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Home My WebLink About02-19-2024 Final Agenda PacketMayor and City Council of the City of San Bernardino Page 1 CITY OF SAN BERNARDINO AGENDA FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING AUTHORITY WEDNESDAY, FEBRUARY 19, 2025 3:00 PM CLOSED SESSION 5:00 PM OPEN SESSION FELDHEYM CENTRAL LIBRARY • 555 W 6TH STREET, SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez Helen Tran Dr. Treasure Ortiz COUNCIL MEMBER, WARD 1 COUNCIL MEMBER, WARD 7 MAYOR Sandra Ibarra Tanya Romo COUNCIL MEMBER, WARD 2 ACTING CITY MANAGER Juan Figueroa Sonia Carvalho COUNCIL MEMBER, WARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha MAYOR PRO TEM, WARD 4 CITY CLERK Kim Knaus COUNCIL MEMBER, WARD 5 Mario Flores COUNCIL MEMBER, WARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino PLEASE VIEW THE LAST PAGES OF THE AGENDA FOR PUBLIC COMMENT OPTIONS, OR CLICK ON THE FOLLOWING LINK: TINYURL.COM/MCCPUBLICCOMMENTS PLEASE CONTACT THE CITY CLERK'S OFFICE (909) 3845002 TWO WORKING DAYS PRIOR TO THE MEETING FOR ANY REQUESTS FOR REASONABLE ACCOMMODATIONS To view PowerPoint presentations, written comments, or any revised documents for this meeting date, use this link: tinyurl.com/agendabackup. Select the corresponding year and meeting date folders to view documents. Mayor and City Council of the City of San Bernardino Page 2 CALL TO ORDER Attendee Name Council Member, Ward 1 Theodore Sanchez Council Member, Ward 2 Sandra Ibarra Mayor Pro Tem, Ward 3 Juan Figueroa Council Member, Ward 4 Fred Shorett Council Member, Ward 5 Kim Knaus Council Member, Ward 6 Mario Flores Council Member, Ward 7 Dr. Treasure Ortiz Mayor Helen Tran Acting City Manager Tanya Romo City Attorney Sonia Carvalho City Clerk Genoveva Rocha 3:00 P.M. CLOSED SESSION PUBLIC COMMENT CLOSED SESSION p. 15 A) CONFERENCE WITH LEGAL COUNSEL EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): i) Maria Segura, as Successor in interest to Nicholas Segura, et al. v. City of S.B., United States District Court Case No. 5:22cv00277JGBSP. Ninth Circuit Court of Appeal Docket No. 242445 B) PUBLIC EMPLOYEE APPOINTMENT AND PERFORMANCE EVALUATION PROCESS (Criteria, Timing, Goal Setting, and Other Preliminary Matters) Titles: City Attorney, City Clerk, City Manager C) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representative: City Manager Employee Organization: General Unit – Teamsters Local 1932, Management Confidential Group – SBCMA, Mid Management Unit – Teamsters Local 1932, Police Dispatch Unit – SBPDA, Police General Unit – AFSCME District Council 36, Police Management Unit – PMA and Police Safety Unit – SBPOA D) PUBLIC EMPLOYEE APPOINTMENT Title: Interim City Manager 5:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE Mayor and City Council of the City of San Bernardino Page 3 CLOSED SESSION REPORT PRESENTATIONS 1. Recognition of the Public Works Engineering Team for Engineer’s Week 2025 in the City of San Bernardino (All Wards) p. 16 2. Recognition of Sponsors for the 2025 San Bernardino Lunar New Year Cultural Celebration (All Wards) p. 17 PUBLIC HEARING 3. Development Code Amendment 2406 (All Wards) p. 28 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Introduce for first reading, read by title only, and waive further reading of Ordinance No. MC1648 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 2406 amending Chapter 19.02.050 (Basic ProvisionsDefinitions) to update the City of San Bernardino Development Code (SBMC Title 19) definitions for Neighborhood Grocery Stores/Supermarkets to align with state and industry standards; and finding such action statutorily exempt from the California Environmental Quality Act under Public Resources Code Section 21080.17 (Attachment 1); and 2. Schedule the adoption of Ordinance No. MC1648 to the regularly scheduled meeting of the Mayor and City Council on March 5, 2025. 4. Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) (All Wards) p. 84 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a Public Hearing to obtain citizens’ comments on the proposed Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) initiative. 2. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the administration of the ERF3 program. 5. Public Hearing on Annexation No. 49 to Community Facilities District 20191 (Maintenance Services) – Watt EV (Ward 3) P. 119 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2025232 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 20191 (Maintenance Services) (Annexation No. 49); and Mayor and City Council of the City of San Bernardino Page 4 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2025233 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019 1 (Maintenance Services) (Annexation No. 49); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC1650 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC1522 and levying special taxes to be collected during Fiscal Year 20242025 to pay annual costs of the maintenance and servicing of lighting, street, and trail maintenance, and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 20191 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC1650 for March 5, 2025. 6. Public Hearing on Annexation No. 50 to Community Facilities District 20191 (Maintenance Services) – Chipotle (Ward 1) p. 173 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2025230 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 20191 (Maintenance Services) (Annexation No. 50); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2025231 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 20191 (Maintenance Services) (Annexation No. 50); and Introduce, read by title only, and waive further reading of Ordinance No. MC 1646 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC1522 and levying special taxes to be collected during Fiscal Year 20242025 to pay annual costs of the maintenance and servicing of landscaping, lighting, streets, drainage, and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 20191 (Maintenance Services);and 5. Schedule the adoption of Ordinance No. MC1646 for March 5, 2025. CITY MANAGER UPDATE PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA Mayor and City Council of the City of San Bernardino Page 5 CONSENT CALENDAR 7. Accept a $5,000 OneTime Scholarship from Best Friends Animal Society (All Wards) p. 227 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025234: 1. Authorizing the Department of Animal Services to accept a onetime scholarship in the amount of $5,000 from Best Friends Animal Society to subsidize the cost of registration and allow staff to attend the 2025 Best Friends National Conference; and 2. Authorizing the Director of Finance and Management Services to amend the FY 2024/25 Budget to appropriate $5,000 of the scholarship funding in both revenues and expenditures for conference attendance. 8. HOME Investment Partnership Program – Owner Occupied Rehabilitation Program Subrecipient Agreement with Neighborhood Partnership Housing Services, Inc. (All Wards) p. 235 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the HOME Investment Partnership Agreement Owner Occupied Rehabilitation Program Subrecipient Agreement between the City and Neighborhood Partnership Housing Services, Inc. for $920,000; and 2. Authorize the City Manager or designee to take further actions and execute any additional documents, including future amendments, to effectuate the agreements. 9. Adoption of Ordinance No. MC1646 (Annexation No. 47 Dutch Bros)(Ward 3) p. 471 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC1646 amending Ordinance No. MC1522 and levying special taxes to be collected during Fiscal Year 20242025 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 20191 (Maintenance Services). 10. Review of Administrative Budget Transfers From October 1, 2024 Through December 31, 2024 (All Wards) p. 481 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and file all listed administrative budget transfers from October 1, 2024 through December 31, 2024. 11. Approval of Commercial and Payroll Disbursements and Purchase Card Transactions for November 2024 (All Wards) p. 490 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California review and file all listed administrative budget transfers from October 1, 2024, through December 31, 2024. Mayor and City Council of the City of San Bernardino Page 6 12. Investment Portfolio Report for November 2024 (All Wards) p. 585 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 November 2024. 13. Resolutions updating the Bank and Investment Account Signature Authority (All Wards) p. 618 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, and the Mayor and City Council of the City of San Bernardino, California acting in its capacity as the Successor Agency to the former Redevelopment Agency of the City of San Bernardino adopt the attached Resolutions updating the City’s and Successor Agency’s bank and investment account signature authority. 14. Award of Task Order with Rick Engineering for a Raised Median Installation on Rialto Ave at Metrolink Railroad Crossing in the amount of $59,590 (Ward 3 & 6) p. 651 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the award of a Task Order with Rick Engineering in the amount of $59,590 for the Raised Median Installation on Rialto Ave at Metrolink Railroad Crossing (Project); and 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $5,959. 3. Authorize the City Manager or designee to execute all documents with Rick Engineering; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 15. Recommendation to Increase the Project Budget for the Police Building Management System in the amount of $42,398.00 (Ward 1) p. 675 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2025246: 1. Authorizing the Director of Finance and Management Services to amend the FY 2024/25 CIP Budget with an additional $42,398.00 for the Police Building Management System Project using the Law Enforcement Facilities Fund balance; and 2. Authorizing the Director of Finance and Management Services to increase the construction contingency and construction management budget from $39,450.00 to the total amount of $43,304.00; and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Mayor and City Council of the City of San Bernardino Page 7 16. Award a Design Services Agreement to Bell Design Group for the Norman F. Feldheym Public Library Improvement Project in the amount of $319,000 (Ward 1) p. 728 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the award of a Design Services Agreement with Bell Design Group in the amount of $319,000.00 for Norman F. Feldheym Public Library Improvement (Project); and 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $31,900.00. 3. Authorize the City Manager or designee to execute all documents with Bell Design Group; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 17. Award Task Order with Willdan Engineering for the Traffic Calming Measures on 28th Street in the amount of $59,500 (Ward 7) p. 800 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the award of a Task Order with Willdan Engineering in the amount of $59,500 for the Traffic Calming Measures on 28th Street (Project); and 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $5,950. 3. Authorize the City Manager, Public Works Director or City Engineer to execute all documents with Willdan Engineering; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 18. Adoption of Ordinance No. MC1647 (Annexation 48 Piedmont Park Estates) (Ward 4) p. 812 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC1647 amending Ordinance No. MC1522 and levying special taxes to be collected during Fiscal Year 20242025 to pay the annual costs of the maintenance and servicing of lighting, streets, parks, graffiti abatement and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 20191 (Maintenance Services). Mayor and City Council of the City of San Bernardino Page 8 19. Acceptance of FY 2024 Edward Byrne Justice Assistance Grant (All Wards) p. 822 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025245 authorizing: 1. The City Manager to accept the 2024 Edward Byrne Justice Assistance Grant; and 2. The Director of Finance and Management Services to amend the FY24/25 Adopted Budget by $181,099.00 in both revenue and expenditure of grant funds. 20. Amendments to Professional Services Agreements for Legal Services (All Wards) p. 834 Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California authorize the City Manager or their designee to execute: 1. Second Amendment to the Professional Services Agreement with Graves & King for representation in the Mark Detinne, et al. v. City of San Bernardino, et al. San Bernardino Superior Court Case No. CIVDS 2016739 increasing the nottoexceed amount from $150,000 to $350,000. 2. Fourth Amendment to the Professional Services Agreement with Atkinson, Andelson, Loya, Ruud & Romo for the provision of legal services in connection with the case entitled Brian Pellis, et al. v. City of San Bernardino, et al US District Court Case No. CIVSB 2226731 increasing the nottoexceed amount from $450,000 to $950,000. 3. Fifth Amendment to the Professional Services Agreement with Lynberg and Watkins for the representation in the Gary Saenz, et al. v. City of San Bernardino et al., San Bernardino Superior Court Case No. CIVDS2003802 increasing the nottoexceed amount from $225,000 to $241,859.69. 4. Second Amendment to the Professional Services Agreement with Lawrence, Beach, Allen & Choi, for representation in the Maria Segura, as successor in interest to Nicholas Segura, et al. v. City of San Bernardino, US District Court Case No. 8:23cv00786HDVDFM increasing the nottoexceed amount from $100,000 to $200,000. Mayor and City Council of the City of San Bernardino Page 9 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 21. Presentation of Community Choice Aggregation (CCA) (All Wards) – Mayor Pro Tempore Figueroa p. 904 MAYOR & CITY COUNCIL UPDATES/REPORTS ON CONFERENCES & MEETINGS ADJOURNMENT The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on March 05, 2025 at the Feldheym Central Library located at 555 West 6th Street, San Bernardino, California 92401. Closed Session will begin at 4:00 p.m. and Open Session will begin at 5:00 p.m. Mayor and City Council of the City of San Bernardino Page 10 CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the February 19, 2025, 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 Feldheym Central Library located at 555 West 6th Street, San Bernardino, California, and on the City's website sbcity.org on Friday, February 14, 2025. I declare under the penalty of perjury that the foregoing is true and correct. Mayor and City Council of the City of San Bernardino Page 11 NOTICE: 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 on the agenda, 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 during the period reserved for public comments. In accordance with Resolution No. 201889 adopted by the Mayor and City Council on March 21, 2018, the following are the rules set forth for Public Comments and Testimony: Public Comments and Testimony: Rule 1. Public comment shall be received on a first come, first served basis. If the presiding officer determines that the meeting or hearing may be lengthy or complicated, the presiding officer may, in his or her discretion, modify these rules, including the time limits stated below. Rule 2. All members of the public who wish to speak shall fill out a speaker' s reservation card and turn in the speaker reservation card to the City Clerk prior to the time designated on the agenda. Comments will be received in the order the cards are turned in to the City Clerk. Failure of a person to promptly respond when their time to speak is called shall result in the person forfeiting their right to address the Mayor and City Council. Rule 3. The presiding officer may request that a member of the public providing comment audibly state into the microphone, if one is present, his or her name and address before beginning comment. If that person is representing a group or organization the presiding officer may request that the speaker identify that group or organization, including that group or organization' s Address. Rule 4. Notwithstanding the provisions of Rule 2 and 3 above, a person shall not be required to provide their name or address as a condition of speaking. Rule 5. Time Limits: 5. 01 Each member of the public shall have a reasonable time, not to exceed three ( 3) minutes per meeting, to address items on the agenda and items not on the agenda but within the subject matter jurisdiction of the Mayor and City Council. 5. 02 Notwithstanding the time limits set forth in subsection 5. 01 above, any member of the public desiring to provide public testimony at a public hearing shall have a reasonable time, not to exceed ( 3) minutes, to provide testimony during each public hearing. Mayor and City Council of the City of San Bernardino Page 12 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 threeminute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to "share" his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. Mayor and City Council of the City of San Bernardino Page 13 ALTERNATE MEETING VIEWING METHOD: If there are any technical issues with the live stream or recording from the main agenda portal or if you require an option with Closed Captioning, you may view the meeting from the following location (TV3). https://reflectsanbernardino.cablecast.tv/CablecastPublicSite/watch/1?channel=6 PUBLIC COMMENT OPTIONS Please use ONE of the following options to provide a public comment: Written comments can be emailed to publiccomments@sbcity.org. Written public comments received up to 1:30 p.m. on the day of the meeting (or otherwise indicated on the agenda) will be provided to the Mayor and City council and made part of the meeting record. Written public comments will not be read aloud by city staff. Written correspondence can be accessed bythe public online at tinyurl.com/agendabackup . Attend the meeting in person and fill out a speaker slip. Please note that the meeting Chair decides the cutoff time for public comment, and the time may vary per meeting. If you wish to submit your speaker slip in advance of the meeting, please submit your request to speak using the form on the following page: tinyurl.com/mccpubliccomments. Any requests to speak submitted electronically after the 1:30 p.m. deadline will not be accepted. Please note: messages submitted via email and this page are only monitored from the publication of the final agenda until the deadline to submit public comments. Please contact the City Clerk at 9093845002 or SBCityClerk@sbcity.org for assistance outside of this timeframe. Written correspondence submitted after the deadline will be provided to the Mayor and City Council at the following regular meeting. MEETING TIME NOTE: Pursuant to Resolution No. 2024029, adopted by the Mayor and City Council on February 21, 2024: “Section 3. All meetings are scheduled to terminate at 10:00 P.M. on the same day it began. At 9:00 P.M., the Mayor and City Council shall determine which of the remaining agenda items can be considered and acted upon prior to 10:00 P.M. and will continue all other items on which additional time is required until a future Mayor and City Council meeting. A majority vote of the Council is required to extend a meeting beyond 10:00 P.M. to discuss specified items.” Mayor and City Council of the City of San Bernardino Page 14 This page was intentionally left blank. 2 5 8 7 CLOSED SESSION City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Sonia Carvalho, City Attorney; Tanya Romo, Acting City Manager Department:City Manager's Office Subject:Closed Session Recommendation: A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): i) Maria Segura, as Successor in interest to Nicholas Segura, et al. v. City of S.B., United States District Court Case No. 5:22-cv-00277-JGB-SP. Ninth Circuit Court of Appeal Docket No. 24-2445 B) PUBLIC EMPLOYEE APPOINTMENT AND PERFORMANCE EVALUATION PROCESS (Criteria, Timing, Goal Setting, and Other Preliminary Matters) Titles: City Attorney, City Clerk, City Manager C) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representative: City Manager Employee Organization: General Unit – Teamsters Local 1932, Management Confidential Group – SBCMA, Mid Management Unit – Teamsters Local 1932, Police Dispatch Unit – SBPDA, Police General Unit – AFSCME District Council 36, Police Management Unit – PMA and Police Safety Unit – SBPOA D) PUBLIC EMPLOYEE APPOINTMENT Title: Interim City Manager Packet Page.15 PRESENTATIONS City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Lynn Merrill, Director of Public Works Department:Public Works Subject:Recognition of the Public Works Engineering Team for Engineer’s Week 2025 in the City of San Bernardino (All Wards) Packet Page.16 Packet Page.17 PRESENTATIONS City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Helen Tran, Mayor Department:Mayor's Office Subject:Recognition of Sponsors for the 2025 San Bernardino Lunar New Year Cultural Celebration - (All Wards) Packet Page.18 Packet Page.19 Packet Page.20 Packet Page.21 Packet Page.22 Packet Page.23 Packet Page.24 Packet Page.25 Packet Page.26 Packet Page.27 2 4 7 8 PUBLIC HEARING City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Gabriel Elliott, Director of Community Development & Housing Department:Community Development & Housing Subject:Development Code Amendment 24-06 (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Introduce for first reading, read by title only, and waive further reading of Ordinance No. MC-1648 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 24-06 amending Chapter 19.02.050 (Basic Provisions-Definitions) to update the City of San Bernardino Development Code (SBMC Title 19) definitions for Neighborhood Grocery Stores/Supermarkets to align with state and industry standards; and finding such action statutorily exempt from the California Environmental Quality Act under Public Resources Code Section 21080.17 (Attachment 1); and 2. Schedule the adoption of Ordinance No. MC-1648 to the regularly scheduled meeting of the Mayor and City Council on March 5, 2025. Executive Summary Approval of Amendment 24-06 to update Chapter 19.02.050 (Definitions) in the City of San Bernardino Development Code, aligning the definitions of Neighborhood Grocery Stores and Supermarkets with state and industry standards. Neighborhood Grocery Stores will now be classified as those between 5,001 and 10,000 square feet, while anything over 10,000 square feet will be considered a Supermarket. Background The City of San Bernardino Development Code currently classifies Neighborhood Grocery Stores as 5,001 to 15,000 square feet and anything over 15,000 square feet as a full-service Supermarket. Industry standards, however, define full-service Packet Page.28 2 4 7 8 Supermarkets as being 10,000 square feet and above. This discrepancy disadvantages operators of 10,000 to 15,000 square foot stores within the City of San Bernardino. Approving Development Code Amendment 24-06 will align the definitions with industry standards, leveling the playing field for local City retailers. On December 12, 2024, at a duly noticed public hearing the City of San Bernardino Planning Commission approved Resolution 2024-049 (Attachment 3) to recommend Development Code Amendment 24-06 to the Mayor and City Council for final action. Public Hearing Noticing February 8, 2025: Legal advertisement was published in the San Bernardino Sun Newspaper and Proof of Publication was sent back to the City of San Bernardino on February 12, 2025. Discussion The average size of a grocery store has decreased over the years from approximately 40,000 square feet, to about 12,000 to 20,000 square feet which is reflected in some popular outlets like Trader Joe's and Aldi. (see references). According to Health and Safety Code Section 113948 (e)(3), a grocery store is defined as a store primarily engaged in the retail sale of sundry items, including any area within the store that is not a separate business within the store, where food is prepared and served, such as a bakery, deli, and meat/seafood counter (see references). Per Senate Bill 1383, a grocery store is defined as a food service distributor that is at least 10,000 square feet. These operators are subject to a robust food recovery program, mandated to send the maximum amount of edible food they would otherwise dispose of, to food recovery organizations, or face fines and penalties. If the State recognizes anything over 10,000 square feet as a full-service grocery store subject to penalties and fines, then the City of San Bernardino Development Code should align with these standards (see references). The Table below shows an outline of comparisons: Category City Of San Bernardino Definition Industry Standard Neighborhood Grocery Store 5,001 - 15,000 square feet Under 10,000 square feet Supermarket/Grocery Store Over 15,000 square feet 10,001 square feet and above Discrepancy Impact Operators of stores between 10,000 and 15,000 square feet are disadvantaged None Proposed Development Code Amendment 24-06 Aligns with industry standards Aligns with industry standards Expected Benefit Competing on equal footing helps retain viable businesses in SB Attracts more viable business Proposed Amendment In order to update the City of San Bernardino Development Code (SBMC Title 19) definitions for Neighborhood Grocery Stores/Supermarkets to align with state and industry standards, this amendment will update Section 19.02.050 (Basic Provisions-Definitions). Packet Page.29 2 4 7 8 The attached exhibit (Attachment 2) includes the specific changes proposed for adoption into the Development Code. Implementation This ordinance will become effective 30 days following final adoption by the Mayor and City Council. General Plan Goals and Policies The City of San Bernardino General Plan includes goals and policies to guide future development, as follow: 2.10 Actively apply, enforce, and utilize the General Plan in the day-to-day activities of the City. By adopting Development Code Amendment 24-04 the General Plan definition for a Supermarket/Grocery Store would be updated to align with Industry and State standards. 2021-2025 Strategic Targets and Goals Development Code Amendment 24-06 aligns with Key Target Goal No. 4(b): Economic Growth & Development - Update the General Plan and Development Code. Specifically, the amendment to the City of San Bernardino Development Code for Chapter 19.02.050 (Basic provisions-Definitions) proposed under Development Code Amendment 24-06 will ensure that the City’s Development Code is consistent with the City’s General Plan. Fiscal Impact No fiscal impact associated with this item Conclusion It is recommended the Mayor and City Council of the City of San Bernardino California: 1. Introduce for first reading, read by title only, and waive further reading of Ordinance No. MC-1648 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 24-06 amending Chapter 19.02.050 (Basic Provisions-Definitions) to update the City of San Bernardino Development Code (SBMC Title 19) definitions for Neighborhood Grocery Stores/Supermarkets to align with state and industry standards; and finding such action statutorily exempt from the California Environmental Quality Act under Public Resources Code Section 21080.17 (Attachment 1); and 2. Schedule the adoption of Ordinance No. MC-1648 to the regularly scheduled meeting of the Mayor and City Council on March 5, 2025. Attachments Attachment 1 Ordinance MC-1648 Attachment 2 DCA Exhibit Attachment 3 Resolution 2024-049-PC approval Attachment 4 How is the grocery store footprint changing L.E.D. Attachment 5 SB 1383 Guidance for Jurisdictions Packet Page.30 2 4 7 8 Attachment 6 Retail food Code Legalinfo.legislature.ca.gov Attachment 7 Grocery Store-Supermarket Definition Law Insider Attachment 8 Presentation Ward: All Wards Synopsis of Previous Council Actions: No Previous Council Action. Packet Page.31 ORDINANCE NO. MC-1648 1 ORDINANCE NO. MC-1648 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING DEVELOPMENT CODE AMENDMENT 24-06, AMENDING SECTION 19.02.020 (DEFINITIONS) OF THE CITY OF SAN BERNARDINO MUNICIPAL CODE (TITLE 19) TO UPDATE THE DEFINITIONS FOR NEIGHBORHOOD GROCERY STORES/SUPERMARKETS TO ALIGN WITH STATE AND INDUSTRY STANDARDS; AND FINDING THAT DEVELOPMENT CODE AMENDMENT 24-06 IS EXEMPT FROM REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA). WHEREAS, the last comprehensive update to the City's Development Code (Title 19) was adopted in May 1991; and WHEREAS, Development Code Amendment 24-06 is a City-initiated amendment to Section 19.02.50 (Basic Provisions - Definitions) of the City of San Bernardino Development Code (SBMC Title 19) to update the definitions of Neighborhood Grocery Stores/Supermarkets to align with state and industry standards; and WHEREAS, the Planning Division of the Community Development and Housing Department has reviewed Development Code Amendment 24-06 for consistency with the City of San Bernardino General Plan, and compliance with the City of San Bernardino Development Code; and WHEREAS, the Planning Division of the Community Development and Housing Department has prepared Development Code Amendment 24-06 to be consistent with the City of San Bernardino General Plan, compliance with the City of San Bernardino Municipal Code, and compliance with the City of San Bernardino Development Code; and WHEREAS, pursuant to requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community Development and Housing Department evaluated Development Code Amendment 24-06 and determined that it is exempt from CEQA under Section 15061(b)(3) (Review for Exemption); and WHEREAS, on December 10, 2024 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 2024-049 recommending to the Mayor and City Council the approval of Development Code Amendment 24-06 Section 19.02.50 (Basic Provisions - Definitions) of the City of San Bernardino Development Code (SBMC Title 19) to update the definitions of Neighborhood Grocery Stores/Supermarkets to align with state and industry standards; and WHEREAS, notice of the February 19, 2025 public hearing for the Mayor and City Council's consideration of Development Code Amendment 24-06 was published in The Sun Packet Page.32 ORDINANCE NO. MC-1648 2 newspaper on February 8, 2025, in accordance with Development Code Chapter 19.52 (Hearing and Appeals); and WHEREAS, pursuant to the requirements of Chapters 19.52 (Hearing and Appeals) and Chapter 19.42 (Development Code Amendments) of the City of San Bernardino Development Code, the Mayor and City Council have the authority to act on Development Code Amendment 24-06. NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein. SECTION 2.Compliance with the California Environmental Quality Act. The Mayor and City Council having independently reviewed and analyzed the record before it, including written and oral testimony, and having exercised their independent judgment, finds that there is no substantial evidence supporting a fair argument that approval of Development Code Amendment 24-06 and this Ordinance No. MC-1648 will result in a significant effect on the environment, and thus the project is exempt pursuant to Section 15061(b) of the California Environmental Quality Act guidelines due to the fact that the activity does not result in a direct or reasonably foreseeable indirect physical change in the environment. SECTION 3.Finding of Facts – Development Code Amendment 24-06 Finding No. 1:The proposed amendment is consistent with the General Plan. Finding of Fact:General Plan Goals and Policy 2.10 States “Actively apply, enforce, and utilize the General Plan in the day-to-day activities of the City.” By adopting Development Code Amendment 24-06 the definition for a Neighborhood Grocery Store/Supermarket would be updated to align with Industry and State standards. 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 proposed amendment is operational in procedure and would allow operators of stores within the City of San Bernardino containing 10,000 square feet or more, the same opportunities as a competitor in a different jurisdiction that would follow the modern industry standards definition for a Neighborhood Grocery Store/Supermarket. SECTION 4.Adoption of Ordinance. Development Code Amendment 24-06 to amend Section 19.02.50 (Basic Provisions - Definitions) of the City of San Bernardino Development Code (SBMC Title 19) to update the definitions of Neighborhood Grocery Stores/Supermarkets to align Packet Page.33 ORDINANCE NO. MC-1648 3 with state and industry standards attached hereto and incorporated herein by reference as Exhibit “A”, is hereby approved. SECTION 5.Notice of Exemption: The Planning Division of the Community Development and Housing Department is hereby directed to file a Notice of Exemption with the County Clerk of the County of San Bernardino within five (5) working days of final approval certifying the City’s compliance with the California Environmental Quality Act in approving Development Code Amendment 24-06. SECTION 6.Severability: If any section, subsection, subdivision, sentence, clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 7.Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. SECTION 8.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 __________, 2025. __________________________________ Helen Tran, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney Packet Page.34 ORDINANCE NO. MC-1648 4 CERTIFICATION STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO CITY OF SAN BERNARDINO I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1648, introduced on February 19, 2025 and adopted by the City Council of the City of San Bernardino, California, at a regular meeting held on the___day of ___, 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2025. ______________________________ Genoveva Rocha, CMC, City Clerk Packet Page.35 Packet Page.36 Packet Page.37 Packet Page.38 Packet Page.39 Packet Page.40 Packet Page.41 Packet Page.42 Packet Page.43 Packet Page.44 Packet Page.45 Packet Page.46 Packet Page.47 Packet Page.48 Packet Page.49 Packet Page.50 Packet Page.51 Packet Page.52 Packet Page.53 Packet Page.54 Packet Page.55 Packet Page.56 Packet Page.57 Packet Page.58 Packet Page.59 Packet Page.60 Packet Page.61 Packet Page.62 Packet Page.63 Packet Page.64 Packet Page.65 Packet Page.66 Packet Page.67 Packet Page.68 Packet Page.69 Packet Page.70 Packet Page.71 Packet Page.72 Packet Page.73 Packet Page.74 Packet Page.75 Packet Page.76 Packet Page.77 Packet Page.78 Packet Page.79 Packet Page.80 Packet Page.81 Packet Page.82 Packet Page.83 2 5 0 9 PUBLIC HEARING City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager Gabriel Elliott, Director of Community Development & Housing Department:Community Development & Housing Subject:Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a Public Hearing to obtain citizens’ comments on the proposed Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) initiative. 2. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the administration of the ERF3 program. Executive Summary The Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) initiative aims to address homelessness within the 5.2-mile prioritized encampment area along Waterman Avenue by transitioning 60 individuals into permanent housing. This NOFA invites qualified organizations to implement the program through two key components: a Procured Subcontractor, funded at $600,000 to provide housing placement, case management, and landlord engagement, and Rental Assistance and Landlord Incentives, funded at $792,432 to cover security deposits, six months of rent for 60 units, and one-time financial incentives for landlords. By combining housing placement services with direct financial support, the program promotes long-term stability and successful community reintegration. Background The Encampment Resolution Fund (ERF) Program, authorized by Senate Bill (SB) 197 Packet Page.84 2 5 0 9 (Chapter 70, Statutes of 2022) and funded through SB 101 (Chapter 12, Statutes of 2023), was created to address critical needs of unhoused individuals residing in encampments across California. Chronology The California Interagency Council on Homelessness (Cal ICH) released the Notice of Funding Availability (NOFA) for Round 3 on November 27, 2023, with an appropriation of $400 million. On February 1, 2023, the Mayor and City Council unanimously voted to adopt Resolution No.2023-028, declaring a Homelessness State of Emergency in response to a growing statewide and regional homelessness crisis. In December 2023, the City’s outreach team counted approximately 200 people residing in the 5.2-mile prioritized encampment area. The 2023 Homeless Count Report provides concerning insights into the demographic makeup of this population: The encampment population includes individuals, couples, and their animal companions. Addressing their needs necessitates coordinated intervention from both the City and County. On January 30, 2024, the City submitted its application for the Round 3 ERF-3-R program to Cal ICH. This application outlined the City’s strategic approach to addressing homelessness in its most vulnerable areas, specifically focusing on large- scale encampments within a 5.2-mile corridor along Waterman Avenue. On April 18, 2024, the City was notified of its $4,569,511 award. On September 4, 2024, the Mayor and the City Council adopted Resolution 2024-201 reaffirming the declaration of a Homelessness State of Emergency. This restated the City Manager’s powers, allowing them to enter into contracts, pursue grants, and obtain emergency funding from state and federal entities to create additional shelters, add interim housing, and obtain emergency funding as it becomes available. On December 4, 2024, the Mayor and City Council unanimously voted to accept ERF- 3-R funds and approved the City’s plans to launch its ERF3 program which includes hiring additional staff, entering into direct Agreements for interim housing, mobile showers and prevention/diversion services as well as issuing a NOFA for rapid rehousing (RRH). Discussion The purpose of this Public Hearing is to announce the availability of funding and present a PowerPoint to provide an overview of the program, its scope of work, and the eligibility criteria for applicants. The City’s ERF-3 Rapid Rehousing Program outlined in the NOFA seeks to achieve housing stability for 60 individuals through two key components: a procured subcontractor to provide housing placement services and rental assistance with landlord incentives to secure and sustain housing. Packet Page.85 2 5 0 9 The Procured Subcontractor, funded at $600,000 will oversee housing placement services, including case management, housing navigation, landlord engagement, and linkage to supportive resources. This provider will ensure that individuals are placed in housing and receive ongoing support to maintain stability. The Rental Assistance and Landlord Incentives component will provide financial support to facilitate permanent housing placements. Rental subsidies will cover six months of rent and security deposits for 54 one-bedroom units at $1,611 per month and 6 two-bedroom units at $2,010 per month, totaling $693,378. Additionally, landlord incentives will offer one-time financial assistance to property owners—$1,611 per one- bedroom unit and $2,010 per two-bedroom unit—to encourage participation, totaling $99,054. Key Program Details Total Funding Amount: $1,392,432 Procured Subcontractor (Housing Placement Services): $600,000 Rental Subsidies: $693,378 Landlord Incentives: $99,054 Contract Term: Through June 30, 2027 Application Deadline: February 26, 2025, at 3:00 P.M. Eligible Applicants and Evaluation Criteria: The NOFA is open to qualified organizations, including nonprofit organizations, community-based organizations, and entities with demonstrated experience in Rapid Rehousing programs. Applicants must have expertise in securing rental housing, providing rental assistance, delivering case management services, and supporting individuals transitioning to permanent housing. The City will evaluate proposals based on organizational capacity, experience in housing-focused interventions, financial management capabilities, and data management proficiency in systems such as HMIS and CES. Project Timeline and Obligation Deadline: Per the ERF-3 Standard Agreement, all awarded funds must be fully obligated by June 30, 2025. The Rapid Rehousing Program is a structured initiative through June 30, 2027, ensuring compliance with this requirement while maintaining a sustainable transition plan for program participants. Originally designed as a 36-month program, the implementation timeline was impacted by delays in HCD issuing the Standard Rapid Rehousing Total Budget Delivery of Permanent Housing (Procured Subcontractor) $600,000 1 contract Procured subcontractor $600,000 Rapid Rehousing $792,432 54 One-bedroom housing units $608,958 6 Two-bedroom housing units $84,420 60 Placements $99,054 Grand Total $1,392,432 Packet Page.86 2 5 0 9 Agreement. As a result, while the contract term remains through June 30, 2027, the program's operational period has been shortened from its original timeframe. Cost Escalation and Extended Rental Periods: There are no provisions included in this funding allocation to accommodate cost escalations or extended rental periods beyond six months. The program operates within the defined budget and timeframe, requiring strict adherence to the approved financial parameters. Marketing and Outreach Efforts for the NOFA: To ensure broad awareness and accessibility, the NOFA was strategically marketed through multiple outreach channels. It was published for 10 days in both English and Spanish newspapers, specifically in San Bernardino County Sun (English) and El Chicano (Spanish), reaching a diverse audience and ensuring language accessibility. Additionally, it was shared through social media platforms to expand visibility and disseminated via email notifications to the housing and homelessness network, ensuring that key stakeholders, service providers, and potential applicants were informed of the funding opportunity. The NOFA was also shared with the County’s Continuum of Care (CoC) Board and the Central Valley Regional Steering Committee and Homeless Partnership Network. The ERF-3-R grant program emphasizes collaboration, sustained progress, and positive outcomes for unhoused individuals in the 5.2-mile prioritized area. The Rapid Rehousing Program will focus on providing comprehensive services, including: 1. Housing navigation and tenancy support. 2. Case management tailored to individual needs. 3. Landlord engagement and financial incentives. These efforts complement the City’s broader homelessness response strategy, which includes securing permanent and interim housing for 110 individuals in the encampment area. 2021-2025 Strategic Targets and Goals The ERF project aligns with Strategic Target No. 3: Improved Quality of Life, by expanding accessibility to housing and services, improving living conditions for the unhoused population, and positively impacting the community. Fiscal Impact There is no General Fund impact with this item. The Encampment Resolution Fund initiatives will be funded by the $4,569,511 ERF-3-R grant award. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a Public Hearing to obtain citizens’ comments on the proposed the Packet Page.87 2 5 0 9 Notice of Funding Availability (NOFA) for the Rapid Rehousing Program under the Encampment Resolution Fund (ERF) initiative. 2. Authorize the City Manager or designee to take any further actions and execute any further documents as necessary to effectuate the administration of the ERF3 program. Attachments Attachment 1 Notice of Funding Availability (NOFA) ERF-3 Rapid Rehousing Attachment 2 ERF Standard Agreement. Attachment 3 Rapid Rehousing Program - Proof of Notice - English Attachment 4 Rapid Rehousing Program - Proof of Notice - Spanish Ward: All Wards Synopsis of Previous Council Actions: December 4, 2024 Approval of the Encampment Resolution Fund grant in the amount of $4,569,511. January 21, 2025 Release of the NOFA for the Rapid Rehousing Program. Packet Page.88 Packet Page.89 Packet Page.90 Packet Page.91 Packet Page.92 Packet Page.93 Packet Page.94 Packet Page.95 Packet Page.96 Packet Page.97 Packet Page.98 Packet Page.99 Packet Page.100 Packet Page.101 Packet Page.102 Packet Page.103 Packet Page.104 Packet Page.105 Packet Page.106 Packet Page.107 Packet Page.108 Packet Page.109 Packet Page.110 Packet Page.111 Packet Page.112 Packet Page.113 Packet Page.114 Packet Page.115 Packet Page.116 Packet Page.117 Packet Page.118 2 5 1 5 PUBLIC HEARING City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Kenneth Chapa, Director of Economic Development Department:Economic Development Subject:Public Hearing on Annexation No. 49 to Community Facilities District 2019-1 (Maintenance Services) – Watt EV (Ward 3) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2025-232 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 49); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2025-233 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 49); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC-1650 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2024-2025 to pay annual costs of the maintenance and servicing of lighting, street, and trail maintenance, and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and Packet Page.119 2 5 1 5 6. Schedule the adoption of Ordinance No. MC-1650 for March 5, 2025. Executive Summary The recommended actions are the second step of the annexation process for the proposed development into Community Facilities District (CFD) No. 2019-1 (Maintenance Services). The property owner has petitioned the City to annex into the City’s CFD to mitigate it’s impacts for maintenance service of public facilities as a result of the new development. The City Council approved the Resolution of Intention on January 15, 2025, setting today the time and place of the public hearing. The special taxes will be levied annually to offset general fund expenditures related to maintenance of public improvements within and for the benefit of the development. Background On January 15, 2025, the Mayor and City Council adopted Resolution No. 2025-009, a Resolution of Intention to annex territory into Community Facilities District No. 2019- 1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for February 19, 2025, on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on January 16, 2025, at 2:30 p.m. in Book 92 Page 21, Document No. 2025-0011126 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder. The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 4.09 gross acres of zoned commercial property within the City, requesting that the City assist them in annexing their property into CFD No. 2019-1 under the Mello-Roos Act. The proposed project will consist of an electric truck leasing facility. The State legislature enacted the Mello- Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Public lighting and appurtenant facilities, including streetlights within public rights- of-way and traffic signals; and 2. Maintenance of streets, including street sweeping, pavement management and sidewalks; and 3. Maintenance of Trails; and 4. City and County costs associated with the setting, levying and collection of the Packet Page.120 2 5 1 5 special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed area to be annexed into the CFD will be included in Tax Zone 49 and is located at the intersection W Century Ave and S E St, as shown in Attachment #13. The maximum annual special tax for this development has been calculated to be $2,185 per acre for FY 2024/25. Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello- Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, waiving all notice requirements, and waiving word limit requirements for the ballot relating to the conduct of the election. In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted January 15, 2025. Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolutions and the first reading of the amended Ordinance, the adoption of the amended Ordinance would be scheduled for March 5, 2025. Discussion The Resolution of Intention called for a public hearing to be held on February 19, 2025, on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Mayor and City Council may adopt the resolution establishing the CFD. Adoption of Resolution No. 2019-178 on July 17, 2019 established CFD 2019-1, Packet Page.121 2 5 1 5 pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2025-___, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2025-___ declaring the results of the election. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, there will be an annual collection of special tax revenues of approximately $8,940 to be used to pay for maintenance costs within the development. All costs associated with annexation into the CFD have been borne by the Developer. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2025-232 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 49); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2025-233 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 49); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC-1650 of the Mayor and City Council of the City of San Bernardino, California, amending Packet Page.122 2 5 1 5 Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2024-2025 to pay annual costs of the maintenance and servicing of lighting, streets, trails, and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC-1650 for March 5, 2025. Attachments Attachment 1 - Resolution No. 2025-232- Resolution Calling Election Attachment 2 - Exhibit A Description of Territory Attachment 3 - Exhibit B Rate and Method of Apportionment Attachment 4 - Exhibit C Special Election Ballot Attachment 5 - Exhibit D Full Text of Proposition Attachment 6 - Resolution No. 2025-233 - Resolution Declaring Election Results Attachment 7 - Exhibit A Certificate of Election Results Attachment 8 - Ordinance No. MC-1650 Attachment 9 - Exhibit A Description of Services Attachment 10 - Exhibit B Parcel List Attachment 11 – Exhibit E – Signed Petition and Waiver Attachment 12 - PowerPoint Presentation Attachment 13 - Project Map Attachment 14 – Proof of Publication Notice of Public Hearing – CFD 2019-1 Annex 49 Ward: Third Ward Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. Packet Page.123 2 5 1 5 January 15, 2025 Mayor and City Council adopted Resolution No. 2025-009, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. Packet Page.124 Resolution No. 2025-232 Resolution No. 2025-232 February 19, 2025 Page 1 of 6 6 3 2 8 RESOLUTION NO. 2025-232 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 49) WHEREAS, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”), adopted its Resolution No. 2019-081, (the “Resolution of Intention”) (i) declaring its intention to establish Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), commencing with Section 53311 of the California Government Code (the “Government Code”), (ii) proposing to levy a special taxes within CFD No. 2019-1 pursuant to the terms of the Act to fund the cost of providing maintenance services (the “Services”) described in Exhibit B of the Resolution of Intention, and WHEREAS, the City Council set a public hearing for July 17, 2019 after which the Council adopted Resolution No. 2019-178 forming the CFD No. 2019-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2019-1 were submitted to the qualified electors within the CFD No. 2019-1; and WHEREAS, on July 17, 2019, the City Council adopted Resolution No. 2019-179 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on January 15, 2025 duly adopted Resolution No. 2025-009 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019- 1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for February 19, 2025; and WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 49 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on January 16, 2025, in Book 92 of Maps of Assessment and Community Facilities Districts at Page 21, in the office of the San Bernardino County Recorder; and Packet Page.125 Resolution No. 2025-232 Resolution No. 2025-232 February 19, 2025 Page 2 of 6 6 3 2 8 WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on February 19, 2025, not earlier than the hour of 5:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the February 19, 2025 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the Mayor and City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, waiving all notice requirements, and waiving word limit requirements for the ballot relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. 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.Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. SECTION 3.Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of the Packet Page.126 Resolution No. 2025-232 Resolution No. 2025-232 February 19, 2025 Page 3 of 6 6 3 2 8 special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. SECTION 4.Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council, with respect to the annexation of territory to CFD No. 2019-1, are valid and in conformity with the requirements of the Act. SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto. SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California 92410, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1. SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on February 19, 2025, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on December 11, 2024 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1. Packet Page.127 Resolution No. 2025-232 Resolution No. 2025-232 February 19, 2025 Page 4 of 6 6 3 2 8 (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C. The full text of the ballot for said elections shall be set forth in Exhibit D and shall be included in the ballot pamphlet mailed to each qualified elector. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 5:00 p.m. on February 19, 2025. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on February 19, 2025, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office. SECTION 11. The Mayor and 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 12. 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 13. Effective Date. This Resolution shall become effective immediately. Packet Page.128 Resolution No. 2025-232 Resolution No. 2025-232 February 19, 2025 Page 5 of 6 6 3 2 8 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 19th day of February 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.129 Resolution No. 2025-232 Resolution No. 2025-232 February 19, 2025 Page 6 of 6 6 3 2 8 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. 2025-232, adopted at a regular meeting held on the 19th day of February 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2025. Genoveva Rocha, CMC, City Clerk Packet Page.130 Packet Page.131 Packet Page.132 Packet Page.133 Packet Page.134 Packet Page.135 Packet Page.136 Packet Page.137 Packet Page.138 Packet Page.139 Packet Page.140 Packet Page.141 Packet Page.142 Packet Page.143 Packet Page.144 Packet Page.145 Packet Page.146 Packet Page.147 Packet Page.148 Packet Page.149 Packet Page.150 Packet Page.151 Resolution No. 2025-___ Resolution No. 2025- February 19, 2025 1 of 3 RESOLUTION NO. 2025-___ RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA DECLARING ELECTION RESULTS FOR COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 49) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore conducted proceedings for the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1") of the City of San Bernardino, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the Mayor and City Council adopted a Resolution No. 2025-____ calling a special election for February 19, 2025 and submitting to the qualified electors of the territory to be annexed to the CFD No. 2019-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot; and WHEREAS, a Certificate of Election Results, attached thereto as Exhibit A, dated February 19, 2025, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election. 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.Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2019-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code. SECTION 3.Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the Mayor and City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2019-1 with full legal effect, and the Mayor and City Council is also authorized, pursuant to said Packet Page.152 Resolution No. 2025-___ Resolution No. 2025- February 19, 2025 2 of 3 Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2025-009 adopted by the Mayor and City Council on January 15, 2025. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 49 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on January 16, 2025, in Book 92 of Maps of Assessment and Community Facilities Districts at Page 21, in the office of the San Bernardino County Recorder. SECTION 4.Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of San Bernardino an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2019-1 including the annexed territory. SECTION 5. The Mayor and 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 __________ 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.153 Resolution No. 2025-___ Resolution No. 2025- February 19, 2025 3 of 3 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. 2025-___, adopted at a regular meeting held on the ___ day of _______ 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2025. Genoveva Rocha, CMC, City Clerk Packet Page.154 EXHIBIT A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 49 CERTIFICATE OF ELECTION RESULTS I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify: In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated December 11, 2024, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Landowner Qualified Landowner Votes Votes Cast YES NO City of Riverside 5 5 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2025. Genoveva Rocha, CMC City Clerk City of San Bernardino By: (Attach completed copies of Waiver/Consent and Ballot) Packet Page.155 Ordinance No. MC-1650 1 6 3 2 4 ORDINANCE NO. MC-1650 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2024-2025 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LIGHTING, STREETS, AND TRAILS, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019- 1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on February 19, 2025, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the District on the proposition of levying a special tax, and establishing an appropriations limit within the District; and Packet Page.156 Ordinance No. MC-1650 2 6 3 2 4 WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019- 81, attached hereto and by this reference made a part hereof. SECTION 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2024-2025, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3.Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4.Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5.Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2025. Helen Tran, Mayor City of San Bernardino Packet Page.157 Ordinance No. MC-1650 3 6 3 2 4 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.158 Ordinance No. MC-1650 4 6 3 2 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-1650, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 19th day of February, 2025. Ordinance No. MC-1650 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.159 Packet Page.160 Packet Page.161 Packet Page.162 Packet Page.163 Packet Page.164 Packet Page.165 Packet Page.166 Packet Page.167 Packet Page.168 Packet Page.169 Packet Page.170 Packet Page.171 Packet Page.172 2 5 1 7 PUBLIC HEARING City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Kenneth Chapa, Director of Economic Development Department:Economic Development Subject:Public Hearing on Annexation No. 50 to Community Facilities District 2019-1 (Maintenance Services) – Chipotle (Ward 1) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2025-230 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 50); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2025-231 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 50); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC-1646 of the Mayor and City Council of the City of San Bernardino, California, amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2024-2025 to pay annual costs of the maintenance and servicing of landscaping, lighting, streets, drainage, and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and Packet Page.173 2 5 1 7 6. Schedule the adoption of Ordinance No. MC-1646 for March 5, 2025. Executive Summary The recommended actions are the second step of the annexation process for the proposed development into Community Facilities District (CFD) No. 2019-1 (Maintenance Services). The property owner has petitioned the City to annex into the City’s CFD to mitigate it’s impacts for maintenance service of public facilities as a result of the new development. The City Council approved the Resolution of Intention on January 15, 2025, setting today the time and place of the public hearing. The special taxes will be levied annually to offset general fund expenditures related to maintenance of public improvements within and for the benefit of the development. Background On January 15, 2025, the Mayor and City Council adopted Resolution No. 2025-010, a Resolution of Intention to annex territory into Community Facilities District No. 2019- 1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. A public hearing was set for February 19, 2025, on the proposed annexation of the said territory into the community facilities district. As required by the Resolution of Intention, a boundary map was recorded on January 16, 2025, at 2:34 p.m. in Book 92 Page 22, Document No. 2025-3311130 of Maps of Assessment and Community Facilities Districts with the San Bernardino County Recorder. The Resolution of Intention was adopted by the Mayor and City Council in response to a petition filed by the property owner of approximately 0.55 gross acres of zoned Commercial Property within the City, requesting that the City assist them in annexing their property into CFD No. 2019-1 under the Mello-Roos Act. The proposed project will include a drive-thru Chipotle restaurant. The State legislature enacted the Mello- Roos Act in 1982 to assist public agencies in financing certain public improvements by either issuing tax exempt securities that are repaid by annual levy of special taxes, or to provide for the financing of on-going public services. The landowner requested the City annex into CFD No. 2019-1 to levy a special tax to cover the costs associated with the maintenance of public improvements. The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Maintenance of landscaping and other public improvements installed within the public rights-of-way; and 2. Public lighting and appurtenant facilities, including streetlights within public rights- of-way and traffic signals; and 3. Maintenance of streets, including street sweeping, pavement management and sidewalks; and 4. Maintenance and operation of water quality improvements including storm drainage and floor protection facilities; and Packet Page.174 2 5 1 7 5. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed area to be annexed into the CFD will be included in Tax Zone 50 and is located at the northeast corner of G Street and 5th Street, as shown in Attachment #13. The maximum annual special tax for this development has been calculated to be $17,827 for FY 2024/25. Special Tax rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. The property owners have agreed to initiate and conduct the CFD annexation proceedings pursuant to the Mello-Roos Act of 1982. The property owners have submitted a “Consent and Waiver” form on file in the City Clerk’s Office to initiate and conduct proceedings pursuant to the Mello-Roos Act in 1982, for the annexation into the CFD and consenting to the shortening of election time requirements, waiving analysis and arguments, waiving all notice requirements, and waiving word limit requirements for the ballot relating to the conduct of the election. In order to annex property to CFD No. 2019-1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special tax applies only to properties within the annexation area), adopted January 15, 2025. Resolution calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolutions and the first reading of the amended Ordinance, the adoption of the amended Ordinance would be scheduled for March 5, 2025. Discussion The Resolution of Intention called for a public hearing to be held on February 19, 2025, on the issue of the annexation of territory into CFD No. 2019-1. Under the Mello-Roos Act, the Mayor and City Council must hold the public hearing and consider any protests against the formation of the CFD. If the owners of one half or more of the land within the proposed boundaries of the CFD file written protests against the establishment of the CFD, the Council may not create the CFD. If a majority protest is not filed, the Packet Page.175 2 5 1 7 Mayor and City Council may adopt the resolution establishing the CFD. Adoption of Resolution No. 2019-178 on July 17, 2019, established CFD 2019-1, pursuant to the requirements of Government Code Section 53325.1. After a CFD is formed, the Mello-Roos Act requires that for any annexations into the CFD an election be held on the question of whether the proposed special taxes should be levied. The election requires a two-thirds vote in favor of levying the special tax. The landowners filed waivers with respect to the conduct of the election pursuant to Government Code Sections 53326(a) and 53327(b), meaning that the time limits and procedural requirements for conducting an election under the Mello-Roos Act do not have to be followed. Accordingly, City staff has already mailed the election ballots to the landowners and required the ballots to be returned by the close of the public hearing. If the Mayor and City Council adopt Resolution No. 2025-___, it may immediately proceed to the opening of the ballots and adopt Resolution No. 2025-___ declaring the results of the election. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No. 4: Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. It is estimated, upon full completion of the development, there will be an annual collection of special tax revenues of approximately $9,830 to be used to pay for maintenance costs within the development. All costs associated with annexation into the CFD have been borne by the Developer. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Hold a Public Hearing; and 2. Adopt Resolution No. 2025-230 of the Mayor and City Council of the City of San Bernardino, California, calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 50); and 3. Hold a special landowner election and canvass the election; and 4. Adopt Resolution No. 2025-231 of the Mayor and City Council of the City of San Bernardino, California, declaring election results for Community Facilities District No. 2019-1 (Maintenance Services) (Annexation No. 50); and 5. Introduce, read by title only, and waive further reading of Ordinance No. MC- 1649 of the Mayor and City Council of the City of San Bernardino, California, Packet Page.176 2 5 1 7 amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2024-2025 to pay annual costs of the maintenance and servicing of landscaping, lighting, streets, drainage, and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services); and 6. Schedule the adoption of Ordinance No. MC-1649 for March 5, 2025. Attachments Attachment 1 - Resolution No. 2025-230 Resolution Calling Election Attachment 2 - Exhibit A Description of Territory Attachment 3 - Exhibit B Rate and Method of Apportionment Attachment 4 - Exhibit C Special Election Ballot Attachment 5 - Exhibit D Full Text of Proposition Attachment 6 - Resolution No. 2025-231 Resolution Declaring Election Results Attachment 7 - Exhibit A Certificate of Election Results Attachment 8 - Ordinance No. MC-1649 Attachment 9 - Exhibit A Description of Services Attachment 10 - Exhibit B Parcel List Attachment 11 – Exhibit E – Signed Petition and Waiver Attachment 12 - PowerPoint Presentation Attachment 13 - Project Map Attachment 14 – Proof of Publication Notice of Public Hearing – CFD 2019-1 Annex 50 Ward: First Ward Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 201 Final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. Packet Page.177 2 5 1 7 January 15, 2025 Mayor and City Council adopted Resolution No. 2025-010, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. Packet Page.178 Resolution No. 2025-230 Resolution No. 2025-230 February 19, 2025 1 of 6 6 3 4 9 RESOLUTION NO. 2025-230 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, CALLING AN ELECTION TO SUBMIT TO THE QUALIFIED ELECTORS THE QUESTION OF LEVYING A SPECIAL TAX WITHIN THE AREA PROPOSED TO BE ANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 50) WHEREAS, the Mayor and City Council (the “City Council”) of the City of San Bernardino (the “City”), adopted its Resolution No. 2019-081, (the “Resolution of Intention”) (i) declaring its intention to establish Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), commencing with Section 53311 of the California Government Code (the “Government Code”), (ii) proposing to levy a special taxes within CFD No. 2019-1 pursuant to the terms of the Act to fund the cost of providing maintenance services (the “Services”) described in Exhibit B of the Resolution of Intention, and WHEREAS, the City Council set a public hearing for July 17, 2019 after which the Council adopted Resolution No. 2019-178 forming the CFD No. 2019-1 and calling a special election at which the questions of levying a special tax and establishing an appropriations limit with respect to the CFD No. 2019-1 were submitted to the qualified electors within the CFD No. 2019-1; and WHEREAS, on July 17, 2019, the City Council adopted Resolution No. 2019-179 declaring the results of the special election and finding that more than two-thirds (2/3) of all votes cast at the special election were cast in favor of the proposition presented, and such proposition passed; and WHEREAS, the City Council is authorized by Article 3.5 (commencing with Section 53339) of Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code as amended (the "Act"), to annex territory into an existing community facilities district by complying with the procedures set forth in said Article 3.5; and WHEREAS, the City Council on January 15, 2025 duly adopted Resolution No. 2025-010 (the “Resolution of Intention”) declaring its intention to annex certain territory to CFD No. 2019- 1 (Maintenance Services) and to levy a special tax within that territory to pay for certain services and setting a time and place for the public hearing on the proposed annexation for February 19, 2025; and WHEREAS, the territory proposed to be annexed is identified in a map entitled "Annexation Map No. 50 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on January 16, 2025, in Book 92 of Maps of Assessment and Community Facilities Districts at Page 22, in the office of the San Bernardino County Recorder; and Packet Page.179 Resolution No. 2025-230 Resolution No. 2025-230 February 19, 2025 2 of 6 6 3 4 9 WHEREAS, pursuant to the Act and the Resolution of Intention, a noticed public hearing was convened by the City Council on February 19, 2025, not earlier than the hour of 5:00 p.m. at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410, relative to the proposed annexation of said territory to CFD No. 2019-1. At the hearing, the testimony of all interested persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the February 19, 2025 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92410. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002; and WHEREAS, written protests have not been filed by fifty percent (50%) or more of the registered voters residing within the CFD No 2019-1, or by fifty percent (50%) or more of the registered voters residing within the territory to be annexed, or by the owners of one-half (1/2) or more of the area within the CFD No. 2019-1, or by the owners of one-half (1/2) or more of the territory to be annexed; and WHEREAS, the Mayor and City Council has determined that there are fewer than twelve registered voters residing in the territory proposed to be annexed to the CFD No. 2019-1 and that the qualified electors in such territory are the landowners; and WHEREAS, on the basis of all of the foregoing, the City Council has determined at this time to call an election to authorize the annexation of territory to the CFD No. 2019-1 and the levying of a special tax as described in Exhibit A hereto; and WHEREAS, the City Council has received a written instrument from each landowner in the territory proposed to be annexed to the CFD No. 2019-1 consenting to the shortening of election time requirements, waiving analysis and arguments, waiving all notice requirements, and waiving word limit requirements for the ballot relating to the conduct of the election; and WHEREAS, the City Clerk has concurred in the election date set forth herein. 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.Conformation of Finding in Resolution of Intention. The City Council reconfirms all of its findings and determinations as set forth in the Resolution of Intention. SECTION 3.Findings Regarding Protests. The City Council finds and determines that written protests to the proposed annexation of territory to the CFD No. 2019-1 and the levy of the Packet Page.180 Resolution No. 2025-230 Resolution No. 2025-230 February 19, 2025 3 of 6 6 3 4 9 special tax within such territory are insufficient in number and in amount under the Act, and the City Council hereby further orders and determines that all such protests are hereby overruled. SECTION 4.Findings Regarding Prior Proceedings. The City Council finds and determines that all prior proceedings had and taken by the City Council, with respect to the annexation of territory to CFD No. 2019-1, are valid and in conformity with the requirements of the Act. SECTION 5. Levy of Special Tax. As stated in the Resolution of Intention, except where funds are otherwise available, subject to the approval of the qualified electors of territory proposed to be annexed to CFD No. 2019-1, a special tax sufficient to pay the costs of the Services (including incidental expenses as described in the Resolution of Intention), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually in CFD No. 2019-1. The rate and method of apportionment, and manner of collection of the special tax are specified in Exhibit B hereto. SECTION 6. Apportionment of Tax. The special tax as apportioned to each parcel is based on the cost of making the Services available to each parcel, or other reasonable basis, and is not based on or upon the ownership of real property. SECTION 7. Tax Roll Preparation. The office of the Public Works Director, 201 North “E” Street, San Bernardino, California 92410, is hereby designated as the office that will be responsible for annually preparing a current roll of special tax levy obligations by assessor’s parcel number and that will be responsible for estimating future special tax levies pursuant to Government Code section 53340.2. The Public Works Director may cause these functions to be performed by his or her deputies, assistants, or other designated agents. SECTION 8. Accountability Measures. Pursuant to Section 50075.1 of the California Government Code, the City shall create a separate account into which tax proceeds will be deposited; and the Public Works Director annually shall file a report with the City Council that will state (a) the amount of funds collected and expended and (b) the status of the Services financed in CFD No. 2019-1. SECTION 9. Special Election; Voting Procedures. The City Council hereby submits the questions of levying the special tax within the territory proposed to be annexed to the qualified electors, in accordance with and subject to the Act. The special election shall be held on February 19, 2025, and shall be conducted as follows: (a) Qualified Electors. The City Council hereby determines that the Services are necessary to meet increased demands placed upon the City as a result of development occurring within the boundaries of CFD No. 2019-1. Because fewer than twelve registered voters resided within the territory proposed to be annexed to CFD No. 2019-1 on December 11, 2024 (a date within the 90 days preceding the close of the public hearing on the territory proposed to be annexed to CFD No. 2019-1), the qualified electors shall be the landowners within territory proposed to be annexed, and each landowner who was the owner of record at the close of the hearing shall have one vote for each acre or portion of an acre of land that such landowner owns within the territory proposed to be annexed to CFD No. 2019-1. Packet Page.181 Resolution No. 2025-230 Resolution No. 2025-230 February 19, 2025 4 of 6 6 3 4 9 (b) Consolidation of Elections; Combination of Propositions on Ballot. The election on the question of levying the special tax and establishing an appropriations limit for CFD No. 2019-1 shall be consolidated, and the two proportions shall be combined into a single ballot proposition for submission to the voters, as authorized by Government Code Section 53353.5. (c) Mail Ballot Election. Pursuant to Government Code section 53327.5, the election shall be conducted as a mail ballot election. The City Council hereby ratifies the City Clerk’s delivery of a ballot to each landowner within the territory proposed to be annexed to CFD No. 2019-1. The City Council hereby ratifies the form of the ballot, which is attached hereto as Exhibit C. The full text of the ballot for said elections shall be set forth in Exhibit D and shall be included in the ballot pamphlet mailed to each qualified elector. (d) Return of Ballots. The City Clerk shall accept the ballots of the landowners up to 5:00 p.m. on February 19, 2025. The City Clerk shall have available ballots that may be marked at the City Clerk’s office on the election day by voters. Once all qualified electors have voted, the City Clerk may close the election. (e) Canvass of Election. The City Clerk shall commence the canvass of the returns of the special election as soon as the election is closed (on February 19, 2025, or when all qualified electors have voted) at the City Clerk’s office. At the conclusion of the canvass, the City Clerk shall declare the results of the election. (f) Declaration of Results. The City Council shall declare the results of the special election following the completion of the canvass of the returns and shall cause to be inserted into its minutes a statement of the results of the special election as ascertained by the canvass of the returns. SECTION 10. Filing of Resolution and Map with City Clerk. The City Council hereby directs the City Clerk to file a copy of this resolution and the annexation map of the boundaries of CFD No. 2019-1 in her office. SECTION 11. The Mayor and 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 12. 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 13. Effective Date. This Resolution shall become effective immediately. Packet Page.182 Resolution No. 2025-230 Resolution No. 2025-230 February 19, 2025 5 of 6 6 3 4 9 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 19th day of February 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.183 Resolution No. 2025-230 Resolution No. 2025-230 February 19, 2025 6 of 6 6 3 4 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 Resolution No. 2025-230, adopted at a regular meeting held on the 19th day of February 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2025. Genoveva Rocha, CMC, City Clerk Packet Page.184 Packet Page.185 Packet Page.186 Packet Page.187 Packet Page.188 Packet Page.189 Packet Page.190 Packet Page.191 Packet Page.192 Packet Page.193 Packet Page.194 Packet Page.195 Packet Page.196 Packet Page.197 Packet Page.198 Packet Page.199 Packet Page.200 Packet Page.201 Packet Page.202 Packet Page.203 Packet Page.204 Packet Page.205 Resolution No. 2025-231 Resolution No. 2025-230 February 19, 2025 1 of 3 6 3 4 3 RESOLUTION NO. 2025-231 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA DECLARING ELECTION RESULTS FOR COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 50) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore conducted proceedings for the area proposed to be annexed to Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1") of the City of San Bernardino, including conducting a public hearing pursuant to Section 53339.5 of the Government Code; and WHEREAS, at the conclusion of said public hearing, the Mayor and City Council adopted a Resolution No. 2025-230 calling a special election for February 19, 2025 and submitting to the qualified electors of the territory to be annexed to the CFD No. 2019-1 the question of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City as a result of the development of said real property as provided in the form of special election ballot; and WHEREAS, a Certificate of Election Results, attached thereto as Exhibit A, dated February 19, 2025, executed by the City Clerk (or, in the absence of the City Clerk, the Acting City Clerk – in either case, the “Clerk”), has been filed with this Council, certifying that a completed ballot has been returned to the Clerk for each landowner-voter(s) eligible to cast a ballot in said special election, with all votes cast as “Yes” votes in favor of the ballot measure, and further certifying on said basis that the special mailed-ballot election was closed; and WHEREAS, this Council has received, reviewed and hereby accepts the Clerk’s Certificate of Election Results and wishes by this resolution to declare the results of the special mailed-ballot election. 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.Ballot Measure. This Council hereby finds, determines and declares that the ballot measure submitted to the qualified electors of the territory to be annexed to CFD No. 2019-1 has been passed and approved by those qualified electors in accordance with Sections 53328 and 53329 of the Government Code. SECTION 3.Annexation. This Council hereby finds, determines and declares that pursuant to Section 53339.8 of the Government Code, the Mayor and City Council is authorized to determine that the territory to be annexed has been added to and become a part of the CFD No. 2019-1 with full legal effect, and the Mayor and City Council is also authorized, pursuant to said Packet Page.206 Resolution No. 2025-231 Resolution No. 2025-230 February 19, 2025 2 of 3 6 3 4 3 Section 53339.8, to annually levy special taxes within the territory to be annexed to pay the costs of the services to be provided by the CFD No. 2019-1 as specified in Resolution No. 2025-010 adopted by the Mayor and City Council on January 15, 2025. The boundaries of the territory annexed are shown on the map entitled, "Annexation Map No. 50 Community Facilities District No. 2019-1 (Maintenance Services)" a copy of which was recorded, on January 16, 2025, in Book 92 of Maps of Assessment and Community Facilities Districts at Page 22, in the office of the San Bernardino County Recorder. SECTION 4.Notice of Special Tax Lien. Pursuant to Section 53339.8 of the Government Code and Section 3117.5 of the Streets and Highways Code, the City Clerk shall cause to be filed with the County Recorder of the County of San Bernardino an amendment of the notice of special tax lien and a map of the amended boundaries of the CFD No. 2019-1 including the annexed territory. SECTION 5. The Mayor and 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 19th day of February 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.207 Resolution No. 2025-231 Resolution No. 2025-230 February 19, 2025 3 of 3 6 3 4 3 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. 2025-231, adopted at a regular meeting held on the 19th day of February 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2025. Genoveva Rocha, CMC, City Clerk Packet Page.208 EXHIBIT A CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 50 CERTIFICATE OF ELECTION RESULTS I, the undersigned, being the City Clerk or the Acting City Clerk, as the case may be, hereby certify: In connection with the special mailed-ballot election called by the City Council (the “City Council”) of the City of San Bernardino (the “City”) on this same date in the proceedings of the City Council for the annexation of territory to the above-entitled community facilities district, I personally received (a) a signed and dated waiver and consent form and (b) a signed, dated and marked election ballot(s) on behalf of the owner(s) listed below, the entity named as the sole landowner of the land within the boundary of the above-entitled community facilities district in the Certificate Regarding Registered Voters and Landowners, dated December 11, 2024, and on file in the office of the City Clerk of the City in connection with the City Council actions on that date. Copies of the completed waiver and consent form and the completed ballot received by me and on file in my office are attached hereto. Following such receipt, I have personally, and in the presence of all persons present, reviewed the ballot to confirm that it is properly marked and signed, and I hereby certify the result of that count to be that the ballot was cast in favor of the measure. Based upon the foregoing, all votes that were cast having been cast “Yes”, in favor of the ballot measure, the measure has therefore passed. Landowner Qualified Landowner Votes Votes Cast YES NO Gateway SB, LLC 1 1 I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 2025. Genoveva Rocha, CMC City Clerk City of San Bernardino By: (Attach completed copies of Waiver/Consent and Ballot) Packet Page.209 Ordinance No. MC-1649 1 6 3 4 4 ORDINANCE NO. MC-1649 AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ORDINANCE NO. MC-1522 AND LEVYING SPECIAL TAXES TO BE COLLECTED DURING FISCAL YEAR 2024-2025 TO PAY THE ANNUAL COSTS OF THE MAINTENANCE AND SERVICING OF LANDSCAPING, LIGHTING, STREETS, DRAINAGE, A RESERVE FUND FOR CAPITAL REPLACEMENT, AND ADMINISTRATIVE EXPENSES WITH RESPECT TO CITY OF SAN BERNARDINO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) WHEREAS, the Mayor and City Council (the "City Council") of the City of San Bernardino (the "City") has heretofore adopted Resolution No. 2019-81, stating that a community facilities district to be known as "City of San Bernardino Community Facilities District No. 2019- 1 (Maintenance Services), County of San Bernardino, State of California" (the "Community Facilities District"), is proposed to be established under the provisions of Chapter 2,5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the "Mello-Roos Community Facilities Act of 1982" (the "Act"), and fixing the time and place for a public hearing on the formation of the Community Facilities District; and WHEREAS, notice was published and mailed to the owners of the property in the Community Facilities District as required by law relative to the intention of the City Council to establish the Community Facilities District and the levy of the special taxes therein to provide certain services, and of the time and place of said public hearing; and WHEREAS, on February 19, 2025, at the time and place specified in said published and mailed notice, the City Council opened and held a public hearing as required by law relative to the formation of the Community Facilities District, the levy of the special taxes therein and the provision of services by the Community Facilities District; and WHEREAS, at the public hearing all persons desiring to be heard on all matters pertaining to the formation of the Community Facilities District, the levy of the special taxes and the provision of services therein were heard, and a full and fair hearing was held; and WHEREAS, subsequent to said hearing, the City Council adopted resolutions entitled "Resolution of the City Council of the City of San Bernardino Establishing Calling An Election for the Purpose of Submitting the Question of the Levy of the Proposed Special Tax to the Qualified Electors of the Proposed Community Facilities District; Authorizing the Levy of Special Taxes; and Establishing the Appropriations Limit for the Proposed Community Facilities District" (the "Resolution of Formation") which resolution established the Community Facilities District, authorized the levy of a special tax within the District, and called an election within the District on the proposition of levying a special tax, and establishing an appropriations limit within the District; and Packet Page.210 Ordinance No. MC-1649 2 6 3 4 4 WHEREAS, an election was held within the Community Facilities District in which the sole eligible landowner elector approved said propositions by more than the two-thirds vote required by the Act. THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: SECTION 1. Findings. It is necessary that the City Council of the City of San Bernardino levy special taxes pursuant to Sections 53340 of the Government Code to provide and finance the costs of certain types of services, and related costs within the Community Facilities District, including (i) the maintenance and servicing of landscaping, lighting, water quality improvements, streets, street sweeping, and park maintenance, (ii) a reserve fund for capital replacement, and (iii) administrative expenses, all as more completely described in Exhibit "A" to Resolution No. 2019- 81, attached hereto and by this reference made a part hereof. SECTION 2.Levy of Special Taxes. Special taxes shall be and are hereby levied for the Fiscal Year 2024-2025, and each Fiscal Year thereafter, on all parcels of real property within the District which are subject to taxation, which are identified in Exhibit "B" attached hereto. Pursuant to said Section 53340, such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and Lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3.Transmittal to County. The City Clerk shall immediately following adoption of this ordinance transmit a copy hereof to the Board of Supervisors and the County Auditor of the County of San Bernardino together with a request that the special taxes as levied hereby be collected on the tax bills for the parcels identified in Exhibit "B" hereto, along with the ordinary ad valorem property taxes to be levied on and collected from the owners of said parcels. SECTION 4.Authorization to Publish Ordinance. City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. SECTION 5.Effective Date. This ordinance shall become effective thirty (30) days after its adoption. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ____ day of _______, 2025. Helen Tran, Mayor City of San Bernardino Attest: Packet Page.211 Ordinance No. MC-1649 3 6 3 4 4 Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.212 Ordinance No. MC-1649 4 6 3 4 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-1649, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the 19th day of February 2025. Ordinance No. MC-1650 was approved, passed and adopted at a regular meeting held the ____ day of ______, 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of _____, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.213 Packet Page.214 Packet Page.215 Packet Page.216 Packet Page.217 Packet Page.218 Packet Page.219 Packet Page.220 Packet Page.221 Packet Page.222 Packet Page.223 Packet Page.224 Packet Page.225 Packet Page.226 2 5 1 9 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Kris Watson, Director, Animal Services Department:Animal Services Subject:Accept a $5,000 One-Time Scholarship from Best Friends Animal Society (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025-234: 1. Authorizing the Department of Animal Services to accept a one-time scholarship in the amount of $5,000 from Best Friends Animal Society to subsidize the cost of registration and allow staff to attend the 2025 Best Friends National Conference; and 2. Authorizing the Director of Finance and Management Services to amend the FY 2024/25 Budget to appropriate $5,000 of the scholarship funding in both revenues and expenditures for conference attendance. Executive Summary In December of 2024, Best Friends Animal Society contacted the Director of Animal Services to offer a one-time scholarship in the amount of $5,000.00, to subsidize costs and allow staff to attend the 2025 Best Friends National Conference in Palm Springs from February 20th - 22nd, 2025. Given the proximity of this conference to the City of San Bernardino Department of Animal Services, Best Friends Animal Society wanted to ensure that the Department could send as many staff members as possible. The conference registration amount is $425 per person. This one-time scholarship allows the Department to send 11 staff members to the conference by covering the cost of conference registration and mileage. There are no additional expenses to the General Fund for this item. Packet Page.227 2 5 1 9 Background The 2025 Best Friends Animal Society National Conference equips attendees with the latest tools and data-driven techniques to take home and save more lives in their communities. The Best Friends National Conference brings together animal welfare members and volunteers from across the county to gain lifesaving knowledge and practical strategies to fast-track lifesaving at their organizations. Breakout sessions are designed to help the Department staff learn best practices from other shelters in order to start saving more dogs and cats in our community. Presenters speak from diverse backgrounds and all types of organizations, including leaders in advocacy and community engagement, field and animal services, shelter medicine and animal care, fundraising and development, and other animal welfare topics. These topics will provide the Department with new and up-to-date trends in the animal welfare industry. The Department of Animal Services focused on several initiatives in 2024 to help get more pets home. The Department placed extra emphasis on returning animals to owners while still in the field, training contract city officers to properly scan for microchips in the field before impounding animals. The Department partnered with Petco Love Lost and Pawboost to automatically upload all lost and found animals from the shelter to their websites, increasing the visibility of lost pets in our jurisdictions. The Department also offers payment plans and also waives fees for individuals who may have a financial barrier to paying all fees at once to redeem their impounded pet from the shelter. This conference will allow staff to stay relevant with current sheltering trends and help the Department continue to partake in new and exciting initiatives in animal welfare. Discussion Attendance at the 2025 Best Friends Animal Society National Conference will provide staff with the opportunity to gain insight on raising lifesaving funds for the Department and learn how others have increased revenue through giving to help them meet their goals. This topic addresses a powerful trend of getting our community engaged with animal welfare. Animal Control Officers can gain insight into changing our cultural mindset from traditional enforcement approaches focused on imposing rules and regulations to ensure compliance, communities understandably tend to resist and disengage. In contrast, the Department wants to foster an engagement approach that brings communities together by emphasizing relationships, empowering individuals, and fostering collaboration to achieve desired outcomes. This shift in mindset and strategy can create more sustainable and positive impacts, as it encourages active participation, ownership, and mutual respect among everyone involved. Shelter Operations staff will gain a better understanding of pathway planning and population management. Bringing back ideas that work to move animals through the shelter more quickly to a live outcome and learn how others have increased lifesaving by prioritizing population management and reducing length of stay. Staff will be presented with real-world examples and case studies, providing concrete ideas and Packet Page.228 2 5 1 9 inspiration that can be implemented immediately. Community Outreach staff will walk away with a comprehensive understanding of how to strategically use social media to further the Department’s mission, from content creation to community engagement to fundraising. One area the Department is excited to grow in is bridging the gap between Spanish speakers seeking pet-related services but face language or cultural barriers. Staff will learn to build programs with bilingual content ensuring that Spanish speakers feel seen and valued, fostering a more inclusive environment. Lastly, staff will have the opportunity to network and collaborate with shelter management from shelters in our region who face similar animal behavior issues, adoption challenges, rescue network obstacles, special needs populations, medical conditions, disease transmission, community, and wellness operations. Best Friends will be sending the $5,000.00 check to the City for the cost of the conference. The Department will submit the registration receipts to Best Friends and will track attendance of staff at their conference for submission to the grantor. In order to maximize the number of attendees and reduce costs, staff will meet at the shelter and carpool to the conference in City owned vehicles, reducing mileage and travel related expenses. The conference provides food and drinks to attendees, further reducing expenses to the Department. While the Department does not expect to incur costs above the grant amount, there is sufficient funding in the Department‘s existing meetings and conferences budget to absorb any unexpected travel related expenses. 2021-2025 Strategic Targets and Goals The acceptance of this one-time scholarship is consistent with Key Target No. 1: Improved Operational & Financial Capacity, through the opportunity for increased funding which will allow the Department to gain lifesaving knowledge and practical strategies to fast-track lifesaving. The acceptance of this grant also aligns with Key Target No. 3: Improved Quality of Life through community involvement by learning the latest trends in community outreach, lifesaving, shelter medicine and animal care. These programs give the Department an opportunity to educate and engage the community, building trust and increase awareness. Fiscal Impact There is no fiscal impact to the General Fund for this one-time scholarship. The budget for Fiscal Year 2024/2025 will be amended by $5,000 in both revenues and expenditures. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025-234: 1. Authorizing the Department of Animal Services to accept a one-time scholarship in the amount of $5,000 from Best Friends Animal Society to subsidize the cost of registration and allow staff to attend the 2025 Best Friends National Conference; and Packet Page.229 2 5 1 9 2. Authorizing the Director of Finance and Management Services to amend the FY 2024/25 Budget to appropriate $5,000 of the scholarship funding in both revenues and expenditures for conference attendance. Attachments Attachment 1 Resolution No. 2025-234 Attachment 2 Memorandum of Understanding Best Friends Animal Society and San Bernardino City Animal Control Ward: All Wards Synopsis of Previous Council Actions: On January 15th, 2025, the Mayor and City Council adopted Resolution No. 2025-007, authorizing the Department of Animal Services to accept grant funding in the amount of $1,000 from Best Friends Animal Society. On September 18th, 2024, the Mayor and City Council adopted Resolution No. 2024- 202, authorizing the Department of Animal Services to accept grant funding in the amount of $25,000 from Best Friends Animal Society. On November 17th, 2021, the Mayor and City Council adopted Resolution No. 2021- 270, authorizing the Director of Finance to amend the FY 2021/22 budget to transfer $1,500 from the Animal Services Best Friends Revenue Fund to the Animal Services Best Friends Expense account for the purchase of volunteer tracking software for the Department. On May 19th, 2021, the Mayor and City Council adopted Resolution No. 2021-102, accepting a grant award in the amount of $45,000 from Best Friends Animal Society for Animal Shelter Programs and Services. Packet Page.230 Resolution No. 2025-234 Resolution 2025-234 February 19, 2025 Page 1 of 3 6 3 8 1 t e m p I d RESOLUTION NO. 2025-234 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE DEPARTMENT OF ANIMAL SERVICES TO ACCEPT A ONE-TIME SCHOLARSHIP IN THE AMOUNT OF $5,000 FROM BEST FRIENDS ANIMAL SOCIETY TO SUBSIDIZE THE COST OF REGISTRATION AND ALLOW STAFF TO ATTEND THE 2025 BEST FRIENDS NATIONAL CONFERENCE; AND AUTHORIZING THE DIRECTOR OF FINANCE AND MANAGEMENT SERVICES TO AMEND THE FY 2024/25 BUDGET TO APPROPRIATE $5,000 OF THE SCHOLARSHIP FUNDING IN BOTH REVENUES AND EXPENDITURES FOR CONFERENCE ATTENDANCE. WHEREAS, the City of San Bernardino Department of Animal Services has been approved for scholarship funding by Best Friends Animal Society; and WHEREAS, the City is working to gain lifesaving knowledge and practical strategies to fast-track lifesaving; and WHEREAS, the City is working to expand community involvement by learning the latest trends in community outreach, lifesaving, shelter medicine and animal care; and WHEREAS, the scholarship funding would support the City in its 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 Mayor and City Council hereby approves the acceptance of scholarship funds from Best Friend Animal Society in the amount of $5,000 for conference attendance. SECTION 3. The Mayor and City Council hereby authorizes the Director of Finance and Management Services to amend the FY 2024/25 budget to appropriate $5,000 of the scholarship funding in both revenues and expenditures for animal shelter staff conference attendance. SECTION 4.The Mayor and 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. Packet Page.231 Resolution No. 2025-234 Resolution 2025-234 February 19, 2025 Page 2 of 3 6 3 8 1 t e m p I d 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 19th day of February 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.232 Resolution No. 2025-234 Resolution 2025-234 February 19, 2025 Page 3 of 3 6 3 8 1 t e m p I d 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. 2025-234, adopted at a regular meeting held on the 19th day of February 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2025. Genoveva Rocha, CMC, City Clerk Packet Page.233 Packet Page.234 2 5 0 2 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager Gabriel Elliott, Director of Community Development and Housing Department:Community Development and Housing Subject:HOME Investment Partnership Program – Owner Occupied Rehabilitation Program Subrecipient Agreement with Neighborhood Partnership Housing Services, Inc. (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the HOME Investment Partnership Agreement Owner Occupied Rehabilitation Program Subrecipient Agreement between the City and Neighborhood Partnership Housing Services, Inc. for $920,000; and 2. Authorize the City Manager or designee to take further actions and execute any additional documents, including future amendments, to effectuate the agreements. Executive Summary The City Council approved the Fiscal Year 2024-25 Annual Action Plan (FY24-25 AAP), which allocated $920,000 in HOME Investment Partnership Program (HOME) funds to the Owner-Occupied Rehabilitation Program (OORP). The OORP helps income-eligible homeowners in San Bernardino make essential home repairs to meet health and safety codes. The program offers deferred payment loans up to $40,000 for repairs such as plumbing, roofing, accessibility improvements, and energy efficiency upgrades. A significant portion of the funds is designated for contractor work, administration, and program implementation. This partnership will improve the quality of life for eligible households while preserving the City’s housing stock. The sub- recipient agreement is effective for one year and can be extended for an additional Packet Page.235 2 5 0 2 year based on performance. Background On April 15, 2020, the Mayor and City Council approved the City of San Bernardino’s Consolidated Plan for 2020-2025. The Consolidated Plan is a five-year planning document that guides jurisdictions in assessing their affordable housing and community development needs and market conditions, making data-driven, place- based investment decisions, and conducting community-wide discussions to identify housing and community development priorities that align and focus on eligible activities for CDBG funding. The Consolidated Plan is implemented through Annual Action Plans, which summarize the actions, activities, and specific federal and non-federal resources allocated each year to address the priority needs and goals outlined in the Consolidated Plan. On May 1, 2024, staff presented the Proposed FY 2024-25 Annual Action Plan to the Mayor and City Council, including staff recommendations for proposed subrecipient awards, for their consideration and public comment review. On May 15, 2024, the Mayor and City Council approved the FY 2024-25 AAP for the Community Development Block Grant, HOME Program, and Emergency Solutions Grant Program. The FY 2024-25 AAP allocated $920,000 in HOME funds to NPHS to implement the City OORP. Discussion The OORP is designed to assist income-eligible homeowners in entitlement communities by providing financial assistance to improve their homes' living conditions to meet the City’s health and safety code requirements. Financial assistance will be provided as a deferred payment loan not to exceed $40,000 per loan, pursuant to terms allowed under the City’s OORP guidelines. The deferred loan is secured against the property with an affordability covenant and deed of trust, which outlines recapture provisions in the event of default. The $40,000 program eligibility is based on household size and income level for owner- occupied single-family detached homes, townhomes, and condominiums within San Bernardino city limits. Reimbursable repairs and improvements include addressing health and safety issues, building code violations, accessibility, and general property- related repairs. Specific eligible improvements may include: Interior and exterior painting Plumbing and electrical repair Roofing and structural repairs (e.g., foundation issues) Landscaping and driveway repair or replacement Bedroom or bathroom additions to relieve overcrowding American with Disabilities Act (ADA) improvements Energy efficiency upgrades The United States Department of Housing and Urban Development (HUD) requires the Packet Page.236 2 5 0 2 execution of a sub-recipient agreement, in accordance with 24 CFR 92.352, to award HOME Program funds. This HOME OORP sub-recipient agreement with NPHS will formally establish the terms and conditions for the use of federal funds and define the subrecipient’s responsibilities for performance and regulatory compliance. At least 15 percent of HOME funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO). Neighborhood Partnership Housing Services (NPHS), a well-established Community Housing Development Organization (CHDO), has been designated as the Program Administrator for the City’s Owner-Occupied Rehabilitation Program (OORP) utilizing HOME funds. NPHS was selected as the sub-recipient due to its 32 years of expertise in housing programs and its proven success in administering this program during the City’s FY 2020-2025 HUD Consolidated Plan. With a highly qualified team and extensive experience, NPHS possesses the capacity and expertise to fulfill all program requirements. In FY 2022-2023, NPHS successfully managed the City’s OORP, rehabilitating 10 single-family homes. The organization excels in program monitoring, evaluation, and the delivery of supportive services. Furthermore, NPHS's mission aligns seamlessly with the City’s strategic goals, as both entities are committed to fostering resilient communities through innovative housing and economic solutions. This program allows the City, in partnership with NPHS, to provide deferred payment loans to owners of single-family residences whose incomes do not exceed 80% of the Area Median Income, as defined by HUD guidelines. These loans are anticipated to improve the quality of life for income-eligible households by assisting with property repairs and improvements necessary to make their homes decent, safe, and attractive while preserving the City’s housing stock, a key program requirement as outlined in 24 CFR 92.251(b). The allocation of the $920,000 in HOME funds to NPHS is detailed as follows: Item Description Estimated Quantity Unit Price Subtotal 1 Allowance Contractor/Subcontractor Work 20 $40,000*$800,000 2 Administration (15% of each project)20 $6,000 $120,000 Total $46,000 $920,000 *Not to exceed $40,000. NPHS estimates they can assist approximately 20 households. During the term of this sub-recipient agreement, NPHS will deliver the following services: Serve as the Program Administrator and carry out all duties of the Program Administrator as outlined in the Program Guidelines for the Term of this Agreement. Manage all application, intake, and verification procedures for Residential Packet Page.237 2 5 0 2 Rehabilitation Loans made to Eligible Households pursuant to the Program, including but not limited to ensuring the Eligible Households and the Eligible Property meet the eligibility requirements for the Program in a manner consistent with the Program Guidelines and HOME Regulations, including utilization of the HOME Guide for Review of Homeowner Rehabilitation Projects. Ensure that households and properties meet eligibility criteria under the program guidelines and HOME regulations. Prepare and execute loan documentation, including agreements, promissory notes, and deeds of trust in approved formats. Review and document contractor bids and issue notices to proceed for rehabilitation work Ensure contractors comply with agreements and commitments as required by Monitor loan proceeds to ensure they are spent exclusively on rehabilitation costs Oversee and monitor rehabilitation work to confirm compliance with program guidelines and HOME regulations. Prepare and maintain comprehensive project files to meet the standards outlined in the program guidelines Submit monthly performance reports to the City by the 15th of each month in a format acceptable to the City. The term of this agreement shall commence on the effective date of July 1, 2024, and will expire one (1) year after the effective date of June 30, 2025, unless terminated earlier. The agreement is to run with the HOME program year, which began on July 1, 2024. The City reserves the option to extend the term of this agreement for one (1) additional one-year term. In the event that the agreement is not extended for an additional one-year term, any unspent funds will be reallocated during the FY 2025- 2026 Annual Action Plan or in a future substantial amendment. NPHS will submit monthly progress reports to the city, which will be used to evaluate time extension requests. Under no circumstances shall the term of this agreement extend beyond June 30, 2026. 2024-2025 Strategic Targets and Goals The request to approve the Subrecipient Agreements aligns with Strategic Target No. 3: Improved Quality of Life by providing financial assistance to eligible homeowners to address health and safety hazards, correct building code violations, enhance accessibility and ensure decent, safe, and sanitary living conditions. Fiscal Impact There will be no fiscal impact on the City’s General Fund. This program will be funded with HOME funds provided by the United States Department of Housing and Urban Development (HUD). Packet Page.238 2 5 0 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the HOME Investment Partnership Agreement Owner Occupied Rehabilitation Program Subrecipient Agreement between the City and Neighborhood Partnership Housing Services, Inc. for $920,000; and 2. Authorize the City Manager or designee to take further actions and execute any additional documents, including future amendments, to effectuate the agreements. Attachments Attachment 1 HOME Owner-Occupied Rehabilitation Program Master Agreement Attachment 2 FY2024-25 Annual Action Plan Ward All Wards Synopsis of Previous Council Actions April 15, 2020 The Mayor and City Council approved the City of San Bernardino’s Consolidated Plan for 2020-2025. May 1, 2024 Proposed FY 2024-25 Annual Action Plan was taken to the Mayor and City Council for public comment and the City Council to review proposed subrecipients. May 15, 2024 Mayor and City Council approved FY 2024-25 Annual Action Plan. Packet Page.239 HOME Investment Partnerships Program (HOME) OWNER-OCCUPIED REHABILITATION PROGRAM MASTER AGREEMENT by and between City of San Bernardino a municipal corporation and charter city and NPHS Community Redevelopment, Inc., a California nonprofit corporation 55600.00203\43196937.2 Packet Page.240 55600.00203 \4319693 7.2 This HOME Investment Partnerships Program (HOME) Owner Occupied Rehabilitation Program Master Agreement ("Agreement") is dated July 1, 2024, and is between the City of San Bernardino, a municipal corporation and charter city ("City"), and NPHS Community Redevelopment, Inc., a California nonprofit corporation ("NPHS"). RECITALS WHEREAS, City has received HOME Investment Partnerships Act funds (' 'HOME Funds") from the United States Department of Housing and Urban Development ("HUD") pursuant to the Cranston-Gonzalez National Housing Act of 1990. The HOME Funds must be used by City in accordance with 24 C.F.R. Part 92, as amended from time to time ("HOME Regulations"); and WHEREAS, City seeks to engage NPHS to serve as Project Administrator for the City's Owner Occupied Rehabilitation Program ("OORP"), which is funded with HOME Funds, pursuant to which the City makes loans to owners of single family residences whose income does not exceed 80 percent of the Area Median Income, as defined below for the rehabilitation of said residences in accordance with the HOME Regulations (the "Services"); and WHEREAS, NPHS has the capacity and expertise to carry out the Services substantially in accordance with the terms and conditions set forth in this Agreement; and WHEREAS, NPHS desires to utilize City HOME funds in an amount not to exceed Nine Hundred Twenty Thousand Dollars and Zero Cents ($920,000.00) to make loans from the City to Eligible Households to perform rehabilitation of their single family residences in accordance with the HOME Regulations and the HOME Regulations (the "OORP Loans"), and to pay NPHS's costs of performing the Services, as allowed herein; and WHEREAS, for each OORP Loan made to an Eligible Household, NPHS will deliver to City, among other items, an "OORP Loan Agreement", a "Deed of Trust", and a "Promissory Note", each as defined below, each executed by the Eligible Household to whom the loan is made which require the repayment of the loan; and WHEREAS, defined terms used but not defined in these recitals are defined in Section 2 of this Agreement; and WHEREAS, City desires to provide HOME Funds to NPHS, on the terms and conditions set forth herein. NOW THEREFORE, in consideration of the above recitals, the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt, legal sufficiency and adequacy of which are hereby acknowledged, the parties hereto agree as follows: AGREEMENT SECTION 1. Incorporation of Recitals. Packet Page.241 55600.00203 \4319693 7.2 The Recitals set forth above are true and correct and are incorporated into this Agreement. SECTION 2. Definitions. In addition to the meaning ascribed to certain words and phrases as set forth in the Recitals of this Agreement or in other sections of this Agreement, including any of the Attachments to this Agreement, other words and phrases shall have the meanings described below: •"Area Median Income (AMI)" means the median income for the Ontario/Riverside/San Bernardino Metropolitan Statistical Area, adjusted for household size, as defined and periodically adjusted by HUD. •"C.F.R." means the Code of Federal Regulations. •"City" is defined in the initial paragraph of this Agreement and includes any assignee of or successor to the rights, powers and responsibilities of the City. The Director of the Department of Community and Economic Development of the City of San Bernardino, or such person's designee (hereinafter defined as the "City's Representative") shall represent the City in all matters pertaining to this Agreement. Whenever a reference is made herein to an action or approval to be undertaken by the City, the City's Representative is authorized to act on behalf of the City unless this Agreement specifically provides otherwise or the context should otherwise require. •"Deed of Trust" means the deeds of trust executed by Eligible Households in favor of City as beneficiary that will encumber each Eligible Property as security for compliance with each OORP Loan Agreement and with the Note. The general forms of the Deed of Trust is included as Attachment "F" to this Agreement and incorporated herein by this reference. •"Eligible Household" refers to low income households, whose gross annual income may not exceed the low-income limits defined as up to 80 percent of the San Bernardino County area median income (AMI) adjusted for household size and determined annually by the U.S. Department of Housing and Urban Development (HUD). •"Eligible Property" means an owner occupied single family dwelling unit or single-family home , which may include manufactured housing, or a membership in a cooperative or mutual housing project that constitutes homeownership under state law, that is owned by an Eligible Household, and all such properties are referred herein collectively as the "Eligible Properties." •"Effective Date" means the date on which this Agreement shall become effective, which is agreed to be the earlier of the date this Agreement is fully executed by NPHS and City on July 1, 2024. Packet Page.242 55600.00203 \4319693 7.2 •"Event of Default" has the meamng set forth m Section 14 of this Agreement. •"HOME" means the HOME Investment Partnerships Act Program established pursuant to the Cranston-Gonzalez National Affordable Housing Act of 1990 (42 U.S.C. 12703 et seq.) as amended from time to time, and the HOME Regulations. •"HOME Funds" is defined in Recital A hereof. •"HOME Regulations" is defined in Recital A hereof. •"HUD" is defined in Recital A hereof. •"Low-income Households" means persons and households whose income does not exceed 80 percent of the Area Median Income, adjusted for family size, as set forth in the definition of "low-income families" in 24 C.F.R. Part 92.2. •"OORP Loans" means the loans to be provided by City to Eligible Households for the rehabilitation of Eligible Properties in an aggregate amount not to exceed Nine hundred Twenty Thousand Dollars and Zero Cents ($920,00.00), with each individual loan in an amount not to exceed Forty Thousand Dollars and Zero Cents ($40,000.00). The provisions of the Owner Occupied Rehabilitation Loans are set forth in Section 16, the OORP Loan Agreement in the form attached hereto as Attachment F, and the Program Guidelines, attached hereto as Attachment B. •"Program Guidelines" means the City of San Bernardino Owner Occupied Residential Rehabilitation Policies and Procedures that have been developed by the City to establish minimum administrative requirements for the Owner Occupied Residential Rehabilitation Program, as they may be amended from time to time. The Program Guidelines are attached hereto as Attachment B and incorporated herein by reference. •"Project" means the rehabilitation of an Eligible Property by an Eligible Household in accordance with the requirements of the HOME Regulations, Program Guidelines, and this Agreement. •"Promissory Note" means the notes executed by Eligible Households in favor of City as beneficiary evidencing the loans under each OORP Loan Agreement. The general form of the Promissory Note is included as Attachment "G" to this Agreement and incorporated herein by reference. •"Rehabilitation Costs" means actual costs for construction and materials incurred for repairs and improvements to an Eligible Property that are approved by the City in accordance with the Program Guidelines and the applicable OORP Loan Agreement. Packet Page.243 55600.00203 \4319693 7.2 •"Rehabilitation Standards" means standards for the rehabilitation of HOME-assisted properties adopted from time to time by City as a participating jurisdiction under the HOME Regulations. •"Scope of Services" means the description of the Services which is attached hereto as Attachment "A" and incorporated herein by this reference. •"Term" has the meaning set forth in Section 5 of this Agreement. CFDA Number and Name: 14.239 HOME Investment Partnership Program (HOME) Federal Award Date: July 1, 2024 (The date when the federal award is signed by the authorized official of the federal awarding agency.) HOME Funds Obligated IDIS Activity: # Program Year: 2024-2025 Amount: $920,000.00 FAIN: M24-MC060565 SECTION 3. Parties to the Agreement. The parties to this Agreement are NPHS and City, referred to at times herein collectively as the "Parties" and individually as a "Party". The principal office ofNPHS for purposes of this Agreement is located at 9551 Pittsburgh Avenue, Rancho Cucamonga, CA 91730. Prior to the Effective Date, NPHS must have provided City with satisfactory evidence of the legal formation and the good standing of NPHS to transact business within the State. SECTION 4. Entire Agreement. A.This Agreement including all attachments and addenda referenced herein constitutes the entire agreement between the Parties. This Agreement supersedes all prior negotiations, discussions and agreements between the Parties concerning the subject matters covered herein. The Parties intend this Agreement to be the final expression of their agreement with respect to the subjects covered herein and a complete and exclusive statement of such terms. B.Included as an integral part of this Agreement are the Attachments listed below for reference purposes. All Attachments set forth below and attached to this Agreement are incorporated herein by reference regardless of the prior reference of any or all of said Attachments in the text of this Agreement. All Attachments to this Agreement shall have the same force and effect as though the content of each and every one of said Attachments had been included within the text of this Agreement. Unless the context Packet Page.244 55600.00203 \4319693 7.2 requires to the contrary, all references to this Agreement shall include each and every Attachment set forth below and attached hereto. Attachments identified as forms or templates may be modified by City as necessary to adapt the documents for use in connection with particular transactions. List of Attachments: Attachment "A" Attachment "B" Attachment "C" Attachment "D" Attachment "E" Attachment "F" Attachment "G" Attachment "H" Attachment "I" Scope of Services Program Guidelines Budget Schedule of Work Form ofOORP Loan Agreement Form of Deed of Trust Form of Promissory Note HOME Guide for Review of Homeowner Rehabilitation Projects Federal Requirements (HOME Funds) SECTION 5. Term of Agreement. A.The Term of this Agreement shall commence on the Effective Date and will expire one (1) year after the Effective Date, unless earlier terminated as provided in this Agreement. City will have the option to extend the term of this Agreement for one (1) additional one- year terms, with the consent ofNPHS. The term of this Agreement shall not extend beyond June 30, 2026, except that, notwithstanding any of the foregoing, unless terminated under Section 15 below, this Agreement shall remain in effect at least until completion of the rehabilitation of all of the Eligible Properties to be rehabilitated under this Agreement. Also, notwithstanding the foregoing portion of this Section 5(A), documents recorded pursuant to this Agreement shall survive the expiration or termination of this Agreement and remain effective in accordance with their terms. B.Upon the expiration or earlier termination of this Agreement, NPHS shall provide City with all documents, notes, maps, reports, data, and all other work product developed in performance of the Scope of Services within ten (10) calendar days after the effective date of such expiration or termination, without additional charge to City. Additionally, NPHS must transfer any HOME Funds on hand for accounts receivable attributable to the use of HOME funds. SECTION 6. Scope ofNPHS Services. A.City hereby retains NPHS to provide the professional services set forth in the Scope of Services attached hereto as Attachment "A" and incorporated herein by this Packet Page.245 55600.00203 \4319693 7.2 reference. NPHS hereby agrees to perform the work set forth in the Scope of Services, in accordance with the terms of this Agreement, the Program Guidelines, which are incorporated into the Scope of Services by reference, and the guidelines specified in the HOME Guide for Review of Homeowner Rehabilitation Projects, attached as Attachment "H". HOME funds will be used for such and program income is to be remitted to the City of San Bernardino or, upon request ofNPHS and written approval of City, retained by NPHS to carry out additional eligible activities. B.Before commencing any services under this Agreement, NPHS shall provide City with documentation indicating NPHS's financial strength and capacity to provide start- up operations and working capital to develop Eligible Properties. Such documentation shall include NPHS's most recent certified financial statements with a statement in writing, signed by a duly authorized representative, stating that the present financial condition is materially the same as that shown on the balance sheet and income statement submitted, or with an explanation for a material change in the financial situation. C.In accordance to 24 C.F.R. § 85.43, if NPHS materially fails to comply with any term of this agreement, agreement may be suspended or terminated. SECTION 7. Budget. NPHS has submitted a budget (based upon estimated costs and administrative costs per Section 8 hereof) to the City for approval which sets forth the estimated use of the HOME funds contributed by the City pursuant to this agreement. The Budget is attached hereto as Attachment "C". Any amendments to an approved budget for the Services must be approved by the City's Director or his authorized designee. The City may require a more detailed line item breakdown of the Budget than the one contained herein, and NPHS shall provide such supplementary information about the Budget in a timely fashion in the form and content prescribed by the City. SECTION 8. Payment for Services Performed by NPHS. City shall disburse funds for Rehabilitation Costs incurred by Eligible Households in accordance with the approved Scope of Services and the OORP Loan Agreement entered into with each Eligible Household. City will additionally reimburse NPHS for administrative costs or expenses incurred by NPHS to manage or implement the Program identified in the Scope of Services. Reimbursement of administrative costs shall be limited to 10% of the actual amount of Rehabilitation Costs incurred. City's payment obligations shall be limited to the actual amount of Rehabilitation Costs disbursed in accordance with the terms of this Agreement, the OORP Loan Agreements, the Program Guidelines, and the approved Budget, and NPHS's administrative costs or expenses pursuant to this Agreement, the Program Guidelines and the approved Budget. NPHS may not request disbursement of HOME Funds under the agreement until the funds are needed for payment of NPHS' eligible costs, The amount of each request is limited to the amount needed and only allowed to be requested after program income (if applicable) is disbursed. SECTION 9. HOME Program Requirements. Packet Page.246 55600.00203 \4319693 7.2 A.NPHS shall comply, and shall require its contractors or subcontractors to comply when applicable, with all applicable laws and regulations governing the use of the HOME Funds as set forth in 24 C.F.R. Part 92 and as described in Attachment ". In the event of any conflict between this Agreement and applicable laws and regulations governing the use of the HOME Funds, the applicable laws and regulations govern. The laws and regulations governing the use of the HOME Funds include (but are not limited to) the following: (i)Eligible Project Costs. Restrictions on funding only eligible project costs as set forth in 24 C.F.R. § 92.206. (ii)Environmental and Historic Preservation and Review. 24 C.F.R. Part 50 and 24 C.F.R. Part 58, which prescribe procedures for compliance with the National Environmental Policy Act of 1969 (42 U.S.C. §§ 4321- 4370), and the additional laws and authorities listed at 24 C.F.R. § 58.5. NPHS acknowledges that environmental review by the City of the activities to be undertaken under this Agreement is required, and that NPHS may not expend funds, HOME or otherwise, for such activities until the City has notified NPHS in writing that the environmental review is complete. (iii)Applicability of 0MB Circulars. The applicable policies, guidelines, and requirements of 0MB Circulars Nos. A-87, A-102, Revised, A-110, A- 122, and A- 133. (iv)Debarred, Suspended, or Ineligible Contractors. The prohibition on the use of debarred, suspended, or ineligible contractors set forth in 2 C.F.R. Part 180 and 24 C.F.R. Part 2424. (v)Civil Rights Housing and Community Development and Anti- Discrimination Acts. The Fair Housing Act, as amended (42 U.S.C. 3601 et seq.) and implementing regulations at 24 C.F.R. Part 100; Title VI of the Civil Rights Act of 1964 as amended; Title VIII of the Civil Rights Act of 1968 as amended; Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended; Section 504 of the Rehabilitation Act of 1973, as amended (29 USC§ 794, et seq.); the Age Discrimination Act of 1975 (42 USC § 6101, et seq.); Executive Order 11063 (Equal Opportunity in Housing) as amended by Executive Order 12259 and implementing regulations at 24 C.F.R. Part 107; Executive Order 11246 (Equal Employment Opportunity) as amended by Executive Orders 11375, 12086, 11478, 12107; Executive Order 11625 (National Program for Minority Business Enterprise) as amended by Executive Order 12007; Executive Order 12432 (Minority Business Enterprise Development); Executive Order 12138 (Creating a National Women's Business Enterprise Policy) as amended by Executive Order 12608. (vi)Nondiscrimination against the Disabled. The requirements of the Fair Housing Act (42 U.S.C. § 3601 et seq.) and implementing regulations at Packet Page.247 55600.00203 \4319693 7.2 24 C.F.R. Part 100; Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. § 794), and federal regulations issued pursuant thereto, which prohibit discrimination against the disabled in any federally assisted program, the requirements of the Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) and the applicable requirements of Title II and/or Title III of the Americans with Disabilities Act of 1990 (42 U.S.C. §§ 12131 et seq.), and federal regulations issued pursuant thereto. (vii)Clean Air and Water Acts. The Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251 et seq.; the National Environmental Policy Act of 1969, as amended(42 U.S.C. §§ 4321 et ;and the regulations of the Council on Environmental Quality with respect thereto, at 40 C.F.R. Part 1500, as amended from time to time. (viii)Uniform Administrative Requirements. The provisions of 2 C.F.R. Part 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards), as modified by 24 C.F.R. § 92.505. (ix)Drug Free Workplace. The requirements of the Drug Free Workplace Act of 1988 (P.L. 100-690), 41 U.S.C. Chapter 81, and implementing regulations at 2 C.F.R. Part 182 and 2 C.F.R. Part 2429. (x)Anti-Lobbying: Disclosure Requirements. The disclosure requirements and prohibitions of 31 U.S.C. § 1352 and implementing regulations at 24 C.F.R. Part 87 and requirements of 2 C.F.R. § 200.450. If applicable, NPHS must include the required anti-lobbying provision in contracts entered into in connection with this Agreement. (xi)NPHS must submit to the City a certification regarding lobbying in a form satisfactory to City in its sole discretion. NPHS must include language in all contracts, subcontracts, and other agreements requiring that all parties to same to certify and disclose that: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. 11. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative Packet Page.248 55600.00203 \4319693 7.2 agreement, the undersigned shall complete and submit Standard Form- LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. (xii)Historic Preservation. The historic preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (Division A of Subtitle III of 54 U.S.C.) and the procedures set forth in 36 C.F.R. Part 800. If archeological, cultural, or historic period resources are discovered during construction, all construction work must come to a halt and NPHS shall immediately notify City. NPHS shall not shall alter or move the discovered material(s) until all appropriate procedures for "post-review discoveries" set forth in the National Historic Preservation Act at 54 U.S.C. § 300101 et seq. have taken place, which include, but are not limited to, consultation with the California State Historic Preservation Officer and evaluation of the discovered material(s) by a qualified professional archeologist. (xiii)Flood Disaster Protection. The requirements of the Flood Disaster Protection Act of 1973 (P.L. 93-234, 42 U.S.C. § 4001) ("Flood Act"). No portion of the assistance provided under this Agreement is approved for acquisition or construction purposes as defined under Section 3(a) of the Flood Act, for use in an area identified by HUD as having special flood hazards which is not then in compliance with the requirements for participation in the national flood insurance program pursuant to Section 201(d) of the Flood Act. The use of any assistance provided under this Agreement for such acquisition or construction in such identified areas in communities then participating in the National Flood Insurance Program is subject to the mandatory purchase of flood insurance requirements of Section 102(a) of the Flood Act. If an Eligible Property is located in an area identified by HUD as having special flood hazards and in which the sale of flood insurance has been made available under the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001 et seq., the property owner and its successors or assigns must obtain and maintain, during the ownership of the Eligible Property, such flood insurance as required with respect to financial assistance for acquisition or construction purposes under Section 102(a) of the Flood Act. (xiv)Project Requirements and Other Federal Requirements. The activities funded under this agreement must comply with the project requirements set forth in Subpart F of 24 C.F.R. Part 92 and must be carried out in accordance with the other federal requirements set forth in Subpart H of said Part 92, including, without limitation, the requirements of24 C.F.R. Part 5. (xv)Labor. NPHS agrees to assist each Eligible Household in procuring a licensed and insured general contractor to rehabilitate the Eligible Property. The procurement of such contractor and of the materials required for the Project shall be conducted in accordance with the applicable requirements of2 C.F.R. 200.318-.327 and the public bidding requirements that would apply if the City procured the Contractor and the materials, in such a manner as to procure the Packet Page.249 55600.00203 \4319693 7.2 lowest possible bidders at the lowest possible prices, and the lowest responsive and responsible bidder shall be awarded the contract. While contracts for Project work are anticipated to be entered into separately for each Eligible Property, in the event any contracts for work under this Agreement cover 12 or more units, such contracts must comply with 24 C.F.R. § 92.354 and contain a provision requiring the payment of not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 3141 et seq.), to all laborers and mechanics employed in the development of any part of the housing. Such contracts must also be subject to the overtime provisions, as applicable, of the Contract Work Hours and Safety Standards Act (40 U.S.C. 3701 et seq.). (xvi)Section 3. Section 3 projects include housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The "project" is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing. NPHS agrees to assume the responsibility and be solely responsible for determining whether or not contracts are subject to Section 3 requirements and for compliance with any applicable Section 3 requirements. (xvii)Lead-Based Paint. In compliance with 24 C.F.R. § 92.355, housing assisted with HOME Funds is subject to the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and implementing regulations at 24 C.F.R. Part 35, Subparts A, B, J, K, Mand R. (xviii)Property Standards. The housing developed pursuant to this Agreement must meet the property standards in 24 C.F.R. § 92.251, the lead hazard control requirements in 24 C.F.R. § 92.355, and the Rehabilitation Standards, upon completion of construction or reconstruction. (xix)Religious Organizations. If NPHS is a religious or faith-based organization, as defined by the HOME Regulations, NPHS shall comply with all conditions prescribed by HUD for the use of HOME funds by religious organizations, including the First Amendment of the United States Constitution regarding church/state principles and the applicable constitutional prohibitions set forth in 24 C.F.R. § 92.257 and 24 C.F.R. § 5.109. (xx)Relocation. As applicable to non-owner occupied units, the requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601, et seq.), and implementing regulations at 49 C.F.R. Part 24; 24 C.F.R. § 92.353; Section 104(d) of the Housing and Community Development Act of 1974 and implementing regulations at 24 C.F.R. Part 42; and California Government Code Section 7260 et seq. and Packet Page.250 55600.00203 \4319693 7.2 implementing regulations at 25 California Code of Regulations Sections 6000 et seq. If and to the extent that the Services result in the permanent or temporary displacement of residential tenants, homeowners, or businesses, NPHS shall comply with all applicable local, state, and federal statutes and regulations with respect to relocation planning, advisory assistance, and payment of monetary benefits, and shall prepare and submit a relocation plan to City for approval. NPHS is solely responsible for payment of any relocation benefits to any displaced persons and any other obligations associated with complying with such relocation laws. NPHS shall indemnify and defend City (with counsel selected by City), and hold City harmless against all claims that arise out of relocation obligations to residential tenants, homeowners, or businesses penitently or temporarily displaced by the project. (xxi)Other HUD Regulations. Any other HUD regulations now in effect or as may be amended or added in the future pertaining to the HOME Funds, the existence and applicability of which NPHS assumes full responsibility for determining. (xxii)Fees. As required by 24 C.F.R. Part 92.504(c)(3)(xi), NPHS shall not charge servicing, origination, processing, inspection, or other fees for the costs of providing homeownership assistance. SECTION 10.Records Retention. Records, field notes, inspection documents, and other supporting documents pertaining to the use of HOME Funds disbursed to NPHS and OORP activities for the Project shall be retained by NPHS with a corresponding copy provided to City. All records shall be made available to City, HUD, and other appropriate federal agencies and officials for examination for a period of five (5) years from the date of expiration or termination of this Agreement. Records shall be available for inspection during NPHS's regular business hours. In the event of litigation or audit relating to this Agreement, such records shall be retained by NPHS until all such litigation or audit has been resolved. Files will be maintained to document the significant history of OORP activities for all projects. Individual activity documentation must be submitted to the City upon project completion for each Eligible Property and for the Project. Individual activity project files must include documents in the Rehabilitation Submittal Checklist and must include at a mm1mum: •The application and all supporting documentation related to income and owner- occupancy, and property information reports. •Official correspondence and the Rehabilitation Environmental Review. •Inspection reports, lead-based paint reports, before and after photographs, work descriptions, internal estimate, bid evaluation, contractor clearances, contractor insurance, contractor business license, contractor W-9, recorded Notice of Completion. Packet Page.251 55600.00203 \4319693 7.2 •Each OORP Loan Agreement, construction contract agreement, applicable promissory notes and deeds of trust, all loan disbursement information including itemized invoices, payment releases, lien releases, warranties, and copies of payment checks, signed off City permits. •Documentation on requests for demand, reconveyance, subordinations, and defaults. SECTION 11.Indemnification. NPHS shall defend, with counsel selected by City, indemnify, and hold harmless City and its officers, officials, employees, representatives, and agents (collectively "Indemnitees") from and against any and all actions, suits, proceedings, claims, demands, losses, costs and expenses, including, without limitation, legal costs and attorneys' fees, court costs, and costs of investigation, for injury, death, or damage of any kind or type claimed arising from, in connection with, or as a result of, in whole or in part, directly or indirectly, any acts or omissions of NPHS, its officers, employees, contractors, subcontractors, representatives, and agents relating to this Agreement, except that arising directly from the sole negligence or willful misconduct of City. SECTION 12.Insurance. A.NPHS shall maintain, or cause contractors or subcontractor, as applicable, to procure and maintain, insurance, as set forth below, throughout the term of this Agreement. NPHS shall remain liable as stated in Section 11 above for all losses and damages incurred by any of the Indemnitees that are caused all or in part, directly or indirectly, through the actions or inactions, willful misconduct or negligence of NPHS in the performance of the duties assumed by NPHS pursuant to this Agreement, to the extent such losses and damages are not covered by insurance maintained by NPHS pursuant to this Section 12; provided, however, nothing in this Agreement shall be construed as limiting in any way the extent to which NPHS may be held responsible for payment of damages to persons or property resulting from NPHS' or its contractor's or subcontractor's performance of the Services under this Agreement. B.NPHS shall maintain insurance policies issued by an insurance company or companies authorized to do business in the State of California and that maintain during the term of the policy a Financial Strength Rating of at least A and a Financial Size Category designation of at least V, as set forth in the then most current edition of "Bests Insurance Guide," as follows: (i)Automobile Insurance. NPHS and each of its contractors and subcontractors shall maintain comprehensive automobile liability insurance of not less than One Million Dollars and Zero Cents ($1,000,000.00) combined single limit per occurrence for each vehicle leased or owned by NPHS or its contractors and subcontractors and used in performing work under this Agreement. (ii)Worker's Compensation Insurance. NPHS and each of its contractors and subcontractors shall maintain worker's compensation coverage in accordance with California workers' compensation laws for all workers Packet Page.252 55600.00203 \4319693 7.2 under NPHS's and/or its any of its contractors and subcontractors' employment performing work under this Agreement. Such coverage shall include Workers' Compensation with Statutory Limits as required by law and employers' liability with a minimum coverage amount of One Million Dollars and Zero Cents ($1,000,000.00) per occurrence. (iii)Liability Insurance. NPHS shall maintain comprehensive commercial general liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least Two Million Dollars and Zero Cents ($2,000,000.00) per occurrence and Four Million Dollars and Zero Cents ($4,000,000.00) aggregate, including products and completed operations coverage. Said insurance shall be primary insurance with respect to City and the policy shall so provide. NPHS shall require and ensure that all general liability insurance policies covering work at any Eligible Property, whether obtained by NPHS or NPHS 's contractors or subcontractors, include City and the other Indemnitees as additional insureds. If required by City from time to time, NPHS shall increase the limits ofNPHS 's liability insurance to reasonable amounts customary for owners of improvements similar to the Project or similar work as performed under this Agreement. (iv)Professional Liability Insurance. NPHS shall maintain professional liability insurance with a minimum coverage limit of One Million Dollars and Zero Cents ($1,000,000.00), providing coverage for errors, omissions, negligent acts, or misconduct in the performance of professional services under this Agreement. NPHS shall ensure that such coverage remains in effect for the term of this Agreement and any applicable statute of limitations period for claims arising from its services. (v)Cyber Liability Insurance. If NPHS is receiving or reviewing applications electronically, NPHS shall maintain cyber liability insurance with a minimum coverage limit of One Million Dollars and Zero Cents ($1,000,000.00). Such insurance shall provide coverage for losses arising from data breaches, hacking incidents, or other cybersecurity risks associated with the electronic storage, processing, or transmission of sensitive or personal information related to the performance of this Agreement. Concurrent with the execution of this Agreement and prior to the commencement of any work by NPHS, and upon reasonable request by City from time to time, NPHS shall deliver to City copies of policies or certificates evidencing the existence of the insurance coverage required herein, including appropriate endorsements, which coverage shall remain in full force and effect continuously throughout the term of this Agreement. Each policy of insurance that NPHS purchases in satisfaction of the insurance requirements of this Agreement, except workers compensation, shall be endorsed naming City and the other Indemnitees as additional insureds, and shall provide that, except with respect to the coverage limits, such insurance applies to each named and additional insured as though a separate policy were issued to each. Such endorsements shall include the CG 20 37 Endorsement and, if completed products are intended, the CG 20 10 Endorsement. Packet Page.253 55600.00203 \4319693 7.2 Each policy shall provide for a waiver of subrogation as against City and the other Indemnitees and shall provide that the policy may not be cancelled, terminated, or modified, except upon thirty (30) days' prior written notice to City. Developer must immediately obtain, or cause contractors or subcontractors, as applicable, to obtain, replacement coverage for any insurance policy that (i) is non-renewed, canceled, or terminated, (ii) has exhausted policy limits, or (iii) is issued by an insurer that does not comply with the requirements of this Agreement. Any insurance maintained by City or Indemnitees shall be in excess of NPHS 's insurance coverage and shall not contribute to it. C.Failure on the part of NPHS to procure or maintain, or cause contractors or subcontractor, as applicable, to procure and maintain, the insurance coverage required herein for fifteen (15) days or longer shall constitute a material breach of this Agreement pursuant to which City may exercise all rights and remedies set forth herein and may at its sole discretion, without waiving such default or limiting City's rights or remedies, procure or renew such insurance and pay any and all premiums in connection therewith. All monies so paid by City shall be reimbursed by NPHS upon demand, including interest thereon at the rate of ten percent (10%) per annum compounded. annually from the date paid by City to the date reimbursed by NPHS. City shall have the right, at its election, to participate in and control any insurance claim adjustment or dispute with the insurance carrier. NPHS 's failure to assert or delay in asserting any claim shall not diminish or impair the rights of City against NPHS or the insurance carrier. SECTION 13.Press Releases. Press or news releases, including photographs or public announcements, or confirmation of the same related to the work to be performed by NPHS under this Agreement shall be made by NPHS only with the prior written consent of City. Press or news releases shall include language identifying the Project as a City-funded project and include the City seal. SECTION 14.Defaults and Remedies. A.Events of Default. The occurrence of any of the following shall, after the giving of any notice and the expiration of any applicable cure period, constitute a default by NPHS hereunder ("Event of Default"): (i)The failure of NPHS to pay or perform any monetary covenant or obligation hereunder or under any of the documents executed in connection herewith, without curing such failure within ten (10) calendar days after receipt of written notice of such default from City (or from any party authorized by City to deliver such notice as identified by City in writing to NPHS). (ii)The failure of NPHS to perform any nonmonetary covenant or obligation hereunder or under any of the documents executed in connection herewith, without curing such failure within thirty (30) calendar days after receipt of written notice of such default from City (or from any party authorized by City to deliver such notice as identified by City in writing Packet Page.254 55600.00203 \4319693 7.2 to NPHS) specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency; provided, however, that if any default with respect to a nonmonetary obligation is such that it cannot be cured within a thirty day period, it shall not be deemed a default if NPHS commences the cure within said thirty day period and diligently prosecutes such cure to completion thereafter. Notwithstanding anything herein to the contrary, the herein described notice requirements and cure periods shall not apply to any Event of Default described in Sections iii through vi below, each of which shall constitute an immediate default under this Agreement without regard to any curative action undertaken or completed by NPHS: (iii)The material falsity of any representation or the breach of any warranty or covenant made by NPHS under the terms of this Agreement or any documents executed in connection herewith. (iv)NPHS or any constituent member or partner, or majority shareholder, of NPHS shall (a) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian or the like of its property, (b) fail to pay or admit in writing its inability to pay its debts generally as they become due, (c) make a general assignment for the benefit of creditors, (d) be adjudicated a bankrupt or insolvent, or (e) commence a voluntary case under the Federal bankruptcy laws of the United States of America or file a voluntary petition that is not withdrawn within ten (10) calendar days after the filing thereof seeking an arrangement with creditors or an order for relief or seeking to take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against it in any bankruptcy or insolvency proceeding. (v)If without the application, approval or consent of NPHS, a proceeding shall be instituted in any court of competent jurisdiction, under any law relating to bankruptcy, in respect ofNPHS or any constituent member or partner, or majority shareholder, of NPHS, for an order for relief or an adjudication in bankruptcy, a composition or arrangement with creditors, a readjustment of debts, the appointment of a trustee, receiver, liquidator or custodian or the like of NPHS or of all or any substantial part of NPHS 's assets, or other like relief under any bankruptcy or insolvency law, and, if such proceeding is being contested by NPHS, in good faith, the same shall (a) result in the entry of an order for relief or any such adjudication or appointment, or (b) continue undismissed, or pending and unstayed, for any period of ninety (90) consecutive calendar days. (vi)Voluntary cessation of the operation of the Project for a continuous period of more than thirty (30) calendar days or the involuntary cessation of the operation of the Project for a continuous period of more than sixty (60) calendar days. (vii)A mechanic's lien or any other type of encumbrance on any Eligible Property resulting from NPHS 's failure to fulfill its financial or other Packet Page.255 55600.00203 \4319693 7.2 contractual obligations with respect to any of its vendors, contractors, or sub-contractors is not removed, or bonded against to satisfaction of the City in its sole discretion, within ten (10) calendar days after receipt of written notice of such default from City. B.City Remedies. Upon the occurrence of an Event of Default hereunder, City may, in its sole discretion, take any one or more of the following actions: (i)Cease making any payment of fees or reimbursement of eligible expenses to NPHS or under the OORP Loans unless and until the Event of Default (if curable) is cured. (ii)Demand reimbursement from NPHS for any payments made to it or under the OORP Loans by City for which the contracted work product was not satisfactorily delivered by NPHS. (iii)Take possession of any material or other work product purchased or produced by NPHS for the Project. (iv)Upon the occurrence of an Event of Default which is occasioned by NPHS's failure under this Agreement to pay money to a third party, City may, but shall not be obligated to, make such payment. If such payment is made by City, NPHS shall deposit with City, upon written demand therefor, such sum plus interest at the rate of ten percent (10%) per annum compounded annually. The Event of Default with respect to which any such payment has been made by City shall not be deemed cured until such repayment (as the case may be) has been made by NPHS. (v)Upon the occurrence of an Event of Default described in Section 14.A.(iii) or 14.A.(iv) hereof, City shall be entitled and empowered by intervention in such proceedings or otherwise to file and prove a claim for any amount owing to City under this Agreement and unpaid and, in the case of commencement of any judicial proceedings, to file such proof of claim and other papers or documents as may be necessary or advisable in the judgment of City and its counsel to protect the interests of City and to collect and receive any monies or other property in satisfaction of its claim. C.City Default and NPHS Remedies. Upon failure of City to meet any of its obligations under this Agreement without curing such failure within forty-five (45) calendar days after receipt of written notice of such failure from NPHS specifying the nature of the event or deficiency giving rise to the default and the action required to cure such deficiency, NPHS may, as its sole and exclusive remedy, terminate this Agreement, and City will only disburse HOME Funds for that portion of the Services that are properly supported by documentation requested by City and that has been fully and adequately completed and accepted by City as of or prior to the date of such termination. (i)Without limiting the generality of the foregoing, NPHS shall in no event be entitled to, and hereby waives, any right to seek incidental or Packet Page.256 consequential damages of any kind or nature from City arising out of or in connection with this Agreement, and in connection with such waiver NPHS is familiar with and hereby waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN ms OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY IBM OR HER, WOULDHAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY." NPHS further waives the benefit of any other statute, rule, regulation, or common law principle to the same or similar effect. SECTION 15.Termination for Convenience. A.This Agreement may be terminated by City at any time prior to its expiration for any reaso\1- by giving NPHS thirty (30) calendar days' prior written notice. IfNPHS is in compliance with this Agreement on the date such termination takes effect, City shall pay NPHS the reasonable value of all work authorized by City pursuant to this Agreement prior to the date of such notice and completed thereafter prior to the effective termination date. B.In the event of a termination of this Agreement pursuant to this Section, NPHS shall comply with Section 5.B of this Agreement. SECTION 16.HOME Funds; OORP Loans. A.Subject to the terms and conditions of this Agreement, City shall make OORP Loans to Eligible Households for the purpose of paying for the rehabilitation of Eligible Properties, including eligible soft costs, that are not owned by City. City shall commit an aggregate principal amount not to exceed Four Hundred Fifty Thousand Dollars and Zero Cents ($920,000.00) of HO:tv!E Funds to funding the OORP Loans and paying NPHS's costs of administering the OORP Loans. The principal amount of each individual OORP Loan shall not exceed Forty Thousand Dollars and Zero Cents ($40,000.00) based on the total Rehabilitation Costs and eligible soft costs for each Eligible Property. B. NPHS agrees it is responsible for all application, intake, and verification procedmes prior to the OORP Loans being made to Eligible Households pursuant to this Agreement, including, but not limited to, ensuring each Eligible Household and Eligible Property meet the eligibility requirements in a rnanner consistent with the Program Guidelines and HOME Regulations, including utilization of the HOME Guide for Review of Homeowner Rehabilitation Projects, attached to this agreement as Attachment "H," in accordance with the Scope of Services. Income eligibility for each Eligible Household must be determined at 55600.00203\43I 96937.2 Packet Page.257 55600.00203 \4319693 7.2 the time the OORP Loan is entered into, but in no event more than six (6) months prior to the provision of HOME assistance, in compliance with 24 C.F.R. § 92.203. Each Eligible Household must provide evidence satisfactory to City of its ownership interest in the Eligible Property in compliance with 24 C.F.R. § 92.254(c). The estimated post-rehabilitation value of an Eligible Property may not exceed ninety-five percent (95%) of the median purchase price for the area, as established by HUD, in compliance with 24 C.F.R. § 92.254(a)(2)(iii). C.Disbursements from the OORP Loans will be made for construction or rehabilitation work performed on an Eligible Property for direct payment of services rendered or products delivered. NPHS's administrative costs will only be paid from HOME Funds on a reimbursement basis. SECTION 17.Discrimination Prohibited. A. NPHS shall not discriminate against any person on the basis of race, color, creed, religion, national origin, ancestry, sex, marital status or physical handicap in the performance of the Scope of Services of this Agreement. Without limitation, NPHS hereby certifies that it will not discriminate against any employee or applicant for employment because of race, color, religion, sex, marital status or national origin. Further, NPHS shall promote affirmative action in its hiring practices and employee policies for minorities and other designated classes in accordance with federal, state and local laws. Such action shall include, but not be limited to, the following: recruitment and recruitment advertising, employment, upgrading and promotion. In addition, NPHS shall comply with all state and federal laws prohibiting the exclusion from participation under this Agreement of any employee or applicant for employment on the basis of age, handicap or religion. SECTION 18.Effect of Covenants. City is the beneficiary of the terms and provisions of this Agreement and of the restrictions and affordable housing covenants running with the land with respect to the Eligible Properties, whether or not appearing in the OORP Loan Agreement, the Note or the Deed of Trust, for and in its own right and for the purposes of protecting the interests of the community in whose favor and for whose benefit the covenants running with the land have been provided. The covenants in favor of City shall run without regard to whether City has been, remains or is an owner of any interest in an Eligible Property, and shall be effective as both covenants and equitable servitudes against the Eligible Property. If any of the covenants referred to in this Agreement are breached, City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to compel the curing of such breaches to which it may be entitled. SECTION 19.Notices. A.Notices, demands, and communications between City and NPHS shall be sufficiently given if personally delivered or delivered by a nationally-recognized courier service or sent by registered or certified mail, postage prepaid, return receipt requested, to the following addresses: lfto City: City of San Bernardino Packet Page.258 55600.00203 \4319693 7.2 Division Community and Economic Development - Housing 201 North "E" Street, Third Floor San Bernardino, CA 92401 Phone: (909) 384-7270 or (909) 384-7258 lfto NPHS: NPHS Community Redevelopment, Inc. Attn: Clemente Mojica, President & CEO 9551 Pittsburgh Avenue Rancho Cucamonga, CA 91730 Phone: (909) 988-5274 B.Notices shall be effective upon receipt, if given by personal delivery; upon receipt, if emailed, provided there is written confirmation of receipt (except that if received after 5 p.m., notice shall be deemed received on the next business day); the earlier of (i) three (3) business days after deposit with United States Mail, or (ii) the date of actual receipt as evidenced by the return receipt, if delivered by certified mail; or (iii) one (1) day after deposit with the delivery service, if delivered by overnight guaranteed delivery service. Each party shall promptly notify the other party of any change(s) of address to which notice shall be sent pursuant to this Section. SECTION 20.Compliance with Laws. NPHS shall comply with all Applicable Governmental Restrictions. As used herein, "Applicable Governmental Restrictions" shall mean and include any and all laws, statutes, ordinances, codes, rules, regulations, directives, writs, injunctions, orders, decrees, rulings, conditions of approval, or authorizations, now in force or which may hereafter be in force, of any governmental entity, agency or political subdivision as they pertain to the performance of this Agreement or construction/reconstruction of the Project, including specifically but without limitation all code and other requirements of the jurisdiction in which the Project is located; the National Environmental Policy Act of 1969, as amended; fair housing laws; any other applicable federal, state and local law; and, without limitation, the HOME Regulations. NPHS shall maintain all necessary licenses and registrations for the lawful performance of the work required of NPHS under this Agreement. NPHS shall indemnify, defend with counsel selected by City, and hold City and the other Indemnitees harmless for any suit, cost, attorneys' fees, claim, administrative proceeding, damage, wage award, fine, penalty or liability arising out of or relating to NPHS's failure to comply with any Applicable Governmental Restrictions, including, without limitation, the nonpayment of any prevailing wages required to be paid in connection with the Project, as applicable. NPHS is solely responsible for determining the applicability of laws, and shall not rely on statements by City as to the existence, effect, or applicability of such laws. SECTION 21.NPHS and each Subcontractor are Independent Contractors. NPHS shall at all times during the performance of any work described in the Scope of Services be deemed to be an independent contractor. Neither NPHS nor any of its contractors or subcontractors shall at any time or in any manner represent that it or any of its employees are employees of City. City shall not be requested or ordered to assume any liability or expense for the direct payment of any salary, wage or benefit to any person employed by NPHS or its contractors or subcontractors to perform any item of work described in the Scope Packet Page.259 55600.00203 \4319693 7.2 of Services. NPHS is entirely responsible for the immediate payment of all subcontractor and material supplier liens. No person providing consultant services to NPHS in an employer-employee type relationship shall receive more than a reasonable rate of compensation for personal services paid with HOME Funds in compliance with 24 C.F.R. § 92.358. SECTION 22.Severability. Each and every section of this Agreement shall be construed as a separate and independent covenant and agreement. If any term or provision of this Agreement or the application thereof to certain circumstances shall be declared invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to circumstances other than those to which it is declared invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. SECTION 23.Amendment or Modification. This Agreement may only be modified or amended by written instrument duly approved and executed by each of the Parties hereto, following all necessary approvals and authorizations for such execution. SECTION 24.Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action arising from or related to this Agreement shall be brought in the Superior Court of the State of California in and for the County of San Bernardino. SECTION 25.Non-waiver. Failure of City to enforce or delay in enforcement of any provision of this Agreement shall not constitute a waiver of the right to compel enforcement of the same provision or any remaining provisions of this Agreement. SECTION 26.Assignment. NPHS acknowledges that the qualifications and identity of NPHS are of particular importance to the City, and the City has relied and is relying on the specific qualifications and identity of NPHS in entering into this Agreement. This Agreement shall be assignable by NPHS only with the prior express written consent of City, which consent may be withheld by City in its sole discretion. For purposes of this section, an assignment includes any merger, consolidation, sale, or lease of all or substantially all of the assets of NPHS or a series of such sales, assignments and the like that, in the aggregate, result in a disposition of more than a 49% interest of all or substantially all of the assets of NPHS. Notwithstanding anything to the contrary in this Agreement, no purported assignment of this Agreement shall be effective if not approved by City or if such assignment would violate any Applicable Governmental Restrictions, and the City may elect to terminate this Agreement or exercise any other remedy available to the City herein, at law, or in equity after any assignment or other transfer is made or attempted Packet Page.260 55600.00203 \4319693 7.2 to be made without City approval. City's consent to any assignment shall be expressly conditioned upon (i) the assignee's execution of such documents as required by City in its sole discretion, including, without limitation, any and all documents deemed necessary by City to provide for said assignee's assumption of all of the obligations of NPHS hereunder and wider any documents executed by NPHS in connection herewith, and (ii) City's approval of the financial condition and credit-worthiness of such proposed assignee and the assignee's ability to perform all of NPHS's obligations under this Agreement and all documents executed in connection herewith, as may be determined by City in its sole discretion. SECTION 27.Representations of Persons Executing this Agreement. The persons executing this Agreement warrant that they are duly authorized to execute this Agreement on behalf of and are legally able to bind the respective party that each purports to represent. NPHS is a California nonprofit public benefit corporation, lawfully entitled to do business in the State of California, and has the legal right, power, and authority to enter into this Agreement and the instruments and documents referenced herein. NPHS has taken all requisite action and obtained all requisite consents in connection with entering into this Agreement and the instruments and documents referenced herein and the consummation of the transactions contemplated hereby, and no consent of any other party is required for the NPHS's authorization to enter into Agreement. Neither the execution of this Agreement nor the consummation of the transactions contemplated hereby shall result in a breach of or constitute a default under any other agreement, document, instrument or other obligation to which NPHS is a party or by which NPHS may be bound, or under law, statute, ordinance, rule, governmental regulation or any writ, injunction, order or decree of any court or governmental body applicable to NPHS or to the Project. NPHS acknowledges that the execution of this Agreement by City has been made in material reliance by City on the representations, warranties, and covenants made by NPHS. IfNPHS becomes aware of any act or circumstance that would change or render incorrect, in whole or in part, any representation or warranty made by NPHS under this Agreement, whether as of the date given or any time thereafter, whether or not such representation or warranty was based upon NPHS 's knowledge and/or belief as of a certain date, NPHS will give immediate written notice of such changed fact or circumstance to the City. SECTION 28.Execution in Counterparts. This Agreement may be executed in one (1) or more counterparts, each of which will constitute an original. SECTION 29.Effectiveness of This Agreement as to City. This Agreement shall not be binding on City until approved by the City Council and signed by an authorized representative of NPHS and executed by the City Manager or his or her designee. Packet Page.261 55600.00203 \4319693 7.2 SECTION 30.Conflicts of Interest. A.NPHS hereby represents that it has no interests adverse to City at the time of execution of this Agreement. NPHS hereby agrees that, during the term of this Agreement, NPHS shall not enter into any agreement or acquire any interests detrimental or adverse to City. Additionally, NPHS hereby represents and warrants to City that NPHS and any partnerships, individual persons or any other party or parties comprising NPHS, together with each subcontractor who may hereafter be designated to perform services pursuant to this Agreement, do not have and, during the term of this Agreement, shall not acquire any property ownership interest, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements relating to City, property over which City has jurisdiction or any members or staff of City that have not been previously disclosed in writing to City, and that any such property ownership interests, business interests, professional employment relationships, contractual relationships of any nature or any other financial arrangements will not adversely affect the ability of NPHS to perform the services to City as set forth in this Agreement. B.NPHS shall comply with the conflict of interest provisions set forth in 24 C.F.R. § 92.356(f). SECTION 31.Non-Exclusivity. This Agreement shall not create an exclusive relationship between City and NPHS for the Scope of Services as set forth in Attachment "A" or any similar or related services. City may, during the term of this Agreement, contract with other persons or entities for the performance of the same, similar or related services as those that may be performed by NPHS under this Agreement. City reserves the discretion and the right to determine the amount of services to be performed by NPHS for City under this Agreement, including not requesting any services at all. This Agreement only sets forth the terms upon which any such services will be provided to City by NPHS, if such services are requested by City, as set forth in this Agreement. SECTION 32.Consequential Damages and Limitation of Liability. City and NPHS agree that except as otherwise provided in this Agreement, including without limitation Section 11 hereof, in no event will either Party be liable to the other under this Agreement for any damages, including, but not limited to, special damages, loss of revenue, loss of profit, operating costs or business interruption losses, regardless of cause, including breach of contract, negligence, strict liability or otherwise. The limitations and exclusions of liability set forth in this Section 32 shall apply regardless of fault, breach of contract, tort, strict liability or otherwise of NPHS and City, their employees, contractors, agents, subcontractors, or officials. SECTION 33.Business Registration Certificate. NPHS warrants that it possesses, or shall obtain immediately after the execution and delivery of this Agreement, and maintain during the period of time that this Agreement is in effect, a business registration certificate pursuant to Title 5 of City of San Packet Page.262 55600.00203 \4319693 7.2 Bernardino Municipal Code, together with any and all other licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to be maintained by NPHS to conduct its business activities within City. SECTION 34.Enforced Delays: Extension of Time for Performance. A.Neither Party shall be deemed to be in default where delays or defaults in its performance under this Agreement are due to force majeure events beyond the reasonable control of such Party, including, without limitation, war, insurrection, strikes, lockouts, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, quarantine restrictions, government imposed moratorium legislation, freight embargoes, lack of transportation, weather-caused delays, inability to secure necessary labor, materials or tools, or delays of any contractor, subcontractor or supplier that are not attributable to the fault of the Party claiming an extension of time, that delay the commencement of construction of the Project or, after such construction is commenced; suspend the prosecution of the work of improvement of the Project. An extension of time for any such force majeure cause shall be for the period of the enforced delay and shall commence to run from the date of occurrence of the delay; provided, however, that the Party claiming the existence of the delay first provides the other Party with written notice of the occurrence of the delay, within ten (10) calendar days after the commencement of such occurrence of a force majeure event and, thereafter, takes prompt and reasonable action within its control to restore, reconstruct or rebuild any damage to the Project caused by such force majeure event and resume regular business operation. B.The failure of City to provide any necessary approval relating to the performance or completion of the Project or the inability of NPHS to satisfy any other condition of this Agreement relating to the Project shall not be deemed to be a force majeure event or otherwise provide grounds for the assertion of the existence of a forced delay under this Section 34. The Parties each expressly acknowledge and agree that changes in either general economic conditions or the economic assumptions of either of them that provided a basis for entering into this Agreement occurring at any time after the execution of this Agreement are not force majeure events and do not provide either Party with grounds for asserting the existence of a forced delay in the performance of this Agreement. Each Party expressly assumes the risk that changes in general economic conditions or changes in their economic assumptions could impose an inconvenience or hardship on the continued performance by such Party under this Agreement and that such inconvenience or hardship is not a force majeure event and does not excuse the performance by such Party of its obligations under this Agreement. SECTION 35.Labor Provisions - California Law. Unless otherwise exempted pursuant to applicable provisions of California law, the prevailing wage provisions, including but not limited to those regarding payrolls, records, apprentices and trainees, shall apply to NPHS's performance of services pursuant to this Agreement. NPHS agrees to assume the responsibility and be solely responsible for determining whether or not laborers employed in connection with the Project must be paid the prevailing per diem wage rate for their labor classification. SECTION 36. Hazardous Materials. Packet Page.263 55600.00203 \4319693 7.2 A.NPHS represents and warrants that it has not deposited "Hazardous Materials" (as defined below) in or upon any Eligible Property and NPHS covenants that it shall not deposit or permit the deposit of Hazardous Materials in or upon any Eligible Property. NPHS further covenants to remove or remediate, at its expense (subject to any reimbursement it may be able to obtain from third parties) any Hazardous Materials located in or upon the Eligible Property as of the date hereof or which are deposited in or upon the Eligible Property from and after the date hereof and during NPHS's performance of this Agreement, including any asbestos, lead-based paint and any other Hazardous Materials located in or on the site of the Project, to the extent required by and in accordance with the requirements of all Applicable Governmental Restrictions, including, without limitation, all applicable environmental laws. B.The foregoing shall not be construed or understood to prohibit NPHS from allowing Hazardous Materials to be brought upon the Project site so long as they are materials that are customary to the normal course of business in the operation of a well- designed residential unit, in de minimis amounts, and so long as such materials are used, stored, and disposed of in accordance with all Applicable Governmental Restrictions. C.Except with respect to any claims ansmg solely and directly out of the gross negligence or misconduct of City, NPHS shall, at its sole cost, indemnify, protect, defend with counsel selected by City, and hold City and its members, directors, agents, representatives, officers, officials, and employees harmless from and against any and all present and future claims, demands, damages, losses, liabilities, obligations, penalties, fines, actions, causes of action, judgments, suits, proceedings, costs, disbursements and expenses, including, without limitation, attorney fees, disbursements and costs of attorneys, environmental consultants and other experts, and all foreseeable and unforeseeable damages or costs of any kind or of any nature whatsoever relating to or arising in connection with, directly or indirectly, in whole or in part, the presence of any Hazardous Materials existing or deposited (or claimed to have been deposited) from and after the date hereof on, in, under, from, or affecting any Eligible Property or the Project or in connection with NPHS's performance of this Agreement, including, without limitation: (i)any deposits of Hazardous Materials described in Subsection B . above; (ii)the storage, holding, handling, release, threatened release, discharge, generation, leak, abatement, removal, or transportation of, or failure to lawfully store, handle, hold, remove, contain, transport, dispose, abate, or remediate, any Hazardous Materials; (iii)any investigation, inquiry, order, hearing, action or other proceeding by or before any governmental agency or any violation of a law, rule, ordinance, regulation, judgment, order, permit, license, agreement, covenant, restriction, requirement, or similar, by NPHS, its agents, representatives, or contractors and subcontractors of any tier, relating to or governing in any way Hazardous Materials; (iv)any failure of NPHS, its agents, representatives, or contractors and subcontractors of any tier, to properly complete, obtain, submit, and/or file any and all notices, permits, licenses, authorizations, covenants, or similar in connection with the Project; or (v)implementation and enforcement by NPHS, its agents, representatives, or contractors and subcontractors of any tier, of any monitoring, notification, or Packet Page.264 55600.00203\43196937,2- other precautionary measures that may, at any time, become necessary to protect against the release, potential release or discharge of Hazardous Materials. The provisions of this section shall survive the termination or earlier expiration of this Agreement and shall not merge into any deeds conveying ownership of any of the Eligible Properties. Jn connection with this release and waiver, NPHS is familiar with and hereby knowingly and voluntarily waives the provisions of Section 1542 of the California Civil Code which provides as follows: "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT 1HE CREDITOR OR REL:E!ASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR ATTIIB TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITII THE DEBTOR OR RELEASED PARTY." NPHS further waives the benefit of any other statute, rule, regulation, or common law principle to the same or similar effect. D.For purposes of this Agreement, the term ''Hazardous Materials" mean , ithout limitation, gasoline, petrolewn produc,ts explosives, radioactive materials, ardous materials, hazardous wastes, hazardous or toxic substances, poJy,ch hrinated biphenyls or: related or sirnilar materials, asbestos or any other substance or materiat as may now or hereafter be defined as a hazardous or toxic substance or material, solid waste, pollutant. contaminant , or similar term by any federal, state or local environmental law, ordinance, rule, or regulation that regulates, relates to, or imposes liability or standards of conduct conceming any such hazardous materials, pertaining to occupational health or industrial hygiene applicable to the Project, or other occupational or environmental conditions (such as ambient air, soil, soil vapor, groundwater, surface water, or land use), including, without limitation, (i) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act (42 U.S.C. Section 9601-9675), (ii) the Federal Water Pollution Control Act (33 U.S,C. Section ] 251 et seq.), (iii) the Clean Air Act (42 U.S.C. Section 7401 et seq.), (iv) the Resource Conservation and Recovery Act, as amended by the Hazardous and Solid Waste Amendments of 1984 (42 U.S.C. Section 6901-6992k), (v) the Toxic Substances Control Act (15 U.S.C. Section 2601-2629), (vi) the Hazardous Materials Transportation Act (49 U.S.C. Section 5101-5128), (vii) the Carpenter-Presley- Tanner Hazardous Substance Account Act (CA Health & Safety Code Section 25300-2539S.45), (viii) the Hazardous Waste Control Law (CA Health & Safety Code Section 25100 et seq.), (ix) the Porter-Cologne Water Quality Control Act (CA Water Code SectioJJ 13000 et seq.), (x) the Safe Drinking Water and Toxic Enforcement Act of 1986 (CA Health & Safety Code Section 25249.5 - 25249.13), (xi) the Hazardous Materials Release Response Plans and Inventory (CA Health & Safety Code Section 25500-25547.8), (xii) the Air Resources Law (CA Health & Safety Code Section 39000 et seq.), (xiii) California Environmental Quality Act (CEQA), Public Resources Code, Sections 21000, et seq., or (xiv) in any of the regulations adopted or publications promulgated pursuant to the foregoing. IN WITNESS WHEREOF, City and NPHS have each executed this Agreement, to be effective as of the Effective Date, as defined in this Agreement. Packet Page.265 55600.00203\43196937.2 "CITY" CITY OF SAN BERNARDINO, a municipal corporation and charter city Dated: _By:___________ Rochelle Clayton, City Manager APPROVED AS TO FORM: By: City Attorney "SUBRECIPIENT" NPHS Community Redevelopment, Inc,, a California nonprofit public enefit corporation Clemente Mojica, Packet Page.266 55600.00203 \4319693 7.2 Attachment "A" to Master Agreement Scope of Services A.Introduction HOME Funds will be used to rehabilitate the homes of income-qualified homeowners who reside within the City of San Bernardino. Financial assistance will be provided in the form of a forgivable payment loan not to exceed $40,000 per loan, pursuant to terms as allowed under the City's Owner Occupied Rehabilitation Program. Repairs and improvements to homes include, but are not limited to, essential and general property improvements; costs of meeting rehabilitation standards and applicable codes; energy-related improvements; lead-based paint hazard reduction; accessibility improvements; repair or replacement of major housing systems, and site improvements and utility connections, all as more specifically described in the City's Program Guidelines, which are incorporated herein by this reference. Emergency repairs, weatherization and accessibility improvements are eligible improvements only if they are undertaken as part of a comprehensive rehabilitation program. HOME Funds may further be used for soft costs associated with the rehabilitation, relocation costs, to the extent they are applicable if tenants are living in the other units, and refinancing of existing debt provided certain conditions are met, as more specifically set forth in the City's Program Guidelines. NPHS shall be responsible for serving as the Program Administrator and carrying out all duties of the Program Administrator as set forth in the Program Guidelines for the Term of this Agreement. NPHS shall be responsible for all application, intake and verification procedures for Residential Rehabilitation Loans made to Eligible Households pursuant to the Program, including but not limited to ensuring the Eligible Households and the Eligible Property meet the eligibility requirements for the Program in a manner consistent with the Program Guidelines and HOME Regulations, including utilization of the HOME Guide for Review of Homeowner Rehabilitation Projects, attached to this agreement as Attachment "H"; that the loan recipients execute a OORP Loan Agreement, promissory note and deed of trust for the loan in a form approved by the City; reviewing and documenting bids received for rehabilitation work; and issuing a notice to proceed for the rehabilitation work; ensuring that the Eligible Household's contractor enters into all agreements and commitments required pursuant to the Program Guidelines, including, but not limited to, the Agreement for Home Improvement and the Owner Occupied Rehabilitation Program Guaranty Form; ensuring that that proceeds of the OORP Loans are spent on Rehabilitation Costs; ensuring that the rehabilitation work is done in accordance with the Program Guidelines, and HOME Regulations; and preparing and maintaining all project files in accordance with the Program Guidelines. B.Budget Packet Page.267 55600.00203 \4319693 7.2 The approved budget is Nine Hundred Twenty Thousand Dollars and Zero Cents ($920,000.00), to rehabilitate Eligible Properties, subject to the Maximum Per Unit Subsidy Limits established by HUD. Proceeds will be utilized for future properties. Item Description Estimated Quantity Unit Price Subtotal 1 Deferred Loan to eligible Homeowners 20 $ 40,000*$ 800,000 2 Administration (15% of each total project's cost)20 $ 6,000 $120,000 Total $46,000 $ 920,000 *Not to exceed $40,000 C.Program Delivery 1.General Requirements. a.As part of the Services, NPHS agrees that it will make available a primary staff person on an as needed basis within close proximity to the project sites in order to successfully complete program activities. b. NPHS warrants that it has the expertise and experience to perform the Services set forth in the Agreement and that it will perform said Services pursuant to the Agreement and as stated in this Scope of Services. c. NPHS will document performance on a Monthly Report, report will be in a form satisfactory to the City. The Monthly Report will be due on the 15th day of the month. Progress reports will be used by the City in evaluating time extensions requests, if any. d. NPHS will provide notification to the City of any audits or investigations including results, findings and/or liens within ten (10) calendar days after NPHS has obtained information regarding such audits or investigations and the results, findings and/or liens. Packet Page.268 55600.00203 \4319693 7.2 Attachment "B" to Master Agreement Program Guidelines CITY OF SAN BERNARDINO HOMEOWNER OCCUPIED REHABILITATION PROGRAM POLICIES AND PROCEDURES Packet Page.269 55600.00203 \4319693 7.2 Table Of Contents I.General Provisions A. Purpose B.Program Eligibility C.Program Funding Source D.Program Administrator E.Funds for Improvements F.Environmental Clearance G. Davis Bacon & Related Acts (DBRA) H.Section 3 I.Equal Opportunity J.Relocation K.Applicability of Federal State and Local Regulations/ Authority to administer II.Program Assistance A.Residential Rehabilitation Program Assistance B.Terms and Obligations III.Eligibility Requirements A.Ownership B.Property Title C. Principal Residence D.Location E.Homeowners Insurance F.Household Income G.Credit and Debit Ratios H. Loan to Value Ratios I.Improvements J.Conflict of Interest K.Interest List and Program Marketing IV.Lead Based Paint Requirements V.Historic Preservation Process VI.Required Record Keeping and File Retention VII.Program Changes VIII.Program Database IX.Exhibits Packet Page.270 55600.00203 \4319693 7.2 General Provisions A.Purpose The City of San Bernardino initiated the Owner Occupied Rehabilitation Program (OORP or Program) to comply with the regulatory requirements of 24 CFR 92.25l(b); improve the quality of life for income-eligible households by assisting with property repairs and improvements necessary to make their homes decent, safe and attractive; and to preserve the City' s housing stock. The following guidelines serve as the minimum administrative requirements for the OORP and are intended to reinforce and not supplant prudent underwriting practices, when considering Program applications. B. Program Funding Source The primary funding source for the Program is HOME Investment Partnerships Program (HOME) funds provided to the City from the US Department of Housing and Urban Development (HUD) as identified in the City's Consolidated Plan. C. Program Administrator NPHS Community Redevelopment, Inc. (NPHS) has been selected as the Program Administrator (PA) for the City's Owner Occupied Rehabilitation Program. Application, intake and verification procedures will be in accordance with the established PA's policies and procedures. Program administration fee shall be actual costs incurred but cannot exceed 10% of each Loan amount. D.Funds for Improvements HOME funds shall be budgeted annually through the City's Consolidated Plan/Annual Plan process and regular budget process. Program funds are not guaranteed and subject to availability. E. Environmental Clearance Use of HUD funds requires all programs and activities to be cleared per 24 CFR part 58. The OORP is categorically excluded per 58.35(a)(3)(i) subject to 58.5 and requires a Tiered Environmental Review as follows: First Tier will cover the program on a eligible area basis and will include clearance of coastal zones, environmental justice , air quality, noise, sole source aquifer, endangered species, wild and scenic rivers , farmlands, wetlands, and airport clear zone. The Second Tier will focus on the specific property to be rehabilitated and will cover the historic property, SHPO, floodplain, explosives, and toxic sections. Emergency repairs are not subject to SHPO concurrence. Tiered Environmental Review will be completed by the City. F.Davis Bacon & Related Acts (DBRA) Per Section 110 of the Housing and Community Development Act of 1974 - DBRA does not apply to rehabilitation of residential property designed for fewer Packet Page.271 55600.00203 \4319693 7.2 than 8 families. G.Section 3 Per the Section 3 Frequently Asked Questions found at http://portal.hud.gov /hudportal/documents/huddoc?id=l lsecfaqs.pdf question 11 states "Section 3" does not include contractors or any intended beneficiary under the HUD program to which Section 3 applies, such as a homeowner or a Section 3 resident. As such, the funds used on the Owner Occupied Rehabilitation Program are not subject to the Section 3 Requirements. H.Equal Opportunity Applicants will not be discriminated against on the basis of race, color, religion, sex, sexual orientation, creed, ancestry, national or ethnic origin, age, family or marital status, handicap or disability, or any other arbitrary basis. In addition, applicants may not discriminate in the use, occupancy, and awarding of contracts with respect to the property to be rehabilitated with the assistance of an OORP loan. I.Relocation Relocation is not contemplated as a part of this rehabilitation activity, however if an unanticipated event occurs which requires temporary relocation, such relocation shall be performed in compliance with the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970 and Section 104(d) and may be paid for using program funds. Relocation regarding Lead-Based Paint reference section IV. Lead Based Paint Requirements. J.Applicability of Federal State and Local Regulations/ Authority To administer While all Program funds are subject to the requirements of these Guidelines, there may be additional special provisions and limitations depending on changing requirements of the funding source. Consequently, additional requirements not shown in these Guidelines may apply and, thus, the Community and Economic Development Director (Director) or his/her designee may amend these Guidelines from time to time to reflect changes in the requirements of the funding source for this Program as required. II.Program Assistance Packet Page.272 55600.00203 \4319693 7.2 Income-qualified Applicants shall receive assistance to rehabilitate their homes in accordance with the rehabilitation standards in the City's HOME Program Manual; subsequent to the submittal of a complete application inclusive of all required documentation as required by the HOME Program Guidelines. A.Owner Occupied Rehabilitation Program Assistance The PA provides owners of single family (one-to-four units) homes, condominiums and townhomes, a membership in a cooperative or mutual housing project that constitutes homeownership under state law ; manufactured housing or an equivalent form of ownership approved by HUD at or below 80% of the Area Median Income (AMI) with home rehabilitation forgivable loans at a three percent interest rate per annum with no payments required unless one of the following actions occur after receipt of the loan: property sale, transfer of title of the property, the applicant ceases to occupy the home as their primary residence, or the applicant refinances the property to take cash out or receive an equity line of credit. The principal amount of the loan is forgiven at a rate of twenty percent per year starting with the sixth anniversary of the loan, and described in more detail below. B.Terms and Obligations (i) Owner Occupied Rehabilitation Loans I Target Income Group:I < 80% of area median income Maximum Amount:$40,000 Interest Rate:Three percent (3%) Project Location:Citywide Repayment:All loans are forgiven twenty percent each year starting with the sixth anniversary and ending on the tenth anniversary, at which time the entire balance shall be forgiven. Loans are all deferred loans at 3% interest per annum, with no payments due on the loan unless one of the following actions occur after receipt of the loan; property sale, transfer of title of the property, the borrower/owner ceases to occupy the home as their primary residence, the borrower/owner refinances the property to take cash out or receive an equity line of credit, or upon settlement of the borrower/owner's estate. Any repayments will be recorded as HOME program income. Packet Page.273 55600.00203 \4319693 7.2 Essential and general property improvements; costs of meeting rehabilitation standards and applicable codes; energy-related improvements; lead-based paint hazard reduction; accessibility improvements; repair or replacement of major housing systems, and site improvements and utility connections, to meet the City's rehabilitation standards per 24 CFR 92.251(b)(l), as set forth in the City's HOME Program Manual. Eligible Costs include but not limited to: Packet Page.274 55600.00203 \4319693 7.2 III.Eligibility Requirements A.Ownership The Applicant must be listed on the Grant Deed or equivalent document demonstrating ownership of the home. Title must be held as Fee Simple or the owner may have a 99-year ground lease, or an equivalent form of ownership approved by HUD. For manufactured housing, land must be owned by the manufactured housing owner or leased for a period at least equal to the duration of the affordability period. B.Property Title The property title shall be free of all liens or encumbrances as determined by the PA that may be detrimental to the security of the City's Loan. C.Principal Residence Single-family homes, condominiums and townhomes a membership in a cooperative or mutual housing project that constitutes homeownership under state law; manufactured housing or an equivalent form of ownership approved by HUD are eligible for OORP assistance. D.Location The dwelling unit must be located within the San Bernardino city limits. E.Maximum Property Value The post-rehabilitation value of a HOME-assisted property may not exceed 95 percent of the median purchase price for the area. In order to determine area median purchase price, the PA may use one of the following methods: •Use HUD published values homeownership values; or •Estimate area home values with either a local market analysis, a professionally-prepared property appraisal or tax assessments for comparable area properties (tax assessments must be current). The City currently uses HUD-published homeownership value limits, which are published annually at https://www.hudexchange.in fo/resource/2312/home-maximum-purchase-price-after- rehab-value/. Per HUD requirements, if in any case the City chooses to determine their own home value limits, this process must adhere to procedures described in §92.254(2). F.Loan to Value Ratio The City will take junior lien position only on properties where the LTV ratio does not exceed 90%. The City will only take a third junior lien position with a 90% Loan to Value. G.Homeowners Insurance Packet Page.275 55600.00203 \4319693 7.2 The homeowner shall maintain fire insurance coverage on the property and flood insurance if the property is within a floodplain. The minimum insurance coverage must be equal to the replacement value of attached improvements on the property. H.Household Income Family gross annual income may not exceed the low-income limits defined as up to 80 percent of the San Bernardino County area median income (AMI) adjusted for household size and determined annually by the U.S. Department of Housing and Urban Development (HUD). For calculating household income, the Part 5 definition of income (24 CFR Part 5.609) must be used. The PA may use the CPD Income Eligibility Calculator to determine eligibility. The calculator can be found at https://hudexchange.info/incomecalculator/. a. Improvements In order to qualify and to be eligible, no work shall commence prior to: I.Application approval; IL Full execution of OORP Agreement; III. Full execution of Agreement for Home Improvement for work to be done on the Principal Residence and; IV. Full execution by the homeowner of a Promissory Note and Deed of Trust in a form approved by the City. IV. Issuance of a Notice to Proceed by the Program Administrator and the City. H. Contractor Selection I.Eligibility - All prospective Contractors must submit or must have submitted, within the past 3 years, a Contractor Application to PA which will allow the PA to collect all pertinent information to determine contractor eligibility (i.e. DUNS number, Tax ID, etc). Contractor failure to submit a Contractor Application may result in a "non-responsive" bid and disqualify the contractor from consideration. Upon Receipt of bids from prospective contractors, PA will determine contractor eligibility by conducting the following: Verify Contractor Application is on file; upon confirmation of complete Contractor Application on file, NPHS shall conduct the following searches for each prospective contractor: Debarred/Suspended Search (PA shall not conduct business with contractors who are excluded/debarred from conducting business with any federal agency. NPHS shall ensure that the prospective Contractor is not excluded/debarred from conducting business with any federal agency by conducting a search on the federal System for Award Management website at www.sam.gov. To comply with this requirement, Contractors must provide their DUNS number on the Contractor Application. Prospective contractors, who do not have a DUNS number at time of bid submittal, must request one by accessing the following website: http://fedgov.dnb.com/webform/displayHomePage.com.Upon conducting the Sam.gov search, NPHS shall print the search results and place a copy in the project file. California State License Board (CSLB) Search: NPHS must not conduct business with Contractors who do not hold an active CSLB license. NPHS shall verify a prospective Contractor holds an active CSLB license by conducting a search on the CSLB website at https://www2.cslb.ca.gov/OnlineServices/CheckLicensell/checklicense.aspx. The CSLB license must be appropriate for the type of rehabilitation work to be conducted (i.e. General Contractor, Packet Page.276 55600.00203 \4319693 7.2 Electrical, Carpenter, etc.) Upon conducting the CSLB search, NPHS shall print the search results and place a copy in the project file. Better Business Bureau (BBB) Search, NPHS should not conduct business with contractors who have negative letter rating score (D+ through F) with the BBB. NPHS shall verify a prospective Contractor has a positive letter rating score (A+ through C-) with the BBB. Upon conducting the BBB search, NPHS shall print the search results and place a copy in the project file. IL Process (Timeline of 20 days)- 1.Maintain list of qualified, bonded, licensed contractors 2.Manage competitive bid process and secure at least 3 bids 3.Lowest, most responsive and responsible bidder selected by NPHS 4.Contract award letter notifications sent to selected contractors 5.Remit notification letter to non-selected contractors 6.Prepare General Contractor Contract 7.Review final scope of work with city of San Bernardino and contractor prior to document execution 8.Ensure contractor begins works no later than 10 days from Notice to Proceed from NPHS I. Conflict of Interest No member of the governing body of the PA or the City and any other official, employee, or agent of the City Government who exercises policy, decision-making functions or responsibilities in connection with planning and implementation of the program shall be directly or indirectly eligible for OORP assistance. This restriction shall continue for two (2) years after an individual's relation with the PA or City ends. Packet Page.277 55600.00203 \4319693 7.2 IV.Lead Based Paint Requirements As part of the program application, owners are provided with information about the dangers of lead- based paint and Renovation, Repair, and Painting Rule (RRP) Pamphlets. Evidence of receipt of this information and owner's signed and dated statement that LBP was received is maintained in the project file for at least three (3) years. The lead-based paint requirements can have a significant impact on the final scope of work . If the housing unit in question was built prior to January 1, 1978, the lead-based paint requirements apply. PA must have staff knowledgeable about HUD's lead-based paint regulations and EPA' s Renovation, Repair, and Painting Rule (RRP) and must have appropriate certifications/ training submitted to the City and maintained in project file by both the PA and City. Lead safe work and RRP practices are used during rehabilitation work on painted surfaces larger than the de minimis amounts (specified in 24 CFR 35.130(d)) that are known or presumed to have lead, and is all disturbed paint routinely and properly repaired. Work must be performed on painted surfaces above the de minimis threshold amount where lead-based paint is known or presumed in the work area. Occupants and their belongings are to be protected during work performed. Firms performing work, the supervisors, and workers must be certified for abatement or RRP, as applicable, with workers using lead safe work or RRP practices as applicable, if the work was larger than the de minimus amounts. Evidence of certification is maintained in the project file by the PA. In the case that the Lead Safe Housing Rule requires temporary relocation, occupants are relocated to units free of lead hazards and have their belongings are protected. Regarding workers and occupant safety, Lead Safe Housing Rule (LSHR) and Lead Renovation, Repair, and Painting (RRP) are shared with the entities and individuals who perform the rehabilitation work on painted surfaces, such as contractors and subrecipients. Based on the amount of subsidy provided to the project, different levels of action are required by the PA, as shown in the following table: <$5,00 $5,000-$25,000 >$25,000 Approach to Lead Hazard Evaluation and Do no harm Identify and control Lead hazards Identify and Abate Lead Hazards Notification Yes Yes Yes Lead Hazard Evaluation Paint testing of surfaces to be disturbed by rehabilitation Paint testing of surfaces to be disturbed by rehabilitation AND Risk assessment Paint testing of surfaces to be disturbed by rehabilitation AND Risk assessment Lead Hazard Reduction Repair surfaces disturbed during rehabilitation, use lead- safe work practices, clearance test of work site upon completion. Interim controls, lead- safe work practices, clearance test of unit upon completion Complete abatement, lead- safe work practices, clearance test of unit upon completion 1 Any required lead-based paint inspections (initial and clearance) will be performed by the PA' s lead-based paint inspector or risk assessor. Documentation of paint testing report (if testing was performed) performed by a certified lead based paint inspector or risk assessor is to be maintained in project file. The cost of initial 1 Table covers #10-#12 from Exhibit 24-1 : Lead-Based Paint Compliance - Guide for Review of Lead-Based Paint Compliance in Properties Receiving Federal Rehabilitation Assistance Packet Page.278 55600.00203 \4319693 7.2 testing and clearance will be included as part of the owner's loan or grant. In the event that an initial clearance test fails, it will be the contractor's responsibility to pay for supplemental clearance tests. The contractor engaged to encapsulate and/or stabilize lead-based paint will not be paid until evidence of a lead-based paint clearance is presented to the City. Lead-based paint inspection reports and risk assessments (as applicable) will be provided to the owner and made available to contractors as an appendix to the Scope of Work. Documentation of notice to residents such as the Notice of Lead Hazard Evaluation (if test painting was performed), a Notice of Presumption (if no paint testing was performed), or if interim controls or abetment are electively performed at this level of rehabilitation assistance, then a Notice of Lead Hazard Reduction are to be maintained in project file. PA must maintain documentation of a clearance report showing the unit, or unit and the worksite if the work was contained, passed clearance (if lead-based paint is known or presumed to be in the unit and the amount of material to be disturbed is above the de minimus threshold) in project file. All documentation must be kept in project file for a minimum of three (3) years. V.Historic Preservation Process I.Generally, historic preservation activity will concentrate on rehabilitation, preservation and selective restoration of public or privately owned properties. Requirements Assisted preservation activities, must assist in the development of viable urban communities, by providing decent housing and a suitable living environment and expanding economic opportunities, principally for persons of low-and moderate- income. In addition, activities must either give maximum feasible priority to activities which will principally benefit low-and moderate-income persons or aid in the prevention or elimination of slums and blight. Historic preservation may also be conducted outside a slum or blighted area as part of activities designed to eliminate specific conditions of blight or physical decay on a spot basis. In such cases where residential rehabilitation is for other than low and moderate income households, the eligible activity is limited to the correction of specific conditions detrimental to public health and safety II.Section 106 of the National Historic Preservation Act requires to: 1. Consider the effects of their undertakings on historic properties; and provide the advisory council on Historic Preservation with a reasonable opportunity to comment with regard to such undertakings. Compliance with Section 106 is achieved by initiating procedures the Advisory Council on Historic Preservation has outlines at 36 DFR Part 800. Section 800.2 (a) recognizes the certifying officer as having authority to carry out these procedural responsibi lities. The focus of Part 800 is on the City making a determination whether a proposed project will affect buildings, structures, or places that are listed on or are eligible for listing on the National Register of Historic Places. In making this determination, the City must follow a detailed review process in consultation with the State Historic Preservation Officer (SHPO). This process also provides an opportunity for interested persons, agencies, and Indian tribes to be part of the City's decision concerning historic properties that may be affected. It is important to remember that before approval is given to proceed, the environmental review records must show the Part 800 consultation process was completed. III.Procedure: the City is to determine whether the project is an unde rtaking, or has no potential to cause effects on historic properties. The City must define the area of Packet Page.279 55600.00203 \4319693 7.2 potential effects for the undertaking, identify and evaluate historic properties in the area of potential effects, determine the effect of the undertaking, asses the effects on listed and/or eligible properties, resolve any adverse effects. IV.Compliance documentation required - the ERR should contain one of these types of documentation; a letter from SHPO that no historic properties will be affects, the City's documentation of no historic properties affected and SHPO does not object within 30 days, the City's documents on the project meets stipulations of a Programmatic Agreement executed with SHPO, or a memorandum of agreement executed between the City and SHPO regarding mitigation measures that will be implemented to resolve adverse effects. VI.Required Record Keeping and File Retention Files will be maintained to document the significant history of OORP activities for all projects. The PA must maintain these files for a period not less than five (5) years following completion of the work. After 5 years completed project files will be submitted to the City of San Bernardino. Individual activity documentation must be submitted to the City upon project completion. Individual activity project files must include documents in the Rehabilitation Submittal Checklist and must include at a minimum: I.The application and all supporting documentation related to income and owner- occupancy, and property information reports. IL Official correspondence and the Rehabilitation Environmental Review. III. Inspection reports, lead-based paint reports, before and after photographs, work descriptions, internal estimate, bid evaluation, contractor clearances, contractor insurance, contractor business license, contractor W-9, recorded Notice of Completion. IV. OORP Agreement, construction contract agreement, applicable promissory notes and deeds of trust, all loan disbursement information including itemized invoices, payment releases, lien releases, warranties, and copies of payment checks, signed off City Permits. V. Documentation on requests for demand, reconveyance, subordinations, and defaults. VII.Program Changes At the discretion of the Director or his/her designee, the Program may be modified to ensure timely expenditures of program funds and to otherwise meet the intent of assisting low-income households. VIII.Program Database For each fiscal year, PA staff will maintain a project database containing the case number, name, address, telephone number, racial/ethnic data, census tract, block group, household size, household income, income level (i.e. very low, low, moderate), housing cost burden percentage, year built, application date, inspection date, Work Description approval date, expected post- rehabilitation value, grant funds awarded, project soft costs (i.e. title, credit, asbestos/lead-based paint testing), construction contract amount, contractor payment information, contract award Packet Page.280 Packet Page.281 IX.Exhibits The following exhibits are attached to these Policies and Procedures: Exhibit A: Rehabilitation Standards Exhibit B: City of San Bernardino Owner Occupied Rehabilitation Loan Program Application 55600.00203\43 I 96937 .2 Packet Page.282 55600.00203\43196937.2 EXHIBIT A - Rehabilitation Standards 92.251(b)(l) of the HOME Rule requires each PJ to develop and follow written rehabilitation standards in the implementation of rehabilitation programs and projects. The written rehabilitation standards must "set forth the requirements that the housing must meet upon project completion ... (and) be in sufficient detail to determine the required rehabilitation work including methods and materials." In order to be eligible for the City's homeowner rehabilitation program, all work and home repairs must be completed in accordance with program guidelines and NPHS' housing rehabilitation standards as set forth in the City's Housing Code. The finished rehabilitation work must be free of any health and Safety Code, Building Code, or other State and local code violations and must, at a minimum, meet Section 8 Housing Quality Standards (HQS). The HOME rehabilitation standards are intended to: •Serve as a basis for the initial examination of inspectable items and areas to identify conditions or deficiencies that must or should be corrected as part of the scope of rehabilitation; •Outline the options for correcting any condition requiring intervention that can be included in the project-specific work write-up; and •Define the materials and methods that must be used when a particular repair or replacement activity is taken, and the quality, durability, and aesthetics of the end product. The Final Rule indicates that the rehabilitation standards must address: •Any "life-threatening deficiencies that must be addressed immediately if the housing is occupied"; •The useful life of major systems and structural components of the structure (based on capital needs assessments or estimates of useful life for different types of housing as required by the Final Rule); •Lead-based paint hazard control requirements as specified in 24 CFR 35 (and in particular the rehabilitation standards described in 35.900 - .930); •Accessibility requirements as defined in 24 CFR Part 8, 24 CFR Part 100 and 28 CFR Parts 35 & 36, as may be applicable to the type of housing, and improvements beyond regulatory requirements; •Disaster mitigation standards where they are needed in accordance with state and local requirements or as established by HUD •State and local codes, ordinances and zoning requirements (or, in the absence of those codes, the ICC International Existing Building Code); and •The Uniform Physical Condition Standards at 24 CFR 5.703 (and minimum deficiencies that must be addressed based on inspect-able items/areas to be specified by HUD from 24 CFR 5.705) ELIGIBLE IMPROVEMENTS In addition to the above-noted improvements, program funds are available for rehabilitation improvements that are physically attached and permanent in nature as follows: Packet Page.283 55600.00203\43196937.2 1.Repairs that remedy existing nonconforming uses such as garage conversions, additions, et c. 2.Exterior work to help preserve or protect structures, roofing, siding (if significantly damaged), re-leveling, bracing (including earthquake bracing), repair/replacement of screens/windows, doors and door locks, structural and/or foundation damage, replacement of deteriorated attached porch and step structures (i.e., Mobile Home porches made of plywood). 3.Interior work to make a structure more livable and repair/replace/restore important parts such as plumbing (i.e., re-pipe and replacement of fixtures), damaged flooring, faulty or inadequate heating/cooling systems, inoperable built- in appliances, damaged ceilings, water heaters, electrical wiring and service, painting (if walls are damaged). 4.Weatherization and energy conservation items such as insulation, caulking, weather-stripping. Fumigation and treatment of termites and pest control. 5.Modifications which aid the mobility of the elderly and physically disabled such as shower units with seats, lever hardware, retrofitting toilets to achieve adequate height, moving power points and light switches, ramping, reconstructing doorways, lowering sinks in kitchens and bathrooms. 6.Testing for the presence of lead-based paint and associated control/abatement, as required. INELIGIBLE IMPROVEMENTS 1.Installation and/or repair of recreational items such as barbecues, bathhouses, greenhouses, swimming pools, saunas, television antennas, tennis courts. 2.Luxury items such as carpeting (other than water-damaged or carpeting that is not decent, safe or sanitary), burglar alarms, burglar protection bars, dumbwaiters, kennels, murals, flower boxes, awnings, patios, decks and storage sheds/workshops. Any freestanding appliances such as microwave ovens, refrigerators, dishwashers, and fans. 3.Room additions or extensions 4.Other items deemed ineligible by the Director or his/her designee . Additionally, The following activities are ineligible if undertaken in isolation, and are eligible only if they are undertaken as part of a comprehensive rehabilitation program: •Weatherization •Emergency repair •Handicapped accessibility STANDARDS FOR REHABILITATION OF HISTORIC PROPERTIES Packet Page.284 Packet Page.285 55600.00203\4319693 7.2 EXHIBIT B City of San Bernardino Owner Occupied Rehabilitation Loan Program Application Packet Page.286 55600.00203 \4319693 7.2 CITY OF SAN BERNARDINO OWNER OCCUPIED REHABILITATION PROGRAM A home repair loan for qualified homeowners Application Submit completed application and all requested information to: Mail, Email or Fax to: ATTN: April Deleon 9551 Pittsburgh Ave Rancho Cucamonga, CA 91730 Email:April@nphsinc.org Fax: (909)545-8692 Phone: (909)477-1930 Loan funds are available on a first-come , first-serve basis. Loan is contingent upon the availability of funds and not guaranteed. Packet Page.287 55600.00203 \4319693 7.2 Dear Homeowner(s): NPHS Community Redevelopment, Inc. Services in partnership with the City of San Bernardino is pleased to offer Owner Occupied Rehabilitation Loans that assist income qualified households by providing a deferred loan to rehabilitate owner occupied properties throughout the City of San Bernardino. The program is designed to assist qualified low income homeowners with household incomes not exceeding the program income limits. This will allow qualified households to make necessary repairs on their owner-occupied single- family homes. The goal of the program is to allow homeowners to correct health and safety hazards, building code violations, make accessibility improvements, and to provide decent, safe, and sanitary living conditions. ►The Program provides assistance in the form of a forgivable loan up to the maximum total amount of $40,000 for eligible homeowners. The loan has three percent (3%) interest. The loan will become due in the event of one of the following; property sale, transfer of title of the property, the applicant ceases to occupy the home as their primary residence, or the applicant refinances the property to take cash out or receive an equity line of credit. In the event that the borrower remains in compliance with the terms of the loan, it will be forgiven at a rate of twenty percent (20%) per year, starting on the sixth anniversary of the making of the loan, with the full amount of the loan forgiven on the tenth anniversary of the making of the loan. Applications are prioritized for funding purposes on a first-come, first-served basis. Therefore, you are required to complete and return the application within 30 days. If after three (3) contact attempts staff has not received your completed application, your file will be closed and your name will be placed at the bottom of the waiting list. Delays can jeopardize the funding since, as stated above, funds are available on a first-come, first-served basis. Staff will go to the next household on the waiting list. Homeowners whose applications have been accepted for this Program will receive a one-time forgivable loan in an amount up to $40,000 for eligible home repairs and in accordance with Program Guidelines and NPHS' housing rehabilitation standards as set forth in the Housing Code. The finished rehabilitation work must be free of any Health and Safety Code, Building Code, or other State and local code violations and must, at a minimum, meet Section 8 Housing Quality Standards (HOS). ►► ► Packet Page.288 55600.00203 \4319693 7.2 TO BE ELIGIBLE, YOU MUST: 1.Be an individual residing in an owner-occupied single-family property, manufactured housing or own a membership in a cooperative or mutual housing project that constitutes homeownership under state law in the City of San Bernardino proper. 2.Be listed on title as the legal owner of the subject property and permanently reside in dwelling in need of repairs. If property is owned by more than one person, all legal owners must execute the necessary covenant-agreement documents. 3.Have owned and resided in the dwelling in need of repair no less than one (1) year prior to submitting application. 4.Not own or have interest in any real property other than the subject property. 5.Have a maximum total family income of 80% Area Median Income (AMI) (all adult members of the household must submit income verification for all sources of income) of no more than: 1 person household $57,400 2 person household $65,600 3 person household $73,800 4 person household $82,000 5 person household $88,600 6 person household $95,150 7 person household $101,650 8 person household $108,250 (2024 HUD Income Guidelines for the HOME Investment Partnerships (HOME) Program) The San Bernardino Owner Occupied Rehabilitation Program requires the completion of the application and all requested documents be submitted in order to be considered for the program. The following is a list of what information you will be required to provide in order to initially submit a completed application. Packet Page.289 55600.00203 \4319693 7.2 Checklist PROOF OF HOUSEHOLD MAKE-UP o Copy of California Driver's license/identification card of ALLhomeowners o Copy of the applicant's most recent three (3) years of Federal Income Tax return and W-2 forms to support the stated household size or a letter from the Internal Revenue Service (IRS} stating you were not obligated to file income taxes for the preceding calendar year,and PROOF OF HOME OWNERSHIP o If you own a Single-family home, please attach a COPY of the recorded Grant Deed, a copy of the most recent Property Tax Bill for your property, and a copy of the most recent Mortgage Statements for your propert y. PROOF OF RESIDENCY o You must reside at the address named on the application . o Attach a copy of two (2) current, different utility bills (i.e., water, gas, telephone, or electricity bill) to your applicatio n. PROOF OF HOMEOWNERS INSURANCE o Copy of the homeowners insurance policy and flood insurance if located in a flood zone PROOF OF INCOME ELIGIBILITY o Provide copies of the most recent three (3) months monthly bank statements/investment statements for all accounts including retirement accounts. If you have more than one bank account, please provide copies of the most recent three (3) months bank statements/investment statements including retirement accounts for each account . Along with the proof of income eligibility documents, provide all applicable documents below: Employed o Provide copies of the most recent three (3) months of paycheck stubs; Self-Employed o Provide copies of YTD profit & loss statement, balance sheet, and cash flow statement; Social Security/disability income o If you are receiving Social Security, annuities, insurance policy benefits, retirement funds, pensions, unemployment, disability or death benefits, worker's compensation , severance pay, alimony, child support, or Armed Forces income, please attach a copy of the entitlement letter or equivalent; Public Assistance o If the applicant(s) is receiving AFDC, other public assistance, or welfare income a copy of the benefit statement shall be required from the Department of Social Services or other agency that states the amount of benefits; NOTE: Applications without the required proof of HOUSEHOLD, OWNERSHIP, RESIDENCY, HOMEOWNERS INSURANCE, and INCOME as described above will be considered incomplete. All incomplete applications will not be processed. Staff will review your completed application to determine whether you are eligible for assist ance. At this time, please DO NOT request bids or hire a contractor . If you are deemed eligible to participate in the program you will be notified. Packet Page.290 55600.00203\43196937 . 2 APPLICATION (1)Applicant Name 1Mr.1Mrs. f Ms.Social Security No.Home Phone (2)Co-Applicant Name Social Security No.Home Phone Street (3)Property Address City State Zip Code Street (4)Mailing Address (If different from above) City State Zip Code (5) Total Number of Persons in household: List all OTHER members who live in your home at the time of applicat ion . Full Name Age Relation to Owner(s) (6) Total Monthly Gross Income$ Source of Income: (Please indicate amount) [ ] Social Security Income (551) $ [ ] Disability Income (551) $ [ ] WorkersCompensation $ [ ] Pension (551) $ [ ] Alimony/Child Support$ [ ] Investment $ [ ] Employment Income$ [ ] Self Employment Income $ [ ] Other Income: $ (7) What is the age of the head of household? (Please check only one) [ ] Under18 years [ ] 18 to 24years [ ] 25 to44 years [ ] 45 to 59years [ ] 60 to64 years [ ] 62 years or older (8) Marital Status [ ] Married [ ] Divorced [ ] Legally Separated [ ] Widower/Widow [ ] Single (9)What is the gender of the head of household? [ ] Male [ ] Female (10)Is the applicant or co-applicant handicapped? [ ] Yes [ ] No (11)Is the applicant or co-applicant permanently disabled?[ ] Yes [ ] No NPHS Community Redevelopment, Inc. does not discriminate on the basis of disability status in the admission or access to, or treatment or employment in, its federally assisted programs and activities . Section 504 (24 CFR, part 8 dated June 2, 1988). (12)I/We currently: [ ] Own my/our house free and clear [ ] Have a mortgage to pay off [ ] Lease with an option to buy [ ] Other: (13) Are you a Veteran of the U.S Armed Forces? [ ] Yes [ ] No (14) Are you the OWNER-OCCUPANT of the property to be repaired? [ ] Yes [ ] No (15) How many years have you occupied the home? [ ] Less than 1 year [ ] 1 to 5 yrs [ ] Over 5 yrs [ ] Not an Occupant Packet Page.291 55600.00203\43196937 . 2 I (21) Have you had this service before? [ ] Yes [ ] No If yes, what year? I (22) Briefly describe the repairs needed. Attach a separate sheet if more room is necessary. 1. 2. 3. 4. 5. 6. 7. Application Affidavit You are hereby signing this Application Affidavit under the False Claims Act, 31 U.S.C. §§ 3729-3733, those who knowingly submit, or cause another person or entity to submit, false claims for payment of government funds are liable for three times the government's damages plus civil penalties of $5,500 to $11, 000 per false claim. Applicant Signature: Applicant Name: Co-applicant Signat ur e: Property Address: (16) My/Our residence is a: [ ] Single-Family Home [ ] Mobile Home [ ] Unit in a Co-Op or Condominium [ ] Other: (17) How many bedrooms in your home? [ ] 1 bedrooms [ ] 2 bedrooms [ ] 3 bedrooms [ ] 4 bedrooms [ ] 5 or more bedrooms (18) What year was the house built? (19) What year did you buy the house? (20) How did you first hear about this Program? [ ] Referral from City of San Bernardino [ ] Referral from Public Housing Waiting List [ ] Community Bulletin Board/Flyers [ ] Referral from another Department/ Agency [] ] Friend/ Relative Ot her: Packet Page.292 55600 .00203 \43196937.2 Signature of Applicant Date INCOME TAX AFFIDAVIT I (we) the undersigned, being first duly sworn, state the following: {Please check all that apply) (Check and complete Number 1 & 2 if you were not required by law to file a Federal Income Tax Return.) _ 1. I (we) hereby certify that I (we) was (were) not required by law to file a Federal Income Tax Return for the following year(s) for the reason(s) below: Form 4506-T "Request for Transcript of Tax Return" must be submitted to the IRS for verification of non-filing status. _ 2. I (we) certify that I (we) cannot produce a copy of a signed federal tax return. I (we) agree that I (we) will provide NPHS with the following: A Transcript of Tax Return by completing Form 4506T (Check and Complete Number 3 if you are providing the City with acceptable tax documentation other than copies of tax fillings.) _ 3. I (we) certify that I (we) filed Form 1040EZ /1040A/1040 for Tax Vear (s) . I am providing this certification in addition to a tax account summary provided by the IRS since I cannot produce a copy of the tax filing. (Check and complete Number 4 only if the Owner Occupied Rehabilitation Application is submitted between January 1 and April 15 and you have not yet filed a Federal Income Tax Return for the previous year, but intend to f ile.) _ 4. I (we) hereby certify that I (we) have not yet filed a Federal Income Tax Return for the previous tax year. I hereby certify that the information submitted to NPHS is in accordance and consistent with the tax documentation which I (we) intend to submit for the previous tax year. I (we) agree that I will provide NPHS with a copy of my tax filing documents no later than April 16 of this year. CERTIFICATION OF ALL APPLICANTS By my (our) signature below, I (we) certify that the above information is true. I (we) understand that NPHS/ City of San Bernardino can revoke any funds granted upon discovery of an Applicant's material misstatement, whether negligent or fraudulent. Signature of Applicant Date Packet Page.293 55600 .00203 \43196937 .2 Co-Applicant Dat HOUSEHOLD SIZE AFFIDAVIT I (we) the undersigned, being first duly sworn, state the following: {Please check all that apply) 1.I (we) hereby certify that my (our) household size is and income limits do not exceed the established limits for household size indicated in the Owner Occupied Rehabilitation Program application . (Check and complete Number 2 only if you share ownership of property with someone not residing in the property) _ 2. I (we) hereby certify that I (we) share title of ownership with someone other than those residing in my (our) household on the Owner Occupied Rehabilitation Program applicati on. I (we) hereby certify that the information submitted to NPHS is in accordance and consistent with the tax documentation which I (we) submitted. I agree that I will provide NPHS with a copy of my tax filing documents or proof of non-filing, which will be used to determine household size . Applicant Signature Date Packet Page.294 RIGHT OF ENTRY Right of Entry: I/We the undersigned hereby consent to allow authorized representatives of NPHS or the City of San Bernardino to enter my/our place of residence for the purpose of evaluating the housing repairs needed described herein. The undersigned and the representatives of NPHS or the City will perform this evaluation jointly. I/We understand NPHS shall receive all repair estimates within 15 calendar days from three (3) licensed contractors following the receipt of a Project Cost Estimate/Bid that is prepared by an authorized representative of NPHS. Failure to do so will result in no further processing of my/our application and transferring committed funds to another eligible project. Please initial here / Applicant Signature Date Co-Applicant Signature Date 55600.00203\43196937 .2 Packet Page.295 Applicant Personal Information Co-Applicant Personal Information Last Name First MI Last Name First MI SSN Date of Birth Suffix SSN Date of Birth Suffix Address Apt Address Apt I authorize NPHS to pull my credit report, and review my credit file in connection with my participation in NPHS' Programs, using an online credit reporting source. (a) Initial if Applicant and Co-Applicant are married (b) Initial if you are authorizin g NPHS to process a one-time transaction. Fee to be charged: Single- $25.00. Couples will be charged at the single rate for a total of $50.00. Payments can be made by cash or check only. I understand that infonnation about services provided to me may be used to conduct research and reporting, related to service needs, income supports, education and employment, and program effectiveness. The use of this information for research and reporting may last beyond the actual delivery of current services. My name, social security number, or any other information that would identify me personally will never appear on research or a report. I understand that any intentional or negligent representation(s) of the information contained on this form may result in civil liability and/ or criminal liability under the provisions of Title 18, United States Code, Section 1001. Applicant Signature Date Co-Applicant Signature Last Updated 11/15/2017 Date 55600 .00203 \43 1 9 693 7.2 □□□ □ □□□□ Credit Report Request &Authorization□ Do □□ se only Payment type: □ Cash o Check Report n by: Staff ini ials 7/16/18 City State Zip City State Zip Packet Page.296 55600.00203\43196937.2 City of San Bernardino Owner Occupied Rehab Program Cover Sheet Applicant : Address: Phone Number: Is the eligible property a: Single Family Residence Other Eligible Residence Is the property within the San Bernardino city limits? Townhome Condominium Yes No Is the applicant income qualified?Yes No Household annual Income: Income level: Extremely Low (30%) Very Low (50%) Low (80%) Number of Persons in Household: Based on the information provided by the applicant and the eligibility criteria entered above, we find the applicant to be eligible ineligible to participate in the City of San Bernardino Owner Occupied Rehabilitation Program. Reviewer's Approval: Date: Name Printed: Tit le: Packet Page.297 55600.00203\43196937.2 City of San Bernardino Submittal Checklist Single Family Rehabilitation Loan Property Owners: Property Address: Item Attached Comments Environmental/ Historical Review Property Profile Year Built: CLBP requirements apply? Environmental Clearance C SHPO clearance (properties 50+ years) Property in flood zone/need flood insurance: Photographs Need front and side views of subject property, view down the street (both directions), and pictures of properties adjacent to an in front of the subject property Work Write-up Eligibility Review Loan request form Documentation review C LTV: Copy of application Income documents and certification Evidence that property taxes are current Evidence of current property insurance Current Mortgage statement (if applicable) Evidence of owner-occupancy in preceding 12-months Homeowner release & waiver Verification of After-Rehab Value Adherence to Written Rehabilitation Standards Project completion Executed loan documents C Promissory Note C Deed of Trust Ccovenant 3 day right of rescission Loan Services Agreement Title Preliminary Report Recorded Notice of Completion Copy of appraisal Verify after rehab value: Copy of Insurance Loss Payee Endorsement Form Lead Based Paint Compliance LBP applicability checklist Risk Assessment For pre-1978 properties with rehab work over $SK Clearance Report For pre-1978 properties LBP Pamphlet Acknowledgement and notice For pre-1978 properties Construction Management Records Documentation of Initial Inspection General Contractor Agreement with final work write-up/ bid Contractor Requirements/Contractor Eligibility C Contractor's License Cspecialty License C Lead EPA certification C CSLB License Status Verification C GL Insurance Packet Page.298 55600.00203\43196937.2 Item Attached Comments [] Auto Insurance [] Workers Comp Cl Non-debarment C City Business License Contractor Clearance of HUD Suspension/Debarments Contractor selection Bid analysis and copies of bids not selected Notice to Proceed Permits Before & After photos Final work inspection Miscellaneous Payments (progress, final, and retention) Payment supporting documentation [] Itemized Invoices [] Lien Releases Cwork Inspections Approval of Work Change Orders Certification rehab standards met Warranties Miscellaneous Comments Packet Page.299 Homeowner Income Calculation Date: II I ! !Monthly Income:I I II I ! !Monthly Income:I so I so I Ico-Borrower: I Pay Stub 1 I Pay Stub 2 I Pay Stub 3 I Pay Stub 4 I I Averaged I Frequency of pay:I !Annual Income:I !Monthly Income:I Ico-Borrower: I Pay Stub 1 I Pay Stub 2 I Pay Stub 3 I Pay Stub 4 I I Averaged I Frequency of pay:I !Annual Income:I !Monthly Income:I $0.00 $0 so I $0.00 $0 so I 7/16/18 55600.00203\43I 96937.2 IBorrower: IPay Stub 1 IPay Stub 2 IPay Stub 3 Pay Stub 4 I Average:!$0 Frequency of pay: I Annual Income:I $0 Borrower: IPay Stub 1 IPay Stub 2 IPay Stub 3 Pay Stub 4 I Average:!$0.00 Frequency of pay: I Annual Income:I $0 Monthly Projection: Annual Projection: ??%AMI Packet Page.300 OORP LOAN TO VALUE Worksheet Applicant(s): Property Address: Property Purchased 'i.I- Mortgage:$ City of San Bernardino OORP Loan (MAX LOAN VALUE)$40,000 Total $40,000 Comparable Median Sales Value Loan To Value 7 / 1 6 /18 55600.00203\431 9693 7.2 Packet Page.301 SAN BERNARDINO OWNER-OCCUPIED REHABILITATION PROGRAM Pre-Inspection Record Applicant: Property Address : Phone Number: Date of inspect ion : Residence Type: Single Family Residential Year Built: Home Sq. Ft/ size : Repairs Requested: Repairs: Packet Page.302 55600.00203\431 96937 .2 I *Adjoining properties: Any real property or properties the border of which is contiguous or partially contiguous with that of the property, or that would be contiguous or partially contiguous with that of the property but for a street, road, or other public thoroughfare separating them. DRAFT HlJfi- 7 -4-12 SITE-SPECIFIC FIELD CONTAMINATION CHECKLIST Completing the form requires a site visit by the preparer. The preparer should be sure to observe the property by walking through the property and the building(s) and other structures on the property to the extent possible and observing all adjoining* properties. PREPARER MUST COMPLETE CHECKLIST IN ITS ENTIRITY Date of Visit:r Time:I Weather Conditions: Program Name: Project Location/Address: Property Owner: Attach the fo owing, as appropriate: ■Photographs of site and surrounding areas □Maps (street, topographic, aerial, site map, etc.) QUESTION OBSERVATION Is there evidence of any of the following?SUBJECT PROPERTY ADJOINING PROPERTIES Is the property or any adjoining property currently used, or has evidence of prior use, as a gasoline station, motor vehicle repair facility, printing facility, dry cleaners, photo developing laboratory, junkyard, or as a waste treatment, storage , disposal, processing or recycling facility? YES □ NO □UNKNOWN 0 YES NO □UNKNOWN 0 Are there any damaged or discarded automobile(s), automotive or industrial batteries, pesticides, paints, or other chemicals in individual containers greater than 5 gal in volume or 50 gal in the aggregate, stored on or used at the property or adjoining properties? YES NO □UNKNOWN □ YES NO □UNKNOWN 0 Are there any industrial drums (typically 55 gal) or sacks of chemicals, herbicides or pesticides located on the property or adjoining properties? YES NO UNKNOWN □ YES NO □UNKNOWN 0 Has fill dirt been brought onto the property or adjoining properties that originated from a suspicious site or that is of an unknown origin? YES NO □UNKNOWN 0 YES NO □UNKNOWN 0 Are there any pits, ponds, or lagoons located on the property or adjoining properties in connection with waste treatment or waste disposal? YES NO □UNKNOWN 0 YES NO □UNKNOWN 0 Is there any stained soil, distressed vegetation and/or discolored water on the property or adjoining properties? YES NO UNKNOWN 0 YES□ NO □UNKNOWN 0 Are there any storage tanks, aboveground or underground (other than residential), located on the property or adjoining properties? YES NO UNKNOWN 0 YES □ NO □UNKNOWN 0 Packet Page.303 55600.00203\431 96937 .2 NO NO □□ NO □□ NO □NO □□ □□ □□ QUESTION Is there evidence of any of the following? SUBJECT PROPERTY ADJOINING PROPERTIES Are there any vent pipes, fill pipes, or underground tank access ways visible on the property or adjoining properties?YES □ YES □ UNKNOWN 0 UNKNOWN 0 Are any flooring, drains, walls, ceilings, or grounds on the property or adjoining properties stained by substances (other than water) or emitting noxious or foul odors or odors of a chemical nature? YES NO YES NO Is the property served by a private well or non-public water system? (If yes, a follow-up investigation is required to determine if contaminants have been identified in the well or system that exceed guidelines applicable to the water system, or if the well has been designated contaminated by any government environmental/health agency.) UNKNOWN 0 YES UNKNOWN 0 UNKNOWN 0 Has the owner or occupant of the property been informed of the existence of past or current hazardous substances or petroleum products or environmental violations with respect to the property or adjoining YES NO YES NO properties? Do the property or adjoining properties discharge wastewater (not including sanitary waste or storm water) onto the property or adjoining properties and/or into a storm water system? Is there a transformer, capacitor, or any hydraulic equipment on the property or adjoining properties that are not marked as "non-PCB"? UNKNOWN 0 YES NO UNKNOWN 0 YES UNKNOWN □ UNKNOWN □ YES NO UNKNOWN □ YES UNKNOWN 0 If answering "YES" or UNKNOWN" to any above items, describe the conditions: Use photographs and maps to mark and identify conditions. Attach more information as needed. Is further evaluation warranted? YES □NO □UNCERTAIN □ Preparer of this form must complete the following required information. This inspection was completed by: Name: Title: Address: Phone Number: Em ail: Agency: Preparer represents that to the best of his/her knowledge the above statements and facts are true and correct and to the best of his/her actual knowledge no material facts have been suppressed, omitted or misstated. Signature:Date: DRAFT HUD-R?-5-4-12 7/16/18 □ □ Packet Page.304 City of San Bernardino OWNER OCCUPIED REHABILITATION PROGRAM BID COMPARISON (Client Name & Property Address) San Bernardino CA 9#### #ITEM Contractor 1 Contractor 2 Contractor 3 1 2 3 4 5 6 7 8 9 Total BID Amount $0.00 $0.00 $0.001 Permits I Bid Subtotal $0.00 $0.00 $0.001I addition to bid II TOTAL w/ OPTION and ADDENDUM I TOTAL $0.00 $0.00 $0.001 Lowest Bid Middle Bidl Highest Bidl 7/16/18 55600.00203\4319693 7.2 Packet Page.305 NOTE: It is the responsibility of the Contractor to obtain the necessary permits from the pertaining City. NPHS Community Redevelopment, Inc.City of San Bernardino City of San Bernardino OWNER OCCUPIED REHABILITATION PROGRAM BID ACCEPTANCE FORM Property Owner: Property Address: Home Phone: Work Phone: CONTRACTOR'S NAME: Address: City/State/Zip: License Number: Phone Number: I/We the Owner(s), of the above named property, have accepted the attached bid proposal to rehabilitate our property. Owner:Date 7/11/2018 55600.00203\4319693 7.2 Packet Page.306 55600.00203\43196937 .2 NPHS Community Redevelopment, Inc. OWNER OCCUPIED REHABILITATION PROGRAM GUARANTY FORM The undersigned guarantees the completion of said residential rehabilitation for: (Address) In the event your bid is selected by the program applicant and NPHS you, the Contractor, guarantee the following: Should any of the materials or equipment prove defective or should the work as a whole prove defective, due to faulty workmanship, material furnished, or methods of installation, or should the work or any part thereof fail to operate properly as originally intended and in accordance with the Project Cost Estimate/Bid and/or manufactures specifications, due to any of the above causes, all within twelve (12) months after the date on the Acceptance and Approval of Completed Work form, the undersigned agrees to reimburse the Owner, upon demand, for its expenses incurred in restoring said work to the condition contemplated in the Project Cost Estimate/Bid, including the cost of any such equipment or material replaced and the cost of removing, and replacing of any other work necessary to make such replacement or repairs, or, upon demand by the Owner, to replace any such materials and to repair said work completely without cost to the Owner so that said work will function successfully as originally contemplated. The Owner shall have the unqualified option to make any needed replacements or repairs itself or to have such replacements or repairs done by the undersigned. The undersigned agrees that the repairs shall be made and such materials as are necessary shall be furnished and installed within the time limit designatedby the Owner. If the undersigned fails or refuses to comply with their obligations under this guaranty, the Owner shall be entitled to all costs and expenses, including attorney's fees, reasonably incurred by reason of said failure or refusal. Company Name: Signature: Title: Date: Packet Page.307 55600.00203\43196937 .2 NPHS Communit y Redevelopment , Inc. City of San Bernardino NOTE: The contractor executes the Guaranty on this page at the time submitting the Project Cost Estimate/Bid form. Packet Page.308 AGREEMENT FOR HOME IMPROVEMENT THIS AGREEMENT, hereinafter called the AGREEMENT, is made this day of , 2024-2025, by and between , hereinafter called the CONTRACTOR, and ,hereinafter called the OWNER. WITNESSETH, that the CONTRACTOR and OWNER for the consideration stated herein mutually agree as follows: ARTICLE 1: Statement of Work. The CONTRACTOR shall furnish all supervision, technical personnel, labor, materials, machinery, tools, equipment, fixtures and services including transportation services, and perform and complete all work required for rehabilitation of the property described below in an efficient manner, as follows: Residential property located at: , San Bernardino, CA 9240 , hereinafter called the PROPERTY, all in strict accordance with documents for home improvement, as prepared by City of San Bernardino, hereinafter called CITY. The OWNER will not request nor will the CONTRACTOR provide any additional work other than that which is listed in the City-approved scope of work or change order. ARTICLE 2: Contract Price; Retention. The OWNER will pay the CONTRACTOR for performance of this contract, in current funds, the contract price of 00/00 ($00,000.00). To ensure the CONTRACTOR's faithful performance of this contract, ten percent (10%) of each progress payment will be retained by the OWNER and separately accounted for. Upon CONTRACTOR's completion of all of the work and the recordation of a notice of completion by the OWNER, the retained amount shall be paid to the CONTRACTOR, less an amount reasonably necessary to compensate the OWNER for any defect in the work or other unsatisfactory performance of the work. ARTICLE 3: Agreement. In addition to the provisions hereof, this AGREEMENT includes all terms and provisions of the following documents, all of which are incorporated by reference: a.General Conditions attached hereto b.Addenda to this AGREEMENT, if any c.CONTRACTOR's bid for rehabilitation of structure d.Architectural plans, if any e.Scope of work f.Work schedule g.List of subcontractors, if any h.Notice to Proceed This AGREEMENT, together with the other documents enumerated in this ARTICLE 3, which said other documents are as fully a part of this AGREEMENT as if hereto attached or herein repeated, forms the contract between the parties hereto. ARTICLE 4: Administration. This AGREEMENT shall be administered by NPHS Community Redevelopment, Inc., a California nonprofit corporation, hereinafter called NPHS. Administration of this AGREEMENT by NPHS shall include, without limitation: 55600.00203\43196937 .2 7( Packet Page.309 a.Approving, and obtaining CITY approval of, all improvements to be performed pursuant to this AGREEMENT, in advance of construction. This includes all change orders. b.Ensuring compliance with all laws, including without limitation the requirements of the HOME Investment Partnership program, hereinafter called HOME, as administered by the United States Department of Housing and Urban Development, hereinafter called HUD. c.Inspecting the PROPERTY during rehabilitation to ensure compliance with this AGREEMENT. d.Reviewing itemized invoices submitted by CONTRACTOR and its subcontractors, if any. CONTRACTOR shall verify to NPHS that subcontractor itemized invoices are reasonable and the work has been completed properly. ARTICLE 5: CONTRACTOR Cooperation. CONTRACTOR understands and agrees that the funding that will be used to pay CONTRACTOR for the work done pursuant to this AGREEMENT has been obtained CITY from HUD pursuant to the HOME program and must be utilized in compliance with the requirements of that program. CONTRACTOR agrees to cooperate fully with CITY, NPHS, HUD, and all other governmental agencies in ensuring and verifying such compliance, including without limitation any audit. This provision shall survive the expiration or termination of this AGREEMENT. ARTICLE 6: Term. This AGREEMENT shall commence upon its execution by both parties and shall continue in effect until all work to be performed by CONTRACTOR under this AGREEMENT has been completed to the written satisfaction of OWNER, NPHS, and CITY. IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed in one original and two copies on the date and year first above written. OWNER By By PHONE: ( ) ADDRESS: , San Bernardino, CA 9240 CONTRACTOR By: Title: Contractor Phone: (Lie.#: Address: 55600.00203\4319693 7 .2 7· Packet Page.310 55600.00203\43196937 .2 7: GENERAL CONDITIONS (Capitalized terms have the meaning assigned to them in the foregoing AGREEMENT FOR HOME IMPROVEMENT between CONTRACTOR and OWNER, of which these General Conditions are a part.) Contractors are licensed and regulated by the Contractors State License Board, located at 9821 Business Park Drive, Sacramento, CA 95827; Mailing Address: P.O. Box 26000 Sacramento, CA 95826. Any questions regarding a contractor may be referred to the Board at the preceding addresses. 1.CONTRACTOR agrees to begin construction within three (3) days of the issuance of a Notice to Proceed by the CITY and to complete the work within days after commencement. 2.CONTRACTOR shall provide and pay for all labor, materials, services, license fees, and all items necessary for the proper completion of the construction work. 3.CONTRACTOR shall, before being entitled to receive any payment or progress payments hereunder, furnish OWNER, NPHS, and CITY with labor and material invoices itemized and lien releases, covering work done and materials furnished for construction in an amount not less than the total prior payments made. 4.CONTRACTOR is prohibited from using lead-based paint in any work done pursuant to the AGREEMENT. 5.Payments will be made on approval of work and in accordance with the CITY policy regarding payment. Currently, for projects under $10,000.00, one check will be issued after completion of the work (see below for requirements). For larger amounts, progress payments will be made in accordance with the schedule for progress payments. 6.After the final inspection and acceptance of all work under the contract by OWNER, NPHS, and CITY, including clean-up, the CONTRACTOR maysubmit the requisition for final payment for approval. 7.Prior to final payment and as a condition hereto, CONTRACTOR shall provide a Labor and Material Lien Release on a form accepted by the building industry from all workers, sub-contractors, and material suppliers. This release will set forth the undisputed balance due the CONTRACTOR under the contract and duly approved change orders; a listing of additional amounts of outstanding and unsettled items which the CONTRACTOR claims are just and due and owing by OWNER to CONTRACTOR; a certification that work under the contract has been performed in accordance with the term thereof, and that there are no unpaid claims for materials, supplies or equipment and no claims of laborers or mechanics for unpaid wages arising out of the performance of the contract. 8.CONTRACTOR shall, for the duration of the AGREEMENT, continuously monitor the contracted work to determine that the work write-up and/or architectural Packet Page.311 55600.00203\43196937 .2 ?: plans are consistent with all applicable laws, ordinances and codes. Where the CONTRACTOR discovers that the work write-up and/or plans fail to meet code compliance, the CONTRACTOR shall immediately report all such findings to NPHS and CITY. 9.In the event CITY or NPHS, through inspection, ascertains that the contracted work is incomplete, the CONTRACTOR shall amend the contract through a change order "Addendum", as referred to in Article 3 of the foregoing HOME IMPROVEMENT AGREEMENT. Said change order shall identify all code deficiencies and required corrections. No change orders are allowable unless specifically approved in writing by the OWNER, NPHS, and CITY. No claim for an adjustment of the contract price will be valid unless so ordered. 10.The CONTRACTOR shall give all notices required by law and comply with all applicable laws, ordinances, codes of the CITY and the requirements of the CDBG Program. The CONTRACTOR shall obtain all required permits and licenses prior to commencing work. 11.CONTRACTOR agrees to keep in full force and effect at CONTRACTOR'S own expense during the entire term of the AGREEMENT the following policies of insurance: a.CONTRACTOR and each of its subcontractors shall maintain comprehensive automobile liability insurance of not less than One Million Dollars and Zero Cents ($1,000,000.00) combined single limit per occurrence for each vehicle leased or owned by CONTRACTOR or its subcontractors and used in performing work under the AGREEMENT. b.CONTRACTOR and each of its subcontractors shall maintain worker's compensation coverage in accordance with California workers' compensation laws for all workers under CONTRACTOR's and/or its any of its subcontractors' employment performing work under the AGREEMENT. c.CONTRACTOR shall maintain commercial liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars and Zero Cents ($1,000,000.00), including products and completed operations coverage. Said insurance shall be primary insurance with respect to any coverage maintained by CITY and the policy shall so provide. CONTRACTOR shall require and ensure that all general liability insurance policies covering work under the AGREEMENT, whether obtained by CONTRACTOR or CONTRACTOR's contractors or subcontractors, include CITY and its officers, agents, and employees as additional insureds. If required by CITY from time to time, CONTRACTOR shall increase the limits of CONTRACTOR's liability insurance to reasonable amounts customary for contractors performing work similar to the work to be performed under the AGREEMENT. d.CONTRACTOR shall maintain builders' risk/property insurance during the course of construction, and upon completion of construction if requested Packet Page.312 by CITY, and property insurance covering the property to be rehabilitated, in form appropriate for the nature of such property, covering all risks of loss, excluding earthquake, for one hundred percent (100%) of the replacement value, with deductible, if any, acceptable to CITY, naming CITY as a loss payee. e.Flood insurance must be obtained if required by applicable federal regulations. Concurrent with the execution of the AGREEMENT, and prior to the issuance of a Notice to Proceed and the commencement of any work, CONTRACTOR shall deliver to CITY copies of policies or certificates evidencing the existence of the insurance coverage required herein, which coverage shall remain in full force and effect continuously throughout the term of the AGREEMENT. Each policy of insurance that CONTRACTOR purchases in satisfaction of the above insurance requirements , except workers compensation, shall be endorsed naming CITY and its officers, agents, and employees as additional insureds, and shall provide that, except with respect to the coverage limits, insurance applies to each named and additional insured as though a separate policy were issued to each. Each policy shall provide for a waiver of subrogation as against CITY and its officers, agents, and employees, and shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30) days' prior written notice to CITY. CONTRACTOR shall further comply with all applicable state laws and regulations as they relate to labor requirements, minimum wage requirements, safety orders, and such other federal and state laws and regulations as may govern employment, safety, wage and benefit standards, including without limitation all nondiscrimination provisions. 12.NPHS and CITY shall have the right to examine and inspect rehabilitation work included in this contract. Any orders or instructions to the CONTRACTOR will be given by OWNER or NPHS, upon prior approval by CITY. CITY and NPHS shall be permitted to examine and inspect all subcontracts, materials, equipment, payrolls and conditions of employment pertaining to the work, including all relevant dates and records. 13.CONTRACTOR agrees that work premises shall be kept clean each day and orderly during the course of the work and, upon completion of work, to remove all debris and surplus materials from the property and to leave said property in a neat and broom-clean condition. 14.CONTRACTOR guarantees that all materials and equipment furnished by CONTRACTOR shall be new and of good quality and manufacturers' and suppliers' written guarantees and warranties covering said materials and equipment furnished under the contract shall be provided to the OWNER. 15.Neither the final payment nor partial or entire use of the premises by OWNER shall constitute an acceptance of work not done in accordance with the AGREEMENT or relieve the CONTRACTOR of liability in respect to any express warranties or responsibility for faulty materials or workmanship. The CONTRACTOR shall promptly remedy any defects in the work, and pay for any damage to other work resulting therefrom, which may appear WITHIN A PERIOD OF ONE YEAR with the exception of roofs where a minimum five year warranty must be provided from the date of final acceptance of the work unless a 55600.00203\43196937 .2 Packet Page.313 55600.00203\43196937 .2 71 longer period is specified. The OWNER will give notice of observed defects with reasonable promptness. 16.CONTRACTOR or subcontractors contracting for any part of the work under the AGREEMENT shall not work or permit work to be done on Sunday or CITY holidays without prior approval of the CITY. (Holidays include: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas.) 17.OWNER may continue to occupy the premises during rehabilitation work, but will cooperate with the CONTRACTOR in a reasonable manner, keeping interference to a minimum and abandoning limited areas as may be essential to conduct the work. 18.Existing utility services will be available to CONTRACTOR without charge, including: electricity, gas, and water. 19.Time is of the essence and work shall be accomplished as quickly and expeditiously as possible. In the event completion of the work is delayed beyond the due date set forth in this contract for any reason other than willful failure or refusal by the OWNER to cooperate or the causes specified in Section 20, CONTRACTOR shall pay to OWNER the sum of ONE HUNDRED DOLLARS AND ZERO CENTS ($100.00) per day as fixed, agreed and liquidated damages for each calendar day of delay from the above date stipulated for completion, or as modified in accordance with any approved change orders, until such work is satisfactorily completed and accepted. Such liquidated damages may be deducted from the final payment. Where the project cost is paid for by both the OWNER and CITY, such liquidated damages shall be shared on a prorata basis. 20.CONTRACTOR shall not be charged with liquidated damages pursuant to Section 19 for any delay in the completion of work due to: a.Any act of government, including controls or restrictions on or requisitioning of materials, equipment, tools or labor by reason of war, national defense, or any other national emergency. b.Any act of OWNER. c.Causes NOT reasonably foreseeable by the parties to the AGREEMENT at the time of its execution which are beyond the control of, and occur without fault or negligence by, the CONTRACTOR, including but not restricted to acts of another contractor in the performance of some other contract with the OWNER, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes and weather conditions. d.Any delay of any authorized subcontractor occasioned by any of the causes specified in paragraphs (a), (b), and (c) above. Provided however, that CONTRACTOR must promptly (within ten days) notify the OWNER and NPHS, in writing, of the cause of the delay. If the facts show the delay to be properly excusable under the terms of this Packet Page.314 55600.00203\43196937 .2 71 contract, the OWNER shall extend the contract time, subject to the CITY'S approval, by a period commensurate with the period of excusable delay. 21.In the event CONTRACTOR fails or refuses to complete the work as set forth in the schedule incorporated into the AGREEMENT, or fails or refuses to use due diligence in performing the required alterations and improvements, and in the further event that such failure, refusal or default continues for 48 hours after delivery to CONTRACTOR of a written notice to cure such default, then the OWNER may terminate the AGREEMENT by written notice to CONTRACTOR, and upon delivery of such notice, CONTRACTOR shall immediately surrender possession of the premises and remove all equipment and materials therefrom. CONTRACTOR shall, upon such termination, deliver materials and labor lien releases, executed by all persons and firms supplying labor and/or materials to the premises, and OWNER shall be obligated to pay CONTRACTOR only the dollar amounts specified for the portion of the work completed by CONTRACTOR and accepted by OWNER and CITY to the date of termination. In computing the amount due, CONTRACTOR shall not be entitled to any allowance for overhead, profit, insurance or other items listed in the total contract price on the bid form. Payment shall be made to CONTRACTOR only after the total job has been completed and under the terms and conditions as set forth in the AGREEMENT. 22.All claims and disputes relating to this contract shall be settled by arbitration in accordance with the rules of the American Arbitration Association for the construction industry. Should either party bring suit in court to enforce the terms hereof, any judgment awarded shall include court costs and reasonable attorney's fees to the prevailing party. 23.The parties hereto agree to hold harmless and defend, with counsel reasonably acceptable to CITY, CITY and each of its officers, employees and agents from all claims, damages, costs or expenses that may arise because of property damage and/or personal injury resulting from or out of the course of performing the work hereunder which may be caused by the willful or negligent act or omission by CONTRACTOR or any of its employees, agents, or subcontractors. 24.CONTRACTOR will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin or disabilities. CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, sex, or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. CONTRACTOR will comply with all provisions of Executive Order 11246 of September 24, 1965, and all implementing regulations of the Department of Labor. 25.The AGREEMENT constitutes the sole and only agreement of the parties hereto Packet Page.315 relating to the project and correctly sets forth the rights, duties, and obligations of each to the other as of its date. Any prior agreements, promises, negotiations, or representations not expressly set forth in the AGREEMENT are of no force and effect. The AGREEMENT may be amended only by a written addendum signed by both parties with prior approval by the CITY. 26.No member of the governing body of CITY, and no other public official of CITY who exercises any functions or responsibilities in connection with the administration of the project to which the AGREEMENT pertains, shall have any interest, direct or indirect, in the AGREEMENT. Owner: Date: Owner: Date: Contractor: Date: 55600.00203\43196937 .2 Packet Page.316 NOTICE TO PROCEED DATE: TO: Contractor Address City, CA Zip FROM:City of San Bernardino 290 N. D Street San Bernardino, CA 92401 You are hereby authorized to proceed with the work to be undertaken per bid specifications at , San Bernardino, CA 9240_ as of -----------' 2024-2025. You must begin work within three (3) days of issuance of this NOTICE TO PROCEED. You may conduct work between the hours of 7:00 a.m. to 7:00 p.m., Monday through Saturday, or as mutually agreed by you and the property owner, with concurrence of the CITY. You may not modify, revise, or change the scope of work provided under the bid specifications, except as authorized by the property owner and CITY, in writing after your submittal of a CHANGE ORDER, which includes a description of the change in work, the reason for the change and an itemized list of costs. Work must be completed within days of the date of this NOTICE TO PROCEED, or as otherwise agreed upon by the owner and CITY. Trina Perez, Housing Manager or Designee Date 55600.00203\43196937 .2 1 Packet Page.317 55600.00203\43196937 .2 CITY OF SAN BERNARDINO OWNER OCCUPIED REHABILITATION LOAN AGREEMENT THIS OWNER OCCUPIED REHABILITATION LOAN AGREEMENT (this "Agreement") is made this day of_, 20_ by and between the City of San Bernardino, a charter city organized under the laws of the State of California, with an address of 290 North D Street, San Bernardino, CA ("City") and , an individual ("Borrower"). RECITALS WHEREAS, Borrower owns and lives m a single-family residence located at within the City (the "Property"); and WHEREAS, City receives funding under the United States Department of Housing and Urban Development ("HUD") HOME Investment Partnership ("HOME") Program, which is eligible to be used for the improvement and rehabilitation of residential property within the City; and WHEREAS, City has adopted an Owner Occupied Rehabilitation Program in order to provide loans of said HOME funds to certain owners of eligible residential property to construct improvements to and rehabilitate their properties; and, WHEREAS, Borrower proposes to make improvements to and rehabilitate the Property (the "Project"), and such improvements and rehabilitation will, in furtherance of the City's objectives for the Owner Occupied Rehabilitation Program, improve the appearance of the City, assist in the elimination of physical and economic blight in the City, and stimulate private investment; and, WHEREAS, City desires to provide HOME funding to Borrower for the Project; and WHEREAS, in furtherance of the foregoing, City and Borrower desire to enter into this Agreement to set forth the terms and conditions of the funding and construction of the Project. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, CITY AND BORROWER HEREBY AGREE AS FOLLOWS: Section 1. Recitals. The Recitals of this Agreement are true and correct and are incorporated herein by this reference. The information and facts set forth in the Recitals are material to this Agreement. Section 2. City Loan. City shall provide Borrower with the sum of $_ in HOME funds as a loan (the "Loan") for certain construction work and materials for the furtherance of the Project by Borrower, subject to the conditions and restrictions set forth in this Agreement. The Loan shall not be increased under any circumstances, notwithstanding any increased costs Packet Page.318 55600.00203\43196937 .2 for materials, supplies, or labor costs, or cost overruns of any nature with respect to the implementation of the Project which may exceed the anticipated costs of the Project. Any increased costs of the Project in excess of the Loan amount shall be the responsibility of, and paid for, by Borrower from independent sources of funds and not from any additional funding requests submitted by Borrower to the City. The Loan is a forgivable loan, with twenty (20%) of the principal amount of the Loan forgiven each year, commencing on the sixth anniversary of the execution of the Promissory Note, until the tenth anniversary of the execution of the Promissory Note at which time the entire amount of the Loan will be forgiven. The Loan will accrue at 3% simple interest per annum, with no payments due on the Loan unless one of the following actions occur after receipt of the Loan; Property sale, transfer of title of the Property, the Borrower ceases to occupy the home as their primary residence, or the Borrower refinances any other financing secured by the Property or obtains an equity line of credit. Any absence from the Property for a period of ninety (90) days or more days shall be deemed an abandonment of the Property as the principal residence of Borrower. Section 3. Use and Disbursement of Loan Funds; Selection and Performance of General Contractor. (a)Borrower covenants that the Loan funds shall be expended solely to defray the eligible costs of the Project. The Loan proceeds shall be disbursed by the City from time to time directly to a general contractor selected by Borrower to construct the Project, as specified below. No portion of the Loan proceeds shall be disbursed to Borrower. (b)The Loan and the Project shall be administered by NPHS Community Redevelopment, Inc., a California nonprofit corporation ("NPHS"). . NPHS shall assist Borrower in procuring a licensed and insured general contractor (the "Contractor") to perform the work for the Project. The procurement of the Contractor and of the materials required for the Project shall be conducted in accordance with the public bidding requirements that would apply if the City procured the Contractor and the materials, in such a manner as to procure the lowest possible bidders at the lowest possible prices. The lowest responsive and responsible bidder shall be awarded the contract. NPHS shall also assist Borrower in ensuring that all permits required for the Project are obtained, periodically inspecting the progress of work, processing any change orders and invoices, issuing the notice to proceed, and completing a homeowner satisfaction survey. (c)City assumes no responsibility to Borrower or to any other person or entity for the selection or the performance of the Contractor. In selecting the Contractor, Borrower shall not discriminate on the grounds of race, color, national origin, religion, sex, or age or physical disability not reasonably related to the work to be performed. (d)Prior to the commencement of any work on the Project, Borrower and NPHS shall submit for City approval (i) a schedule of performance showing the dates for the performance of each portion of the Project; (ii) a budget showing the amount to be paid for each portion of the Project and the total amount to be paid for the entire Project; (iii) documentation satisfactory to City evidencing that Borrower has closed on or secured any other financing required to complete the Project; and (iv) all permits required for the initial portion of the Project. All work shall be performed in accordance with the schedule, budget, and permits unless Packet Page.319 55600.00203\43196937 .2 otherwise authorized in writing by City. (e)Work on the Project shall proceed in the following order of priority: (i)Remediation of Health and Safety Code violations, if any (n) Emergency repairs, if applicable (riI)Americans with Disabilities Act improvements (i.e., handicapped accessibility), if applicable (IV)Energy efficiency/ weatherization upgrades, if applicable (v) General property improvements / repairs (t)Loan funds shall be disbursed by City to Contractor periodically, but not more often than once in each thirty (30) day period, as work on each portion of the Project is completed to the satisfaction of City, NPHS, and Borrower (as Borrower may reasonably determine). Borrower and NPHS shall submit to City, for City approval, the following documents as a condition precedent to the disbursement of Loan funds: (i)A Notice to Proceed, which upon City approval shall be issued to the Contractor prior to the commencement of any work. (n) Permits, as required for each portion of the Project, pnor to the commencement of any work on that portion. (m) Periodic inspection reports and photographs, to be submitted with each progress payment request for work on the Project. Inspection reports shall be prepared by NPHS after inspecting the work for completeness and accuracy. (IV) Invoices from Contractor, subcontractors if any, and material suppliers for each item of the work and materials for which Borrower is seeking payment by City. (v) A Notice of Completion, with evidence showing recording of the notice within the time required by law, upon the completion of the entire Project. If the Project is performed pursuant to more than one contract, a Notice of Completion, with such evidence of recording, shall be submitted upon the completion of each such contract. (Vl)Upon the completion of the Project, evidence that all available warranties for work or materials were assigned to Borrower. (vii.)Completed homeowner satisfaction survey. (g)Borrower shall be solely responsible for any Project costs for labor or materials not performed in compliance with the requirements of this Agreement. Borrower shall defend and hold City harmless from all costs and expenses with respect to all work performed and materials acquired not in compliance with this Agreement. Packet Page.320 55600.00203\43196937 .2 (h)All proceeds of the Loan shall be used on or before one (1) year from and after the date of this Agreement. Failure or inability of Borrower or NPHS to so use and apply such proceeds in furtherance of the Project by such date and in compliance with this Agreement shall relieve City of any further duty or obligation under this Agreement to provide for any further disbursements of Loan funds. Any disbursed but unspent funds at the time the Notice of Completion or a Notice of Cessation is recorded for the Project shall be returned immediately by Borrower to City. Section 4. Duty to Obtain Permits; Role of City. Borrower agrees that Borrower and Contractor shall have the sole obligation and duty to obtain whatever approvals and permits may be necessary to be obtained from City prior to the commencement of the Project and shall further be solely responsible for obtaining any and all necessary inspections and surveys related to the Project. Upon the request of Borrower, City staff may assist Borrower in determining the City approvals, if any, that may be required for the Project. Borrower shall have the duty and obligation to approve construction plans and designs for all aspects of the Project and shall be responsible for ensuring that all work relating to the Project is performed in accordance with City approved plans and specifications. Section 5. Maintenance Obligations for Project Improvements; Indemnity and Insurance. (a)In consideration of the Loan, Borrower agrees to be solely responsible for the maintenance, care and replacement of all landscaping materials, trees, irrigation systems and other similar improvements and all aspects of the building improvements that constitute the Project. Such maintenance obligation shall extend until the parties to this Agreement provide otherwise by written agreement, and such obligation shall be enforceable by City against Borrower. City may obtain such remedies to enforce this maintenance obligation, including specific performance and damages, as may be awarded by a court in the event Borrower fails to fulfill any obligations required by this Section. Borrower agrees to defend, indemnify and hold harmless City from all claims arising from any matters related to the maintenance obligation of Borrower and the location, replacement, operation and maintenance of all landscaping materials and irrigation systems installed within the public right-of-way. (b)Borrower agrees to defend and protect City, its governing boards, commissions, agents, officers, officials, employees, agents, and authorized representatives, against all claims and liability for death, injury, loss and damage resulting from Borrower's actions in connection with the Loan and the Project, including, without limitation, the ongoing maintenance of the landscaping areas, and shall secure and maintain insurance, and shall require the maintenance of insurance by Contractor and any subcontractors, as described below. No disbursement of the Loan shall be paid to the Contractor until Borrower provides the required policies and/or certificates evidencing the insurance required by this Agreement to City and the same are approved by City. (c)Borrower shall maintain, at all times during the term of this Agreement and while Borrower retains the maintenance obligations for the landscaping, property insurance on the Property, including full replacement value coverage, insuring the Property against fire, flood, and any and all other damage or casualty, with City as a loss payee, and including general Packet Page.321 55600.00203\43196937 .2 liability coverage. Borrower must timely pay any deductibles and retentions under all policies. (d)During the construction of the Project, Borrower shall require that all contractors, including Contractor, and subcontractors performing work on the Project maintain the following insurance coverage at all times during the performance of said work: (i)Comprehensive automobile liability insurance of not less than One Million Dollars and Zero Cents ($1,000,000.00) combined single limit per occurrence for each vehicle leased or owned and used in performing work under this Agreement. (n) Workers compensation coverage in accordance with California workers compensation laws for all employees performing work under this Agreement. (m) Builder's risk insurance to be written on an All Risk Completed Value form, in an aggregate amount equal to 100% of the completed insurable value of the Project, including materials to be acquired and installed within the public right-of-way. (IV) Commercial liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars and Zero Cents ($1,000,000.00), including products and completed operations coverage. Said insurance shall be primary insurance with respect to any coverage maintained by City and the policy shall so provide. If required by City from time to time, the Contractor shall increase the limits of its liability insurance to reasonable amounts customary for contractors performing work similar to the work to be performed under this Agreement. (e)Insurance coverage required under this Agreement shall be on an "occurrence" basis and not be written on a "claims made" basis unless City provides prior written approval. If any of the insurance coverage required under this Agreement is written on a claims-made basis, such insurance policy shall provide an extended reporting period continuing through the period of time that Borrower continues to have the obligation to maintain the improvements. (f)Each policy of insurance maintained in satisfaction of the above insurance requirements, except workers compensation, shall be endorsed naming City and its officers, officials, agents, representatives, and employees as additional insureds, and shall provide that, except with respect to the coverage limits, insurance applies to each named and additional insured as though a separate policy were issued to each. Each policy shall provide for a waiver of subrogation as against City and its officers, officials, agents, representatives, and employees, and shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30) days' prior written notice to City. (g)Receipt of evidence of insurance that does not comply with the above requirements shall not constitute a waiver of the insurance requirements of this Agreement. (h)Borrower, the Contractor, and its subcontractors shall immediately obtain replacement coverage for any insurance policy that is terminated, canceled, non-renewed, or policy limits of which are exhausted, or upon insolvency of the insurer that issued the policy. (i)All insurance to be obtained and maintained under this Agreement shall be Packet Page.322 55600.00203\43196937 .2 issued by a company or companies listed in the current "Best's Key Rating Guide, Property/Casualty" publication with a minimum Financial Strength Rating of at least A and a Financial Size Category designation of at least V, and shall be issued by a California admitted msurance company. (i) All insurance maintained in satisfaction of the requirements of this Agreement shall be primary to and not contributing to any other insurance maintained by the City. (k) Failure to maintain any insurance required by this Agreement in effect at all times shall be an Event of Default by Borrower. City, at its sole option, may exercise any remedy available to it in connection with such an Event of Default. Additionally, City may purchase such required insurance coverage and shall be entitled to immediate payment from Borrower for any premiums and associated costs paid by City for such insurance. Any election by City not to purchase insurance pursuant to this provision shall not relieve Borrower of its obligation to maintain and require the maintenance of the insurance policies coverage required by this Agreement. Section 6. Term of Agreement; Disposition of Unused Funds. This Agreement shall remain in effect for ten years following its execution by both parties, unless terminated sooner as provided for herein. Upon termination of this Agreement, and upon the recording of a Notice of Completion or Notice of Cessation for the Project, Borrower shall immediately return any unused Loan funds to City. Section 7.Occupancy Requirement; Loan Repayment/Acceleration. (a)The Loan must be evidenced by a promissory note (the "Note") secured by a deed of trust (the "Deed of Trust") on the Property. The provisions of the Note and Deed of Trust are incorporated herein by reference. (b)As specified in the Note and the Deed of Trust, Borrower agrees to occupy the Property as Borrower's principal residence for the term of this Agreement. In consideration, City agrees that as long as Borrower complies with this occupancy requirement, the Loan shall be forgiven at a rate of twenty percent of the principal amount of the loan each year, commencing on the sixth anniversary of the execution of the Note, with the full amount of the Loan forgiven on the tenth anniversary of the Note. The Loan will accrue at 3% simple interest per annum, with no payments due on the Loan unless one of the following actions occur after receipt of the Loan; Property sale, transfer of title of the Property, the Borrower ceases to occupy the home as their primary residence, or the Borrower refinances any other financing secured by the Property or obtains an equity line of credit. (c)If Borrower at any time transfers all or any part of Borrower's interest in the Property, except an easement subject to prior written approval of City, the entire Loan balance, including accrued interest, then outstanding shall become immediately due and payable by Borrower to City. Section 8. Time of Essence. Time is strictly of the essence with respect to each and every term, condition, obligation, and provision hereof and failure to timely perform any of the terms, conditions, obligations, or provisions hereof by either party shall constitute a material Packet Page.323 55600.00203\43196937 .2 breach of and a default under this Agreement by the party so failing to perform. Section 9. No Waiver. Delay or failure to exercise any right City may have or be entitled to, in the event of default by Borrower hereunder, shall not constitute a waiver of such right or any other right, in the event of a subsequent default by Borrower. Section 10. Events of Default. (a)Default. Failure or unexcused delay by either party to perform any material term or provision of this Agreement shall constitute a default hereunder; provided, however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct, or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and diligently pursues such cure, correction, or remedy to completion, such party shall not be deemed to be in default hereunder. (b)Notice of Default. The party claiming that a default has occurred shall give written notice of default to the party claimed to be in default, specifying the alleged default. If Borrower consists of two or more natural persons, notice to one person constitutes notice to all persons identified in this Agreement. Delay in giving notice of default shall not constitute a waiver of any default nor shall it change the time of default; provided, however, that the party claiming default shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. (c)Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of City are cumulative and the exercise by City of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. Borrower's exclusive remedy for default of this Agreement is termination, and City will only disburse Loan funds for that portion of the work or materials provided that is properly supported by documentation requested by City and that has been fully and adequately completed and accepted by City as of or prior to the date of such termination. (d)Breach. In the event that a default of either party remains uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this Agreement by serving written notice of such termination on the other party. Obligations of Borrower are joint and several as to each_(e.g. husband and wife, etc.). (a)Additional Rights and Remedies of City. Upon a default by Borrower: (i)City shall be released from any further obligations under this Agreement; provided, however, that the City shall not be released from its obligation to pay any amounts previously requested by Borrower for work performed or materials supplied under this Agreement, to which such default does not apply; and (n) City may seek any available legal or equitable relief. (b)Limitation of Remedies. Neither party shall be liable to the other for Packet Page.324 55600.00203\43196937 .2 consequential or incidental damages. Section 11. Further Assurances. Borrower shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as City shall, from time-to-time, deem necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. Section 12. Governing Law; Compliance. (a)This Agreement shall be governed by the laws of the State of California and, to the extent applicable, by the laws and regulations relating to the HOME Program, including without limitation those contained in Part 92 of Title 24 of the Code of Federal Regulations. Borrower agrees to comply with all of said laws and regulations in the use of the Loan funds. (b)Borrower further agrees to comply with all ordinances, rules, and regulations of City for the use and disbursement of the Loan. Nothing in this Agreement is intended to be, nor shall it be deemed to be, a waiver of any City ordinance, rule, or regulation or other applicable provisions of state law. (c)Any legal action brought under this Agreement must be instituted in the Superior Court for the County of San Bernardino, San Bernardino District, State of California, or in the Federal District Court in the Central District of California. (d)Borrower shall retain, for at least five years after the expiration or termination of this Agreement, all records in the possession of Borrower relating to the Project or the use of the Loan funds. (e)Borrower agrees to cooperate fully with City as may be required to respond to an audit or other investigative activity initiated by any governmental agency including, without limitation, HUD. Section 13. Amendment. No modification, rescission, waiver, release, or amendment of any provision of this Agreement shall be made except by a written agreement executed by Borrower and City and duly approved by the governing body of City or its designee. Section 14. No Assignment by Borrower. Borrower may not assign or transfer any portion of the Loan or this Agreement, without the prior express written consent of City, which may be given or withheld at the sole discretion of City. Section 15. Notices. Any notices, requests, or approvals to be given under this Agreement from one party to another may be personally delivered, delivered by nationally recognized overnight delivery service, or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested, to the following addresses: To Borrower: Packet Page.325 55600.00203\43196937 .2 To City: City of San Bernardino Attention: Economic Development and Housing Department 290 North D Street San Bernardino, CA 92401 Communications delivered personally or by nationally recognized overnight delivery service shall be effective upon such delivery. Communications sent by United States Mail shall be effective on the third (3rd) business day following their deposit for mailing with the United States Postal Service. Either party may change its address for notice by giving written notice thereof to the other party. Section 16. Partial Invalidity. If any term or provision or portion of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, and the application of such term or provision or portion thereof to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall be enforced to the fullest extent permitted by law. Section 17. No Intent to Create Third Party Beneficiaries. The parties intend that the rights and obligations under this Agreement shall benefit and burden only the parties hereto, and do not intend to create any rights in, or right of action to or for the use or benefit of any third party that is not one of the parties to this Agreement. Section 18. Entire Agreement. This Agreement is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented, or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein. Section 19. Construction. Headings at the beginning of each Section are solely for the convenience of the parties and are not a part of this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. Unless otherwise indicated, all references to Sections are to this Agreement. Section 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute a single instrument. [SIGNATURE PAGE FOLLOWS] Packet Page.326 55600.00203\43196937 .2 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written next to the signatures of their duly authorized representatives, below. BORROWER Date: By: Date: By: CITY Date: By: ATTEST: By: APPROVED AS TO FORM AND LEGAL CONTENT: , City Attorney By: Packet Page.327 55600.00203\43196937.2 ] ] ] ] Recording requested by and ] When recorded return to:] ] ] City of San Bernardino ] Economic Development & Housing Department ] 290 North D Street ] San Bernardino, CA 92401]] ] Attn: Director of Economic Development and ] Housing ] ] City of San Bernardino OWNER-OCCUPIED REHABILITATION PROGRAM DEED OF TRUST NOTICE TO BORROWER THIS DEED OF TRUST CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS Loan No. This Deed of Trust is made on by as trustor (the "Borrower") and [ ], as trustee (the "Trustee"), whose business address is 290 North D Street, San Bernardino, CA 92401 in favor of the City of San Bernardino, as beneficiary ("Lender") whose address is 290 North D Street, San Bernardino, CA 92401, or Lender's assignee. 1.BORROWER, IN CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED AND THE TRUST HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of sale and right of entry and possession, all of Borrower's right, title and interest now held or hereafter acquired in and to the following: (a) all of that certain real property (the "Property") located at , San Bernardino [zip code] in the County of San Bernardino, the State of California, which is more particularly described in Exhibit A (attached) which is incorporated herein by this reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to, substitutions for, changes in or replacements of the whole or any part of said articles of property; all of which are hereby pledged and assigned, transferred, and set over onto Trustee, and for purposes of this Deed of Trust declared to be part of the realty; provided, however, that furniture and other personal property of Borrower now or hereafter situated on said real property are not intended to be included as part of the Property. Packet Page.328 55600.00203\43196937.2 2.FOR THE PURPOSE OF SECURING: 2.1.Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrower dated , and designated as City of San Bernardino Owner Occupied Rehabilitation Program Loan No. (the "Note") of the Borrower in the principal amount of Dollars ($ ), and any and all amendments, modifications, extensions or renewals of the Note. The Note and this Deed of Trust are subject to the terms, conditions, and restrictions of the United States Department of Housing and Urban Development ("HUD") HOME Investment Partnership Program ("HOME") as set forth in the implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference. Concurrently herewith, Lender and Borrower have entered into a loan agreement (the "Loan Agreement") setting forth the terms of the loan secured hereby. 2.2.Payment of such additional sums: (a)As may hereafter be borrowed from Lender by the then-record owner of the Property and evidenced by a promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of the Note; and (b)As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender, under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and (c)As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed of Trust. 2.3.Performance of each obligation, covenant, and agreement of Borrower contained in the Loan Agreement, this Deed of Trust, the Note, or any other document executed by Borrower in connection with the loan(s) secured by this Deed of Trust, and all amendments to these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference. 3.BORROWER COVENANTS: Borrower hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full and timely performance by Borrower of each and every obligation, covenant, and agreement of Borrower under the Loan Agreement, the Note, and this Deed of Trust, and as additional consideration for the obligation(s) evidenced by the Note, Borrower covenants as follows: 3.1.Title. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring Lender's interest in the Property. 3.2.Payment. That Borrower shall promptly pay, when due, the then outstanding balance of the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust. 3.3.Maintenance of the Property. (a) To keep the Property in a decent, safe, sanitary, tenantable condition and repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about Packet Page.329 55600.00203\43196937.2 the Property any condition causing the Property to become less valuable; (c) not to remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the Property; (d) to repair, restore or rebuild promptly any buildings or improvements on the Property that may become damaged or be destroyed while subject to the lien of this Deed of Trust; (e) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; (f) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Lender's written consent; and (g) not to alter the use of all or any part of the Property without the prior written consent of the Lender. 3.4.Appear and Defend. Borrower shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Lender or Trustee; and shall pay all costs and expenses incurred by Lender or Trustee, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which the Lender or Trustee may appear, 3.5.Payment of Taxes and Utility Charges. Borrower shall pay: at least ten (10) days before delinquency, all taxes and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on the Property or any part thereof; and all costs, fees and expenses of this Deed of Trust. Borrower shall make such payments when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this section, and Borrower shall promptly furnish to Lender receipts evidencing all such payments made. 3.6.Insurance. To keep the Property insured with loss payable to the Lender, against loss or damage by fire, flood, and any and all other damages, hazards, casualties and contingencies. Insurance policies shall provide coverage in the amount of the replacement cost of the Property. Borrower shall deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender evidencing payment of the premiums. All such policies shall provide that the Lender shall be given thirty (30) days advance written notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it. Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the repair or restoration of the insured property. 3.7.Payments and Discharge of Liens. Borrower will pay, when due, all claims of every kind and nature which might or could become a lien on the Property or any part thereof; provided, however, that the following are excepted from this prohibition: (a) liens for taxes and assessments which are not delinquent but by law are given the status of a lien, and (b) such of the above claims as are, and only during the time they are, being contested by Borrower in good faith and by appropriate legal proceedings. Borrower shall post security for the payment of these contested claims as may be requested by the Lender. Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is superior to this Deed of Trust. Packet Page.330 55600.00203\43196937.2 4.IT IS MUTUALLY AGREED THAT: 4.1.Future Advances. Upon request by Borrower, Lender, at Lender's option, may make future advances to Borrower. All such future advances shall be added to and become a part of the indebtedness secured by this Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are secured by this Deed of Trust. 4.2.Disbursements to Protect Lender's Security. All sums disbursed by Lender to protect and preserve the Property, this Deed of Trust, or Lender's security for the performance of Borrower's obligations under the Note shall be and be deemed to be an indebtedness of Borrower to Lender secured by this Deed of Trust. 4.3.Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure of any mortgage, deed of trust, or other lien secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearance, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any amounts disbursed by Lender pursuant to this Section 4.3, with interest thereon, shall become additional indebtedness of Borrower to Lender secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section 4.3 shall require Lender to incur any expense or take any action hereunder. 4.4.Inspection. Lender or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to any such inspection specifying reasonable cause for the inspection. 4.5.Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, or (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Lender. The Lender is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Lender may be released to Borrower upon such conditions as the Lender may impose for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shall not cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender's option, either to restoration or repair of the Property or to the sum secured by this Deed of Trust. Packet Page.331 55600.00203\43196937.2 4.6.Prohibition on Transfers oflnterest. If all or any part of the Property or an interest therein is sold or transferred by Borrower without Lender's prior written consent, Lender may, at Lender's option, declare all the sums secured by this Deed of Trust to be immediately due and payable. If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof. 4.7.Sale or Forbearance. No sale of the Property, forbearances on the part of Lender or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Borrower either in whole or in part. 4.8.Lender's Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) Lender may, at its sole discretion, (I) release any person now or hereafter liable for payment of any or all such indebtedness. (II) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (III) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof, join in granting any assessment thereon, or join in any such agreement of extension or subordination. 4.9.Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. 4.10.Requirement of Owner-occupancy and Permitted Transfers. Borrower shall occupy the Property as Borrower's principal place of residence during the term of the Note, except as may otherwise be expressly agreed upon by Lender in writing. 5.EVENTS OF DEFAULT 5.1.Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust (a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof when and as the same becomes due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the Note or this Deed of Trust, including but not limited to the provision requiring occupancy of the Property by Borrower; or (c) the occurrence of any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the occurrence of any event which, under the terms of any senior note or deed of trust, shall entitle the Lender to exercise the rights or remedies thereunder. 5.2.Acceleration and Sale. (a)Acceleration. Upon Borrower's breach of any covenant or agreement of Borrower in this Deed of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, or upon Borrower's Packet Page.332 55600.00203\43196937.2 failure to make any payment or to perform any of its obligations, covenants and agreements pursuant to the Note, Lender may at Lender's option mail notice to Borrower as provided in Section 6.9 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender at Lender's option may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, except that Lender and Borrower shall each bear their own attorney fees. (b)Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this Deed of Trust, Borrower will have the right to have any proceedings begun by Lender to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Borrower pays all reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, except attorney fees; and (3) Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property and Borrower's obligation to pay the sums secured by this Deed of Trust will continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred. (c)Sale. After delivery to Trustee of a Notice of Default and Demand for Sale, and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Borrower, Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Borrower, Trustee or the Lender, may purchase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust, Trustee shall apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by the Note or otherwise, or representing advances made or costs or expenses paid or incurred by the Lender under this Deed of Trust, or the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured, and to the payment of all other sums then secured thereby, in such order as the Lender shall direct; and the remainder, if any, shall be paid to the person or persons legally entitled thereto. (d)Assignment of Rents; Appointment of Receiver; Lender in Possession. Upon acceleration under paragraph (a) of Section 5.2 hereof or abandonment of the Property, Lender (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorney's fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents Packet Page.333 55600.00203\43196937.2 actually received. The provisions of this paragraph and paragraph (a) of Section 5.2 shall operate subject to the rights of prior lien holders. 5.3.Exercise of Remedies; Delay. No exercise of any right or remedy by the Lender or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder. 5.4.Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefor, by filing for record in the office where this Deed of Trust is recorded a substitution of trustee, and said power of substitution of trustee or trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of substitution of trustee, no matter how often, shall not be deemed an exhaustion thereof, and upon recording of such substitution of trustee, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with like effect as if originally named as trustee or as one of the trustees . S.S. Remedies Cumulative. No remedy herein contained or conferred upon the Lender or Trustee is intended to be exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee. Each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. 6.MISCELLANEOUS PROVISIONS 6.1.Successors, Assigns, Gender, Number. The covenants and agreements contained in this Deed of Trust shall bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders. 6.2.Headings. The headings contained in this Deed of Trust are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof. 6.3.Actions on Behalf of the Lender. Except as otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall be in writing. 6.4.Terms. The word "Lender" means the present Lender, or any future owner or holder, including pledgee, of the indebtedness secured hereby. 6.5.Obligations of Borrower. If more than one person has executed this Deed of Trust as "Borrower," the obligations of all such persons hereunder shall be joint and several. 6.6.Incorporation by Reference. The provisions of the Loan Agreement and the Note are incorporated by reference herein as though set out verbatim. 6.7.Severability. If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. Packet Page.334 55600.00203\43196937.2 6.8.Indemnification. Borrower shall indemnify and hold the Lender, its officers and agents harmless against any and all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of anything done or omitted pursuant to or in connection with this Deed of Trust. Borrower shall not assert any claim against the Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower's expense, defend, indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages (general, punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages, losses or expenses (including reasonable legal expense) incurred by the Lender as a result of any legal action arising out of this Deed of Trust. 6.9.Notice. Except for any notice required under applicable law to be given in another manner (a) any notice to Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property address or any other address Borrower designates by notice to Lender as provided herein; and, (b) any notice to Lender shall be given by certified mail, return receipt requested, to Lender's mailing address stated above herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower or Lender when received after mailing in the manner designated herein. 6.10.Beneficiary Statement. Lender may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount provided for in Section 2943 of the Civil Code of California. 6.11.Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as a single family residential dwelling. IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth above. By signing below, Borrower agrees to the terms and conditions as set forth above. MAILING ADDRESS FOR NOTICES:SIGNATURE OF BORROWER(s): (Street)(Borrower Name(s)) San Bernardino CA (City) (State) (Zip) Packet Page.335 55600.00203\43196937.2 Acknowledgements CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed under the foregoing Deed of Trust from [name of Trustor] to the City of San Bernardino ("City"), a municipal corporation, as to the following property is hereby accepted: Real property in the City of San Bernardino, County of San Bernardino, State of California, described as follows: [legal description] APN: This acceptance is made by the City Manager of the City on behalf of the City pursuant to authority conferred by action of the Mayor and City Council by Resolution No. , and the City as grantee consents to recordation of this Certificate by its duly authorized officer. CITY OF SAN BERNARDINO Dated: By: City Manager ATTEST: City Clerk Packet Page.336 55600.00203\43196937.2 City of San Bernardino OWNER-OCCUPIED REHABILITATION PROGRAM PROMISSORY NOTE NOTICE TO BORROWER THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS AND IS SECURED BY A SECOND DEED OF TRUST ON RESIDENTIAL PROPERTY Loan No. $ [loan amount][property address] FOR VALUE RECEIVED, the undersigned, (the "Borrower") hereby promises to pay to the order of the City of San Bernardino ("Lender") at the following address 290 North D Street, San Bernardino, CA 92401 or at such other place as the holder may from time to time designate by written notice to Borrower, in lawful money of the United States, the principal sum of dollars ($ ) which loan shall accrue three percent (3%) simple interest per annum. The obligation of the Borrower with respect to this Note is secured by that certain City of San Bernardino Owner-Occupied Rehabilitation Program Deed of Trust - Loan No. (the "Deed of Trust"), executed by the Borrower concurrently herewith. 1.Borrower's Obligation. This Note evidences the obligation of the Borrower to the Lender for the repayment of funds received by the Lender under the United States Department of Housing and Urban Development ("HUD") HOME Investment Partnership Program ("HOME"), which funds will be loaned (the "HOME Loan") by Lender to Borrower to finance the rehabilitation of that certain real property (the "Property") which has the address of , San Bernardino, California , more fully described in Exhibit A to the Deed of Trust. Concurrently herewith, Borrower and Lender have entered into a loan agreement (the "Loan Agreement") setting forth the terms of the HOME Loan. 2.Borrower(s) Acknowledge(s) and Agrees: that the HOME Loan is subject to the terms, conditions, and restrictions of the Loan Agreement and applicable HOME requirements as set forth in implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Part 92 of Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference. Borrower agrees to use the HOME Loan funds exclusively for the rehabilitation of the Property and agrees that any other use of said funds will constitute a default under this Note. Borrower represents that Borrower owns the Property [in fee simple] and agrees to maintain ownership throughout the term of this Note except as otherwise provided herein. Borrower agrees throughout the term of this Note to maintain property insurance insuring the Property against fire, flood, and any and all other damage or casualty, with Lender as a loss payee. Packet Page.337 55600.00203\43196937.2 3.Repayment of Loan: Forgiveness. No periodic payments are required hereunder. Borrower agrees to pay the unpaid principal balance and accrued interest and any other amounts due under this Note upon the earlier of: (a)sale, transfer, lease, or encumbrance, including without limitation refinancing, of all or any part of Borrower's interest in the Property without Lender's prior written consent; or (b)Borrower's failure to occupy the Property as Borrower's principal place ofresidence. Without limiting the generality of the foregoing, any absence from the Property for a period of ninety (90) days or more days shall be deemed an abandonment of the Property as the principal residence of Borrower in violation of the conditions of this subsection. (c)Provided that neither of the events described above triggering repayment or any other default under this Note, the Deed of Trust or the Loan Agreement have occurred prior to the sixth anniversary of the date of this Note as set forth above, twenty percent (20%) of the principal amount of the Loan shall be forgiven as of that date. Thereafter, on each anniversary of the date of this Note, provided neither of the events triggering repayment or any other default under this Note, the Deed of Trust or the Loan Agreement have occurred, an additional twenty percent (20%) of the original principal amount of the Loan shall be forgiven, until the tenth anniversary of this Note, upon which the entire Loan will be forgiven. Upon such date, provided repayment of the Loan has not been triggered, the Lender shall return this Note to Borrower and shall release the Property from the Deed of Trust. 4.Permitted Transfers. The HOME Loan is not assumable except with the express written consent of the Lender, in the Lender's sole discretion . 5.Acceleration of Payment. The entire balance then outstanding of the HOME Loan shall become immediately due and payable, at the option of the holder and without demand or notice, upon the occurrence of any of the following events: (a)In the event of a default under the terms of the Loan Agreement, this Note, or the Deed of Trust; (b)In the event that the Borrower shall cease to occupy the Property as Borrower's principal place of residence; (c)In the event of any sale, transfer, lease, or encumbrance of the Property without Lender's prior written consent in violation of Paragraphs 3(b) and 4 of this Promissory Note; or (d)In the event that the Borrower shall become a bankruptcy debtor, insolvent, or subject to a receivership, or shall make an assignment for the benefit of creditors. 6.Effect of Acceleration Clause. Failure of the holder to exercise the option to accelerate Packet Page.338 55600.00203\43196937.2 payment as provided in Paragraph 5 of this Note will not constitute waiver of the right to exercise this option in the event of subsequent cause for acceleration. Failure by Borrower to occupy the Property as Borrower's principal place of residence shall be considered an ongoing event of default under this Note. 7.Place and Manner of Payment. All amounts due and payable under this Note are payable at the principal office of the Lender set forth above, or at such other place or places as the Lender may designate to the Borrower in writing from time to time. 8.Application of Payments. All payments received on account of this Note shall be applied to the reduction of principal. 9.Default and Acceleration. All covenants, conditions and agreements contained in the Loan Agreement and the Deed of Trust are hereby made a part of this Note. The Borrower agrees that the unpaid balance of the then principal amount of and accrued interest on this Note shall, at the option of the Lender or, if so provided in this Note and the Deed of Trust, automatically become immediately due and payable upon the failure of the Borrower to make any payment hereunder as and when due; upon the failure of the Borrower to perform or observe any other term or provision of this Note; or upon the occurrence of any event (whether termed default, event of default or similar term) which under the terms of the Loan Agreement or the Deed of Trust shall entitle the Lender to exercise rights or remedies thereunder. The material falsity of any representation made by the Borrower in this Note, the Loan Agreement, or the Deed of Trust shall constitute an event of default under this Note. 10.Notices. Except as may be otherwise specified herein, any approval, notice, direction, consent, request or other action by the Lender shall be in writing and must be communicated to the Borrower at the address of the Property, or at such other place or places as the Borrower shall designate to the Lender in writing, from time to time, for the receipt of communications from the Lender. Mailed notices shall be deemed delivered and received five (5) working days after deposit in the United States mail in accordance with this provision 12.Prepayment Policy: Borrower may prepay this Note at any time without penalty. 13.Governing Law. This Note shall be construed in accordance with and be governed by the laws of the State of California. 14.Severability. If any provision of this Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby. 15.No Waiver by the Lender. No waiver of any breach, default or failure of condition under the terms of this Note, the Loan Agreement, or the Deed of Trust shall thereby be implied from any failure of the Lender to take, or any delay by the Lender in taking, action with respect to such breach, default or failure or from any previous waiver of any similar or unrelated breach, default or failure; and a waiver of any term of this Note, the Loan Agreement, the Deed of Trust, or any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. 16.Successors and Assigns. The promises and agreements herein contained shall bind and inure to the benefit of, as applicable, the respective heirs, executors, administrators, successors and Packet Page.339 55600.00203\43196937.2 assigns of the parties. Executed as of the date set forth above at , California City Borrower Mailing Address for Notices: San Bernardino, CA Packet Page.340 55600.00203\4319693 7.2 7/16/18 CITY OF SAN BERNARDINO OWNER-OCCUPIED REHABILITATION PROGRAM TRUTH IN LENDING DISCLOSURES ANNUAL PERCENTAGE FINANCE CHARGE AMOUNT FINANCED TOTAL OF PAYMENTS RATE $0.00 $ $ 0.00 0 % COST OF CREDIT AS YEARLY RATE DOLLAR AMOUNT CREDIT WILL COST AMOUNT OF CREDIT APPROVED AMOUNT PAID AFTER MAKING ALL PAYMENTS AS SCHEDULED PAYMENT SCHEDULE NUMBER OF PAYMENTS N/A AMOUNT OF PAYMENTS N/A MONTHLY PAYMENTS DUE BEGINNING Date: N/A THERE WILL BE A LATE CHARGE OF$ '-"N/"--A'---_IF PAYMENT IS MORE THAN 10 DAYS LATE. NOTE: THERE IS THREE PERCENT (3%) INTEREST PER ANNUM ON THIS LOAN. THE LOAN IS FULLY DEFERRED AND WILL BE FORGIVEN AFTER 10 YEARS. FINANCE CHARGE, NUMBER OF PAYMENT,SAND FINAL PAYMENT SCHEDULE ARE ESTIMATES. I/WE AM/ARE GIVING THE CITY OF SAN BERNARDINO A SECURITY INTEREST IN MY/OUR PROPERTY LOCATED AT: SAN BERNARDINO CA Street Address City State Zip Code AMOUNT FINANCED $ .00 Amount Paid by Owner $ 0.00 Total Credited to Escrow $0.00 Account No. _ FEES PAID TO OTHERS ON MY BEHALF FROM MY ESCROW ACCOUNT: 1. To for Escrow Fee $ 2. To for Loan Package Processing $ 3. To for Tax Service $ 4.To 5.To 6.To 7.To 8.To 9.To for Recording Fees for Credit Report for Contingency on Loan for Origination Fee for Loan Document Fee for Collection Fee $ $ $ $ $ $ 10. To for Title Report $ 11. To for Rehabilitation Work $ 12. To for Down Payment Assistance $ MQ 13. To For Closing $ MQ 14.To for $ Total $ MQ I/WE HEREBY APPROVE THE ABOVE LOAN FEES AND LOAN TERMS. App icant Signature App icant Signature Date Date Packet Page.341 55600.00203\4319693 7.2 7/16/18 Recording Requested By: CITY OF SAN BERNARDINO And When Recorded Mail to: City of San Bernardino Attention: Economic Development & Housing Department 290 North D Street, Third Floor San Bernardino, CA 92401 Request for Notice Under Section 2924b CIVIL CODE EXEMPT FROM RECORDING FEES UNDER GOVERNMENT CODE SECTION 27383 AND/OR 6103 In accordance with Civil Code section 2924b, request is hereby made that a copy of any Notice of Default and a copy of any Notice of Sale under the Deed of Trust recorded as Instrument No. on ,in book N/A, page(s) N/A, Official Records of San Bernardino County, California, and describing land therein as: That certain property located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described as: See Exhibit "A" attached hereto and incorporated herein by this reference. APN : Executed by [First & Last Name] as Trustor(s), in which the City of San Bernardino is named as Beneficiary, and the City of San Bernardino is named as Trustee. Mailed to:City of San Bernardino Attention: Economic Development & Housing Department 290 North D Street, Third Floor San Bernardino, CA 92401 NOTICE: A copy of any notice of default and any notice of sale will be sent only to the address contained in this recorded request. If your address changes, a new request must be recorded. Dated: Kathy Brann, Director City of San Bernardino Department of Economic Development and Housing Packet Page.342 55600.00203\43196937.2 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. (insert name and title of the officer) 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. before me,On State of California County of San Bernardino ACKNOWLEDGMENT Packet Page.343 55600 .00203\43196937 .2 7/16/18 EXHIBIT"A" LOT OF TRACT IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK OF MAPS, PAGES TO INCLUSIVE, RECORDS OF SAID COUNTY [AMENDED PER CERTIFICATION OF CORRECTION RECORDED AS INSTRUMENT NUMBER , OFFICIAL RECORDS, AND BY CERTIFICATE OF CORRECTION RECORDED AS INSTRUMENT NUMBER , OFFICIAL RECORDS] APN: San Bernardino, CA 92 Packet Page.344 55600 .00203\43196937 .2 7/16/18 [date][name(s)] ACKNOWLEDGEMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice above. NOTICE OF RIGHT TO CANCEL Owner-Occupied Residential Rehabilitation Loan# [street address], San Bernardino, CA. 92405 Your Right to Cancel You are entering into a transaction that will result in a security interest in your home. You have a legal right under federal law to cancel this transactio,nwithout cost, within three business days from whichever of the following events occurs last: a)the date of the transactio,nwhich is ; or (Date) b)the date you received your Truth in Lending Disclosures; or c)the date you received this notice of your right to cancel. If you cancel the transactio,nthe security interest is also cancelled. Within 20 calendar days after we receive your notice, we must take the steps necessary to reflect the fact that the security interest in your home has been cancelled, and we must return to you any money or property you have given to us or to anyone else in connection with this transaction. You may keep any money or property we have given you until we have done the things mentioned above, but you must then offer to return the money or property. If it is impractical or unfair for you to return the property, you must offer its reasonable value. You may offer to return the property at your home or at the location of the property. Money must be returned to the address below. If we do not take possession of the money or property within 20 calendar days of your offer, you may keep it without further obligation. How to Cancel If you decide to cancel the transaction, you may do so by notifying us in writing, at City of San Bernardino 290 North D Street, San Bernardino, CA 92401 Attn: Director of Economic Development and Housing You may use any written statement that is signed and dated by you that states your intention to cancel, or you may use this notice by dating and signing below. Keep one copy of this notice because it contains important information about your rights. If you cancel by mail or telegram, you must send the notice no later than midnight of (Date) (or midnight of the third business day following the latest of the three events listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to the above address no later than that time. I WISH TO CANCEL (Consumer 's Signature)(Date) Notice of Right to Cancel Packet Page.345 55600.00203\43196937 .2 NPHS Community Redevelopment, Inc.City of San Bernardino City of San Bernardino OWNER OCCUPIED REHABILITATION PROGRAM ACCEPTANCE AND APPROVAL OF COMPLETED WORK Site Address:Address San Bernardino, CA 9#### Owner:Name By signing in the space provided below, the Contractor, Homeowner, and NPHS Community Redevelopment, Inc., a California nonprofit corporation verify that the work is complete, approved and accepted by all parties. Furthermore, all work has been completed according to the specifications in the approved Project Cost Estimate/Bid and are in compliance with Health and Safety Code, Building Code, other State or local codes, and HQS. City Representative's signature authorizes payment from NPHS to the Contractor. ATTACH COPIES OF PERMITS AND INSPECTION RECORDS (if Applicable) Amount: $ Amount Permit #: PMT Number Contractor:Date Owner:Date Approved by NPHS Representative Approved by City Representative Date Date Packet Page.346 55600.00203\43196937 .2 Attachment "C" to Master Agreement Total Budget Total Project Cost a.Rehabilitation Costs: $800,000 b.Administrative Reimbursement (15%): $120,000 Total: $920,000 Item Description Estimated Quantity Unit Price Subtotal 1 Allowance for Subcontractor Work 20 $ 40,000*$ 800,000 2 Administration (15% of each project)20 $ 6,000 $ 120,000 I Total I $46,000 $ 920,000 *Not to exceed $40,000 Packet Page.347 55600.00203\43196937 .2 Attachment "D" to Master Agreement Schedule of Work Number of Applications Accepted a Month From Julyl, 2024 - June 30, 2025 Average 4 to 5 applications /month Number of Applications Processed a Month Average of 1 to 2 per/month Number of Homes to begin Rehabilitation a Month Average of 1 to 2 homes /month Number of Homes to be Completed a Month Each contract has 60 days to complete but most average 30 to 45 days, average 1 per/month Number of Homes to be Completed in Total (for $920,000 funding round) $800,000 x 15% = $120,000 Admin Service $800,000 in Loans/ $40,000 loan amount= 10 Applicants Packet Page.348 55600.00203\43196937 .2 Attachment "E" to Master Agreement Form of OORP Loan Agreement Packet Page.349 Attachment E - 1 55600.00203\43196937 .2 CITY OF SAN BERNARDINO OWNER OCCUPIED REHABILITATION LOAN AGREEMENT THIS OWNER OCCUPIED REHABILITATION LOAN AGREEMENT (this "Agreement") is made this day of_, 20_ by and between the City of San Bernardino, a charter city organized under the laws of the State of California, with an address of 290 North D Street, San Bernardino, CA ("City") and , an individual ("Borrower"). RECITALS WHEREAS, Borrower owns and lives m a single-family residence located at within the City (the "Property"); and WHEREAS, City receives funding under the United States Department of Housing and Urban Development ("HUD") HOME Investment Partnership ("HOME") Program, which is eligible to be used for the improvement and rehabilitation of residential property within the City; and WHEREAS, City has adopted an Owner Occupied Rehabilitation Program in order to provide loans of said HOME funds to certain owners of eligible residential property to construct improvements to and rehabilitate their properties; and, WHEREAS, Borrower proposes to make improvements to and rehabilitate the Property (the "Project"), and such improvements and rehabilitation will, in furtherance of the City's objectives for the Owner Occupied Rehabilitation Program, improve the appearance of the City, assist in the elimination of physical and economic blight in the City, and stimulate private investment; and, WHEREAS, City desires to provide HOME funding to Borrower for the Project; and WHEREAS, in furtherance of the foregoing, City and Borrower desire to enter into this Agreement to set forth the terms and conditions of the funding and construction of the Project. NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES CONTAINED HEREIN AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, CITY AND BORROWER HEREBY AGREE AS FOLLOWS: Section 1. Recitals. The Recitals of this Agreement are true and correct and are incorporated herein by this reference. The information and facts set forth in the Recitals are material to this Agreement. Section 2. City Loan. City shall provide Borrower with the sum of $_ in HOME funds as a loan (the "Loan") for certain construction work and materials for the furtherance of the Project by Borrower, subject to the conditions and restrictions set forth in this Agreement. The Loan shall not be increased under any circumstances, notwithstanding any increased costs Packet Page.350 Attachment E - 2 55600.00203\43196937 .2 for materials, supplies, or labor costs, or cost overruns of any nature with respect to the implementation of the Project which may exceed the anticipated costs of the Project. Any increased costs of the Project in excess of the Loan amount shall be the responsibility of, and paid for, by Borrower from independent sources of funds and not from any additional funding requests submitted by Borrower to the City. Loans are all forgivable loans, with the principal amount of the Loan being forgiven at a rate of 20% per year, commencing on the sixth anniversary of the execution of the Promissory Note for the Loan, until the tenth anniversary, at which point the entire principal amount of the Loan will be forgiven. The Loan will accrue at 3% simple interest per annum, with no payments due on the Loan unless one of the following actions occur after receipt of the Loan; Property sale, transfer of title of the Property, the Borrower ceases to occupy the home as their primary residence, or the Borrower refinances any other financing secured by the Property or obtains an equity line of credit. Any absence from the Property for a period of ninety (90) days or more days shall be deemed an abandonment of the Property as the principal residence of Borrower. Section 3. Use and Disbursement of Loan Funds; Selection and Performance of General Contractor. (i)Borrower covenants that the Loan funds shall be expended solely to defray the eligible costs of the Project. The Loan proceeds shall be disbursed by the City from time to time directly to a general contractor selected by Borrower to construct the Project, as specified below. No portion of the Loan proceeds shall be disbursed to Borrower. G) The Loan and the Project shall be administered by NPHS Community Redevelopment, Inc., a California nonprofit corporation ("NPHS"). . NPHS shall assist Borrower in procuring a licensed and insured general contractor (the "Contractor") to perform the work for the Project. The procurement of the Contractor and of the materials required for the Project shall be conducted in accordance with the public bidding requirements that would apply if the City procured the Contractor and the materials, in such a manner as to procure the lowest possible bidders at the lowest possible prices. The lowest responsive and responsible bidder shall be awarded the contract. NPHS shall also assist Borrower in ensuring that all permits required for the Project are obtained, periodically inspecting the progress of work, processing any change orders and invoices, issuing the notice to proceed, and completing a homeowner satisfaction survey. (k)City assumes no responsibility to Borrower or to any other person or entity for the selection or the performance of the Contractor. In selecting the Contractor, Borrower shall not discriminate on the grounds of race, color, national origin, religion, sex, or age or physical disability not reasonably related to the work to be performed. (I)Prior to the commencement of any work on the Project, Borrower and NPHS shall submit for City approval (i) a schedule of performance showing the dates for the performance of each portion of the Project; (ii) a budget showing the amount to be paid for each portion of the Project and the total amount to be paid for the entire Project; (iii) documentation satisfactory to City evidencing that Borrower has closed on or secured any other financing required to complete the Project; and (iv) all permits required for the initial portion of the Project. All work shall be performed in accordance with the schedule, budget, and permits unless Packet Page.351 Attachment E - 3 55600.00203\43196937 .2 otherwise authorized in writing by City. (m)Work on the Project shall proceed in the following order of priority: (Vl)Remediation of Health and Safety Code violations, if any (w) Emergency repairs, if applicable (viii)Americans with Disabilities Act improvements (i.e., handicapped accessibility), if applicable (IX)Energy efficiency/ weatherization upgrades, if applicable (x) General property improvements / repairs (n)Loan funds shall be disbursed by City to Contractor periodically, but not more often than once in each thirty (30) day period, as work on each portion of the Project is completed to the satisfaction of City, NPHS, and Borrower (as Borrower may reasonably determine). Borrower and NPHS shall submit to City, for City approval, the following documents as a condition precedent to the disbursement of Loan funds: (viii)A Notice to Proceed, which upon City approval shall be issued to the Contractor prior to the commencement of any work. (IX)Permits, as required for each portion of the Project, pnor to the commencement of any work on that portion. (x)Periodic inspection reports and photographs, to be submitted with each progress payment request for work on the Project. Inspection reports shall be prepared by NPHS after inspecting the work for completeness and accuracy. (xi)Invoices from Contractor, subcontractors if any, and material suppliers for each item of the work and materials for which Borrower is seeking payment by City. (xii)A Notice of Completion, with evidence showing recording of the notice within the time required by law, upon the completion of the entire Project. If the Project is performed pursuant to more than one contract, a Notice of Completion, with such evidence of recording, shall be submitted upon the completion of each such contract. (xiii)Upon the completion of the Project, evidence that all available warranties for work or materials were assigned to Borrower. (xiv)Completed homeowner satisfaction survey. (o)Borrower shall be solely responsible for any Project costs for labor or materials not performed in compliance with the requirements of this Agreement. Borrower shall defend and hold City harmless from all costs and expenses with respect to all work performed and materials acquired not in compliance with this Agreement. Packet Page.352 Attachment E - 4 55600.00203\43196937 .2 (p)All proceeds of the Loan shall be used on or before one (1) year from and after the date of this Agreement. Failure or inability of Borrower or NPHS to so use and apply such proceeds in furtherance of the Project by such date and in compliance with this Agreement shall relieve City of any further duty or obligation under this Agreement to provide for any further disbursements of Loan funds. Any disbursed but unspent funds at the time the Notice of Completion or a Notice of Cessation is recorded for the Project shall be returned immediately by Borrower to City. Section 4. Duty to Obtain Permits; Role of City. Borrower agrees that Borrower and Contractor shall have the sole obligation and duty to obtain whatever approvals and permits may be necessary to be obtained from City prior to the commencement of the Project and shall further be solely responsible for obtaining any and all necessary inspections and surveys related to the Project. Upon the request of Borrower, City staff may assist Borrower in determining the City approvals, if any, that may be required for the Project. Borrower shall have the duty and obligation to approve construction plans and designs for all aspects of the Project and shall be responsible for ensuring that all work relating to the Project is performed in accordance with City approved plans and specifications. Section 5. Maintenance Obligations for Project Improvements; Indemnity and Insurance. (1) In consideration of the Loan, Borrower agrees to be solely responsible for the maintenance, care and replacement of all landscaping materials, trees, irrigation systems and other similar improvements and all aspects of the building improvements that constitute the Project. Such maintenance obligation shall extend until the parties to this Agreement provide otherwise by written agreement, and such obligation shall be enforceable by City against Borrower. City may obtain such remedies to enforce this maintenance obligation, including specific performance and damages, as may be awarded by a court in the event Borrower fails to fulfill any obligations required by this Section. Borrower agrees to defend, indemnify and hold harmless City from all claims arising from any matters related to the maintenance obligation of Borrower and the location, replacement, operation and maintenance of all landscaping materials and irrigation systems installed within the public right-of-way. (m)Borrower agrees to defend and protect City, its governing boards, commissions, agents, officers, officials, employees, agents, and authorized representatives, against all claims and liability for death, injury, loss and damage resulting from Borrower's actions in connection with the Loan and the Project, including, without limitation, the ongoing maintenance of the landscaping areas, and shall secure and maintain insurance, and shall require the maintenance of insurance by Contractor and any subcontractors, as described below. No disbursement of the Loan shall be paid to the Contractor until Borrower provides the required policies and/or certificates evidencing the insurance required by this Agreement to City and the same are approved by City. (n)Borrower shall maintain, at all times during the term of this Agreement and while Borrower retains the maintenance obligations for the landscaping, property insurance on the Property, including full replacement value coverage, insuring the Property against fire, flood, and any and all other damage or casualty, with City as a loss payee, and including general Packet Page.353 Attachment E - 5 55600.00203\43196937 .2 liability coverage. Borrower must timely pay any deductibles and retentions under all policies. (o)During the construction of the Project, Borrower shall require that all contractors, including Contractor, and subcontractors performing work on the Project maintain the following insurance coverage at all times during the performance of said work: (v)Comprehensive automobile liability insurance of not less than One Million Dollars and Zero Cents ($1,000,000.00) combined single limit per occurrence for each vehicle leased or owned and used in performing work under this Agreement. (\tl)Workers compensation coverage in accordance with California workers compensation laws for all employees performing work under this Agreement. (w)Builder's risk insurance to be written on an All Risk Completed Value form, in an aggregate amount equal to 100% of the completed insurable value of the Project, including materials to be acquired and installed within the public right-of-way. (viii) Commercial liability insurance, including coverage for personal injury, death, property damage and contractual liability, with a limit of at least One Million Dollars and Zero Cents ($1,000,000.00), including products and completed operations coverage. Said insurance shall be primary insurance with respect to any coverage maintained by City and the policy shall so provide. If required by City from time to time, the Contractor shall increase the limits of its liability insurance to reasonable amounts customary for contractors performing work similar to the work to be performed under this Agreement. (p)Insurance coverage required under this Agreement shall be on an "occurrence" basis and not be written on a "claims made" basis unless City provides prior written approval. If any of the insurance coverage required under this Agreement is written on a claims-made basis, such insurance policy shall provide an extended reporting period continuing through the period of time that Borrower continues to have the obligation to maintain the improvements. (q)Each policy of insurance maintained in satisfaction of the above insurance requirements, except workers compensation, shall be endorsed naming City and its officers, officials, agents, representatives, and employees as additional insureds, and shall provide that, except with respect to the coverage limits, insurance applies to each named and additional insured as though a separate policy were issued to each. Each policy shall provide for a waiver of subrogation as against City and its officers, officials, agents, representatives, and employees, and shall provide that the policy may not be cancelled, terminated or modified, except upon thirty (30) days' prior written notice to City. (r)Receipt of evidence of insurance that does not comply with the above requirements shall not constitute a waiver of the insurance requirements of this Agreement. (s)Borrower, the Contractor, and its subcontractors shall immediately obtain replacement coverage for any insurance policy that is terminated, canceled, non-renewed, or policy limits of which are exhausted, or upon insolvency of the insurer that issued the policy. (t)All insurance to be obtained and maintained under this Agreement shall be Packet Page.354 Attachment E - 6 55600.00203\43196937 .2 issued by a company or companies listed in the current "Best's Key Rating Guide, Property/Casualty" publication with a minimum Financial Strength Rating of at least A and a Financial Size Category designation of at least V, and shall be issued by a California admitted msurance company. (u)All insurance maintained in satisfaction of the requirements of this Agreement shall be primary to and not contributing to any other insurance maintained by the City. (v)Failure to maintain any insurance required by this Agreement in effect at all times shall be an Event of Default by Borrower. City, at its sole option, may exercise any remedy available to it in connection with such an Event of Default. Additionally, City may purchase such required insurance coverage and shall be entitled to immediate payment from Borrower for any premiums and associated costs paid by City for such insurance. Any election by City not to purchase insurance pursuant to this provision shall not relieve Borrower of its obligation to maintain and require the maintenance of the insurance policies coverage required by this Agreement. Section 6. Term of Agreement; Disposition of Unused Funds. This Agreement shall remain in effect for ten years following its execution by both parties, unless terminated sooner as provided for herein. Upon termination of this Agreement, and upon the recording of a Notice of Completion or Notice of Cessation for the Project, Borrower shall immediately return any unused Loan funds to City. Section 7.Occupancy Requirement; Loan Repayment/Acceleration. (d)The Loan must be evidenced by a promissory note (the "Note") secured by a deed of trust (the "Deed of Trust") on the Property. The provisions of the Note and Deed of Trust are incorporated herein by reference. (e)As specified in the Note and the Deed of Trust, Borrower agrees to occupy the Property as Borrower's principal residence for the term of this Agreement.,. In consideration, City agrees that as long as Borrower complies with this occupancy requirement, the Loan shall be forgiven at a rate of twenty percent of the principal amount of the loan each year, commencing on the sixth anniversary of the execution of the Note, with the full amount of the Loan forgiven on the tenth anniversary of the Note. m If Borrower at any time transfers all or any part of Borrower's interest in the Property, except an easement subject to prior written approval of City, the entire Loan balance, including accrued interest, then outstanding shall become immediately due and payable by Borrower to City. Section 8. Time of Essence. Time is strictly of the essence with respect to each and every term, condition, obligation, and provision hereof and failure to timely perform any of the terms, conditions, obligations, or provisions hereof by either party shall constitute a material breach of and a default under this Agreement by the party so failing to perform. Section 9. No Waiver. Delay or failure to exercise any right City may have or be entitled to, in the event of default by Borrower hereunder, shall not constitute a waiver of such Packet Page.355 Attachment E - 7 55600.00203\43196937 .2 right or any other right, in the event of a subsequent default by Borrower. Section 10. Events of Default. (e) Default. Failure or unexcused delay by either party to perform any material term or provision of this Agreement shall constitute a default hereunder; provided, however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct, or remedy the alleged default within thirty (30) calendar days after receipt of written notice specifying such default and diligently pursues such cure, correction, or remedy to completion, such party shall not be deemed to be in default hereunder. (ij Notice of Default. The party claiming that a default has occurred shall give written notice of default to the party claimed to be in default, specifying the alleged default. If Borrower consists of two or more natural persons, notice to one person constitutes notice to all persons identified in this Agreement. Delay in giving notice of default shall not constitute a waiver of any default nor shall it change the time of default; provided, however, that the party claiming default shall have no right to exercise any remedy for a default hereunder without delivering the written default notice as specified herein. (g)Rights and Remedies. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of City are cumulative and the exercise by City of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. Borrower's exclusive remedy for default of this Agreement is termination, and City will only disburse Loan funds for that portion of the work or materials provided that is properly supported by documentation requested by City and that has been fully and adequately completed and accepted by City as of or prior to the date of such termination. (h)Breach. In the event that a default of either party remains uncured for more than thirty (30) calendar days following written notice, as provided above, a "breach" shall be deemed to have occurred. In the event of a breach, the party who is not in default shall be entitled to terminate this Agreement by serving written notice of such termination on the other party. Obligations ofBorrower are joint and several as to each_(e.g. husband and wife, etc.). (c)Additional Rights and Remedies of City. Upon a default by Borrower: (i)City shall be released from any further obligations under this Agreement; provided, however, that the City shall not be released from its obligation to pay any amounts previously requested by Borrower for work performed or materials supplied under this Agreement, to which such default does not apply; and (n) City may seek any available legal or equitable relief. (d)Limitation of Remedies. Neither party shall be liable to the other for consequential or incidental damages. Section 11. Further Assurances.Borrower shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as City Packet Page.356 Attachment E - 8 55600.00203\43196937 .2 shall, from time-to-time, deem necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. Section 12. Governing Law; Compliance. (f)This Agreement shall be governed by the laws of the State of California and, to the extent applicable, by the laws and regulations relating to the HOME Program, including without limitation those contained in Part 92 of Title 24 of the Code of Federal Regulations. Borrower agrees to comply with all of said laws and regulations in the use of the Loan funds. (g)Borrower further agrees to comply with all ordinances, rules, and regulations of City for the use and disbursement of the Loan. Nothing in this Agreement is intended to be, nor shall it be deemed to be, a waiver of any City ordinance, rule, or regulation or other applicable provisions of state law. (h)Any legal action brought under this Agreement must be instituted in the Superior Court for the County of San Bernardino, San Bernardino District, State of California, or in the Federal District Court in the Central District of California. (i)Borrower shall retain, for at least five years after the expiration or termination of this Agreement, all records in the possession of Borrower relating to the Project or the use of the Loan funds. (j)Borrower agrees to cooperate fully with City as may be required to respond to an audit or other investigative activity initiated by any governmental agency including, without limitation, HUD. Section 13. Amendment. No modification, rescission, waiver, release, or amendment of any provision of this Agreement shall be made except by a written agreement executed by Borrower and City and duly approved by the governing body of City or its designee. Section 14. No Assignment by Borrower. Borrower may not assign or transfer any portion of the Loan or this Agreement, without the prior express written consent of City, which may be given or withheld at the sole discretion of City. Section 15. Notices. Any notices, requests, or approvals to be given under this Agreement from one party to another may be personally delivered, delivered by nationally recognized overnight delivery service, or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested, to the following addresses: To Borrower: To City: Packet Page.357 Attachment E - 9 55600.00203\43196937 .2 City of San Bernardino Attention: Community Development and Housing Department 290 North D Street San Bernardino, CA 92401 Communications delivered personally or by nationally recognized overnight delivery service shall be effective upon such delivery. Communications sent by United States Mail shall be effective on the third (3rd) business day following their deposit for mailing with the United States Postal Service. Either party may change its address for notice by giving written notice thereof to the other party. Section 16. Partial Invalidity. If any term or provision or portion of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, and the application of such term or provision or portion thereof to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby and shall be enforced to the fullest extent permitted by law. Section 17. No Intent to Create Third Party Beneficiaries. The parties intend that the rights and obligations under this Agreement shall benefit and burden only the parties hereto, and do not intend to create any rights in, or right of action to or for the use or benefit of any third party that is not one of the parties to this Agreement. Section 18. Entire Agreement. This Agreement is the final expression of, and contains the entire agreement between, the parties with respect to the subject matter hereof and supersedes all prior understandings with respect thereto. This Agreement may not be modified, changed, supplemented, or terminated, nor may any obligations hereunder be waived, except by written instrument signed by the party to be charged or by its agent duly authorized in writing or as otherwise expressly permitted herein. Section 19. Construction. Headings at the beginning of each Section are solely for the convenience of the parties and are not a part of this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and the masculine shall include the feminine and vice versa. This Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if both parties had prepared the same. Unless otherwise indicated, all references to Sections are to this Agreement. Section 20. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute a single instrument. [SIGNATURE PAGE FOLLOWS] Packet Page.358 55600.00203\43196937 .2 IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written next to the signatures of their duly authorized representatives, below. BORROWER Date: By: Date: By: CITY Date: By: ATTEST: By: APPROVED AS TO FORM AND LEGAL CONTENT: , City Attorney By: Attachment E - 10 Packet Page.359 55600.00203\43196937 .2 Attachment "F" to Master Agreement Form of Deed of Trust Attachment F Packet Page.360 Exhibit G - 1 55600.00203\43196937.2 ] ] ] ] Recording requested by and ] When recorded return to:] ] ] City of San Bernardino ] Economic Development & Housing Department ] 290 North D Street ] San Bernardino, CA 92401]] ] Attn: Director of Economic Development and ] Housing ] ] City of San Bernardino OWNER-OCCUPIED REHABILITATION PROGRAM DEED OF TRUST NOTICE TO BORROWER THIS DEED OF TRUST CONTAINS PROVISIONS RESTRICTING ASSUMPTIONS Loan No. This Deed of Trust is made on by as trustor (the "Borrower") and [ ], as trustee (the "Trustee"), whose business address is 290 North D Street, San Bernardino, CA 92401 in favor of the City of San Bernardino, as beneficiary ("Lender") whose address is 290 North D Street, San Bernardino, CA 92401, or Lender's assignee. 7.BORROWER, IN CONSIDERATION OF THE INDEBTEDNESS HEREIN RECITED AND THE TRUST HEREIN CREATED, HEREBY IRREVOCABLY GRANTS, TRANSFERS AND ASSIGNS to Trustee in trust, with power of sale and right of entry and possession, all of Borrower's right, title and interest now held or hereafter acquired in and to the following: (a) all of that certain real property (the "Property") located at , San Bernardino [zip code] in the County of San Bernardino, the State of California, which is more particularly described in Exhibit A (attached) which is incorporated herein by this reference; and (b) all buildings, improvements and fixtures now or hereafter erected thereon, and all appurtenances, easements, and articles of property now or hereafter affixed to, placed upon or used in connection with the Property, together with all additions to, substitutions for, changes in or replacements of the whole or any part of said articles of property; all of which are hereby pledged and assigned, transferred, and set over onto Trustee, and for purposes of this Deed of Trust declared to be part of the realty; provided, however, that furniture and other personal property of Borrower now or hereafter situated on said real property Packet Page.361 Exhibit G - 2 55600.00203\43196937.2 are not intended to be included as part of the Property. 8. FOR THE PURPOSE OF SECURING: 8.1.Repayment of the indebtedness evidenced by that certain Promissory Note of the Borrower dated , and designated as City of San Bernardino Owner Occupied Rehabilitation Program Loan No. (the "Note") of the Borrower in the principal amount of Dollars ($ ), and any and all amendments, modifications, extensions or renewals of the Note. The Note and this Deed of Trust are subject to the terms, conditions, and restrictions of the United States Department of Housing and Urban Development ("HUD") HOME Investment Partnership Program ("HOME") as set forth in the implementing guidelines and regulations adopted by HUD, including without limitation those set forth in Title 24 of the Code of Federal Regulations, all of which are hereby incorporated by reference. Concurrently herewith, Lender and Borrower have entered into a loan agreement (the "Loan Agreement") setting forth the terms of the loan secured hereby. 8.2.Payment of such additional sums: (a)As may hereafter be borrowed from Lender by the then-record owner of the Property and evidenced by a promissory note or notes reciting that it or they are so secured and all modifications, extensions, or renewals of the Note; and (b)As may be incurred, paid, or advanced by Lender, or as may otherwise be due to Trustee or Lender, under any provision of this Deed of Trust and any modification, extension, or renewal of this Deed of Trust; and (c)As may otherwise be paid or advanced by Lender to protect the security or priority of this Deed of Trust. 8.3.Performance of each obligation, covenant, and agreement of Borrower contained in the Loan Agreement, this Deed of Trust, the Note, or any other document executed by Borrower in connection with the loan(s) secured by this Deed of Trust, and all amendments to these documents whether set forth in this Deed of Trust or incorporated in this Deed of Trust by reference. 9. BORROWER COVENANTS: Borrower hereby covenants to maintain and protect the security of this Deed of Trust, to secure the full and timely performance by Borrower of each and every obligation, covenant, and agreement of Borrower under the Loan Agreement, the Note, and this Deed of Trust, and as additional consideration for the obligation(s) evidenced by the Note, Borrower covenants as follows: 9.1.Title. That Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property, and that Borrower will warrant and defend generally the title of the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of exemptions to coverage in any title insurance policy insuring Lender's interest in the Property. 9.2.Payment. That Borrower shall promptly pay, when due, the then outstanding balance of the Note, and such other charges as are provided in the Note, and such other amounts as are provided under this Deed of Trust. Packet Page.362 Exhibit G - 3 55600.00203\43196937.2 9.3.Maintenance of the Property. (a) To keep the Property in a decent, safe, sanitary, tenantable condition and repair and permit no waste thereof; (b) not to commit or suffer to be done or exist on or about the Property any condition causing the Property to become less valuable; (c) not to remove, demolish or structurally alter any buildings and improvements now or hereinafter located on the Property; (d) to repair, restore or rebuild promptly any buildings or improvements on the Property that may become damaged or be destroyed while subject to the lien of this Deed of Trust; (e) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; (f) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Lender's written consent; and (g) not to alter the use of all or any part of the Property without the prior written consent of the Lender. 9.4.Appear and Defend. Borrower shall appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of the Lender or Trustee; and shall pay all costs and expenses incurred by Lender or Trustee, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which the Lender or Trustee may appear, 9.5.Payment of Taxes and Utility Charges. Borrower shall pay: at least ten (10) days before delinquency, all taxes and assessments affecting the Property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, fines and impositions attributable to the Property, leasehold payments or ground rents, if any, and any interest on the Property or any part thereof; and all costs, fees and expenses of this Deed of Trust. Borrower shall make such payments when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this section, and Borrower shall promptly furnish to Lender receipts evidencing all such payments made. 9.6.Insurance. To keep the Property insured with loss payable to the Lender, against loss or damage by fire, flood, and any and all other damages, hazards, casualties and contingencies. Insurance policies shall provide coverage in the amount of the replacement cost of the Property. Borrower shall deliver the original of all such policies to the Lender, together with receipts satisfactory to the Lender evidencing payment of the premiums. All such policies shall provide that the Lender shall be given thirty (30) days advance written notice of the cancellation, expiration or termination of any such policy or any material change in the coverage afforded by it. Renewal policies and any replacement policies, together with premium receipts satisfactory to the Lender, shall be delivered to the Lender at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Lender shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses. All insurance proceeds for such losses must be utilized for the repair or restoration of the insured property. 9.7.Payments and Discharge of Liens. Borrower will pay, when due, all claims of every kind and nature which might or could become a lien on the Property or any part thereof; provided, however, that the following are excepted from this prohibition: (a) liens for taxes and assessments which are not delinquent but by law are given the status of a lien, and (b) such of the above claims as are, and only during the time they are, being contested by Borrower in good faith and by appropriate legal proceedings. Borrower shall post security for the payment of these contested claims as may be requested by the Lender. Borrower shall not default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is superior to this Deed of Trust. Packet Page.363 Exhibit G - 4 55600.00203\43196937.2 10.IT IS MUTUALLY AGREED THAT: 10.1.Future Advances. Upon request by Borrower, Lender, at Lender's option, may make future advances to Borrower. All such future advances shall be added to and become a part of the indebtedness secured by this Deed of Trust when evidenced by promissory note(s) reciting that such note(s) are secured by this Deed of Trust. 10.2.Disbursements to Protect Lender's Security. All sums disbursed by Lender to protect and preserve the Property, this Deed of Trust, or Lender's security for the performance of Borrower's obligations under the Note shall be and be deemed to be an indebtedness of Borrower to Lender secured by this Deed of Trust. 10.3.Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or decedent, foreclosure of any mortgage, deed of trust, or other lien secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Lender, at Lender's option, upon notice to Borrower, may make such appearance, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. Any amounts disbursed by Lender pursuant to this Section 4.3, with interest thereon, shall become additional indebtedness of Borrower to Lender secured by this Deed of Trust. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section 4.3 shall require Lender to incur any expense or take any action hereunder. 10.4.Inspection. Lender or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to any such inspection specifying reasonable cause for the inspection. 10.5.Awards and Damages. All judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, or (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Lender. The Lender is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Lender shall determine at its option. The Lender shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Lender may be released to Borrower upon such conditions as the Lender may impose for its disposition. Application of all or any part of the amounts collected and received by the Lender or the release thereof shall not cure or waive any default under this Deed of Trust. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within thirty (30) days after the date such notice is mailed, Lender is authorized to collect and apply the proceeds, at Lender's option, either to restoration or repair of the Property or to the sum secured by this Deed of Trust. Packet Page.364 Exhibit G - 5 55600.00203\43196937.2 10.6.Prohibition on Transfers oflnterest. If all or any part of the Property or an interest therein is sold or transferred by Borrower without Lender's prior written consent, Lender may, at Lender's option, declare all the sums secured by this Deed of Trust to be immediately due and payable. If Lender exercises such option to accelerate, Lender shall mail Borrower notice of acceleration in accordance with Section 6.9 hereof. Such notice shall provide a period of not less than 30 days from the date the notice is mailed within which Borrower may pay the sums declared due. If Borrower fails to pay such sums prior to the expiration of such period, Lender may, without further notice or demand on Borrower, invoke any remedies permitted by Section 5.2(a) hereof. 10.7.Sale or Forbearance. No sale of the Property, forbearances on the part of Lender or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Borrower either in whole or in part. 10.8.Lender's Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) Lender may, at its sole discretion, (I) release any person now or hereafter liable for payment of any or all such indebtedness. (II) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (III) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of Lender, may reconvey all or any part of the Property, consent to the making of any map or plot thereof, join in granting any assessment thereon, or join in any such agreement of extension or subordination. 10.9.Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Deed of Trust and all notes evidencing indebtedness secured by this Deed of Trust to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. 10.10.Requirement of Owner-occupancy and Permitted Transfers. Borrower shall occupy the Property as Borrower's principal place of residence during the term of the Note, except as may otherwise be expressly agreed upon by Lender in writing. 11.EVENTS OF DEFAULT 11.1.Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust (a) failure of the Borrower to pay the indebtedness secured hereby or any installment thereof when and as the same becomes due and payable, whether at maturity or by acceleration or otherwise; or (b) failure of Borrower to observe or to perform any covenant condition or agreement to be observed or performed by Borrower pursuant to the Note or this Deed of Trust, including but not limited to the provision requiring occupancy of the Property by Borrower; or (c) the occurrence of any event which, under the terms of the Note, shall entitle the Lender to exercise the rights or remedies thereunder; or (d) the occurrence of any event which, under the terms of any senior note or deed of trust, shall entitle the Lender to exercise the rights or remedies thereunder. 11.2.Acceleration and Sale. (a)Acceleration. Upon Borrower's breach of any covenant or agreement of Borrower in this Deed Packet Page.365 Exhibit G - 6 55600.00203\43196937.2 of Trust, including the covenants to pay when due any sums secured by this Deed of Trust, or upon Borrower's failure to make any payment or to perform any of its obligations, covenants and agreements pursuant to the Note, Lender may at Lender's option mail notice to Borrower as provided in Section 6.9 hereof specifying: (1) the breach; (2) the action required to cure such breach; (3) a date, no less than 30 days from the date the notice is mailed to Borrower, by which such breach must be cured; and (4) that failure to cure such breach on or before the date specified in the notice may result in acceleration of the sums secured by this Deed of Trust and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Borrower to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Lender at Lender's option may declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect from the Borrower, or sale proceeds, if any, all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, except that Lender and Borrower shall each bear their own attorney fees. (b)Borrower's Right to Reinstate. Notwithstanding Lender's acceleration of the sums secured by this Deed of Trust, Borrower will have the right to have any proceedings begun by Lender to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (1) Borrower pays Lender all sums which would be then due under this Deed of Trust and the Note, had no acceleration occurred; (2) Borrower pays all reasonable expenses incurred by Lender and Trustee in enforcing the covenants and agreements of Borrower contained in this Deed of Trust, except attorney fees; and (3) Borrower takes such action as Lender may reasonably require to assure that the lien of this Deed of Trust, Lender's interest in the Property and Borrower's obligation to pay the sums secured by this Deed of Trust will continue unimpaired. Upon such payment and cure by Borrower, this Deed of Trust and the obligations secured hereby shall remain in full force and effect as if no acceleration had occurred . (c)Sale. After delivery to Trustee of a Notice of Default and Demand for Sale, and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Borrower, Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Borrower, Trustee or the Lender, may purchase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee and of this Deed of Trust, Trustee shall apply the proceeds of sale to the payment of the principal indebtedness hereby secured, whether evidenced by the Note or otherwise, or representing advances made or costs or expenses paid or incurred by the Lender under this Deed of Trust, or the secured obligations or any other instrument evidencing or securing any indebtedness hereby secured, and to the payment of all other sums then secured thereby, in such order as the Lender shall direct; and the remainder, if any, shall be paid to the person or persons legally entitled thereto. (d)Assignment of Rents; Appointment of Receiver; Lender in Possession. Upon acceleration under paragraph (a) of Section 5.2 hereof or abandonment of the Property, Lender (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by Lender or the receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, Packet Page.366 Exhibit G - 7 55600.00203\43196937.2 but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorney's fees, and then to the sums secured by this Deed of Trust. Lender and the receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and paragraph (a) of Section 5.2 shall operate subject to the rights of prior lien holders. 11.3.Exercise of Remedies; Delay. No exercise of any right or remedy by the Lender or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay by the Lender or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof during the continuance of any default hereunder. 11.4.Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Lender, to be exercised at any time hereafter, without specifying any reason therefor, by filing for record in the office where this Deed of Trust is recorded a substitution of trustee, and said power of substitution of trustee or trustees may be exercised as often as and whenever the Lender deems advisable. The exercise of said power of substitution of trustee, no matter how often, shall not be deemed an exhaustion thereof, and upon recording of such substitution of trustee, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with like effect as if originally named as trustee or as one of the trustees . 11.5.Remedies Cumulative. No remedy herein contained or conferred upon the Lender or Trustee is intended to be exclusive of any other remedy or remedies afforded by law or by the terms hereof to the Lender or Trustee. Each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity. 12.MISCELLANEOUS PROVISIONS 12.1.Successors, Assigns, Gender, Number. The covenants and agreements contained in this Deed of Trust shall bind, and the benefit and advantages under it shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders. 12.2.Headings. The headings contained in this Deed of Trust are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof. 12.3.Actions on Behalf of the Lender. Except as otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by the Lender is required or permitted under this Deed of Trust, such action shall be in writing. 12.4.Terms. The word "Lender" means the present Lender, or any future owner or holder, including pledgee, of the indebtedness secured hereby. 12.5.Obligations of Borrower. If more than one person has executed this Deed of Trust as "Borrower," the obligations of all such persons hereunder shall be joint and several. 12.6.Incorporation by Reference. The provisions of the Loan Agreement and the Note are incorporated by reference herein as though set out verbatim. Packet Page.367 Exhibit G - 8 55600.00203\43196937.2 12.7.Severability. If any provision of this Deed of Trust shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired. 12.8.Indemnification. Borrower shall indemnify and hold the Lender, its officers and agents harmless against any and all losses, claims, demands, penalties and liabilities which the Lender, its officers or agents may sustain or suffer by reason of anything done or omitted pursuant to or in connection with this Deed of Trust. Borrower shall not assert any claim against the Lender, its officers or agents by reason of any action so taken or omitted. Borrower shall, at Borrower's expense, defend, indemnify, save and hold the Lender, its officers and agents harmless from any and all claims, demands, losses, expenses, damages (general, punitive or otherwise), causes of action (whether legal or equitable in nature) asserted by any person, firm, corporation or other entity arising out of this Deed of Trust and Borrower shall pay the Lender upon demand all claims, judgments, damages, losses or expenses (including reasonable legal expense) incurred by the Lender as a result of any legal action arising out of this Deed of Trust. 12.9.Notice. Except for any notice required under applicable law to be given in another manner (a) any notice to Borrower provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property address or any other address Borrower designates by notice to Lender as provided herein; and, (b) any notice to Lender shall be given by certified mail, return receipt requested, to Lender's mailing address stated above herein or to such other address as Lender may designate by notice to Borrower as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Borrower or Lender when received after mailing in the manner designated herein. 12.10.Beneficiary Statement. Lender may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount provided for in Section 2943 of the Civil Code of California. 12.11.Use of Property. Borrower shall not permit or suffer the use of any of the Property for any purpose other than as a single family residential dwelling. IN WITNESS WHEREOF, Borrower has executed this Deed of Trust on the day and year set forth above. By signing below, Borrower agrees to the terms and conditions as set forth above. MAILING ADDRESS FOR NOTICES:SIGNATURE OF BORROWER(s): (Street)(Borrower Name(s)) San Bernardino CA (City) (State) (Zip) Packet Page.368 Packet Page.369 Packet Page.370 Packet Page.371 Packet Page.372 Packet Page.373 Packet Page.374 Packet Page.375 Packet Page.376 Packet Page.377 Packet Page.378 Packet Page.379 Packet Page.380 Packet Page.381 Packet Page.382 Packet Page.383 Packet Page.384 Packet Page.385 Packet Page.386 Packet Page.387 Packet Page.388 Packet Page.389 Packet Page.390 Packet Page.391 Packet Page.392 Packet Page.393 Packet Page.394 Packet Page.395 Packet Page.396 Packet Page.397 Packet Page.398 Packet Page.399 Packet Page.400 Packet Page.401 Packet Page.402 Packet Page.403 Packet Page.404 Packet Page.405 Packet Page.406 Packet Page.407 Packet Page.408 Packet Page.409 Packet Page.410 Packet Page.411 Packet Page.412 Packet Page.413 Packet Page.414 Packet Page.415 Packet Page.416 Packet Page.417 Packet Page.418 Packet Page.419 Packet Page.420 Packet Page.421 Packet Page.422 Packet Page.423 Packet Page.424 Packet Page.425 Packet Page.426 Packet Page.427 Packet Page.428 Packet Page.429 Packet Page.430 Packet Page.431 Packet Page.432 Packet Page.433 Packet Page.434 Packet Page.435 Packet Page.436 Packet Page.437 Packet Page.438 Packet Page.439 Packet Page.440 Packet Page.441 Packet Page.442 Packet Page.443 Packet Page.444 Packet Page.445 Packet Page.446 Packet Page.447 Packet Page.448 Packet Page.449 Packet Page.450 Packet Page.451 Packet Page.452 Packet Page.453 Packet Page.454 Packet Page.455 Packet Page.456 Packet Page.457 Packet Page.458 Packet Page.459 Packet Page.460 Packet Page.461 Packet Page.462 Packet Page.463 Packet Page.464 Packet Page.465 Packet Page.466 Packet Page.467 Packet Page.468 Packet Page.469 Packet Page.470 2 5 1 2 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Kenneth Chapa, Director of Economic Development Department:Economic Development Subject:Adoption of Ordinance No. MC-1646 (Annexation No. 47 - Dutch Bros) (Ward 3) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1646 amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2024-2025 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Executive Summary The recommended action is the final step of the annexation process for the proposed development into Community Facilities District (CFD) No. 2019-1 (Maintenance Services). The property owner has petitioned the City to annex into the City’s CFD to mitigate its impact for maintenance service of public facilities as a result of the new development. The Public Hearing was to be held on December 18, 2024, and continued to January 15, 2025, approving the annexation and conducted the first reading of the Ordinance. The special taxes will be levied annually to offset general fund expenditures related to maintenance of public improvements within and for the benefit of the development. Background On November 6, 2024, the Mayor and City Council adopted Resolution No. 2024-216, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. On December 18, 2024 the Public Hearing was to be held and was continued to Packet Page.471 2 5 1 2 January 15, 2025. The Mayor and City Council adopted Resolution No. 2025-003 calling an election to submit to be annexed to Community Facilities District No. 2019- 1 (Annexation No. 47) and adopted Resolution No. 2025-004 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 47). Discussion On January 15, 2025, Ordinance No. MC-1646 was introduced for first reading to the Mayor and City Council. The Ordinance is now being returned to the Mayor and City Council to be adopted. The Ordinance will become effective 30 days from the date of adoption. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No 4. Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact There is no fiscal impact to the City. All costs associated with annexation into the CFD have been borne by the Developer. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1646 amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2024-2025 to pay the annual costs of the maintenance and servicing of landscaping, lighting, streets, street sweeping, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Attachments Attachment 1 – Ordinance No. MC-1646 (Ordinance Levying Special Taxes) Attachment 2 – Exhibit A – Description of Services Attachment 3 – Exhibit B – Description of Territory Attachment 4 – Project Location Map Ward: Third Ward Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” Packet Page.472 2 5 1 2 July 17, 2019 Mayor and City Council adopted Resolution No. 2019- 178 establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 declaring election results for Community Facilities District No. 2019-1; and conducted the first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Mayor and City Council conducted the final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. November 6, 2024 Mayor and City Council adopted Resolution No. 2024- 216, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” December 18, 2024 Mayor and City Council continued the Public Hearing regarding CFD 2019-1 Annexation No. 47 to January 15, 2025. January 15, 2025 Mayor and City Council adopted Resolution No. 2025- 003 calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Annexation No. 47) and adopted Resolution No. 2025-004 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 47); and introduced Ordinance No. MC-1646 amending Ordinance No. MC-1522. Packet Page.473 Packet Page.474 Packet Page.475 Packet Page.476 Packet Page.477 Packet Page.478 Packet Page.479 Packet Page.480 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; C. Jeannie Fortune, Interim Director of Finance & Management Services Department:Finance & Management Services Subject:Review of Administrative Budget Transfers From October 1, 2024 Through December 31, 2024 (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and file all listed administrative budget transfers from October 1, 2024 through December 31, 2024. Executive Summary Finance & Management Services requests the Mayor and City Council to review and file department to department, administrative budget transfers made from October 1 through December 31, 2024 Background On May 4, 2022, the Mayor and City Council adopted Ordinance No. MC-1568 which amended Section 3.05.010 in the Municipal Code regarding budget transfers. Specifically, the amendment to the ordinance nullified the not-to-exceed amount of $25,000 per budget transfer; authorized the Director of Finance & Management Services to approve budget transfers within a department’s personnel budget into their operating budget; authorized the Director of Finance & Management Services to approve department to department budget transfers; established that budget transfers will not increase or decrease a department’s approved budget, nor will it increase or decrease the approved fund budget without council approval; and stated that any cumulative amount of more than $5,000 transferred between departments in a 12- month period must be reported to the Mayor and City Council during the regular Quarterly Report. Discussion Packet Page.481 Budget transfers are requests received by Finance & Management Services from departments to move funds from one account to another, after the adoption of the original budget. Transfers occur when a department needs to correct its originally adopted budget or move funds to accommodate a change in the department’s planned expenditures. When processing budget transfers, Finance & Management Services verifies that the transfer properly allocates resources based on the strategic objectives and goals set forth by the Mayor and City Council and reflects the priorities of the community. The table below provides the list of the administrative transfers that have been processed. Date of Transfer From To Amount 10/15/2024 City Manager’s Office Finance & Management Services $928,650.00 10/22/2024 City Manager’s Office Economic Development $151,130.65 11/5/2024 Community Development & Housing Economic Development $631,886.00 The transfer from the City Manager’s Office to Finance & Management Services reflects the reorganization of the Grants Division to operate under the Finance Department. The Grants Division consists of the Grants Division Manager, two Management Analysts, one Grant Writer, and two Grants Assistants. As part of this change, the budget previously allocated to the Grants Division within the City Manager’s Office is being transferred to Finance & Management Services to reflect the updated structure. The transfer from City Manager’s Office to Economic Development reallocates the budget for the Senior Management Analyst position. This adjustment stems from an executive decision made by the City Manager’s Office to realign organizational resources to support the goals and operations of the Economic Development Department. By moving the associated resources, this transfer ensures that the Senior Management Analyst’s responsibilities are properly aligned with the strategic priorities of the Economic Development Department and reflects the City Manager’s commitment to enhancing the department’s capacity to meet its objectives. The transfer from Community Development & Housing to Economic Development reallocates the budget for the Real Property Division. Initially, the Real Property Division’s budget was adopted under Community Development & Housing. However, with the departments now operating separately, the Real Property Division's budget must be shifted to Economic Development. The Real Property Division, which includes one Assessment District/Real Property Specialist and two Real Property Managers, will now fall under Economic Development. This transfer ensures the budget aligns with the updated organizational structure and reflects the division's new reporting framework. Packet Page.482 2021-2025 Strategic Targets and Goals Authorization of this file and receive item aligns with three of the adopted 2021-2025 Key Strategic Targets and Goals. Finance & Management Services reporting on departmental administrative budget transfers completed within the quarter that meet the requirements of the Mayor and City Council helps Improved Operational & Financial Capacity by effectively creating a framework for spending decisions. Administering budget transfers meets the Focused, Aligned Leadership and Unified Community goal by developing and implementing a community engagement plan where the community and staff actively adapt to ensure needs of the community are fulfilled. Improved Quality of Life is met by ensuring that service levels are funded proactively to integrate customer-service orientation and metrics into all City operations. Fiscal Impact There is no General Fund impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and file all listed administrative budget transfers from October 1, 2024 through December 31, 2024. Attachments 1. Ordinance MC-1568 Ward: All Wards Synopsis of Previous Council Actions: On November 6, 2024, Mayor and City Council received and filed two separate quarterly administrative budget transfer reports from April 1, 2024 through June 30, 2024 and July 1, 2024 through September 30, 2024. On August 7, 2024, Mayor and City Council received and filed a quarterly administrative budget transfer report from Jan 1, 2024 through March 31, 2024. On March 6, 2024, Mayor and City Council received and filed a quarterly administrative budget transfer report from July 1, 2023 through December 31, 2023. On July 19, 2023, Mayor and City Council received and filed a quarterly administrative budget transfer report from April 1, 2023 through June 30, 2023. Packet Page.483 On January 18, 2023, Mayor and City Council received and filed a quarterly administrative budget transfer report from July 1, 2022 through December 15, 2022. On August 17, 2022, Mayor and City Council received and filed a quarterly administrative budget transfer report from April 5, 2022 through June 30, 2022. On May 4, 2022 Mayor and City Council adopted Ordinance No. MC-1568, amending section 3.05 on the Municipal Code. On December 1, 2021 Mayor and City Council heard the FY 2021/22 1st Quarter Report; Adopted Resolution No. 2021-289 amending the City of San Bernardino’s FY 2021/22 Operating Budget; and introduced, read by title only, and waived further reading of Ordinance No. MC-1568, amending section 3.05 of the Municipal Code pertaining to budget transfers. Packet Page.484 Packet Page.485 Packet Page.486 Packet Page.487 Packet Page.488 Packet Page.489 2 4 3 2 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; C. Jeannie Fortune, Interim Director of Finance & Management Services Department:Finance & Management Services Subject:Approval of Commercial and Payroll Disbursements and Purchase Card Transactions for November 2024 (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 November 2024. Executive Summary This action is to approve the commercial and payroll disbursements. This is regular business of the Mayor and City Council ensuring that the City pays vendors, employees, and the retirement system timely, accurately and with full transparency for the community. 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: https://sbcity.org/city_hall/finance/warrant_register Packet Page.490 2 4 3 2 Discussion 2021-2025 Strategic Targets and Goals Approval of the noted check and EFT registers for commercial and payroll disbursements align with Key Target No. 1: Improved Operational & Financial Capacity 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 November 2024. Attachments Attachment 1 Payroll Summary Report for November 2024 Attachment 2 Commercial checks & Payroll Register #26 Attachment 3 Commercial checks & Payroll Register #27 Attachment 4 Commercial checks & Payroll Register #28 Attachment 5 Commercial checks & Payroll Register #29 Attachment 6 Commercial EFT Registers #1713-1717 Attachment 7 Commercial EFT Registers #1718-1724 Attachment 8 Commercial EFT Registers #1725-1729 Attachment 9 Purchasing Card Charges for November 2024 Ward: All Wards The following check registers are being presented for approval: November 7, 2024 2024/25 (Register #26)$1,273,582.87 November 14, 2024 2024/25 (Register #27)$1,969,231.75 November 21, 2024 2024/25 (Register #28)$5,407,183.17 November 27, 2024 2024/25 (Register #29)$20,520.00 Total commercial check demands:$8,670,517.79 The following Electronic Funds Transfer (EFT) registers presented for approval: Oct 24, 2024 - Oct 29, 2024 2024/25 (Register #1713-1717) $1,115,686.59 Nov 01, 2024 - Nov 14, 2024 2024/25 (Register #1718-1724) $23,879,654.55 Nov 25, 2024 - Nov 27, 2024 2024/25 (Register #1725-1729) $3,612,517.84 Total commercial EFT demands:$28,607,858.98 Purchasing Card Charges: November 2024 $54,170.00 Total Purchasing Card Charges:$54,170.00 Packet Page.491 2 4 3 2 Synopsis of Previous Council Actions: N/A Packet Page.492 Packet Page.493 Packet Page.494 Packet Page.495 Packet Page.496 Packet Page.497 Packet Page.498 Packet Page.499 Packet Page.500 Packet Page.501 Packet Page.502 Packet Page.503 Packet Page.504 Packet Page.505 Packet Page.506 Packet Page.507 Packet Page.508 Packet Page.509 Packet Page.510 Packet Page.511 Packet Page.512 Packet Page.513 Packet Page.514 Packet Page.515 Packet Page.516 Packet Page.517 Packet Page.518 Packet Page.519 Packet Page.520 Packet Page.521 Packet Page.522 Packet Page.523 Packet Page.524 Packet Page.525 Packet Page.526 Packet Page.527 Packet Page.528 Packet Page.529 Packet Page.530 Packet Page.531 Packet Page.532 Packet Page.533 Packet Page.534 Packet Page.535 Packet Page.536 Packet Page.537 Packet Page.538 Packet Page.539 Packet Page.540 Packet Page.541 Packet Page.542 Packet Page.543 Packet Page.544 Packet Page.545 Packet Page.546 Packet Page.547 Packet Page.548 Packet Page.549 Packet Page.550 Packet Page.551 Packet Page.552 Packet Page.553 Packet Page.554 Packet Page.555 Packet Page.556 Packet Page.557 Packet Page.558 Packet Page.559 Packet Page.560 Packet Page.561 Packet Page.562 Packet Page.563 Packet Page.564 Packet Page.565 Packet Page.566 Packet Page.567 Packet Page.568 Packet Page.569 Packet Page.570 Packet Page.571 Packet Page.572 Packet Page.573 Packet Page.574 Packet Page.575 Packet Page.576 Packet Page.577 Packet Page.578 Packet Page.579 Packet Page.580 Packet Page.581 Packet Page.582 Packet Page.583 Packet Page.584 2 4 2 6 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; C. Jeannie Fortune, Interim Director of Finance & Management Services Department:Finance & Management Services Subject:Investment Portfolio Report for November 2024 (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 November 2024. Executive Summary This action is to approve the Investment Portfolio for the month of November 2024. This is regular business of the Mayor and City Council ensuring that City investments are in compliance with the Mayor and Council approved Investment Policy. 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. Section III, Chapter N of the City’s approved 2023-24 Investment Policy reads as follows, “The Director of Finance shall submit to the City Council, on a monthly basis, a report summarizing the individual transactions executed within the month.” 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. Packet Page.585 2 4 2 6 Discussion The Investment Portfolio Report provides a synopsis of investment activity for the City’s investment portfolio for the month ended November 30, 2024. 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. 2021-2025 Strategic Targets and Goals The acceptance and filing of the attached Investment Portfolio Report aligns with Key Target No. 1: Improved Operational & Financial Capacity 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 Portfolio Report for November 2024. Attachments Attachment 1 Investment Portfolio Management Summary Report, Nov 2024. Attachment 2 FY2023-24 Adopted Investment Policy Ward: All Wards Synopsis of Previous Council Actions: N/A Packet Page.586 Packet Page.587 Packet Page.588 Packet Page.589 Packet Page.590 Packet Page.591 Packet Page.592 Packet Page.593 Packet Page.594 Packet Page.595 Packet Page.596 Packet Page.597 Packet Page.598 Packet Page.599 Packet Page.600 Packet Page.601 Packet Page.602 Packet Page.603 Packet Page.604 Packet Page.605 Packet Page.606 Packet Page.607 Packet Page.608 Packet Page.609 Packet Page.610 Packet Page.611 Packet Page.612 Packet Page.613 Packet Page.614 Packet Page.615 Packet Page.616 Packet Page.617 2 5 8 3 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager C. Jeannie Fortune, Interim Director of Finance and Management Services Department:Finance & Management Services Department Subject:Resolutions updating the Bank and Investment Account Signature Authority (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, and the Mayor and City Council of the City of San Bernardino, California acting in its capacity as the Successor Agency to the former Redevelopment Agency of the City of San Bernardino adopt the attached Resolutions updating the City’s and Successor Agency’s bank and investment account signature authority. Executive Summary With the recent organizational changes in the City’s personnel and organizational structure, it is necessary to update the signature authority on all City and Successor Agency bank and investment accounts. Background The City and Successor Agency must update bank and investment account signature authorizations on file with the various financial institutions that hold City and Successor Agency funds as personnel and organizational changes occur. Discussion Most banking institutions require approval from the organizations’ governing body through the adoption of a resolution and/or minutes from the meeting showing adoption and approval. The City and Successor Agency have cash, investments, and other funds required to be held by fiscal agents in the following institutions: Packet Page.618 2 5 8 3 1. Wells Fargo Bank, City; 2. Wells Fargo Bank, Successor Agency; 3. U.S. Bank, City; 4. U.S. Bank, Successor Agency; 5. BNY (Bank of New York) Mellon, City; 6. BNY (Bank of New York) Mellon, Successor Agency; 7. Citizens Business Bank, Successor Agency; and 8. Local Agency Investment Fund (LAIF), City – this program offers local agencies to participate in a major portfolio through the State Treasurer’s Office. 9. Authorized Brokers or Dealers for the City and Successor Agency 10.Computershare Trust Company, City The resolutions listed above have been prepared for the various banking and investment accounts to implement the changes in signature authority. Following approval by the Mayor and City Council of the City of San Bernardino, California, and approval by the Mayor and City Council acting in its capacity as the Successor Agency to the former Redevelopment Agency of the City of San Bernardino, staff will forward all appropriate resolutions to each affected banking institutions. In addition, as stated in the City’s current Investment Policy, the Director of Finance is charged with responsibility of carrying out all investment actions, which may include day-to-day investment activities or the utilization of external investment advisor services to assist with the investment program. As such, in April 2021, the City authorized the services of the following broker/dealers to aid in day-to-day investment activities. Resolution (#9) has been prepared to authorize City designated personnel to carry out investment activities through the use of the following broker/dealers: i. Cantor Fitzgerald; ii. Higgins Capital Management; iii. Raymond James; iv. And Stifel. For consistency and transparency, City staff will be providing updated signing authority resolutions to City Council in July of each fiscal year for all the City’s banking institutions, in addition to any changes that may occur during the fiscal year. 2021-2025 Strategic Targets and Goals Approval of the aforementioned resolutions align with Key Target No. 1: Financial Stability by ensuring that the financial and administrative requirements to continue day- to-day operations in the Finance department are completed and kept up to date. Fiscal Impact There is no fiscal impact associated with adopting the attached Resolutions. Packet Page.619 2 5 8 3 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, and the Mayor and City Council of the City of San Bernardino, California acting in its capacity as the Successor Agency to the former Redevelopment Agency of the City of San Bernardino adopt the attached Resolutions updating the City’s and Successor Agency’s bank and investment account signature authority. Attachments 1. Attachment 1 – Resolution No. 2025-235 Wells Fargo Bank, City 2. Attachment 2 – Resolution No. 2025-236 Wells Fargo Bank, Successor Agency 3. Attachment 3 – Resolution No. 2025-237 U.S. Bank, City 4. Attachment 4 – Resolution No. 2025-238 U.S. Bank, Successor Agency 5. Attachment 5 – Resolution No. 2025-239 BNY (Bank of New York) Mellon, City 6. Attachment 6 – Resolution No. 2025-240 BNY (Bank of New York) Mellon, Successor Agency 7. Attachment 7 – Resolution No. 2025-241 Citizens Business Bank, Successor Agency 8. Attachment 8 – Resolution No. 2025-242 Local Agency Investment Fund (LAIF), City 9. Attachment 9 – Resolution No. 2025-243 Authorized Brokers or Dealers for the City and Successor Agency 10.Attachment 10 – Resolution No. 2025-244 Computershare Trust Company, City Ward: All Wards Synopsis of Previous Council Actions: 01-15-2025 City Council approved Bank signatories for Computershare Debt Trustee Services 06-05-2024 City Council approved Bank signatories of existing personnel at the time. 05-01-2024 City Council approved Bank signatories of existing personnel at the time. 11-01-2023 City Council approved Bank signatories of existing personnel at the time. Packet Page.620 Resolution No. 2025-235 Resolution 2025-235 February 19, 2025 Page 1 of 3 6 5 9 0 RESOLUTION NO. 2025-235 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR WELLS FARGO BANK ACCOUNTS WHEREAS, the City of San Bernardino is a municipal corporation established under the laws of the State of California; and WHEREAS, Wells Fargo Bank is a federally chartered bank under the laws of the United States; and WHEREAS, the City of San Bernardino needs to update its signatories periodically with Wells Fargo Bank due to changes in City staff or changes in staff duties and responsibilities; and WHEREAS, the City of San Bernardino designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on Wells Fargo Bank accounts; and WHEREAS, Wells Fargo Bank requires the City of San Bernardino to adopt a corporate resolution and authorization to designate authorized signers on bank accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the City of San Bernardino with Wells Fargo Bank are hereby revoked. SECTION 3. The authorized account signers on Wells Fargo Bank accounts are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Any two of the individuals named as authorized signers acting on behalf of the Successor Agency, are authorized to sign checks on behalf of the Agency. SECTION 6. That the Mayor and City Council of the City of San Bernardino finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is Packet Page.621 Resolution No. 2025-235 Resolution 2025-235 February 19, 2025 Page 2 of 3 6 5 9 0 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 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.622 Resolution No. 2025-235 Resolution 2025-235 February 19, 2025 Page 3 of 3 6 5 9 0 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. 2025-235, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ___ day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.623 Resolution No. 2025-236 Resolution 2025-236 February 19, 2025 Page 1 of 3 6 5 8 9 RESOLUTION NO. 2025-236 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR WELLS FARGO BANK ACCOUNTS FOR THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO WHEREAS, the Successor Agency to the former Redevelopment Agency of the City of San Bernardino (“Successor Agency”) is a public agency established under the laws of the State of California; and WHEREAS, Wells Fargo Bank is a federally chartered bank under the laws of the United States; and WHEREAS, the Successor Agency needs to update its signatories periodically with Wells Fargo Bank due to changes in Agency staff or changes in staff duties and responsibilities; and WHEREAS, the Board of Directors of the Successor Agency designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on Wells Fargo Bank accounts; and WHEREAS, Wells Fargo Bank requires the Successor Agency to adopt a corporate resolution and authorization to designate authorized signers on bank accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the Successor Agency with the Wells Fargo Bank are hereby revoked. SECTION 3. The authorized account signers on Wells Fargo Bank - Successor Agency’s accounts are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell Packet Page.624 Resolution No. 2025-236 Resolution 2025-236 February 19, 2025 Page 2 of 3 6 5 8 9 SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Any two of the individuals named as authorized signers acting on behalf of the Successor Agency, are authorized to sign checks on behalf of the Agency. SECTION 6. That the Mayor and City Council of the City of San Bernardino acting on behalf of the Successor Agency to the Former Redevelopment Agency of the City of San Bernardino 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 of the City of San Bernardino acting on behalf of the Successor Agency to the Former Redevelopment Agency of the City of San Bernardino and signed by the Mayor and attested by the City Clerk this 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.625 Resolution No. 2025-236 Resolution 2025-236 February 19, 2025 Page 3 of 3 6 5 8 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 Resolution No. 2025-236, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ____ day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.626 Resolution No. 2025-237 Resolution 2025-237 February 19, 2025 Page 1 of 3 6 5 8 8 RESOLUTION NO. 2025-237 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR U.S. BANK ACCOUNTS WHEREAS, the City of San Bernardino is a municipal corporation established under the laws of the State of California; and WHEREAS, U.S. Bank is a federally chartered bank under the laws of the United States; and WHEREAS, the City of San Bernardino needs to update its signatories periodically with U. S. Bank due to changes in City staff or changes in staff duties and responsibilities; and WHEREAS, the City of San Bernardino designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on U.S. Bank accounts; and WHEREAS, U.S. Bank requires the City of San Bernardino to adopt a corporate resolution and authorization to designate authorized signers on bank accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the City of San Bernardino with U.S. Bank are hereby revoked. SECTION 3. The authorized account signers on U.S. Bank accounts are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Any two of the individuals named as authorized signers acting on behalf of the Successor Agency, are authorized to sign checks on behalf of the Agency. SECTION 6. That the Mayor and City Council of the City of San Bernardino 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 Packet Page.627 Resolution No. 2025-237 Resolution 2025-237 February 19, 2025 Page 2 of 3 6 5 8 8 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 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.628 Resolution No. 2025-237 Resolution 2025-237 February 19, 2025 Page 3 of 3 6 5 8 8 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. 2025-237, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ___ day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.629 Resolution No. 2025-238 Resolution 2025-238 February 19, 2025 Page 1 of 3 6 5 9 1 RESOLUTION NO. 2025-238 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR U.S. BANK ACCOUNTS FOR THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO WHEREAS, the Successor Agency to the former Redevelopment Agency of the City of San Bernardino (“Successor Agency”) is a public agency established under the laws of the State of California; and WHEREAS, U.S. Bank is a federally chartered banks under the laws of the United States; and WHEREAS, the Successor Agency needs to update its signatories periodically with U. S. Bank due to changes in Agency staff or changes in staff duties and responsibilities; and WHEREAS, the Board of Directors of the Successor Agency designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on U.S. Bank accounts; and WHEREAS, U.S. Bank requires the Successor Agency to adopt a corporate resolution and authorization to designate authorized signers on bank accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the Successor Agency with U.S. Bank are hereby revoked. SECTION 3. The authorized account signers on U.S. Bank - Successor Agency’s accounts are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell Packet Page.630 Resolution No. 2025-238 Resolution 2025-238 February 19, 2025 Page 2 of 3 6 5 9 1 SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Any two of the individuals named as authorized signers acting on behalf of the Successor Agency, are authorized to sign checks on behalf of the Agency. SECTION 6. That the Mayor and City Council of the City of San Bernardino acting on behalf of the Successor Agency to the Former Redevelopment Agency of the City of San Bernardino 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 of the City of San Bernardino acting on behalf of the Successor Agency to the Former Redevelopment Agency of the City of San Bernardino and signed by the Mayor and attested by the City Clerk this 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.631 Resolution No. 2025-238 Resolution 2025-238 February 19, 2025 Page 3 of 3 6 5 9 1 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2025-238, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ____ day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.632 Resolution No. 2025-239 Resolution 2025-239 February 19, 2025 Page 1 of 3 6 5 9 2 RESOLUTION NO. 2025-239 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR BANK OF NEW YORK (BNY) MELLON BANK ACCOUNTS WHEREAS, the City of San Bernardino is a municipal corporation established under the laws of the State of California; and WHEREAS, BNY Mellon Bank is a federally chartered bank under the laws of the United States; and WHEREAS, the City of San Bernardino needs to update its signatories periodically with BNY Mellon Bank due to changes in City staff or changes in staff duties and responsibilities; and WHEREAS, the City of San Bernardino designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on BNY Mellon Bank accounts; and WHEREAS, BNY Mellon Bank requires the City of San Bernardino to adopt a corporate resolution and authorization to designate authorized signers on bank accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the City of San Bernardino with BNY Mellon Bank are hereby revoked. SECTION 3. The authorized account signers on BNY Mellon Bank accounts are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Any two of the individuals named as authorized signers acting on behalf of the Successor Agency, are authorized to sign checks on behalf of the Agency. SECTION 6. That the Mayor and City Council of the City of San Bernardino finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is Packet Page.633 Resolution No. 2025-239 Resolution 2025-239 February 19, 2025 Page 2 of 3 6 5 9 2 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 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.634 Resolution No. 2025-239 Resolution 2025-239 February 19, 2025 Page 3 of 3 6 5 9 2 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. 2025-239, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ___ day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.635 Resolution No. 2025-240 Resolution 2025-240 February 19, 2025 Page 1 of 3 6 5 9 3 RESOLUTION NO. 2025-240 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR BANK OF NEW YORK (BNY) MELLON BANK ACCOUNTS FOR THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO WHEREAS, the Successor Agency to the former Redevelopment Agency of the City of San Bernardino (“Successor Agency”) is a public agency established under the laws of the State of California; and WHEREAS, BNY Mellon is a federally chartered bank under the laws of the United States; and WHEREAS, the Successor Agency needs to update its signatories periodically with BNY Mellon due to changes in Agency staff or changes in staff duties and responsibilities; and WHEREAS, the Board of Directors of the Successor Agency designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on BNY Mellon’s bank accounts; and WHEREAS, BNY Mellon requires the Successor Agency to adopt a corporate resolution and authorization to designate authorized signers on bank accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the Successor Agency with BNY Mellon Bank are hereby revoked. SECTION 3. The authorized account signers on BNY Mellon - Successor Agency’s accounts are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell Packet Page.636 Resolution No. 2025-240 Resolution 2025-240 February 19, 2025 Page 2 of 3 6 5 9 3 SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Any two of the individuals named as authorized signers acting on behalf of the Successor Agency, are authorized to sign checks on behalf of the Agency. SECTION 6. That the Mayor and City Council of the City of San Bernardino acting on behalf of the Successor Agency to the Former Redevelopment Agency of the City of San Bernardino 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 acting on behalf of the Successor Agency to the Former Redevelopment Agency of the City of San Bernardino and signed by the Mayor and attested by the City Clerk this 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.637 Resolution No. 2025-240 Resolution 2025-240 February 19, 2025 Page 3 of 3 6 5 9 3 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. 2025-240, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ___ day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.638 Resolution No. 2025-241 Resolution 2025-241 February 19, 2025 Page 1 of 3 6 5 9 4 RESOLUTION NO. 2025-241 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR CITIZENS BUSINESS BANK ACCOUNTS FOR THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO WHEREAS, the Successor Agency to the former Redevelopment Agency of the City of San Bernardino (“Successor Agency”) is a public agency established under the laws of the State of California; and WHEREAS, Citizens Business Bank is a federally chartered bank under the laws of the United States; and WHEREAS, the Successor Agency needs to update its signatories periodically with Citizens Business Bank due to changes in Agency staff or changes in staff duties and responsibilities; and WHEREAS, the Board of Directors of the Successor Agency designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on Citizens Business Bank accounts; and WHEREAS, Citizens Business Bank requires the Successor Agency to adopt a corporate resolution and authorization to designate authorized signers on bank accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the Successor Agency with Citizens Business Bank are hereby revoked. SECTION 3. The authorized account signers on Citizens Business Bank - Successor Agency’s accounts are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell Packet Page.639 Resolution No. 2025-241 Resolution 2025-241 February 19, 2025 Page 2 of 3 6 5 9 4 SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Any two of the individuals named as authorized signers acting on behalf of the Successor Agency, are authorized to sign checks on behalf of the Agency. SECTION 6. That the Mayor and City Council of the City of San Bernardino acting on behalf of the Successor Agency to the Former Redevelopment Agency of the City of San Bernardino 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 of the City of San Bernardino acting on behalf of the Successor Agency to the Former Redevelopment Agency of the City of San Bernardino and signed by the Mayor and attested by the City Clerk this 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.640 Resolution No. 2025-241 Resolution 2025-241 February 19, 2025 Page 3 of 3 6 5 9 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 Resolution No. 2025-241, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ___ day of February. 2025. Genoveva Rocha, CMC, City Clerk Packet Page.641 Resolution No. 2025- Resolution 2025- February 19, 2025 Page 1 of 3 RESOLUTION NO. 2025-XXX RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR THE LOCAL AGENCY INVESTMENT FUND (LAIF) BANK ACCOUNTS WHEREAS, the City of San Bernardino is a municipal corporation established under the laws of the State of California; and WHEREAS, the Local Agency investment Funds (LAIF) was established by Chapter 730, Statutes of 1976. This fund enables local government agencies or trustees to remit surplus funds, not needed for immediate expenditures, to the State Treasurer for the purpose of investment on behalf of the City. The State Treasurer will invest such funds as part of a pooled money investment account I order to derive the maximum rate of return possible; and WHEREAS, the Local Agency investment Funds (LAIF) is an authorized investment under the City’s investment policy and under Government Code Section 53600; and WHEREAS, the City of San Bernardino needs to update its signatories periodically with LAIF due to changes in City staff or changes in staff duties and responsibilities; and WHEREAS, the City of San Bernardino designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on LAIF accounts; and WHEREAS, authorized signers will have the authority to deposit and withdraw funds with LAIF on behalf of the City; and WHEREAS, deposits may only come from, and withdrawals may only be made by designated authorized signers on the account. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the City of San Bernardino with the Local Investment Agency Fund are hereby revoked. SECTION 3. The authorized account signers on LAIF accounts are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell Packet Page.642 Resolution No. 2025- Resolution 2025- February 19, 2025 Page 2 of 3 SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Interest payments, withdrawals, and matured investments may only be transferred to an account of the City or paid by written demand to the City. SECTION 6. That the Mayor and City Council of the City of San Bernardino 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 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.643 Resolution No. 2025- Resolution 2025- February 19, 2025 Page 3 of 3 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. 2025-___, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this 19th day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.644 Resolution No. 2025-243 Resolution 2025-243 February 19, 2025 Page 1 of 3 6 5 9 6 RESOLUTION NO. 2025-243 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR THE BROKER/DEALER ACCOUNTS WHEREAS, the City of San Bernardino is a municipal corporation established under the laws of the State of California; and WHEREAS, the following firms are approved broker/dealers registered with the U.S. Securities and Exchange Commission: (a) Cantor Fitzgerald; (b) Higgins Capital Management; (c) Raymond James Financial Services, Inc.; (d) Stifel; and WHEREAS, the City of San Bernardino needs to update its signatories periodically with the brokers/dealers above due to changes in City staff or changes in staff duties and responsibilities; and WHEREAS, the City of San Bernardino designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers on the above broker/dealer accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the City of San Bernardino with the following broker/dealers (a) Cantor Fitzgerald; (b) Higgins Capital Management; (c) Raymond James Financial Services, Inc.; (d) Stifel are hereby revoked. SECTION 3. The authorized account signers are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Director of Human Resources Andrea Russell SECTION 4. Any one of the individuals named as an authorized signer acting on behalf of the Successor Agency, is authorized to execute documents on behalf of the Agency. SECTION 5. Interest payments, withdrawals, and matured investments may only be transferred to an account of the City or paid by written demand to the City. SECTION 6. That the Mayor and City Council of the City of San Bernardino finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is Packet Page.645 Resolution No. 2025-243 Resolution 2025-243 February 19, 2025 Page 2 of 3 6 5 9 6 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 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.646 Resolution No. 2025-243 Resolution 2025-243 February 19, 2025 Page 3 of 3 6 5 9 6 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. 2025-243, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ___ day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.647 Resolution No. 2025-244 Resolution 2025-244 February 19, 2025 Page 1 of 3 6 5 9 7 RESOLUTION NO. 2025-244 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AUTHORIZING SIGNATORIES FOR COMPUTERSHARE TRUST COMPANY DEBT TRUSTEE SERVICES WHEREAS, the City of San Bernardino is a municipal corporation established under the laws of the State of California; and WHEREAS, Wells Fargo Bank entered into a definitive agreement with Computershare Trust Company, National Association (“Computershare Trust Company”), Computershare Delaware Trust Company, National Association and Computershare Limited (collectively, “Computershare”) to sell substantially all of its Corporate Trust Services (“CTS”) business. The sale to Computershare, and virtually all CTS employees of Wells Fargo Bank, along with most existing CTS systems, technology, and offices transferred to Computershare as part of the sale; and WHEREAS, The City pays its debt service obligation bonds for: Pension Obligation bond 2020 Series, and San Bernardino Development Authority HUD Section 108 Loan through Computershare; and WHEREAS, the City of San Bernardino has added Computershare Trust Company to the list of institutions that require authorized signatures and will need to update its signatories periodically with Computershare due to changes in City staff or changes in staff duties and responsibilities; and WHEREAS, the City of San Bernardino designates the Acting City Manager, Interim Director of Finance and Management Services, and Director of Human Resources as authorized signers for Computershare debt trustee services; and WHEREAS, Computershare Trust Company requires the City of San Bernardino to adopt a corporate resolution and authorization to designate authorized signers on bank accounts. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The foregoing recitals are true and correct and are a substantive part of this Resolution. SECTION 2. All previous resolutions of designated, authorized signers, if any, for the City of San Bernardino with Computershare Trust Company are hereby revoked. SECTION 3. The authorized account signers on Computershare Trust Company debt trustee services are as follows: Position Individual Name Acting City Manager Tanya Romo Interim Director of Finance and Management Services Cynthia Jeannie Abano Fortune Packet Page.648 Resolution No. 2025-244 Resolution 2025-244 February 19, 2025 Page 2 of 3 6 5 9 7 Director of Human Resources Andrea Russell SECTION 4. Interest payments, withdrawals, and matured investments may only be transferred to an account of the City or paid by written demand to the City SECTION 5. That the Mayor and City Council of the City of San Bernardino 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 19th day of February, 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.649 Resolution No. 2025-244 Resolution 2025-244 February 19, 2025 Page 3 of 3 6 5 9 7 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. 2025-244, adopted at a regular meeting held on the 19th day of February, 2025 by the following vote: Council Members:AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT KNAUS FLORES ORTIZ WITNESS my hand and official seal of the City of San Bernardino this ___ day of February, 2025. Genoveva Rocha, CMC, City Clerk Packet Page.650 1 6 5 4 Consent Calendar City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Lynn Merrill, Director of Public Works Department:Public Works Subject:Award of Task Order with Rick Engineering for a Raised Median Installation on Rialto Ave at Metrolink Railroad Crossing in the amount of $59,590 (Ward 3 & 6) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the award of a Task Order with Rick Engineering in the amount of $59,590 for the Raised Median Installation on Rialto Ave at Metrolink Railroad Crossing (Project); and 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $5,959. 3. Authorize the City Manager or designee to execute all documents with Rick Engineering; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Executive Summary Awarding the Task Order for the Raised Median Installation on Rialto Ave at the Metrolink Railroad Crossings will help prevent vehicles from making illegal maneuvers to bypass incoming Metrolink trains. The Task Order will authorize the City to issue a Notice to Proceed with Rick Engineering, allowing the design process to begin. This Task Order is being issued through an existing pre-approved on-call firm list, and the design services will be funded by Measure S. Packet Page.651 1 6 5 4 Background Metrolink has reported multiple collisions between trains and automobiles traveling on Rialto Avenue at the Metrolink crossing between Meridian Avenue and Macy Street. This concerning trend has prompted a call for action to improve safety at the crossing. There is an existing agreement between the City of San Bernardino and Metrolink, which outlines that any public right-of-way issues related to the railroad crossing are the responsibility of the City. In response to these safety concerns, Metrolink, with the support of the California Public Utilities Commission (CPUC), has urged the City to take immediate steps to make necessary improvements. One proposed solution is the installation of a raised median at the crossing, which will help improve safety by controlling vehicle movements and reducing the risk of illegal maneuvers made by vehicles at this location. On June 5, 2024, the City Council held a public hearing to present the City Manager's proposed budgets for Fiscal Year 2024/25 and Fiscal Year 2025/26. The continuation of this hearing on June 26, 2024, allowed for further discussion and provided an opportunity for the Council to review and approve the City Manager's FY 2025 Operating Budget, as well as the Capital Improvement Plan (CIP) for 2025- 2029. However, a one-year budget for FY 2024/25 was adopted at this time. Funding for the Project was established with $70,000 allocated for FY 2024/25 in Measure S. Staff recommends implementing a raised median at this railroad crossing to meet the current standards for Metrolink/ Southern California Regional Rail Authority and the CPUC. With this implementation, Staff intends to enhance vehicle shielding by controlling movements and fortifying the travel path for vehicles versus trains. The raised median will help prevent vehicles from making illegal maneuvers, such as crossing the centerline to go around the railroad gate arms and will provide clearer separation between traffic lanes. Discussion This project aims to eliminate conflicts between trains and automobiles at the Metrolink Railroad Crossing on Rialto Ave. The consultant will assist the City in evaluating the feasibility of the raised median design, analyzing the appropriate materials and construction methods, and addressing other initial planning considerations and coordinating approval and permitting from Metrolink. City staff has provided the consultant key aspects of the median design that are most critical to address within the current project budget. The consultant will help develop plans, specifications, and estimates that can be advertised within the available budget. Staff utilized the On-Call Consultant Services list, approved by the Mayor and City Council on November 16, 2022, to solicit proposals for the Rialto Median project at the Metrolink crossing. A design proposal was sent to six qualified firms from the list, and two firms responded with their proposals. Willdan Engineering notified staff Packet Page.652 1 6 5 4 that they were currently unable to take on the railroad median design at this time and declined to bid. The received proposals were carefully reviewed to assess each firm's qualifications, experience, and approach to the project, ensuring that the selected consultant can provide the most effective design for the crossing improvement. Proposals City Fee Willdan Engineering Industry, CA Decline to Bid TKE Consultants Riverside, CA $73,175.00 Rick Engineering Riverside, CA $59,590.00 The two received proposals were evaluated, and Staff recommends the Mayor and City Council approve a Task Order in the amount of $59,590 with Rick Engineering of Riverside, CA for Design Services for this Project. Staff also recommends that City Council approve a design contingency of $5,959, for a total agreement amount of $65,549. 2021-2025 Strategic Targets and Goals This project aligns with the City's Key Strategic Target and Goal No. 3: Improved Quality of Life, specifically section C, which focuses on evaluating and enhancing public safety services. By implementing a raised median at the Metrolink Railroad Crossing on Rialto Avenue, the City aims to eliminate conflicts between trains and vehicles, improving traffic flow through the crossing on this segment of the roadway. Fiscal Impact The cost of this design services totals to $65,549.00 will be funded through Measure S, as allocated in the FY 2024/25 Capital Improvement Plan (CIP) budget. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the award of a Task Order with Rick Engineering in the amount of $59,590 for the Raised Median Installation on Rialto Ave at Metrolink Railroad Crossing (Project); and 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $65,549. Budget Task Order with Rick Engineering $59,590.00 Design Contingency $5,959.00 Total Agreement $65,549.00 Packet Page.653 1 6 5 4 3. Authorize the City Manager or designee to execute all documents with Rick Engineering; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Task Order to Rick Engineering Attachment 2 Proposal from Rick Engineering Attachment 3 Location Map Ward: Third and Sixth Ward Synopsis of Previous Council Actions: June 26, 2024 Continuation of June 5, 2024, Public Hearing: Presentation of the City Manager’s Proposed Fiscal Year 2024/25 & Fiscal year 2025/26 Budget and Approval of the City Manager’s FY 2025 & FY 2026 Operating Budget & CIP 2025-2029 (All Wards). Packet Page.654 1 EXHIBIT B TASK ORDER Task Order No. Rick Engineering 001 Agreement: Professional Services Agreement for On-Call Pre-Qualified Engineering Services Consultant: Rick Engineering The Consultant is hereby authorized to perform the following services subject to the provisions of the Agreement identified above: List any attachments: 1. Rick Engineering Proposal Dollar Amount of Task Order: Not to exceed $65,549.00 Completion Date: 08/06/2025 The undersigned Consultant hereby agrees that it will provide all equipment, furnish all materials, except as may be otherwise noted above, and perform all services for the work above specified in accordance with the Agreement identified above and will accept as full payment therefore the amount shown above. CITY OF SAN BERNARDINO Rick Engineering Dated:Dated: By:By: Rochelle Clayton Brian R. Stephenson Acting City Manager Associate Principal Packet Page.655 Packet Page.656 Packet Page.657 Packet Page.658 Packet Page.659 Packet Page.660 Packet Page.661 Packet Page.662 Packet Page.663 Packet Page.664 Packet Page.665 Packet Page.666 Packet Page.667 Packet Page.668 Packet Page.669 Packet Page.670 Packet Page.671 Packet Page.672 Packet Page.673 Packet Page.674 1 8 8 7 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Lynn Merrill, Director of Public Works Department:Public Works Subject:Recommendation to Increase the Project Budget for the Police Building Management System in the amount of $42,398.00 (Ward 1) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2025-246: 1. Authorizing the Director of Finance and Management Services to amend the FY 2024/25 CIP Budget with an additional $42,398.00 for the Police Building Management System Project using the Law Enforcement Facilities Fund balance; and 2. Authorizing the Director of Finance and Management Services to increase the construction contingency and construction management budget from $39,450.00 to the total amount of $43,304.00; and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Executive Summary: Approval of this Resolution 2025-246 to increase the project budget for the Police Building Management System Project would allow additional necessary work to replace and install HVAC components that were not included in the original scope. Specifically, it covers the replacement of seven Variable Air Volume (VAV) units, two Fan Power Boxes (FPB), and the installation of two manual valves to isolate reheat valves in the hot water system. These upgrades will ensure proper airflow, temperature regulation, and efficient operation of the HVAC system. The total cost of the budget increase is $42,392.00, which will allow the project to be completed and improve the overall functionality of the Police Department’s HVAC system. Packet Page.675 1 8 8 7 Background The existing HVAC control system for the Police Department Headquarters is obsolete and in need of replacement. The control system does not allow for efficient and effective use of the HVAC system due to limited functionality. Additionally, zone heating hot water valves need to be replaced. On June 1, 2022, the Mayor and City Council approved the Fiscal Year 2023 and Fiscal Year 2024 Operating Budget and the Capital Improvement Program (CIP) for 2023-2027. This budget included funding for various infrastructure projects, including necessary upgrades to the Police Department’s HVAC system. As part of the CIP, the HVAC Control System and Valve Replacement Project was identified as a critical improvement to ensure the continued efficient operation of the Police Department facility. The funding allocation allowed the project to move forward, providing the resources necessary for the replacement and upgrade of key HVAC components to meet operational and energy efficiency needs. On April 17, 2024, the City Council awarded the construction agreement for the Police Building Management System Project to Western Allied Corporation. This award authorized the contractor to proceed with the planned upgrades, including the installation of new control systems, valves, and necessary components to optimize the HVAC system. The scope of work approved by the Council focused on essential repairs and replacements to improve comfort, energy efficiency, and the overall functionality of the facility’s heating and cooling systems. This project is an important step in maintaining the Police Department’s infrastructure, and Resolution No. 2025-246 is now necessary to address additional work that was not part of the original scope. Discussion A change order is necessary to address critical additional work that was not included in the original scope of the Police Building Management System Project. The required upgrades to key HVAC components to ensure the system operates efficiently and meets the operational needs of the facility. The work outlined in the proposed change order includes the installation of new Variable Air Volume (VAV) units, Fan Power Boxes (FPB), and manual isolation valves, all of which are integral to improving the HVAC system’s performance and energy efficiency. The replacement of seven VAV units, which will require the safe-off and removal of existing ductwork, piping, and controls, as well as the rework of low-side ductwork to reconnect to the new units. Additionally, new ductwork will be insulated, and the control systems will be retested to ensure proper operation of the supply dampers, reheat systems, actuators, and valves. Retesting will also include verifying air temperature, space temperature, and air flow. This work, priced at $22,031, will directly address issues related to air distribution and temperature regulation, ensuring a more comfortable and efficient environment within the Police Department. The second component of the proposed change order involves the replacement of two Fan Power Boxes (FPB2-22 and FPB3-01), which play a key role in regulating the HVAC system’s airflow. Similar to the VAV replacement, this work will require the safe- Packet Page.676 1 8 8 7 off of existing systems, reworking of ductwork, and the installation of new duct insulation. The control systems will also be retested, including the supply damper, fan, and reheat functions. The total cost for the Fan Power Box replacement is $12,251. This upgrade is essential to improving airflow consistency and optimizing the overall HVAC performance for the Police Department. Finally, the proposed change order includes the installation of two manual valves in the hot water system to isolate the reheat valves in specific locations within the facility. This work will involve shutting down the boiler and draining the hot water system to install the new valves. The manual valves will provide greater control over the reheat system, allowing for easier isolation and maintenance. This work is critical to enhancing the flexibility and reliability of the HVAC system, and the cost for this portion is $4,262. In total, the additional work outlined in proposed change order amounts to $42,398.00 with contingency and construction management costs. These upgrades are necessary to address the deficiencies identified during the project’s execution and ensure the HVAC system functions at peak performance. Approval of Resolution 2025-XXX will provide the funding necessary for the completion of the project, ensuring the Police Department facility is properly maintained and its HVAC systems operate efficiently and reliably. The original agreement for the project was $325,550.00, with an initial contingency and administrative cost of $39,450.00, bringing the total to $365,000.00. A proposed change order of $38,544.00 has been added to accommodate necessary adjustments during the project. Additionally, there is an increase of $3,854.00 for further contingency and administrative costs. As a result, the new total for the project budget is $407,398.00. This updated amount reflects both the change order and the additional costs needed to ensure the project is completed successfully. 2021-2025 Strategic Targets and Goals Authorizing the execution of this amendment aligns with Key Target No. 3: Improved Quality of Life by providing a more comfortable space for the Police Department to operate, which will improve the quality of service. Fiscal Impact There is no General Fund impact associated with this action. Funding for this project is provided through the Law Enforcement Facilities Fund in the amount of $42,398. Budget Original Agreement $325,550.00 Initial Contingency & Administrative Cost $39,450.00 Proposed Change Order $38,544.00 Additional Contingency & Administrative Cost $3,854.00 New Project Budget Total $407,398.00 Packet Page.677 1 8 8 7 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution 2025-246: 1. Authorizing the Director of Finance and Management Services to amend the FY 2024/25 Capital Improvement Plan Budget with an additional $42,398.00 for the Police Building Management System Project using the Law Enforcement Facilities Fund balance; and 2. Authorizing the Director of Finance and Management Services to increase the construction contingency and construction management budget from $39,450.00 to the total amount of $43,304.00; and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution No. 2025-246 Attachment 2 Proposed Scope of Work Attachment 3 Agreement with Western Allied Corporation Attachment 4 Location Map Ward: Ward 1 Synopsis of Previous Council Actions: June 1, 2022 Approval of the Fiscal Year 2023 & Fiscal Year 2024 Operating Budget and Capital Improvement Program 2023-2027 April 17, 2024 Award of Construction Agreement for Police Department HVAC Control System and Valve Replacement (Ward 1) Packet Page.678 Resolution No. 2025-246 Resolution 2025-246 February 19, 2025 Page 1 of 3 6 3 0 6 RESOLUTION NO. 2025-246 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA AUTHORING THE DIRECTOR OF FINANCE AND MANAGEMENT SERVICES TO AMEND THE FY 2024/25 CIP BUDGET WITH AN ADDITIONAL $42,398.00 FOR THE POLICE BUILDING MANAGEMENT SYSTEM PROJECT USING THE LAW ENFORCEMENT FACILITIES FUND BALANCE.; AND AUTHORIZING THE DIRECTOR OF FINANCE AND MANAGEMENT SERVICES TO INCREASE THE CONSTRUCTION CONTINGENCY AND CONSTRUCTION MANAGEMENT BUDGET FROM $39,450.00 TO THE TOTAL AMOUNT OF $43,304.00.; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT. WHEREAS, The City Desires to replace and install HVAC components to restore functionality of the Police Department’s HVAC system. WHEREAS, on June 1, 2022, the Mayor and City Council approved the Fiscal Year 2023 and Fiscal Year 2024 Operating Budget and the Capital Improvement Program (CIP) for 2023- 2027. WHEREAS, On April 17, 2024 the Mayor and City Council awarded the construction agreement for the Police Building Management System Project to Western Allied Corporation. WHEREAS, additional budget is necessary to address critical additional work that was not included in the original scope of the Police Building Management System 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 Mayor and City Council hereby authorize the Director of Finance and Management Services to amend the FY 2024/25 CIP Budget with an additional $42,398.00 for the Police Building Management System Project using the Law Enforcement Facilities fund balance. SECTION 3. The Mayor and City Council hereby authorize increasing the construction contingency and construction management budget from $39,450.00 to the total amount $43,304.00. Packet Page.679 Resolution No. 2025-246 Resolution 2025-246 February 19, 2025 Page 2 of 3 6 3 0 6 SECTION 4. The Mayor and City Council hereby authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. 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 19th day of February 2025. Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.680 Resolution No. 2025-246 Resolution 2025-246 February 19, 2025 Page 3 of 3 6 3 0 6 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. 2025-246, adopted at a regular meeting held on the 19th day of February 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2025. Genoveva Rocha, CMC, City Clerk Packet Page.681 Packet Page.682 Packet Page.683 Packet Page.684 Packet Page.685 Packet Page.686 Packet Page.687 Packet Page.688 Packet Page.689 Packet Page.690 Packet Page.691 Packet Page.692 Packet Page.693 Packet Page.694 Packet Page.695 Packet Page.696 Packet Page.697 Packet Page.698 Packet Page.699 Packet Page.700 Packet Page.701 Packet Page.702 Packet Page.703 Packet Page.704 Packet Page.705 Packet Page.706 Packet Page.707 Packet Page.708 Packet Page.709 Packet Page.710 Packet Page.711 Packet Page.712 Packet Page.713 Packet Page.714 Packet Page.715 Packet Page.716 Packet Page.717 Packet Page.718 Packet Page.719 Packet Page.720 Packet Page.721 Packet Page.722 Packet Page.723 Packet Page.724 Packet Page.725 Packet Page.726 Packet Page.727 2 3 1 3 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Lynn Merrill, Director of Public Works Department:Public Works Subject:Award a Design Services Agreement to Bell Design Group for the Norman F. Feldheym Public Library Improvement Project in the amount of $319,000 (Ward 1) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the award of a Design Services Agreement with Bell Design Group in the amount of $319,000.00 for Norman F. Feldheym Public Library Improvement (Project); and 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $31,900.00. 3. Authorize the City Manager or designee to execute all documents with Bell Design Group; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Executive Summary The proposed agreement with Bell Design Group will initiate the design phase for key facility improvements at Norman F. Feldheym Public Library. These improvements include essential structural repairs, HVAC system upgrades, window replacements, electrical and lighting system improvements, and enhanced digital accessibility. These upgrades are necessary as the library has not undergone significant maintenance or modernization since its construction in 1985, leading to operational inefficiencies and facility deterioration. The project funded through the California State Library Building Packet Page.728 2 3 1 3 Forward Library Facilities Improvement Program Grant. Background The Norman F. Feldheym Public Library, located at 555 West 6th Street, is a critical resource for the community, especially for residents facing economic and linguistic barriers. Since its construction in 1985, the facility has seen minimal upgrades, leading to structural and operational deficiencies. The library suffers from leaking windows, outdated electrical wiring, a deteriorating foundation, and an inefficient HVAC system that fails to regulate temperatures effectively. Additionally, inadequate lighting contributes to excessive heat and high energy costs. The Feldheym Library Revitalization Project will address these issues through essential maintenance, energy efficiency upgrades, and modernization efforts to improve both digital and physical accessibility. City staff, in collaboration with architectural and engineering experts, conducted a comprehensive assessment of the building’s condition. This evaluation confirmed the need for extensive renovations, including HVAC improvements, electrical and lighting upgrades, window replacements, and enhancements to security systems. The project will also ensure compliance with ADA accessibility standards, expanding digital access for the community. On December 6, 2023, the City Council accepted a grant from the California State Library Building Forward Library Facilities Improvement Program in the amount of $6,409,370.00 to help fund these improvements. This grant will support the renovation and modernization efforts, ensuring the library remains a valuable community resource for years to come. By addressing these long-overdue maintenance needs, the City is reinforcing its commitment to public service and providing a more functional, comfortable, and accessible space for residents. Discussion This project is focused on modernizing and upgrading the library facility for the community, with the goal of enhancing safety, comfort, and accessibility for library users and staff. The proposed design services agreement will cover every stage of the design process, including the conceptual design phase, construction design phase, bid and construction support, and construction design support and RFI response. The project was advertised through PlanetBids on October 10, 2024. Four submittals were received. The submittals were evaluated based on qualifications and understanding of project scope. Three out of the four firms were selected to move forward onto the interview round. The three firms interviewed were Bell Design Group, LOC Inc., and Perkins Eastman. Bell Design Group was determined to be most qualified for the design work based on understanding of project requirements. Packet Page.729 2 3 1 3 The proposal from Bell Design Group (BDG) for the Norman F. Feldheym Central Library Revitalization Project outlines a comprehensive approach to addressing both the functional and aesthetic needs of the library. The proposed improvements include upgrades to the HVAC system, repairs to critical facility issues like leaking windows, electrical wiring, and cracks in the concrete foundation, and enhancements to the lighting and energy systems. These updates are essential for ensuring the library’s continued operation and its long-term sustainability. The design process begins with the Conceptual Design Phase with BDG initiating meetings with City Staff and conducting research to develop preliminary designs. Then BDG goes into their Construction Design Phase where the designs will be developed and construction documents will be prepared. Next, BDG will provide Bid and Construction Support by assisting City Staff in the competitive bidding process. Lastly, BDG will continue providing Construction Design Support and request for information response services. The fee of $319,000.00 covers a broad range of services, from conceptual design and schematic planning to preparing detailed construction documents and ongoing support during construction. BDG has also included provisions for addressing any issues that may arise during construction, such as changes to the design or responses to requests for information (RFIs), ensuring that the project can proceed smoothly without major delays or cost overruns. Staff recommends an additional $31,900.00 contingency for any unforeseen work that may be identified during the design. The total grant amount allocated is $6,409,370. Out of this, $197,600 is encumbered for project management by Transtech Engineers, and $350,900.00 is designated for the design phase. After these expenses, the remaining budget available for the rest of the project is $5,860,870.00. Proposals Bell Design Group Los Angeles, CA LOC Inc Los Angeles, CA Perkins Eastman Costa Mesa, CA Miller Architectural Corporation Redlands, CA Design Cost Design Fee $319,000.00 Contingency $31,900.00 Total Design Cost $350,900.00 Packet Page.730 2 3 1 3 Bell Design Group’s experience and approach to the project will help ensure a high- quality renovation that meets the needs of the community. Staff recommends that the City Council approve the design services agreement with BDG, as their proposed scope of work and fee structure provide a clear path forward for the successful completion of the project. 2021-2025 Strategic Targets and Goals This Project is consistent with the City’s Key Strategic Target and Goal No. 2a: Focused, Aligned Leadership and Unified Community – Build a culture that attracts, retains, and motivates the highest qualify talent and Goal No. 3c: Improved Quality of Life. - Evaluate and enhance the quality of public safety services. This Design Services Agreement will improve public services by ensuring that the Feldheym Library continues to meet the evolving needs of San Bernardino’s residents. Fiscal Impact There is no General Fund impact associated with this action. This project will be funded using the State of California Library Building Forward Library Facilities Improvement Program Grant in the amount of $6,409,370.00. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the award of a Design Services Agreement with Bell Design Group in the amount of $319,000.00 for Norman F. Feldheym Public Library Improvement (Project); and 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $31,900. 3. Authorize the City Manager or designee to execute all documents with Bell Design Group; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Budget Grant Amount $6,409,370.00 Transtech $197,600.00 Design Phase $350,900.00 Remaining Project Budget $5,860,870.00 Packet Page.731 2 3 1 3 Attachment 1 Design Services Agreement with Bell Design Group Attachment 2 Proposal – Bell Design Group Attachment 3 Location Map Ward: First Ward Synopsis of Previous Council Actions: December 6, 2023 Acceptance of the California State Library Building Forward Library Facilities Improvement Program Grant Award for the Norman F. 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Approve the award of a Task Order with Willdan Engineering in the amount of $59,500 for the Traffic Calming Measures on 28th Street (Project); and 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $5,950. 3. Authorize the City Manager, Public Works Director or City Engineer to execute all documents with Willdan Engineering; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Executive Summary Awarding the task order for the Traffic Calming Measures at 28th Street will reduce vehicle speeds and improve overall traffic flow in this area. The Task Order would allow the City to issue Willdan Engineering a Notice to Proceed, initiating the process to design the improvements. This Task Order is being issued through an existing pre-approved on-call list, and the design services will be funded by Measure S. Background Packet Page.800 1 6 5 4 In 2023, the Public Safety and Human Relations Commission (PSHRC) approved a road diet plan using lane striping as a short-term measure to address traffic intrusions concerns from both H Street and E Street on 28th Street as a bypass avoiding 30th Street on the north and Highland Ave on the south. following requests from citizens in the area for safer streets. This action was taken to reduce vehicle speeds in the neighborhood. Public Works designed and implemented a road diet plan, which included reducing lane widths, edge lines, rumble strips, and upgrading the existing faded traffic control devices to meet the California MUTCD standards. The PSHRC directed Public Works to monitor the impact of these changes to assess their effectiveness in reducing intrusions along this segment of this roadway. Based on the results and feedback gathered, a long-term phase of the project will be designed and installed to introduce physical barriers and more permanent features for traffic calming on 28th Street. On June 5, 2024, the City Council held a public hearing to present the City Manager's proposed budgets for Fiscal Year 2024/25 and Fiscal Year 2025/26. The continuation of this hearing on June 26, 2024, allowed for further discussion and provided an opportunity for the Council to review and approve the City Manager's FY 2025 Operating Budget, as well as the Capital Improvement Plan (CIP) for 2025- 2029. However, only a one-year budget for FY 2024/25 was adopted at this time. Funding for the Project was established with $170,500 allocated for FY 2024/25 in Measure S. This segment of the roadway has been identified by Public Works staff for improvements to reduce traffic speeds and discourage its use as a bypass route. The Institute of Transportation Engineers (ITE) has recommended various traffic calming strategies, which have been incorporated into the City’s conceptual design for the area. With the implementation of Traffic Calming Measures on 28th Street, Staff intends to reduce vehicle speeds and discourage the use of the street as a bypass route, while preserving on-street parking where practical. The primary objective of this project is to enhance accessibility for both residents and pedestrians, thereby improving the overall livability and quality of life in the neighborhood. Discussion This project aims to implement traffic calming measures on 28th Street, focusing on reducing vehicle speeds, improving accessibility for both vehicular, pedestrian, and student traffic. The consultant will assist the City in evaluating the feasibility of various traffic calming components, analyzing the appropriate materials and construction methods, and addressing other initial planning considerations. City Staff has provided the consultant with a list of applicable project improvements, identifying which measures are most critical to address within the current project budget. The consultant will help develop a comprehensive plans, specifications, and estimates package that can be advertised within the available budget. Packet Page.801 1 6 5 4 Staff utilized the On-Call Consultant Services list, approved by the Mayor and City Council on November 16, 2022, to solicit proposals for the traffic calming design services on 28th Street. A design proposal was sent to six qualified firms from the list, and three firms responded with their proposals. These submissions were carefully reviewed to assess each firm's qualifications, experience, and approach to the project. Proposals City Fee Willdan Engineering Industry, CA $59,500.00 TKE Consultants Riverside, CA $92,031.00 Rick Engineering Riverside, CA $85,680.00 The three received proposals were evaluated, and Staff recommends City Council to approve a Task Order in the amount of $59,500 with Willdan Engineering City of Industry, CA for Design Services for this Project. Staff also recommends that City Council approve a design contingency in the amount of $5,950, for a total agreement amount of $65,450. 2021-2025 Strategic Targets and Goals This project aligns with the City's Key Strategic Target and Goal No. 3: Improved Quality of Life, specifically section C, which focuses on evaluating and enhancing public safety services. By implementing traffic calming measures on 28th Street, the City aims to reduce vehicle speeds and improve accessibility for both pedestrians and residents. These measures will help create safer streets and contribute to a more livable neighborhood. This project directly supports the City’s commitment to improving the overall quality of life for the community. Fiscal Impact The cost of this design services totals to $65,450.00, will be funded through Measure S, as allocated in the FY 2024/25 Capital Improvement Plan (CIP) budget. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Approve the award of a Task Order with Willdan Engineering in the amount of $59,500 for the Traffic Calming Measures on 28th Street (Project); and Budget Task Order with Willdan Engineering $59,500.00 Design Contingency $5,950.00 Total Agreement $65,450.00 Packet Page.802 1 6 5 4 2. Authorize the project design cost and contingency cost for unforeseen conditions costs for a potential agreement in the total amount of $5,950. 3. Authorize the City Manager or designee to execute all documents with Willdan Engineering; and 4. Authorize the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Task Order with Willdan Engineering Attachment 2 Proposal from Willdan Engineering Attachment 3 Location Map Ward: Seventh Ward Synopsis of Previous Council Actions: June 26, 2024 Continuation of June 5, 2024, Public Hearing: Presentation of the City Manager’s Proposed Fiscal Year 2024/25 & Fiscal year 2025/26 Budget and Approval of the City Manager’s FY 2025 & FY 2026 Operating Budget & CIP 2025-2029 (All Wards). Packet Page.803 1 EXHIBIT B TASK ORDER Task Order No. Willdan Engineering 003 Agreement: Professional Services Agreement for On-Call Pre-Qualified Engineering Services Consultant: Willdan Engineering The Consultant is hereby authorized to perform the following services subject to the provisions of the Agreement identified above: List any attachments: 1. Willdan Engineering Proposal Dollar Amount of Task Order: Not to exceed $65,450.00 Completion Date: 08/06/2025 The undersigned Consultant hereby agrees that it will provide all equipment, furnish all materials, except as may be otherwise noted above, and perform all services for the work above specified in accordance with the Agreement identified above and will accept as full payment therefore the amount shown above. CITY OF SAN BERNARDINO Willdan Engineering Dated:Dated: By:By: Rochelle Clayton Adel M. Freij, PE Acting City Manager Director of City Engineering Packet Page.804 Packet Page.805 Packet Page.806 Packet Page.807 Packet Page.808 Packet Page.809 Packet Page.810 Packet Page.811 2 5 1 1 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Kenneth Chapa, Director of Economic Development Department:Economic Development Subject:Adoption of Ordinance No. MC-1647 (Annexation 48 - Piedmont Park Estates) (Ward 4) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1647 amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2024-2025 to pay the annual costs of the maintenance and servicing of lighting, streets, parks, graffiti abatement and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Executive Summary The recommended action is the final step of the annexation process for the proposed development into Community Facilities District (CFD) No. 2019-1 (Maintenance Services). The property owner has petitioned the City to annex into the City’s CFD to mitigate its impact for maintenance service of public facilities as a result of the new development. The Public Hearing was to be held on December 18, 2024, and continued to January 15, 2025, to approve the annexation and conducted the first reading of the Ordinance. The special taxes will be levied annually to offset general fund expenditures related to maintenance of public improvements within and for the benefit of the development. Background On November 6, 2024, the Mayor and City Council adopted Resolution No. 2024-215, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982”. Packet Page.812 2 5 1 1 On December 18, 2024 the Public Hearing was to be held and continued to January 15, 2025. The Mayor and City Council adopted Resolution No. 2025-005 calling an election to submit to be annexed to Community Facilities District No. 2019-1 (Annexation No. 48) and adopted Resolution No. 2025-006 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 48). Discussion On January 15, 2025, Ordinance No. MC-1647 was introduced for first reading to the Mayor and City Council. The Ordinance is now being returned to the Mayor and City Council for adoption. The Ordinance will become effective 30 days from the date of adoption. 2021-2025 Strategic Targets and Goals This project is consistent with Key Target No 1. Improved Operational & Financial Capacity and Key Target No 4. Economic Growth & Development. This project will contribute to ensure that the City is clean and attractive and provide infrastructure designed for long term economic growth. Fiscal Impact There is no fiscal impact to the City. All costs associated with annexation into the CFD have been borne by the Developer. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Ordinance No. MC-1647 amending Ordinance No. MC-1522 and levying special taxes to be collected during Fiscal Year 2024-2025 to pay the annual costs of the maintenance and servicing of lighting, streets, parks, graffiti abatement and a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). Attachments Attachment 1 – Ordinance No. MC-1647 (Ordinance Levying Special Taxes) Attachment 2 – Exhibit A – Description of Services Attachment 3 – Exhibit B – Description of Territory Attachment 4 – Project Location Map Ward: Fourth Ward Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019- 81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” Packet Page.813 2 5 1 1 July 17, 2019 Mayor and City Council adopted Resolution No. 2019- 178 establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 declaring election results for Community Facilities District No. 2019-1; and conducted the first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Mayor and City Council conducted the final reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. November 6, 2024 Mayor and City Council adopted Resolution No. 2024- 215, a Resolution of Intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello-Roos Community Facilities Act of 1982.” December 18, 2024 Mayor and City Council continued the Public Hearing regarding CFD 2019-1 Annexation No. 48 to January 15, 2025. January 15, 2025 Mayor and City Council adopted Resolution No. 2025- 005 calling an election to submit to the qualified electors the question of levying a special tax within the area proposed to be annexed to Community Facilities District No. 2019-1 (Annexation No. 48), and adopted Resolution No. 2025-006 declaring election results for Community Facilities District No. 2019-1 (Annexation No. 48); and introduced Ordinance No. MC-1647 amending Ordinance No. MC-1522. Packet Page.814 Packet Page.815 Packet Page.816 Packet Page.817 Packet Page.818 Packet Page.819 Packet Page.820 Packet Page.821 2 5 1 6 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Darren Goodman, Chief of Police Department:Police Subject:Acceptance of FY 2024 Edward Byrne Justice Assistance Grant (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025-245 authorizing: 1. The City Manager to accept the 2024 Edward Byrne Justice Assistance Grant; and 2. The Director of Finance and Management Services to amend the FY24/25 Adopted Budget by $181,099.00 in both revenue and expenditure of grant funds. Executive Summary Staff recommends the acceptance of the 2024 Edward Byrne Justice Assistance Grant in the amount of $181,099 for the purpose of creating a real-time information center within the Police Department and purchasing replacement police vehicle radios. Background The San Bernardino Police Department is a sub-recipient of the Edward Byrne Memorial Justice Assistance Grant (JAG) through the County of San Bernardino. The JAG grant is a formulary grant that is allocated based on population and a three-year average of reported violent crime. The City of San Bernardino has been designated a disparate jurisdiction, which allows the City to receive one-and-one-half of the County Allocation. San Bernardino County serves as the grant recipient, administrator, and fiscal agent for the JAG program funds and is allowed to charge each jurisdiction a 5% administrative fee from the jurisdiction's allocation. JAG grants are cash grants paid in advance with no requirement for matching funds. Packet Page.822 2 5 1 6 Discussion The San Bernardino Police Department has received a grant award in the amount of $181,099 for FY2024 grant period of 10/01/23 through 09/30/27. The grant was awarded on December 5, 2024, with agreements sent for final approval on January 14, 2025. The project proposed for the 2024 JAG grant was technology based and involved the purchase of updated police vehicle radios and necessary hardware and software to further the establishment of a real-time crime center at the Police Department. 2021-2025 Strategic Targets and Goals The request to authorize the receipt, obligation, and expenditure of the 2024 JAG grant aligns with Key Target 1b: Financial Stability – Implement, maintain, and update a fiscal accountability plan, and Target 3c: Improved Quality of Life - Constantly evaluate public safety service delivery models to enhance the quality of service. Fiscal Impact Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2025-245 authorizing: 1. The City Manager to accept the 2024 Edward Byrne Justice Assistance Grant; and 2. The Director of Finance and Management Services to amend the FY24/25 Adopted Budget by $181,099.00 in both revenue and expenditure. Attachments Attachment 1 Resolution No. 2025-245 FINANCIAL DATA Current Fiscal Year:Next Fiscal Year:Total Cost:Ongoing Cost: COST $ 181,099 $ $ 181,099 $ GENERAL FUND SHARE $ $ $ $ SOURCE OF FUNDS: The source of funding is the FY2024 JAG award. There is no fiscal impact to the General Fund for this grant. The Fiscal Year 2024/2025 Operating Budget will be amended to recognize $181,099 in grant funding in both revenues and expenditures. Budget Adjustment: Yes For Fiscal Year: 24/25 Packet Page.823 2 5 1 6 Attachment 2 Interlocal Agreement Ward: All Wards Synopsis of Previous Council Actions: October 4, 2023 Adopted Resolution 2023-154 accepting the 2023 JAG grant March 1, 2023 Adopted Resolution 2023-038, accepting the 2022 JAG grant July 20, 2022 Adopted Resolution 2022-147, accepting the 2020 and 2021 JAG grants September 2, 2020 Adopted Resolution 2020-220, accepting the 2017, 2018, and 2019 JAG grants Packet Page.824 Resolution No. 2025-245 Resolution No. 2025-245 Page 1 of 3 February 19th, 2025 RESOLUTION NO. 2025-245 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE 2024 EDWARD BYRNE JUSTICE ASSISTANCE GRANT (JAG) AND THE DIRECTOR OF FINANCE AND MANAGEMENT SERVICES TO AMEND THE FY 2024/25 ADOPTED BUDGET BY $181,099.00 IN BOTH REVENUE AND EXPENDITURE. WHEREAS, The City of San Bernardino has been awarded the 2024 Edward Byrne Justice Assistance Grant in the amount of $181,099.00, and, WHEREAS, The City will use the funding for the purpose of creating a real-time center and purchasing replacement police vehicle radios. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1.The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is authorized to execute the 2024 Interlocal Agreement for the Edward Byrne Memorial Justice Assistance Grant and execute any documents as may be necessary to accept grant funds. SECTION 3. The Director of Finance and Management Services is authorized to amend the FY24/25 Adopted Budget with an appropriation of $181,099 in both revenue and expenditure. 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 19th day of February 2025. Packet Page.825 Resolution No. 2025-245 Resolution No. 2025-245 Page 2 of 3 February 19th, 2025 6 3 3 4 Helen Tran, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney Packet Page.826 Resolution No. 2025-245 Resolution No. 2025-245 Page 3 of 3 February 19th, 2025 6 3 3 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 Resolution No. 2025-245, adopted at a regular meeting held on the 19th day of February 2025 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ KNAUS _____ _____ _______ _______ FLORES _____ _____ _______ _______ ORTIZ _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of February 2025. Genoveva Rocha, CMC, City Clerk Packet Page.827 Packet Page.828 Packet Page.829 Packet Page.830 Packet Page.831 Packet Page.832 Packet Page.833 CONSENT CALENDAR City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Tanya Romo, Acting City Manager; Andrea Russell, Director of Human Resources Department:Human Resources Subject:Amendments to Professional Services Agreements for Legal Services (All Wards) Recommendation: It is recommended that the Mayor and City Council of the City of San Bernardino, California authorize the City Manager or their designee to execute: 1. Second Amendment to the Professional Services Agreement with Graves & King for representation in the Mark Detinne, et al. v. City of San Bernardino, et al. San Bernardino Superior Court Case No. CIVDS 2016739 increasing the not-to-exceed amount from $150,000 to $350,000. 2. Fourth Amendment to the Professional Services Agreement with Atkinson, Andelson, Loya, Ruud & Romo for the provision of legal services in connection with the case entitled Brian Pellis, et al. v. City of San Bernardino, et al US District Court Case No. CIVSB 2226731 increasing the not-to-exceed amount from $450,000 to $950,000. 3. Fifth Amendment to the Professional Services Agreement with Lynberg and Watkins for the representation in the Gary Saenz, et al. v. City of San Bernardino et al., San Bernardino Superior Court Case No. CIVDS2003802 increasing the not- to-exceed amount from $225,000 to $241,859.69. 4. Second Amendment to the Professional Services Agreement with Lawrence, Beach, Allen & Choi, for representation in the Maria Segura, as successor in interest to Nicholas Segura, et al. v. City of San Bernardino, US District Court Case No. 8:23-cv-00786-HDV-DFM increasing the not-to-exceed amount from $100,000 to $200,000. Packet Page.834 Executive Summary Amending the legal services agreements will allow the City to pay the final outstanding invoices on the Gary Saenz matter, which is now closed. All other cases are ongoing and generating new invoices. Amending the agreements would allow the City to retain current legal counsel. Background Mark Detinne, et al. v. City of San Bernardino, et al. •On February 2, 2021 the City entered into an agreement with Graves & King in the amount of $49,999.00 pursuant to 3.04.085(A) of the Municipal Code to represent the City in San Bernardino Superior Court Case No. CIVDS 2016739. •On March 16, 2022, the City entered into the first amendment to the agreement for a total not to exceed $150,000. Brian Pellis, et al. v. City of San Bernardino, et al. •On July 14, 2022, the City entered into an agreement with Atkinson, Andelson, Loya, Ruud & Romo in the amount of $49,999.00 pursuant to 3.04.085(A) of the Municipal Code to represent the City in Brian Pellis, et al. v. City of San Bernardino, et al., US District Court Case No. CIVSB 2226731. •On October 17, 2023, the city entered into the first amendment to the agreement for a total not to exceed $100,000. •On January 23, 2024, the City entered into the second amendment to the agreement for a total not to exceed $250,000. •On June 5, 2024, the City entered into the second amendment to the agreement for a total not to exceed $450,000. Gary Saenz, et al. v. City of San Bernardino, et al. •On July 08, 2019, the City entered into an agreement with Lynberg and Watkins in the amount of $50,000 to represent the City in the Gary Saenz, et al. v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS2003802. •On February 26, 2020, the City entered into the first amendment to the agreement with a cap of $25,000. •On July 15, 2020, the City entered into the second amendment to the agreement for a total not to exceed $75,000. •On August 17, 2022, the City entered into the third amendment to the agreement for a total not to exceed $150,000. Packet Page.835 •On April 19, 2023, the City entered into the fourth amendment to the agreement for a total not to exceed $225,000. Maria Segura, as successor in interest to Nicholas Segura, et al. v. City of San Bernardino •On April 19, 2021, the City entered into an agreement with Lawrence, Beach, Allen & Choi in the amount of $49,999 pursuant to 3.04.085(A) of the Municipal Code to represent the City in the United States District Court Case No. 5:22-CV- 00277-JGB-SP. •On November 1, 2023, the City entered into the first amendment to the agreement for a total not to exceed $100,000. Discussion Graves & King have represented the City in the Mark Detinne, et al. v. City of San Bernardino matter. This case is still active. Atkinson, Andelson, Loya, Ruud and Romo have represented the City in the Brian Pellis. v. City of San Bernardino matter. This case is still active. Lawrence, Beach, Allen & Choi have represented the City in the Maria Segura, as successor in interest to Nicholas Segura v. City of San Bernardino matter. This case is active. Increasing the not to exceed limits with will retain all three firms listed above as legal counsel for these matters. It is advisable to maintain these firms as continued representation is essential to protect the City’s interest and avoid unnecessary liability. Lynberg and Watkins have consistently worked on the Gary Saenz matter. This matter is now closed. Increasing the contract amount will allow for final invoices to be paid. The proposed amendments to the contract amounts are as follows: Case Firm Current Not-to Exceed Amount Proposed Not-to- Exceed Amount Mark Detinne, et al. Graves & King $150,000 $350,000 Brian Pellis, et al.Atkinson, Andelson, Loya, Ruud and Romo $450,000 $950,000 Gary Saenz, et al.Lynberg and Watkins $225,000 $241,859.69 Maria Segura, et al. Lawrence, Beach, Allen & Choi $100,000 $200,000 2021-2025 Strategic Targets and Goals Packet Page.836 Authorization of these amendments aligns with Key Target No. 1e: Improved Operational & Financial Capacity – Minimize Risk and Litigation Exposure. Continued legal representation protects the City’s interest and avoids unnecessary liability. Fiscal Impact The fiscal impact is $816,859.69. The Fiscal Year 2024-25 Operating Budget has sufficient funds to accommodate this increase to the Professional Services Agreements. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California authorize the City Manager or their designee to execute: 1. Second Amendment to the Professional Services Agreement with Graves & King for representation in the Mark Detinne, et al. v. City of San Bernardino, et al. San Bernardino Superior Court Case No. CIVDS 2016739 increasing the not-to-exceed amount from $150,000 to $350,000. 2. Fourth Amendment to the Professional Services Agreement with Atkinson, Andelson, Loya, Ruud & Romo for the provision of legal services in connection with the case entitled Brian Pellis, et al. v. City of San Bernardino, et al US District Court Case No. CIVSB 2226731 increasing the not-to-exceed amount from $450,000 to $950,000. 3. Fifth Amendment to the Professional Services Agreement with Lynberg and Watkins for the representation in the Gary Saenz, et al. v. City of San Bernardino et al., San Bernardino Superior Court Case No. CIVDS2003802 increasing the not- to-exceed amount from $225,000 to $241,859.69.S 4. Second Amendment to the Professional Services Agreement with Lawrence, Beach, Allen & Choi, for representation in the Maria Segura, as successor in interest to Nicholas Segura, et al. v. City of San Bernardino, US District Court Case No. 8:23-cv-00786-HDV-DFM increasing the not-to-exceed amount from $100,000 to $200,000. Attachments Attachment 1 – Second Amendment to the Professional Services Agreement with Graves & King Attachment 2 – Fourth Amendment to the Professional Services Agreement with Atkinson, Andelson, Loya, Ruud & Romo Attachment 3 – Fifth Amendment to the Professional Services Agreement with Lynberg and Watkins Attachment 4 – Second Amendment to the Professional Services Agreement with Lawrence, Beach, Allen & Choi Attachment 5 – Professional Services Agreement and Prior Amendments with Graves Packet Page.837 & King Attachment 6 – Professional Services Agreement and Prior Amendments with Atkinson, Andelson, Loya, Ruud & Romo Attachment 7 – Professional Services Agreement and Prior Amendments with Lynberg and Watkins Attachment 8 – Professional Services Agreement and Prior Amendments with Lawrence, Beach, Allen & Choi Ward: All Wards Synopsis of Previous Council Actions: March 16, 2022, the Mayor and City Council authorized the City Manager to execute the First Amendment with Graves & King for representation in the Mark Detinne, et al. v. City of San Bernardino, et al. San Bernardino Superior Court Case No. CIVDS 2016739 May 15, 2024, the Mayor and City Council authorized the City Manager to execute the Third Amendment with Atkinson, Andelson, Loya, Ruud and Romo for representation in the Brian Pellis, et al. v. City of San Bernardino, et al Case No. CIVSB 2226731 April 19, 2023, the Mayor and City Council authorized the City Manager to execute the Fourth Amendment with Lynberg and Watkins for the representation in the Gary Saenz, et al. v. City of San Bernardino, et al., San Bernardino Superior Court Case No. CIVDS2003802. November 1, 2023 the Mayor and City Council authorized the City Manager to execute the First Amendment with Lawrence, Beach, Allen & Choi for representation in the Maria Segura, as successor in interest to Nicholas Segura, et al. v. City of San Bernardino, US District Court Case No. 8:23-cv-00786-HDV-DFM. Packet Page.838 SECOND AMENDMENT TO THE PROFFESSIONAL SERVICES AGREEMENT WITH GRAVES AND KING, LLP This Second Amendment (“Second Amendment”) to the Professional Services Agreement dated February 5, 2025 is made and entered into by and between the City of San Bernardino (“City”) and Graves and King LLP (“Consultant”) as of the last date set forth below. 1. This Amendment is made with respect to the following facts and purposes: a. On February 2, 2021, the City and Consultant entered into a Services Agreement for the provision of legal services pertaining to Mark Detinne, et al. v. City of San Bernardino, et al., San Bernardino Superior Co. Case No. CIVDS 2016739 (“Original Agreement”). b. On March 16, 2022, the City entered into the first amendment to the agreement for a total not to exceed $150,000. (“First Amendment”). c. City and Consultant now desire to increase the amount of the Original Agreement. 2. The Original Agreement is hereby amended to increase the total not to exceed amount from $150,000 to $350,000. 3. Except as modified by this Second Amendment, all provisions of the Original Agreement shall remain in full force and effect for the term thereof. 4. This Second Amendment may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. Dated: _____, 2025 GRAVES AND KING, LLP By: Harvey Wimer, Its: Partner Dated: _____, 2025 CITY OF SAN BERNARDINO By: Rochelle Clayton Its: Acting City Manager Packet Page.839 FOURTH AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ATKINSON, ANDELSON, LOYA, RUUD AND ROMO This Fourth Amendment (“Fourth Amendment”) to the Professional Services Agreement dated February 5, 2025 is made and entered into by and between the City of San Bernardino (“City”) and Atkinson, Andelson, Loya, Rudd & Romo PC (“Consultant”) as of the last date set forth below. 1. This Amendment is made with respect to the following facts and purposes: a. On July 14, 2022, the City and Consultant entered into a Services Agreement for the provision of legal services pertaining to Brian Pellis, et al. v. City of San Bernardino, et al., Case No. CIVSB2226731 (“Original Agreement”). b. On November 1, 2023, the City entered into the first amendment to the agreement for a total not to exceed $100,000. (“First Amendment”). c. On January 23, 2024, the City entered into the second amendment to the agreement for a total not to exceed $250,000. (“Second Amendment”). d. On May 15, 2024, the City entered into the third amendment to the agreement for a total not to exceed $450,000. (“Third Amendment”). e. The City and Consultant now desire to increase the amount of the Original Agreement. 2. The Original Agreement is hereby amended to increase the total not to exceed amount from $450,000 to $950,000. 3. Except as modified by this Fourth Amendment, all provisions of the Original Agreement shall remain in full force and effect for the term thereof. 4. This Fourth Amendment may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. Dated: _____, 2025 ATKINSON, ANDELSON, LOYA, RUUD AND ROMO By: Irma Rodriguez Moisa, Its: Partner Dated: _____, 2025 CITY OF SAN BERNARDINO Packet Page.840 By: Rochelle Clayton Its: Acting City Manager Packet Page.841 FIFTH AMENDMENT TO THE LEGAL SERVICES AGREEMENT WITH LYNBERG & WATKINS This Fifth Amendment (“Fifth Amendment”) to the Professional Services Agreement dated February 5, 2025 is made and entered into by and between the City of San Bernardino (“City”) and Lynberg & Watkins (“Consultant”) as of the last date set forth below. 1. This Amendment is made with respect to the following facts and purposes: a. On July 08, 2019, the City and Consultant entered into a Services Agreement for the provision of legal services pertaining to Gary Saenz, et al. v. City of San Bernardino, et al., San Bernardino Superior Co. Case No. CIVDS 20003802 (“Original Agreement”). b. On February 26, 2020, the City and Consultant entered into the first amendment to the agreement for a total not to exceed $25,000. (“First Amendment”). c. On July 15, 2020, the City and Consultant entered into the second amendment to the agreement for a total not to exceed $75,000. (“Second Amendment”). d. On August 17, 2022, the City and Consultant entered into the third amendment to the agreement for a total not to exceed $150,000. (“Third Amendment”). e. On April 19, 2023, the City and Consultant entered into the Fourth Amendment to the agreement for a total not to exceed $225,000. (“Fourth Amendment”). f. The City and Consultant now desire to increase the amount of the Original Agreement. 2. The Original Agreement is hereby amended to increase the total not to exceed amount from $225,000 to 241,859.69. 3. Except as modified by this Fifth Amendment, all provisions of the Original Agreement shall remain in full force and effect for the term thereof. 4. This Fifth Amendment may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. Dated: _____, 2025 LYNBERG & WATKINS By: S. Frank Harrell Its: Partner Dated: _____, 2025 CITY OF SAN BERNARDINO Packet Page.842 By: Rochelle Clayton Its: Acting City Manager Packet Page.843 SECOND AMENDMENT TO THE LEGAL SERVICES AGREEMENT WITH LAWRENCE, BEACH, ALLEN & CHOI This Second Amendment (“Second Amendment”) to the Professional Services Agreement dated February 5, 2025 is made and entered into by and between the City of San Bernardino (“City”) and Lawrence, Beach, Allen and Choi (“Consultant”) as of the last date set forth below. 1. This Amendment is made with respect to the following facts and purposes: a. On April 19, 2021, the City and Consultant entered into a Services Agreement for the provision of legal services pertaining to Maria Segura (M.S. v City, et al.), United States District Co. Case No. 5:22-CV-00277-JGB-SP (“Original Agreement”). b. On November 1, 2023, the City entered into it’s the first amendment to the agreement for a total not to exceed $100,000. (“First Amendment”) c. The City and Consultant now desire to increase the amount of the Original Agreement. 2. The Original Agreement is hereby amended to increase the total not to exceed amount from $100,000 to $200,000. 3. Except as modified by this Second Amendment, all provisions of the Original Agreement shall remain in full force and effect for the term thereof. 4. This Second Amendment may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. Dated: LAWRENCE BEACH ALLEN & CHOI By: Aamir Raza Its: Senior Associate Dated: CITY OF SAN BERNARDINO By: Rochelle Clayton Its: Acting City Manager Packet Page.844 Packet Page.845 Packet Page.846 Packet Page.847 Packet Page.848 Packet Page.849 Packet Page.850 Packet Page.851 Packet Page.852 Packet Page.853 Packet Page.854 Packet Page.855 Packet Page.856 Packet Page.857 Packet Page.858 Packet Page.859 Packet Page.860 Packet Page.861 Packet Page.862 Packet Page.863 Packet Page.864 Packet Page.865 Packet Page.866 Packet Page.867 Packet Page.868 Packet Page.869 Packet Page.870 Packet Page.871 Packet Page.872 Packet Page.873 Packet Page.874 Packet Page.875 Packet Page.876 Packet Page.877 Packet Page.878 Packet Page.879 Packet Page.880 Packet Page.881 Packet Page.882 Packet Page.883 Packet Page.884 Packet Page.885 Packet Page.886 Packet Page.887 Packet Page.888 Packet Page.889 Packet Page.890 Packet Page.891 Packet Page.892 Packet Page.893 Packet Page.894 Packet Page.895 Packet Page.896 Packet Page.897 Packet Page.898 Packet Page.899 Packet Page.900 Packet Page.901 Packet Page.902 Packet Page.903 2 5 8 4 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS City of San Bernardino Request for Council Action Date:February 19, 2025 To:Honorable Mayor and City Council Members From:Juan Figueroa, Mayor Pro Tempore, 3rd Ward Department:Council Office Subject:Presentation of Community Choice Aggregation (CCA) (All Wards) – Mayor Pro Tempore Figueroa Packet Page.904