet Pg. 41 5.a Packet Pg. 42 Attachment: Attachment 1 - MCC.Commission Application - Bronica L. Martindale (7209 : Measure S Citizens Oversight Committee 5.a Packet Pg. 43 Attachment: Attachment 1 - MCC.Commission Application - Bronica L. Martindale (7209 : Measure S Citizens Oversight Committee 5.a Packet Pg. 44 Attachment: Attachment 1 - MCC.Commission Application - Bronica L. Martindale (7209 : Measure S Citizens Oversight Committee Page 1 Appointment City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Kimberly Calvin, Council Member, Ward 6 Subject: Charter Review Commission Reappointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Ms. Vicki Lee to the Charter Review Commission representing Ward 6 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Background The Charter Review Commission was established by Resolution No. 2017 -243 on December 20, 2017 and is tasked with completing a periodic review of the City Charter to identify potential amendments that enhance clarity, efficiency, and the principles of the council-manager form of government. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council member shall nominate one (1) member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate (2) members. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns 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 City. Conclusion It is recommended that the Mayor an d City Council of the City of San Bernardino, California, approve the reappointment of Ms. Vicki Lee to the Charter Review Commission representing Ward 6 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 Commission Application - Ms. Vicki Lee 6 Packet Pg. 45 7226 Page 2 Ward: 6 6 Packet Pg. 46 6.a Packet Pg. 47 Attachment: Attachment 1 - MCC.Commission Application - Vicki Lee (7226 : Charter Review Commission Reappointment (Ward 6)) 6.a Packet Pg. 48 Attachment: Attachment 1 - MCC.Commission Application - Vicki Lee (7226 : Charter Review Commission Reappointment (Ward 6)) 6.a Packet Pg. 49 Attachment: Attachment 1 - MCC.Commission Application - Vicki Lee (7226 : Charter Review Commission Reappointment (Ward 6)) Page 1 Presentation City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: John Valdivia, Mayor Subject: Proclamation for National Library Week - April 4-10, 2021 7 Packet Pg. 50 7.a Packet Pg. 51 Attachment: Attachment 1 - National Library Week Proclamation (7219 : Proclamation for National Library Week - April 4-10, 2021) Page 1 Staff Report City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Watson, Animal Services Director Subject: Animal Services Update (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and file a staff report on the status of improvements to the Animal Shelter; 2. Adopt Resolution No. 2021-87, accepting a grant award in the amount of $1,500,000 from the San Manuel Band of Mission Indians for Animal Shelter Programs and Services allocated over a three year period (FY 2020/21 through FY 2022/23) and delegating authority to the City Manager to conduct al l negotiations and sign and submit all necessary documents to receive the grant award; and 3. Authorize the Director of Finance to amend the FY 2020/21 Budget to appropriate $500,000 of the grant funding for animal shelter programs and services; and 4. Authorize the Director of Finance to amend the FY 2020/21 budget to transfer $31,160 from the Animal Services Fund (account 124 230 0001 5704) to Public Works Facilities and Maintenance Operations budget for the emergency removal and replacement of the modular trailer required to mitigate an immediate risk to the health and safety of City employees. Background Animal Shelter Facility Improvements In September 2019, staff provided an update to the Mayor and City Council on the Animal Control program and reviewed options for addressing repairs needed at the shelter facility. In December 2019, the Mayor and City Council authorized staff to move forward with addressing the most critical repairs at the shelter in order to reduce the spread of disease and risk of injury to animals and shelter staff. Three initial repair projects were approved, including roof replacement, electrical panel upgrades 8 Packet Pg. 52 7179 Page 2 (beginning with the system design), and mold abatement and related reconstruction. In March 2020, Animal Services repaired the canine quarantine area of the shelter to comply with regulations from the California Veterinary Medical Board. Grate covers were installed over drainage areas and fencing with a vapor barrier was installed around the quarantine kennels. Soon after this project was completed, the mold remediation, reconstruction and painting in the main animal shelter building was also completed. Roofing was replaced on all of the buildings on site and a fresh coat of paint was applied to the exterior of the main building. On August 19, 2020, the Mayor and City Council approved Resolution No. 2020 -207 awarding a construction contract for electrical upgrades at the animal shelter. The contractor for the electrical project at the shelter has completed all of the neces sary trenching and preparation of the site for the upgrade. Due to increased demand for materials and supplies, the electrical transformers and associated equipment have been ordered with an expected delivery and installation date in June 2021. Once the ne w electrical panels are installed, the Department will be able to proceed installing the equipment approved as part of the mid -year budget including, but not limited to, the industrial washer and dryer and dishwasher needed to sanitize and launder bedding and dishes. On December 2, 2020, the Mayor and City Council approved Resolution No. 2020 -277, awarding a construction contract to complete the heating, ventilation, and air conditioning (HVAC) system upgrades on the shelter’s cat sanctuary which have been completed. This small change will assist the City in controlling the spread of illness and additional stress in our feline population, especially during spring and summer, which is typically when the City experiences an influx of cats and kittens. Recently, staff identified an emergency need to relocate animal shelter staff out of the existing modular office due to deterioration of the structural integrity of the building. As an emergency action, staff was temporarily relocated in office space at t he City’s corporate yard. Due to the need to expedite the replacement of the trailer, initial costs of $31,160 were absorbed by the Facilities Maintenance Division operating budget. Discussion Shelter Facility Update: The investment the City has made to date in repairs to the current facility has been successful in remedying the most urgent needs of the Department. As we look toward the future, it is apparent that significant additional investment is needed to support the shelter and increase the positive impact the Department can make for humans and animals in the City. In December 2020, the City was invited by the San Manuel Band of Mission Indians to apply for a grant to assist in the repair of the current facility, initiate the process of locating land for a potential replacement facility and expand current program offerings to benefit our residents. City staff was verbally notified on Friday, March 19, 2021, that the San Manuel Band of Mission Indians had approved the grant application in the amount of $1,500,000 to be disbursed over three fiscal years (2020/21, 2021/22 and 2022/23) at the amount of $500,000 annually. The San Manuel 8 Packet Pg. 53 7179 Page 3 Band of Mission Indians requests that the City formally accept the grant funds before it proceeds to process documenting the grant terms and scope. San Manuel Grant: The grant award from the San Manuel Band of Mission Indians will help the City take its initial steps toward constructing a replacement shelter and will improve the current facility, while also expanding services so that we can better serve our residents. The grant application includes funding for the following projects and amounts to be disbursed over a three-year period: 1. Replacement Shelter $500,000 2. New Animal Control Vehicles $225,000 3. Current Facility Improvements $145,000 4. Medical Fund for Injured Owned Animals $150,000 5. Spay and Neuter for Animals in the Community $300,000 6. Medical Treatment for Impounded Animals $120,000 7. Microchipping for Animals in the Community $60,000 Total Grant Award $1,500,000 The Department will return for Council approval when the scope of work for a replacement shelter is more clearly defined, utilizing community input and shelter industry standards of care. The shelter would be a resource for residents throughout the region, and would serve as a location where they could find their lost pet, come and adopt a new family member or receive support or veterinary care to help them keep their current pet. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1: Financial Stability, as it addresses critical upgrades needed to ensure the shelter and staff are able to continue providing services to the community and their anim als; Key Target No. 2: Focused, Aligned Leadership and Unified Community through the opportunity for increased community engagement at the shelter; and Key Target No. 3: Improved Quality of Life by expanding services available to the public and their pets. Fiscal Impact The grant award from the San Manuel Band of Mission Indians will add $500,000 to Animal Services budget annually for a three year period beginning in FY 2020/21. This funding will be placed into a grant account within the Animal Services D epartment budget, allowing staff to track expenditures in keeping with the approved usage of grant funds as detailed in the grant agreement. Due to the need to expedite the replacement of the modular trailer to address the immediate risk to the health and safety of City employees, the cost associated with the removal of the unit totaling $31,160 were absorbed by the Facilities Maintenance Division operating budget. The FY 2020/21 operating budget will need to be amended to transfer $31,160 Animal Services Fund (account 124 230 0001 5704) to Public Works Facilities and Maintenance Operations budget for the emergency removal and 8 Packet Pg. 54 7179 Page 4 replacement of the modular trailer. It should also be noted that the City was awarded funding through the San Bernardino County CARES Act infrastructure project program for the installation of the cat sanctuary HVAC system to cover half of the total project cost equating to $34,888 offsetting a portion of the costs associated with this critical facility upgrade. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and file a staff report on the status of improvements to the Animal Shelter; 2. Accept a grant award in the amount of $1,500,000 from the San Manuel Band of Mission Indians for Animal Shelter Programs and Services allocated over a three year period (FY 2020/21 through FY 2022/23); 3. Adopt Resolution No. 2021-87, delegating authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion and receipt of the Grant; and 4. Authorize the Director of Finance to amend the FY 2020/21 Budget to appropriate $500,000 of the grant funding for animal shelter programs and services; and 5. Authorize the Director of Finance to amend the FY 2020/21 budget to transfer $31,160 from the Animal Services Fund (account 124 230 0001 5704) to Public Works Facilities and Maintenance Operations budget for the emergency removal and replacement of the modular trailer required to mitigate an immediate risk to the health and safety of City employees. Attachments Attachment 1 Resolution No. 2021-87 to Accept Grant Funding Attachment 2 San Bernardino City Animal Services Grant Approval Letter Wards: All Synopsis of Previous Council Actions: January 6, 2019 Staff presented an update regarding the Animal Control Program and a report from the Animal Control Commission regarding capital improvement funding sources. February 11, 2019 Staff presented a report exploring options to address the City’s animal service, budgetary and shelter needs including rebuilding the existing in-house program with either a new or repurposed 8 Packet Pg. 55 7179 Page 5 facility; establishing a joint powers authority agreement with public partners; and contract service opportunities was presented. Sept. 18, 2019 Mayor Council appropriated funding from the Animal Shelter Improvement Fund for completion of an assessment of the shelter replacement costs and directed the City Manager to issue bids for facility repairs and develop a plan of action including a proposed budget and resources needed to effectively operate an animal shelter, field and licensing program independent of the Police Department. 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 and to execute construction agreements with San Marino Roof Company Inc. for Roof Replacement and Noble E&C Inc. for Mold Abatement and reconstruction of the main shelter building. June 24, 2020 Mayor and City Council approved Resolution No. 2020 -128 approving the Capital Improvement Program for FY 2020/21. August 19, 2020 Mayor and City Council approved Resolution No. 2020 -207 approving the total budget for the Electrical Service Replacement Project in the amount of $213,000 and awarding of a construction contract with TSR construction to complete the electrical service upgrade at the shelter. December 2, 2020 Mayor and City Council of the City of San Bernardino, approved Resolution No. 2020-277, appropriating $81,000 from the Animal Shelter Improvement Fund and authorizing the Director of Finance to amend the FY 2020/21 CIP to include HVAC upgrades for a Cat Sanctuary at the Animal Shelter and awarding the construction contract to WCM & Associates, Inc. to complete the project. March 3, 2021 the Mayor and City Council authorized the Director of Finance to Amend the FY 2020/21 Budget as outlined in the FY 2020/21 Mid -Year Budget Report, and including recommended changes from the Mayor and City Council. 8 Packet Pg. 56 RESOLUTION NO. 2021-87 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACCEPTING A GRANT AWARD IN THE AMOUNT OF $1,500,000 FROM THE SAN MANUEL BAND OF MISSION INDIANS FOR ANIMAL SHELTER PROGRAMS AND SERVICES ALLOCATED OVER A THREE YEAR PERIOD (FY 2020/21 THROUGH FY 2022/23) AND DELEGATING AUTHORITY TO THE CITY MANAGER TO CONDUCT ALL NEGOTIATIONS AND SIGN AND SUBMIT ALL NECESSARY DOCUMENTS TO RECEIVE THE GRANT AWARD WHEREAS, The City of San Bernardino Department of Animal Services has been approved for grant funding by the San Manuel Band of Mission Indians in the amount of $1,500,000 (the “Grant”); and WHEREAS, the City is working to expand shelter programs and services to the community; and WHEREAS, the Grant funding would support the City in their efforts. 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 Council hereby approves the acceptance of Grant funds from the San Manuel Band of Mission Indians. SECTION 3. The City Council hereby delegates the authority to the City Manager to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant scope and receiving the Grant award. 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. 8.a Packet Pg. 57 Attachment: Attachment 1 - Resolution No. 2021-87 to Accept Grant Funding [Revision 1] (7179 : Animal Services Update (All Wards)) Resolution No. ___ 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 City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 8.a Packet Pg. 58 Attachment: Attachment 1 - Resolution No. 2021-87 to Accept Grant Funding [Revision 1] (7179 : Animal Services Update (All Wards)) Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 8.a Packet Pg. 59 Attachment: Attachment 1 - Resolution No. 2021-87 to Accept Grant Funding [Revision 1] (7179 : Animal Services Update (All Wards)) San Manuel Band of Mission Indians 26569 Community Center Drive • Highland, CA 92346 Office: (909) 864-8933 • FAX: (909) 864-3370 April 1, 2021 Robert Field City Manager City of San Bernardino 333 Chandler Place San Bernardino, CA 92401 RE: Grant Approval, San Bernardino City Animal Services Dear Mr. Field: Thank you for your grant request submission for the Animal Services Shelter improvement project with the City of San Bernardino. After careful review, the San Manuel Band of Mission Indians has approved a $1,500,000.00 grant award in support of your grant request to support the city’s Animal Services Department. Our Strategic Philanthropy Department will be in touch with you soon to share additional information on our next steps. Please note that funds are to be released when a “restricted grant agreement” is fully executed between the City of San Bernardino and the Tribe. We look forward to continuing to work with the city on this grant project. Should you have any questions, please be sure to contact our office at (909) 864-8933. Sincerely, Jessica Stops VP, Tribal Brand Marketing & Strategic Initiatives DocuSign Envelope ID: 6E1006E6-E060-4B77-B06A-12CEBC09A354 8.b Packet Pg. 60 Attachment: Attachment 2 - San Bernardino City Animal Services Grant Approval Letter (7179 : Animal Services Update (All Wards)) Page 1 Staff Report City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager Subject: Administative Policies (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino , California, review and consider the following proposed administrative policies and provide direction for modifications or adopt the resolutions as presented: 1. Use of the City Seal (Resolution No.2021-67); and 2. Procedure for Elected Officials to Place Items on the City Council Agenda (Resolution No.2021-68); and 3. Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs (Resolution No. 2021-69). Background The City of San Bernardino is a Charter City operating under a Council-Manager form of government. The City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like. In addition to the City Charter and Mun icipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City. Discussion On February 3, 2021, the Mayor and Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and elected and appointed officials are operating under a clear set of guidelines that govern the City. Discussed below are the first three policies for consideration: Use of the City Seal; Procedure for Elected Officials to Place Items on City Council Meeting Agendas; and Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs. 9 Packet Pg. 61 7227 Page 2 1.) Policy Regarding Use of the City Seal Use of the City seal is governed broadly under Section 9.04 of the City’s Municipal Code entitled “Improper Use of City Insignia.” The attached draft administrative policy concerning use of the City seal incorporates the applicable sections of the Municipal Code and also provides additional direction with regard to the use of the City seal. The proposed policy also provides further policy direction regarding modification of the City seal for personalization by the Mayor and Council Members. The following sections of the proposed policy are enumerated in the City’s Municipal Code: Section 9.04.010 Unlawful use of official indicia It is unlawful for any officer or employee of the City to knowingly or willfully use, or cause the use of, a copy or replica of the official seal of the City, the original or a copy or replica of the letterhead on City stationary, or any other official indicia of the City or local City public office for any private or personal purpose. Section 9.04.020 Private purpose defined “Private purpose” as that phrase is used in this Chapter, means and includes, but is not limited to, the support or endorsement of or opposition to any candidate for a public office or the support or endorsement of or opposition to any ballot measure, initiate, referendum, or any other matter voted upon at a public election. Additionally, “private purpose” has that meaning ascribed to it by judicial decisions of courts of competent jurisdiction as such term is distinguished from the term “public purpose.” Section 9.04.025 Use of the City Seal The Mayor and Common Council may, by written agreement, authorize the private use of the City Seal or other City insignia when it is determined to be in the best interests of the City, and when it is determined that the public will not be misled thereby. To provide clarification to the requirements of the Municipal Code, it is recommended that the following be included in the administrative policy regarding use of the City seal: “The City Seal may not be used to endorse, promote, or otherwise support vendors, contractors, or developers without the approval of the Mayor and City Council by written agreement and in adherence with applicable federal, state and local laws and regulations.” Council Members have expressed an interest in personalizing the City seal for the Mayor and Council Members. Accordingly, in addition to the sections above, the proposed policy includes guidance regarding personalization of the City seal: The Official City Seal may be modified only to reflect the Mayor’s name and each Council Member’s name and ward, as illustrated in the policy. 9 Packet Pg. 62 7227 Page 3 In order to maintain consistency and ensure a professional appearing seal to represent the City and Council Members, creation of “Elected Official City Seals” will be performed by either City staff or an authorized vendor selected in accordance with the City’s purchasing procedures. All sections of this policy pertaining to the “Official City Seal” are applicable to use of the “Elected Official City Seal.” The “Elected Official City Seal” may only be used for current officeholders. 2.) Procedure for Elected Officials to Place Items on the City Council Agenda Section 2.02.060 (A) of the City’s Municipal Code entitled “Duties of the City Manager” specifically states that the City Manager shall “determine the items and order of such items on the City Council meeting agendas, subject to direction from the Mayor and City Council. The City Manager shall include any agenda item requested by the presiding officer of the City Council for discussion and further direction from a majority of the City Council.” The purpose of this proposed policy, outlined below, is to provide a procedure for effectuating the requirements of this section of the City’s Municipal Code and ensuring that time and resources are allocated to items supported by a majority of the Council. The policy, outlined below, will minimize delays to regular business items and allow time to complete staff work (research, staff reports, draft ordinances, resolutions, etc.) that might be necessary for items approved for future consideration by the Council. Each Mayor and City Council agenda will include a section entitled “Items to be Considered for Future Meetings”. This section is to list requests for items to be considered at future Council meetings. If a majority of Council Members approve the request, then the item, with completed staff work, will be brought forward at a future meeting. If an individual elected official wants an item to be included in this section, the elected official will notify the City Manager by the Monday of the week in which the agenda will be posted. The item to be considered for future placement on a City Council agenda will include a brief title/description along with the name of the requesting elected official. To ensure that time and resources are available for regular business ite ms, and to allow time for staff to complete required staff work related to requested items, elected officials will endeavor to limit requests to one item per elected official each meeting. Requested items will not be placed on future agendas, and staff work will not commence, without concurrence from the majority of the members of the City Council. 9 Packet Pg. 63 7227 Page 4 3.) Policy Regarding Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs In order for policies and programs to be implemented successfully, it is critical that the relationship between the Mayor, Council and staff be will understood and recognized by all parties. Like most cities in California, San Bernardino has adopted a council - manager form of government. This structure, specified in the City Charter, reflects the Mayor and City Council’s legislative role to establish City policy and set priorities. Per the City Charter, the City Manager is the chief executive officer of the City, responsible to the Council for t he management of all City affairs placed in the City Manager’s charge by or under the Charter. The City Manager is the sole authority for managing City operations and appointing and directing City staff, except as otherwise provided in the Charter. The Mayor and City Council work through the City Manager in dealing with staff. The employment relationship between the Mayor and City Council and City Manager honors the fact that the Mayor and City Council set policy and the City Manager is the chief executive officer of the City. The City Charter and Municipal Code clearly outline the role of the City Manager and provide procedures for elected officials’ interaction with City staff and involvement in administrative affairs. The attached policy combines these already existing requirements in one document and is summarized below: In accordance with the City Charter, neither the Mayor nor any Council member shall interfere with the discretion of the City Manager in the exercise or performance of his or her powers or duties. The Mayor and Council members shall deal with City officers and employees who are subject to the direction and supervision of the City Manager solely through the City Manager, and shall not give orders to or attempt to direct the work of such officers and employees either publicly or privately. Inquiries may be made directly to officers and employees under the supervision of the City Manager with the knowledge and consent of the City Manager. Section 2.58.050 (N) of the Municipal Code entitled “Conduct at Meetings and Relating to City Business” outlines the following with respect to the Mayor and Council Members’ communications with the City Manager and staff: a. Unless it is a simple inquiry, the Mayor or members of the City Coun cil will contact the City Manager before going to Department Heads. b. When contacting Department Directors through e-mail, the Mayor and Council Members will copy the City Manager as a courtesy. c. The City Manager will ensure that the Mayor and City Council are proactively informed on major policy issues or issues that may attract 9 Packet Pg. 64 7227 Page 5 media or public attention; likewise, the Mayor and City Council members will give the City Manager notice if he or she learns of issues of concern. d. The Mayor, City Council, City Manager and staff will not blindside each other in public. e. Council members are encouraged to submit questions on agenda items to the City Manager as far in advance of the meeting as possible so that staff can be prepared to respond at the meeting. f. The Mayor and City Council will refer citizen complaints to staff and give them adequate time to respond. Staff will report back to the Council through the City Manager on the resolutions of these complaints. g. The Mayor and Councilmembers will be provided with information from staff and other members on an equal basis so that they are equally prepared to make good decisions. 2020-2025 Key Strategic Targets and Goals Approval of administrative policies aligns with Key Target No. 7: Focused, Aligned Leadership and Unified Community by establishing consistent clear procedures for staff and elected officials to follow that promote a professional environment and contribute toward a culture that attracts, retains, and motivates the highest quality talen t. Fiscal Impact There is no financial impact associated with the development of an administrative policy manual beyond dedicated staff time. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and consider the following proposed administrative policies and provide direction for modifications or adopt the resolutions as presented: 1. Use of the City Seal (Resolution 2021-67); and 2. Procedure for Elected Officials to Place Items on the City Co uncil Agenda (Resolution 2021-68); and 3. Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs (Resolution 2021-69). Attachments Attachment 1 Resolution 2021-67 approving Administrative Policy Regarding Use of the City Seal Attachment 2 Exhibit A - City Seal Policy Attachment 3 Resolution 2021-68 approving Administrative Policy Regarding Procedure for Elected Officials to Place Items on the City Council 9 Packet Pg. 65 7227 Page 6 Agenda Attachment 4 Exhibit A - Procedure for Elected Officials to Place Items on Agenda Attachment 5 Resolution 2021-69 approving Administrative Policy Regarding Elected Officials Interaction with City Staff and Involvement in Administrative Affairs Attachment 6 Exhibit A - Policy Elected Officials’ Interaction with Staff Ward: All Synopsis of Previous Council Actions: February 3, 2021 The Mayor and City Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and elected and appointed offic ials are operating under a clear set of guidelines that govern the City. 9 Packet Pg. 66 RESOLUTION NO.2021-67 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING THE CITY’S ADMINISTRATIVE POLICY REGARDING USE OF THE CITY SEAL WHEREAS, the City of San Bernardino is a Charter City operating under a Council- Manager form of government; WHEREAS, the City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like; WHEREAS, in addition to the City Charter and Municipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City; and WHEREAS, on February 3, 2021, the City Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and elected and appointed officials are operating under a clear set of guidelines that govern the City. 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 of San Bernardino Administrative Policy – Use of City Seal, attached hereto and incorporated herein as Exhibit A, is hereby approved. 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. 9.a Packet Pg. 67 Attachment: Attachment 1 - Resolution 2021-67 Establishing Administrative Policy Regarding Use of the City Seal (7227 : Administative Resolution No. 2021- APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 9.a Packet Pg. 68 Attachment: Attachment 1 - Resolution 2021-67 Establishing Administrative Policy Regarding Use of the City Seal (7227 : Administative Resolution No. 2021- CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 9.a Packet Pg. 69 Attachment: Attachment 1 - Resolution 2021-67 Establishing Administrative Policy Regarding Use of the City Seal (7227 : Administative _____________________________________________________________________________________________ City of San Bernardino - Administrative Policy Manual City of San Bernardino Administrative Policy Manual ____________________________________________________________________________ Subject: Use of City Seal Purpose: To govern use of the City seal by City staff, elected officials, appointed officials and private parties in accordance with the City’s Municipal Code and applicable resolutions Authority: Section 9.04 of the Municipal Code Resolution No. :_______________ ____________________________________________________________________________ Policy: 1) The “Official City Seal” is illustrated below: 2) It is unlawful for any officer or employee of the City to knowingly or willfully use, or cause the use of, a copy or replica of the official seal of the City, the original or a copy or replica of the letterhead on City stationary, or any other official indicia of the City or local City public office for any private or personal purpose (Section 9.04.010 of the City’s Municipal Code entitled “Unlawful use of official indicia”). “Private purpose” as defined in the Municipal Code, means and includes, but is not limited to, the support or endorsement of or opposition to any candidate for a public office or the support or endorsement of or opposition to any ballot measure, initiate, referendum, or any other matter voted upon at a public election. Additionally, “private purpose” has that meaning ascribed to it by judicial decisions of courts of competent jurisdiction as such term is distinguished from the term “public purpose.” (Section 9.04.020 of the City’s Municipal Code entitled Private purpose defined”). 9.b Packet Pg. 70 Attachment: Attachment 2 - Exhibit A City Seal Policy (7227 : Administative Policies (All Wards)) _____________________________________________________________________________________________ City of San Bernardino - Administrative Policy Manual Use of City Seal 3) The Mayor and Common Council may, by written agreement, authorize the private use of the City Seal or other City insignia when it is determined to be in the best interests of the City, and when it is determined that the public will not be misled thereby. (Section 9.04.025 of the City’s Municipal Code entitled Use of the City Seal”). 4) The City Seal may not be used to endorse, promote, or otherwise support vendors, contractors, or developers without the approval of the Mayor and Ci ty Council by written agreement and in adherence with applicable federal, state and local laws and regulations (Resolution No. ___). 5) The Official City Seal may be modified only to reflect the Mayor’s name and each Council Member’s name and ward, as illustrated in the example below and referred to as “Elected Official City Seal” (Resolution No____): 6) In order to maintain consistency and ensure a professional appearing seal to represent the City and Council Members, creation of “Elected Official City Seals” will be performed by either City staff or an authorized vendor selected in accordance with the City’s purchasing procedures (Resolution No____). 7) All sections of this policy pertaining to the “Official City Seal” are applicable to use of the “Elected Official City Seal.” The “Elected Official City Seal” may only be used for current officeholders (Resolution No____). 9.b Packet Pg. 71 Attachment: Attachment 2 - Exhibit A City Seal Policy (7227 : Administative Policies (All Wards)) RESOLUTION NO.2021-68 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING THE CITY’S ADMINISTRATIVE POLICY REGARDING THE PROCEDURE FOR ELECTED OFFICIALS TO PLACE ITEMS ON THE CITY COUNCIL MEETING AGENDA WHEREAS, the City of San Bernardino is a Charter City operating under a Council- Manager form of government; WHEREAS, the City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like; WHEREAS, in addition to the City Charter and Municipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City; and WHEREAS, on February 3, 2021, the City Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and elected and appointed officials are operating under a clear set of guidelines that govern the City. 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 of San Bernardino Administrative Policy – Procedure for Elected Officials to Place Items on the City Council Meeting Agenda, attached hereto and incorporated herein as Exhibit A, is hereby approved. 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. 9.c Packet Pg. 72 Attachment: Attachment 3 - Resolution 2021-68 Establishing Administrative Policy Regarding Procedure for Elected Officials to Place Items on Resolution No. ___ APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 9.c Packet Pg. 73 Attachment: Attachment 3 - Resolution 2021-68 Establishing Administrative Policy Regarding Procedure for Elected Officials to Place Items on Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 9.c Packet Pg. 74 Attachment: Attachment 3 - Resolution 2021-68 Establishing Administrative Policy Regarding Procedure for Elected Officials to Place Items on _____________________________________________________________________________________________ City of San Bernardino - Administrative Policy Manual City of San Bernardino Administrative Policy Manual ____________________________________________________________________________ Subject: Procedure for Elected Officials to Place Items on the City Council Meeting Agenda Purpose: To provide a procedure to allow items to be placed on the agenda for consideration at the request of the Mayor or an individual Council Member in accordance with the City’s Charter, Municipal Code and applicable resolutions. Authority: Article II, Section 200 of the City Charter Article IV, Section 401 of the City Charter Section 2.02.060 of the Municipal Code Resolution No. :_______________ ____________________________________________________________________________ Policy: 1) The City of San Bernardino is a Council-Manager form of Government (Article II, Section 200 of the City Charter entitled “Form of Government”). As such, the City Manager shall be the chief executive officer of the City, responsible to the Council for the management of all City affairs placed in the City Manager’s charge by or under the Charter (Article IV, Section 401 of the City Charter entitled “City Manager-Powers and Duties”). 2) The City Manager shall determine the items and order of such items on the City Council Meeting agendas, subject to direction from the Mayor and City Council. The City Manager shall include any agenda item requested by the presiding officer of t he City Council for discussion and further direction from a majority of the City Council (Section 2.02.060 A. of the City’s Municipal Code entitled “Duties of the City Manager”). 3) Each City Council agenda will include a section entitled “Items to be Considered for Future Meetings.” This section is to list requests for items to be considered at future Council meetings. If a majority of Council Members approve the request, then the item, with completed staff work, will be brought forward at a future Council meeting (Resolution No____). 4) In order to include on the City Council agenda a request for consideration to add an item to a future agenda, the Mayor or individual Council Member must notify the City Manager by the Monday of the week in which the agenda will be posted for example: 9.d Packet Pg. 75 Attachment: Attachment 4 - Exhibit A Procedure for Elected Officials to Place Items on Agenda (7227 : Administative Policies (All Wards)) _____________________________________________________________________________________________ City of San Bernardino - Administrative Policy Manual Procedure for Elected Officials to Place Items on the City Council Meeting Agenda Example: An item to be considered for the April 21, 2021 Council meeting needed to be provided to the City Manager by Monday April 12, 2021. The item to be considered will include a brief title/description and the name of the requestor. The only action that will be taken will be to provide direction to the City Manager to commence staff work and to bring the item back for the Mayor and City Council to take formal action at a future meeting (Resolution No____). 5) To ensure that time and resources are available for regular business items, and to allow time for staff to complete required staff work related to requested items, elected officials will endeavor to limit requests to one item per elected official each meeting (Resolution No____). 6) Requested item will not be placed on a future agenda, and staff work wi ll not commence, without concurrence from the majority of the members of the City Council (Resolution No____; Section 2.02.060 A. of the City’s Municipal Code entitled “Duties of the City Manager”). 9.d Packet Pg. 76 Attachment: Attachment 4 - Exhibit A Procedure for Elected Officials to Place Items on Agenda (7227 : Administative Policies (All Wards)) RESOLUTION NO. 2021-69 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING THE CITY’S ADMINISTRATIVE POLICY REGARDING ELECTED OFFICIALS’ INTERACTION WITH CITY STAFF AND INVOLVEMENT IN ADMINISTRATIVE AFFAIRS WHEREAS, the City of San Bernardino is a Charter City operating under a Council- Manager form of government; WHEREAS, the City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like; WHEREAS, in addition to the City Charter and Municipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City; and WHEREAS, on February 3, 2021, the City Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and elected and appointed officials are operating under a clear set of guidelines that govern the City. 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 of San Bernardino Administrative Policy – Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs, attached hereto and incorporated herein as Exhibit A, is hereby approved. 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. 9.e Packet Pg. 77 Attachment: Attachment 5 - Resolution 2021-69 Establishing Administrative Policy Regarding Elected Officials Interaction with Staff (7227 : Resolution No. ___ APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 9.e Packet Pg. 78 Attachment: Attachment 5 - Resolution 2021-69 Establishing Administrative Policy Regarding Elected Officials Interaction with Staff (7227 : Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 9.e Packet Pg. 79 Attachment: Attachment 5 - Resolution 2021-69 Establishing Administrative Policy Regarding Elected Officials Interaction with Staff (7227 : _____________________________________________________________________________________________ City of San Bernardino - Administrative Policy Manual City of San Bernardino Administrative Policy Manual ____________________________________________________________________________ Subject: Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs Purpose: To govern the Mayor and City Council Members interaction with City staff and involvement in administrative affairs in accordance with the City’s Charter, Municipal Code and applicable resolutions. Authority: Article II, Section 200 of the City Charter Article III, Section 300 of the City Charter Article III, Section 306 of the City Charter Article IV, Section 401 of the City Charter Section 2.58.050 (N) of the Municipal Code Resolution No. :_______________ ____________________________________________________________________________ Policy: 1) The City of San Bernardino is a Council-Manager form of Government (Article II, Section 200 of the City Charter entitled “Form of Government”). As such, the City Manager shall be the chief executive officer of the City, responsible to the Council for the management of all City affairs placed in the City Manager’s charge by or under the Charter . The City Manager will be the sole authority for managing City operations and appointing and directing City staff, except as otherwise provided in the Charter (Article IV, Section 401 of the City Charter entitled “City Manager-Powers and Duties”). 2) Except as otherwise required by law, the role of the Council is legislative, which includes the power to set policy, approve contracts and agreements, and undertake other obligations consistent with this Charter and the City’s Municipal Code, while deferri ng to the discretion of management to choose the appropriate means to achieve the Council’s goals (Article III, Section 300 of the City Charter entitled “City Council and Mayor-General Powers and Duties”). 3) Neither the Mayor nor any Council member shall interfere with the discretion of the City Manager in the exercise or performance of his or her powers or duties. The Mayor and Council members shall deal with City officers and employees who are subject to the direction and supervision of the City Manager solely through the City Manager, and shall 9.f Packet Pg. 80 Attachment: Attachment 6 - Exhibit A Policy Elected Officials' Interaction with Staff [Revision 1] (7227 : Administative Policies (All Wards)) _____________________________________________________________________________________________ City of San Bernardino - Administrative Policy Manual Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs not give orders to or attempt to direct the work of such officers and employees either publicly or privately. Inquiries may be made directly to officers and employees under the supervision of the City Manager with the knowledge and consent of the City Mana ger (Article III, Section 306 (d) of the City Charter entitled “City Council and Mayor - Prohibitions-Interference with Administration”). 4) With respect to the Mayor and Council Members’ communications with the City Manager and staff: a. Unless it is a simple inquiry, the Mayor or members of the City Council will contact the City Manager before going to Department Heads. b. When contacting Department Directors through e-mail, the Mayor and Council Members will copy the City Manager as a courtesy. c. The City Manager will ensure that the Mayor and City Council are proactively informed on major policy issues or issues that may attract media or public attention; likewise, the Mayor and City Council members will give the City Manager notice if he or she learns of issues of concern. d. The Mayor, City Council, City Manager and staff will not blindside each other in public. e. Council members are encouraged to submit questions on agenda items to the City Manager as far in advance of the meeting as possible so that staff can be prepared to respond at the meeting. f. The Mayor and City Council will refer citizen complaints to staff and give them adequate time to respond. Staff will report back to the Council through the City Manager on the resolutions of these complaints. g. The Mayor and Councilmembers will be provided with information from staff and other members on an equal basis so that they are equally prepared to make good decisions. (Section 2.58.050 (N) of the Municipal Code entitled “Conduct at Meetings and Relating to City Business”) 9.f Packet Pg. 81 Attachment: Attachment 6 - Exhibit A Policy Elected Officials' Interaction with Staff [Revision 1] (7227 : Administative Policies (All Wards)) Page 1 Staff Report City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager Subject: Amendment to the 2021 Legislative and Regulatory Platform (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve an amendment to the 2021 Legislative and Regulatory Platform to include access to higher education. Background On November 18, 2020, the Mayor and City Council voted to approve the 2021 Legislative and Regulatory Platform consistent with the Resolution No. 2018 -117 (The Legislative Program Policy and Procedures). The legislative platform is used to guide city officials and staff in responding to legislative proposals at the state and federal levels throughout the year. Maintaining a legislative platform allows for timely response to legislative issues important to the City, including letters from the Mayor or City Manager to the Legislature and/or Congress consistent with the established platform. Additionally, the platform summarizes the Mayor and City Council’s positions on priority issues. Under the City’s adopted legislative program policy, once a determination has been made that a legislative proposal or regulation may impact the City, the City Manager will advise the Mayor and City Council. If there is any objection received from the Mayor or any member of the City Council regarding the City’s position, the issue will be placed on the next City Council agenda for consideration. If there is no objection within the defined period, staff will proceed in advocating on behalf of the City’s interest in alignment with the adopted legislative platform. Discussion The City’s legislative platform is designed to be a living document that evolves and enables the City to quickly respond to issues impacting the City. In keeping with the City’s adopted legislative program policy the legislative and regulatory platform is updated annually in conjunction with the opening of a new legislative session at the beginning of the calendar year. Although the platform is normally updated annually, current events, economic crisis or other mitigating factors may provide a need for amendments to be conside red to the 10 Packet Pg. 82 7228 Page 2 legislative platform during the calendar year. Such amendments can better direct staff in rapidly responding to legislative proposals introduced at the state and federal levels. The COVID-19 pandemic has had a dramatic impact and an outsized influence on the regions institutions of higher education. The fiscal impact has been particularly pronounced in the public university system which relies heavily on the use of state funding for its annual operating budget. The Inland Southern California pu blic university system has been hit especially hard with economic consequences resulting in layoffs, furloughs, cancellation of classes, and a wide variety of campus resources that are no longer available to the community. Employers throughout the Inland Empire have expressed a need for more qualified candidates, especially those with a focus in science, technology, engineering, and mathematics (commonly referred to as STEM) fields. In fiscal year 2021 -2022, current estimates suggest an easing of the fina ncial pressures that have plagued many public institutions, county governments, and municipalities because of two distinct flows of funding. One of the primary tools the Council can provide to staff in regards to legislative actions is the annual legislative platform, and its various action items. The proposed amendment would create a new section within the platform (Access to Higher Education Resources) directing the City to support state investment into campuses serving the public university system that serve Inland Southern California to increase the availability of higher education resources in the region, including expanded student access to specialized programs, housing, and resources to ensure students’ basic needs are met. 2020-2025 Key Strategic Targets and Goals The recommendation to approve the amended 2021 Legislative and Regulatory Platform aligns the City’s position on federal and state legislative issues with the City’s 2020-2025 Key Targets including No. 2: Focused, Aligned Leadership and Unified Community, No. 3: Improved Quality of Life and No. 4: Economic Growth and Development. Fiscal Impact There is no fiscal impact associated with the approval of the amendment to the 2021 Legislative and Regulatory Platform for the City of San Bernardino. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the amendment to the 2021 Legislative and Regulatory Platform to include access to higher education. Attachments Attachment 1 Amended 2021 Legislative and Regulatory Platform Ward: All 10 Packet Pg. 83 7228 Page 3 Synopsis of Previous Council Actions: April 18, 2018 Mayor and City Council adopted Resolution No. 2018 - 117 establishing the legislative program policy and procedures and the 2018 Legislative and Regula tory Platform for the City of San Bernardino. December 5, 2018 Mayor and City Council adopted the 2019 Legislative and Regulatory Platform. February 19, 2020 Mayor and City Council adopted the 2020 Legislative and Regulatory Platform. November 18, 2020 Mayor and City Council adopted the 2021 Legislative and Regulatory Platform. 10 Packet Pg. 84 CITY OF SAN BERNARDINO 2021 Legislative Agenda (amended April 7th, 2021) The City of San Bernardino’s Legislative and Regulatory Platform guides City officials and staff in considering and rapidly responding to legislative and regulatory proposals introduced at the State and Federal levels based upon the City’s priority goals and objectives. 10.a Packet Pg. 85 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 1 Amended April 7th, 2021 City of San Bernardino LEADERSHIP /GOVERNANCE The City of San Bernardino is a Charter City operating under a council-manager form of government with an at-large elected Mayor and seven Council Members elected by constituents in a specific ward. Each elected official serves a four -year term. The Mayor and Council appoint the City Attorney, City Clerk and the City Manager. Serving as the City’s Chief Executive Officer, the City Manager has oversight responsibility for the departments of Community and Economic Development, Finance, Human Resources, Information Technology, Parks, Recreation and Community Services, Police, and Public Works. The City’s FY 2020/21 operating budget is $130.7 million including 616 full-time employees. The City also operates a Library and Water Department which, by charter, are governed by separate oversight boards. Fire and rescue services are provided through the County of San Bernardino Fire District. John Valdivia Mayor Theodore Sanchez Council Member Ward 1 Sandra Ibarra Council Member Ward 2 Juan Figueroa Council Member Ward 3 Fred Shorett Council Member Ward 4 Water Board Sonia Carvalho City Attorney Robert Field City Manager Community and Economic Development Finance Administration/ General Government Human Resources Information Technology Parks, Recreation and Community Services Police Public Works Genoveva Rocha City Clerk Library Board Ben Reynoso Council Member Ward 5 Kimberly Calvin Council Member Ward 6 Damon Alexander Council Member Ward 7 10.a Packet Pg. 86 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 2 Amended April 7th, 2021 C OMMUNITY PROFILE Located in the Inland Empire within the Riverside-San Bernardino metropolitan area of southern California, the City of San Bernardino is a community rich in history and cultural diversity. Today, the City of San Bernardino, which was founded in 1810, serves as the county seat and is the largest city in the County of San Bernardino with a population of over 218,000, a total of 57,547 households, covering more than 62 square miles. Nearly 59 percent of households in San Bernardino (33,760 total) qualify as low- to moderate-income, earning up to 80 percent of the Department of Housing and Urban Development (HUD) Area Median Family Income. San Bernardino is located approximately 60 miles east of Los Angeles, 120 mi les northeast of metropolitan San Diego and 55 miles northwest of Palm Springs. For more than 100 years, the City of San Bernardino has been a major transportation link between the east and west coasts. With rail, freeway, two nearby International Airport s and the Port of Los Angeles within an hour’s drive, San Bernardino is the link to national markets, Mexico and the Pacific Rim. In 2015, a Transit Center was opened , further connecting the City to more than 10 cities in a two county area and provides access to transcontinental bus connections. The Metrolink commuter rail service, available at the Santa Fe train station, provides long distance transportation to commuters from the San Bernardino area to major centers of employment, such as downtown Los Angeles, and Orange County, within 90 minutes. Further enhancing commuter connectivity, a new light rail program is in development extending service through San Bernardino to Redlands, California. The two San Bernardino stops are strategically located in the civic center and hospitality corridors. The two hospitals within the City limits, Community Hos pital of San Bernardino and St. Bernardine’s Medical Center, are both state of the art facilities. City residents also have access to the nearby Arrowhead Regional Medical Center and the world renowned Loma Linda University Medical Center. With 38 parks, including 31 playgrounds and eight community centers, residents can enjoy playgrounds, swimming, youth sports, adult sports, senior activities, and special interest classes. The City’s menu of programs and services includes a public library system comprised of one main and three library branches that provide life-long learning to the world of ideas, information and creative experience for all citizens of San Bernardino. Several highly regarded educational institutions are located within or in the nearby area. California State University, San Bernardino is located in the northwestern part of the City. San Bernardino Valley College is also within the City. The City is also home to the San Manuel Gateway College & Loma Linda University Health, an innovative new higher education resource that integrates training programs in health careers with clinical experience. Other attractions in San Bernardino include the McDonald’s Museum, which is located on the original site of the world’s first McDonald’s, California Theatre and the San Bernardino Mountains. In addition, the City is home to the Los Angeles Angels farm club, the Inland Empire 66ers minor league baseball team. 10.a Packet Pg. 87 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 3 Amended April 7th, 2021 LEGISLATIVE AGENDA (AMENDED APRIL 7TH, 2 021) FINANCIAL STABLITY The City is committed to developing a sustainable financial strategy that creates stability and allows the City to reinvest in operations and infrastructure. In these efforts, the Ci ty will support legislation that secures local government funding sources such as property taxes, sales tax, transient occupancy taxes and grants. The City will oppose legislation that creates unfunded mandates and legislation that eliminates or diverts local revenues. FOCUSED, ALIGNED LEADERSHIP AND UNIFIED COMMUNITY The City supports programs that promote community engagement and strengthen the City’s neighborhoods. The City will support measures that provide for workforce development, education and vocational training programs that meet the needs of the business community, improve job opportunities for residents and enhance regional education and job training programs. IMPROVED QUALITY OF LIFE The City is committed to developing programs that enhance emergency response, reduce crime and ensure neighborhoods and business areas are safe. As such, the City will support legislation and seek funding that strengthens law enforcement’s efforts to prevent and reduce crime and will help to contribute to emergency response and preparedness. The City supports regional initiatives to reduce and prevent homelessness as well as regional efforts to attain State and Federal funding for mutually beneficial projects, facilities, and shared resources. The City will oppose reductions in Federal and State funding for public safety programs as well as legislation and regulations that limit or preempt local control. ECONOMIC GROWTH AND DEVELOPMENT The City is dedicated to building a vibrant and sustainable local economy that allows for business development and job creation. To achieve these goals and objectives, the City will support legislative actions and funding that encourage economic development and provide the tools and resources needed for business growth and investment. The City will oppose measures that restrict the City’s ability to provide for local economic development or create disadvantages for businesses at the local and state levels. The City’s infrastructure has a direct impact on the quality of life in the City for both residents and the business community. As such, the City is committed to maintaining, improving and developing the City’s infrastructure including housing, parks, roads, bridges, sidewalks, bicycle lanes, storm drains, street lights, traffic signals, water and wastewater systems, as well as public transportation systems. The City will support legislation that provides funding and support to meet the infrastructure needs of the community, including transit-oriented housing. The City will oppose legislation that removes or reduces funding that would impact infrastructure projects or public transportation. 10.a Packet Pg. 88 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 4 Amended April 7th, 2021 HOUSING AND ECONOMIC DEVELOPMENT Housing Element: The 6th cycle Housing Element and associated environmental documents will be reviewed for compliance with state law by the California State Department of Housing and Community Development (HCD) and must be adopted by the City Council no later than October 15, 2021. Over the last few years, there have been substantial changes to s tate law related to affordable (attainable) housing and the components of the state mandated Housing Element. Due to these changes, it is anticipated that it will take HCD two rounds to review the draft Housing Element before it is ready for local governm ent adoption. With the financial constraints of local governments and the constraints placed on community outreach associated with the COVID-19 pandemic, it is not feasible to facilitate meaningful public participation in the Housing Element development and meet the state mandated deadline for the Housing Element adoption. The City recognizes and shares in the State’s goals for adequate housing at all income levels and that some solutions to the current housing affordability crisis may impact local land use authority. The City supports robust local community outreach and planning so that land use and zoning decisions reflect the unique needs of our community while still providing the requisite zoning to accommodate housing. Action: The City will advocate for the extension of the Housing Element submittal deadline to accommodate for the impacts of COVID-19 on the ability to conduct robust public participation. Any state preemption of local zoning or requirement to develop a particular housing type must be based on the housing element and associated zoning, provide some level of flexibility to meet the State’s zoning/housing goals so that community input can be factored into decision making, and provide the City with credit towards housing elements sites/Regional Housing Needs Assessment (RHNA). Regional Housing Needs Assessment (RHNA): The City of San Bernardino is home to a number of highly regarded educational institutions including California State University, San Bernardino with over 19,000 students and San Bernardino Valley College with over 17,000 students that must be included in the City’s affordable housing plan. At present, State law does not allow the housing needed to support the City’s student population to be counted towards the City’s affordable housing requirements. Given the unique needs of the City’s student population, consideration should be given to the inclusion of “student housing” whether it be dormitories, single room occupancy (SROs), or similar housing types in the City’s RHNA allocation. Because this circumstance applies to only a handful of jurisdictions, the Southern California Association of Government (SCAG) recommends that housing needs generated by public or private universities and colleges be addressed in the jurisdiction’s housing element if it is applicable. However, it is not clear if HCD will accept this category of housing as it 10.a Packet Pg. 89 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 5 Amended April 7th, 2021 evaluates a local jurisdiction’s draft Housing Element and if such housing will be acceptable and counts towards the jurisdictions RHNA allocation. Action: The City will advocate for policies and regulations that allow “student housing” whether it be dormitories, single room occupancy (SROs), or similar housing types to be a qualified component of RHNA compliance requirements and to allow the production of student housing over the previous five (5) years to be applied towards this cycle’s allocation. Transit Oriented Development (TOD): The City of San Bernardino is home to the San Bernardino Transit Center (SBTC) connecting the City to more than 10 cities in a two county area and providing access to transcontinental bus connections. This includes the bus rapid transit (BRT) service referred to as sbX. The SBTC site includes two acres of land and up to 150,000 square feet of potential transit oriented development in the form of mixed-use with higher density urban housing as a component. Action: The City of San Bernardino will support legislation, policies and funding that links the development of housing with improved public transit systems, local infrastructure and associated public services. Legislation, policies and funding must avoid a one-size-fits-all approach and recognize differences in regional and local community characteristics, demographics and contexts. Economic Development: The dissolution of redevelopment agencies in 2012 statewide has left local governments including the City of San Bernardino without the funding needed to invest in economic development efforts. Moreover, local funding for the creation of affordable housing was also eliminated through this action. City projects include former Redevelopment Agency projects such as the Carousel Mall (formerly the Central City Mall) occupying 44 acres of the City’s downtown, which will require demolition of four commercial blocks. The Mall included three major anchors and 52 in-line stores with at grade and structured parking. Action: The City will support legislation and policies that support economic development investment in projects such as the Carousel Mall project, including demolition, environmental testing, and clean-up and infrastructure upgrades. Homelessness Transitional and Permanent Supportive Housing: According to the last point-in-time count conducted by the County of San Bernardino, the City of San Bernardino is home to over 25% of the unsheltered homeless individuals in the County. Unsheltered individuals bring with them a myriad of health, socio-economic and environmental challenges that have a significant impact on their well-being and the communities in which they reside. 10.a Packet Pg. 90 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 6 Amended April 7th, 2021 Addressing these complex issues requires a collaborative approach, working across levels of government and with both public and private sector partners. The City is committed to assisting in the development of and participating in an effective regional approach to addressing homelessness, including providing transitional and permanent supportive housing. Efforts include strengthening existing programs and services; continued engagement and participation in the County’s Interage ncy Council on Homelessness; and providing for supportive services to ensure these members of our community can become permanently housed. Action: The City supports regional initiatives to reduce and prevent homelessness , as well as regional efforts to attain State and Federal funding for mutually beneficial projects, facilities and shared resources. The City will support legislation and initiatives that provide funding for permanent supportive housing for homeless individuals along with the wrap-around services needed to assist these individuals to become permanently housed. Additionally, the City will support programs that assist with monitoring and evaluation of the progress of individuals in these programs to ensure they are receiving the treatment and assistance they need. Transportation and City Infrastructure Streets and Roads: The City of San Bernardino has 621 miles of streets and roads, requiring substantial repair and repaving. Independent pavement management engineers rated more than 80% of the roads in San Bernardino as either poor or very poor. The cost associated with getting all of the City’s streets up to established standards are estimated at more than $210 million, not accounting for costs related to expansion of roadways or improvements in pedestrian paths. The City receives an average of $3.7 million annually in funding allocated through the State’s road maintenance and rehabilitation program (SB 1), which is combined with an additional $1.6 million annually in local transportation funds. While these funds are fully programmed on an annual basis for street rehabilitation projects, they are not sufficient to address the City’s existing roadway improvement needs. Action: The City will support legislation and policies that increase funding for streets, highway and roadway projects needed to adequately support current and future growth, particularly in disadvantaged communities. Storm water Infrastructure: The City is responsible for the maintenance and operation of storm water infrastructure in compliance with the requirements established under the 2010 Municipal Separate Storm Water Sewer System (MS4) permit. This order regulates waste discharge requirements for the discharge of urban storm water from areas of San Bernardino County within the Santa Ana Region to U.S. waterways. The requirements established under the current storm water system regulations have placed a significant financial burden on cities without any offsetting revenue. In order to comply with current 10.a Packet Pg. 91 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 7 Amended April 7th, 2021 mandates, the City’s storm water infrastructure must be retrofitted with trash capture devices in areas of high density. The repair, replacement, and expansion of storm drain infrastructure throughout the City are needed to support current and future development. Storm water infrastructure improvements are supported solely by development impact fees or general fund appropriations. Action: The City will support policies and programs that provide funding for the planning, construction, operation and maintenance of storm water and flood control projects. Public Facilities: The City has a backlog of over $250 million in facility maintenance and repairs needed to bring our public facilities u p to current standards. This includes the City Hall campus buildings, parking structures, libraries, community centers and the animal shelter. The City Hall facility, located in a high seismic activity zone, is not designed to meet modern seismic building standards. The building has several deficiencies that need to be addressed, including seismic retrofitting and systems replacements, with estimated costs in excess of $40 million. While the City has been able to program Community Development Block Grant (CDBG) funding to address the most urgent facility improvement needs in many of the City’s CDBG eligible libraries and community centers, funding for general government facilities is not readily available. Action: The City will support legislation and programs that provide funding designated for general facility rehabilitation and improvements, in addition to supporting community libraries, community centers, and animal shelter services. Parks and Open Spaces: The City has 38 community parks, including 31 playgrounds and eight community centers spread over more than 62 square mil es. Many of the City’s older parks and facilities are in need of renova tion, including the addition of active park services, such as soccer fields, to meet community demand. Action: The City will support legislation and policies that provide funding for local governments to support parks and recreation programs to enhance the quality of life for City residents. The City will support programs that provide funding for the rehabilitation, development and capital improvements of local parks and community f acilities. The City will support efforts to ensure that recreational utility, amenities, condition and the availability of improved outdoor space are taken into account as key factors in assessing the need for funding. The City will also support policies and programs that provide the funding needed to renovate public recreation facilities to conform to Federal Americans with Disabilities Act (ADA) regulations. 10.a Packet Pg. 92 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 8 Amended April 7th, 2021 QUALITY OF LIFE Library Services: The City operates a central library and three branch libraries providing our community with free access to information and creative experiences. The City’s library network offers access to 62 free internet public computers, free Wi-Fi and various electronic resources. The State of California’s adopted 2020-21 budget reduced the California Library Services Act (CLSA) funding by 50%. This funding is needed to support services such as e - resources, material delivery and internet connectivity. Action: The City will support legislation and funding for library services and facilities, including the restoration of funding for the CLSA. Public Safety and Emergency Response: The City is committed to developing programs that enhance emergency response, reduce crime and ensure neighborhoods and business areas are safe. Action: As such, the City will support legislation and seek funding that strengthens law enforcement’s efforts to prevent and reduce crime and will help to contribute to emergency response and preparedness. The City will oppose reductions in Federal and State funding for public safety programs, as well as legislation and regulations that limit or preempt local control. Commercial Cannabis: The City supports the operation of permitted commercial businesses. In order to ensure that legal cannabis businesses a re able to operate and remain competitive in the market place, the City seeks the State’s assistance in its enforcement efforts against illegal/unlicensed cannabis operations. The City supports State restrictions on the marketing of cannabis products to children and young adults. Action: The City will support legislation and regulations that promote legal operators and assist with enforcement efforts against illegal cannabis operations. The City will also support legislation and regulations that ensure that cannabis or cannabis products are not marketed in a manner that encourages underage consumption. Access to Higher Education Higher Education Resources: The City supports efforts to ensure access to quality higher education to elevate the quality of life for residents throughout Inland Southern California generally and in the City of San Bernardino specifically. Ensuring that access also assists in the City’s economic development efforts by encouraging private investment in the high - quality jobs, housing, and services our community desires and deserves. This effort requires equitable allocation of state resources into Inland Southern California’s higher education institutions and a commitment to ensuring adequate student housing, access to transportation, and other basic needs. 10.a Packet Pg. 93 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory City of San Bernardino Page 9 Amended April 7th, 2021 With just two public four-year degree granting institutions, the 4.6 million residents of Inland Southern California have limited options for attending public four-year degree granting institutions. While the two universities, the University of California, Riverside (UCR) and California State University, San Bernardino (CSUSB) provide outstanding educational resources, both are impacted, compelling Inland Southern California residents to commute to other areas to attend a public university (e.g. CSU Fullerton, Cal Poly Pomona) or choose a more expensive private university option. Furthermore, nearby schools in the CSU system already grapple with overcrowding themselves and therefore may not be feasible alternatives. All of these issues represent obstacles to higher education for an already underserved population. Employers throughout Inland Southern California consistently express concern about the pool of qualified applicants for job openings, including those holding degrees from four year universities, making educational attainment an area of concern as the region's economy matures and diversifies. The skills gap is particularly pronounced for employers needing people with skills gained from education in science, technology, eng ineering, and mathematics (commonly referred to as STEM) fields. Evidence of the important role higher education plays in the economy is the retention rate of college graduates (i.e. graduates who remain in the community as opposed to those who leave the area). For example, a recent study found that Riverside County has one of the highest retention rates in the United States, at approximately 71%, suggesting that there is a great deal of opportunity available for college graduates. Conversely, the percentage of Inland Southern California’s population that holds at least a Bachelor's degree is considerably lower than the statewide average. One available conclusion from this data is that the number of slots available for prospective college students is lower than that which is necessary to provide for the needs of the region's economy. First generation college students are common at the County's various colleges and universities. For instance, CSUSB has a remarkable track record for enrolling first - generation students, who comprise approximately 85% of the student body. Likewise, UCR has been noted for the important role it plays in providing access to first generation enrollees. First-generation students comprise about 65% of new and continuing UCR students, compared to 34% nationally. Action: The City will support state investment into campuses serving the public university system that serves Inland Southern California to increase the availability of higher education resources in the region, including expanded student access to specialized programs, housing, and resources to ensure students’ basic needs are met. 10.a Packet Pg. 94 Attachment: Amended 2021 Legislative and Regulatory Platform [Revision 1] (7228 : Amendment to the 2021 Legislative and Regulatory Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Genoveva Rocha, City Clerk Subject: Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes for the February 17, 2021, Regular Meeting of the Mayor and City Council. Attachments Attachment 1 February 17, 2021, Regular Meeting Minutes 11 Packet Pg. 95 City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org DRAFT MINUTES 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, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, FEBRUARY 17, 2021 5:30 PM CALL TO ORDER The Closed Session Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 5:30 PM by Mayor John Valdivia on Wednesday, February 17, 2021, via Web-Conference. Attendee Name Title Status Arrived Theodore Sanchez Council Member, Ward 1 Present Sandra Ibarra Mayor Pro-Tem, Ward 2 Present Juan Figueroa Council Member, Ward 3 Present Fred Shorett Council Member, Ward 4 Present Ben Reynoso Council Member, Ward 5 Present Kimberly Calvin Council Member, Ward 6 Present Damon L. Alexander Council Member, Ward 7 Present John Valdivia Mayor Present Genoveva Rocha City Clerk Present Sonia Carvalho City Attorney Present Robert D. Field City Manager Present Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander 11.a Packet Pg. 96 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 2 Printed 4/1/2021 CLOSED SESSION PUBLIC COMMENT There were no public comments received for Closed Session. CLOSED SESSION A) CONFERENCE W ITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4): One Case. 7:00 P.M. Mayor Valdivia called the regular meeting to order at 7:04 p.m. INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia asked Council Member Reynoso to lead the Pledge of Allegiance to the Flag. CLOSED SESSION REPORT City Attorney Carvalho reported that there was action taken on Item A – Conference with Legal Counsel – Anticipated Litigation, The City Council voted unanimously (7-0), authorizing the City to file receivership action on the property located at 1177 West 11th Street. Mayor Valdivia opened the meeting in honor of Willie Mary Spann Brue. CITY MANAGER UPDATE City Manager Field spoke on Black History Month events in the City and commented on various improvements throughout the City. APPOINTMENTS 2. Public Safety and Human Relation Commission Appointment (All Wards) Recommendation Approve the appointment of Mr. Jesse J. Carrillo to the Public Safety and Human Relations Commission as one of the Mayor's appointees, representing the City at large. Mr. Carrillo will replace Russell Fritz with the term ending December 2022. 3. Public Safety and Human Relations Commission Appointment (Ward 5) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, Calif ornia, approve the appointment of Mr. Daniel E. Peeden to the Public Safety and Human Relations Commission representing W ard 5. Mr. Peeden will replace Peter Torres with the term ending December 2024. Council Member Shorett asked if the City has a ward-specific nominee policy in place regarding appointing commissioners based off of the Ward they reside in and expressed 11.a Packet Pg. 97 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 4/1/2021 that the City should establish procedures that provide direction to City Council that they must nominate Commission and Committee members from within their ward. Council Member Calvin commented on the City Charter, stating that appointees only need to be a resident of the City and a registered voter. Mayor Pro Tem Ibarra asked for clarification on Mr. Daniel E. Peeden’s residency status and if he is still serving as a Commissioner for the City of Rialto. City Attorney Carvalho confirmed that the City Charter states that appointees for Boards and Commissions must be residents of the City, not specifically a resident of the ward. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY MAYOR PRO TEM IBARRA, to continue the appointment of Mr. Daniel D. Peeden to the Public Safe ty and Human Relations Commission representing Ward 5 to the next regular City Council meeting. Motion failed 2-5 (Council Members Sanchez, Figueroa, Reynoso, Calvin and Alexander opposed) MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER REYNOSO, to approve staff recommendations. Assistant City Manager Kramer stated that the Municipal Code that pertains to the Public Safety and Human Relations Commission does not specify that an individual does not have to be a resident of the ward, only a resident of the City. Mayor Valdivia expressed concerns over lack of City representation if there are too many appointees on one Board or Commission from one ward. Council Member Shorett echoed Mayor Valdivia’s concerns. Council Member Calvin expressed that members of Boards and Commission do not just represent one ward, they represent the City. Council Member Reynoso expressed that the City Charter states that appointees only need to be a resident of the City and a registered voter. Mayor Pro Tem Ibarra asked if Mr. Daniel E. Peeden could confirm if he is still serving as a Commissioner for the City of Rialto. Council Member Reynoso advised that Mr. Daniel E. Peeden is watching the meeting and confirmed with him that he is no longer serving as a Comm issioner for the City of Rialto. 11.a Packet Pg. 98 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 4/1/2021 RESULT: APPROVED THE APPOINTMENTS OF MR. JESSE J. CARILLO AND MR. DANIEL E. PEEDEN TO THE PUBLIC SAFETY AND HUMAN RELATIONS COMMISSION, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None PRESENTATIONS 4. Proclamation for Black History Month Mayor Valdivia recognized and celebrated February as Black History Month. . PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA Cheryl Valencia, San Bernardino, commented on the Mayor, leadership, and high crime rates in the City. David Freeman, San Bernardino, expressed his support for Agenda Item 10, creating the Ad Hoc Financing District Committee. Anabelle, San Bernardino, commented on the rental assistance program and expressed her support in having a non-profit administer the program. Nancy Phillips, San Bernardino, expressed her support for Agenda Item 10, creating the Ad Hoc Financing District Committee. Dorothy Garcia, San Bernardino, commented on Agenda Item 6 and expressed that she is not in support of staff’s recommendation. Maribel Nunez, Inland Equity Partnership, commented on the rental assistance program and expressed her support in having a non-profit administer the program; and commented on Item 6 on the Agenda and expressed that she is not in support of staff’s recommendation. Shirley Harlan, San Bernardino, commented on Agenda Item 6 and expressed that she is not in support of staff’s recommendation. Hardy Brown, San Bernardino, commented on racism and Black History Month. Gil Botello, San Bernardino, commented on Agenda Item 6 and expressed their support of a creation of an independent redistricting commission. Cheryl Brown, San Bernardino, expressed her opposition in allowing non-residents to serve on the Downtown Advisory Committee. 11.a Packet Pg. 99 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 4/1/2021 Paige Miller, San Bernardino, congratulated San Bernardino Police Department on the grants they have received and commented on Agenda Item 9, expressing her support of the Animal Services Intervention Program. Ms. Miller also asked questions regarding potential grants for the redevelopment of the Carousel Mall Property Andy, San Bernardino, commented on the Gun Buyback Program and expressed that he is against gun shows and gun show advertisements in the City. Robert Porter, San Bernardino, commented on supporting Measure S and ensuring that departments at the City are fully staffed. Treasure Ortiz, San Bernardino, commented on Item 23 of the Consent Calendar and the need for action and accountability. Leticia Garcia, San Bernardino, commented on the removal of the Mayor and expressed disapproval in City leadership. Jan Robinson, San Bernardino, commented on the need for a fire station in Ward 6, and addressed concerns of concrete and debris being illegally dumped. Anonymous, San Bernardino, commented on Agenda Item 9, expressing her support of the Animal Services Intervention Program, and also commented on Item 11 and the language regarding fees for an appeal and administrative citations. STAFF REPORTS 5. FY 2020/21 Mid-Year Budget Report (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and File the FY 2020/21 Mid-Year Budget Report; 2. Authorize the Director of Finance to Amend the FY 2020/21 Budget as outlined in the FY 2020/21 Mid-Year Budget Report; and 3. Authorize staff to proceed with preparing and soliciting requests for proposals (RFPs) for the replacement of the City’s building and safety permitting system, Public Works work order and asset management system and financial management payroll and timekeeping system. City Manager Field and Finance Director Whitehorn provided a presentation on the Mid- Year Budget Report. Council Member Alexander commented on funds in Undesignated Reserves and had the following recommendations: hire a Senior Management Analyst, an entry level Management Analyst, and strike the Public Information Officer position this Fiscal Year in the City Manager’s Office; hire a full-time Budget Analyst in the Finance Office; purchase code enforcement vehicles from a local vendor and strike the Deputy Director position and instead hire two Administrative Personnel in the Commun ity and Economic 11.a Packet Pg. 100 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 6 Printed 4/1/2021 Development Department; and strike the $82,000 recruitment fund request for the Police Department. Council Member Shorett spoke in support of staff recommendations. Mayor Valdivia thanked staff for the report and spoke on the under budge t of the Utility Users Tax, expressing that it has been his main concern. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve Staff’s recommendation. Motion failed 3-4 (Mayor Pro Tem Ibarra, and Council Members Reynoso, Calvin and Alexander opposed) Council Member Reynoso commented on funds in Undesignated Reserves and recruitment fund request by the Police Department. Council Member Reynoso had the following recommendations: hire a Senior Management Analyst, an entry level Management Analyst, and strike the Public Information Officer position this Fiscal Year in the City Manager’s Office; hire a full-time Budget Analyst in the Finance Office; purchase code enforcement vehicles from a local vendor and strike the Deputy Director position and instead hire two Administrative Personnel in the Community and Economic Development Department; and strike the $82,000 recruitment fund request for the Police Department. Mayor Pro Tem Ibarra commented on City staff considering interns inste ad of hiring staff and had the following recommendations: departments that are asking for additional positions look into utilizing interns from local colleges; remove the requested amount of $180,000 for the November 2020 election until the final cost is k nown; hire interns for the Deputy City Clerk and Office Assistant positions in the City Clerk’s Office; strike the Public Information Officer position in the City Manager’s Office; strike relocating Human Resources to the 8th Floor of the Vanir Tower; strike the internet upgrade and recommended that the City apply for grants to cover the cost; and strike the $82,000 recruitment fund request for the Police Department. Mayor Pro Tem Ibarra also requested that Finance Director Whitehorn come back to City Council with actual numbers of generated revenue and expenditures. Council Member Calvin commented on costs to retrofit City Hall, asked for clarification on the support position for the Mayor’s Office and recruitment funding for the Police Department. Council Member Figueroa spoke in support of the internship program, however expressed that it should not be utilized for cost saving measures and expressed that any office space on the 3rd floor should be dedicated towards staff. Council Member Sanchez commented on recruitment funding for the Police Department and spoke in favor of staff recommendations. SUBSTITUTE MOTION BY COUNCIL MEMBER ALEXANDER, SECONDED BY COUNCIL MEMBER REYNOSO, to include City Council recommendations and bring back the Mid-Year Budget Report at the next Regular City Council meeting. 11.a Packet Pg. 101 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 7 Printed 4/1/2021 RESULT: CONTINUED ITEM AND DIRECTED STAFF TO INCLUDE CITY COUNCIL RECOMMENDATIONS AND BRING THE ITEM BACK AT THE NEXT REGULAR CITY COUNCIL MEETING, CARRIED (4- 3) MOVER: Damon L. Alexander, Ward 7 SECONDER: Ben Reynoso, Ward 5 AYES: Ibarra, Reynoso, Calvin, Alexander NOES: Sanchez, Figueroa, Shorett Mayor Valdivia excused himself at 9:24 p.m., informing City Council that Mayor Pro Tem Ibarra will chair the remainder of the meeting and requested a 10 minute break. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER SANCHEZ, to continue the City Council meeting without a 10 minute break. RESULT: CONTINUED THE CITY COUNCIL MEETING WITHOUT A 10 MINUTE BREAK, CARRIED 7-0 – Passed Unanimously MOVER: Ben Reynoso, Ward 5 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 6. 2020 U.S. Census Electoral Redistricting Procedure (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive a report and provide staff direction regarding the 2020 U.S. Census electoral redistricting procedure. Assistant City Manager Kramer provided an overview of the staff report. Council Member Sanchez stated that he would like to make a motion with an amendment to approve staff recommendation of Option 1 with the amendment to require a minimum of one community meeting per ward before the maps are drawn and two meetings per ward subsequent to the maps being drawn, a total of 21 meetings. Council Member Shorett asked who would be leading the additional 21 meetings. Council Member Alexander commented on options that City Council will vote on regarding the drawing of boundary lines. Ms. Kramer commented on the maps that the demographer will prepare and present to City Council and members of the public. Council member Sanchez stated that under option 1, it dictates that a Citizen Advisory Committee will be established and would like it to be composed of one appointee per Council Member and the meetings would consist of the demographer, the Committee 11.a Packet Pg. 102 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 8 Printed 4/1/2021 members, the public, and Council Members. Council Member Shorett commented on the possibility of seven appointees on the Citizens Advisory Committee, and also asked clarification on Mayor appointees. Council member Reynoso asked if Council Member Sanchez would amend his motion to include the following: direct staff to bring back a resolution establishing a committee of eight members, with the Mayor and City Council each appointing one member. Council Member Alexander inquired if an even number of members would be acceptable. City Attorney Carvalho informed City Council that this would an advisory committee; therefore it will not be governed by the laws that govern a formal citizen committee. Council member Reynoso asked to amend the motion to include the following: direct staff to bring back a resolution establishing a committee of seven members, with each Council Member appointing one member. Council Member Calvin asked if City Council to alter their decision at a later time. Ms. Carvalho stated that she understands that City Council is leaning towards Option 1, with the inclusion of additional meetings, and to have an advisory committee consisting of seven members. She also stated that it does not sound like the motion can be amended unless the demographer informs City Council that they should reconsider. Ms. Kramer informed Council that staff needs to bring back a resolution to establi sh the advisory committee. Staff also needs to issue a request for proposals for a demographer that includes City Council direction. Council Member Calvin inquired if staff will be utilizing Assembly Bill 849 to assist with redistricting costs. Ms. Kramer advised that she does not anticipate the state assisting with covering the costs for the City’s redistricting process. She stated that staff will pursue all opportunities to be reimbursed, however the City will bear majority of the staff costs. Council Member Sanchez read a portion of Assembly Bill 849 regarding reimbursement to local agencies. Council Member Calvin thanked Council Member Sanchez, adding that the City needs it ensure that it is providing every opportunity for members of the public to participate. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff recommendation of establishing a Mayor and City Council/Citizen Advisory Committee with an amendment. RESULT: APPROVED STAFF RECOMMENDATION OF ESTABLISHING A MAYOR AND CITY COUNCIL/CITIZEN ADVISORY COMMITTEE WITH THE ADDITION THAT THE CITY REQUIRE A MINIMUM OF 11.a Packet Pg. 103 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 9 Printed 4/1/2021 ONE COMMUNITY MEETING PER WARD BEFORE THE MAPS ARE DRAWN AND TWO MEETINGS PER WARD SUBSEQUENT TO THE MAPS BEING DRAWN AND ESTABLISHED AN ELECTORAL REDISTRICTING ADVISORY COMMITTEE CONSISTING OF SEVEN MEMBERS WITH ONE RESIDENT OF EACH WARD, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None PUBLIC HEARINGS 7. Code Amendment - Downtown Advisory Committee (Wards 1 & 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Introduce, read by title only, and waive further reading of Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendment to Section 2.17.040 related to Appointment-Registered voters requirement-Compensation-Oath (Attachment 1); 2. Schedule the final reading and adoption of the above Ordinance for the regularly scheduled meeting of the Mayor and City Council on March 3, 2021; and 2. Adopt Resolution No. 2021-37 establishing a Downtown Advisory Committee to assist staff and PlaceWorks with the preparation of the Downtown Specific Plan. Mayor Pro Tem Ibarra opened the Public Hearing at 9:52 p.m. Community and Economic Development Director Huntley provided an overview of the staff report. City Clerk Genoveva Rocha informed City Council that there were no requests to speak. Council Member Calvin made a substitute to motion to include language that the appointee shall either be a resident of the City or a non-resident business owner with an active license and current operating business within the City of San Bernardino and at no point should there be more than 25% of members made up of non -residents of the City. Council Member Shorett commented on advocating for a business owner who may not live in the City, stating that they are invested in the City, and asked about Committee member applications. Council Member Alexander asked staff when the committee would be disbanded. 11.a Packet Pg. 104 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 10 Printed 4/1/2021 Mr. Huntley advised that as soon as the Downtown Specific Plan is adopted, t he committee would be disbanded and that staff will incorporate that language into the resolution. Ms. Kramer advised that the language is already incorporated in the resolution. Mayor Pro Tem Ibarra closed the Public Hearing at 10:03 p.m. SUBSTITUTE MOTION BY COUNCIL MEMBER CALVIN, SECONDED BY COUNCIL MEMBER ALEXANDER, to approve staff recommendation with an amendment to Resolution 2021-37. RESULT: APPROVED STAFF RECOMMENDATION WITH AN AMENDMENT TO RESOLUTION 2021-37 TO INCLUDE LANGUAGE THAT THE APPOINTEE SHALL EITHER BE A RESIDENT OF THE CITY OR A NON-RESIDENT BUSINESS OWNER WITH AN ACTIVE AND CURRENT BUSINESS LICENSE AND NO POINT SHOULD THERE BE MORE THAN 25% OF MEMBERS MADE UP OF NON- RESIDENTS OF THE CITY, CARRIED 7-0 – Passed Unanimously MOVER: Kimberly Calvin, Ward 6 SECONDER: Damon L. Alexander, Ward 7 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None CONSENT CALENDAR Items on the Consent Calendar are considered routine and are voted on in a single motion, unless a Council or staff member has pulled the item for more discussion. Council Member Sanchez pulled Item No. 11. Council Member Figueroa pulled Item Nos. 9, 19 and 20. Council Member Shorett pulled Item No. 16. Council Member Reynoso pulled Item Nos. 12, 21 and 22. Council Member Calvin pulled Item No. 24. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve the Consent Calendar and pull item Nos. 9, 11, 12, 16, 19, 20, 21, 22 and 24. 11.a Packet Pg. 105 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 11 Printed 4/1/2021 RESULT: APPROVE THE CONSENT CALENDAR AND PULL ITEM NOS. 9, 11, 12, 16, 19, 20, 21, 22, and 24, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 8. Approval of the Mayor and City Council Meeting Minutes Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes from the April 29, 2020, January 20, 2021, January 27, 2021, and February 3, 2021, Mayor and City Council meetings. RESULT: APPROVED THE MEETING MINUTES FROM THE APRIL 29, 2020, JANUARY 20, 2021, JANUARY 27, 2021, AND FEBRUARY 3, 2021, MAYOR AND CITY COUNCIL MEETINGS, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 9. Animal Services Intervention Program (All Wards) Recommendation Approve Resolution 2021-25 of the Mayor and City Council of the City of San Bernardino, California, authorizing the Animal Services Department to enter into a cooperative agreement with the Lange Foundation for additional support to the citizens of the City of San Bernardino and their pets; and authorizing the City Manager or designee to execute the agreement. Council Member Figueroa pulled Item No. 9 for discussion. MOTION BY COUNCIL MEMBER FIGUEROA, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff’s recommendation. 11.a Packet Pg. 106 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 12 Printed 4/1/2021 RESULT: APPROVED RESOLUTION 2021-25 AUTHORIZING THE ANIMAL SERVICES DEPARTMENT TO ENTER INTO A COOPERATIVE AGREEMENT WITH THE LANGE FOUNDATION FOR ADDITIONAL SUPPORT TO THE CITIZENS OF THE CITY OF SAN BERNARDINO AND THEIR PETS; AND AUTHORIZED THE CITY MANAGER OR DESIGNEE TO EXECUTE THE AGREEMENT, CARRIED 7-0 – Passed Unanimously MOVER: Juan Figueroa, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 10. City Council - Ad Hoc Financing District Committee (All Wards) Recommendation Adopt Resolution No. 2020-26 of the Mayor and City Council of the City of San Bernardino, California, establishing the Ad Hoc Financing District Advisory Committee. RESULT: ADOPTED RESOLUTION NO. 2020-26 ESTABLISHING THE AD HOC FINANCING DISTRICT ADVISORY COMMITTEE, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 11. Ordinance Updating Chapters 9.92 and 9.93 of the San Bernardino Municipal Code Related to Administrative Citation and Administrative Civil Penalty Procedures (All Wards) Recommendation Adopt Ordinance No. MC-1553 of the Mayor and City Council of the City of San Bernardino, California, amending Chapters 9.92 an d 9.93 of the San Bernardino Municipal Code Related to Administrative Citation and Administrative Civil Penalty Procedures. Council Member Sanchez pulled Item No. 11 for discussion. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff’s recommendation. 11.a Packet Pg. 107 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 13 Printed 4/1/2021 RESULT: ADOPTED ORDINANCE NO. MC-1553 AMENDING CHAPTERS 9.92 AND 9.93 OF THE SAN BERNARDINO MUNICIPAL CODE RELATED TO ADMINISTRATIVE CITATION AND ADMINISTRATIVE CIVIL PENALTY PROCEDURES, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 12. Transfer of City Real Property Assets to NPHS and MECH (Wards 1, 2, 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-27 of the Mayor and City Council of the City of San Bernardino, California, approving the transfer of certain City-owned real property assets to Neighborhood Partnership Housing Services, for the Infill Housing Program; 2. Adopt Resolution No. 2021-28 of the Mayor and City Council of the City of San Bernardino, California, approving the transfer of certain City-owned real property assets to Mary Erickson Community Housing, for the Infill Housing Program; and 3. Authorize the City Manager or designee to take any further actions as necessary to effectuate the transfer of the real property assets. Council Member Reynoso pulled Item No. 12 for discussion. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER ALEXANDER, to approve staff’s recommendation. RESULT: ADOPTED RESOLUTION NO. 2021-27 AND RESOLUTION NO. 2021-28 AND AUTHORIZED THE CITY MANAGER OF DESIGNEE TO TAKE ANY FURTHER ACTIONS AS NECESSARY TO EFFECTUATE THE TRANSFER OF THE REAL PROPERTY ASSETS, CARRIED 7-0 – Passed Unanimously MOVER: Ben Reynoso, Ward 5 SECONDER: Damon L. Alexander, Ward 7 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 13. Report on Use of Measure Z Funds for Fiscal Year 2019/20 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California receive and file a report on the use of Measure Z funds and the 11.a Packet Pg. 108 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 14 Printed 4/1/2021 accompanying independent accountant's report for Fiscal Year 2019/20 approved by the Measure S Citizen’s Oversight Committee on February 1, 2021. RESULT: RECEIVED AND FILED A REPORT ON THE USE OF MEASURE Z FUNDS AND THE ACCOMPANYING INDEPENDENT ACCOUNTANT'S REPORT FOR FISCAL YEAR 2019/20 APPROVED BY THE MEASURE S CITIZEN’S OVERSIGHT COMMITTEE ON FEBRUARY 1, 2021, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 14. Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for January and February 2021. RESULT: APPROVED THE COMMERCIAL AND PAYROLL DISBURSEMENTS FOR JANUARY AND FEBRUARY 2021, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 15. Amendment to LCW Legal Service Agreement (All Wards) Recommendation Adopt Resolution No. 2021-29 of the Mayor and City Council of the City of San Bernardino, California, approving the first amendment to professional services agreement with Liebert Cassidy Whitmore for legal services in an amount not to exceed $154,000; and authorizing the City Manager to execute the agreement. 11.a Packet Pg. 109 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 15 Printed 4/1/2021 RESULT: ADOPTED RESOLUTION NO. 2021-29 APPROVING THE FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH LIEBERT CASSIDY WHITMORE FOR LEGAL SERVICES IN AN AMOUNT NOT TO EXCEED $154,000; AND AUTHORIZED THE CITY MANAGER TO EXECUTE THE AGREEMENT, MAYOR AND CITY COUNCIL MEETINGS, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 16. Resolution Recognizing the San Bernardino Police Dispatch Association (SBPDA) for the Dispatch Unit (All Wards) Recommendation Adopt Resolution No. 2021-30 of the Mayor and City Council of the City of San Bernardino, California, recognizing the San Bernardino Police Dispatch Association (SBPDA) as the majority representative for the Police Dispatcher I and Police Dispatcher II positions for the purposes of employer -employee relations with the City. Council Member Shorett pulled Item No. 16 for discussion and stated he will not be supporting this item, commenting on the fiscal impact and expressed concerns on having a bargaining unit for one classification. Director of Human Resources Eveland provided additional information on the report, informing City Council that the Police Dispatchers have complied with all of the requirements. Ms. Eveland added that they are represented by the general unit, which is comprised of non-sworn staff even though they work with the police department. Council Member Sanchez commented on the amount of hours and type of work Police Dispatchers perform and would like to support San Bernardino’s Police and Dispatchers. Council Member Reynoso inquired the amount of pay Police Dispatchers receive. Council Member Shorett asked who represents the general employees. Ms. Eveland advised the general employees are currently represented by the International Union of Operating Engineers and informed City Council of current compensation and step ranges. MOTION BY COUNCIL MEMBER SANCHEZ, to approve staff’s recommendation. There was no second. SUBSTITUTE MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER REYNOSO, to reject the adoption of Resolution No. 2021-30 of the Mayor and City Council of the City of San Bernardino, California, recognizing the San Bernardino Police Dispatch Association (SBPDA) as the 11.a Packet Pg. 110 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 16 Printed 4/1/2021 majority representative for the Police Dispatcher I and Police Dispatcher II positions for the purposes of employer-employee relations with the City. ALTERNATE MOTION BY COUNCIL MEMBER SANCHEZ, to continue the item to the next regular City Council meeting. There was no second. Council Member Calvin asked if the San Bernardino Police Dispatch Association has been recognized by the National Leader Board and what is the purpose of the request. Ms. Eveland advised that they have not, and stated that the request is from the employees that have the title of Police Dispatcher I and Police Dispatcher II in non- supervisory positions, clarifying that they wish to separate from the general unit and form their own association representing themselves in regards to issues of employment. Council Member Sanchez commented that a majority of Police Dispatchers voted to separate from the general unit. RESULT: REJECTED THE ADOPTION OF RESOLUTION NO. 2021-30 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, RECOGNIZING THE SAN BERNARDINO POLICE DISPATCH ASSOCIATION (SBPDA) AS THE MAJORITY REPRESENTATIVE FOR THE POLICE DISPATCHER I AND POLICE DISPATCHER II POSITIONS FOR THE PURPOSES OF EMPLOYER-EMPLOYEE RELATIONS WITH THE CITY, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Ben Reynoso, Ward 5 AYES: Ibarra, Shorett, Reynoso, Alexander ABSTAIN: Calvin NOES: Sanchez, Figueroa 17. Updating the Procedure for Industrial Disability Retirement (IDR) Determinations of Local Safety Officer Employees of the Public Employees’ Retirement System (All Wards) Recommendation Adopt Resolution No. 2021-31 of the Mayor and City Council of the City of San Bernardino, California, updating the procedure for Industrial Disability Retireme nt (IDR) determinations of local safety officer employees of the Public Employees’ Retirement System. 11.a Packet Pg. 111 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 17 Printed 4/1/2021 RESULT: ADOPTED RESOLUTION NO. 2021-31 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, UPDATING THE PROCEDURE FOR INDUSTRIAL DISABILITY RETIREMENT (IDR) DETERMINATIONS OF LOCAL SAFETY OFFICER EMPLOYEES OF THE PUBLIC EMPLOYEES’ RETIREMENT SYSTEM, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 18. Approving Job Descriptions and Classifications and Amending the Salary Schedule (All Wards) Recommendation Adopt Resolution No. 2021-32 of the Mayor and City Council of the City of San Bernardino, California, approving the job descriptions and classifications for Public Information Officer (U), Housing Compliance Specialist, and Community Development Block Grant (CDBG)/Housing Program Assistant; and Amending the city-wide salary schedule for full-time, part-time, temporary, and seasonal positions; and repealing Resolution No. 2020-293. RESULT: ADOPTED RESOLUTION NO. 2021-32 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE JOB DESCRIPTIONS AND CLASSIFICATIONS FOR PUBLIC INFORMATION OFFICER (U), HOUSING COMPLIANCE SPECIALIST, AND COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG)/HOUSING PROGRAM ASSISTANT; AND AMENDING THE CITY-WIDE SALARY SCHEDULE FOR FULL- TIME, PART-TIME, TEMPORARY, AND SEASONAL POSITIONS; AND REPEALING RESOLUTION NO. 2020-293, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 19. Third Amendment to Lease Agreement with Vanir Tower Building, Inc. (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2021-33 authorizing the City Manager to execute Amendment No. 3 to the Lease Agreement with Vanir Tower Building, Inc., 290 North D Street, San Bernardino, California, increasing rental space to include Suite 803, effective March 1, 2021, and extending the Lease Agreement through June 30, 2024. 11.a Packet Pg. 112 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 18 Printed 4/1/2021 Council Member Figueroa pulled Item No. 19 for discussion and commented that this item was included in the Mid-Year Budget Report that was not approved, asked if this item was related to the report, and why it was under the Consent Calendar instead of Staff Report. City Manager Field advised it is part of the Mid-Year Budget Report and the item would need to be continued. Mr. Field advised if it is the preference of the City Council, it will be brought back as a Staff Report item. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER REYNOSO, to continue the item. RESULT: CONTINUED THE THIRD AMENDMENT TO LEASE AGREEMENT WITH VANIR TOWER BUILDING, INC. TO THE NEXT REGULAR CITY COUNCIL MEETING AS A STAFF REPORT ITEM, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 20. Professional Services Agreement – Pepper Street Rehabilitation (Wards 3, 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-34: 1. Authorizing the Director of Finance to appropriate $49,122 from Measure I Fund No. 129 to Pepper Avenue Rehabilitation from Baseline Road to Mill Street Project (“Project”), Account No. 129-160-8713; and 2. Authorizing the City Manager to execute a Professional Services Agreement with Kabbara Engineering in the amount of $234,911 for the Project . Council Member Figueroa pulled Item No. 20 for discussion. MOTION BY COUNCIL MEMBER FIGUEROA, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff’s recommendation. 11.a Packet Pg. 113 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 19 Printed 4/1/2021 RESULT: ADOPTED RESOLUTION NO. 2021-34 AUTHORIZING THE DIRECTOR OF FINANCE TO APPROPRIATE $49,122 FROM MEASURE I FUND NO. 129 TO PEPPER AVENUE REHABILITATION FROM BASELINE ROAD TO MILL STREET PROJECT (“PROJECT”), ACCOUNT NO. 129-160-8713 AND AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT WITH KABBARA ENGINEERING IN THE AMOUNT OF $234,911 FOR THE PROJECT, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 21. FY 2020/21 Capital Improvement Plan Update (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the attached Work Plan Update on the FY 2020/21 Capital Improvement Program. Council Member Reynoso pulled Item No. 21 for discussion. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve staff’s recommendation. RESULT: RECEIVED AND FILED THE ATTACHED WORK PLAN UPDATE ON THE FY 2020/21 CAPITAL IMPROVEMENT PROGRAM, CARRIED 7-0 – Passed Unanimously MOVER: Ben Reynoso, Ward 5 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 22. Exempt Surplus Land Declaration - San Marcos Street and Congress Street Property (Ward 3) Recommendation Adopt Resolution No. 2021-35 of the Mayor and City Council of the City of San Bernardino, California, declaring City-owned property commonly known as San Marcos Avenue and Congress Street, located northerly of the southerly line of Parcel 3 as shown on Parcel Map 19648 recorded i n Parcel Map Book 253 Pages 51 and 52 records of San Bernardino County, APN 0274 -011-29 (“Property”), as “exempt surplus land,” as defined; and direct the City Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for the disposition of surplus land and finding the action exempt from CEQA. Council Member Reynoso pulled Item No. 22 for discussion expressing that he will be 11.a Packet Pg. 114 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 20 Printed 4/1/2021 making a motion to deny staff’s recommendation. Council Member Sanchez stated he would like staff to provide additional information on the staff report. Public Works Director Jensen provided information on surplus land and the definition under the Surplus Land Act. City Manager Field provided information on staff’s recommendation and ex plained that this process would vacate an unused and unusable stretch of road. Council Member Reynoso asked if the project is exempt from CEQA. Ms. Jensen advised that only the action of declaring the land surplus is exempt from CEQA, not the project itself. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER CALVIN, to deny Resolution No. 2021-35 and deny staff’s recommendation. SUBSTITUTE MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER ALEXANDER, to continue the item to next regular city council meeting. RESULT: CONTINUED ITEM TO THE NEXT REGULAR CITY COUNCIL MEETING, CARRIED (5-2) MOVER: Theodore Sanchez, Ward 1 SECONDER: Damon L. Alexander, Ward 7 AYES: Sanchez, Ibarra, Shorett, Calvin, Alexander NOES: Figueroa, Reynoso 23. Citywide Pavement Rehabilitation Change Order 1 (All Wards) Recommendation Adopt Resolution No. 2021-36 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute Contract Change Order (CCO) #1 to Project No. 7306 with American Asphalt South, Inc., in the amount of $137,223.84, for a full contract not -to-exceed amount totaling $768,733.84; and authorizing the Director of Finance to increase the purchase order to reflect the full, approved project cost. RESULT: ADOPTED RESOLUTION NO. 2021-36 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE CONTRACT CHANGE ORDER (CCO) #1 TO PROJECT NO. 7306 WITH AMERICAN ASPHALT SOUTH, INC., IN THE AMOUNT OF $137,223.84, FOR A FULL CONTRACT NOT-TO-EXCEED AMOUNT TOTALING $768,733.84; AND AUTHORIZING THE DIRECTOR OF FINANCE TO INCREASE THE PURCHASE ORDER 11.a Packet Pg. 115 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 21 Printed 4/1/2021 TO REFLECT THE FULL, APPROVED PROJECT COST, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 24. Authorization to Issue Request for Proposals for Bridging Architecture Design Services for the Demolition of the Carousel Mall (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, provide direction authorizing the release of a Request for Proposals for bridging architecture design services for the demolition of the Carousel Mall. Council Member Calvin pulled Item No. 24 for discussion and asked if the property was going to be sold as-is in the original Request for Proposals. Community and Economic Development Director Huntley advised that demolition would be discussed during negotiations when Request for Proposals is received by the City. City Manager Field advised that the intention is the make the site development ready and to recoup the expenditures on demolition through the sale of the property. Council Member Calvin stated there is no rush to make this decision tonight, and that the money does not have to be expended at this time. Mr. Field advised there is no specific timeline and if City Council would like, staff can bring this item back at a later date. Council Member Shorett stated that City Council discussed this issue in October and Council gave direction to staff to consider demolition. Council Member Sanchez commented that if the City committed to demolishing the Carousel Mall and all this item does is ask for bids. Council Member Reynoso stated that he is uncomfortable approving this agenda item. Council Member Calvin stated that City Council needs to understand what the urgency is. City Manager Field advised the demolition has to be publicly bid and there is not any particular urgency. Mr. Field also stated that a decision has not been made with respect to demolition. MOTION BY COUNCIL MEMBER CALVIN, SECONDED BY COUNCIL MEMBER REYNOSO, to continue item for further discussion before brought back to City Council. 11.a Packet Pg. 116 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 22 Printed 4/1/2021 RESULT: CONTINUE ITEM FOR FURTHER DISCUSSION BEFORE BROUGHT BACK TO CITY COUNCIL, CARRIED (6-1) MOVER: Kimberly Calvin, Ward 6 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Ibarra, Shorett, Reynoso, Calvin, Alexander NOES: Figueroa 25. Receive and File the Audited Comprehensive Annual Financial Report of San Bernardino Municipal Water Department for Fiscal Year Ended June 30, 2020 Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the audited Comprehensive Annual Financial Report of the San Bernardino Water Department’s Water, Sewer Treatment, and Sewer Collection utilities for the Fiscal Year ended June 30, 2020. RESULT: RECEIVED AND FILED THE AUDITED COMPREHENSIVE ANNUAL FINANCIAL REPORT OF THE SAN BERNARDINO WATER DEPARTMENT’S WATER, SEWER TREATMENT, AND SEWER COLLECTION UTILITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2020, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS A. Procedures for Evaluating City Council Appointed Employees – Council Member Alexander MOTION BY COUNCIL MEMBER ALEXANDER, SECOND BY COUNCIL MEMBER REYNOSO, to bring back procedures and policies within the next 30 days on how City Council evaluates appointed employees. CARRIED 6-1 (COUNCIL MEMBER FIGUEROA OPPOSED) MOTION BY COUNCIL MEMBER CALVIN, SECONDED BY COUNCIL MEMBER REYNOSO, to hold a special meeting to discuss the conflict of interest and improprieties referring to the matters of the Redevelopment of the Carousel Mall Property. CARRIED 7-0 – Passed Unanimously ITEMS TO BE REFERRED TO COMMITTEE There were no items referred to the Committee. REPORTS ON CONFERENCES/MEETINGS ATTENDED There were no reports on conferences/meetings attended from the Mayor or City Council. 11.a Packet Pg. 117 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes February 17, 2021 Mayor and City Council of the City of San Bernardino Page 23 Printed 4/1/2021 ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 11:46 p.m. The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, March 3, 2021 via tele-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. 11.a Packet Pg. 118 Attachment: Attachment 1 - 02-17-2021 Draft Regular Meeting Minutes (7242 : Approval of the Mayor and City Council Meeting Minutes (All Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Genoveva Rocha, City Clerk Subject: Electoral Redistricting Advisory Committee Recommendation Adopt Resolution No. 2021-70 of the Mayor and City Council of the City of San Bernardino, California, establishing the Electoral Redistricting Advisory Committee Background Each city with district-based elections is required to update (“redistrict”) the district boundaries every ten years under the Fair Maps Act, following the receipt of updated population data from each federal decennial census. It is anticipated that the 2020 federal census will be published and available to the City in September 2021. At the February 17, 2021, meeting, the Mayor and City Council directed staff to establish an Electoral Redistricting Advisory Committee in preparation for evaluating the federal census data. Discussion Article VI Section 600- Boards, Commissions and Committees of the City of San Bernardino Charter allows the Council to create new boards, commissions, and committees and set the structure, memberships, powers, and duties of those boards, commissions, and committees. The Electoral Redistricting Advisory Committee will be an advisory body to the Mayor and City Council and will consist of seven members with one resident from each ward. The purpose of the committee is to allow for active participation, engage community members and provide recommendations to the Mayor and City Council regarding the establishment of ward boundaries based upon the 2020 U.S. Census data, taking into consideration the following factors: (a) population, (b) topography, (c) geography, (d) cohesiveness, contiguity, integrity, and compactness of territory, and (e) communities of interests. While serving on the committee, a member may not be a candidate for office, nor can 12 Packet Pg. 119 7181 Page 2 they endorse, work for, volunteer for, be an immediate family member of, or make a campaign contribution to, a candidate for any City elective office. Pursuant to Chapter 2.17 of the San Bernardino Municipal Code, no member of the committee can be employed by the City. Each member of the committee shall serve without compensation; participation in the Committee is temporary and will terminate when the Mayor and City Council adopt the City’s ward map based upon the 2020 U.S. Census data. 2020-2025 Strategic Targets and Goals Establishing an Electoral Redistricting Advisory Committee aligns with Goal No. 2A: Focused, Aligned, Leadership and Unified Community- Develop and implement a community engagement plan. By establishing the committee, the City is engaging individuals and groups throughout the city in a transparent and inclusive redistricting process to ensure that residents have fair representation in government that reflects their interests. Fiscal Impact There is no fiscal impact to the City by establishing the Electoral Redistricting Advisory Committee. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-70, establishing the Electoral Redistricting Advisory Committee. Attachments Attachment 1 Resolution No. 2021-70 Ward: All Wards Synopsis of Previous Council Actions: On February 17, 2021, the Mayor and City Council directed staff to proceed with establishing an Electoral Redistricting Advisory Committee consisting of seven members with one resident from each ward. 12 Packet Pg. 120 RESOLUTION NO.2021-70 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING THE ELECTORAL REDISTRICTING ADVISORY COMMITTEE WHEREAS, the Fair Maps Act requires the City to go through a redistricting process every 10 years, following the completion of the United States (U.S.) Census that reestablishes the boundaries of the City’s electoral wards to reflect new population data and shifting populations; and WHEREAS, a Census was completed by the U.S. Census Bureau in 2020 and the data will be released in 2021; and WHEREAS, Article VII, Section 802 of the City Charter stipulates that the City is to be divided into seven (7) wards; and WHEREAS, Article VII, Section 803 of the City Charter stipulates that periodic adjustments to ward boundaries are to be made to maintain each in compact form and as nearly equal in population and possible, consistent with applicable State and Federal laws; and WHEREAS, Article VII, Section 800 of the City Charter stipulates that City primary and general elections are to be held in consolidation with the State Primary Election and the State General Election every two (2) years; and WHEREAS, Under the Fair Maps Act, the City’s ward map must be adopted at least 174 days before the next City election (Elections Code §21622); and WHEREAS, the next local municipal election will be the primary election currently scheduled on June 7, 2022; and WHEREAS, it is important to engage individuals and groups throughout the City in a transparent and inclusive redistricting process to ensure that residents have fair representation in government that reflect their interests; and WHEREAS, the City Council desires to establish the Electoral Redistricting Advisory Committee by enactment of this resolution, and establish its duties and membership; and WHEREAS, participation by the members of the Committee is temporary and will terminate when the ward map based upon the 2020 U.S. Census data is adopted by the Mayor and City Council. 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 thi s reference. 12.a Packet Pg. 121 Attachment: Attachment 1 - Resolution No. 2021-70 Electoral Redistricting Advisory Committee [Revision 1] (7181 : Electoral Redistricting Resolution No. ___ SECTION 2. The City Council hereby forms the Electoral Redistricting Advisory Committee, which shall be an advisory body to the Mayor and City Council. The purpose of the committee is to allow for active participation, engage community members and provide recommendations to the Mayor and City Council regarding the establishment of ward boundaries based upon the 2020 U.S. Census data, taking into consideration the following factors: (a) population, (b) topography, (c) geography, (d) cohesiveness, contiguity, integrity and compactness of territory, and (e) communities of interests. A community of interest is a contiguous population that shares common social and economic interests that should be included within a single ward for purposes of its effective and fair representation. Communities of interest shall not include relationships with political parties, incumbents, or political candidates. The geographic integrity of any local neighborhood or local community of interest shall be respected in a manner that minimizes its division to the extent possible without violating the requirements of the federal Voting Rights Act, the California Voting Rights Act, California Fair Maps Act, and the California Election Code. To the extent practicable, wards shall be drawn to encourage geographical compactness such that nearby areas of population is not bypassed for more distant areas of population. SECTION 3. The committee will be made of a total of seven (7) members with one resident of each ward to be appointed pursuant to Article VI, Section 601 of the City Charter. Participation by the members of the Committee is temporary and will terminate when the City’s ward map based upon the 2020 U.S. Census data is adopted by the Mayor and City Council. SECTION 4. Each member of the committee shall serve without compensation. The Committee shall organize by electing from among its membership a chairman and a vice chairman and operate pursuant to Chapter 2.17 of the San Bernardino Municipal Code. The Committee shall meet at designated times to allow for participation by its members and the public. SECTION 5. While serving on the committee a member may not be a candidate for office nor can they endorse, work for, volunteer for, be an immediate family member of, or make a campaign contribution to, a candidate for any City elective office. Pursuant to Chapter 2.17 of the San Bernardino Municipal Code, no member of the committee can be employed by the City. SECTION 6. The Committee shall hold one (1) hearing and work with City staff and consultants to ensure that one (1) workshop is held in each ward before the drawing of any maps are completed and two (2) workshops are held in each ward after draft maps are prepared for review. 12.a Packet Pg. 122 Attachment: Attachment 1 - Resolution No. 2021-70 Electoral Redistricting Advisory Committee [Revision 1] (7181 : Electoral Redistricting Resolution No. ___ SECTION 7. 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 8. 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 9. 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 __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 12.a Packet Pg. 123 Attachment: Attachment 1 - Resolution No. 2021-70 Electoral Redistricting Advisory Committee [Revision 1] (7181 : Electoral Redistricting Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: AYES NAYS ABSTAIN ABSENT VALDIVIA _____ _____ _______ _______ SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 12.a Packet Pg. 124 Attachment: Attachment 1 - Resolution No. 2021-70 Electoral Redistricting Advisory Committee [Revision 1] (7181 : Electoral Redistricting Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Third Amendment to Neighborhood Stabilization Program (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: Adopt Resolution No. 2021-71 approving the Third Amendment to Neighborhood Stabilization Program Developer Master Agreement and Exclusive Negotiation Agreement with Mary Erickson Community Housing, a Non Profit Corporation, and Authorizing the City Manager or Designee to take any further actions and execute additional documents as necessary to effectuate the agreements. Background On July 30, 2008, Congress enacted the Neighborhood Stabilization Program (NSP), to address the nationwide residential foreclosure crisis. The City of San Bernardino received $8,000,000 in NSP funds, twenty-five percent of which was required to be used to assist households earning 50% or less of the area median income. As a result of a Notice of Funding Availability (NOFA) issued in 2008, the San Bernardino Redevelopment Agency (Agency) chose Mary Erickson Community Housing (MECH), to undertake the acquisition, rehabilitation, and management function of rental properties that would serve households at or below 50 percent of the average median income (AMI). On July 20, 2009, the Mayor and City Council approved a Neighborhood Stabilization Program Master Agreement (NSP Agreement) between the Agency and MECH for the acquisition and rehabilitation of scattered site apartment buildings. The NSP Agreement provided $2,100,000 in NSP and $1,000,000 from the Low and Moderate Income Housing Fund (Low-Mod) for the acquisition of four-plexes in the area bounded by 19th Street to the north, Sunrise Lane to the south, Guthrie to the east and Argyle to the west. Under the original NSP Agreement, the Agency provided a $3,100,000 loan at 3% interest to MECH, for the acquisition of properties. 13 Packet Pg. 125 7210 Page 2 On December 21, 2009, the Agency and MECH entered into Amendment No. 1 to the NSP Agreement. Under the first amendment, the Agency made available to MECH an additional $1,520,000; comprised of $520,000 in NSP funds and $1,000,000 in Low- Mod funds. On November 1, 2010, the Agency and MECH entered into Amendment No. 2 to the NSP Agreement. Under the second amendment, the Agency made available an additional $1,600,000 consisting of Low-Mod funds. In total, the Agency provided a $6,220,000 loan for the acquisition and rehabilitation of 52 units in 13 four - plexes, all restricted for occupancy by households earning fifty percent of the AMI. The current 50 percent area median income for a family of four is $37,650. Discussion The Agency and the developer envisioned that the project would be able to obtain conventional financing and repay a portion of the City loan. However, in February 2012, by order of the California Supreme Court, redevelopment agencies in California were dissolved. Consequently, the Agency ceased to exist and all work related to projects it had undertaken was halted. In August 2012, the City filed Chapter 9 bankruptcy creating further instability. In the intervening years, attempts were made to resolve the outstanding issues; however, substantial progress was not made. In the last three years, staff has been working to clean up redevelopment projects that were left in limbo. The City has determined that the existing agreement should be amended to address the following circumstances: (1) the Agency was eliminated and the City is now the successor in interest to all interests of the Agency; (2) provisions of the existing agreement regarding over-income tenants are unnecessarily restrictive and should be revised to reflect the current HOME regulations; and (3) MECH desires to be paid for outstanding costs owed by the Agency and pay the City amounts it is owed. Currently, each of the 13 four-plexes has its own loan and affordability covenants. However, in order to further the City objective to operate and treat the properties as one coordinated project, the 13 City loans are to be replaced with one combined City loan. The combined City loan will be subordinate to the Clearinghouse CDFI loan. MECH’s obligations to the City will be guaranteed pursuant to a guaranty, as crafted by the City’s legal counsel, in the form of Attachment No. 6 to the Third Amendment. The execution and delivery of the guaranty by MECH is a condition of the City’s willingness to enter into the Third Amendment. Staff worked with Keyser Marston Associates (KMA), a real estate consulting firm, to analyze the feasibility of MECH’s proposed refinance. Based on the cash flow analys is undertaken by KMA the project can support an amortized loan based and pay residual receipts to the City on its loan. Clearinghouse CDFI has provided MECH with a letter of commitment for an amortized $820,000 loan for a term of 25 years at 3.5 percent interest. Community Development Financial Institutions (CDFIs) are mission -driven financial institutions that create economic opportunity for disadvantaged individuals and small businesses, to facilitate quality affordable housing, and essential community services. The loan proceeds will be disbursed as follows: 13 Packet Pg. 126 7210 Page 3 Disbursement of Refinance Proceeds City of San Bernardino $379,000 Reimbursement to MECH $211,000 Loan to MECH for Unreimbursed Costs1 $230,000 Total $820,000 1The loan will fund project operating reserves, fencing and refinancing costs. In the original NSP Agreement, the Agency granted MECH the right of first opportunity to develop a future second phase on properties that the Agency acquired in the designated area. In total, the Agency acquired 18 vacant parcels in the 19th and Sunrise area that the Successor Agency now owns. The provision for the right of first opportunity did not establish a time certain by which MECH had to exercise that right and provide a development proposal to the City. The City desires to set a timeframe for performance. Consequently, an Exclusive Negotiation Agreement has been developed that provides MECH four months to negotiate a Disposition and Development Agreement with the City on the 18 parcels. If MECH a nd the City cannot come to a mutually agreed upon development strategy for the 18 parcels, the City will be free to identify another development partner and address the vacant and blighted conditions of the 18 parcels. 2020-2025 Key Strategic Targets and Goals Approval of the Third Amendment to the Neighborhood Stabilization Program Developer Master Agreement and Exclusive Negotiation Agreement aligns with Key Target No.1: Financial Stability by ensuring the project is financially sound and can pay its residual receipts; and Key Target No. 3: Improved Quality of Life by setting a time frame for the development 18 vacant and blighted parcels. Fiscal Impact No fiscal impact to the City General Fund. The NSP and Low-Mod funds will receive funds for use in meeting the City’s affordable housing goals. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-71 approving the Third Amendment to Neighborhood Stabilization Program Developer Master Agreement and Exclusive Negotiation Agreement with Mary Erickson Community Housing, a Non Profit Corporation, and Authorizing the City Manager or Designee to take any further actions and execute additional documents as necessary to effectuate the agreements. Attachments Attachment 1 Resolution 2021-71 Attachment 2 Third Amendment to Neighborhood Stabilization Program Developer Master Agreement 13 Packet Pg. 127 7210 Page 4 Attachment 3 Exclusive Negotiation Agreement Ward: 7 Synopsis of Previous Council Action: July 20, 2009 The Mayor and City Council approved an NSP Master Agreement between the Redevelopment Agency of the City of San Bernardino and MECH. December 21, 2009 The Agency and the MECH entered into Amendment No. 1 to the NSP Agreement. November 1, 2010 The Agency and MECH entered into Amendment No. 2 to the NSP Agreement. 13 Packet Pg. 128 RESOLUTION NO.2021-71 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE THIRD AMENDMENT TO NEIGHBORHOOD STABILIZATION PROGRAM DEVELOPER MASTER AGREEMENT AND EXCLUSIVE NEGOTIATION AGREEMENT WITH MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO TAKE ANY FURTHER ACTIONS AND EXECUTE ADDITIONAL DOCUMENTS AS NECESSARY TO EFFECTUATE THE AGREEMENTS WHEREAS, on July 20, 2009 the Mayor and City Council approved a Neighborhood Stabilization Program Master Agreement (NSP Agreement) between the Redevelopment Agency of the City of San Bernardino (Former Agency) and Mary Erickson Community Housing (MECH) for $3,100,000 to acquire and rehabilitate scattered site apartment buildings; and WHEREAS, in the NSP Agreement the Former Agency also granted an unrestricted right of first refusal on the future development of 18 Former Agency-owned parcels; and WHEREAS, on December 21, 2009, the Former Agency entered into Amendment No. 1 to the NSP Agreement providing an additional $1,520,000 dollars; and WHEREAS, on November 1, 2010, the Former Agency entered into Amendment No.2 to the NSP Agreement, providing an addition $1,600,000, thus making a total loan of $6,220,000 to MECH for the acquisition and rehabilitation of 52 units in 13 four-plexes; and WHEREAS, with the dissolution of redevelopment and the City’s bankruptcy in 2012, the project was halted; and WHEREAS, there remained outstanding payments to MECH and to the City as well provisions in the existing agreement that needed to revised; and WHEREAS, the City desires to pay MECH for outstanding costs owed and the City desires to be paid outstanding costs owed; and WHEREAS, the City desires to limit to a time certain the right of first refusal and formally close the development project; 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. 13.a Packet Pg. 129 Attachment: Attachment 1 Resolution No. 2021-71 [Revision 1] (7210 : Third Amendment to Neighborhood Stabilization Program (Ward 7)) Resolution No. ___ SECTION 2. The Mayor and City Council do hereby approve the the Third Amendment to Neighborhood Stabilization Program Developer Master Agreement (“Third Amendment”) and Exclusive Negotiation Agreement (“Negotiation Agreement”) with Mary Erickson Community Housing a Non Profit Corporation and Authorize the City Manager or designee to take any further actions and execute additional documents as necessary to effectuate the agreements. The Third Amendment and Negotiation Agreement are both attached hereto and incorporated herein as Exhibits “A” and “B,” respectively. 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 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 City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 13.a Packet Pg. 130 Attachment: Attachment 1 Resolution No. 2021-71 [Revision 1] (7210 : Third Amendment to Neighborhood Stabilization Program (Ward 7)) Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 13.a Packet Pg. 131 Attachment: Attachment 1 Resolution No. 2021-71 [Revision 1] (7210 : Third Amendment to Neighborhood Stabilization Program (Ward 7)) 4844-2559-9345v20/200430-0020 THIRD AMENDMENT TO NEIGHBORHOOD STABILIZATION PROGRAM DEVELOPER MASTER AGREEMENT by and among the CITY OF SAN BERNARDINO and MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION and EASTPOINTE VILLAGE AFFORDABLE HOUSING, LLC and AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO 13.b Packet Pg. 132 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 1 4844-2559-9345v20/200430-0020 THIRD AMENDMENT TO NEIGHBORHOOD STABILIZATION PROGRAM DEVELOPER MASTER AGREEMENT This THIRD AMENDMENT TO NEIGHBORHOOD STABILIZATION PROGRAM DEVELOPER MASTER AGREEMENT (the “Third Amendment”), dated, for identification purposes only, as of April 7, 2021 (the “Third Amendment Date”), is entered into by and among the CITY OF SAN BERNARDINO, a municipal corporation and charter city (“City”), MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION, a California corporation, which is also known as MARY ERICKSON COMMUNITY HOUSING, INC., a California nonprofit public benefit corporation (“MECH”), EASTPOINTE VILLAGE AFFORDABLE HOUSING, LLC, a California limited liability company (“New Developer”), and AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, a California 501(c)(3) public benefit corporation (“AHS”). R E C I T A L S A. As part of its governmental functions, City has applied for, received, and administered programs involving certain federal funding sources, such as the Neighborhood Stabilization Program (“NSP”) as described in title III of Division B of the Housing and Economic Recovery Act of 2008 (“HERA”). B. City previously established a redevelopment agency known as the Redevelopment Agency of the City of San Bernardino (the “Former Agency”), which operated under the California Community Redevelopment Law, Chapter 1 of Part 1 of Title 24 of the California Health and Safety Code (the “Redevelopment Law”). C. The Former Agency and MECH entered into an agreement entitled “Neighborhood Stabilization Program Developer Master Agreement” dated as of July 20, 2009 (the “Original Agreement”). A copy of the Original Agreement is on file with City as a public record. D. The Original Agreement provided for the MECH to undertake development activities concerning affordable rental housing and to operate rental facilities at several sites, as more particularly set forth in the Original Agreement. The Original Agreement contemplated that MECH would acquire a series of fifteen (15) fourplexes located on East 19th Street (the “19th Street Properties”) and ten (10 fourplexes located on Sunrise Lane (the “Sunrise Lane Properties”, and, together with the 19th Street Properties, the “Original Agreement Properties”). Due to certain circumstances, AHS holds title to certain of the Original Agreement Properties notwithstanding that MECH was to hold title to such properties. Under the Original Agreement, the Former Agency made available to MECH in connection with the acquisition and redevelopment of the Original Agreement Properties the sum of Three Million One Hundred Thousand Dollars ($3,100,000.00) (the “Original Agreement Amount”), consisting of One Million Dollars ($1,000,000.00) of revenues described at Section 33334.2 and 33334.3 of the California Health and Safety Code (“Housing Setaside Moneys”) and Two Million One Hundred Thousand Dollars ($2,100,000.00) of moneys from the NSP program. E. In connection with the implementation of the Original Agreement, promissory notes evidencing the obligation to repay loans (the “Original Loans”) were executed and delivered by MECH to Former Agency, covenants were executed and recorded among the Official Records (as 13.b Packet Pg. 133 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 2 4844-2559-9345v20/200430-0020 defined below), and deeds of trust were executed and recorded among the Official Records as follows: (i) as to 2030 E. 19th Street, a promissory note in the original principal amount of $404,379 (the “2030 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2009-0413047 (the “2030 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2009-0413045 (the “2030 Covenants”); (ii) as to 2194 E. 19th Street, a promissory note in the original principal amount of $430,350 (the “2194 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2009-0412471 (the “2194 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2009-0412471 (the “2194 Covenants”); (iii) as to 2104 E. 19th Street, a promissory note in the original principal amount of $406,719 (the “2104 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0132853 (the “2104 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0132854 (the “2104 Covenants”); (iv) as to 2285 E. Sunrise Lane, a promissory note in the original principal amount of $414,247 (the “2285 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0158908 (the “2285 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0158907 (the “2285 Covenants”); (v) as to 2205 E. Sunrise Lane, a promissory note in the original principal amount of $464,784 (the “2205 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0153344 (the “2205 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0153345 (the “2205 Covenants”); (vi) as to 2118 E. 19th Street, a promissory note in the original principal amount of $444,826 (the “2030 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0205870 (the “2118 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0205871 (the “2118 Covenants”); (vii) as to 2148 E. 19th Street, a promissory note in the original principal amount of $481,614 (the “2148 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0211401 (the “2148 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0211399 (the “2148 Covenants”); (viii) as to 2082 E. 19th Street, a promissory note in the original principal amount of $438,327 (the “2030 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0015862 (the “2082 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0015861 (the “2082 Covenants”); (ix) as to 2295 E. Sunrise Lane, a promissory note in the original principal amount of $468,102 (the “2295 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0033509 (the “2295 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0033508 (the “2295 Covenants”); 13.b Packet Pg. 134 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 3 4844-2559-9345v20/200430-0020 (x) as to 2164 E. 19th Street, a promissory note in the original principal amount of $449,186 (the “2164 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0362205 (the “2164 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0362204 (the “2164 Covenants”); (xi) as to 2225 E. Sunrise Lane, a promissory note in the original principal amount of $614,310.48 (the “2225 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2011-0068852 (the “2225 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2011-0068551 (the “2225 Covenants”); (xii) as to 2068 E. 19th Street, a promissory note in the original principal amount of $621,279.64 (the “2068 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2011-00447708 (the “2068 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2011-00447709 (the “2068 Covenants”); and (xiii) as to 2056 E. 19th Street, a promissory note in the original principal amount of $626,091.79 (the “2056 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2011-0553147 (the “2056 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2011-0553148 (the “2056 Covenants”). The 2030 Promissory Note, the 2194 Promissory Note, the 2104 Promissory Note, the 2285 Promissory Note, the 2205 Promissory Note, the 2118 Promissory Note, the 2148 Promissory Note, the 2082 Promissory Note, the 2295 Promissory Note, the 2164 Promissory Note, the 2225 Promissory Note, the 2068 Promissory Note, and the 2056 Promissory Note are collectively referred to as the “Original Promissory Notes.” The 2030 Deed of Trust, the 2194 Deed of Trust, the 2104 Deed of Trust, the 2285 Deed of Trust, the 2205 Deed of Trust, the 2118 Deed of Trust, the 2148 Deed of Trust, the 2082 Deed of Trust, the 2295 Deed of Trust, the 2164 Deed of Trust, the 2225 Deed of Trust, the 2068 Deed of Trust, and the 2056 Deed of Trust are collectively referred to as the “Original Deeds of Trust.” The 2030 Covenants, the 2194 Covenants, the 2104 Covenants, the 2285 Covenants, the 2205 Covenants, the 2118 Covenants, the 2148 Covenants, the 2082 Covenants, the 2295 Covenants, the 2164 Covenants, the 2225 Covenants, the 2068 Covenants, and the 2056 Covenants are collectively referred to as the “Original Covenants.” In addition, Former Agency and MECH entered into an unrecorded agreement entitled “Development Agreement” as to each of the Original Agreement Properties; such agreements are collectively referred to as the “Development Agreements.” F. The Former Agency and all other redevelopment agencies in the State of California were dissolved pursuant to ABx1 26, as created by the California Legislature in 2011 (the “2011 Dissolution Enactment”). The dissolution of redevelopment agencies was further prescribed by AB 1484, Chapter 26 of Statutes of 2012 (“AB 1484” and, together with the 2011 Dissolution Enactment as amended by AB 1484, the “Redevelopment Dissolution Measure”). G. Under the Redevelopment Law, the Former Agency was required to and did devote Housing Setaside Moneys to activities for the acquisition of property, improvement to property, rehabilitation of properties and preservation of properties which are housing resources benefitting 13.b Packet Pg. 135 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 4 4844-2559-9345v20/200430-0020 and restored to use by and available to households of limited income. As part of the Former Agency’s activities using Housing Setaside Moneys, the Former Agency acquired certain lots which are collectively referred to as the “Site” in that certain agreement entitled “Neighborhood Stabilization Program Developer Master Agreement” dated as of July 20, 2009 by and among the Former Agency, the City and the MECH (the “Original Agreement”), a copy of which is on file with City as a public record. The Former Agency, in conjunction with the City, also utilized certain funding from the NSP program. The Former Agency and the MECH also entered into agreement entitled “Amendment No. 1 to the Neighborhood Stabilization Program Developer Master Agreement by and between the Redevelopment Agency of the City of San Bernardino and Mary Erickson Community Housing, Inc.”, dated as of December 21, 2009 (the “First Amendment”); under the First Amendment, the Former Agency made available to MECH the additional amount of One Million Five Hundred Twenty Thousand Dollars ($1,520,000.00) (the “First Amendment Amount”), consisting of Five Hundred Twenty Thousand Dollars ($520,000.00) of NSP Program Funds and One Million Dollars ($1,000,000.00) of moneys from Housing Setaside Moneys. Former Agency and MECH also entered into an agreement entitled “Amendment No. 2 to the Neighborhood Stabilization Program Developer Master Agreement by and between the Redevelopment Agency of the City of San Bernardino and Mary Erickson Community Housing, Inc.” dated as of November 1, 2010 (the “Second Amendment” and, together with the Original Agreement as amended by the First Amendment, the “Existing Agreement”). Under the Second Amendment, the former Agency made available to MECH the additional amount of One Million Six Hundred Thousand Dollar ($1,600,000.00) (the “Second Amendment Amount”), consisting of Housing Setaside Moneys. In total, the Former Agency made Six Million Two Hundred Twenty Thousand Dollars ($6,220,000.00) available to the MECH. Under the Existing Agreement, MECH is required to develop on certain property defined in the Existing Agreement as the “Site” dwelling units for occupancy by households of limited income, all as more particularly set forth in the Existing Agreement. All capitalized terms not defined herein shall have the respective meanings set forth therefor in the Existing Agreement. H. Following the elimination of the Former Agency, the housing assets of the Former Agency (including without limitation of the Existing Agreement Properties and all rights of the Former Agency under the Existing Agreement) were transferred to the City acting as housing successor agency (in such capacity, “Housing Successor Agency”) to the Former Agency. I. In the course of administering the Existing Agreement, each of City and MECH has determined that the Existing Agreement should be amended to address the following circumstances: (i) the Former Agency was eliminated and the City is now the successor in interest to all interest of the Former Agency under the Existing Agreement as well as being the beneficial owner of the Existing Agreement Properties; (ii) certain, specific provisions requiring particular actions by MECH are no longer necessary or appropriate; (iii) certain provisions of the Existing Agreement regarding tenants experiencing increased incomes are unnecessarily restrictive and should be revised to reflect HOME regulations contained within 24 CFR 92.251 pertaining to over-income tenants; (iv) various typographical errors or technical defects have been identified in the Existing Agreement or instruments executed pursuant thereto which should be corrected as a matter of record; (v) continuing to have deeds of trust of record showing as beneficiary the Former Agency (rather than the Housing Successor Agency) promotes confusion with regard to the state of record title; and (vi) in the case of one property that was intended to be vested in MECH, that property is vested in AHS: AHS does not desire to hold title to such property (as identified Section 8, below, as the AHS Property). J. Each of MECH and New Developer has arranged for a loan (the “Bank Loan”) to be made by Clearinghouse CDFI (the “Bank”) in the original principal amount of Eight Hundred 13.b Packet Pg. 136 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 5 4844-2559-9345v20/200430-0020 Twenty Thousand Dollars ($820,000.00) (the “Bank Loan Amount”), the proceeds of which will be applied to (i) reduce the amount outstanding on the indebtedness of MECH and/or New Developer to City, (ii) defray project costs, and (iii) accomplish the payment of certain amounts owed to City from residual receipts. The Bank Loan will be evidenced by a promissory note (the “Bank Note”) with payment secured by a deed of trust (the “Bank Deed of Trust”). Each of MECH and New Developer represents that a condition of the willingness of the Bank to make the Bank Loan is that (i) the City subordinate, or cause to be subordinated to the Bank Deed of Trust, or reconvey the Original Deeds of Trust which secure payments of those moneys previously loaned by City to MECH (“Original City Loans”) under the Original Promissory Notes, and (ii) AHS subordinate, reconvey or cause to be reconveyed those certain deeds of trust recorded among the Official Records as Document No. 2011- 0447708 and Document No. 2011-0553147 (the “AHS Deeds of Trust”). The Bank requires that the Bank Deed of Trust be recorded against those properties described in Attachment No. 1 hereto as the “Bank Security Properties.” K. In connection with the obtaining of title insurance by which the Bank Loan Amount will be insured, Old Republic Title (the “Title Insurer”) requires, and each of the Bank, New Developer, and MECH agree, that MECH will execute or cause to be executed deeds and, to the extent necessary, other instruments to effect a transfer of title to all properties referenced in Recital E hereto to New Developer, whereupon New Developer will execute those instruments provided hereunder, including without limitation the “New City Master Note” and the “New City Master Deed of Trust” (as defined below) under which New Developer will assume all obligations of MECH with respect to such properties and become liable for all performance required by MECH and/or New Developer under the Original Agreement and all amendments thereto, including without limitation this Third Amendment. L. City, MECH and New Developer desire to restate a common maturity for amounts owing to MECH and/or New Developer, and, in addition, to restate a common period under which the properties subject to the Original Covenants will remain subject to the provisions of such Original Covenants. The common period under which the properties subject to the Original Covenants will remain subject to the provisions of such Original Covenants shall be as set forth in the “City Developer Overlay CC&Rs” substantially in the form of Attachment No. 7 hereto. M. In order to accommodate the interests of the Bank as generally described in Recital J, above, and to further the objective of City, New Developer, and MECH that all of the Existing Agreement Properties be operated and treated as one coordinated project, the Original City Loans are to be replaced with one new City loan (the “New City Master Loan”), substantially as described in Section 9 hereof, to be evidenced by a new promissory note (the “New City Note”), which is a restatement and aggregation of the Original City Loans but payable by New Developer, and to be secured by a deed of trust (the “New City Master Deed of Trust”) to be recorded as to all of the Existing Agreement Properties. The New City Master Deed of Trust shall be subordinate to the Bank Deed of Trust as to those properties with respect to which the Bank Deed of Trust is recorded; otherwise, the New City Master Deed of Trust shall be a senior, first deed of trust. The obligations of New Developer to City shall be guaranteed by MECH pursuant to a guaranty substantially in the form of Attachment No. 6 hereto (the “Guaranty”). The execution and delivery to City is a condition precedent to the obligations of City and its willingness to enter into this Third Amendment but for which City would not enter into this Third Amendment. N. To address the matters described in Recitals J, K and L, above, the parties have agreed to enter into this Third Amendment. 13.b Packet Pg. 137 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 6 4844-2559-9345v20/200430-0020 O. This Third Amendment is in the vital and best interest of the City of San Bernardino, California, and the health, safety and welfare of its residents. NOW, THEREFORE, for and in consideration of the mutual promises, covenants, and conditions herein contained, the Parties hereto agree as follows: 1. Capitalized Terms; Additional Definitions. Except to the extent expressly defined herein, capitalized terms shall have the meanings established under the Existing Agreement. MECH, New Developer, AHS and City together constitute the “Parties.” Additional definitions are contained herein, as indicated by quotation marks, as well as the following: “AHS Property Quitclaim” means a recordable instrument in the form of Attachment No. 2. “City Developer Overlay CC&Rs” means a recordable instrument in the form of Attachment No. 7. “Guaranty” means a guaranty by Mary Erickson Community Housing A Non Profit Corporation, a California corporation, to and for the benefit of City, substantially in the form of Attachment No. 6. “New City Master Deed of Trust” means a deed of trust in the form of Attachment No. 4. “New City Master Note” means a promissory note in the form of Attachment No. 3. “Official Records”, unless the context shall otherwise require, means the official land records of the County Recorder of the County of San Bernardino. “Release and Reconveyance” means a form of substitution of trustee, release and reconveyance substantially in one of the forms set forth at Attachment No. 5 to this Third Amendment. 2. Deletions. The following portions of the Existing Agreement shall be deemed deleted and shall be of no further force and effect: (i) Part (E) of Section 4 of the Original Agreement; (ii) Part 4 (Program Implementation) of Exhibit “P” to the Original Agreement; (iii) Part 2 (Employment Requirement) at Exhibit “Q” of the Original Agreement; and (iv) the last line “Residents aske to move due to income considerations will be given 60 days’ notice” of Part 10 (Eviction/Move Outs) at Exhibit “Q” of the Original Agreement with the intention to modify, to reflect HOME regulations contained within 24 CFR 92.251 pertaining to over-income tenants. 3. Corrections and Clarifications. The following corrections and clarifications are noted and deemed made by this Third Amendment: (i) the limitation upon the amounts payable to a partner in a tax credit limited partnership set forth as $15,000 in the Original Agreement at Exhibit “E”, part C2.(b), at page 31, shall be revised to $10,000; and (ii) as a matter of record, no NSP moneys were utilized with respect to the Agency Assisted Units at 2225 Sunrise Lane; (iii) the occupancy of dwelling units shall be limited to two (2) persons per bedroom plus one (1) notwithstanding the language of Exhibit “Q” of the Original Agreement. 4. Assignments of Rights. 13.b Packet Pg. 138 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 7 4844-2559-9345v20/200430-0020 4.1 Assignment of Rights by AHS to MECH. AHS agrees by this Third Amendment to quitclaim its interests in the AHS Property to MECH by the AHS Property Quitclaim; in addition, AHS agrees to execute and cause the recordation of a Release and Reconveyance as to the AHS Deeds of Trust upon request therefor by City. Other than with respect to the provision of such quitclaim and such Release and Reconveyance, for valuable consideration the receipt of which is hereby acknowledged by AHS, AHS hereby assigns and transfers to City, and City hereby receives, all right, title and interest to the extent AHS holds any such interests in the Existing Agreement, including without limitation the Original Promissory Notes, the Original Deeds of Trust, and the Original Covenants, to City. 4.2 Assignment of Rights by MECH to New Developer. MECH assigns all right, title, and interest of MECH with respect to the properties referenced in Recital E hereof to New Developer; New Developer agrees to accept such assignment and to be bound to perform as “Developer” under the Original Agreement as heretofore amended and under this Third Amendment as “New Developer.” MECH further assigns to New Developer all rights to receive payments under Section 5.2 of this Third Amendment. City consents to the assignment by MECH to New Developer of all right, title, and interest of MECH with respect to the properties referenced in Recital E hereof to New Developer provided that MECH execute and causes to be delivered to City the Guaranty. 5. Modifications Concerning MECH Fee; Payments Due to MECH; Payments Due to City. 5.1 Payments to City. MECH is required to pay to City the sum of Two Hundred Forty Three Thousand Two Hundred Fifty Dollars ($243,215.00) (the “City Amount” as of the Third Amendment Date) under various loans as referenced at Recital E of this Agreement. 5.2 Payments to MECH. Under the Original Agreement, the MECH was to receive certain remuneration therein described as a “MECH Fee”, as determined by a formula as set forth in the Original Agreement. Following numerous discussions regarding this matter, City and MECH have agreed that the amount of the MECH Fee that remains unpaid is One Hundred Eighty Thousand Three Hundred Twenty Two Dollars ($108,322.00) (the “Base MECH Fee Amount”). MECH and City agree that no interest should have accrued, nor shall interest hereafter accrue, on the Base MECH Fee (or any other portion of the MECH Fee). The MECH Fee is in the nature of a grant and not a loan to MECH. The economic substance of the moneys characterized herein as a “MECH Fee” is in the nature of a grant and not a loan to MECH. MECH, New Developer, and City agree that City shall set aside the sum of Sixty Six Thousand Nine Hundred Eighty Nine Dollars ($66,989.00) (the “MECH Fee Bonus Amount”) based upon performance by MECH with respect to execution of an exclusive negotiation agreement. No interest shall accrue on the MECH Fee Bonus Amount. MECH, New Developer, and City further agree that of the permanent loan proceeds, in addition to the those amounts remitted as the Base MECH Fee and the MECH Fee Bonus Amount, and provided that City has received, concurrent with closing of a refinancing, the City Amount, MECH may receive and retain from proceeds of the refinancing loan the sum of Thirty Five thousand Six Hundred Twenty Nine Dollars ($35,629.00) (this amount represents Project Costs funded by MECH, 2255 Sunrise Acquisition Costs, 2018 failed refinance costs; and Two Hundred Twenty Nine Thousand Seven Hundred Ninety Three Dollars ($229,793.00)(the “Unreimbursed Project Cost Amount”). 13.b Packet Pg. 139 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 8 4844-2559-9345v20/200430-0020 City, New Developer, and MECH may execute supplemental escrow instructions which implement a netting out of amounts payable to City as the City Amount against other amounts payable by City or otherwise to be made available by the refinancing lender to MECH and/or New Developer. With respect to the allocation to MECH (and/or New Developer) of moneys pursuant to this Section 5.2, MECH and New Developer may reallocate such amounts as between MECH and New Developer, and may so instruct the escrow holder, without necessity of first obtaining the written approval of City. 6. Protocol Concerning Over-Income Households. To address treatment of households that initially qualified but thereafter earn incomes greater than that within the income limits of the income category that applied as of the inception of such tenancy, the provisions of 24 CFR 92.252 shall be deemed applicable pursuant to this Third Amendment. 7. Administration of Certain Moneys. To the extent the Existing Agreement, or any instrument executed in connection therewith or in implementation thereof, provides that MECH is to make or direct payments to AmerNational, or a similarly named entity, such provisions are no longer of any force and effect. The Original Loans were funded using moneys available to the City and Former Agency, respectively; the allocation of payments heretofore or hereafter received by City in connection with the Original Loans and the New City Master Loan Agreement based upon the funding sources originally utilized shall be accomplished by City at its sole discretion from time to time and is a matter with which MECH is not concerned. MECH has been holding the amount of Seventy Seven Thousand Dollars ($77,000.00) (the “Fence Amount”) to address fence installation and repairs; with respect to the Fence Amount, MECH may retain such moneys for uses of its choosing. 8. Property Held In the Name of AHS. In the case of one of the Original Agreement Properties (designated as 2056 19th Street, San Bernardino, APN 1191-031-05; herein as the “AHS Property”), title is held by AHS as of the Third Amendment Date. AHS agrees to take actions to convey title to the AHS Property to MECH, and MECH agrees to accept the conveyance of the AHS Property; thereafter, MECH shall convey the AHS Property to New Developer and New Developer agrees to accept conveyance of title thereto. The AHS Property shall be made subject to covenants of record, the New City Master Note, and the New City Master Deed of Trust, as further provided in Section 9, below. 9. Restatement of City Loan; New City Master Deed of Trust. The Original City Loans shall be restated and combined into one loan, to be evidenced by a promissory note substantially in the form of Attachment No. 3 hereto (the “New City Master Note”). Repayment under the New City Master Note shall be secured by one deed of trust, to be recorded as to all of the Original Agreement Properties; such deed of trust shall be substantially in the form of Attachment No. 4 hereto (the “New City Master Deed of Trust”). 10. Escrow Instructions Regarding Documents to be Executed and Delivered to Implement the Third Amendment, and Title Insurance. Following the execution of this Third Amendment, the City will prepare escrow instructions to implement provisions of this Third Amendment and which include: (i) a delineation of all documents to be executed and delivered, including without limitation the AHS Property Quitclaim (substantially in the form of Attachment 13.b Packet Pg. 140 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 9 4844-2559-9345v20/200430-0020 No. 2 hereto), the New Master City Note, the New City Master Deed of Trust, the City Developer Overlay CC&Rs, release and reconveyance by AHS as to the AHS Deeds of Trust; Releases and Reconveyances as to each of the Original Deeds of Trust; (iii) the conveyance of the interests of MECH in the properties referenced in Recital E hereof to New Developer; (iv) conditions precedent to close, including readiness of title insurer to deliver: (a) an owner’s policy to New Developer as to the AHS Property, as such owner’s policy is approved by New Developer, (b) a lender’s policy of title insurance to Bank as to the Bank Loan as secured by the Bank Security Properties, as such lender’s policy is approved by Bank, and (c) a lender’s policy of title insurance to City as to the City Loan (which shall show City Loan as subordinate to the Bank Loan in the case of the Bank Security Properties and as a first and senior deed of trust in the case of the Original Agreement Properties other than the Bank Security Properties), as such lender’s policy is approved by City, and (v) the execution and delivery by MECH to City of the Guaranty. The AHS Property shall be transferred on a where is, as is basis. New Loan Agreement, including New City Master Note (aggregating all amounts with one date from which interest shall be accrued) secured by a New City Master Deed of Trust; 11. Relinquishment of Interest as to Properties other than the Original Agreement Properties. To the extent any properties other than or in addition to the Original Agreement Properties are included or referenced in the Original Agreement, each of MECH and New Developer hereby relinquishes and assigns to City any interest of MECH and/or New Developer in such other properties, if any, including without limitation any rights of first refusal as well as any rights of first offer as to properties referenced in 4G of the Original Agreement as “all or any portion of the Phase II Project.” Section 12 of this Third Amendment shall be effective in accordance with its terms notwithstanding this Section 11. 12. Exclusive Negotiation Rights. City, in its capacities as (i) a charter city and municipal corporation and (ii) the housing successor entity to the Former Agency, owns six (6) parcels located on 19th Street and twelve (12) parcels on Sunrise Lane (collectively, the “Eighteen Parcels”), none of which are the subject of the Original Agreement (or the Existing Agreement), but all of which are located within the corporate limits of the City. The Eighteen Parcels are zoned Residential Medium Zone (RMH) allowing a maximum density of twenty four (24) units per acre. MECH, New Developer, and City are contemplating the development of the Eighteen Parcels, as for-sale single family units. It is contemplated that two homes would be developed per each of the Eighteen Parcels, resulting in a maximum of thirty six (36) single family homes on the Eighteen Parcels as aggregated, with the resulting units to be sold and remain available at affordable housing cost (consistent with Health and Safety Code sections 33334.2 and 50052.5) to households with incomes of not to exceed 80%, 100% and 120% of area median income. The City would allow the developer to construct the for sale units on the Eighteen Parcels. The contemplated development as referenced in this paragraph is referred to as an “Intentional Community.” City and MECH will negotiate in good faith towards a comprehensive agreement which would address the disposition to MECH, development, and disposition to end users, subject to long term affordability covenants, of the Eighteen Parcels; such an agreement will contain provisions customary for agreements entered into by City for affordable housing development subject to long term affordability covenants enforceable by City (a “DDA”). The negotiation period shall commence as of the Third Amendment Date and shall continue until the one hundred twentieth (120th) day thereafter, unless extended by mutual agreement of City and MECH, each acting at its discretion. The negotiation period may be extended by the City Manager for up to an additional sixty 13.b Packet Pg. 141 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 10 4844-2559-9345v20/200430-0020 (60) days (for a total of one hundred eighty (180) days from the Third Amendment Date), if in the City Manager’s judgment, sufficient progress toward a mutually acceptable DDA has been made during the initial negotiation period; any additional extension shall require formal approval by the City Council. The one hundred twenty (120) day period and, if applicable, any extensions, shall be referred to as the “Negotiation Period.” If a DDA has not been executed by the City and MECH by the expiration of the negotiation period (including extension(s), if any, pursuant to the preceding paragraph), then neither party shall have any further rights or obligations relative to the development of the Eighteen Parcels. If a DDA is executed by City and MECH, such DDA shall supersede the provisions of this Section 12 concerning exclusive negotiation rights, and the rights and obligations of the parities shall be established in the DDA. During the Negotiation Period, the City shall not negotiate with any entity other than the MECH regarding the disposition or development of the Eighteen Parcels; this shall be deemed to include a prohibition during the Negotiation Period on the solicitation or entertaining of bids or proposals with respect to the disposition and/or development of the Eighteen Parcels. During the Negotiation Period, and as soon as feasible after the Third Amendment Date, MECH shall make full disclosure to City of all information pertinent to the ownership, control, and financial capacity of the development entity that is proposed to serve as developer under the DDA, including, but not limited to, the members of the development team proposed by MECH. While the parties are agreeing to negotiate in good faith, there is no assurance that agreement will be reached, or that extensions will be made to the Negotiation Period. 13. Activities of City Manager. The City Manager, pursuant to direction from the City Council, is authorized and directed to take such actions as he or she shall deem necessary or convenient to implement the disposition of the Eighteen Lots. 14. References to Former Agency. References to the Former Agency (the Redevelopment Agency of the City of San Bernardino) in the Existing Agreement and in those instruments executed and delivered pursuant thereto shall be deemed to refer to the City. 15. Reaffirmation of Representations and Warranties. MECH reaffirms each and every representation and warranty as provided by MECH under the Existing Agreement, as of the Third Amendment Date as to each of the Existing Agreement and this Third Amendment. Each such representation and warranty by MECH under the Existing Agreement or the Third Amendment shall be deemed to be an ongoing representation and warranty. In addition, New Developer affirms and remakes each such representation and warranty of MECH as if made by New Developer effective as of the Third Amendment Date. 16. No Third Party Beneficiaries. This Third Amendment is made for the purpose of setting forth rights and obligations of AHS, New Developer, MECH and City, and no other person shall have any rights hereunder or by reason hereof. There shall be no third party beneficiaries of the Existing Agreement or this Third Amendment. 17. References within Existing Agreement. Wherever reference is made in the Existing Agreement to an obligation of MECH and/or New Developer, MECH and/or New Developer shall be 13.b Packet Pg. 142 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 11 4844-2559-9345v20/200430-0020 deemed to be obligated to City to perform thereunder and as modified by this Third Amendment. For example, MECH’s and New Developer’s obligations to defend and indemnify City, as set forth in the Existing Agreement, shall be deemed applicable to this Third Amendment and activities of MECH and New Developer hereunder; New Developer expressly agrees to defend and indemnify City on the same basis set forth therein as to MECH. 18. Notices, Demands and Communications among the Parties. Any approval, disapproval, demand, document or other notice (“Notice”) required or permitted under this Agreement must be in writing and shall be sufficiently given if delivered by hand (and a receipt therefor is obtained or is refused to be given) or dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by telecopy or overnight delivery service to: 13.b Packet Pg. 143 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 12 4844-2559-9345v20/200430-0020 To City: City of San Bernardino 290 North “D” Street San Bernardino, California 92401 Attention: City Manager To AHS: Affordable Housing Solutions 290 North “D” Street San Bernardino, California 92401 Attention: City Manager To MECH: Mary Erickson Community Housing 24681 La Plaza #240 Dana Point, California 92629 Attention: Executive Director To New Developer: Eastpointe Village Affordable Housing, LLC 24681 La Plaza #240 Dana Point, California 92629 Attention: Executive Director Such written notices, demands and communications may be sent in the same manner to such other addresses as a party may from time to time designate by mail to the other parties as provided in this Section 18. 19. Survival. The Existing Agreement, as modified hereby, shall remain in full force and effect. 20. Interpretation. This Third Amendment shall be interpreted to effectuate the terms of the Existing Agreement as expressly modified hereby, in accordance with the laws of the State of California, and as if prepared and reviewed equally by the Parties. Where instruments are hereafter executed and delivered under the Existing Agreement and/or this Third Amendment, they will include reference to the Existing Agreement as modified by this Third Amendment. This Third Amendment may be executed in counterparts. IN WITNESS WHEREOF, the Parties hereto have caused this Third Amendment to be executed as of the Third Amendment Date. (signatures on following pages) 13.b Packet Pg. 144 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood S-1 4844-2559-9345v20/200430-0020 MECH: MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION, a California corporation By: Name: Susan McDevitt Title: Executive Director NEW DEVELOPER: EASTPOINTE VILLAGE AFFORDABLE HOUSING, a California limited liability company By: ______________________________________ Name: Susan McDevitt Title: Executive Director 13.b Packet Pg. 145 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood S-2 4844-2559-9345v20/200430-0020 CITY: CITY OF SAN BERNARDINO, a municipal corporation By: City Manager 13.b Packet Pg. 146 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood S-3 4844-2559-9345v20/200430-0020 AHS: AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO, a California 501(c)(3) public benefit corporation By: ______________________________________ Name: Authorized Signatory 13.b Packet Pg. 147 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 1-1 4844-2559-9345v20/200430-0020 ATTACHMENT NO. 1 BANK SECURITY PROPERTIES PROPERTY ONE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 1 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-03-0-000 PROPERTY TWO Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 13 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-15-0-000 PROPERTY THREE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 7 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-09-0-000 PROPERTY FOUR Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 8 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-42-0-000 PROPERTY FIVE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 11 OF TRACT NO. 6969, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 90, PAGE(S) 59 AND 60 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-051-68-0-000 13.b Packet Pg. 148 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 1-2 4844-2559-9345v20/200430-0020 PROPERTY SIX Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 8 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-10-0-000 PROPERTY SEVEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 10 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-12-0-000 PROPERTY EIGHT Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 5 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-07-0-000 PROPERTY NINE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 9 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-43-0-000 PROPERTY TEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 11 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-13-0-000 13.b Packet Pg. 149 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 1-3 4844-2559-9345v20/200430-0020 PROPERTY ELEVEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 2 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-36-0-000 PROPERTY TWELVE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 4 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 152 OF MAPS, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-06-0-000 PROPERTY THIRTEEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 3 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-05-0-000 13.b Packet Pg. 150 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 2-1 4844-2559-9345v20/200430-0020 ATTACHMENT NO. 2 AHS PROPERTY QUITCLAIM Recording Requested By and When Recorded Mail To: Mary Erickson Community Housing Attention: Executive Director 24681 La Plaza # Dana Point, California 92629 APN: 1191-031-05 [Space above for recorder.] DOCUMENTARY TRANSFER TAX $(exempt; no consideration; exempt from recording charges, Revenue and Taxation Code Section 11911) QUITCLAIM DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, AFFORDABLE HOUSING SOLUTIONS, a California corporation (“Grantor”), does hereby REMISE, RELEASE, AND FOREVER QUITCLAIM to MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION, a California corporation (“Grantee”), all of Grantor’s right, title, and interest in and to that certain real property (the “Property”) located in the County of San Bernardino, State of California, more particularly described on Exhibit A attached hereto and incorporated herein by this reference. IN WITNESS WHEREOF, Grantor has executed this Quitclaim Deed as of _________________, 2021. See Exhibit A attached hereto and incorporated herein by this reference. AFFORDABLE HOUSING SOLUTIONS, a California corporation By: Its: 13.b Packet Pg. 151 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 2 4844-2559-9345v20/200430-0020 EXHIBIT “A” LEGAL DESCRIPTION Real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: Lot 3 of Tract No. 10353, in the City of San Bernardino, County of San Bernardino, State of California, as per plat recorded in Book 152 of Maps, Pages 61 and 62, Records of said County APN: 1191-031-05 13.b Packet Pg. 152 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 4844-2559-9345v20/200430-0020 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 13.b Packet Pg. 153 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 3-1 4844-2559-9345v20/200430-0020 ATTACHMENT NO. 3 NEW CITY MASTER NOTE PARTICIPANT NOTE PROMISSORY NOTE SECURED BY DEED OF TRUST $7,406,397.71 (plus interest per Section 2) ___________ ___, 2021 San Bernardino, California FOR VALUE RECEIVED, EASTPOINTE VILLAGE AFFORDABLE HOUSING, LLC, a California limited liability company (the “New Developer” or “Maker”), promises to pay to the City of San Bernardino, a municipal corporation and charter city (the “City” or “Holder”), at its offices at 290 N. “D” Street, Third Floor, San Bernardino, California 92401-1734, or at such other place as City may from time to time designate in writing, (a) the principal sum of Seven Million Four Hundred Six Thousand Three Hundred Ninety Seven Dollars and Seventy One Cents ($7,406,397.71); and (b) all costs and expenses payable hereunder. All amounts payable hereunder together constitute the “Note Amount.” R E C I T A L S A. This Promissory Note (the “Note”) is made pursuant to that certain unrecorded Third Amendment to Neighborhood Stabilization Program Developer Master Agreement by and among Maker, Mary Erickson Community Housing A Non Profit Corporation (“MECH”), City, and Affordable Housing Solutions of San Bernardino, a California 501(c)(3) public benefit corporation (“AHS”) dated as of April 7, 2021 (the “Third Amendment”). B. Capitalized terms not described herein shall have the meanings ascribed to them in the Third Amendment. NOW, THEREFORE, New Developer agrees as follows: 1. Agreement. The principal sums hereunder have been loaned by the Redevelopment Agency of the City of San Bernardino (the “Former Agency”), and City, as the housing successor entity to all housing assets of the Former Agency (including without limitation those amounts previously loaned by the Former Agency to New Developer or its predecessors in interest), is entitled to receive payments hereunder in accordance with and pursuant to the Third Amendment, which is a public record on file in the office of the City Clerk of the City. The terms of the Third Amendment are incorporated herein and made a part hereof to the same extent and with the same force and effect as if fully set forth herein. A breach under any of the provisions of the Third Amendment shall be a default hereunder, and a breach hereunder shall be a default by New Developer under the Third Amendment. Maker and Holder agree and acknowledge that in the event New Developer fully performs under the Third Amendment, the result would be that payment will not be required under this Note, the overriding purpose of this Note being to provide assurance for the performance by New Developer under the Third Amendment. This Note shall be nonrecourse. 13.b Packet Pg. 154 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 3-2 4844-2559-9345v20/200430-0020 2. Tranches A and B; Interest. The principal amount of this Note consists of two components, Tranche A and Tranche B. Tranche A consists of (i) the amount of Five Million Six Hundred Fourteen Thousand Four Hundred Fourteen Dollars and Forty Two Cents ($5,614,414.42). Tranche B consists of the sum of (i) One Million Seven Hundred Ninety One Thousand Nine Hundred Eighty Three Dollars and Twenty Nine ($1,791,983.29), and (ii) Four Hundred Sixty Seven Dollars and Eighty Seven Cents ($467.87) per day for each day after February 1, 2021 that this Note is executed and delivered to City. Interest shall accrue as to Tranche A at the rate of three percent (3.0%) simple per annum until the obligation evidenced by this Note is satisfied in full. No interest shall accrue on Tranche B. 3. Payment. The entire balance due under this Note shall be paid to City, or otherwise satisfied as provided below, and subject to Section 7 hereof to the extent applicable, upon the first to occur of: (i) the sale or other conveyance of one or more of the Original Properties or the AHS Property (collectively, the “Security Properties”); (ii) the occurrence of June 15, 2069 (the “Maturity Date”); or (iii) the uncured breach of New Developer under the Third Amendment, this Note or the Master Deed of Trust. Amounts received by City as payments under this Note shall be first applied to Tranche B until Tranche B has been satisfied. Additional amounts as received by City as payments under this Note shall be applied first to interest as to Tranche A, then to principal of Tranche A. 4. Form of Payments. All amounts due hereunder are payable in immediately available funds and lawful monies of the United States of America. 5. Application of Payments. All payments shall be applied first to costs and fees owing hereunder, second to the payment of accrued interest and third to the payment of principal. 6. Prepayment. At any time, New Developer may prepay in whole or in part the outstanding principal balance under this Note, together with all accrued and unpaid fees, costs and expenses payable hereunder, without penalty. 7. [RESERVED] 8. Security. Upon satisfaction of the Conditions Precedent, as defined in the Third Amendment, any remaining unpaid balance hereunder (including accrued interest, fees and costs), at the option of the CED Director of City in his or her sole and absolute discretion, are secured by the Master Deed of Trust of even date herewith. The terms of the Master Deed of Trust are incorporated herein and made a part hereof to the same extent and with the same force and effect as if fully set forth herein. To the extent any unpaid balance hereunder is so secured by the Master Deed of Trust, a default under any of the provisions of the Master Deed of Trust shall be a default hereunder, and a default hereunder shall be a default under the Master Deed of Trust. 9. Acceleration and Other Remedies. Upon: (a) the occurrence of an Event of Default which has not been cured to the extent permitted under the Third Amendment, or (b) New Developer selling, contracting to sell, giving an option to purchase, conveying, leasing, encumbering, or alienating the Security Properties, or any interest in the Security Properties, or suffering its title, or any interest in the Security Properties to be divested, whether voluntarily or involuntarily, other than rental of the dwelling units at the Security Properties in the normal course of business of New Developer and in conformity with the Original Covenants, without the prior written consent of City, City may, at City’s option, declare the outstanding principal amount of this Note, together with the 13.b Packet Pg. 155 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 3-3 4844-2559-9345v20/200430-0020 then accrued and unpaid interest thereon and other charges hereunder, and all other sums secured by the Master Deed of Trust, to be due and payable immediately, and upon such declaration, such principal and interest and other sums shall immediately become and be due and payable without demand or notice, all as further set forth in the Master Deed of Trust. All costs of collection, including, but not limited to, reasonable attorneys’ fees and all expenses incurred in connection with protection of, or realization on, the security for this Note, may be added to the principal hereunder, and shall accrue interest as provided herein. City shall at all times have the right to proceed against any portion of the security for this Note in such order and in such manner as such City may consider appropriate, without waiving any rights with respect to any of the security. Any delay or omission on the part of City in exercising any right hereunder, under the Third Amendment or under the Master Deed of Trust shall not operate as a waiver of such right, or of any other right. No single or partial exercise of any right or remedy hereunder or under the Third Amendment or any other document or agreement shall preclude other or further exercises thereof, or the exercise of any other right or remedy. The acceptance of payment of any sum payable hereunder, or part thereof, after the due date of such payment shall not be a waiver of City’s right to either require prompt payment when due of all other sums payable hereunder or to declare an Event of Default for failure to make prompt or complete payment. 10. Alternate Rate. Upon the occurrence of any Event of Default, or upon the maturity hereof (by acceleration or otherwise), the entire unpaid principal sum, at the option of City, shall bear interest, from the date of occurrence of such Event of Default or maturity and after judgment and until collection, at the “Alternate Rate”, such rate being the highest interest rate then permitted by law by a City within the State of California. Interest calculated at the Alternate Rate, when and if applicable, shall be due and payable immediately without notice or demand. New Developer agrees that in the event of any Event of Default, City will incur additional expense in servicing the loan evidenced by this Note and will suffer damage and loss resulting from such Event of Default; New Developer agrees that in such event City shall be entitled to damages for the detriment caused thereby, which damages are extremely difficult and impractical to ascertain. Therefore, New Developer agrees that the Alternate Rate (as applied to the unpaid principal balance, accrued interest, fees, costs and expenses incurred) is a reasonable estimate of such damages to City, and New Developer agrees to pay such sum on demand. 11. Waivers. New Developer and all endorsers, guarantors and sureties hereof jointly and severally waive presentment, protest, notice of protest, notice of dishonor, diligence in collection, and the benefit of any exemption under any homestead exemption laws, if applicable. 12. Consents. New Developer and all endorsers, guarantors and sureties consent to: (a) any renewal, extension or modification (whether one or more) of the terms of the Third Amendment or the terms or time of payment under this Note, (b) the release or surrender or exchange or substitution of all or any part of the security, whether real or personal, or direct or indirect, for the payment hereof, (c) the granting of any other indulgences to New Developer, and (d) the taking or releasing of other or additional parties primarily or contingently liable hereunder. Any such renewal, extension, modification, release, surrender, exchange or substitution may be made without notice to New Developer or to any endorser, guarantor or surety hereof, and without affecting the liability of said parties hereunder. 13. Successors and Assigns. Whenever “City” is referred to in this Note, such reference shall be deemed to include the City and its successors and assigns, including, without limitation, any 13.b Packet Pg. 156 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 3-4 4844-2559-9345v20/200430-0020 subsequent assignee or holder of this Note. All covenants, provisions and agreements by or on behalf of New Developer, and on behalf of any makers, endorsers, guarantors and sureties hereof which are contained herein shall inure to the benefit of City and City’s successors and assigns. 14. Usury. It is the intention of New Developer and City to conform strictly to the Interest Law, as defined below, applicable to this loan transaction. Accordingly, it is agreed that notwithstanding any provision to the contrary in this Note, or in any of the documents securing payment hereof or otherwise relating hereto, the aggregate of all interest and any other charges or consideration constituting interest under the applicable Interest Law that is taken, reserved, contracted for, charged or received under this Note, or under any of the other aforesaid agreements or otherwise in connection with this loan transaction, shall under no circumstances exceed the maximum amount of interest allowed by the Interest Law applicable to this loan transaction. If any excess of interest in such respect is provided for in this Note, or in any of the documents securing payment hereof or otherwise relating hereto, then, in such event: (a) the provisions of this paragraph shall govern and control; (b) neither New Developer nor New Developer’s heirs, legal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent that it is in excess of the maximum amount of interest allowed by the Interest Law applicable to this loan transaction; (c) any excess shall be deemed canceled automatically and, if theretofore paid, shall be credited on this Note by City or, if this Note shall have been paid in full, refunded to New Developer; and (d) the effective rate of interest shall be automatically subject to reduction to the Maximum Legal Rate of Interest (as defined below), allowed under such Interest Law, as now or hereafter construed by courts of appropriate jurisdiction. To the extent permitted by the Interest Law applicable to this loan transaction, all sums paid or agreed to be paid to City for the use, forbearance or detention of the indebtedness evidenced hereby shall be amortized, prorated, allocated and spread throughout the full term of this Note. For purposes of this Note, “Interest Law” means any present or future law of the State of California, the United States of America, or any other jurisdiction which has application to the interest and other charges under this Note. The “Maximum Legal Rate of Interest” means the maximum rate of interest that City may from time to time charge New Developer, and under which New Developer would have no claim or defense of usury under the Interest Law. 15. Costs of Enforcement. New Developer agrees to pay upon demand all reasonable costs and expenses, including attorneys’ fees and disbursements (including appeals), incurred by City of this Note to enforce the terms hereof. In addition to the foregoing award of attorneys’ fees, City shall be entitled to its attorneys’ fees incurred in any post-judgment proceedings to enforce any judgment in connection with this Note. This provision is separate and several and shall survive the merger of this provision into any judgment. 16. Miscellaneous. Time is of the essence hereof. If this Note is now, or hereafter shall be, signed by more than one party or person, it shall be the joint and several obligation of such parties or persons (including, without limitation, all makers, endorsers, guarantors and sureties), and shall be binding upon such parties and upon their respective successors and assigns. This Note shall be 13.b Packet Pg. 157 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 3-5 4844-2559-9345v20/200430-0020 governed by and construed under the laws of the State of California. New Developer irrevocably and unconditionally submits to the jurisdiction of the Superior Court of the State of California for the County of San Bernardino or the United States District Court of the Central District of California, as City hereof may deem appropriate, in connection with any legal action or proceeding arising out of or relating to this Note. New Developer also waives any objection regarding personal or in rem jurisdiction or venue. 13.b Packet Pg. 158 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 3-6 4844-2559-9345v20/200430-0020 “NEW DEVELOPER” EASTPOINTE VILLAGE AFFORDABLE HOUSING, a California limited liability company By: Its: Printed Name: 13.b Packet Pg. 159 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 4-1 4844-2559-9345v20/200430-0020 ATTACHMENT NO. 4 NEW CITY MASTER DEED OF TRUST WHEN RECORDED MAIL TO: City of San Bernardino 290 N. “D” Street, Third Floor San Bernardino, California 92401-1734 Attention: Housing Division SPACE ABOVE THIS LINE FOR RECORDER’S USE (This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383.) APNs: 1191-031-03-0-000; 1191-031-15-0-000; 1191-031-09-0-000; 1191-061-42-0-000; 1191-051-68-0-000; 1191-031-10-0-000; 1191-031-12-0-000; 1191-031-07-0-000; 1191-061-43-0-000; 1191-031-13-0-000; 1191-061-36-0-000; 1191-031-06-0-000; 1191-031-05-0-000 DEED OF TRUST WITH ASSIGNMENT OF RENTS (SHORT FORM) This DEED OF TRUST is made as of ____________ __, 2021 by and among EASTPOINTE VILLAGE AFFORDABLE HOUSING, LLC, a California limited liability company, herein called TRUSTOR or NEW DEVELOPER whose address is 24681 La Plaza, #240, Dana Point, California 92629, OLD REPUBLIC TITLE, herein called TRUSTEE, and the CITY OF SAN BERNARDINO, a municipal corporation and charter city herein called BENEFICIARY or CITY. WITNESSETH: That Trustor grants to Trustee in trust, with power of sale, that property (the “Property”) in the City of San Bernardino, County of San Bernardino, State of California, described as: SEE EXHIBIT “A” ATTACHED HERETO AND MADE A PART HEREOF. together with the rents, issues and profits thereof, subject, however, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits for the purpose of securing (1) that certain Promissory Note more particularly described below, executed and delivered pursuant to an unrecorded agreement entitled “Third Amendment to 13.b Packet Pg. 160 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 4-2 4844-2559-9345v20/200430-0020 Neighborhood Stabilization Program Developer Master Agreement by and among Trustor, Mary Erickson Community Housing A Non Profit Corporation (“MECH”), City, and Affordable Housing Solutions of San Bernardino, a California 501(c)(3) public benefit corporation (“AHS”) dated as of April 7, 2021 (the “Agreement”; a copy of the Agreement is on file with the Beneficiary as a public record). All capitalized terms not defined herein shall have the meanings established therefore under the Agreement unless the context requires otherwise. This Deed of Trust secures payment under that certain promissory note executed concurrently herewith made by Trustor in favor of Beneficiary (the “Promissory Note”), and extensions or renewals thereof, in the principal sum of Seven Million Four Hundred Six Thousand Three Hundred Ninety Seven Dollars and Seventy One Cents ($7,406,397.71), with the balance of the indebtedness, due and payable on occurrence of an event of acceleration as defined in the Promissory Note, (2) the affordability requirements as set forth in Exhibit “B” hereto, (3) the performance under the Agreement (including without limitation the attachments thereto) and under each agreement of Trustor incorporated by reference or contained herein (including without limitation the “Original Covenants” [as defined in the Agreement] and that certain document entitled “Declaration of Conditions, Covenants and Restrictions” by and among Trustor, Mary Erickson Community Housing A Non Profit Corporation, a California corporation, Ma Erickson Community Housing a California nonprofit public benefit corporation, and Beneficiary to be recorded concurrently with this Deed of Trust), and (4) payment of additional sums and interest thereon which may hereafter be loaned to Trustor, or his/her successors or assigns, when evidenced by a promissory note or notes reciting that they are secured by this Deed of Trust. Exhibits “B” and “C” are attached hereto and incorporated herein by reference. To protect the security of this Deed of Trust, and with respect to the property above described, Trustor expressly makes each and all of the agreements, and adopts and agrees to perform and be bound by each and all of the terms and provisions set forth in subdivision A, and it is mutually agreed that each and all of the terms and provisions set forth in subdivision B of the fictitious deed of trust recorded in San Bernardino County on August 18, 1964, at Book 6213, Page 768, shall inure to and bind the parties hereto, with respect to the property above described. Said agreements, terms and provisions contained in said subdivisions A and B, (identical in all counties, and printed on pages 3 and 4 hereof) are by the within reference thereto, incorporated herein and made a part of this Deed of Trust for all purposes as fully as set forth at length herein, and Beneficiary may charge for a statement regarding the obligation secured hereby, provided the charge therefor does not exceed the maximum allowed by law. The undersigned Trustor, requests that a copy of any notice of default and any notice of sale hereunder be mailed to him/her at his/her address hereinbefore set forth. EASTPOINTE VILLAGE AFFORDABLE HOUSING, LLC, a California limited liability company By: Name: 13.b Packet Pg. 161 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 EXHIBIT A LEGAL DESCRIPTION Real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: PROPERTY ONE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 1 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-03-0-000 PROPERTY TWO Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 13 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-15-0-000 PROPERTY THREE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 7 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-09-0-000 PROPERTY FOUR Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: 13.b Packet Pg. 162 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 LOT 8 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-42-0-000 PROPERTY FIVE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 11 OF TRACT NO. 6969, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 90, PAGE(S) 59 AND 60 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-051-68-0-000 PROPERTY SIX Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 8 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-10-0-000 PROPERTY SEVEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 10 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-12-0-000 PROPERTY EIGHT Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: 13.b Packet Pg. 163 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 LOT 5 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-07-0-000 PROPERTY NINE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 9 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-43-0-000 PROPERTY TEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 11 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-13-0-000 PROPERTY ELEVEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 2 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-36-0-000 13.b Packet Pg. 164 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 PROPERTY TWELVE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 4 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 152 OF MAPS, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-06-0-000 PROPERTY THIRTEEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 3 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-05-0-000 13.b Packet Pg. 165 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT B TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 EXHIBIT “B” (RIDER TO DEED OF TRUST) This Rider to Deed of Trust is made and delivered pursuant to and in implementation of that certain unrecorded agreement entitled Third Amendment to Neighborhood Stabilization Program Developer Master Agreement by and among Trustor, MECH, City, and Affordable Housing Solutions of San Bernardino, a California 501(c)(3) public benefit corporation (“AHS”) dated as of April 7, 2021 (the “Agreement”), a copy of which is on file as a public record with the Beneficiary at 300 N. “D” Street, Third Floor, San Bernardino, California 92401-1734 and is incorporated herein by reference. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement. Trustor and Beneficiary further covenant and agree as follows: 1. Acceleration of Payment; Events of Acceleration. In addition to those other events of acceleration incorporated by reference into the Deed of Trust, the whole of the Note Amount and all other payments due hereunder and under the Agreement shall, at the election of the City, become due and immediately payable to the Beneficiary by the Trustor upon the occurrence of any one of the following events: (a) the occurrence of an Event of Default which has not been cured to the extent permitted under the Agreement, or (b) New Developer selling, contracting to sell, giving an option to purchase, conveying, leasing, encumbering, or alienating the Security Properties, or any interest in the Security Properties, or suffering its title, or any interest in the Security Properties to be divested, whether voluntarily or involuntarily, other than rental of the dwelling units at the Security Properties in the normal course of business of New Developer and in conformity with the Original Covenants, without the prior written consent of City, City may, at City’s option, declare the outstanding principal amount of this Note, together with the then accrued and unpaid interest thereon and other charges hereunder, and all other sums secured by the Master Deed of Trust, to be due and payable immediately, and upon such declaration, such principal and interest and other sums shall immediately become and be due and payable without demand or notice, all as further set forth in the Master Deed of Trust. All costs of collection, including, but not limited to, reasonable attorneys’ fees and all expenses incurred in connection with protection of, or realization on, the security for this Note, may be added to the principal hereunder, and shall accrue interest as provided herein. City shall at all times have the right to proceed against any portion of the security for this Note in such order and in such manner as such City may consider appropriate, without waiving any rights with respect to any of the security. IN WITNESS WHEREOF, Trustor has executed this Rider to Deed of Trust as of the date first set forth above. TRUSTOR EASTPOINTE VILLAGE AFFORDABLE HOUSING, LLC, a California limited liability company By: By: Its: 13.b Packet Pg. 166 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT C TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 EXHIBIT “C” RIDER TO DEED OF TRUST Exhibit C to Deed of Trust with Assignment of Rents dated as of _______ __, 2021, executed by Eastpointe Village Affordable Housing, LLC, a California limited liability company, to Old Republic Title, as Trustee, for the benefit of City of San Bernardino, a municipal corporation and charter city, as “Beneficiary” (“Deed of Trust”). 1. DEFAULT – OTHER DEEDS OF TRUST, REGULATORY AGREEMENT, AND AGREEMENT. A default under any of the following shall, at Beneficiary’s option, constitute a default under this Deed of Trust: (a) A default under that certain unrecorded agreement entitled Third Amendment to Neighborhood Stabilization Program Developer Master Agreement” (“Agreement”) dated as of April 7, 2021, by and among Trustor, MECH, Beneficiary, and Affordable Housing Solutions of San Bernardino, a California 501(c)(3) public benefit corporation (“AHS”) or any breach under the Note (all capitalized terms not defined herein shall have the meanings established therefore under the Agreement). A copy of the Agreement is on file with Beneficiary as a public record; (b) A default under any other deed of trust encumbering the property which has a priority senior to this Deed of Trust; or (c) A default under one or more of the Original Covenants” (as defined in the Agreement). 2. NON-IMPAIRMENT. Except as supplemented and/or modified by this Deed of Trust, all of the terms, covenants and conditions of the Other Deeds of Trust and the other loan documents executed in connection therewith shall remain in full force and effect. 3. DUE ON SALE OR ENCUMBRANCE. In the event of any Transfer (as defined below) of the Property, or any portion thereof or interest therein, Beneficiary shall have the absolute right at its option, without prior demand or notice, to declare all sums secured hereby immediately due and payable. As used herein, the term “Transfer” means and includes the direct or indirect sale, transfer, conveyance, mortgage, further encumbrance, assignment, or other alienation of the Property, or any portion thereof or interest therein, whether voluntary, involuntary, by operation of law or otherwise, the execution of any installment land sale contract, sales agreement or similar instrument affecting all or a portion of the Property, granting of an option to purchase any portion of or interest in the Property or any interest therein, or the lease of all or substantially all of the Property or of all or substantially all of the improvements situated on the Property. “Transfer” shall not include the leasing of individual dwelling units on the Property so long as Trustor complies with the provisions of the Agreement relating to such leasing activity. Failure of Beneficiary to exercise the option to declare all sums secured hereby immediately due and payable upon a Transfer will not constitute waiver of the right to exercise this option in the event of any subsequent Transfer. 13.b Packet Pg. 167 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood CERTIFICATE OF ACCEPTANCE TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 CERTIFICATE OF ACCEPTANCE This is to certify that the fee interest in real property conveyed under the foregoing Deed of Trust by Eastpointe Village Affordable Housing, LLC, a California limited liability company, to the City of San Bernardino (the “City”) as to the following property: The land referred to herein is situated in the State of California, County of San Bernardino, described as follows: Real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: PROPERTY ONE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 1 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-03-0-000 PROPERTY TWO Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 13 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-15-0-000 PROPERTY THREE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 7 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-09-0-000 PROPERTY FOUR 13.b Packet Pg. 168 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood CERTIFICATE OF ACCEPTANCE TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 8 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-42-0-000 PROPERTY FIVE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 11 OF TRACT NO. 6969, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 90, PAGE(S) 59 AND 60 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-051-68-0-000 PROPERTY SIX Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 8 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-10-0-000 PROPERTY SEVEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 10 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-12-0-000 13.b Packet Pg. 169 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood CERTIFICATE OF ACCEPTANCE TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 PROPERTY EIGHT Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 5 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-07-0-000 PROPERTY NINE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 9 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-43-0-000 PROPERTY TEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 11 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-13-0-000 PROPERTY ELEVEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 2 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-36-0-000 13.b Packet Pg. 170 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood CERTIFICATE OF ACCEPTANCE TO ATTACHMENT NO. 4 4844-2559-9345v20/200430-0020 PROPERTY TWELVE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 4 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 152 OF MAPS, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-06-0-000 PROPERTY THIRTEEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 3 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-05-0-000 is hereby accepted by the City Manager of the City on behalf of the City pursuant to authority conferred by action of the City Council as governing board of the City by its action taken April 7, 2021, and the Grantee consents to recordation thereof by its duly authorized officer. CITY OF SAN BERNARDINO Dated: ________________, 2021 By: Name: Its: 13.b Packet Pg. 171 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 4844-2559-9345v20/200430-0020 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 13.b Packet Pg. 172 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 4844-2559-9345v20/200430-0020 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 13.b Packet Pg. 173 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 5-1 4844-2559-9345v20/200430-0020 ATTACHMENT NO. 5 RELEASE AND RECONVEYANCE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Affordable Housing Solutions of San Bernardino c/o City of San Bernardino 290 North “D” Street San Bernardino, CA 92401 Attention: City Manager APN: 1191-031-05 Space Above This Line for Recorder SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE Affordable Housing Solutions of San Bernardino, a California 501(c)(3) public benefit corporation (“Beneficiary”) is the beneficiary under that certain Deed of Trust, Assignment of Rents, Security Instrument and Fixture Filing, dated as of December 15, 2011 with respect to property as described therein (the “Property”) as to which Mary Erickson Community Housing A Non Profit Corporation, a California corporation, also known as Mary Erickson Community Housing, a California nonprofit public benefit corporation (“Owner”), as recorded on December 29, 2011 as Document No. 2011-0553147 and 2011-0553147 (the “Deeds of Trust”) among the official land records in the office of the County Recorder of San Bernardino County, California. The Beneficiary is being substituted as the trustee under the Deed of Trust; the Deed of Trust is to be reconveyed, without warranty, to “the person or persons legally entitled thereto,” and affects that estate held by Owner or its successors in interests to the property previously made subject to the Deed of Trust. The Beneficiary hereby accepts said appointment as Trustee under the Deed of Trust and, as successor Trustee pursuant to the request of the Beneficiary (in its capacity as holder of the promissory note secured thereby) and in accordance with the provisions of the Deed of Trust does hereby reconvey without warranty to the person or persons legally entitled thereto all estate now held by it under the Deed of Trust. (signature on following page) 13.b Packet Pg. 174 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 5-2 4844-2559-9345v20/200430-0020 AFFORDABLE HOUSING SOLUTIONS OF SAN BERNARDINO Name: Title: 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 SAN BERNARDINO ________ ) On ___________________ before me, ____________________________________, Notary Public, personally appeared _____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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 13.b Packet Pg. 175 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 5-3 4844-2559-9345v20/200430-0020 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of San Bernardino 290 North “D” Street San Bernardino, CA 92401 Attention: City Manager APN: [to come] Space Above This Line for Recorder SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE The City of San Bernardino, a municipal corporation and charter city (“City”) is the housing successor agency to the former housing authority established under the laws of the State of California (“Housing Authority”) is the successor to the interests of the former Redevelopment Agency of the City of San Bernardino (“Former Agency”) with respect to that certain Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated as of _______ __, 2___ with respect to property as described therein (the “Property”) as to which Mary Erickson Community Housing, a California nonprofit public benefit corporation (“Owner”), as recorded on __________ __, 2___ as Document No. 20__-_______ (the “Deed of Trust”) among the official land records in the office of the County Recorder of San Bernardino County, California, showing as beneficiary the Former Agency. City, as the housing successor entity to the Former Agency, holds all interest of the Former Agency under the Deed of Trust. The City is being substituted as the trustee under the Deed of Trust; the Deed of Trust is to be reconveyed, without warranty, to “the person or persons legally entitled thereto,” and affects that estate held by Owner or its successors in interests to the property previously made subject to the Deed of Trust. The City hereby accepts said appointment as Trustee under the Deed of Trust and, as successor Trustee pursuant to the request of the City (in its capacity as holder of the promissory note secured thereby) and in accordance with the provisions of the Deed of Trust does hereby reconvey without warranty to the person or persons legally entitled thereto all estate now held by it under the Deed of Trust. (signature on following page) 13.b Packet Pg. 176 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 5-4 4844-2559-9345v20/200430-0020 CITY OF SAN BERNARDINO Name: Title: 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 SAN BERNARDINO ________ ) On ___________________ before me, ____________________________________, Notary Public, personally appeared _____________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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 13.b Packet Pg. 177 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-1 4844-2559-9345v20/200430-0020 ATTACHMENT NO. 6 GUARANTY This GUARANTY (“Guaranty”) is made as of __________ __, 2021, by Mary Erickson Community Housing A Non Profit Corporation., a California corporation (“Guarantor”), in favor of the City of San Bernardino, a municipal corporation and charter city (“City”). R E C I T A L S A. As part of its governmental functions, City applied for, received, and administered programs involving certain federal funding sources, such as the Neighborhood Stabilization Program (“NSP”) as described in title III of Division B of the Housing and Economic Recovery Act of 2008 (“HERA”). B. City previously established a redevelopment agency known as the Redevelopment Agency of the City of San Bernardino (the “Former Agency”), which operated under the California Community Redevelopment Law, Chapter 1 of Part 1 of Title 24 of the California Health and Safety Code (the “Redevelopment Law”). C. The Former Agency and Mary Erickson Community Housing A Non Profit Corporation, a California corporation (“Mary Erickson Corporation”), therein referenced a Mary Erickson Community Housing Inc., a California nonprofit public benefit corporation (“Alternative Mary Erickson Designation” or “Original Developer”, and, together with Mary Erickson Corporation, “MECH”) entered into an agreement entitled “Neighborhood Stabilization Program Developer Master Agreement” dated as of July 20, 2009 (the “Original Agreement”). A copy of the Original Agreement is on file with City as a public record. D. The Original Agreement provided for the Original Developer to undertake development activities concerning affordable rental housing and to operate rental facilities at several sites, as more particularly set forth in the Original Agreement. The Original Agreement contemplated that Original Developer would acquire a series of fifteen (15) fourplexes located on East 19th Street (the “19th Street Properties”) and ten (10 fourplexes located on Sunrise Lane (the “Sunrise Lane Properties”, and, together with the 19th Street Properties, the “Original Agreement Properties”). Due to certain circumstances, AHS holds title to certain of the Original Agreement Properties notwithstanding that Original Developer was to hold title to such properties. Under the Original Agreement, the Former Agency made available to Original Developer in connection with the acquisition and redevelopment of the Original Agreement Properties the sum of Three Million One Hundred Thousand Dollars ($3,100,000.00) (the “Original Agreement Amount”), consisting of One Million Dollars ($1,000,000.00) of revenues described at Section 33334.2 and 33334.3 of the California Health and Safety Code (“Housing Setaside Moneys”) and Two Million One Hundred Thousand Dollars ($2,100,000.00) of moneys from the NSP program. E. In connection with the implementation of the Original Agreement, promissory notes evidencing the obligation to repay loans (the “Original Loans”) were executed and delivered by the Original Developer to Former Agency, covenants were executed and recorded among the Official Records (as defined below), and deeds of trust were executed and recorded among the Official Records as follows: 13.b Packet Pg. 178 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-2 4844-2559-9345v20/200430-0020 (i) as to 2030 E. 19th Street, a promissory note in the original principal amount of $404,379 (the “2030 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2009-0413047 (the “2030 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2009-0413045 (the “2030 Covenants”); (ii) as to 2194 E. 19th Street, a promissory note in the original principal amount of $430,350 (the “2194 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2009-0412471 (the “2194 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2009-0412471 (the “2194 Covenants”); (iii) as to 2104 E. 19th Street, a promissory note in the original principal amount of $406,719 (the “2104 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0132853 (the “2104 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0132854 (the “2104 Covenants”); (iv) as to 2285 E. Sunrise Lane, a promissory note in the original principal amount of $414,247 (the “2285 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0158908 (the “2285 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0158907 (the “2285 Covenants”); (v) as to 2205 E. Sunrise Lane, a promissory note in the original principal amount of $464,784 (the “2205 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0153344 (the “2205 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0153345 (the “2205 Covenants”); (vi) as to 2118 E. 19th Street, a promissory note in the original principal amount of $444,826 (the “2030 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0205870 (the “2118 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0205871 (the “2118 Covenants”); (vii) as to 2148 E. 19th Street, a promissory note in the original principal amount of $481,614 (the “2148 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0211401 (the “2148 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0211399 (the “2148 Covenants”); (viii) as to 2082 E. 19th Street, a promissory note in the original principal amount of $438,327 (the “2030 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0015862 (the “2082 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0015861 (the “2082 Covenants”); (ix) as to 2295 E. Sunrise Lane, a promissory note in the original principal amount of $468,102 (the “2295 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0033509 (the “2295 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0033508 (the “2295 Covenants”); (x) as to 2164 E. 19th Street, a promissory note in the original principal amount of $449,186 (the “2164 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2010-0362205 (the “2164 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2010-0362204 (the “2164 Covenants”); 13.b Packet Pg. 179 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-3 4844-2559-9345v20/200430-0020 (xi) as to 2225 E. Sunrise Lane, a promissory note in the original principal amount of $614,310.48 (the “2225 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2011-0068852 (the “2225 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2011-0068551 (the “2225 Covenants”); (xii) as to 2068 E. 19th Street, a promissory note in the original principal amount of $621,279.64 (the “2068 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2011-00447708 (the “2068 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2011-00447709 (the “2068 Covenants”); and (xiii) as to 2056 E. 19th Street, a promissory note in the original principal amount of $626,091.79 (the “2056 Promissory Note”), a deed of trust recorded among the Official Records as Document No. 2011-0553147 (the “2056 Deed of Trust”), and covenants recorded among the Official Records as Document No. 2011-0553148 (the “2056 Covenants”). The 2030 Promissory Note, the 2194 Promissory Note, the 2104 Promissory Note, the 2285 Promissory Note, the 2205 Promissory Note, the 2118 Promissory Note, the 2148 Promissory Note, the 2082 Promissory Note, the 2295 Promissory Note, the 2164 Promissory Note, the 2225 Promissory Note, the 2068 Promissory Note, and the 2056 Promissory Note are collectively referred to as the “Original Promissory Notes.” The 2030 Deed of Trust, the 2194 Deed of Trust, the 2104 Deed of Trust, the 2285 Deed of Trust, the 2205 Deed of Trust, the 2118 Deed of Trust, the 2148 Deed of Trust, the 2082 Deed of Trust, the 2295 Deed of Trust, the 2164 Deed of Trust, the 2225 Deed of Trust, the 2068 Deed of Trust, and the 2056 Deed of Trust are collectively referred to as the “Original Deeds of Trust.” The 2030 Covenants, the 2194 Covenants, the 2104 Covenants, the 2285 Covenants, the 2205 Covenants, the 2118 Covenants, the 2148 Covenants, the 2082 Covenants, the 2295 Covenants, the 2164 Covenants, the 2225 Covenants, the 2068 Covenants, and the 2056 Covenants are collectively referred to as the “Original Covenants.” In addition, Former Agency and Original Developer entered into an unrecorded agreement entitled “Development Agreement” as to each of the Original Agreement Properties; such agreements are collectively referred to as the “Development Agreements.” F. The Former Agency and all other redevelopment agencies in the State of California were dissolved pursuant to ABx1 26, as created by the California Legislature in 2011 (the “2011 Dissolution Enactment”). The dissolution of redevelopment agencies was further prescribed by AB 1484, Chapter 26 of Statutes of 2012 (“AB 1484” and, together with the 2011 Dissolution Enactment as amended by AB 1484, the “Redevelopment Dissolution Measure”). G. Under the Redevelopment Law, the Former Agency was required to and did devote Housing Setaside Moneys to activities for the acquisition of property, improvement to property, rehabilitation of properties and preservation of properties which are housing resources benefitting and restored to use by and available to households of limited income. As part of the Former Agency’s activities using Housing Setaside Moneys, the Former Agency acquired certain lots which are collectively referred to as the “Site” in that certain agreement entitled “Neighborhood Stabilization Program Developer Master Agreement” dated as of July 20, 2009 by and among the Former Agency, the City and Original Developer (the “Original Agreement”), a copy of which is on file with City as a public record. The Former Agency, in conjunction with the City, also utilized certain funding from the NSP program. The Former Agency and the Original Developer also entered into agreement entitled “Amendment No. 1 to the Neighborhood Stabilization Program Developer 13.b Packet Pg. 180 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-4 4844-2559-9345v20/200430-0020 Master Agreement by and between the Redevelopment Agency of the City of San Bernardino and Mary Erickson Community Housing, Inc.”, dated as of December 21, 2009 (the “First Amendment”); under the First Amendment, the Former Agency made available to Original Developer the additional amount of One Million Five Hundred Twenty Thousand Dollars ($1,520,000.00) (the “First Amendment Amount”), consisting of Five Hundred Twenty Thousand Dollars ($520,000.00) of NSP Program Funds and One Million Dollars ($1,000,000.00) of moneys from Housing Setaside Moneys. Former Agency and Original Developer also entered into an agreement entitled “Amendment No. 2 to the Neighborhood Stabilization Program Developer Master Agreement by and between the Redevelopment Agency of the City of San Bernardino and Mary Erickson Community Housing, Inc.” dated as of November 1, 2010 (the “Second Amendment” and, together with the Original Agreement as amended by the First Amendment, the “Existing Agreement”). Under the Second Amendment, the former Agency made available to Original Developer the additional amount of One Million Six Hundred Thousand Dollar ($1,600,000.00) (the “Second Amendment Amount”), consisting of Housing Setaside Moneys. In total, the Former Agency made Six Million Two Hundred Twenty Thousand Dollars ($6,220,000.00) available to the MECH. Under the Existing Agreement, MECH is required to develop on certain property defined in the Existing Agreement as the “Site” dwelling units for occupancy by households of limited income, all as more particularly set forth in the Existing Agreement. All capitalized terms not defined herein shall have the respective meanings set forth therefor in the Existing Agreement. H. Following the elimination of the Former Agency, the housing assets of the Former Agency (including without limitation of the Existing Agreement Properties and all rights of the Former Agency under the Existing Agreement) were transferred to the City acting as housing successor agency (in such capacity, “Housing Successor Agency”) to the Former Agency. I. In the course of administering the Existing Agreement, each of City and MECH has determined that the Existing Agreement should be amended to address the following circumstances: (i) the Former Agency was eliminated and the City is now the successor in interest to all interest of the Former Agency under the Existing Agreement as well as being the beneficial owner of the Existing Agreement Properties; (ii) certain, specific provisions requiring particular actions by MECH are no longer necessary or appropriate; (iii) certain provisions of the Existing Agreement regarding tenants experiencing increased incomes are unnecessarily restrictive and should be revised to reflect HOME regulations contained within 24 CFR 92.251 pertaining to over-income tenants; (iv) various typographical errors or technical defects have been identified in the Existing Agreement or instruments executed pursuant thereto which should be corrected as a matter of record; (v) continuing to have deeds of trust of record showing as beneficiary the Former Agency (rather than the Housing Successor Agency) promotes confusion with regard to the state of record title; and (vi) in the case of one property that was intended to be vested in MECH, that property is vested in AHS: AHS does not desire to hold title to such property (as identified Section 8, below, as the AHS Property). J. Each of MECH and New Developer has arranged for a loan (the “Bank Loan”) to be made by Clearinghouse CDFI (the “Bank”) in the original principal amount of Eight Hundred Twenty Thousand Dollars ($820,000.00) (the “Bank Loan Amount”), the proceeds of which will be applied to (i) reduce the amount outstanding on the indebtedness of MECH and/or New Developer to City, (ii) defray project costs, and (iii) accomplish the payment of certain amounts owed to City from residual receipts. The Bank Loan will be evidenced by a promissory note (the “Bank Note”) with payment secured by a deed of trust (the “Bank Deed of Trust”). Each of MECH and New Developer represents that a condition of the willingness of the Bank to make the Bank Loan is that (i) the City subordinate, or cause to be subordinated to the Bank Deed of Trust, or reconvey the Original Deeds 13.b Packet Pg. 181 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-5 4844-2559-9345v20/200430-0020 of Trust which secure payments of those moneys previously loaned by City to MECH (“Original City Loans”) under the Original Promissory Notes, and (ii) AHS subordinate, reconvey or cause to be reconveyed those certain deeds of trust recorded among the Official Records as Document No. 2011- 0447708 and Document No. 2011-0553147 (the “AHS Deeds of Trust”). The Bank requires that the Bank Deed of Trust be recorded against those properties described in Attachment No. 1 hereto as the “Bank Security Properties.” K. In connection with the obtaining of title insurance by which the Bank Loan Amount will be insured, Old Republic Title (the “Title Insurer”) requires, and each of the Bank, New Developer, and MECH agree, that MECH will execute or cause to be executed deeds and, to the extent necessary, other instruments to effect a transfer of title to all properties referenced in Recital E hereto to New Developer, whereupon New Developer will execute those instruments provided hereunder, including without limitation the “New City Master Note” and the “New City Master Deed of Trust” (as defined below) under which New Developer will assume all obligations of MECH with respect to such properties and become liable for all performance required by MECH and/or New Developer under the Original Agreement and all amendments thereto, including without limitation this Third Amendment. L. Under the Third Amendment, City, MECH and New Developer desire to restate a common maturity for amounts owing to MECH and/or New Developer, and, in addition, to restate a common period under which the properties subject to the Original Covenants will remain subject to the provisions of such Original Covenants. The common period under which the properties subject to the Original Covenants will remain subject to the provisions of such Original Covenants shall be as set forth in the “City Developer Overlay CC&Rs” substantially in the form of Attachment No. 7 to the Third Amendment. Guarantor agrees that the properties subject to the Original Covenants will continue to be subject to such Original Covenants for the period of time designated therefor in the City Developer Overlay CC&Rs. M. In order to accommodate the interests of the Bank as generally described in Recital J, above, and to further the objective of City, New Developer, and MECH that all of the Existing Agreement Properties be operated and treated as one coordinated project, the Original City Loans are to be replaced with one new City loan (the “New City Master Loan”), substantially as described in Section 9 hereof, to be evidenced by a new promissory note (the “New City Note”), which is a restatement and aggregation of the Original City Loans but payable by New Developer, and to be secured by a deed of trust (the “New City Master Deed of Trust”) to be recorded as to all of the Existing Agreement Properties. The New City Master Deed of Trust shall be subordinate to the Bank Deed of Trust as to those properties with respect to which the Bank Deed of Trust is recorded; otherwise, the New City Master Deed of Trust shall be a senior, first deed of trust. The obligations of New Developer to City shall be guaranteed by MECH pursuant to this Guaranty. The execution and delivery to City is a condition precedent to the obligations of City and its willingness to enter into the Third Amendment but for which City would not enter into the Third Amendment. THEREFORE, to induce the City to enter into the Third Amendment and act pursuant thereto, Guarantor unconditionally guarantees and agrees as follows: 1. Affordable Housing Agreements. Guarantor acknowledges receipt of a copy of the Original Agreement, the First Amendment, the Second Amendment, the Third Amendment, all attachments thereto, and all documents referred to in the Recitals hereof. The Third Amendment is deemed to be incorporated herein by this reference as though fully set forth herein. “Affordable 13.b Packet Pg. 182 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-6 4844-2559-9345v20/200430-0020 Housing Agreements” as used herein shall mean, refer to and include the Original Agreement, the First Amendment, the Second Amendment, and the Third Amendment, as well as any riders, exhibits, addenda, amendments and attachments thereto or other documents expressly incorporated by reference in the Affordable Housing Agreements. Any capitalized term not otherwise defined herein shall have the meaning ascribed to it in the Affordable Housing Agreements, with the Third Amendment taking precedence in the event of any conflict among the Original Agreement, the First Amendment, the Second Amendment, and the Third Amendment. 2. Guaranty. Guarantor hereby guarantees the performance by New Developer of its obligation to operate the Development in conformity with the Affordable Housing Agreements, including without limitation those covenants recorded pursuant thereto and those payments required pursuant to the Third Amendment. 3. Non-Recourse. This Guaranty shall be non-recourse as to Guarantor. 4. Obligations of Guarantor Upon Default By New Developer. In the event of any failure of performance by New Developer under the Affordable Housing Agreements, including all instruments executed and delivered or recorded in connection therewith, in the manner and within the time required by the Affordable Housing Agreements, Guarantor shall, within ninety (90) calendar days of receipt of written demand of the City diligently proceed to cure any such failures of performance. Such cure(s) shall be completed as soon as reasonably possible. 5. Remedies. If Guarantor fails to promptly perform its obligations under this Guaranty, the City shall have the following remedies: 5.1 At the City’ option, and without any obligation to do so, to proceed to perform on behalf of Guarantor any or all of Guarantor’s obligations hereunder and Guarantor shall, upon demand and whether or not construction is actually completed by the City, pay to the City all sums expended by the City in performing Guarantor’s obligations hereunder together with interest thereon at the highest lawful rate specified in the New City Master Note; and 5.2 From time to time and without first requiring performance by New Developer or exhausting any or all security for the loans evidenced by the New City Master Note, to bring any action at law or in equity or both to compel Guarantor to perform its obligations hereunder, and to collect in any such action compensation for all loss, cost, damage, injury and expense sustained or incurred by the City as a direct or indirect consequence of the failure of Guarantor to perform its obligations. Notwithstanding the foregoing portion of this Section 5.2, this Guaranty shall be nonrecourse as to Guarantor. 6. Rights of the City. Guarantor authorizes the City, without giving notice to Guarantor or obtaining Guarantor’s consent and without affecting the liability of Guarantor, from time to time to: (a) approve modifications to the improvements provided for under the Affordable Housing Agreements; (b) change the terms or conditions of disbursement of the loans evidenced by the New City Master Note; (c) change covenants recorded pursuant to the Affordable Housing Agreements; (d) otherwise modify the Loan Documents, including, without limitation, making changes in the terms of repayment of the loans evidenced by the New City Master Note or modifying, extending or renewing payment dates; releasing or subordinating security in whole or in part; changing the interest rate; or advancing additional funds in its discretion for purposes related to the purposes specified in 13.b Packet Pg. 183 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-7 4844-2559-9345v20/200430-0020 the New City Master Note or the New City Master Deed of Trust; or (d) assign this Guaranty in whole or in part. 7. Guarantor’s Waivers. Guarantor waives: (a) any defense based upon any legal disability or other defense of New Developer, any other guarantor or other person, or by reason of the cessation or limitation of the liability of New Developer from any cause other than full payment and performance of those obligations of New Developer which are guaranteed hereunder; (b) any defense based upon any lack of authority of the officers, directors, partners or agents acting or purporting to act on behalf of New Developer or any principal of New Developer or any defect in the formation of New Developer or any principal of New Developer; (c) any defense based upon the application by New Developer of the proceeds of the loans evidenced by the New City Master Note for purposes other than the purposes represented by New Developer to the City or intended or understood by the City or Guarantor; (d) any and all rights and defenses arising out of an election of remedies by the City, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed Guarantor’s rights of subrogation and reimbursement against the principal by the operation of Section 580d of the California Code of Civil Procedure or otherwise; (e) any defense based upon the City’ failure to disclose to Guarantor any information concerning New Developer’s financial condition or any other circumstances bearing on New Developer’s ability to pay and perform its obligations under one or more of the New City Master Note, the New City Master Deed of Trust, or any of the other Affordable Housing Agreements; (f) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in any other respects more burdensome than that of a principal; (g) any defense based upon the City’ election, in any proceeding instituted under the Federal Bankruptcy Code, of the application of Section 1111(b)(2) of the Federal Bankruptcy Code or any successor statute; (h) any defense based upon any borrowing or any grant of a security interest under Section 364 of the Federal Bankruptcy Code; (i) any right of subrogation, any right to enforce any remedy which any of the City may have against New Developer and any right to participate in, or benefit from, any security for the New City Master Note, the New City Master Deed of Trust, or any of the other Affordable Housing; (j) presentment, demand, protest and notice of any kind; and (k) the benefit of any statute of limitations affecting the liability of Guarantor hereunder or the enforcement hereof. Without limiting the generality of the foregoing or any other provision hereof, Guarantor further expressly waives to the extent permitted by law any and all rights and defenses, including without limitation any rights of subrogation, reimbursement, indemnification and contribution, which might otherwise be available to Guarantor under California Civil Code Sections 2787 to 2855, inclusive, 2899 and 3433, or under California Code of Civil Procedure Sections 580a, 580b, 580d and 726, or any of such sections. Finally, Guarantor agrees that the performance of any act or any payment which tolls any statute of limitations applicable to the New City Master Note, the New City Master Deed of Trust, or any of the other Affordable Housing Agreements shall similarly operate to toll the statute of limitations applicable to Guarantor’s liability hereunder. 8. Guarantor’s Warranties. Guarantor warrants and acknowledges that: (a) City would not have entered into the Third Amendment but for this Guaranty; (b) Guarantor has reviewed all of the terms and provisions of the Affordable Housing Agreements; (c) there are no conditions precedent to the effectiveness of this Guaranty; (d) Guarantor has established adequate means of obtaining from sources other than the City, on a continuing basis, financial and other information pertaining to New Developer’s financial condition, the Site, the condition of improvements at the Site, and the status of New Developer’s performance of its obligations under the Affordable Housing 13.b Packet Pg. 184 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-8 4844-2559-9345v20/200430-0020 Agreements, and the City have made no representation to Guarantor as to any such matters; (e) the most recent financial statements of Guarantor previously delivered to lender are true and correct in all material respects, have been prepared in accordance with generally accepted accounting principles consistently applied (or other principles acceptable to the City) and fairly present in all material respects the financial condition of Guarantor as of the respective dates thereof, and no material adverse change has occurred in the financial condition of Guarantor since the respective dates thereof and (f) Guarantor has not and will not, without the prior written consent of the City, sell, lease, assign, encumber, hypothecate, transfer or otherwise dispose of all or substantially all of Guarantor’s assets, or any interest therein, other than in the ordinary course of Guarantor’s business. 9. Subordination. Guarantor subordinates all present and future indebtedness owing by New Developer to Guarantor to the obligations at any time owing by New Developer to the City under the New City Master Note and the remainder of the Affordable Housing Agreements. Guarantor further agrees not to assign all or any part of such indebtedness unless City is given prior notice and such assignment is expressly made subject to the terms of this Guaranty. 10. Bankruptcy of New Developer. In any bankruptcy or other proceeding in which the filing of claims is required by law, Guarantor shall file all claims which Guarantor may have against New Developer relating to any indebtedness of New Developer to Guarantor and shall assign to the City all rights of Guarantor thereunder. If Guarantor does not file any such claim, the City, as attorney-in-fact for Guarantor, is hereby authorized to do so in the name of Guarantor or, in the City’ discretion, to assign the claim to a nominee and to cause proof of claim to be filed in the name of the City’ nominee. The foregoing power of attorney is coupled with an interest and cannot be revoked. The City or their nominee shall have the right, in its reasonable discretion, to accept or reject any plan proposed in such proceeding and to take any other action which a party filing a claim is entitled to do. In all such cases, whether in administration, bankruptcy or otherwise, the person or persons authorized to pay such claim shall pay to the City the amount payable on such claim and, to the full extent necessary for that purpose, Guarantor hereby assigns to the City all of Guarantor’s rights to any such payments or distributions; provided, however, Guarantor’s obligations hereunder shall not be satisfied except to the extent that the City receive cash by reason of any such payment or distribution. If the City receives anything hereunder other than cash, the same shall be held as collateral for amounts due under this Guaranty. If all or any portion of the obligations guaranteed hereunder are paid or performed, the obligations of Guarantor hereunder shall continue and shall remain in full force and effect in the event that all or any part of such payment or performance is avoided or recovered directly or indirectly from the City as a preference, fraudulent transfer or otherwise under the Bankruptcy Code or other similar laws, irrespective of (a) any notice of revocation given by Guarantor prior to such avoidance or recovery, or (b) full payment and performance of all of the indebtedness and obligations evidenced and secured by the Loan Documents. 11. Additional, Independent and Unsecured Obligations. This Guaranty is independent of the obligations of New Developer under the New City Master Note and the New City Master Deed of Trust, as well as the remaining Affordable Housing Agreements. The City may bring a separate action to enforce the provisions hereof against Guarantor without taking action against New Developer or any other party or joining New Developer or any other party as a party to such action. Except as otherwise provided in this Guaranty, this Guaranty is not secured and shall not be deemed to be secured by any security instrument unless such security instrument expressly recites that it secures this Guaranty. 13.b Packet Pg. 185 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-9 4844-2559-9345v20/200430-0020 12. Attorneys’ Fees; Enforcement. If any attorney is engaged by the City to enforce or defend any provision of this Guaranty, or any of the other Affordable Housing Agreements, or as a consequence of any Default, breach or failure of condition under the Third Amendment or any of the other Affordable Housing Agreements, with or without the filing of any legal action or proceeding, Guarantor shall pay to the City, immediately upon demand all reasonable attorneys’ fees and costs incurred by the City in connection therewith, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal balance of the New City Master Note as specified therein. 13. Rules of Construction. The word “New Developer” as used herein shall include both the named New Developer and any other person at any time assuming or otherwise becoming primarily liable for all or any part of the obligations of the named New Developer under the Third Amendment, New City Master Note, and the New City Master Deed of Trust. The term “person” as used herein shall include any individual, company, trust or other legal entity of any kind whatsoever. If this Guaranty is executed by more than one person, the term “Guarantor” shall include all such persons. When the context and construction so require, all words used in the singular herein shall be deemed to have been used in the plural and vice versa. All headings appearing in this Guaranty are for convenience only and shall be disregarded in construing this Guaranty. 14. Credit Reports. Each legal entity and individual obligated on this Guaranty hereby authorizes the City to order and obtain, from a credit reporting agency of the City’ choice, a third party credit report on such legal entity and individual. 15. Governing Law. This Guaranty shall be governed by, and construed in accordance with, the laws of the State of California, except to the extent preempted by federal laws. Guarantor and all persons and entities in any manner obligated to the City under this Guaranty consent to the jurisdiction of any federal or state court within the State of California having proper venue and also consent to service of process by any means authorized by California or federal law. 16. Miscellaneous. The provisions of this Guaranty will bind and benefit the heirs, executors, administrators, legal representatives, nominees, successors and assigns of Guarantor and the City. The liability of all persons and entities that are in any manner obligated hereunder shall be joint and several. If any provision of this Guaranty shall be determined by a court of competent jurisdiction to be invalid, illegal or unenforceable, that portion shall be deemed severed from this Guaranty and the remaining parts shall remain in full force as though the invalid, illegal or unenforceable portion had never been part of this Guaranty. 17. Enforceability. Guarantor hereby acknowledges that: (a) the obligations undertaken by Guarantor in this Guaranty are complex in nature, and (b) numerous possible defenses to the enforceability of these obligations may presently exist and/or may arise hereafter, and (c) as part of the City’ consideration for entering into this transaction, the City have specifically bargained for the waiver and relinquishment by Guarantor of all such defenses, and (d) Guarantor has had the opportunity to seek and receive legal advice from skilled legal counsel in the area of financial transactions of the type contemplated herein. Given all of the above, Guarantor does hereby represent and confirm to the City that Guarantor is fully informed regarding, and that Guarantor does thoroughly understand: (i) the nature of all such possible defenses, and (ii) the circumstances under which such defenses may arise, and (iii) the benefits which such defenses might confer upon Guarantor, and (iv) the legal consequences to Guarantor of waiving such defenses. Guarantor acknowledges that Guarantor makes this Guaranty with the intent that this Guaranty and all of the 13.b Packet Pg. 186 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-10 4844-2559-9345v20/200430-0020 informed waivers herein shall each and all be fully enforceable by the City, and that the City are induced to enter into this transaction in material reliance upon the presumed full enforceability thereof. 13.b Packet Pg. 187 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 6-11 4844-2559-9345v20/200430-0020 IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date appearing on the first page of this Guaranty. “GUARANTOR” MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION, a California corporation By: Susan McDevitt Executive Director 13.b Packet Pg. 188 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 7-1 4844-2559-9345v20/200430-0020 ATTACHMENT NO. 7 CITY DEVELOPER OVERLAY CC&Rs RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of San Bernardino 290 North “D” Street San Bernardino, California 92354 Attention: City Manager (Space above for Recorder’s use.) (Exempt from Recording Fees Per Gov’t Code §27383.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS (the “Declaration” or “Overlay CC&Rs”), dated as of ___________________ __, 2021 is made by and among MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION, a California corporation (“New Developer”) which is also known as MARY ERICKSON COMMUNITY HOUSING, a California nonprofit public benefit corporation (“Owner”, and together with New Developer, the “Declarant”) and CITY OF SAN BERNARDINO, a municipal corporation and charter city (“City”), as of the date set forth below, and concerns the “Covenanted Properties” as defined herein. New Developer is the owner of the Covenanted Properties; the Covenanted Properties are described in Exhibit “A” hereto. R E C I T A L S A. City and Owner entered into an unrecorded agreement entitled “Neighborhood Stabilization Program Developer Master Agreement” dated as of July 20, 2009 (the “Original Agreement”). A copy of the Original Agreement is on file with City as a public record. In implementation of the Original Agreement, Owner acquired various properties and caused covenants to be recorded as to such properties as follows: 1. as to 2030 E. 19th Street, covenants recorded among the Official Records as Document No. 2009-0413045 (the “2030 Covenants”). The property subject to the 2030 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property One”; 2. as to 2194 E. 19th Street, covenants recorded among the Official Records as Document No. 2009-0412471 (the “2194 Covenants”). The property subject to the 2194 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Two”; 13.b Packet Pg. 189 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 7-2 4844-2559-9345v20/200430-0020 3. as to 2104 E. 19th Street, covenants recorded among the Official Records as Document No. 2010-0132854 (the “2104 Covenants”). The property subject to the 2104 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Three”; 4. as to 2285 E. Sunrise Lane, covenants recorded among the Official Records as Document No. 2010-0158907 (the “2285 Covenants”). The property subject to the 2285 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Four”; 5. as to 2205 E. Sunrise Lane, and covenants recorded among the Official Records as Document No. 2010-0153345 (the “2205 Covenants”). The property subject to the 2205 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Five”; 6. as to 2118 E. 19th Street, covenants recorded among the Official Records as Document No. 2010-0205871 (the “2118 Covenants”). The property subject to the 2118 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Six”; 7. as to 2148 E. 19th Street, covenants recorded among the Official Records as Document No. 2010-0211399 (the “2148 Covenants”). The property subject to the 2148 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Seven”; 8. as to 2082 E. 19th Street, covenants recorded among the Official Records as Document No. 2010-0015861 (the “2082 Covenants”). The property subject to the 2082 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Eight”; 9. as to 2295 E. Sunrise Lane, covenants recorded among the Official Records as Document No. 2010-0033508 (the “2295 Covenants”). The property subject to the 2295 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Nine”; 10. as to 2164 E. 19th Street, covenants recorded among the Official Records as Document No. 2010-0362204 (the “2164 Covenants”). The property subject to the 2164 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Ten”; 11. as to 2225 E. Sunrise Lane, covenants recorded among the Official Records as Document No. 2011-0068551 (the “2225 Covenants”). The property subject to the 2225 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Eleven”; 12. as to 2068 E. 19th Street, covenants recorded among the Official Records as Document No. 2011-00447709 (the “2068 Covenants”). The property subject to the 2068 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Twelve”; and 13. as to 2056 E. 19th Street, covenants recorded among the Official Records as Document No. 2011-0553148 (the “2056 Covenants”). The property subject to the 2056 Covenants is more particularly described in Exhibit “A” hereto and is identified therein as “Property Thirteen.” Property One, Property Two, Property Three, Property Four, Property Five, Property Six, Property Seven, Property Eight, Property Nine, Property Ten, Property Eleven, Property Twelve, Property Twelve and Property Thirteen collectively constitute the “Covenanted Properties”. The 2030 Covenants, the 2194 Covenants, the 2104 Covenants, the 2285 Covenants, the 2205 Covenants, the 2118 Covenants, the 2148 Covenants, the 2082 Covenants, the 2295 Covenants, the 2164 Covenants, 13.b Packet Pg. 190 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood ATTACHMENT NO. 7-3 4844-2559-9345v20/200430-0020 the 2225 Covenants, the 2068 Covenants, and the 2056 Covenants collectively constitute the “Existing Covenants.” B. City, New Developer, and Owner desire to provide, confirm, and amplify that the period during which the Existing Covenants shall remain in effect shall be that period measured from the earliest date any of the Existing Covenants were recorded among the official land records of the County Recorder of the County of San Bernardino (“Official Records”) and continuing until July 15, 2069. Excepting as so modified, all provisions of the Existing Covenants shall remain in full force and effect. Owner and New Developer, for themselves and as to any successor in interest as to one or more of the Covenanted Properties, agree that the Existing Covenants and this Declaration shall run with the land, and that Owner, New Developer, and any successors in interest shall be bound by and shall be subject to the Existing Covenants as to each of the Covenanted Properties affected thereby and, as to all such Covenanted Properties, by this Declaration. NOW, THEREFORE, each of New Developer and Owner hereby agrees and covenants to adhere to each and every one of the following provisions of the Existing Covenants as modified to reflect that, per this Declaration, the duration of all provisions of the Existing Covenants shall remain in effect until July 15, 2069. This Declaration shall run with the land. Any notice permitted or required to be delivered as provided herein to New Developer shall be in writing and may be delivered either personally or by first-class or certified mail. If delivery is made by mail, it shall be deemed to have been delivered seventy-two (72) hours after a copy of same has been deposited in the United States Mail, postage prepaid, addressed to New Developer at 24681 La Plaza #240, Dana Point, California 92629, Attention: Executive Director. Such address may be changed from time to time by notice in writing to City, which shall be made by certified mail to the City of San Bernardino, 290 North “D” Street, San Bernardino, California 92401, Attention: City Manager, or such other address as may be designated from time to time by City in writing to New Developer. San Bernardino Housing City at 25541 Barton Road, San Bernardino, California 92354, Attention: City Executive Director, and shall be effective upon receipt. Any notice permitted or required to be delivered as provided herein to City shall be in writing and may be delivered either personally or by first-class or certified mail. If delivery is made by mail, it shall be deemed to have been delivered seventy-two (72) hours after a copy of same has been deposited in the United States Mail, postage prepaid, addressed to City of San Bernardino, 290 North “D” Street, San Bernardino, California 92401, Attention: City Manager, or such other address as may be designated from time to time by City in writing to New Developer. 13.b Packet Pg. 191 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood S-1 4844-2559-9345v20/200430-0020 IN WITNESS WHEREOF, City, Owner, and New Developer have caused this instrument to be duly authorized, this _____ day of ______________, 2021. CITY CITY OF SAN BERNARDINO, a municipal corporation and charter city By: City Manager 13.b Packet Pg. 192 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood S-2 4844-2559-9345v20/200430-0020 OWNER MARY ERICKSON COMMUNITY HOUSING, INC., a California nonprofit public benefit corporation By: Printed Name: Susan McDevitt Its: Executive Director NEW DEVELOPER MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION, a California corporation By: __________________________________ Printed Name: Susan McDevitt Its: Executive Director 13.b Packet Pg. 193 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 7 4844-2559-9345v20/200430-0020 EXHIBIT A LEGAL DESCRIPTION OF THE COVENANTED PROPERTIES PROPERTY ONE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 1 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-03-0-000 PROPERTY TWO Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 13 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS SHOWN BY MAP ON FILE IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-15-0-000 PROPERTY THREE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 7 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-09-0-000 PROPERTY FOUR Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 8 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-42-0-000 13.b Packet Pg. 194 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 7 4844-2559-9345v20/200430-0020 PROPERTY FIVE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 11 OF TRACT NO. 6969, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 90, PAGE(S) 59 AND 60 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-051-68-0-000 PROPERTY SIX Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 8 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-10-0-000 PROPERTY SEVEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 10 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-12-0-000 PROPERTY EIGHT Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 5 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-07-0-000 13.b Packet Pg. 195 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 7 4844-2559-9345v20/200430-0020 PROPERTY NINE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 9 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-43-0-000 PROPERTY TEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 11 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-13-0-000 PROPERTY ELEVEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 2 OF TRACT NO. 12398, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 171, PAGE(S) 65 AND 66 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-061-36-0-000 PROPERTY TWELVE Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 4 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 152 OF MAPS, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-06-0-000 13.b Packet Pg. 196 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood EXHIBIT A TO ATTACHMENT NO. 7 4844-2559-9345v20/200430-0020 PROPERTY THIRTEEN Real Property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: LOT 3 OF TRACT NO. 10353, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 152, PAGE(S) 61 AND 62 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 1191-031-05-0-000 13.b Packet Pg. 197 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 4844-2559-9345v20/200430-0020 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 13.b Packet Pg. 198 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 4844-2559-9345v20/200430-0020 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 13.b Packet Pg. 199 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 4844-2559-9345v20/200430-0020 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 13.b Packet Pg. 200 Attachment: Attachment 2 MECH, Third Amendment to NSP Developer Master Agreement (7210 : Third Amendment to Neighborhood 4845-4077-2284v5/200430-0020 EXCLUSIVE NEGOTIATION AGREEMENT THIS EXCLUSIVE NEGOTIATION AGREEMENT (the “Agreement”) is made and entered into as of April 7, 2021 (the “Date of Agreement”), by and between the CITY OF SAN BERNARDINO, a municipal corporation and charter city (“City”) and MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION, a California corporation (the “Developer”). Developer and City are collectively referred to herein as the “Parties.” R E C I T A L S The following recitals are a substantive part of this Agreement. A. Concurrently herewith, City, Developer, and Affordable Housing Solutions of San Bernardino, a California 501(c)(3) corporation (“AHS”) are entering into a Third Amendment to Neighborhood Stabilization Program Developer Master Agreement, dated as of April 7, 2021 (the “Third Amendment”). A copy of the Third Amendment is on file with City as a public record. B. As set forth in the Third Amendment, Developer and City are contemplating the development of six (6) parcels located on 19th Street and twelve (12) parcels on Sunrise Lane (collectively, the “Eighteen Parcels”) as for-sale, single family dwelling units. As further contemplated by the third Amendment, Developer and City are entering in this Agreemen t to set forth certain parameters and procedures for the conduct of negotiations between City and Developer with respect to the potential development of the Eighteen Parcels as generally described in the Third Amendment. C. As delineated in the Third Amendment, the basic conceptual framework for development of the Eighteen Parcels would be as follows: It is contemplated that two homes would be developed per each of the Eighteen Parcels, resulting in a maximum of thirty six (36) single family homes on the Eighteen Parcels as aggregated, with the resulting units to be sold and remain available at affordable housing cost (consistent with Health and Safety Code sections 33334.2 and 50052.5) to households with incomes of not to exceed 80%, 100% and 120% of area median income. City would allow Developer to construct the for sale units on the Eighteen Parcels. The framework as set forth in this Recital C is referred to herein as the “Basic Development Concept.” D. Based partly upon (i) the interest of Developer, (ii) assurances by Developer that Developer and/or its joint venturers are experienced in the development and operation of high quality affordable residential projects, (iii) the desirability of accomplishing the development, if feasible, of affordable rental housing and other new facilities (together, the “Facilities”), and (iv) the contention of Developer that the proposed development is feasible, the Parties mutually desire to enter into discussions concerning possible development of the Eighteen Parcels gene rally consistent with the Basic Development Concept. E. The Parties intend that during and for the period of negotiations set forth herein (the “Negotiation Period”) each will perform certain actions and responsibilities under this Agreement. 13.c Packet Pg. 201 Attachment: Attachment 3 Exclusive Negotiation Agreement Mary Erickson Community Housing (7210 : Third Amendment to Neighborhood 2 4845-4077-2284v5/200430-0020 NOW, THEREFORE, the Parties mutually agree as follows: 1. Exclusive Agreement to Negotiate. (a) Required Actions. (1) Within forty-five (45) days from the Date of Agreement, Developer shall submit to City a “Preliminary Development Concept Package,” consisting of the following in addition to a revised project pro forma: (a) a development proposal generally describing the Facilities, including all development activities proposed to be undertaken (the “Proposed Development”); (b) all information pertinent to the ownership, control, and financial capacity of the development entity that is proposed to serve as developer under the DDA, including, but not limited to, the members of the development team proposed by Developer; (c) identification of the architect proposed to be used by Developer for the Facilities, the entity which will be responsible for construction management (if other than Developer), and the entity which will be responsible for on -site operational management following completion of the improvements (if other than Developer); (d) a preliminary iteration of each of a site plan and elevations; (e) a statement describing the proposed method of financing, including construction and permanent financing. The person(s) or companies providing debt financing or equity, and, if available, the provide r of credit enhancement (if applicable), are to be identified by Developer. It is contemplated that there will be private financing of the Facilities to be developed on the Eighteen Parcels; (f) a comprehensive construction and operating pro forma which identifies all sources and uses of funds including without limitation design of the Facilities and supporting infrastructure; (g) negotiate a comprehensive agreement with City pertaining to the disposition and development of the Eighteen Parcels for development in conformity with the Basic Development Concept and such other parameter as may be agreed upon between the Parties, which agreement shall also contain provisions customary for agreements entered into by City for affordable housing development including long term affordability covenants enforceable by City (a “Disposition and Development Agreement” or “DDA”). (2) Within seventy (70) days from the Date of Agreement, Developer shall submit to City a “Final Development Concept Package,” consisting of the following: (a) updated information, current as of the date of submittal of the Final Development Concept Package, as to each and every item set forth under the heading “Preliminary Development Concept Package” and addressing such other and additional matters as may arise during negotiations; 13.c Packet Pg. 202 Attachment: Attachment 3 Exclusive Negotiation Agreement Mary Erickson Community Housing (7210 : Third Amendment to Neighborhood 3 4845-4077-2284v5/200430-0020 (b) proposed sources of financing, with a description of the terms and conditions of such financing (such identification may or may not be final); (c) a proposed construction schedule. (3) Developer shall bear the cost for its performance under this Agreement, including without limitation such fees as are charged by City in connection with the entitlement process and the cost of environmental clearance for the proposed project; provided that City will select any consultant or firm charged with pr eparation of documentation for such environmental clearance with the cost of such work to be borne by Developer. (4) City and Developer will continue to negotiate toward the execution within such period of a DDA for the disposition of the Eighteen Parcels and with respect to the development (the “Development”) and use of the Eighteen Parcels. During the term of this Agreement, City will negotiate exclusively with Developer concerning the Eighteen Parcels. If a DDA is signed, it shall supersede this Exclusive Negotiation Agreement. (b) Term. The term of the Negotiation Period shall be for one hundred twenty (120) days. As of the one hundred twentieth (120th) day after the Date of Agreement, this Agreement shall automatically terminate unless this Agreement has been mutually extended by City and Developer. The City Manager (the “City Manager”) is authorized to administratively extend the Negotiation Period once only for a period of his discretion not to exceed sixty (60) days; any such extension shall be made in writing prior to expiration of the Negotiation Period to be effective. If such an administrative extension is not granted, then the Negotiation Period shall end and this agreement shall automatically terminate, unless extended by action by the City Counci l. Notwithstanding the foregoing, if a DDA is entered into between City and Developer prior to the end of the Negotiation Period, this Agreement shall be deemed terminated upon the approval of the DDA by the City. No DDA shall be entered into by City if Developer is in default of the Third Amendment, or the “New City Master Note” or the “New City Master Deed of Trust” as defined in the Third Amendment, or if Developer has not paid those amounts which are required by the Third Amendment to have been paid to City prior to or concurrent with the recording of the New City Master Deed of Trust. (c) Agreement to Negotiate. City (by and through its staff and consultants) and Developer agree that for the term of the Negotiation Period (whether said period expires or is earlier terminated by the provisions herein) each party shall negotiate diligently and in good faith to carry out its obligations under this Agreement. Developer acknowledges that City, as a charter city and municipal corporation and as the housing successor to the former Redevelopment Agency of the City of San Bernardino (“Former Agency”) holds title to the Eighteen Parcels. Developer expressly agrees and acknowledges that its rights pursuant to this Agreement are subject to and based upon compliance by Developer with this Agreement (including without limitation the making of all submittals required pursuant to this Agreement, in short conformity with this Agreement). (d) Supplemental Progress Reports. In addition to the information required in Section 1 above, for so long as this Agreement remains in effect Developer agrees to make bi -weekly oral progress reports and monthly written reports to the Community and Economic Development Director or representatives designated by the City Manager or the Community and Economic Development Director of City (“Designee”) advising City on all matters and all studies being made. 13.c Packet Pg. 203 Attachment: Attachment 3 Exclusive Negotiation Agreement Mary Erickson Community Housing (7210 : Third Amendment to Neighborhood 4 4845-4077-2284v5/200430-0020 2. No Predetermination of City Discretion. The Parties agree and acknowledge that nothing in this Agreement in any respect does or shall be construed to affect or prejudge the exercise of City’s discretion. Developer acknowledges in this regard that the feasibility of Developer’s proposal has not been finally determined, and further that, at the discretion of City, an environmental review will be prepared and circulated for comment by City, if the disposition of the Eighteen Parcels occurs. Further, nothing in this Agreement in any respect does or shall be construed to affect or prejudge City’s discretion to consider, negotiate, or undertake the acquisition and/or development of any portion of the Eighteen Parcels, or shall affect City’s compliance with the laws, rules, and regulations governing land uses, environmental review, or disposition of the Eighteen Parcels. 3. Environmental and Other Requirements. Certain state and local environmental requirements (including, but without limitation, the California Environmental Quality Act of 1970, Public Resources Code Section 21000, et seq.) may be applicable to the Proposed Development. Pursuant to such requirements, certain environmental documents may be required to be prepared and certified for the Proposed Development. City, by this Agreement, undertakes no obligation to pay any costs associated with such environmental documents and to supply data a nd information both to determine the impact of the development on the environment and to assist in the preparation of any necessary environmental documents. 4. Costs and Expenses. Except as otherwise provided in this Agreement, each party shall be responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with the performance of its obligations under this Agreement. 5. No Change in Developer or its Constituent Members. Developer shall within sixty (60) days of this Agreement make full disclosure to City of all pertinent information concerning Developer, including any joint venture partners. The qualifications of Developer are of particular interest to City. Consequently, no person or entity, whether a voluntary or involuntary successor of Developer, shall acquire any rights or powers under this Agreement nor shall Developer assign all or any part of this Agreement without the prior written approval of City, which approval City may grant, withhold, condition, or deny at its sole and absolute discretion. Any other purported transfer, voluntarily or by operation of law, shall be absolutely null and void and shall confer no rights whatsoever upon any purported assignee or transferee. 6. Lead Negotiators. The Community and Economic Development Director or Designee shall be the lead negotiator for City with respect to the subject matter of this Agreement; provided, however, that City, reserves its rights to consider and approve or disapprove the proposed DDA. Susan McDevitt and her approved designee shall be the lead negotiator(s) for Developer with respect to the subject matter of this Agreement. 7. Non-Discrimination. Developer shall not discriminate against nor segregate, any person, or group of persons on account of sex, race, color, marital status, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Eighteen Parcels, nor shall Developer establish or permit any such practice or practic es of discrimination or segregation in the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land. 8. Address for Notices. Any notices pursuant to this Agreement shall be in writing and sent (i) by Federal Express (or other established express delivery service which maintains delivery 13.c Packet Pg. 204 Attachment: Attachment 3 Exclusive Negotiation Agreement Mary Erickson Community Housing (7210 : Third Amendment to Neighborhood 5 4845-4077-2284v5/200430-0020 records), (ii) by hand delivery, or (iii) by certified or registered mail, postage prepaid, return receipt requested, to the following addresses: To City: CITY OF SAN BERNARDINO 290 North “D” Street San Bernardino, California 92401 Attention: Gretel Noble, Housing Manager To Developer: MARY ERICKSON COMMUNITY HOUSING Attention: Susan McDevitt 24681 La Plaza #240 Dana Point, California 92629 9. Default. Failure by either party to perform one or more of its duties as provided in this Agreement shall constitute an event of default under this Agreement. The non -defaulting party shall give written notice of a default to the defaulting party, specifying the nature of the def ault and the action required to cure the default. 10. Remedies for Breach of Agreement. In the event of an uncured default under this Agreement, the sole remedy of the nondefaulting party shall be to terminate this Agreement. Following such termination, neither party shall have any further rights, remedies or obligations under this Agreement. Neither party shall have any liability to the other for monetary damages or specific performance for the breach of this Agreement, or failure to reach agreement on a DD A, and each party hereby waives and releases any such rights or claims it may otherwise have at law or at equity. Furthermore, Developer knowingly agrees that it shall have no right to specific performance for conveyance of, nor to claim any right of titl e or interest in the Eighteen Parcels or any portion thereof. 11. Termination. This Agreement shall: (i) automatically terminate at the time(s) set forth in Section 1(b) above, and (ii) terminate prior to the time(s) set forth in Section 1(b) above in the event Developer shall fail to perform its obligations hereunder to the reasonable satisfaction of the City Manager; provided that prior to termination under part (ii) of this paragraph d., City shall provide Developer with notice of the failures and ten (10 ) days in which to cure. In addition, the parties agree that if either party shall determine that it is infeasible to proceed with the Basic Development Concept or if the development of the Eighteen Parcels, consistent with such Basic Development Concept, does not appear to either party to be economically sound and feasible, either party may, upon ten (10) days’ written notice to the other party, terminate this Agreement. Upon termination of this Agreement, whether upon expiration of the Negotiation Perio d or otherwise, both Parties knowingly agree that neither Party shall have any further rights or remedies to the other and Developer shall have no rights in respect to the Eighteen Parcels. 12. Time of Essence. Time is of the essence of every portion of this Agreement in which time is a material part. In no event shall an incomplete submittal by Developer trigger any of City’s obligations of review, approval and/or performance hereunder; provided, however that City shall notify Developer of an incomplete submittal as soon as is practicable and in no event later than the applicable time set forth for City’s action on the particular item in question. 13. Real Estate Commissions. City shall not be liable for any real estate commission or brokerage fees which may arise with respect to this Agreement or the Eighteen Parcels. 13.c Packet Pg. 205 Attachment: Attachment 3 Exclusive Negotiation Agreement Mary Erickson Community Housing (7210 : Third Amendment to Neighborhood 6 4845-4077-2284v5/200430-0020 14. Developer Not an Agent. Developer is not an agent of City. 15. Press Releases. Developer agrees to discuss any press releases with the City Manager prior to disclosure in order to assure accuracy and consistency of the information. 16. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. Notwithstanding the foregoing portion of this Section 16, the Third Amendment as well as the New City Master Note and the New City Master Deed of Trust as provided for thereunder shall remain in full force in effect in accordance with their terms, excepting that Section 12 thereof shall be deemed to be superseded by this Agreement. 17. Agreement Does Not Constitute Development Approval. City reserves final discretion and approval as to any DDA and all proceedings and decisions in connection therewith. This Agreement shall not be construed as a grant of development rights or land use entitlements to construct the Proposed Development or any other project. All design, architectural, and building plans for the Proposed Development shall be subject to the review and approval of City. By its execution of this Agreement, City is not committing itself to or agreeing to undertake the disposition of the Eighteen Parcels or other real property to Developer, or any other acts or activities requiring the subsequent independent exercise of discretion by City, or any agency or department thereof. 18. No Third Party Beneficiaries. There shall be no third party beneficiaries of this Agreement. 19. Governing Law. This Agreement shall be construed in accordance with the laws of the State of California. 20. Implementation of Agreement. The City Manager shall have the authority to issue interpretations, waive provisions, and/or enter into certain amendments of this Agreement on behalf of City so long as such actions do not materially or substantially change the uses or concept of the Proposed Development, or add to the costs or risks incurred or to be incur red by City as specified herein, and such interpretations, waivers and/or amendments may include extensions of time to perform. All other materials and/or substantive interpretations, waivers, or amendments shall require the collective consideration, action and written consent of the City Council. NOW THEREFORE, the Parties have executed this Exclusive Negotiation Agreement as of the date and year first set forth above. (signatures on following pages) 13.c Packet Pg. 206 Attachment: Attachment 3 Exclusive Negotiation Agreement Mary Erickson Community Housing (7210 : Third Amendment to Neighborhood S-1 4845-4077-2284v5/200430-0020 CITY: CITY OF SAN BERNARDINO, a municipal corporation and charter city By: Robert D. Field Its: City Manager (signatures continue on following page) 13.c Packet Pg. 207 Attachment: Attachment 3 Exclusive Negotiation Agreement Mary Erickson Community Housing (7210 : Third Amendment to Neighborhood S-2 4845-4077-2284v5/200430-0020 DEVELOPER: MARY ERICKSON COMMUNITY HOUSING A NON PROFIT CORPORATION, a California corporation By: Susan McDevitt Its: Executive Director 13.c Packet Pg. 208 Attachment: Attachment 3 Exclusive Negotiation Agreement Mary Erickson Community Housing (7210 : Third Amendment to Neighborhood Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: The Landing by San Manuel - Second Reading Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept the final reading and adopt Ordinance No. MC -1557 adopting Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01 changing the Zoning District Classification from Public Facilities (PF) to Specific Plan - Alliance California (SP-AC) Third Street Land Use District of a parcel (APN: 0136-371-33) containing approximately 12.89 acres, pursuant to a certified Final Environmental Impact Report (California State Clearinghouse Schedule No. 2020100067). Background On March 17, 2021, the Mayor and City Council conducted a public hearing on the Landing project by San Manuel. The actions included certifying the Final Environmental Impact Report (California State Clearinghouse Schedule No. 2020100067), adopting the Facts, Findings, Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Program, and approving General Plan Amendment 20 -02 changing the General Plan Land Use Designation from Public/Quasi Public to Specific Plan of a parcel (APN: 0136-371-33) containing approximately 12.89 acres; approving Development Code Amendment (Zoning Map Amen dment) 20-03 and Specific Plan Amendment 20-01 changing the Zoning District Classification from Public Facilities (PF) to Specific Plan - Alliance California (SP-AC) Third Street Land Use District of a parcel (APN: 0136-371-33); and approving Development Permit Type-D 20-02 allowing the consolidation of four (4) parcels containing a total of approximately 52.97 acres and the development of an industrial warehouse containing approximately 1,153,644 square feet on a project site located on the south side of E ast 3rd Street, between North Victoria Avenue and North Central Avenue (APN: 0136-371-18, 33, 36 and 37). Analysis The Landing Project by San Manuel has been reviewed and approved by the City Council at their March 17,, 2021 meeting. The project is now ready for its Final reading. 2020-2025 Key Strategic Targets and Goals 14 Packet Pg. 209 7216 Page 2 Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01 aligns with Key Target No. 3(a): Financial Stability: Secure a Long- Term Revenue Source and Key Target No. 4: Economic Growth and Development. The proposed development will create consistency within the project area and provide an economic benefit to the City by stimulating economic revitalization through the reuse of an area within the former Norton Air Force Base in order to help recoup and expand jobs that where lost due to the closure of the base. Fiscal Impact While there would be no direct fiscal impact from the proposed amendment, the development impact fees associated with the project will be approximately $3,349,015.44. City services will be provided to this project similar to other industrial developments in the City and surrounding area. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept the final reading and adopt Ordinance No. MC-1557 of the Mayor and City Council of the City of San Bernardino, California, adopting Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01 changing the Zoning District Classification from Public Facilities (PF) to Specific Plan - Alliance California (SP-AC) Third Street Land Use District of a parcel (APN: 0136 -371- 33) containing approximately 12.89 acres, pursuant to a certified Final Environmental Impact Report (California State Clearinghouse Schedule No. 2020100067). Attachments Attachment 1 Ordinance No. MC-1557 Attachment 2 Ordinance No. MC-1557; Exhibit A Ward: 1 Synopsis of Previous Council Action: March 17, 2021 Mayor and City Council introduced Ordinance No. MC-1557 to approve Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01. 14 Packet Pg. 210 1 ORDINANCE NO. MC-1557 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING DEVELOPMENT CODE AMENDMENT (ZONING MAP AMENDMENT) 20-03 AND SPECIFIC PLAN AMENDMENT 20-01 TO CHANGE THE ZONING DISTRICT CLASSIFICATION FROM PUBLIC FACILITIES (PF) TO SPECIFIC PLAN – ALLIANCE CALIFORNIA (SP-AC) THIRD STREET LAND USE DISTRICT OF A PARCEL (APN: 0136-371-33) CONTAINING APPROXIMATELY 12.89 ACRES, CONSISTENT WITH A CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT (STATE CLEARINGHOUSE NO. 2020100067) WHEREAS, together, General Plan Amendment 20-02, Development Code Amendment (Zoning Map Amendment) 20-03, Specific Plan Amendment 20-01 and Development Permit Type-D 20-02 constitute the Landing by San Manuel Project (“Project”); WHEREAS, Development Code Amendment (Zoning Map Amendment) and Specific Plan Amendment 20-01 is a request to allow the change of Zoning District Classification from Public Facilities (PF) to Specific Plan – Alliance California (SP-AC) Third Street Land Use District containing a total of approximately 12.89 acres; WHEREAS, pursuant to Public Resources Code Section 21067 of the California Environmental Quality Act (Public Resources Code §21000 et seq.) (CEQA) and Section 15367 of the CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.), the City of San Bernardino is the CEQA lead agency for the proposed Project; WHEREAS, pursuant to CEQA and the CEQA Guidelines, the Planning Division of the Community and Economic Development Department of the City of San Bernardino determined that an Environmental Impact Report (EIR) should be prepared in order to analyze all potential adverse environmental impacts of the proposed Project; WHEREAS, pursuant to requirements of Section 15082 of CEQA, the Planning Division of the Community and Economic Development Department accepted the Notice of Preparation and Determination of Scope of Environmental Impact Report prepared by T&B Planning, Inc. on behalf of and submitted by the applicant (San Manuel Band of Mission Indians) for the proposed Project; WHEREAS, pursuant to Section 15082 of CEQA, the Planning Division of the Community and Economic Development Department of the City of San Bernardino issued a Notice of Preparation (NOP) of a Draft EIR (California State Clearinghouse Schedule No. 2020100067) for the proposed Project on September 30, 2020, and circulated the NOP for the CEQA-mandated thirty (30) day public review period, and a public scoping meeting was conducted on October 14, 2020 pursuant to the requirements of CEQA to allow the general 14.a Packet Pg. 211 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) 2 public and other agencies the opportunity to submit comments as to the contents of the Draft EIR; WHEREAS, pursuant to Section 15087 of CEQA, the Planning Division of the Community and Economic Development Department of the City of San Bernardino released a Notice of Completion of the Draft EIR for the proposed Project on November 23, 2020 for the CEQA-mandated forty-five (45) day public review and comment period; WHEREAS, the Planning Division of the Community and Economic Development Department of the City of San Bernardino received comment letters on the Draft EIR from California Department of Fish and Wildlife, California Department of Transportation, City of Highland, Gabriellenio Band of Mission Indians–Kizh Nation, Inland Empire Biking Alliance, Inland Valley Development Agency, OmniTrans, San Bernardino International Airport Authority, San Bernardino County Department of Public Works, South Coast Air Quality Management District, and Southern California Association of Governments during the CEQA-mandated forty- five (45) day public review and comment period, and responded to each of them; WHEREAS, pursuant to Section 15132 of CEQA, the Planning Division of the Community and Economic Development Department of the City of San Bernardino accepted the Final EIR prepared by T&B Planning, Inc. on behalf of and submitted by the applicant for the proposed Project, which consists of the following: 1) the Public Review Draft EIR and technical studies, 2) the revised Draft EIR; 3) responses to comments on the Draft EIR; 4) Facts, Findings, and Statements of Overriding Considerations; and 5) the Mitigation Monitoring and Reporting Program; WHEREAS, on January 27, 2021, pursuant to the requirements of Section 19.44.030 (Project Review) of the City of San Bernardino Development Code, the Development and Environmental Review Committee reviewed the application and moved the Final EIR, General Plan Amendment 20-02, Development Code Amendment (Zoning Map Amendment) 20 -03, Specific Plan Amendment 20-01 and Development Permit Type-D 20-02 to the Planning Commission for consideration; WHEREAS, on February 09, 2021, the Planning Commission of the City of San Bernardino held a duly-noticed public hearing to consider public testimony and the staff report, and adopted Resolution No. 2020-003 recommending the certification of the Final Environmental Impact Report (State Clearinghouse Schedule No. 2020100067), and approval of General Plan Amendment 20-02, Development Code Amendment (Zoning Map Amendment) 20- 03, Specific Plan Amendment 20-01 and Development Permit Type-D 20-02 to the Mayor and City Council; WHEREAS, notice of the March 17, 2021 public hearing for the Mayor and City Council's consideration of this proposed Ordinance was published in The Sun newspaper on March 5, 2021, and was mailed to property owners within a 500 foot radius of the project site and interested parties in accordance with Development Code Chapter 19.52 (Hearings and Appeals); WHEREAS, no comments made in the public hearing conducted by the Mayor and City Council, and no additional information submitted to the City Council, has produced substantial 14.a Packet Pg. 212 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) 3 new information requiring substantial revisions that would trigger recirculation of the Final Environmental Impact Report or additional environmental review under State CEQA Guidelines Section 15088.5; WHEREAS, pursuant to the requirements of Chapters 19.52 (Hearing and Appeals) and Chapter 19.74 (Zoning Map Amendments) of the City of San Bernardino Development Code, the Mayor and City Council have the authority to take action on Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01; and WHEREAS, on March 17, 2021, during said public hearing the Mayor and City Council, pursuant to the requirement of 19.52 (Hearing and Appeals) and Chapter 19.74 (Zoning Map Amendments) of the City of San Bernardino Development Code, the Mayor and City Council have the authority to take action on Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01. NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Compliance with the California Environmental Quality Act. Concurrent with this Ordinance, the Mayor and City Council having independently reviewed and analyzed the record before it, including the Final Environmental Impact Report (California Clearinghouse Schedule No. 202010006) and written and oral testimony, and having exercised their independent judgment, certified the Final Environmental Impact Report (California Clearinghouse Schedule No. 202010006), adopted CEQA Facts, Findings, and Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Program, which contains mitigation measures that are made conditions of approval for the Project as to the effects of the proposed General Plan Amendment 20-02, Development Code Amendment (Zoning Map Amendment) 20-03, Specific Plan Amendment 20-01 and Development Permit Type-D 20-02. SECTION 3. Finding of Facts – Development Code Amendment (Zoning Map Amendment) 20-03. Finding No. 1: The proposed amendment is consistent with the General Plan. Finding of Fact: The proposed amendment will change the Zoning District Classification from Public Facilities (PF) to Specific Plan – Alliance California (SP-AC) for a parcel containing approximately 12.89 acres of the total project site, which is comprised of four (4) parcels containing a total of approximately 52.97 acres. The Specific Plan – Alliance California (SP-AC) Zoning District Classification, along with the corresponding Specific Plan General Plan Land Use Designation, is intended to provide for the new development of lighter industrial uses along major vehicular, rail, and air transportation routes serving the City. The proposed amendment will allow for the development of an industrial warehouse which is consistent 14.a Packet Pg. 213 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) 4 with the light industrial uses within the project vicinity. The project is also consistent with the following General Plan goal and policies: Goal 4.1 encourages economic activity that capitalizes upon the transportation and locational strengths of San Bernardino. The proposed change of the Zoning District Classification will capitalize on the City’s transportation and locational strengths and will encourage economic development opportunities to the City’s residents. Policy 2.5.6 requires that new development be designed to complement and not devalue the physical characteristics of the surrounding environment, including consideration of the site’s natural topography and vegetation, and surrounding exemplary architectural styles. Policy 5.7.6 encourages architectural detailing, which includes richly articulated surfaces rather than plain or blank walls. The project site is generally flat and has been disturbed. The site is surrounded by transportation and light industrial businesses. The proposed project will result in the construction of an industrial warehouse with ancillary parking and landscaping. The concrete tilt-up building will be articulated on all sides through the use of varying parapet heights, corner elements and the use of color and varying materials to break up the mass of the building walls. The rooftop equipment will be screened, and extensive landscaping will be provided along the project’s frontages, consistent with these policies. Therefore, the proposed amendment is consistent with the General Plan. Finding No. 2: The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. Finding of Fact: The proposed amendment will not be detrimental to the public interest, health, safety, convenience, or welfare of the City in that the amendment from Public Facilities (PF) to Specific Plan – Alliance California (SP-AC) will facilitate the development of an industrial warehouse, which is consistent with the transportation and light industrial uses within the project vicinity. The project site has access from Victoria Avenue and E. 3rd Street, will be fully served by utility providers, will be constructed in accordance with all applicable codes and regulations, and will not result in the need for the excessive provision of services. Additionally, any 14.a Packet Pg. 214 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) 5 potential impacts created by the proposed amendment have been addressed in the Final EIR and appropriate mitigation measures have been included within the Mitigation Monitoring and Reporting Program. Finding No. 3: The proposed amendment would maintain the appropriate balance of land uses within the City. Finding of Fact: The proposed amendment will result in removing the existing Public Facilities (PF) Zoning District Classification from one (1) of the parcels of the project site, resulting in the entire site having the Specific Plan – Alliance California (SP-AC) Zoning District Classification. The proposed amendment will result in transforming a significantly vacant site into an industrial warehouse containing approximately 1,153,644 square feet in order to capitalize on the City’s transportation and locational strengths and will encourage economic development and provide employment opportunities to the City’s residents. Therefore, the proposed amendment will not change the balance of land uses within the City due to the fact that the Specific Plan – Alliance California (SP-AC) Third Street Zoning District classification allows industrial development. Finding No. 4: The subject parcel(s) is physically suitable (including, but not limited to, access, provision of utilities, compatibility with adjoining land uses, and absence of physical constraints) for the requested land use designation(s) and the anticipated land use development(s). Finding of Fact: The proposed industrial warehouse building containing approximately 1,153,644 is permitted within the Specific Plan – Alliance California (SP- AC) Third Street Zoning District, subject to the approval of General Plan Amendment 20-02, Development Code Amendment (Zoning Map Amendment) 20-03, Specific Plan Amendment 20-01, and Development Permit Type-D 20-02 with the appropriate Conditions of Approval, and Mayor and City Council certification of the Final Environmental Impact Report. The subject site as an industrial development is sufficient in size to accommodate the project as proposed as required by the City of San Bernardino Development Code for Industrial Zones. Therefore, the subject site is physically suitable for the proposal. SECTION 4. Finding of Facts – Specific Plan Amendment 20-01. Finding No. 1: The proposed plan is consistent with the General Plan. Finding of Fact: The purposed of the Specific Plan – Alliance California (SP-AC) was to gradually transition the of the non-airport portion of the former Norton Airforce Base site from a single-purpose military use to a multi-use industrial center. The proposed Project would be in line with the intent of SP-AC through the development of a 1,153,644 square foot industrial warehouse. As part the SP-AC, an amendment to the SP-AC proposes to change approximately 12.89 acres from Public/Quasi Public to Specific 14.a Packet Pg. 215 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) 6 Plan and change approximately 4.97 acres from Specific Plan to Public/Quasi Public in order to allow for the development of the Project, meeting the purpose, standards and guidelines as outline in the Specific Plan and being consistent with the City’s General Plan. Additionally, the City of San Bernardino General Plan includes primary goals and policies to guide future development within the City. Accordingly, the Specific Plan provides a detailed explanation of the Specific Plan’s relationship to the City’s General Plan, including a comparison of goals, objectives and policies. Therefore, the proposed plan is consistent with the General Plan. Finding No. 2: The proposed plan would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. Finding of Fact: The purposed of the Specific Plan – Alliance California (SP-AC) was to gradually transition the of the non-airport portion of the former Norton Airforce Base site from a single-purpose military use to a multi-use industrial center. The proposed Project would be in line with the intent of SP-AC through the development of a 1,153,644 square foot industrial warehouse. As part the SP-AC, an amendment to the SP-AC proposes to change approximately 12.89 acres from Public/Quasi Public to Specific Plan and change approximately 4.97 acres from Specific Plan to Public/Quasi Public in order to allow for the development of the Project, meeting the purpose, standards and guidelines as outline in the Specific Plan and being consistent with the City’s General Plan. As part of the SP- AC amendment, an Environmental Impact Report (EIR) was prepared in order to assess any environmental impacts. The EIR report has identified impacts and appropriate mitigation measures have been included within the Mitigation Monitoring and Reporting Program in order to address impacts. Additionally, appropriate Conditions of Approval have been imposed on the proposed Project. Therefore, The Specific Plan is not detrimental to the public interest, health, safety, convenience, or welfare of the City in that the primary purpose of the Specific Plan is to provide a vision and implementation program for development of the non-airport portion of the former Norton Airforce Base site. Finding No. 3: The subject properties are physically suitable for the requested land use designations and the anticipated land use developments. Finding of Fact: The Specific Plan – Alliance California changed the General Plan Land Use Designation and Zoning District Classification of the properties contained within the area comprised of approximately 692.6 acres. The properties covered by the Specific Plan are located within the boundaries of the former Norton Air Force Base and adjacent areas to the south. The overall Specific Plan area has six (6) distinct land use districts including the Northgate, Westgate, Centergate, Southgate, Third Street, and DFAS Districts. The proposed project is located within the Third Street District. The Third Street District permits large industrial warehouse facilities and operations, subject to a Development Permit, and meeting the 14.a Packet Pg. 216 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) 7 Development Standards as outline in the Specific Plan – Alliance California and the City of San Bernardino’s Development Code. The proposed Specific Plan amendment proposed to change the land use of approximately 12.89 acres from Public/Quasi Public to Specific Plan and change approximately 4.97 acres from Specific Plan to Public/Quasi Public in order to allow for the development of the Project. Therefore, the proposed land use development within the approval of the Specific Plan amendment is physically suitable for the requested land use designation. Finding No. 4: The proposed plan shall ensure development of desirable character which will be compatible with existing and proposed development in the surrounding neighborhood. Finding of Fact: The proposed development of the industrial warehouse building will be harmonious and compatible with existing and future industrial developments within the Specific Plan – Alliance California (SP-AC) Third Street Zoning District. The surrounding area consists of a mixture of industrial, transportation and industrial uses. Appropriate Conditions of Approval and Mitigation Measures have been imposed on the proposed development to ensure that the surrounding area will not be negatively impacted by the development of the proposed project. The scale and density of the proposed development conforms to the development standards of the Specific Plan – Alliance California (SP-AC) Third Street Zoning District. Additionally, the proposal is consistent with both the General Plan and Development Code subject to approval of the associated amendments, and no land use conflict is expected to result from construction of the proposed project. Finding No. 5: The proposed plan will contribute to a balance of land uses so that local residents may work and shop in the community in which the y live. Finding of Fact: The proposed amendment would result in the entirety of the project site having the Specific Plan General Plan Land Use Designation, along with the corresponding Zoning District Classification of Specific Plan – Alliance California (SP-AC), which upon consolidation of the property will allow for the development of an industrial warehouse on a property surrounded by existing industrial developments, thereby helping to maintain an appropriate balance of land uses within the City. SECTION 5. Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01 is a request to allow the change of Zoning District Classification from Public Facilities (PF) to Specific Plan – Alliance California (SP-AC) Third Street Land Use District containing a total of approximately 12.89 acres ), attached hereto and incorporated herein by reference as Exhibit A, is hereby approved. SECTION 6. Notice of Determination. The Planning Division of the Community and Economic Development Department is hereby directed to file a Notice of Determination with the County Clerk of the County of San Bernardino within five (5) working days of Project approval. 14.a Packet Pg. 217 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) 8 SECTION 7. 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 8. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. SECTION 9. 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. SECTION 10. Custodian of Records. The documents and materials associated with this Ordinance and that constitute the record of proceedings on which these findings are based are located at 290 North D Street, San Bernardino, CA 92401. The City Clerk is the custodian of the record of proceedings. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of _________, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 14.a Packet Pg. 218 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) 9 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, 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 at the 17th day of March, 2021. Ordinance No. MC-____ was approved, passed and adopted at the regular meeting held at the 7th day of April, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of _________, 2021. Genoveva Rocha, CMC, City Clerk 14.a Packet Pg. 219 Attachment: Attachment 1 - Ordinance MC-1557 (7216 : The Landing by San Manuel - Second Reading) Job Number: 1032-001Date: June 2020 Proposed Development Code/Zoning Map AmendmentSource(s): City of San Bernardino (2005), Nearmap Imagery (2020), SB County (2019) 0 400 800200 Feet San Manuel Industrial Park 3RD ST 5TH ST 6TH ST VICTORIA AVECENTRAL AVEALABAMA ST5TH ST 3RD ST W ST VICTORIA AVEU ST PALM AVEC I T Y O FHIGHLAN D C I T Y O FREDLAND S C I T Y O FSAN B E R N A R D I N O EXISTING 3RD ST 5TH ST 6TH ST VICTORIA AVECENTRAL AVEALABAMA ST5TH ST 3RD ST W ST VICTORIA AVEU ST PALM AVEC I T Y O FHIGHLAN D C I T Y O FREDLAND S C I T Y O FSAN B E R N A R D I N O Legend Project Site Boun dary City of San BernardinoZoning D esignations Reside ntial Mediu m (RM) In dustrial Light (IL) Pu blic Facility (PF) Industrial Residential Public/Quasi-Public Comme rcial Ge neral (CG -1) Comm erc ial Alliance California Specific Plan Districts PROPOSED 14.b Packet Pg. 220 Attachment: Attachment 2 - Exhibit A: Development Code Amendment & Specific Plan (7216 : The Landing by San Manuel - Second Reading) 14.b Packet Pg. 221 Attachment: Attachment 2 - Exhibit A: Development Code Amendment & Specific Plan (7216 : The Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Code Amendment - Downtown Advisory Committee Final Reading (Wards 1, 3) Recommendation Accept the final reading and adopt Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendment to Se ction 2.17.040 related to Appointment-Registered voters requirement-Compensation-Oath, with the amendments identified by the Mayor and City Council incorporated. Background On February 3, 2021, the Mayor and City Council considered the adoption of a Code Amendment to Section 2.17.040 related to the Appointment -Registered voters requirement-Compensations-Oath. Subsequent to City Council discussion, the Mayor and City Council continued the item and directed staff to amend the draft Ordinance to require non-residents appointed to be clearly local business and/or commercial property owners. On February 17, 2021, the Mayor and City Council approved the first reading of a Code Amendment to Section 2.17.040 related to the Appointment -Registered voters requirement-Compensations-Oath. Subsequent to Mayor and City Council discussion, Council Member Calvin made a motion, seconded by Council Member Alexander , directing staff to schedule the final reading for March 3, 2021. As part of this motion, Council Member Calvin made an amendment to the ordinance that the appointee be a resident of the City of San Bernardino, or a non-resident business owner with an active license currently operating a business within the City of San Bernardino, and that at no point shall there be more than 25% of the members be made up of non-resident active business owners currently operating in the city. On March 3, 2021, the Final Reading related to Ordinance MC -1552 was continued to the March 17, 2021 and subsequently to the April 7, 2021 City Council meeting. Staff has amended the ordinance to reflect the changes made by the Mayor and City Council on February 17, 2021. Discussion 15 Packet Pg. 222 7217 Page 2 This item was considered at both the February 3 rd and February 17th Mayor and City Council meetings. Staff requested that the Mayor and City Council consider establishing a Downtown Advisory Committee to assist with the formulation of a Downtown Specific Plan. Staff also recommended that the Mayor and City Council consider allowing non - resident business professionals in the community (i.e., local businesses and commercial property owners) to participate in the advisory committee. Although the Mayor and City Council were supportive of establishing such a committee, some of the Council Members were apprehensive about allowing non-residents to participate on the committee. As such, amendments were added to the ordinance to clarify that the non - resident members must be local business owners with active business licenses within the City, and that no more than 25% of the members be non-resident business owners. 2020-2025 Key Strategic Targets and Goals The establishment of a General Plan Advisory Committee aligns with Key Target No. 4: Economic Growth & Development. Specifically, the establishment of an advisory committee will assist in the development of a comprehensive long-range specific plan facilitating planned growth in the downtown core of the City. Fiscal Impact There is no fiscal impact to the City with the establishment of the Downtown Advis ory Committee since the members of the Committee will serve without compensation. Conclusion Accept the final reading and adopt Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendment to Secti on 2.17.040 related to Appointment-Registered voters requirement-Compensation-Oath, with the amendments identified by the Mayor and City Council incorporated. Attachments Attachment 1 Ordinance No. MC-1552 Ward: 1 and 3 Synopsis of Previous Council Actions: September 16, 2020 Mayor and City Council authorized the execution of a contract with PlaceWorks for professional planning services to assist the City with the preparation of not only the General Plan, but also the creation of a Downtown Specific Pl an and an update to the Development Code. 15 Packet Pg. 223 ORDINANCE NO. MC-1552 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ALLOWING NON-CITY- RESIDENTS WHO HAVE OTHER TIES TO THE CITY TO BE APPOINTED TO A DOWNTOWN ADVISORY COMMITTEE WHEREAS, the Mayor and City Council of the City of San Bernardino (“MCC”) are currently in the process of adopting a Downtown Specific Plan; and WHEREAS, the MCC desires to establish a committee called the Downtown Advisory Committee (“Committee”) in order to provide guidance, assistance, and/or feedback on the process of adopting the Downtown Specific Plan and what to include in it; and WHEREAS, the MCC desires to be able to appoint both City of San Bernardino (“City”) residents and non-residents to the Committee; and WHEREAS, the MCC desires to be able to appoint non-City-residents to the Committee in order to capture and include the expertise of individuals and industries that have ties to and do business in the City but may not be residents of the City, including, but not limited to, the developer community and the commercial real estate community; and WHEREAS, the City Charter Section 601 states that “[m]embers of boards, commissions and committees shall be residents of the City, unless exempted by ordinance or State law”; and WHEREAS, the City is currently limited by Section 2.17.040 of the City Municipal Code to appoint City residents only because it states that “[e]ach member shall be and remain a registered voter within the City and no member shall be an employee of the City”; and WHEREAS, the MCC desires to amend Section 2.17.040 of the City Municipal Code to allow the MCC to, by resolution, appoint non-City-residents to the Committee. NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA DO ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Section 2.17.040 of the City Municipal Code shall be amended to read, in full, as follows (new text in underline): “2.17.040 Appointment-Registered voter requirement-Compensation-Oath Each member of such board, commission or citizen advisory committee, after having been nominated, shall be appointed by at least five affirmative votes of the Mayor and City Council. Each member shall be and remain a registered voter within the City and no member shall be an employee of the City. Notwithstanding the foregoing, the Mayor and City Council may establish 15.a Packet Pg. 224 Attachment: Attachment 1 - Ordinance MC-1552 [Revision 1] (7217 : Code Amendment - Downtown Advisory Committee Final Reading (Wards Ordinance No. MC-1552 2 a Downtown Advisory Committee by resolution and may permit the appointment of non-City- resident business professionals (i.e., local businesses) to the committee so long as the non-City- residents each have an active business license with the City and collectively make up less than twenty-five percent (25%) of that committee. Members shall serve, without compensation, at the pleasure of the Mayor and City Council. Any member no longer holding the qualificati ons required for appointment shall cease to serve as a member, and such member’s position shall be deemed vacant. Any vacancy shall be filled and appointment shall be made in the manner herein before set forth as for an original appointment.” SECTION 3. CEQA. The Mayor and City Council find that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. SECTION 4. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The Mayor and City Council of the City of San Bernardino hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. SECTION 5. Effective Date. This Ordinance shall take effect thirty (30) days after the date of the adoption. SECTION 6. 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. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this day of , 2021. John Valdivia, Mayor City of San Bernardino 15.a Packet Pg. 225 Attachment: Attachment 1 - Ordinance MC-1552 [Revision 1] (7217 : Code Amendment - Downtown Advisory Committee Final Reading (Wards Ordinance No. MC-1552 3 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 15.a Packet Pg. 226 Attachment: Attachment 1 - Ordinance MC-1552 [Revision 1] (7217 : Code Amendment - Downtown Advisory Committee Final Reading (Wards Ordinance No. MC-1552 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, 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 17th day of February, 2021. Ordinance No. MC-1552 was approved, passed and adopted at the regular meeting held the ____ day of _________, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this day of , 2021. Genoveva Rocha, CMC, City Clerk 15.a Packet Pg. 227 Attachment: Attachment 1 - Ordinance MC-1552 [Revision 1] (7217 : Code Amendment - Downtown Advisory Committee Final Reading (Wards Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: PSA for Grant Financial Management Services with Annie Clark (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-72 authorizing the execution of a two-year Professional Services Agreement for grant financial management consultant services between the City of San Bernardino and Annie Clark, in an amount not to exceed $182,400; and 2. Authorize the City Manager or designee to take any further actions necessary to effectuate the agreement. Background The City of San Bernardino Housing Division has contracted for outside services related to specialized accounting associated with federal grant funding. Over the last 5 years, Ms. Clark has provided these services to the City ensuring compliance with federal regulations. Specifically, Ms. Clark provides finance services to the Housing Division with a primary focus on fiscal administration of the Community Development Block Grant (CDBG), Emergency Solutions Grant, Neighborhood Stabilization Programs, HOME Investment Partnerships Program, and the Low/Mod Housing Fund. With the addition of several COVID related grants, the financial reporting and imminent audits, by both the Department of Housing and Urban Development (HUD) and the Office of the Inspector General (OIG), it is critical to have someone with years of experience to effectively report and manage the City’s grants. In recent years, the Housing Division has regained fiscal stability with the ass istance of Ms. Clark and she has made excellent progress at clearing many of the audit findings noted by the auditors, relative to various federal grant programs the City receives. Additionally, Ms. Clark acts in the capacity of a grant liaison between th e Finance Department, City Manager’s office, the Library, Parks, Recreation & Community Services, the Police Department and Public Works. The City has a continuing need in 16 Packet Pg. 228 7223 Page 2 its various grant programs that will greatly benefit from Ms. Clark’s expertise. Discussion Ms. Clark has been instrumental in providing the required financial management and accounting assistance that has enabled the City to make substantial progress in improving the fiscal administration of the HUD related grant programs. Other grant programs greatly benefit from her significant experience in working with the myriad of special requirements that grant funds require for their acceptance and ongoing management. Ms. Clark is exceptionally qualified to assist in the accounting, reportin g and financial management of HUD-related funding sources, state-funded grants, police grants, and social service grants such as the Senior Nutrition Program. Her current contract will conclude on June 30, 2021. The Professional Services Agreement will allow both the Community & Economic Development and Finance Departments to continue utilizing her services. Staff’s proposal is to devote 70% of Ms. Clark’s time to the Housing Division and 30% to the Finance Department, in order to accommodate a broader f ocus on Citywide grants administration. Utilizing Ms. Clark’s expertise will ensure continuity of the ongoing work with the City’s grant programs. 2020-2025 Strategic Targets and Goals The execution of a professional services agreement aligns with Key Ta rget No: 1 Financial Stability. Retaining Ms. Clark’s accounting consulting services will allow for continued effective management and reporting of grants received by the City. Fiscal Impact The total annual cost of Ms. Clark’s services will not exceed $91,200 per year ($182,400 for the two-year period). Sufficient resources have been included in the FY 2021/22 Proposed Budget to fund the agreement; funding will be allocated 70% from CDBG (Community & Economic Development) and 30% from general fund (Finance). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-72 authorizing the execution of a two-year Professional Services Agreement for grant financial management consult ant services between the City of San Bernardino and Annie Clark, in an amount not to exceed $182,400; and 2. Authorize the City Manager or designee to take any further actions necessary to effectuate the agreement. Attachments Attachment 1 Resolution No. 2021-72 Attachment 2 Professional Services Agreement 16 Packet Pg. 229 7223 Page 3 Ward: All Synopsis of Previous Council Actions: June 21, 2017 The Mayor and City Council authorized a second amendment to the PSA with Ms. Clark in an amount not to exceed $88,000. June 6, 2018 The Mayor and City Council authorized a new PSA with Ms. Clark in an amount not to exceed $88,000. July 1, 2019 The Mayor and City Council authorized a first amendment to the PSA with Ms. Clark in an amount not to exceed $88,000. June 17, 2020 The Mayor and City Council authorized a second amendment to the PSA with Ms. Clark in an amount not to exceed $91,200. 16 Packet Pg. 230 RESOLUTION NO. 2021-72 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A TWO-YEAR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ANNIE CLARK FOR GRANT FINANCIAL MANAGEMENT CONSULTANT SERVICES WHEREAS, on June 21, 2017, at the direction of the Mayor and City Council, the City Manager executed the second amendment to the Professional Services Agreement between the City of San Bernardino and Annie Clark in an amount not to exceed $88,000 for accounting consultant services; and WHEREAS, on June 6, 2018, at the direction of the Mayor and City council, the City Manager executed a new Professional Services Agreement with Annie Clark in an amount not to exceed $88,000; and WHEREAS, on July 1, 2019, at the direction of the Mayor and City council, the City Manager executed the first amendment to the Professional Services Agreement between the City of San Bernardino and Annie Clark in an amount not to exceed $88,000 for accounting consultant services; and WHEREAS, on June 17, 2020 at the direction of the Mayor and City council, the City Manager executed the first amendment to the Professional Services Agreement between the City of San Bernardino and Annie Clark in an amount not to exceed $91,200 for grant financial management consultant services; and WHEREAS, there is a continued need for grant financial management consultant services performed by Annie Clark; and WHEREAS, the City of San Bernardino and Annie Clark desire to enter into a new Professional Services Agreement in order for Annie Clark to provide grant financial management consultant services to the City. 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 authorize the execution of a two-year Professional Services Agreement between the City of San Bernardino and Annie Clark to provide assistance to the Community and Economic Development Department and the Finance Department, for a total amount not to exceed $182,400. 16.a Packet Pg. 231 Attachment: Attachment 1 - Resolution No. 2021-72 [Revision 1] (7223 : PSA for Grant Financial Management Services with Annie Clark (All Resolution No. ___ SECTION 3. The City Manager or designee is hereby authorized and directed to execute the Professional Services Agreement and take any further actions as necessary to effectuate the agreement. 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. 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 City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 16.a Packet Pg. 232 Attachment: Attachment 1 - Resolution No. 2021-72 [Revision 1] (7223 : PSA for Grant Financial Management Services with Annie Clark (All Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 16.a Packet Pg. 233 Attachment: Attachment 1 - Resolution No. 2021-72 [Revision 1] (7223 : PSA for Grant Financial Management Services with Annie Clark (All 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ANNIE CLARK This Agreement is made and entered into as of April 7, 2021 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 Annie Clark, a, Sole Proprietor with its principal place of business at 31610 Sweetwater Circle, Temecula, California 92591 (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: Grant financial management and reporting related to federal, state and local grants for the Housing Division (70% of Ms. Clark’s time) and for the Finance Department (30% of Ms. Clark’s time) (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 at the rate of $95 per hour. b. In no event shall the total amount paid for services rendered by Consultant under 16.b Packet Pg. 234 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 2 this Agreement exceed the sum of $182,400. 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 unless the Agreement is previously terminated as provided for herein (“Term”). The Term of this Agreement shall be for two years. 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 16.b Packet Pg. 235 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 3 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. 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 16.b Packet Pg. 236 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 4 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 (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. 16.b Packet Pg. 237 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 5 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. (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. 16.b Packet Pg. 238 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 6 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. 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. 16.b Packet Pg. 239 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 7 (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 in sureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. i. 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 t he 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 16.b Packet Pg. 240 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 8 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. (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 o f 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 16.b Packet Pg. 241 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 9 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 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 16.b Packet Pg. 242 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 10 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 i n 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 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 [not applicable] 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. 16.b Packet Pg. 243 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 11 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 92401-1734 Attn: Michael Huntley, CED Director With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Sonia Carvalho, City Attorney CONSULTANT: Annie Clark 31610 Sweetwater Circle Temecula, CA 92591 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. 16.b Packet Pg. 244 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 12 35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. 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] 16.b Packet Pg. 245 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ANNIE CLARK IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Robert D. Field City Manager Approved as to Form: Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC, City Clerk CONSULTANT Signature Name Title 16.b Packet Pg. 246 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 14 EXHIBIT A ANNIE CLARK SCOPE OF SERVICES FOR CITY OF SAN BERNARDINO CONSULTANT SERVICES AGREEMENT JULY 1, 2021 TO JUNE 30, 2023 1. Consultant shall assist the City of San Bernardino, under the direction of the Housing Manager, with the administration of the Community Development Block Grant (CDBG and CDBG-CV), Emergency Solutions Grant (ESG, and ESG-CV), Neighborhood Stabilization Program (NSP 1 and NSP 3); and HOME Investment Partnerships Act (HOME) programs, the Low-Moderate Income Housing Fund, the and Permanent Local Housing Allocation program (PLHA). 2. Consultant shall be paid at the rate of $95.00 per hour for a total amount not to exceed One Hundred Eighty-two Thousand Four Hundred Dollars ($182,400), for the two year term of this Agreement. 3. The Agreement is for the period starting July 1, 2021 and ending June 30, 2023. 4. Unless otherwise agreed by the parties, Consultant shall devote 70 percent of Consultant’s time in performing services to assist the City’s Economic & Housing Development Department, and 30 percent assisting the City’s Finance Department. Consultant shall, without limitation, perform the following functions: Economic & Housing Development Department  Coordinate the preparation and administration of the Economic & Housing Development budget.  Make recommendations on proposals and other budgetary or financial matters.  Perform analyses of capital program funding sources.  Prepare, review and/or approve draw-downs of federal and state grant funds including CDBG, CDBG-CV. ESG, ESG-CV, HOME, and NSP 1 and 3 funds, PLHA, and prepare drawdown reconciliation reports and quarterly reports.  Monitor and periodically update operating and capital budgets to reflect budget adjustments and funding changes.  Prepare analyses, schedules, summaries, journal entries and reconciliation to produce accurate periodic financial reports.  Prepare cash flow analysis.  Answer questions and compile special reports for departmental use in budget tracking and reporting.  Balance and reconcile expenditures to the General Ledger and Budget.  Assist in the preparation of periodic and ad-hoc financial reports, including the Action Plan, the financial sections of the Consolidated Annual Performance Evaluation Report (CAPER), and the Annual Single Audit Report. 16.b Packet Pg. 247 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All 15 Finance Department  Act as a grant liaison between the Finance Department and Library, Parks, Recreation & Community Services, Police, and Public Works Departments.  Assist in the preparation of the grants budgets if applicable.  Perform periodic review of the Library, Parks, Recreation & Community Services, Police and Public Works Departments grants revenues and expenditures for accuracy, and make necessary adjustments.  Prepare the Federal Financial Reports for the CalVIP grant, the Youth Reinvestment Grant (YRG), the Retired & Senior Volunteer Program (RSVP) and Senior Companion Program grant (SCP).  Prepare Monthly Reimbursement Report for the Parks, Recreation & Community Services’ Senior Nutrition Program grant.  Research and answer financial and other inquires submitted by staff and other departments.  Coordinate and assist in the preparation of the audit schedules; analyze, reconcile and prepare year-end adjusting, accruals, and closing entries. 16.b Packet Pg. 248 Attachment: Attachment 2 - Professional Services Agreement (7223 : PSA for Grant Financial Management Services with Annie Clark (All Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Approval of Resolutions to Execute Agreements for Revenue Audit and Recovery Services (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-73 authorizing the execution of an agreement between the City of San Bernardino and Eide Bailly LLP for the provision of Transient Occupancy Tax (ToT)/Hotel Tax audit services; and 2. Adopt Resolution No. 2021-74 authorizing the execution of an agreement between the City of San Bernardino and Davis Farr LLP for the provision of Utility Users Tax and Franchise Fee audit services; and 3. Adopt Resolution No. 2021-75 authorizing the execution of an agreement between the City of San Bernardino and Hinderliter, de Llamas & Associates for the provision of Sales Tax analysis and audit services; and 4. Adopt Resolution No. 2021-76, authorizing the examination of Transactions and Use Tax Records of the CDTFA. Background As part of the City’s overall effort to operate within a balanced budget, there is increased emphasis on ensuring that all revenues to which the City is entitled are received, and that future revenues are accurately forecasted. Revenue audit and recovery services are specialized in nature and require an in-depth knowledge of local and state government legislation and operations. The City periodically conducts audits of businesses to ensure compliance with the City Code as well as the collection and remittance of the appropriate amount of taxes. Discussion Revenue audit and recovery services ensure that the City is applying local law equitably and accurately for all individuals and entities subject to local taxation in the City of San Bernardino. In addition to the Business Registration revenue audit already in process, 17 Packet Pg. 249 7175 Page 2 the following components would be subject to audits and revenue enhancement under the recommended contracts: Transient Occupancy Tax (ToT)/Hotel Tax The City levies a 10% tax on transient room rentals, generating nearly $5 million in annual revenue. The revenue is collected from 44 hotel and lodging facilities within the City, although the majority of revenue is generated by the 15 largest facilities. The proposed audit and revenue enhancement services would include conducting three - year audits of select businesses and lodging properties to ensure compliance with local taxation regulations. Utility Users Tax (UUT) and Franchise Fees The City currently collects UUT from approximately 300 utility services providers at a tax rate of 7.75% for all utilities except prepaid wireless, which is taxed at 7.5%. UUT is a major source of revenue for the City, producing nearly $23 million in annual revenues. The City also receives franchise revenues from approximately 8 providers, totaling over $11 million each year. The proposed audit services would include a thorough compliance review of each major provider to ensure that UUT is being properly applied to taxable services and charges and that the City’s franchise fee formula is being properly applied to the revenue base. Sales and Use Transaction Tax Regular audits of the City’s Sales and Use Tax, including the Measure Z/S District Tax, identify and correct errors that result in underpayments of tax or lost revenue to the City. On average, the City’s Sales and Use Tax audits have recovered approximately $900,000 per year in revenues for the City. The services offered by the recommended firm would include filing claims with the California Department of Tax and Fee Administration (CDTFA) for the correction of errors and working with the CDTFA to ensure prompt recovery of all escaped revenue. In conjunction with awarding the contract for Sales and Use Transaction Tax, it is also necessary to approve a supporting resolution to grant authority to the recommended firm to receive and examine the City’s Sales and Use Transaction Tax records from the CDTFA. Evaluation and Selection A Request for Proposals (RFP) for revenue audit and recovery services was issued on September 3, 2020. The City was fortunate to have four qualified f irms respond to the City’s RFP. Although several local firms were invited to participate in the RFP process, no firms from San Bernardino responded to the RFP. Proposals were received from the following firms: Transient Occupancy Tax (ToT)/Hotel Tax Firm Location Eide Bailly LLP Rancho Cucamonga, CA Davis Farr LLP Irvine, CA HdL Companies Brea, CA 17 Packet Pg. 250 7175 Page 3 MuniServices LLC El Dorado Hills, CA Utility Users Tax (UUT) and Franchise Fees FirmLocation Davis Farr LLP Irvine, CA HdL Companies Brea, CA MuniServices LLC El Dorado Hills, CA Sales and Use Transaction Tax FirmLocation HdL Companies Brea, CA MuniServices LLC El Dorado Hills, CA Proposals were reviewed by a team consisting of the Deputy Director of Finance, Accounting Manager, Senior Management Analyst, and Business Registration Manager. Each firm was evaluated based on their proposed cost, the size of their firm, and experience with cities comparable to the City of San Bernardino in both size and services provided. After a lengthy review process, the following firms were selected based on their ability to provide professional guidance, the quality of the staff assigned to the engagement, price, and experience auditing comparable cities: Transient Occupancy Tax (ToT)/Hotel Tax o Eide Bailly LLP Utility Users Tax (UUT) and Franchise Fees o Davis Farr LLP Sales and Use Transaction Tax o HdL Companies 2020-2025 Key Strategic Targets and Goals The approval of agreements to perform Revenue Audit and Recovery Services aligns with Key Target No. 1: Financial Stability by ensuring that critical revenue sources are collected and remitted in accordance with City legislation. Fiscal Impact The total cost for the proposed audits in FY 2020/21 is $59,700. The current year funding for all revenue audit and recovery services was approved by the Mayor and City Council on March 3, 2021 as part of the Mid -Year Budget Report adjustments. Funding for any services to be provided in following fiscal years will be included in the Operating Budgets for the respective years. 17 Packet Pg. 251 7175 Page 4 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-73 authorizing the execution of an agreement between the City of San Bernardino and Eide Bailly LLP for the provision of Transient Occupancy Tax (ToT)/Hotel Tax audit services; and 2. Adopt Resolution No. 2021-74 authorizing the execution of an agreement between the City of San Bernardino and Davis Farr LLP for the provision of Utility Users Tax and Franchise Fee audit services; and 3. Adopt Resolution No. 2021-75 authorizing the execution of an agreement between the City of San Bernardino and Hinderliter, de Llamas & Associates for the provision of Sales Tax analysis and audit services; and 4. Adopt Resolution No. 2021-76, authorizing the examination of Transactions and Use Tax Records of the CDTFA. Attachments Attachment 1 Resolution 2021-73 Attachment 2 Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP Attachment 3 Resolution 2021-74 Attachment 4 Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP Attachment 5 Resolution 2021-75 Attachment 6 Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & Associates Attachment 7 Resolution 2021-76 Ward: All Synopsis of Previous Council Actions: N/A 17 Packet Pg. 252 RESOLUTION NO.2021-73 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND EIDE BAILLY LLP FOR THE PROVISION OF TRANSIENT OCCUPANCY TAX (TOT)/HOTEL TAX AUDIT SERVICES WHEREAS, in the interests of being fiscally prudent, City staff released a request for proposals for revenue audit and recovery services; and WHEREAS, the City received proposals from four qualified firms; and WHEREAS, following a lengthy review process, City Staff recommended the selection of Eide Bailly LLP. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager is hereby authorized and directed to execute the Professional Services Agreement with Eide Bailly LLP, a copy of which is attached hereto and incorporated herein as Exhibit “A.” SECTION 2. The Finance Department is hereby authorized to issue a Purchase Order to Eide Bailly LLP for Transient Occupancy Tax (ToT)/Hotel Tax Audit Services for an amount not to exceed $75,000. 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 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. SECTION 6. The recitals above are true and correct and are hereby incorporated herein by this reference. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____day of __________ 2021. 17.a Packet Pg. 253 Attachment: Attachment 1 - Resolution 2021-73 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Resolution No. ___ John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 17.a Packet Pg. 254 Attachment: Attachment 1 - Resolution 2021-73 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 17.a Packet Pg. 255 Attachment: Attachment 1 - Resolution 2021-73 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND EIDE BAILLY LLP This Agreement is made and entered into as of April 7, 2021 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 Eide Bailly LLP, with its principal place of business at 10681 Foothill Boulevard, Suite 300, Rancho Cucamonga, CA 91730 (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: Professional Auditing Services related to the City’s Transient Occupancy Tax (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 and incorporated herein 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 under this Agreement exceed the sum of $75,000. This amount is to cover all related costs, and 17.b Packet Pg. 256 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 2 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 resume performance of this Agreement. 17.b Packet Pg. 257 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 3 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. 17.b Packet Pg. 258 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 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 othe r 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. 17.b Packet Pg. 259 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 5 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. (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 l imits 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 include a provision establishing the insurer's duty to defend. 17.b Packet Pg. 260 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 6 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) 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 cov erage 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 t ype 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. 17.b Packet Pg. 261 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 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 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 rated within the “Excellent” category by A.M. Best Ratings 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. 17.b Packet Pg. 262 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 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 an y 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, 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 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. 17.b Packet Pg. 263 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 9 c. Definitions. For purposes of this Section, “Consultant” shall include Consultant, its officers, employees, servants, agents, or subcontractors, or anyone directly or indirectly employed by either Consultant or its subcontractors, in the performance of this Agreement. “City” shall include City, its officers, agents, employees, and volunteers. Consultant shall indemnify, defend and save harmless the City its officers, officials, agents and employees from any and all claims, demands, damages, costs, expenses (including reasonable attorney’s fees), judgements or liabilities arising out of the negligent performance or attempted performance of the provisions hereof; including any willful or negligent act or omission to act on the part of the Consultant or his agents or employees or other independent contractors directly responsible to him to the fullest extent allowable by law. Consultant and its partners, affiliates, officers or employees (collectively “Eide Bailly”) shall not be responsible for or liable for any misstatements in City financial records that are undetected as a result of knowing representations made to consultant by City, or the concealment or intentional withholding of information from us, by any of City officers, officials, agents and employees, and to hold Consultant harmless from any claims, losses, settlements, judgments, awards, damages and attorneys’ fees from any such misstatement, provided that the services performed hereunder were performed in accordance with professional standards, in all material respects. 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. 17.b Packet Pg. 264 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 10 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 th is 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 satisfaction of the City and to participate in any meeting required with regard to the correction. 17.b Packet Pg. 265 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 11 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 Phillip White 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: Barbara Whitehorn Director of Finance With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Sonia Carvalho, City Attorney CONSULTANT: Eide Bailly LLP 10681 Foothill Blvd., Suite 300 Rancho Cucamonga, CA 91730 17.b Packet Pg. 266 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 12 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. 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. 17.b Packet Pg. 267 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 13 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] 17.b Packet Pg. 268 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 14 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND EIDE BAILLY LLP IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date firs t written above. CITY OF SAN BERNARDINO Approved By: Robert D. Field City Manager Approved as to Form: Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC, City Clerk CONSULTANT Signature Name Title 17.b Packet Pg. 269 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 15 EXHIBIT A STATEMENT OF WORK AND CONSULTANT’S DUTIES AND RESPONSIBILITIES Consultant will perform a compliance review of selected hotels/inns taxpayer to assure the City’s Transient Occupancy Tax rate is being properly applied to lodging charges and remitted to the City. Services shall be provided as outlined in the implementation plan documented in Consultant’s proposal. Upon completion of the audits, the Consultant will provide the City with a written report with findings that explains the results of the review as documented in the Consultant’s proposal. PAYMENT SCHEDULE: Consultant’s fees for such services shall be based upon the following proposed hourly rate and fixed fee cost schedule: Year 1 Year 2 Year 3 Transient Occupancy Tax (15 total entities) $25,000 $25,000 $25,000 Total Not to Exceed Contract Amount $75,000 Travel. Charges for time during travel are not reimbursable Billing 1. All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month’s bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. 3. A cop y of memoranda, letters, reports, calculations, and other documentation prepared b y Consultant may be required to be submitted to City to demonstrate progress toward completion of tasks. In the event City rejects or has comments on an y such product, the City shall identify specific requirements for satisfactor y completion. 4. Consultant shall submit to City an invoice for each monthly pa yment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification b y a principal member of Consultant’s firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all pa yments include an estimate of the percentage of work completed. 17.b Packet Pg. 270 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] 16 Upon submission of any such invoice, if the City is satisfied that the Consultant is making satisfactory progress toward completion of tasks in accordance with this Agreement, the City shall approve the invoice, in which event pa yment shall be made within thirty (30) da ys of receipt of the invoice b y the City. Such approval shall not be unreasonably withheld. If the City does not approve an invoice, the City shall notify the Consultant in writing of the reasons for non- approval and the schedule of performance set forth in Exhibit “A” may at the option of the City be suspended until the parties agree that past performance by the Consultant is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. Any billings for extra work or additional services authorized in advance and in writing by the City shall be invoiced separately to the City. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by the City if the work performed is in accordance with the extra work or additional services requested, and if the City is satisfied that the statement of hours worked, and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 17.b Packet Pg. 271 Attachment: Attachment 2 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Eide Bailly LLP [Revision 1] RESOLUTION NO.2021-74 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND DAVIS FARR LLP FOR THE PROVISION OF UTILITY USERS TAX AND FRANCHISE FEE AUDIT SERVICES WHEREAS, in the interests of being fiscally prudent, City of San Bernardino (“City”) staff released a request for proposals for revenue audit and recovery services; and WHEREAS, the City received proposals from three qualified firms; and WHEREAS, following a lengthy review process, City Staff recommended the selection of Davis Farr LLP. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager is hereby authorized and directed to execute the Professional Services Agreement with Davis Farr LLP, a copy of which is attached hereto and incorporated herein as Exhibit “A.” SECTION 2. The Finance Department is hereby authorized to issue a Purchase Order to Davis Farr LLP for Utility Users Tax and Franchise Fee Audit Services for an amount not to exceed $74,970. 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 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. SECTION 6. The recitals above are true and correct and are hereby incorporated herein by this reference. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this _____day of _______________ 2021. 17.c Packet Pg. 272 Attachment: Attachment 3 - Resolution 2021-74 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Resolution No. ___ John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 17.c Packet Pg. 273 Attachment: Attachment 3 - Resolution 2021-74 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___day of ________ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ________ 2021. Genoveva Rocha, CMC, City Clerk 17.c Packet Pg. 274 Attachment: Attachment 3 - Resolution 2021-74 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND DAVIS FARR LLP This Agreement is made and entered into as of April 7, 2021 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 Davis Farr LLP, a California Limited Liability Partnership with its principal place of business at 2301 Dupont Drive, Suite 200, Irvine, CA 92612 (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: Professional Auditing Services related to the City’s Utility Users Tax and Franchise Fees (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 and incorporated herein 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 under this Agreement exceed the sum of $74,970. This amount is to cover all related costs, and 17.d Packet Pg. 275 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 2 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 resume performance of this Agreement. 17.d Packet Pg. 276 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 3 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 t ermination. 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. 17.d Packet Pg. 277 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 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. 17.d Packet Pg. 278 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 5 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. (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. 17.d Packet Pg. 279 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 6 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. 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 17.d Packet Pg. 280 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 7 insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the Cit y 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 17.d Packet Pg. 281 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 8 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. 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 17.d Packet Pg. 282 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 9 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 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 17.d Packet Pg. 283 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 10 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 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 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 Jennifer Farr 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, 17.d Packet Pg. 284 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 11 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: Barbara Whitehorn Director of Finance With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Sonia Carvalho, City Attorney CONSULTANT: Davis Farr LLP 2301 Dupont Drive, Suite 200 Irvine, CA 92612 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. 17.d Packet Pg. 285 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 12 35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. 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] 17.d Packet Pg. 286 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND DAVIS FARR LLP IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Robert D. Field City Manager Approved as to Form: Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC, City Clerk CONSULTANT Signature Name Title 17.d Packet Pg. 287 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 14 EXHIBIT A STATEMENT OF WORK AND CONSULTANTS DUTIES AND RESPONSIBILITIES Consultant will perform compliance audits of selected taxpayer accounts from the City’s Utility User Tax and Franchise Fee customers to assure the respective taxes are being properly collected and remitted. Services shall be provided as outlined in the implementation plan documented in Consultant’s proposal. Upon completion of the audits, the Consultant will provide the City with a written report with findings that explains the results of the review as documented in the Consultant’s proposal. PAYMENT SCHEDULE: Consultant’s fees for such services shall be based upon the following proposed hourly rate and fixed fee cost schedule: Year 1 Year 2 Year 3 Utility Users Tax & Franchise Fees (7 entities per year) $24,500 $24,990 $25,480 Total Not to Exceed Contract Amount $74,970 Travel. Charges for time during travel are not reimbursable Billing 1. All billing shall be done monthly in fifteen (15) minute increments and matched to an appropriate breakdown of the time that was taken to perform that work and who performed it. 2. Each month’s bill should include a total to date. That total should provide, at a glance, the total fees and costs incurred to date for the project. 3. A cop y of memoranda, letters, reports, calculations, and other documentation prepared b y Consultant may be required to be submitted to City to demonstrate progress toward completion of tasks. In the event City rejects or has comments on an y such product, the City shall identify specific requirements for satisfactor y completion. 4. Consultant shall submit to City an invoice for each monthly pa yment due. Such invoice shall: A) Reference this Agreement; B) Describe the services performed; C) Show the total amount of the payment due; D) Include a certification b y a principal member of Consultant’s firm that the work has been performed in accordance with the provisions of this Agreement; and E) For all pa yments include an estimate of the percentage of work completed. 17.d Packet Pg. 288 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] 15 Upon submission of any such invoice, if the City is satisfied that the Consultant is making satisfactory progress toward completion of tasks in accordance with this Agreement, the City shall approve the invoice, in which event pa yment shall be made within thirty (30) da ys of receipt of the invoice b y the City. Such approval shall not be unreasonably withheld. If the City does not approve an invoice, the City shall notify the Consultant in writing of the reasons for non- approval and the schedule of performance set forth in Exhibit “A” may at the option of the City be suspended until the parties agree that past performance by the Consultant is in, or has been brought into compliance, or until this Agreement has expired or is terminated as provided herein. Any billings for extra work or additional services authorized in advance and in writing by the City shall be invoiced separately to the City. Such invoice shall contain all of the information required above, and in addition shall list the hours expended and hourly rate charged for such time. Such invoices shall be approved by the City if the work performed is in accordance with the extra work or additional services requested, and if the City is satisfied that the statement of hours worked, and costs incurred is accurate. Such approval shall not be unreasonably withheld. Any dispute between the parties concerning payment of such an invoice shall be treated as separate and apart from the ongoing performance of the remainder of this Agreement. 17.d Packet Pg. 289 Attachment: Attachment 4 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Davis Farr LLP [Revision 1] RESOLUTION NO.2021-75 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND HINDERLITER, DE LLAMAS & ASSOCIATES FOR THE PROVISION OF SALES TAX ANALYSIS AND AUDIT SERVICES WHEREAS, in the interests of being fiscally prudent, City staff released a request for proposals for revenue audit and recovery services; and WHEREAS, the City received proposals from two qualified firms; and WHEREAS, following a lengthy review process, City Staff recommended the selection of Hinderliter, de Llamas & Associates. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager is hereby authorized and directed to execute the Professional Services Agreement with Hinderliter, de Llamas & Associates, a copy of which is attached and incorporated herein as Exhibit “A.” SECTION 2. The Finance Department is hereby authorized to issue a Purchase Order to Hinderliter, de Llamas & Associates. 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 tha t 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. SECTION 6. The recitals above are true and correct and are hereby incorporated herein by this reference. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this _______day of ______________ 2021. 17.e Packet Pg. 290 Attachment: Attachment 5 - Resolution 2021-75 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Resolution No. ___ John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 17.e Packet Pg. 291 Attachment: Attachment 5 - Resolution 2021-75 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 17.e Packet Pg. 292 Attachment: Attachment 5 - Resolution 2021-75 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND HINDERLITER, DE LLAMAS & ASSOCIATES This Agreement is made and entered into as of April 7, 2021 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 Hinderliter, de Llamas & Associates, a California Limited Liability Company with its principal place of business at 120 S. State College Boulevard, Suite 200, Brea, CA 92821 (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: Professional Auditing Services related to the City’s Sales and Use Transaction Tax, including the Measure S District Tax (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 17.f Packet Pg. 293 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 2 under this Agreement exceed the sum of $25,500. 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 17.f Packet Pg. 294 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 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 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. 17.f Packet Pg. 295 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 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. 17.f Packet Pg. 296 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 5 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. (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 Consultan t 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. 17.f Packet Pg. 297 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 6 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. 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. 17.f Packet Pg. 298 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 7 (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. i. 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 17.f Packet Pg. 299 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 8 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. (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 Council, its employee s, 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 17.f Packet Pg. 300 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 9 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 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 17.f Packet Pg. 301 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 10 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 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 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 Andrew Nickerson 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. 17.f Packet Pg. 302 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 11 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: Barbara Whitehorn Director of Finance With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Sonia Carvalho, City Attorney CONSULTANT: Hinderliter, de Llamas & Associates 120 S. State College Blvd, Suite 200 Brea, CA 92821 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 17.f Packet Pg. 303 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 12 otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void. 35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38. Amendments. Only a writing executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. 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] 17.f Packet Pg. 304 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND HINDERLITER, DE LLAMAS & ASSOCIATES IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Robert D. Field City Manager Approved as to Form: Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC, City Clerk CONSULTANT Signature Name Title 17.f Packet Pg. 305 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 14 EXHIBIT A STATEMENT OF WORK AND CONSULTANTS DUTIES AND RESPONSIBILITIES The Consultant shall perform the following services: MANAGEMENT REPORTS AND ECONOMIC ANALYSIS Consultant shall establish a special database that identifies the name, address, and quarterly allocations of all sales tax producers within the City for the most current and previous back to 1990 or earlier, if the City has prior historical sales tax data available on computer readable magnetic media and update the information quarterly. This database will be utilized to generate special reports to the City on: major sales tax producers by rank and category, sales tax activity by categories, business districts or redevelopment areas, identification of reporting aberrations, and per capita and outlet comparisons with regional and statewide sales. Consultant shall provide updated reports each quarter identifying changes in sales by individual businesses, business group and categories, and by geographic area. Quarterly aberrations due to State audits, fund transfers, and receivables along with late or double payments will be identified. Quarterly reconciliation worksheets to assist finance officer with budget forecasting will be included along with separate reports to monitor and project the City’s Measure S Transactions Tax that was adopted in 2020. Consultant shall additionally provide a quarterly summary analysis for the City or its Redevelopment Agency to share with Chambers of Commerce and other economic development interest groups that analyze the City’s sales tax trends by major groups, and geographic areas without disclosing confidential information. Consultant shall make available and train the City Staff on the use of HdL sales tax computer software program and database containing sellers permit and quarterly allocation information for all in-city business outlets registered with the Board of Equalization and keep the registration and allocation data current with quarterly updates. ALLOCATION AUDIT AND RECOVERY Consultant shall conduct an initial and on-going sales and use tax audit to identify and correct “point-of-sale” distribution errors and thereby generate previously unrealized sales tax income for the City. Common errors that will be monitored and corrected include: transposition errors resulting in misallocations; erroneous consolidation of multiple outlets; misreporting of “point of sale” to the wrong location; failure to properly report out of state purchases to in-state warehouses; improper reporting of capital purchases to state or county allocation pools; misdirection of self-imposed use tax and erroneous fund transfers and adjustments. Consultant will initiate contacts with the appropriate sales management and accounting officials in companies that have businesses where a probability of error exists to verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner so as to enhance the City’s relations with the business community. 17.f Packet Pg. 306 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 15 Consultant shall prepare and submit to the California Department of Tax and Fee Administration (CDTFA) all information necessary to correct any allocation errors that are identified and shall follow-up with the individual businesses and the CDTFA to ensure that all back quarter payments due the City are recovered. If during the course of its audit, Consultant finds businesses or capital projects located in the City that have the potential for modifying their operation to provide an even greater share of sales or use tax to the City, Consultant shall so advise City and upon request, shall work with those businesses, Consultant, and the City to encourage such changes. DEFICIENCY/ALLOCATION AUDITS – TRANSACTIONS TAX Consultant shall conduct on-going reviews to identify and correct unreported transactions and use tax payments and distribution errors, thereby generating previously unrealized revenue for the City. Said reviews shall include:  Comparison of county-wide local tax allocations to transactions tax for brick-and-mortar stores and other cash register-based businesses, where clearly all transactions are conducted on-site within the Measure “S” City boundaries, and therefore subject to transactions tax.  Review of any significant one-time use tax allocations to ensure that there is corresponding transaction tax payments for taxpayers with nexus within the City boundaries.  Review of state-wide transactions tax allocations and patterns to identify any obvious errors and omissions.  Identification and follow-up with any potentially large purchasers of supplies and equipment (e.g. hospitals, universities, manufacturing plants, agricultural operations, refineries) to ensure that their major vendors are properly reporting corresponding transactions tax payments to the Measure “S” Transactions Tax District. Consultant will initiate, where the probability of an error exists, contacts with the appropriate taxpayer management and accounting officials to verify whether current tax receipts accurately reflect the local sales activity. Such contacts will be conducted in a professional and courteous manner so as to enhance the City’s relations with the business community. Consultant shall prepare and submit to the CDTFA all information necessary to correct any allocation errors and deficiencies that are identified, and shall follow-up with the individual businesses and the CDTFA to ensure that all back quarter payments due the City are recovered. CONSULTATION Throughout the term of this agreement, Consultant shall provide sales tax estimates for proposed annexations, economic development projects and budget projections, monitor the City’s sales tax sharing agreements and budgeted revenue projections against actual receipts, evaluate sales and use tax related legislative and regulatory proposals that potentially impact the City, assist in targeting business retention and tax leveraging opportunities, provide training 17.f Packet Pg. 307 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 16 on sales, transactions and use tax revenues when requested and generally serve as City staff on sales, use and transactions tax issues. CONSIDERATION Consultant shall establish the sales and transactions tax databases, shall provide the ongoing reports and analysis and shall make available the computer software program and databases referenced above for a fee of $850 per month, invoiced quarterly (hereafter referred to as “monthly fee”). The monthly fee shall increase annually by the percentage increase in the Consumer Price Index (CPI) for the preceding twelve-month period. Consultant shall be further paid 15% of all new Bradley-Burns sales or use tax revenue received by the City as a result of audit and recovery work performed by Consultant (hereafter referred to as “audit fees”) including any reimbursement from the Sales and Use Tax Compensation Fund as outlined in Section 97 .68 of the Revenue and Taxation Code. New sales, transactions and/or use tax revenue shall not include any amounts determined by the City or Consultant to be increment attributable to causes other than Consultant’s work pursuant to this agreement. In the event that Consultant is responsible for an increase in the tax reported by businesses already properly making tax payments to the City, it shall be Consultant’s responsibility to separate and support the incremental amount attributable to its efforts prior to the application of the audit fee. Said audit fees will apply to state fund transfers received for back quarter reallocations and monies received in the first eight consecutive reporting quarters following completion of the audit by Consultant and confirmation of corrections by the California Department of Tax and Fee Administration. Consultant shall provide the City with an itemized quarterly invoice showing all formula calculations and amounts due for audit fees. For City’s Measure “S” Transactions Tax, Consultant shall be paid 25% of all new transactions or use tax revenue received by the City as a result of audit and recovery work performed by Consultant (hereafter referred to as “audit fees”). New revenue shall not include any amounts determined and verified by the City or Consultant to be increment attributable to causes other than Consultant's work pursuant to this agreement. In the event that Consultant is responsible for an increase in the tax reported by businesses already properly making tax payments to the City, it shall be Consultant’s responsibilit y to separate and support the incremental amount attributable to its efforts prior to the application of the audit fee. Said audit fees will apply to state fund transfers received for those specific quarters identified as being missing and/or deficient following completion of the audit by Consultant and confirmation of corrections by the California Department of Tax and Fee Administration. Consultant shall obtain City approval prior to beginning the work of correcting tax reporting methodology or “point of sale” for specific businesses where said payment of the percentage fee will be expected. City shall pay audit fees upon Consultant’s submittal of evidence of State Fund Transfers and payments to the City from businesses identified in the audit and approved by the City. 17.f Packet Pg. 308 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & 17 Above sum shall constitute full reimbursement to Consultant for all direct and indirect expenses incurred by Consultant in performing audits including the salaries of Consultant’s employees, and travel expenses connected with contacting local and out-of-state businesses and CDTFA representatives. CONFIDENTIALITY Section 7056 of the State of California Revenue and Taxation code specifically limits the disclosure of confidential taxpayer information contained in the records of the California Department of Tax and Fee Administration. This section specifies the conditions under which a City may authorize persons other than City officers and employees to examine State Sales and Use Tax records. The following conditions specified in Section 7056 (b), (1) of the State of California Revenue and Taxation Code are hereby made part of this agreement: A. Consultant is authorized by this Agreement to examine sales, use or transactions and use tax records of the Board of Equalization provided to the City pursuant to contract under the Bradley-Burns Uniform Sales and Use Tax Law. B. Consultant is required to disclose information contained in, or derived from, those sales, use or transactions and use tax records only to an officer or employee of the City who is authorized by resolution to examine the information. C. Consultant is prohibited from performing consulting services for a retailer, as defined in California Revenue & Taxation Code Section 6015, during the term of this Agreement. D. Consultant is prohibited from retaining the information contained in, or derived from those sales or transactions and use tax records, after this Agreement has expired. Information obtained by examination of CDTFA records shall be used only for purposes related to collection of local sales and use tax or for other governmental functions of the City as set forth by resolution adopted pursuant to Section 7056 (b) of the Revenue and Taxation Code. The resolution shall designate the Consultant as a person, authorized to examine sales and use tax records and certify that this Agreement meets the requirements set forth above and in Section 7056 (b), (1) of the Revenue and Taxation Code. 17.f Packet Pg. 309 Attachment: Attachment 6 - Exhibit A - Professional Services Agreement Between the City of San Bernardino and Hinderliter, de Llamas & RESOLUTION NO.2021-76 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS WHEREAS, pursuant to Ordinance Number MC-1551, the City of San Bernardino (City) entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of sales and use taxes; and WHEREAS, pursuant to Revenue and Taxation Code section 7270, the City entered into a contract with the California Department of Tax and Fee Administration (Department) to perform all functions incident to the administration and collection of transactions and use taxes; and WHEREAS, the Mayor and City Council of the City of San Bernardino deem it desirable and necessary for authorized officers, employees and representatives of the City to examine confidential sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected by the Department for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and T axation Code sets forth certain requirements and conditions for the disclosure of Department records, and Section 7056.5 of the California Revenue and Taxation Code establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales or transactions and use tax records of the Department; BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Section 1. That the City Manager, Assistant City Manager, Finance Director, or other officer or employee of the City designated in writing by the City Manager to the California Department of Tax and Fee Administration is hereby appointed to represent the City with authority to examine sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department pursuant to the contract between the City and the Department. Section 2. The information obtained by examination of Department records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Department pursuant to that contract, and for purposes related to the following governmental functions of the City: (a) Revenue management and budgeting (b) Community and economic development The information obtained by examination of Department records shall be used only for those governmental functions of the City listed above. 17.g Packet Pg. 310 Attachment: Attachment 7 - Resolution 2021-76 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Section 3. That Hinderliter, de Llamas & Associates is hereby designated to examine the sales or transactions and use tax records of the Department pertaining to sales or transactions and use taxes collected for the City by the Department. The person or entity designated by this section meets all of the following conditions, which are also included in the contract between the City and Hinderliter, de Llamas & Associates: a) has an existing contract with the City to examine those sales or transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from, those sales or transactions and use tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information. c) is prohibited by that contract from performing consulting services for a retailer durin g the term of that contract; d) is prohibited by that contract from retaining the information contained in, or derived from those sales or transactions and use tax records, after that contract has expired. Secion 4. That the information obtained by examination of Department records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Department pursuant to the contract between the City and the Department and for those purposes relating to the governmental functions of the City listed in section 2 of this Resolution. Section 5. That this Resolution supercedes all prior Resolutions of the Mayor and City Council of the City of San Bernardino adopted pursuant to subdivision (b) of Revenue and Taxation Code section 7056. Section 6. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Section 7. 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 8. Effective Date. This Resolution shall become effective immediately. Section 9. The recitals above are true and correct and are hereby incorporated herein by this reference. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this _______day of ______________ 2021. John Valdivia, Mayor City of San Bernardino 17.g Packet Pg. 311 Attachment: Attachment 7 - Resolution 2021-76 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 17.g Packet Pg. 312 Attachment: Attachment 7 - Resolution 2021-76 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 17.g Packet Pg. 313 Attachment: Attachment 7 - Resolution 2021-76 [Revision 1] (7175 : Approval of Resolutions to Execute Agreements for Revenue Audit and Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Investment Portfolio Report for February 2021 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for February 2021. Background The City’s Statement of Investment Policy requires that a monthly Investment Portfolio Report be prepared and submitted to the Mayor and City Council. The Director of Finance will prepare, review, and present the City’s Investment Portfolio Report and confirm that the portfolio is in compliance with the City’s Investment Policy. Discussion The Investment Portfolio Report provides a synopsis of investment activity for the City’s investment portfolio for the month ended February 28, 2021. The City’s Investment Portfolio is in full compliance with the City’s current Investment Policy and California Government Code Section 53601, and there is sufficient cash flow from a combination of liquid and maturing securities, bank deposits, and income to meet the City’s expenditure requirements. 2020-2025 Key Strategic Targets and Goals The acceptance and filing of the attached Investment Portfolio Report aligns with Key Target No. 1: Financial Stability by implementing, maintaining, and updating a fiscal accountability plan. Fiscal Impact There is no fiscal impact associated with receiving and filing the monthly investment report. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portf olio Report for February 2021. 18 Packet Pg. 314 7189 Page 2 Attachments Attachment 1 Investment Portfolio Management Summary Report Ward: All Synopsis of Previous Council Actions: N/A 18 Packet Pg. 315 18.aPacket Pg. 316Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date State Local Agency Investment Fund 0.401LOCAL AGENCY INVESTMENT FUND10001 60,559,921.94 60,559,921.94 0.40760,559,921.94SYS 1 60,559,921.9460,559,921.9460,559,921.9457,988,493.37Subtotal and Average 0.401 1 Managed Pool Accounts 0.296CALTRUST GOVT INVESTMENT FUND20008 1,781.20 1,781.20 0.3001,781.2020008 1 1,781.201,781.201,781.201,780.74Subtotal and Average 0.296 1 Corporate Notes 1.908AMERICAN HONDA FINANCE CORP30559 1,000,000.00 1,000,328.75 05/10/20231.95001/10/2020 1,032,590.00 A02665WDH1 800 1.732APPLE INC30554 1,000,000.00 999,161.96 09/11/20221.70012/10/2019 1,022,510.00 Aaa037833DL1 559 1.800APPLE INC30561 1,000,000.00 999,154.35 09/11/20241.80001/24/2020 1,043,930.00 Aa037833DM9 1,290 2.152BANK OF AMERICA CORPORATION30549 1,000,000.00 1,000,000.00 10/30/20222.10010/30/2019 998,660.00 Aa06048WD72 608 0.842BANK OF AMERICA CORPORATION30603 2,000,000.00 1,995,101.81 12/23/20250.65001/25/2021 1,981,780.00 Aa06048WK66 1,758 1.904BANK OF NEW YORK MELLON CORP30547C 2,000,000.00 2,012,697.83 08/16/20232.20010/16/2019 2,085,600.00 Aaa06406FAD5 898 1.180JOHNSON & JOHNSON30570 1,000,000.00 1,000,000.00 03/01/20211.65003/03/2020 1,000,000.00 Aaa478160BS2 0 2.268J.P. MORGAN CHASE & CO30551 1,000,000.00 1,000,000.00 12/23/20242.30012/23/2019 1,004,260.00 Aaa48128GN97 1,393 1.036J.P. MORGAN CHASE & CO30582 1,000,000.00 1,000,000.00 06/23/20251.05006/23/2020 980,350.00 Aaa48128GU40 1,575 0.789J.P. MORGAN CHASE & CO30595 1,000,000.00 1,000,000.00 08/18/20250.80008/18/2020 973,820.00 Aaa48128GV56 1,631 1.731CHARLES SCHWAB CORP30563 1,064,000.00 1,081,559.79 01/25/20232.65001/27/2020 1,108,815.68 Aa808513AT2 695 2.096TOYOTA MOTOR CREDIT CORP30548 1,000,000.00 1,000,000.00 10/22/20242.12510/22/2019 1,002,650.00 Aaa89236TGN9 1,331 0.796TOYOTA MOTOR CREDIT CORP30607 1,000,000.00 999,681.34 10/16/20250.80002/24/2021 986,890.00 A89236THP3 1,690 15,087,685.8315,221,855.6815,064,000.0014,267,257.99Subtotal and Average 1.534 1,123 Federal Agency Issues - Coupon 1.567FEDERAL FARM CREDIT BANK30555 2,000,000.00 2,008,002.05 12/13/20212.11012/31/2019 2,031,780.00 Aaa3133EH2T9 287 0.572FEDERAL FARM CREDIT BANK30573 1,000,000.00 1,000,000.00 06/03/20240.58006/03/2020 1,000,990.00 Aaa3133ELE67 1,190 0.278FEDERAL FARM CREDIT BANK30596 1,000,000.00 999,697.31 10/05/20230.27010/05/2020 1,000,200.00 Aaa3133EMBQ4 948 0.158FEDERAL FARM CREDIT BANK30597 1,000,000.00 1,000,000.00 10/13/20220.16010/13/2020 1,000,090.00 Aaa3133EMCH3 591 0.138FEDERAL FARM CREDIT BANK30598 1,000,000.00 1,000,000.00 04/08/20220.14010/08/2020 999,680.00 Aaa3133EMCJ9 403 0.128FEDERAL FARM CREDIT BANK30604 1,000,000.00 999,611.67 02/10/20230.11002/10/2021 998,300.00 Aaa3133EMQH8 711 0.334FEDERAL FARM CREDIT BANK30605 1,000,000.00 999,260.94 02/10/20250.32002/10/2021 989,620.00 Aaa3133EMQG0 1,442 1.913FEDERAL HOME LOAN BANK30523 1,000,000.00 999,506.56 11/29/20211.87501/19/2017 1,013,350.00 Aaa3130AABG2 273 1.926FEDERAL HOME LOAN BANK30528 1,000,000.00 999,451.22 11/29/20211.87502/14/2017 1,013,350.00 Aaa3130AABG2 273 1.672FEDERAL HOME LOAN BANK30534 1,000,000.00 1,000,052.70 04/07/20211.75006/14/2017 1,001,720.00 Aaa3130AB5A0 37 1.687FEDERAL HOME LOAN BANK30535 1,000,000.00 1,000,440.87 06/11/20211.87506/22/2017 1,005,050.00 Aaa313379RB7 102 1.529FEDERAL HOME LOAN BANK30566 1,000,000.00 1,000,000.00 03/25/20241.55003/25/2020 1,000,570.00 Aaa3130AJAX7 1,120 Portfolio CITY AP Run Date: 03/04/2021 - 15:35 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.3b 18.a Packet Pg. 317 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment YTM 360 Page 2 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Federal Agency Issues - Coupon 0.615FEDERAL HOME LOAN BANK30606 2,000,000.00 2,000,000.00 02/26/20260.50002/26/2021 1,982,620.003130AL6L3 1,823 1.341FEDERAL HOME LOAN MORTGAGE CRP30518 1,000,000.00 998,985.18 08/12/20211.12511/07/2016 1,004,530.00 Aaa3137EAEC9 164 1.978FEDERAL HOME LOAN MORTGAGE CRP30525C 425,000.00 424,980.77 01/26/20222.00001/30/2017 432,293.00 Aaa3134GAU44 331 2.096FEDERAL HOME LOAN MORTGAGE CRP30529C 1,000,000.00 1,000,000.00 02/28/20222.12502/28/2017 1,020,050.00 Aaa3134GA5T7 364 1.973FEDERAL HOME LOAN MORTGAGE CRP30530C 1,000,000.00 1,000,000.00 09/16/20212.00003/16/2017 1,010,280.00 Aaa3134GA5C4 199 1.933FEDERAL HOME LOAN MORTGAGE CRP30531 1,000,000.00 999,671.46 07/26/20211.87503/06/2017 1,007,180.00 Aaa3134G9M20 147 2.042FEDERAL HOME LOAN MORTGAGE CRP30537C 1,000,000.00 999,226.71 04/26/20222.00011/06/2017 1,022,070.00 Aaa3134GBP55 421 0.444FEDERAL HOME LOAN MORTGAGE CRP30576 1,000,000.00 1,000,000.00 06/01/20230.45006/01/2020 1,000,000.00 Aaa3134GVB72 822 0.414FEDERAL HOME LOAN MORTGAGE CRP30577 1,000,000.00 1,000,000.00 03/17/20230.42006/17/2020 1,000,120.00 Aaa3134GVQ50 746 0.444FEDERAL HOME LOAN MORTGAGE CRP30578 1,000,000.00 1,000,000.00 12/29/20230.45006/29/2020 999,460.00 Aaa3134GVS82 1,033 0.641FEDERAL HOME LOAN MORTGAGE CRP30581 1,000,000.00 1,000,000.00 06/30/20250.65006/30/2020 999,950.00 Aaa3134GVT99 1,582 0.493FEDERAL HOME LOAN MORTGAGE CRP30583 1,000,000.00 1,000,000.00 03/28/20240.50006/29/2020 1,000,320.00 Aaa3134GV3T3 1,123 0.444FEDERAL HOME LOAN MORTGAGE CRP30584 1,000,000.00 1,000,000.00 07/22/20240.45007/22/2020 995,180.00 Aaa3134GWCB0 1,239 0.395FEDERAL HOME LOAN MORTGAGE CRP30586 1,000,000.00 1,000,000.00 10/23/20230.40007/23/2020 1,000,950.00 Aaa3134GV6D5 966 0.493FEDERAL HOME LOAN MORTGAGE CRP30587 1,000,000.00 1,000,000.00 10/30/20240.50007/30/2020 1,000,420.00 Aaa3134GWDX1 1,339 0.247FEDERAL HOME LOAN MORTGAGE CRP30590 1,000,000.00 1,000,000.00 11/03/20220.25008/03/2020 999,970.00 Aaa3134GWHD1 612 0.360FEDERAL HOME LOAN MORTGAGE CRP30592 1,000,000.00 1,000,251.33 07/28/20230.37507/30/2020 1,000,770.00 Aaa3134GWDL7 879 0.335FEDERAL HOME LOAN MORTGAGE CRP30593 1,000,000.00 1,000,000.00 04/21/20230.34007/30/2020 1,000,590.00 Aaa3134GV7M4 781 0.404FEDERAL HOME LOAN MORTGAGE CRP30594 1,000,000.00 1,000,000.00 05/13/20240.41008/13/2020 993,970.00 Aaa3134GWHR0 1,169 0.247FEDERAL HOME LOAN MORTGAGE CRP30599 1,000,000.00 1,000,000.00 07/07/20230.25010/26/2020 999,480.00 Aaa3134GWVF0 858 0.263FEDERAL HOME LOAN MORTGAGE CRP30601 1,000,000.00 1,000,000.00 11/02/20230.32011/02/2020 999,420.00 Aaa3134GW6E1 976 1.332FEDERAL NATIONAL MORTGAGE ASSO30512C 1,000,000.00 1,000,000.00 03/29/20211.35009/29/2016 1,000,990.00 Aaa3136G4BD4 28 1.411FEDERAL NATIONAL MORTGAGE ASSO30513 1,000,000.00 999,654.78 10/07/20211.37510/13/2016 1,007,750.00 Aaa3135GOQ89 220 1.401FEDERAL NATIONAL MORTGAGE ASSO30515 1,000,000.00 999,738.51 10/07/20211.37510/31/2016 1,007,750.00 Aaa3135G0Q89 220 1.341FEDERAL NATIONAL MORTGAGE ASSO30517 1,000,000.00 1,000,064.21 10/07/20211.37511/03/2016 1,007,750.00 Aaa3135GOQ89 220 1.716FEDERAL NATIONAL MORTGAGE ASSO30519 1,000,000.00 997,908.52 10/07/20211.37511/18/2016 1,007,750.00 Aaa3135G0Q89 220 1.946FEDERAL NATIONAL MORTGAGE ASSO30524 1,000,000.00 1,000,214.95 01/05/20222.00001/23/2017 1,016,220.00 Aaa3135G0S38 310 1.994FEDERAL NATIONAL MORTGAGE ASSO30526 1,000,000.00 999,828.54 01/05/20222.00002/02/2017 1,016,220.00 Aaa3135G0S38 310 2.014FEDERAL NATIONAL MORTGAGE ASSO30532 1,000,000.00 999,662.53 01/05/20222.00003/02/2017 1,016,220.00 Aaa3135G0S38 310 2.140FEDERAL NATIONAL MORTGAGE ASSO30533C 1,000,000.00 1,000,000.00 03/29/20222.17003/29/2017 1,022,120.00 Aaa3136G4MQ3 393 0.513FEDERAL NATIONAL MORTGAGE ASSO30580 1,000,000.00 1,000,000.00 12/22/20230.52006/22/2020 1,000,820.00 Aaa3136G4XE8 1,026 0.592FEDERAL NATIONAL MORTGAGE ASSO30585 1,000,000.00 1,000,000.00 07/22/20250.60007/22/2020 993,810.00 Aaa3136G4ZF3 1,604 0.641FEDERAL NATIONAL MORTGAGE ASSO30588 1,000,000.00 1,000,000.00 08/14/20250.65008/14/2020 995,480.00 Aaa3136G4C43 1,627 0.335FEDERAL NATIONAL MORTGAGE ASSO30589 1,000,000.00 1,000,000.00 08/18/20230.34008/18/2020 1,001,610.00 Aaa3136G4F99 900 0.533FEDERAL NATIONAL MORTGAGE ASSO30600 1,000,000.00 1,000,000.00 10/27/20250.54010/27/2020 988,750.00 Aaa3136G45C3 1,701 0.542FEDERAL NATIONAL MORTGAGE ASSO30602 1,000,000.00 1,000,000.00 11/04/20250.55011/04/2020 988,920.00 Aaa3135GA2N0 1,709 Portfolio CITY AP Run Date: 03/04/2021 - 15:35 PM (PRF_PM2) 7.3.0 18.a Packet Pg. 318 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment YTM 360 Page 3 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date 49,426,210.8149,596,483.0049,425,000.0048,176,452.52Subtotal and Average 0.991 762 Supranationals 0.434INTL BK RECON & DEVELOPMENT30609 1,500,000.00 1,568,270.36 01/15/20251.62502/26/2021 1,558,695.00 Aaa459058HT3 1,416 1,568,270.361,558,695.001,500,000.00168,034.13Subtotal and Average 0.434 1,416 Treasury Securities - Coupon 1.919U.S. TREASURY40001C 1,000,000.00 1,000,259.21 08/31/20212.00002/21/2017 1,009,650.00 Aaa912828D72 183 2.348U.S. TREASURY40002 1,000,000.00 999,482.12 07/31/20212.25002/12/2018 1,009,220.00 Aaa912828WY2 152 2.510U.S. TREASURY40003 1,000,000.00 998,825.39 07/31/20212.25006/04/2018 1,009,220.00 Aaa912828WY2 152 2.584U.S. TREASURY40004 1,000,000.00 999,909.58 03/15/20212.37506/25/2018 1,000,890.00 Aaa9128284B3 14 3,998,476.304,028,980.004,000,000.003,998,257.91Subtotal and Average 2.340 125 Certificates of Deposit 1.7261ST TECHNOLOGY FEDERAL CREDIT80034 248,000.00 248,000.00 06/30/20211.75006/30/2016 249,331.2633715LAD2 121 2.022AMERICAN EXPRESS CENTURION BK80038 247,000.00 247,000.00 12/01/20212.05012/01/2016 250,427.3702587DM70 275 2.170BMW BANK80041 247,000.00 247,000.00 02/24/20222.20002/24/2017 251,789.4305580AGK4 360 2.614CAPITAL ONE NATIONAL ASSOC80054 247,000.00 247,000.00 05/30/20242.65005/30/2019 264,389.1214042RLW9 1,186 2.860CITI BANK SALT LAKE CITY UTAH80043 246,000.00 246,000.00 05/24/20212.90005/23/2018 247,651.6917312QM22 84 2.712COMENITY CAPITAL BANK80052 249,000.00 249,000.00 04/15/20242.75004/29/2019 267,139.5520033AU61 1,141 2.416EAGLE BANK80053 249,000.00 249,000.00 05/24/20222.45005/24/2019 255,780.9227002YEP7 449 3.107GOLDMAN SACHS GROUP INC.80046 245,000.00 245,000.00 01/17/20233.15001/16/2019 258,571.4638148P4B0 687 2.910MEDALLION BANK80044 249,000.00 249,000.00 06/04/20212.95006/04/2018 250,904.2358404DCA7 95 2.860MORGAN STANLEY BANK80042 246,000.00 246,000.00 05/10/20212.90005/10/2018 247,385.8961747MX63 70 3.008MORGAN STANLEY PRIVATE BANK80048 246,000.00 246,000.00 01/31/20243.05001/31/2019 265,048.9161760AVF3 1,066 2.564MORGAN STANLEY PRIVATE BANK80055 247,000.00 247,000.00 06/13/20242.60006/13/2019 264,345.1661760AG52 1,200 2.712NORTHWESTERN BANK80049 245,000.00 245,000.00 02/13/20232.75002/13/2019 257,177.33668015AL4 714 2.712OXFORD BANK & TRUST80051 245,000.00 245,000.00 06/28/20222.75002/28/2019 253,210.2969140WAS4 484 2.022STEARNS BANK80039 249,000.00 249,000.00 01/13/20222.05001/13/2017 252,966.97857894SK6 318 1.677SYNCHRONY BANK80036 247,000.00 247,000.00 10/21/20211.70010/21/2016 249,398.3287165FNC4 234 2.959TIAA FSB80050 245,000.00 245,000.00 02/22/20243.00002/22/2019 264,107.0187270LBU6 1,088 2.959UBS FINANCE COMMERCIAL PAPER80045 249,000.00 249,000.00 06/14/20213.00006/13/2018 251,135.8590348JCU2 105 2.022WASHINGTON FIRST BK RESTON80040 247,000.00 247,000.00 02/23/20222.05002/23/2017 251,404.45940727AH3 359 3.156WELLS FARGO BK NA80047 500,000.00 500,000.00 01/18/20243.20001/18/2019 540,926.15949763WU6 1,053 1.726WELLS FARGO BANK80033 249,000.00 249,000.00 06/17/20211.75006/17/2016 250,235.749497485W3 108 5,442,000.005,643,327.105,442,000.005,442,000.00Subtotal and Average 2.548 557 Portfolio CITY AP Run Date: 03/04/2021 - 15:35 PM (PRF_PM2) 7.3.0 18.a Packet Pg. 319 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment YTM 360 Page 4 Par Value Book Value Maturity Date Stated RateMarket Value February 28, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Money Market Funds 0.010WELLS FARGO GOVT MONEY MARKET20002 0.00 0.00 0.0100.00SYS20002 1 0.000.000.000.00Subtotal and Average 0.000 0 130,042,276.67 135,992,703.14 0.884 444136,611,043.92 136,084,346.44Total and Average Portfolio CITY AP Run Date: 03/04/2021 - 15:35 PM (PRF_PM2) 7.3.0 18.a Packet Pg. 320 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment YTM 360 Page 5 Par Value Book Value Stated RateMarket Value February 28, 2021 Portfolio Details - Cash Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date 0.00 130,042,276.67 135,992,703.14 0.884 444 0 10,223.86 10,223.86 10,223.86 10,223.86 Subtotal Accrued Interest at PurchaseAverage Balance 136,621,267.78 136,094,570.30Total Cash and Investments Portfolio CITY AP Run Date: 03/04/2021 - 15:35 PM (PRF_PM2) 7.3.0 18.a Packet Pg. 321 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment Page 1 Stated Rate Transaction Date February 1, 2021 through February 28, 2021 Activity By Type Balance Portfolio Management CITY OF SAN BERNARDINO CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals State Local Agency Investment Fund (Monthly Summary) LOCAL AGENCY INVESTMENT FUND10001 6,000,000.000.407 500,000.00SYS 500,000.00 60,559,921.94Subtotal6,000,000.00 Managed Pool Accounts (Monthly Summary) CALTRUST GOVT INVESTMENT FUND20008 0.510.300 0.0020008 0.00 1,781.20Subtotal0.51 Corporate Notes TOYOTA MOTOR CREDIT CORP30607 999,680.000.800 02/24/2021 0.0089236THP3 0.00 15,087,685.83Subtotal999,680.00 Federal Agency Issues - Coupon FEDERAL FARM CREDIT BANK30564 0.001.600 02/10/2021 999,332.723133ELMD3 FEDERAL FARM CREDIT BANK30604 999,600.000.110 02/10/2021 0.003133EMQH8 FEDERAL FARM CREDIT BANK30605 999,250.000.320 02/10/2021 0.003133EMQG0 FEDERAL HOME LOAN BANK30565 0.001.750 02/12/2021 2,000,000.003130AJ5F2 FEDERAL HOME LOAN BANK30606 2,000,000.000.500 02/26/2021 0.003130AL6L3 FEDERAL HOME LOAN MORTGAGE CRP30591 0.000.325 02/03/2021 1,000,000.003134GWGL4 3,999,332.72 49,426,210.81Subtotal3,998,850.00 Supranationals INTL BK RECON & DEVELOPMENT30609 1,568,415.001.625 02/26/2021 0.00459058HT3 0.00 1,568,270.36Subtotal1,568,415.00 Treasury Securities - Coupon 3,998,476.30Subtotal Certificates of Deposit 5,442,000.00Subtotal Money Market Funds (Monthly Summary) 0.00Subtotal 136,084,346.44Total4,499,332.7212,566,945.51 Portfolio CITY AP Run Date: 03/04/2021 - 15:35 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.3b 18.a Packet Pg. 322 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment Page 1 February 2020 through February 2021 Activity Summary Month Portfolio Management End Year Number of Securities Total Invested 360 Equivalent 365 Equivalent Managed Pool Rate Average Term Average Days to Maturity CITY OF SAN BERNARDINO Number of Investments Purchased Number of Investments Redeemed Yield to Maturity 123,735,583.62February202088 831 4671.870 1.896 1.912 3 0 117,383,961.74March202092 898 5271.760 1.784 1.730 6 2 116,849,030.14April202084 799 4311.720 1.744 1.648 0 8 138,861,091.34May202081 650 3401.523 1.544 1.363 0 3 136,635,240.56June202083 712 4051.432 1.452 1.217 11 9 114,967,808.06July202087 905 5251.310 1.328 0.920 6 2 109,430,118.52August202091 994 5871.247 1.265 0.860 6 2 103,596,103.88September202086 986 5731.214 1.231 0.685 0 5 106,022,285.66October202090 1,002 5871.162 1.178 0.620 5 1 110,769,958.19November202092 986 5681.118 1.133 0.560 2 0 113,728,761.06December202090 932 5191.075 1.090 0.540 0 2 128,018,030.40January202188 819 4460.962 0.975 0.458 1 3 136,084,346.44February202190 801 4440.884 0.897 0.407 5 3 Average 119,698,639.97 1.329%1.347%0.994 3 3 870 49488 Portfolio CITY AP Run Date: 03/04/2021 - 15:35 PM (PRF_PM4) 7.3.0 Report Ver. 7.3.3b 18.a Packet Pg. 323 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment Page 1 February 28, 2021 Interest Earnings Summary Month EndingFebruary 28 Fiscal Year To Date Portfolio Management CITY OF SAN BERNARDINO CD/Coupon/Discount Investments: 100,237.07Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 209,508.76 ( 229,602.75) 812,085.62 202,321.26 ( 289,879.23) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 80,143.08 -1,296.75 667.28 724,527.65 -9,940.30 -3,049.12 79,513.61 711,538.23 Pass Through Securities: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 ( 0.00) 0.00 0.00 ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash/Checking Accounts: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 470,826.49 ( 450,536.78) 329,311.64 470,826.49 ( 630,233.71) Interest Earned during Period 20,289.71 169,904.42 Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period 100,432.79 -1,296.75 667.28 894,432.07 -9,940.30 -3,049.12 99,803.32 881,442.65 Portfolio CITY AP Run Date: 03/04/2021 - 15:35 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b 18.a Packet Pg. 324 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7189 : Investment Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Final Reading and Adoption of Ordinance MC-1555 (Ward 3) 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-1555 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. 2021-1 (Ferree Street). Background On January 20, 2021, the Mayor and City Council approved Resolutions No. 2021-4 and 2021-5, 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 th e necessity to issue bonds secured by such special tax levy to finance the Facilities. Additionally, the resolutions set forth a public hearing to be held on March 3, 2021. On March 3, 2021, the Mayor and City Council held a public hearing and adopted Resolutions No. 2021-42, 2021-43, 2021-44 and 2021-45, which established and adopted the boundaries of CFD 2021-1, 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 March 3, 2021, Ordinance MC-1555 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. 19 Packet Pg. 325 7204 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 facilities proposed to be financed for the benefit of the development will be financed through the special taxes levied on the parcels within CFD 2021 -1 and not through the City’s General Fund. Conclusion It is recommended that the Mayor and City Council if the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1555 levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of c ertain public improvements and costs of administration with respect to City of San Bernardino Community Facilities District No. 2021-1 (Ferree Street). Attachments Attachment 1 Ordinance No. MC-1555 Attachment 2 Ordinance No. MC-1555 - Exhibit A Ward: 3 Synopsis of Previous Council Actions: January 20, 2021 Mayor and City Council approved Resolution Nos. 2021 -4 and 2021-5, 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 the necessity to issue bonds secured by such special tax levy to finance the Facilities. Additionally, the resolutions set forth a public hearing to be held on March 3, 2021. March 3, 2021 Mayor and City Council held a public hearing and adopted Resolutions No. 2021-42, 2021-43, 2021-44 and 2021-45, 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. 19 Packet Pg. 326 1 ORDINANCE NO. MC-1555 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. 2021-1 (FERREE STREET), 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. 2021-1 (Ferree Street) 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. 2021-1 (FERREE STREET), 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 and at the same time 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, and may covenant to foreclose and may actually foreclose on delinquent assessor’s parcels as permitted by the Act. 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 19.a Packet Pg. 327 Attachment: Attachment 1 - Ordinance No. MC-1555 (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) 2 the Special Tax (as defined in the Rate and Method) shall continue in force and effect until the 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, or a summary of it, 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 March 3, 2021. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 7th day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Attest: Sonia R. Carvalho, City Attorney 19.a Packet Pg. 328 Attachment: Attachment 1 - Ordinance No. MC-1555 (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, City Clerk, hereby certify that the attached is a true copy of Ordinance No.___, which was regularly introduced at a regular meeting of the City Council of the City of San Bernardino duly held on the 3rd day of March, 2021, and was adopted at a regular meeting of the City Council duly held on the 7th day of April 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2021. ______________________________ Genoveva Rocha, CMC, City Clerk 19.a Packet Pg. 329 Attachment: Attachment 1 - Ordinance No. MC-1555 (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAXES FOR COMMUNITY FACILITIES DISTRICT NO. 2021-1 (FERREE STREET) 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. 2021-1 (Ferree Street) of the City of San Bernardino ("CFD No. 2021-1"). The amount of Special Tax to be levied in each Fiscal Year, 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. 2021-1 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. 2021-1: 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. 2021 -1 or any designee thereof of complying with arbitrage rebate requirements; the costs to the City, CFD No. 2021-1 or any designee thereof of complying with continuing disclosure requirements of the City, CFD No. 2021-1 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. 2021-1 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. 2021 -1 for any other administrative purposes of CFD No. 2021-1, including attorney’s fees and other costs related to commencing and pursuing to completion any foreclosure of delinquent Special Taxes. 19.b Packet Pg. 330 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-2 "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. "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. 2021-1 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 issuance, 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. 19.b Packet Pg. 331 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-3 "CFD” or “CFD No. 2021-1" means Community Facilities District No. 2021-1 (Ferree Street) 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. 2021-1, 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 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.) o or recordation of a Condominium Plan pursuant to California Civil Code Section 4200 et seq. 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. 2021-1 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. 19.b Packet Pg. 332 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-4 "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 Provisional 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. “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. 2021-1 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. 2021-1 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. 2021-1, which are not Exempt Property. “Taxable Unit” means either a Residential Unit or an Acre. 19.b Packet Pg. 333 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-5 "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, Provisional Undeveloped Property. B. SPECIAL TAX Commencing Fiscal Year 2021-2022 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 2021-2022, each Assessor’s Parcel within CFD No. 2021-1 shall be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel of Taxable Property shall be further classified as Develop ed 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 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 Permits 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 be 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). 19.b Packet Pg. 334 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-6 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 2021-2022 shall be determined pursuant to Table 1 below. TABLE 1 ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY FISCAL YEAR 2021-2022 Land Use Category Taxable Unit Building Square Footage Assigned Special Tax Per Taxable Unit 1. Single Family Residential Property RU Less than 1,850 sq. ft $2,266 2. Single Family Residential Property RU 1,850 sq. ft to 2,000 sq. ft $2,366 3. Single Family Residential Property RU Greater than 2,000 sq. ft $2,433 4. Multifamily Property Acre N/A $39,394 5. Non-Residential Property Acre N/A $39,394 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. 19.b Packet Pg. 335 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-7 c. Backup Special Tax The Backup Special Tax for an Assessor’s Parcel within a Final Map classified as Single Family Residential Property shall be 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 $39,394 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 $39,394 per Acre. 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 $39,394 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 $39,394 per Acre. 19.b Packet Pg. 336 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-8 E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX Commencing Fiscal Year 2021-2022 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 Tax 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 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 19.b Packet Pg. 337 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-9 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 6.38 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 t han 6.38 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 6.38 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 $$2,558,800 expressed in 2021 dollars, which shall increase by the Construction Inflation Index on July 1, 2022, 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. 2021-1, 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. 2021-1. “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 Fiscal Year, excluding Bonds to be redeemed at a later date with the proceeds of prior prepayments of Special Tax. 19.b Packet Pg. 338 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-10 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 r eceipt 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 Parcels of Taxable Property based on the applicable Maximum Special Tax for 19.b Packet Pg. 339 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-11 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 from 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 bal ance 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. 19.b Packet Pg. 340 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-12 15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption Premium, and Defeasance Amount shall be deposited into the appropriate fund as established under 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 Act. 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 19.b Packet Pg. 341 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-13 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 such 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 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 2061-2062 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. 2021-1 Bonds have been paid; (ii) all authorized facilities of CFD No. 2021-1 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. 2021-1 have been satisfied. I. MANNER OF COLLECTION The Special Tax shall be collected in the same manner and at the same tim e as ordinary ad valorem property taxes, provided, however, that CFD No. 2021-1 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 19.b Packet Pg. 342 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) A-14 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. 19.b Packet Pg. 343 Attachment: Attachment 2 - Ordinance No. MC-1555 - Exhibit A (7204 : Final Reading and Adoption of Ordinance MC-1555 (Ward 3)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for March 2021. 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 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 March 18, 2021 $2,169,067.36 Monthly for March 15, 2021 11,666.69 Total Payroll Demands: $2,180,734.05 The following check registers are being presented for approval: March 11, 2021 2020/21 (Register #37)$1,249,802.17 March 18, 2021 2020/21 (Register #38)634,280.94 Total commercial check demands:$1,884,083.11 The following Electronic Funds Transfer (EFT) registers presented for approval: March 3 to March 5, 2021 2020/21 (Register #1061-#1062)$821,176.88 March 9 to March 10, 2021 2020/21 (Register #1063-#1065)585,605.08 March 11 to March 15, 2021 2020/21 (Register #1066-#1072)981,834.64 Total commercial EFT demands:$2,388,616.60 2020-2025 Key Strategic Targets and Goals Approval of the noted check and EFT registers for commercial and payroll 20 Packet Pg. 344 7213 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 March 2021. Attachments Attachment 1 Payroll Summary Report for March 2021 Attachment 2 Commercial checks & Payroll Register #37 Attachment 3 Commercial checks & Payroll Register #38 Attachment 4 Commercial EFT Registers #1061-1062 Attachment 5 Commercial EFT Registers #1063-1065 Attachment 6 Commercial EFT Registers #1066-1072 Ward: All 20 Packet Pg. 345 20.a Packet Pg. 346 Attachment: Attachment 1 - Payroll Summary Report for March 2021 (7213 : Approval of Commercial and Payroll Disbursements (All Wards)) 20.a Packet Pg. 347 Attachment: Attachment 1 - Payroll Summary Report for March 2021 (7213 : Approval of Commercial and Payroll Disbursements (All Wards)) 20.b Packet Pg. 348 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 349 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 350 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 351 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 352 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 353 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 354 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 355 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 356 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 357 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 358 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 359 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 360 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 361 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 362 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 363 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 364 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 365 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 366 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.b Packet Pg. 367 Attachment: Attachment 2 - Commercial Checks & Payroll Register #37 (7213 : Approval of Commercial 20.c Packet Pg. 368 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 369 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 370 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 371 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 372 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 373 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 374 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 375 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 376 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 377 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 378 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 379 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 380 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 381 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 382 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 383 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 384 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 385 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 386 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 387 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 388 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.c Packet Pg. 389 Attachment: Attachment 3 - Commercial Checks & Payroll Register #38 (7213 : Approval of Commercial 20.d Packet Pg. 390 Attachment: Attachment 4 - Commercial EFT Registers #1061-1062 (7213 : Approval of Commercial and 20.d Packet Pg. 391 Attachment: Attachment 4 - Commercial EFT Registers #1061-1062 (7213 : Approval of Commercial and 20.e Packet Pg. 392 Attachment: Attachment 5 - Commercial EFT Registers #1063-1065 (7213 : Approval of Commercial and 20.e Packet Pg. 393 Attachment: Attachment 5 - Commercial EFT Registers #1063-1065 (7213 : Approval of Commercial and 20.f Packet Pg. 394 Attachment: Attachment 6 - Commercial EFT Registers #1066-1072 (7213 : Approval of Commercial and 20.f Packet Pg. 395 Attachment: Attachment 6 - Commercial EFT Registers #1066-1072 (7213 : Approval of Commercial and Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Mitch Cochran, IT Director Subject: Purchase Authorization for Workstations (All Wards) Recommendation Adopt Resolution No. 2021-77 of the Mayor and City Council of the City of San Bernardino, California authorizing the City Manager or designee to authorize and issue Purchase Orders to GovConnection, Inc., in an amount not to exceed $150,000.00, for the purchase of workstations, laptops and monitors as outlined in the report. Background The City employs Lenovo workstations and laptops as a standard, with approximately 775 total workstations. Over 250 of the exist ing machines are five years or older, creating issues including compatibility of software, memory capacity and support needs. The City has an annual workstation replacement budget that has been reduced over the past few years from $100,000.00 to $50,000.00 as part of overall budget balancing strategies. The reduction has created a backlog of machines that need to be updated. During the mid-year budget amendment process, the Council designated $150,000.00 for the immediate purchase of workstations, which will address the backlog and get the City back on track for workstation and laptop replacement. Discussion City staff worked with the vendor to establish a special bid price from the manufacturer that is below pricing that is available through nationally co mpetitively bid contracts. The national competitive agreement, NIPA, is being used as a reference to ensure that the City is getting the best price possible. The special bid price is 3% less than the national competitively bid agreement. The City's purchasing process allows for "purchases from a vendor or manufacturer which, through the City's bidding procedure, or other California government or governmental agency's bidding procedure, has established a price at which such a vendor or manufacturer is willing to sell to the City" (Section 3.04.010 B.2). This cooperative purchasing, commonly called "piggybacking", allows Cities to use an existing contract to acquire the same products or services at the same or lower price from another agency contract. Coo perative purchasing is allowed by the State of California, Cal. Pub. Cont. Code §10298. 21 Packet Pg. 396 7178 Page 2 GovConnection, Inc. worked with the City to develop a custom configuration of the Lenovo M70q workstations and receive special pricing from the manufacturer. The custom configuration provides a stronger processor than is typically offered for the price. The City plans to purchase: 144 M70q Tiny workstations 6 P340 Engineering workstations which have faster processors 4 T15 Laptops 21 24” Monitors As a benchmark, the competitively bid NIPA cost would be $154,448.91. The special bid price is $149,998.37 which is $4,450.54 under the NIPA price. The special bid saves the City $4,450.54 which is approximately three percent. Due to a world-wide computer chip shortage, there are now longer lead times to receive equipment. The current expected ship time for these models is estimated at mid -June. As such, the models, and configurations, and quantities may change slightly but will not exceed the requested purchase authorization of $150,000.00. There are no local workstation vendors in the City that would provide competitive pricing. 2020-2025 Key Strategic Targets and Goals The purchase of advanced technology aligns with Key Target No. 1: Financial Stability. The services and agreements help to support the creation and management of an asset management plan. The replacement of obsolete technology allows for a lower cost, more robust infrastructure which supports the asset management plan. Fiscal Impact The funds are budgeted in the existing 2020/2021 fiscal year as part of the mid -year adjustment in account: 679-250-0061*5102 (Computer Equipment - Non Capital). The expected cost is $149,998.37 and staff is requesting authorization for the purchase not to exceed $150,000.00. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California direct the City Manager or his designee to authorize and issue Purchase Orders to GovConnection, Inc. for the purchase of workstations, laptops and monitors in the amount not to exceed $150,000. Attachments Attachment 1 Resolution No. 2021-77 Attachment 2 Sales Quote from GovConnection, Inc. Wards: All Synopsis of Previous Council Actions: N/A 21 Packet Pg. 397 RESOLUTION NO. 2021-77 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE PURCHASE OF WORKSTATIONS, LAPTOPS, AND MONITORS FROM GOVCONNECTION, INC. IN THE AMOUNT OF $149,998.37 WHEREAS, the City of San Bernardino, in an effort to keep workstations and software applications current, purchases workstations, laptops and monitors to for employees use in accessing the City electronic applications (“Equipment”); and WHEREAS, the City Council provides purchasing authorization for purchases of an y amount over $50,000; and WHEREAS, the City desires to purchase new Equipment at this time; and WHEREAS, the City has received a favorable quote from GovConnection, Inc. for Equipment. 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 any necessary documents for the purchase of workstations, laptops, and monitors from GovConnection, Inc. in an amount of not to exceed $150,000.00. 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 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 City Clerk this ___ day of __________ 2021. 21.a Packet Pg. 398 Attachment: Attachment 1 - Resolution No. 2021-77 [Revision 2] (7178 : Purchase Authorization for Workstations (All Wards)) Resolution No. ___ John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 21.a Packet Pg. 399 Attachment: Attachment 1 - Resolution No. 2021-77 [Revision 2] (7178 : Purchase Authorization for Workstations (All Wards)) Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 21.a Packet Pg. 400 Attachment: Attachment 1 - Resolution No. 2021-77 [Revision 2] (7178 : Purchase Authorization for Workstations (All Wards)) Account Executive:Joshua Richiron Phone:(800) 800-0019 ext. 33628 Fax:(603) 683-1210 Email:joshua.richiron@connection.com Date:2/15/2021 Valid Through:3/17/2021 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 727.00 lbs N1 R160202 *Line #Qty Item #Mfg. Part #Description Mfg.Price Ext 1 144 41219300 11DUS63P00 Cust. ThinkCentre M70q i5-10500T CITY OF SAN BERNARDINO Lenovo Custom Systems - Lenovo Custom Systems 872.90$ 125,697.60$ 2 6 41175387 30DES0GT00 Cust. ThinkStation P340 Tiny i7-10700T CITY OF SAN BERNARDINO Lenovo Custom Systems - Lenovo Custom Systems 1,423.10$ 8,538.60$ 3 4 38334760 20S60029US ThinkPad T15 G1 Core i5-10210U 1.6GHz / 8GB / 256GB PCIe / ax / BT / FR / WC / 15.6" FHD / W10P64 Lenovo Commercial Systems - Lenovo Commercial Systems 1,376.63$ 5,506.52$ 3 4 Fee: 15 State Environmental Fee 5.00$ 20.00$ 4 21 Fee: 15 State Environmental Fee 5.00$ 105.00$ 4 21 30955107 VX2457-MHD 23.6" VX2457-MHD Full HD LED-LCD Monitor, Black ViewSonic - ViewSonic 149.99$ 3,149.79$ Subtotal 143,017.51$ Fee 0.00$ Shipping and Handling 0.00$ Tax 11,431.40$ Total 154,448.91$ CITY OF SAN BERNARDINO San Bernardino, CA 92401 INFORMATION SYSTEMS QUOTE PROVIDED TO:SHIP TO: AB#: 20385649 AB#: 14680677 CITY OF SAN BERNARDINO Gerald Castle MITCH COCHRAN 290 N D St Info Systems - City Hall 290 N D ST SALES QUOTE GovConnection, Inc.# 25151240.01 732 Milford Road PLEASE REFER TO THE ABOVE QUOTE # WHEN ORDERINGMerrimack, NH 03054 SAN BERNARDINO, CA 92401 (909) 384-5947 (909) 384-5947 x3017 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 NIPA-TCPN Contract # R160202. 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. Page 1 of 2 2/15/2021 21.b Packet Pg. 401 Attachment: Attachment 2 - Sales quote from GovConnection, Inc. (7178 : Purchase Authorization for Workstations (All Wards)) ORDERING INFORMATION GovConnection, Inc. DBA Connection National IPA Contract #R160202 Contract Expiration: 31 July 2021 Please contact your account manager with any questions. Ordering Address GovConnection, Inc. 732 Milford Road Merrimack, NH 03054 Remittance Address GovConnection, Inc. 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 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 National IPA Contract #R160202. 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 a ppearing 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 21.b Packet Pg. 402 Attachment: Attachment 2 - Sales quote from GovConnection, Inc. (7178 : Purchase Authorization for Workstations (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Eric McBride, Interim Chief of Police Subject: Accept the FY 2020/21 Power Resiliency Allocation (All Wards) Recommendation Adopt Resolution No. 2021-78 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to accept the FY 2020/21 Community Power Resiliency Allocations to Cities Program, and authorize the Director of Finance to amend the FY 2020/21 Adopted Budget appropriating $300,000 in both revenue and expenditures. Background The purpose of the Community Power Resiliency Allocation to Cities Program is to support California incorporated cities with additional preparedness measures in response to power outage events. The Police Department manages the City's emergency management responsibilities. In October 2020, staff submitted a proposal to the California Gov ernor's Office of Emergency Services (Cal OES) requesting grant funds to prepare for and mitigate the impact of emergency power outage events. The program is a competitive process, and the Department's proposal was rated against incorporated cities statewide. On March 12, 2021, the City was notified that it was awarded $300,000 in grant funding to support the Department's proposed projects. Discussion The Community Power Resiliency Allocation to Cities Program was developed in response to the utility-initiated Public Safety Power Shutoffs (PSPS) that began in 2019. The funds were approved in accordance with the City's proposed projects. The City will use the grant funding to purchase generators and equipment to support critical infrastructure, such as the City's Emergency Operations Center, and develop public educational materials related to power outage events. 2020-2025 Key Strategic Targets and Goals The request to authorize the receipt, obligation, and expenditure of the FY 2020/21 Community Power Resiliency Allocation aligns with Key Target No. 1b: Financial Stability - Implement, maintain, and update a fiscal accountability plan. 22 Packet Pg. 403 7208 Page 2 Fiscal Impact FINANCIAL DATA Current Fiscal Year: Next Fiscal Year: Total Cost: Ongoing Cost COST $ 300,000 $ 0.00 $ 300,000 $ 0 GENERAL FUND SHARE $ 0.00 $ 0.00 $ 0.00 $0.00 SOURCE OF FUNDS: Community Power Resiliency Budget Adjustment: Yes For Fiscal Year: 20/21 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-78 authorizing the City Manager to accept the FY 2020/21 Community Power Resiliency Allocations to Cities Program, and authorize the Director of Finance to amend the FY 2020/21 Adopted Budget appropriating $300,000 in both revenue and expenditures. Attachments Attachment 1 Resolution 2021-78 Attachment 2 Award Agreement Ward: All Synopsis of Previous Council Action: None 22 Packet Pg. 404 RESOLUTION NO. 2021-78 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE FY2020-21 COMMUNITY POWER RESILIENCY ALLOCATIONS TO CITIES PROGRAM, AND AUTHORIZE THE DIRECTOR OF FINANCE TO AMEND THE FY2020/21 ADOPTED BUDGET APPROPRIATING $300,000 IN BOTH REVENUE AND EXPENDITURES WHEREAS, the City of San Bernardino has been awarded the FY2020/21 Community Power Resiliency Allocations to Cities Award in the amount of $300,000; and WHEREAS, the City will use the grant funding to support critical infrastructure and develop public educational materials related to power outage events. 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 the grant agreement between the City of San Bernardino and the California Governor’s Office of Emergency Services and accept the FY2020-21 Community Power Resiliency Allocation in the amount of $300,000, attached hereto and incorporated herein as Exhibit A. SECTION 3. The Director of Finance is hereby authorized to amend the FY2020/21 Adopted Budget increasing revenue and expenditures by $300,000. 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. 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 City Clerk this ___ day of __________ 2021. 22.a Packet Pg. 405 Attachment: Attachment 1- Resolution 2021-78 [Revision 1] (7208 : Accept the FY 2020/21 Power Resiliency Allocation (All Wards)) Resolution No. ___ John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 22.a Packet Pg. 406 Attachment: Attachment 1- Resolution 2021-78 [Revision 1] (7208 : Accept the FY 2020/21 Power Resiliency Allocation (All Wards)) Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 22.a Packet Pg. 407 Attachment: Attachment 1- Resolution 2021-78 [Revision 1] (7208 : Accept the FY 2020/21 Power Resiliency Allocation (All Wards)) GAVIN NEWSOM GOVERNOR MARK S. GHILARDUCCI DIRECTOR 3650 SCHRIEVER AVENUE, MATHER, CA 95655 (916) 845-8859 TELEPHONE (916) 845-8511 FAX www.CalOES.ca.gov March 12, 2021 Robert D. Field City Manager City of San Bernardino 209 North D Street San Bernardino, CA 92401-1112 SUBJECT: NOTIFICATION OF SUBRECIPIENT ALLOCATION Fiscal Year (FY) 2020 Community Power Resiliency Allocation to Cities Program Period of Performance: July 1, 2020, to October 31, 2021 Dear Mr. Field: The California Governor’s Office of Emergency Services (Cal OES) approved your FY 2020-21 Community Power Resiliency allocation in the amount of $300,000. Cities are encouraged to support one or more of the Community Power Resiliency areas: schools, food storage reserves, and/or COVID-19 testing sites. Eligible activities under this allocation are limited to:  Equipment- Funds may be used for the procurement of: o Generators and generator connections for essential facilities, with an emphasis on clean energy and green solutions where possible or other alternative backup power sources; o Generator fuel and fuel storage; o Redundant emergency communications (e.g., battery-powered radios); o Portable vehicle-mounted charging stations; o Portable battery-powered and rechargeable radio repeater and transmission equipment. 22.b Packet Pg. 408 Attachment: Attachment 2 - Award Agreement (7208 : Accept the FY 2020/21 Power Resiliency Allocation (All Wards)) City of San Bernardino March 12, 2021 Page 2 of 3  Plans- Funds may be used for the development/update of: o Continuity plans; o Contingency plans for electrical disruptions that include considerations such as protecting individuals with access and functional needs, medical baseline and socially vulnerable populations, transportation, emergency public information, and preservation of essential functions; o Risk assessments for critical infrastructure and lifelines; o Post-event reports that identify lessons learned and corrective actions.  Public education materials or supplies focused on individual family preparedness for electric disruptions.  One-time costs associated with identifying and equipping resource centers for the public to access during electrical disruptions. The following activities are not allowed:  These funds shall not be used to secure, compensate, or backfill professional services contracts.  Response costs associated with electric disruption events including any staffing or new positions, Emergency Operations Center staffing, security, law or fire response, or other overtime charges. All activities funded with this allocation must be completed within the Grant Subaward period of performance. Additionally, the Subrecipient is subject to the following requirements:  As a condition of receiving funding, cities will be required to collaborate with their counties within their jurisdiction to support critical infrastructure and resiliency county-wide with a particular focus on public safety, vulnerable communities, and individuals with access and functional needs.  Must ensure they and their principals are not presently debarred, suspended, proposed for debarment, or declared ineligible.  Must provide a Progress Report on the expenditures of the funds. The Progress Report is due no later than November 30, 2021. This Progress Report shall identify how the funds have been used, including identifying each project or activity undertaken, local entity that undertook the project or activity, the amount of funding provided to the project or activity, and a description of each project or activity. The report shall also 22.b Packet Pg. 409 Attachment: Attachment 2 - Award Agreement (7208 : Accept the FY 2020/21 Power Resiliency Allocation (All Wards)) City of San Bernardino March 12, 2021 Page 3 of 3 identify the specific outcomes achieved by each project or activity, including whether the project or activity was completed and whether it was used during power outages.  Must coordinate with their city or county planning agency to ensure that the project is in compliance with the California Environmental Quality Act (CEQA) Public Resource Code, Section 21000 et seq.  Comply with the California Public Records Act, Government Code Section 6250 et seq.  Must procure goods and services in compliance with applicable state and local laws, ordinances, rules, regulations, and policies. The undersigned represents that he/she is authorized to enter into this agreement for and on behalf of the Applicant. Subrecipient: ________________________________________________________________ Signature of Authorized Agent: _______________________________________________ Printed Name of Authorized Agent: ___________________________________________ Title: ________________________________________ Date: __________________________ Your dated signature and above fillable information is required on this Notification of Subrecipient Allocation. Please sign and return requested information to PSPS@CalOES.ca.gov within 20 calendar days upon receipt and keep a copy for your records. For further assistance, please email Cindy Logan at PSPS@CalOES.ca.gov. Sincerely, MARK S. GHILARDUCCI Director 22.b Packet Pg. 410 Attachment: Attachment 2 - Award Agreement (7208 : Accept the FY 2020/21 Power Resiliency Allocation (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Eric McBride, Interim Chief of Police Subject: First Amendment to Professional Services Agreement with Bio Tox Laboratories, Inc. (All Wards) Recommendation Adopt Resolution No. 2021-79 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the First Amendm ent to the Professional Services Agreement with Bio-Tox Laboratories, Inc. Background On May 2, 2019, a Professional Services Agreement with Bio-Tox Laboratories, Inc. was approved in an amount not to exceed $60,000 per year through June 30, 2022 for toxicology services requested by the police department, attached hereto as Attachment 1. Discussion In 2019, San Bernardino police officers arrested 257 persons for driving under the influence of alcohol and/or drugs. Additionally, 564 arrests were made for persons driving under the influence of alcohol and/or drugs in 2020. DUI arrests have dramatically increased over the past two years since Proposition 64 passed legalizing recreational use of marijuana. Although it is legal to use marijuana it is not legal to drive under the influence of it. Additionally an increase in the use of inhalants has been observed by officers. An increase in the number of officers trained in the detection of drivers under the influence of alcohol and/or drugs is also a factor in the increase of arrests. Tests for drivers under the influence of alcohol are submitted to and conducted by the San Bernardino Sheriff’s Office at no cost to the City. However tests for any other substance must be conducted by an accredited forensic toxicology lab paid for by the City. The District Attorney’s Office requires toxicology testing to confirm a driver’s intoxication before proceeding with prosecution. Bio-Tox Laboratories, Inc. is a reputable, reliable lab that the police department has used for many years. Historically, the cost for toxicology services was less than $60,000 per year; in 2020 as noted by the increase in the number of arrests, the number of tests has also increased along with the cost to the City. Drug tests often 23 Packet Pg. 411 7214 Page 2 require more than one test to determine the type of drug the driver used. Inhalants have also been noted to be on the rise. A single test for inhalant intoxication is in excess of $400. In the first seven months of FY 2020/21 , toxicology services have cost nearly $59,000. In order to continue to arrest drivers and pursue prosecution through the District Attorney’s Office, the police department is requesting an amendment to the Professional Services Agreement with Bio-Tox Laboratories, Inc., in an annual amount not to exceed $110,000 (see Exhibit A). 2020-2025 Key Strategic Targets and Goals The request to amend the contract with Bio-Tox Laboratories aligns with Goal No. 4 Improved Quality of Life. Arresting and prosecuting drivers under the influence of alcohol and/or drugs increases safety for all drivers in the city. Fiscal Impact FINANCIAL DATA Current Fiscal Year: Next Fiscal Year: Total Cost: Ongoing Cost COST $50,000 $110,000 $160,000 $110,000 GENERAL FUND SHARE $50,000 $110,000 $160,000 $110,000 SOURCE OF FUNDS: 001-210-0082*5502 Budget Adjustment: Yes For Fiscal Year: 2020/21 Budget transfers from account number 001 -210-0001*5171 in the amount of $23,500 and account number 001-210-0081*5502 in the amount of $14,000 will provide the funding needed. The remaining $12,500 was approved by the Mayor and City Council on March 3, 2021 as part of the Mid-Year Budget Report. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-79, authorizing the City Manager to execute the First Amendment to the Professional Services Agreement with Bio -Tox Laboratories, Inc. Attachments Attachment 1 Resolution No. 2021-79 Attachment 2 Resolution No. 2021-79; Exhibit A - Amendment to the Agreement with Bio-Tox Laboratories, Inc. Ward: All Synopsis of Previous Council Actions: May 2, 2019 Mayor and City Council adopted Resolution No. 2019-20, approving an agreement with Bio-Tox Laboratories, Inc., for toxicology services. 23 Packet Pg. 412 RESOLUTION NO. 2021- 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 WITH BIO-TOX LABORATORIES, INC. WHEREAS, On May 1, 2019, the Mayor and City Council adopted Resolution 2019-20 authorizing the execution of an agreement between the City of San Bernardino and Bio-Tox Laboratories, Inc. for an annual amount of $60,000, and WHEREAS, the number of arrests for driving under the influence of alcohol and/or drugs has more than doubled from 2019 to 2020 and has therefore necessitated the need for more toxicology testing and increasing the cost to the City. 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 the First Amendment to the Professional Services Agreement with Bio-Tox Laboratories, Inc., increasing the total to $110,000 per fiscal year through June 30, 2022, attached hereto and incorporated herein as Exhibit A. 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 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. 23.a Packet Pg. 413 Attachment: Attachment 1 - Resolution No. 2021-79 First Amendment to the Agreement with Biotox [Revision 1] (7214 : First Amendment to Resolution No. ___ APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 23.a Packet Pg. 414 Attachment: Attachment 1 - Resolution No. 2021-79 First Amendment to the Agreement with Biotox [Revision 1] (7214 : First Amendment to Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 23.a Packet Pg. 415 Attachment: Attachment 1 - Resolution No. 2021-79 First Amendment to the Agreement with Biotox [Revision 1] (7214 : First Amendment to FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO, CALIFORNIA, AND BIO-TOX LABORATORIES, INC. FOR TOXICOLOGY SERVICES THIS First Amendment to the Professional Services Agreement (“Amendment”) is made and entered into this 7TH__ day of April _ , 2021 (“Effective Date”), by and between the City of San Bernardino, California (“CITY”) and Bio Tox Laboratories, Inc. (“CONSULTANT”). WITNESSETH: WHEREAS, CITY and CONSULTANT entered into a Professional Services Agreement for toxicology services on May 1, 2019 (the “Original Agreement”); and WHEREAS, CITY and CONSULTANT seek to amend the Original Agreement by increasing the CONSULTANT’S total annual compensation. NOW, THEREFORE, the parties hereto agree as follows: Section 1. The recitals above are true and correct and are hereby incorporated herein by this reference. Section 2. Section 4 (COMPENSATION AND EXPENSES) of the Original Agreement is hereby amended as follows: a. For services, the CITY, upon presentation of an invoice, shall pay the CONSULTANT up to the amount of $110,000.00 per fiscal year through June 30, 2022. Section 3. Except for the changes specifically set forth herein, all other terms and conditions of the Agreement shall remain in full force and effect. Section 4. This Amendment may be signed in counterparts, each of which shall constitute an original. 23.b Packet Pg. 416 Attachment: Resolution No 2021-79 Exhibit A-First Amendment to Agreement with Bio Tox Laboratories, Inc [Revision 1] (7214 : First 2 FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO, CALIFORNIA, AND BIO-TOX LABORATORIES, INC. FOR TOXICOLOGY SERVICES IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and date set forth below. Dated: ____________, 2021 CONSULTANT By: ___________________________ Its: ___________________________ Dated ____________, 2021 CITY OF SAN BERNARDINO By: ___________________________ Robert D. Field, City Manager Approved as to Form: By: ______________________ Sonia Carvalho, City Attorney 23.b Packet Pg. 417 Attachment: Resolution No 2021-79 Exhibit A-First Amendment to Agreement with Bio Tox Laboratories, Inc [Revision 1] (7214 : First 23.c Packet Pg. 418 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 419 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 420 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 421 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 422 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 423 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 424 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 425 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 426 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 427 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 428 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 429 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 430 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services 23.c Packet Pg. 431 Attachment: Resolution No 2021-79 Attachment 1 Professional Services Agreement (7214 : First Amendment to Professional Services Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Eric McBride, Interim Chief of Police Subject: Trespassing and Other Illegal Activities in County Flood Control Areas (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file this staff report regarding trespassing and other illegal activities in County flood control areas. Background Flood control channels and storm drainage systems owned by the County of San Bernardino traverse all seven wards in the City of San Bernardino. Though typically gated and posted with “no trespassing” signs, these areas often attract encampments, off-road vehicle activity, and other public nuisances. There are a variety of San Bernardino County Ordinances and San Bernardino County Flood Control District Ordinances that address trespassing in flood control areas, off- highway vehicle operations, nuisance violations, and public safety and welfare matters (Attachment 1). These codes may be enforced as criminal matters or addressed through administrative civil penalties. Generally, County regulations are enf orced by the County Code Enforcement Department and may also be handled by the Sheriff’s Department. Discussion Residents of the City of San Bernardino have expressed their complaints and frustrations regarding loud exhaust and other noises emanating from off-road vehicles operating in flood control channels. Moreover, business owners and residents have complained about homeless encampments in flood control areas, which bring quality of life, public health, and other challenges. Police Department District Commanders are aware of these complaints and the problems associated with unlawful activities in the flood control areas, which are affecting the quality of life for City residents and businesses. Enforcement Efforts and Challenges Presented Related to Off-Road Vehicles The Police Department is often called to respond to criminal activity and nuisances associated with flood control areas. Recently, the Police Department received 24 Packet Pg. 432 7225 Page 2 intelligence that a large group of individuals planned an illegal "street take over" in the City using off-road vehicles to race in the flood control areas and on surface streets. Several uniformed officers were deployed to monitor their activities in hopes of stopping the illegal conduct while gaining intelligence for future cr iminal investigations. Officers reported that around 80-100 off-road vehicles were riding on City streets and ultimately drove into the wash and flood control areas. Officers later learned that local individuals rode their off-road vehicles to the meeting location, while others from outside the immediate area parked their trucks and trailers near the wash and off -loaded their off- road vehicles. San Bernardino Police officers detained and cited three individuals during this operation, and one off -road vehicle was impounded. Events such as this are not uncommon. Occasionally, officers are aware of an event in advance, allowing the Police Department to deploy additional officers to address the problem. However, in most cases, residents call the Police Department as the situation is unfolding. Police officers are dispatched to address the problem, but generally only after higher priority calls for service have been handled. The off-road vehicle problem presents several enforcement challenges. When police officers attempt to stop or contact individuals on off -road vehicles, those individuals flee in nearly all cases because they are often able to escape officers given the capabilities of their vehicles. Patrol cars are also unable to access the flood contr ol areas due to access restrictions and vehicle capabilities. When an off -road vehicle emerges onto City streets, officers generally pursue only in exigent circumstances given the ability of the off-road vehicles to out-maneuver patrol cars in addition to the high risk of a pursued individual or uninvolved bystander suffering significant injury or death if a collision occurs. Moreover, there are significant liabilities associated with pursuing these vehicles on and off public roadways. During a recent enforcement operation, San Bernardino Police officers worked with County Code Enforcement and County Flood Control employees to target off-road vehicles in the flood control areas. During this coordinated effort, a police officer with a neighboring law enforcement agency pursued an off -road vehicle in the wash. The officer lost control of his vehicle and collided with a wall, which resulted in injuries to the officer and significant damage to a City vehicle. San Bernardino is not alone in dealing with these issues. Indeed, neighboring law enforcement agencies often face similar issues with off -road vehicles riding on public streets and within the flood control areas that run through their jurisdictions. In almost every instance, their enforcement efforts escalate into a vehicle pursuit with the off -road vehicle, often with negative outcomes. In one case, several off -road vehicles surrounded a pursuing police vehicle in an attempt to prevent the officer from catching the offender. Some riders went as far as striking and vandalizing police vehicles in the process. In addition to responding to incidents in progress, the Police Department’s Western District staff is addressing the problem of off -road vehicles taking over City streets through an intelligence-based investigative approach. Given the ongoing investigation, 24 Packet Pg. 433 7225 Page 3 details cannot be presented in this report. However, the ultimate goal of the investigation is to identify and arrest individuals responsible for organizing and participating in illegal street takeovers and flood control racing conduct. While this investigative approach will not fix the issue overnight, once complete, staff believes it will significantly impact this illegal activity. Officers are working closely with the San Bernardino County District Attorney's Office to ensure criminal prosecution in these cases. While the Police Department is responsible for enforcement of the Municipal Code and Vehicle Code on city roadways, SBPD officers are currently unable to enforce County ordinances and Flood Control District ordinances in the flood control areas. Although the negative impacts of off-road vehicle activity in the flood control areas adversely affect City residents, the County Flood Control District is the legal “victim” of trespassing as the owner of the property. As it currently stands, the District, through County Counsel, has indicated it will not pursue criminal prosecutions for violations of trespassing ordinances. As such, County Code Enforcement officers and police officers cannot take criminal enforcement action for trespassing violations. Instead, County Code Enforcement officers issue administrative citations for violations of County and Flood Control District ordinances, but only when a violator voluntarily surrenders to them. County Code Enforcement staff has indicated they would need to receive direction from County Counsel to deviate from the administrative citation enforcement strategy. Efforts at Collaborative Engagement with County Officials Related to Off -Road Vehicles Last week, the Police Department and other law enforcement and governing agencies from the area attended a virtual meeting to address the issues of off-road vehicles in the flood control channels. The County Flood Control District’s Deputy Director of Operations hosted the meeting; however a representative from County Counsel was not present. The Flood Control Director acknowledged that the issue was becoming too much for County Code Enforcement to handle and requested assistance from local agencies to form a task force to address the issues. During the meeting, Police Department management presented several suggestions to the Deputy Director of Operations to prevent flood control areas from being utilized as platforms for off-road vehicles. The recommendations included installing additional access barriers, boulders, speed bumps, cabling, or bars extending across the inner walls of the flood control channel. The Flood Control District representative advised that the Army Corps of Engineers regulates the physical aspects of flood control facilities, and the Flood Control District must follow their guidelines for any changes or improvements to the concrete channels. Furthermore, these guidelines are strict, and any changes or implementations can only proceed fo llowing a lengthy permitting process. According to a Flood Control District representative, County staff routinely repairs the entry gates which restrict access into the channels; however, individuals consistently destroy them. A Flood Control Superintendent stated that his team would survey flood control locations for consideration of adding additional preventative measures. Finally, 24 Packet Pg. 434 7225 Page 4 as an effort at deterring this activity, attendees at the meeting discussed the possibility of creating a new ordinance authorizing law enforcement officers to tow vehicles operating illegally in the flood control channels. The Police Department is willing and has offered its assistance in County enforcement efforts in the flood control areas. However, without support fr om the prosecuting entity (County Counsel), officers are prevented from taking criminal enforcement action based upon County ordinances and County Flood Control District ordinances. Moreover, City police officers are without authority to use the County adm inistrative civil penalties process for violations on County property. The Flood Control Director agreed to meet with County Counsel to address the concerns raised by Police Department management related to criminal enforcement on Flood Control District property. They will also seek legal advice on moving forward with the possibility of pursuing criminal charges against these violators. As of the date of this staff report, City staff continues to await a response from the Flood Control District or County Counsel on this issue. Homeless Encampments in Flood Control Areas Trespassing by homeless individuals and the establishment of homeless encampments on Flood Control District property present additional challenges. Police Department District Commanders have attempted to work with County Code Enforcement officials to clear out homeless encampments within the flood control areas. However, County Code Enforcement officials notified the Police Department that County Counsel would not permit encampment cleanups in County-owned flood control areas as a result of the Martin v. City of Boise case. This case restricts the ability of the government to remove encampments on the premise that a homeless person cannot be punished for sleeping on public property in the absence of adequate alternatives. As a result of the County Counsel decision, the Martin v. City of Boise case, and the fact that the Police Department cannot take enforcement action on County property without the County’s consent, the Police Department is currently without authority to address encampment issues in the flood control areas. Future Planning Police Department management will continue to work with County officials towards an agreeable resolution to all parties. In the meantime, Police Dep artment staff will continue enforcement efforts on City streets, continue to assist County Code Enforcement whenever possible, and work within the confines of the law to respond to complaints from residents and businesses about illegal activity in flood control areas. 2020-2025 Key Strategic Targets and Goals Continuing to address unlawful activities in flood control areas and working to establish a partnership with County officials to address these matters aligns with Key Target No. 3: Improved Quality of Life by Reducing the burden of homelessness through collaborative efforts and continuing to evaluate public safety service delivery models to enhance the quality of service. 24 Packet Pg. 435 7225 Page 5 Fiscal Impact None. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file this staff report regarding trespassing and other illegal activities in County flood control areas. Attachments Attachment 1 San Bernardino County and Flood Control Ordinances Ward: All Synopsis of Previous Council Actions: N/A 24 Packet Pg. 436 24.a Packet Pg. 437 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 438 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 439 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 440 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 441 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 442 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 443 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 444 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 445 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 446 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 447 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 448 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 449 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 450 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County 24.a Packet Pg. 451 Attachment: Attachment 1 - San Bernardino County and Flood Control Ordinances (7225 : Trespassing and Other Illegal Activities in County Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards) Recommendation Adopt Resolution No. 2021-80 of the Mayor and City Council of the City of San Bernardino, California: 1. Authorizing the Director of Finance to amend the FY 2020/21 Capita l Improvement Plan, and record a supplemental appropriation in the amount of $922,227 in SB-1 Fund No. 125-160-8769 for Citywide Pavement Rehabilitation (SB1) Project; and 2. Approving the award of a Construction Contract with Matich Corporation in the amount of $4,050,000 to provide Citywide Pavement Rehabilitation; and 3. Authorizing project construction, construction contingencies and inspections costs in the total amount of $4,622,227 for Citywide Pavement Rehabilitation (SB1) Project (CIP SS-21-001); and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. Background The City of San Bernardino is responsible for maintaining streets citywide. In March 2020, a Pavement Management Analysis was completed which used scientific methods to rate the condition of all public streets in the City. Street segments (intersection to intersection) were rated based on Remaining Service Life (RSL) in years with a rating of 20 representing the condition of a recently completed street. Segments with RSL between 20 and 10 are maintained using crack sealing and slurry sealing. Segments with an RSL of 10 or less are generally in need of major maintenance usually consisting of mill and overlay. Segments with RSL less than five require complete removal and replacement. The City annually programs street rehabilitation projects that can be supported by various funding sources. In anticipation of this work, Citywide Pavement Rehabilitation 25 Packet Pg. 452 7184 Page 2 (SB1) Project (CIP SS21-001) was included in the FY 2020/21 Capital Improvement Plan (CIP) adopted on June 24, 2020, by the Mayor and City Council. The CIP established SB1 Funding in the amount of $3,700,000 for the project to rehabilitate following locations: 3rd Street between Sierra Way and 'D' Street (Ward 1) 16th Street between Sierra Way and Waterman Avenue (Ward 2) Rancho Ave between Rialto Avenue and Foothill Boulevard (Ward 3) Highland Ave between Palm Avenue and Frontage Road (Ward 4) Northpark Boulevard between Devil Canyon Road & Little Mountain (Ward 5) Industrial Parkway between Palm Avenue and Lexington Way (Ward 6) Arrowhead Avenue between Highland Avenue and 30th Street (Ward 7) Plans and specifications were prepared with the proposed scope of wo rk at the locations to include pavement rehabilitation, installation of missing sidewalk, and installation of pedestrian access ramps for compliance with the American's with Disabilities Act (ADA) Discussion Project 13425 to provide pavement rehabilitat ion, was advertised for public bidding on February 05, 2021 and February 12, 2021, 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 February 25, 2021. The City received four bids as follows: Bidder City Base Bid Matich Corporation San Bernardino $4,050,000.00 All American Asphalt Corona $4,059,836.75 Hardy & Harper, Inc. Lake Forest $4,166,000.00 R.J Noble Company Orange $4,864,297.50 The City has reviewed the bid package and confirmed that Matich Corp oration of San Bernardino, California, is the lowest responsible and responsive bidder, with a total bid amount of $4,050,000.00. If awarded by the Mayor and City Council, construction work is anticipated to begin in April 2021 and be completed by Septembe r 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1d: Financial Stability - Minimize risk and litigation exposure. Approval of this resolution will result in public improvements being constructed that minimize risk and litigation exposure by rehabilitating street pavement and providing ADA access ramps, improving the safety of paths of travel for the community. 25 Packet Pg. 453 7184 Page 3 Fiscal Impact There is no General Fund impact associated with this action. Project budget for the proposed work was previously established through the adopted FY 2020/21 Capital Improvement Plan in SB1 Fund No. 125-160-8769 in the amount of $3,700,000. A supplemental appropriation in the amount of $922,227 is required to fully fund the project as shown below: Citywide Pavement Rehabilitation (SB1) (125-160-8769) $3,700,000 Additional fund Allocation (SB1) (125-160-8769) $ 922,227 Total Available Project Funding $4,622,227 The breakdown for overall cost of the improvement work is as follows: Construction Bid Amount $4,050,000 Construction Contingency $ 405,000 Engineering and Inspections $ 167,227 Total Project Cost $4,622,227 Conclusion It is recommended that the Mayor and City Council of the City of San Ber nardino, California, adopt Resolution No. 2021-80: 1. Authorizing the Director of Finance to amend the FY 2020/21 Capital Improvement Plan, and record a supplemental appropriation in the amount of $922,227 in SB-1 Fund No. 125-160-8769 for Citywide Pavement Rehabilitation (SB1) Project; and 2. Approving the award of a Construction Contract with Matich Corporation in the amount of $4,050,000 to provide Citywide Pavement Rehabilitation; and 3. Authorizing project construction, construction contingencies and inspections costs in the total amount of $4,622,227 for Citywide Pavement Rehabilitation (SB1) Project (CIP SS-21-001); and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. Attachments Attachment 1 Resolution No. 2021-80; Attachment 2 Resolution No. 2021-80; Exhibit A - Contract Agreement Attachment 3 Bid Tabulation Attachment 4 Bid Proposal Attachment 5 Location Map Ward: All 25 Packet Pg. 454 7184 Page 4 Synopsis of Previous Council Actions: June 24, 2020 Mayor and City Council adopted Resolution No. 2020-128 approving Capital Improvement Program FY 2020/21 25 Packet Pg. 455 RESOLUTION NO. 2021-___ RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE FY 2020/21 CAPITAL IMPROVEMENT PLAN, RECORDING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $922,227 IN SB-1 FUND NO. 125-160-8769 FOR CITYWIDE PAVEMENT REHABILITATION (SB1) PROJECT; APPROVING THE AWARD OF A CONSTRUCTION CONTRACT WITH MATICH CORPORATION IN THE AMOUNT OF $4,050,000 TO PROVIDE CITYWIDE PAVEMENT REHABILITATION; AUTHORIZING PROJECT CONSTRUCTION, CONSTRUCTION CONTINGENCIES AND INSPECTIONS COSTS IN THE TOTAL AMOUNT OF $4,622,227 FOR CITYWIDE PAVEMENT REHABILITATION (SB1) PROJECT (CIP SS-21-001); 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 maintaining Citywide streets, sidewalk and American Disability Act (ADA) access ramps throughout the City; and WHEREAS, on June 24, 2020 the Mayor and City Council adopted the FY2020/21 Capital Improvement Plan (CIP), established SB-1 Funding in the amount of $3,700,000 for citywide Pavement Rehabilitation (SB1) (CIP SS 21-001); and WHEREAS, in February 2021, the City administered a competitive bid solicitation for a Citywide Pavement Rehabilitation (SB1) Project (“Project”) to rehabilitate seven street segment locations, resulting in the receipt of four construction cost submittals; and WHEREAS, Matich Corporation, of San Bernardino, California, has been determined to be the lowest responsive and responsible bidder; and WHEREAS, the City now wishes to enter into a Construction Agreement with Matich Corporation, of San Bernardino, California in the amount of $4,050,000 to complete the Project. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The Director of Finance is hereby authorized to amend the FY 2020/21 Capital Improvement Plan, recording a supplemental appropriation in the amount of $922,227 in SB-1 Fund No. 125-160-8769 for Citywide Pavement Rehabilitation (SB1) Project. 25.a Packet Pg. 456 Attachment: Attachment 1 - Resolution No. 2021-80 [Revision 2] (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) Resolution No. 2021-___ SECTION 2. The City Manager is hereby authorized to execute a Construction Agreement, and any supporting documents, for Citywide Pavement Rehabilitation (SB1) projects with Matich Corporation, of San Bernardino, California in the total amount of $4,050,000 on behalf of the City, attached hereto and incorporated herein as Exhibit “A.” SECTION 3. The City Manager, or his designee, is hereby authorized to execute all documents in support of Citywide Pavement Rehabilitation (SB1) Project 13425 on behalf of the City and to expend contingency funds, if necessary, to complete the Project. SECTION 4. The Director of Finance is hereby authorized to issue a purchase order in the amount of $4,050,000 to Matich Corporation, of San Bernardino, in support of the Construction Agreement. SECTION 5. As the decision-making body for the Project, the City Council has reviewed and considered the information contained in the administrative record for the proposed Project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds, as follows: (1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City’s Local CEQA Guidelines; (2) The proposed Project is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines as it involves the removal and replacement of asphalt pavement and concrete with no expansion of the existing use. Additionally, the City Council finds this Resolution is not subject to the 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. (3) The application of the Class 1 categorical exemption is not barred by one of the exceptions set forth in the CEQA Guidelines Section 15300.2 as the removal and replacement of asphalt pavement and concrete does not present any unusual circumstances; would not damage scenic resources, including any resources in the area of a Scenic Highway; would not be utilized on a hazardous waste site; and would not impact historic resources of any kind; and (4) The determination of CEQA exemption reflects the independent judgment of the City Council. 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. SECTION 8. The recitals above are true and correct and are incorporated herein by this reference. 25.a Packet Pg. 457 Attachment: Attachment 1 - Resolution No. 2021-80 [Revision 2] (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) Resolution No. 2021-___ APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 7th day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: _________________________________ Sonia Carvalho, City Attorney 25.a Packet Pg. 458 Attachment: Attachment 1 - Resolution No. 2021-80 [Revision 2] (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) Resolution No. 2021-___ CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-__, adopted at a regular meeting held on the 7th day of April 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 7th day of April 2021. Genoveva Rocha, CMC, City Clerk 25.a Packet Pg. 459 Attachment: Attachment 1 - Resolution No. 2021-80 [Revision 2] (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) A G R E EM 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 ____________________________________________________ (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 CITYWIDE PAVEMENT REHABILITATION (SB1) Project No. 13425 in strict conformity with Plans and Special Provisions Project No. 13425, 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. A-1 25.b Packet Pg. 460 Attachment: Attachment 2 - Resolution No. 2021-80 - Exhibit A - Contract Agreement (7184 : Construction Contract Award – Citywide Pavement 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: MATICH CORPORATION BY: ________________________________ ROBERT D. FIELD City Manager BY: _______________________________ TITLE: ATTEST: MAILING ADDRESS: 1596 Harry Sheppard Boulevard Genoveva Rocha, CMC SAN BERNARDINO, CA 92408 City Clerk PHONE NO.: (909) 382-7400__________ 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. A-2 25.b Packet Pg. 461 Attachment: Attachment 2 - Resolution No. 2021-80 - Exhibit A - Contract Agreement (7184 : Construction Contract Award – Citywide Pavement 25.c Packet Pg. 462 Attachment: Attachment 3 - Bid Tabulation (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 463 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 464 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 465 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 466 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 467 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 468 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 469 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 470 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 471 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 472 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 473 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 474 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 475 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 476 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 477 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 478 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 479 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 480 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 481 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 482 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 483 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 484 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 485 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 486 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 487 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 488 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) 25.d Packet Pg. 489 Attachment: Attachment 4 - Bid Proposal (7184 : Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards)) PROJECT LOCATION MAP CITYWIDE PAVEMENT REHABILITATION (SB1) 3rd Street between Sierra Way and 'D' Street (Ward 1) 25.e Packet Pg. 490 Attachment: Attachment 5 - Location Map (7184 : Construction Contract Award – Citywide Pavement 16th Street between Sierra Way and Waterman Avenue (Ward 2) 25.e Packet Pg. 491 Attachment: Attachment 5 - Location Map (7184 : Construction Contract Award – Citywide Pavement Rancho Ave between Rialto Avenue and Foothill Boulevard (Ward 3) 25.e Packet Pg. 492 Attachment: Attachment 5 - Location Map (7184 : Construction Contract Award – Citywide Pavement Highland Ave between Palm Avenue and Frontage Road (Ward 4) 25.e Packet Pg. 493 Attachment: Attachment 5 - Location Map (7184 : Construction Contract Award – Citywide Pavement Northpark Boulevard between Devil Canyon Road & Little Mountain (Ward 5) 25.e Packet Pg. 494 Attachment: Attachment 5 - Location Map (7184 : Construction Contract Award – Citywide Pavement Industrial Parkway between Palm Avenue and Lexington Way (Ward 6) 25.e Packet Pg. 495 Attachment: Attachment 5 - Location Map (7184 : Construction Contract Award – Citywide Pavement Arrowhead Avenue between Highland Avenue and 30th Street (Ward 7) 25.e Packet Pg. 496 Attachment: Attachment 5 - Location Map (7184 : Construction Contract Award – Citywide Pavement Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Stop Sign Installation at Various Locations (Wards 5, 7) Recommendation Adopt Resolution No. 2021-81 of the Mayor and City Council of the City of San Bernardino, California, amending Resolution No. 655 entitled, in part, “A Resolution… designating certain streets or portions thereof as through highways…” and authorizing the establishment of an all-way stop control at the intersections of 28 th Street and Sierra Way (4-way) and State Street and Sheridan Road (4-way). Background Staff received citizen requests to conside r the installation of stop sign control at three intersections within the following residential areas: Area #1 - 28th Street and Sierra Way (Attachment 2) Area #2 - State Street and Sheridan Road (Attachment 3) The concerns expressed by the requesters are mainly related to vehicle safety crossing the intersections, sight visibility, and Right-of-Way (ROW) entering the intersections. Guidelines published in the California Manual of Uniform Traffic Control Devices (CA MUTCD) on the use of stop signs have been adopted by the City. The guidelines recommend the use of a stop sign facing the minor street of a four -legged intersection and the terminating leg of a T -intersection, if certain conditions exist to better clarify and regulate right-of-way at an intersection. Neither intersection, evaluated by staff, has existing stop signs on any or all of the approaches. Discussion Sierra Way is a two-lane undivided secondary arterial north and south of 28th Street with a two way left turn lane in the middle of the roadway. The posted speed limit on Sierra Way is 40MPH. 28th Street is a two-lane collector street which is stop controlled at Sierra Way. The prima facie speed on 28th Street is 25MPH. There is an existing school crosswalk on the south leg of the intersection that services the children from Wilson Elementary School. State Street is a two-lane local street that terminates north of Sheridan Road into a 26 Packet Pg. 497 7185 Page 2 commercial retail shopping center driveway. The egress of the commercial driveway located at the terminus of State Street is uncontrolled. The prima facie speed on State Street is 25MPH. Sheridan Road is a two-lane local street that terminates west into an apartment complex driveway. The westbound direction on Sheridan Road is controlled by a stop sign. The apartment complex egress driveway is not stopped controlled. The prima facie speed on Sheridan Road is 25MPH. Kendall Elementary School is approximately 500 feet south of the intersection. Staff investigated traffic conditions at the intersections referenced above and found that stop signs should be installed to better clarify the rules of the road at each intersection. Stop signs are also recommended to mitigate sight distance issues such as corner landscaping, corner perimeter or structure walls, and/or horizontal or vertical road curvature which may exist at these locations. The table below identifies the types of sight distance issues found on each intersection. Intersection Cause of Visual Impairment Location of Visual Impairment 28th Street and Sierra Way Landscaping & parked vehicles NW Corner State Street and Sheridan Road One leg of the intersection is stopped controlled NB & SB & EB The proposed stop signs at each of the two intersections are not intended to control speeds or alleviate traffic volume concerns. The stop signs proposed at these intersections will help reduce visual impairments and be consistent with other intersections Citywide that have stop sign controls posted at the minor street or the terminating approach. Staff presented the proposed stop sign locations to the City’s Public Safety and Human Relations Commission (PSHR) at its March 8, 2021 meeting. The PSHR has recommended the establishment of the all-way stops at the intersections of 28th Street and Sierra; and State Street and Sheridan Road. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 3: Improved Quality of Life. The project will utilize City programs to ensure that neighborhoods and business areas are safe. Fiscal Impact The estimated cost to installing the “Stop” signs and add pavement markings is $1,500. Sufficient funding is included and available in the adopted FY 2020/21 Budget in Traffic Signs and Marking Account No. (126-400-0152-5111). Conclusion Staff recommends that the Mayor and City Council adopt Resolution No. 2021 -81, 26 Packet Pg. 498 7185 Page 3 amending Resolution No. 655 entitled, in part, “A Resolution designating certain streets or portions thereof as through highways…” and authorizing the establishment of an all - way stop control at the intersections of 28th Street and Sierra Way (four-way) and State Street and Sheridan Road (four-way). Attachments Attachment 1 Resolution No. 2021-81 Attachment 2 28th and Sierra Way Location Map Attachment 3 State Street and Sheridan Location Map Wards: 5, 7 Synopsis of Previous Council Actions: N/A 26 Packet Pg. 499 RESOLUTION NO.2021-81 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AMENDING RESOLUTION NO. 655 ENTITLED, IN PART, “A RESOLUTION…DESIGNATING CERTAIN STREETS OR PORTIONS THEREOF AS THROUGH HIGHWAY” AUTHORIZING THE ESTABLISHMENT OF ALL- WAY STOPS AT THE INTERSECTIONS OF TWENTY- EIGHTH STREET AND SIERRA WAY AND STATE STREET AND SHERIDAN ROAD WHEREAS, the Traffic Engineering Division of the Public Works Department received a request to evaluate traffic control needs at the intersections of 28th Street at Sierra Way, and State Street and Sheridan Road; and WHEREAS, staff has determined the intersection of 28th Street at Sierra Way and the intersection of State Street and Sheridan Road meet the warrants for All-Way Stop sign installations at their locations; and WHEREAS, roadways within the City must be designated as Through Highways in accordance with the Vehicle Code of the State of California to meet eligibility for installation of traffic control measures; and WHEREAS, the City previously adopted Resolution No. 655 and subsequent amendments designating various roadways as Through Highways and Boulevards throughout the City; and WHEREAS, the City now desires to amend Resolution No. 655 to designate 28th Street and Sierra Way and the intersection of State Street and Sheridan Road as Through Highways; and WHEREAS, the City intends to install traffic control in the form of an All-Way Stop on these roadway segments to enhance traffic safety at these locations. 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. 26.a Packet Pg. 500 Attachment: Attachment 1 - Resolution No. 2021-81 [Revision 1] (7185 : Stop Sign Installation at Various Locations (Wards 5, 7)) Resolution No. ___ SECTION 2. Resolution No. 655, which designates certain streets, or portions thereof, as through highways, Section One is amended by adding paragraph (B) to Subsection (18) TWENTY-EIGHTH STREET to read as follows: “(18) TWENTY-EIGHTH STREET … (B) At its intersection with “Sierra Way” (All-Way Stop).” SECTION 3. Resolution No. 655, which designates certain streets, or portions thereof, as through highways, Section One is amended by adding paragraph (B) to Subsection (15.3) SIERRA WAY to read as follows: “(15.3) Sierra Way … (B) At its intersection with “28th Street” (All-Way Stop).” SECTION 4. Resolution No. 655, which designates certain streets, or portions thereof, as through highways, Section One is amended by adding paragraph (B) to Subsection (16.5) STATE STREET to read as follows: “(16.5) STATE STREET … (B) At its intersection with Sheridan Road (All-Way Stop).” SECTION 5. Resolution No. 655, which designates certain streets, or portions thereof, as through highways, Section One is amended by adding paragraph (D) to Subsection (15.27) SHERIDAN ROAD to read as follows: “(15.27) SHERIDAN ROAD … 26.a Packet Pg. 501 Attachment: Attachment 1 - Resolution No. 2021-81 [Revision 1] (7185 : Stop Sign Installation at Various Locations (Wards 5, 7)) Resolution No. ___ (D) At its intersection with State Street (All-Way Stop).” SECTION 6. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 7. 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 8. 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 __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 26.a Packet Pg. 502 Attachment: Attachment 1 - Resolution No. 2021-81 [Revision 1] (7185 : Stop Sign Installation at Various Locations (Wards 5, 7)) Resolution No. ___ 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. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. ____________________________________ Genoveva Rocha, CMC, Acting City Clerk 26.a Packet Pg. 503 Attachment: Attachment 1 - Resolution No. 2021-81 [Revision 1] (7185 : Stop Sign Installation at Various Locations (Wards 5, 7)) VICINITY MAP Location of Proposed additional 2-Way Stop With existing 2-Way Stop CITY OF SAN BERNARDINO PUBLIC WORKS DEPARTMENT ENGINEERING DIVISION TRAFFIC ENGINEERING SECTION 28th Street & Sepulveda Ave Legend: Proposed 2 Way Stop Existing 1 or 2 Way Stop  N No Scale 26.b Packet Pg. 504 Attachment: Attachment 2 - 28th and Sierra Way Location Map (7185 : Stop Sign Installation at Various Locations (Wards 5, 7)) VICINITY MAP Location of Proposed 4-Way Stop CITY OF SAN BERNARDINO PUBLIC WORKS DEPARTMENT ENGINEERING DIVISION TRAFFIC ENGINEERING SECTION Sheridan Rd & State St Legend: Proposed 1 or 2 Way Stop Existing 1 or 2 Way Stop  N No Scale 26.c Packet Pg. 505 Attachment: Attachment 3 - State Street and Sheridan Location Map (7185 : Stop Sign Installation at Various Locations (Wards 5, 7)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 3) Recommendation Adopt Resolution No. 2021-82 of the Mayor and City Council of the City of San Bernardino, California: 1. Authorizing the Director of Finance to amend the FY 2 020/21 Capital Improvement Plan (CIP), recording a supplemental appropriation in the amount of $209,650 in Measure I Fund No. 129 -160-7306 for CIP Project SS-D - Citywide Pavement Rehabilitation Slurry/Crack Seal (“Project”); and 2. Approving the award of a Construction Contract with All American Asphalt of Corona, California in the amount of $549,395 to provide Citywide slurry and crack seal repairs; and 3. Authorizing project construction, construction contingencies and inspections costs in the total amount of $631,860 for the Project; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. Background The rehabilitation of pavement throughout the City is a maintenance function programmed annually in the City’s Capital Improvement Plan (CIP). In anticipation of this work, an annual slurry seal project is included in Capital Improvement Plan (CIP) Project SS-D - Citywide Pavement Rehabilitation Slurry/Crack Seal (“Project”). The FY 2020/21 CIP adopted on June 24, 2020 by the Mayor and City Council established Measure I Funding in the amount of $500,000 for the current year project. A portion of this funding was required for use in completing the prior year project, leaving $422,210 available to support the FY 2020/21 pavement rehabilitation project. The FY 2020/21 Project will address pavement rehabilitation of streets around the auto center located in the City. This area was chosen as it is a highly traveled commercial area and, due to the traffic levels, the existing condition of the pavement requires 27 Packet Pg. 506 7187 Page 2 continual maintenance. Resurfacing the streets in this area will preserve the existing roadway through and extend the life of the rehabilitated segments by seven years. Completion of the project will provide a smooth and safe path of travel for motorists through this commercial area, and will reduce the need for frequent maintenance. Plans and specifications were prepared with the proposed scope of work at the locations to include slurry / crack seal entail the street surface rehabilitation around auto center within the City. Discussion Project 13440, to provide slurry seal, was advertised for public bidding on February 20, 2021 and February 27, 2021, in the San Bernardino County Sun New spaper, 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 website, and the San Bernardino Area Chamber of Commerce. Sealed bids were received and opened on March 18, 2021. The City received four (4) bids as follows: Bidder City Base Bid All American Asphalt Corona $549,395 American Asphalt South, Inc. Fontana $579,755 Pavement Coatings Co. Jurupa Valley $583,950 VSS International Sacramento $625,120 The City has reviewed the bid package and confirmed that All American Asphalt of Corona, California, is the lowest responsible and responsive bidder, with a total bid amount of $549,395. If awarded by the Mayor and City Council, construction work is anticipated to begin in June 2021 and be completed by September 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1d: Financial Stability - Minimize risk and litigation exposure. Approval of this contract will result in public improvements being constructed that minimize risk and litigation exposure by rehabilitating street surfaces in a commercial area known for high traffic volumes. Fiscal Impact There is no General Fund impact associated with this action. Project budgets in the amount of $422,210 remain available for the proposed FY2020/21 work. Additional funding required in the amount of $209,650 is available through Measure I fund balance in Fund No. 129 to support the total project cost of $631,860. The total project cost includes all construction, contingency and inspection costs as shown below: Construction Bid Amount $ 549,395 Construction Contingency $ 55,000 27 Packet Pg. 507 7187 Page 3 Engineering and Inspections $ 27,465 Total Project Cost $ 631,860 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Authorize the Director of Finance to amend the FY 2020/21 Capital Improvement Plan (CIP), recording a supplemental appropriation in the amount of $209,650 in Measure I Fund No. 129-160-7306 for CIP Project SS-D - Citywide Pavement Rehabilitation Slurry/Crack Seal (“Project”); and 2. Approve the award of a Construction Contract with All American Asphalt of Corona, California in the amount of $ 549,395 to provide Citywide slurry and crack seal repairs; and 3. Authorize project construction, construction contingencies and inspections costs in the total amount of $631,860 for the Project; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. Attachments Attachment 1 Resolution 2021-82; Attachment 2 Resolution 2021-82; Exhibit A - Contract Agreement Attachment 3 Bid Tabulation Attachment 4 Bid Proposal Attachment 5 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 2020/21 27 Packet Pg. 508 RESOLUTION NO. 2021-82 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE FY 2020/21 CAPITAL IMPROVEMENT PLAN (CIP), RECORDING A SUPPLEMENTAL APPROPRIATION IN THE AMOUNT OF $209,650 IN MEASURE I FUND NO. 129-160-7306 FOR CIP PROJECT SS-D - CITYWIDE PAVEMENT REHABILITATION SLURRY/CRACK SEAL (“PROJECT”); AND APPROVING THE AWARD OF A CONSTRUCTION CONTRACT WITH ALL AMERICAN ASPHALT OF CORONA, CALIFORNIA IN THE AMOUNT OF $ 549,395 TO PROVIDE CITYWIDE SLURRY AND CRACK SEAL REPAIRS; AND AUTHORIZING PROJECT CONSTRUCTION, CONSTRUCTION CONTINGENCIES AND INSPECTIONS COSTS IN THE TOTAL AMOUNT OF $631,860 FOR THE PROJECT; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT WHEREAS, the City is responsible for the rehabilitation and maintenance of pavement throughout the City and funding for pavement maintenance is programmed annually in the City’s Capital Improvement Plan (CIP) as CIP Project SS-D - Citywide Pavement Rehabilitation Slurry/Crack Seal (“Project”); and WHEREAS, on June 24, 2020 the Mayor and City Council adopted the FY2020/21 Capital Improvement Plan (CIP), establishing Measure I to support CIP project SS-D - Citywide Pavement Rehabilitation (Slurry / Crack Seal); and WHEREAS, The FY2020/21 Project will address pavement rehabilitation of streets around the auto center located in the City as this is a highly traveled commercial area and, due to the traffic levels, the existing condition of the pavement requires continual maintenance; and WHEREAS, in March, 2021 staff administered a competitive bid process for Citywide Pavement Rehabilitation (Slurry / Crack Seal) Project (“Project”) resulting in four construction cost submittals; and WHEREAS, All American Asphalt of Corona, California, has been determined to be the lowest responsive and responsible bidder; and WHEREAS, the City now wishes to enter into a Construction Agreement with All American Asphalt of Corona, California in the amount of $549,395 to complete the Project. 27.a Packet Pg. 509 Attachment: Attachment 1 - Resolution No. 2021-82 [Revision 1] (7187 : Construction Contract Award – Citywide Pavement Rehabilitation Resolution No. ______ 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 Construction Agreement, and any supporting documents, for Citywide Pavement Rehabilitation (Slurry / Crack Seal) (“Project”) with All American Asphalt of Corona, California in the total amount of $549,395 on behalf of the City, attached hereto and incorporated herein as Exhibit “A.” SECTION 3. The Director of Finance is hereby authorized to amend the FY 2020/21 Capital Improvement Plan, recording a supplemental appropriation in the amount of $209,650 in Measure I Fund No. 129-160-7306 for the Project . SECTION 4. The City Manager, or his designee, is hereby authorized to execute all documents in support of Citywide Pavement Rehabilitation (Slurry / Crack Seal) Project 13440 on behalf of the City and to expend contingency funds, if necessary, to complete the project. SECTION 5. The Director of Finance is hereby authorized to issue a purchase order in the amount of $549,395 to All American Asphalt, of Corona, in support of the Construction Agreement. SECTION 6. As the decision-making body for the project, the City Council has reviewed and considered the information contained in the administrative record for the proposed project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds, as follows: (1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City’s Local CEQA Guidelines; (2) The proposed project is exempt from the requirements of the California Environmental Quality Act pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines because it involves the Cape Seal of streets as a Maintenance Measure. Additionally, 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. (3) The application of the Class 1 categorical exemption is not barred by one of the exceptions set forth in the CEQA Guidelines Section 15300.2 because Cape Seal Operation does not present any unusual circumstances; would not damage scenic resources, including an y resources in the area of a Scenic Highway; would not be utilized on a hazardous waste site; and would not impact historic resources of any kind; and 27.a Packet Pg. 510 Attachment: Attachment 1 - Resolution No. 2021-82 [Revision 1] (7187 : Construction Contract Award – Citywide Pavement Rehabilitation Resolution No. ______ (4) The determination of CEQA exemption reflects the independent judgment of the City Council. SECTION 7. 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 8. 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 __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 27.a Packet Pg. 511 Attachment: Attachment 1 - Resolution No. 2021-82 [Revision 1] (7187 : Construction Contract Award – Citywide Pavement Rehabilitation Resolution No. ______ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. ______________________________ Genoveva Rocha, CMC, City Clerk 27.a Packet Pg. 512 Attachment: Attachment 1 - Resolution No. 2021-82 [Revision 1] (7187 : Construction Contract Award – Citywide Pavement Rehabilitation A G R E EM 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 ____________________________________________________ (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 CITYWIDE PAVEMENT REHABILITATION (Slurry / Crack Seal) Project No. 13440 in strict conformity with Plans and Special Provisions Project No. 13440, 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. A-1 27.b Packet Pg. 513 Attachment: Attachment 2 - Resolution No. 2021-82 - Exhibit A - Contract Agreement (7187 : Construction Contract Award – Citywide Pavement CITYWIDE PAVEMENT REHABILITATION (Slurry / Crack Seal) Project No. 13440 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: ALL AMERICAN ASPHALT BY: ________________________________ ROBERT D. FIELD City Manager BY: _______________________________ TITLE: ATTEST: MAILING ADDRESS: 400 East Sixth Street Genoveva Rocha, CMC Corona, CA 92879 City Clerk PHONE NO.: (951) 736-7600__________ 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. A-2 27.b Packet Pg. 514 Attachment: Attachment 2 - Resolution No. 2021-82 - Exhibit A - Contract Agreement (7187 : Construction Contract Award – Citywide Pavement BID TABULATION CITYWIDE PAVEMENT REHABILITATION (SLURRY/CRACK SEAL) SPECIAL PROVISIONS NO. 13440 TOTAL BID SCHEDULE ITEM NO.BID ITEM DESCRIPTION ESTIMATED QTY UNIT UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL 1 Mobilization 1 LS 62,000.00$ 62,000.00$ 15,000.00$ 15,000.00$ 25,300.00$ 25,300.00$ 35,681.05$ 35,681.05$ 2 Traffic Control 1 LS 32,000.00$ 32,000.00$ 15,000.00$ 15,000.00$ 75,000.00$ 75,000.00$ 161,500.00$ 161,500.00$ 3 g g Excavation and Unclassified Fill, Grading and Removals as Needed 1 LS 9,000.00$ 9,000.00$ 2,500.00$ 2,500.00$ 21,400.00$ 21,400.00$ 58,750.00$ 58,750.00$ 4 Storm Water Pollution and Prevention Plan and NPDES Compliance 1 LS 9,400.00$ 9,400.00$ 1,500.00$ 1,500.00$ 700.00$ 700.00$ 7,100.00$ 7,100.00$ 5 Crack Sealing 10,000 LF 0.67$ 6,700.00$ 1.00$ 10,000.00$ 0.65$ 6,500.00$ 0.75$ 7,500.00$ 6 Asphalt Skin Patching Pavement Repair and Pothole Repair 100,000 SF 0.65$ 65,000.00$ 1.00$ 100,000.00$ 0.92$ 92,000.00$ 1.26$ 126,000.00$ 7 Cape Seal and Slurry Seal Type III 600,000 SF 0.46$ 276,000.00$ 0.55$ 330,000.00$ 0.49$ 294,000.00$ 0.30$ 180,000.00$ 8 Construct Asphalt Concrete Rolled Curb 3,000 LF 20.00$ 60,000.00$ 25.00$ 75,000.00$ 13.50$ 40,500.00$ 1.73$ 5,190.00$ 9 Traffic Signing and Striping, and Two Way Yellow RPM Type D Pavement Markers Per Caltrans Plan Standards and Specifications 1 LS 26,700.00$ 26,700.00$ 28,000.00$ 28,000.00$ 26,000.00$ 26,000.00$ 40,800.20$ 40,800.20$ 10 Installation of MUTCD Regulatory Sign Type R26(S) (CA) No Stopping Anytime 15 EA 173.00$ 2,595.00$ 185.00$ 2,775.00$ 170.00$ 2,550.00$ 173.25$ 2,598.75$ BID OPENING: MARCH 18, 2021 AT 2:00 PM BID SCHEDULE CITYWIDE PAVEMENT REHABILITATION (SLURRY/CRACK SEAL) PROJECT NO. 13440 549,395.00$ 579,775.00$ 583,950.00$ 625,120.00$ APPARENT LOWEST BIDDER ALL AMERICAN ASPHALT 2ND LOW AMERICAN ASPHALT SOUTH 3RD LOW PAVEMENT COATING CO. 4TH LOW VSS INTERNATIONAL TOTAL BID SCHEDULE TOTALS 27.c Packet Pg. 515 Attachment: Attachment 3 - Bid Tabulation (7187 : Construction Contract Award – Citywide Pavement 27.d Packet Pg. 516 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 517 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 518 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 519 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 520 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 521 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 522 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 523 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 524 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 525 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 526 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 527 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 528 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 529 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 530 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 531 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 532 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 533 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 534 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 535 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 27.d Packet Pg. 536 Attachment: Attachment 4 - Bid Proposal (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 1000 ft© 2020 Google © 2020 Google © 2020 Google City of San Bernardino Department of Public Works Citywide Pavement Rehabilitation (Slurry/Crack Seal) Project No. 13440 27.e Packet Pg. 537 Attachment: Attachment 5 - Location Map (7187 : Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: First Amendment to Contractor Services Agreement with Paragon Partners, Ltd. (Ward 4) Recommendation Adopt Resolution No. 2021-83 of the Mayor and City Council of the City of San Bernardino, California approving the First Amendment to Consultant Services Agreement ("First Amendment") with Paragon Partners, Ltd., extending the contract term through June 30, 2022, for right-of-way acquisition services related to H Street widening project between 40th Street and Kendall Drive ("Project"). Background This project consists of the widening of H Street between 40th and Kendall Drive to provide two through lanes in each direction and a two-way, left-turn lane (Attachment 3 - Location Map). The project includes right -of-way (ROW) acquisition, undergrounding of overhead utility lines, pavement widening, pavement rehabilitation, construction of curb & gutter, sidewalk, street lights, drainage improvements, installation of signage and striping, and modification of the traffic signal at 40 th Street and Kendall Drive. On October 18, 2017, the Mayor and City Council adopted Resolution 2017 -205 approving an agreement with CivilSource Inc., to provide environmental and civil engineering design services for Capital Improvement Plan (CIP) SS04 -152 - Widening of H Street from 40th Street and Kendall Drive (“Project”). The environmental component of the Project was completed in November 2018 and the Plans Specifications & Estimate (PS&E) are 90% complete. As part of the PS&E, CivilSource Inc., identified necessary ROW acquisitions needed to support the widening project. The ROW acquisition services for this project were beyond the capabilities of in -house staff, therefore, on August 21, 2019, the Mayor and City Council adopted Resolution No. 2019-274 approving a Contractor Services Agreement (“Agreement”) with Paragon Partners, Ltd., to provide these services for the Project. Discussion The Agreement with Paragon Partners, Ltd., executed on August 21, 2019, originally established a contract term through December 31, 2020. ROW acquisition for this Project requires that individual negotiations be conducted with multiple property owners. 28 Packet Pg. 538 7196 Page 2 Because a number of negotiations are taking longer than expected, staff is recommending the proposed First Amendment to Consultant Services Agreement (“First Amendment”) with Paragon Partners to extend the term of the Agreement through June 30, 2022. Paragon Partners has continued to actively perform the ROW services, despite the contract term expiration. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1d: Financial Stability- Minimize risk and litigation exposure. Approval of this resolution will result in public improvements being constructed that minimize risk and litigation exposure by widening ‘H’ Street and repairing sidewalk and providing missing ADA access along ‘H’ Street between 40 th street and Kendall Drive. Fiscal Impact There is no fiscal impact associated with this action. Project budget for the proposed work was previously established through the adopted FY 2020/21 Capital Improvement Plan in the Regional Circulation Development Impact Fee Fund, Account No. (264 -160- 7872-5504) in the amount of $2,073,897 . The First Amendment simply extends the Agreement term and does not increase cost to the Project. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-XX approving the First Amendment to Consultant Services Agreement ("First Amendment") with Paragon Partners, Ltd., extending t he contract term through June 30, 2022, for right-of-way acquisition services related to H Street widening project between 40th Street and Kendall Drive ("Project"). Attachments Attachment 1 Resolution 2021- 83; Attachment 2 Resolution 2021-83; Exhibit A - First Amendment Attachment 3 Location Map Attachment 4 Original Agreement Ward: 4 Synopsis of Previous Council Actions: October 18, 2017 Resolution No. 2017-205 adopted approving Agreement with CivilSource, Inc. to provide environmental and civil engineering design services for the widening of H Street from 40th Street to Kendall Drive (SS04-152). December 19, 2018 Resolution No. 2018-75 approved adopting a Mitigated Negative Declaration (MND), adopting a Mitigation Monitoring and Reporting Program (MMRP), and authorizing the Director of Community Development or designee to file a Notice of Determination (NOD) with the Clerk of the Board of Supervisors of San Bernardino County for the widening of H 28 Packet Pg. 539 7196 Page 3 Street between 40th Street and Kendall Drive (SS04-152). August 21, 2019 Resolution no. 2019-274 adopted approving Agreement with Paragon Partners, Ltd. to perform all Right-of-Way (R/W) June 24, 2020 Mayor and City Council adopted Resolution No. 2020-128 approving Capital Improvement Program FY 2020/21 28 Packet Pg. 540 RESOLUTION NO. 2021-83 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPROVING THE FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT ("FIRST AMENDMENT") WITH PARAGON PARTNERS, LTD., EXTENDING THE CONTRACT TERM THROUGH JUNE 30, 2022 FOR RIGHT-OF-WAY ACQUISITION SERVICES RELATED TO THE H STREET WIDENING BETWEEN 40TH STREET AND KENDALL DRIVE PROJECT ("PROJECT") WHEREAS, The City of San Bernardino is responsible for maintaining the citywide streets, sidewalk and American Disability Act (ADA) access ramps throughout the City; and WHEREAS, on June 24, 2020 the Mayor and City Council adopted the FY2020/21 Capital Improvement Plan (CIP), establishing project budgets in the Regional Circulation Development Impact Fee in the amount of $2,073,897 for H Street Widening between 40th Street and Kendall Drive (“Project”); and WHEREAS, right-of-way (ROW) acquisition services are required to obtain property to support the widening of H Street; and WHEREAS, on August 21, 2019, City Council approved a Consultant Services Agreement with Paragon Partners, Ltd. to perform all ROW acquisition services and the term of the Agreement expired December 31, 2020; and WHEREAS, the City now wishes to extend the term of the Agreement through June 30, 2022 to complete the remaining property negotiations required to support construction of the Project. 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 the First Amendment to Consultant Services Agreement with Paragon Partners, LTD., and any supporting documents, extending the term of the agreement through June 30, 2022 for services in support of the H Street Widening between 40th Street and Kendall Drive Project, attached hereto and incorporated herein as Exhibit “A”. 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 28.a Packet Pg. 541 Attachment: Attachment 1 - Resolution No. 2021-83 [Revision 2] (7196 : First Amendment to Contractor Services Agreement with Paragon Resolution No. ______ 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 City Clerk this ___ day of __________, 2021. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 28.a Packet Pg. 542 Attachment: Attachment 1 - Resolution No. 2021-83 [Revision 2] (7196 : First Amendment to Contractor Services Agreement with Paragon Resolution No. ______ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. ______________________________ Genoveva Rocha, CMC, City Clerk 28.a Packet Pg. 543 Attachment: Attachment 1 - Resolution No. 2021-83 [Revision 2] (7196 : First Amendment to Contractor Services Agreement with Paragon EXHIBIT A FIRST AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT City of San Bernardino and Paragon Partners, Ltd. CITY: CITY OF SAN BERNARDINO 290 North “D” Street, 3rd Floor San Bernardino, California 92401 CONSULTANT: Paragon Partners, Ltd. 5660 Katella Avenue, Suite 100, Cypress, CA 90630 SERVICES: Right Of Way Acquisition Services for the H Street Widening between 40th Street and Kendall Drive AMOUNT: $86,070 EXPIRATION DATE: Until completion of the Scope of Services or June 30, 2022, whichever is the earliest (as amended) MANAGING DEPARTMENT: Public Works 28.b Packet Pg. 544 Attachment: Attachment 2 - Resolution No. 2021-83; Exhibit A - First Amendment [Revision 1] (7196 : First Amendment to Contractor Services FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND PARAGON PARTNERS, LTD. First Amendment to the Consultant Services, dated as of April 07, 2021 (the “Amendment”), between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California (“City”), and Paragon Partners, Ltd.. (“Contractor,” and together with City, the “Parties,” and each, a “Party”). WHEREAS, the Parties have entered into an Agreement, dated as of August 21, 2019, to perform all right-of-way tasks that are necessary to obtain requested right-of-way for the H Street Widening Between 40th Street and Kendall Drive (SS04-152) (the “Existing Agreement”); and WHEREAS, the Parties hereto desire to amend the Existing Agreement to extend the expiration date on the terms and subject to the conditions set forth herein; and WHEREAS, pursuant to Section 12.12 of the Existing Agreement, the amendment contemplated by the Parties must be contained in a written agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendment to the Existing Agreement. The Existing Agreement is hereby amended as follows: ARTICLE IV PERFORMANCE PERIOD (Verbatim) “A” Is amended to replace the term This contract shall go into effect on the date approved by the Mayor and City Council, contingent upon approval by LOCAL AGENCY, and CONSULTANT shall commence work after notification to proceed by LOCAL AGENCY’S Contract Administrator. The contract shall end on December 31, 2020, unless extended by contract amendment. With the term This contract shall go into effect on the date approved by the Mayor and City Council, contingent upon approval by LOCAL AGENCY, and CONSULTANT shall commence work after notification to proceed by LOCAL AGENCY’S Contract Administrator. The contract shall end on June 30, 2022, unless extended by contract amendment. 28.b Packet Pg. 545 Attachment: Attachment 2 - Resolution No. 2021-83; Exhibit A - First Amendment [Revision 1] (7196 : First Amendment to Contractor Services 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the “Effective Date”). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to “this Agreement,” “the Agreement,” “hereunder,” “hereof,” “herein,” or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. IN WITNESS WHEREOF, this Agreement is executed by City and Contractor acting by and through their authorized officers. CITY OF SAN BERNARDINO: Paragon Partners, Ltd. Date: _____ / _____ / 2021 Date: _____ / _____ / 2021 _________________________________ By: ________________________________ Robert D. Field, City Manager Its: ________________________________ APPROVED AS TO FORM: Sonia Carvalho , City Attorney By: ______________________________ 28.b Packet Pg. 546 Attachment: Attachment 2 - Resolution No. 2021-83; Exhibit A - First Amendment [Revision 1] (7196 : First Amendment to Contractor Services City of San Bernardino Page 1 of 1 ATTACHMENT 3 28.c Packet Pg. 547 Attachment: Attachment 3 - Location Map (7196 : First Amendment to Contractor Services Agreement with Paragon Partners, Ltd. (Ward 4)) 28.d Packet Pg. 548 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 549 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 550 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 551 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 552 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 553 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 554 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 555 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 556 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 557 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 558 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 559 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 560 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 561 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 562 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 563 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 564 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 565 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 566 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 567 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 568 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 569 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 570 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 571 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon 28.d Packet Pg. 572 Attachment: Attachment 4 - Original Agreement-Full Executed (7196 : First Amendment to Contractor Services Agreement with Paragon Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Public Works Equipment Purchases (All Wards) Recommendation Adopt Resolution No. 2021-84 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the purchase of the following Public Works equipment approved for funding through the FY 2020/21 Mid- Year Budget Report: 1. One new Caterpillar Model 262D3 Skid Steer Loader with grinder attachment from Quinn Company in the amount of $74,000; and 2. One new Envirosight Rovver X Pipeline Inspection System from Haaker Equipment Company in the amount of $97,977.13; and 3. One new FORD Super Duty F-550 with aerial Versa-lift from National Auto Fleet Group in the amount of $129,544.94. Background The Public Works Department is responsible for operating and maintaining Cit y assets including streets, parks, storm water drainage systems, traffic signals, street lights, and landscaped medians and parkways. The availability of reliable heavy equipment and new technology are critical for the Department to accomplish essential ma intenance duties within the City's assets. In order to continue supporting the provision of maintenance work, the Department submitted a number of priority requests to replace outdated, or purchase new, equipment through the FY2020/21 Mid-year budget process. At the regular meeting of the Mayor and City Council on March 3, 2021 , Mid-year budgets were approved establishing funding for the Department to purchase one skid steer with a grinder attachment, a closed circuit television (CCTV) system for storm d rain infrastructure inspections, and one aerial or “bucket” truck to assist with traffic signal and street lighting maintenance efforts. These tools will ensure that the Operations team is able to perform daily work tasks safely and efficiently. 29 Packet Pg. 573 7212 Page 2 Discussion While budgets for the equipment purchases referenced above have been approved, City Council authorization for the purchases is required as the price for each item exceeds the City Manager’s spending authority. Staff has obtained quotes for each of the equipment items. Additional information about each piece of equipment is provided below. Skid Steer Loader with Grinder Attachment The purchase of a new Skid Steer Loader with a grinder attachment is an operational priority for the Department in order to address above surface roots creating uneven pavement and required to load asphalt during road maintenance. This heavy equipment can also be used to remove small debris and operate in tight spaces. Staff research determined that the Caterpillar Skid Steer Loader Model 262D3 with a grinder attachment best meets the City's operations and maintenance needs. In addition, staff obtained Source-well (formally National Joint Powers Alliance) pricing. As such, Source- well is authorized to establish competitively awarded cooperative purchasing contracts and follows the competitive contracting law process to solicit, evaluate, and award, cooperative purchasing contracts. In addition, Quinn Caterpillar is the exclusive dealer for all Caterpillar equipment in San Bernardino County. Pipeline Inspection Closed Circuit Television (CCTV) Equipment The purchase of a new Envirosight Rovver X Pipeline Inspection System is an operational priority for the Department. The equipment consists of closed circuit television (CCTV) system that can be inserted into storm drain infrastructure and provides staff the ability to video record the inside drainage facilities. As such, this enables staff to identify damaged pipelines or catch basins and address issues before they become expensive emergencies. This technology will also ensure staff is able to properly hydro-jet clogged culverts without risking the loss of valuable nozzles and hoses. Staff research determined that the Envirosight Rovver X best meets the City's operations and maintenance needs as it provides the highest quality picture resolution available, includes all accessories to inspect various size pipes, and allows staff to download the video without subscribing to a monthly service. Through negotiation, 2020 pricing was obtained for the equipment that will provide the City an additional 10% discount. This a sole source purchase as Haaker Equipment Company is the exclusive dealer in Southern California for all Envirosight Rovver X systems. Ford F-550 Aerial Truck The purchase of a new Ford Super Duty F-550 with the aerial Versa-lift (“bucket truck”) is an operational priority for the Department's traffic signals and lighting division. This bucket truck purchase is a critical tool for staff in maintaining and repairing in exces s of 300 traffic signalized intersections. The equipment will also be used for supporting various lighting replacements and inspections of elevated assets not otherwise accessible. Due to the lack of new Ford F-550 inventory within City limits and Utility Crane being the exclusive dealer for Versa -Lift, staff obtained Source-well pricing for this heavy equipment purchase and installation through National Auto Fleet Group. As such, Source-well is authorized to establish competitively awarded cooperative purchasing contracts and follows the competitive contracting law process to solicit, 29 Packet Pg. 574 7212 Page 3 evaluate, and award, cooperative purchasing contracts. 2020-2025 Key Strategic Targets and Goals Purchase of the Skid Steer Loader Model 262D3, Envirosight Rovver X Pipeline Inspection System, and a FORD Super Duty F-550 with the aerial Versa-lift aligns with Key Target No. 1: Financial Stability as it eliminates the need to consider expensive rental costs and supports a positive framework for spending decisions. This purchase also supports the objective of minimizing risk and litigation exposure by providing the latest safety features for City staff (internal risk) and maximizing work efficiencies in field. Fiscal Impact Funding for each equipment purchase was approved through the FY2020/21 Mid-year Budget Report as shown below: Conclusion Adopt Resolution No. 2021-84 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the purchase of the following Public Works equipment approved for funding through the FY 2020/21 Mid - Year Budget Report: 1. One new Caterpillar Model 262D3 Skid Steer Loader with grinder attachment from Quinn Company in the amount of $74,000; and 2. One new Envirosight Rovver X Pipeline Inspection System from Haaker Equipment Company in the amount of $97,977.13; and 3. One new FORD Super Duty F-550 with aerial Versa-lift from National Auto Fleet Group in the amount of $129,544.94. Attachments Attachment 1 Resolution No. 2021-84 Attachment 2 Caterpillar Model 262D3 Skid Steer Loader Quote Attachment 3 Envirosight Rovver X Pipeline Inspection System Quote 29 Packet Pg. 575 7212 Page 4 Attachment 4 Ford Super Duty F-550 with aerial Versa-lift Quote Ward: All Synopsis of Previous Council Action: March 3, 2021 Mayor and City Council authorized the Director of Finance to amend the FY 2020/21Budget as outlined in the FY2020/21 Mid-Year Budget Report. 29 Packet Pg. 576 RESOLUTION NO. 2021- RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE PURCHASE OF THE FOLLOWING PUBLIC WORKS EQUIPMENT APPROVED FOR FUNDING THROUGH THE FY2020/21 MID-YEAR BUDGET REPORT: ONE NEW CATERPILLAR MODEL 262D3 SKID STEER LOADER WITH GRINDER ATTACHMENT FROM QUINN COMPANY IN THE AMOUNT OF $74,000; AND ONE NEW ENVIROSIGHT ROVVER X PIPELINE INSPECTION SYSTEM FROM HAAKER EQUIPMENT COMPANY IN THE AMOUNT OF $97,977.13; AND ONE NEW FORD SUPER DUTY F-550 WITH AERIAL VERSA-LIFT FROM NATIONAL AUTO FLEET GROUP IN THE AMOUNT OF $129,544.94 WHEREAS, the Public Works Department oversees the operations and maintenance of City infrastructure; WHEREAS, heavy equipment purchases are necessary to support the provision of maintenance services to the City’s extensive signalized intersections, streets, storm drainage systems, and other City assets; and WHEREAS, on March 3, 2021, the Mayor and the City Council approved the FY 2020/21 Mid-year Budget Report which included the approval of $322,000 for the purchase of specific equipment to support the Public Work Department in carrying out maintenance tasks; and WHEREAS, equipment needs have been evaluated and competitive quotes have been obtained for the equipment purchases; and WHEREAS, the City now desires to move forward with the purchase of one Caterpillar model 262d3 Skid Steer Loader with grinder attachment, one Envirosight Rovver X Pipeline Inspection System, and one Ford Super Duty F-550 with aerial Versa-lift. 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 in corporated herein by this reference. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the purchase of one Caterpillar model 262d3 Skid Steer Loader with grinder attachment in the amount of $74,000, one Envirosight Rovver X Pipeline Inspection System in the amount of 29.a Packet Pg. 577 Attachment: Attachment No. 1 - Resolution 2021-84 [Revision 1] (7212 : Public Works Equipment Purchases (All Wards)) Resolution No. ___ $97,977.13, and one Ford Super Duty F-550 with aerial Versa-lift in the amount of $129,544.94, as approved in the FY 2020/21 Mid-Year Budget Report. 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 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 City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 29.a Packet Pg. 578 Attachment: Attachment No. 1 - Resolution 2021-84 [Revision 1] (7212 : Public Works Equipment Purchases (All Wards)) Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 29.a Packet Pg. 579 Attachment: Attachment No. 1 - Resolution 2021-84 [Revision 1] (7212 : Public Works Equipment Purchases (All Wards)) Quote 146734-01 Page 1 of 4 146734-01 Sourcewell member number: 33000 March 29, 2021 CITY OF SAN BERNARDINO FLEET DIVISION Attention: Account Payable 182 S SIERRA WAY SAN BERNARDINO, California 92408-1454 Attention: ANDY RAMIREZ Dear Sir, We would like to thank you for your interest in our company and our products, and are pleased to quote the following for your consideration. One (1) New Caterpillar Inc. Model: 262D3 Skid Steer Loader including standard and optional equipment as listed below. STOCK NUMBER: SERIAL NUMBER: YEAR: SMU: We wish to thank you for the opportunity of quoting on your equipment needs. This quotation is valid for 30 days, after which time we reserve the right to re-quote. If there are any questions, please do not hesitate to contact me. Sincerely, Jose Farias Machine Sales Representative Phone 760.399.6404 Email jose.farias@quinncompany.com 29.b Packet Pg. 580 Attachment: Attachment No. 2 - Caterpillar Model 262D3 Skid Steer Loader Quote (7212 : Public Works Equipment Purchases (All Wards)) Quote 146734-01 Page 2 of 4 One (1) New Caterpillar Inc. Model: 262D3 Skid Steer Loader including standard and optional equipment as listed below. Standard Equipment POWERTRAIN Cat C3.3B diesel engine Filters, canister type, fuel -Gross horsepower per SAE J1349 and water separator 74.3 hp (55.4 kW) @ 2400 RPM Radiator / hydraulic oil -Electric fuel priming pump cooler (side-by-side) -Glow plugs starting aid Spring applied, hydraulically released, -Liquid cooled, direct injection parking brakes Air cleaner, dual element, radial seal Hydrostatic transmission S-O-S sampling valve, hydraulic oil Four wheel chain drive Filter, cartridge type, hydraulic HYDRAULICS ISO or H pattern controls: Electro/hydraulic hydrostatic Electro/hydraulic implement control transmission control ELECTRICAL 12 volt electrical system -Two rear tail lights 80 ampere alternator -Dome light Ignition key start/stop/aux switch Backup alarm Lights: Electrical outlet, beacon -Gauge backlighting OPERATOR ENVIRONMENT Operator warning system indicators: leaves seat or armrest raised: -Air filter restriction -Hydraulic system disables -Alternator output -Hydrostatic transmission disables -Armrest raised/operator out of seat -Parking brake engages -Engine coolant temperature ROPS cab, open, tilt up -Engine oil pressure Anti-theft security system w/6-button -Glow plug activation keypad -Hydraulic filter restriction FOPS, level I -Hydraulic oil temperature Top and rear windows -Park brake engages Floormat -Engine emission system Interior rear view mirror Gauges: fuel level and hour meter USB charging port Storage compartment with netting Horn Ergonomic contoured armrest Hand (dial) throttle, electronic Control interlock system, when operator FRAMES Lift linkage, vertical path Belly pan cleanout Chassis, one piece welded Support, lift arm Machine tie down points (6) Rear bumper, welded OTHER STANDARD EQUIPMENT Engine enclosure - lockable Heavy duty flat faced quick disconnects Extended life antifreeze (-37C, -34F) with integrated pressure release Work tool coupler Split D-ring to route work tool hoses Hydraulic oil level sight gauge along side of left lift arm Radiator coolant level sight gauge Variable speed hydraulic cooling fan Radiator expansion bottle Per SAE J818-2007 and EN 474-3:2006 and Cat ToughGuard TM hose ISO 14397-1:2007 29.b Packet Pg. 581 Attachment: Attachment No. 2 - Caterpillar Model 262D3 Skid Steer Loader Quote (7212 : Public Works Equipment Purchases (All Wards)) Quote 146734-01 Page 3 of 4 MACHINE SPECIFICATIONS 262D3 SKID STEER LOADER 512-4262 $72,160.00 CANOPY PACKAGE, ULTRA INCLUDES: 512-4319 HYDRAULICS, PERFORMANCE, (H3) 512-4115 CONTROL, ISO, PROP, WT 512-4178 POWERTRAIN, TWO SPEED 495-1671 LIGHTS, LED 512-4193 ROPS, OPEN (C1) 416-9265 DISPLAY, ADVANCED, LCD, BACK UP CAMERA 486-6957 FAN, COOLING, DEMAND 345-4910 QUICK COUPLER, MANUAL 536-9739 SEAT,AIR SUSPENSION,VINYL,HEAT 568-4704 FILM,TWO SPEED,W/HIGH FLOW XPS 588-9090 LANE 3 ORDER 0P-9003 RIDE CONTROL 556-5899 BATTERY,HD,DISCONNECT, 850 CCA 568-5602 SEAT BELT, 3'' 542-6995 PRODUCT LINK, CELLULAR PL243 566-7115 TIRES, 12/16.5 CAT 10PR 185-8666 INSTRUCTIONS, ANSI, USA 512-3741 SERIALIZED TECHNICAL MEDIA KIT 421-8926 SHIPPING/STORAGE PROTECTION 0P-2266 FILM, SELF LEVEL, ANSI 435-9238 FILM, RIDE CONTROL, ANSI 422-3445 COUNTERWEIGHT,MACHINE,EXTERNAL 345-5148 PACK, DOMESTIC TRUCK 0P-0210 REAR LIGHTS 356-6082 CERTIFICATION ARR, P65 563-1163 KIT, WATER TANK, 42 US GAL, D 482-5132 $3,100.00 18” COLD PLANER, PC305 529-5780 $21,196.00 BUCKET-GP, 74'', BOCE 279-5373 $1,744.00 *Price includes all installation, freight and warranty 29.b Packet Pg. 582 Attachment: Attachment No. 2 - Caterpillar Model 262D3 Skid Steer Loader Quote (7212 : Public Works Equipment Purchases (All Wards)) Quote 146734-01 Page 4 of 4 WARRANTY & COVERAGE Standard Warranty: 24 Months / 2,000 Hours Full Machine SELL PRICE $98,200.00 Sourcewell Discount (21%) ($20,622.00) Add’l Dealer Discount (one time only) ($9,538.46) NET BALANCE DUE $68,039.54 CA SALES TAX (8%) $5,953.46 TIRE FEE $7.00 AFTER TAX BALANCE $74,000.00 Price Includes: Owner’s manual and Training by certified operators Included on this price will be Training of 2 hours which will included Walkaround Inspection and Demo of the machine. Due to Covid groups cannot be bigger than 6 people. We will allow 2 separate training if requ ired. Sourcewell member number: 33000 2021 Sourcewell Contract #032515-Cat Program WARRANTY Standard Warranty: 24 Months / 2000 Hour Premier Warranty Accepted by___________________________________ on ____________________ ______________________________ Signature 29.b Packet Pg. 583 Attachment: Attachment No. 2 - Caterpillar Model 262D3 Skid Steer Loader Quote (7212 : Public Works Equipment Purchases (All Wards)) SINCE 1972 2070 North White Avenue, La Verne, California 91750 (909) 598-2706 ~ FAX (909) 598-1427 ~ haaker.com March 29, 2021 Andy Ramirez, MPA San Bernardino, City of 182 S. Sierra Way San Bernardino, CA 92408 In accordance with your request, we are pleased to submit the following proposal for your consideration and approval. Proposal for One (1) Envirosight Rovver X Pipeline Inspection System. Description Price: Rovver X Standard Package: $70,500.00 RCX90 Zoom Camera; High-resolution CCD color zoom camera with 10x optical and 12x digital zoom, auto shutter, auto/manual focus, built-in LED lighting, +/-135 degree tilt, endless 360 degree rotation, pressure sensor, and twin laser diodes for measuring feature. ROVVER X 130 Crawler; Steerable with twin high-performance motors and 6-wheel drive, anodized aluminum/stainless steel chassis with pressure indicator, inclination and tilt sensors, location transmitter, rear viewing video camera. Wheels; 6 small rubber wheels, 4 medium rubber wheels, 4 large rubber wheels, 2 small climbing wheels, and all necessary hardware. 29.c Packet Pg. 584 Attachment: Attachment No. 3 - Envirosight Rovver X Pipeline Inspection System Quote (7212 : Public Works Equipment Purchases (All SINCE 1972 2070 North White Avenue, La Verne, California 91750 (909) 598-2706 ~ FAX (909) 598-1427 ~ haaker.com VC500 Control Pendant; To operate crawler, reel and camera, daylight viewable touch screen, MPEG-4 video recording, and desk mount dock. 40 Hours of internal memory with the ability to download MPEG Videos and MPEG Photos via USB. RAX300 automatic motorized cable reel; With meter counter, splash-proof rating, 1000' orange transmission cable; power supply for 115/230V; wireless remote control (for equipment set up); 25' extension cable (connecting VC500 to RAX300) with emergency power switch. Standard Package Accessories; Crawler lowering tool and tool kit. Pressurization Kit; Regulator, air valve, and two (2) CO2 Canisters, for replacing air into camera, crawler, and accessories. ROVVER X Accessories: Remote Lift Accessory; To raise/lower the RCX90 camera on the RX130 crawler. $12,750.00 Rear-View Camera/Auxiliary Light Accessory; Camera for rear view with auxiliary LED lights for RX130 crawler. $3,600.00 Aluminum Upper Manhole Roller (cable protection, sits across manhole). $200.00 Aluminum Flexible Lower Manhole Roller (cable protection at pipe beginning). $960.00 XXL QCD RUBBER Wheel for Large Lines 15” – 36” (Remote lift Needed) , Set of 4 $1,900.00 Training; 40 Hours of onsite Equipment training that will focus on Maintenance and operation. Sub Total: $89,910.00 Sales Tax 8.75%: $7,867.13 Freight: $200.00 Equipment Training: Included Total Price: $97,977.13 29.c Packet Pg. 585 Attachment: Attachment No. 3 - Envirosight Rovver X Pipeline Inspection System Quote (7212 : Public Works Equipment Purchases (All SINCE 1972 2070 North White Avenue, La Verne, California 91750 (909) 598-2706 ~ FAX (909) 598-1427 ~ haaker.com We appreciate the opportunity to present this proposal and look forward to being of further and continued service. Sincerely, Santiago Luna Santiago Luna 29.c Packet Pg. 586 Attachment: Attachment No. 3 - Envirosight Rovver X Pipeline Inspection System Quote (7212 : Public Works Equipment Purchases (All 29.d Packet Pg. 587 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 588 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 589 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 590 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 591 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 592 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 593 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 594 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 595 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 596 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 597 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 598 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) 29.d Packet Pg. 599 Attachment: Attachment No. 4 - FORD Super Duty F-550 with aerial Versa-lift Quote (7212 : Public Works Equipment Purchases (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5) Recommendation Adopt Resolution No. 2021-85 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the Nuisance Abatement Services Agreement between the City o f San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 in an amount not to exceed $1,470,000 to provide abatement services required at private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000 (“Project”); and 2. Amending the FY 2020/21 operating budget to appropriate $2,000,000 from the City’s undesignated General Fund reserve to support the project to include the cost of the abatement services in the amount of $1,470,000, project contingencies in the amount of $330,000, and anticipated project water use in the amount of $200,000; and 3. Authorizing the City Manager to expend contingencies as necessary to complete the Project. Background On January 15, 2021, the City issued a Notice of Revocation of Temporary Use Permit and Notice to Abate (“Notice”) advising the N. Palm Ave property owner that the TUP issued for the development project was being revoked for failing to comply with the Conditions of Approval required as part of the approval of the TUP. The Notice further advised the property owner that the use of the property is in violation of the San Bernardino Municipal Code (SBMC) sections: 8.30.020(a) [existence of any garbage, rubbish, refuse upon the premises], 8.30.020(H)(3) [an item causing an unsightly appearance visible from the public right of way or creates any other potential health hazard or nuisance], 8.30.020(R) [any attractive nuisance - concrete stockpile attracts ATV and dirt bike riders], and 8.30.020(S) [any condition contrary to public health and safety - concrete causes dust particles and rock particles impacting the community]. 30 Packet Pg. 600 7232 Page 2 The Notice directed the property owner to begin abatement on or before January 25, 2021, with complete removal of concrete to occur on or before February 14, 2021. Because the property owner did not take action to perform the required removal of the concrete stockpile, on March 4, 2021, the City sought a court ordered Abatement Warrant to allow the City to proceed with the abatement of the concrete. The Abatement Warrant was approved and signed by the court and staff immediately notified the property owner by certified mail and on March 5, 2021, posted the Project site as required by the order. On March 17, 2021, staff provided an update to the Mayor and City Council in closed session regarding this project as a matter of anticipated litigation. Discussion The City is proceeding with the abatement of the stockpiled concrete in keeping with the Abatement Warrant. This abatement project is being treated as an emergency. As such, proposals for emergency abatement services were requested from two vendors as allowable under the SBMC section 3.04.075 - Emergency purchases. While two vendors were contacted to provide proposals for the emergency abatement services, the City received a single proposal in response to the request from Cemex Corporation of Ontario, California (Cemex) with the second vendor (North American Recycling and Crushing) declining to submit a proposal. Staff has reviewed the proposal submitted and has determined that Cemex Corporation is able to perform the removal and disposal in an expedited fashion. In an effort to initiate the abatement work, a Nuisance Abatement Services Agreement between the City and Cemex was prepared and has been fully executed effective April 2, 2021. This agreement now needs to be approved by the City Council and funding in the amount of $2,000,000 established to support this large abatement effort. As of the writing of this report abatement work is scheduled to begin by Monday, April 12, 2021 , and is expected to be completed within 50 working days. 2020-2025 Key Strategic Targets and Goals Authorization of this agreement aligns with Key Target No. 3: Improved Quality of Life. Fiscal Impact The financial impact to the City is estimated in the amount of $2,000,000 to support the abatement action. A supplemental appropriation in the above amount will be required from undesignated General Fund Reserve Fund to support the Project. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-85: 1. Approving the Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 in an amount not to exceed $1,470,000 to provide abatement services required 30 Packet Pg. 601 7232 Page 3 at private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000 (“Project”); and 2. Amending the FY 2020/21 operating budget to appropriate $2,000,000 from the City’s undesignated General Fund reserve to support the project to include the cost of the abatement services in the amount of $1,470,000, p roject contingencies in the amount of $330,000, and anticipated project water use in the amount of $200,000; and 3. Authorizing the City Manager to expend contingencies as necessary to complete the Project. Attachments Attachment 1 Resolution 2021-85; Attachment 2 Resolution 2021-85; Exhibit “A” - Nuisance Abatement Services Agreement Ward: 5 Synopsis of Previous Council Actions: October 21, 2020 The Mayor and City Council adopted Resolution No. 2020-265 establishing guidance relating to the issuance of Temporary Use Permits allowing on- site and off-site contractors’ construction yards for approved development projects. 30 Packet Pg. 602 RESOLUTION NO. 2021-85 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE NUISANCE ABATEMENT SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CEMEX CORPORATION OF ONTARIO, CALIFORNIA, DATED MARCH 31, 2021, IN AN AMOUNT NOT TO EXCEED $1,470,000 TO PROVIDE ABATEMENT SERVICES REQUIRED AT PRIVATE PROPERTY LOCATED ON N. PALM AVENUE, SAN BERNARDINO, CALIFORNIA 92407; APNS: 0261-011-08- 0000, 0261-011-13-0000, 0261-011-14-0000 (“PROJECT”); AND AMENDING THE FY 2020/21 OPERATING BUDGET TO APPROPRIATE $2,000,000 FROM THE CITY’S UNDESIGNATED GENERAL FUND RESERVE TO SUPPORT THE PROJECT TO INCLUDE THE COST OF THE ABATEMENT SERVICES IN THE AMOUNT OF $1,470,000, PROJECT CONTINGENCIES IN THE AMOUNT OF $330,000, AND ANTICIPATED PROJECT WATER USE IN THE AMOUNT OF $200,000; AND AUTHORIZING THE CITY MANAGER TO EXPEND CONTINGENCIES AS NECESSARY TO COMPLETE THE PROJECT WHEREAS, the City has determined that a public nuisance exists creating potential health and safety issues related to the stockpiling of concrete material on private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261- 011-13-0000, 0261-011-14-0000; and WHEREAS, on January 15, 2021, the City issued a Notice of Revocation of Temporary Use Permit and Notice to Abate (“Notice”) advising the N. Palm Ave property owner that the TUP issued for the development project was being revoked for failing to comply with the Conditions of Approval required as part of the approval of the TUP; and WHEREAS, the property owner has not taken action to perform the required removal of the concrete stockpile, and on March 4, 2021, the City sought and was awarded a court ordered Abatement Warrant to allow the City to proceed with the abatement of the concrete; and WHEREAS, the City is proceeding with the abatement of this nuisance as an emergency circumstance due to the current conditions of the stockpile and dust from the material posing a potential health hazard to the neighboring community; and WHEREAS, the City has entered in to a Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation of Ontario, California, dat ed March 31, 2021, in an amount not to exceed $1,470,000 to provide the removal and disposal of the concrete material; and 30.a Packet Pg. 603 Attachment: Attachment 1 - Resolution 2021-85 (7232 : Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5)) Resolution No. ___ WHEREAS, additional costs may be incurred for project contingencies and water use, resulting in an estimated total abatement project cost of $2,000,000. 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 Mayor and City Council hereby ratify the approval of the Nuisance Abatement Services between the City of San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 in an amount not to exceed $1,470,000 to provide abatement services, incorporated herein and attached hereto as Exhibit “A”. SECTION 3. The Director of Finance is hereby authorized to record a supplemental appropriation from undesignated General Fund reserve in the amount of $2,000,000, including abatement services in the amount of $1,470,000 and project contingencies in the amount of $530,000 to support the completion of the abatement project. SECTION 4. The City Manager, or his designee, is hereby authorized to expend contingencies as necessary to complete the Project. SECTION 5. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. NEED LEGAL’S INPUT ON THE CEQA LANGUAGE FOR THIS. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk 30.a Packet Pg. 604 Attachment: Attachment 1 - Resolution 2021-85 (7232 : Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5)) Resolution No. ___ Approved as to form: Sonia Carvalho, City Attorney 30.a Packet Pg. 605 Attachment: Attachment 1 - Resolution 2021-85 (7232 : Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5)) Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 30.a Packet Pg. 606 Attachment: Attachment 1 - Resolution 2021-85 (7232 : Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5)) CITY OF SAN BERNARDINO NUISANCE ABATEMENT SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into this 2 day of April, ("Effective Date") 2021 by and between the City of San Bernardino, a municipal corporation organized under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, California 92401, County of San Bernardino, State of California ("City") and Cemex, a California Corporation with its principal place of business at 4120 E, Jurupa Street Suite 200, Ontario, California 91761 (''Contractor"). City and Contractor are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS. 2.1 Contractor. Contractor desires to perform and assume responsibility for the provision of certain nuisance abatement services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing construction and aggregate material removal and disposal/processing services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 2.2 Project. City desires to engage Contractor to render such services for the removal and disposal of all concrete stockpile and associated debris from Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000.("P roject") as set forth in this Agreement. 3.TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the removal, transportation and disposal of all concrete stockpile and associated debris as nuisance abatement services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from the Effective Date to completion of the Services, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established - 1 - 30.b Packet Pg. 607 Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 608Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 609Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 610Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 611Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 612Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 613Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 614Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 615Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 616Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 617Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 618Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 619Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 620Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 621Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 622Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 623Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.b Packet Pg. 624 Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 625Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 626Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 627Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 628Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 629Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 630Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 631Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 632Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 633Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 634Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 635Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 636Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement 30.bPacket Pg. 637Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7232 : Award of Nuisance Abatement Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Miguel Guerrero, P.E., General Manager Subject: Resolution Declaring Glen Helen Road Property as Surplus Land Recommendation Adopt Resolution No. 2021-86 of the Mayor and City Council of the City of San Bernardino, California, declaring City-owned property located on Glen Helen Road, west of the I-215 and I-15 interchange, and parallel to the South ern Pacific Railroad, as surplus land, and direct the General Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for the disposition of surplus land. Background The City owns a parcel of land (APN 0349-191-08) totaling approximately 2.82 gross acres located on Glen Helen Road, approximately 3,500 feet west of the I -215 and I-15 interchange. This parcel was acquired and dedicated for Water Department use in 1973 as a potential expansion site. However, du e to the property’s location, irregular shape, and two (2) atypical easements: a 30-foot wide pipeline easement and an ingress- egress easement for an adjacent property, it has been ruled out as a possible well site. The City has continued to maintain the p arcel which has existed as vacant property since that time. The parcel is located within the County of San Bernardino’s Glen Helen Specific Plan Destination Recreation (GH/SP-DR) Zone. This zone is intended for residential land use, low intensity service commercial and recreation entertainment uses which are best suited to the physical and environmental constraints of the area. The added DR designation also allows for planned development residential uses that incorporate mixed use or recreational amenities such as recreation vehicle parks, private campgrounds, restaurants, as well as a full range of recreation-oriented activities. Staff has concluded that this property has no significant use for the utility any longer. As such, Staff recommends that the parcel be declared surplus and disposed of, as it is no longer needed for City purposes, and would best serve the City and community if it were developed. Additionally, any sale proceeds may provide additional funding to enhance City Water Department services. Future development would also eliminate blight in this corridor and support economic growth and expansion of development in the area. 31 Packet Pg. 638 7241 Page 2 Discussion The Surplus Land Act requires all local agencies to prioritize negotiations with affordable housing sponsors and public entities when disposing of surplus land. New legislation, which took effect on January 1, 2020, requires that before a local agency takes any action to dispose of land no longer necessary for the “agency’s use,” the land must be declared either “surplus land” or “exempt surplus land,” as supported by written findings. Upon the City’s determination that the Glen Helen Road property is surplus land, the procedures set forth in Government Code Section 54220, et seq., must be followed. Those procedures include the transmittal by the City of Notices of Availability with respect to the surplus land to enumerated public entities and housing sponsors, for a period of 60 days, including to the following: 1. For the purpose of developing low- and moderate-income housing, a written notice of availability of the surplus land shall be sent to any “local public entity” as defined by Health and Safety Code Section 50079, within whose jurisdiction the surplus land is located, and to CalHFA certified “Ho using Sponsors” that have notified the California Department of Housing and Community Development (“HCD”) of their interest in surplus land. 2. For open space purposes, a written notice of availability of the surplus land shall be sent to the City of San Bernardino Parks and Recreation Department, the San Bernardino County Regional Parks Department, the State Resources Agency, or any agency that may succeed to its powers, and any other qualifying public entities with jurisdiction over the parcels. 3. For the purpose of use by a school district for school facilities construction or open-space purposes, a written notice of availability of the surplus land shall be sent to San Bernardino City Unified School District. If the City receives notice indicating interest in the surplus parcels from any of the above entities, then the City would enter “good faith negotiations,” concerning the price and terms of the disposition of that City-owned surplus land with that entity. The City would be required to negotiate for a period of 90 days. If the price and terms cannot be agreed upon after 90 days (or if no entity gives notice of interest), the City may sell the surplus land without further regard to the surplus land procedures, except that any residential development on the surplus land that contains 10 or more units must restrict 15% of the units for affordable housing. Nothing in the surplus land procedures requires the City to sell the surplus land at less than fair market value. An agreement for the sale of the parcel would be brought to the City Water Board and the Mayor and City Council for consideration at a future date. 2020-2025 Key Strategic Targets and Goals Declaration of this property as Surplus Land aligns with the adopted 2020 -2025 Key Target 4: Economic Growth and Development by supporting the possible sale and 31 Packet Pg. 639 7241 Page 3 reuse of the land for future development that may result in additional revenue sources for the City and provide services or amenities to support the growing community. Fiscal Impact There is no fiscal impact to the City associated with this action. Environmental Analysis The action is exempt from environmental review pursuant to the California Environmental Quality Act (Pub. Resources Code, § 2100 et seq.) and State CEQA Guidelines (Cal. Code Regs. Tit. 14, §15312) which applies to the declaration and sale of surplus government property. The proposed Resolution does not authorize or approve the actual disposition or sale of the land. Therefore, the proposed Resolution is not a “project” under the California Environmental Quality Act (“CEQA”) because that declaration does not in itself commit the City to any future action, nor does the action approve a particular project, or grant any specific approval that would have a direct or reasonably foreseeable indirect environmental impact pursuant to CEQA. (See 14 C.C.R. §§ 15060(c); 15378(b).) As such, the mere provision of this executed Resolution to HCD is not the approval of a “project” under the California Environmental Quality Act, and no further action under CEQA is required. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-XXX declaring City-owned property located on Glen Helen Road, west of the I-215 and I-15 interchange, as surplus land, and direct the General Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for the disposition of surplus land; and finding the declaration of surplus land as exempt from environm ental review pursuant to the California Environmental Quality Act. Attachments Attachment 1 Resolution 2021-86 Attachment 2 Location Map Attachment 3 Water Board Staff Report including Appraisal Report Ward: N/A Synopsis of Previous Council Actions: None. 31 Packet Pg. 640 RESOLUTION NO. 2021-86 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING CITY-OWNED PROPERTY LOCATED ON GLEN HELEN ROAD, WEST OF THE I-215 AND I-15 INTERCHANGE AND PARALLEL TO THE SOUTHERN PACIFIC RAILROAD, AS SURPLUS LAND, AND DIRECT THE GENERAL MANAGER TO COMPLY WITH THE REQUIREMENTS OF THE SURPLUS LAND ACT, CALIFORNIA GOVERNMENT CODE SECTION 54220, ET SEQ., FOR THE DISPOSITION OF SURPLUS LAND WHEREAS, the City of San Bernardino (“City”) hereby finds, determines and declares as follows: WHEREAS, the City owns and controls a parcel of land (APN 0349-191-08) totaling approximately 2.82 gross acres located on Glen Helen Road, west of the I-215 and I-15 interchange, and parallel to the Southern Pacific Railroad (“Property”); and WHEREAS, the Property is located within the County of San Bernardino’s Glen Helen Specific Plan Destination Recreation (GH/SP-DR) Zone, and is currently undeveloped; and WHEREAS, Assembly Bill 1486 went into effect on January 1, 2020 (“AB 1486”), and expanded the Surplus Land Act requirements for local agencies prior to the disposition and disposal of any “surplus land,” as defined; and WHEREAS, the Property meets the definition of “surplus land,” is no longer necessary for the City’s use, and does not meet any of the applicable exemptions from the Surplus Land Act as emended by AB 1486; and WHEREAS, sale proceeds and the property tax that may be generated by disposition of the Property may provide funding to enhance City Water Department services, and the future development of the Property would eliminate blight in this corridor and support economic growth and expansion of development in the area. 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 hereby finds and declares that the Property is no longer necessary for the City’s use and is surplus land, as defined in California Government Code section 54221, based on the true and correct written findings found in this Resolution and incorporated herein by reference. 31.a Packet Pg. 641 Attachment: Attachment 1 - Resolution No. 2021-86 Surplus Land Declaration Glen Helen (7241 : Resolution Declaring Glen Helen Road Resolution No. ___ SECTION 3. The City hereby authorizes the General Manager or designee to send written notices of availability of the Property for sale, to negotiate the terms of a proposed sale of the Property, to any beneficially interested person or entity and to otherwise follow the procedures of the Surplus Land Act, California Government Code section 54220., et seq., as amended on January 1, 2020, as applicable to a proposed sale of the Property. SECTION 4. Any proposed agreement for the sale of the Property shall be subject to the approval of the City. SECTION 5. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 31.a Packet Pg. 642 Attachment: Attachment 1 - Resolution No. 2021-86 Surplus Land Declaration Glen Helen (7241 : Resolution Declaring Glen Helen Road Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 31.a Packet Pg. 643 Attachment: Attachment 1 - Resolution No. 2021-86 Surplus Land Declaration Glen Helen (7241 : Resolution Declaring Glen Helen Road APN 0349‐191‐08Kenwood WellfieldAttachment 2:Location Map31.bPacket Pg. 644Attachment: Attachment 2 - Location Map (7241 : Resolution Declaring Glen Helen Road Property as TO: FROM: SUBJECT: DATE: CITY OF SAN BE RNARDINO MUNICIPAL WATER DEPARTMENT WATER BOARD STAFF REPORT Water Board Commissioners Miguel J. Guerrero, P.E., General Manager DECLARATION OF SURPLUS PROPERTY Received 02-10-21 SBM\'{'D�� General :\lanager FOR WATER DEPARTMENT PROPERTY LOCATED ON GLEN (APN 0349-191-08) HELEN ROAD February 10, 2021 BACKGROUND: The San Bernardino Municipal Water Department (Department) owns a 2.82-acre parcel located on Glen Helen Road, northwest ofI-215 North and parallel to the Southern Pacific Railroad, in the Devore area of unincorporated San Bernardino County. This parcel was acquired in 1973 as a possible expansion site. However due to its irregular triangular shape, it has been ruled out as a possible well site. In addition, there are two (2) atypical easements: a 30-foot wide pipeline easement and an ingress-egress easement, that are considered detrimental to the development of the property. The Department has continued to maintain the vacant parcel since acquisition. The parcel is located within the County of San Bernardino's Glen Helen Specific Plan Destination Recreation (GH/SP-DR) Zone. This zone is intended for residential land use, low intensity service commercial and recreation entertainment uses which are best suited to the physical and environmental constraints of the area. The added DR designation also allows for planned development residential uses that incorporate mixed use or recreational amenities such as recreation vehicle parks, private campgrounds, restaurants, as well as a full range of recreation-oriented act:lvltles. Staff has concluded that this property has no significant use for the Department any longer. As such, Staff recommends that the property be declared surplus and disposed of in accordance with the Surplus Land Act. Following the procedures set forth in Government Code §54220, upon the City's determination that the property is surplus, Staff will issue the required Notices of Availability to numerated public entities and housing sponsors, for a period of 60 days. If the Department receives notice indicating interest in the parcel from any of the notified entities, the Department would then enter "good faith negotiations," concerning the price and terms of sale with that entity. The Department is required to negotiate with such entity for a period of 90 days. If price and terms cannot be agreed upon after 90 days, or no entity gives notice of interest, the Department may sell the surplus land without further regard to the surplus land procedures except that any residential development on the surplus land contains 10 or more units must restrict 15% of the units for affordable housing. Agenda Item 5 31.c Packet Pg. 645 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Water Board Commissioners Page2 February 10,2021 SUBJECT: DECLARATION OF SURPLUSPROPERTYFORWATERDEPARTMENTPROPERTY LOCATED ON GLEN HELEN ROAD (APN 0349-191-08) Nothing in the surplus land procedures requires the Department to sell the surplus land at less than fair market value. Any agreement for the sale of this parcel would be brcught to the Board for consideration at a future date. In preparation of establishing a fair market value for any potential sale, a Property appraisal was conducted by Steven R. Smith to estimate the value of the property based on current market condidons. The repot concluded that the estimated market value of the properry as of Jtne 22, 2O2O was $49,000 based on six (6) comparable sales in the general area in compliance with the Uniform Appraisal Standards for Federal Land Acquisitions, the State of California Standards for Acquisitions of Land as well as USPAP and the Appraisal Institute. GOALS AND OBTECTIVE,S: Declaring this parcel as sulplus property aligns with the Department's Strategic Plan under Target #2: Relationships and Partnerships Goal#2 Collaborate with ratepayets and the community. This supports the specific action to support growth and expansion of development in the area. FISCAL IMPACT: Thete is no f,tscal impact associated with this action. RECOMMENDATION: It is tecommended that the \Vatet Board make the following modons: Government Code, 554220 et seq. for the disposition of sulplus land. Respectfully submitted, Miguel J. Guerrero, P.E. General Manager Attachment - Appraisal Report 31.c Packet Pg. 646 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 1 Appraisal Report Prepared on Glen Helen Road, San Bernardino, California 92407 (Accessor’s Parcel Number: 0349-191-08) Prepared for City of San Bernardino Municipal Water Department Effective Date of Value June 12, 2020 (Date of Inspection) Prepared by Steven R. Smith, MSREA, MAI, SRA and Thomas C. Wood 1881 Commercenter East #200 San Bernardino, CA 92408 http://srsrea.com steves@srsrea.com 909 856 6841 31.c Packet Pg. 647 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 2 Steven R. Smith, MSREA, MAI, SRA • Real Estate Consultants • Market Studies • Risk Analysis • Appraisals • 1881 Commercenter East, Suite 200, San Bernardino, CA 92408 909-856-6841, steves@srsrea.com June 22, 2020 Purpose: The purpose of the appraisal is to formulate and express our opinion of the estimated market value of the subject property, in addition to its monthly land lease value. Intended Use/Client and Intended Users: The intended use of this appraisal report is to assist our client in determining a market-derived lease value for the subject parcel, as of the effective date of this report. Our client, the intended user of this report, is City of San Bernardino Municipal Water Department. This report may not be used for any other purpose than expressed above, nor by any other party, than to whom it is addressed, and the appraisers specifically disclaim any liability to such unauthorized third parties. Scope of Work: The scope of work included an inspection of the subject property, the neighborhood and environs, the local market area, the IMRMLS MLS, Realist, CoStar Comps, LoopNet and NDC Data, for market data. Property Rights Appraised: The Fee Simple Estate of the subject property being appraised. Effective Date of Value: June 12, 2020 (date of inspection) Market Value Estimates: •Indicated As Is Market Value of Subject Property: $49,000 (rounded) •Indicated Monthly Land Lease Value of Subject Property: $245.00 (rounded) Respectfully, _____________________________ _________________________ Steven R. Smith, MSREA, MAI, SRA, Thomas C. Wood AG 2123, expires 5/20/21 AT 3004032, expires 9/21/20 31.c Packet Pg. 648 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 3 Table of Contents THE INTRODUCTION ................................................................................................................................................ 4 THE LOCATION ......................................................................................................................................................... 5 LAND DESCRIPTION ................................................................................................................................................. 7 MARKET ANALYSIS ................................................................................................................................................. 11 HIGHEST AND BEST USE ......................................................................................................................................... 13 VALUATION ANALYSIS ........................................................................................................................................... 14 APPRAISER’S CERTIFICATIONS ................................................................................................................................ 22 ASSUMPTIONS AND LIMITING CONDITIONS ........................................................................................................... 23 APPRAISER QUALIFICATIONS ................................................................................................................................. 24 ADDENDUM .......................................................................................................................................................... 26 31.c Packet Pg. 649 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 4 THE INTRODUCTION CURRENT OWNERSHIP/PROPERTY HISTORY According to our review of public records, title to the subject parcels is currently vested in the City of San Bernardino. Our research indicates that there have been no market transfers within the last three years reflected in public records. Furthermore, there are no indications that the property is or has recently been listed for sale. MARKETING AND EXPOSURE TIME Exposure period is the amount of time the real property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal. Marketing period is an opinion of the amount of time it might take to sell the real property interest after the effective date of the appraisal. Sales of similar type properties, including the sale comparables used in this report were analyzed and had a wide range of exposure periods. According to knowledgeable professionals, the marketing time for properties like the subject varies considerably. According to a CoStar survey for ground lease sales, the average marketing/exposure time is ±7 months. Based on our findings, we believe an exposure and marketing time of six to twelve months for the subject property, if properly priced, is considered reasonable and appropriate. Our opinion of a reasonable marketing/exposure time is subject to the on-going developments related to the Covid-19 outbreak, which is detailed within the Market Analysis section of this report. MARKET PARTICIPANT INTERVIEWS Market participants were interviewed from firms active in the subject’s market area. Specifically, brokers/agents for comparable transactions, whose information was available in MLS, were called for verification purposes. In the course of this process, some calls were not returned, which is considered typical. The following is a list of market participants contacted for this appraisal: Real Property Agent of the County of San Bernardino, Keller Williams Realty, All Nations Realty & Investments, Coast Metro Realty & Investments, Prudential California Realty, Century 21 Realty, and Re/Max Champions. HYPOTHETICAL CONDITION/EXTRAORDINARY ASSUMPTION There are no hypothetical conditions or extraordinary assumptions utilized for this appraisal report. SUBJECT OCCUPANCY The subject property is vacant. ASSESSED VALUATION AND TAXES The subject property is located in tax rate area 107155 and has received a 2019 property tax assessment of $219.11. 31.c Packet Pg. 650 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 5 THE LOCATION San Bernardino County/Inland Empire The appraised property is located in the city of Upland, in the west end of the region known as the “Inland Empire," one of the fastest growing regions in the Country. Upland’s western boundary line is on the eastern boundary line of Los Angeles County, which is home to the largest single manufacturing center in the nation. From 2010-2019, the CA Finance Department reports that the Inland Empire added 407,706 people to reach 4,632,327 up 9.6%. The gain represented 15.2% of California’s population growth of 2,673,359. In the year from 2018 to 2019, the area added 220,333 people (10.1%), making it the fastest growing region in the State. The two-county area of the Inland Empire (Riverside-San Bernardino) forms the largest Metropolitan Statistical Area (MSA) in the nation with over 27,308 square miles. A population exceeding 4.6 million in 2019 ranks the Inland Empire as the 12th most populous MSA in the United States. Although the region's large industries had been affected by the Great Recession (2006-2011), the Inland Empire is projected to remain California's fastest-growing region for some time to come. Inexpensive land prices (compared to Los Angeles and Orange Counties), a large supply of vacant land, and a transport network where many highways and railroads intersect have made the Inland Empire a major shipping hub. Some of the nation's largest manufacturing companies have chosen the Inland Empire for their distribution facilities including Toyota Motor Corporation's North American Parts and Logistics Distribution (NAPLD) center in Ontario and APL Logistics in Rancho Cucamonga. More than 80 percent of the state's imported cargo is shipped through the Los Angeles/Inland Empire Corridor. The City of San Bernardino The subject is located in an unincorporated area of San Bernardino County, just outside the northwestern boundary line of the City of San Bernardino, which is considered to be subject’s primary locational influence as evidenced by an adjacent property’s San Bernardino City postal address. The City of San Bernardino is strategically located at the hub of an extensive transportation network and is within short commuting distances of major employment centers in Southern California. Several major transportation systems pass through the City, including three major freeways – the San Bernardino (I-10) Freeway, the Riverside (I-215) Freeway and the Foothill (210) Freeway. 31.c Packet Pg. 651 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 6 San Bernardino is bordered by the cities of Colton and Loma Linda on the south; Redlands and Highland on the east; the San Bernardino National Forest on the north; and the City of Rialto on the west. The City's location is well positioned as an intermodal logistics hub. The City hosts the Burlington Northern and Santa Fe (BNSF) Railway's Intermodal freight transport yard, the Yellow Freight Systems' cross-docking trucking center, and Pacific Motor Trucking. Large warehouses for Kohl's, Mattel, Pep Boys, and Stater Bros. have been developed near the San Bernardino International Airport (former Norton AFB). The City’s financial health has been improving in recent years, recovering from a 2012 bankruptcy. According to the City’s 2019 Comprehensive Annual Financial Report, there has been a notable increase in taxable value of property within the City, a clear reflection of improvements in the local economy. Specifically, the City of San Bernardino experienced a net taxable value increase of 9.5% for the 2019- property tax roll, which was a greater increase than the 6.5% growth expected countywide. The assessed value increase between 2018-19 and 2019-20 was $1.3 billion. Furthermore, over the last six years, there has been a rise in the value of single- family properties in the community, showing an increase of 7.4% from 2018 to 2019. Subject Neighborhood The subject’s neighborhood may be described as that very small part of San Bernardino County located at the eastern base of the San Gabriel Mountains to the west and north and the I-15 Freeway located to the east and the south. The neighborhood’s zoning is a mix of floodway, residential, and GH/SP zoning. This location is at the southern end of the Cajon Pass which has been the main traffic corridor for travel to the east and north. Originally it was by a Toll Road, which was then replaced by a highway (Route 66) that ultimately was replaced by the I-15 Freeway. Railroad lines and high-pressure gas pipelines run through this area. This is one of the main rail and pipeline corridors coming into the Los Angeles Metropolitan area. The neighborhood consists primarily of vacant land with some low-density residential improvements and a clothing-optional resort. There is shopping, dining, and medical services within ±8.5 miles of the subject. 31.c Packet Pg. 652 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 7 LAND DESCRIPTION Address: County: APN Info/Land Size: San Bernardino, California 92407 San Bernardino 0349-191-08 / 122,839 SF (2.82 acres) Zone: GH/SP (Glen Helen Specific Plan) Topography/Drainage: Shape: Earthquake Zone: Flood Zone: Overall level/drainage appears to be adequate Irregular The subject property appears to be located on the Glen Helen Fault line The subject property is located in flood zone X and mandatory flood insurance requirements do not apply 31.c Packet Pg. 653 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 8 SUBJECT ZONING The subject parcel is located within the County of San Bernardino’s Glen Helen Specific Plan Destination Recreation (GH/SP-DR) zone. Per the County’s website, the GH/SP-DR zone is intended to accommodate residential land uses, low- intensity service commercial and recreation entertainment uses that are sensitive to the physical and environmental constraints of the area. The DR designation will also allow planned development residential uses that incorporate mixed use or recreational amenities. This designation provides for the continued use of existing single-family residential uses on large parcels. Land uses allowed within this designation include recreation vehicle parks, private campgrounds, residential uses, bed and breakfast establishments, restaurants, and limited retail commercial, as well as a full range of recreation-oriented activities. Single-family dwelling, residential care facility (6 or fewer clients), and crop production (vineyard, nurseries, etc.) are the only expressly permitted uses in the zone. Other uses are considered to be conditional and/or subject to a Minor Use Permit (MUP). EASEMENTS/ENCROACHMENTS A preliminary report was provided for review (see addendum). While there are public utility easements that are considered typical, we note that there are two a-typical easements: a 30-foot-wide pipeline easement and an ingress- egress easement for an adjacent property. Due to the subject property’s irregular shape, these easements can be considered detrimental to the development potential of the subject property and, thus, are considered to be adversely encumbering. Our valuation process will include analysis related to these easements. No adverse conditions, easements or encroachments, other than those noted above, were observed during the inspection of the site. Identification of any easement/encroachment is of a legal nature and an attorney specializing in this field should be consulted for their opinion concerning these items. This report is not intended to render any opinion whatsoever regarding any adverse title conditions, easements or encroachments that may affect the subject property. Our value estimate is, however, predicated upon there being no adverse title conditions, easements or encroachments that would cause a loss in value or prohibit development and no responsibility is assumed for any such conditions or for any expertise or knowledge required to discover them. 31.c Packet Pg. 654 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 9 SUBJECT PHOTOS The following subject photos represent only a sampling of the photos taken during our inspection. We have retained all subject photos in our workfile, which are available upon request. Southeasterly view of subject property from onsite Northerly view of subject property from onsite 31.c Packet Pg. 655 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 10 Southeasterly view of subject property from Glen Helen Road (subject on the left) View of warning sign associated with pipeline easement on subject property 31.c Packet Pg. 656 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 11 MARKET ANALYSIS Considering the subject’s neighborhood, and its zoning, we find the single-family residential market to be the most appropriate for the subject’s market analysis. Information regarding the subject’s market conditions are derived from independent research and data compiled from California Regional Multiple Listing Service, Inc. We analyzed the SFR market across the subject’s county (San Bernardino) over the past twelve months (May 2019 to May 2020) and compared those findings with the data accumulated from the subject’s local City of San Bernardino market for the same period of time. The county data indicates that there has been sharp drop (±35%) in active listings over the past year, from 7,264 to 4,691. City data shows an even sharper decrease (±46%) in active listings from 473 to 254. Both sectors, however, have seen consistency in their marketing/exposure periods, at ±20 days over the past year. The total number of closed sales across the county declined 38.3% over the past year, and the number of closed sales in San Bernardino City had a similar 37.2% decrease. In spite of the sharp decrease in the number of reported closed home sales, both the local and the larger sectors of analysis have shown an increase in the average sales price for single family homes over the past 12 months, with the county indicating 2.68% and the City’s increase larger at 10.67%. As of May 2020, the average sales price of a single-family residence across the county of San Bernardino is reported to be ±$385,043, while the data indicates that San Bernardino City’s average sales price is ±340,307. These figures point to the value of real property in the City of San Bernardino having an approximately 12% disadvantage to the aggregate of the San Bernardino County SFR market. 31.c Packet Pg. 657 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 12 Market Outlook On 3/11/20, the World Health Organization (WHO) declared a rapidly spreading outbreak known as Covid- 19 (Coronavirus) to be a world-wide pandemic. Since March, San Bernardino County and City have reported 27% and 30% decreases in total closed SFR home sales, respectively. As of the effective date of date of this report (6/12/20), reports indicate the United States as having the largest outbreak in the world. Furthermore, California has been identified as one of three states containing the largest number of coronavirus diagnoses in the country, reaching its second-highest level of 3,660 newly reported cases on 6/12/20. The coronavirus is still spreading (progressing) and there does not appear to be a clear indication of when it will reach its peak and begin to regress; there is only speculation at this point. Albeit the physical health of the nation is the primary concern at the moment, a large number of societal aspects have been negatively impacted and remain in flux as a result of Covid-19, perhaps most notably, unemployment. According to CNN business news, in the week of 3/23/20, 6.65 million people filed for unemployment for the first time, doubling the prior weeks’ record of 3.31 million filings. For some context, the previous largest number of initial unemployment filings recorded since the Department of Labor started tracking the data in 1967 was 695,000 claims filed in the week ending October 2, 1982. Unsurprisingly, economists have characterized these filings as "monstrous," "stunningly awful," and "a portrait of disaster." The Bureau of Labor Statistics reports that the unemployment rate in the U.S., as of April 2020 is 14.7%, which is an increase of 320% from just two months prior. There’s no question that the Covid-19 pandemic and the associated unemployment levels will have an impact on various metrics (prices, days-on-market, etc.) of the real estate market and we believe that any market forecast is likely to have a low-confidence rating at this time, due to the rapidly changing landscape. 31.c Packet Pg. 658 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 13 HIGHEST AND BEST USE Highest and best use is defined as: “The reasonably, probable legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility and maximum productivity.” The above definition of the “Highest and Best Use” is in reference to land that is unimproved. In cases of improved land, a determination of the contributory value of the improvements to the land must be made. The improvements found on a site may be of inappropriate use but will usually continue until the land value in its highest and best use exceeds the total value of the property in its existing use. The subject property is vacant and, therefore, its highest and best use will be solely analyzed as if unimproved and available for development. It should be noted that a highest and best use determination represents an appraiser's opinion based on their judgment and the application of several forms of analyses. Like value, it is not a fact that can be found. The highest and best use of land as though vacant and property as improved must meet four basic tests. These tests consist of the following (see addendum for supportive definitions): 1.Is the use legally permissible or reasonably possible? 2.Is the use physically possible on the site? 3.Is the use economically and financially feasible under proposed and projected market conditions? 4.Is the use estimated to be the most productive among the alternatives that are legally permissible, physically possible, and economically feasible? Highest and Best Use - As Is (Vacant) Highest and Best Use of the site as vacant assumes that a parcel of land is vacant or could be vacant by demolishing the improvements. Given this assumption, this analysis determines the size, quality, and function that would provide the highest return to the land. The four criteria of the Highest and Best Use (see above) provide a basis for analysis. To form an opinion as to the Highest and Best Use as if vacant, we considered the physical attributes of the subject property, its zoning, location and known governmental influences, and the uses of surrounding properties. An in-depth feasibility analysis on the possible alternative uses of the site is beyond the scope of this appraisal assignment. However, in analyzing the subject property, we have investigated the regional, city, and neighborhood characteristics, as well as overall market conditions. Details regarding each category are presented in respective sections of this appraisal report. Conclusion - As Is (Vacant) After reviewing the subject’s overall market conditions (refer to Market Analysis), the subject’s location characteristics, and competing developments, it is our opinion that the highest and best use of the subject site, as vacant and available for development, would likely be to hold for single-family residential development until market conditions have improved and the impact of the Covid-19 outbreak has been fully realized, allowing for appropriate financial feasibility. The most likely buyer would be a land speculator, however, there hasn’t been any recent development activity within the subject’s neighborhood. 31.c Packet Pg. 659 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 14 VALUATION ANALYSIS The following analysis represents the Market Data (or Sales Comparison) and Income approaches to value. The cost approach to value is not applicable and has been excluded from our scope of work due to the absence of subject improvements. An investigation was undertaken to locate sales of similarly zoned land in the subject’s local market area that could be used to provide direct market indications of the subject’s value. Our investigation uncovered a sufficient number of transactions meeting our general criteria, including one active listing and five closed sales, that were deemed useful indicators of value for the subject property. Sales Comparison Approach The land sales utilized in our survey are exclusively comprised of residentially zoned parcels, larger than 2 acres in size, listed or sold within the past 18 months, that are located within ±3.5 miles of the subject property. The comparables have a pre-adjusted dollar per square foot range of $0.31 to $0.75, with an average of $0.58/SF. We note that the subject is adversely encumbered by easements which renders it inferior relative to the selected comparables, which results in an overall downward adjustment and contributes to placing the subject’s estimated dollar per square foot value below both the average and the median of the larger data set. Furthermore, four of the comparables have superior neighborhood surroundings, relative to the subject, and two of them have superior street location/exposure, resulting in further downward adjustments. After accounting for land size (consistent with economies of scale) and off-site improvements, the average dollar per square foot value indicated for the subject property is $0.40. As such, the selected comparables utilized for our analysis support our conclusion of $0.40/SF for the subject, which is considered reasonable. An appraisal of real property that utilizes the sales comparison approach with a current effective date, involves looking backward from that effective date to analyze data from some point in the past to arrive at a current indication of value. As detailed in the market analysis section of this report, the real estate market is currently in the process of being negatively impacted by the Covid-19 pandemic and, while a declining market is likely to be the result, it is too early to determine the extent of the impact. 31.c Packet Pg. 660 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 15 In a declining market, relying on closed sales alone will result in a value indicator higher than might be possible. We are on the cusp of a market condition that could cause prices to decline. We acknowledge that this report utilizes comparable data that precedes the Covid-19 pandemic determination, in addition to published closed sale comparables from the period of time following the pandemic determination that are applicable to the subject property and its indicated value. Based on the above discussion, we conclude the market value of the subject’s fee simple interest, as of June 12, 2020, to be calculated as follows: $0.40 x 122,839 SF = $49,135 ($49,000 rounded) 31.c Packet Pg. 661 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 16 31.c Packet Pg. 662 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 17 Comparable #1 Comparable #2 Comparable #3 31.c Packet Pg. 663 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 18 Comparable #4 Comparable #5 Comparable #6 31.c Packet Pg. 664 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 19 Map of Comparable Land Sales 31.c Packet Pg. 665 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 20 Income Approach For the purpose of determining an appropriate land lease value, our clients have engaged us to determine an estimated dollar per-square foot/per month rental price of the subject property, which will be derived from analysis related the income approach to value. Our estimation of a monthly land lease value the subject property is based on applying an appropriate capitalization (CAP) rate to our concluded property value to determine a potential annual income. Then, to arrive at a monthly land lease value, we subtract a reasonable percentage for operating expenses and divide the resulting figure by twelve (months). To determine an appropriate CAP rate, we conducted a CoStar search throughout San Bernardino, Riverside, Orange, and Los Angeles counties for sales of ground leases with transactions occurring within the past 12 months. Our survey revealed a dearth of residential land leases as it is not typical to lease residential land in the subject’s Southern California market. As such, our survey is primarily comprised of commercial ground leases and appropriately adjusted (discounted) for the subject’s residential scenario. Our CoStar survey returned 35 sales of ground leases with CAP rates ranging from 3.5% to 6.6% with an average of 4.5%. Considering the lack of sales and development activity in the subject’s immediate neighborhood, the adversely encumbering 30-ft wide pipeline easement, and the ingress-egress easement, it is our opinion that applying a ±1% discount to the highest CAP rate found in our survey (6.6%) would provide credible results. As such, we have selected 7.5% as an appropriate capitalization rate for purposes of estimating an acceptable monthly land lease value for the subject property. Our summarized analysis is shown in the graphic below (note – there are some small rounding differences): Conclusion Based on the above analysis, the indicated value from the income approach is as shown below: 31.c Packet Pg. 666 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 21 Reconciliation The indicated applicable market values from the Sales Comparison and Income Approaches are summarized as follows. Sales Comparison Approach: $49,000 Income Approach: $39,500 The Sales Comparison Approach is based on comparable sales of similar properties located in the subject’s market area. By researching recent sales of properties similar to the subject, and analyzing them for their similarities and differences, an indication of the subject’s value can be derived. The price-per-square-foot indicator used in this approach is also the tool utilized in this market by buyers, sellers and brokers as a basis for purchasing such properties. As mentioned, the subject property is a vacant land parcel with residential zoning and the most likely buyer is a land speculator. As such, the Sales Comparison Approach is considered the primary approach to value. The Income Approach is primarily a good indicator of an investment grade property. This analysis was based on a market survey, as well as expenses and overall capitalization rates based on market research. Most investors rely on the Income Approach to determine the value of single and multi-tenant investment properties. The subject is a vacant land parcel with residential zoning, for which there is no significant investment market. As such, the Income Approach is considered a secondary approach to value. Based on the above discussion, and placing 100% weight on the Sales Comparison Approach as our primary indicator of value, our reconciled, concluded opinion of the As Is value of the subject’s fee simple estate, as of June 12, 2020, is: AS IS Market Value FORTY-NINE THOUSAND DOLLARS $49,000 31.c Packet Pg. 667 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 22 APPRAISER’S CERTIFICATIONS We do hereby certify that, except as otherwise noted in this report: We have made a personal inspection of the property that is the subject of this report. We have no past, present or prospective interest or bias in the property that is the subject of this report and no personal interest or bias with respect to the parties involved. To the best of our knowledge and belief, the statements of fact contained in this report, upon which the analysis, opinions, and conclusions expressed herein are based, are true and correct. The analysis, opinions, and conclusions contained in this report are limited only by the reported assumptions and limiting conditions imposed by the terms of our assignment or by the undersigned and are our personal, impartial, and unbiased professional analysis, opinions, and conclusions. The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and in conformity conforms to the requirements of the code of professional ethics and standards of professional appraisal practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. The Appraisal Institute has a voluntary program of continuing education requirements. Steven R. Smith is certified through 2020 with his education requirement. In accordance with the Competency Provision of the Uniform Standards of Professional Appraisal Practice (USPAP), We have verified that our knowledge and experience is sufficient to allow us to competently complete this appraisal unless stated otherwise within this report. The appraisers further certify and agree that: Our compensation is not contingent upon the reporting of a predetermined value or direction in value that favors the cause of the client, the amount of value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. This appraisal assignment was not based on a requested minimum valuation, a specific valuation, or the approval of a loan. We have not appraised this property in the last three years. Steven R. Smith, MSREA, MAI, SRA AG 2123, expires 5/13/21 Thomas C. Wood AT 3004032, expires 9/21/20 31.c Packet Pg. 668 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 23 ASSUMPTIONS AND LIMITING CONDITIONS This appraisal is subject to the following assumptions and limiting conditions: No responsibility is assumed for matters legal in character or nature. No opinion is rendered as to title, which is assumed to be good and marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, having responsible ownership and competent management. We have examined the property described herein exclusively for the purposes of identification and description of the real property. The objective of our data collection is to develop an opinion of the highest and best use of the subject property and make meaningful comparisons in the valuation of the property. The appraiser's observations and reporting of the subject improvements are for the appraisal process and valuation purposes only and should not be considered as a warranty of any component of the property. This appraisal assumes (unless otherwise specifically stated) that the subject is structurally sound, and all components are in working condition. We will not be required to give testimony or appear in court because of having made an appraisal of the property in question, unless specific arrangements to do so have been made in advance, or as otherwise required by law. We have noted in this appraisal report any significant adverse conditions (such as needed repairs, depreciation, the presence of hazardous wastes, toxic substances, etc.) discovered during the data collection process in performing the appraisal. Unless otherwise stated in this appraisal report, we have no knowledge of any hidden or unapparent physical deficiencies or adverse conditions of the property (such as, but not limited to, needed repairs, deterioration, the presence of hazardous wastes, toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and have assumed that there are no such conditions and make no guarantees or warranties, express or implied. We will not be responsible for any such conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist. Because we are not experts in the field of environmental hazards, this appraisal report must not be considered as an environmental assessment of the property. We obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable public and/or private sources that we believe to be true and correct. We will not disclose the contents of this appraisal report except as provided for in the Uniform Standards of Professional Appraisal Practice, and/or applicable federal, state or local laws. The Client is the party or parties who engage an appraiser (by employment contract) in a specific assignment. A party receiving a copy of this report from the client does not, as a consequence, become a party to the appraiser-client relationship. Any person who receives a copy of this appraisal report as a consequence of disclosure requirements that apply to an appraiser's client, does not become an intended user of this report unless the client specifically identified them at the time of the assignment. The appraiser's written consent and approval must be obtained before this appraisal report can be conveyed by anyone to the public through advertising, public relations, news, sales, or other media. 31.c Packet Pg. 669 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 24 APPRAISER QUALIFICATIONS STEVEN R. SMITH, MSREA, MAI, SRA, AG 2123 MS IN REAL ESTATE APPRAISAL, BA IN REAL ESTATE FINANCE FULL TIME APPRAISER SINCE 1976. PART TIME UNIVERSITY INSTRUCTOR IN REAL ESTATE AT CAL STATE UNIVERSITY 2005-2015. PRIOR WORK EXPERIENCE INCLUDED LOAN SERVICING, LOAN ORIGINATION, LOAN ADMINISTRATION, TITLE INSURANCE SALES, REAL ESTATE SALE, MORTGAGE LENDING, AND REAL ESTATE SALES MANAGEMENT. APPRAISAL EXPERIENCE INCLUDES PERFORMING APPRAISALS AND MARKET STUDIES ON EXISTING, PROPOSED AND DISTRESSED PROPERTIES, NON-PERFORMING OR DESTABILIZED PROJECT. COURT TESTIMONY EXPERIENCE INCLUDES A RANGE OF CIVIL AND CRIMINAL CASES, PROFESSIONAL LIABILITY CASES, MORTGAGE FRAUD AND REAL ESTATE FRAUD CASES; AS BOTH AN EXPERT WITNESS OR AS A REBUTTAL WITNESS. DEPOSITION TESTIMONY HAS ALSO INCLUDED IRS AND EMINENT DOMAIN CASES. NO COURT TESTIMONY HAS BEEN PROVIDED IN EITHER OF THESE TYPES OF CASES AS EVERYONE HAS SETTLED. SEMINARS CREATED AND DELIVERED INCLUDE: MORTGAGE FRAUD AND THE APPRAISERS ROLE- AI-2005, BUILDING TRANSFERABLE SKILL-SETS, AI – 2005, PREDATOR LENDING, CLIENT PRESSURES & APPRAISAL FRAUD, 2004, MORTGAGE FRAUD, CASES & CONSEQUENCES, 2002, REAL ESTATE FRAUD, APPRAISERS LIABILITIES & RESPONSIBILITIES, 2000, REAL ESTATE FRAUD & THE APPRAISERS ROLE, 2000, APPRAISAL REVIEW- SREA - 1989. APPRAISER LIABILITY SEMINAR- SREA - 1988. CAL LEAGUE OF SAVINGS INSTITUTIONS - APPRAISAL QUALITY CONTROL - 1988. RESIDENTIAL APPRAISAL SEMINAR - AIREA - 1987. BOSTON SAFE GUIDELINES - 1985-1988. MORTGAGE BANKERS OF AMERICA-APPRAISAL REVIEW - 1984-86. NARAMU-APPRAISAL REVIEW & FRAUD PREVENTION - 1984-1985. UNIFORM APPRAISAL GUIDELINES - 1984-88. 99 POINT APPRAISAL REVIEW WORKSHOP - 1984-1986. EXPERIENCE CREDIT WORKSHOP-USPAP COMPLIANCE, APPRAISAL INSTITUTE 1991. USPAP COMPLIANCE, APMW, 1991. ESTATE AND LUXURY HOME APPRAISAL REVIEW – APPRAISAL INSTITUTE - 1997. SPECIALTIES INCLUDE: LUXURY HOMES, AND FORENSIC APPRAISAL REVIEW CONTACT: 909-856-6841, WEB PAGE: HTTP://SRSREA.COM, EMAIL: steve@srsrea.com 31.c Packet Pg. 670 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 25 THOMAS C. WOOD, AT 3004032 FULL TIME APPRAISER SINCE 2016, PROVIDING COMMERCIAL AND RESIDENTIAL PROPERTY VALUATION SERVICES IN LOS ANGELES AND ORANGE COUNTIES AND THE INLAND EMPIRE AREA OF THE SOUTHERN CALIFORNIA REGION. MY EXPERIENCE HAS A FOCUS ON COMMERCIAL PROPERTY, EMINENT DOMAIN, AND EASEMENT VALUATION . EDUCATION: MCKISSOCK – FEBRUARY/MARCH 2020 2020-2021 USPAP UPDATE COURSE – 7 HOURS ADVANCED RESIDENTIAL APPLICATIONS AND CASE STUDIES – 15 HOURS LAWS AND REGULATIONS FOR CALIFORNIA APPRAISERS – 4 HOURS STATISTICS , MODELING, AND FINANCE – 15 HOURS SOUTH TEXAS COLLEGE - AUGUST 2019 ASSOCIATE OF ARTS IN BUSINESS ADMINISTRATION APPRAISAL INSTITUTE - FEBRUARY 2017- FEBRUARY 2018 BASIC APPRAISAL PRINCIPALS – 30 HOURS BASIC APPRAISAL PROCEDURES – 30 HOURS GENERAL APPRAISER INCOME APPROACH PART 1 – 30 HOURS GENERAL APPRAISER INCOME APPROACH PART 2 – 30 HOURS GENERAL APPRAISER SALES COMPARISON APPROACH – 30 HOURS GENERAL APPRAISER SITE VALUATION AND COST APPROACH – 30 HOURS REAL ESTATE APPRAISAL TRAINEE/SUPERVISOR – 30 HOURS ONLINE BUSINESS PRACTICES AND ETHICS – 5 HOURS 2018-2019 USPAP UPDATE COURSE – 7 HOURS ALLIED SCHOOLS - JUNE 2016 REAL ESTATE APPRAISAL PRINCIPALS AND PRACTICES – 60 HOURS RESIDENTIAL SALES COMPARISON AND INCOME APPROACHES – 30 HOURS RESIDENTIAL APPRAISER SITE VALUATION AND COST APPROACH – 15 HOURS RESIDENTIAL APPRAISER MARKET ANALYSIS AND HIGHEST AND BEST USE – 15 HOURS REAL ESTATE APPRAISAL REPORT WRITING – 15 HOURS 2016-2017 USPAP UPDATE COURSE – 15 HOURS REAL ESTATE APPRAISAL TRAINEE/SUPERVISOR – 4 HOURS 31.c Packet Pg. 671 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 26 ADDENDUM Definition of Market Value: In accordance with USPAP 2018-2019, Market Value is defined as a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraisers as applicable in an appraisal. Market Value is further defined by agencies that regulate federally insured financial institutions in the United States as follows: The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1.Buyer and seller are typically motivated; 2.Both parties are well informed or well advised and each acting in what they consider their best interests; 3.A reasonable time is allowed for exposure in the open market; 4.Payment is made in terms of cash in US dollars or in terms of financial arrangements comparable thereto; and 5.The price represents the normal consideration for the property sold unaffected by special or creative financing or sales commissions granted by anyone associated with the sale. Definition of As Is Market Value: "The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date." (Source: Appraisal Institute, The Dictionary of Real Estate Appraisal, 6th ed. (Chicago: Appraisal Institute, 2015); also, Interagency Appraisal and Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77471). Supportive Definitions for Highest and Best Use Analysis: Legally Permissible Legal permissibility depends on public restrictions such as zoning, building codes, as well as the private or contractual restrictions found in deeds and long-term leases. Current information regarding private restrictions was not provided in this assignment. However, there appears to be no deed or easement restrictions on the property that could affect development. A restriction or long-term ground lease does not encumber the land. Therefore, legal restrictions as they apply to the subject property are primarily the public restrictions of zoning. An industrial development would be considered a legally allowed use and consistent with those of the surrounding area. 31.c Packet Pg. 672 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 27 Physically Possible The size, shape, terrain, soil conditions, accessibility, and availability of utilities for a parcel of land affect its utility and adaptability. The physical characteristics of the subject site appear to be adequate in terms of shape, size, topography, available utilities and accessibility. Although the exact soil composition is unknown, it appears that the soil is also adequate to support building improvements. Therefore, it appears that the physical characteristics would allow for the legally permissible uses. Financially Feasible and Maximally Productive According to the Real Estate Terminology Handbook, a real estate project is feasible when the analysis indicates that there is a likelihood of satisfying the explicit objectives and when a selected course of action is tested in the context of specific constraints and limited resources. The feasibility of a real estate project is normally related to its economic potential. 31.c Packet Pg. 673 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 28 PRELIMINARY TITLE REPORT 31.c Packet Pg. 674 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Chicago Title Company 4911 Birch Street, , Newport Beach, CA 92660 Phone: (949) 724-3117 ● Fax: (949) 258-5237 CLTA Preliminary Report Form – Modified (11/17/06)Page 1 Issuing Policies of Chicago Title Insurance Company ORDER NO.: 00131657-987-OC1-K27 San Bernardino Municipal Water Dept. 397 W. Chandler Pl San Bernardino, CA 92408 ATTN: Sydney Morrison Email: sydney.morrison@sbmwd.org REF: Escrow/Customer Phone: (949) 724-3117 Title Officer: John Balassi/Jason Silva (OC/Comm) Title Officer Phone: (949) 724-3117 Title Officer Fax: (949) 258-5237 Title Officer Email: CTCommercialTitleNewport@ctt.com PROPERTY:APN 0349-191-08, , CA PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Chicago Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner’s Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The policy(s) of title insurance to be issued hereunder will be policy(s) of Chicago Title Insurance Company, a Florida corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land. Chicago Title Company By: Authorized Signature 31.c Packet Pg. 675 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Chicago Title Company 4911 Birch Street, , Newport Beach, CA 92660 Phone: (949) 724-3117 ● Fax: (949) 258-5237 CLTA Preliminary Report Form – Modified (11/17/06)Page 2 PRELIMINARY REPORT EFFECTIVE DATE:June 3, 2020 at 7:30 a.m. ORDER NO.: 00131657-987-OC1-K27 The form of policy or policies of title insurance contemplated by this report is: CLTA Standard Coverage Owners Policy (04-08-14) 1.THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A FEE 2.TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: CITY OF SAN BERNARDINO, a municipal corporation 3.THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: See Exhibit A attached hereto and made a part hereof. 31.c Packet Pg. 676 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00131657-987-OC1-K27 CLTA Preliminary Report Form – Modified (11/17/06)Page 3 EXHIBIT “A” LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE UNINCORPORATED AREA OF , IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: THAT PORTION OF THE RANCHO MUSCUPIABE, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, PAGE 23 OF MAPS, RECORDS OF SAID COUNTY, AS SET FORTH IN PARCEL NO. 5, IN THE DEED TO THE CITY OF SAN BERNARDINO, A MUNICIPAL CORPORATION, RECORDED JUNE 16, 1950 IN BOOK 2591, PAGE 579 OF OFFICIAL RECORDS. EXCEPT THEREFROM THAT PORTION LYING NORTHEASTERLY OF THE SOUTHWESTERLY LINE OF THE PROPERTY CONDEMNED TO THE SOUTHERN PACIFIC COMPANY, A CORPORATION BY FINAL ORDER OF CONDEMNATION NO. 129556, RECORDED JUNE 14, 1966 IN BOOK 6645, PAGE 511 OF OFFICIAL RECORDS. APN(s):0349-191-08-0-000 31.c Packet Pg. 677 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00131657-987-OC1-K27 CLTA Preliminary Report Form – Modified (11/17/06)Page 4 EXCEPTIONS AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: A.Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2020-2021. B.The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A or as a result of changes in ownership or new construction occurring prior to Date of Policy. 1.Water rights, claims or title to water, whether or not disclosed by the public records. 2.All easements, offers and dedications as shown on the Official Map Tract of:Rancho Muscupiabe 3.Easement(s) in favor of the public over any existing roads lying within said Land. 4.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:General Telephone Company of California, a corporation Purpose:Public utilities Recording Date:September 22, 1958 Recording No:in Book 4610, Page 69 of Official Records Affects:A portion of said land as more particularly described in said document. 5.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Southern California Gas Company, a corporation, 70% interest and Southern Counties Gas Company, a corporation, 30% interest Purpose:Public utilities Recording Date:October 8, 1958 Recording No:in Book 4624, Page 133 of Official Records Affects:A portion of said land as more particularly described in said document. 6.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Calnev Pipe Line Company, a Delaware Corporation Purpose:Pipelines Recording Date:March 3, 1961 Recording No:in Book 5367, Page 433 of Official Records Affects:A portion of said land as more particularly described in said document. 7.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:John E. and Faith A. Finfrock, husband and wife, as joint tenants Purpose:Ingress and egress and utilities Recording Date:May 19, 1961 Recording No:in Book 5435, Page 530 of Official Records Affects:A portion of said land as more particularly described in said document. 31.c Packet Pg. 678 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00131657-987-OC1-K27 EXCEPTIONS (Continued) CLTA Preliminary Report Form – Modified (11/17/06)Page 5 8.Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to:Southern California Gas Company, a corporation Purpose:Public utilities Recording Date:December 2, 1965 Recording No:in Book 6524, Page 720 of Official Records Affects:A portion of said land as more particularly described in said document. 9.Notwithstanding the Covered Risks as set forth in the policy, the Company does not insure against loss or damage by reason of a lack of a right of access to and from the Land. 10.Please be advised that our search did not disclose any open Deeds of Trust of record. If you should have knowledge of any outstanding obligation, please contact the Title Department immediately for further review prior to closing. 11.Matters which may be disclosed by an inspection and/or by a correct ALTA/NSPS Land Title Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in possession thereof. 12.Any easements not disclosed by the public records as to matters affecting title to real property, whether or not said easements are visible and apparent. 13.Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other matters which a correct survey would disclose and which are not shown by the public records. PLEASE REFER TO THE “INFORMATIONAL NOTES” AND “REQUIREMENTS” SECTIONS WHICH FOLLOW FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION. END OF EXCEPTIONS 31.c Packet Pg. 679 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00131657-987-OC1-K27 CLTA Preliminary Report Form – Modified (11/17/06)Page 6 REQUIREMENTS SECTION 1.The Company will require the following documents for review prior to the issuance of any title insurance predicated upon a conveyance or encumbrance by the corporation named below: Name of Corporation:City of San Bernardino, a municipal corporation a)A Copy of the corporation By-laws and Articles of Incorporation b)An original or certified copy of a resolution authorizing the transaction contemplated herein c)If the Articles and/or By-laws require approval by a ‘parent’ organization, a copy of the Articles and By-laws of the parent The Company reserves the right to add additional items or make further requirements after review of the requested documentation. END OF REQUIREMENTS 31.c Packet Pg. 680 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as PRELIMINARY REPORT Chicago Title Company YOUR REFERENCE: ORDER NO.: 00131657-987-OC1-K27 CLTA Preliminary Report Form – Modified (11/17/06)Page 1 INFORMATIONAL NOTES SECTION 1.Note: Property taxes, including any personal property taxes and any assessments collected with taxes, are paid. For proration purposes the amounts were: Tax Identification No.:0349-191-08-0-000 Fiscal Year:2019-2020 1st Installment:$145.56 2nd Installment:$145.55 Exemption: Code Area:107-155 2.None of the items shown in this report will cause the Company to decline to attach ALTA Endorsement Form 9 to an Extended Coverage Loan Policy, when issued. 3.Note: The policy of title insurance will include an arbitration provision. The Company or the insured may demand arbitration. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Please ask your escrow or title officer for a sample copy of the policy to be issued if you wish to review the arbitration provisions and any other provisions pertaining to your Title Insurance coverage. 4.Notice: Please be aware that due to the conflict between federal and state laws concerning the cultivation, distribution, manufacture or sale of marijuana, the Company is not able to close or insure any transaction involving Land that is associated with these activities. 5.Pursuant to Government Code Section 27388.1, as amended and effective as of 1-1-2018, a Documentary Transfer Tax (DTT) Affidavit may be required to be completed and submitted with each document when DTT is being paid or when an exemption is being claimed from paying the tax. If a governmental agency is a party to the document, the form will not be required. DTT Affidavits may be available at a Tax Assessor-County Clerk-Recorder. 6.Note: There are NO conveyances affecting said Land recorded within 24 months of the date of this report. END OF INFORMATIONAL NOTES John Balassi/Jason Silva (OC/Comm)/ry5 31.c Packet Pg. 681 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Wire Fraud Alert Page 1 Original Effective Date: 5/11/2017 Current Version Date: 5/11/2017 WIRE0016 (DSI Rev. 12/07/17) TM and © Fidelity National Financial, Inc. and/or an affiliate. All rights reserved Wire Fraud Alert This Notice is not intended to provide legal or professional advice. If you have any questions, please consult with a lawyer. All parties to a real estate transaction are targets for wire fraud and many have lost hundreds of thousands of dollars because they simply relied on the wire instructions received via email, without further verification. If funds are to be wired in conjunction with this real estate transaction, we strongly recommend verbal verification of wire instructions through a known, trusted phone number prior to sending funds. In addition, the following nonexclusive selfprotection strategies are recommended to minimize exposure to possible wire fraud. NEVER RELY on emails purporting to change wire instructions. Parties to a transaction rarely change wire instructions in the course of a transaction. ALWAYS VERIFY wire instructions, specifically the ABA routing number and account number, by calling the party who sent the instructions to you. DO NOT use the phone number provided in the email containing the instructions, use phone numbers you have called before or can otherwise verify. Obtain the phone number of relevant parties to the transaction as soon as an escrow account is opened. DO NOT send an email to verify as the email address may be incorrect or the email may be intercepted by the fraudster. USE COMPLEX EMAIL PASSWORDS that employ a combination of mixed case, numbers, and symbols. Make your passwords greater than eight (8) characters. Also, change your password often and do NOT reuse the same password for other online accounts. USE MULTI-FACTOR AUTHENTICATION for email accounts. Your email provider or IT staff may have specific instructions on how to implement this feature. For more information on wirefraud scams or to report an incident, please refer to the following links: Federal Bureau of Investigation:Internet Crime Complaint Center: http://www.fbi.gov http://www.ic3.gov 31.c Packet Pg. 682 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Chicago Title Company 4911 Birch Street, , Newport Beach, CA 92660 Phone: (949) 724-3117 ● Fax: (949) 258-5237 Notice of Available Discounts (Rev. 01-15-20)Last Saved: June 15, 2020 by RY5 MISC0164 (DSI Rev. 03/12/20)Escrow No.: 00131657-987-OC1-K27 Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the filed rate. As such, your transaction may not qualify for the below discounts. You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one-to-four family residential dwelling. Not all discounts are offered by every FNF Company. The discount will only be applicable to the FNF Company as indicated by the named discount. FNF Underwritten Title Company Underwritten by FNF Underwriters CTC – Chicago Title company CTIC – Chicago Title Insurance Company CLTC – Commonwealth Land Title Company CLTIC - Commonwealth Land Title Insurance Company FNTC – Fidelity National Title Company of California FNTIC – Fidelity National Title Insurance Company FNTCCA - Fidelity National Title Company of California FNTIC - Fidelity National Title Insurance Company TICOR – Ticor Title Company of California CTIC – Chicago Title Insurance Company LTC – Lawyer’s Title Company CLTIC – Commonwealth Land Title Insurance Company SLTC – ServiceLink Title Company CTIC – Chicago Title Insurance Company Available Discounts DISASTER LOANS (CTIC, CLTIC, FNTIC) The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within twenty-four (24) months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be fifty percent (50%) of the appropriate title insurance rate. CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (CTIC, FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be fifty percent (50%) to seventy percent (70%) of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be forty (40%) to fifty percent (50%) of the appropriate title insurance rate, depending on the type of coverage selected. 31.c Packet Pg. 683 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as FNF Privacy Statement (Eff. April 9, 2020)Copyright © 2020. Fidelity National Financial, Inc. All Rights Reserved MISC0219 (DSI Rev. 04/10/20)Page 1 Order No. 00131657-987-OC1-K27 FIDELITY NATIONAL FINANCIAL, INC. PRIVACY NOTICE Effective April 9, 2020 Fidelity National Financial, Inc. and its majority-owned subsidiary companies (collectively, “FNF,” “our,” or “we”) respect and are committed to protecting your privacy. This Privacy Notice explains how we collect, use, and protect personal information, when and to whom we disclose such information, and the choices you have about the use and disclosure of that information. A limited number of FNF subsidiaries have their own privacy notices. If a subsidiary has its own privacy notice, the privacy notice will be available on the subsidiary’s website and this Privacy Notice does not apply. Collection of Personal Information FNF may collect the following categories of Personal Information: contact information (e.g., name, address, phone number, email address); demographic information (e.g., date of birth, gender, marital status); identity information (e.g. Social Security Number, driver’s license, passport, or other government ID number); financial account information (e.g. loan or bank account information); and other personal information necessary to provide products or services to you. We may collect Personal Information about you from: information we receive from you or your agent; information about your transactions with FNF, our affiliates, or others; and information we receive from consumer reporting agencies and/or governmental entities, either directly from these entities or through others. Collection of Browsing Information FNF automatically collects the following types of Browsing Information when you access an FNF website, online service, or application (each an “FNF Website”) from your Internet browser, computer, and/or device: Internet Protocol (IP) address and operating system; browser version, language, and type; domain name system requests; and browsing history on the FNF Website, such as date and time of your visit to the FNF Website and visits to the pages within the FNF Website. Like most websites, our servers automatically log each visitor to the FNF Website and may collect the Browsing Information described above. We use Browsing Information for system administration, troubleshooting, fraud investigation, and to improve our websites. Browsing Information generally does not reveal anything personal about you, though if you have created a user account for an FNF Website and are logged into that account, the FNF Website may be able to link certain browsing activity to your user account. Other Online Specifics Cookies. When you visit an FNF Website, a “cookie” may be sent to your computer. A cookie is a small piece of data that is sent to your Internet browser from a web server and stored on your computer’s hard drive. Information gathered using cookies helps us improve your user experience. For example, a cookie can help the website load properly or can customize the display page based on your browser type and user preferences. You can choose whether or not to accept cookies by changing your Internet browser settings. Be aware that doing so may impair or limit some functionality of the FNF Website. Web Beacons. We use web beacons to determine when and how many times a page has been viewed. This information is used to improve our websites. Do Not Track. Currently our FNF Websites do not respond to “Do Not Track” features enabled through your browser. Links to Other Sites. FNF Websites may contain links to unaffiliated third-party websites. FNF is not responsible for the privacy practices or content of those websites. We recommend that you read the privacy policy of every website you visit. Use of Personal Information FNF uses Personal Information for three main purposes: To provide products and services to you or in connection with a transaction involving you. To improve our products and services. To communicate with you about our, our affiliates’, and others’ products and services, jointly or independently. When Information Is Disclosed We may disclose your Personal Information and Browsing Information in the following circumstances: to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure; to nonaffiliated service providers who provide or perform services or functions on our behalf and who agree to use the information only to provide such services or functions; 31.c Packet Pg. 684 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as FNF Privacy Statement (Eff. April 9, 2020)Copyright © 2020. Fidelity National Financial, Inc. All Rights Reserved MISC0219 (DSI Rev. 04/10/20)Page 2 Order No. 00131657-987-OC1-K27 to nonaffiliated third party service providers with whom we perform joint marketing, pursuant to an agreement with them to jointly market financial products or services to you; to law enforcement or authorities in connection with an investigation, or in response to a subpoena or court order; or in the good-faith belief that such disclosure is necessary to comply with legal process or applicable laws, or to protect the rights, property, or safety of FNF, its customers, or the public. The law does not require your prior authorization and does not allow you to restrict the disclosures described above. Additionally, we may disclose your information to third parties for whom you have given us authorization or consent to make such disclosure. We do not otherwise share your Personal Information or Browsing Information with nonaffiliated third parties, except as required or permitted by law. We may share your Personal Information with affiliates (other companies owned by FNF) to directly market to you. Please see “Choices with Your Information” to learn how to restrict that sharing. We reserve the right to transfer your Personal Information, Browsing Information, and any other information, in connection with the sale or other disposition of all or part of the FNF business and/or assets, or in the event of bankruptcy, reorganization, insolvency, receivership, or an assignment for the benefit of creditors. By submitting Personal Information and/or Browsing Information to FNF, you expressly agree and consent to the use and/or transfer of the foregoing information in connection with any of the above described proceedings. Security of Your Information We maintain physical, electronic, and procedural safeguards to protect your Personal Information. Choices With Your Information If you do not want FNF to share your information among our affiliates to directly market to you, you may send an “opt out” request by email, phone, or physical mail as directed at the end of this Privacy Notice. We do not share your Personal Information with nonaffiliates for their use to direct market to you without your consent. Whether you submit Personal Information or Browsing Information to FNF is entirely up to you. If you decide not to submit Personal Information or Browsing Information, FNF may not be able to provide certain services or products to you. For California Residents: We will not share your Personal Information or Browsing Information with nonaffiliated third parties, except as permitted by California law. For additional information about your California privacy rights, please visit the “California Privacy” link on our website (https://fnf.com/pages/californiaprivacy.aspx) or call (888) 413-1748. For Nevada Residents: You may be placed on our internal Do Not Call List by calling (888) 934-3354 or by contacting us via the information set forth at the end of this Privacy Notice. Nevada law requires that we also provide you with the following contact information: Bureau of Consumer Protection, Office of the Nevada Attorney General, 555 E. Washington St., Suite 3900, Las Vegas, NV 89101; Phone number: (702) 486-3132; email: BCPINFO@ag.state.nv.us. For Oregon Residents: We will not share your Personal Information or Browsing Information with nonaffiliated third parties for marketing purposes, except after you have been informed by us of such sharing and had an opportunity to indicate that you do not want a disclosure made for marketing purposes. For Vermont Residents: We will not disclose information about your creditworthiness to our affiliates and will not disclose your personal information, financial information, credit report, or health information to nonaffiliated third parties to market to you, other than as permitted by Vermont law, unless you authorize us to make those disclosures. Information From Children The FNF Websites are not intended or designed to attract persons under the age of eighteen (18).We do not collect Personal Information from any person that we know to be under the age of thirteen (13) without permission from a parent or guardian. International Users FNF’s headquarters is located within the United States. If you reside outside the United States and choose to provide Personal Information or Browsing Information to us, please note that we may transfer that information outside of your country of residence. By providing FNF with your Personal Information and/or Browsing Information, you consent to our collection, transfer, and use of such information in accordance with this Privacy Notice. FNF Website Services for Mortgage Loans Certain FNF companies provide services to mortgage loan servicers, including hosting websites that collect customer information on behalf of mortgage loan servicers (the “Service Websites”). The Service Websites may contain links to both this Privacy Notice and the mortgage loan servicer or lender’s privacy notice. The sections of this Privacy Notice titled When Information is Disclosed, Choices with Your Information, and Accessing and Correcting Information do not apply to the Service Websites. The mortgage loan servicer or lender’s privacy notice governs use, disclosure, and access to your Personal Information. FNF does not share Personal Information collected through the Service Websites, except as required or authorized by contract with the mortgage loan servicer or lender, or as required by law or in the good-faith belief that such disclosure is necessary: to comply with a legal process or applicable law, to enforce this Privacy Notice, or to protect the rights, property, or safety of FNF or the public. 31.c Packet Pg. 685 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as FNF Privacy Statement (Eff. April 9, 2020)Copyright © 2020. Fidelity National Financial, Inc. All Rights Reserved MISC0219 (DSI Rev. 04/10/20)Page 3 Order No. 00131657-987-OC1-K27 Your Consent To This Privacy Notice; Notice Changes; Use of Comments or Feedback By submitting Personal Information and/or Browsing Information to FNF, you consent to the collection and use of the information in accordance with this Privacy Notice. We may change this Privacy Notice at any time. The Privacy Notice’s effective date will show the last date changes were made. If you provide information to us following any change of the Privacy Notice, that signifies your assent to and acceptance of the changes to the Privacy Notice. We may use comments or feedback that you submit to us in any manner without notice or compensation to you. Accessing and Correcting Information; Contact Us If you have questions, would like to correct your Personal Information, or want to opt-out of information sharing for affiliate marketing, send your requests to privacy@fnf.com, by phone to (888) 934-3354, or by mail to: Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, Florida 32204 Attn: Chief Privacy Officer 31.c Packet Pg. 686 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Attachment One – CA (Rev. 05-06-16)Page 1 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. ATTACHMENT ONE (Revised 05-06-16) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY – 1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1.(a)Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b)Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2.Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3.Defects, liens, encumbrances, adverse claims or other matters: (a)whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b)not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c)resulting in no loss or damage to the insured claimant; (d)attaching or created subsequent to Date of Policy; or (e)resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4.Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5.Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6.Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1.Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2.Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3.Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4.Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6.Any lien or right to a lien for services, labor or material not shown by the public records. CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1.Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a.building; b.zoning; c.land use; d.improvements on the Land; e.land division; and f.environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2.The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3.The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4.Risks: a.that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b.that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; 31.c Packet Pg. 687 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Attachment One – CA (Rev. 05-06-16)Page 2 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. c.that result in no loss to You; or d.that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5.Failure to pay value for Your Title. 6.Lack of a right: a.to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b.in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7.The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors’ rights laws. 8.Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 9.Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows: For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16:1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less) $ 10,000.00 Covered Risk 18:1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less) $ 25,000.00 Covered Risk 19:1.00% of Policy Amount Shown in Schedule A or $5,000.00 (whichever is less) $ 25,000.00 Covered Risk 21:1.00% of Policy Amount Shown in Schedule A or $2,500.00 (whichever is less) $ 5,000.00 2006 ALTA LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1.(a)Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i)the occupancy, use, or enjoyment of the Land; (ii)the character, dimensions, or location of any improvement erected on the Land; (iii)the subdivision of land; or (iv)environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a)created, suffered, assumed, or agreed to by the Insured Claimant; (b)not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c)resulting in no loss or damage to the Insured Claimant; (d)attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13 or 14); or (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4.Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated. 5.Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. 6.Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage, is (a)a fraudulent conveyance or fraudulent transfer, or (b)a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE {Except as provided in Schedule B - Part II,{ t{or T}his policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of: 31.c Packet Pg. 688 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Attachment One – CA (Rev. 05-06-16)Page 3 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. {PART I {The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: 1.(a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2.Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3.Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4.Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6.Any lien or right to a lien for services, labor or material not shown by the Public Records.} PART II In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:} 2006 ALTA OWNER’S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1.(a)Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i)the occupancy, use, or enjoyment of the Land; (ii)the character, dimensions, or location of any improvement erected on the Land; (iii)the subdivision of land; or (iv)environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a)created, suffered, assumed, or agreed to by the Insured Claimant; (b)not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c)resulting in no loss or damage to the Insured Claimant; (d)attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4.Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is (a)a fraudulent conveyance or fraudulent transfer; or (b)a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of: {The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: 1.(a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2.Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3.Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4.Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and that are not shown by the Public Records. 5.(a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6.Any lien or right to a lien for services, labor or material not shown by the Public Records. } 7.{Variable exceptions such as taxes, easements, CC&R’s, etc. shown here.} 31.c Packet Pg. 689 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Attachment One – CA (Rev. 05-06-16)Page 4 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY – ASSESSMENTS PRIORITY (04-02-15) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys’ fees or expenses which arise by reason of: 1.(a)Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i)the occupancy, use, or enjoyment of the Land; (ii)the character, dimensions, or location of any improvement erected on the Land; (iii)the subdivision of land; or (iv)environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2.Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3.Defects, liens, encumbrances, adverse claims, or other matters (a)created, suffered, assumed, or agreed to by the Insured Claimant; (b)not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c)resulting in no loss or damage to the Insured Claimant; (d)attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4.Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated. 5.Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6.Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8.The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9.Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage, is (a)a fraudulent conveyance or fraudulent transfer, or (b)a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. 10.Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 11.Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. 31.c Packet Pg. 690 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as 31.c Packet Pg. 691 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Owner’s Declaration Printed: 6/27/2017 2:26 PM by RY5 MISC0220 (DSI Rev. 10/17/17)Page 2 Escrow No.:00131657-987-OC1 OWNER'S DECLARATION Escrow No.:00131657-987-OC1-K27 Property Address:APN 0349-191-08 , CA The undersigned hereby declares as follows: 1.(Fill in the applicable paragraph and strike the other) a.Declarant ("Owner") is the owner or lessee, as the case may be, of certain premises located at APN 0349-191-08, , CA, further described as follows: See Preliminary Report/Commitment No. for full legal description (the "Land"). b.Declarant is the ______________________________ of ____________________________________ ("Owner"), which is the owner or lessee, as the case may be, of certain premises located at APN 0349- 191-08, , CA, further described as follows: See Preliminary Report/Commitment No. for full legal description (the "Land"). 2.(Fill in the applicable paragraph and strike the other) a.During the period of six months immediately preceding the date of this declaration no work has been done, no surveys or architectural or engineering plans have been prepared, and no materials have been furnished in connection with the erection, equipment, repair, protection or removal of any building or other structure on the Land or in connection with the improvement of the Land in any manner whatsoever. b.During the period of six months immediately preceding the date of this declaration certain work has been done and materials furnished in connection with _________________________ upon the Land in the approximate total sum of $__________, but no work whatever remains to be done and no materials remain to be furnished to complete the construction in full compliance with the plans and specifications, nor are there any unpaid bills incurred for labor and materials used in making such improvements or repairs upon the Land, or for the services of architects, surveyors or engineers, except as follows: ___________________________________________. Owner, by the undersigned Declarant, agrees to and does hereby indemnify and hold harmless Chicago Title Company against any and all claims arising therefrom. 3.Owner has not previously conveyed the Land; is not a debtor in bankruptcy (and if a partnership, the general partner thereof is not a debtor in bankruptcy); and has not received notice of any pending court action affecting the title to the Land. 4.Except as shown in the above-referenced Preliminary Report/Commitment, there are no unpaid or unsatisfied mortgages, deeds of trust, Uniform Commercial Code financing statements, regular assessments, special assessments, periodic assessments or any assessment from any source, claims of lien, special assessments, or taxes that constitute a lien against the Land or that affect the Land but have not been recorded in the public records. There are no violations of the covenants, conditions and restrictions as shown in the above-referenced Preliminary Report/Commitment. 5.The Land is currently in use as _____________________; _______________________ occupy/occupies the Land; and the following are all of the leases or other occupancy rights affecting the Land: ___________________________________________________________________________________ 6.There are no other persons or entities that assert an ownership interest in the Land, nor are there unrecorded easements, claims of easement, or boundary disputes that affect the Land. 7.There are no outstanding options to purchase or rights of first refusal affecting the Land. 8.Between the most recent Effective Date of the above-referenced Preliminary Report/Commitment and the date of recording of the Insured Instrument(s), Owner has not taken or allowed, and will not take or allow, any action or inaction to encumber or otherwise affect title to the Land. This declaration is made with the intention that Chicago Title Company (the "Company") and its policy issuing agents will rely upon it in issuing their title insurance policies and endorsements. Owner, by the undersigned Declarant, agrees to indemnify the Company against loss or damage (including attorneys fees, expenses, and costs) incurred by the Company as a result of any untrue statement made herein. I declare under penalty of perjury that the foregoing is true and correct and that this declaration was executed on ______ at _________________________________. Signature:________________________________ 31.c Packet Pg. 692 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Owner’s Declaration Printed: 6/27/2017 2:26 PM by RY5 MISC0220 (DSI Rev. 10/17/17)Page 3 Escrow No.:00131657-987-OC1 31.c Packet Pg. 693 Attachment: Attachment 3 - Water Board Staff Report including Appraisal Report (7241 : Resolution Declaring Glen Helen Road Property as Page 1 Request for Future Meeting City of San Bernardino Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Requests Full Report on the Process to Restrict Truck Routes 32 Packet Pg. 694 Page 1 Request for Future Meeting City of San Bernardino Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Direction to Develop a Policy Regarding Appointments to Boards and Commissions 33 Packet Pg. 695 Page 1 Request for Future Meeting City of San Bernardino Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Fred Shorett, Council Member, Ward 4 Subject: Amend the Charter to Remove the Position of the Mayor as a Full-Time Elected Official 34 Packet Pg. 696 Page 1 Request for Future Meeting City of San Bernardino Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Fred Shorett, Council Member, Ward 4 Subject: Public Comments and Comments by Council Members from the Dais at Council Meetings 35 Packet Pg. 697 Page 1 Request for Future Meeting City of San Bernardino Date: April 7, 2021 To: Honorable Mayor and City Council Members From: Ben Reynoso, Council Member, Ward 5 Subject: Citywide Warehouse Moratorium 36 Packet Pg. 698