HomeMy WebLinkAbout08-15-2018 Agenda BackupCITY OF SAN BERNARDINO
AGENDA
FOR THE
JOINT REGULAR MEETING OF THE MAYOR AND CITY COUNCIL
OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS
THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND
CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND THE MAYOR AND
CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOINT POWERS FINANCING
AUTHORITY
WEDNESDAY, AUGUST 15, 2018
4:00 PM – CLOSED SESSION 5:00 PM – OPEN SESSION
COUNCIL CHAMBER • 201 NORTH "E" STREET • SAN BERNARDINO, CA 92401 • WWW.SBCITY.ORG
Virginia Marquez R. Carey Davis James Mulvihill
COUNCIL MEMBER, W ARD 1 MAYOR COUNCIL MEMBER, WARD 7
Benito Barrios
Andrea M. Miller
COUNCIL MEMBER, W ARD 2 CITY MANAGER
John Valdivia Gary D. Saenz
COUNCIL MEMBER, W ARD 3 CITY ATTORNEY
Fred Shorett Georgeann “Gigi” Hanna
COUNCIL MEMBER, W ARD 4 CITY CLERK
Henry Nickel David Kennedy
COUNCIL MEMBER, W ARD 5 CITY TREASURER
Bessine L. Richard
COUNCIL MEMBER, W ARD 6
Welcome to a meeting of the Mayor and City Council of the City of San Bernardino.
o Anyone who wishes to speak during public comment or on a particular item will be required to fill out a
speaker slip. Speaker slips must be turned in to the City Clerk. You may email your request to speak
to publiccomments@sbcity.org prior to 4 p.m. Each request will cover one speaker. Those who wish
to speak must submit their own request to be called on by the Mayor.
o There is a 3-minute-per-person time limit for all comments, excluding public or quasi-judicial
hearings.
o Written comment on any item may also be submitted to the City Clerk to be included in the meeting
record. It will not be read aloud by the City Clerk.
o Those who wish to speak on public or quasi-judicial hearing items will have three minutes for each item.
o All who wish to speak, including Council members and staff, need to be recognized by the Mayor or
Mayor Pro Tempore before speaking.
o Please contact the City Clerk’s Office (384-5002) two working days prior to the meeting for any
requests for reasonable accommodation to include interpreters.
o All documents for public review are on file with the City Clerk’s Office or may be accessed online by
going to www.sbcity.org.
o Please turn off or mute your cell phone while the meeting is in session.
Joint Regular Meeting Agenda August 15, 2018
Mayor and City Council of the City of San Bernardino Page 2 Printed 8/9/2018
Call to Order
Attendee Name Present Absent Late Arrived
Council Member, Ward 1 Virginia Marquez
Council Member, Ward 2 Benito Barrios
Council Member, Ward 3 John Valdivia
Council Member, Ward 4 Fred Shorett
Council Member, Ward 5 Henry Nickel
Council Member, Ward 6 Bessine L. Richard
Council Member, Ward 7 James Mulvihill
Mayor R. Carey Davis
City Clerk Georgeann "Gigi" Hanna
City Attorney Gary D. Saenz
City Manager Andrea M. Miller
CLOSED SESSION
PUBLIC COMMENTS ON CLOSED SESSION ITEMS
A three-minute limitation shall apply to each member of the public who wishes to
address the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency. No member of the public shall
be permitted to “share” his/her three minutes with any other member of the public.
A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION (Pursuant
to Government Code Section 54956.9(a) and (d)(1)):
In re: City of San Bernardino, U.S. Bankruptcy Court Case No. 6:12 -bk-28006 MJ
Redevelopment Agency of the City of San Bernardino v. DMC Investment
Holdings, LLC, Los Angeles County Superior Court Case No. BC465755, and
Placo San Bernardino, LLC v. City of San Bernardino, et al., Los Angeles County
Superior Court Case No. 468955
B. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION –
Initiation of Litigation (Pursuant to Government Code Section 54956.9(d)(4)):
One case.
INVOCATION AND PLEDGE OF ALLEGIANCE
CLOSED SESSION REPORT
APPOINTMENTS
1. Animal Control Commission
Recommendation: Respectfully request the appointment of Ms. Angela
Halfman to the Animal Control Commission.
Joint Regular Meeting Agenda August 15, 2018
Mayor and City Council of the City of San Bernardino Page 3 Printed 8/9/2018
2. Arts & Historical Preservation Commission
Recommendation: Respectfully request the appointment of Mr. Hazael
Perez Calleros to the Arts & Historical Preservation
Commission.
PRESENTATIONS
3. Youth Recognition – Vanessa Ramirez, Sierra High School – Council
Member Virginia Marquez
4. Youth Recognition – Khushi Patel – Council Member John Valdivia
5. Youth Recognition – Siya Patel – Council Member John Valdivia
6. Citizen of the Month – John Shollenberger – Council Member James
Mulvihill
7. Chamber of Commerce & Local Elected Officials Announcements
PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA
A three-minute limitation shall apply to each member of the public who wishes to address
the Mayor and City Council on any item on the agenda. There is no limit to the number of
items that may be discussed within the three-minute time limit. To be called on by the
Mayor, please turn in individual speaker slips to the City Clerk by 5:00 p.m. the day of the
meeting. If you wish, you may email your speaking request to publiccomments@sbcity.org
prior to the beginning of the meeting. Emailed requests to speak will not be accepted from
anyone but the person requesting to speak.
CONSENT CALENDAR
There will be no separate discussion of Consent Calendar items unless a Council
member requests that the item be considered in its normal sequence on the agenda.
Public comment on Consent Calendar items is limited to three minutes total per
person. There is no limit on the items that can be discussed within that time.
8. Waive Full Reading of Resolutions and Ordinances
Recommendation: Waive full reading of Resolutions and Ordinances on
the agenda dated August 15, 2018.
9. City Council Approval of Commercial and Payroll Checks
Recommendation: Approve the commercial and payroll checks for July
2018.
Joint Regular Meeting Agenda August 15, 2018
Mayor and City Council of the City of San Bernardino Page 4 Printed 8/9/2018
10. Lease Agreement with Akoma Unity Center for Use of the Anne Shirrells
Community Center
Recommendation: Adopt Resolution No. 2018-208 of the Mayor and City
Council of the City of San Bernardino, California,
authorizing the City Manager to execute a Lease
Agreement between the City of San Bernardino and
Akoma Unity Center for facility use of the Anne
Shirrells Community Center at 1367 North California
Street, San Bernardino, California from July 1, 2018
through June 30, 2021.
11. Award of Construction Contract for Street Light Improvement at
Broadmoor Blvd to Quality Light and Electrical
Recommendation: Adopt a Resolution No. 2018-229 of the Mayor and
City Council of the City of San Bernardino, California,
approving a construction contract with Quality Light
and Electrical (QLE) in the amount of $528,176.40;
authorizing a construction contingency in the amount
$52,817.60; authorizing the City Manager or designee
to sign all necessary documents; and authorizing the
City Manager to expend the contingency fund, if
necessary, to complete the project per Special
Provisions No. 13219.
12. Center of Employment Opportunities Agreement
Recommendation: Adopt Resolution No. 2018-230 of the Mayor and City
Council of the City of San Bernardino, California,
amending an Agreement between the City of San
Bernardino and the Center for Employment
Opportunities for Citywide landscape maintenance
services and weed abatement.
13. First Reading - Amendment of Chapter 10.52 of the San Bernardino
Municipal Code to Reduce the Speed Limit on Arrowhead Avenue between
Highland Avenue and Thompson Place from 45 mph to 40 mph
Recommendation: Introduce for First Reading, Ordinance MC-1502 of
the Mayor and City Council of the City of San
Bernardino, California, amending Chapter 10.52 of
the San Bernardino Municipal Code to reduce the
speed limit on Arrowhead Avenue between Highland
Avenue and Thompson Place from forty-five miles per
hour to forty miles per hour.
Joint Regular Meeting Agenda August 15, 2018
Mayor and City Council of the City of San Bernardino Page 5 Printed 8/9/2018
14. Designate Six Parking Stalls in the Santa Fe Depot Parking Lot for the
Exclusive Purpose of Fueling and Parking Zero Emission Vehicles (ZEV) in
Accordance with California Vehicle Code Section 22511
Recommendation: Adopt Resolution No. 2018-231 of the Mayor and City
Council of the City of San Bernardino, California,
authorizing the designation of six parking stalls in the
Santa Fe Depot parking lot for the exclusive purpose
of fueling and parking of Zero Emission Vehicles
(ZEV) in accordance with California Vehicle Code
Section 22511.
15. Passenger Amenities Program Agreement with Omnitrans for Current and
Future Bus Stops
Recommendation: Adopt Resolution No. 2018-232 of the Mayor and City
Council of the City of San Bernardino, California,
authorizing the execution of a Passenger Amenities
Program Agreement with Omnitrans for current and
future bus stops.
16. Fifth Amendment to the Agreement for Professional Services with AECOM
Technical Services, Inc. for the Design of the Mt. Vernon Avenue Overhead
Replacement Project
Recommendation: Adopt Resolution No. 2018-234 of the Mayor and City
Council of the City of San Bernardino, California,
approving a Fifth Amendment to the Agreement for
Professional Services with AECOM Technical
Services, Inc. for the Design of the Mt. Vernon
Avenue Overhead Replacement Project, Bridge No.
54C-0066 and amending the FY 2018/19 Budget.
17. Five-Year Capital Improvement Program (FY 2018/19 to FY 2022/23) for
Measure I Local Expenditures
Recommendation: Adopt Resolution No. 2018-235 of the Mayor and City
Council of the City of San Bernardino, California,
approving the Five-Year Capital Improvement
Program (FY 2018-2023) for Measure I Local
Expenditures.
Joint Regular Meeting Agenda August 15, 2018
Mayor and City Council of the City of San Bernardino Page 6 Printed 8/9/2018
18. Subordination of Deed of Trust in Connection with 6044 Gregory Street San
Bernardino, California
Recommendation: Adopt Resolution No. 2018-236 of the Mayor and City
Council of the City of San Bernardino, California,
acting as the Successor Housing Agency to the
Redevelopment Agency of the City of San
Bernardino, approving a Subordination of a Deed of
Trust in connection with a refinancing of the Senior
Mortgage Relating to real property located at 6044
Gregory Street, San Bernardino, California.
STAFF REPORTS
19. Resolution of Intent to Establish Community Facilities District 2018 -1
(Safety Services) of the City of San Bernardino and Levy Special Taxes on
Property within the District
Recommendation: Adopt Resolution No. 2018-239 of the Mayor and City
Council of the City of San Bernardino, California
declaring its intention to establish Community
Facilities District No. 2018-1 (Safety Services) of the
City of San Bernardino and authorizing the levy of a
special tax on property within the District to pay the
costs of providing public safety services.
20. Resolutions of Intention to Establish Community Facilities District 2018-2
(Verdemont Ranch) of the City of San Bernardino and to Incur Bonded
Indebtedness in an Amount Not to Exceed $5,000,000 for Certain Public
Improvements
Recommendation: 1. Adopt Resolution No. 2018-240 of the Mayor and
City Council of the City of San Bernardino,
California, declaring its intention to establish
Community Facilities District (CFD) No. 2018-2
(Verdemont Ranch) of the City of San Bernardino
to authorize the levy of a special tax to pay the
cost of acquiring or constructing certain facilities,
and to pay debt service on bonded indebtedness,
and
2. Adopt Resolution No. 2018-241 of the Mayor and
City Council of the City of San Bernardino,
California, declaring its intention to incur bonded
indebtedness in an amount not to exceed
$5,000,000 within the proposed CFD No. 2018-2
of the City of San Bernardino.
Joint Regular Meeting Agenda August 15, 2018
Mayor and City Council of the City of San Bernardino Page 7 Printed 8/9/2018
21. Legislative Update
Recommendation: 1. Receive an update on the Legislative Platform;
2. Authorize the Mayor, on behalf of the City of San
Bernardino, to sign a letter of opposition for
proposed Assembly Bill 2495 as introduced; and
3. Authorize the Mayor, on behalf of the City of San
Bernardino, to sign a letter of opposition for
proposed Assembly Bill 2681 as introduced.
22. Ordinance No. MC-1503 -- Amending Chapter 5.10 of the San Bernardino
Municipal Code related to the Regulation of Commercial Cannabis
Activities
Recommendation: Introduce for first reading, Ordinance No. MC-1503,
an Ordinance of the Mayor and City Council of the
City of San Bernardino, California, amending Chapter
5.10 of the San Bernardino Municipal Code related to
the Regulation of Commercial Cannabis Activities.
23. 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 Wednesday, September 5, 2018 in the Council Chamber located
at 201 North “E” Street, San Bernardino, California 92401. Closed Session will
begin at 4:00 p.m. and Open Session will begin at 5:00 p.m.
Joint Regular Meeting Agenda August 15, 2018
Mayor and City Council of the City of San Bernardino Page 8 Printed 8/9/2018
CERTIFICATION OF POSTING AGENDA
I, Georgeann “Gigi” Hanna, CMC, City Clerk for the City of San Bernardino, California, hereby
certify that the agenda for the August 15, 2018 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 in the breezeway of City Hall, 300 North “D”
Street, San Bernardino, California, at the San Bernardino Public Library, and on the City’s
website www.ci.san-bernardino.ca.us on Thursday, August 9, 2018.
I declare under the penalty of perjury that the foregoing is true and correct.
Georgeann “Gigi” Hanna, CMC, City Clerk
NOTICE: Any member of the public may address this meeting of the Mayor and City Council and
the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on
any item appearing on the agenda by approaching the microphone in the Council Chamber when
the item about which the member desires to speak is called and by asking to be recognized.
Any member of the public desiring to speak to the Mayor and City Council and the Mayor and
City Council Acting as the Successor Agency to the Redevelopment Agency concerning any
matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City
Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment
Agency may address the body at the end of the meeting, during the period reserved for public
comments. Said total period for public comments shall not exceed 60 minutes, unless
such time limit is extended by the Mayor and City Council and the Mayor and City
Council Acting as the Successor Agency to the Redevelopment Agency. A three minute
limitation shall apply to each member of the public, unless such time limit is extended by the
Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the
Redevelopment Agency. No member of the public shall be permitted to “share” his/her three
minutes with any other member of the public.
Speakers who wish to present documents to the governing body may hand the documents to
the City Clerk at the time the request to speak is made.
The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to
the Redevelopment Agency may refer any item raised by the public to staff, or to any
commission, board, bureau, or committee for appropriate action or have the item placed on the
next agenda of the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor
discussion held by the Mayor and City Council and the Mayor and City Council Acting as the
Successor Agency to the Redevelopment Agency on any item which does not appear on the
agenda unless the action is otherwise authorized in accordance with the provisions of
subdivision (b) of Section 54954.2 of the Government Code.
Public comments will not be received on any item on the agenda when a public hearing has
been conducted and closed.
Appointment
City of San Bernardino
Request for Council Action
Date: August 15, 2018
To: Honorable Mayor and City Council Members
From: R. Carey Davis, Mayor
By: Renee Brizuela, Administrative Assistant to City Council
Subject: Animal Control Commission
Recommendation
Respectfully request the appointment of Ms. Angela Halfman to the Animal Control
Commission.
Background
The Animal Control Commission was established by Resolution No. 2018-45 on
February 21, 2018 and is charged with advising the Mayor, City Council and City Staff
on matters pertaining to animal control in the City. The commission is also charged with
serving in an advisory capacity on strategies, policies and programs designed to ensure
quality care for animals housed at the City of San Bernardino’s Animal Shelter.
Members are appointed to this commission on the basis of demonstrated knowledge
and experience in the area of animal care, animal husbandry, wild animals, animal
behavior or other areas which relate to the mission and purpose of the commission.
The commission is comprised of nine (9) members who serve at pleasure of the Mayor
and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council
member shall nominate one member who shall serve during and for the term of the
nominating Council member, and the Mayor.
Mayor, City Council and City Manager Goals and Objectives
The proposed commission appointment aligns with Goal Number 5 Improving City
Government Operations by implementing the city charter and appointing commissioners
to the citizen advisory boards with clearly defined roles.
Conclusion
Approve the appointment of Ms. Angela Halfman to the Animal Control Commission.
Fiscal Impact
None
Attachments
Attachment 1 – Commission application
1.a
Packet Pg. 9 Attachment: Council.Commission Appointment - Angela Halfman (5688 : Animal Control Commission)
1.b
Packet Pg. 10 Attachment: Council.Commission Appointment 06-25-2018 - Angela Halfman - 5-Mayor_Redacted (5688 : Animal Control Commission)
1.b
Packet Pg. 11 Attachment: Council.Commission Appointment 06-25-2018 - Angela Halfman - 5-Mayor_Redacted (5688 : Animal Control Commission)
1.b
Packet Pg. 12 Attachment: Council.Commission Appointment 06-25-2018 - Angela Halfman - 5-Mayor_Redacted (5688 : Animal Control Commission)
Appointment
City of San Bernardino
Request for Council Action
Date: August 15, 2018
To: Honorable Mayor and City Council Members
From: R. Carey Davis, Mayor
By: Evelyn Estrada, Assistant to the Mayor
Subject: Arts & Historical Preservation Commission
Recommendation
Respectfully request the appointment of Mr. Hazael Perez Calleros to the Arts &
Historical Preservation Commission.
Background
The Arts and Historical Preservation Commission was established by Resolution No.
2018-97 on April 4, 2018 and is charged with advising the Mayor, City Council and City
Staff on matters pertaining to the arts, culture, and historic preservation and heritage in
the City. The commission is also charged with serving in an advisory capacity to the
Planning Commission in making recommendations relating to the designation,
preservation and protection of historical properties. Appointees to the commission must
have relevant experience or knowledge of visual, performing, literary, and multi-media
arts, cultural and architectural heritage or other areas which relate to the mission and
purpose of the commission.
The commission is comprised of nine (9) members who serve at pleasure of the Mayor
and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Council
member shall nominate one member who shall serve during and for the term of the
nominating Council member, and the Mayor.
Mayor, City Council and City Manager Goals and Objectives
The proposed commission appointment aligns with Goal Number 5 Improving City
Government Operations by implementing the city charter and appointing commissioners
to the citizen advisory boards with clearly defined roles.
Conclusion
Approve the appointment of Mr. Hazael Perez Calleros to the Arts & Historical
Preservation Commission.
Fiscal Impact
None
Attachments
Attachment 1 – Commission application and resume
2.a
Packet Pg. 13 Attachment: Council.Commission Appointment - Hazael Perez Calleros (5689 : Arts & Historical Preservation Commission)
2.b
Packet Pg. 14 Attachment: Council.Commission Appointment.06-01-2018 - Hazael Josafat Perez Calleros -Ward7 -Mayor_Redacted (5689 : Arts & Historical
2.b
Packet Pg. 15 Attachment: Council.Commission Appointment.06-01-2018 - Hazael Josafat Perez Calleros -Ward7 -Mayor_Redacted (5689 : Arts & Historical
2.b
Packet Pg. 16 Attachment: Council.Commission Appointment.06-01-2018 - Hazael Josafat Perez Calleros -Ward7 -Mayor_Redacted (5689 : Arts & Historical
2.b
Packet Pg. 17 Attachment: Council.Commission Appointment.06-01-2018 - Hazael Josafat Perez Calleros -Ward7 -Mayor_Redacted (5689 : Arts & Historical
2.b
Packet Pg. 18 Attachment: Council.Commission Appointment.06-01-2018 - Hazael Josafat Perez Calleros -Ward7 -Mayor_Redacted (5689 : Arts & Historical
Consent Calendar
City of San Bernardino
Request for Council Action
\
Date: August 15, 2018
To: Honorable Mayor and City Council Members
From: Gigi Hanna, City Clerk
Subject: Waive Full Reading of Resolutions and Ordinances
Recommendation:
Waive full reading of Resolutions and Ordinances on the agenda dated August 15,
2018.
8.a
Packet Pg. 19 Attachment: Waive Reading.Report_August 15 (5690 : Waive Full Reading of Resolutions and Ordinances)
9.a
Packet Pg. 20 Attachment: FN-Commercial Checks Payroll Report Aug 15, 2018 (5691 : City Council Approval of Commercial and Payroll Checks)
2018-2019 Goals and Objectives
Approval of the noted check registers for commercial and payroll checks align with Goal
No. 6: Operate in a Fiscally Responsible and Business-Like Manner. The Mayor and
City Council’s approval of the City’s weekly remittances to third parties promotes
transparency of City business with the public.
Fiscal Impact
Amounts noted in the check registers have no further fiscal impact. Amounts were paid
consistent with existing budget authorization and no further budgetary impact is
required.
Conclusion
It is recommended that the attached check registers be approved by the Mayor and City
Council.
Attachments
Attachment 1 – Commercial checks for Register #4
Attachment 2 – Commercial checks for Register #5
Attachment 3 – Payroll checks for July 26, 2018
Ward:
Synopsis of Previous Council Actions:
9.a
Packet Pg. 21 Attachment: FN-Commercial Checks Payroll Report Aug 15, 2018 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 22Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 23Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 24Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 25Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 26Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 27Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 28Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 29Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 30Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 31Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 32Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 33Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 34Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 35Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 36Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 37Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 38Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 39Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 40Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 41Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 42Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 43Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 44Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 45Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 46Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 47Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 48Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 49Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 50Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 51Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.bPacket Pg. 52Attachment: FN-Commercial Checks & Payroll. Register #4 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 53Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 54Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 55Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 56Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 57Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 58Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 59Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 60Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 61Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 62Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 63Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 64Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 65Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 66Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 67Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 68Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 69Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 70Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
9.cPacket Pg. 71Attachment: FN-Commercial Checks & Payroll. Register #5 (5691 : City Council Approval of Commercial and Payroll Checks)
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programmed the Anne Shirrells Community Center at a reduced rental rate. The
programming provided by AUC positively engages the local community by providing
many services addressing education, recreation, sports, and special interests.
AUC desires a multi-year lease agreement for the use of the Anne Shirrells Community
Center. The multi-year lease agreement will allow AUC to more competitively write and
secure grants for the programs and services that are offered to the local community. A
multi-year lease agreement will allow AUC to meet basic grant requirements and also to
secure additional partnerships that will assist them in continuing to provide quality
services and programs.
Discussion
This agreement is for the lease of the Anne Shirrells Community Center for facility use
by AUC for the purpose of providing program services to low income and at-risk youth
within the immediate community and all San Bernardino residents.
The program will operate Monday through Friday from 8:00 a.m. to 7:00 p.m., and
Saturday, 10:00 a.m. to 5:00 p.m. Programs services will include:
• Sports (basketball, baseball, volleyball, soccer, fitness, yoga, outdoor activities)
• Art (performing arts, artwork presentation)
• Community Socialization (stop the violence rallies, adopt-a-community planning
and recruiting, local service organization mixers)
• Educational support (school tutoring, adult learning, entrepreneurial mentorship)
• Healthy lifestyles (community garden)
The City endeavors to partner with other agencies within the community to provide
services and to continue occupancy and activities. AUC will partner with the City to
provide much needed services at this facility. This partnership meets the City’s goal of
community engagement for residents through community support and participation,
cultivating strong neighborhood relationships.
2018-19 Goals and Objectives
Authorization of Akoma Unity Center to utilize the facility at Anne Shirrells Community
Center aligns with Goal No 2: Utilize City programs to reduce crime and ensure that
neighborhoods and business areas are safe and Goal No 7: Pursue City Goals and
Objectives by Working with Other Agencies.
Fiscal Impact
For the three (3) year lease agreement, the City will receive $36,288 in total revenue
(Year One - $12,096; Year Two - $12,096; Year Three - $12,096).
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt Resolution No. 2018-208 authorizing the City Manager to execute a
August 9, 20185:06 PM
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Lease Agreement with Akoma Unity Center for the facility use of the Anne Sherrills
Community Center.
Attachments
Attachment 1 Resolution – Exhibit “A” Lease Agreement with Akoma Unity Center
Attachment 2 Akoma Unity Center Operation Plan
Attachment 3 Letters of Support
Attachment 4 Non-Profit Status Doc 501(c) (3)
Attachment 5 Resolution No 2016-171 Council Approval of Lease Agreement with
United Nations of Consciousness
Attachment 6 Lease Agreement with United Nations of Consciousness
Ward: 6
Synopsis of Previous Council Actions:
On June 6, 2016 the Mayor and City Council adopted Resolution No. 2016-171, approving an
agreement with United Nations of Consciousness for Use of Anne Shirrells Community Center.
August 9, 20185:06 PM
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RESOLUTION NO. 2018-208
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE
A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
AKOMA UNITY CENTER FOR USE OF ANNE SHIRRELLS COMMUNITY CENTER
FROM JULY 1, 2018 THROUGH JUNE 30, 2021
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
SECTION 1. That the City Manager is hereby authorized to execute a lease agreement,
between the City of San Bernardino and Akoma Unity Center for the use of Anne Shirrells
Community Center, located at 1367 N. California Street, San Bernardino, CA 92411, a copy of
which is attached hereto, marked Exhibit “A” and incorporated herein by references as fully as
though set forth at length.
SECTION 2. The monthly rent shall be set as $1088.00 per month.
SECTION 3. That the authorization granted hereunder shall expire and be void and of
no further effect if the agreement is not executed by both parties and returned to the office of the
City Clerk within sixty (60) days following the effective date of the resolution.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE
A LEASE AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND
AKOMA UNITY CENTER FOR USE OF ANNE SHIRRELLS COMMUNITY CENTER
FROM JULY 1, 2018 THROUGH JUNE 30, 2021
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a ____________ meeting thereof, held on the
_______ day of __________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this ________ day of ______________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: _________________________
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LEASE AGREEMENT
between the
CITY OF SAN BERNARDINO
and
AKOMA UNITY CENTER, INC.
CITY: CITY OF SAN BERNARDINO
290 North “D” Street
San Bernardino, CA 92418
LESSEE: AKOMA UNITY CENTER, INC.
985 Kendall Drive, Suite A319
P.O. Box 319
San Bernardino, CA 92407
PREMISE ADDRESS: Anne Shirrells Community Center
1367 North California Street
San Bernardino, CA 92411
TERM OF LEASE: Three (3) Years with Two (2) One-year Options
COMMENCEMENT: _____/____, 2018
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1. PARTIES.
This lease AGREEMENT (the “AGREEMENT”) is entered into this _____ day of _________, 2018
(“Effective Date”), by and between the Akoma Unity Center, Inc. (“LESSEE”) a corporation
incorporated under the laws of the State of California and the City of San Bernardino a charter city
and municipal corporation (“CITY”). (Individually CITY and LESSEE may be referred to as a
“PARTY” and collectively CITY and LESSEE may be referred to as the “PARTIES”)
2. PREMISES LEASED.
CITY leases to LESSEE and LESSEE leases from CITY the Anne Shirrells Community Center (the
“PREMISES”), a 4,200 square foot community center at Anne Shirrells Park. The PREMISES is
located at 1367 N. California Street in the city of San Bernardino and the County of San Bernardino
and contains open recreation area, four (4) offices, restrooms and a break room.
3. TERM.
The AGREEMENT’s initial term (“INITIAL TERM”) shall commence Effective Date
(“COMMENCEMENT DATE”) and end on June 30, 2021 (“ENDING DATE”).
4. RENT.
4.1 LEESSEE shall pay to CITY the following rental payments in advance on the first day of
each month, commencing on COMMENCEMENT DATE, and continuing through the
INITIAL TERM.
Year One (1) [commencement date through June 30, 2019] $1,008.00 per month
Year Two (2) [July 1, 2019 through June 30, 2020] $1,008.00 per month
Year Three (3) [July 1, 2020 through June 30, 2021] $1,008.00 per month
4.2 Rent for any partial month shall be prorated based on the actual number of days of the
month. CITY shall accept all rent and other payments from LESSEE under this
AGREEMENT via electronic funds transfer directly deposited into the CITY’s
designated checking or other bank account or any other means mutually agreed upon by
the CITY and LESSEE. CITY shall provide to LESSEE all directions, information, and
forms necessary to process EFT payments.
5. OPTION TO EXTEND TERM.
CITY gives to LESSEE the option to extend the term of the LEASE on the same provisions and
conditions, except for monthly rent, for two (2) one-year periods (“EXTENDED TERMS”) following
expiration of the INITIAL TERM, by LESSEE giving notice of its intention to exercise the option to
CITY within thirty (30) days’ prior to the expiration of the preceding term or during any holding over
pursuant to SECTION 7, HOLDING OVER. The rent for each extended term shall be adjusted by
good faith negotiations of the PARTIES to the fair market rental rate then prevailing based on the
rental rates of comparable leased property in the City of San Bernardino. The extensions and monthly
rate adjustments will be pursuant to written authorization of the City Manager. This Agreement may
be terminated at any time upon thirty (30) days written notice by either party.
6. RETURN OF PREMISES.
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The LESSEE agrees that it will, upon termination of the AGREEMENT, return the PREMISES in
good condition and repair as the PREMISES now are or shall hereafter be put; reasonable wear and
tear accepted.
7. HOLDING OVER.
In the event the LESSEE shall hold over and continue to occupy the PREMISES with the consent of
the CITY, whose consent shall only be given in writing, and may be pursuant to the written
authorization of the City Manager only, and in the sole discretion of CITY, the tenancy shall be
deemed to be a tenancy from month-to-month upon the same terms and conditions, including rent, as
existed and prevailed at the time of the expiration of the term of this AGREEMENT.
8. TAXES.
CITY shall pay all real property taxes, and general and special assessments levied and assessed
against the PREMISES.
9. USE.
LESSEE shall occupy and use the PREMISES during the term hereof exclusively for the operation of
the agreed upon Anne Shirrells Community Center Operations Plan and in compliance with all
federal, state and local laws. LESSEE shall provide the CITY verification that all staff, instructors,
and volunteers who will be working with minors have submitted to and passed Live-Scan background
checks prior to assignment and renewed annually.
10. HEALTH, SAFETY, AND FIRE CODE REQUIREMENTS.
10.1 CITY shall, at its sole expense, ensure that the PREMISES meets applicable requirements
of all Health, Safety, Fire and Building Codes, statues, regulations and ordinances for
public and governmental buildings including any requirements for a notice of completion,
certificate of occupancy, or California Title 24 requirements.
10.2 CITY shall, at its sole expense, ensure that the PREMISES meet the applicable
requirements of the Americans with Disabilities Act (“ADA”).
11. SIGNS.
LESSEE will display from windows and/or marquee of the PREMISES only such sign or signs as are
not prohibited by law.
12. MAINTENANCE.
12.1 CITY shall, at its sole expense, perform such inspections, maintenance and repairs are
necessary to ensure that all portions of the PREMISES, including but not limited to the
following, are at all times in good repair and safe conditions;
12.1.1 The structural parts of the building an d other improvements that are a part of the
PREMISES, which structural parts include the foundations, bearing and exterior
walls (including glass and doors), subflooring, and roof; and,
12.1.2 The electrical, plumbing, and sewage systems, including, without limitations, those
portions of the systems, including, without limitation, those portions of the systems
owned or controlled by CITY lying outside the PREMISES; and,
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12.1.3 Window frames, gutters, and downspouts on the building and other improvements
that are part of the PREMISES; and,
12.1.4 Heating, ventilation and air conditioning (HVAC) systems servicing the PREMISES
including changing heating and air-conditioning filters every four (4) months; and,
12.1.5 The grounds, including all parking areas and outside lighting, grass, trees, shrubbery
and other flora; and,
12.1.6 LESSEE shall, at its sole expense, provide janitorial services, keep the interior of the
PREMISES in a clean and orderly condition, reasonable wear and tear excluded, and
undertake minor maintenance of the interior PREMISES such as unstoppage of
toilets and changing of light bulbs and servicing of the fire extinguisher or any other
fire suppression equipment attached to the facility.
12.1.7 LESSEE shall at regular intervals, but no less than monthly, conduct an inspection of
the PREMISES to determine if any maintenance or repair is necessary. LESSEE
shall communicate the necessity for maintenance or repair to the CITY in writing in
conformity with Section 24, NOTICE. If LESSEE gives notice to CITY of a
condition requiring maintenance or repair, CITY shall use its best efforts to diligently
commence the performance of its maintenance or repair obligations within a
reasonable time of receiving such notice. In the case of an emergency where
maintenance or repair must occur immediately and CITY is unable to perform its
obligation to maintain or repair immediately, LESSEE may perform maintenance or
repair. CITY shall deduct the sum of LESSEE’s actual and reasonable expenses of
performing emergency maintenance or repair from LESSEE’s future rental payments
until LESSEE is reimbursed in full upon presentation of receipts and/or other
documentation supporting the amount expended.
13. ALTERATIONS.
LESSEE shall not make any structural or exterior improvements or alterations to the PREMISES
without CITY’s consent. Any such alterations shall remain on and be surrendered with the
PREMISES on expiration or termination of the AGREEMENT.
14. FIXTURES.
LESSEE shall have the right during the term(s) of this AGREEMENT to install shelving and fixtures,
and make interior, non-structural improvements or alterations on the PREMISES. Such shelving,
fixtures, improvements, and alterations shall remain the property of the LESSEE and may be removed
by the LESSEE during the term(s) of this AGREEMENT or within a reasonable time thereafter,
provided that the LESSEE restores the PREMISES to the condition as it existed at the
commencement of this AGREEMENT, reasonable wear and tear excluded, or the LESSEE may elect,
with CITY’s written consent to be given at CITY’s sole discretion, to surrender all or any part of such
shelving, fixture, improvements and alterations, to the CITY, in which case LESSEE shall have no
duty to restore the PREMISES.
15. UTILITIES.
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CITY shall furnish to the PREMISES and CITY shall pay all service charges and related taxes for
electric, gas, water, fire alarm services and all other utilities. LESSEE shall furnish and pay for its
own security, telephone, cable, internet services and will contract with Burrtec for trash services.
16. HOLD HARMLESS.
LESSEE agrees to and shall indemnify and hold the CITY, its elected officials, employees, agents or
representative, free and harmless from all claims, actions, damages and liabilities of any kind and
nature arising from bodily injury, including death, or property damage, based or asserted upon any
actual or alleged act or omission of LESSEE, its employees, agents, or subcontractors, arising,
relating to, or in any way connected with the performance under this AGREEMENT, unless the
bodily injury or property damage was actually caused by the sole negligence of the CITY, its elected
officials, employees, agents or representative. As part of the foregoing indemnity, LESSEE agrees to
protect and defend at its own expense, including attorney’s fees, the CITY, its elected officials,
employees, agents or representative from any and all legal actions based upon such actual or alleged
acts or omissions. LESSEE hereby waives any and all rights to any types of express or implied
indemnity against the CITY, its elected officials, employees, agents or representatives, with respect to
third party claims against the LESSEE relating to or in any way connected with the accomplishment
of work or performance of services under this AGREEMENT.
17. INSURANCE.
17.1 CITY is a self-insured public entity for the purposes of professional liability, general
liability, and workers’ compensation.
17.2 LESSEE shall obtain and maintain during the life of the AGREEMENT all of the
following insurance coverage:
17.2.1 Comprehensive general liability, including premises-operations,
products/completed operations, broad form property damage blanket contractual
liability, fire, premises liability, and personal injury with a policy limit of not less
than One Million Dollars ($1,000,000.00), combined single limits, per
occurrence and aggregate.
17.2.2 Automobile liability for owned vehicles, hired and non-owned vehicles, with
policy limit of not less than One Million Dollars ($1,000,000.00), combined
single limits, per occurrence and aggregate.
17.2.3 Workers’ compensation insurance as required by the State of California.
17.3 The comprehensive general liability insurance policy shall contain or be endorsed to
contain the following provision:
17.3.1 Additional insureds: “The City of San Bernardino and its elected and appointed
boards, officers, agents, and employees are additional insureds with respect to
this subject project and contract with City.”
17.3.2 Notice: “Said policy shall not terminate, nor shall it be cancelled, nor the
coverage reduced, until thirty (30) days after written notice is given to City.”
17.3.3 Other insurance: “Any other insurance maintained by the City of San Bernardino
shall be excess and not contributing with the insurance provided by this policy.”
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17.4 LESSEE shall provide the CITY certificates of insurance showing the insurance
coverages and required endorsements described above, in a form and content approved
by CITY, prior to performing any services under this AGREEMENT.
17.5 Nothing in this Section shall be construed as limiting in any way, the indemnification
provision contained within this AGREEMENT, or the extent to which LESSEE may be
held responsible for payments of damages to persons or property.
18. DESTRUCTION OF PREMISES.
18.1 During the term(s) of this AGREEMENT, if any casualty, other than resulting from
LESSEE’s use of the PREMISES, renders a portion of the PREMISES unusable for the
purpose intended, then CITY shall, at CITY’s sole expense, restore the PREMISES and
repair any damages caused by such casualty as soon as reasonable possible and this
AGREEMENT shall continue in full force and effect. If CITY does not commence the
restoration of the PREMISES in a substantial and meaningful way within thirty (30) days
following the CITY’s receipt of written notice of the casualty, or should CITY fail to
diligently pursue completion of the restoration of the PREMISES, or if the time required
to restore the PREMISES is estimated to exceed ninety (90) days, LESSEE may, at its
option, terminate this AGREEMENT immediately upon written notice to the CITY. If
LESSEE elects to terminate this AGREEMENT pursuant to this section, LESSEE shall
be discharged from all future obligations under this AGREEMENT.
18.2 In the event there is a destruction of a portion of the PREMISES as set out in Subsection
18.1 above, there shall be an abatement or reduction in the rent between the date of the
destruction and the date of completion of the restoration or the date of termination of the
AGREEMENT, whichever comes first. The abatement or reduction in rent shall be in
proportion to the degree to which LESSEE’s use of the PREMISES is impaired.
18.3 In the event the CITY is required to restore PREMISES as provided in Subsection 18.1
above, CITY shall not be required to restore any structure or exterior improvements or
alterations made to the PREMISES by LESSEE pursuant to Section 13, Alterations above
or any shelving, fixtures, or interior nonstructural improvement or alterations made by
LESSEE pursuant to Section 14, Fixtures above.
18.4 If any casualty resulting from LESSEE’s use of the PREMISES renders the PREMISES
unusable for the purposes intended, or for any other purpose, then LESSEE shall, at
LESSEE’s sole expense, restore the PREMISES and repair any damages caused by such
casualty as soon as reasonable possible and this AGREEMENT shall continue in full
force and effect.
18.5 It is the purpose and intent of Subsections 18.1 through 18.4, inclusive, to determine what
PARTY shall bear the initial responsibility for restoration of the PREMISES in the event
of any such destruction and not to determine the PARTY ultimately responsible for the
costs of such restoration.
19. CITY’S DEFAULT.
Except where another time limit is specifically provided, CITY shall be in default of this
AGREEMENT if CITY fails or refuses to perform any material provisions of this AGREEMENT and
such failure or refusal to perform is not cured within thirty (30) days following CITY’s receipt of
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written notice of default from LESSEE. If the default cannot be reasonable cured within thirty (30)
days, CITY shall not be in default of this AGREEMENT if City commences to cure the default within
the thirty (30) day period and diligently and in good faith continues to cure the default.
20. LESSEE’S REMEDIES ON CITY’S DEFAULT.
LESSEE, at any time after CITY is in default, can terminate this AGREEMENT immediately upon
written notice to CITY or can cure the default. If LESSEE at any time, by reasons of CITY’s default,
pays any sum or does any act that requires the payment of any sum, the sum paid by LESSEE shall
have the right to withhold from future rent due the sum LESSEE has paid until LESSEE is
reimbursed in full for the sum. The remedies set forth in this section are in addition to and do not in
any manner limit other remedies set forth in particular sections of this AGREEMENT.
21. LESSEE’S DEFAULT.
The occurrence of any one or more of the following event shall constitute a default of breach of this
AGREEMENT by LESSEE:
21.1 The vacating for more than thirty (30) consecutive days or abandonment of the
PREMISES by LESSEE.
21.2 The failure of LESSEE to perform any material provisions of this AGREEMENT to be
performed by LESSEE, including the payment of rent, upon written notice by the CITY
to LESSEE.
21.3 It is not the purpose of this section to extend the notice requirements of the unlawful
detainer statues in California.
22. CITY’S REMEDIES ON LESSEE’S DEFAULT.
It is not the purpose of this section to extend the notice requirements of the unlawful detainer statues
in California. The remedies contained herein are in addition to, and not in lieu of, any other remedies
available to CITY under relevant state law.
22.1 In the event of any default by LESSEE, which is not cured by LESSEE, CITY may at its
election, terminate this AGREEMENT by giving LESSEE thirty (30) days’ notice of
termination.
22.2 On termination of this AGREEMENT for default pursuant to this section CITY shall
have the right to recover from LESSEE all amounts for any and all damages, which may
be the direct or indirect result of such default, including, but not limited to:
22.2.1 The worth, at the time of the award, of the unpaid rent that has been earned at the
time of the termination of the AGREEMENT; and,
22.2.2 The worth, at the time of the award, of the amount by which unpaid rent that
would have been earned after the date of termination of this AGREEMENT until
the time of award exceeds the amount of the loss of rent that CITY proves could
not have been reasonable avoided; and,
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22.2.3 The worth, at the time of the award, of the amount by which the unpaid rent for
the balance of the term after the time of award exceeds the amount of the loss of
rent that CITY proves could not have been reasonably avoided; and,
22.2.4 Any other amount of necessary to compensate the CITY for all detriment
proximately caused by LESSEE’s default which CITY proves could not have
been reasonably avoided.
22.2.5 “The worth, at the time of the award”, as used in this section is to be computed
by allowing interest at the maximum rate CITY is permitted by law to charge or
computed by discounting the amount at the discount rate of the Federal Reserve
Bank of San Francisco at the time of the award, plus one percent (1%).
23. CITY’S ACCESS TO PREMISES.
CITY and its authorized representative shall have the right to enter the PREMISES at all reasonable
times for any of the following conditions:
23.1 To determine whether the PREMISES are in good condition; and,
23.2 To do any necessary maintenance and to make any restoration to the PREMISES that
CITY has the right or obligation to perform; and,
23.3 To serve, post, or keep posted any notices required by law; and,
23.4 To show the PREMISES to prospective brokers, agents, buyers, tenants, lenders or
persons interested in an exchange, at any time during the term; and,
23.5 For any other lawful purpose.
CITY shall conduct its activities on the PREMISES as allowed in this section in a manner that will
reduce possible inconvenience, annoyance, or disturbance to LESSEE.
24. NOTICES
Any notices, documents, correspondence, or other communication concerning this AGREEMENT or
the services provided hereunder may be provided by personal delivery or U.S. Mail. If personally
delivered the notice shall be deemed delivered at the time of personal delivery. If sent by U.S. Mail
the notice shall be deemed delivered forty-eight (40) hours after deposit in the U.S. Mail as reflected
by the official U.S. postmark.
TO THE CITY: TO THE LESSEE:
Jim Tickemyer, Director Kimberly Calvin, Executive Director
City of San Bernardino Parks, Recreation and Akoma Unity Center
Community Services 985 Kendall Drive, Suite A319
290 North D Street P.O. Box 319
San Bernardino, CA 92401 San Bernardino, CA 92407
(909) 384-5233 (909) 217-7956
Either PARTY may change the address for delivery of notices by sending notice of the change to the
other PARTY in conformity with this Section.
25. ASSIGNMENT.
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LESSEE shall not voluntarily or by operation of law assign, transfer, sublet or encumber all or any
part of the LESSEE’s interest in this AGREEMENT without CITY’s prior written consent. Any
attempted assignment, transfer, subletting or encumbrance shall be void and shall constitute a breach
of this AGREEMENT and cause for the termination of this AGREEMENT. Regardless of CITY’s
Consent, no subletting or assignment shall release LESSEE of LESSEE’s obligation to perform all
other obligations to be performed by LESSEE hereunder for the term of this AGREEMENT.
26. ENTIRE AGREEMENT.
This AGREEMENT constitutes the entire agreement and the understanding between the PARTIES,
and supersedes any prior agreements and understanding relating to the subject matter of this
AGREEMENT.
27. REMEDIES: WAIVER.
All remedies available to either PARTY for one or more breaches by the other PARTY shall be
deemed cumulative and may be exercised separately or concurrently without waiver of any other
remedies.
The delay or failure of either PARTY to require performance or compliance of the other of any of its
obligations under this AGREEMENT shall in no way be deemed a waiver of those rights to require
such performance or compliance. No waiver of any provisions of this AGREEMENT shall be
effective unless made in writing and signed by a duly authorized representative of the PARTY against
whom it is sought. The waiver of any right or remedy with respect to any occurrence or event shall
not be deemed a waiver of such right or remedy with respect to any future occurrences or events and
shall not be deemed a continuing waiver.
28. AMENDMENT.
No amendment to this AGREEMENT will be effective unless it is in writing and signed by both
PARTIES.
29. SUCCESSORS AND ASSIGNS.
This AGREEMENT shall be binding on and inure to the benefit of the PARTIES to this
AGREEMENT and their respective heirs, representative, successors, and assigns.
30. SEVERABILITY
If any provision of this AGREEMENT is determined by a court of competent jurisdiction to be
invalid or unenforceable for any reason, such determination shall not affect the validity or
enforceability of the remaining terms and provisions hereof or of the offending provisions in any
other circumstance, and the remaining provisions of this AGREEMENT shall remain in full force and
affect.
31. TIME IS OF THE ESSENCE.
Time is of the essence of each provision of this AGREEMENT which specifies a time within which
performance is to occur. In the absence of any specific time for performance, performance may be
within a reasonable time.
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32. QUIET ENJOYMENT.
Subject to the provisions of this AGREEMENT and conditioned upon performance of all the
provisions to be performed by LESSEE hereunder, CITY shall secure to LESSEE during the
AGREEMENT term the quiet and peaceful possession of the PREMISES and all rights and privileges
appertaining thereto.
33. PROVISIONS ARE COVENANTS AND CONDITIONS.
All provision, whether covenants or conditions, on the part of either PARTY shall be deemed both
covenants and conditions.
34. CONSENT.
Whenever consent or approval of either PARTY is required that PARTY shall not unreasonable
withhold, condition, or delay such consent or approval, unless the provision providing for such
consent or approval specifically provides such consent or approval may be given in the PARTY’s
discretion.
35. EXHIBITS.
All exhibits referred to are attached to this AGREEMENT and incorporated by reference.
36. LAW.
This AGREEMENT shall be governed and construed under the laws of the State of California without
giving effect to that body of laws pertaining to conflict of laws.
37. VENUE.
The parties hereto agree that all actions or proceedings arising in connection with this AGREEMENT
shall be tried and litigated either in the Superior Court of the Stat of California for the County of San
Bernardino or the United States District Court for the Central District of California, Riverside
Division. The aforementioned choice of venue is intended by the parties to be mandatory and not
permissive in nature.
38. ATTORNEY’S FEES AND COSTS.
In the event that litigation is brought by any PARTY in connection with this AGREEMENT, the
prevailing party shall be entitled to recover from the opposing party all costs and expenses, including
reasonable attorneys’ fees, incurred by the prevailing PARTY in the exercise of any of its rights or
remedies hereunder or the enforcement of any of the terms, conditions or provisions enforcing this
AGREEMENT on behalf of the CITY shall be considered as “attorneys’ fees” for the purposes of
this section.
39. RIGHT TO TERMINATE.
This AGREEMENT may be terminated at any time by thirty (30) days written notice by either
PARTY for any reason or no reason. In the event that LESSEE terminates this AGREEMENT
pursuant to this section, the CITY shall have the right to receive from LESSEE only the rent which
would have been earned at the date of termination of this AGREEMENT.
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40. HEADINGS.
The subject headings of the sections of this AGREEMENT are included for the purposes of
convenience only and shall not affect the construction or the interpretation of any of its provisions.
41. SURVIVAL.
The obligations of the PARTIES that, by their nature, continue beyond the term of the
AGREEMENT, will survive the termination of the AGREEMENT.
42. ESTOPPEL CERTIFICATE.
Each PARTY within thirty (30) days after notice from the other PARTY shall execute and deliver to
the other PARTY, in recordable form, a certificate stating that this AGREEMENT is unmodified and
in full force and effect, or in full force and effect as modified, and stating the modifications. The
certificate also shall state the amount of minimum monthly rent, the dates to which the rent has been
paid in advance, the amount of any security deposit or prepaid rent, and that there are not uncured
defaults or specifying in reasonable detail the nature of any uncured default claimed. Failure to
deliver this certificate within thirty (30) days shall be conclusive upon the PARTY requesting the
certificate any successor to the PARTY requesting the certificate, that this AGREEMENT is in full
force and effect and has not be modified except as may be represented by the PARTY requesting the
certificate, and that there are not uncured defaults on the part of the PARTY requesting the certificate.
43. PUBLIC RECORDS DISCLOSURE.
All information received by the CITY concerning this AGREEMENT, including the AGREEMENT
itself, may be treated as public information subject to disclosure under the provisions of the California
Public Records Act, Government Code Section 6250 et seq. (the “Public Records Act”). The
PARTIES understand that although all materials received in connection with this AGREEMENT are
intended for the exclusive use of the PARTIES, they are potentially subject to disclosure under the
provisions of the Public Records Act.
44. CONDITIONS OF PREMISES.
The CITY shall take reasonable efforts to deliver the PREMISES to LESSEE clean and free of debris
on the COMENCEMENT DATE but makes no warranty as to the condition of the PREMISES on
COMMENCEMENT DATE or the PREMISES’ suitability for a particular use. LESSEE agrees that
it has not relied upon any representation by CITY as to the condition of the PREMISES or the
PREMISES’ suitability for a particular use when determining whether to enter into this
AGREEMENT.
45. CONDEMNATION.
If any legally, constituted authority condemns the PREMISES or such part thereof which shall make
the PREMISES unsuitable for leasing, this AGREEMENT shall cease when the public authority takes
possession, and CITY and LESSEE shall account for rental as of that date. Such termination shall be
without prejudice to the rights of either PARTY to recover compensation from the condemning
authority for any loss or damage caused by the condemning authority.
46. MATERIAL REPRESENTATION.
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If during the course of the administration of this AGREEMENT, a PARTY determines that the other
PARTY has made a material misstatement or misrepresentation or that materially inaccurate
information has been provided to the PARTY, this AGREEMENT may be immediately terminated.
If this AGREEMENT is terminated according to this section, the terminating PARTY is entitled to
pursue any available legal remedies.
47. INTERPRETATIONS.
The PARTIES have participated jointly in the negotiation and drafting of this AGREEMENT. In the
event an ambiguity or question of intent or interpretation arises with respect to this AGREEMENT,
this AGREEMENT shall be construed as if drafted jointly by the PARTIES and in accordance with
its fair meaning. There shall be no presumption or burden of proof favoring or disfavoring any Party
by virtue of authorship of any of the provisions of this AGREEMENT.
48. COUNTERPARTS.
This AGREEMENT may be executed in counterparts, each of which shall be deemed to be an
original, but all of which taken together, shall constitute one and the same agreement. In the event
that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format file,
such signature shall create a valid and binding obligation of the PARTY executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.
49. CORPORATE AUTHORITY.
Each person executing this AGREEMENT on behalf of the PARTIES hereto warrant that they are
duly authorized to execute this AGREEMENT on behalf of said PARTIES and that by doing so; the
PARTIES hereto are formally bound to the provisions of this AGREEMENT.
50. ORDER OF PRECEDENCE.
In the event of any inconsistency or conflict in this AGREEMENT and any of the attached Exhibits or
Attachments, the terms set forth in this AGREEMENT shall prevail.
51. FORCE MAJEURE.
A PARTY shall not be liable for any failure or delay in the performance of this AGREEMENT for
the period that such failure or delay is due to causes beyond its reasonable control, including but not
limited to acts of God, war strikes or labor disputes, embargoes, governmental orders or any other
force majeure event.
52. COMPLIANCE WITH LAW.
LESSEE agrees to abide by all federal, state, and local laws, ordinances and regulations.
53. NON-DISCRIMINATION.
In the performance of this AGREEMENT, use of the PREMISES, and in the hiring and recruitment
of employees, LESSEE shall not engage in, nor permit its officers, employees or agents to engage in,
discrimination in employment of persons because of their race, religion, color, national origin,
ancestry, age, mental or physical disability, medical condition, marital status, sexual gender or sexual
orientation, or any other status protected by law.
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[Signature page to follow]
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IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and date
set forth below.
CITY OF SAN BERNARDINO VENDOR:
By: ____________________________ by: ___________________________
Andrea M. Miller, City Manager (Name)
Date: __________________________ Title: __________________________
Date: __________________________
Approved as to Legal Form:
GARY D. SAENZ, City Attorney
City of San Bernardino
By: ______________________________
Date: ____________________________
ATTEST:
By: ______________________________
Georgeann Hanna, CMC, City Clerk
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Packet Pg. 129 Attachment: PW.QLE Street Light Broadmoor Blvd Report (5693 : Award of Construction Contract for Street Light Improvement at Broadmoor
Name of Bidder City Amount of Basic Bid
Espinoza Electric - QLE Bloomington $528,176.40
DBX, Inc. Temecula $628,273.00
Calpromax Engineering Tustin $642,000.00
PTM General Engineering Services, Inc. Riverside $647,047.00
Belco Elecnor Group Chino $664,000.00
Comet Electric Chatsworth $674,147.00
Sturgeon Electric California, LLC Chino $731,590.00
The lowest apparent bidder is Quality Light and Electrical (QLE) of Bloomington,
California, with a base bid of $528,176.40. City Staff has reviewed all seven bid
packages and confirmed Quality Light and Electrical is the lowest responsible and
responsive bidder. If awarded by the Mayor and City Council, construction is
anticipated to begin in September 2018 and to be substantially complete by January
2019.
2018- 19 Goals and Objectives
This project is consistent with Goal No. 4: Ensure Development of a Well-Planned,
Balanced, and Sustainable City. This project construction agreement will provide
infrastructure designed for long term economic growth.
Fiscal Impact
Funding in the amount $625,000 exists in account No. 126-160-5504-8675 to fund this
project. The estimated project costs and funding are summarized below.
Estimated Project Cost
Base Bid Amount $528,176.40
Construction Contingency $ 52,817.60
Engineering and Inspections $ 44,006.00
Total Estimated Project Cost $625,000.00
Estimated Funding
Broadmoor Blvd Street Light
Improvement (Gas Tax) $625,000.00
Total Estimated Funds $625,000.00
8/9/2018 11:30 AM
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Packet Pg. 130 Attachment: PW.QLE Street Light Broadmoor Blvd Report (5693 : Award of Construction Contract for Street Light Improvement at Broadmoor
Conclusion:
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, approve Resolution No. 2018-229, awarding a construction contract to
Quality Light and Electrical (QLE) of Bloomington in the amount of $528,176.40 and
authorizing a construction contingency in the amount $52,817.60, authorizing the City
Manager or designee to sign all necessary documents; and authorizing the City
Manager to expend the contingency fund, if necessary, to complete the project per
Special Provisions No. 13219 of the Street Light Improvement for Broadmoor Blvd.
Attachments
Attachment 1 Resolution
Attachment 2 Agreement
Attachment 3 Tabulation (PDF)
Attachment 4 Bid Form & Specification No. 13219 - Street Light Improvement for
Broadmoor Blvd
Ward: All
Synopsis of Previous Council Actions:
06-21-2017 Resolution No. 2017- 118 adopted the City’s final budget document for FY
2017/18
06-20-2018 Resolution No. 2018-189 approving Capital Improvement Program FY 2018/19.
8/9/2018 11:30 AM
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RESOLUTION NO. 2018-229
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A CONSTRUCTION CONTRACT
WITH QUALITY LIGHT AND ELECTRICAL (QLE) IN THE AMOUNT OF
$528,176.40; AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE
AMOUNT OF $52,817.60; AUTHORIZING THE CITY MANAGER OR DESIGNEE
TO SIGN ALL NECESSARY DOCUMENTS; AND AUTHORIZING THE CITY
MANAGER TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO
COMPLETE THE PROJECT PER SPECIAL PROVISIONS NO. 13219.
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. Quality Light and Electrical, 11055 Alder Avenue, Bloomington,
California 92316 is the lowest responsive responsible bidder for Street Light Improvement at
Broadmoor Blvd between 30th Street and Parkdale Drive (TC19-001) per Special Provisions
No. 13219. A contract is awarded to said bidder in a total amount of $528,176.40 with a
contingency amount of $52,817.60 but such contract shall be effective only upon being fully
executed by both parties. All other bids, therefore, are hereby rejected. The City Manager is
hereby authorized and directed to execute said contract on behalf of the City. The City
Manager is hereby authorized and directed to execute said contingency not to exceed
$52,817.60 on behalf of the City. A copy of the contract is on file in the office of the City
Clerk and incorporated herein by reference as though fully set forth at length.
SECTION 2. The Director of Finance is authorized and directed to issue a Purchase
Order in the amount of $528,176.40 to Quality Light and Electrical for this work.
SECTION 3. This contract and any amendment or modifications thereto shall not
take effect or become operative until fully signed and executed by the parties and no party
shall be obligated hereunder until the time of such full execution. No oral agreements,
amendments, modifications or waivers are intended or authorized and shall not be implied
from any act or course The authorization to execute this contract is rescinded if the parties to
1
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the contract fail to execute it and return the fully executed contract to the Office of the City
Clerk within sixty (60) days of passage of this Resolution.
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RESOLUTION NO. 2018-229
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING A CONSTRUCTION CONTRACT
WITH QUALITY LIGHT AND ELECTRIC (QLE) IN THE AMOUNT OF $528,176.40
AND AUTHORIZING A CONSTRUCTION CONTINGENCY IN THE AMOUNT OF
$52,817.60 AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SIGN ALL
NECESSARY DOCUMENTS, AND AUTHORIZING THE CITY MANAGER TO
EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE
PROJECT
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City
Council of the City of San Bernardino at a ______________________________ meeting
thereof, held on the _____ day of ________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:
3
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Packet Pg. 136 Attachment: PW.QLE Street Light Broadmoor Blvd Agreement - Attachment 2 (5693 : Award of Construction Contract for Street Light
BID TABULATIONFORSTREET LIGHT IMPROVEMENT AT BROADMOOR BLVD FROM 30TH ST TO PARKDALE DR (TC18-002)SPECIAL PROVISIONS NO. 13219 FILE NO. 1.8613 ACCT. NO. 126-160-5504-8613-0025 BID SCHEDULE STREET LIGHT IMPROVEMENT AT BROADMOOR BLVD (TC18-001) Special Provisions NO. 13219 ITEM NO.BID ITEM DESCRIPTIONESTIMATED QUANTITY UNITUNIT PRICE TOTAL UNIT PRICE TOTAL UNIT PRICE TOTAL1 MOBILIZATION1LS15084.40 15084.40 7000.00 7000.0025000.0025000.002 TEMPORARY TRAFFIC CONTROL1LS6800.00 6800.00 3500.00 3500.00 6000.00 6000.003CLEARING, GRUBBING, MISCELLANEOUS REMOVALS, UNCLASSIFIED EXCAVATION, AND UNCLASSIFIED FILL1LS122005.00 122005.00 20000.00 20000.00 15000.00 15000.004 STREET LIGHTING SYSTEM COMPLETE IN PLACE1LS384287.00 384287.00 597773.00 597773.00 596000.00 596000.00 TOTAL BID SCHEDULETotalsBID SCHEDULE STREET LIGHT IMPROVEMENT AT BROADMOOR BLVD (TC18-001) Special Provisions NO. 13219 ITEM NO.BID ITEM DESCRIPTIONESTIMATED QUANTITY UNITUNIT PRICETOTALUNIT PRICETOTALUNIT PRICETOTAL1 MOBILIZATION1LS17000.00 17000.00 33000.00 33000.0050000.0050000.002 TEMPORARY TRAFFIC CONTROL1LS8000.00 8000.00 11000.00 11000.00 17331.00 17331.003CLEARING, GRUBBING, MISCELLANEOUS REMOVALS, UNCLASSIFIED EXCAVATION, AND UNCLASSIFIED FILL1LS6000.00 6000.00 33000.00 33000.00 49184.00 49184.004 STREET LIGHTING SYSTEM COMPLETE IN PLACE1LS616047.00 616047.00 587000.00 587000.00 557632.00 557632.00 TOTAL BID SCHEDULETotalsBID SCHEDULE STREET LIGHT IMPROVEMENT AT BROADMOOR BLVD (TC18-001) Special Provisions NO. 13219 ITEM NO.BID ITEM DESCRIPTIONESTIMATED QUANTITY UNITUNIT PRICETOTAL1 MOBILIZATION1LS70000.00 70000.002 TEMPORARY TRAFFIC CONTROL1LS30000.00 30000.003CLEARING, GRUBBING, MISCELLANEOUS REMOVALS, UNCLASSIFIED EXCAVATION, AND UNCLASSIFIED FILL1LS10000.00 10000.004 STREET LIGHTING SYSTEM COMPLETE IN PLACE1LS621590.00 621590.00 TOTAL BID SCHEDULETotals$664,000.00 $674,147.00 7TH LOW Sturgeon Electric California, LLC $731,590.00$528,176.40 $628,273.00 $642,000.00 4TH LOW PTM General Engineering Services, Inc. 5TH LOW Belco Elecnor Group 6TH LOW Comet Electric $647,047.00BID OPENING: 2:00 P.M., JULY 24, 2018 APPARENT LOW BIDDER Espinoza Electric QLE 2ND LOW DBX, Inc. 3RD LOW Calpromax Engineering, Inc. Page 1 of 111.d
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Packet Pg. 248 Attachment: PW.CEO Staff Report (5694 : Center of Employment Opportunities Agreement)
Discussion
As part of the FY 2018/19 budget, the Mayor and City Council approved additional
funds to support increased right of way maintenance as well as funding for as-needed
temporary labor support. Public Works staff saw this need and funding as a great
opportunity to expand the currently successful trial CEO program.
This amendment will increase the contract amount with CEO to $465,645 and extends
the terms of the current agreement to June 30, 2019. With this increased budgeted
amount, CEO will be able to provide two additional crews (for a total of three crews) to
perform weed abatement, maintenance, and cleanliness services in the City’s
landscaped areas, City-owned private properties, and rights of ways. Equally important,
this amendment will allow CEO to have wider-coverage of the City with faster response
times and will address City Council’s desire to expand the scope of the program. Under
the current agreement, CEO has only been utilizing one crew to perform work activities
throughout the City.
CEO crews consist of at least five employees per crew with a dedicated on-site
supervisor. The crews work five days per week (40 hours per employee) and receive
direct assignments from Public Works (often on a daily basis but work assignments may
be provided on a weekly basis for longer-term assignments).
The City will continue issuing regular work assignments to the CEO team and has
recently implemented a methodology to track all of CEO’s work activities via Public
Work’s work order management system. CEO will continue to be responsible for
payroll, insurance, in-the-field supervision, and management of their team.
It’s important to note that CEO provides a unique service with very competitive rates at
below-market cost. They utilize prevailing wages but subsidize 59% of the cost that the
City would otherwise pay for similar services. In addition, they provide training to their
crews at no cost to the City and provide personal protective equipment (PPE) and
appropriate foot ware to their employees.
2018-2019 Goals and Objectives
Augmenting City staff with CEO crews aligns with Goal No 4: Ensure Development of a
Well-Planned, Balanced, and Sustainable City; Goal No 5: Improve City Government
Operations; Goal No 6: Operate in a Fiscally Responsible and Businesslike Manner;
and Goal No. 7: Pursue City Goals and Objectives by Working with Other Agencies.
Fiscal Impact
Funds are to be expended as follows:
$465,645 for FY 18/19 (July 1, 2018 – June 30, 2019)
Cost to the City is $465,645. Funding for this contract in FY18/19 is budgeted in account
126-400-0099-5502 ($370,859), 001-400-0037-5014 ($74,786), and ($20,000) from
account 001-380-0072-5505.
8/9/2018 11:30 AM
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Packet Pg. 249 Attachment: PW.CEO Staff Report (5694 : Center of Employment Opportunities Agreement)
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt Resolution No. 2018-230, authorizing and directing the City Manager
to amend the Vendor Services Agreement with the Center for Employment
Opportunities for weed abatement and landscape maintenance services. Not approving
this action will result in a backlog of landscape maintenance service requests.
Attachments
Attachment 1 Resolution No. 2018-230; Amendment Number One to Landscape
Maintenance Services Agreement
Attachment 2 Resolution No. 2018-122; VSA (original) with CEO
Synopsis of Previous Council Actions:
May 2, 2018 – Resolution No. 2018-122 Authorizing an Agreement with the Center for
Employment Opportunities
March 11, 2016 - Resolution No. 2016-45 Authorizing an Agreement with the Center for
Employment Opportunities
8/9/2018 11:30 AM
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Packet Pg. 250 Attachment: PW.CEO Staff Report (5694 : Center of Employment Opportunities Agreement)
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RESOLUTION NO. 2018-230
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING AN AGREEMENT BETWEEN THE
CITY OF SAN BERNARDINO AND THE CENTER FOR EMPLOYMENT
OPPORTUNITIES FOR CITYWIDE LANDSCAPE MAINTENANCE SERVICES
AND WEED ABATEMENT
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager, or her designee, is hereby authorized and directed to
execute, on behalf of the City, Amendment Number One to the Agreement with the Center for
Employment Opportunities to provide weed abatement and landscape maintenance services
within the City boundaries, attached hereto as Exhibit A and incorporated herein.
SECTION 2. The Director of Finance is hereby authorized and directed to increase
FY 18/19 Purchase Order in an amount not to exceed $465,645 to the Center for Employment
Opportunities to provide weed abatement and landscape maintenance services within the City
boundaries.
SECTION 3. The authorization to execute the above referenced Amendment Number
One to the Agreement is rescinded if it is not executed by all parties and returned to the Office
of the City Clerk within one-hundred-twenty (120) days of the passage of this Resolution.
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00060436.1 Page 1
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Packet Pg. 251 Attachment: PW.CEO Attachment 1 Resolution (5694 : Center of Employment Opportunities Agreement)
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING AN AGREEMENT BETWEEN THE
CITY OF SAN BERNARDINO AND THE CENTER FOR EMPLOYMENT
OPPORTUNITIES FOR CITYWIDE LANDSCAPE MAINTENANCE SERVICES
AND WEED ABATEMENT
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a _____________________ meeting
thereof, held on the ____ day of ___________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this __________ day of __________, 2018.
R. CAREY DAVIS, Mayor
City of San Bernardino
Approved as to form:
GARY D. SAENZ, City Attorney
By:_________________________
00060436.1 Page 2
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Packet Pg. 252 Attachment: PW.CEO Attachment 1 Resolution (5694 : Center of Employment Opportunities Agreement)
AMENDMENT NUMBER ONE
TO THE LANDSCAPE MAINTENANCE SERVICES AGREEMENT
City of San Bernardino and Center for Employment Opportunities CITY: CITY OF SAN BERNARDINO 290 North “D” Street, 3rd Floor San Bernardino, California 92401 CONTRACTOR: Center for Employment Opportunities 1630 South “E” Street, Suite A San Bernardino, CA 92408 SERVICES: Landscape Maintenance Services AMOUNT: $465,645 (as amended) EXPIRATION DATE: June 30, 2019 (as amended) MANAGING DEPARTMENT: Public Works Form Services Agreement Amendment: Rev. 2018-07-16
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Packet Pg. 253 Attachment: PW.CEO Attachment 1a Amendment No. 1 AMENDMENT NUMBER ONE (5694 : Center of Employment Opportunities Agreement)
AMENDMENT NO. ONE TO LANDSCAPE MAINTENANCE SERVICES AGREEMENT Amendment No. One to the Landscape Maintenance Services Agreement, dated as of August 15, 2018 (the “Amendment”), between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California (“City”), and Center for Employment Opportunities of San Bernardino, California, (“Contractor,” and together with City, the “Parties,” and each, a “Party”). WHEREAS, the Parties have entered into an Agreement, dated as of May 2, 2018 for Landscape Maintenance Services (the “Existing Agreement”); and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the term and compensation on the terms and subject to the conditions set forth herein; and WHEREAS, pursuant to Section 21 of the Existing Agreement, the amendment contemplated by the Parties must be contained in a written agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: 2.1 Section 2.1 is amended to read: “For the services delineated above, the CITY, upon presentation of an invoice, shall pay VENDOR an amount of $465,645, pursuant to the rates set forth in
VENDOR’s Quote, attached hereto, and incorporated herein as Attachment 2.” 2.2 Section 3 “Term; Termination” is amended to read: “The Term of this Agreement shall begin on September 24, 2017 through June 30, 2019, or the completion of the Services as defined in Section 1 of this Agreement. Services pursuant to this Agreement shall begin upon execution of the Agreement, and must be fully completed within 120 days, but no later than June 30, 2019. This Agreement may be terminated at any time by thirty (30) days’ written notice by either party. The terms of this Agreement shall remain in force unless amended by written agreement of the parties prior to the expiration of the Agreement.”
pg. 1 Amendment No. One to Landscape Maintenance Services Agreement with Center for Employment Opportunities
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Packet Pg. 254 Attachment: PW.CEO Attachment 1a Amendment No. 1 AMENDMENT NUMBER ONE (5694 : Center of Employment Opportunities Agreement)
3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date first written above (the “Effective Date”). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to “this Agreement,” “the Agreement,” “hereunder,” “hereof,” “herein,” or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. [Signature Page Follows]
pg. 2 Amendment No. One to Landscape Maintenance Services Agreement with Center for Employment Opportunities
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Packet Pg. 255 Attachment: PW.CEO Attachment 1a Amendment No. 1 AMENDMENT NUMBER ONE (5694 : Center of Employment Opportunities Agreement)
IN WITNESS WHEREOF, this Agreement is executed by City and Contractor acting by and through their authorized officers. CITY OF SAN BERNARDINO: CENTER FOR EMPLOYMENT OPPORTUNITIES: Date: _____ / _____ / 2018 Date: _____ / _____ / 2018 _________________________________ By: ________________________________ Andrea M. Miller, City Manager Its: ________________________________ APPROVED AS TO FORM: Gary D. Saenz, City Attorney By: ______________________________
Signature Page Amendment No. One to Landscape Maintenance Services Agreement with Center for Employment Opportunities
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Packet Pg. 256 Attachment: PW.CEO Attachment 1a Amendment No. 1 AMENDMENT NUMBER ONE (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 257 Attachment: PW.CEO Attachment 2 Resolution No. 2018-122 (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 258 Attachment: PW.CEO Attachment 2 Resolution No. 2018-122 (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 259 Attachment: PW.CEO Attachment 2a Original Agreement (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 260 Attachment: PW.CEO Attachment 2a Original Agreement (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 262 Attachment: PW.CEO Attachment 2a Original Agreement (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 263 Attachment: PW.CEO Attachment 2a Original Agreement (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 264 Attachment: PW.CEO Attachment 2a Original Agreement (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 265 Attachment: PW.CEO Attachment 2a Original Agreement (5694 : Center of Employment Opportunities Agreement)
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Packet Pg. 266 Attachment: PW.CEO Attachment 2a Original Agreement (5694 : Center of Employment Opportunities Agreement)
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Consent Calendar
City of San Bernardino
Request for Council Action
Date: August 15, 2018
To: Honorable Mayor and City Council Members
From: Andrea M. Miller, City Manager
By: Trish Rhay, Director of Public Works
Alex Qishta, P.E. Deputy DPW/City Engineer
Subject: First Reading - Amendment of Chapter 10.52 of the San
Bernardino Municipal Code to Reduce the Speed Limit on
Arrowhead Avenue between Highland Avenue and Thompson
Place from 45 mph to 40 mph
Recommendation
Introduce for First Reading, Ordinance MC-1502 of the Mayor and City Council of the
City of San Bernardino, California, amending Chapter 10.52 of the San Bernardino
Municipal Code to reduce the speed limit on Arrowhead Avenue between
Highland Avenue and Thompson Place from forty-five miles per hour to forty miles per
hour.
Background
The California Vehicle Code (CVC) allows cities to set specific speed limits for
streets within their boundaries. In most cases, in order to be enforceable by radar,
these speed limits must be supported with an Engineering and Traffic Survey (E&TS).
The first step in completing the E&TS is to conduct a speed survey for traffic
traveling on the road. The speed limit is then set based on the “prevailing
speed” (the rate at or below which 85% of the traffic is traveling) determined by
the data gathered during the E&TS. Typically, the prevailing speed is then
rounded to the nearest 5 mph increment to set the speed limit that will be posted.
On September 6, 2016, the Mayor and City Council adopted Ordinance No.
MC-1428, enacting speed limits on various City streets in accordance with
California Vehicle Code. In response to the adopted ordinance, residents and
Council requested an evaluation of the speed limit on Arrowhead Avenue between
Highland Avenue and Thompson Place. The requestors feel that the existing 45 mph
speed limit is excessive for this road segment that is almost entirely residential.
Staff has re-evaluated speed limits on Arrowhead Avenue, conducted a new speed
survey, and is recommending that the speed limit be reduced by 5 mph on Arrowhead
Avenue between Highland Avenue and Thompson Place, based on the re-evaluation.
8/9/2018 4:10 PM
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Packet Pg. 270 Attachment: PW.Arrowhead - Report (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code to Reduce the
Because the roadway segment of Arrowhead Avenue between Thomson Place and
Kendal Drive meets the criteria for legal enforcement of 25 mph. It is further
recommended that the existing speed limit of 45 mph be completely eliminated as this
road segment meets the criteria for “residential district” speed limit.
Goals and Objectives
The proposed Ordinance amending San Bernardino Municipal Code Chapter 10.52
Speed Zones, aligns with Goal No. 2: Provide for the safety of City Residents and
Businesses. The project will utilize City programs to reduce crime and ensure that
neighborhoods and business area safe.
Fiscal Impact
The estimated cost is $1,500 for installing speed limit signs and pavement markings.
Sufficient funding is available in account No. 001-402-5111 (Street Maintenance).
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, introduce for First Reading, Ordinance MC-1502 authorizing the reduction of
the speed limit on Arrowhead Avenue.
Attachments
Attachment 1 Ordinance
Attachment 2 Vicinity Map
Attachment 3 Engineering and Traffic Survey
Ward: 7
Synopsis of Previous Council Actions:
• September 6, 2016 – Ordinance No. MC-1428 adopted establishing speed zones on various
street segments throughout the City including Arrowhead Avenue between Highland
Avenue and Kendall Drive.
8/9/2018 4:10 PM
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Packet Pg. 271 Attachment: PW.Arrowhead - Report (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code to Reduce the
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ORDINANCE NO. MC 1502
ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING CHAPTER 10.52 OF THE SAN
BERNARDINO MUNICIPAL CODE TO REDUCE THE SPEED LIMIT ON
ARROWHEAD AVENUE BETWEEN HIGHLAND AVENUE AND
THOMPSON PLACE FROM FORTY-FIVE MILES AN HOUR TO FORTY MILES
PER HOUR
THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO
ORDAIN AS FOLLOWS:
SECTION 1. Section 10.52.040 of the San Bernardino Municipal Code is amended
by deleting that portion which currently reads as Arrowhead Avenue between Highland
Avenue and Kendall Drive.
SECTION 2. Section 10.52.030 of the San Bernardino Municipal Code is amended
by inserting the following to the streets currently listed to read as follows: Arrowhead
Avenue
between Highland Avenue and Thompson Place.
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Packet Pg. 272 Attachment: PW.Arrowhead Street - ORDINANCE - Attachment 1 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino
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ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING CHAPTER 10.52 OF THE SAN
BERNARDINO MUNICIPAL CODE TO REDUCE THE SPEED LIMIT ON
ARROWHEAD AVENUE BETWEEN HIGHLAND AVENUE AND THOMPSON
PLACE FROM FORTY-FIVE MILES AN HOUR TO FORTY MILES AN HOUR
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and City
Council of the City of San Bernardino at a ______________________________ meeting
thereof, held on the _____ day of ________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Ordinance is hereby approved this _____ day of ________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
By:
Approved as to form:
Gary D. Saenz, City Attorney
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Packet Pg. 273 Attachment: PW.Arrowhead Street - ORDINANCE - Attachment 1 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino
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Packet Pg. 274 Attachment: PW.Arrowhead - Vicinity Map - Attachment 2 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal
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Packet Pg. 275 Attachment: PW.Arrowhead - E&TS - Attachment 3 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code
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Packet Pg. 277 Attachment: PW.Arrowhead - E&TS - Attachment 3 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code
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Packet Pg. 278 Attachment: PW.Arrowhead - E&TS - Attachment 3 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code
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Packet Pg. 279 Attachment: PW.Arrowhead - E&TS - Attachment 3 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code
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Packet Pg. 280 Attachment: PW.Arrowhead - E&TS - Attachment 3 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code
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Packet Pg. 281 Attachment: PW.Arrowhead - E&TS - Attachment 3 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code
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Packet Pg. 282 Attachment: PW.Arrowhead - E&TS - Attachment 3 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code
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Packet Pg. 283 Attachment: PW.Arrowhead - E&TS - Attachment 3 (5695 : First Reading - Amendment of Chapter 10.52 of the San Bernardino Municipal Code
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Packet Pg. 284 Attachment: PW.ZEV-Staff Report (5696 : Designate Six Parking Stalls in the Santa Fe Depot Parking Lot for the Exclusive Purpose of Fuel)
purpose of fueling and parking of Zero Emission Vehicles (ZEV) in accordance with
California Vehicle Code Section 22511.
Attachments
Attachment 1 – Resolution
Ward: 1
Synopsis of Previous Council Actions:
• None
8/9/2018 11:31 AM
14.a
Packet Pg. 285 Attachment: PW.ZEV-Staff Report (5696 : Designate Six Parking Stalls in the Santa Fe Depot Parking Lot for the Exclusive Purpose of Fuel)
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RESOLUTION NO. 2018-231
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE DESIGNATION OF SIX
PARKING STALLS IN THE SANTA FE DEPOT PARKING LOT FOR THE
EXCLUSIVE PURPOSE OF FUELING AND PARKING OF ZERO
EMISSION VEHICLES (ZEV) IN ACCORDANCE WITH CALIFORNIA
VEHICLE CODE SECTION 22511
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO AS FOLLOWS:
SECTION 1: For the purpose of designating the following parking stalls located in off-
street public parking facilities for the exclusive purpose of fueling and parking a zero-emission
vehicle (ZEV) in accordance with California Vehicle Code Section 22511.
1)On the public parking lot located east of the Santa Fe Depot and on the
northwest corner of the intersection of 3rd Street and “K” Street; The 2nd
through the 7th parking stalls (6 Total Spaces) of the northernmost row
counting the stalls in sequence from west to east.
SECTION 2: Any person violating Section One of this Resolution shall be deemed
guilty of an infraction and upon conviction thereof shall be fined as set forth in Section
10.44.010 of the Municipal Code.
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Packet Pg. 286 Attachment: PW.ZEV - Resolution - Attachment 1 (5696 : Designate Six Parking Stalls in the Santa Fe Depot Parking Lot for the Exclusive
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO AUTHORIZING THE DESIGNATION OF SIX PARKING STALLS IN
THE SANTA FE DEPOT PARKING LOT FOR THE EXCLUSIVE PURPOSE OF
FUELING AND PARKING OF ZERO EMISSION VEHICLES (ZEV) IN
ACCORDANCE WITH CALIFORNIA VEHICLE CODE SECTION 22511
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City
Council of the City of San Bernardino at a _________________ meeting thereof, held on the
________ day of _______________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _____ _____
BARRIOS _____ _____ _____ _____
VALDIVIA _____ _____ _____ _____
SHORETT _____ _____ _____ _____
NICKEL _____ _____ _____ _____
RICHARD _____ _____ _____ _____
MULVIHILL _____ _____ _____ _____
________________________
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this _____day of ________________, 2018.
______________________
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: ______________________
14.b
Packet Pg. 287 Attachment: PW.ZEV - Resolution - Attachment 1 (5696 : Designate Six Parking Stalls in the Santa Fe Depot Parking Lot for the Exclusive
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Packet Pg. 288 Attachment: PW.Omnitrans PAP.00.Staff Report (5697 : Passenger Amenities Program Agreement with Omnitrans for Current and Future Bus
As funding becomes available, Omnitrans will coordinate with the City to expand the
offering of passenger amenities at bus stops within the City. For each new location
Omnitrans proposes, the City may determine the suitability of the location, and
placement and character of said amenities. All amenities subject to the PAP will be
identified as fixtures in the public right-of-way belonging to Omnitrans. In the event that
Omnitrans terminates the PAP they will be required to remove the encroaching
amenities or apply for a permanent encroachment permit for each location.
2018-19 Goals and Objectives
This project is consistent with Goal No. 4: Ensure Development of a Well-Planned,
Balanced, and Sustainable City. The approval of this Passenger Amenities Program
Agreement provides the residents of the City passenger amenities such as bus stop
shelters and the maintenance thereof while also protecting the City’s right of way for
future use.
Fiscal Impact
Future costs to the City are limited to staff time spent, as needed, collaborating with
Omnitrans to identify locations for new amenities and pursuing funding. This agreement
alleviates the City of cost of maintenance of passenger amenities which will be borne by
Omnitrans in exchange for advertising revenue.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt Resolution No. 2018-232 authorizing the execution of a Passenger
Amenities Program Agreement with Omnitrans for current and future bus stops.
Attachments
Attachment 1 Resolution; Exhibit A - Passenger Amenities Program Agreement
Ward: All
Synopsis of Previous Council Actions:
• Sep 20, 2010 – Mayor and City Council adopted Resolution 2010-329, authorizing the City
Manager to execute a Bus Shelter Agreement with Omnitrans to administer a Passenger
Amenities Program at current and future bus stops.
• Aug 2, 1999 – Mayor and City Council adopted Resolution 1999-189, authorizing the
execution of an agreement with Omnitrans to administer a passenger amenities program
at current and future bus stops.
8/9/2018 11:32 AM
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Packet Pg. 289 Attachment: PW.Omnitrans PAP.00.Staff Report (5697 : Passenger Amenities Program Agreement with Omnitrans for Current and Future Bus
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RESOLUTION NO. 2018-232
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A
PASSENGER AMENITIES PROGRAM AGREEMENT WITH OMNITRANS FOR
CURRENT AND FUTURE BUS STOPS
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager is hereby authorized to execute the agreement with
Omnitrans, attached hereto as Exhibit “A”.
SECTION 2. The agreement shall have no date of termination unless terminated as
set forth in said agreement.
SECTION 3. The above authorization is rescinded if the parties to the agreement fail
to file a fully executed copy of said agreement with the City Clerk within sixty (60) days of
the passage of this Resolution.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A
PASSENGER AMENITIES PROGRAM AGREEMENT WITH OMNITRANS FOR
CURRENT AND FUTURE BUS STOPS
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a ______________________________
meeting thereof, held on the _____ day of ________________, 2018, by the following vote,
to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
Approved as to form: R. Carey Davis, Mayor
Gary D. Saenz, City Attorney City of San Bernardino
By:
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Packet Pg. 291 Attachment: PW.Omnitrans PAP.01.Attachment 1 - Resolution (5697 : Passenger Amenities Program Agreement with Omnitrans for Current and
CITY OF SAN BERNARDINO
PASSENGER AMENITY PROGRAM AGREEMENT
BY AND BETWEEN
OMNITRANS
1700 W. FIFTH ST.
SAN BERNARDINO CA 92411
AND
CITY OF SAN BERNARDINO
290 NORTH D STREET
SAN BERNARDINO, CA 92401
1. Parties and Date. This Passenger Amenity Program Agreement ("Agreement")
is made and entered into this ____ day of August, 2018 by and between
Omnitrans, a California Joint Powers Authority (“Omnitrans”), and the City of
San Bernardino, a California municipal corporation (“City”). Omnitrans and City
are also referred to herein individually as "Party" and collectively as "Parties."
2. Recitals
2.1 Purpose
2.1.1. Omnitrans is a provider of public mass transportation for the San
Bernardino Valley, and has the professional ability to administer
programs to install and maintain bus shelters and other passenger
Amenities in cities. Omnitrans represents that it is experienced
in providing such services to public clients.
2.1.2. The Parties recognize that upgraded, well-maintained bus stops
and Amenities benefit City residents, the City's business
community, and transit riders region-wide.
2.1.3. The Parties desire that by this Agreement, Omnitrans shall have
the right to provide bus stop Amenities within boundaries of
City, and in exchange, will receive all revenue, including
advertising, from such Amenities.
2.1.4. The Parties agree that if City, property developer, or property
owner installs bus stop Amenities separate from the Amenities
that Omnitrans installs (of which Omnitrans does not agree to
take ownership), Omnitrans does not bear the responsibility to
maintain those Amenities and shall have no liability for such
Amenities.
2.2. Definition of Amenities. The definition of “Amenities” as used
throughout this Agreement may include, but not be limited to: shelters,
benches, lean bars, trash receptacles, customer information signage
(physical or electronic signage), advertising panels (static or digital), solar
panels, lighting, security systems, and bicycle racks.
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2.3. Program. City desires to engage Omnitrans to administer a
comprehensive Passenger Amenities Program ("Program") at current and
future bus stops throughout the City as set forth in this Agreement.
3. Responsibilities under Agreement
3.1 Scope of Services
3.1.1 General Scope of Services. The City grants Omnitrans the right
to administer the Program at current and future bus stops
throughout the City. Omnitrans may use a contractor(s) to perform
the construction and maintenance services (“Contractor”) in
connection with the Program ("Services") at current and future bus
stops within the City.
3.1.2 Placement of Amenities. Omnitrans will place Amenities based
upon the guidance outlined in Omnitrans’ Transit Design
Guidelines (2013). City and Omnitrans will coordinate on the
placement of Amenities based on such Guidelines, ridership,
funding availability and other determined needs. Omnitrans shall
provide to the City an inventory of Amenities installed or
maintained pursuant to this Agreement, periodically or upon
request. The inventory shall identify Amenities by location and by
date installed by Omnitrans or date Omnitrans accepted ownership
thereof.
3.1.3 Availability of Sidewalk Space. The availability of flat concrete
sidewalk space on which Amenities can be installed (10’ by 25’ for
shelters) is also crucial to installation of shelters. Omnitrans will
partner with City to pursue funding whenever possible for
installation of concrete improvements or accessibility
improvements needed for installing Amenities at bus stops.
3.1.4 Shelter Design. Omnitrans shall ensure that bus shelters in the
City are constructed in accordance with all applicable Americans
with Disabilities Act ("ADA") guidelines, as well as other
guidance laid out in Omnitrans’ Transit Design Guidelines (2013).
3.1.5 Shelter Types. Shelter types include but are not limited to the
following (examples are shown in Attachment A):
3.1.5.1 Standard blue or green Omnitrans shelter (13’ or 17’
length), which typically includes a trash receptacle, bench,
advertising panel, map case/customer information, and
solar-powered lighting.
3.1.5.2 Premium silver Omnitrans logo shelter (17’ length), which
typically includes a trash receptacle, bench, advertising
panel, map case/customer information, solar-powered
lighting, electronic real-time information sign, and bike
rack.
3.1.5.3 The specific type of shelter to be used for each location
shall be determined by mutual agreement of the parties.
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3.1.6 Maintenance and Cleaning. Omnitrans shall wash all shelters within
the City not less than once per month, clean the 15' radius of the
shelters not less than once a week, and clean the benches not less than
once per week.
3.1.7 Amenities - Waste Receptacles. Omnitrans will place and maintain
trash receptacles at all existing and future amenity locations, empty
waste receptacles at least once per week, clean at least once a month,
and add trash receptacles as required by law or in Omnitrans’
discretion.
3.1.8 Relocation or Removal. Omnitrans is the sole owner of Amenities
installed or maintained pursuant to this Agreement. The City, in its
sole discretion and at its expense may require the relocation or
removal of any shelter if the physical surroundings or use of the shelter
poses a threat to the public health or safety. In such case, Omnitrans
shall be responsible for arranging for such relocation or removal. In
all other cases, Omnitrans in its sole discretion and expense may
remove and/or relocate any bus shelter for its operational convenience.
Any new location shall be agreed upon by the Parties.
3.1.9 Advertising/Public Service Announcements. At a minimum, two (2)
advertising panels within the City’s boundaries shall be made available
for the City's use for public service announcements.
3.1.10 Electronic Advertising panels. Electronic advertising panels may be
used in future shelter designs where approved pursuant to Section
3.1.5.3 and Section 3.1.12.
3.1.11 Advertising Content. Per the provisions of Omnitrans’ contract with
its advertising provider, Omnitrans does not permit, under any
circumstances, any advertisement that violates any federal, state,
county, or local regulation, law, code, or ordinance; is or can be
construed to be false, misleading, deceptive or libelous; contains
copyright infringement; contains an endorsement by Omnitrans
without prior written authorization; contains sexual or adult-oriented
content according to contemporary community standards, obscenity, or
nudity; depicts unlawful or detrimental conduct or advertises unlawful
goods or services; demeans or disparages an individual or group based
on race, color, religion, national origin, ancestry, gender, age,
disability, or sexual orientation; contains images or descriptions of or
incites violence; contains images of firearms in the foreground or
making up 15% or more of the advertisement, profanity, alcohol,
tobacco, graffiti, inappropriate graphics, political or religious
information. All advertisements that contain content or have a
presentation that is objectionable, as so deemed by Omnitrans, will be
removed from affected Amenities within 48 hours, regardless of prior
approvals, at Omnitrans’ or its Contractor’s expense (based on the
provisions of Omnitrans’ contract with its advertising provider).
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3.1.11.1 Omnitrans additionally acknowledges that messages
with content advertising marijuana or firearms are
objectionable within the City corporate limits and shall
cause such advertisement to be removed from affected
Amenities as provided for in Section 3.1.11.
3.1.12 Approval by City. Omnitrans and the City shall work cooperatively
to identify bus shelter locations and any necessary permits. Omnitrans
shall not be required to apply for a permanent encroachment permit
nor a sign permit from City to install Amenities pursuant to this
Agreement. Omnitrans shall apply for temporary encroachment
permits for construction activities which will in anyway impede or
impair pedestrian or vehicular traffic. City will reasonably cooperate
with Omnitrans to expedite the approval of any permits.
3.1.13 Duty to Inform Public. Omnitrans shall make every practicable
effort to inform the community of the mechanisms in place for the
public to report problems concerning the bus shelters and maintenance
needs, which at a minimum is to provide contact information affixed to
the shelter.
3.1.14 Loitering. City will allow Omnitrans to install No Loitering signs at
bus stops, which will assist Omnitrans in addressing vagrancy at the
bus stops. City staff will meet with Omnitrans staff to discuss the
possibility of the City passing an ordinance against loitering at bus
stops that complies with applicable laws and regulations.
3.2 Term. This Agreement shall have no date of termination unless
terminated by the Parties, as provided herein.
3.3 Responsibilities
3.3.1 The Services included in this Agreement shall be performed by
Omnitrans and/or Contractor(s) or any other subcontractor under the
Contractor’s direct supervision.
3.3.2 Omnitrans and its Contractors retain the right to perform similar or
different services for others during the term of this Agreement. Any
additional personnel performing the Services under this Agreement on
behalf of Omnitrans or its Contractor(s) shall at all times be under the
direction and control of its employer. Omnitrans shall require
Contractor to execute contracts for the benefit of the City and
Omnitrans, releasing the City and Omnitrans from all costs, expenses
and liabilities arising from Contractor's negligent performance of the
services.
3.3.3 Conformance to Applicable Requirements. All work performed in
connection with this Agreement shall be subject to the City's
ordinances.
3.3.4 City's Representative. The City hereby designates the City Manager
or her designee, to act as its representative for the performance of this
Agreement ("City's Representative"). City's Representative shall have
the power to act on behalf of the City for all proposed work under this
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Contract. Omnitrans shall not accept direction or orders from any
person other than the City's Representative or his or her designee.
3.3.5 Omnitrans' Representative. Omnitrans hereby designates the
Omnitrans Stops and Stations Supervisor, to act as its representative
for the performance of this Agreement ("Omnitrans' Representative").
Omnitrans' Representative shall have the authority to represent and act
on behalf of Omnitrans for all purposes under this Agreement.
Omnitrans' Representative shall supervise and direct the Services,
using his or her best skill and attention, and shall be responsible for all
means, methods, techniques, sequences and procedures for the
satisfactory coordination of all portions of the Program and Services
under this Agreement.
3.3.6 Substitution of Key Personnel. Omnitrans or City may substitute
other personnel of at least equal competence in the place of the
authorized Representative or other key personnel who are responsible
for fulfilling the responsibilities within this Agreement with written
notice to the other Party in accordance with this Agreement.
3.3.7 Coordination of Services. Omnitrans agrees to work with City staff
in the performance of the Program and Services, and each Party’s
representative shall be available to the other at reasonable times with
reasonable notice.
3.4 Insurance
3.4.1 Minimum Requirements. Omnitrans and/or its Contractor(s) shall
procure and maintain for the duration of the Agreement, insurance
against claims for injuries to persons or damages to property which
may arise from or in connection with the performance of the
Agreement by Omnitrans, its agents, representatives, employees or
Contractor(s) and its subcontractors. Omnitrans shall also require any
Contractor(s) to include contract provisions requiring that all
subcontractors of the Contractor shall procure and maintain the same
insurance for the duration of the Agreement. Such insurance shall
meet at least the minimum levels of coverage as described below.
3.4.2 Minimum Scope of Insurance. Coverage shall be at least as broad as
the latest version of the following: (1) General Liability: Insurance
Services Office Commercial General Liability coverage (occurrence
form CG 0001); (2) Automobile Liability: Insurance Services Office
Business Auto Coverage form number CA 0001, code 1 (any auto);
and (3) Workers' Compensation and Employer's Liability: Workers'
Compensation insurance as required by the State of California and
Employer's Liability Insurance. The City shall be named as an
additional insured for all such coverage, where possible, and be
provided with applicable endorsements as more particularly described
below.
3.4.3 Minimum Limits of Insurance. Coverage shall be at least: (1)
General Liability: $1,000,000 per occurrence for bodily injury,
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personal injury and property damage. If Commercial General Liability
Insurance or other form with general aggregate limit is used, either the
general aggregate limit shall apply separately to this
Agreement/location or the general aggregate limit shall be twice the
required occurrence limit; (2) Automobile Liability: $1,000,000 per
accident for bodily injury and property damage; and (3) Workers'
Compensation and Employer's Liability: Worker's Compensation
limits as required by the Labor Code of the State of California.
Employer's Liability limits of $1,000,000 per accident for bodily
injury or disease. The City shall be named as an additional insured for
all such coverage, where possible, and be provided with applicable
endorsements as more particularly described below.
3.4.4 Insurance Endorsements. The insurance policies shall contain the
following provisions, or Omnitrans or its Contractor(s) shall provide
endorsements on forms supplied or approved by the City, to add the
following provisions to the insurance policies:
3.4.5 General Liability. The general liability policy shall be endorsed to
state that: (1) the City, and Omnitrans, and their directors, officials,
officers, employees, agents and volunteers shall be covered as
additional insured with respect to the Work or operations performed by
or on behalf of the Contractor, including materials, parts or equipment
furnished in connection with such work; and (2) the insurance
coverage shall be primary insurance with respect to the City and
Omnitrans, and their directors, officials, officers, employees, agents
and volunteers, or if excess, shall stand in an unbroken chain of
coverage excess of Contractor’s or any subsequent Contractor's
scheduled underlying coverage. Any insurance or self-insurance
maintained by the Omnitrans or the City, or their directors, officials,
officers, employees, agents and volunteers shall be excess of
Contractor's or any subsequent Contractor's insurance and shall not be
called upon to contribute with it in any way.
3.4.6 Automobile Liability. The automobile liability policy shall be
endorsed to state that: (1) Omnitrans, the City, and their directors,
officials, officers, employees, agents and volunteers shall be covered
as additional insured's with respect to the ownership, operation,
maintenance, use, loading or unloading of any auto owned, leased,
hired or borrowed by the Contractor; and (2) the insurance coverage
shall be primary insurance with respect to Omnitrans or the City, and
their directors, officials, officers, employees, agents and volunteers, or
if excess, shall stand in an unbroken chain of coverage excess of the
Contractor scheduled underlying coverage. Any insurance or self-
insurance maintained by Omnitrans or the City, and their directors,
officials, officers, employees, agents and volunteers shall be excess of
the Contractors insurance and shall not be called upon to contribute
with it in any way.
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3.4.7 Worker's Compensation and Employers Liability Coverage. The
insurer shall agree to waive all rights of subrogation against the City,
its directors, officials, officers, employees, agents and volunteers for
losses paid under the terms of the insurance policy which arise from
work deficiently performed by Omnitrans or its Contractor(s), or any
other Contractor or subcontractor performing work pursuant to this
Agreement.
3.4.8 All Coverages. Each insurance policy required by this Agreement
shall be endorsed to state that: (A) coverage shall not be suspended,
voided, reduced or canceled except after thirty (30) days prior written
notice by certified mail, return receipt requested, has been given to
Omnitrans and the City; and (B) any failure to comply with reporting
or other provisions of the policies, including breaches of warranties,
shall not affect coverage provided to Omnitrans or the City, their
directors, officials, officers, employees, agents and volunteers.
3.4.9 Separation of Insureds; No Special Limitations. All insurance
required by this Section shall contain standard separation of insured's
provisions. In addition, such insurance shall not contain any special
limitations on the scope of protection afforded to Omnitrans or the
City, its directors, officials, officers, employees, agents and volunteers.
3.4.10 Deductibles and Self-Insurance Retentions. Any deductibles or
self-insured retentions must be declared to Omnitrans and the City.
Omnitrans or its Contractor(s) shall guarantee that the insurer shall
reduce or eliminate such deductibles or self-insured retentions as
respects Omnitrans or the City, and their directors, officials, officers,
employees, agents and volunteers.
3.4.11 Acceptability of Insurers. Insurance is to be placed with insurers
with a current A.M. Best's rating no less A-VII, licensed to do business
in California.
3.4.12 Verification of Coverage. The Contractor shall furnish to Omnitrans
original certificates of insurance and endorsements effecting coverage
required by this Agreement. The certificates and endorsements for
each insurance policy shall be signed by a person authorized by that
insurer to bind coverage on its behalf and shall be on forms
satisfactory to Omnitrans. The City reserves the right to require
complete copies of all required insurance policies, at any time.
3.5 Compensation. Omnitrans shall receive no monetary compensation or
reimbursement from the City for the Program and the Services rendered
under this Agreement. Except as provided elsewhere in this Agreement,
the Program and Services are to be provided at no cost to the City.
Omnitrans and the City acknowledge that all advertising revenue
generated by the shelters shall be the sole property of Omnitrans and agree
the right to such revenues is sufficient consideration for the performance
of Omnitrans' obligations hereunder.
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3.6 Encroachment. City hereby gives permission, removable and terminable
as hereinafter provided, to Omnitrans for encroachment of Amenities
installed or maintained pursuant to this Agreement within the public right-
of-way. Omnitrans acknowledges the title or paramount interest of City to
the public right-of-way and agrees never to assail or resist said title or
interest.
3.7 Sign Permit. Approval by the City of each location pursuant to Section
3.1.12 shall satisfy the requirement of the San Bernardino City Municipal
Code for approval of sign permits for private advertising signs on bus
shelters.
4. General Provisions
4.1 Termination of Agreement.
4.1.1 Grounds for Termination. Either Party may, by written notice to the
other, terminate this Agreement in whole or in part, with or without
cause, by giving written notice of such termination and specifying the
reasons for such termination, if applicable, and the effective date
thereof, at least thirty (30) days before the effective date of such
termination. The non-terminating Party has the right to request a
meeting to discuss such termination before its effective date.
4.1.2 Upon termination hereunder by Omnitrans, Omnitrans shall request
from City within ten (10) days a license agreement for each location
for which Omnitrans seeks the Amenities remain in support of public
transportation services, which request will be reasonably considered
and expedited by City. Omnitrans shall remove, at Omnitrans’ sole
cost and expense within thirty (30) days from notification of denial of
a request for a license agreement, if applicable, and following any
meeting in accordance with Section 4.1.1 above, Amenities installed or
maintained by Omnitrans pursuant to this Agreement and which have
not had a license agreement or other permit approved. In support of
public transportation services within the City, Omnitrans may enter
into a separate license agreement with the City for each location which
Omnitrans does not wish to remove.
4.2 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective Parties at the following
address, or at such other address as the respective Parties may provide in
writing for this purpose:
Omnitrans: Attn: Director of Marketing & Planning
Omnitrans
1700 West Fifth Street
San Bernardino, CA 92411
City: Attn: City Manager
290 North D Street
San Bernardino, CA 92401
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Such notice shall be deemed made when personally delivered or
when mailed, twenty-four (24) hours after deposit in the U.S. Mail,
first class postage prepaid and addressed to the Party at its
applicable address. Actual notice shall be deemed adequate notice
on the date actual notice occurred, regardless of the method of
service.
4.3 Cooperation; Further Acts. The Parties shall fully cooperate with one
another, and shall take any additional acts or sign any additional
documents as may be necessary, appropriate or convenient to attain the
purposes of this Agreement.
4.4 Attorneys’ Fees. If either Party commences an action against the other
Party, whether legal, administrative or otherwise, arising out of or in
connection with this Agreement, neither Party in such litigation shall be
entitled to have and recover from the losing Party reasonable attorneys’
fees and all other costs of such action.
4.5 Indemnification.
4.5.1 Omnitrans shall defend, indemnify and hold the City, its officials,
officers, employees, volunteers and agents free and harmless from any
and all claims, demands, causes of action, costs, expenses, liability
loss, damage or injury, in law or equity, to property or persons,
including wrongful death, in any manner arising out of or incident to
any actual or alleged acts, omissions or willful misconduct of
Omnitrans, its officials, officers, employees, agents, Contractors and
subcontractors arising out of or in connection with the performance of,
the Program, Services or this Agreement.
4.5.2 City shall defend, indemnify and hold Omnitrans, its officials, officers,
employees, volunteers and agents free and harmless from any and all
claims, demands, causes of action, costs, expenses, liability loss,
damage or injury, in law or equity, to property or persons, including
wrongful death, in any manner arising out of or incident to any actual
or alleged acts, omissions or willful misconduct of City, its officials,
officers, employees, agents, Contractors and subcontractors arising out
of or in connection with the performance of, the Program, Services or
this Agreement.
4.6 Entire Agreement. This Agreement contains the entire Agreement of the
Parties with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings or agreements. This Agreement may only be
modified by a writing signed by both Parties.
4.7 Governing Law. This Agreement shall be governed by the laws of the
State of California. Venue shall be in San Bernardino County.
4.8 Time of Essence. Time is of the essence for each and every provision of
this Agreement.
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4.9 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the Parties
4.10 Construction, References, and Captions. Since the Parties or their
agents have participated fully in the preparation of this Agreement, the
language of this Agreement shall be construed simply, according to its fair
meaning, and not strictly for or against any Party. Any term referencing
time, days or period for performance shall be deemed calendar days and
not workdays. All references to Omnitrans include all personnel,
employees, agents, and Contractors of Omnitrans, except as otherwise
specified in this Agreement. All references to City include its officers,
employees, agents, and volunteers except as otherwise specified in this
Agreement. The captions of the various articles and paragraphs are for
convenience and ease of reference only, and do not define, limit, augment,
or describe the scope, content, or intent of this Agreement.
4.11 Amendment and Modification. No supplement, modification, or
amendment of this Agreement shall be binding unless executed in writing
and signed by both Parties.
4.12 Waiver. No waiver of any default shall constitute a waiver of any other
default or breach, whether of the same of other covenant or condition. No
waiver, benefit, privilege, or service voluntarily given or performed by a
Party shall give the other Party any contractual rights by custom,
estoppels, or otherwise.
4.13 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
4.14 Invalidity and Severability. If any portion of this Agreement is declared
invalid, illegal, or otherwise unenforceable by a court of competent
jurisdiction, the remaining provisions shall continue in full force and
effect.
4.15 Prohibited Interest. Omnitrans maintains and warrants that it has not
employed nor retained any company or person, other than a bona fide
employee working solely for Omnitrans, to solicit or secure this
Agreement. Further, Omnitrans warrants that it has not paid nor has it
agreed to pay any company or person, other than a bona fide employee
working solely for Omnitrans, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the
award or making of this Agreement. For breach or violation of this
warranty, City shall have the right to rescind this Agreement without
liability. For the term of this Agreement, no member, officer of employee
of City, during the term of his or her service with City, shall have any
direct interest in this Agreement, or obtain any present or anticipate
material benefit arising there from.
4.16 Equal Opportunity Employment. Omnitrans represents that it is an
equal opportunity employer and it shall not discriminate against any
contractor, employee or applicant for employment because of race,
religion, color, national origin, handicap, ancestry, sex or age. Such non-
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discrimination shall include, but not be limited to, all activities relate to
initial employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff or termination. Omnitrans shall also
comply with all relevant provisions of City's Minority Business Enterprise
program, Affirmative Action Plan or other related programs or guidelines
currently in effect or hereinafter enacted.
4.17 Labor Certification. By its signature hereunder, Omnitrans certifies that
it is aware of the provisions of Section 3700 of the California Labor Code
which require every employer to be insured against liability for Worker's
Compensation or to undertake self-insurance in accordance with the
provisions of that Code, and agrees to comply with such provisions before
commencing the performance of the Services.
4.18 Authority to Enter Agreement. Omnitrans has all requisite power and
authority to conduct its business and to execute, deliver, and perform this
Agreement. Each Party warrants that the individuals who have signed this
Agreement have the legal power, right, and authority to make this
Agreement and bind each respective Party.
4.19 Counterparts. This Agreement may be signed in counterparts, each of
which shall constitute an original.
4.20 Assignment. Omnitrans shall have the right to assign all or part of this
Agreement upon consent of the City, which consent shall not be
unreasonably withheld.
[SIGNATURES ON NEXT PAGE]
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SIGNATURE PAGE TO PASSENGER AMENITY PROGRAM AGREEMENT
CITY OF SAN BERNARDINO OMNITRANS
By: ______________________ By: ______________________
Andrea M. Miller P. Scott Graham
City Manager
CEO/General Manager
Dated: ____________________ Dated: ____________________
ATTEST
By: ______________________
Georgeann Hanna
City Clerk
APPROVED AS TO FORM
APPROVED AS TO FORM
By: ______________________ By: ______________________
A. Haviva Shane
City Attorney Omnitrans Legal Counsel
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Packet Pg. 303 Attachment: PW.Omnitrans PAP.02.Attachment 2 - Passenger Amenitites Program Agreement (5697 : Passenger Amenities Program
ATTACHMENT A
Examples of shelters and amenities
Basic Shelter
Premium Shelter
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Premium Shelter with Digital Ad Panel (Future Option)
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Packet Pg. 306 Attachment: PW.AECOM Fifth Amendment.REPORT (5698 : Fifth Amendment to the Agreement for Professional Services with AECOM
budget amendment is needed to enable payment of this final bill.
The following is financial details of this project:
Original Agreement Amount $3,104,088.00
First Amendment $0.00
Second Amendment $0.00
Third Amendment $0.00
Fourth Amendment $52,000.00
Fifth Amendment (this action) $50,000.00
Revised Agreement Amount $3,206,088.00
Also, the contract with AECOM expired on June 30, 2018, so staff is proposing that the
contract be extended to September 30, 2018 to allow time to process the payment.
Fiscal Impact
It is recommended that $50,000 be appropriated from Regional Circulation funds (264)
to Account No. 264-160-7121-5504 (Mt. Vernon Avenue–Bridge Replacement) to
provide a total budget amount for FY 2017/18 of $500,099. Upon payment of the
above invoice, the City’s Agreement for Professional Services with AECOM will be
closed out; however, AECOM will continue to work on the Mt. Vernon Bridge project
under agreement.
It is further recommended that the Purchase Order to AECOM for said Agreement for
Professional Services be increased in the amount of $50,000 for a total Agreement
amount of $3,206,088.
Payments to AECOM are being reimbursed by Caltrans from Federal Highway Bridge
Program (HBP) funds at the rate of 88.53%. In addition, SBCTA is reimbursing the City
for 7.75% of the local share under its Measure I Major Arterial Program leaving a final
cost to the City of 3.72%.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt the Resolution No. 2018-234, approving the Fifth Amendment to the
Agreement for Professional Services with AECOM Technical Services, Inc., for the
Design of the Mt. Vernon Avenue Overhead Replacement Project, Bridge No 54C -
0066.
Attachments
Attachment 1 – Resolution; Exhibit “A” Fifth Amendment
8/9/2018 2:05 PM
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Ward: 1, 3
Synopsis of Previous Council Actions:
05/06/13 Adopted Resolution No. 2013-081 approving an Agreement for Services with
AECOM Technical Services, Inc. for Design of the Mt. Vernon Avenue
Overhead Replacement Project, Bridge No 54C-0066, CIP Project No. SS04-
012 and Federal Aid Project No. BRLS-5033 (042).
06/06/16 Adopted Resolution No. 2016-108 approving the First Amendment to an
Agreement for Services with AECOM Technical Services, Inc. for Desi gn of
the Mt. Vernon Avenue Overhead Replacement Project, Bridge No 54C-0066,
CIP Project No. SS04-012 and Federal Aid Project No. BRLS-5033 (042).
12/05/16 Adopted Resolution No. 2016-249 approving the Second Amendment to an
Agreement for Services with AECOM Technical Services, Inc. for Design of
the Mt. Vernon Avenue Overhead Replacement Project, Bridge No 54C-0066,
CIP Project No. SS04-012 and Federal Aid Project No. BRLS-5033 (042).
07/05/17 Adopted Resolution No. 2017-124 approving the Third Amendment to an
Agreement for Services with AECOM Technical Services, Inc. for Design of
the Mt. Vernon Avenue Overhead Replacement Project, Bridge No 54C-0066,
CIP Project No. SS04-012 and Federal Aid Project No. BRLS-5033 (042).
09/20/17 Adopted Resolution No. 2017-179 awarding a contract to GMZ Engineering
Inc. for installation of debris netting under the Mt. Vernon Bridge at the BNSF
Rail Yard (Bridge No. 54C-0066) per Plan No. 13154.
02/07/18 Adopted Resolution No. 2018-030 approving the Fourth Amendment to an
Agreement for Services with AECOM Technical Services, Inc. for Desi gn of
the Mt. Vernon Avenue Overhead Replacement Project, Bridge No 54C-0066,
CIP Project No. SS04-012 and Federal Aid Project No. BRLS-5033 (042).
8/9/2018 2:05 PM
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RESOLUTION NO. 2018-234
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO CALIFORNIA, APPROVING THE FIFTH AMENDMENT TO
THE AGREEMENT FOR PROFESSIONAL SERVICES WITH AECOM
TECHNICAL SERVICES, INC. FOR THE DESIGN OF THE MT. VERNON
AVENUE OVERHEAD REPLACEMENT PROJECT, BRIDGE NO. 54C-0066
AND AMENDING THE FY 2018/19 BUDGET
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
SECTION 1. The City Manager or his designee is hereby authorized and directed to
execute the Fifth Amendment to an Agreement for Professional Services with AECOM
Technical Services, Inc. for Design of the Mt. Vernon Avenue Overhead Replacement Project,
Bridge No 54C-0066, CIP Project No. SS04-012 and Federal Aid Project No. BRLS-5033
(042), a copy of which is attached as Exhibit “A” and incorporated herein.
SECTION 2. The Director of Finance or designee is hereby authorized and directed
to amend the FY 2018/19 Budget by transferring $50,000 in Regional Circulation Funds (264)
to Account No. 264-160-7121-5504 “Mt. Vernon Avenue – Bridge Replacement” to provide a
total funding amount for FY 2018/19 of $500,099.
SECTION 3. The Purchasing Manager or designee is hereby authorized and directed
to increase the purchase order for said project to AECOM in the amount of $50,000 to provide
a total Agreement amount of $3,206,088.
SECTION 3. This Amendment shall not take effect until it is fully signed and
executed by the parties, and no party shall be obligated hereunder until the time of such full
execution. No oral contracts, amendments, modifications or waivers are intended or
authorized and shall not be implied from any act or course of conduct of any party.
/ / /
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Page 1 of 3
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO CALIFORNIA, APPROVING THE FIFTH AMENDMENT TO AN
AGREEMENT FOR PROFESSIONAL SERVICES WITH AECOM TECHNICAL
SERVICES, INC. FOR DESIGN OF THE MT. VERNON AVENUE OVERHEAD
REPLACEMENT PROJECT, BRIDGE NO 54C-0066 AND AMENDING THE FY
2018/19 BUDGET
SECTION 4. The authorization to execute this Fifth Amendment is rescinded if the
parties to the Agreement fail to execute it within Ninety (90) days of the passage of this
Resolution.
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Page 2 of 3
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO CALIFORNIA, APPROVING THE FIFTH AMENDMENT TO AN
AGREEMENT FOR PROFESSIONAL SERVICES WITH AECOM TECHNICAL
SERVICES, INC. FOR DESIGN OF THE MT. VERNON AVENUE OVERHEAD
REPLACEMENT PROJECT, BRIDGE NO 54C-0066 AND AMENDING THE FY
17/18 BUDGET
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
and City Council of the City of San Bernardino at a _____________________ meeting
thereof, held on the _____ day of ________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this _____ day of ________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:______________________
Page 3 of 3
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Packet Pg. 311 Attachment: PW.AECOM Fifth Amendment.RESOLUTION (5698 : Fifth Amendment to the Agreement for Professional Services with AECOM
EXHIBIT “A”
FIFTH AMENDMENT
TO AGREEMENT FOR PROFESSIONAL SERVICES
This AMENDMENT is made and entered into this______ day of ____________,
2018, by and between the CITY OF SAN BERNARDINO, California, a municipal
corporation, hereinafter referred to as the “City” and AECOM TECHNICAL SERVICES,
hereinafter referred to as “Consultant."
WITNESSETH:
A. WHEREAS, on May 6, 2013 the Mayor and Common Council adopted
Resolution No. 2013-081 approving an Agreement for Professional Services with
AECOM Technical Services, Inc. for Design of the Mt. Vernon Avenue Overhead
Replacement Project, Bridge No 54C-0066, CIP Project No. SS04-012 and Federal Aid
Project No. BRLS-5033 (042) (Project); and
B. WHEREAS, the original Agreement for Professional Services established
the expiration as June 30, 2016 ; and
C. WHEREAS, on June 16, 2016, the First Amendment to the Agreement
for Professional Services was approved by Resolution No. 2016-108 extending the
expiration date to December 31, 2016; and
D. WHEREAS, the City executed a Cooperative Agreement with the San
Bernardino County Transportation Authority (SBCTA formerly SANBAG) transferring
the Agreement for Professional Services with AECOM Technical Services, Inc. to
SBCTA subject to the condition that the federal funding be first transferred to SBCTA;
and
E. WHEREAS, on December 5, 2016, due to delays in transferring the
federal funding for the Project to SBCTA, the Second Amendment to the Agreement for
Professional Services was approved by Resolution 2016-219 extending the expiration
date of said Agreement for Professional Services to June 30, 2017.
F. WHEREAS, on July 5, 2017, the Third Amendment to the Agreement for
Professional Services was approved by Resolution No. 2017-124 further extending the
expiration date to December 31, 2017 and increasing the FY 16/17 budget amount; and
G. WHEREAS, on February 7, 2018, the Fourth Amendment to the
Agreement for Professional Services was approved by Resolution No. 2018-030 further
extending the expiration date to June 30, 2018 and increasing the FY 16/17 budget
amount; and
H. WHEREAS, on August 23, 2017, the contract with AECOM for the Mt.
Vernon Bridge Replacement Project was officially transferred to SBCTA; and
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Packet Pg. 312 Attachment: PW.AECOM Fifth Amendment.EXHIBIT A (5698 : Fifth Amendment to the Agreement for Professional Services with AECOM
Fifth Amendment to an Agreement for Professional Services with AECOM Technical Services.
FIFTH AMENDMENT
TO AGREEMENT FOR PROFESSIONAL SERVICES
NOW THEREFORE, the parties hereto agree as follows:
1. Section 2.6 “Compensation” of Agreement for Professional Services is hereby
amended as follows:
Original Not to Exceed Amount 3,104,088.00
First Amendment 0.00
Second Amendment 0.00
Third Amendment 0.00
Fourth Amendment 52,000.00
Fifth Amendment (this proposal) 50,000.00
Revised Not to Exceed Amount 3,206,088.00
2. Section 4.1 “Term” of said Agreement for Professional Services is hereby amended to
extend the term of this Agreement to September 30, 2018, unless terminated sooner
as provided herein.
3. All other terms and conditions of said Agreement for Professional Services approved
by Resolution Nos. 2013-081, 2016-108, 2016-249, 2017-124 and 2018-030 shall
remain unchanged.
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Packet Pg. 313 Attachment: PW.AECOM Fifth Amendment.EXHIBIT A (5698 : Fifth Amendment to the Agreement for Professional Services with AECOM
Fifth Amendment to an Agreement for Professional Services with AECOM Technical Services.
FIFTH AMENDMENT
TO AGREEMENT FOR PROFESSIONAL SERVICES
IN WITNESS WHEREOF, the parties hereto have executed this Amendment on the
date first shown above.
CITY OF SAN BERNARDINO AECOM TECHNICAL SERVICES,
INC.
By: __________________________ By: ___________________________
Andrea M. Miller, City Manager Signature
Print Name/Title
ATTEST:
__________________________
Georgeann Hanna, City Clerk
Approved as to form:
Gary D. Saenz
City Attorney
By: _______________________
Page 3 of 3
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Packet Pg. 314 Attachment: PW.AECOM Fifth Amendment.EXHIBIT A (5698 : Fifth Amendment to the Agreement for Professional Services with AECOM
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Packet Pg. 315 Attachment: PW.2018-2023 MICIP-REPORT-07-24-2018 (5699 : Five-Year Capital Improvement Program (FY 2018/19 to FY 2022/23) for Measure I
governing body of each jurisdiction after being made available for public review and
comment.
The Five-Year MICIP only relates to the expenditure of Measure I funds and each
agency is required to update their program annually. If approved, the City would be
committed to expending funds in accordance with the first year of the Five-Year Plan.
The second through fifth years are estimates for planning purposes and the Program
will be evaluated annually to update projects and estimates identified for future years.
City staff is recommending approval of the proposed Five-Year MICIP for FY 2018-2023
(Attachment 2). The projects shown in the five years of the MICIP reflect the projects
and budget amounts included in the City's previously adopted Capital Improvement
Program budget. However, only projects in the first year of the budget are actually
funded in FY 2018/2019. The City is projected to receive $3,726,502 in Measure I pass-
thru funds for fiscal year 2018/2019 and Exhibit A indicates the way those funds have
been allocated in the City’s Capital Improvement Budget.
The proposed projects were selected based upon need and importance to the City’s
roadway network. Changes to the Program during the year are permitted, subject to
approval of plan amendments by resolution of the Mayor and City Council.
SBCTA also requires the local agencies to provide an "Expenditure Strategy." Attached
is a copy of the proposed strategy (Attachment 4) for FY 18/19.
The projects shown in the attached five year Measure I Capital Improvement Program is
consistent with the approved Capital Improvement Program and the Public Works
Department Work Plan.
2018-2019 Goals and Objectives
This project is consistent with Goal No. 4: Ensure Development of a Well-Planned
Balanced and Sustainable City and Goal No. 7: Pursue City Goals and Objectives by
Working with Other Agencies.
Fiscal Impact
The projects listed in the proposed Five-Year MICIP (FY 2018-2023) for Measure I
Local Expenditures for the City of San Bernardino have previously been identified in the
City's Capital Improvement Program.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, approve Resolution No. 2018-235 approving the Five-Year Capital
Improvement Program (FY 2018-2023) for Measure I Local Expenditures.
Attachments
Attachment 1 Resolution Adopting Five-Year Capital Improvement Program
(FY 2018-2023) for Measure I Local Expenditures (MICIP)
Attachment 2 2018-2023 MICIP San Bernardino
8/9/2018 11:35 AM
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Packet Pg. 316 Attachment: PW.2018-2023 MICIP-REPORT-07-24-2018 (5699 : Five-Year Capital Improvement Program (FY 2018/19 to FY 2022/23) for Measure I
Attachment 3 Projects Maps
Attachment 4 5-Yr CIP Measure I Expenditure Strategy 2018-2023
Ward: All:
Synopsis of Previous Council Actions:
11/05/12 Resolution No. 2012-258 adopted the Five-Year Measure I Capital Improvement
Program for FY 2012-2017.
10/21/13 Resolution No. 2013-296 adopted the Five-Year Measure I Capital Improvement
Program for FY 2013-2018.
10/20/14 Resolution No. 2014-374 adopted the Five-Year Measure I Capital Improvement
Program for FY 2014-2019.
12/07/15 Resolution No. 2015-273 adopted the Five-Year Measure I Capital Improvement
Program for FY 2015-2020.
03/20/17 Resolution No. 2017-047 adopted the Five-Year Measure I Capital Improvement
Program for FY 2016-2021.
02/07/18 Resolution No. 2018- 031adopted the Five-Year Measure I Capital Improvement
Program for FY 2017-2022.
8/9/2018 11:35 AM
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Packet Pg. 317 Attachment: PW.2018-2023 MICIP-REPORT-07-24-2018 (5699 : Five-Year Capital Improvement Program (FY 2018/19 to FY 2022/23) for Measure I
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RESOLUTION NO. 2018-235
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, APPROVING THE FIVE-YEAR CAPITAL
IMPROVEMENT PROGRAM (FY 2018-2023) FOR MEASURE I LOCAL
EXPENDITURES
BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO AS FOLLOWS:
WHEREAS. San Bernardino County voters approved passage of Measure I in
November 2004, authorizing the San Bernardino County Transportation Authority to impose a
one-half of one percent retail transactions and use tax applicable in the incorporated and
unincorporated territory of the County of San Bernardino.
WHEREAS. Revenue from the tax can only be used for transportation improvements
and traffic management programs authorized in the Expenditure Plans set forth in Ordinance
No. 04-1 of the Authority.
WHEREAS. Strategic Plan requires each local jurisdiction applying for revenue from
the Local Street Program to annually adopt and update a Five-Year Capital Improvement Plan.
SECTION 1. The Mayor and City Council of the City of San Bernardino hereby
approves the Five-Year Capital Improvement Program (FY 2018-2023) for Measure I Local
Expenditures (MICIP) attached hereto and incorporated herein as Attachment 2.
SECTION 2. The Mayor and City Council of the City of San Bernardino hereby
approves the Expenditure Strategy attached hereto and incorporated herein as Attachment 4.
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Packet Pg. 318 Attachment: PW.2018-2023 MICIP-RESOLUTION-Attachment 1 (5699 : Five-Year Capital Improvement Program (FY 2018/19 to FY 2022/23) for
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ADOPTING MEASURE I FIVE-YEAR CAPITAL
IMPROVEMENT PROGRAM, 2018/2019 TO 2022/2023, MEASURE I EXPENDITURE
STRATEGY
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a ___________ meeting thereof, held on the ____
day of ___________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this __________ day of __________, 2018.
R. CAREY DAVIS, Mayor
City of San Bernardino
Approved as to form:
GARY D. SAENZ, City Attorney
By:
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Packet Pg. 319 Attachment: PW.2018-2023 MICIP-RESOLUTION-Attachment 1 (5699 : Five-Year Capital Improvement Program (FY 2018/19 to FY 2022/23) for
Fiscal Years 2018/2019 thru 2022/2023JURISDICTIONCITY OF SAN BERNARDINOTotal Available (Carryover plus estimate)CARRYOVER BALANCE:$11,881,047.00$31,022,416.00Yes/NoTypePublic ShareDIF ShareCarryoverFunds CurrentEstimateCarryoverFunds CurrentEstimateCarryoverFunds CurrentEstimateCarryoverFunds CurrentEstimateCarryoverFunds CurrentEstimateTotal Local Street Measure I Programmed1,028,000.00$ 109,000.00$ 300,000.00$ 424,000.00$ 304,000.00$ $1,137,000.00*500,000.00$ 500,000.00$ $500,000.00Yes 2,010,000.00$ 185,000.00$ 285,000.00$ 1,725,000.00$ $2,195,000.00*-$ 2,100,000.00$ $2,100,000.00*-$ 800,000.00$ $800,000.00*-$ 700,000.00$ $700,000.00*1,416,397.00$ 815,000.00$ 728,011.00$ 688,386.00$ $2,231,397.00*$0.00$0.00$0.00Project Count: 7 Named Projects Total:4,709,000.00$ -$ 1,813,011.00$ -$ 2,837,386.00$ -$ 304,000.00$ -$ -$ -$ $9,663,397.00Total Carryover + Estimate:$9,663,397.00(%) Named Projects:In NMTP Plan?ATP Component?Yes/No TypeCitywide Street Rehabilitation$8,000,000.00 2,000,000.00$ 2,000,000.00$ 2,000,000.00$ 2,000,000.00$ $8,000,000.00Citywide Pavement Rehabilitation (Slurry / Crack Seal)$5,000,000.00 1,000,000.00$ 1,000,000.00$ 1,000,000.00$ 1,000,000.00$ 1,000,000.00$ $5,000,000.00$0.00$0.00$0.00$0.00$0.00$0.00Categorical Projects Total: 1,000,000.00$ 3,000,000.00$ 3,000,000.00$ 3,000,000.00$ 3,000,000.00$ $13,000,000.00(%) Categorical Projects (cannot exceed 50%):27%79% 78% 77% 76%Total Programmed: 22,663,397.00$ Total Carryover Programmed: 9,663,397.00$ In Accordance with Measure I Strategic Plan Policy 40003/40012/40016:Total Estimated Programmed: 13,000,000.00$ 1. If Measure I allocated to project is ≥ $100,000, then list individually in Named Projects section.Check: 22,663,397.00$ 2. There is a 50% limit on total categorical projects. 150% of Estimated Measure I plus carryover: 46,533,624.00$ 3. There is a 150% constraint on total planned expenditures to Measure I estimated revenue.Does programing amount exceed 150% limit: No4. Expenditures of Measure I Local Street funds must be detailed in the Five Year Capital Improvement Plan and adopted by resolution of the governing body.5. Revised Capital Improvement Plans are due to SBCTA by the end of the fiscal year along with a new resolution.Please do not change, alter or modify this template. Use plus signs along left side of worksheet to add rows rather than manually inserting rows to ensure that formulas carry through.3,879,413.00$ University Parkway & I-215 Freeway Interchange Improvements (SS04-019) 3,931,503.00$ MEASURE I LOCAL PASS-THROUGH FUNDSFIVE YEAR CAPITAL IMPROVEMENT PLANCategorical Projects Total *:ATTACHMENT 2Estimated Total Project CostCONTACT PERSON & TITLE:FY2021/22 Est. Revenue FY2022/23 Est. RevenueNamed Projects:FY2020/21 Est. Revenue3,726,502.00$ 3,776,585.00$ 3,827,366.00$ 0%126%$0.0048% 74% 8%$4,709,000.00 $1,813,011.00 $2,837,386.00 $304,000.00(*) = Carryover funds may not be used on Categorical Projects.CONTACT PHONE:RESOLUTION NUMBER:RESOLUTION APPROVAL DATE:CONTACT EMAIL:FY2019/20 Est. RevenueFY2018/19 Est. RevenueIn NMTP Plan?ATP Component?Nexus Project?Broadmoor Boulevard Pavement Rehabilitation (SS-019-XX)Co-op with City of Highland for Sixth Street from Fairfax Lane to Del Rosa Avenue, Elmwood Road from South end to Union Street – Slurry Seal, Ninth St. from 600’ east of Tippecanoe Aveto 1,140’ east of Tippecanoe Av. – Mill & Overlay, Sterling Avenue from 6th Street to 352’ north of 7th Street – Mill & Overlay, Sixth St. from Sterling Ave. to 1,814’ east of Sterling Ave – Mill & Overlay, Sixth Street from Roberts Street to Victoria Avenue – Mill & Overlay, Jane Street from Rogers Lane to easterly terminus – Mill & Overlay, 17th Street from Valaria Drive to Lynwood Way – Remove & Replace, Rockford Avenue from Western Avenue to northerly terminus – Slurry Seal, Mansfield St. from 200’ west of Central Ave. to Central Ave. – Slurry Seal, Central Ave. from 75’ south of Fisher St. north of Mansfield St. –Slurry Seal, Orange Street from Clifton Avenue to Pacific Street – Slurry Seal, Pacific Street from Buckeye Street to Boulder Avenue – Remove & Replace, Atlantic Ave. from Palm Ave. to City Limits east of Seine Ave. – 2” AC Cap, Pacific Street Pavement Rehabilitation from Victoria Avenue to Palm Avenue, Pacific Street Pavement Rehabilitation from Palm Avenue to Church Avenue, Pacific Street Bikeway Improvements from Guthrie Street to Church Avenue, Tippecanoe Avenue Improvements from 9th Street to Vine Street, 3rd Street near Palm Avenue (SS19-00)ATP Cycle 2 - Safe Route to Schools Project at 3 Locations (SS-17-001) 48th Street between Western Avenue and Magnolia Avenue, Magnolia Avenue between 48th Street and Reservoir Drive, Randall Avenue between Pepper Avenue and Meridian Avenue, Meridian Avenue between Randall Avenue and Los Robles Street, Pepper Avenue between Randall Avenue and Los Robles Street and Perris Hill Park Road between Gilbert Street and Pacific StreetPavement Rehabilitation at Sterling Ave btw Highland Ave and Date Place, California St btw Highland Ave. and Porter St, Tippecanoe Ave between Vine St and 9th St, Irvington Ave btw Chestnut Ave to Palm Ave, Highland Ave btw SR 259 and H St, Highland Ave between "H" Stand "G" St, Magnolia Dr. btw 48th St to Reservoir St, Park Dr. between Morgan Rd to Loyola Dr., Highland Ave btw Sterling Ave to Guthrie Ave, Windsor Dr. between Park Dr. to Morgan Rd (SS18-001) Mountain Avenue and 40th Street Improvements (SS18-004)Sterling Ave Rehabilitation from Pacific Street to Highland Avenue & Conejo and 39th Street SD Replacement (Co-op Project - County Lead) (SS19-XX)PW.2018‐2023 MICIP ‐Local Expenditure Plan‐Attachment 2.xlsx17.c
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CITY OF SAN BERNARDINO MEASURE I FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM EXPENDITURE STRATEGY 2018-2023 The City of San Bernardino will continue to place emphasis on both its regional and sub-regional arterial roadway system. At least fifty percent of the City's Measure I allocation will be earmarked for specific capital projects that are geared toward improving traffic flow and motorist convenience. Failing pavement surfaces will be rehabilitated and traffic striping modified as needed to accommodate increased traffic demand ; and intersection capacity will be improved with new and modified traffic signals.
In addition to the above Capital Improvement Program, San Bernardino will continue to allocate up to fifty percent of its annual Measure I funds towards public works maintenance activities. Maintenance work will continue to include the City's traffic signal systems, sidewalk and curb repair, and pavement repair and overlay on the local street system.
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Packet Pg. 330 Attachment: PW.2018-2013 MICIP - Measure I Expenditure Strategy-Attachment 4 (5699 : Five-Year Capital Improvement Program (FY 2018/19 to
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Packet Pg. 331 Attachment: EHD Subordination 6044 Gregory St - Report (5700 : Subordination of Deed of Trust in Connection with 6044 Gregory Street San
former Agency, in accordance with AB1X 26. On January 23, 2012, the Mayor and City
Council adopted Resolution 2012-19 further confirming that the City would serve as the
“Successor Housing Agency” to the former Redevelopment Agency and perform the
housing functions previously performed by the Agency.
Discussion
The property owner of 6044 Gregory Street, San Bernardino, California, obtained
assistance from the Agency and wishes to refinance the existing first mortgage. To
proceed with refinancing, the new lender and title company require the Agency’s Deed
of Trust to be expressly subordinated to a First Deed of Trust. The property owner of
the property listed above has submitted a subordination request to the Successor
Housing Agency and the application has been underwritten and approved. Presently,
staff requests that the City Manager, or her designee, be authorized to sign and cause
to be recorded the subordination agreement and associated documents which will allow
the property owner to refinance their first mortgage.
2018-19 Goals and Objectives
The proposed resolution aligns with Goal No 4: Ensure Development of a Well-Planned,
Balanced, and Sustainable City, as the subordination supports a wide range of housing
types and levels of affordability to maintain homeownership and to sustain
neighborhoods.
Fiscal Impact
No fiscal impact to the City.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt Resolution No. 2018-236, approving the Subordination of a Deed of
Trust in connection with refinancing of the senior mortgage relating to real property
located at 6044 Gregory Street, San Bernardino, California.
Attachments
Attachment 1 Resolution, Subordination 6044 Gregory Street; Exhibit A -
Subordination Agreement
Ward: 5
Synopsis of Previous Council Actions:
August 2, 2010: Resolution 2010-43 adopted by the Community Development
Commission establishing the Single-Family Beautification Grant/Loan Program.
January 9, 2012: Resolution 2012-12 adopted, confirming the City would serve as
the Successor Agency to the former Redevelopment Agency.
January 23, 2012: Resolution 2012-19 adopted, confirming the City would serve as
the Successor Housing Agency to the former Redevelopment Agency.
8/9/2018 11:37 AM
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Packet Pg. 332 Attachment: EHD Subordination 6044 Gregory St - Report (5700 : Subordination of Deed of Trust in Connection with 6044 Gregory Street San
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RESOLUTION NO. 2018-236
RESOLUTION NO. 2018-236 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING AGENCY
TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, APPROVING A SUBORDINATION OF A DEED OF TRUST IN
CONNECTION WITH A REFINANCING OF THE SENIOR MORTGAGE RELATING
TO REAL PROPERTY LOCATED AT 6044 GREGORY STREET, SAN BERNARDINO,
CALIFORNIA
WHEREAS, on January 9, 2012, the Mayor and City Council of the City of San Bernardino,
California, (“Council”) adopted Resolution No. 2012-12 confirming that the City of San Bernardino
would serve as the Successor Agency to the Redevelopment Agency (“Agency”) of the City of San
Bernardino (“Successor Agency”) effective February 1, 2012, pursuant to AB1X 26 (The
Redevelopment Agency Dissolution Act); and
WHEREAS, on January 23, 2012, the City Council adopted Resolution No. 2012-19 providing
for the City to serve as the Successor Housing Agency and perform the housing functions previously
performed by the Agency; and
WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB1X26 the Oversight Board
is to direct the transfer of housing responsibilities, including all rights, powers, duties,
obligations and assets, to the Successor Housing Agency; and
WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restrictions
on the use of real property such as affordability covenants entered into by the Agency are considered a
housing asset; and
WHEREAS, a Deed of Trust affecting real property located at 6044 Gregory Street, San
Bernardino, California (“Property”) exists as of June 4, 2008, and recorded on June 17, 2008, as
Instrument Number 2008-0275545 in the Official Records of the County of San Bernardino (“Deed
of Trust”); and
/ / /
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Packet Pg. 333 Attachment: EHD Subordination 6044 Gregory St - Reso (5700 : Subordination of Deed of Trust in Connection with 6044 Gregory Street San
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WHEREAS, the terms of the Deed of Trust allow the Trustor to obtain the release of the
security interest of the First Mortgage Lender in the Property for the purpose of a third-party lender
which refinances the purchase money mortgage of the First Mortgage Lender; and
WHEREAS, an escrow has been opened on the Property affected by the Deed of Trust on
which owner(s) (Clifford H. Rodrick) request the subordination so that they can proceed on a refinance
and a clear lenders title policy can be provided to the new lender of the Property; and
WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is a
housing asset and/or housing function, and desires to authorize Successor Housing Agency staff to
transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housing
Agency; and
WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded a
subordination agreement for the purposes of causing the new third-party lender to have a security
interest in the Property senior to that of the Successor Housing Agency; and
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE
CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING
AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AS
FOLLOWS:
Section 1. Pursuant to Health & Safety Code Section 34176, the Successor Housing
Agency to the Redevelopment Agency of the City of San Bernardino does hereby find and determine
that the Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to
execute the Subordination Agreement (attached and incorporated herein as Exhibit “A”) and do all
such acts and things necessary to cause it to be recorded with the San Bernardino County Recorder.
Section 2. This resolution shall take effect upon its adoption and execution in the manner
as required by the City Charter.
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Packet Pg. 334 Attachment: EHD Subordination 6044 Gregory St - Reso (5700 : Subordination of Deed of Trust in Connection with 6044 Gregory Street San
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RESOLUTION NO. 2018-236 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING AGENCY
TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
APPROVING A SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A
REFINANCING OF THE SENIOR MORTGAGE RELATING TO REAL PROPERTY
LOCATED AT 6044 GREGORY STREET, SAN BERNARDINO, CALIFORNIA
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and City
Council of the City of San Bernardino at a _____________________ meeting thereof, held on the
_________ day of ______________________, 2018, by the following vote, to wit:
Council Members Ayes Nays Abstain Absent
MARQUEZ
BARRIOS
VALDIVIA
SHORETT
NICKEL
RICHARD
MULVIHILL
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this day of , 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to Form:
Gary D. Saenz, City Attorney
By:
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Packet Pg. 335 Attachment: EHD Subordination 6044 Gregory St - Reso (5700 : Subordination of Deed of Trust in Connection with 6044 Gregory Street San
When recorded mail to:
City of San Bernardino, acting in its
capacity as the Successor Housing Agency
to the Redevelopment Agency of
the City of San Bernardino
300 North D Street
San Bernardino, CA 92401
Owner Name: Clifford H Rodrick
6044 Gregory Street
San Bernardino, CA 92407
SPACE ABOVE THIS LINE FOR RECORDERS USE.
Form of
SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY
INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER
PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY
INSTRUMENT.
This AGREEMENT, made this day of , 2018, by (Clifford H Rodrick), Owner of the land
hereinafter described and hereinafter referred to as "Owner," and the City of San Bernardino, acting in its capacity as
the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, present owner and
holder of the Deed of Trust and Note;
WITNESSETH
WHEREAS, Owner(s) did on June 4, 2008, execute a Deed of Trust to Fidelity National Title Company, a
California Corporation, as trustee, covering:
LEGAL DESCRIPTION: The land herein after referred to is situated in the City of San Bernardino, County
of San Bernardino, State of California, and is described as follows:
LOT 48, TRACT NO. 10181, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN
BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 154, PAGES
53 TO 55 INCLUSIVE OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER IN SAID
COUNTY (APN 0261-291-24-0-000)
to secure a Note in the sum of $67,500 dated June 4, 2008 in favor of the Redevelopment Agency of the City of San
Bernardino first hereinafter described and hereinafter referred to as "Beneficiary", which Deed of Trust was
recorded June 17, 2008, as Instrument No. 2008-0275545, Official Records of said county;
WHEREAS, all rights and obligations of the Beneficiary have since been transferred to the City of San
Bernardino as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino
(“Successor Beneficiary”) pursuant to Mayor and Common Council Resolution No. 2012-19 dated January 23,
2012;
WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of not to
exceed $153,000, dated ________________________, in favor of Mountain West Financial Inc., hereinafter
referred to as “Lender,” payable with interest and upon the terms and conditions described therein, which Deed of
Trust is to be recorded concurrently herewith; and
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Packet Pg. 336 Attachment: EHD Subordination 6044 Gregory St - Attachment (5700 : Subordination of Deed of Trust in Connection with 6044 Gregory Street
WHEREAS, it is a condition precedent to obtaining said loan that said Deed of Trust last above mentioned
shall unconditionally be and remain at all times a lien or charge upon the land herein before described, prior and
superior to the lien or charge of the Deed of Trust first above mentioned; and
WHEREAS, lender is willing to make said loan provided the Deed of Trust securing the same is a lien or
charge upon the above described property prior and superior to the lien or charge of the Deed of Trust first above
mentioned and provided that Successor Beneficiary will specifically and unconditionally subordinate the lien or
charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of Lender; and
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and
Successor Beneficiary is willing that the Deed of Trust securing the same shall, when recorded, constitute a lien or
charge upon said land which is unconditionally prior and superior to the lien or charge of the Deed of Trust first
above mentioned.
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other
valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to
induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows:
1. That said Deed of Trust securing said Note in favor of Lender, and any renewals or extensions thereof,
shall unconditionally be and remain at all times a lien or charge on the property therein described, prior
and superior to the lien or charge or the Deed of Trust first above mentioned.
2. That Lender would not make its loan above described without this Subordination Agreement.
3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien
or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor
of the lender above referred to and shall supersede and cancel, but only insofar as would affect the
priority between the Deeds of Trust hereinbefore specifically described, any prior agreement as to such
subordination including, but not limited to, those provisions, if any, contained in the Deed of Trust first
above mentioned, which provide for the subordination of the lien or charge thereof to another Deed or
Deeds of Trust or to another mortgage or mortgages.
Successor Beneficiary declares, agrees and acknowledges that:
(a) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor
has Lender represented that it will, see to the application of such proceeds by the person or persons to
whom Lender disburses such proceeds and any application or use of such proceeds for purposes other
than those provided for in such agreement or agreements shall not defeat the subordination herein
made in whole or in part;
(b) Successor Beneficiary intentionally and unconditionally waives, relinquishes and subordinates the lien
or charge of the Deed of Trust first above mentioned in favor of the lien or charge upon said land of
the Deed of Trust in favor of Lender above referred to and understands that in reliance upon, and in
consideration of, this waiver, relinquishment and subordination specific loans and advances are being
and will be make and, as part and parcel thereof, specific monetary and other obligations are being and
will be entered into which would not be made or entered into but for said reliance upon this waiver,
relinquishment and subordination; and
(c) An endorsement has been placed upon the Note secured by the Deed of Trust first above mentioned
that said Deed of Trust has by this instrument been subordinated to the lien or charge of the Deed of
Trust in favor or Lender above referred to.
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Packet Pg. 337 Attachment: EHD Subordination 6044 Gregory St - Attachment (5700 : Subordination of Deed of Trust in Connection with 6044 Gregory Street
NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE
PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A
PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT
OF THE LAND.
City of San Bernardino, acting as the Successor Housing Agency
to the Redevelopment Agency of the City of San Bernardino
_____________________________________ ____________________________________
Andrea M Miller, City Manager Owner
City of San Bernardino
Owner
(ALL SIGNATURES MUST BE ACKNOWLEDGED)
IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT,
THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
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Packet Pg. 338 Attachment: EHD Subordination 6044 Gregory St - Attachment (5700 : Subordination of Deed of Trust in Connection with 6044 Gregory Street
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Packet Pg. 339 Attachment: FN.2018-1 Safety Services Report -Resolution of Intention to Establish Community Facilities District (5701 : Resolution of Intent to
Discussion
The developer, 17329, LLC, a Delaware limited liability company (an affiliate of GFR
Homes), property owner of one residential tract containing 74 proposed lots within the
City (tentative tract 17329) has requested that the City assist them in forming a CFD to
finance the costs of providing public safety services through the levy of a special tax.
Additionally, the resolution designates the balance of the City as eligible areas for future
annexations into the Safety Services CFD if future landowners are conditioned to annex
their property to the CFD. Staff will return to the Mayor and City Council at a
subsequent time to discuss how best to manage future annexations into the Safety
Services CFD for future developments.
The landowners have requested of the City that the area described in Exhibit A of the
Resolution of Intention (Attachment 1) be the initial boundaries of the CFD, that the area
eligible for annexation to the CFD in the future consist of the property as described in
Exhibit B (all property within the City), and that a rate and method of apportionment
(RMA) of the levy of the special taxes be as described in Exhibit D. The RMA provides
that the special tax rate on single family residential property within the CFD be $385 per
home each year, and that the special tax rate on multifamily residential property within
the CFD be $358 per home each year.
The Resolution of Intention is the first step in the process of forming the CFD. It
declares the City’s intention to establish CFD No. 2018-1 and calls for a public hearing.
A public hearing on the matters relating to the formation of the CFD is proposed to take
place on September 19, 2018 at 5:00 PM. At the public hearing the City Council will
formally consider approval to form the CFD and hold an election on the approval of the
special taxes within the CFD.
2018-19 Goals and Objectives
The formation of a community facilities district as described herein is consistent with
Goal No. 4: Ensure Development of a Well-Planned, Balanced, and Sustainable City
and No. 6: Operate in a Fiscally Responsible and Business-Like Manner. The creation
of the Safety Services CFD is a responsible financing mechanism that provides
resources on a long-term basis to fund a portion of the operating costs associated with
the new development within the community.
Fiscal Impact
The costs associated with the formation of CFD 2018-1 are estimated to be $30,000.
These costs will be paid for by the City’s General Fund as the future revenue associated
with the annual special tax levies will benefit the General Fund by reducing the cost of
services it bears.
The initial amount of special tax has been calculated to be $385 per home (single
family) or $358 per home (multifamily) and is fixed for the first five years. Thereafter,
the amount will grow in perpetuity by 4% annually.
8/9/2018 11:38 AM
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Packet Pg. 340 Attachment: FN.2018-1 Safety Services Report -Resolution of Intention to Establish Community Facilities District (5701 : Resolution of Intent to
CFD 2018-1 will gradually generate a significant amount of annual revenue to offset the
cost of providing services to the newly developing areas within the community. For the
current fiscal year there is no revenue impact, but as the initial development sponsoring
the creation of the CFD pulls building permits it will trigger the annual levy, generating
approximately $29,000 each year. As new tracts annex into the district, the annual
revenue will become a very substantial revenue item to help fund the cost of providing
safety services.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt Resolution No. 2018-239 declaring its intention to form CFD 2018-1
(Safety Services) and levying special taxes on property within the district.
Attachments
Attachment 1 Resolution of Intention; Attachments A-D; Appendix B
Attachment 2 Landowner Petition
Ward: All
Synopsis of Previous Council Actions: None
8/9/2018 11:38 AM
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Packet Pg. 341 Attachment: FN.2018-1 Safety Services Report -Resolution of Intention to Establish Community Facilities District (5701 : Resolution of Intent to
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RESOLUTION NO. 2018-239
RESOLUTION NO. 2018-239 OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA DECLARING ITS INTENTION TO
ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES)
OF THE CITY OF SAN BERNARDINO AND AUTHORIZING THE LEVY OF A
SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF
PROVIDING PUBLIC SAFETY SERVICES
WHEREAS, the City of San Bernardino (the “City”) has a received petition signed by
the owner (the “Owner”) of certain of the land which is proposed for inclusion in a proposed
community facilities district which meets the requirements of Sections 53318 and 53319 of
the Government Code of the State of California; and
WHEREAS, the City Council of the City (the “City Council”) desires to adopt this
resolution of intention as provided in Section 53321 of the Government Code of the State of
California to establish a community facilities district consisting of the territory described
in Attachment “A” hereto and incorporated herein by this reference, which the City Council
hereby determines shall be known as “Community Facilities District No. 2018-1 (Safety
Services) of the City of San Bernardino” (“Community Facilities District No. 2018-1” or the
“District”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended,
commencing with Section 53311 of the Government Code (the “Act”) to (1) finance
police protection services (including but not limited to criminal justice services) and
paramedic services described in Attachment “C” hereto and incorporated herein by this
reference (the “Services”), and (2) finance the incidental expenses to be incurred in
connection with forming and administering the District and financing the Services (the
“Incidental Expenses”); and
WHEREAS, pursuant to the alternate procedures provided in Section 53329.6 of the Act,
the City Council proposes to designate the property described in Attachment “B” hereto and
incorporated herein by this references as territory proposed for annexation to Community
Facilities District No. 2018-1 in the future (the “Annexation Territory”), with the condition that a
parcel or parcels within such territory may be annexed and subjected to the special tax of 1
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Packet Pg. 342 Attachment: FN.2018-1 Resolution of Intention to Establish (5701 : Resolution of Intent to Establish Community Facilities District 2018-1 (Safety
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Community Facilities District No. 2018-1 only with the unanimous approval of the owner or
owners of the parcel or parcels at the time of annexation or in compliance with other procedures
established by the Act; and
WHEREAS, the City Council further intends to approve an estimate of the costs of the
Services and the Incidental Expenses for Community Facilities District No. 2018-1; and
WHEREAS, it is the intention of the City Council to consider financing the Services and
the Incidental Expenses through the formation of Community Facilities District No. 2018-1 and
the levy of a special tax to pay for such Services and Incidental Expenses; and
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.
SECTION 2. A community facilities district is proposed to be established under the terms
of the Act. It is further proposed that the boundaries of the community facilities district shall be the
legal boundaries as described in the boundary map attached hereto as Attachment “A,” which
boundaries shall, upon recordation of the boundary map for the District, include the entirety of any
parcel initially subject to taxation by the District. The City Clerk is hereby directed to sign the
original map of the District and record it with all proper endorsements thereon with the Assessor-
Recorder-County Clerk of the County of San Bernardino within 15 days after the adoption of this
resolution, all as required by Section 3113 of the Streets and Highways Code of the State of
California.
SECTION 3. The City Council further proposes to designate the property described in
Attachment “B” hereto as property proposed for annexation into the District in the future, with the
condition that a parcel or parcels within such territory may be annexed to the District and subject to
taxation by the District only with the unanimous approval of the owner or owners of such parcel or
parcels at the time that such parcel or parcels are annexed to the District.
SECTION 4. The name of the proposed community facilities district shall be “Community
Facilities District No. 2018-1 (Safety Services) of the City of San Bernardino.”
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SECTION 5. The Services proposed to be provided for the benefit of Community Facilities
District No. 2018-1 are public services as defined in the Act, and this City Council finds and
determines that the Services to be financed are in addition to those provided in the initial territory of
the District at the present time and do not supplant services already available within such territory of
the District at the present time. The City Council hereby finds and determines that the description of
the Services herein is sufficiently informative to allow taxpayers within the proposed District,
including the Annexation Territory, to understand what the funds of the District may be used to
finance. The Incidental Expenses expected to be incurred include the costs of planning the Services,
the costs of forming the District, the cost of levying and collecting a special tax within the proposed
District and the cost of administration.
SECTION 6. Except where funds are otherwise available, it is the intention of the City
Council to levy annually in accordance with the procedures contained in the Act a separate special
tax, secured by recordation of a continuing lien against all nonexempt real property in the District,
sufficient to pay for the Services and the Incidental Expenses. Notwithstanding the foregoing, the
District shall not levy the special tax for Services or record a special tax lien on property within the
Annexation Territory until the owner or owners of the parcel or parcels thereof have given their
unanimous approval of the parcel’s or parcels’ annexation to the District. The rate and method of
apportionment and manner of collection of the special taxes are described in detail in
Attachment “D” attached hereto, which Attachment “D” is incorporated herein by this reference.
Attachment “D” allows each landowner within the District to estimate the maximum amount that
may be levied against each parcel.
The special taxes for Services may be increased by an amount not to exceed four percent
(4%) per fiscal year, commencing on July 1, 2024, to the extent permitted in the Rate and
Method. The special tax for Services may be levied for such period as the Services are needed,
as further described in Attachment “D” hereto, provided that under no circumstances will such
special tax be increased with respect to residential property as a consequence of delinquency or
default by the owner of any other parcel or parcels within the District by more than ten percent.
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The special taxes are based on the expected demand that each parcel of real property
within proposed Community Facilities District No. 2018-1 will place on the Services. The City
Council hereby determines that the proposed Services are necessary to meet the increased
demand placed upon the City and the existing police and paramedic services in the City as a
result of the development of the land proposed for inclusion in the District. The City Council
hereby determines the rate and method of apportionment of the special taxes set forth in
Attachment “D” to be reasonable. The special tax is apportioned to each parcel on the foregoing
basis pursuant to Section 53325.3 of the Act and such special taxes are not on or based upon the
value or ownership of real property.
SECTION 7. A public hearing (the “Hearing”) on the establishment of the proposed
Community Facilities District No. 2018-1, the proposed rate and method of apportionment of the
special taxes to finance the Services and the Incidental Expenses shall be held at 5:00 p.m., or as
soon thereafter as practicable, on September 19, 2018, at the City Council Chamber, 201 North “E”
Street, San Bernardino, California. Should the City Council determine to form the District, a special
election will be held to authorize the levy of the special taxes in accordance with the procedures
contained in Government Code Section 53326. If held, the proposed voting procedure at the election
will be a landowner vote with each landowner who is the owner of record of land within the District
(excluding the Annexation Territory) at the close of the Hearing, or the authorized representative
thereof, having one vote for each acre or portion thereof owned within the proposed District. Ballots
for the special election may be distributed by mail or by personal service.
SECTION 8. The City Council does not intend to make any adjustment in property taxation
pursuant to Sections 53313.6 and 53313.7 of the Act.
SECTION 9. At the time and place set forth above for the Hearing, any interested person,
including all persons owning lands or registered to vote within proposed Community Facilities
District No. 2018-1, may appear and be heard.
SECTION 10. Each City officer who is or will be responsible for administering the
proposed Community Facilities District No. 2018-1, if it is established, is hereby directed to study
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the proposed District and, at or before the time of the above-mentioned Hearing, file a report with the
City Council containing a brief description of Services by type which will in his or her opinion be
required to meet adequately the needs of Community Facilities District No. 2018-1 and an estimate
of the cost of providing those Services, and an estimate of the fair and reasonable cost of Incidental
Expenses to be incurred.
SECTION 11. The District may accept advances of funds or work-in-kind from any source,
including, but not limited to, private persons or private entities, for any authorized purpose,
including, but not limited to, paying any cost incurred in creating Community Facilities District
No. 2018-1. The District may enter into an agreement with the person or entity advancing the funds
or work-in-kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity
for the value, or cost, whichever is less, of the work-in-kind, as determined by the City Council, with
or without interest.
SECTION 12. The City Clerk is hereby directed to publish a notice (the “Notice”) of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation
published in the area of proposed Community Facilities District No. 2018-1. The City Clerk is
further directed to mail a copy of the Notice to each landowner within the boundaries of the District
at least 15 days prior to the Hearing. The Notice shall contain the text or a summary of this
Resolution, the time and place of the Hearing, a statement that the testimony of all interested persons
or taxpayers will be heard, a description of the protest rights of the registered voters and landowners
in the proposed district and a description of the proposed voting procedure for the election required
by the Act. Such publication shall be completed at least seven (7) days prior to the date of the
Hearing.
SECTION 13. This Resolution shall be effective upon its adoption.
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RESOLUTION NO. 2018-239 OF THE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA DECLARING ITS INTENTION TO
ESTABLISH COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES)
OF THE CITY OF SAN BERNARDINO, AND TO AUTHORIZE THE LEVY OF A
SPECIAL TAX ON PROPERTY WITHIN THE DISTRICT TO PAY THE COSTS OF
PROVIDING PUBLIC SAFETY SERVICES.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a ____________ meeting thereof, held on the
_______ day of __________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this ________ day of ______________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: _________________________
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ATTACHMENT A
Proposed Boundaries
Community Facilities District No. 2018-1 (Safety Services)
of the City of San Bernardino,
County of San Bernardino, California
A-1
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ATTACHMENT B
Annexation Territory
Community Facilities District No. 2018-1 (Safety Services)
of the City of San Bernardino,
County of San Bernardino, California
B-1
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ATTACHMENT C
Types of Services
to be Financed by
Community Facilities District No. 2018-1 (Safety Services)
of the City of San Bernardino
The services which may be funded with proceeds of the special tax of CFD No. 2018-1,
as provided by Section 53313 of the Act, will include some or all of the costs attributable to
public safety. Capitalized terms used and not defined herein shall have the meanings set forth in
the Rate and Method of Apportionment of Special Tax for CFD No. 2018-1.
These services include police protection services (including but not limited to criminal
justice services) and paramedic services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the
special tax may be expended to pay “Administrative Expenses” as said term is defined in the
Rate and Method of Apportionment and to establish an operating reserve for the costs of services
as determined by the Administrator.
The above services shall be limited to those provided within the boundaries of CFD
No. 2018-1 and the Annexation Area of CFD No. 2018-1 or for the benefit of the properties
within the boundaries of CFD No. 2018-1 and the Annexation Area of CFD No. 2018-1, as the
boundary is expanded from time to time by anticipated annexations, and said services may be
financed by proceeds of the special tax of CFD No. 2018-1 only to the extent that they are in
addition to those provided in the territory of CFD No. 2018-1 before CFD No. 2018-1 was
created.
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ATTACHMENT D
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES)
OF THE CITY OF SAN BERNARDINO
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel
(defined below) in Community Facilities District No. 2018-1 (Safety Services) (the “CFD
No. 2018-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the
Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of
San Bernardino, acting in its capacity as the legislative body of CFD No. 2018-1, by applying the
rate and method of apportionment set forth below. All of the real property in CFD No. 2018-1,
unless exempted by law or by the provisions herein, shall be taxed to the extent and in the
manner provided herein.
A. DEFINITIONS
“Administrative Expenses” means the actual or reasonably estimated costs directly
related to the formation and administration of CFD No. 2018-1 including, but not limited
to: the costs of computing the Special Taxes and preparing the annual Special Tax
collection schedules (whether by the City or designee thereof or both); the costs to the
City, CFD No. 2018-1, or any designee thereof associated with fulfilling the CFD
No. 2018-1 reporting requirements; the costs associated with responding to public
inquiries regarding the Special Taxes; the costs of the City, CFD No. 2018-1 or any
designee thereof related to an appeal of the Special Tax; and the City's annual
administration fees and third party expenses. Administrative Expenses shall also include
amounts estimated or advanced by the City or CFD No. 2018-1 for any other
administrative purposes of CFD No. 2018-1, including attorney's fees and other costs
related to commencing and pursuing to completion any foreclosure of delinquent Special
Taxes.
“Administrator” means the City Manager of the City of San Bernardino, or his or her
designee.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s
Parcel Number by the County Assessor of the County of San Bernardino.
“Assessor’s Parcel Map” means an official map of the Assessor of the County
designating parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by
the County Assessor of the County of San Bernardino.
“CFD” or “CFD No. 2018-1” means the City of San Bernardino Community Facilities
District No. 2018-1 (Safety Services).
“City” means the City of San Bernardino.
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“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a
building permit for new construction has been issued on or prior to June 1 preceding the
Fiscal Year in which the Special Tax is being levied.
“Developed Multi-Family Property” means all Assessor's Parcels of Developed
Property for which a building permit or use permit for the construction of a residential
structure with two or more Residential Units that share a single Assessor's Parcel
Number, as determined by the Administrator, has been issued prior to June 1 preceding
the Fiscal Year in which the Special Tax is being levied.
“Developed Single Family Property” means any residential property other than a
Developed Multi-Family Property on an Assessor’s Parcel for which a building permit
for new construction has been issued by the City on or prior to June 1 preceding the
Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the
Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including
the following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied
within the CFD for any Fiscal Year.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax
levy to the Maximum Special Tax is the same for all Assessor’s Parcels.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used
as a domicile by one or more persons, as determined by the Administrator.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which
completed Residential Units have been constructed or for which building permits have
been or may be issued for purposes of constructing one or more Residential Units.
“Services” means services permitted under the Mello-Roos Community Facilities Act of
1982 including, without limitation, those services authorized to be funded by CFD
No. 2018-1 as set forth in Appendix B.
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s
Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay
for certain costs as required to meet the public safety needs of CFD No. 2018-1 in both
the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the
direct costs for (i) police protection services, (ii) paramedic services, (iii) fund an
operating reserve for the costs of Services as determined by the Administrator, and
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(iv) Administrative Expenses. Under no circumstances shall the Special Tax
Requirement include funds for bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2018-1, which are
not Exempt Property.
“Taxable Unit” means a Residential Unit.
B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX
RATES
As of July 1 of each Fiscal Year, commencing July 1, 2019, the Council shall determine
the Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s
Parcels within the CFD which constitute a Developed Single Family Property or a
Developed Multi-Family Property until the aggregate amount of Special Tax equals the
Special Tax Requirement. The Special Tax shall be levied Proportionately on all
Assessor’s Parcels of Developed Property up to 100% of the applicable Maximum
Special Tax to satisfy the Special Tax Requirement.
The Maximum Special Tax for Fiscal Year 2019-2020 for a Developed Single Family
Property and a Developed Multi-Family Property are shown below in Table 1.
TABLE 1
MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2019-2020
Description
Taxable
Unit
Maximum
Special Tax
Developed Single Family Property RU $385
Developed Multi-Family Property RU $358
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2024 the Maximum Special Tax for Developed
Property shall increase by four percent (4.0%).
No Special Tax shall be levied on property which, at the time of adoption of the
Resolution of Formation for CFD No. 2018-1 is an Exempt Property.
C. TERM OF SPECIAL TAX
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services
are being provided within the boundaries of CFD No. 2018-1.
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D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2018-1, any Assessor’s
Parcel in any of the following categories; (i) Assessor’s Parcels which are owned by,
irrevocably offered for dedication, encumbered by or restricted in use by any public
entity; (ii) Assessor’s Parcels with public or utility easements making impractical their
utilization for other than the purposes set forth in the easement; (iii) Assessor’s Parcels
which are privately owned but are encumbered by or restricted solely for public uses;
(iv) any Assessor’s Parcel which is in use in the performance of a public function as
determined by the Administrator; or (v) any Assessor’s Parcel which is not a Developed
Single Family Property or a Developed Multi-Family Property.
E. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not
correct may file a written notice of appeal with the City not later than twelve months after
having paid the first installment of the Special Tax that is disputed. The Administrator
shall promptly review the appeal, and if necessary, meet with the property owner,
consider written and oral evidence regarding the amount of the Special Tax, and rule on
the appeal. If the Administrator’s decision requires that the Special Tax for an Assessor’s
Parcel be modified or changed in favor of the property owner, a cash refund shall not be
made, but an adjustment shall be made to the Special Tax on that Assessor’s Parcel in the
subsequent Fiscal Year(s).
F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year 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. However, the District may collect the Special Tax at a
different time or in a different manner if necessary to meet its financial obligations.
The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant
to Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien
and shall secure each levy of Maximum Special Taxes. The lien of Maximum Special
Taxes shall continue in force and effect until the Special Tax ceases to be levied in the
manner provided by Section 53330.5 of the Government Code.
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APPENDIX A
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES)
SUMMARY
Safety Services - It is estimated that the cost of providing police and paramedic services
being funded by the Special Tax for the Community Facilities District No. 2018-1 (Safety
Services) will be as follows for the Fiscal Year 2019-2020:
$385 per residential unit for Developed Single Family Residential Property
$358 per residential unit for Developed Multi-Family Residential Property
Annual Escalation - On each July 1, commencing on July 1, 2024 the Maximum Special
Tax for Developed Property shall increase by four percent (4.0%).
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
2019-
20 TR 17329
Verdemont
Ranch 74
Developed
Single Family
Property $385 17329, LLC
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APPENDIX B
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2018-1,
as provided by Section 53313 of the Act, will include some or all of the costs attributable to
public safety.
These services include police protection services (including but not limited to criminal
justice services) and paramedic services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the
special tax may be expended to pay “Administrative Expenses” as said term is defined in the
Rate and Method of Apportionment and to establish an operating reserve for the costs of services
as determined by the Administrator.
The above services shall be limited to those provided within the boundaries of CFD
No. 2018-1 for the benefit of the properties within the boundaries of CFD No. 2018-1 and said
services may be financed by proceeds of the special tax of CFD No. 2018-1 only to the extent
that they are in addition to those provided in the territory of CFD No. 2018-1 before CFD
No. 2018-1 was created.
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Packet Pg. 356 Attachment: FN.2018-1 Resolution of Intention to Establish (5701 : Resolution of Intent to Establish Community Facilities District 2018-1 (Safety
PETITION TO THE CITY COUNCIL OF THE CITY OF SAN
BERNARDINO REQUESTING INSTITUTION OF
PROCEEDINGS FOR ESTABLISHMENT OF A COMMUNITY
FACILITIES DISTRICT (COMMUNITY FACILITIES
DISTRICT NO. 2018-1 OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, (SAFETY SERVICES)
1. The undersigned (the “Owner”) is the owner of the land described in Exhibit A
hereto (the “Property”), which land is expected to be included within the boundaries of a
community facilities district hereby proposed to be established. The Property is located within
the boundaries of the City of San Bernardino (the “City”), County of San Bernardino.
2. The Owner requests that the City Council of the City of San Bernardino (the “City
Council”) institute proceedings to establish a community facilities district to be known as
“Community Facilities District No. 2018-1 of the City of San Bernardino (Safety Services)”
(referred to herein as the “District”) pursuant to Chapter 2.5 (commencing with Section 53311),
Part 1, Division 2, Title 5, of the Government Code of the State of California, commonly known
as the “Mello-Roos Community Facilities Act of 1982” (the “Act”), to include all of the
Property. The proposed rate and method of apportionment for the District is set forth in Exhibit
B hereto.
3. The boundaries of the territory which is proposed for inclusion in the District are
those depicted in Exhibit C hereto. The Owner acknowledges that the City proposes to designate
the territory depicted in Exhibit D hereto as property that may be annexed to the District in the
future in accordance with the Act.
4. The Owner requests that the proposed District fund police protection services
(including but not limited to criminal justice services) and paramedic services (collectively, the
“Services”). In addition, the District may fund actual or reasonably estimated costs directly
related to the formation, annexation, and administration of the District including, but not limited
to: the costs of computing the special taxes of the District and preparing the annual special tax
collection schedules (whether by the City or designee thereof or both); the costs to the City, the
District, or any designee thereof associated with fulfilling any District reporting requirements;
the costs associated with responding to public inquiries regarding the special taxes of the
District; the costs of the City, the District or any designee thereof related to an appeal of the
special taxes of the District; and the City's annual administration fees and third party expenses.
Such administrative expenses shall also include amounts estimated or advanced by the City or
the District for any other administrative purposes of the District, including attorney's fees and
other costs related to commencing and pursuing to completion any foreclosure of delinquent
special taxes of the District.
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Packet Pg. 357 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
5. The Owners further request that, the City Council, as legislative body of the
District, annually levy special taxes on the property within the District to provide for the
Services, and for the payment of administrative expenses of the District and for such services as
the City Council deems appropriate.
Dated: August __, 2018 17329, LLC, a Delaware limited liability
company
By:
Name:
Title:
2
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Packet Pg. 358 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
EXHIBIT A
LEGAL DESCRIPTION
Assessor Parcel Nos.
0348-111-51
0348-111-52
0261-031-10
0261-031-11
0261-062-11
0261-062-12
0261-062-13
0261-062-14
A-1
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Packet Pg. 359 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
EXHIBIT B
RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR
COMMUNITY FACILITIES DISTRICT NO. 2018-1 (SAFETY SERVICES)
OF THE CITY OF SAN BERNARDINO
A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel
(defined below) in Community Facilities District No. 2018-1 (Safety Services) (the “CFD No.
2018-1” or “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the
Fiscal Year beginning July 1, 2019, in an amount determined by the City Council of the City of
San Bernardino, acting in its capacity as the legislative body of CFD No. 2018-1, by applying the
rate and method of apportionment set forth below. All of the real property in CFD No. 2018-1,
unless exempted by law or by the provisions herein, shall be taxed to the extent and in the
manner provided herein.
A. DEFINITIONS
“Administrative Expenses” means the actual or reasonably estimated costs directly related
to the formation and administration of CFD No. 2018-1 including, but not limited to: the
costs of computing the Special Taxes and preparing the annual Special Tax collection
schedules (whether by the City or designee thereof or both); the costs to the City, CFD No.
2018-1, or any designee thereof associated with fulfilling the CFD No. 2018-1 reporting
requirements; the costs associated with responding to public inquiries regarding the Special
Taxes; the costs of the City, CFD No. 2018-1 or any designee thereof related to an appeal of
the Special Tax; and the City's annual administration fees and third party expenses.
Administrative Expenses shall also include amounts estimated or advanced by the City or
CFD No. 2018-1 for any other administrative purposes of CFD No. 2018-1, including
attorney's fees and other costs related to commencing and pursuing to completion any
foreclosure of delinquent Special Taxes.
“Administrator” means the City Manager of the City of San Bernardino, or his or her
designee.
“Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel
Number by the County Assessor of the County of San Bernardino.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating
parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means the identification number assigned to a parcel by the
County Assessor of the County of San Bernardino.
“CFD” or “CFD No. 2018-1” means the City of San Bernardino Community Facilities
District No. 2018-1 (Safety Services).
“City” means the City of San Bernardino.
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Packet Pg. 360 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property for which a
building permit for new construction has been issued on or prior to June 1 preceding the
Fiscal Year in which the Special Tax is being levied.
“Developed Multi-Family Property” means all Assessor's Parcels of Developed Property
for which a building permit or use permit for the construction of a residential structure with
two or more Residential Units that share a single Assessor's Parcel Number, as determined by
the Administrator, has been issued prior to June 1 preceding the Fiscal Year in which the
Special Tax is being levied.
“Developed Single Family Property” means any residential property other than a
Developed Multi-Family Property on an Assessor’s Parcel for which a building permit for
new construction has been issued by the City on or prior to June 1 preceding the Fiscal Year
in which the Special Tax is being levied.
“Exempt Property” means all Assessors’ Parcels designated as being exempt from the
Special Tax as provided for in Section D.
“Fiscal Year” means the period from and including July 1st of any year to and including the
following June 30th.
“Maximum Special Tax” means the Maximum Special Tax, as applicable, levied within
the CFD for any Fiscal Year.
“Proportionately” means for Taxable Property, that the ratio of the actual Special Tax levy
to the Maximum Special Tax is the same for all Assessor’s Parcels.
“Residential Unit” or "RU" means a residential unit that is used or intended to be used as a
domicile by one or more persons, as determined by the Administrator.
“Residential Property” means all Assessor’s Parcels of Taxable Property upon which
completed Residential Units have been constructed or for which building permits have been
or may be issued for purposes of constructing one or more Residential Units.
“Services” means services permitted under the Mello-Roos Community Facilities Act of
1982 including, without limitation, those services authorized to be funded by CFD No. 2018-
1 as set forth in Appendix B.
“Special Tax” means the Special Tax to be levied in each Fiscal Year on each Assessor’s
Parcel of Taxable Property.
"Special Tax Requirement" means the amount to be collected in any Fiscal Year to pay for
certain costs as required to meet the public safety needs of CFD No. 2018-1 in both the
current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs
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Packet Pg. 361 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
for (i) police protection services, (ii) paramedic services, (iii) fund an operating reserve for
the costs of Services as determined by the Administrator, and (iv) Administrative Expenses.
Under no circumstances shall the Special Tax Requirement include funds for bonds.
"Taxable Property" means all Assessor’s Parcels within CFD No. 2018-1, which are not
Exempt Property.
“Taxable Unit” means a Residential Unit.
B. RATE AND METHOD OF APPORTIONMENT OF MAXIMUM SPECIAL TAX
RATES
As of July 1 of each Fiscal Year, commencing July 1, 2019, the Council shall determine the
Special Tax Requirement and shall levy the Special Tax upon each of the Assessor’s Parcels
within the CFD which constitute a Developed Single Family Property or a Developed Multi-
Family Property until the aggregate amount of Special Tax equals the Special Tax
Requirement. The Special Tax shall be levied Proportionately on all Assessor’s Parcels of
Developed Property up to 100% of the applicable Maximum Special Tax to satisfy the
Special Tax Requirement.
The Maximum Special Tax for Fiscal Year 2019-2020 for a Developed Single Family
Property and a Developed Multi-Family Property are shown below in Table 1.
TABLE 1
MAXIMUM SPECIAL TAX RATES
FISCAL YEAR 2019-2020
Description
Taxable
Unit
Maximum
Special Tax
Developed Single Family
Property RU $385
Developed Multi-Family
Property RU $358
Increase in the Maximum Special Tax
On each July 1, commencing on July 1, 2024 the Maximum Special Tax for Developed
Property shall increase by four percent (4.0%).
No Special Tax shall be levied on property which, at the time of adoption of the Resolution
of Formation for CFD No. 2018-1 is an Exempt Property.
C. TERM OF SPECIAL TAX
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Packet Pg. 362 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
For each Fiscal Year, the Maximum Special Taxes shall be levied as long as the Services are
being provided within the boundaries of CFD No. 2018-1.
D. EXEMPTIONS
The City shall classify as Exempt Property within CFD No. 2018-1, any Assessor’s Parcel in
any of the following categories; (i) Assessor’s Parcels which are owned by, irrevocably
offered for dedication, encumbered by or restricted in use by any public entity; (ii)
Assessor’s Parcels with public or utility easements making impractical their utilization for
other than the purposes set forth in the easement; (iii) Assessor’s Parcels which are privately
owned but are encumbered by or restricted solely for public uses; (iv) any Assessor’s Parcel
which is in use in the performance of a public function as determined by the Administrator;
or (v) any Assessor’s Parcel which is not a Developed Single Family Property or a
Developed Multi-Family Property.
E. APPEALS
Any property owner claiming that the amount or application of the Special Taxes are not
correct may file a written notice of appeal with the City not later than twelve months after
having paid the first installment of the Special Tax that is disputed. The Administrator shall
promptly review the appeal, and if necessary, meet with the property owner, consider written
and oral evidence regarding the amount of the Special Tax, and rule on the appeal. If the
Administrator’s decision requires that the Special Tax for an Assessor’s Parcel be modified
or changed in favor of the property owner, a cash refund shall not be made, but an adjustment
shall be made to the Special Tax on that Assessor’s Parcel in the subsequent Fiscal Year(s).
F. MANNER OF COLLECTION
The Maximum Special Taxes levied in each Fiscal Year 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. However, the District may collect the Special Tax at a different time or
in a different manner if necessary to meet its financial obligations.
The Maximum Special Taxes when levied shall be secured by the lien imposed pursuant to
Section 3115.5 of the Streets and Highways Code. This lien shall be a continuing lien and
shall secure each levy of Maximum Special Taxes. The lien of Maximum Special Taxes
shall continue in force and effect until the Special Tax ceases to be levied in the manner
provided by Section 53330.5 of the Government Code.
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Packet Pg. 363 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
APPENDIX A
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES)
SUMMARY
Safety Services - It is estimated that the cost of providing police and paramedic services being
funded by the Special Tax for the Community Facilities District No. 2018-1 (Safety Services)
will be as follows for the Fiscal Year 2019-2020:
$385 per residential unit for Developed Single Family Residential Property
$358 per residential unit for Developed Multi-Family Residential Property
Annual Escalation - On each July 1, commencing on July 1, 2024 the Maximum Special Tax
for Developed Property shall increase by four percent (4.0%).
Fiscal
Year
Tract/
APN
Development
Name
No. of
Taxable
Units
Land Use
Category
Maximum
Special Tax Subdivider
2019-20 TR 17329
Verdemont
Ranch 74
Developed Single
Family Property $385 17329, LLC
2019-20 TR 20006
Rancho
Palma 120
Developed Single
Family Property $385 Strata Palma, LLC
B-5
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Packet Pg. 364 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
APPENDIX B
CITY OF SAN BERNARDINO
COMMUNITY FACILITIES DISTRICT NO. 2018-1
(SAFETY SERVICES)
DESCRIPTION OF AUTHORIZED SERVICES
The services which may be funded with proceeds of the special tax of CFD No. 2018-1, as
provided by Section 53313 of the Act, will include some or all of the costs attributable to public
safety.
These services include police protection services (including but not limited to criminal justice
services) and paramedic services.
In addition to payment of the cost and expense of the forgoing services, proceeds of the special
tax may be expended to pay “Administrative Expenses” as said term is defined in the Rate and
Method of Apportionment and to establish an operating reserve for the costs of services as
determined by the Administrator.
The above services shall be limited to those provided within the boundaries of CFD No. 2018-1
for the benefit of the properties within the boundaries of CFD No. 2018-1 and said services may
be financed by proceeds of the special tax of CFD No. 2018-1 only to the extent that they are in
addition to those provided in the territory of CFD No. 2018-1 before CFD No. 2018-1 was
created.
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Packet Pg. 365 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
EXHIBIT C
BOUNDARY MAP
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Packet Pg. 366 Attachment: FN.2018-1 Safety Services Petition Lawn Owner Petition City of San Bernardino CDF (5701 : Resolution of Intent to Establish
EXHIBIT D
ANNEXATION TERRITORY BOUNDARY MAP
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Packet Pg. 368 Attachment: FN.2018-2 Verdemont Ranch Report -Resolution of Intention to Establish Community Facilities District- Incur Bonded Indebtedness
Discussion
The developer, 17329, LLC, a Delaware limited liability company (an affiliate of GFR
Homes), property owner of a residential tract containing 74 proposed lots within the City
(tentative tract 17329), has requested that the City assist them in forming a community
facilities district to finance the costs of certain public improvements through the levy of a
special tax and the issuance of bonds in an amount not to exceed $5,000,000.
The landowner has requested of the City that the area described in Attachment A of the
Resolution of Intention be the boundaries of the CFD and that a Rate and Method of
Apportionment (RMA) of the special taxes be levied as described in Attachment C.
The RMA provides that the special tax rates on residential property within the CFD will
range from $2,567 to $2,892 per home each year, depending on the size of the home.
The Resolution of Intention is the first step in the process of forming the CFD. The
attached resolutions declare the City’s intention to establish CFD No. 2018-2, its
intention to incur bonded indebtedness by CFD No. 2018-2 and call a public hearing. A
public hearing on the matters related to the formation of the CFD is proposed for
September 19, 2018. At the public hearing the City Council will formally consider
approval to form the CFD and hold an election on the approval of the special taxes and
the need to incur bonded indebtedness within the CFD.
2018-19 Goals and Objectives
The formation of a community facilities district as described herein is consistent with
Goal No. 4 Ensure Development of a Well-Planned, Balanced, and Sustainable City and
No. 6 Operate in a Fiscally Responsible and Business-Like Manner. The creation of the
special districts provides a responsible financing mechanism to fund the infrastructure
associated with new development and provides the resources on a long-term basis to
fund the costs associated with the financial impact of the new development within the
community.
Fiscal Impact
The developer has made an initial deposit of $40,000 to fund the costs of the formation
proceedings, which may be reimbursed to the developer in accordance with the funding
agreement to be approved at the time the CFD is formed. The City will use these funds
to pay the cost of the special tax consultant, the formation counsel, and to reimburse
City for staff time spent on the formation of CFD 2018-2.
Annually, CFD No. 2018-2 will levy special taxes on all of the taxable property within its
boundaries in accordance with the RMA in order to pay (reimburse) for the cost of
facilities, debt service on bonds and annual administration of the CFD. Any bonds
issued by CFD No. 2018-2 are not obligations of the City and will be secured solely by
the special taxes levied in CFD No. 2018-2.
Conclusion
1. It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt Resolution No. 2018-240 declaring its intention to form CFD
8/9/2018 11:39 AM
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Packet Pg. 369 Attachment: FN.2018-2 Verdemont Ranch Report -Resolution of Intention to Establish Community Facilities District- Incur Bonded Indebtedness
2018-2 (Verdemont Ranch), levy a special tax to pay for the acquisition or
construction of certain facilities, and to pay debt service on bonded
indebtedness, and
2. It is recommended that the Mayor and City Council of the City of San Bernardino,
California, adopt Resolution No. 2018-241 to incur bonded indebtedness in an
amount not to exceed $5,000,000 within the boundaries of CFD 2018-2 of the
City of San Bernardino.
Attachments
Attachment 1 Resolution of Intention to Establish
Attachment 2 Resolution to Incur Bonded Indebtedness
Attachment 3 Landowner Petition
Ward: All
Synopsis of Previous Council Actions: None
8/9/2018 11:39 AM
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Packet Pg. 370 Attachment: FN.2018-2 Verdemont Ranch Report -Resolution of Intention to Establish Community Facilities District- Incur Bonded Indebtedness
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RESOLUTION NO. 2018-240
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2018-2 (VERDEMONT RANCH) OF THE
CITY OF SAN BERNARDINO TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO
PAY THE COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES,
AND TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS
WHEREAS, the City of San Bernardino (the “City”) received a petition signed by the
owner of more than ten percent of the land within the boundaries of the territory which is
proposed for inclusion in a proposed community facilities district, which petition meets the
requirements of Sections 53318 and 53319 of the Government Code of the State of California;
and
WHEREAS, the City Council of the City (the “City Council”) desires to adopt this
resolution of intention as provided in Section 53321 of the Government Code of the State of
California to establish a community facilities district consisting of the territory described in
Attachment “A” hereto and incorporated herein by this reference, which the City Council hereby
determines shall be known as “Community Facilities District No. 2018-2 (Verdemont Ranch) of
the City of San Bernardino” (“Community Facilities District No. 2018-2” or the “District”)
pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with
Section 53311 of the Government Code (the “Act”) to finance (1) the purchase, construction,
modification, expansion, improvement and/or rehabilitation of certain real or other tangible
property described in Attachment “B” hereto and incorporated herein by this reference, including
all furnishings, equipment and supplies related thereto (collectively, the “Facilities”), which
Facilities have a useful life of five years or longer, and (2) the incidental expenses to be incurred
in connection with financing the Facilities and forming and administering the District (the
“Incidental Expenses”); and
WHEREAS, the City Council further intends to approve an estimate of the costs of the
Facilities and the Incidental Expenses for Community Facilities District No. 2018-2; and
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WHEREAS, it is the intention of the City Council to consider financing the Facilities
and the Incidental Expenses through the formation of Community Facilities District No. 2018-2
and the issuance of bonded indebtedness in an amount not to exceed $5,000,000 with respect to
the Facilities and the Incidental Expenses and the levy of a special tax to pay for the Facilities
and the Incidental Expenses (the “Special Tax”) and to pay debt service on the bonded
indebtedness, provided that the bond sale and such Special Tax levy are approved at an election
to be held within the boundaries of Community Facilities District No. 2018-2;
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.
SECTION 2. A community facilities district is proposed to be established under the
terms of the Act. It is further proposed that the boundaries of the community facilities district
shall be the legal boundaries as described in Attachment “A” hereto, which boundaries shall,
upon recordation of the boundary map for the District, include the entirety of any parcel subject
to taxation by the District, and as depicted on the map of the proposed Community Facilities
District No. 2018-2 which is on file with the City Clerk. The City Clerk is hereby directed to
sign the original map of the District and record it with all proper endorsements thereon with the
Assessor-Recorder-County Clerk of the County of San Bernardino within 15 days after the
adoption of this resolution, all as required by Section 3111 of the Streets and Highways Code of
the State of California.
SECTION 3. The name of the proposed community facilities district shall be
“Community Facilities District No. 2018-2 (Verdemont Ranch) of the City of San Bernardino.”
SECTION 4. The Facilities proposed to be provided within Community Facilities
District No. 2018-2 are public facilities as defined in the Act, which the City is authorized by law
to construct, acquire, own and operate. The City Council hereby finds and determines that the
description of the Facilities herein is sufficiently informative to allow taxpayers within the
proposed District to understand what the funds of the District may be used to finance. The
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Incidental Expenses expected to be incurred include the cost of planning and designing the
Facilities, the costs of forming the District, issuing bonds and levying and collecting the Special
Tax within the proposed District. The Facilities may be acquired from one or more of the
property owners within the District as completed public improvements or may be constructed
from bond or Special Tax proceeds.
All or a portion of the Facilities may be purchased with District funds as completed
public facilities pursuant to Section 53314.9 or as discrete portions or phases pursuant to Section
53313.51 of the Act and/or constructed with District funds pursuant to Section 53316.2 of the
Act. Any portion of the Facilities may be financed through a lease or lease-purchase
arrangement if the District hereafter determines that such arrangement is of benefit to the
District.
SECTION 5. Except where funds are otherwise available, it is the intention of the City
Council to levy annually in accordance with the procedures contained in the Act the Special Tax,
secured by recordation of a continuing lien against all nonexempt real property in the District,
sufficient to pay for: (i) the Facilities and Incidental Expenses; and (ii) the principal and interest
and other periodic costs on bonds or other indebtedness issued to finance the Facilities and
Incidental Expenses, including the establishment and replenishment of any reserve funds deemed
necessary by the District, and any remarketing, credit enhancement and liquidity facility fees
(including such fees for instruments which serve as the basis of a reserve fund in lieu of cash).
The rate and method of apportionment and manner of collection of the Special Tax are described
in detail in Attachment “C” attached hereto, which Attachment “C” is incorporated herein by this
reference. Attachment “C” allows each landowner within the District to estimate the maximum
amount of the Special Tax that may be levied against each parcel. In the first year in which such
Special Tax is levied, the levy shall include an amount sufficient to repay to the District all
amounts, if any, transferred to the District pursuant to Section 53314 of the Act and interest
thereon.
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If the Special Tax is levied against any parcel used for private residential purposes, (i) the
maximum Special Tax rate shall be specified as a dollar amount which shall be calculated and
established not later than the date on which the parcel is first subject to the Special Tax because
of its use for private residential purposes and shall not be increased over time, (ii) such Special
Tax not shall be levied after fiscal year 2059-60, as described in Attachment “C” hereto, and (iii)
under no circumstances will the Special Tax levied against any such parcel used for private
residential uses be increased as a consequence of delinquency or default by the owner or owners
of any other parcel or parcels within the District by more than ten percent (10%) above the
amount that would have been levied in that fiscal year had there never been any such
delinquencies or defaults.
The Special Tax is based on the expected demand that each parcel of real property within
proposed Community Facilities District No. 2018-2 will place on the Facilities and on the benefit
that each parcel derives from the right to access the Facilities. The City Council hereby
determines that the proposed Facilities are necessary to meet the increased demand placed upon
the City and the existing infrastructure in the City as a result of the development of the land
proposed for inclusion in the District. The City Council hereby determines the rate and method
of apportionment of the special tax with respect to the Special Tax set forth in Attachment “C” to
be reasonable. The Special Tax is apportioned to each parcel on the foregoing basis pursuant to
Section 53325.3 of the Act and such special tax is not on or based upon the value or ownership
of real property. In the event that a portion of the property within Community Facilities District
No. 2018-2 shall become for any reason exempt, wholly or partially, from the levy of the Special
Tax specified on Attachment “C,” the City Council shall, on behalf of Community Facilities
District No. 2018-2, cause the levy to be increased, subject to the limitation of the maximum
Special Tax for a parcel as set forth in Attachment “C,” to the extent necessary upon the
remaining property within proposed Community Facilities District No. 2018-2 which is not
exempt in order to yield the Special Tax revenues required for the purposes described in this
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Section 5. The obligation to pay the Special Tax may be prepaid only as set forth in Section G of
Attachment “C” hereto.
SECTION 6. A public hearing (the “Hearing”) on the establishment of the proposed
Community Facilities District No. 2018-2, the proposed rate and method of apportionment of the
Special Tax and the proposed issuance of bonds to finance the Facilities and the Incidental
Expenses shall be held at 5:00 p.m., or as soon thereafter as practicable, on September 19, 2018,
at the City Council Chamber, 201 North “E” Street, San Bernardino, California. Should the City
Council determine to form the District, a special election will be held to authorize the issuance of
the bonds and the levy of the special tax in accordance with the procedures contained in
Government Code Section 53326. If held, the proposed voting procedure at the election will be a
landowner vote with each landowner who is the owner of record of land within the District at the
close of the Hearing, or the authorized representative thereof, having one vote for each acre or
portion thereof owned within the proposed District. Ballots for the special election may be
distributed by mail or by personal service.
SECTION 7. At the time and place set forth above for the Hearing, the City Council
will receive testimony as to whether the proposed Community Facilities District No. 2018-2 shall
be established and as to the method of apportionment of the special tax and shall consider:
(a) if an ad valorem property tax is currently being levied on property within
proposed Community Facilities District No. 2018-2 for the exclusive purpose of paying principal
of or interest on bonds, lease payments or other indebtedness incurred to finance construction of
capital facilities; and
(b) if the capital facilities to be financed and constructed by Community Facilities
District No. 2018-2 will provide the same services as were provided by the capital facilities
mentioned in subsection (a); and
(c) if the City Council makes the findings specified in subsections (a) and (b) above,
it will consider appropriate action to determine whether the total annual amount of ad valorem
property tax revenue due from parcels within Community Facilities District No. 2018-2, for
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purposes of paying principal and interest on the debt identified in subsection (a) above, shall not
be increased after the date on which Community Facilities District No. 2018-2 is established, or
after a later date determined by the City Council with the concurrence of the legislative body
which levied the property tax in question.
SECTION 8. At the time and place set forth above for the Hearing, any interested
person, including all persons owning lands or registered to vote within proposed Community
Facilities District No. 2018-2, may appear and be heard.
SECTION 9. Each City officer who is or will be responsible for providing the Facilities
within proposed Community Facilities District No. 2018-2, if it is established, is hereby directed
to study the proposed District and, at or before the time of the above-mentioned Hearing, file a
report with the City Council containing a brief description of the public facilities by type which
will in his or her opinion be required to meet adequately the needs of Community Facilities
District No. 2018-2 and an estimate of the cost of providing those public facilities, including the
cost of environmental evaluations of such facilities and an estimate of the fair and reasonable
cost of any Incidental Expenses to be incurred.
SECTION 10. The District may accept advances of funds or work-in-kind from any
source, including, but not limited to, private persons or private entities, for any authorized
purpose, including, but not limited to, paying any cost incurred in creating Community Facilities
District No. 2018-2. The District may enter into an agreement with the person or entity
advancing the funds or work-in-kind, to repay all or a portion of the funds advanced, or to
reimburse the person or entity for the value, or cost, whichever is less, of the work-in-kind, as
determined by the City Council, with or without interest.
SECTION 11. The City Clerk is hereby directed to publish a notice (the “Notice”) of the
Hearing pursuant to Section 6061 of the Government Code in a newspaper of general circulation
published in the area of proposed Community Facilities District No. 2018-2. The City Clerk is
further directed to mail a copy of the Notice to each of the landowners within the boundaries of
the District at least 15 days prior to the Hearing. The Notice shall contain the text or a summary
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of this Resolution, the time and place of the Hearing, a statement that the testimony of all
interested persons or taxpayers will be heard, a description of the protest rights of the registered
voters and landowners in the proposed district and a description of the proposed voting
procedure for the election required by the Act. Such publication shall be completed at least
seven (7) days prior to the date of the Hearing.
SECTION 12. The reasonably expected maximum principal amount of the bonded
indebtedness to be incurred by the District for the Facilities and Incidental Expenses is Five
Million Dollars ($5,000,000).
SECTION 13. Except to the extent limited in any bond resolution or trust indenture
related to the issuance of bonds, the City Council hereby reserves to itself all rights and powers
set forth in Section 53344.1 of the Act (relating to tenders in full or partial payment).
SECTION 14. This Resolution shall be effective upon its adoption.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH
COMMUNITY FACILITIES DISTRICT NO. 2018-2 (VERDEMONT RANCH) OF THE
CITY OF SAN BERNARDINO, TO AUTHORIZE THE LEVY OF A SPECIAL TAX TO
PAY THE COSTS OF ACQUIRING OR CONSTRUCTING CERTAIN FACILITIES,
AND TO PAY DEBT SERVICE ON BONDED INDEBTEDNESS
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a ____________ meeting thereof, held on the
_______ day of __________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this ________ day of ______________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: _________________________
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ATTACHMENT A
BOUNDARY MAP
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Real property in the City of San Bernardino, County of San Bernardino, State of California,
described as follows:
Assessor Parcel Nos.:
0348-111-51
0348-111-52
0261-031-10
0261-031-11
0261-062-11
0261-062-12
0261-062-13
0261-062-14
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ATTACHMENT B
Types of Facilities
To Be Financed by Community
Facilities District No. 2018-2 of the City of San Bernardino
The proposed types of public facilities and expenses to be financed by the District
include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement
of drainage, water, sewer, library, park, roadway and roadway improvements, aquatic facilities,
and other public facilities of the City, including the foregoing public facilities which are included
in the City’s fee programs with respect to such facilities and authorized to be financed under the
Mello-Roos Community Facilities Act of 1982, as amended (the “Facilities”), and all
appurtenances and appurtenant work in connection with the foregoing Facilities, including the
cost of engineering, planning, designing, materials testing, coordination, construction staking,
construction management and supervision for such Facilities, and to finance the incidental
expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities;
b. All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate
and Method of Apportionment of Special Taxes for the District.
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ATTACHMENT C
RATE AND METHOD OF APPORTIONMENT FOR
COMMUNITY FACILITIES DISTRICT NO. 2018-2 (VERDEMONT RANCH)
OF THE CITY OF SAN BERNARDINO
A Special Tax (all capitalized terms are defined in Section A, “Definitions”, below) shall be
applicable to each Assessor’s Parcel of Taxable Property located within the boundaries of the
City of San Bernardino Community Facilities District No. 2018-2 (Verdemont Ranch) (“CFD
No. 2018-2”). The amount of Special Tax to be levied in each Fiscal Year, on an Assessor’s
Parcel, shall be determined by the City Council of the City of San Bernardino, acting in its
capacity as the legislative body of CFD No. 2018-2 by applying the appropriate Special Tax for
Developed Property, Approved Property, Undeveloped Property, and Provisional Undeveloped
Property that is not Exempt Property as set forth below. All of the real property, unless
exempted by law or by the provisions hereof in Section F, shall be taxed for the purposes, to the
extent and in the manner herein provided.
A. DEFINITIONS
The terms hereinafter set forth have the following meanings:
“Acre or Acreage” means the land area of an Assessor’s Parcel as shown on an Assessor’s
Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on
the applicable final map, parcel map, condominium plan, or other recorded County parcel map or
instrument. The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by
43,560.
“Act” means the Mello-Roos Communities Facilities Act of 1982, as amended, being Chapter
2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code
of the State of California.
“Administrative Expenses” means the following actual or reasonably estimated costs directly
related to the administration of CFD No. 2018-2: the costs of computing the Special Taxes and
preparing the Special Tax collection schedules (whether by the City or designee thereof or both);
the costs of collecting the Special Taxes (whether by the City or otherwise); the costs of
remitting Special Taxes A to the Trustee; the costs of the Trustee (including legal counsel) in the
discharge of the duties required of it under the Indenture; the costs to the City, CFD No. 2018-2
or any designee thereof of complying with arbitrage rebate requirements; the costs to the City,
CFD No. 2018-2 or any designee thereof of complying with disclosure requirements of the City,
CFD No. 2018-2 or obligated persons associated with applicable federal and state securities laws
and the Act; the costs associated with preparing Special Tax disclosure statements and
responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2018-
2 or any designee thereof related to an appeal of the Special Tax; the costs associated with the
release of funds from an escrow account; and the City’s annual administration fees and third
party expenses. Administration Expenses shall also include amounts estimated by the CFD
Administrator or advanced by the City or CFD No. 2018-2 for any other administrative purposes
of CFD No. 2018-2, including attorney’s fees and other costs related to commencing and
pursuing to completion any foreclosure of delinquent Special Taxes.
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“Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in
a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the
Special Tax is being levied, and (ii) that have not been issued a building permit on or before June
1st preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel” means a lot or parcel of land designated on an Assessor’s Parcel Map with
an assigned Assessor’s Parcel Number.
“Assessor’s Parcel Map” means an official map of the Assessor of the County designating
parcels by Assessor’s Parcel Number.
“Assessor’s Parcel Number” means that number assigned to an Assessor’s Parcel by the
County for purposes of identification.
“Assigned Special Tax” means the Special Tax of that name described in Section D below.
“Backup Special Tax” means the Special Tax of that name described in Section D below.
“Boundary Map” means a recorded map of the CFD which indicates the boundaries of the
CFD.
“Bonds” means any obligation to repay a sum of money, including obligations in the form of
bonds, notes, certificates of participation, long-term leases, loans from government agencies, or
loans from banks, other financial institutions, private businesses, or individuals, or long-term
contracts, or any refunding thereof, to which Special Tax within CFD No. 2018-2 have been
pledged.
“Building Permit” means the first legal document issued by a local agency giving official
permission for new construction. For purposes of this definition, “Building Permit” may or may
not include any subsequent building permit document(s) authorizing new construction on an
Assessor’s Parcel that are issued or changed by the City after the first original issuance, as
determined by the CFD Administrator as necessary to fairly allocate Special Tax to the
Assessor’s Parcel, provided that following such determination the Maximum Special Tax that
may be levied on all Assessor’s Parcels of Taxable Property will be at least 1.1 times maximum
annual debt service on all outstanding Bonds plus the estimated annual Administrative Expenses.
“Building Square Footage” or “BSF” means the square footage of assessable internal living
space, exclusive of garages or other structures not used as living space, as determined by
reference to the Building Permit for such Assessor’s Parcel.
“Calendar Year” means the period commencing January 1 of any year and ending the following
December 31.
“CFD Administrator” means an official of the City, or designee thereof, responsible for
determining the Special Tax Requirement, and providing for the levy and collection of the
Special Taxes.
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“CFD” or “CFD No. 2018-2” means Community Facilities District No. 2018-2 (Verdemont
Ranch) established by the City under the Act.
“City” means the City of San Bernardino.
“City Council” means the City Council of the City of San Bernardino, acting as the Legislative
Body of CFD No. 2018-2, or its designee.
“Condominium Plan” means a condominium plan as set forth in the California Civil Code,
Section 1352.
“County” means the County of San Bernardino.
“Developed Property” means all Assessor’s Parcels of Taxable Property that: (i) are included in
a Final Map that was recorded prior to the January 1st preceding the Fiscal Year in which the
Special Tax is being levied, and (ii) a Building Permit for new construction was issued on or
before June 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Exempt Property” means all Assessor’s Parcels designated as being exempt from Special
Taxes as provided for in Section F.
“Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot
line adjustment, pursuant to the Subdivision Map Act (California Government Code Section
66410 et seq.) or recordation of a Condominium Plan pursuant to California Civil Code Section
1352 that creates individual lots for which Building Permits may be issued without further
subdivision.
“Fiscal Year” means the period commencing on July 1st of any year and ending the following
June 30th.
“Indenture” means the indenture, fiscal agent agreement, resolution or other instrument
pursuant to which Bonds are issued, as modified, amended and/or supplemented from time to
time, and any instrument replacing or supplementing the same.
“Land Use Category” means any of the categories listed in Table 1 of Section D.
“Maximum Special Tax” means the maximum Special Tax, determined in accordance with
Section D below, that can be levied by CFD No. 2018-2 in any Fiscal Year on any Assessor’s
Parcel.
“Multifamily Property” means all Assessor’s Parcels of Developed Property for which a
Building Permit has been issued for the purpose of constructing a building or buildings
comprised of attached Residential Units available for rental by the general public, not for sale to
an end user, and under common management, as determined by the CFD Administrator.
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“Non-Residential Property” or “NR” means all Assessor’s Parcels of Taxable Property for
which a building permit(s) was issued for a non-residential use. The CFD Administrator shall
make the determination if an Assessor’s Parcel is Non-Residential Property.
“Partial Prepayment Amount” means the amount required to prepay a portion of the Special
Tax obligation for an Assessor’s Parcel, as described in Section G.2.
“Prepayment Amount” means the amount required to prepay the Special Tax obligation in full
for an Assessor’s Parcel, as described in Section G.1.
“Proportionately” means for Taxable Property for Special Tax that is (i) Developed Property,
that the ratio of the actual Special Tax levy to the Assigned Special Tax is the same for all
Assessor’s Parcels of Developed Property, (ii) Approved Property, that the ratio of the actual
Special Tax levy to the Maximum Special Tax is the same for all Assessor’s Parcels of Approved
Property, and (iii) Undeveloped Property, Provisional Undeveloped Property, that the ratio of the
actual Special Tax levy per Acre to the Maximum Special Tax per Acre is the same for all
Assessor’s Parcels of Undeveloped Property, Provisional Undeveloped Property.
“Provisional Undeveloped Property” means all Assessor’s Parcels of Taxable Property that
would otherwise be classified as Exempt Property pursuant to the provisions of Section F, but
cannot be classified as Exempt Property because to do so would be reduce the Acreage of all
Taxable Property below the required minimum Acreage set forth in Sections F.
“Residential Property” means all Assessor’s Parcels of Developed Property for which a
building permit has been issued for purposes of constructing one or more Residential Units.
“Residential Unit” or “RU” means a residential unit that is used or intended to be used as a
domicile by one or more persons, as determined by the CFD Administrator.
“Single Family Residential Property” means all Assessor’s Parcels of Residential Property
other than Multifamily Property on an Assessor’s Parcel.
“Special Tax” means any of the special taxes authorized to be levied within CFD No. 2018-2
pursuant to the Act to fund the Special Tax Requirement.
“Special Tax Requirement “ means the amount required in any Fiscal Year to pay: (i) the debt
service or the periodic costs on all outstanding Bonds due in the Calendar Year that commences
in such Fiscal Year, (ii) Administrative Expenses, (iii) the costs associated with the release of
funds from an escrow account, (iv) any amount required to establish or replenish any reserve
funds established in association with the Bonds, (v) an amount equal to any anticipated shortfall
due to Special Tax delinquencies, and (vi) the collection or accumulation of funds for the
acquisition or construction of facilities authorized by CFD No. 2018-2 provided that the
inclusion of such amount does not cause an increase in the levy of Special Tax on Undeveloped
Property as set forth in Step Three of Section E., less (vii) any amounts available to pay debt
service or other periodic costs on the Bonds pursuant to the Indenture.
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“Taxable Property” means all Assessor’s Parcels within CFD No. 2018-2, which are not
Exempt Property.
“Taxable Unit” means either a Residential Unit or an Acre.
“Tract(s)” means an area of land within a subdivision identified by a particular tract number on
a Final Map approved for the subdivision.
“Trustee” means the trustee, fiscal agent, or paying agent under the Indenture.
“Undeveloped Property” means all Assessor’s Parcels of Taxable Property which are not
Developed Property, Approved Property, Provisional Undeveloped Property.
B. SPECIAL TAX
Commencing Fiscal Year 2019-2020 and for each subsequent Fiscal Year, the City Council shall
levy Special Taxes on all Taxable Property, up to the applicable Maximum Special Tax to fund
the Special Tax Requirement.
C. ASSIGNMENT TO LAND USE CATEGORY FOR SPECIAL TAX
Each Fiscal Year, beginning with Fiscal Year 2019-2020, each Assessor’s Parcel within CFD
No. 2018-2 shall be classified as Taxable Property or Exempt Property. In addition, each
Assessor’s Parcel of Taxable Property shall be further classified as Developed Property,
Approved Property, Undeveloped Property or Provisional Undeveloped Property.
Assessor’s Parcels of Developed Property shall further be classified as Residential Property or
Non-Residential Property. Each Assessor’s Parcel of Residential Property shall further be
classified as a Single Family Residential Property, or Multifamily Property. Each Assessor’s
Parcel of Single Family Residential Property shall be further categorized into Land Use
Categories based on its Building Square Footage and assigned to its appropriate Assigned
Special Tax rate.
D. MAXIMUM SPECIAL TAX
1. Developed Property
The Maximum Special Tax for each Assessor’s Parcel of Single Family Residential Property
in any Fiscal Year shall be the greater of (i) the Assigned Special Tax or (ii) the Backup
Special Tax.
The Maximum Special Tax for each Assessor’s Parcel of Non-Residential Property or
Multifamily Residential Property shall be the applicable Assigned Special Tax described in
Table 1 of Section D.
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a. Assigned Special Tax
Each Fiscal Year, each Assessor’s Parcel of Single Family Residential Property, Multifamily
Property, or Non-Residential Property shall be subject to an Assigned Special Tax. The
Assigned Special Tax applicable to an Assessor’s Parcel of Developed Property for Fiscal
Year 2019-2020 shall be determined pursuant to Table 1 below.
TABLE 1
ASSIGNED SPECIAL TAX FOR DEVELOPED PROPERTY
Land Use Category
Taxable
Unit
Building Square
Footage
Assigned
Special Tax
Per Taxable
Unit
1. Single Family Residential Property RU Less than 2,500 sq. ft $2,567
2. Single Family Residential Property RU 2,500 sq. ft to 2,800 sq. ft $2,708
3. Single Family Residential Property RU 2,801 sq. ft to 3,100 sq. ft $2,779
4. Single Family Residential Property RU Greater than 3,100 sq. ft $2,892
5. Multifamily Property Acre N/A $9,997
6. Non-Residential Property Acre N/A $9,997
On each July 1, commencing July 1, 2020, the Assigned Special Tax rate for Developed
Property shall be increased by one percent (1.00%) of the amount in effect in the prior Fiscal
Year.
b. Multiple Land Use Categories
In some instances an Assessor’s Parcel of Developed Property may contain more than one
Land Use Type. The Maximum Special Tax levied on an Assessor’s Parcel shall be the sum of
the Maximum Special Tax for all Land Use Categories located on the Assessor’s Parcel. The
CFD Administrator’s allocation to each type of property shall be final.
c. Backup Special Tax
The Backup Special Tax for an Assessor’s Parcel within a Final Map classified or to be
classified as Single Family Property shall be $2,739 per unit. This Backup Special Tax has
been established based on the land use configurations shown on the Final Map. In the event
any portion of the Final Map is changed or modified, the Backup Special Tax for all
Assessor’s Parcels within such changed or modified area shall be $9,997 per Acre.
In the event any superseding Final Map is recorded as a Final Map within the Boundaries of
the CFD, the Backup Special Tax for all Assessor’s Parcels within such Final Map shall be
$9,997 per Acre.
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The Backup Special Tax shall not apply to Multifamily Residential Property, or Non-
Residential Property.
On each July 1, commencing July 1, 2020, the Backup Special Tax rate shall be increased by
one percent (1.00%) of the amount in effect in the prior Fiscal Year.
2. Approved Property
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be
classified as Single Family Property shall be the Backup Special Tax computed pursuant to
Section D.1.c above.
The Maximum Special Tax for each Assessor’s Parcel of Approved Property expected to be
classified as Multifamily Residential Property or Non-Residential Property shall be $9,997 per
Acre.
On each July 1, commencing July 1, 2020, the Maximum Special Tax rate for Approved
Property shall be increased by one percent (1.00%) of the amount in effect in the prior Fiscal
Year.
3. Undeveloped Property and Provisional Undeveloped Property that is not Exempt
Property pursuant to the provisions of Section F
The Maximum Special Tax for each Assessor’s Parcel of Undeveloped Property and
Provisional Undeveloped Property that is not Exempt Property shall be equal to the product of
$9,997 multiplied by the Acreage of such Assessor’s Parcel.
On each July 1, commencing July 1, 2020, the Maximum Special Tax rate for Undeveloped
and Provisional Undeveloped Property shall be increased by one percent (1.00%) of the
amount in effect in the prior Fiscal Year.
E. METHOD OF APPORTIONMENT OF THE SPECIAL TAX
Commencing Fiscal Year 2019-2020 and for each subsequent Fiscal Year, the City Council
shall levy Special Taxes on all Taxable Property in accordance with the following steps:
Step One: The Special Tax shall be levied Proportionately on each Assessor’s Parcel of
Developed Property at up to 100% of the applicable Assigned Special Tax rates in
Table 1 to satisfy the Special Tax Requirement.
Step Two: If additional moneys are needed to satisfy the Special Tax Requirement after the
first step has been completed, the Special Tax shall be levied Proportionately on
each Assessor’s Parcel of Approved Property at up to 100% of the Maximum
Special Tax applicable to each such Assessor’s Parcel as needed to satisfy the
Special Tax Requirement.
Step Three: If additional moneys are needed to satisfy the Special Tax Requirement after the
first two steps have been completed, the Annual Special Tax shall be levied
Proportionately on each Assessor’s Parcel of Undeveloped Property up to 100%
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of the Maximum Special Tax applicable to each such Assessor’s Parcel as needed
to satisfy the Special Tax Requirement.
Step Four: If additional moneys are needed to satisfy the Special Tax Requirement after the
first three steps have been completed, then the Special Tax on each Assessor’s
Parcel of Developed Property whose Maximum Special Tax is the Backup Special
Tax shall be increased Proportionately from the Assigned Special Tax up to 100%
of the Backup Special Tax as needed to satisfy the Special Tax Requirement.
Step Five: If additional moneys are needed to satisfy the Special Tax Requirement after the
first four steps have been completed, the Special Tax shall be levied
Proportionately on each Assessor’s Parcel of Provisional Undeveloped Property
up to 100% of the Maximum Special Tax applicable to each such Assessor’s
Parcel as needed to satisfy the Special Tax Requirement.
Notwithstanding the above, under no circumstances will the Special Taxes levied in any Fiscal
Year against any Assessor’s Parcel of Residential Property as a result of a delinquency in the
payment of the Special Tax applicable to any other Assessor’s Parcel be increased by more than
ten percent (10%) above the amount that would have been levied in that Fiscal Year had there
never been any such delinquency or default.
F. EXEMPTIONS
The City shall classify as Exempt Property, in the following order of priority, (i) Assessor’s
Parcels which are owned by, irrevocably offered for dedication, encumbered by or restricted in
use by the State of California, Federal or other local governments, including school districts, (ii)
Assessor’s Parcels which are used as places of worship and are exempt from ad valorem
property taxes because they are owned by a religious organization, (iii) Assessor’s Parcels which
are owned by, irrevocably offered for dedication, encumbered by or restricted in use by a
homeowners’ association, (iv) Assessor’s Parcels with public or utility easements making
impractical their utilization for other than the purposes set forth in the easement, (v) Assessor’s
Parcels which are privately owned and are encumbered by or restricted solely for public uses, or
(vi) Assessor’s Parcels restricted to other types of public uses determined by the City Council,
provided that no such classification would reduce the sum of all Taxable Property to less than
22.53 Acres.
Notwithstanding the above, the City Council shall not classify an Assessor’s Parcel as Exempt
Property if such classification would reduce the sum of all Taxable Property to less than 22.53
Acres. Assessor’s Parcels which cannot be classified as Exempt Property because such
classification would reduce the Acreage of all Taxable Property to less than 22.53 Acres will be
classified as Provisional Undeveloped Property, and will be subject to Special Tax pursuant to
Step Five in Section E.
G. PREPAYMENT OF SPECIAL TAX
The following additional definitions apply to this Section G:
“CFD Public Facilities” means $2,300,000 expressed in 2019 dollars, which shall increase by
the Construction Inflation Index on July 1, 2020, and on each July 1 thereafter, or such lower
amount (i) determined by the City Council as sufficient to provide the public facilities under the
authorized bonding program for CFD No. 2018-2, or (ii) determined by the City Council
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concurrently with a covenant that it will not issue any more Bonds to be supported by Special
Tax levied under this Rate and Method of Apportionment.
“Construction Fund” means an account specifically identified in the Indenture or functionally
equivalent to hold funds, which are currently available for expenditure to acquire or construct
public facilities eligible under CFD No. 2018-2.
“Construction Inflation Index” means the annual percentage change in the Engineering News-
Record Building Cost Index for the city of Los Angeles, measured as of the Calendar Year which
ends in the previous Fiscal Year. In the event this index ceases to be published, the Construction
Inflation Index shall be another index as determined by the City that is reasonably comparable to
the Engineering News-Record Building Cost Index for the city of Los Angeles.
“Future Facilities Costs” means the CFD Public Facilities minus public facility costs available
to be funded through existing construction or escrow accounts or funded by the Outstanding
Bonds, and minus public facility costs funded by interest earnings on the Construction Fund
actually earned prior to the date of prepayment.
“Outstanding Bonds” means all previously issued Bonds issued and secured by the levy of
Special Tax which will remain outstanding after the first interest and/or principal payment date
following the current Fiscal Year, excluding Bonds to be redeemed at a later date with the
proceeds of prior prepayments of Special Tax.
1. Prepayment in Full
The Maximum Special Tax obligation may be prepaid and permanently satisfied for (i)
Assessor’s Parcels of Developed Property, (ii) Assessor’s Parcels of Approved Property or
Undeveloped Property for which a Building Permit has been issued, (iii) Approved or
Undeveloped Property for which a Building Permit has not been issued, and (iv) Assessor’s
Parcels of Public Property or Property Owner’s Association Property that are not Exempt
Property pursuant to Section F. The Maximum Special Tax obligation applicable to an
Assessor’s Parcel may be fully prepaid and the obligation to pay the Special Tax for such
Assessor’s Parcel permanently satisfied as described herein; provided that a prepayment may be
made only if there are no delinquent Special Taxes with respect to such Assessor’s Parcel at the
time of prepayment. An owner of an Assessor’s Parcel intending to prepay the Maximum
Special Tax obligation for such Assessor’s Parcel shall provide the CFD Administrator with
written notice of intent to prepay, and within 5 business days of receipt of such notice, the CFD
Administrator shall notify such owner of the amount of the non-refundable deposit determined to
cover the cost to be incurred by the CFD in calculating the Prepayment Amount (as defined
below) for the Assessor’s Parcel. Within 15 days of receipt of such non-refundable deposit, the
CFD Administrator shall notify such owner of the Prepayment Amount for the Assessor’s Parcel.
Prepayment must be made not less than 60 days prior to the redemption date for any Bonds to be
redeemed with the proceeds of such prepaid Special Taxes.
The Prepayment Amount (defined below) shall be calculated as follows (capitalized terms are
defined below):
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Bond Redemption Amount
plus Redemption Premium
plus Future Facilities Amount
plus Defeasance Amount
plus Administrative Fees and Expenses
less Reserve Fund Credit
Equals: Prepayment Amount
The Prepayment Amount shall be determined as of the proposed prepayment date as follows:
1. Confirm that no Special Tax delinquencies apply to such Assessor’s Parcel.
2. For an Assessor’s Parcel of Developed Property, compute the Maximum Special Tax
for the Assessor’s Parcel. For an Assessor’s Parcel of Approved Property or Undeveloped
Property for which a Building Permit has been issued, compute the Maximum Special Tax
for the Assessor’s Parcel as though it was already designated as Developed Property, based
upon the Building Permit which has been issued for the Assessor’s Parcel. For an Assessor’s
Parcel of Approved Property or Undeveloped Property for which a Building Permit has not
been issued, Public Property or Property Owner’s Association Property to be prepaid,
compute the Maximum Special Tax for the Assessor’s Parcel.
3. Divide the Maximum Special Tax derived pursuant to paragraph 2 by the total amount
of Special Taxes that could be levied at the Maximum Special Tax at build out of all
Assessor’s Parcels of Taxable Property based on the applicable Maximum Special Tax for
Assessor’s Parcels of Developed Property not including any Assessor’s Parcels for which the
Special Tax obligation has been previously prepaid.
4. Multiply the quotient derived pursuant to paragraph 3 by the principal amount of the
Outstanding Bonds to determine the amount of Outstanding Bonds to be redeemed with the
Prepayment Amount (the “Bond Redemption Amount”).
5. Multiply the Bond Redemption Amount by the applicable redemption premium, if any,
on the Outstanding Bonds to be redeemed (the “Redemption Premium”).
6. Determine the Future Facilities Costs.
7. Multiply the quotient derived pursuant to paragraph 3 by the amount determined
pursuant to paragraph 6 to determine the amount of Future Facilities Costs for the Assessor’s
Parcel (the “Future Facilities Amount”).
8. Determine the amount needed to pay interest on the Bond Redemption Amount from
the first bond interest and/or principal payment date following the current Fiscal Year until
the earliest redemption date for the Outstanding Bonds on which Bonds can be redeemed
from Special Tax prepayments.
9. Determine the Special Taxes levied on the Assessor’s Parcel in the current Fiscal Year
which have not yet been paid.
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10. Determine the amount the CFD Administrator reasonably expects to derive from the
investment of the Bond Redemption Amount and the Redemption Premium from the date of
prepayment until the redemption date for the Outstanding Bonds to be redeemed with the
Prepayment Amount.
11. Add the amounts derived pursuant to paragraphs 8 and 9 and subtract the amount
derived pursuant to paragraph 10 (the “Defeasance Amount”).
12. Verify the administrative fees and expenses of the CFD, including the cost of
computation of the Prepayment Amount, the cost to invest the Prepayment Amount, the cost
of redeeming the Outstanding Bonds, and the cost of recording notices to evidence the
prepayment of the Maximum Special Tax obligation for the Assessor’s Parcel and the
redemption of Outstanding Bonds (the “Administrative Fees and Expenses”).
13. The reserve fund credit (the “Reserve Fund Credit”) shall equal the lesser of: (a) the
expected reduction in the reserve requirement (as defined in the Indenture), if any, associated
with the redemption of Outstanding Bonds as a result of the prepayment, or (b) the amount
derived by subtracting the new reserve requirement (as defined in the Indenture) in effect
after the redemption of Outstanding Bonds as a result of the prepayment from the balance in
the reserve fund on the prepayment date, but in no event shall such amount be less than zero.
14. The Prepayment Amount is equal to the sum of the Bond Redemption Amount, the
Redemption Premium, the Future Facilities Amount, the Defeasance Amount and the
Administrative Fees and Expenses, less the Reserve Fund Credit.
15. From the Prepayment Amount, the Bond Redemption Amount, the Redemption
Premium, and Defeasance Amount shall be deposited into the appropriate fund as established
under the Indenture and be used to redeem Outstanding Bonds or make debt service
payments. The Future Facilities Amount shall be deposited into the Construction Fund. The
Administrative Fees and Expenses shall be retained by the CFD.
The Prepayment Amount may be sufficient to redeem other than a $5,000 increment of Bonds.
In such event, the increment above $5,000 or an integral multiple thereof will be retained in the
appropriate fund established under the Indenture to be used with the next redemption from other
Special Tax prepayments of Outstanding Bonds or to make debt service payments.
As a result of the payment of the current Fiscal Year’s Special Tax levy as determined pursuant
to paragraph 9 above, the CFD Administrator shall remove the current Fiscal Year’s Special Tax
levy for the Assessor’s Parcel from the County tax roll. With respect to any Assessor’s Parcel for
which the Maximum Special Tax obligation is prepaid, the City Council shall cause a suitable
notice to be recorded in compliance with the Act, to indicate the prepayment of Maximum
Special Tax obligation and the release of the Special Tax lien for the Assessor’s Parcel, and the
obligation to pay the Special Tax for such Assessor’s Parcel shall cease.
Notwithstanding the foregoing, no Special Tax prepayment shall be allowed unless the amount
of Maximum Special Tax that may be levied on all Assessor’s Parcels of Taxable Property after
the proposed prepayment will be at least 1.1 times maximum annual debt service on the Bonds
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that will remain outstanding after the prepayment plus the estimated annual Administrative
Expenses.
Tenders of Bonds in prepayment of the Maximum Special Tax obligation may be accepted upon
the terms and conditions established by the City Council pursuant to the Act. However, the use
of Bond tenders shall only be allowed on a case-by-case basis as specifically approved by the
City Council.
2. Prepayment in Part
The Maximum Special Tax obligation for an Assessor’s Parcel of Developed Property,
Approved Property or Undeveloped Property may be partially prepaid. For purposes of
determining the partial prepayment amount, the provisions of Section G.1 shall be modified as
provided by the following formula:
PP = ((P E –A) x F) +A
These terms have the following meaning:
PP = Partial Prepayment Amount
P E = the Prepayment Amount calculated according to Section G.1
F = the percent by which the owner of the Assessor’s Parcel(s) is partially
prepaying the Maximum Special Tax obligation
A = the Administrative Fees and Expenses determined pursuant to Section G.1
The owner of an Assessor’s Parcel who desires to partially prepay the Maximum Special Tax
obligation for the Assessor’s Parcel shall notify the CFD Administrator of (i) such owner’s intent
to partially prepay the Maximum Special Tax obligation, (ii) the percentage of the Maximum
Special Tax obligation such owner wishes to prepay, and (iii) the company or agency that will be
acting as the escrow agent, if any. Within 5 days of receipt of such notice, the CFD
Administrator shall notify such property owner of the amount of the non-refundable deposit
determined to cover the cost to be incurred by the CFD in calculating the amount of a partial
prepayment. Within 15 business days of receipt of such non-refundable deposit, the CFD
Administrator shall notify such owner of the amount of the Partial Prepayment Amount for the
Assessor’s Parcel. A Partial Prepayment Amount must be made not less than 60 days prior to the
redemption date for the Outstanding Bonds to be redeemed with the proceeds of the Partial
Prepayment Amount.
With respect to any Assessor’s Parcel for which the Maximum Special Tax obligation is partially
prepaid, the CFD Administrator shall (i) distribute the Partial Prepayment Amount as provided in
Paragraph 15 of Section G.1, and (ii) indicate in the records of the CFD that there has been a
Partial Prepayment Amount for the Assessor’s Parcel and that a portion of the Special Tax
obligation equal to the remaining percentage (1.00 - F) of Special Tax obligation will continue
on the Assessor’s Parcel pursuant to Section E.
H. TERMINATION OF SPECIAL TAX
For each Fiscal Year that any Bonds are outstanding the Special Tax shall be levied on all
Assessor’s Parcels subject to the Special Tax. The Special Tax shall cease not later than
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the 2059-2060 Fiscal Year, however, Special Tax will cease to be levied in an earlier
Fiscal Year if the CFD Administrator has determined (i) that all the required interest and
principal payments on the CFD No. 2018-2 Bonds have been paid; (ii) all authorized
facilities of CFD No. 2018-2 have been acquired and all reimbursements to the developer
have been paid, (iii) no delinquent Special Tax remain uncollected and (iv) all other
obligations of CFD No. 2018-2 have been satisfied.
I. MANNER OF COLLECTION
The Special Tax shall be collected in the same manner and at the same time as ordinary ad
valorem property taxes, provided, however, that CFD No. 2018-2 may collect Special Tax at a
different time or in a different manner if necessary to meet its financial obligations, and may
covenant to foreclose and may actually foreclose on delinquent Assessor’s Parcels as permitted
by the Act.
J. APPEALS OF SPECIAL TAXES
Any taxpayer may file a written appeal of the Special Taxes on his/her Assessor’s Parcel(s) with
the CFD Administrator, provided that the appellant is current in his/her payments of Special
Taxes. During pendency of an appeal, all Special Taxes previously levied must be paid on or
before the payment date established when the levy was made. The appeal must specify the
reasons why the appellant claims the Special Tax is in error. The CFD Administrator shall
review the appeal, meet with the appellant if the CFD Administrator deems necessary, and advise
the appellant of its determination. If the CFD Administrator agrees with the appellant, the CFD
Administrator shall grant a credit to eliminate or reduce future Special Taxes on the appellant’s
Assessor’s Parcel(s). No refunds of previously paid Special Taxes shall be made.
The CFD Administrator shall interpret this Rate and Method of Apportionment and make
determinations relative to the annual levy and administration of the Special Taxes and any
taxpayer who appeals, as herein specified.
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RESOLUTION NO. 2018-241
RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $5,000,000
WITHIN THE PROPOSED CFD NO. 2018-2 OF THE CITY OF SAN BERNARDINO
WHEREAS, the City Council of the City of San Bernardino (the “City Council”) upon
receipt of a petition as provided in Section 53318 of the Government Code of the State of
California instituted proceedings to form Community Facilities District No. 2018-2 (Verdemont
Ranch) of the City of San Bernardino (“Community Facilities District No. 2018-2” or the
“District”) pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), as
amended, pursuant to Resolution No. 2018-240 adopted by the City Council on the date hereof to
finance (1) the purchase, construction, modification, expansion, improvement and/or
rehabilitation of public facilities identified in Attachment “A” hereto and incorporated herein by
this reference, including all furnishings, equipment and supplies related thereto (collectively, the
“Facilities”) and (2) the incidental expenses to be incurred in financing the Facilities and forming
and administering the District (the “Incidental Expenses”); and,
WHEREAS, the City Council estimates that the amount required to finance the Facilities
and Incidental Expenses is approximately $5,000,000; and,
WHEREAS, in order to finance the Facilities and Incidental Expenses, the City Council
intends to authorize the issuance of bonds in the maximum aggregate principal amount of
$5,000,000, the repayment of which is to be secured by special taxes levied in accordance with
Section 53328 of the Act on all property in the proposed Community Facilities District No.
2018-2, other than those properties exempted from taxation in the rate and method of
apportionment set forth in Attachment “C” to Resolution No. 2018-240.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, HEREBY FINDS, DETERMINES, RESOLVES, AND
ORDERS AS FOLLOWS:
SECTION 1. The above recitals are true and correct.
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Packet Pg. 395 Attachment: FN.2018-2 Resolution of Intention to Incur Bonded Indebtedness (5702 : Resolutions of Intention to Establish Community Facilities
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SECTION 2. It is necessary to incur bonded indebtedness within the boundaries of
proposed Community Facilities District No. 2018-2 in an amount not to exceed $5,000,000 to
finance the costs of the Facilities and Incidental Expenses, as permitted by the Act.
SECTION 3. The indebtedness will be incurred for the purpose of financing the costs of
the Facilities and the Incidental Expenses, including, but not limited to, the funding of reserve
funds for the bonds, the financing of costs associated with the issuance of the bonds and all other
costs and expenses necessary to finance the Facilities which are permitted to be financed
pursuant to the Act.
SECTION 4. It is the intent of the City Council to authorize the sale of bonds in one or
more series, in the maximum aggregate principal amount of $5,000,000 and at a maximum
interest rate not in excess of 12 percent per annum, or a higher rate not in excess of the maximum
rate permitted by law at the time that the bonds are issued. The term of the bonds of each series
shall be determined pursuant to a resolution of this City Council acting in its capacity as the
legislative body of the District authorizing the issuance of the bonds of such series, but such term
shall in no event exceed 35 years from the date of issuance of the bonds of such series, or such
longer term as is then permitted by law.
SECTION 5. A public hearing (the “Hearing”) on the proposed issuance of bonded
indebtedness shall be held at 5:00 p.m., or as soon thereafter as practicable, on September 19,
2018, at the City Council Chamber, 201 North “E” Street, San Bernardino, California.
SECTION 6. At the time and place set forth in this Resolution for the Hearing, any
interested persons, including all persons owning land or registered to vote within proposed
Community Facilities District No. 2018-2, may appear and be heard.
SECTION 7. The Clerk of the Board is hereby directed to publish a notice (the
“Notice”) of the Hearing pursuant to Section 6061 of the Government Code in a newspaper of
general circulation published in the area of the proposed Community Facilities District No. 2018-
2. Such publication shall be completed at least seven days prior to the date of the Hearing. The
Clerk of the Board is further directed to mail a copy of the Notice to each of the landowners
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within the boundaries of proposed Community Facilities District No. 2018-2 at least 15 days
prior to the Hearing.
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RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO INCUR BONDED
INDEBTEDNESS IN AN AMOUNT NOT TO EXCEED $5,000,000 WITHIN
PROPOSED CFD NO. 2018-2 OF THE CITY OF SAN BERNARDINO
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
City Council of the City of San Bernardino at a ____________ meeting thereof, held on the
_______ day of __________________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, City Clerk
The foregoing Resolution is hereby approved this ________ day of ______________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By: _________________________
20.c
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A-1
ATTACHMENT A
Types of Facilities To Be
Financed By Community
Facilities District No. 2018-2
The proposed types of public facilities and expenses to be financed by the District
include:
The construction, purchase, modification, expansion, rehabilitation and/or improvement
of drainage, water, sewer, library, park, roadway and roadway improvements, aquatic facilities,
and other public facilities of the City, including the foregoing public facilities which are included
in the City’s fee programs with respect to such facilities and authorized to be financed under the
Mello-Roos Community Facilities Act of 1982, as amended (the “Facilities”), and all
appurtenances and appurtenant work in connection with the foregoing Facilities, including the
cost of engineering, planning, designing, materials testing, coordination, construction staking,
construction management and supervision for such Facilities, and to finance the incidental
expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities;
b. All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
Capitalized terms used and not defined herein shall have the meaning set forth in the Rate
and Method of Apportionment of Special Taxes for the District.
20.c
Packet Pg. 399 Attachment: FN.2018-2 Resolution of Intention to Incur Bonded Indebtedness (5702 : Resolutions of Intention to Establish Community Facilities
PETITION TO THE CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, REQUESTING INSTITUTION
OF PROCEEDINGS FOR ESTABLISHMENT OF A
COMMUNITY FACILITIES DISTRICT (COMMUNITY
FACILITIES DISTRICT NO. 2018-2 (VERDEMONT RANCH)
OF THE CITY OF SAN BERNARDINO)
1. The undersigned (the “Owner”) is the owner of more than 10% of the land
depicted in Exhibit A hereto and described in Exhibit B hereto (the “Property”), which land is
expected to be all of the land included within the boundaries of a community facilities district
hereby proposed to be established. The Property is located within the City of San Bernardino
(the “City”) in the County of San Bernardino.
2. The Owner requests that the City Council of the City (the “City Council”)
institute proceedings to establish a community facilities district to be known as “Community
Facilities District No. 2018-2 of the City of San Bernardino (Verdemont Ranch)” (referred to
herein as the “District”) pursuant to Chapter 2.5 (commencing with Section 53311), Part 1,
Division 2, Title 5, of the Government Code of the State of California, commonly known as the
“Mello-Roos Community Facilities Act of 1982” (the “Act”) to include all of the Property.
3. The boundaries of the territory which is proposed for inclusion in the District are
those depicted in Exhibit A hereto and described in Exhibit B hereto.
4. The Owner requests that the proposed District be used to finance the construction,
purchase, modification, expansion and/or improvement of drainage, water, sewer, library, park,
roadway and roadway improvements, aquatic facilities, and other public facilities of the City,
including the foregoing public facilities which are included in the City’s fee programs with
respect to such facilities and authorized to be financed under the Act (the “Facilities”), and all
appurtenances and appurtenant work in connection with the foregoing Facilities, including the
cost of engineering, planning, designing, materials testing, coordination, construction staking,
construction management and supervision for such Facilities, and to finance the incidental
expenses to be incurred, including:
a. The cost of engineering, planning and designing the Facilities;
b. All costs, including costs of the property owner petitioning to form the District,
associated with the creation of the District, the issuance of the bonds, the determination of the
amount of special taxes to be levied and costs otherwise incurred in order to carry out the
authorized purposes of the District; and
c. Any other expenses incidental to the construction, acquisition, modification,
rehabilitation, completion and inspection of the Facilities.
5. The Owner further requests that the City Council authorize the levy of special
taxes in the District to pay the costs of the Facilities and the incidental costs described in
paragraph 4 above (the “Special Tax”) and to pay principal of, interest and premium, if any, on
1
20.d
Packet Pg. 400 Attachment: FN.2018-2 Verdemont Ranch Land Owner Petition SB CFD (5702 : Resolutions of Intention to Establish Community Facilities
the bonds in order to contribute to the financing of the Facilities and costs described in paragraph
4 above.
6. The Owner further requests that, upon the sale of bonds, the City Council, as
legislative body of the District, annually levy Special Taxes on the property within the District
for the construction, acquisition and rehabilitation of the Facilities, for the payment of the
aggregate amount of principal of and interest owing on the bonds in each fiscal year, including
the maintenance of reserves therefor, and for the payment of administrative expenses of the
District.
7. The Owner has advanced to the City the amounts necessary to pay for the costs
related to the formation of the District, which amounts will be reimbursed, without interest, from
the proceeds of the first sale of the bonds, if any. The reimbursement of such amounts is
expected to be governed by the terms of that certain Funding Agreement to be entered into by
and between the City and the Owner relating to the District. If bonds are not sold, the City will
have no obligation to reimburse amounts expended for costs incurred, but will reimburse any
unexpended amounts advanced by the Owner as set forth in the Funding Agreement.
Dated: August__, 2018 17329, LLC, a Delaware limited liability
company
By:
Name:
Title:
2
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Packet Pg. 401 Attachment: FN.2018-2 Verdemont Ranch Land Owner Petition SB CFD (5702 : Resolutions of Intention to Establish Community Facilities
EXHIBIT A
BOUNDARY MAP
A-1
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Packet Pg. 402 Attachment: FN.2018-2 Verdemont Ranch Land Owner Petition SB CFD (5702 : Resolutions of Intention to Establish Community Facilities
EXHIBIT B
LEGAL DESCRIPTION
Real property in the City of San Bernardino, County of San Bernardino, State of California,
described as follows:
Assessor Parcel Nos:
0348-111-51
0348-111-52
0261-031-10
0261-031-11
0261-062-11
0261-062-12
0261-062-13
0261-062-14
B-1
20.d
Packet Pg. 403 Attachment: FN.2018-2 Verdemont Ranch Land Owner Petition SB CFD (5702 : Resolutions of Intention to Establish Community Facilities
21.a
Packet Pg. 404 Attachment: CM.Legislative Update.STAFF REPORT (5703 : Legislative Update)
drafted and provided for review to the Mayor and City Council. The status of the state
propositions, Assembly and Senate Bills, currently under review or being monitored by
staff are identified in the SB City Legislative Watchlist as of August 7, 2018 (Attachment
1). On April 4, 2018 the Mayor and City Council gave direction to submit letters of
opposition for the following bills:
1. Assembly Bill (AB) 1759 (McCarty): A bill that ties housing production to street
and highway funding available under Senate Bill (SB) 1.
2. SB 827 (Weiner): A bill making it legal to build small and mid-rise apartment
buildings near high-quality transit by exempting these areas from certain
restrictive zoning standards.
3. SB 828 (Weiner): A bill that increases state oversight over local and regional
housing obligations.
There are two additional assembly bills recommended for review and response by the
Mayor and City Council including AB 2495 which would limit a City’s ability to recover
litigation costs on violations of local ordinances and AB 2681 requiring building
departments in local jurisdictions to create an inventory of seismically vulnerable
buildings within their jurisdiction.
AB 2495 (Mayes)
Assembly Bill (AB) 2495 introduced by Assemblymember Chad Mayes, prohibits a city
and/or county, from charging a criminal defendant for the costs of investigation,
prosecution, or appeal in a criminal case, including, but not limited to, a criminal
violation of a local ordinance. As drafted, the bill will undermine the ability of cities to
recover appropriate local costs when they expend resources to protect their citizens
from absentee landlords and others who refuse to address code violations.
The bill will eliminate the use of cost recovery for criminal nuisance abatement, a tool
that many municipalities utilize to compel code offenders to comply with health and
safety laws that protect occupants, neighbors and the community. Many cities lack the
means to force abatement from violators, unless they can offset some of their staff costs
and attorney fees, through successful litigation. Without criminal enforcement,
compliance will ultimately be harder to obtain from uncooperative property owners.
Given that AB 2495 makes it harder to achieve compliance with uncooperative property
owners and eliminates the ability to recuperate costly litigation over noncompliance, it is
recommended that the Mayor and City Council oppose AB 2495 as currently written and
endorse the amendment drafted by the California Association of Code Enforcement
Officers and the League of California Cities. The amendment provides for procedural
safeguards to address alleged abuses that gave rise to the introduction of AB 2495 and
can only be used when the violator has ignored notices and been provided a reasonable
opportunity to correct the violation. A letter opposing AB 2495 with the proposed
amendment has been included with this report (Attachment 3).
8/9/2018 11:39 AM
21.a
Packet Pg. 405 Attachment: CM.Legislative Update.STAFF REPORT (5703 : Legislative Update)
AB 2681 (Nazarian)
While California has some of the most modern and earthquake-resistant buildings in the
world, more than 28 million Californians live in areas of high seismic risk. Assembly Bill
(AB) 2681 is designed to help cities identify seismically vulnerable structures in their
communities. While the intended purpose of AB 2681 is admirable, as the bill seeks to
take a first step to developing longer-term solutions to mitigate the risks of a large-scale
earthquake, the bill burdens local government with a state-mandated program estimated
to cost local governments in California $90 million annually. If AB 2681 passes, the City
of San Bernardino Community Development Department would be required to create an
inventory of seismically vulnerable buildings within our jurisdiction and submit the data
to the Office of Emergency Services (CalOES) to create a statewide inventory. By
increasing the duties of our Community Development Department, this bill would create
an unfunded state-mandated local program.
AB 2681 creates a process for the state to compile an inventory of seismically
vulnerable buildings by requiring, on or before January 1, 2021, each local building
department to develop an inventory of vulnerable buildings within its jurisdiction. This bill
defines potentially vulnerable buildings as buildings located in a region of the state most
susceptible to earthquakes as determined in the 2008 US Geological Survey National
Seismic Hazard Model and/or with one or more design and construction characteristics,
that are generally known by the engineering community to present high risk in
earthquakes. Potentially vulnerable buildings do not include buildings designed and
constructed for use exclusively as a dwelling by four of fewer families; buildings not
intended for human occupancy; buildings designed and constructed primarily for farm
work; and/or hospitals, public schools, or buildings owned by the state or federal
government. The owner of a building identified by the Community Development
Department as potentially vulnerable, must retain a licensed professional engineer to
verify whether the building is potentially vulnerable, and if so, complete the state’s
standard reporting form. AB 2861 also does not set aside funds to assist property
owners after their property is found to be vulnerable and may impact the sale of
properties in the city.
Given that AB 2681 creates an unfunded mandate, has a projected cost of $90 million
per year to local governments, and applies an additional burden to property owners, it is
recommended that the Mayor and City Council oppose AB 2681 as currently written. A
letter opposing AB 2681 has been included with this report (Attachment 5).
2018-2019 Goals and Objectives
The proposed assembly bills AB 2495 and AB 2681 do not align the 2018-2019 Goal
and Object of Operating in a Fiscally Responsible Business Like-Manner as they
eliminate a cost recovery source or place an unfunded mandate.
Fiscal Impact
No fiscal impact is created by opposing the Assembly Bills. However, significant fiscal
impacts may occur in terms of loss of litigation cost recuperation if AB 2495 becomes
law and/or increased unfunded state mandate if AB 2681 becomes law.
8/9/2018 11:39 AM
21.a
Packet Pg. 406 Attachment: CM.Legislative Update.STAFF REPORT (5703 : Legislative Update)
Conclusion
It is recommended that the Mayor and City Council authorize the Mayor to execute the
letters of opposition for proposed Assembly Bill 2495 without amendment and Assembly
Bill 2681 as introduced as it eliminates a compliance tool and cost recuperation creating
an unfunded state mandate.
Attachments
Attachment 1 – SB City Legislative Watchlist
Attachment 2 – AB 2495 Fact Sheet & Analysis
Attachment 3 – Letter Opposing AB 2495
Attachment 4 – AB 2681 Fact Sheet & Analysis
Attachment 5 – Letter Opposing AB 2681
Attachment 6 – Legislative Platform
Ward: All
Synopsis of Previous Council Actions:
4/4/2018 – Staff Report for Opposition Letters to Proposed Housing Legislation (AB 1759, SB 827
and SB 828) was given to Council.
4/18/2018 – Resolution No. 2018-117 establishing the legislative program policy and procedures
and the 2018 Legislative and Regulatory Platform for the City of San Bernardino.
8/9/2018 11:39 AM
21.a
Packet Pg. 407 Attachment: CM.Legislative Update.STAFF REPORT (5703 : Legislative Update)
Page 1 of 6
Jurisdiction Legislative
Item Formal Name Summary Impact on San Bernardino Current Status
as of 8/7/18
League
Stance
SB City
Stance Action Taken
California
AB 1759
(McCarty)
Public Trust
Lands: City of
Sacramento
AB 1759 completes an
agreement between the
City of Sacramento and
the State Lands
Commission as part of
the Downtown Railyards
Title Settlement and
Exchange Agreement by
transferring to the City
specified parcels in Sand
Cove Park.
The bill would potentially tie
housing production to street
and highway funding
available to San Bernardino
under SB 1 (Transportation
Funding)/Gas Tax. If the
housing production is not
met, the City may lose out on
transportation funding.
Action Taken on
8/6/18 - From
committee: Be
ordered to
second reading
file pursuant to
Senate Rule 28.8
and ordered to
Consent
Calendar.Watch Oppose
4/4/2018 -
Sent
Opposition
Letter -
Persico
Legislative Watchlist
21.bPacket Pg. 408Attachment: CM.Legislative Update.ATTACHMENT 1 (5703 : Legislative Update)
Page 2 of 6
Jurisdiction Legislative
Item Formal Name Summary Impact on San Bernardino Current Status
as of 8/7/18
League
Stance
SB City
Stance Action Taken
Legislative Watchlist
California
AB 1838
(Committee on
Budget)
Local
Government:
Taxation:
Prohibition:
Groceries
AB 1838 is the Local
Government Tax trailer
bill related to the Budget
Act of 2018. Specifically
this bill includes
prohibiting the
imposition, increase, levy
and collection, or
enforcement by a local
agency of any tax, fee or
other assessment on
groceries until January 1,
2031, excluding
alcoholic beverages,
cannabis products,
cigarettes, tobacco
products, and electronic
cigarettes.
The bill is a compromise to
remove the State Proposed
Initiative 1846 from the
ballot. The initiative would
require a supermajority (two
thirds) approval to enact new
local government revenue
measures. Instead of limiting
all new local government
revenue measures, AB 1838
prohibits a city from creating
a grocery tax, fee, or other
assessment until January 1,
2031.
Action Taken on
6/28/2018 -
Chaptered Oppose
No
stance Watching
21.bPacket Pg. 409Attachment: CM.Legislative Update.ATTACHMENT 1 (5703 : Legislative Update)
Page 3 of 6
Jurisdiction Legislative
Item Formal Name Summary Impact on San Bernardino Current Status
as of 8/7/18
League
Stance
SB City
Stance Action Taken
Legislative Watchlist
California
AB 2268
(Reyes)
Annexation
Finance,
Restoration of
Lost Revenue
AB 2268 restores
revenues previously
allocated to cities that
annexed inhabited
territory prior to the
passage of SB 89 of
2011. The bill would
also restore incentives to
support future
annexations of inhabited
areas as encouraged by
existing state policies.
Prior to 2011, cities would
receive funding allocated
from annual vehicle license
fees, when a city would
annex inhabited territory.
This bill would restore that
revenue to cities who have
annexed since 2011. If
passed, San Bernardino
would receive an additional
$112,944 in annual revenue.
Action Taken on
5/25/2018 - In
committee: Held
under
submission. Will
be reintroduced
in 2019 after the
election period Sponsor Support
Drafted
Support Letter
and Staff
Report,
waiting on Bill
Reintroduction
1/2019
California
AB 2495
(Mayes)
Protecting
Defendants
Against
Criminal
Prosecution
Costs
AB 2495 would, unless
authorized by statute or
ordered by a court,
prohibit a city, county, or
city and county--
including an attorney
acting on behalf of a city,
county, or city and
county--from charging a
defendant for the costs of
an investigation,
prosecution, or appeal in
a criminal case, such as
criminal violations of
local ordinance.
If passed, this bill would
eliminate the use of cost
recovery for criminal
nuisance abatement. Without
criminal enforcement, code
compliance will ultimately
be harder to obtain from
uncooperative property
owners.
Action Taken on
8/1/18 - Ordered
to special
consent calendar.Oppose Oppose
8/15/2018 -
Staff report
and opposition
letter taken to
Council
21.bPacket Pg. 410Attachment: CM.Legislative Update.ATTACHMENT 1 (5703 : Legislative Update)
Page 4 of 6
Jurisdiction Legislative
Item Formal Name Summary Impact on San Bernardino Current Status
as of 8/7/18
League
Stance
SB City
Stance Action Taken
Legislative Watchlist
California
AB 2681
(Nazarian)
Seismically
Vulnerable
Buildings
AB 2681 would require
building departments in
local jurisdictions to
create an inventory of
potentially seismically
vulnerable buildings
within their jurisdiction
and submit it to the
Office of Emergency
Services (CalOES) to
create a statewide
inventory.
If passed, this bill will
require the San Bernardino
Community Development
Department to create an
inventory of seismically
vulnerable buildings within
our jurisdiction to create a
statewide inventory. By
increasing the Department
scope of work, this bill
creates an unfunded state-
mandated local program. In
addition, AB 2681 impacts
property owners by applying
an extra burden of retaining
a licensed professional
engineer to evaluate their
property, if deemed
seismically vulnerable.
Action Taken on
7/02/18 - Read
second time and
amended. Re-
referred to
Committee on
Apropriations Oppose Oppose
8/15/2018 -
Staff report
and opposition
letter taken to
Council
21.bPacket Pg. 411Attachment: CM.Legislative Update.ATTACHMENT 1 (5703 : Legislative Update)
Page 5 of 6
Jurisdiction Legislative
Item Formal Name Summary Impact on San Bernardino Current Status
as of 8/7/18
League
Stance
SB City
Stance Action Taken
Legislative Watchlist
California
Proposition 6:
Repeal of SB
1 (Beall)
Transportation
Funding
Voter
Approval for
Future Gas
and Vehicle
Taxes and
2017 Tax
Repeal
Initiative
Repeal of SB 1: A robust
transportation finance
proposal that eliminates
more than $132 billion in
deferred street, highway,
and bridge repairs. The
bill adjusts an obsolete
revenue system to
maintain a transportation
network that can meet
California's needs in the
21st century.
If SB 1, also known as gas
tax, is repealed it would have
a devasting impact on San
Bernardino. The city would
lose millions of dollars in
revenue, and departments
and programs throughout the
city would be impacted with
cuts or reductions.
On ballot for
November 2018
Election Oppose Oppose Watching
California
SB 827
(Weiner)
Planning and
Zoning:
Transit-rich
Housing
Bonus
Senate Bill 827 makes it
legal to build small and
mid-rise apartment
buildings near high-
quality transit by
exempting these areas
from certain restrictive
zoning standards.
This bill would allow for
small to mid-rise apartment
buildings to circumvent city
zoning law and build near
high-quality transit
regardless of prior zoning
standards.
Action Taken on
4/27/2018 - Dead Watch Oppose
4/4/2018 -
Sent
Opposition
Letter -
Persico
21.bPacket Pg. 412Attachment: CM.Legislative Update.ATTACHMENT 1 (5703 : Legislative Update)
Page 6 of 6
Jurisdiction Legislative
Item Formal Name Summary Impact on San Bernardino Current Status
as of 8/7/18
League
Stance
SB City
Stance Action Taken
Legislative Watchlist
California
SB 828
(Weiner)
Land Use:
Housing
Element
Senate Bill 828
strengthens the Regional
Housing Needs
Assessment (RHNA) by
increasing state oversight
over local and regional
housing obligations, and
requiring the Department
of Housing and
Community
Development (HCD) to
adequately calculate
California's unmet
housing need.
SB 828 would increase the
city's requirement to meet
statewide affordable housing
goals without providing any
new sources of revenue.
Additionally, as any housing
which is not build by the
private sector is rolled into
the following housing plan
cycle, a city may have a
perpetual deficit with no
ability to receive
transportation improvement
funds under AB 1759, if AB
1759 is passed and signed
into law.
Action Taken on
7/2/18 - Read
second time and
amended. Re-
referred to
Committee on
Appropriations
Oppose
Unless
Amended Oppose
4/4/2018 -
Sent
Opposition
Letter -
Persico
California
State Proposed
Initiative 1846
Supermajority
Requirement
for New Local
Government
Revenue
Measures
This initiative would
require a supermajority
approval to enact new
local government
revenue measures.
This initiative would impact
San Bernardino's ability to
approve new revenue
measures (assessments, fees,
taxes, etc.) by requiring a
two thirds majority to pass.
Action Taken on
6/28/2018 -
Withdrawn Oppose Oppose Watching
21.bPacket Pg. 413Attachment: CM.Legislative Update.ATTACHMENT 1 (5703 : Legislative Update)
Staff Contact: Leigh.Kammerich@asm.ca.gov, (916) 319-2042
Bill Version: Amended, June 7, 2018
AB 2495 (Mayes, E. Garcia) Fact Sheet
Protecting Defendants Against Criminal Prosecution Costs
SUMMARY
AB 2495 would, unless authorized by statute or ordered by a court, prohibit a city, county, or city and county—
including an attorney acting on behalf of a city, county, or city and county—from charging a defendant for the
costs of an investigation, prosecution, or appeal in a criminal case, such as criminal violations of a local
ordinance.
BACKGROUND
Current law gives broad authority to local government to not only declare what is a nuisance, but also how to
approach code enforcement either administratively, civilly, or criminally. A local entity may also pursue cost
recovery options as long as they adopted a local ordinance specifically allowing for it.
In November 2017, the Desert Sun uncovered two cities in the Coachella Valley using the same private law
firm taking property owners to criminal court over minor violations of a local ordinance—many of which the
private law firm specializes in drafting. Residents and businesses faced misdemeanor charges and were billed
thousands of dollars for what should have amounted to a small fine. Typical code enforcement crimes include
overgrown weeds, junk filled yards, posting illegal signs, failing to get a building permit, operating a lemonade
stand without a business license, or having a sun-damaged address number.
These prosecution fees were never disclosed during a plea deal. Instead, unsuspecting property owners received
a bill for thousands of dollars months later, and some were threatened with liens against their property if they
didn’t pay. In total, with the addition of code enforcement fees, administration fees, abatement fees, litigation
fees and appeal fees, there were 18 cases with a total cost of more than $200,000.
PURPOSE OF THE BILL
AB 2495 would right a wrong. Defendants should not be billed for the privilege of being investigated or
prosecuted for crimes, including criminal violations of a local ordinance such as public nuisance offense. A
more appropriate venue to settle code enforcement or nuisance abatement issues is in civil court. While fines are
appropriate to punish criminal violations, allowing defendants to be charged for the cost of investigation and
prosecution is unjust and skews enforcement priorities. Unlike criminal cases, in civil cases an amount a
defendant pays must be approved by a judge, who can deny any bill that seems exorbitant.
Local governments should help neighborhoods and business owners clean up property to maintain quality of life
and reduce blight; they should not be in the business of policing for profit.
SUPPORT
California Public Defenders Association
Civil Justice Association of California
Ella Baker Center for Human Rights
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Packet Pg. 414 Attachment: CM.Legislative Update.ATTACHMENT 2 (5703 : Legislative Update)
AB 2495
Page 1
Date of Hearing: April 3, 2018
Counsel: Matthew Fleming
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Reginald Byron Jones-Sawyer, Sr., Chair
AB 2495 (Mayes) – As Introduced February 14, 2018
SUMMARY: Makes it unlawful for a local city or county government to charge a person for the
costs of investigation, prosecution, or appeal that that city or county sustains in a criminal case .
Specifically, this bill: prohibits a city, county, or city and county, including an attorney acting
on behalf of a city, county, or city and county, from charging a criminal defendant for the costs
of investigation, prosecution, or appeal in a criminal case, including, but not limited to, a
criminal violation of a local ordinance.
EXISTING LAW:
1) Defines a nuisance as anything which is injurious to health, indecent or offensive to the
senses, or an obstruction to the free use of property, so as to interfere with the comfortable
enjoyment of life or property, or unlawfully obstructs the free passage or use, in the
customary manner, of any public right of way. (Civ. Code § 3479.)
2) Allows the legislative body of a city to provide for the summary abate ment of any nuisance
at the expense of the persons causing it and by ordinance may make the expense of
abatement of nuisances a lien against the property on which it is maintained and a personal
obligation against the property owner, in accordance with law. (Gov. Code § 38773.)
3) Provides that the legislative body of a city may by ordinance establish a procedure to collect
abatement costs by a nuisance abatement lien, but the ordinance must require notice to the
owner of record of the parcel of land on which the nuisance is maintained. (Gov. Code §
38773.1 subd. (a).)
4) Provides that notice of an abatement lien shall be served in the same manner as a summons in
a civil action and that if the owner of record, after diligent search cannot be found, the notic e
may be served by posting a copy thereof in a conspicuous place upon the property for a
period of 10 days and publication thereof in a newspaper of general circulation published in
the county in which the property is located. (Gov. Code § 38773.1 subd. (b).)
5) Provides that a nuisance abatement lien shall be recorded in the county recorder’s office in
the county in which the parcel of land is located. (Gov. Code § 38773.1 subd. (c).)
6) Provides that a nuisance abatement lien shall specify the amount of the lien, the name of the
agency on whose behalf the lien is imposed, the date of the abatement order, the street
address, legal description and assessor’s parcel number of the parcel on which the lien is
imposed, and the name and address of the recorded owne r of the parcel. (Gov. Code §
38773.1 subd. (c)(1).)
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AB 2495
Page 2
7) Provides that in the event that the lien is discharged, released, or satisfied, either through
payment or foreclosure, notice of the discharge containing the information required by law
shall be recorded by the governmental agency, and that a nuisance abatement lien and the
release of the lien shall be indexed in the grantor -grantee index. (Gov. Code § 38773.1 subd.
(c)(2).)
8) Provides that a nuisance abatement lien may be foreclosed by an action brought by the city
for a money judgment. (Gov. Code § 38773.1 subd. (c)(3).)
9) Provides that notwithstanding any other provision of law, the county recorder may impose a
fee on the city to reimburse the costs of processing and recording the lien and providing
notice to the property owner, and that a city may recover from the property owner any costs
incurred regarding the processing and recording of the lien and providing notice to the
property owner as part of its foreclosure action to enforce the lien. (Gov. Code § 38773.1
subd. (c)(4).)
10) Provides that, as an alternative to the procedure authorized by California State law, the
legislative body of a city may by ordinance establish a procedure for the abatement of a
nuisance and make the cost of abatement of a nuisance upon a parcel of land a special
assessment against that parcel. (Gov. Code § 38773.5 subd. (a).)
11) Provides that a city may, by ordinance, provide for the recovery of attorneys’ fees in any
action, administrative proceeding, or special proceeding to abate a nuisance, so long as:
a) If the city ordinance provides for the recovery of attorneys’ fees, it shall provide for
recovery of attorneys’ fees by the prevailing party, rather than limiting recovery of
attorneys’ fees to the city if it prevails;
b) The ordinance may limit recovery of attorneys’ fees by the prevailing party to those
individual actions or proceedings in which the city elects, at the initiation of that
individual action or proceeding, to seek recovery of its own attorneys’ fees; and
c) In no action, administrative proceeding, or special proceeding shall an award of
attorneys’ fees to a prevailing party exceed the amount of reasonable attorneys’ fees
incurred by the city in the action or proceeding. (Gov. Code § 38773.5 subd. (b).)
12) States that the city legislative body, by ordinance, may provide that upon entry of a second or
subsequent civil or criminal judgment within a two -year period finding that an owner of
property or a person described by law is responsible for a condition that may be abated in
accordance with an ordinance enacted pursuant to specified state law, the court may order
that person to pay treble costs of the abatement. (Gov. Code § 38773.7.)
FISCAL EFFECT: Unknown
COMMENTS:
1) Author's Statement: According to the author, “Local governments should help
neighborhoods and business owners clean up property to maintain quality of life and reduce
blight; they should not be in the business of policing for profit. A lemonade stand, outdoor
21.c
Packet Pg. 416 Attachment: CM.Legislative Update.ATTACHMENT 2 (5703 : Legislative Update)
AB 2495
Page 3
holiday decoration, backyard chickens or faded address numbers shouldn’t cost someone
thousands of dollars in fines and fees and a lien against their property to remedy. AB 2495
would right a wrong where local governments can charge defendants for the privilege of
being investigated and prosecuted for minor crimes, including criminal violations of a local
ordinance such as public nuisance offense.”
2) Legal Background Regarding Nuisances : A “public nuisance” is a legal term used to
describe anything that makes everyday life for members of the community unsafe or
inconvenient. A public nuisance could be almost anything that is dangerous, offensive, or
obstructive. Some common examples of a nuisance include loud fireworks, strong odors
such as those produced by raw sewage, or some kind of phys ical obstruction that interferes
with the public right of way, such as decorations or large bushes that block the view of
oncoming traffic.
Existing law affords city and county governments broad authority to establish their own
procedures for the legal enforcement of public nuisances, which is often referred to as
“nuisance abatement.” Cities and counties can go after the person alleged to have caused the
nuisance in administrative, civil, and even criminal proceedings. Furthermore, existing law
provides that city and county governments can establish local ordinances which allow for the
recovery of all costs associated with the effort to abate the nuisance.
3) Examples of the Problem this Bill Seeks to Rectify : Pursuant to existing law, the city of
Indio has enacted a local ordinance which proclaims that “the City is authorized to initiate an
administrative or civil action to impose and recover all costs, expenses, and fees (including
attorneys’ fees) expended by the City related to any nuisance abatement or code enforcement
action.” (see City of Indio Code of Ordinances § 10.20 subd. B.) Indio’s ordinance further
specifies that administrative costs include “time spent by a city or employee or contractor for
nuisance or code enforcement activities related to the violation” and also “legal services
including litigation costs, court costs, and attorneys’ fees.” (Ibid.) Likewise, the city of
Coachella has an ordinance which states “the person(s) responsible for causing the public
nuisance conditions shall be liable for all costs of abatement incurred by the city, including,
but not limited to administrative costs.” (City of Coachella Code of Ordinances § 3.36.010
subd. B.)
In addition to establishing procedures for the enforcement of public nuisances and recovery
of costs, the cities of Indio and Coachella have taken to the practice of retaining a private law
firm in order to criminally prosecute those individuals who are accused with having caused
public nuisances. This practice appears to have led to exorbitant fines being levied against
persons who have caused only minimal nuisances. These cases have been well-covered in
local news and have recently attracted national attention (Westervelt, Some California Cities
Criminalize Nuisance Code Violations, National Public Radio, “All Things Considered,”
Feb. 14, 2018, available at: <https://www.npr.org/2018/02/14/585122825/some-california-
cities-criminalize-nuisance-code-violations> [as of March 26, 2018].)
A couple of examples of Indio and Coachella’s nuisance abatement that were published in
the Palm Springs Desert Sun are particularly striking. In the first example, a 79 year -old
landlord was charged with a criminal infraction as a result of the fact that one of her tenants
had a few chickens on her property. (Kelman, She Was Fined $5,600 for a few Chickens,
The Desert Sun, available at:
21.c
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AB 2495
Page 4
<https://www.desertsun.com/story/news/crime_courts/2018/02/13/institute -justice-attacks-
california-prosecution-fees/331308002/> [as of March 26, 2018].) Although she initially
thought she had resolved the matter by pleading guilty to the infraction and paying a small
fine, she was later billed thousands of dollars by the private law firm that the city of Indio
had retained to prosecute her.
In the second example, a man was criminally charged in Coachella after making a minor
expansion to his home without a permit. As a result of the criminal charge, the man pled
guilty, brought his house up to code, and paid a $900 fine. More than a year later, the law
firm retained by the City of Coachella – the very same that was used in the $5,600 chicken
case – sent him a bill for $26,000. The man protested the amount and the law firm raised the
bill to $31,000. (Kelman, They Confessed to Minor Crimes. Then City Hall Billed them
$122k in “Prosecution Fees,” The Desert Sun, available at:
<https://www.desertsun.com/story/news/crime_courts/2017/11/15/he-confessed-minor-
crime-then-city-hall-billed-him-31-k-his-own-prosecution/846850001/> [as of March 28,
2018].)
The examples continue, including a $25,200 bill for an unsightly yard (it had been used for
illegal dumping), a $4,200 bill for a Halloween decoration that stretched across a road, and a
$5,100 bill for selling a parking space without a business license. (Id.) These fines seem
totally out of proportion with the inconveniences caused, and this pattern of nuisance
abatement is troubling to say the least. Such scenarios beg for a solution. This bill would
prevent local cities and counties from passing the costs of their investigations and
prosecutions of minor crimes off on the same people they elect to prosecute. It would also
prevent a law firm, such as the one retained by Indio and Coachella in the examples above,
from selling the services of local ordinance drafting and nuisance abatement prosecution as a
package designed to generate profit by charging exorbitant fees to those who have committed
the most minor legal violations.
4) Prior Legislation: SB 567 (Torlakson) Chapter 60, Statutes of 2003, increase d the fines for
city and county ordinances determined to be a criminal infraction.
REGISTERED SUPPORT / OPPOSITION :
Support
California Public Defenders Association
Civil Justice Association of California
Opposition
None
Analysis Prepared by: Matthew Fleming / PUB. S. / (916) 319 -3744
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Packet Pg. 418 Attachment: CM.Legislative Update.ATTACHMENT 2 (5703 : Legislative Update)
Office of the Mayor | R. Carey Davis, Mayor
August 15, 2018
The Honorable Chad Mayes
Member of the Assembly
State Capitol
Sacramento, CA 94249
RE: AB 2495 (Mayes). Prosecuting attorneys: charging defendants for the
prosecution costs of criminal violations of local ordinances.
Notice of Opposition (as amended 6/7/18)
Dear Assembly Member Mayes:
As currently drafted, Assembly Bill 2495, undermines the ability of cities to recover
appropriate local costs when they expend resources to protect their citizens from
absentee landlords and others who refuse to address code violations. As a city that is
combatting urban blight, the City of San Bernardino simply cannot support AB 2495 as
currently written. Yet, we do support the California Association of Code Enforcement
Officers and the League of California Cities proposed good-faith amendments
(attached) which respond directly to the due process concerns that led to the
introduction of this bill.
For a city recuperating from fiscal adversity, we lack sufficient resources to effectively
compel abatement from violators refusing to comply, unless we have the ability to offset
some of our staff costs and attorney fees through successful litigation. As our budget,
much like other cities throughout California, is limited, this factor coupled without the
possibility of cost recovery, cripples the scope of our enforcement. We will not be able
to effectively and efficiently enforce important housing and other laws as we otherwise
would. Without criminal enforcement, compliance will ultimately be harder to obtain from
uncooperative property owners who can delay, dodge, and use their resources to drive
up costs to the city.
While an alternative can be the usage of a civil lawsuit to force compliance, civil cases
can take years to complete and are exponentially more expensive for cities and
violators alike. Although we understand that supporters of AB 2495 have concerns
about abusers that police for profit, we are confident that the proposed amendment
290 North D St, San Bernardino, CA 92401 | P: 909-384-5122 | F: 909-384-5138 | www.SBCity.org
21.d
Packet Pg. 419 Attachment: CM.Legislative Update.ATTACHMENT 3 (5703 : Legislative Update)
would mitigate those fears (Attached). The amendment provides for procedural
safeguards to address alleged abuses that gave rise to the introduction of AB 2495 and
can only be used when the violator has ignored notices and been provided a reasonable
opportunity to correct the violation. This allows for the city to both provide safety to our
residents and businesses and develop a sustainable financial strategy that creates
stability and allows the City to reinvest in operations and infrastructure.
For these reasons, the City of San Bernardino opposes AB 2495 as introduced and
supports the California Association of Code Enforcement Officers and League of
California Cities proposed Amendment.
Sincerely,
CITY OF SAN BERNARDINO
R. Carey Davis
Mayor
cc: The Honorable Eloise Gomez Reyes. California State Assembly (AD 47)
The Honorable Marc Steinorth, California State Assembly (AD 40)
The Honorable Connie M. Leyva, California State Senate (SD 20)
The Honorable Mike Morrell, California State Senate (SD 23)
Laura Morales, League Regional Public Affairs Manager, Lmorales@cacities.org
Meg Desmond, League of California Cities, cityletters@cacities.org
City of San Bernardino Page 2 of 2
21.d
Packet Pg. 420 Attachment: CM.Legislative Update.ATTACHMENT 3 (5703 : Legislative Update)
AB 2495 (Mayes)
League of California Cities and California Association of Code Enforcement Officers,
Proposed Amendment. AB 2495 (Mayes)
688.5.
A city, county, or city and county, including an attorney acting on behalf of a city, county, or city
and county, shall not charge a defendant for the costs of investigation, prosecution, or appeal in
a criminal case, including, but not limited to, a criminal violation of a local ordinance, unless all
of the following conditions apply:
1) The city, county or city and county has provided the prospective defendant with notice
either in person or by certified mail and a reasonable period sufficient to correct the
violation. If the prospective defendant cannot be located, then posting the notice at a
conspicuous place on the property shall be deemed sufficient. The notice provided shall
describe any local applicable cost-recovery policies that apply if the identified violation is
not corrected within the reasonable period provided in the notice and the matter is later
pursued by the local agency as a criminal case.
2) No cost recovery shall apply and all local enforcement actions pertaining to that specific
violation shall be deemed concluded if the prospective defendant has corrected the
identified violation within the reasonable period provided in the notice. The local agency
may, upon request of the prospective defendant, grant an extension to the period to
correct the violation if it is determined that good-faith efforts to correct the violation have
commenced and additional time to complete the work is necessary.
3) If the prosecution of the criminal case is pursued by the local agency for an uncorrected
violation, the Court shall consider whether the defendant has been provided notice and a
reasonable opportunity to correct the violation prior to the commencement of the criminal
action. The defendant shall be provided, at the time of sentencing or settlement of the
criminal case or within 10 days by certified mail, a full accounting of all costs to be
recovered.
4) The defendant retains the right to appeal the cost recovery amount to a local neutral
hearing officer or other appeals process as provided by local ordinance and the local
legislative body.
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Packet Pg. 421 Attachment: CM.Legislative Update.ATTACHMENT 3 EXHIBIT 1 (5703 : Legislative Update)
‘
Last Updated: 4/24/18
AB 2681, SEISMICALLY VULNERABLE BUILDINGS
ASSEMBLYMEMBER ADRIN NAZARIAN
Bill Summary:
AB 2681 would require building departments
in local jurisdictions to create an inventory of
potentially seismically vulnerable buildings
within their jurisdiction and submit it to the
Office of Emergency Services (CalOES) to
create a statewide inventory.
Background:
California contains thousands of buildings
that are known to present a heightened
earthquake risk of death, injury, and damage
based on their age, structural system, size, and
location. The most recent California
ShakeOut study estimates that a major quake
along the San Andreas Fault could cause more
than $200,000,000,000 in physical and
economic damage, and could result in up to
1,800 or more deaths.
The chronic labor and affordable housing
shortages most California cities already suffer
would dramatically increase for years to come
following such an event. Protecting the state’s
economy, affordable housing stock, and social
fabric from the long-lasting turmoil of a large-
scale earthquake is critical, and the failure to
do so could impact Californians’ quality of
life for decades. As the sixth largest economy
in the world, the aftershocks of such an event
in California would have national and even
global impacts.
Solution:
This bill would require city and county
building departments to submit to CalOES an
inventory of buildings in their jurisdiction that
are potentially vulnerable to seismic activity.
The bill defines “potentially vulnerable” as a
building:
located in a region of the state most
susceptible to earthquakes as
determined by the 2008 United States
Geological Survey National Seismic
Hazard Model
with one or more design and
construction characteristics, as
defined, that are generally known by
the engineering community to present
a high risk in earthquakes.
“Potentially vulnerable” buildings do not
include:
Buildings designed and constructed
for use exclusively as a dwelling by
four or fewer families
Buildings not intended for human
occupancy and located entirely outside
of a city or county
Buildings designed and constructed
primarily for farm work
Hospitals, public schools, or buildings
owned by the state or federal
government
CalOES must maintain a statewide inventory
of potentially vulnerable buildings, create a
standard reporting form, prepare a report
identifying possible funding mechanisms
available to building departments and
building owners in complying with these
provisions, and report annually to the
Legislature on the compliance of building
departments. The owner of a building
identified by a building department as
potentially vulnerable must retain a licensed
professional engineer to verify whether the
building is potentially vulnerable, and if so,
complete the standard reporting form.
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Packet Pg. 422 Attachment: CM.Legislative Update.ATTACHMENT 4 (5703 : Legislative Update)
‘
Last Updated: 4/24/18
AB 2681, SEISMICALLY VULNERABLE BUILDINGS
ASSEMBLYMEMBER ADRIN NAZARIAN
An accurate statewide building vulnerability
map is an essential first step in developing
longer-term solutions to mitigate the effects
of a large-scale earthquake and to protect our
economy and limited affordable housing
stock.
Support:
Seismic Resilience Initiative (Sponsor)
City of LA
Fair Housing Council of Riverside County
State Building and Construction Trades
Council, AFL-CIO
United States Green Building Council
United State Resiliency Council
Various Individuals
Oppose unless amended:
California Association of Realtors
Staff Contact:
Emellia Zamani
916-319-2046
Emellia.Zamani@asm.ca.gov
21.f
Packet Pg. 423 Attachment: CM.Legislative Update.ATTACHMENT 4 (5703 : Legislative Update)
AB 2681
Page 1
Date of Hearing: May 16, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
AB 2681 (Nazarian) – As Amended April 12, 2018
Policy Committee: Governmental Organization Vote: 12 - 3
Local Government 6 - 2
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill creates a process for the state to compile an inventory of seismically vulnerable
buildings. Specifically, this bill:
1) Requires, on or before January 1, 2021, each local building department to develop an
inventory of vulnerable buildings within its jurisdiction, based on specified factors, and
notify the owners of each identified building of its vulnerable status. Only buildings located
in specified areas based on the 2008 United States Geological Survey National Seismic
Hazard model must be included in this inventory.
2) Requires, on or before January 1, 20 22, owners of vulnerable buildings to submit a letter
from an engineer stating whether the building meets the definition of vulnerable, and
authorizes a building department to remove the building from the inventory.
3) Requires the California Office of Emergency Services (Cal OES) to maintain a statewide
inventory of vulnerable buildings, and requires building departments to submit their
compiled inventories to Cal OES by June 1, 2022.
4) Requires building owners to retain a professional engineer to fill out a r eporting form
developed by Cal OES and to submit that form to Cal OES by June 1, 2025.
5) Requires Cal OES to identify funding mechanisms, including state funds, revenue bonds,
local funds, and private grants, to offset costs to building departments and building owners
for complying with the provisions of this bill.
FISCAL EFFECT:
1) Significant ongoing General Fund costs, potentially in excess of $1 million each year, for Cal
OES to manage received data, assist local building departments with compliance, prepa re
annual reports, and coordinate earthquake-related responsibilities of building departments.
2) Significant, and potentially reimbursable, costs in the tens of millions of dollars across local
building departments to develop an inventory by January 1, 2021 . If each of the 45 affected
counties coordinates with local building departments to develop these inventories and spends
an average $2 million annually on developing the required inventory, ongoing costs across
affected counties would be $90 million each year.
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AB 2681
Page 2
These cost estimates are subject to significant uncertainty because costs will vary across
building departments based on the number of eligible buildings and the status of existing
work related to developing inventories of seismically vulnerable b uildings.
AB 2681 specifies that Cal OES must identify funding mechanisms to help reimburse
building departments for this work.
COMMENTS:
1) Background. While California has some of the most modern and earthquake -resistant
buildings in the world, more than 28 million Californians live in areas of high seismic risk.
The Seismic Safety Commission, in a 2017 report, notes that most of the state’s older
buildings could be damaged in a major earthquake and a small percentage of them could
partially or completely collapse. The 2017 report also details the types of buildings most
vulnerable, which are: a) pre-1940’s unreinforced masonry, which are primarily brick
buildings; b) pre-1980’s concrete frame buildings; c) pre -1980’s buildings with soft or open
lower stories, unbraced crawl space walls below first floors, or irregular shapes, including
those on steep hillsides; and, d) pre-2000’s buildings with precast concrete tilt-up walls, and
precast concrete parking structures.
2) Purpose. According to the author, AB 2681 will create an accurate statewide building
vulnerability map, which is the first essential step to developing longer -term solutions to
mitigate the risks of a large-scale earthquake. The author notes that some cities have s tarted
identifying vulnerable buildings and mandating retrofits, but much of the state has not started
this work.
3) Affected counties. Buildings must be located in a region mapped out by the 2008 United
States Geological Survey National Seismic Hazard Model.
Counties fully covered by this map include: Del Norte, Humboldt, Mendocino, Lake,
Sonoma, Napa, Marin, Solano, Sonoma, San Francisco, Contra Costa, Alameda, San Mateo,
Santa Clara, San Benito, Monterey, Santa Cruz, San Luis Obispo, Santa Barbara, Vent ura,
Los Angeles, Orange, and San Diego.
Counties partially covered by this map include: Alpine, El Dorado, Fresno, Imperial, Inyo,
Kern, Kings, Lassen, Merced, Mono, Nevada, Placer, Plumas, Riverside, San Bernardino,
San Joaquin, Shasta, Sierra, Siskiyo u, Stanislaus, and Trinity.
Counties not affected by AB 2681 include: Amador, Butte, Calaveras, Glenn, Modoc,
Madera, Mariposa, Sacramento, Sutter, Tehama, Tulare, Tuolumne, and Yuba.
Analysis Prepared by: Luke Reidenbach / APPR. / (916) 319-2081
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Packet Pg. 425 Attachment: CM.Legislative Update.ATTACHMENT 4 (5703 : Legislative Update)
Office of the Mayor | R. Carey Davis, Mayor
August 15, 2018
The Honorable Adrin Nazarian
Member of Assembly
State Capitol
Sacramento, CA 94249
RE: AB 2681 (Nazarian) – Seismically Vulnerable Buildings.
Notice of Opposition (as amended 7/2/18)
Dear Assembly Member Nazarian:
Many Californians would agree that creating an inventory of potentially seismically
vulnerable buildings is a step in the right direction for preparing against a major
earthquake. As a municipality impacted by the San Andreas fault we understand the
devasting dangers that an earthquake can inflict on our city. Although Assembly Bill
(AB) 2681 helps the City of San Bernardino provide for the safety of our City’s
Residents and Businesses, the City of San Bernardino is strictly against unfunded
mandates and can only support AB 2681 with secured funding.
While the overall intentions of AB 2681 admirable, an amendment must be addressed to
alleviate the cost burden on both municipalities and property owners, projected to
exceed $90 million annually. The City is committed to developing a sustainable financial
strategy that creates stability and allows the City to reinvest in operations and
infrastructure, as a result we must oppose legislation that creates unfunded mandates
for local government. If AB 2681 passes as proposed, the City would have to allocate
resources to evaluate vulnerable buildings and collect the data, while property owners
would have to retain a licensed professional engineer to identify whether their building
meets the definition of a potentially vulnerable building.
For these reasons, the City of San Bernardino opposes AB 2681, as introduced.
290 North D St, San Bernardino, CA 92401 | P: 909-384-5122 | F: 909-384-5138 | www.SBCity.org
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Packet Pg. 426 Attachment: CM.Legislative Update.ATTACHMENT 5 (5703 : Legislative Update)
Sincerely,
CITY OF SAN BERNARDINO
R. Carey Davis
Mayor
cc: The Honorable Eloise Gomez Reyes. California State Assembly (AD 47)
The Honorable Marc Steinorth, California State Assembly (AD 40)
The Honorable Connie M. Leyva, California State Senate (SD 20)
The Honorable Mike Morrell, California State Senate (SD 23)
Laura Morales, League Regional Public Affairs Manager, Lmorales@cacities.org
Meg Desmond, League of California Cities, cityletters@cacities.org
City of San Bernardino Page 2 of 2
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CITY OF SAN
BERNARDINO
2018 Legislative & Regulatory Platform
The City of San Bernardino’s Legislative and Regulatory Platform guides City officials and staff
in considering and rapidly responding to legislative and regulatory proposals introduced at the
State and Federal levels based upon the City’s priority goals and objectives.
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City of San Bernardino
City of San Bernardino
LEGISLATIVE & REGULATORY PLATFORM
PROVIDE FOR THE SAFETY OF CITY RESIDENTS AND BUSINESSES
The City is committed to developing programs that enhance emergency response, reduce crime and
ensure neighborhoods and business areas are safe. As such, the City will support legislation and seek
funding that strengthens law enforcement’s efforts to prevent and reduce crime and will help to contribute
to emergency response and preparedness. The City will oppose reductions in Federal and State funding
for public safety programs and services.
CREATE, MAINTAIN AND GROW JOBS AND ECONOMIC VALUE IN THE CITY
The City is dedicated to building a vibrant and sustainable local economy that allows for business
development and job creation. The City is also committed to supporting workforce development,
education and vocational training programs that meet the needs of the business community and improve
job opportunities for residents. To achieve these goals and objectives, the City will support legislative
actions and funding that encourage redevelopment and provide the tools and resources needed for
business growth and development and promote regional education and job training programs. The City
will oppose measures that restrict the City’s ability to provide for local economic development or create
disadvantages for businesses at the local and state levels.
ENSURE DEVELOPMENT OF A WELL-PLANNED, BALANCED, AND SUSTAINABLE CITY
The City’s infrastructure has a direct impact on the quality of life in the City for both residents and the
business community. As such, the City is committed to maintaining, improving and developing the City’s
infrastructure including housing, roads, bridges, sidewalks, storm drains, street lights, traffic signals, water
and wastewater systems as well as public transportation systems. The City will support legislation that
provides funding and support to meet the infrastructure needs of the community. The City will oppose
legislation that removes or reduces funding that would impact infrastructure projects or public
transportation. The City will also oppose any legislation or regulations that preempt local zoning or
require development of a particular type.
OPERATE IN A FISCALLY RESPONSIBLE AND BUSINESS-LIKE MANNER
The City is committed to developing a sustainable financial strategy that creates stability and allows the
City to reinvest in operations and infrastructure. In these efforts, the City will support legislation that
secures local government funding sources such as property taxes, sales tax, transient occupancy taxes
and Community Development Block Grants (CDBG). The City will oppose legislation that creates
unfunded mandates and legislation that eliminates or diverts local revenues.
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Necessary Amendments
The title of the ordinance has been amended to reflect that the ordinance is being
approved by the people of the City of San Bernardino rather than the Mayor and City
Council. The reference Development Code Amendment No. 18-02A has been
removed.
The whereas clauses have been amended to reflect events that have occurred since
the ordinance was originally approved by the City Council and to reflect that the
ordinance is being approved by the people of the City of San Bernardino.
The enacting clause has been amended to comply with the language of Elections
Code Section 9224.
Section 2 of the ordinance and Section 5.10.020 regarding Authority have been
amended to reflect the separate authority under which the people of the City of San
Bernardino may consider and approve of ordinances.
Section 5 of the ordinance has been amended to reflect that the people of the City of
San Bernardino are making the land use findings.
Section 6 of the ordinance has been amended to reflect that the people of the City of
San Bernardino are making the findings under CEQA.
Section 7 of the ordinance has been amended to reflect that the effective date is 10
days after the vote is declared by the City Council.
Additional language has been added to the ordinance to handle the issue of
competing measures, total invalidity, and the repeal (if necessary) of previous
measures and laws.
Clarifying Amendments
Intervening Structures Measurements [Section 5.10.250(b)(4)]
• Section 5.10.250 establishes sensitive use buffers around cannabis business
properties to ensure neighborhood compatibility between the commercial
cannabis activity and other uses that are likely to suffer detrimental effects. The
section also preserves quality of life in residential neighborhoods by setting
minimum distances between residential zones and residential uses and cannabis
businesses. The distances established by Section 5.10.250 are generally
measured parcel to parcel, without regard to intervening structures. The City
Council created an exception to this rule that requires staff to consider the
following intervening structures when measuring the distances: freeways; flood
control channels; railroads; and the Santa Ana River. City staff, applying the
exception, measured the parcel to parcel distance without regard to intervening
structures except when the straight line would pass through one of the listed
exceptions. In those cases, City staff measure the shortest distance between the
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two parcels that does not pass through the intervening structure, usually along
public rights-of-way.
• Additionally, for schools, state law allows local government to establish sensitive
use buffer distances of less than 600 feet, but prescribes the method of
measurement as parcel to parcel without regard to intervening structures. The
amended language would clarify that the exception created by Section
5.10.250(b)(4) is solely for measuring sensitive uses under Section 5.10.250(b)
and is not intended to create a lesser distance for state law purposes or
modifying the method of measurement required by state law.
Persons Prohibited from Holding a Permit or Being Employed [Section 5.10.100]
• Section 5.10.100 establishes prohibitions for certain individuals from holding
commercial cannabis business permits or being employed by a commercial
cannabis business. The purpose of the section is to prohibit those that have been
found to have violated local or state cannabis laws, or local, state, or federal tax
laws, from holding a commercial cannabis business permits or being employed at
commercial cannabis businesses. At least one applicant has questioned whether
the language would prohibit a person from applying for or holding a commercial
cannabis business permit without due process. The section was amended prior
to Council’s enactment to require an actual finding that a violation had occurred.
Nonetheless, a property owner has sued the City claiming the section violates its
due process rights, among other things. While the City asserts that the section is
constitutional as drafted and as is currently being applied, a clarifying
amendment to this section to reiterate the original intent of the section that only
those found to have violated such laws are prohibited would likely assist staff
with implementing the section and further assure applicants that their due
process rights are protected.
Additional Amendments
Number of Commercial Cannabis Business Permits [Section 5.10.080]
• Section 5.10.080 establishes the maximum number of commercial cannabis
business permits as a ratio to the City’s population at one permit allowed per
12,500 in population. The City’s current population allows for a total of 17
permits. Under the revised provisions, the City Council would retain the authority
to amend this section to increase the number of commercial cannabis business
permits available if the Council determines the need exists at some future date.
Permit Expiration [Section 5.10.110]
• The term of the permit was changed from one to three years.
Signage [Section 5.10.130(I)(5)]
• Deleted signage provisions contained in Chapter 5.10.
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Change in Location Permits [Section 5.10.200(a)]
• Added language to the end of the first paragraph, “except as provided below.”
Sensitive Use Buffer Distances [Section 5.10.250(b)]
• Section 5.10.250 establishes sensitive use buffers around cannabis business
properties to ensure neighborhood compatibility between the commercial
cannabis activity and other uses that are likely to suffer detrimental effects. The
section also preserves quality of life in residential neighborhoods by setting
minimum distances between residential zones and residential uses and cannabis
businesses. The City Council retained the authority to establish lesser distances
between sensitive uses if necessary to protect public health and safety in the
future.
Addressed typographic errors and made minor, non-substantive language changes
that reflect the intent of the provisions approved by the City Council.
Financial Impact
The proposed changes to the Commercial Cannabis Regulations will not result in a
financial impact.
Conclusion
It is recommended that the Mayor and City Council introduce Ordinance No. MC 1503,
amending Chapter 5.10 of the San Bernardino Municipal Code pertaining to commercial
cannabis activities, for first reading.
Attachments
Attachment 1 Ordinance No. MC 1503
Attachment 2 Redline version of Ordinance No. MC 1503 comparing the existing
regulations to the proposed changes
Ward(s): All
Synopsis of Previous Council Actions:
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ORDINANCE NO. MC-1503
AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING CHAPTER 5.10 OF THE SAN
BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF
COMMERCIAL CANNABIS ACTIVITIES
WHEREAS, the City of San Bernardino, California (“City”) is a municipal
corporation, duly organized under the Charter of the City of San Bernardino and the
Constitution and laws of the State of California; and,
WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance No.
MC-1464 establishing regulations for commercial cannabis activities; and,
WHEREAS, the Mayor and City Council desire to promote a successful business
environment in the City for commercial cannabis businesses and their neighboring non-
cannabis businesses; and,
WHEREAS, the Mayor and City Council desire to protect the quality of life of the
City’s residents by ensuring commercial cannabis businesses do not adversely affect the
health, safety, and welfare of the City; and,
WHEREAS, the Mayor and City Council of the City of San Bernardino have
continued to engage with commercial cannabis businesses and residents during the
implementation of Ordinance No. MC-1464; and,
WHEREAS, based on feedback from the commercial cannabis businesses, residents,
and staff, the Mayor and City Council desire to amend certain portions of San Bernardino
Municipal Code Chapter 5.10 related to the regulation of commercial cannabis activities.
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NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. INCORPORATION OF RECITALS
The foregoing recitals set forth above are true and correct and are a substantive part of
this Ordinance.
SECTION 2. AUTHORITY
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the Charter
of the City of San Bernardino, and State law, the Mayor and City Council of the City of San
Bernardino is authorized to adopt ordinances that protect the health, safety, and welfare of its
residents and businesses.
SECTION 3. ADOPTION; AMENDMENT
This Ordinance amends Ordinance No. MC-1464, as adopted by the Mayor and City
Council on March 7, 2018. It is the intent of the Mayor and City Council that the amendments
to Section 5.10.100 and 5.10.250 from the original language of Ordinance No. MC-1464 be
declaratory of existing law and a restatement of the original terms. The language of those
sections as originally adopted is unambiguous, but, nonetheless, those sections resulted in
controversy concerning the proper interpretation of the statute soon after the ordinance’s
adoption, and, therefore, the Mayor and City Council amend those sections with the intent and
purpose of construing and clarifying the prior language.
Chapter 10, entitled “Commercial Cannabis Activities”, of Title 5 “Business
Registration and Regulations” of the San Bernardino Municipal Code is amended to read as
follows:
Chapter 5.10
COMMERCIAL CANNABIS ACTIVITIES
Sections:
5.10.010 Purpose and Intent
5.10.020 Legal Authority
5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically
Authorized by this Chapter
5.10.040 Compliance with Laws
5.10.050 Definitions
5.10.060 Commercial Cannabis Business Permit Required to Engage in
Commercial Cannabis Business
5.10.070 Cannabis Employee Requirements
5.10.080 Maximum Number and Type of Authorized Commercial Cannabis
Businesses Permitted
5.10.090 Initial Application Procedure
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5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business
Permit or Being Employed by a Commercial Cannabis Business
5.10.110 Expiration of Commercial Cannabis Business Permits
5.10.120 Revocation of Permits
5.10.130 Renewal Applications
5.10.140 Effect of State License Suspension, Revocation, or Termination
5.10.150 Appeals
5.10.160 Written Request for Appeal
5.10.170 Appeal Hearing
5.10.180 Commercial Cannabis Business Permittee Selection Process
5.10.190 Updated Information
5.10.200 Change in Ownership or Location
5.10.210 City Business Registration Certificate
5.10.220 Building Permits and Inspection
5.10.230 Certification from the Community Development Director
5.10.240 Right to Occupy and to Use Property
5.10.250 Location and Design of Cannabis Businesses
5.10.260 Limitations on City’s Liability
5.10.270 Records and Recordkeeping
5.10.280 Security Measures
5.10.290 Restriction on Alcohol & Tobacco Sales
5.10.300 Fees and Charges
5.10.310 Miscellaneous Operating Requirements
5.10.320 Other Operational Requirements
5.10.330 Operating Requirements for Retailer Facilities; Delivery
5.10.340 Operating Requirements for Commercial Cultivation Facilities
5.10.350 Operating Requirements for Testing Labs
5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or
Distribution of Edible and Other Cannabis Products
5.10.370 Promulgation of Regulations, Standards and Other Legal Duties
5.10.380 Community Relations
5.10.390 Fees Deemed Debt to the City of San Bernardino
5.10.400 Permittee Responsible for Violations
5.10.410 Inspection and Enforcement
5.10.420 Compliance with State Regulation
5.10.430 Violations Declared a Public Nuisance
5.10.440 Each Violation a Separate Offense
5.10.450 Criminal Penalties
5.10.460 Remedies Cumulative and Not Exclusive
5.10.010 Purpose and Intent
It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and
Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of
medically-ill persons and provide access to cannabis for medicinal purposes as recommended
by their health care provider(s), and to provide access to adult-use for persons over the age of
21 as authorized by the Control, Tax & Regulate the Adult Use Cannabis Act (“AUMA” or
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“Proposition 64” passed by California voters in 2016), while imposing sensible regulations on
the use of land to protect the City’s residents, neighborhoods, and businesses from
disproportionate and potentially deleterious negative impacts. As such, it is the purpose and
intent of this Chapter to regulate the cultivation, processing, manufacturing, testing, sale,
delivery, distribution and transportation of medicinal and adult-use cannabis and cannabis
products in a responsible manner to protect the health, safety, and welfare of the residents of
the City of San Bernardino and to enforce rules and regulations consistent with State law. It is
the further purpose and intent of this Chapter to require all commercial cannabis operators to
obtain and renew, annually, a permit to operate within the City of San Bernardino. Nothing in
this Chapter is intended to authorize the possession, use, or provision of cannabis for
purposes, or in any manner, that violates state or federal law. The provisions of this Chapter
are in addition to any other permits, licenses and approvals which may be required to conduct
business in the City, and are in addition to any permits, licenses and approval required under
State, City, or other law.
5.10.020 Legal Authority
Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of
MAUCRSA, any subsequent State legislation and/or regulations regarding same, and the City
Charter of the City of San Bernardino, the Mayor and City Council are authorized to adopt
ordinances that establish standards, requirements and regulations for the licensing and
permitting of commercial medicinal and adult-use cannabis activity. Any standards,
requirements, and regulations regarding health and safety, security, reporting and worker
protections established by the State of California, or any of its departments or divisions, shall
be the minimum standards applicable in the City of San Bernardino to all commercial
cannabis activity.
5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically
Authorized by this Chapter
Except as specifically authorized in this Chapter, the commercial cultivation, manufacture,
processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation
(other than as provided under Section 26090(e) of the Business and Professions Code), of
cannabis or cannabis product is expressly prohibited in the City of San Bernardino.
5.10.040 Compliance with Laws
Nothing in this Chapter shall be construed as authorizing any actions that violate federal, State
or local law with respect to the operation of a commercial cannabis business. It shall be the
responsibility of the owners, the operators, and the employees of the commercial cannabis
business to ensure that the commercial cannabis business is, at all times, operating in a
manner compliant with all applicable federal, State and local laws, including for as long as
applicable, the Compassionate Use Act (“Prop. 215”), the Medical Marijuana Program Act
(“MMPA”) and the 2008 Attorney General Guidelines for the Security and Non-Diversion of
Cannabis for Medical Purposes (“AG Guidelines”) (collectively “the Medical Cannabis
Collective Laws”), any subsequently enacted State law or regulatory, licensing, or
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certification requirements, and any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of the commercial cannabis business permit.
5.10.050 Definitions
When used in this Chapter, the following words shall have the meanings ascribed to them as
set forth herein. Any reference to California statutes includes any regulations promulgated
thereunder, and is deemed to include any successor or amended version of the referenced
statute or regulatory provision.
(a) “A-license” means a state license issued under Division 10 of the Business and Professions
Code for cannabis or cannabis products that are intended for adults 21 years of age and over
and who do not possess physician’s recommendations.
(b) “A-licensee” means any person holding a license under Division 10 of the Business and
Professions Code for cannabis or cannabis products that are intended for adults 21 years of
age and over and who do not possess physician’s recommendations.
(c) “Applicant” means a person applying for a permit pursuant to this Chapter.
(d) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves,
and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if
applicable, cultivated using the same pesticides and other agricultural chemicals, and
harvested at the same time.
(e) “Bureau” means the Bureau of Cannabis Control within the Department of Consumer
Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis
Regulation, and the Bureau of Medical Marijuana Regulation.
(f) “Cannabis” means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis
ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified,
extracted from any part of the plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated
resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the
mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the
mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination. For the purpose of this division, “cannabis” does
not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.
(g) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or
more active cannabinoids, thereby increasing the product’s potency. Resin from granular
trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis
concentrate is not considered food, as defined by Section 109935 of the Health and Safety
Code, or drug, as defined by Section 109925 of the Health and Safety Code.
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(h) “Cannabis product” means a product containing cannabis, including, but not limited to,
manufactured cannabis, - intended to be sold for use by cannabis patients in California
pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5
of the California Health and Safety Code (as the same may be amended from time-to-time) or
pursuant to the Adult Use of Cannabis Act. For purposes of this Chapter, “cannabis” does not
include industrial hemp as defined by Section 81000 of the California Food and Agricultural
Code or Section 11018.5 of the California Health and Safety Code.
(i) “Canopy” means the designated area(s) at a premises, except nurseries, that will contain
mature plants at any point in time. (1) Canopy shall be calculated in square feet and measured
using clearly identifiable boundaries of all areas(s) that will contain mature plants at any point
in time, including all of the space(s) within the boundaries; (2) Canopy may be noncontiguous
but each unique area included in the total canopy calculation shall be separated by an
identifiable boundary which includes, but is not limited to: interior walls, shelves, greenhouse
walls, hoop house walls, garden benches, hedgerows, fencing, garden beds or garden plots;
and if mature plants are being cultivated using a shelving system, the surface area of each
level shall be included in the total canopy calculation.
(j) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section
11362.7 of the California Health and Safety Code.
(k) “City” means the City of San Bernardino, a California Charter City.
(l) “Commercial cannabis activity” includes the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, packaging, labeling, transportation,
delivery or sale of cannabis and cannabis products as provided for in this Chapter.
(m) “Commercial cannabis business” means any person which engages in commercial
cannabis activity.
(n) “Commercial cannabis business permit” means a regulatory permit issued by the City of
San Bernardino pursuant to this Chapter to a commercial cannabis business, and is required
before any commercial cannabis activity may be conducted in the City. The initial permit and
annual renewal of a commercial cannabis business permit is made expressly contingent upon
the business’ ongoing compliance with all of the requirements of this Chapter and any
regulations adopted by the City governing the commercial cannabis activity at issue.
(o) “Cultivation” means any activity involving the planting, growing, harvesting, drying,
curing, grading, or trimming of cannabis.
(p) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried,
cured, graded, or trimmed, or a location where any combination of those activities occurs.
(q) “Customer” means a natural person 21 year of age or over or a natural person 18 year of
age or older who possesses a physician’s recommendation.
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(r) “Day care center” has the same meaning as in Section 1596.76 of the Health and Safety
Code.
(s) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer.
“Delivery” also includes the use by a retailer of any technology platform owned and
controlled by the retailer.
(t) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products
from a retailer.
(u) “Distribution” means the procurement, sale, and transport of cannabis and cannabis
products between licensees.
(v) “Distributor” means a person holding a valid commercial cannabis business permit issued
by the City of San Bernardino, and, a valid state license for distribution, required by state law
to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis
products from a licensed manufacturer, for sale to a licensed retailer.
(w) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or
otherwise processed, excluding leaves and stems.
(x) "Employee" means any natural person who is employed or retained as an independent
contractor by any permittee in consideration for direct or indirect monetary wages or profit, or
any natural person who volunteers his or her services for an employer.
(y) “Fire Department” has the same meaning as in Section 2.12.020 of this Code.
(z) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis
product, upon its container.
(aa) “License” means a permit or license issued by the State of California, or one of its
departments or divisions, under Division 10 of the Business and Professions Code to engage
in commercial cannabis activity, including both an A-license and an M-license, as well as a
testing laboratory license.
(ab) “Licensee” means any person holding a state license under Division 10 of the Business
and Professions Code, regardless of whether the license held is an A-license or an M-license,
and includes the holder of a testing laboratory license.
(ac) “Licensing authority” means the state agency responsible for the issuance, renewal, or
reinstatement of the license, or the state agency authorized to take disciplinary action against
the licensee.
(ad) “Live plants” means living cannabis flowers and plants, including seeds, immature plants,
and vegetative stage plants.
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(ae) “M-license” means a state license issued for commercial cannabis activity involving
medicinal cannabis.
(af) “M-licensee” means any person holding a license for commercial cannabis activity
involving medicinal cannabis.
(ag) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare
a cannabis product.
(ah) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the
raw agricultural product has been transformed into a concentrate, extraction or other
manufactured product intended for internal consumption through inhalation or oral ingestion
or for topical application.
(ai) “Manufacturer” means a person issued a valid commercial cannabis business permit by
the City of San Bernardino and, a valid state license as required, that conducts the production,
preparation, propagation, or compounding of cannabis or cannabis products either directly or
indirectly or by extraction methods, or independently by means of chemical synthesis, or by
a combination of extraction and chemical synthesis at a fixed location that packages or
repackages cannabis or cannabis products or labels or container.
(aj) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis
product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of
1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a
medicinal cannabis patient in California who possesses a physician’s recommendation.
(ak) “Nonvolatile solvent” means any solvent used in the extraction process that is not a
volatile solvent. For purposes of this Chapter, a nonvolatile solvent includes carbon dioxide
(CO2) used for extraction and ethanol used for extraction or post-extraction processing.
(al) “Nursery” means a person issued a valid commercial cannabis business permit from the
City of San Bernardino and, a valid state license as required that produces only clones,
immature plants, seeds, and other agricultural products used specifically, for the propagation
and cultivation of cannabis.
(am) “Operation” means any act for which a commercial cannabis business permit is required
under the provisions of this Chapter, or any commercial transfer of cannabis or cannabis
products.
(an) “Owner” means any of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the person
applying for a license or a licensee, unless the interest is solely a security, lien, or
encumbrance.
(2) The Executive Director of a nonprofit or other entity.
(3) A member of the board of directors of a nonprofit.
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(4) An individual who will be participating in the direction, control, or management
of the person applying for a commercial cannabis business permit or who has a financial
interest in the commercial cannabis business other than a fixed lease of real property
(ao) “Package” means any container or receptacle used for holding cannabis or cannabis
products.
(ap) “Patient” or “qualified patient” shall have the same definition as California Health and
Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is
entitled to the protections of California Health & Safety Code Section 11362.5.
(aq) “Permit” means a commercial cannabis business permit issued by the City of San
Bernardino under this Chapter.
(ar) “Permittee” means any person holding a permit under this Chapter.
(as) “Person” includes any individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any
other group or combination acting as a unit, and the plural as well as the singular.
(at) “Physician’s recommendation” means a recommendation by a physician and surgeon that
a patient use cannabis provided in accordance with the Compassionate Use Act of 1996
(Proposition 215), found at Section 11362.5 of the Health and Safety Code.
(au) “Premises” means the designated structure or structures and land specified in the
application that is owned, leased, or otherwise held under the control of the applicant or
permittee where the commercial cannabis activity will be or is conducted. The premises shall
be a contiguous area and shall only be occupied by one permittee.
(av) “Purchaser” means the customer who is engaged in a transaction with a permittee for
purposes of obtaining cannabis or cannabis products.
(aw) “Retailer” means a commercial cannabis business that offers cannabis, cannabis
products, or devices for the use of cannabis or cannabis products, either individually or in any
combination, for retail sale, including an establishment (whether fixed or mobile) that
delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail
sale, and where the operator holds a valid commercial cannabis business permit from the City
of San Bernardino authorizing the operation of a retailer, and a valid state license as required
by state law to operate a retailer.
(ax) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title
to cannabis or cannabis products are transferred from one person to another, and includes the
delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the
same and soliciting or receiving an order for the same, but does not include the return by the
original purchaser to the location where the product was purchased.
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(ay) “Testing laboratory” means a laboratory, facility, or entity in the state that offers or
performs tests of cannabis or cannabis products and that is both of the following:
(1) Accredited by an accrediting body that is independent from all other persons
involved in commercial cannabis activity in the State; and
(2) Holds a valid commercial cannabis business permit from the City and a state
license as required.
(az) “Transport” means the transfer of cannabis products from the permitted business location
of one licensee to the permitted business location of another licensee, for the purposes of
conducting commercial cannabis activity.
(ba) “Youth center” has the same meaning as in Section 11353.1 of the Health and Safety
Code.
(bb) “Volatile solvent” means any solvent that is or produces a flammable gas or vapor that,
when present in the air in sufficient quantities, will create explosive or ignitable mixtures.
Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.
5.10.060 Commercial Cannabis Business Permit Required to Engage in
Commercial Cannabis Business
(a) No person may engage in any commercial cannabis business or in any commercial
cannabis activity within the City of San Bernardino including cultivation, manufacture,
processing, laboratory testing, transporting, dispensing, special events, distribution, or sale of
cannabis or a cannabis product unless the person (1) has a valid commercial cannabis business
permit from the City of San Bernardino; (2) has a valid State Seller’s Permit; and (3) is
currently in compliance with all applicable state and local laws and regulations pertaining to
the commercial cannabis business and the commercial cannabis activities, including the duty
to obtain a City business registration certificate and any required state licenses. Engaging in a
commercial cannabis business or in any commercial cannabis activity includes establishing,
owning, managing, conducting, leasing to, operating, causing, permitting, aiding, abetting,
suffering or concealing the fact of such an act.
(b) Until Health & Safety Code Section 11362.775, subdivision (a), is repealed, the City
intends that person’s eligible to operate collectives or cooperatives under that subdivision
shall be eligible to apply for a City conditional permit to conduct commercial cannabis
activities, but only to the degree those activities are authorized under state law for collectives
and cooperatives. When the Health & Safety Code Section 11362.775, subdivision (a), is
repealed, or as soon as collectives and cooperatives are no longer permitted to engage in
commercial cannabis activity without a state license under state law, any conditional permit
issued to a commercial cannabis business that has not obtained a state license for the
commercial cannabis activities shall expire and shall be null and void. Such businesses shall
no longer be authorized to engage in any commercial cannabis activities in the City until they
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obtain both a City issued commercial cannabis business permit and a state license for that
commercial cannabis activity.
(c) No temporary events shall be permitted at a state designated fair, as that term is
defined in Business and Professions Code Section 19418, subdivision (a), unless the state
designated fair has complied with the requirements of subsection (a) above and the temporary
event is authorized pursuant to a Development Agreement with the City of San Bernardino
approved in accordance with Chapter 19.40 of this Code. Temporary events are prohibited
Citywide except at a state designated fair.
5.10.070 Cannabis Employee Requirements
(a) Any person who is an employee within a commercial cannabis business must be
legally authorized to do so under applicable state law.
(b) A commercial cannabis business shall keep the following records of each of its
employees on file at the premises of the business:
(1) Name, address, and phone number of the employee;
(2) Age and verification of employee. A copy of a birth certificate, driver’s
license, government issued identification card, passport or other proof that the
applicant is at least twenty-one (21) years of age must be on file with the
business;
(3) A list of any crimes enumerated in California Business and Professions Code
Section 26057(b)(4) for which the employee has been convicted;
(4) Name, address, and contact person for all previous employers of the employee
for the last ten (10) years, including, but not limited to, all employers from
which the applicant was fired, resigned, or asked to leave and the reasons for
such dismissal or firing;
(5) The fingerprints and a recent photograph of the employee;
(6) If applicable, verification that the employee is a qualified patient or primary
caregiver;
(d) The permittee shall provide to the Chief of Police or his/her designee, upon request,
the records described above in subsection (b). The Chief of Police of his/her designee may
review the records and may conduct a background check to determine whether the employee
has been convicted of a crime that shows the employee:
(1) Is dishonest; or
(2) Has committed a felony or misdemeanor involving fraud, deceit,
embezzlement; or
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(3) Was convicted of a violent felony, a crime of moral turpitude; or
(4) The illegal use, possession, transportation, distribution or similar activities
related to controlled substances, as defined in the Federal Controlled
Substances Act, except for cannabis related offenses for which the conviction
occurred after the passage of the Compassionate Use Act of 1996.
5.10.080 Maximum Number and Type of Authorized Commercial Cannabis
Businesses Permitted
The number of each type of commercial cannabis business that shall be permitted to operate in
the City shall be established by Resolution of the Mayor and City Council but at no time shall
the total number of permits for all license types exceed one (1) permit per twelve thousand
five hundred (12,500) residents of the City as determined by the most recent Population
Estimates for Cities, Counties and the State Report generated by the State Department of
Finance for the most recent year, unless the Mayor and City Council adopt an ordinance
allowing for a greater number of total permits.
(a) This Chapter is only intended to create a maximum number of commercial cannabis
businesses that may be issued permits to operate in the City. Nothing in this Chapter creates a
mandate that the Mayor and City Council must issue any or all of the commercial cannabis
business permits if it is determined that the applicants do not meet the standards which are
established in the application requirements or further amendments to the application process
or that the Mayor and City Council, upon further deliberation, determines that the issuance of
any or all commercial cannabis business permits will impact the public safety, welfare or
other policy concerns which may be detrimental in the issuance of these permits.
(b) Each year following the Mayor and City Council’s initial award of permits, if any, or
at any time in the Mayor and City Council’s discretion, the Mayor and City Council may
reassess the number of commercial cannabis business permits which are authorized for
issuance to each business type. The Mayor and City Council, in its discretion, may determine
by Resolution that the number of each type of commercial cannabis permits should be
reduced, stay the same, or be expanded.
5.10.090 Initial Application Procedure
(a) The Mayor and City Council shall adopt by Resolution the procedures to govern the
application process, and the manner in which the decision will ultimately be made regarding
the issuance of any commercial cannabis business permit(s), which Resolution shall include or
require the City Manager to provide detailed objective review criteria to be evaluated on a
point system or equivalent quantitative evaluation scale tied to each set of review criteria
(“Review Criteria”), which shall require any applicable environmental review pursuant to
Division 13 (commencing with Section 21000) of the Public Resources Code as contemplated
by Business and Professions Code Section 26055, subdivision (h). The Resolution shall
authorize the City Manager or his/her designee(s) to prepare the necessary forms, adopt any
necessary rules to the application, regulations and processes, solicit applications, conduct
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initial evaluations of the applicants, and to ultimately provide a final recommendation to the
Mayor and City Council.
(b) At the time of filing, each applicant shall pay an application fee established by
Resolution of the Mayor and City Council, to cover all costs incurred by the City in the
application process.
(c) After the initial review, ranking, and scoring under the Review Criteria, the City
Manager or his/her designee(s) will make a recommendation to the Mayor and City Council,
and the Mayor and City Council shall make a final determination in accordance with Section
5.10.180.
(d) THE CITY 'S RESERVATION OF RIGHTS:
The City reserves the right to reject any or all initial applications. Prior to permit issuance, the
City may also modify, postpone, or cancel any request for applications, or the entire program
under this Chapter, at any time without liability, obligation, or commitment to any party, firm,
or organization, to the extent permitted by law. Persons submitting applications assume the
risk that all or any part of the program, or any particular category of permit potentially
authorized under this Chapter, may be cancelled at any time prior to permit issuance. The
City further reserves the right to request and obtain additional information from any candidate
submitting an application. In addition to any other justification provided, including a failure to
comply with other requirements in this Chapter, an application RISKS BEING REJECTED
for any of the following reasons:
(1) The application was received after the designated time and date;
(2) The application did not contain the required elements, exhibits, nor organized
in the required format; or
(3) The application was not considered fully responsive to the request for permit
application.
5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business
Permit or Being Employed by a Commercial Cannabis Business
(a) No person may hold a commercial cannabis business permit, or be employed by a
commercial cannabis business, in the City of San Bernardino, if any of the following
conditions exist:
(1) The applicant, permittee, or employee has been denied a commercial cannabis
business permit, or similar license, or has had such a permit or license
suspended or revoked by any city, county, city and county or any state
cannabis licensing authority;
(2) The applicant, permittee, employee, or the owner of the property upon which
the proposed commercial cannabis activity is to occur, was either convicted of,
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pled guilty or nolo contendere to, or has been found by the City’s Hearing
Officer pursuant to Chapters 9.92 or 9.93 to be responsible for, conducting
commercial cannabis activity in non-compliance with Title 19, other City of
San Bernardino ordinances, codes and requirements, or state law, and they
failed to discontinue operating in a timely manner; or
(3) The applicant, permittee, or employee, or the owner of the property upon
which the proposed commercial cannabis activity is to occur, was found by the
appropriate taxing agency to have been in non-compliance with federal, state
or local tax laws or failed to report income from commercial cannabis activities
to federal, state, or local government in violation of law.
5.10.110 Expiration of Commercial Cannabis Business Permits
Each commercial cannabis business permit issued pursuant to this Chapter shall expire three
(3) years after the date of its issuance. Commercial cannabis business permits may be renewed
as provided in this Chapter.
5.10.120 Revocation of Permits
Commercial cannabis business permits may be suspended or revoked by the City Manager or
his/her designee for any violation of any law and/or any rule, regulation and/or standard
adopted pursuant to this Chapter.
5.10.130 Renewal Applications
(a) An application for renewal of a commercial cannabis business permit shall be filed at
least sixty (60) calendar days prior to the expiration date of the current permit.
(b) The renewal application shall contain all the information required for new
applications.
(c) The applicant shall pay a fee in an amount to be set by Resolution of the Mayor and
City Council to cover the costs of processing the renewal permit application, together with
any costs incurred by the City to administer the program created under this Chapter.
(d) An application for renewal of a commercial cannabis business permit shall be rejected
if any of the following exists:
(1) The application for renewal is filed less than sixty (60) days before the
expiration of the commercial cannabis business permit.
(2) The commercial cannabis business permit is suspended or revoked at the time
of the application.
(3) The commercial cannabis business has not been in regular and continuous
operation in the four (4) months prior to the renewal application.
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(4) The commercial cannabis business has failed to conform to the requirements of
this Chapter, or of any regulations adopted pursuant to this Chapter.
(5) The permittee fails or is unable to renew its State of California license.
(6) If the City has determined, based on substantial evidence, that the permittee or
applicant is in violation of the requirements of this Chapter, of the San
Bernardino Municipal Code, or of the state rules and regulations, and the City
or state has determined that the violation is grounds for termination or
revocation of the commercial cannabis business permit.
(e) The Community Development Director or his/her designee(s) is authorized to make all
decisions concerning the issuance of a renewal permit. In making the decision, the
Community Development Director or his/her designee(s) is authorized to impose additional
conditions to a renewal permit, if it is determined to be necessary to ensure compliance with
state or local laws and regulations or to preserve the public health, safety or welfare. Appeals
from the decision of the Community Development Director or his/her designee(s) shall be
handled pursuant to Sections 5.10.150, 5.10.160, and 5.10.170.
(f) If a renewal application is rejected, a person may file a new application pursuant to
this Chapter no sooner than one (1) year from the date of the rejection.
5.10.140 Effect of State License Suspension, Revocation, or Termination
Suspension of a license issued by the State of California, or by any of its departments or
divisions, shall immediately suspend the ability of a commercial cannabis business to operate
within the City, until the State of California, or its respective department or division, reinstates
or reissues the State license. Should the State of California, or any of its departments or
divisions, revoke or terminate the license of a commercial cannabis business, such revocation
or termination shall also revoke or terminate the ability of a commercial cannabis business to
operate within the City of San Bernardino.
5.10.150 Appeals
Unless specifically provided elsewhere to the contrary, any determination of the Chief of
Police or Community Development Director, or the designees of either of them, may only be
appealed to the City Manager, which decision shall be final. The City Manager may delegate
the appeal to the City’s Administrative Law Officer (“Hearing Officer”) appointed in
conformity with Chapter 9.92 of this Code, in which case, the decision of the Hearing Officer
shall be final. All decisions of the Mayor and City Council, City Manager or Hearing Officer
under this Chapter shall be final. All appeals shall be conducted as prescribed in this Section,
Section 5.10.160 and Section 5.10.170.
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5.10.160 Written Request for Appeal
(a) Within ten (10) calendar days after the date of the determination, an aggrieved party
may appeal such determination by filing a written appeal with the City Clerk setting forth the
reasons why the determination was not proper. If no appeal of a determination is made within
ten (10) days of the date of the determination, the determination shall be final.
(b) At the time of filing the appellant shall pay the designated appeal fee, established by
Resolution of the Mayor and City Council from time to time.
5.10.170 Appeal Hearing
(a) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing
before the City Manager, or if the appeal has been delegated to the Hearing Officer, before the
Hearing Officer. The City Manager or Hearing Officer shall hear the matter de novo, and shall
conduct the hearing pursuant to the procedures set forth by the City.
(b) The appeal shall be held within a reasonable time after the filing the appeal, but in no
event later than ninety (90) calendar days from the date of such filing. The City shall notify
the appellant of the time and location at least ten (10) calendar days prior to the date of the
hearing.
(c) At the hearing, the appellant may present any information they deem relevant to the
determination appealed. The formal rules of evidence and procedure applicable in a court of
law shall not apply to the hearing.
(d) At the conclusion of the hearing the City Manager or Hearing Officer may affirm,
reverse or modify the decision appealed.
5.10.180 Commercial Cannabis Business Permittee Selection Process
(a) The Mayor and City Council shall adopt by Resolution, a procedure guideline and
Review Criteria by which the top applicants in each category of each commercial cannabis
business will be presented to the Mayor and City Council for a final determination at a public
hearing.
(b) The top final applicants for each category may be invited to attend the Mayor and City
Council meeting, only if requested by the City Manager or his/her designee where they may
be expected to make a public presentation introducing their team and providing an overview
of their proposal. In order to provide adequate time, presentations may be divided over more
than one meeting over multiple days as determined to be necessary.
(c) At least ten (10) calendar days prior to the hearing, notice of the hearing shall be sent
to all property owners located within six hundred (600) feet of the proposed business locations
of each of the finalists to be considered by the Mayor and City Council.
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(d) The Mayor and City Council shall either deny or approve the final candidates and shall
select the top candidates in each category of the commercial cannabis businesses. The Mayor
and City Council’s decision as to the selection of the prevailing candidates shall be final.
(e) Official issuance of the commercial cannabis business permit(s), however, is
conditioned upon the prevailing applicant(s) obtaining all required land use approvals.
Following the Mayor and City Council’s selection, the prevailing applicant(s) shall apply to
the City’s Community Development Department to obtain any required land use approvals or
entitlements for the permittee’s location, if any. Land use approvals shall include compliance
with all applicable provisions of CEQA. The City Manager or his/her designee(s) shall
formally issue the commercial cannabis business permit(s) once the Community Development
Director or his/her designee(s) affirms that all of the required land use approvals have been
obtained.
(f) Issuance of a commercial cannabis business permit does not create a land use
entitlement or serve as a building permit. The commercial cannabis business permit shall only
be for a term of three (3) years, and shall expire at the end of the three (3) year period unless it
is renewed as provided herein. Furthermore, no permittee may begin operations,
notwithstanding the issuance of a permit, unless all of the state and local laws and regulations,
including but not limited to the requirements of this Chapter, applicable building permits, and
conditions of the commercial cannabis business permit, have been complied with. Until a state
license is available and obtained by the permittee, this means compliance with all provisions
of the Medical Cannabis Collective Laws as set forth at Section 5.10.060.
(g) Notwithstanding anything in this Chapter to the contrary, the Mayor and City Council
reserves the right to reject any or all applications if it determines it would be in the best
interest of the City, taking into account any health, safety and welfare impacts on the
community. Applicants shall have no right to a commercial cannabis business permit until a
permit is actually issued, and then only for the duration of the permit term. Each applicant
assumes the risk that, at any time prior to the issuance of a permit, the Mayor and City
Council may terminate or delay the program created under this Chapter or otherwise revise,
amend, or repeal this Chapter.
(h) If an application is denied, a new application may not be filed for one (1) year from
the date of the denial.
(i) Each person granted a commercial cannabis business permit shall be required to pay
the permit fee established by resolution of the Mayor and City Council, to cover the costs of
administering the commercial cannabis business permit program created in this Chapter.
5.10.190 Updated Information
Within fifteen (15) calendar days of any other change in the information provided in the
application form or any change in status of compliance with the provisions of this Chapter,
including any change in the commercial cannabis business location or ownership or
management members, the applicant shall file an updated application form with the City
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Manager or his/her designee(s) for review along with an application amendment fee, as set
forth in section 5.10.090 and 5.10.130.
5.10.200 Change in Ownership or Location
(a) The person granted a commercial cannabis business permit shall not transfer
ownership or control of the permit to another person unless and until the transferee obtains an
amendment to the permit from the City Manager or his/her designee stating that the transferee
is now the permittee. Such an amendment may be obtained only if the transferee files an
application with the City Manager or his/her designee in accordance with all provisions of this
Chapter (as though the transferee were applying for an original commercial cannabis business
permit) accompanied by a transfer fee in an amount set by Resolution of the Mayor and City
Council (or if not set, shall be the same amount as the application fee), and the City Manager
or his/her designee determines, after hearing, in accordance with this Chapter that the
transferee passed the background check required for permittees and meets all other
requirements of this Chapter. No transfer of ownership may occur within five (5) years of the
date the commercial cannabis business permit is originally issued, except as provided below.
(b) Commercial cannabis business permits issued through the grant of a transfer by the
City Manager or his/her designee shall be valid for a period of one year beginning on the day
the City Manager or his/her designee approves the transfer of the permit. Before the
transferee’s permit expires, the transferee shall apply for a renewal permit in the manner
required by this Chapter.
(c) Changes in ownership of a permittee’s business structure or a substantial change in the
ownership of a permittee business entity (changes that result in a change of more than 51% of
the original ownership), must be approved by the City Manager or his/her designee through
the transfer process contained in subsection (a). Failure to comply with this provision is
grounds for permit revocation.
(d) A permittee may change the form of business entity without applying to the City
Manager or his/her designee for a transfer of permit, provided that either:
(1) The membership of the new business entity is substantially similar to the
original permit holder business entity (at least 51% of the membership is
identical), or
(2) If the original permittee is an unincorporated association, mutual or public
benefit corporation, agricultural or consumer cooperative corporation and
subsequently transitions to or forms a new business entity as allowed under the
MAUCRSA and to comply with Section 5.10.060, subdivision (b), provided
that the Board of Directors (or in the case of an unincorporated association, the
individual(s) listed on the City permit application) of the original permittee
entity are the same as the new business entity.
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Although a transfer is not required in these two circumstances, the permit holder is required to
notify the City Manager in writing of the change within ten (10) calendar days of the change.
Failure to comply with this provision is grounds for permit revocation.
(e) No commercial cannabis business permit may be transferred when the City Manager
or his/her designee has notified the permittee that the permit has been or may be suspended or
revoked.
(f) Any attempt to transfer a commercial cannabis business permit either directly or
indirectly in violation of this section is hereby declared void, and such a purported transfer
shall be deemed a ground for revocation of the permit.
(g) The location specified in the commercial cannabis business permit may not change
without an amendment to the permit, processed in the same manner as an initial permit
pursuant to the process and fees set forth in Section 5.10.090.
5.10.210 City Business Registration Certificate
Prior to commencing operations, and at all times thereafter, a commercial cannabis business
shall maintain a valid City of San Bernardino business registration certificate.
5.10.220 Building Permits and Inspection
Prior to commencing operations, and at all times thereafter, a commercial cannabis business
shall be subject to a mandatory building inspection, and must obtain all required permits and
approvals which would otherwise be required for any business of the same size and intensity
operating in that zone. This includes but is not limited to obtaining any required building
permit(s), Fire Department approvals, Health Department approvals and other zoning and land
use permit(s) and approvals. No modifications to the structure of the premises shall be made
without required approvals listed above.
5.10.230 Certification from the Community Development Director
Prior to commencing operations, a commercial cannabis business must obtain a certification
from the Community Development Director or his/her designee(s) certifying that the business
is located on a site that meets all of the requirements of Title 19 of this Code.
5.10.240 Right to Occupy and to Use Property
As a condition precedent to the City’s issuance of a commercial cannabis business permit
pursuant to this Chapter, any person intending to open and to operate a commercial cannabis
business shall provide sufficient evidence, which sufficiency shall be determined in the
reasonable discretion of the Mayor and City Council, of the legal right to occupy and to use
the proposed location for the proposed commercial cannabis activity. In the event the
proposed location will be leased from another person, the applicant shall be required to
provide a signed and notarized statement from all owners of the property, acknowledging that
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the property owners have read this Chapter and consent to the operation of the commercial
cannabis business on the owner’s property.
5.10.250 Location and Design of Cannabis Businesses
Commercial cannabis businesses are permitted to engage in commercial cannabis activities
subject to the following zoning and locational requirements:
(a) The commercial cannabis business must be located on property zoned CG
(Commercial General), CG -2 (Commercial General-2), CG-3 (Commercial General -3), CR-
2 (Commercial Regional-Downtown), CR-3 (Commercial-Tri-City-Club), CCS-1 (Central
City South), CCS-2 (Central City), CH (Commercial Heavy), IL (Industrial Light), IH
(Industrial Heavy), OIP (Office Industrial Park), or as such successor zones as may be created
by the Mayor and City Council from time to time, and must meet all of the requirements for
development in these zones; and
(b) The property on which the cannabis business is located must also meet all of the
distance requirements listed below in subsections (b)(1)-(3), unless the Mayor and City
Council adopt an ordinance allowing for a lesser distance. All distances shall be the horizontal
distance measured in a straight line from exterior parcel line to exterior parcel line without
regard to intervening structures, except as listed in subsection (b)(4).
(1) The parcel shall be no closer than six hundred (600) feet of any residentially
zoned or residentially used parcel in the City, the City’s sphere of influence, a
neighboring incorporated city, or unincorporated county.
(2) The parcel shall be no closer than six hundred (600) feet from any parcel in the
City, the City’s sphere of influence, a neighboring incorporated city, or
unincorporated county containing any of the following:
A. A school providing instruction in kindergarten or any grades 1 through
12, (whether public, private, or charter, including pre-school,
transitional kindergarten, and K-12) that is in existence at the time the
permit is issued;
B. A commercial daycare center licensed by the City, another city, or
County that is in existence at the time the permit is issued;
C. A youth center that is in existence at the time the permit is issued; or
D. A park that is in existence at the time the permit is issued.
(3) The City shall consider the proximity of the proposed commercial cannabis
business to religious facilities and libraries in existence at the time the permit is
granted when determining whether the issue the permit and any conditions
thereto.
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(4) For the purposes of this subsection (b), the distance measurement shall be
without regard to intervening structures, with the exception of the following, in
which case the distance measurement shall be the shortest path of travel around
the listed intervening structures:
A. Freeways;
B. Flood control channels;
C. Railroads;
D. The Santa Ana River.
(c) Each proposed cannabis business project shall:
(1) Conform with the City’s general plan, any applicable specific plans, master plans,
and design requirements;
(2) Comply with all applicable zoning and related development standards;
(3) Be constructed in a manner that minimizes odors to surrounding uses, and
promotes quality design and construction, and consistency with the surrounding
properties;
(4) Be adequate in size and shape to accommodate the yards, walls, fences, parking
and loading facilities, landscaping and all items required for the development;
(5) Be served by highways adequate in width and improved as necessary to carry the
kind and quantity of traffic such use will generate; and
(6) Be provided with adequate electricity, sewage, disposal, water, fire protection and
storm drain facilities for the intended purpose.
5.10.260 Limitations on City’s Liability
To the fullest extent permitted by law, the City of San Bernardino shall not assume any
liability whatsoever with respect to having issued a commercial cannabis business permit
pursuant to this Chapter or otherwise approving the operation of any commercial cannabis
business. As a condition to the approval of any commercial cannabis business permit, the
applicant shall be required to meet all of the following conditions before they can receive the
commercial cannabis business permit:
(a) They must execute an agreement, in a form approved by the City Attorney, agreeing to
indemnify, defend (at applicant’s sole cost and expense), and hold the City of San Bernardino,
and its elected officials, officers, employees, representatives, and agents, harmless, from any
and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in
any way related to, the City’s issuance of the commercial cannabis business permit, the City’s
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decision to approve the operation of the commercial cannabis business or activity, to the
process used by the City in making its decision, or the alleged violation of any federal, state
or local laws by the commercial cannabis business or any of its officers, employees or agents.
(b) Maintain insurance at coverage limits, and with conditions thereon determined
necessary and appropriate from time to time by the City Manager or his/her designee.
(c) Reimburse the City of San Bernardino for all costs and expenses, including but not
limited to legal fees and costs and court costs, which the City of San Bernardino may be
required to pay as a result of any legal challenge related to the City’s approval of the
applicant’s commercial cannabis business permit, or related to the City’s approval of a
commercial cannabis activity. The City of San Bernardino may, at its sole discretion,
participate at its own expense in the defense of any such action, but such participation shall
not relieve any of the obligations imposed hereunder.
5.10.270 Records and Recordkeeping
(a) Each person granted a commercial cannabis business shall maintain accurate books
and records in an electronic format, detailing all of the revenues and expenses of the business,
and all of its assets and liabilities. On no less than an annual basis (at or before the time of the
renewal of a commercial cannabis business permit issued pursuant to this Chapter), or at any
time upon reasonable request of the City Manager or his/her designee, each commercial
cannabis business shall file a sworn statement detailing the number of sales by the commercial
cannabis business during the previous twelve-month period (or shorter period based upon the
timing of the request), provided on a per-month basis. The statement shall also include gross
sales for each month, and all applicable taxes paid or due to be paid, including, but not limited
to, employee withholdings. On an annual basis, each permittee shall submit to the City a
financial audit of the business’s operations conducted by an independent certified public
accountant. At the request of the City Manager, or his/her designee, the each permittee shall
provide copies of the last three (3) years of their local, state and federal tax returns so that the
City may verify the information provided above. Each permittee shall be subject to a
regulatory compliance review and financial audit as determined by the City Manager or
his/her designee(s).
(b) Each person granted a commercial cannabis business shall maintain a current register
of the names and the contact information (including the name, address, and telephone number)
of anyone owning or holding an interest in the commercial cannabis business, and separately
of all the officers, managers, employees, and agents currently employed or otherwise engaged
by the commercial cannabis business. The register required by this paragraph shall be
provided to the City Manager or his/her designee(s) upon a reasonable request.
(c) Prior to state licensing, each commercial cannabis business shall maintain a record of
all persons, patients, collectives and primary caregivers served by the commercial cannabis
business, for a period of no less than four (4) years. Once a state license is obtained, the
commercial cannabis business must maintain such records only to the extent permitted or
required by the MAUCRSA.
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(d) All commercial cannabis businesses shall maintain an inventory control and reporting
system that accurately documents the present location, amounts, and descriptions of all
cannabis and cannabis products for all stages of the growing and production or manufacturing,
laboratory testing and distribution processes until purchase as set forth MAUCRSA.
Additionally, all commercial cannabis businesses shall maintain records that identify the
source of all products (company name, location, license numbers etc.).
(e) Subject to any restrictions under the Health Insurance Portability and Accountability
Act (HIPAA) regulations, each commercial cannabis business shall allow the City of San
Bernardino officials to have access to the business’s books, records, accounts, together with
any other data or documents relevant to its permitted commercial cannabis activities, for the
purpose of conducting an audit or examination. Books, records, accounts, and any and all
relevant data or documents will be produced no later than twenty-four (24) hours after receipt
of the City’s request, unless otherwise stipulated by the City. The City may require the
materials to be submitted in an electronic format that is compatible with the City’s software
and hardware.
5.10.280 Security Measures
(a) A commercial cannabis business shall implement sufficient security measures to deter
and prevent the unauthorized entrance into areas containing cannabis or cannabis products,
and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis
business. Except as may otherwise be determined by the City Manager or his/her designee(s),
these security measures shall include, but shall not be limited to, all of the following:
(1) Preventing individuals from remaining on the premises of the commercial
cannabis business if they are not engaging in an activity directly related to the
permitted operations of the commercial cannabis business.
(2) Establishing limited access areas accessible only to authorized commercial
cannabis business personnel.
(3) Except for live growing plants which are being cultivated at a cultivation
facility, all cannabis and cannabis products shall be stored in a secured and
locked room, safe, or vault. All cannabis and cannabis products, including live
plants that are being cultivated, shall be kept in a manner as to prevent
diversion, theft, and loss,
(4) Installing 24-hour security surveillance cameras of at least HD-quality to
monitor all entrances and exits to and from the premises, all interior spaces
within the commercial cannabis business which are open and accessible to the
public, all interior spaces where cannabis, cash or currency, is being stored for
any period of time on a regular basis and all interior spaces where diversion of
cannabis could reasonably occur. Cameras shall clearly show each point of sale
location, register with a time/date stamp. The commercial cannabis business
shall be responsible for ensuring that the security surveillance camera’s footage
is remotely accessible by the City Manager or his/her designee(s), and that it is
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compatible with the City’s software and hardware. In addition, remote and
real-time, live access to the video footage from the cameras shall be provided
to the City Manager or his/her designee(s). Video recordings shall be
maintained for a minimum of one hundred twenty (120) days, and shall be
made available to the City Manager or his/her designee(s) upon request. Video
shall be of sufficient quality for effective prosecution of any crime found to
have occurred on the site of the commercial cannabis business.
(5) Sensors shall be installed to detect entry and exit from all secure areas.
(6) Panic buttons shall be installed in all commercial cannabis businesses.
(7) Having a professionally installed, maintained, and monitored alarm system.
The owner and operator shall be subject to the City’s security alarm systems
requirements of Chapter 8.81 of this Code.
(8) Any bars installed on the windows or the doors of the commercial cannabis
business shall be installed only on the interior of the building as approved by
the Community Development Department and Fire Department.
(9) Security personnel shall be on-site 24 hours a day or alternative security as
authorized by the City Manager or his/her designee(s). Security personnel must
be licensed by the State of California Bureau of Security and Investigative
Services personnel and shall be subject to the prior review and approval of the
City Manager or his/her designee(s), with such approval not to be unreasonably
withheld.
(10) Each commercial cannabis business shall have the capability to remain secure
during a power outage and shall ensure that all access doors are not solely
controlled by an electronic access panel to ensure that locks are not released
during a power outage.
(b) Each commercial cannabis business shall identify a designated security
representative/liaison to the City of San Bernardino, who shall be reasonably available to meet
with the City Manager or his/her designee(s) regarding any security related measures or and
operational issues. The commercial cannabis business shall notify the City Manager or his/her
designee within twenty four (24) hours of a change in designated security
representative/liaison.
(c) As part of the application and permitting process each commercial cannabis business
shall have a storage and transportation plan, which describes in detail the procedures for
safely and securely storing and transporting all cannabis, cannabis products, and any currency.
(d) The commercial cannabis business shall cooperate with the City whenever the City
Manager or his/her designee(s) makes a request, upon reasonable notice to the commercial
cannabis business, to inspect or audit the effectiveness of any security plan or of any other
requirement of this Chapter.
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(e) A commercial cannabis business shall notify the City Manager or his/her designee(s)
within twenty-four (24) hours after discovering any of the following:
(1) Significant discrepancies identified during inventory. The level of significance
shall be determined by the regulations promulgated by the City Manager or
his/her designee(s).
(2) Diversion, theft, loss, or any criminal activity involving the commercial
cannabis business or any agent or employee of the commercial cannabis
business.
(3) The loss or unauthorized alteration of records related to cannabis, registering
qualifying patients, primary caregivers, or employees or agents of the
commercial cannabis business.
(4) Any other breach of security.
5.10.290 Restriction on Alcohol & Tobacco Sales
(a) No person shall cause or permit the sale, dispensing, or consumption of alcoholic
beverages to any person, including minors, on or about the property occupied by the
commercial cannabis business.
(b) No person shall cause or permit the sale of tobacco products to any person, including
minors, on or about the property occupied by the commercial cannabis business.
5.10.300 Fees and Charges
(a) No person may commence or continue any commercial cannabis activity in the City,
without timely paying in full all fees and charges required for the operation of a commercial
cannabis activity. Fees and charges associated with the operation of a commercial cannabis
activity shall be established by Resolution of the Mayor and City Council which may be
amended from time to time. Such fees and charges may include, but are not limited to, a
regulatory fee imposed for the reasonable regulatory costs to the City for issuing licenses and
permits, performing investigations, inspections, and audits, and the administrative and
criminal enforcement and adjudication thereof.
(b) All commercial cannabis businesses authorized to operate under this Chapter shall pay
all sales, use, business, employment and other applicable taxes, and all license, registration,
and other fees required under federal, state and local law. Each commercial cannabis business
shall cooperate with City with respect to any reasonable request to audit the commercial
cannabis business’ books and records for the purpose of verifying compliance with this
section, including but not limited to a verification of the amount of taxes required to be paid
during any period.
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5.10.310 Miscellaneous Operating Requirements
(a) Commercial cannabis businesses may operate only during the hours specified in the
commercial cannabis business permit issued by the City.
(b) On-site consumption of cannabis is prohibited at all times by all individuals on the
property.
(c) No cannabis or cannabis products or graphics depicting cannabis or cannabis products
shall be visible from the exterior of any property issued a commercial cannabis business
permit, or on any of the vehicles owned or used as part of the commercial cannabis business.
No outdoor storage of cannabis or cannabis products is permitted at any time.
(d) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis
business shall have in place a point-of-sale or management inventory tracking system to track
and report on all aspects of the commercial cannabis business including, but not limited to,
such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), time
and date of each sale and other information which may be deemed necessary by the City. The
commercial cannabis business shall ensure that such information is compatible with the City’s
record-keeping systems. In addition, the system must have the capability to produce historical
transactional data for review. Furthermore, any system selected must be approved and
authorized by the City Manager or his/her designee(s) prior to being used by the permittee.
(e) All cannabis and cannabis products sold, distributed or manufactured shall be
cultivated, manufactured, and transported by licensed facilities that maintain operations in full
conformance with the State and local regulations. No cannabis or cannabis products may be
sold, distributed, or transferred out of the State.
(f) There shall not be a physician located in or around any commercial cannabis business
at any time for the purpose of evaluating patients for the issuance of a cannabis
recommendation or card where applicable.
(g) Prior to dispensing medicinal cannabis or medicinal cannabis products where
applicable to any person, the commercial medicinal cannabis business shall obtain verification
from the recommending physician that the person requesting medicinal cannabis or medicinal
cannabis products is a qualified patient.
(h) Emergency Contact. Each commercial cannabis business shall provide the City
Manager or his/her designee(s) with the name, telephone number (both land line and mobile,
if available) of an on-site employee or owner to whom emergency notice can be provided at
any hour of the day. The commercial cannabis business shall notify the City Manager or
his/her designee within twenty four (24) hours of a change in the emergency contact.
(i) Signage and Notices.
(1) In addition to the requirements otherwise set forth in this section, business
identification signage for a commercial cannabis business shall conform to the
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requirements of Chapter 19.22 of this Code, including, but not limited to,
seeking the issuance of a City sign permit.
(2) No signs placed on the premises of a commercial cannabis business shall
obstruct any entrance or exit to the building or any window.
(3) Each entrance to a commercial cannabis business shall be visibly posted with a
clear and legible notice indicating that smoking, ingesting, or otherwise
consuming cannabis on the premises or in the areas adjacent to the commercial
cannabis business is prohibited.
(4) Business identification signage shall be limited to that needed for identification
only and shall not contain any logos or information that identifies, advertises,
or lists the services or the products offered. No commercial cannabis business
shall advertise by having a person holding a sign and advertising the business
to passersby, whether such person is on the premises of the commercial
cannabis business or elsewhere including, but not limited to, the public right-
of-way.
(5) [Repealed]
(6) In accordance with state law and regulations or as stipulated in the City of San
Bernardino commercial cannabis business permit, holders of a commercial
cannabis business permit shall agree that, as an express and ongoing condition
of permit issuance and subsequent renewal, the holder of the permit shall be
prohibited from advertising any commercial cannabis business located in the
City of San Bernardino utilizing a billboard (fixed or mobile), bus shelter,
placard, aircraft, or other similar forms of advertising, anywhere in the state.
This paragraph is not intended to place limitations on the ability of a
commercial cannabis business to advertise in other legally authorized forms,
including on the internet, in magazines, or in other similar ways.
(j) Minors.
(1) Persons under the age of twenty-one (21) years shall not be allowed on the
premises of a commercial cannabis business and shall not be allowed to serve
as a driver for a mobile delivery service. It shall be unlawful and a violation of
this Chapter for any person to employ any person at a commercial cannabis
business who is not at least twenty-one (21) years of age. Except as provided
for under section 5.10.330 (c ).
(2) The entrance to the commercial cannabis business shall be clearly and legibly
posted with a notice that no person under the age of twenty-one (21) years of
age is permitted to enter upon the premises of the commercial cannabis
business. Except as provided for under section 5.10.330 (c ).
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(k) Odor Control. Odor control devices and techniques shall be incorporated in all
commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site.
Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and
exhaust system so that odor generated inside the commercial cannabis business that is
distinctive to its operation is not detected outside of the facility, anywhere on adjacent
property or public rights-of-way, on or about the exterior or interior common area walkways,
hallways, breezeways, foyers, lobby areas, or any other areas available for use by common
tenants or the visiting public, or within any other unit located inside the same building as the
commercial cannabis business. As such, commercial cannabis businesses must install and
maintain the following equipment, or any other equipment which the Community
Development Director or his/her designee(s) determine is a more effective method or
technology:
(1) An exhaust air filtration system with odor control that prevents internal odors
from being emitted externally;
(2) An air system that creates negative air pressure between the commercial
cannabis business’s interior and exterior, so that the odors generated inside the
commercial cannabis business are not detectable on the outside of the
commercial cannabis business.
(l) Display of Permit and City Business License. The original copy of the commercial
cannabis business permit issued by the City pursuant to this Chapter and the City issued
business license shall be posted inside the commercial cannabis business in a location readily-
visible to the public.
(m) Background Check. Every person listed as an owner, manager, or supervisor of the
commercial cannabis business must submit fingerprints and other information deemed
necessary by the Chief of Police or his/her designee(s) for a background check by the City of
San Bernardino’s Police Department pursuant to California Penal Code Sections 11105(b)(11)
and 13300(b)(11), which authorizes City authorities to access state and local summary
criminal history information for employment, licensing, or certification purposes; and
authorizes access to federal level criminal history information by transmitting fingerprint
images and related information to the Department of Justice to be transmitted to the Federal
Bureau of Investigation. Pursuant to California Penal Sections 11105(b)(11) and
13300(b)(11), which requires that there be a requirement or exclusion from employment,
licensing or certification based on specific criminal conduct on the part of the subject of the
record, no person shall be issued a permit to operate a commercial cannabis business unless
they have first cleared the background check, as determined by the Chief of Police or his/her
designee(s). A fee for the cost of the background investigation, which shall be the actual cost
to the City of San Bernardino to conduct the background investigation as it deems necessary
and appropriate, shall be paid at the time the application for a commercial cannabis business
permit is submitted.
(n) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit
loitering by persons outside the facility both on the premises and within fifty (50) feet of the
premises.
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(o) Permits and other Approvals. Prior to the establishment of any commercial cannabis
business or the operation of any such business, the person intending to establish a commercial
cannabis business must first obtain all applicable planning, zoning, building, and other
applicable permits from the relevant governmental agency which may be applicable to such
commercial cannabis business.
(p) If the commercial cannabis business permittee is operating as a collective or
cooperative under Health and Safety Code Section 11362.775, subdivision (a), the
commercial cannabis business shall terminate the membership of any member violating any of
the provisions of this Chapter.
(q) The interior and exterior of the premises of the commercial cannabis business shall be
well lit at all times. The windows of the building shall provide an unobstructed view into the
interior.
5.10.320 Other Operational Requirements
The City Manager or his/her designee may develop other commercial cannabis business
operational requirements or regulations as are determined to be necessary to protect the public
health, safety and welfare.
5.10.330 Operating Requirements for Retailer Facilities; Delivery
(a) No more than the number of retailers adopted by resolution may operate within the
City of San Bernardino at any one time and no more than that number adopted by resolution
shall be issued a permit by the City of San Bernardino to operate a retailer at one time. Both
retailers offering storefront purchase (customers purchase and obtain cannabis onsite) and
retailers offering delivery only shall be permitted. Each shall be required to maintain a
physical location from which commercial cannabis activities are conducted that are permitted
under this Chapter.
(b) Retailers may only deliver to customers within a county or city that does not expressly
prohibit delivery by ordinance. Retailers may only deliver to customers within the City of San
Bernardino after obtaining a commercial cannabis business permit issued under the Chapter.
Security plans developed pursuant to this chapter shall include provisions relating to vehicle
security and the protection of employees and product during loading and in transit.
(c) M-licensee retailers must verify the age and all necessary documentation of each
customer to ensure the customer is not under the age of eighteen (18) years and that the
potential customer has a valid doctor's recommendation. A-licensee retailers must verify the
age of customers to ensure persons under the age of twenty-one (21) are not permitted.
(d) Entrances into the retailer shall be locked at all times with entry strictly controlled. A
"buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to
the retailer to separate it from the reception/lobby area.
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(e) Uniformed licensed security personnel shall be employed to monitor site activity,
control loitering and site access, and to serve as a visual deterrent to unlawful activities.
(f) Retailers may have only that quantity of cannabis and cannabis products reasonably
anticipated to meet the daily demand readily available for sale on-site in the publically
accessible retail sales area of the retailer.
(g) All restroom facilities shall remain locked and under the control of management.
5.10.340 Operating Requirements for Commercial Cultivation Facilities
(a) All outdoor (i.e. open air) cultivation is prohibited. The cultivation of all cannabis
must occur indoors or within mixed light structures.
(b) In no case, shall cannabis plants be discernable from a public or private road,
sidewalk, park or any common public viewing area.
(c) A permittee permitted to engage in commercial cannabis cultivation in the City of San
Bernardino shall only be allowed to cultivate the square feet of canopy space permitted by
state law.
(d) Cannabis cultivation shall be conducted in accordance with state and local laws related
to land conversion, grading, electricity, water usage, water quality, woodland and riparian
habitat protection, agricultural discharges, and similar matters.
(e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination
through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
(f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the
health, safety, and welfare of the public, the employees working at the commercial cannabis
business, visitors to the area, neighboring properties, and the end users of the cannabis being
cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the
security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
(g) All applicants for a cannabis cultivation permit shall submit the following in addition
to the information generally otherwise required for a commercial cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum legal
standards for water usage, conservation and use; drainage, runoff, and erosion
control; watershed and habitat protection; and proper storage of fertilizers,
pesticides, and other regulated products to be used on the parcel, and a
description of the cultivation activities (indoor, mixed-light) and schedule of
activities during each month of growing and harvesting, or explanation of
growth cycles and anticipated harvesting schedules for all-season harvesting
(indoor, mixed-light).
(2) A description of a legal water source, irrigation plan, and projected water use.
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(3) Identification of the source of electrical power and plan for compliance with
applicable Building Codes and related codes.
(4) Plan for addressing odor and other public nuisances that may derive from the
cultivation site.
5.10.350 Operating Requirements for Testing Labs
(a) Testing Labs shall be required to conduct all testing in a manner pursuant to Business
and Professions Code Section 26100, et seq., and shall be subject to state and local law. Each
Testing Lab shall be subject to additional regulations as determined from time to time as more
regulations are developed under this Chapter and any subsequent State of California
legislation regarding the same.
(b) Testing Labs shall conduct all testing in a manner consistent with general requirements
for the competence of testing and calibrations activities, including sampling using verified
methods.
(c) Testing Labs shall obtain and maintain ISO/IEC 17025 accreditation as required by the
bureau.
(d) Testing Labs shall destroy any harvest batch whose testing sample indicates
noncompliance with health and safety standards required by the bureau unless remedial
measures can bring the cannabis or cannabis products into compliance with quality standards
as specified by law and implemented by the bureau.
(e) Each operator of a Testing Lab shall ensure that any Testing Lab employee takes the
sample of cannabis or cannabis products from the distributor’s premises for testing as required
by state law and that the Testing Lab employee transports the sample to the Testing Lab.
(f) Except as provided by state law, a Testing Lab shall not acquire or receive cannabis or
cannabis products except from a licensee in accordance with state law, and shall not
distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from
which the cannabis or cannabis products were acquired or received. All transfer or
transportation shall be performed pursuant to a specified chain of custody protocol.
(g) A Testing Lab may receive and test samples of cannabis or cannabis products from a
qualified patient or primary caregiver only if the qualified patient or primary caregiver
presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal
purpose. A Testing Lab shall not certify samples from a qualified patient or primary caregiver
for resale or transfer to another party or licensee. All tests performed by a Testing Lab for a
qualified patient or primary caregiver shall be recorded with the name of the qualified patient
or primary caregiver and the amount of the cannabis or cannabis products received.
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5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or
Distribution of Edible and Other Cannabis Products
(a) In addition to any locational restrictions contained within this Chapter, manufacturers
requiring a Type-6, or Type-7 or any subsequent created manufacturing state license (using
non-volatile and volatile solvents) as defined in MAUCRSA, may only be permitted to
operate within those zone districts as similar manufacturing activities under Title 19 of this
Code.
(b) Any compressed gases used in the manufacturing process shall not be stored on any
property within the City of San Bernardino in containers that exceeds the amount which is
approved by Fire Department and authorized by the commercial cannabis business permit.
Each site or parcel subject to a commercial cannabis business permit shall be limited to a total
number of tanks as authorized by the Fire Department on the property at any time.
(c) Manufacturers may use the hydrocarbons N-butane, isobutane, propane, or heptane or
other solvents or gases exhibiting low to minimal potential human-related toxicity approved
by both the Community Development Department and Fire Department. These solvents must
be of at least ninety-nine percent purity and any extraction process must use them in a
professional grade closed loop extraction system designed to recover the solvents and work in
an environment with proper ventilation, controlling all sources of ignition where a flammable
atmosphere is or may be present.
(d) If an extraction process uses a professional grade closed loop CO₂ gas extraction
system every vessel must be certified by the manufacturer for its safe use as referenced in
5.10.360 (f). The CO₂ must be of at least ninety-nine percent purity.
(e) Closed loop systems for compressed gas extraction systems must be commercially
manufactured and bear a permanently affixed and visible serial number.
(f) Certification from an engineer licensed by the State of California must be provided to
the Community Development Department for a professional grade closed loop system used by
any commercial cannabis manufacturing manufacturer to certify that the system was
commercially manufactured, is safe for its intended use, and was built to codes of recognized
and generally accepted good engineering practices, including but not limited to:
(1) The American Society of Mechanical Engineers (ASME);
(2) American National Standards Institute (ANSI);
(3) Underwriters Laboratories (UL); or
(4) The American Society for Testing and Materials (ASTM).
(g) The certification document must contain the signature and stamp of the professional
engineer and serial number of the extraction unit being certified.
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(h) Professional closed loop systems, other equipment used, the extraction operation, and
facilities must be approved for their use by the Fire Department and meet any required fire,
safety, and building code requirements specified in the California Building Reference Codes.
(i) Manufacturers may use heat, screens, presses, steam distillation, ice water, and other
methods without employing solvents or gases to create keef, hashish, bubble hash, or infused
dairy butter, or oils or fats derived from natural sources, and other extracts.
(j) Manufacturers may use food grade glycerin, ethanol, and propylene glycol solvents to
create or refine extracts. Ethanol should be removed from the extract in a manner to recapture
the solvent and ensure that it is not vented into the atmosphere.
(k) Manufacturers creating cannabis extracts must develop standard operating procedures,
good manufacturing practices, and a training plan prior to producing extracts for the
marketplace.
(l) Any person using solvents or gases in a closed looped system to create cannabis
extracts must be fully trained on how to use the system, have direct access to applicable
material safety data sheets and handle and store solvents and gases safely.
(m) Parts per million for one gram of finished extract cannot exceed state standards for any
residual solvent or gas when quality assurance tested.
5.10.370 Promulgation of Regulations, Standards and Other Legal Duties
(a) In addition to any regulations adopted by the Mayor and City Council, the City
Manager or his/her designee is authorized to establish, subject to approval by the Mayor and
City Council, any additional rules, regulations and standards governing the issuance, denial or
renewal of commercial cannabis business permits, the ongoing operation of commercial
cannabis businesses and the City's oversight, or concerning any other subject determined to be
necessary to carry out the purposes of this Chapter.
(b) Regulations shall be published on the City’s website.
(c) Regulations promulgated by the City Manager or his/her designee shall become
effective upon date of publication. Commercial cannabis businesses shall be required to
comply with all state and local laws and regulations, including but not limited to any rules,
regulations or standards adopted by the City Manager or his/her designee.
(d) Testing Labs and Distribution facilities shall be subject to state law and shall be
subject to additional regulations as determined from time to time as more regulations are
developed under Section 5.10.350 (a) of this Chapter and any subsequent State of California
legislation regarding the same.
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5.10.380 Community Relations
(a) Each commercial cannabis business shall provide the name, telephone number, and
email address of a community relations contact to whom notice of problems associated with
the commercial cannabis business can be provided. Each commercial cannabis business shall
also provide the above information to all businesses and residences located within one
hundred (100) feet of the commercial cannabis business. The commercial cannabis business
shall notify the City Manager or his/her designee within twenty four (24) hours of a change in
community relations contact.
(b) During the first year of operation pursuant to this Chapter, the owner, manager, and
community relations representative from each commercial cannabis business holding a permit
issued pursuant to this Chapter shall attend meetings with the City Manager or his/her
designee(s), and other interested parties as deemed appropriate by the City Manager or his/her
designee(s), to discuss costs, benefits, and other community issues arising as a result of
implementation of this Chapter. After the first year of operation, the owner, manager, and
community relations representative from each such commercial cannabis business shall meet
with the City Manager or his/her designee(s) when and as requested by the City Manager or
his/her designee(s).
(c) Commercial cannabis businesses to which a permit is issued pursuant to this Chapter
shall develop a City approved public outreach and educational program for youth
organizations and educational institutions that outlines the risks of youth addiction to
cannabis, and that identifies resources available to youth related to drugs and drug addiction.
5.10.390 Fees Deemed Debt to the City of San Bernardino
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a
debt to the City of San Bernardino that is recoverable via an authorized administrative process
as set forth by ordinance, or in any court of competent jurisdiction.
5.10.400 Permittee Responsible for Violations
The person to whom a permit is issued pursuant to this Chapter shall be responsible for all
violations of the laws of the State of California or of the regulations and/or the ordinances of
the City of San Bernardino, whether committed by the permittee or any employee or agent of
the permittee, which violations occur in or about the premises of the commercial cannabis
business whether or not said violations occur within the permittee’s presence.
5.10.410 Inspection and Enforcement
(a) The City Manager, Chief of Police or designee of either of them charged with
enforcing the provisions of this Chapter, or any provision thereof, may enter the location of a
commercial cannabis business at any time, without notice, and inspect the location of any
commercial cannabis business as well as any recordings and records required to be maintained
pursuant to this Chapter or under applicable provisions of State law.
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(b) It is unlawful for any person having responsibility over the operation of a commercial
cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to
conduct an inspection, review or copy records, recordings or other documents required to be
maintained by a commercial cannabis business under this Chapter or under state or local law.
It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records,
recordings or other documents required to be maintained by a commercial cannabis business
under this Chapter or under state or local law.
(c) The City Manager, Chief of Police or designee of either of them charged with
enforcing the provisions of this Chapter may enter the location of a commercial cannabis
business at any time during the hours of operation and without notice to obtain samples of the
cannabis to test for public safety purposes. Any samples obtained by the City of San
Bernardino shall be logged, recorded, and maintained in accordance with established
procedures by the San Bernardino Police Department or regulations adopted pursuant to the
authority of this Chapter.
5.10.420 Compliance with State Regulation
It is the stated intent of this Chapter to regulate commercial cannabis activity in the City of
San Bernardino in compliance with all provisions MAUCRSA and any subsequent state
legislation.
5.10.430 Violations declared a public nuisance
Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a
public nuisance and may be summarily abated by the City Manager, Chief of Police, or
designee of either of them. The City may recover any nuisance abatement costs and/or
administrative fines relating to such violations in accordance with Government Code Sections
38773.1 and 38773.5 in accordance with Chapter 8.30 of this Code.
5.10.440 Each violation a separate offense
Each and every violation of this Chapter shall constitute a separate violation and shall be
subject to all remedies and enforcement measures authorized by the City of San Bernardino.
Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive
relief, any permit issued pursuant to this Chapter being deemed null and void, disgorgement
and payment to the City for any monies unlawfully obtained, costs of abatement, costs of
investigation, attorney fees, and any other relief or remedy available at law or in equity. The
City of San Bernardino may also pursue any and all remedies and actions available and
applicable under state and local laws for any violations committed by the commercial
cannabis business or persons related to, or associated with, the commercial cannabis activity.
Additionally, when there is determined to be an imminent threat to public health, safety or
welfare, the City Manager, Chief of Police or designee of either of them, may take immediate
action to temporarily suspend a commercial cannabis business permit issued by the City,
pending a hearing before the City Manager, or his/her designee(s).
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5.10.450 Criminal Penalties
Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this
Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney, be
prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one
thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more
than six (6) months, or by both such fine and imprisonment. The City Attorney, in his or her
sound discretion, may prosecute a violation of this Chapter as an infraction, rather than a
misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an
infraction. Any person convicted of an infraction under this provisions of this Chapter shall be
punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not
exceeding two hundred dollars ($200) for a second violation within one year, and a fine not
exceeding five hundred dollars ($500) for a third violation within one year. A fourth violation
of this Chapter within one year shall be charged as a misdemeanor and may not be reduced to
an infraction. Each day a violation is committed or permitted to continue shall constitute a
separate offense.
5.10.460 Remedies cumulative and not exclusive
The remedies provided herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law.
SECTION 4. REPEAL
All previous ordinances related to the establishment and operation of commercial cannabis
activities within the City of San Bernardino, and to the extent that such ordinances may be in
force before or at the time this Ordinance takes effect, including, without limitation, the
moratorium established by Ordinance No. MC-1452, are hereby repealed and shall be of no
further effect from the effective date of this Ordinance.
SECTION 5. ADDITIONAL FINDINGS
5.1 GENERAL PLAN
The Ordinance is consistent with the General Plan. The Mayor and City Council of the City
of San Bernardino find that the Ordinance is consistent with the General Plan. The Ordinance
proposes a comprehensive regulatory system for commercial cannabis activities. The
regulations include numerical, locational, design, operating, security and sensitive-use
distance regulations on commercial cannabis activities. The Ordinance includes review and
recommendations of applications for commercial cannabis activities, which will be overseen
by the City Manager, and will include the Police Department and Planning Division of the
Community Development Department. The Ordinance is also consistent with the following
General Plan goals and policies:
Policy 2.2.8 requires the City to control the location and
number of community-sensitive uses, such as alcohol sales,
adult bookstores and businesses, game arcades, and similar
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uses based on proximity to residences, schools, religious
facilities, and parks.
The Ordinance establishes a maximum number of permitted commercial
cannabis activities within the City. The Ordinance also establishes locational
restrictions, including zoning and distance restrictions. The Ordinance
establishes a distance buffer between commercial cannabis activities and
residential zones and uses. The Ordinance establishes a distance buffer
between commercial cannabis activities and schools, daycare centers, youth
centers, and parks. The discretionary approval process within the Ordinance
allows the City to consider the proximity of a proposed location to other
community-sensitive uses such as religious facilities and libraries when
determining whether to approve an application for a permit under the
Ordinance.
Policy 2.2.9 requires the Police Department review uses that
may be characterized by high levels of noise, nighttime
patronage, and/or rates of crime; providing for the conditioning
or control of use to prevent adverse impacts on adjacent
residences, schools, religious facilities, and similar “sensitive”
uses.
The Police Department has been involved in the development of the Ordinance
to ensure that the Ordinance contains adequate regulations that prevent adverse
impacts on adjacent “sensitive” uses. The Ordinance contains regulations
mandating minimum security measures, including security cameras, panic
buttons, monitored alarm systems, and on site security guards. The application
process adopted by the Mayor and City Council of the City of San Bernardino
pursuant to the Ordinance will allow for the Police Department to review
applications and provide recommendations to the City Manager. The Police
Department’s review will be incorporated into the City Manager’s final
recommendation to the Mayor and City Council on whether to approve a
permit application. The Mayor and City Council may reject any application if it
determines rejection would be in the best interests of the City, taking into
account any health, safety and welfare impacts on the community.
Policy 2.2.10 requires the City to protect the quality of life
during the review of projects. The City is required to use its
discretion to deny or requirement mitigation of projects that
result in impacts that outweigh the benefits to the public.
The Mayor and City Council may reject any application that it determines
rejection would be in the best interests of the City, taking into account any
health, safety and welfare impacts on the community. Additionally, as a
discretionary approval, the Ordinance authorizes the Mayor and City Council
to condition its approval of a permit to mitigate the negative effects of a
commercial cannabis activity.
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5.2 PUBLIC HEALTH, SAFETY AND WELFARE
The Ordinance is not detrimental to the public interest, health, safety, convenience, or
welfare. There are a high number of unpermitted commercial cannabis businesses currently
operating in the City of San Bernardino. The unpermitted commercial cannabis businesses
have caused significant public health, safety and welfare concerns as discussed in the recitals
above. The Ordinance addresses those public health, safety and welfare concerns by limiting
the number and location of the commercial cannabis activities and imposing operating
conditions that will ensure that qualified patients and persons over 21 years of age have safe
access to cannabis while maintaining the quality of life for the City’s residents. The Ordinance
is not detrimental to the public interest, health, safety, convenience, or welfare.
5.3 BALANCE OF LAND USES
The Ordinance would maintain the appropriate balance of land uses within the City. The
Ordinance limits the location of commercial cannabis activities to specified zones within the
City and establishes distance buffers from sensitive-uses. The Ordinance includes numerical
restrictions on the total number of permitted commercial cannabis activities to ensure that the
land uses in the City remain balanced. The Ordinance includes discretionary approval which
allows the Mayor and City Council to consider the balance of land uses when considering the
approval of an application.
5.4 SUITABILITY
The subject parcel(s) are physically suitable (including, but not limited to, access, provision
of utilities, compatibility with adjoining land uses, and absence of physical constraints) for
the requested land use designation(s) and the anticipated land use development(s). The
Ordinance includes discretionary approval which allows the Mayor and City Council to
consider the suitability of the property proposed in each application for the proposed
commercial cannabis activity. The zoning restrictions included within the Ordinance were
selected because those zones are the most likely to contain suitable properties for the
establishment of commercial cannabis activities.
SECTION 6. ENVIRONMENTAL DETERMINATION
The Mayor and City Council of the City of San Bernardino, California, hereby find and
determine that this Ordinance is not subject to environmental review under the California
Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment); Section 15060(c)(3) (the activity is not a project as defined in
Section 15378) because it has no potential for resulting in a physical change of the
environment, directly or indirectly; and Business and Professions Code Section 26055(h)
because the Ordinance requires the discretionary review of permits to include any applicable
environmental review pursuant to Division 13 (commencing with Section 21000) of the
Public Resources Code.
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SECTION 7. EFFECTIVE DATE
This Ordinance shall be effective upon the thirty-first (31st) day following its final passage by
a majority vote of the Mayor and City Council.
SECTION 8. SEVERABILITY
While it is the intent of Mayor and City Council of the City of San Bernardino to adopt a
comprehensive regulatory system for commercial cannabis activities within the City of San
Bernardino, if any provision of this Ordinance or the application thereof to any person or
circumstances is held invalid, such invalidity shall not affect other provisions or applications
of this Ordinance which can be given effect without the invalid provision or application, and
to this end, the provisions of this Ordinance are severable. The Mayor and City Council of the
City of San Bernardino declare that they would have adopted this Ordinance irrespective of
the invalidity of any particular portion thereof.
///
///
///
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AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING CHAPTER 5.10 OF THE SAN
BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF
COMMERCIAL CANNABIS ACTIVITIES
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor
and City Council of the City of San Bernardino at a _______________________ meeting
thereof, held on the _____ day of ______________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Ordinance is hereby approved this _____ day of __________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:____________________
00060815.1 Page 40
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ORDINANCE NO. __________MC-1503
AN ORDINANCE OF THE PEOPLE MAYOR AND CITY COUNCIL OF THE CITY
OF SAN BERNARDINO, CALIFORNIA, REENACTING AND AMENDING
CHAPTER 5.10 OF THE SAN BERNARDINO MUNICIPAL CODE RELATED TO
REGULATION OF COMMERCIAL CANNABIS ACTIVITIES
WHEREAS, the City of San Bernardino, California (“City”) is a municipal
corporation, duly organized under the Charter of the City of San Bernardino and the
Constitution and laws of the State of California; and,
WHEREAS, at the General Election held on November 5, 1996, California voters
approved Proposition 215, commonly known as the “Compassionate Use Act of 1996”
(“CUA”) with the purpose of allowing medical patients to cultivate and use cannabis without
fear of State prosecution; and,
WHEREAS, on January 1, 2004, Senate Bill 420 (codified as Health and Safety Code
Sections 11362.7, et seq., entitled the “Medical Marijuana Program Act” (“MMPA”) went
into effect and was enacted to clarify the scope of the CUA and to allow cities and counties to
adopt and enforce regulations consistent with the CUA and MMPA; and,
WHEREAS, on October 9, 2015, Governor Brown approved a series of bills
commonly known as the “Medical Cannabis Regulation and Safety Act” (“MCRSA”)
establishing a comprehensive State licensing and regulatory framework for the cultivation,
manufacture, transportation, storage, distribution, and sale of medical cannabis; and which
recognizes the authority of local jurisdictions to either impose additional restrictions or
prohibit certain activities related to the cultivation, manufacture, transportation, storage,
distribution, delivery, and sale of medical cannabis; and,
WHEREAS, at the General Election held on November 8, 2016, California voters
approved Proposition 64, commonly known as the “Control, Regulate and Tax Adult Use of
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Marijuana Act” (“AUMA”), establishing a comprehensive State licensing and regulatory
framework for the cultivation, manufacture, transportation, storage, distribution, and sale of
recreational cannabis, and which recognizes the authority of local jurisdictions to either
impose additional restrictions or prohibit certain activities related to the cultivation,
manufacture, transportation, storage, distribution, delivery, and sale of recreational cannabis;
and,
WHEREAS, on June 27, 2017, Governor Brown approved Senate Bill 94, commonly
known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”)
harmonizing MCRSA and AUMA into a single comprehensive State licensing and regulatory
framework for both medical and recreational cannabis activities; and
WHEREAS, at the General Election held on November 8, 2016, San Bernardino
voters approved Measure O with 26,037 votes and 55.12% approval, and defeated competing
Measures N and P, with the intent on establishing a comprehensive local licensing and
regulatory framework for the cultivation, manufacture, transportation, storage, distribution,
and sale of medical and recreational cannabis in the City of San Bernardino; and
WHEREAS, the Superior Court for the State of California has rendered a Final
Judgement determining that Measure O is invalid in the following cases: Kush Concepts, et
al., v. City of San Bernardino, Superior Court Case No. CIVDS 1702131; Quiang Ye, et al., v.
City of San Bernardino, et al., Superior Court Case No. CIVDS 1704276; Karmel Roe v. City
of San Bernardino, et al., Superior Court Case No. CIVDS 1712424; and,
WHEREAS, on December 20, 2017, the Mayor and City Council, anticipating
Measure O being invalidated, and seeking to protect the City’s authority to regulate
commercial medical and recreational cannabis activities, adopted Ordinance No. MC-1452,
establishing a moratorium prohibiting all land use entitlements, building permits, business
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licenses and any other applicable approval or decisions for unregulated commercial marijuana
activities that would take effect upon Measure O’s invalidation; and,
WHEREAS, on January 22, 2018, the Mayor and City Council opened a duly noticed
public hearing on an extension of the moratorium; and,
WHEREAS, on January 22, 2018, the Mayor and City Council continued the public
hearing to February 1, 2018 to have additional time for public comment; and,
WHEREAS, on February 1, 2018, the Mayor and City Council by a vote of 7-0 voted
to extend the moratorium 10 months and 15 days to December 18, 2018; and,
WHEREAS, on February 1, 2018, the Mayor and City Council directed City staff to
expeditiously prepare regulations for commercial cannabis activities within the City of San
Bernardino; and,
WHEREAS, on February 20, 2018, the Mayor and City Council introduced
Ordinance No. MC-1464 for first reading, which established a comprehensive regulatory
scheme for commercial cannabis activities; and,
WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance No.
MC-1464 establishing regulations for commercial cannabis activities; and,
WHEREAS, commercial cannabis businesses that have operated unpermitted within
the City and elsewhere have caused significant public safety problems, including but not
limited to: burglaries and takeover robberies of cannabis businesses, robberies of customers
leaving cannabis businesses, increases in crime (especially theft and robberies) in the vicinity
of cannabis businesses, offensive odors, illegal re-selling of cannabis obtained from cannabis
businesses, physicians issuing apparently fraudulent recommendations for the use of cannabis,
cannabis businesses staff selling cannabis to customers with obviously counterfeit patient
identification cards, street dealers attempting to sell cannabis to cannabis businesses
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customers, cannabis businesses customers using cannabis and then driving under the influence
of cannabis, the sale of illegal drugs other than cannabis in the cannabis businesses, sales of
cannabis to minors, illegal firearms possessed by felons within cannabis businesses, health
and safety violations within cannabis businesses related to the City’s Fire and Building Codes;
and,
WHEREAS, there is a need to adopt health, safety and welfare regulations to avoid
adverse impacts on the City’s residents and businesses that may arise from commercial
cannabis activities; and,
WHEREAS, an effective regulatory system governing commercial cannabis activities
in the City of San Bernardino, as provided in this Ordinance, will address potential adverse
impacts to the public health, welfare, and safety, thereby allowing commercial cannabis
activities in a manner consistent with State law; and,
WHEREAS, the people of theMayor and City Council City of San Bernardino desire
to promote a successful business environment in the City for commercial cannabis businesses
and their neighboring non-cannabis businesses; and,
WHEREAS, the Mayor and City Council desire to protect the quality of life of the
City’s residents by ensuring commercial cannabis businesses do not adversely affect the
health, safety, and welfare of the City; and,
WHEREAS, the people of the City of San Bernardino desire to ensure workers for
commercial cannabis businesses are treated and paid fairly; and,
WHEREAS, the people of the City of San Bernardino desire to protect the
environment within the City by promoting beneficial uses of water and protecting clean air;
and,
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WHEREAS, the reliability of the electricity system within the City is stressed during
peak usage times, especially during the summer months, impacting the health, safety, and
welfare of the residents that may not have adequate access to cooling; and,
WHEREAS, commercial cannabis activities, especially cultivation, require significant
amounts of water and electricity, and have the potential to negatively affect air quality; and,
WHEREAS, local regulation on commercial cannabis activity requires the balancing
of numerous competing interests, including: the interests of the industry in have a favorable
business and investment environment; the interests of business and property owners in
protecting their property values; the interests of the residents in neighborhoods with high
quality of life; the interests of workers in their working conditions; the interests of patients in
access to cannabis for medical reasons; the interests in protecting vulnerable populations such
as seniors; the interest in protecting the environment and scarce resources and the interests in
law enforcement in protecting the public safety of our City; and,
WHEREAS, the people Mayor and City Council of the City of San Bernardino have
continued to engaged with commercial cannabis businesses andthe residentselected officials
of the City Council through committees, workshops, and public hearings to consider and
weigh these competing interests to develop an Ordinance that best serves the public
interestduring the implementation of Ordinance No. MC-1464; and,
WHEREAS, the City will need to consider adoption of necessary fees to raise
sufficient revenue to enforce the provisions of this Ordinance; and,
WHEREAS, federal law, codified at 21 U.S.C. Sections 801 et seq., entitled the
“Controlled Substances Act” (“CSA”) makes it unlawful to manufacture, distribute, or possess
any controlled substances, including cannabis, which has, as a Schedule I drug under the
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CSA, been determined by the federal government to have a high potential for abuse and no
accepted medical value in treatment; and,
WHEREAS, nothing in this Ordinance is intended to authorize the possession, use, or
provision of cannabis for purposes that violate federal lawbased on feedback from the
commercial cannabis businesses, residents, and staff, the Mayor and City Council desire to
amend certain portions of San Bernardino Municipal Code Chapter 5.10 related to the
regulation of commercial cannabis activities.
NOW, THEREFORE, THE PEOPLE MAYOR AND CITY COUNCIL OF THE
CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS:
SECTION 1. INCORPORATION OF RECITALS
The foregoing recitals set forth above are true and correct and are a substantive part of
this Ordinance.
SECTION 2. AUTHORITY
Pursuant to Sections 11 5 and 7 of Article II XI of the California Constitution, the
Charter of the City of San Bernardino, and State law, the people Mayor and City Council of
the City of San Bernardino may exerciseis authorized the power to adopt ordinances by
initiativethat protect the health, safety, and welfare of its residents and businesses.
SECTION 3. ADOPTION; REENACTMENT; AMENDMENT
This Ordinance amends and reenacts in its entirety Ordinance No. MC-1464, as
adopted by the Mayor and City Council on March 7, 2018. It is the intent of the people Mayor
and City Council of the City of San Bernardino that the amendments to Section 5.10.100 and
5.10.250 from the original language of Ordinance No. MC-1464 be declaratory of existing
law and a restatement of the original terms. The language of those sections as originally
adopted is unambiguous, but, nonetheless, those sections resulted in controversy concerning
the proper interpretation of the statute soon after the ordinance’s adoption, and, therefore, the
people Mayor and City Council of the City of San Bernardino amend those sections with the
intent and purpose of construing and clarifying the prior language.
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Chapter 10, entitled “Commercial Cannabis Activities”, of Title 5 “Business
Registration and Regulations” of the San Bernardino Municipal Code is approved and
reenacted amended to read as follows:
Chapter 5.10
COMMERCIAL CANNABIS ACTIVITIES
Sections:
5.10.010 Purpose and Intent
5.10.020 Legal Authority
5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically
Authorized by this Chapter
5.10.040 Compliance with Laws
5.10.050 Definitions
5.10.060 Commercial Cannabis Business Permit Required to Engage in
Commercial Cannabis Business
5.10.070 Cannabis Employee Requirements
5.10.080 Maximum Number and Type of Authorized Commercial Cannabis
Businesses Permitted
5.10.090 Initial Application Procedure
5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business
Permit or Being Employed by a Commercial Cannabis Business
5.10.110 Expiration of Commercial Cannabis Business Permits
5.10.120 Revocation of Permits
5.10.130 Renewal Applications
5.10.140 Effect of State License Suspension, Revocation, or Termination
5.10.150 Appeals
5.10.160 Written Request for Appeal
5.10.170 Appeal Hearing
5.10.180 Commercial Cannabis Business Permittee Selection Process
5.10.190 Updated Information
5.10.200 Change in Ownership or Location
5.10.210 City Business Registration Certificate
5.10.220 Building Permits and Inspection
5.10.230 Certification from the Community Development Director
5.10.240 Right to Occupy and to Use Property
5.10.250 Location and Design of Cannabis Businesses
5.10.260 Limitations on City’s Liability
5.10.270 Records and Recordkeeping
5.10.280 Security Measures
5.10.290 Restriction on Alcohol & Tobacco Sales
5.10.300 Fees and Charges
5.10.310 Miscellaneous Operating Requirements
5.10.320 Other Operational Requirements
5.10.330 Operating Requirements for Retailer Facilities; Delivery
5.10.340 Operating Requirements for Commercial Cultivation Facilities
5.10.350 Operating Requirements for Testing Labs
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5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or
Distribution of Edible and Other Cannabis Products
5.10.370 Promulgation of Regulations, Standards and Other Legal Duties
5.10.380 Community Relations
5.10.390 Fees Deemed Debt to the City of San Bernardino
5.10.400 Permittee Responsible for Violations
5.10.410 Inspection and Enforcement
5.10.420 Compliance with State Regulation
5.10.430 Violations Declared a Public Nuisance
5.10.440 Each Violation a Separate Offense
5.10.450 Criminal Penalties
5.10.460 Remedies Cumulative and Not Exclusive
5.10.010 Purpose and Intent
It is the purpose and intent of this Chapter to implement the provisions of the Medicinal and
Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of
medically-ill persons and provide access to cannabis for medicinal purposes as recommended
by their health care provider(s), and to provide access to adult-use for persons over the age of
21 as authorized by the Control, Tax & Regulate the Adult Use Cannabis Act (“AUMA” or
“Proposition 64” passed by California voters in 2016), while imposing sensible regulations on
the use of land to protect the City’s residents, neighborhoods, and businesses from
disproportionate and potentially deleterious negative impacts. As such, it is the purpose and
intent of this Chapter to regulate the cultivation, processing, manufacturing, testing, sale,
delivery, distribution and transportation of medicinal and adult-use cannabis and cannabis
products in a responsible manner to protect the health, safety, and welfare of the residents of
the City of San Bernardino and to enforce rules and regulations consistent with State law. It is
the further purpose and intent of this Chapter to require all commercial cannabis operators to
obtain and renew, annually, a permit to operate within the City of San Bernardino. Nothing in
this Chapter is intended to authorize the possession, use, or provision of cannabis for
purposes, or in any manner, that violates state or federal law. The provisions of this Chapter
are in addition to any other permits, licenses and approvals which may be required to conduct
business in the City, and are in addition to any permits, licenses and approval required under
State, City, or other law.
5.10.020 Legal Authority
Pursuant to Sections 11 5 and 7 of Article II XI of the California Constitution, the provisions
of MAUCRSA, any subsequent State legislation and/or regulations regarding same, and the
City Charter of the City of San Bernardino, the people Mayor and City Council of the City of
San Bernardino may exercise the powerare authorized to adopt ordinances that establish
standards, requirements and regulations for the licensing and permitting of commercial
medicinal and adult-use cannabis activity. Any standards, requirements, and regulations
regarding health and safety, security, reporting and worker protections established by the State
of California, or any of its departments or divisions, shall be the minimum standards
applicable in the City of San Bernardino to all commercial cannabis activity.
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5.10.030 Commercial Cannabis Activities Prohibited Unless Specifically
Authorized by this Chapter
Except as specifically authorized in this Chapter, the commercial cultivation, manufacture,
processing, storing, laboratory testing, labeling, sale, delivery, distribution or transportation
(other than as provided under Section 26090(e) of the Business and Professions Code), of
cannabis or cannabis product is expressly prohibited in the City of San Bernardino.
5.10.040 Compliance with Laws
Nothing in this Chapter shall be construed as authorizing any actions that violate federal, State
or local law with respect to the operation of a commercial cannabis business. It shall be the
responsibility of the owners, the operators, and the employees of the commercial cannabis
business to ensure that the commercial cannabis business is, at all times, operating in a
manner compliant with all applicable federal, State and local laws, including for as long as
applicable, the Compassionate Use Act (“Prop. 215”), the Medical Marijuana Program Act
(“MMPA”) and the 2008 Attorney General Guidelines for the Security and Non-Diversion of
Cannabis for Medical Purposes (“AG Guidelines”) (collectively “the Medical Cannabis
Collective Laws”), any subsequently enacted State law or regulatory, licensing, or
certification requirements, and any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of the commercial cannabis business permit.
5.10.050 Definitions
When used in this Chapter, the following words shall have the meanings ascribed to them as
set forth herein. Any reference to California statutes includes any regulations promulgated
thereunder, and is deemed to include any successor or amended version of the referenced
statute or regulatory provision.
(a) “A-license” means a state license issued under Division 10 of the Business and Professions
Code for cannabis or cannabis products that are intended for adults 21 years of age and over
and who do not possess physician’s recommendations.
(b) “A-licensee” means any person holding a license under Division 10 of the Business and
Professions Code for cannabis or cannabis products that are intended for adults 21 years of
age and over and who do not possess physician’s recommendations.
(c) “Applicant” means a person applying for a permit pursuant to this Chapter.
(d) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves,
and other cannabis plant matter that is uniform in strain, harvested at the same time, and, if
applicable, cultivated using the same pesticides and other agricultural chemicals, and
harvested at the same time.
(e) “Bureau” means the Bureau of Cannabis Control within the Department of Consumer
Affairs, formerly named the Bureau of Marijuana Control, the Bureau of Medical Cannabis
Regulation, and the Bureau of Medical Marijuana Regulation.
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(f) “Cannabis” means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis
ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified,
extracted from any part of the plant; and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated
resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the
mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of
the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the
mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of
the plant which is incapable of germination. For the purpose of this division, “cannabis” does
not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.
(g) “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or
more active cannabinoids, thereby increasing the product’s potency. Resin from granular
trichomes from a cannabis plant is a concentrate for purposes of this division. A cannabis
concentrate is not considered food, as defined by Section 109935 of the Health and Safety
Code, or drug, as defined by Section 109925 of the Health and Safety Code.
(h) “Cannabis product” means a product containing cannabis, including, but not limited to,
manufactured cannabis, - intended to be sold for use by cannabis patients in California
pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5
of the California Health and Safety Code (as the same may be amended from time-to-time) or
pursuant to the Adult Use of Cannabis Act. For purposes of this Chapter, “cannabis” does not
include industrial hemp as defined by Section 81000 of the California Food and Agricultural
Code or Section 11018.5 of the California Health and Safety Code.
(i) “Canopy” means the designated area(s) at a premises, except nurseries, that will contain
mature plants at any point in time. (1) Canopy shall be calculated in square feet and measured
using clearly identifiable boundaries of all areas(s) that will contain mature plants at any point
in time, including all of the space(s) within the boundaries; (2) Canopy may be noncontiguous
but each unique area included in the total canopy calculation shall be separated by an
identifiable boundary which includes, but is not limited to: interior walls, shelves, greenhouse
walls, hoop house walls, garden benches, hedgerows, fencing, garden beds or garden plots;
and if mature plants are being cultivated using a shelving system, the surface area of each
level shall be included in the total canopy calculation.
(j) “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section
11362.7 of the California Health and Safety Code.
(k) “City” means the City of San Bernardino, a California Charter City.
(l) “Commercial cannabis activity” includes the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, packaging, labeling, transportation,
delivery or sale of cannabis and cannabis products as provided for in this Chapter.
(m) “Commercial cannabis business” means any person which engages in commercial
cannabis activity.
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(n) “Commercial cannabis business permit” means a regulatory permit issued by the City of
San Bernardino pursuant to this Chapter to a commercial cannabis business, and is required
before any commercial cannabis activity may be conducted in the City. The initial permit and
annual renewal of a commercial cannabis business permit is made expressly contingent upon
the business’ ongoing compliance with all of the requirements of this Chapter and any
regulations adopted by the City governing the commercial cannabis activity at issue.
(o) “Cultivation” means any activity involving the planting, growing, harvesting, drying,
curing, grading, or trimming of cannabis.
(p) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried,
cured, graded, or trimmed, or a location where any combination of those activities occurs.
(q) “Customer” means a natural person 21 year of age or over or a natural person 18 year of
age or older who possesses a physician’s recommendation.
(r) “Day care center” has the same meaning as in Section 1596.76 of the Health and Safety
Code.
(s) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer.
“Delivery” also includes the use by a retailer of any technology platform owned and
controlled by the retailer.
(t) “Dispensing” means any activity involving the retail sale of cannabis or cannabis products
from a retailer.
(u) “Distribution” means the procurement, sale, and transport of cannabis and cannabis
products between licensees.
(v) “Distributor” means a person holding a valid commercial cannabis business permit issued
by the City of San Bernardino, and, a valid state license for distribution, required by state law
to engage in the business of purchasing cannabis from a licensed cultivator, or cannabis
products from a licensed manufacturer, for sale to a licensed retailer.
(w) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or
otherwise processed, excluding leaves and stems.
(x) "Employee" means any natural person who is employed or retained as an independent
contractor by any permittee in consideration for direct or indirect monetary wages or profit, or
any natural person who volunteers his or her services for an employer.
(y) “Fire Department” has the same meaning as in Section 2.12.020 of this Code.
(z) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis
product, upon its container.
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(aa) “License” means a permit or license issued by the State of California, or one of its
departments or divisions, under Division 10 of the Business and Professions Code to engage
in commercial cannabis activity, including both an A-license and an M-license, as well as a
testing laboratory license.
(ab) “Licensee” means any person holding a state license under Division 10 of the Business
and Professions Code, regardless of whether the license held is an A-license or an M-license,
and includes the holder of a testing laboratory license.
(ac) “Licensing authority” means the state agency responsible for the issuance, renewal, or
reinstatement of the license, or the state agency authorized to take disciplinary action against
the licensee.
(ad) “Live plants” means living cannabis flowers and plants, including seeds, immature plants,
and vegetative stage plants.
(ae) “M-license” means a state license issued for commercial cannabis activity involving
medicinal cannabis.
(af) “M-licensee” means any person holding a license for commercial cannabis activity
involving medicinal cannabis.
(ag) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or prepare
a cannabis product.
(ah) “Manufactured cannabis” means raw cannabis that has undergone a process whereby the
raw agricultural product has been transformed into a concentrate, extraction or other
manufactured product intended for internal consumption through inhalation or oral ingestion
or for topical application.
(ai) “Manufacturer” means a person issued a valid commercial cannabis business permit by
the City of San Bernardino and, a valid state license as required, that conducts the production,
preparation, propagation, or compounding of cannabis or cannabis products either directly or
indirectly or by extraction methods, or independently by means of chemical synthesis, or by
a combination of extraction and chemical synthesis at a fixed location that packages or
repackages cannabis or cannabis products or labels or container.
(aj) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis
product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of
1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a
medicinal cannabis patient in California who possesses a physician’s recommendation.
(ak) “Nonvolatile solvent” means any solvent used in the extraction process that is not a
volatile solvent. For purposes of this Chapter, a nonvolatile solvent includes carbon dioxide
(CO2) used for extraction and ethanol used for extraction or post-extraction processing.
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(al) “Nursery” means a person issued a valid commercial cannabis business permit from the
City of San Bernardino and, a valid state license as required that produces only clones,
immature plants, seeds, and other agricultural products used specifically, for the propagation
and cultivation of cannabis.
(am) “Operation” means any act for which a commercial cannabis business permit is required
under the provisions of this Chapter, or any commercial transfer of cannabis or cannabis
products.
(an) “Owner” means any of the following:
(1) A person with an aggregate ownership interest of 20 percent or more in the person
applying for a license or a licensee, unless the interest is solely a security, lien, or
encumbrance.
(2) The Executive Director of a nonprofit or other entity.
(3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management
of the person applying for a commercial cannabis business permit or who has a financial
interest in the commercial cannabis business other than a fixed lease of real property
(ao) “Package” means any container or receptacle used for holding cannabis or cannabis
products.
(ap) “Patient” or “qualified patient” shall have the same definition as California Health and
Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is
entitled to the protections of California Health & Safety Code Section 11362.5.
(aq) “Permit” means a commercial cannabis business permit issued by the City of San
Bernardino under this Chapter.
(ar) “Permittee” means any person holding a permit under this Chapter.
(as) “Person” includes any individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any
other group or combination acting as a unit, and the plural as well as the singular.
(at) “Physician’s recommendation” means a recommendation by a physician and surgeon that
a patient use cannabis provided in accordance with the Compassionate Use Act of 1996
(Proposition 215), found at Section 11362.5 of the Health and Safety Code.
(au) “Premises” means the designated structure or structures and land specified in the
application that is owned, leased, or otherwise held under the control of the applicant or
permittee where the commercial cannabis activity will be or is conducted. The premises shall
be a contiguous area and shall only be occupied by one permittee.
(av) “Purchaser” means the customer who is engaged in a transaction with a permittee for
purposes of obtaining cannabis or cannabis products.
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(aw) “Retailer” means a commercial cannabis business that offers cannabis, cannabis
products, or devices for the use of cannabis or cannabis products, either individually or in any
combination, for retail sale, including an establishment (whether fixed or mobile) that
delivers, pursuant to express authorization, cannabis and cannabis products as part of a retail
sale, and where the operator holds a valid commercial cannabis business permit from the City
of San Bernardino authorizing the operation of a retailer, and a valid state license as required
by state law to operate a retailer.
(ax) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title
to cannabis or cannabis products are transferred from one person to another, and includes the
delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the
same and soliciting or receiving an order for the same, but does not include the return by the
original purchaser to the location where the product was purchased.
(ay) “Testing laboratory” means a laboratory, facility, or entity in the state that offers or
performs tests of cannabis or cannabis products and that is both of the following:
(1) Accredited by an accrediting body that is independent from all other persons
involved in commercial cannabis activity in the State; and
(2) Holds a valid commercial cannabis business permit from the City and a state
license as required.
(az) “Transport” means the transfer of cannabis products from the permitted business location
of one licensee to the permitted business location of another licensee, for the purposes of
conducting commercial cannabis activity.
(ba) “Youth center” has the same meaning as in Section 11353.1 of the Health and Safety
Code.
(bb) “Volatile solvent” means any solvent that is or produces a flammable gas or vapor that,
when present in the air in sufficient quantities, will create explosive or ignitable mixtures.
Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.
5.10.060 Commercial Cannabis Business Permit Required to Engage in
Commercial Cannabis Business
(a) No person may engage in any commercial cannabis business or in any commercial
cannabis activity within the City of San Bernardino including cultivation, manufacture,
processing, laboratory testing, transporting, dispensing, special events, distribution, or sale of
cannabis or a cannabis product unless the person (1) has a valid commercial cannabis business
permit from the City of San Bernardino; (2) has a valid State Seller’s Permit; and (3) is
currently in compliance with all applicable state and local laws and regulations pertaining to
the commercial cannabis business and the commercial cannabis activities, including the duty
to obtain a City business registration certificate and any required state licenses. Engaging in a
commercial cannabis business or in any commercial cannabis activity includes establishing,
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owning, managing, conducting, leasing to, operating, causing, permitting, aiding, abetting,
suffering or concealing the fact of such an act.
(b) Until Health & Safety Code Section 11362.775, subdivision (a), is repealed, the City
intends that person’s eligible to operate collectives or cooperatives under that subdivision
shall be eligible to apply for a City conditional permit to conduct commercial cannabis
activities, but only to the degree those activities are authorized under state law for collectives
and cooperatives. When the Health & Safety Code Section 11362.775, subdivision (a), is
repealed, or as soon as collectives and cooperatives are no longer permitted to engage in
commercial cannabis activity without a state license under state law, any conditional permit
issued to a commercial cannabis business that has not obtained a state license for the
commercial cannabis activities shall expire and shall be null and void. Such businesses shall
no longer be authorized to engage in any commercial cannabis activities in the City until they
obtain both a City issued commercial cannabis business permit and a state license for that
commercial cannabis activity.
(c) No temporary events shall be permitted at a state designated fair, as that term is
defined in Business and Professions Code Section 19418, subdivision (a), unless the state
designated fair has complied with the requirements of subsection (a) above and the temporary
event is authorized pursuant to a Development Agreement with the City of San Bernardino
approved in accordance with Chapter 19.40 of this Code. Temporary events are prohibited
Citywide except at a state designated fair.
5.10.070 Cannabis Employee Requirements
(a) Any person who is an employee within a commercial cannabis business must be
legally authorized to do so under applicable state law.
(b) A commercial cannabis business shall keep the following records of each of its
employees on file at the premises of the business:
(1) Name, address, and phone number of the employee;
(2) Age and verification of employee. A copy of a birth certificate, driver’s
license, government issued identification card, passport or other proof that the
applicant is at least twenty-one (21) years of age must be on file with the
business;
(3) A list of any crimes enumerated in California Business and Professions Code
Section 26057(b)(4) for which the employee has been convicted;
(4) Name, address, and contact person for all previous employers of the employee
for the last ten (10) years, including, but not limited to, all employers from
which the applicant was fired, resigned, or asked to leave and the reasons for
such dismissal or firing;
(5) The fingerprints and a recent photograph of the employee;
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(6) If applicable, verification that the employee is a qualified patient or primary
caregiver;
(d) The permittee shall provide to the Chief of Police or his/her designee, upon request,
the records described above in subsection (b). The Chief of Police of his/her designee may
review the records and may conduct a background check to determine whether the employee
has been convicted of a crime that shows the employee:
(1) Is dishonest; or
(2) Has committed a felony or misdemeanor involving fraud, deceit,
embezzlement; or
(3) Was convicted of a violent felony, a crime of moral turpitude; or
(4) The illegal use, possession, transportation, distribution or similar activities
related to controlled substances, as defined in the Federal Controlled
Substances Act, except for cannabis related offenses for which the conviction
occurred after the passage of the Compassionate Use Act of 1996.
5.10.080 Maximum Number and Type of Authorized Commercial Cannabis
Businesses Permitted
The number of each type of commercial cannabis business that shall be permitted to operate in
the City shall be established by Resolution of the Mayor and City Council but at no time shall
the total number of permits for all license types exceed one (1) permit per twelve thousand
five hundred (12,500) residents of the City as determined by the most recent Population
Estimates for Cities, Counties and the State Report generated by the State Department of
Finance for the most recent year, unless the Mayor and City Council adopt an ordinance
allowing for a greater number of total permits.
(a) This Chapter is only intended to create a maximum number of commercial cannabis
businesses that may be issued permits to operate in the City. Nothing in this Chapter creates a
mandate that the Mayor and City Council must issue any or all of the commercial cannabis
business permits if it is determined that the applicants do not meet the standards which are
established in the application requirements or further amendments to the application process
or that the Mayor and City Council, upon further deliberation, determines that the issuance of
any or all commercial cannabis business permits will impact the public safety, welfare or
other policy concerns which may be detrimental in the issuance of these permits.
(b) Each year following the Mayor and City Council’s initial award of permits, if any, or
at any time in the Mayor and City Council’s discretion, the Mayor and City Council may
reassess the number of commercial cannabis business permits which are authorized for
issuance to each business type. The Mayor and City Council, in its discretion, may
determine by Resolution that the number of each type of commercial cannabis permits should
be reduced, stay the same, or be expanded.
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5.10.090 Initial Application Procedure
(a) The Mayor and City Council shall adopt by Resolution the procedures to govern the
application process, and the manner in which the decision will ultimately be made regarding
the issuance of any commercial cannabis business permit(s), which Resolution shall include or
require the City Manager to provide detailed objective review criteria to be evaluated on a
point system or equivalent quantitative evaluation scale tied to each set of review criteria
(“Review Criteria”), which shall require any applicable environmental review pursuant to
Division 13 (commencing with Section 21000) of the Public Resources Code as contemplated
by Business and Professions Code Section 26055, subdivision (h). The Resolution shall
authorize the City Manager or his/her designee(s) to prepare the necessary forms, adopt any
necessary rules to the application, regulations and processes, solicit applications, conduct
initial evaluations of the applicants, and to ultimately provide a final recommendation to the
Mayor and City Council.
(b) At the time of filing, each applicant shall pay an application fee established by
Resolution of the Mayor and City Council, to cover all costs incurred by the City in the
application process.
(c) After the initial review, ranking, and scoring under the Review Criteria, the City
Manager or his/her designee(s) will make a recommendation to the Mayor and City Council,
and the Mayor and City Council shall make a final determination in accordance with Section
5.10.180.
(d) THE CITY 'S RESERVATION OF RIGHTS:
The City reserves the right to reject any or all initial applications. Prior to permit issuance, the
City may also modify, postpone, or cancel any request for applications, or the entire program
under this Chapter, at any time without liability, obligation, or commitment to any party, firm,
or organization, to the extent permitted by law. Persons submitting applications assume the
risk that all or any part of the program, or any particular category of permit potentially
authorized under this Chapter, may be cancelled at any time prior to permit issuance. The
City further reserves the right to request and obtain additional information from any candidate
submitting an application. In addition to any other justification provided, including a failure to
comply with other requirements in this Chapter, an application RISKS BEING REJECTED
for any of the following reasons:
(1) The application was received after the designated time and date;
(2) The application did not contain the required elements, exhibits, nor organized
in the required format; or
(3) The application was not considered fully responsive to the request for permit
application.
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5.10.100 Persons Prohibited from Holding a Commercial Cannabis Business
Permit or Being Employed by a Commercial Cannabis Business
(a) No person may hold a commercial cannabis business permit, or be employed by a
commercial cannabis business, in the City of San Bernardino, if any of the following
conditions exist:
(1) The applicant, permittee, or employee has been denied a commercial
cannabis business permit, or similar license, or has had such a permit or
license suspended or revoked by any city, county, city and county or any
state cannabis licensing authority;
(2) The applicant, permittee, employee, or the owner of the property upon
which the proposed commercial cannabis activity is to occur, was either
convicted of, pled guilty or nolo contendere to, or has been found by the
City’s Hearing Officer pursuant to Chapters 9.92 or 9.93 to be responsible
for, conducting commercial cannabis activity in non-compliance with Title
19, other City of San Bernardino ordinances, codes and requirements, or
state law, and they failed to discontinue operating in a timely manner; or
(3) The applicant, permittee, or employee, or the owner of the property upon
which the proposed commercial cannabis activity is to occur, was found by
the appropriate taxing agency to have been in non-compliance with
federal, state or local tax laws or failed to report income from commercial
cannabis activities to federal, state, or local government in violation of law.
5.10.110 Expiration of Commercial Cannabis Business Permits
Each commercial cannabis business permit issued pursuant to this Chapter shall expire three
(3) years after the date of its issuance. Commercial cannabis business permits may be
renewed as provided in this Chapter.
5.10.120 Revocation of Permits
Commercial cannabis business permits may be suspended or revoked by the City Manager or
his/her designee for any violation of any law and/or any rule, regulation and/or standard
adopted pursuant to this Chapter.
5.10.130 Renewal Applications
(a) An application for renewal of a commercial cannabis business permit shall be filed at
least sixty (60) calendar days prior to the expiration date of the current permit.
(b) The renewal application shall contain all the information required for new
applications.
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(c) The applicant shall pay a fee in an amount to be set by Resolution of the Mayor and
City Council to cover the costs of processing the renewal permit application, together with
any costs incurred by the City to administer the program created under this Chapter.
(d) An application for renewal of a commercial cannabis business permit shall be rejected
if any of the following exists:
(1) The application for renewal is filed less than sixty (60) days before the
expiration of the commercial cannabis business permit.
(2) The commercial cannabis business permit is suspended or revoked at the time
of the application.
(3) The commercial cannabis business has not been in regular and continuous
operation in the four (4) months prior to the renewal application.
(4) The commercial cannabis business has failed to conform to the requirements of
this Chapter, or of any regulations adopted pursuant to this Chapter.
(5) The permittee fails or is unable to renew its State of California license.
(6) If the City has determined, based on substantial evidence, that the permittee or
applicant is in violation of the requirements of this Chapter, of the San
Bernardino Municipal Code, or of the state rules and regulations, and the City
or state has determined that the violation is grounds for termination or
revocation of the commercial cannabis business permit.
(e) The Community Development Director or his/her designee(s) is authorized to make all
decisions concerning the issuance of a renewal permit. In making the decision, the
Community Development Director or his/her designee(s) is authorized to impose additional
conditions to a renewal permit, if it is determined to be necessary to ensure compliance with
state or local laws and regulations or to preserve the public health, safety or welfare. Appeals
from the decision of the Community Development Director or his/her designee(s) shall be
handled pursuant to Sections 5.10.150, 5.10.160, and 5.10.170.
(f) If a renewal application is rejected, a person may file a new application pursuant to
this Chapter no sooner than one (1) year from the date of the rejection.
5.10.140 Effect of State License Suspension, Revocation, or Termination
Suspension of a license issued by the State of California, or by any of its departments or
divisions, shall immediately suspend the ability of a commercial cannabis business to operate
within the City, until the State of California, or its respective department or division, reinstates
or reissues the State license. Should the State of California, or any of its departments or
divisions, revoke or terminate the license of a commercial cannabis business, such revocation
or termination shall also revoke or terminate the ability of a commercial cannabis business to
operate within the City of San Bernardino.
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5.10.150 Appeals
Unless specifically provided elsewhere to the contrary, any determination of the Chief of
Police or Community Development Director, or the designees of either of them, may only be
appealed to the City Manager, which decision shall be final. The City Manager may delegate
the appeal to the City’s Administrative Law Officer (“Hearing Officer”) appointed in
conformity with Chapter 9.92 of this Code, in which case, the decision of the Hearing Officer
shall be final. All decisions of the Mayor and City Council, City Manager or Hearing Officer
under this Chapter shall be final. All appeals shall be conducted as prescribed in this Section,
Section 5.10.160 and Section 5.10.170.
5.10.160 Written Request for Appeal
(a) Within ten (10) calendar days after the date of the determination, an aggrieved party
may appeal such determination by filing a written appeal with the City Clerk setting forth the
reasons why the determination was not proper. If no appeal of a determination is made within
ten (10) days of the date of the determination, the determination shall be final.
(b) At the time of filing the appellant shall pay the designated appeal fee, established by
Resolution of the Mayor and City Council from time to time.
5.10.170 Appeal Hearing
(a) Upon receipt of the written appeal, the City Clerk shall set the matter for a hearing
before the City Manager, or if the appeal has been delegated to the Hearing Officer, before the
Hearing Officer. The City Manager or Hearing Officer shall hear the matter de novo, and shall
conduct the hearing pursuant to the procedures set forth by the City.
(b) The appeal shall be held within a reasonable time after the filing the appeal, but in no
event later than ninety (90) calendar days from the date of such filing. The City shall notify
the appellant of the time and location at least ten (10) calendar days prior to the date of the
hearing.
(c) At the hearing, the appellant may present any information they deem relevant to the
determination appealed. The formal rules of evidence and procedure applicable in a court of
law shall not apply to the hearing.
(d) At the conclusion of the hearing the City Manager or Hearing Officer may affirm,
reverse or modify the decision appealed.
5.10.180 Commercial Cannabis Business Permittee Selection Process
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(a) The Mayor and City Council shall adopt by Resolution, a procedure guideline and
Review Criteria by which the top applicants in each category of each commercial cannabis
business will be presented to the Mayor and City Council for a final determination at a public
hearing.
(b) The top final applicants for each category may be invited to attend the Mayor and City
Council meeting, only if requested by the City Manager or his/her designee where they may
be expected to make a public presentation introducing their team and providing an overview
of their proposal. In order to provide adequate time, presentations may be divided over more
than one meeting over multiple days as determined to be necessary.
(c) At least ten (10) calendar days prior to the hearing, notice of the hearing shall be sent
to all property owners located within six hundred (600) feet of the proposed business locations
of each of the finalists to be considered by the Mayor and City Council.
(d) The Mayor and City Council shall either deny or approve the final candidates and shall
select the top candidates in each category of the commercial cannabis businesses. The Mayor
and City Council’s decision as to the selection of the prevailing candidates shall be final.
(e) Official issuance of the commercial cannabis business permit(s), however, is
conditioned upon the prevailing applicant(s) obtaining all required land use approvals.
Following the Mayor and City Council’s selection, the prevailing applicant(s) shall apply to
the City’s Community Development Department to obtain any required land use approvals or
entitlements for the permittee’s location, if any. Land use approvals shall include compliance
with all applicable provisions of CEQA. The City Manager or his/her designee(s) shall
formally issue the commercial cannabis business permit(s) once the Community Development
Director or his/her designee(s) affirms that all of the required land use approvals have been
obtained.
(f) Issuance of a commercial cannabis business permit does not create a land use
entitlement or serve as a building permit. The commercial cannabis business permit shall only
be for a term of three (3) years, and shall expire at the end of the three (3) year period unless
it is renewed as provided herein. Furthermore, no permittee may begin operations,
notwithstanding the issuance of a permit, unless all of the state and local laws and regulations,
including but not limited to the requirements of this Chapter, applicable building permits, and
conditions of the commercial cannabis business permit, have been complied with. Until a state
license is available and obtained by the permittee, this means compliance with all provisions
of the Medical Cannabis Collective Laws as set forth at Section 5.10.060.
(g) Notwithstanding anything in this Chapter to the contrary, the Mayor and City Council
reserves the right to reject any or all applications if it determines it would be in the best
interest of the City, taking into account any health, safety and welfare impacts on the
community. Applicants shall have no right to a commercial cannabis business permit until a
permit is actually issued, and then only for the duration of the permit term. Each applicant
assumes the risk that, at any time prior to the issuance of a permit, the Mayor and City
Council may terminate or delay the program created under this Chapter or otherwise revise,
amend, or repeal this Chapter.
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(h) If an application is denied, a new application may not be filed for one (1) year from
the date of the denial.
(i) Each person granted a commercial cannabis business permit shall be required to pay
the permit fee established by resolution of the Mayor and City Council, to cover the costs of
administering the commercial cannabis business permit program created in this Chapter.
5.10.190 Updated Information
Within fifteen (15) calendar days of any other change in the information provided in the
application form or any change in status of compliance with the provisions of this Chapter,
including any change in the commercial cannabis business location or ownership or
management members, the applicant shall file an updated application form with the City
Manager or his/her designee(s) for review along with an application amendment fee, as set
forth in section 5.10.090 and 5.10.130.
5.10.200 Change in Ownership or Location
(a) The person granted a commercial cannabis business permit shall not transfer
ownership or control of the permit to another person unless and until the transferee obtains an
amendment to the permit from the City Manager or his/her designee stating that the transferee
is now the permittee. Such an amendment may be obtained only if the transferee files an
application with the City Manager or his/her designee in accordance with all provisions of this
Chapter (as though the transferee were applying for an original commercial cannabis business
permit) accompanied by a transfer fee in an amount set by Resolution of the Mayor and City
Council (or if not set, shall be the same amount as the application fee), and the City Manager
or his/her designee determines, after hearing, in accordance with this Chapter that the
transferee passed the background check required for permittees and meets all other
requirements of this Chapter. No transfer of ownership may occur within five (5) years of the
date the commercial cannabis business permit is originally issued, except as provided below.
(b) Commercial cannabis business permits issued through the grant of a transfer by the
City Manager or his/her designee shall be valid for a period of one year beginning on the day
the City Manager or his/her designee approves the transfer of the permit. Before the
transferee’s permit expires, the transferee shall apply for a renewal permit in the manner
required by this Chapter.
(c) Changes in ownership of a permittee’s business structure or a substantial change in the
ownership of a permittee business entity (changes that result in a change of more than 51% of
the original ownership), must be approved by the City Manager or his/her designee through
the transfer process contained in subsection (a). Failure to comply with this provision is
grounds for permit revocation.
(d) A permittee may change the form of business entity without applying to the City
Manager or his/her designee for a transfer of permit, provided that either:
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(1) The membership of the new business entity is substantially similar to the
original permit holder business entity (at least 51% of the membership is
identical), or
(2) If the original permittee is an unincorporated association, mutual or public
benefit corporation, agricultural or consumer cooperative corporation and
subsequently transitions to or forms a new business entity as allowed under the
MAUCRSA and to comply with Section 5.10.060, subdivision (b), provided
that the Board of Directors (or in the case of an unincorporated association, the
individual(s) listed on the City permit application) of the original permittee
entity are the same as the new business entity.
Although a transfer is not required in these two circumstances, the permit holder is required to
notify the City Manager in writing of the change within ten (10) calendar days of the change.
Failure to comply with this provision is grounds for permit revocation.
(e) No commercial cannabis business permit may be transferred when the City Manager
or his/her designee has notified the permittee that the permit has been or may be suspended or
revoked.
(f) Any attempt to transfer a commercial cannabis business permit either directly or
indirectly in violation of this section is hereby declared void, and such a purported transfer
shall be deemed a ground for revocation of the permit.
(g) The location specified in the commercial cannabis business permit may not change
without an amendment to the permit, processed in the same manner as an initial permit
pursuant to the process and fees set forth in Section 5.10.090.
5.10.210 City Business Registration Certificate
Prior to commencing operations, and at all times thereafter, a commercial cannabis business
shall maintain a valid City of San Bernardino business registration certificate.
5.10.220 Building Permits and Inspection
Prior to commencing operations, and at all times thereafter, a commercial cannabis business
shall be subject to a mandatory building inspection, and must obtain all required permits and
approvals which would otherwise be required for any business of the same size and intensity
operating in that zone. This includes but is not limited to obtaining any required building
permit(s), Fire Department approvals, Health Department approvals and other zoning and land
use permit(s) and approvals. No modifications to the structure of the premises shall be made
without required approvals listed above.
5.10.230 Certification from the Community Development Director
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Prior to commencing operations, a commercial cannabis business must obtain a certification
from the Community Development Director or his/her designee(s) certifying that the business
is located on a site that meets all of the requirements of Title 19 of this Code.
5.10.240 Right to Occupy and to Use Property
As a condition precedent to the City’s issuance of a commercial cannabis business permit
pursuant to this Chapter, any person intending to open and to operate a commercial cannabis
business shall provide sufficient evidence, which sufficiency shall be determined in the
reasonable discretion of the Mayor and City Council, of the legal right to occupy and to use
the proposed location for the proposed commercial cannabis activity. In the event the
proposed location will be leased from another person, the applicant shall be required to
provide a signed and notarized statement from all owners of the property, acknowledging that
the property owners have read this Chapter and consent to the operation of the commercial
cannabis business on the owner’s property.
5.10.250 Location and Design of Cannabis Businesses
Commercial cannabis businesses are permitted to engage in commercial cannabis activities
subject to the following zoning and locational requirements:
(a) The commercial cannabis business must be located on property zoned CG
(Commercial General), CG -2 (Commercial General-2), CG-3 (Commercial General -3), CR-
2 (Commercial Regional-Downtown), CR-3 (Commercial-Tri-City-Club), CCS-1 (Central
City South), CCS-2 (Central City), CH (Commercial Heavy), IL (Industrial Light), IH
(Industrial Heavy), OIP (Office Industrial Park), or as such successor zones as may be
created by the Mayor and City Council from time to time, and must meet all of the
requirements for development in these zones; and
(b) The property on which the cannabis business is located must also meet all of the
distance requirements listed below in subsections (b)(1)-(3), unless the Mayor and City
Council adopt an ordinance allowing for a lesser distance. All distances shall be the
horizontal distance measured in a straight line from exterior parcel line to exterior parcel line
without regard to intervening structures, except as listed in subsection (b)(4).
(1) The parcel shall be no closer than six hundred (600) feet of any residentially
zoned or residentially used parcel in the City, the City’s sphere of influence, a
neighboring incorporated city, or unincorporated county.
(2) The parcel shall be no closer than six hundred (600) feet from any parcel in the
City, the City’s sphere of influence, a neighboring incorporated city, or
unincorporated county containing any of the following:
A. A school providing instruction in kindergarten or any grades 1 through
12, (whether public, private, or charter, including pre-school,
transitional kindergarten, and K-12) that is in existence at the time the
permit is issued;
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B. A commercial daycare center licensed by the City, another city, or
County that is in existence at the time the permit is issued;
C. A youth center that is in existence at the time the permit is issued; or
D. A park that is in existence at the time the permit is issued.
(3) The City shall consider the proximity of the proposed commercial cannabis
business to religious facilities and libraries in existence at the time the permit is
granted when determining whether the issue the permit and any conditions
thereto.
(4) For the purposes of this subsection (b), the distance measurement shall be
without regard to intervening structures, with the exception of the following, in
which case the distance measurement shall be the shortest path of travel
around the listed intervening structures:
A. Freeways;
B. Flood control channels;
C. Railroads;
D. The Santa Ana River.
(c) Each proposed cannabis business project shall:
(1) Conform with the City’s general plan, any applicable specific plans, master plans,
and design requirements;
(2) Comply with all applicable zoning and related development standards;
(3) Be constructed in a manner that minimizes odors to surrounding uses, and
promotes quality design and construction, and consistency with the surrounding
properties;
(4) Be adequate in size and shape to accommodate the yards, walls, fences, parking
and loading facilities, landscaping and all items required for the development;
(5) Be served by highways adequate in width and improved as necessary to carry the
kind and quantity of traffic such use will generate; and
(6) Be provided with adequate electricity, sewage, disposal, water, fire protection and
storm drain facilities for the intended purpose.
5.10.260 Limitations on City’s Liability
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To the fullest extent permitted by law, the City of San Bernardino shall not assume any
liability whatsoever with respect to having issued a commercial cannabis business permit
pursuant to this Chapter or otherwise approving the operation of any commercial cannabis
business. As a condition to the approval of any commercial cannabis business permit, the
applicant shall be required to meet all of the following conditions before they can receive the
commercial cannabis business permit:
(a) They must execute an agreement, in a form approved by the City Attorney, agreeing to
indemnify, defend (at applicant’s sole cost and expense), and hold the City of San Bernardino,
and its elected officials, officers, employees, representatives, and agents, harmless, from any
and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in
any way related to, the City’s issuance of the commercial cannabis business permit, the City’s
decision to approve the operation of the commercial cannabis business or activity, to the
process used by the City in making its decision, or the alleged violation of any federal, state
or local laws by the commercial cannabis business or any of its officers, employees or agents.
(b) Maintain insurance at coverage limits, and with conditions thereon determined
necessary and appropriate from time to time by the City Manager or his/her designee.
(c) Reimburse the City of San Bernardino for all costs and expenses, including but not
limited to legal fees and costs and court costs, which the City of San Bernardino may be
required to pay as a result of any legal challenge related to the City’s approval of the
applicant’s commercial cannabis business permit, or related to the City’s approval of a
commercial cannabis activity. The City of San Bernardino may, at its sole discretion,
participate at its own expense in the defense of any such action, but such participation shall
not relieve any of the obligations imposed hereunder.
5.10.270 Records and Recordkeeping
(a) Each person granted a commercial cannabis business shall maintain accurate books
and records in an electronic format, detailing all of the revenues and expenses of the business,
and all of its assets and liabilities. On no less than an annual basis (at or before the time of the
renewal of a commercial cannabis business permit issued pursuant to this Chapter), or at any
time upon reasonable request of the City Manager or his/her designee, each commercial
cannabis business shall file a sworn statement detailing the number of sales by the commercial
cannabis business during the previous twelve-month period (or shorter period based upon the
timing of the request), provided on a per-month basis. The statement shall also include gross
sales for each month, and all applicable taxes paid or due to be paid, including, but not limited
to, employee withholdings. On an annual basis, each permittee shall submit to the City a
financial audit of the business’s operations conducted by an independent certified public
accountant. At the request of the City Manager, or his/her designee, the each permittee shall
provide copies of the last three (3) years of their local, state and federal tax returns so that the
City may verify the information provided above. Each permittee shall be subject to a
regulatory compliance review and financial audit as determined by the City Manager or
his/her designee(s).
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(b) Each person granted a commercial cannabis business shall maintain a current register
of the names and the contact information (including the name, address, and telephone number)
of anyone owning or holding an interest in the commercial cannabis business, and separately
of all the officers, managers, employees, and agents currently employed or otherwise engaged
by the commercial cannabis business. The register required by this paragraph shall be
provided to the City Manager or his/her designee(s) upon a reasonable request.
(c) Prior to state licensing, each commercial cannabis business shall maintain a record of
all persons, patients, collectives and primary caregivers served by the commercial cannabis
business, for a period of no less than four (4) years. Once a state license is obtained, the
commercial cannabis business must maintain such records only to the extent permitted or
required by the MAUCRSA.
(d) All commercial cannabis businesses shall maintain an inventory control and reporting
system that accurately documents the present location, amounts, and descriptions of all
cannabis and cannabis products for all stages of the growing and production or manufacturing,
laboratory testing and distribution processes until purchase as set forth MAUCRSA.
Additionally, all commercial cannabis businesses shall maintain records that identify the
source of all products (company name, location, license numbers etc.).
(e) Subject to any restrictions under the Health Insurance Portability and Accountability
Act (HIPAA) regulations, each commercial cannabis business shall allow the City of San
Bernardino officials to have access to the business’s books, records, accounts, together with
any other data or documents relevant to its permitted commercial cannabis activities, for the
purpose of conducting an audit or examination. Books, records, accounts, and any and all
relevant data or documents will be produced no later than twenty-four (24) hours after receipt
of the City’s request, unless otherwise stipulated by the City. The City may require the
materials to be submitted in an electronic format that is compatible with the City’s software
and hardware.
5.10.280 Security Measures
(a) A commercial cannabis business shall implement sufficient security measures to deter
and prevent the unauthorized entrance into areas containing cannabis or cannabis products,
and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis
business. Except as may otherwise be determined by the City Manager or his/her designee(s),
these security measures shall include, but shall not be limited to, all of the following:
(1) Preventing individuals from remaining on the premises of the commercial
cannabis business if they are not engaging in an activity directly related to the
permitted operations of the commercial cannabis business.
(2) Establishing limited access areas accessible only to authorized commercial
cannabis business personnel.
(3) Except for live growing plants which are being cultivated at a cultivation
facility, all cannabis and cannabis products shall be stored in a secured and
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locked room, safe, or vault. All cannabis and cannabis products, including live
plants that are being cultivated, shall be kept in a manner as to prevent
diversion, theft, and loss,
(4) Installing 24-hour security surveillance cameras of at least HD-quality to
monitor all entrances and exits to and from the premises, all interior spaces
within the commercial cannabis business which are open and accessible to the
public, all interior spaces where cannabis, cash or currency, is being stored for
any period of time on a regular basis and all interior spaces where diversion of
cannabis could reasonably occur. Cameras shall clearly show each point of sale
location, register with a time/date stamp. The commercial cannabis business
shall be responsible for ensuring that the security surveillance camera’s footage
is remotely accessible by the City Manager or his/her designee(s), and that it is
compatible with the City’s software and hardware. In addition, remote and
real-time, live access to the video footage from the cameras shall be provided
to the City Manager or his/her designee(s). Video recordings shall be
maintained for a minimum of one hundred twenty (120) days, and shall be
made available to the City Manager or his/her designee(s) upon request. Video
shall be of sufficient quality for effective prosecution of any crime found to
have occurred on the site of the commercial cannabis business.
(5) Sensors shall be installed to detect entry and exit from all secure areas.
(6) Panic buttons shall be installed in all commercial cannabis businesses.
(7) Having a professionally installed, maintained, and monitored alarm system.
The owner and operator shall be subject to the City’s security alarm systems
requirements of Chapter 8.81 of this Code.
(8) Any bars installed on the windows or the doors of the commercial cannabis
business shall be installed only on the interior of the building as approved by
the Community Development Department and Fire Department.
(9) Security personnel shall be on-site 24 hours a day or alternative security as
authorized by the City Manager or his/her designee(s). Security personnel must
be licensed by the State of California Bureau of Security and Investigative
Services personnel and shall be subject to the prior review and approval of the
City Manager or his/her designee(s), with such approval not to be unreasonably
withheld.
(10) Each commercial cannabis business shall have the capability to remain secure
during a power outage and shall ensure that all access doors are not solely
controlled by an electronic access panel to ensure that locks are not released
during a power outage.
(b) Each commercial cannabis business shall identify a designated security
representative/liaison to the City of San Bernardino, who shall be reasonably available to meet
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with the City Manager or his/her designee(s) regarding any security related measures or and
operational issues. The commercial cannabis business shall notify the City Manager or his/her
designee within twenty four (24) hours of a change in designated security
representative/liaison.
(c) As part of the application and permitting process each commercial cannabis business
shall have a storage and transportation plan, which describes in detail the procedures for
safely and securely storing and transporting all cannabis, cannabis products, and any currency.
(d) The commercial cannabis business shall cooperate with the City whenever the City
Manager or his/her designee(s) makes a request, upon reasonable notice to the commercial
cannabis business, to inspect or audit the effectiveness of any security plan or of any other
requirement of this Chapter.
(e) A commercial cannabis business shall notify the City Manager or his/her designee(s)
within twenty-four (24) hours after discovering any of the following:
(1) Significant discrepancies identified during inventory. The level of significance
shall be determined by the regulations promulgated by the City Manager or
his/her designee(s).
(2) Diversion, theft, loss, or any criminal activity involving the commercial
cannabis business or any agent or employee of the commercial cannabis
business.
(3) The loss or unauthorized alteration of records related to cannabis, registering
qualifying patients, primary caregivers, or employees or agents of the
commercial cannabis business.
(4) Any other breach of security.
5.10.290 Restriction on Alcohol & Tobacco Sales
(a) No person shall cause or permit the sale, dispensing, or consumption of alcoholic
beverages to any person, including minors, on or about the property occupied by the
commercial cannabis business.
(b) No person shall cause or permit the sale of tobacco products to any person, including
minors, on or about the property occupied by the commercial cannabis business.
5.10.300 Fees and Charges
(a) No person may commence or continue any commercial cannabis activity in the City,
without timely paying in full all fees and charges required for the operation of a commercial
cannabis activity. Fees and charges associated with the operation of a commercial cannabis
activity shall be established by Resolution of the Mayor and City Council which may be
amended from time to time. Such fees and charges may include, but are not limited to, a
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regulatory fee imposed for the reasonable regulatory costs to the City for issuing licenses and
permits, performing investigations, inspections, and audits, and the administrative and
criminal enforcement and adjudication thereof.
(b) All commercial cannabis businesses authorized to operate under this Chapter shall pay
all sales, use, business, employment and other applicable taxes, and all license, registration,
and other fees required under federal, state and local law. Each commercial cannabis business
shall cooperate with City with respect to any reasonable request to audit the commercial
cannabis business’ books and records for the purpose of verifying compliance with this
section, including but not limited to a verification of the amount of taxes required to be paid
during any period.
5.10.310 Miscellaneous Operating Requirements
(a) Commercial cannabis businesses may operate only during the hours specified in the
commercial cannabis business permit issued by the City.
(b) On-site consumption of cannabis is prohibited at all times by all individuals on the
property.
(c) No cannabis or cannabis products or graphics depicting cannabis or cannabis products
shall be visible from the exterior of any property issued a commercial cannabis business
permit, or on any of the vehicles owned or used as part of the commercial cannabis business.
No outdoor storage of cannabis or cannabis products is permitted at any time.
(d) Reporting and Tracking of Product and of Gross Sales. Each commercial cannabis
business shall have in place a point-of-sale or management inventory tracking system to track
and report on all aspects of the commercial cannabis business including, but not limited to,
such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), time
and date of each sale and other information which may be deemed necessary by the City. The
commercial cannabis business shall ensure that such information is compatible with the City’s
record-keeping systems. In addition, the system must have the capability to produce historical
transactional data for review. Furthermore, any system selected must be approved and
authorized by the City Manager or his/her designee(s) prior to being used by the permittee.
(e) All cannabis and cannabis products sold, distributed or manufactured shall be
cultivated, manufactured, and transported by licensed facilities that maintain operations in full
conformance with the State and local regulations. No cannabis or cannabis products may be
sold, distributed, or transferred out of the State.
(f) There shall not be a physician located in or around any commercial cannabis business
at any time for the purpose of evaluating patients for the issuance of a cannabis
recommendation or card where applicable.
(g) Prior to dispensing medicinal cannabis or medicinal cannabis products where
applicable to any person, the commercial medicinal cannabis business shall obtain verification
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from the recommending physician that the person requesting medicinal cannabis or medicinal
cannabis products is a qualified patient.
(h) Emergency Contact. Each commercial cannabis business shall provide the City
Manager or his/her designee(s) with the name, telephone number (both land line and mobile,
if available) of an on-site employee or owner to whom emergency notice can be provided at
any hour of the day. The commercial cannabis business shall notify the City Manager or
his/her designee within twenty four (24) hours of a change in the emergency contact.
(i) Signage and Notices.
(1) In addition to the requirements otherwise set forth in this section, business
identification signage for a commercial cannabis business shall conform to the
requirements of Chapter 19.22 of this Code, including, but not limited to,
seeking the issuance of a City sign permit.
(2) No signs placed on the premises of a commercial cannabis business shall
obstruct any entrance or exit to the building or any window.
(3) Each entrance to a commercial cannabis business shall be visibly posted with a
clear and legible notice indicating that smoking, ingesting, or otherwise
consuming cannabis on the premises or in the areas adjacent to the commercial
cannabis business is prohibited.
(4) Business identification signage shall be limited to that needed for identification
only and shall not contain any logos or information that identifies, advertises,
or lists the services or the products offered. No commercial cannabis business
shall advertise by having a person holding a sign and advertising the business
to passersby, whether such person is on the premises of the commercial
cannabis business or elsewhere including, but not limited to, the public right-
of-way.
(5) [Repealed]
(6) In accordance with state law and regulations or as stipulated in the City of San
Bernardino commercial cannabis business permit, holders of a commercial
cannabis business permit shall agree that, as an express and ongoing condition
of permit issuance and subsequent renewal, the holder of the permit shall be
prohibited from advertising any commercial cannabis business located in the
City of San Bernardino utilizing a billboard (fixed or mobile), bus shelter,
placard, aircraft, or other similar forms of advertising, anywhere in the state.
This paragraph is not intended to place limitations on the ability of a
commercial cannabis business to advertise in other legally authorized forms,
including on the internet, in magazines, or in other similar ways.
(j) Minors.
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(1) Persons under the age of twenty-one (21) years shall not be allowed on the
premises of a commercial cannabis business and shall not be allowed to serve
as a driver for a mobile delivery service. It shall be unlawful and a violation of
this Chapter for any person to employ any person at a commercial cannabis
business who is not at least twenty-one (21) years of age. Except as provided
for under section 5.10.330 (c ).
(2) The entrance to the commercial cannabis business shall be clearly and legibly
posted with a notice that no person under the age of twenty-one (21) years of
age is permitted to enter upon the premises of the commercial cannabis
business. Except as provided for under section 5.10.330 (c ).
(k) Odor Control. Odor control devices and techniques shall be incorporated in all
commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site.
Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and
exhaust system so that odor generated inside the commercial cannabis business that is
distinctive to its operation is not detected outside of the facility, anywhere on adjacent
property or public rights-of-way, on or about the exterior or interior common area walkways,
hallways, breezeways, foyers, lobby areas, or any other areas available for use by common
tenants or the visiting public, or within any other unit located inside the same building as the
commercial cannabis business. As such, commercial cannabis businesses must install and
maintain the following equipment, or any other equipment which the Community
Development Director or his/her designee(s) determine is a more effective method or
technology:
(1) An exhaust air filtration system with odor control that prevents internal odors
from being emitted externally;
(2) An air system that creates negative air pressure between the commercial
cannabis business’s interior and exterior, so that the odors generated inside the
commercial cannabis business are not detectable on the outside of the
commercial cannabis business.
(l) Display of Permit and City Business License. The original copy of the commercial
cannabis business permit issued by the City pursuant to this Chapter and the City issued
business license shall be posted inside the commercial cannabis business in a location readily-
visible to the public.
(m) Background Check. Every person listed as an owner, manager, or supervisor of the
commercial cannabis business must submit fingerprints and other information deemed
necessary by the Chief of Police or his/her designee(s) for a background check by the City of
San Bernardino’s Police Department pursuant to California Penal Code Sections 11105(b)(11)
and 13300(b)(11), which authorizes City authorities to access state and local summary
criminal history information for employment, licensing, or certification purposes; and
authorizes access to federal level criminal history information by transmitting fingerprint
images and related information to the Department of Justice to be transmitted to the Federal
Bureau of Investigation. Pursuant to California Penal Sections 11105(b)(11) and
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13300(b)(11), which requires that there be a requirement or exclusion from employment,
licensing or certification based on specific criminal conduct on the part of the subject of the
record, no person shall be issued a permit to operate a commercial cannabis business unless
they have first cleared the background check, as determined by the Chief of Police or his/her
designee(s). A fee for the cost of the background investigation, which shall be the actual cost
to the City of San Bernardino to conduct the background investigation as it deems necessary
and appropriate, shall be paid at the time the application for a commercial cannabis business
permit is submitted.
(n) Loitering. The owner and/or operator of a commercial cannabis business shall prohibit
loitering by persons outside the facility both on the premises and within fifty (50) feet of the
premises.
(o) Permits and other Approvals. Prior to the establishment of any commercial cannabis
business or the operation of any such business, the person intending to establish a commercial
cannabis business must first obtain all applicable planning, zoning, building, and other
applicable permits from the relevant governmental agency which may be applicable to such
commercial cannabis business.
(p) If the commercial cannabis business permittee is operating as a collective or
cooperative under Health and Safety Code Section 11362.775, subdivision (a), the
commercial cannabis business shall terminate the membership of any member violating any of
the provisions of this Chapter.
(q) The interior and exterior of the premises of the commercial cannabis business shall be
well lit at all times. The windows of the building shall provide an unobstructed view into the
interior.
5.10.320 Other Operational Requirements
The City Manager or his/her designee may develop other commercial cannabis business
operational requirements or regulations as are determined to be necessary to protect the public
health, safety and welfare.
5.10.330 Operating Requirements for Retailer Facilities; Delivery
(a) No more than the number of retailers adopted by resolution may operate within the
City of San Bernardino at any one time and no more than that number adopted by resolution
shall be issued a permit by the City of San Bernardino to operate a retailer at one time. Both
retailers offering storefront purchase (customers purchase and obtain cannabis onsite) and
retailers offering delivery only shall be permitted. Each shall be required to maintain a
physical location from which commercial cannabis activities are conducted that are permitted
under this Chapter.
(b) Retailers may only deliver to customers within a county or city that does not expressly
prohibit delivery by ordinance. Retailers may only deliver to customers within the City of San
Bernardino after obtaining a commercial cannabis business permit issued under the Chapter.
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Security plans developed pursuant to this chapter shall include provisions relating to vehicle
security and the protection of employees and product during loading and in transit.
(c) M-licensee retailers must verify the age and all necessary documentation of each
customer to ensure the customer is not under the age of eighteen (18) years and that the
potential customer has a valid doctor's recommendation. A-licensee retailers must verify the
age of customers to ensure persons under the age of twenty-one (21) are not permitted.
(d) Entrances into the retailer shall be locked at all times with entry strictly controlled. A
"buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to
the retailer to separate it from the reception/lobby area.
(e) Uniformed licensed security personnel shall be employed to monitor site activity,
control loitering and site access, and to serve as a visual deterrent to unlawful activities.
(f) Retailers may have only that quantity of cannabis and cannabis products reasonably
anticipated to meet the daily demand readily available for sale on-site in the publically
accessible retail sales area of the retailer.
(g) All restroom facilities shall remain locked and under the control of management.
5.10.340 Operating Requirements for Commercial Cultivation Facilities
(a) All outdoor (i.e. open air) cultivation is prohibited. The cultivation of all cannabis
must occur indoors or within mixed light structures.
(b) In no case, shall cannabis plants be discernable from a public or private road,
sidewalk, park or any common public viewing area.
(c) A permittee permitted to engage in commercial cannabis cultivation in the City of San
Bernardino shall only be allowed to cultivate the square feet of canopy space permitted by
state law.
(d) Cannabis cultivation shall be conducted in accordance with state and local laws related
to land conversion, grading, electricity, water usage, water quality, woodland and riparian
habitat protection, agricultural discharges, and similar matters.
(e) Pesticides and fertilizers shall be properly labeled and stored to avoid contamination
through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.
(f) The cultivation of cannabis shall at all times be operated in such a way as to ensure the
health, safety, and welfare of the public, the employees working at the commercial cannabis
business, visitors to the area, neighboring properties, and the end users of the cannabis being
cultivated, to protect the environment from harm to streams, fish, and wildlife; to ensure the
security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.
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(g) All applicants for a cannabis cultivation permit shall submit the following in addition
to the information generally otherwise required for a commercial cannabis business:
(1) A cultivation and operations plan that meets or exceeds minimum legal
standards for water usage, conservation and use; drainage, runoff, and erosion
control; watershed and habitat protection; and proper storage of fertilizers,
pesticides, and other regulated products to be used on the parcel, and a
description of the cultivation activities (indoor, mixed-light) and schedule of
activities during each month of growing and harvesting, or explanation of
growth cycles and anticipated harvesting schedules for all-season harvesting
(indoor, mixed-light).
(2) A description of a legal water source, irrigation plan, and projected water use.
(3) Identification of the source of electrical power and plan for compliance with
applicable Building Codes and related codes.
(4) Plan for addressing odor and other public nuisances that may derive from the
cultivation site.
5.10.350 Operating Requirements for Testing Labs
(a) Testing Labs shall be required to conduct all testing in a manner pursuant to Business
and Professions Code Section 26100, et seq., and shall be subject to state and local law. Each
Testing Lab shall be subject to additional regulations as determined from time to time as more
regulations are developed under this Chapter and any subsequent State of California
legislation regarding the same.
(b) Testing Labs shall conduct all testing in a manner consistent with general requirements
for the competence of testing and calibrations activities, including sampling using verified
methods.
(c) Testing Labs shall obtain and maintain ISO/IEC 17025 accreditation as required by the
bureau.
(d) Testing Labs shall destroy any harvest batch whose testing sample indicates
noncompliance with health and safety standards required by the bureau unless remedial
measures can bring the cannabis or cannabis products into compliance with quality standards
as specified by law and implemented by the bureau.
(e) Each operator of a Testing Lab shall ensure that any Testing Lab employee takes the
sample of cannabis or cannabis products from the distributor’s premises for testing as required
by state law and that the Testing Lab employee transports the sample to the Testing Lab.
(f) Except as provided by state law, a Testing Lab shall not acquire or receive cannabis or
cannabis products except from a licensee in accordance with state law, and shall not
distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from
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which the cannabis or cannabis products were acquired or received. All transfer or
transportation shall be performed pursuant to a specified chain of custody protocol.
(g) A Testing Lab may receive and test samples of cannabis or cannabis products from a
qualified patient or primary caregiver only if the qualified patient or primary caregiver
presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal
purpose. A Testing Lab shall not certify samples from a qualified patient or primary caregiver
for resale or transfer to another party or licensee. All tests performed by a Testing Lab for a
qualified patient or primary caregiver shall be recorded with the name of the qualified patient
or primary caregiver and the amount of the cannabis or cannabis products received.
5.10.360 Cannabis Manufacturing: Edibles and Other Cannabis Products; Sale or
Distribution of Edible and Other Cannabis Products
(a) In addition to any locational restrictions contained within this Chapter, manufacturers
requiring a Type-6, or Type-7 or any subsequent created manufacturing state license (using
non-volatile and volatile solvents) as defined in MAUCRSA, may only be permitted to
operate within those zone districts as similar manufacturing activities under Title 19 of this
Code.
(b) Any compressed gases used in the manufacturing process shall not be stored on any
property within the City of San Bernardino in containers that exceeds the amount which is
approved by Fire Department and authorized by the commercial cannabis business permit.
Each site or parcel subject to a commercial cannabis business permit shall be limited to a total
number of tanks as authorized by the Fire Department on the property at any time.
(c) Manufacturers may use the hydrocarbons N-butane, isobutane, propane, or heptane or
other solvents or gases exhibiting low to minimal potential human-related toxicity approved
by both the Community Development Department and Fire Department. These solvents must
be of at least ninety-nine percent purity and any extraction process must use them in a
professional grade closed loop extraction system designed to recover the solvents and work in
an environment with proper ventilation, controlling all sources of ignition where a flammable
atmosphere is or may be present.
(d) If an extraction process uses a professional grade closed loop CO₂ gas extraction
system every vessel must be certified by the manufacturer for its safe use as referenced in
5.10.360 (f). The CO₂ must be of at least ninety-nine percent purity.
(e) Closed loop systems for compressed gas extraction systems must be commercially
manufactured and bear a permanently affixed and visible serial number.
(f) Certification from an engineer licensed by the State of California must be provided to
the Community Development Department for a professional grade closed loop system used by
any commercial cannabis manufacturing manufacturer to certify that the system was
commercially manufactured, is safe for its intended use, and was built to codes of recognized
and generally accepted good engineering practices, including but not limited to:
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(1) The American Society of Mechanical Engineers (ASME);
(2) American National Standards Institute (ANSI);
(3) Underwriters Laboratories (UL); or
(4) The American Society for Testing and Materials (ASTM).
(g) The certification document must contain the signature and stamp of the professional
engineer and serial number of the extraction unit being certified.
(h) Professional closed loop systems, other equipment used, the extraction operation, and
facilities must be approved for their use by the Fire Department and meet any required fire,
safety, and building code requirements specified in the California Building Reference Codes.
(i) Manufacturers may use heat, screens, presses, steam distillation, ice water, and other
methods without employing solvents or gases to create keef, hashish, bubble hash, or infused
dairy butter, or oils or fats derived from natural sources, and other extracts.
(j) Manufacturers may use food grade glycerin, ethanol, and propylene glycol solvents to
create or refine extracts. Ethanol should be removed from the extract in a manner to recapture
the solvent and ensure that it is not vented into the atmosphere.
(k) Manufacturers creating cannabis extracts must develop standard operating procedures,
good manufacturing practices, and a training plan prior to producing extracts for the
marketplace.
(l) Any person using solvents or gases in a closed looped system to create cannabis
extracts must be fully trained on how to use the system, have direct access to applicable
material safety data sheets and handle and store solvents and gases safely.
(m) Parts per million for one gram of finished extract cannot exceed state standards for any
residual solvent or gas when quality assurance tested.
5.10.370 Promulgation of Regulations, Standards and Other Legal Duties
(a) In addition to any regulations adopted by the Mayor and City Council, the City
Manager or his/her designee is authorized to establish, subject to approval by the Mayor and
City Council, any additional rules, regulations and standards governing the issuance, denial or
renewal of commercial cannabis business permits, the ongoing operation of commercial
cannabis businesses and the City's oversight, or concerning any other subject determined to be
necessary to carry out the purposes of this Chapter.
(b) Regulations shall be published on the City’s website.
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(c) Regulations promulgated by the City Manager or his/her designee shall become
effective upon date of publication. Commercial cannabis businesses shall be required to
comply with all state and local laws and regulations, including but not limited to any rules,
regulations or standards adopted by the City Manager or his/her designee.
(d) Testing Labs and Distribution facilities shall be subject to state law and shall be
subject to additional regulations as determined from time to time as more regulations are
developed under Section 5.10.350 (a) of this Chapter and any subsequent State of California
legislation regarding the same.
5.10.380 Community Relations
(a) Each commercial cannabis business shall provide the name, telephone number, and
email address of a community relations contact to whom notice of problems associated with
the commercial cannabis business can be provided. Each commercial cannabis business shall
also provide the above information to all businesses and residences located within one
hundred (100) feet of the commercial cannabis business. The commercial cannabis business
shall notify the City Manager or his/her designee within twenty four (24) hours of a change in
community relations contact.
(b) During the first year of operation pursuant to this Chapter, the owner, manager, and
community relations representative from each commercial cannabis business holding a permit
issued pursuant to this Chapter shall attend meetings with the City Manager or his/her
designee(s), and other interested parties as deemed appropriate by the City Manager or his/her
designee(s), to discuss costs, benefits, and other community issues arising as a result of
implementation of this Chapter. After the first year of operation, the owner, manager, and
community relations representative from each such commercial cannabis business shall meet
with the City Manager or his/her designee(s) when and as requested by the City Manager or
his/her designee(s).
(c) Commercial cannabis businesses to which a permit is issued pursuant to this Chapter
shall develop a City approved public outreach and educational program for youth
organizations and educational institutions that outlines the risks of youth addiction to
cannabis, and that identifies resources available to youth related to drugs and drug addiction.
5.10.390 Fees Deemed Debt to the City of San Bernardino
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a
debt to the City of San Bernardino that is recoverable via an authorized administrative process
as set forth by ordinance, or in any court of competent jurisdiction.
5.10.400 Permittee Responsible for Violations
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The person to whom a permit is issued pursuant to this Chapter shall be responsible for all
violations of the laws of the State of California or of the regulations and/or the ordinances of
the City of San Bernardino, whether committed by the permittee or any employee or agent of
the permittee, which violations occur in or about the premises of the commercial cannabis
business whether or not said violations occur within the permittee’s presence.
5.10.410 Inspection and Enforcement
(a) The City Manager, Chief of Police or designee of either of them charged with
enforcing the provisions of this Chapter, or any provision thereof, may enter the location of a
commercial cannabis business at any time, without notice, and inspect the location of any
commercial cannabis business as well as any recordings and records required to be maintained
pursuant to this Chapter or under applicable provisions of State law.
(b) It is unlawful for any person having responsibility over the operation of a commercial
cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to
conduct an inspection, review or copy records, recordings or other documents required to be
maintained by a commercial cannabis business under this Chapter or under state or local law.
It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records,
recordings or other documents required to be maintained by a commercial cannabis business
under this Chapter or under state or local law.
(c) The City Manager, Chief of Police or designee of either of them charged with
enforcing the provisions of this Chapter may enter the location of a commercial cannabis
business at any time during the hours of operation and without notice to obtain samples of the
cannabis to test for public safety purposes. Any samples obtained by the City of San
Bernardino shall be logged, recorded, and maintained in accordance with established
procedures by the San Bernardino Police Department or regulations adopted pursuant to the
authority of this Chapter.
5.10.420 Compliance with State Regulation
It is the stated intent of this Chapter to regulate commercial cannabis activity in the City of
San Bernardino in compliance with all provisions MAUCRSA and any subsequent state
legislation.
5.10.430 Violations declared a public nuisance
Each and every violation of the provisions of this Chapter is hereby deemed unlawful and a
public nuisance and may be summarily abated by the City Manager, Chief of Police, or
designee of either of them. The City may recover any nuisance abatement costs and/or
administrative fines relating to such violations in accordance with Government Code Sections
38773.1 and 38773.5 in accordance with Chapter 8.30 of this Code.
5.10.440 Each violation a separate offense
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Each and every violation of this Chapter shall constitute a separate violation and shall be
subject to all remedies and enforcement measures authorized by the City of San Bernardino.
Additionally, as a nuisance per se, any violation of this Chapter shall be subject to injunctive
relief, any permit issued pursuant to this Chapter being deemed null and void, disgorgement
and payment to the City for any monies unlawfully obtained, costs of abatement, costs of
investigation, attorney fees, and any other relief or remedy available at law or in equity. The
City of San Bernardino may also pursue any and all remedies and actions available and
applicable under state and local laws for any violations committed by the commercial
cannabis business or persons related to, or associated with, the commercial cannabis activity.
Additionally, when there is determined to be an imminent threat to public health, safety or
welfare, the City Manager, Chief of Police or designee of either of them, may take immediate
action to temporarily suspend a commercial cannabis business permit issued by the City,
pending a hearing before the City Manager, or his/her designee(s).
5.10.450 Criminal Penalties
Any person causing, permitting, aiding, abetting, suffering or concealing a violation of this
Chapter shall be guilty of a misdemeanor, and may, in the discretion of the City Attorney, be
prosecuted as a misdemeanor and upon conviction be subject to a fine not to exceed one
thousand dollars ($1,000) or imprisonment in the city or county jail for a period of not more
than six (6) months, or by both such fine and imprisonment. The City Attorney, in his or her
sound discretion, may prosecute a violation of this Chapter as an infraction, rather than a
misdemeanor, or reduce or agree to the reduction of a previously filed misdemeanor to an
infraction. Any person convicted of an infraction under this provisions of this Chapter shall be
punished by a fine not exceeding one hundred dollars ($100) for the first violation, a fine not
exceeding two hundred dollars ($200) for a second violation within one year, and a fine not
exceeding five hundred dollars ($500) for a third violation within one year. A fourth violation
of this Chapter within one year shall be charged as a misdemeanor and may not be reduced to
an infraction. Each day a violation is committed or permitted to continue shall constitute a
separate offense.
5.10.460 Remedies cumulative and not exclusive
The remedies provided herein are not to be construed as exclusive remedies. The City is
authorized to pursue any proceedings or remedies provided by law.
SECTION 4. REPEAL
All previous ordinances related to the establishment and operation of commercial cannabis
activities within the City of San Bernardino, and to the extent that such ordinances may be in
force before or at the time this Ordinance takes effect, including, without limitation, and to the
extent that such ordinances may be in force before or at the time this Ordinance takes effect,
the San Bernardino Regulate Marijuana Act of 2016, commonly known as Measure O, which
appeared on the ballot in the City of San Bernardino at a Special Municipal Election held on
November 8, 2016, and the San Bernardino Medical Cannabis Restrictions and Limitations
Act, commonly known as Measure N, which appeared on the ballot in the City of San
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Bernardino at a Special Municipal Election held on November 8, 2016the moratorium
established by Ordinance No. MC-1452, are hereby repealed and shall be of no further effect
from the effective date of this Ordinance.
SECTION 5. ADDITIONAL FINDINGS
5.1 GENERAL PLAN
The Ordinance is consistent with the General Plan. The people Mayor and City Council of the
City of San Bernardino find that the Ordinance is consistent with the General Plan. The
Ordinance proposes a comprehensive regulatory system for commercial cannabis activities.
The regulations include numerical, locational, design, operating, security and sensitive-use
distance regulations on commercial cannabis activities. The Ordinance includes review and
recommendations of applications for commercial cannabis activities, which will be overseen
by the City Manager, and will include the Police Department and Planning Division of the
Community Development Department. The Ordinance is also consistent with the following
General Plan goals and policies:
Policy 2.2.8 requires the City to control the location and
number of community-sensitive uses, such as alcohol sales,
adult bookstores and businesses, game arcades, and similar
uses based on proximity to residences, schools, religious
facilities, and parks.
The Ordinance establishes a maximum number of permitted commercial
cannabis activities within the City. The Ordinance also establishes locational
restrictions, including zoning and distance restrictions. The Ordinance
establishes a distance buffer between commercial cannabis activities and
residential zones and uses. The Ordinance establishes a distance buffer
between commercial cannabis activities and schools, daycare centers, youth
centers, and parks. The discretionary approval process within the Ordinance
allows the City to consider the proximity of a proposed location to other
community-sensitive uses such as religious facilities and libraries when
determining whether to approve an application for a permit under the
Ordinance.
Policy 2.2.9 requires the Police Department review uses that
may be characterized by high levels of noise, nighttime
patronage, and/or rates of crime; providing for the conditioning
or control of use to prevent adverse impacts on adjacent
residences, schools, religious facilities, and similar “sensitive”
uses.
The Police Department has been involved in the development of the Ordinance
to ensure that the Ordinance contains adequate regulations that prevent adverse
impacts on adjacent “sensitive” uses. The Ordinance contains regulations
mandating minimum security measures, including security cameras, panic
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buttons, monitored alarm systems, and on site security guards. The application
process adopted by the people Mayor and City Council of the City of San
Bernardino pursuant to the Ordinance will allow for the Police Department to
review applications and provide recommendations to the City Manager. The
Police Department’s review will be incorporated into the City Manager’s final
recommendation to the Mayor and City Council on whether to approve a
permit application. The Mayor and City Council may reject any application if it
determines rejection would be in the best interests of the City, taking into
account any health, safety and welfare impacts on the community.
Policy 2.2.10 requires the City to protect the quality of life
during the review of projects. The City is required to use its
discretion to deny or requirement mitigation of projects that
result in impacts that outweigh the benefits to the public.
The Mayor and City Council may reject any application that it determines
rejection would be in the best interests of the City, taking into account any
health, safety and welfare impacts on the community. Additionally, as a
discretionary approval, the Ordinance authorizes the Mayor and City Council
to condition its approval of a permit to mitigate the negative effects of a
commercial cannabis activity.
5.2 PUBLIC HEALTH, SAFETY AND WELFARE
The Ordinance is not detrimental to the public interest, health, safety, convenience, or
welfare. There are a high number of unpermitted commercial cannabis businesses currently
operating in the City of San Bernardino. The unpermitted commercial cannabis businesses
have caused significant public health, safety and welfare concerns as discussed in the recitals
above. The Ordinance addresses those public health, safety and welfare concerns by limiting
the number and location of the commercial cannabis activities and imposing operating
conditions that will ensure that qualified patients and persons over 21 years of age have safe
access to cannabis while maintaining the quality of life for the City’s residents. The Ordinance
is not detrimental to the public interest, health, safety, convenience, or welfare.
5.3 BALANCE OF LAND USES
The Ordinance would maintain the appropriate balance of land uses within the City. The
Ordinance limits the location of commercial cannabis activities to specified zones within the
City and establishes distance buffers from sensitive-uses. The Ordinance includes numerical
restrictions on the total number of permitted commercial cannabis activities to ensure that the
land uses in the City remain balanced. The Ordinance includes discretionary approval which
allows the Mayor and City Council to consider the balance of land uses when considering the
approval of an application.
5.4 SUITABILITY
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The subject parcel(s) are physically suitable (including, but not limited to, access, provision
of utilities, compatibility with adjoining land uses, and absence of physical constraints) for
the requested land use designation(s) and the anticipated land use development(s). The
Ordinance includes discretionary approval which allows the Mayor and City Council to
consider the suitability of the property proposed in each application for the proposed
commercial cannabis activity. The zoning restrictions included within the Ordinance were
selected because those zones are the most likely to contain suitable properties for the
establishment of commercial cannabis activities.
SECTION 6. ENVIRONMENTAL DETERMINATION
The people Mayor and City Council of the City of San Bernardino, California, hereby find
and determine that this Ordinance is not subject to environmental review under the California
Environmental Quality Act pursuant to Title 14 of the California Code of Regulations Section
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment); Section 15060(c)(3) (the activity is not a project as defined in
Section 15378) because it has no potential for resulting in a physical change of the
environment, directly or indirectly; and Business and Professions Code Section 26055(h)
because the Ordinance requires the discretionary review of permits to include any applicable
environmental review pursuant to Division 13 (commencing with Section 21000) of the
Public Resources Code.
SECTION 7. MAJORITY VOTE REQUIRED; EFFECTIVE DATE; AMENDMENTS
If a majority of the voters voting on this Ordinance vote in its favor, then this Ordinance shall
become a valid and binding ordinance of the City of San Bernardino. The Ordinance shall be
considered as adopted upon the date that the vote is declared by the Mayor and City Council,
and shall go into effect 10 days after that date. The Ordinance may only be repealed or
amended by a vote of the people, except as stated in the Ordinance.This Ordinance shall be
effective upon the thirty-first (31st) day following its final passage by a majority vote of the
Mayor and City Council.
SECTION 8. SEVERABILITY
While it is the intent of people Mayor and City Council of the City of San Bernardino to adopt
a comprehensive regulatory system for commercial cannabis activities within the City of San
Bernardino, if any provision of this Ordinance or the application thereof to any person or
circumstances is held invalid, such invalidity shall not affect other provisions or applications
of this Ordinance which can be given effect without the invalid provision or application, and
to this end, the provisions of this Ordinance are severable. The people Mayor and City
Council of the City of San Bernardino declare that they would have adopted this Ordinance
irrespective of the invalidity of any particular portion thereof.
Further, the people of the City of San Bernardino declare that if this Ordinance is held invalid
in its entirety, that such invalidity shall not revive any other ordinance, including, without
limitation, and to the extent that such ordinances may be in force before or at the time this
Ordinance takes effect, the San Bernardino Regulate Marijuana Act of 2016, commonly
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known as Measure O, which appeared on the ballot in the City of San Bernardino at a Special
Municipal Election held on November 8, 2016, and the San Bernardino Medical Cannabis
Restrictions and Limitations Act, commonly known as Measure N, which appeared on the
ballot in the City of San Bernardino at a Special Municipal Election held on November 8,
2016.
SECTION 9. COMPETING MEASURES
In the event that this measure and another measure or measures relating to the regulation of
commercial cannabis activities in the City of San Bernardino appear on the same ballot, the
provisions of the other measure or measures shall be deemed to be in conflict with this
measure. Should there be a measure or measures in conflict with this measure, the measure
receiving the greater number of affirmative votes required to pass shall prevail in its entirety
over the conflicting measure or measures, and the conflicting measure or measures shall be
null and void.
///
///
///
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AN ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, AMENDING CHAPTER 5.10 OF THE SAN
BERNARDINO MUNICIPAL CODE RELATED TO REGULATION OF
COMMERCIAL CANNABIS ACTIVITIES
I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor
and City Council of the City of San Bernardino at a _______________________ meeting
thereof, held on the _____ day of ______________, 2018, by the following vote, to wit:
Council Members: AYES NAYS ABSTAIN ABSENT
MARQUEZ _____ _____ _______ _______
BARRIOS _____ _____ _______ _______
VALDIVIA _____ _____ _______ _______
SHORETT _____ _____ _______ _______
NICKEL _____ _____ _______ _______
RICHARD _____ _____ _______ _______
MULVIHILL _____ _____ _______ _______
Georgeann Hanna, CMC, City Clerk
The foregoing Ordinance is hereby approved this _____ day of __________________, 2018.
R. Carey Davis, Mayor
City of San Bernardino
Approved as to form:
Gary D. Saenz, City Attorney
By:____________________
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