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11/10/2020CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● NOVEMBER 10, 2020 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 PUBLIC ADVISORY: THE COUNCIL CHAMBER IS NOW OPEN TO THE PUBLIC!! Beginning June 15, 2020, the City of Grand Terrace will reopen its public meetings. Therefore, the regular meeting of the City Council for November 10, 2020 is now open to the public. Please be advised that face masks are required, social distancing will be practiced, and occupancy limits will be enforced. Please note that Pursuant to Section 3 of Executive Order N-29-20, issued by Governor Newsom on March 17, 2020, the regular meeting of the City Council for November 10, 2020 will also be conducted telephonically through Zoom and broadcast live on the City’s website. COMMENTS FROM THE PUBLIC The public is encouraged to address the City Council on any matter posted on the agenda or on any other matter within its jurisdiction. If you wish to address the City Council, you are invited to provide your name to the City Clerk who will be compiling a list of speakers. Speakers will be called upon by the Mayor at the appropriate time and each person is allowed three (3) minutes speaking time. If you would like to participate telephonically and speak on an agenda item, you can access the meeting by dialing the following telephone number and you will be placed in the waiting room, muted until it is your turn to speak: *67 1-669-900-9128 Enter Meeting ID: 831 7638 9120 Password: 155593 The City wants you to know that you can also submit your comments by email to ccpubliccomment@grandterrace- ca.gov. To give the City Clerk adequate time to print out your comments for consideration at the meeting, please submit your written comments prior to 5:00 p.m.; or if you are unable to email, please call the City Clerk’s Office at (909) 824-6621 x230 by 5:00 p.m. If you wish to have your comments read to the City Council during the appropriate Public Comment period, please indicate in the Subject Line “FOR PUBLIC COMMENT” and list the item number you wish to comment on. Comments that you want read to the City Council will be subject to the three (3) minute time limitation (approximately 350 words). Pursuant to the provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The City Council may direct staff to investigate and/or schedule certain matters for consideration at a future City Council meeting. PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item on this agenda are available for public viewing and inspection at City Hall, 1st Floor Lobby Area and 2nd Floor Reception Area during regular business hours and on the City’s website www.grandterrace-ca.gov. For further information regarding agenda items, please contact the office of the City Clerk at (909) 824-6621 x230, or via e-mail at dthomas@grandterrace- ca.gov. Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City’s website at www.grandterrace-ca.gov. AMERICANS WITH DISABILITIES ACT In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office, (909) 824-6621 x230 at least 48 hours prior to the advertised starting time of the meeting. This will enable the City to make reasonable arrangements to ensure accessibility to this meeting. Later requests will be accommodated to the extent feasible. Agenda Grand Terrace City Council November 10, 2020 City of Grand Terrace Page 2 CALL TO ORDER Convene City Council PLEDGE OF ALLEGIANCE ROLL CALL Attendee Name Present Absent Late Arrived Mayor Darcy McNaboe    Mayor Pro Tem Doug Wilson    Council Member Sylvia Robles    Council Member Bill Hussey    Council Member Jeff Allen    A. SPECIAL PRESENTATIONS - NONE B. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA C. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Regular Meeting – 10/27/2020 DEPARTMENT: CITY CLERK 3. September 10, 2020 Parks & Recreation Advisory Committee Meeting Minutes RECOMMENDATION: Receive and file. DEPARTMENT: CITY CLERK Agenda Grand Terrace City Council November 10, 2020 City of Grand Terrace Page 3 4. City Department Monthly Activity Report - September 2020 RECOMMENDATION: Receive and file. DEPARTMENT: CITY MANAGER 5. Second Reading and Adoption of an Ordinance Establishing Procurement Procedures for Public Projects Pursuant to the Uniform Public Construction Cost Accounting Act and for Maintenance Work RECOMMENDATION: Conduct second reading by title only, waive further reading of, and adopt an Ordinance Adding Chapter 3.26 To Title 3 And Amending Section 3.24.060 of Chapter 3.24 of Title 3 of The Grand Terrace Municipal Code, which establishes procurement procedures for Public Projects, pursuant to the Uniform Public Construction Cost Accounting Act, and for Maintenance Work. DEPARTMENT: CITY ATTORNEY D. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. E. PUBLIC HEARINGS - NONE F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS 6. Assignment of Agreement for Option to Purchase Real Property Located at 21893 Barton Road, Grand Terrace, California RECOMMENDATION: Approve Assignment Agreement with DIBA Real Estate Investments LLC, for Assignment of Option to Purchase Real Property Located at 21893 Barton Road DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council November 10, 2020 City of Grand Terrace Page 4 7. Appropriation of San Bernardino County CARES Act Infrastructure Funding (Incl. City Match) for City Hall/Library HVAC Improvements & Replacement RECOMMENDATION: 1. Approve the revenue and expense appropriations in the amount of $267,700 respectively (includes City’s matching funds), for the City’s approved San Bernardino County CARES ACT Coronavirus Relief Funds Infrastructure Project (City Hall/Library HVAC Improvements & Replacement); and 2. Approve the appropriation of $60,425 from the Facilities Development Impact Fees (DIF) Fund to be used as part of the City’s matching funds for the above-mentioned project (the above-mentioned $267,700 includes this appropriation of $60,425). DEPARTMENT: CITY MANAGER 8. City Hall Closure During the 2020 Holidays RECOMMENDATION: Receive and file the report on the Closure of City Hall from Thursday, December 24, 2020 through Friday, January 1, 2021. DEPARTMENT: CITY MANAGER H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL Pursuant to City Council policy set forth in the 2030 Vision and 2014 ‐2020 Strategic Plan, if a City Council Member is interested in a task or project that will require more than one hour of staff time to complete, the item will be agendized to ask the City Council if time should be spent on preparing a report on the proposed item. In accordance with this policy, this is the opportunity for City Council Members to request that an item be placed on a future agenda and authorize staff to prepare an agenda report. To ensure compliance with the Brown Act, the request shall be submitted to the City Manager at least one week in advance of the meeting so that the topic can be included on the agenda under this section. In order for any listed item to be placed on a future agenda, the City Council must act by formal motion (i.e., requires a motion and a second) to direct the City Manager to place the item on a future agenda. Pursuant to the requirements of the Brown Act, no other items may be considered other than those listed below. 1. Discuss Options City Council May Have to Address the Condemned Building Located at 22130 Barton Road Owned by Colton Joint Unified School District Requested by: Council Member Bill Hussey Agenda Grand Terrace City Council November 10, 2020 City of Grand Terrace Page 5 I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Bill Hussey Council Member Sylvia Robles Mayor Pro Tem Doug Wilson Mayor Darcy McNaboe J. CITY MANAGER COMMUNICATIONS K. RECESS TO CLOSED SESSION CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATORS, pursuant to Government Code Section 54957.6 Agency Designated Representatives: G. Harold Duffey, City Manager Cynthia Fortune, Assistant City Manager Adrian R. Guerra, City Attorney Colin Tanner, Deputy City Attorney Employee Organization: Teamsters Local 1932 2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS, pursuant to Government Code Section 54956.8 Property: 22325 Barton Road (APN 1167-311-02-0000) City Negotiator: G. Harold Duffey, City Manager Negotiating parties: RBP Grand Terrace RE LLC Under negotiation: Price and terms of payment 3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS, pursuant to Government Code Section 54956.8 Property: APN 1167-151-22-0000 APN 1167-151-68-0000 APN 1167-151-71-0000 APN 1167-151-74-0000 City Negotiator: G. Harold Duffey, City Manager Negotiating parties: Lewis Land Developers, LLC Under negotiation: Price and terms of payment Agenda Grand Terrace City Council November 10, 2020 City of Grand Terrace Page 6 RECONVENE TO OPEN SESSION REPORT OUT OF CLOSED SESSION L. ADJOURN The Next Regular City Council meeting will be held on Tuesday, December 8, 2020 at 6:00 pm. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office and the request will be processed in accordance with Council procedures. CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● OCTOBER 27, 2020 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Convene City Council PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Darcy McNaboe. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Doug Wilson Mayor Pro Tem Present Sylvia Robles Council Member Absent Bill Hussey Council Member Present Jeff Allen Council Member Present G. Harold Duffey City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Steven Weiss Planning & Development Services Director Present Craig Bradshaw Interim Public Works Director Present Cynthia A. Fortune Assistant City Manager Absent A.SPECIAL PRESENTATIONS None. B.REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA None. C.CONSENT CALENDAR RESULT:APPROVED [UNANIMOUS] MOVER:Jeff Allen, Council Member SECONDER:Bill Hussey, Council Member AYES:Darcy McNaboe, Doug Wilson, Bill Hussey, Jeff Allen ABSENT:Sylvia Robles 1.Waive Full Reading of Ordinances on Agenda C.2 Packet Pg. 7 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 7 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 27, 2020 City of Grand Terrace Page 2 2.Approval of Minutes – Regular Meeting – 10/13/2020 APPROVE THE REGULAR MEETING MINUTES OF OCTOBER 13, 2020. 3.Approval of the September-2020 Check Register in the Amount of $567,034.67 APPROVE THE CHECK REGISTER NO. 09302020 IN THE AMOUNT OF $567,034.67 AS SUBMITTED, FOR THE PERIOD ENDING SEPTEMBER 30, 2020. 4.Termination of Emergency Declaration for the Rehabilitation of Grand Terrace Road, North of Newport Avenue, Accepting Such Work as Complete, and Authorizing the Filing of a Notice of Completion Related Thereto ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA FINDING AND DETERMINING THAT THE EMERGENCY REHABILITATION OF GRAND TERRACE ROAD, NORTH OF NEWPORT AVENUE, HAS BEEN COMPLETED IN A MANNER THAT ADDRESSES THE EMERGENCY EVENT DECLARED BY RESOLUTION NO. 2020-31 AND, THEREFORE, TERMINATING THE ACTIONS AUTHORIZED THEREUNDER; AND FURTHER ACCEPTING THEREOF; AND AUTHORIZING THE FILING OF A NOTICE OF COMPLETION RELATED THERETO 5.Request by Grocery Outlet for a Waiver of City Fees Related to a Thanksgiving Food Distribution Special Event WAIVE THE SPECIAL EVENT FILING AND PERMITTING FEES IN THE AMOUNT OF $310.00 FOR GROCERY OUTLET'S THANKSGIVING FOOD DISTRIBUTION D.PUBLIC COMMENT Ken Stewart, Grand Terrace recommended the following items be addressed by City Council: Place a stop sign at Whistler and De Berry Streets Offer tax incentives or other incentives that potential residents can use Provide safety to the residents on the west side of the City from fire, debris, and displaced individuals Address displaced individuals E.PUBLIC HEARINGS - NONE F.UNFINISHED BUSINESS - NONE C.2 Packet Pg. 8 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 7 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 27, 2020 City of Grand Terrace Page 3 G.NEW BUSINESS 6.Approve the Proposed Coronavirus Relief Funds (CRF) Programs and the Corresponding Revenue and Expense Appropriations G. Harold Duffey, City Manager gave the PowerPoint presentation for this item. APPROVE THE PROPOSED PROGRAMS AND THE REVENUE AND EXPENSE APPROPRIATIONS OF $153,425 IN ADDITIONAL CORONAVIRUS RELIEF FUNDS (CRF) RECEIVED FROM THE COUNTY OF SAN BERNARDINO'S CRF ALLOCATION FROM THE U.S. TREASURY DEPARTMENT RESULT:APPROVED [UNANIMOUS] MOVER:Doug Wilson, Mayor Pro Tem SECONDER:Jeff Allen, Council Member AYES:Darcy McNaboe, Doug Wilson, Bill Hussey, Jeff Allen ABSENT:Sylvia Robles 7.Ordinance and Resolution Adopting and Establishing Procurement Procedures for Public Projects Per the Uniform Public Construction Cost Accounting Act and for Maintenance Work Adrian Guerra, City Attorney gave the PowerPoint presentation for this item. (1)ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ELECTING TO BECOME SUBJECT TO THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT. (2)CONDUCT FIRST READING BY TITLE ONLY AND WAIVE FURTHER READING OF AN ORDINANCE ADDING CHAPTER 3.26 TO TITLE 3 AND AMENDING SECTION 3.24.060 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ESTABLISH PROCUREMENT PROCEDURES FOR PUBLIC PROJECTS, PURSUANT TO THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT, AND FOR MAINTENANCE WORK. RESULT:APPROVED [UNANIMOUS] MOVER:Jeff Allen, Council Member SECONDER:Bill Hussey, Council Member AYES:Darcy McNaboe, Doug Wilson, Bill Hussey, Jeff Allen ABSENT:Sylvia Robles 8.California High Speed Rail Authority - Authorization to Enter into Reimbursement Agreement and Issuance of Comment Letter Steve Weiss, Planning & Development Services Director gave the PowerPoint presentation for this item. 1.AUTHORIZE THE CITY ATTORNEY TO PREPARE A REIMBURSEMENT AGREEMENT WITH THE CALIFORNIA HIGH SPEED RAIL AUTHORITY (CHSRA), CONSISTENT WITH THE SAMPLE AGREEMENT PROVIDED BY THE CHSRA, TO REIMBURSE THE CITY FOR COSTS RELATED TO C.2 Packet Pg. 9 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 7 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 27, 2020 City of Grand Terrace Page 4 TECHNICAL/ENGINEERING REVIEW SUPPORT AND RELATED WORK, AND AUTHORIZE THE CITY MANAGER TO EXECUTE IT SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM; AND 2.AUTHORIZE THE MAYOR TO SIGN ENVIRONMENTAL NOTICE OF INTENT/NOTICE OF PREPARATION COMMENT LETTER TO THE CHSRA. RESULT:APPROVED [UNANIMOUS] MOVER:Jeff Allen, Council Member SECONDER:Doug Wilson, Mayor Pro Tem AYES:Darcy McNaboe, Doug Wilson, Bill Hussey, Jeff Allen ABSENT:Sylvia Robles H.REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL 1.Motion: Enforcement (or Condition of Approval) for 24-Hour Security Patrol for Apartments in the City Requested by:Council Member Bill Hussey The motion was amended to remove the term 24-hour security patrol and the item will be brought back for discussion to determine what the City can enforce regarding security at apartment complexes. RESULT:ADOPTED [UNANIMOUS] MOVER:Bill Hussey, Council Member SECONDER:Darcy McNaboe, Mayor AYES:Darcy McNaboe, Doug Wilson, Bill Hussey, Jeff Allen ABSENT:Sylvia Robles I.CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Nothing to Report. Council Member Bill Hussey Nothing to Report. Council Member Sylvia Robles Absent. Mayor Pro Tem Doug Wilson Mayor Pro Tem Doug Wilson attended the League of California Cities Annual Conference & Expo 2020. To view report, click here. C.2 Packet Pg. 10 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 7 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council October 27, 2020 City of Grand Terrace Page 5 Mayor Darcy McNaboe On October 14, 2020, Mayor Darcy McNaboe attended the San Bernardino County Transportation Authority General Policy Committee Meeting and on October 15, 2020, she attended the SBCTA Metro Valley Study Session. To view report, click here. J.CITY MANAGER COMMUNICATIONS None. K.CLOSED SESSION - NONE L.ADJOURN Mayor McNaboe adjourned the Regular Meeting of the City Council at 7:10 p.m. The Next Regular meeting of the City Council will be held on Tuesday, November 10, 2020 at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor of the City of Grand Terrace _________________________________ Debra L. Thomas, City Clerk of the City of Grand Terrace C.2 Packet Pg. 11 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 2 7 , 2 0 2 0 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE: November 10, 2020 Council Item TITLE: September 10, 2020 Parks & Recreation Advisory Committee Meeting Minutes PRESENTED BY: Debra Thomas, City Clerk RECOMMENDATION: Receive and file. 2030 VISION STATEMENT: This staff report supports Goal #5, Engage in Proactive Communication. BACKGROUND: Beginning with the November 14, 2017 City Council meeting, the City Clerk was directed by the City Manager to provide Council with a copy of the Planning Commission, Historical & Cultural Activities Committee and Volunteer Emergency Operations Committee minutes to keep Council up-to-date on those Commission/Committee activities. On January 16, 2018, the City Manager requested that the Parks & Recreation Advisory Committee minutes be included in the Committee/Commission Report once that advisory body begins its regular meetings. Pursuant to Health and Safety Code Section 34179(j), the Countywide Oversight Board was created and became effective on July 1, 2018 which has replaced the City’s Oversight Board. Therefore, no future Oversight Board minutes will be included in this report going forward. DISCUSSION: Planning Commission / Site and Architectural Review Board – None. Historical & Cultural Activities Committee – None. On October 8, 2020, the Parks & Recreation Advisory Committee held its Regular Meeting and approved the September 10, 2020 Regular Meeting minutes. The minutes for this meeting are included as an attachment to this report. The Parks & Recreation Advisory Committee’s next Regular Meeting is scheduled for November 12, 2020. FISCAL IMPACT: None. C.3 Packet Pg. 12 ATTACHMENTS: • 09-10-2020 P&R Minutes (PDF) APPROVALS: Debra Thomas Completed 11/03/2020 11:42 AM City Attorney Completed 11/03/2020 8:36 PM Finance Completed 11/04/2020 5:37 PM City Manager Completed 11/05/2020 1:54 PM City Council Pending 11/10/2020 6:00 PM C.3 Packet Pg. 13 CITY OF GRAND TERRACE PARKS & RECREATION ADVISORY COMMITTEE REGULAR MEETING September 10, 2020 -4: 15 p.m. City Hall Community Room -North 22795 Barton Road MINUTES CALL MEETING TO ORDER: Chainnan Brian Phelps convened the Regular Meeting of the Parks & Recreation Advisory Committee at 4: 15 p.m. PLEDGE OF ALLEGIANCE: Committee Member Cheri Freund led the Committee in the Pledge of Allegiance. ROLL CALL: Present: Committee Member Freund; Vice-Chair Firnkoess (via teleconference); Chairman Phelps Absent: Committee Members Rivera, Reagan 1. Approve February 13, 2020 Regular Meeting Minutes Committee Member Freund moved, with a second from Chainnan Phelps to approve the February 13, 2020 Regular Meeting Minutes. Ayes: Absent: Committee Member Freund; Vice-Chair Firnkoess; Chairman Phelps Committee Members Rivera, Reagan 2. Public Comments None. 3. Discussion: Parks & Recreation Projects a. Fitness Park i. Canopy to Shield Playground Equipment from the Sun Quotes are being sought by staff. C.3.a Packet Pg. 14 At t a c h m e n t : 0 9 - 1 0 - 2 0 2 0 P & R M i n u t e s ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) Minutes Parks & Recreation Advisory Committee September 10, 2020 ii. Replanting of Plants and Trees in the Park This is slated as a long-term project. G. Harold Duffey, City Manager suggested a field trip be taken to the Fitness Park with the Committee to discuss in more detail what type of plants and trees should be re-planted at the park. 111. Construction of Outdoor Classroom This is slated as a long-term project. City Manager Duffey suggested a field trip be taken to the Fitness Park with the Committee to discuss in more detail what an outdoor classroom would look like at the park. iv. Camera to Observe Park Cameras are ready for installation at the park. This item will be brought back to the Committee for review and staff will present to Council within 30 days. b. Richard Rollins Park 1. Restriping of Parking Lot City Manager Duffey informed the Committee that restriping the parking lot at the park will be ready in a couple of weeks. ii. ADA Swing Placement City Manager Duffey informed the Committee that the swing should be purchased within 30 to 45 days. iii. Wi Fi Hotspot Pilot City Manager Duffey informed the Committee that a Wi-Fi Hotspot pilot program will be implemented in the park to test whether there is a need. c. Veterans Freedom Park 1. Entryway Sign City Manager Duffey informed the Committee that this item will go before the City Council within the next 60 days. 11. Mural and Art in Public Places This is slated as a long-term project. Items for discussion will include: • Concepts I Type of Art (i.e. Mural in Park) • Developers voluntarily assist with financing • Recruit students to design beehive cut outs to place along the wall on Barton Road by the freeway. C.3.a Packet Pg. 15 At t a c h m e n t : 0 9 - 1 0 - 2 0 2 0 P & R M i n u t e s ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) Minutes Parks & Recreation Advisory Committee September 10, 2020 m. Wi Fi Hotspot Pilot City Manager Duffey infonned the Committee that a Wi-Fi Hotspot pilot program will be implemented in the park to test whether there is a need. d. Dog Park 1. Health and Education Program City Manager Duffey suggested that this item be combined with an Annual Fundraiser for the Dog Park Endowment Fund 11. Annual Fundraiser for Endowment City Manager Duffey expressed the need for a more detailed discussion at a future Committee meeting. A tentative fundraising date would be June 2021, which would include a health and education program. e. Community Gardens i. Community Garden Community Meeting City Manager Duffey expressed the need for a more detailed discussion at a future Committee meeting. The Committee would be responsible for the Community Meetings and dates need to be selected to hold those meetings. 11. Design of Community Garden The concept for the design of a community garden will be discussed at the upcoming Community Meetings. 111. Construction and Development Construction and development of the community garden will be discussed at the upcoming Community Meetings f. Blue Mountain Trail 1. Community Meeting The trailhead design team is ready to schedule a Community Meeting for late October 2020. 11. Final Design The final design will be discussed at the Community Meeting to be scheduled in late October 2020. iii. Acquisition of Property City Manager Duffey stated that once the appraisal of the property located C.3.a Packet Pg. 16 At t a c h m e n t : 0 9 - 1 0 - 2 0 2 0 P & R M i n u t e s ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) Minutes Parks & Recreation Advisory Committee September 10, 2020 off of Palm Avenue has been received, an offer will be presented to the property owner. If the property owner accepts the offer, staff will call an emergency Committee meeting to discuss and present recommendations to Council. 4. Committee Member Comments None. 5. Staff Comments City Manager Duffey announced drive-up movie night scheduled to be held at Richardson's RV located on Michigan Avenue on September 25 and 26, 2020. 6. Adjournment Chairman Phelps adjourned the Regular Meeting of the Parks & Recreation Advisory Committee at 5:15 p.m. Brian Phelps, Chairman Debra L. Thomas, Committee Secretary C.3.a Packet Pg. 17 At t a c h m e n t : 0 9 - 1 0 - 2 0 2 0 P & R M i n u t e s ( C o m m i t t e e a n d C o m m i s s i o n M i n u t e s ) AGENDA REPORT MEETING DATE: November 10, 2020 Council Item TITLE: City Department Monthly Activity Report - September 2020 PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Receive and file. 2030 VISION STATEMENT: This staff report identifies the monthly tasks associated with the delivery of projects to support City Council’s Goals 1) Ensure Our Fiscal Viability - Explore Creative Means to Provide Services and 4) Develop and Implement Successful Partnerships - Work with Local, Regional and State Agencies to secure Funding for Programs and Projects. BACKGROUND: The City Council of Grand Terrace established a 2030 Vision for the City of Grand Terrace and followed up with a 2014-2020 Strategic Plan. The Strategic Plan is a roadmap to ensure that the City remains on target and reaches its overall goals. The 2030 Vision and Strategic Plan will be achieved as staff accomplishes tasks and projects that are aligned with the 2030 Vision goals. The goals include: • Ensure Our Fiscal Viability • Maintain Public Safety • Promote Economic Development • Develop and Implement Successful Partnerships • Engage in Proactive Communications DISCUSSION: This Monthly report includes September 2020 data for each department in the City. The number of projects and activities reported do not reflect everything staff is doing but rather highlights things they have worked on in the past month which may be of interest to City Council and the public. This report is updated monthly and posted to the City’s website on the fourth week of each month. FISCAL IMPACT: The Monthly report has no fiscal impact. The monthly reports do not provide budgetary status. The Finance Department will continue to produce individual monthly financial reports which are separate from the Department monthly reports. ATTACHMENTS: • September 2020 Monthly Report - Final (PDF) C.4 Packet Pg. 18 APPROVALS: G. Harold Duffey Completed 11/04/2020 3:11 PM City Attorney Completed 11/04/2020 4:18 PM Finance Completed 11/04/2020 5:38 PM City Manager Completed 11/05/2020 2:05 PM City Council Pending 11/10/2020 6:00 PM C.4 Packet Pg. 19 MONTHLY REPORT September 2020 PRESENTED BY THE CITY MANAGER’S OFFICE C.4.a Packet Pg. 20 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) i Organizational Chart .........................................................................................1 City Clerk ...........................................................................................................2 Committee/Commissions ........................................................................7 City Manager .....................................................................................................8 Senior Center ....................................................................................... 12 Senior Bus Program ............................................................................. 15 Communications ................................................................................... 20 Planning and Development ............................................................................ 24 Code Enforcement ............................................................................... 39 Weekend Code ..................................................................................... 40 Parking/Graffiti ................................................................................ 40, 41 Animal Control ...................................................................................... 42 Maintenance ......................................................................................... 46 Park Maintenance ................................................................................ 48 Public Works .................................................................................................. 50 Engineering Division ............................................................................. 51 Burrtec Waste Generation Report ........................................................ 57 Public Works Administration ................................................................. 58 CIP Project Contracts ........................................................................... 59 Sheriff’s Contract ............................................................................................ 60 Law Enforcement Services ................................................................... 61 San Bernardino County Fire ........................................................................... 63 Emergency Management Services ...................................................... 64 C.4.a Packet Pg. 21 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) CITY MANAGER Organization Chart City Manager City Clerk Planning & Development Public Works Finance Public Safety Agenda Processing Land Use Planning Engineering Accounting Fire District Elections Planning Commission NPDES Budgeting & Purchasing Law Enforcement Records Management Building & Safety Storm Drain Maintenance Payroll FPPC Filings Code Enforcement Facilities Maintenance Treasury Public Records Enforcement Program Parks Maintenance Senior Bus Program Page 1 C.4.a Packet Pg. 22 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) City of Grand Terrace City Clerk’s Department City Clerk •Agenda Processing •Elections •Records Management •FPPC Filings •Public Records Page 2 C.4.a Packet Pg. 23 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) City of Grand Terrace City Clerk’s Department . DATE: October 1, 2020 TO: G. Harold Duffey, City Manager City Manager’s Office FROM: Debra Thomas, City Clerk City Clerk’s Office SUBJECT: SEPTEMBER 2020 CITY CLERK MONTHLY REPORT This monthly report is presented to the City Manager to keep him informed of the activities and responsibilities within the City Clerk’s Department over the last six (6) months. The City Clerk’s Office is staffed with one position that includes the City Clerk. The primary responsibilities for this department are Council Support Services, Records Management, Administrative Processing, Board Administration and Election Services. Each of these functions require a collaborative effort between the department staff to ensure that all components within the process are completed from origin to file. As the official records manager for all City documents it is imperative that this process be accurate to ensure the preservation of the City’s history. AGENDAS/POSTINGS The City Clerk is responsible for preparing agendas and postings for all City Council Regular and Special Meetings, as well as for the Housing Authority and Successor Agency to the Community Redevelopment Agency. The total number of agendas processed for the month of September 2020 is two (2), spending a total of sixteen (16) hours preparing the agenda packet producing 303 pages. AGENDA PROCESSING/POSTING MONTH Regular Meeting Special Meeting Totals April 2 0 2 May 2 2 4 June 2 0 2 July 2 0 2 August 2 1 3 September 2 0 2 Total Processed 12 3 15 Page 3 C.4.a Packet Pg. 24 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) RESOLUTIONS & ORDINANCES The City Clerk is responsible for the security of all official City records including Resolutions. Additionally, it is the City Clerk’s responsibility to ensure those Resolutions are executed, certified, and published, when appropriate. It is also the responsibility of the City Clerk to ensure all City Council Ordinances presented to Council have been certified and made available for review by the public. The City Clerk must coordinate with the local adjudicated newspaper to publish Ordinance summaries for its first and second readings. The number of Resolutions processed for the month of September is two (2) and the number of Ordinances processed for the month of September is zero (0). RESOLUTIONS AND ORDINANCES PROCESSED RESOLUTIONS ORDINANCES MONTHLY TOTALS April 6 0 6 May 4 2 6 June 10 0 10 July 5 1 6 August 3 0 3 September 2 0 2 Total Processed 30 3 33 RECOGNITION ACTIVITY Its purpose is to recognize individuals, groups, and events of significance to the Grand Terrace community by the issuance of Certificates, Recognition, Acknowledgment and Commendation Pins. It is the responsibility of the City Clerk to ensure that all signatures of City Council are obtained on the document, coordinate attendance at Council meetings for the individual, group or event representative to accept the recognition, as well as prepare Council with all necessary information to present the recognition if presentation will be held at another venue. For the month of September 2020, zero (0) recognitions or In Memoriam Adjournment were prepared on behalf of the City Council. Month Certificate of Acknowledgment w/Pin Certificate of Recognition w/Pin Commendation w/Pin In Memoriam Adjournments Certificate of Participation Proclamation Total April 0 9 0 1 0 2 12 May 0 1 0 0 0 1 2 June 0 1 0 0 0 0 1 July 0 0 0 1 0 0 1 August 0 9 0 1 0 0 10 September 0 0 0 0 0 0 0 Total 0 20 0 3 0 3 26 Page 4 C.4.a Packet Pg. 25 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) CONTRACTS AND AGREEMENTS PROCESSED The City Clerk works closely with the City Council and is responsible for processing follow-up documentation. Management of these documents include contracts and agreements and it is the responsibility of the City Clerk to obtain signatures, distribute originals, log, scan, and file. For the month of September 2020, Council approved three (3) agreements. CONTRACTS & AGREEMENTS PROCESSED April 3 May 4 June 2 July 5 August 1 September 3 Total 18 RECORDS REQUESTS The City Clerk’s office received eight (8) Requests for Copies of Public Records for the month of September 2020. Eight (8) requests were completed within the Government Code Section 6253(c)’s requirement of ten (10) calendar days. The total number of pages provided in response to those requests were 194. RECORDS REQUEST SUMMARY Month Requests Received Completed Within 10 Days Completed with 14-Day Extension # of Pages Provided Letter to Requestor – No Records April 11 11 0 257 5 May 11 11 0 131 5 June 6 6 0 83 1 July 12 7 5 303 5 August 15 15 0 194 0 September 10 10 0 223 3 Total Requests 65 60 5 1,191 19 Page 5 C.4.a Packet Pg. 26 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) CUSTOMER SERVICE – TELEPHONE CALLS The City Clerk is responsible for receiving and responding to inquiries and external customer service requests, communicating, coordinating, and responding to internal department requests, external agency cooperation and legislative bodies. For the month of September 2020, the City Clerk’s office responded to 241 telephone calls from residents, contractors, vendors, consultants, and in-house customer service assistance to City staff. TELEPHONE CUSTOMER SERVICE April 452 May 367 June 308 July 287 August 205 September 241 Total Calls 1,860 HISTORICAL & CULTURAL COMMITTEE ACTIVITY The Historical and Cultural Activities Committee preserves the history of Grand Terrace and facilitates cultural activities for the benefit of all citizens in the City. The City Clerk serves as a liaison facilitating communication between the committee and City Manager and City Council, maintains the committee minutes of its proceedings and provides support for the Annual Art Show, Country Fair and City Birthday Party. No activity is reported for the month of July as the Committee has cancelled its 2020 events and meetings due to the COVID-19 pandemic. Month Committee Meeting Emails w/Committee Members & Vendors Written Correspondence w/Committee Members Telephone Calls with Committee Members & Vendors Art Show/Country Fair & City Birthday Prep & Attendance Total # of Hours April 0 0 0 0 0 0 May 0 0 0 0 0 0 June 0 0 0 0 0 0 July 0 0 0 0 0 0 August 0 0 0 0 0 0 September 0 0 0 0 0 0 TOTAL # HOURS 0 0 0 0 0 0 Page 6 C.4.a Packet Pg. 27 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) COMMITTEES/COMMISSIONS The City Clerk is responsible for maintaining Appointed Committee/Commission Rosters and ensuring that all information is current and up-to-date for each. Listed below are the number of current Appointed City Committees/Commissions, including the number of alternates and vacancies that may exist: COMMITTEES/COMMISSIONS # OF MEMBERS # OF ALTERNATES # OF VACANCIES Historical & Cultural Activities Committee 7 0 0 Planning Commission 5 0 0 Parks & Recreation Committee 5 0 0 Page 7 C.4.a Packet Pg. 28 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) City of Grand Terrace City Manager’s Office City Manager’s Office •City Manager’s Office •Human Resources •Senior Center Page 8 C.4.a Packet Pg. 29 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) DATE: September 1, 2020 TO: G. Harold Duffey, City Manager City Manager’s Office FROM: Debra L. Thomas, City Clerk SUBJECT: September-2020 Monthly Services Report This monthly report is presented to the City Manager to keep the City Manager and Policy Makers informed of the activities within the City Manager’s Office and programs administered by the office to meet service demands. The tasks and projects identified within the monthly report represent programs administered by the City Manager’s Office. The projects identified in this report do not represent the City Manager’s Office’s larger policy and fiscal oversight. Reports on those issues are presented to the Council in separate and distinct reports. The attached monthly report addresses the City Manager’s Office administration of the following activities:  Human Resources  Senior Center  Finance (currently ACM is Acting Finance Director)  IT and Communications OUR MISSION To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of a fiscally responsible government. OUR VISION Grand Terrace is an exceptionally safe and well managed City, known for its natural beauty and recreational opportunities; a vibrant and diverse local economy; a place where residents enjoy an outstanding quality of life that fosters pride and an engaged community, encouraging families to come and remain for generations. Page 9 C.4.a Packet Pg. 30 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) HUMAN RESOURCES Mission: It is the mission of human resources to support the organization in meeting its mission and goals through one of its most valuable resources - its PEOPLE. Values: Develop An attitude of teamwork and quality in our day-to-day operations and create an atmosphere that fosters camaraderie, fellowships, challenges, and safety. Increase Participation in City and community activities while seeking knowledge, enthusiasm, and an improved quality of life for ourselves, co-workers, and the community. Respect Team member values that may be different from our own and accept responsibility for promoting ethical and legal conduct in personal and business practices. Communicate In a candid and fair manner with the diverse workforce from whom our City derives its strength. CORE SERVICES 1. Hiring the most qualified employees by: pre-planning staffing needs, ensuring an effective internal interview process, conducting thorough reference checks. 2. Properly balancing the needs of the employees and the needs of the organization. 3. Ensuring a diverse workforce in a safe and discrimination/harassment free environment by: maintaining compliance with employment laws and government regulations, providing management and employee training, and developing policies and procedures. 4. Providing training and development in areas of: effective leadership and career development of employees, and, employment law and government regulation. 5. Retaining our valued employees by: assuring effective leadership qualities in our managers; furnishing technical, interpersonal and career development training and coaching; supplying relevant feedback to management; and enhancing two-way communication between employees and management. Page 10 C.4.a Packet Pg. 31 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) TABLE 1 Recruitment Activity Description Jul- 2020 Aug- 2020 Sept- 2020 Oct- 2020 Nov- 2020 Dec- 2020 Recruitments Initiated 0 1* Recruitments in Progress 0 1* Recruitments Pending 0 1** Applications Processed 0 0 New Hires Processed 0 0 Description Jan- 2021 Feb- 2021 Mar- 2021 Apr- 2021 May- 2021 Jun- 2021 Recruitments Initiated Recruitments in Progress Recruitments Pending Applications Received/Processed New Hires Processed Note: *Recruitment for the Senior Accountant position has been initiated. **Recruitment for the Principal Accountant position will be sent in September. TABLE 2 Employee Job Performance Activity Description Jul- 2020 Aug- 2020 Sept2020 Oct- 2020 Nov- 2020 Dec- 2020 Evaluations Processed 6 Description Jan- 2021 Feb- 2021 Mar- 2021 Apr- 2021 May- 2021 Jun- 2021 Evaluations Processed Page 11 C.4.a Packet Pg. 32 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) SENIOR CENTER Mission: To provide recreational, educational, and social activities for the seniors in the community and to enrich our seniors lives through friendship, activities, education, and nourishment. Core Values: Seniors are recognized as a valuable asset. Seniors have the opportunity to contribute and expand their talents and knowledge. Seniors strengthen our community and benefit personally by their involvement. Seniors have access to a full spectrum of services, including social, emotional, educational, and recreational opportunities appropriate to their unique needs and interests. Seniors are treated respectfully and with dignity. Senior of all economic circumstances are served. TABLE 1 - Senior Center Activities Description Jul- 2020 Aug- 2020 Sept- 2020 Oct- 2020 Nov- 2020 Dec- 2020 Nutrition Program (# of meals served) 875 640 Arts and Crafts Classes Bingo Bridge Bunco Coffee with Megan Exercise Classes Garden Club Morning Glories (quilting) Movies with Solomon Paint Classes Card Game Night (Wednesday) Zumba Kings Corner Cribbage Cell Phone Class Loteria SPECIAL EVENTS Monthly Birthday Celebration Entertainment (2nd Fri. each mo.) Volunteer Meeting Hydration Station Bus Pass Distribution 4th of July Party / Sept Pizza Party / Health Screening Christmas / Holiday Celebration Monthly Summary Attendance (Accounts for a senior participating in any activity/program. One senior may have participated in 2 or more programs, not including meals.) Page 12 C.4.a Packet Pg. 33 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Description *Jan -2021 *Feb2021 **Mar-2021 Apr- 2021 May- 2021 Jun- 2021 Nutrition Program (# of meals served) Arts and Crafts Classes Bingo Bridge Bunco Coffee with Shari Exercise Classes Garden Club Morning Glories (quilting) Movies with Solomon Paint Classes Card Game Night (Wednesday) Zumba Kings Corner Cribbage Cell Phone Class Loteria SPECIAL EVENTS Monthly Birthday Celebration Entertainment (2nd Fri. each mo.) Volunteer Meeting Hydration Station Bus Pass Distribution 4th of July Party / Sept Pizza Party Health Screening Monthly Summary Attendance (Accounts for a senior participating in any activity/program. One senior may have participated in 2 or more programs, not including meals.) ** - Due to COVID-19, the Senior Center will only be providing limited meals. Page 13 C.4.a Packet Pg. 34 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) 0 100 200 300 400 500 600 700 800 900 July August September October November December 875 640 0 0 0 000000 0 Senior Center (2020-21) July-2020 -December-2020 # of Meals Served Activity Attendance 0 100 200 300 400 500 600 700 800 900 January February March April May June 0 0 0 0 0 000000 0 Senior Center (2020-21) January-2020 -June-2020** # of Meals Served Activity Attendance ** - Due to COVID-19, the Senior Center will only be providing limited meals. Page 14 C.4.a Packet Pg. 35 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) TABLE 2 Senior Center Blue Mountain Silver Liner # of Passengers Description Jul- 2020 Aug- 2020 Sept- 2020 Oct- 2020 Nov- 2020 Dec- 2020 Within City Limits (Senior Center, Stater Brothers, Library) 135 104 Outside City Limits (Walmart, 99cent store, Ross) 0 0 Special Events/Trips 0 0 Description Jan- 2021 Feb- 2021 Mar- 2021 Apr- 2021 May- 2021 Jun- 2021 Within City Limits (Senior Center, Stater Brothers, Library) Outside City Limits (Walmart, 99cent store, Ross) Special Events/Trips TABLE 3 # of Rides Description Jul- 2020 Aug- 2020 Sept- 2020 Oct- 2020 Nov- 2020 Dec- 2020 Within City Limits (Senior Center, Stater Brothers, Library) 270 208 Outside City Limits (Walmart, 99cent store, Ross) 0 0 Special Events/Trips 0 0 Description Jan- 2021 Feb- 2021 Mar- 2021 Apr- 2021 May- 2021 Jun- 2021 Within City Limits (Senior Center, Stater Brothers, Library) Outside City Limits (Walmart, 99cent store, Ross) Special Events/Trips Page 15 C.4.a Packet Pg. 36 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) 0 50 100 150 200 250 300 July August September October November December 135 104 0 0 0 0 270 208 0 0 0 0 Senior Transportation July-2020 -December-2020 # of Passengers # of Rides 0 50 100 150 200 250 300 July August September October November December 0 0 0 0 0 000000 0 Senior Transportation January-2020 -June -2020 # of Passengers # of Rides Page 16 C.4.a Packet Pg. 37 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Oc-17 7%5% FINANCE Mission: To efficiently and effectively manage the City’s finances, preserve its assets by conforming to the highest ethical standards, implement sound internal controls, and provide meaningful, timely, and accurate financial reporting. Values: Transparency (Accessibility of Information): The Finance Department will ensure openness, clarity and comprehensibility when providing reliable, relevant, and timely financial information to the public. Integrity (Reliability on Information Provided): The Finance Department commits adherence to the highest ethical standards. The financial services provided will be honest, fair, and unbiased. Quality (Commitment to Excellence): The Finance Department will deliver financial services expeditiously and provide valuable support services to other departments and the community. Teamwork (Mutual Respect and Cooperation): The Finance Department will work together collaboratively with others, recognize the role and contribution each person makes, and provide assistance as necessary to achieve the City’s 2030 Mission, Vision and Goals. CORE SERVICES The Finance Department has 4 core services: Accounting, Purchasing, Revenue Management and Treasury. The Finance Department works in partnership with other departments to effectively develop, manage and safeguard the City’s fiscal resources to enable and enhance the delivery of City services and projects. 1. Disbursements – to facilitate timely and accurate payments of the City’s financial obligations which includes vendor payments, employee and resident reimbursements, and payroll. 2. Financial Reporting – to provide accurate and meaningful reporting on the City’s financial condition through the City’s monthly and annual financial reports. 3. Purchasing – to authorize the purchase of quality products in a cost-effective manner. 4. Revenue and Treasury Management – to bill and collect revenue while providing cost- effective financing, investments, and cash collection of the City’s resources to enhance the City’s financial condition. Page 17 C.4.a Packet Pg. 38 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) TABLE 1 Financial Activity Description Jul- 2020 Aug- 2020 Sept- 2020 Oct- 2020 Nov- 2020 Dec- 2020 Invoices Processed 165 68 Checks Issued 76 74 Purchase Orders Established 18 16 Revenue Receipts Recorded 18 25 Description Jan- 2021 Feb- 2021 Mar- 2021 Apr- 2021 May- 2021 Jun- 2021 Invoices Processed Checks Issued Purchase Orders Established Revenue Receipts Recorded 76 18 18 68 74 16 25 0 0 0 0000 0000 0000 0 0 20 40 60 80 100 120 140 160 Invoices Processed Checks Issued P.Os Established Revenue Receipts Recorded Financial Activity Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Page 18 C.4.a Packet Pg. 39 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) FINANCIAL REPORTS SUBMITTED TO CITY COUNCIL: Monthly: 1. Check Register; and 2. General Fund Monthly Financial Report (revenues less expenditures). Quarterly: 1. Business License Report; and 2. Treasurer’s Report (current cash flow and fund balance); and 3. 1st Quarter, Mid-Year and Year-end Financial Reports (General Fund). Annual: Audited Annual Financial Reports for the following: 1. City – all Funds; 2. Measure I – Fund 20; 3. Air Quality Management District (AQMD) – Fund 15; and 4. Housing Authority- Fund 52. 0 0 0 0000 0000 0000 0000 0000 0 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 Invoices Processed Checks Issued P.Os Established Revenue Receipts Recorded Financial Activity Jan-20 Feb-19 Mar-21 Apr-21 May-21 Jun-21 Page 19 C.4.a Packet Pg. 40 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) COMMUNICATIONS Mission: To develop, implement and provide comprehensive internal and external communications for the City and its community. Core Services: Plan, organize and disseminate timely and accurate information and promote awareness of City operations, services, programs, projects, events, and issues to the community. Promote and provide positive and proactive media relations for the City. Disseminate news materials in a timely manner. Initiate and write press releases, public service announcements, articles, and websites for media distribution. Maintain and improve the City’s website for distributing mass media information under various situations. Channel 3: Jul Aug Sep Oct Nov Dec City Council Meeting Replays 62 62 60 Activities/Items Added to Slideshow 0 0 0 Channel 3: Jan Feb Mar Apr May Jun City Council Meeting Replays Activities/Items Added to Slideshow Eblast Jul Aug Sep Oct Nov Dec Number of E-newsletters Distributed 1 1 8 Number of Subscribers 811 819 822 Change in Subscribers 9 8 3 Number of E-newsletters Opened* No Data No Data No Data No Data No Data No Data Eblast Jan Feb Mar Apr May Jun Number of E-newsletters Distributed Number of Subscribers Change in Subscribers Number of E-newsletters Opened* No Data No Data No Data No Data No Data No Data * New e-newsletter management system does not currently track emails opened. 2020-2021 City Communications Data: Page 20 C.4.a Packet Pg. 41 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Facebook Jul Aug Sep Oct Nov Dec Posts 19 8 24 Total Reach* 22,753 11,924 20,993 Total Engagement** 5,341 2,371 3,243 Page Followers 2,400 2,411 2,416 New Page Followers 18 11 5 Facebook Jan Feb Mar Apr May Jun Posts Total Reach Total Engagement Page Followers New Page Followers * Reach refers to the number of unique people to have seen a post's content. ** Engagement refers to interactions with a post, such as post clicks, Likes, Comments or Shares. 5 Most Popular City Facebook Pages (By % of population) – San Bernardino County % of Pop. 1) Twentynine Palms 27.62% 2) Apple Valley 24.04% 3) Yucca Valley 22.33% 4) Grand Terrace 19.46% 5) Hesperia 16.19% 2,080 2,127 2,136 2,144 2,180 2,207 2,276 2,298 2,382 2,400 2,411 2,416 1,500 1,750 2,000 2,250 2,500 FACEBOOK PAGE FOLLOWERS Page 21 C.4.a Packet Pg. 42 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Twitter Jul Aug Sep Oct Nov Dec Tweets 0 0 3 Impressions 1,519 1,035 1,467 Followers 322 329 330 New Followers -2 7 1 Twitter Jan Feb Mar Apr May Jun Tweets Impressions Followers New Followers YouTube Jul Aug Sep Oct Nov Dec Video Uploads 2 3 2 Video Views 202 137 129 Subscribers 167 167 166 Change in Subscribers 3 0 -1 YouTube Jan Feb Mar Apr May Jun Video Uploads Video Views Subscribers Change in Subscribers *** Impressions refers to the number of times a tweet has been seen. 285 289 291 291 295 307 309 310 324 322 329 330 200 225 250 275 300 325 350 TWITTER PAGE FOLLOWERS Page 22 C.4.a Packet Pg. 43 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) City News Jul Aug Sep Oct Nov Dec Featured (Front Page Article and Image) 0 0 0 Articles 3 0 1 1/2-Page Ad 1 0 0 1/4-Page Ad 2 1 1 City News Jan Feb Mar Apr May Jun Featured (Front Page Article and Image) Articles 1/2-Page Ad 1/4-Page Ad AM 1640 Jul Aug Sep Oct Nov Dec Advertisement of City Events 0 0 0 AM 1640 Jan Feb Mar Apr May Jun Advertisement of City Events Burrtec Newsletter Jul Aug Sep Oct Nov Dec Bi-Monthly Newsletter 1 0 1 Burrtec Newsletter Jan Feb Mar Apr May Jun Bi-Monthly Newsletter Page 23 C.4.a Packet Pg. 44 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) City of Grand Terrace Planning and Development Services Department Planning & Development •Land Use Planning •Planning Commission •Building & Safety •Code Enforcement •Enforcement Program Page 24 C.4.a Packet Pg. 45 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) . DATE: October 21, 2020 TO: G. Harold Duffey, City Manager City Manager’s Office FROM: Planning and Development Services Department SUBJECT: SEPTEMBER 2020 PLANNING AND DEVELOPMENT SERVICES MONTHLY REPORT This monthly report is presented to the City Manager to keep him informed of the activities within the Planning and Development Services Department, comprised of Planning, Building and Safety, Code Enforcement, Animal Control, and Public Works. OUR MISSION To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of a fiscally responsible government. OUR VISION Grand Terrace is an exceptionally safe and well managed City, known for its natural beauty and recreational opportunities; a vibrant and diverse local economy; a place where residents enjoy an outstanding quality of life that fosters pride and an engaged community, encouraging families to come and remain for generations. PLANNING DIVISION Planning and Building and Safety Core Services ➢ Permit New Businesses ➢ Permit Alterations to Existing Uses ➢ Zoning Code & General Plan Administration ➢ RDA Dissolution ➢ Planning Commission ➢ Building Permit Issuance ➢ Building Plans Review & Inspections The Planning Division is budgeted for one full time Director and one full time Assistant Planner. Both positions are filled and together constitute a minimum of 320 monthly service hours. Page 25 C.4.a Packet Pg. 46 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Activity Summary for Planning Planning Counter Requests for Information: 72 Planning Phone Calls Received: 116 Planning E-mails Received/Answered:789 COVID-19 Related E-mails Received: 210 Application Summary The Planning Division received 21 new applications in September and carried over 16 from the previous month. Action was taken on 21 of them. Minor applications such as a new business, patio cover, or small room additions are handled as a Land Use application and typically processed within 2-3 days. Larger additions over 500 square feet or second dwelling units are handled administratively by staff with noticing, and those projects that are either new development or exceed the Director’s administrative authority are handled as Major Permits and are reviewed by the Planning Commission. Home occupation permits are for home based business, such as consulting, housekeeping, and small craft businesses. Application Summary for September 2020 Applications Number Received Carried Over Completed Under Review Major 0 9 0 9 Administrative 1 2 0 3 Land Use 16 5 19 2 Home Occupation 0 0 0 0 Sign 3 0 2 1 Special Event 0 0 0 0 DAB 1 0 0 1 Total 21 16 21 16 0 5 10 15 20 Major Administrative Land Use Home Occupation Sign Special Event DAB Applications Received and Carried Over in September 2020 Under Review Completed Carried Over Received Page 26 C.4.a Packet Pg. 47 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Applications Received, Approved and/or Under Review Fiscal year 200-2021 to date the Planning Division has received 47 applications for review, 16 applications remained under review. A comprehensive list of the applications and their status is at the end of the Planning Division’s report. A Land Use application for four new businesses were received in September, “The Space Between Counseling Services Clinical Social Worker, Inc.” (Counseling Services), “Loud Burger” (Fast-food Restaurant), “Max Window Tinting, Inc.” (Tinting Services), and “Major League Fabrication, Inc.” (Light Aerospace Manufacturing). Overall Land Use applications are the most predominant applications that the Planning Division processes. Sixteen Land Use applications were received in September. 0 5 10 15 20 25 30 35 40 Major Administrative Land Use Home Occupation Signs Special Event DAB Zoning Verification Applications Received Fiscal Year to Date July August September October November December January February March April May June 1 3 4 1 7 Land Use Applications Wall/Fence Shed Patio Covers/Sunroom Pools New business Minor Improvements Temporary Uses/Special Events Page 27 C.4.a Packet Pg. 48 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Projects in Plan Check or Under Construction Projects in Plan Check or Under Construction Date Submitted Case No. Applicant Description Location Status 3/29/2019 SA 19-04 E 19-03 Leonardo and Anel Aguayo Single Family Residence 0275-083-09 Under Construction 10/23/2018 SA 18-10 V 18-02 E 18-10 Crestwood Communities 17 Detached Single-Family Residences Pico Street and Kingfisher Under Construction 4/14/2016 SA 16-01 V 16-01 TTM 16-01 E 16-05 Aegis Builders, Darryl Moore Planned Residential Development – 17 Lots and 17 to-Story Housing Units 22404 Van Burren Under Construction 5/11/2018 ASA 18-06 E 18-06 Tim Boyes Two lots Grading Plans 0276-431-21, 22 Third Grading Plan Review 8/8/2018 8/19/2019 SA 19-08 V 19-01 Troy Rogers Taco Bell 22172 Barton Road Approved by the PC on 12/12/2019 Precise Grading 1st Plan Check 2/27/2020 Landscaping 1st Plan Check 3/11/2020 Architectural Plans 1st Plan Check 4/7/2020 11/15/2020 SA 18-04 E 17-09 Todd Kesseler Single Family Residence 23400 Westwood Street Under Construction Development Advisory Board (DAB) The Development Advisory Board is made up of the Planning and Development Services Director, Public Works Director, Consultant Building Official, Fire Marshal’s Office, the RHWCO Superintendent, and Colton Wastewater. The DAB meets to review conceptual plans for various projects and new development applications, and is conducted free of charge. One DAB meeting took place during the month of September. Development Advisory Board (DAB) Date Submitted Case No. Applicant Description Location Status 9/2/2020 DAB 20-05 Jessica Steiner, The Bickel Group Multi-tenant Commercial APN: 0075- 242-10, 11 Meeting held on 9/15/2020 9/2/2020 Formal Project Submittal Greens Group Commercial, Hotel, Multi-Family Residential 22317, 22273, 22293 Barton Road Meeting held on 9/15/2020 Page 28 C.4.a Packet Pg. 49 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Planning Commission The Planning Commission reviews new construction, subdivisions, variances and conditional use permits. They also make recommendations on zone changes, zoning code amendments, and general plan changes. One Planning Commission meeting was held in the month of September and the following actions occurred: On September 17, 2020 • Senate Bill 743 - Vehicle Miles Traveled Thresholds for Analysis of Traffic Impact Under the California Environmental Quality Act was presented to the Planning Commission with the recommendation to receive and file. Conforming Uses and Buildings Grants The City was awarded funding for its Blue Mountain Trailhead and Trail application and continues to implement the grant. Staff was informed that through the efforts of Assembly Member Reyes, the City is the recipients of a $1.2 Million Dollar Specified Grant for the acquisition and development of the Blue Mountain Trail and Trailhead. This grant is funded through the State Budget and is non-competitive. Staff met with State representatives on August 15, 2019. Grant Status Grant Amount Blue Mountain Trailhead and Trail Grant Submitted on October 1, 2017. Site visit completed in November 2017. Awarded. Community workshop held on 4/11/2019. $212,500 (Estimated Project cost $520,000) Specified Grant - Blue Mountain Trailhead and Trail Grant Non Competitive. Staff met with State Representatives and on August 15, 2019 and March 18, 2020 $1.2 Million Housing Successor Agency The Housing Successor Agency has a current balance of approximately $225,000.00. Each year $50,000 is received from the Successor Agency. On June 15, 2018, title transferred to Aegis Builders, Inc. on the Canal property. Buyer has 18 months to commence construction, and a development application is being processed. Page 29 C.4.a Packet Pg. 50 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) The Housing Successor Agency holds the following interests: Property Description 22293 Barton Road Vacant 1.42-acre commercial property. 22317 Barton Road Vacant 1.43-acre commercial property. 11695 Canal Street Vacant 0.80-acre property, designated R3-20. Sold on 6/15/2018 to Aegis Builders, Inc. Buyer has 18 months to commence construction or Agency may repurchase property. 12569 Michigan Street Project completed. The Housing Successor Agency holds covenants on the property for two low income residents. Community Emergency Response Team Due to COVID-19 social distancing restrictions, the regular CERT volunteer meeting scheduled for September 1, 2020, was cancelled. Page 30 C.4.a Packet Pg. 51 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Attachment to Planning Division’s Report Applications Received, Approved and/or Under Review Major Applications - Site and Architectural Review Date Submitted Case No. Applicant Description Location Status 8/12/2020 GPA 20-02 SPA 20-02 SA 20-03 CUP 20-01 E 2-03 Greens INV 15 LLC 22317, 22273, 22293 Barton Road Multi Family, Hotel, Restaurant Retail Incomplete on 9/23/2020 3/16/2020 GPA 20-01 ZCA 20-01 Darryl Moore Change of Zoning from R1-7.2 to R2 12266 Michigan Street Incomplete on 4/17/2020 3/16/2020 SA 20-02 TTM 20-01 SP 20-01 E 20-02 Darryl Moore 22 single Homes and TTM 122667 Michigan Street Incomplete on 4/17/2020 5/31/2019 SA 19-05 CUP 19-04 E 19-06 ZC 19-01 MD 19-01 Edwin Renewable Fuels Plastic Recycling and office/educational uses 21801 Barton Road Deemed Incomplete on 6/26/2019. Resubmitted Plans received on 6/2/2020 were distributed for review Staff continues to work with Applicant on Project. 10/2/2018 SA 18-09 TTM 18-02 V 18-01 E 18-08 Aegis Builders, Inc 12 Townhomes 11695 Canal Street Deemed Incomplete on 10/31/2018 & 3/26/2019 New concept drawings reviewed, Incomplete on 7/23/2020 3/27/2018 SA 18-04 E 17-10 Lewis Development Residential Project (707 Homes) 1167-151-22, 68, 71, 73, 74, 75 Incomplete on 3/27/2018 Major Applications – Specific Plan Date Submitted Case No. Applicant Description Location Status 12/8/2017 SP 17-01 E 17-10 Lewis Development Specific Plan East side of the 215 Fwy. Revised draft March 2018. EIR work being performed Page 31 C.4.a Packet Pg. 52 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Major Applications – Conditional Use Permit Date Submitted Case No. Applicant Description Location Status 1/2/2019 CUP 19-01 SA 19-03 E 19-05 GrandT-1 Inc. Industrial Semi- Trailer Storage Facility APN: 0275- 191-06, 30 The PC appeal was approved by the City Council on 8/25/020 9/17/2017 CUP 17-08 E 17-07 National Logistics Team Recycling Pallets 21496 Main Street Incomplete on 10/18/2017 & 2/27/2018. Initial Study being prepared Administrative Applications Date Submitted Case No. Applicant Description Location Status 9/10/2020 ASA 20-04 E 20-04 Christopher Pena House Addition 23146 Vista Grande Way In Review 11/7/2019 ASA 19-11 E 19-12 Paul Bustos Parking Lot Addition 22038 Van Buren Deemed Incomplete on 12/18/2019 10/28/2019 LL 19-01 Boyes and Sons Lot Line Adjustment 23173 Vista Grande Way Deemed Incomplete on 1/14/2020 Land Use Review Date Submitted Case No. Applicant Description Location Status 9/28/2020 LU 20-75 Onesimo Gonzalez Patio 22838 Minona Drive Approved 9/23/2020 LU 20-74 Amada Diaz Tinting Services 12210 Michigan Street Approved 9/18/2020 LU 20-73 Siggy Carreon Light Manufacturing 21800 Barton Road, Unit 113 Approved 9/14/2020 LU 20-72 Loud Burger Restaurant 22497 Barton Road Approved 9/1/2020 LU 20-71 McKeehan Ellen Patio 12623 Eagle Court Approved 9/10/2020 LU 20-70 Zuelika Zicotencatl Social Worker 12139 Mt. Vernon Approved 9/10/2020 LU 20-69 Nancy Murcia Vinyl Fence 22255 Emerald Street Approved 9/8/2020 LU 20-68 Ana Obando Patio 12212 Stonewood Drive Approved 9/8/2020 LU 20-67 Terri Sanchez Window Replacement 22611 Raven Way Approved 9/4/2020 LU 20-66 Mongolian BBQ Temp. Outdoor Dining 22417 Barton Road Approved 9/2/2020 LU 20-65 Mike Miller Temp. Outdoor Dining 22400 Barton Road, Unit 1 Approved 9/2/2020 LU 20-64 Sandra Martin Temp. Outdoor Dining 22400 Barton Road Approved 9/2/2020 LU 20-63 Gokstad Group Temporary Outdoor Dining 22411 Barton Road Approved Page 32 C.4.a Packet Pg. 53 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) 9/2/2020 LU 20-62 Gokstad Group Temporary Outdoor Dining 22409 Barton Road Approved 9/2/2020 LU 20-61 Eileen Mc Mangmon Temporary Outdoor Dining 12461 Vivienda Avenue Approved 9/2/2020 LU 20-60 The Bear Room Temporary Outdoor Dining 22587 Barton Road Approved 8/31/2020 LU 20-58 Diana Fonseca Block Wall 22601 Raven Way Approved 8/26/2020 LU 20-54 Ilyas Vaid Shed 22386 De Soto Street Approved 8/25/2020 LU 20-53 Anita Jacob All State Insurance 12139 Mt. Vernon Ave Approved 8/20/2020 LU 20-51 Alton Green Retaining Wall 22081 De Berry Street Incompleteness Letter 9/16/2020 4/15/2019 LU 19-31 Ricky Komorida Café Lounge 22417 Barton Road Resubmittal received on 6/23/2020 Second Incompleteness letter prepared on 8/17/2020 Sign Application Date Submitted Case No. Applicant Description Location Status 9/23/2020 TEMP SGN 20-13 Jeremy Briggs Temp Political Signs Approved 9/10/2020 TEMP SGN 20-12 Jeff Allen Temp Political Signs Approved 9/8/2020 SGN 20-04 Taco Bell Wall and Monument 22172 Barton Road Approved Page 33 C.4.a Packet Pg. 54 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) BUILDING AND SAFETY DIVISION Building and Safety and Planning Core Services ➢ Permit New Businesses ➢ Permit Alterations to Existing Uses ➢ Zoning Code & General Plan Administration ➢ RDA Dissolution ➢ Planning Commission ➢ Building Permit Issuance ➢ Building Plans Review & Inspections The Building and Safety Division is budgeted for one full time Permit Technician and one full time Building Official. The Building Official position is currently being filled through a contract with Interwest Consulting Group. These two positions constitute up to 240 monthly service hours. Additionally, the Department budgets for plan checking and inspection services. Inspection services are conducted daily. The cost of these services is offset through the collection of fees and deposits. Activity Summary for Building and Safety Building Permit Activity includes 40 permits issued in September. Year to date a total of 117 permits have been issued with a total revenue of $36,178.97. In addition, a total number of 61 customers were assisted at the Building & Safety counter for the month of September. Monthly Revenue Year to Date Revenue $8,251.42 $36,178.97 Permit Activity -September 2020 Applications recv'd (43)Permits issued (40) Permits final (28)Business Occupancies (2) Expired Permits (4) Permit Activity -Year to Date Applications recv'd (123)Permits issued (117) Permits final (93)Business Occupancies (6) Expired Permits (9) Page 34 C.4.a Packet Pg. 55 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Permits Issued Permits issued in September include, HVAC replacements, block walls, re-roofs, PV solar, patio covers, and residential remodels. Permits mostly consisted residential work. * Residential Alteration / Repair consists of: Remodels, Room Additions, Stucco / Siding Work, Interior Demolition / Construction of Walls, Windows, Garage Doors. Residential Permits Issued-September 2020 (N) SFR (0)Block Wall (0)Reroofs (7)Water Heater / Plumbing (1) HVAC Mechanical (7)Solar (7)Panel Upgrades / Electrical (7)Patio Covers (2) Res. Alteration / Addition (9)Demolition (0) Page 35 C.4.a Packet Pg. 56 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) * Residential Alteration / Repair consists of: Remodels, Room Additions, Stucco / Siding Work, Interior Demolition / Construction of Walls, Windows, Garage Doors. Residential Permits Issued-Year to Date FY 2020-2021 SFR New (1)Block Walls / Retaining Walls (4)Reroofs (34) Water Heater / Plumbing (6)HVAC Mechanical (17)Solar (15) Panel Upgrades / Electrical (13)Patio Covers (4)Residential Alteration / Repair (19) Pools/Spa (0)Grading (0) Commercial Permits Issued -Year to Date FY 2020-21 Commercial Tenant Improvement (0) Signs (0) Electrical (2) Demolition (1) Page 36 C.4.a Packet Pg. 57 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Inspections A total of 57 inspections were conducted in September, with 34 of them being final inspections. Major Projects Under Construction Major projects under construction include demolition of an existing building for a proposed new 2,080 square foot Taco Bell restaurant located at 22172 Barton Rd. Other ongoing projects also include construction of new single-family residences on 12040 La Cadena Dr. and 23400 Westwood St. Project Description/Location Status Tim Boyes, Vista Grande Way Parcel Map 16945 – Street Improvement Project & Rough Grading (Vista Grande Way) Grading pre-construction meeting held in June 2019. Anel Aguayo – 12040 La Cadena Dr. 12040 La Cadena Dr. – Precise grading for new single-family residence Sheath/Shear inspection complete Frank Randall 23400 Westwood St. 23400 Westwood St. – Precise grading & new single-family residence Under Construction CM Corp 22172 Barton Rd. 22172 Barton Rd. – Precise grading and street improvements for new 2,080 sq. ft. Taco Bell Under Construction 0 50 100 150 200 BUILDING ELECTRICAL MECHANICAL PLUMBING DEMOLITION TOTAL NUMBER OF INSPECTIONS CONDUCTED July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Page 37 C.4.a Packet Pg. 58 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Plan Checking Activity For September 2020, a total number of nine plans were submitted for review and re- submittal. Plans submitted include, PV solar, residential remodel, and patio covers. Project Description/Location Status Tim Boyes, Vista Grande Way Parcel Map 16945 – Precise grading for (1) lot / (N) SFR In Plan Check – (N) SFR and precise grading plans issued corrections Richardson’s RV – 12438 Michigan St 12438 Michigan St. – Precise grading for RV parking lot In Plan Check – Precise grading plans issued corrections Jonathon Weber – 22172 Barton Rd. 22172 Barton Rd. – Grading & Plans for (N) 2,195 sq. ft. Taco Bell restaurant In Plan Check – Provided 2nd set of corrections to applicant Paul Tickner – 22633 Palm Ave. 22633 Palm Ave. – Interior remodel of commercial kitchen for Azure Hills Church In Plan Check – Provided 1st set of corrections to applicant Komos Café – 22417 Barton Rd. 22417 Barton Rd. – Tenant Improvement for Komos Café In Plan Check – Provided 1st set of corrections to applicant Loud Burger – 22497 Barton Rd. 22497 Barton Rd. – Tenant Improvement for Loud Burger In Plan Check – Provided 1st set of corrections to applicant Public Works Encroachment Permits Ten Public Works/Encroachment Permit applications were taken in for the month of September. Six permits were issued for the month, which includes applications that were received in the previous month. 0 5 10 15 20 25 30 SoCal Gas Edison Optimum AT&T Other Total Encroachment Permits Issued July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Page 38 C.4.a Packet Pg. 59 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) ANIMAL CONTROL AND CODE ENFORCEMENT DIVISION Core Services ➢ Zoning & Municipal Code Enforcement ➢ Animal Control Services ➢ Street Sweeping Traffic Enforcement The Division is budgeted for one full time Officer, a 20-hour Specialist, and a full- time Office Specialist. On-call coverage is provided to handle after hour emergency animal control calls. The City is divided into seven zones, including commercial centers, and the zones are inspected on a continual rotating basis over a two-week period. A set route is driven each day in addition to the zones. The route includes Mount Vernon Avenue, Main Street, Michigan Street, Barton Road, Preston Street, Palm Avenue, Observation Drive, and Van Buren Street. Activity Summary for Code Enforcement Code Enforcement had 67 cases carried over from the previous month, 70 new cases opened, and 66 cases were closed. The Division closed out September with 71 open cases. The chart below demonstrates a breakdown of Code cases by detailing how many cases were carried over from the previous month, opened, closed, and still being addressed. 45 67 71 52 70 52 33 66 54 67 71 69 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2020/2021 CODE CASES Number of Cases Carried Over Number of Cases Opened Number of Cases Closed Number of Cases In Process Page 39 C.4.a Packet Pg. 60 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) The following table shows the number of inspections conducted, the number of citations, and corrective notices issued. Column1 Jul Aug Sep Inspections Conducted 85 118 110 Notice of Corrections Issued 41 67 33 Notice of Violations Issued 24 20 13 Citations Issued 7 10 7 *The number of corrections issued does not include vehicle related complaints, illegal dumping referred to Burrtec, or homelessness on public property referred Sheriff’s Department. Weekend Code Enforcement Activities The Weekend Animal Control/Code Enforcement Specialist patrols the weekends and conducts zone inspections and scheduled re-inspections. Weekend code enforcement also handles code violations such as unpermitted yard sales, open house signs, and parking violations. The table below demonstrates weekend code enforcement activities by type for this fiscal year. Parking Citations: In September, 282 vehicle related citations were issued; 218 of the citations issued were related to street sweeping enforcement. Street Sweeping in residential areas occurs on the first, second, and third Thursdays of each month. 3 3 410 24 10 6 11 6 5 5 21 26 27 11 17 15 JULY AUG SEP Weekend Code Enforcement Graffiti Unpermitted Yard sale signs Open house and other signs Illegal Dumping Follow-up inspections Parking violations Page 40 C.4.a Packet Pg. 61 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) As of June 4th, Code Enforcement has resumed issuing street sweeping citations for vehicles parked on the street during street sweeping hours which was discontinued due to COVID-19. Other parking citations include expired registration, parking on unpaved surfaces, and commercial vehicles in residential areas. Parking citations are issued by Code Enforcement Staff, as well as Sheriff Deputies. Graffiti/Vandalism/Illegal Dumping There was 5 cases of illegal dumping and 4 cases of graffiti reported in September. One case of graffiti is still being addressed. 216 204 218 Jul Aug Sep # o f C i t a t i o n s Street Sweeping Citations Jul Aug Sep Parking Facing Wrong Direction 8 5 5 Vehicles Blocking Sidewalk/Driveway 14 12 11 Other Parking Violations 8 6 20 Expired Registration/Missing plates or tabs 21 3 10 Commercial Vehicle Violations 3 0 1 Recreational Vehicle Violations 8 1 10 Vehicles on Unpaved Surface 2 0 0 72 Hour Parking Warning/Cite 15 5 7 0 10 20 30 40 50 60 70 80 90 Other Parking Citations 2019/2020 Page 41 C.4.a Packet Pg. 62 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Non-Owner Occupied/Rental Property Program There are approximately 367 properties in the Program, consisting of both single-family units and multiple family units (i.e. apartments, duplexes, and triplexes). Eighty-eight properties are enrolled in the Good Landlord/Tenant Program signifying they have kept well-maintained properties and have passed inspections for three consecutive years. Property owners in the Good Landlord Program also receive reduced inspection fees and windshield inspections. In August, Code Enforcement issued an Application for Non-Owner Occupied/Rental Inspection to current rental property owners to add additional rental properties, renew information, or if qualified, opt out of the program. Owners may currently opt out of the program if their entire home is owner/family occupied (as a courtesy), if they no longer own the property, or if the property is a condominium in which ownership consists of the interior only. As a result of the notices 14 properties have been approved to opt out of the program changing the sum of rentals from 381 to 367. In November, Code Enforcement will issue annual Non-owner Occupied/Rental renewal notices for all properties enrolled in our program and renewal fees are due January 1st. Civic Live There were 18 complaints received via Civic Live in September 2020 generally pertaining to animal related, property maintenance, and vehicle issues. 8 cases have been resolved, one case was referred to our arborist, and 9 cases are still being worked by Code Enforcement. Animal Control Services With the implementation of Animal Control Services, the City has instituted the practice of first making every effort to return stray dogs to its owner, by checking it for tags or microchip. If the owner cannot be identified, the City will place a photograph of the impounded animal on the City’s Facebook page so that owners can reclaim their pet. Animal Control is also working to identify animals via Facebook who have been sent to the animal shelter and have since been returned to their owner so their status can be updated for the public. If the dog is unlicensed the owner will be given a citation, but the fine is dismissed if the dog is licensed within 7 days. Page 42 C.4.a Packet Pg. 63 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Animal Control Sheltering Services Jul Aug Sep Animal Intakes Strays 2 0 3 Stray Dead 3 7 4 Owner Surrender 2 0 0 Other 3 5 1 Total 10 12 8 Animal Disposition Adopted 2 1 2 Returned to Owner 0 3 0 Euthanized 0 0 1 Other 0 1 0 Total 2 5 3 The following stats are from Grand Terrace Animal Control. 0 2 4 6 8 10 12 14 JUL AUG SEP 1 1 2 11 1 0 1 3 2 14 11 0 1 2 10 Animal Control Investigations Barking Complaints Unlicensed Dogs Loose Dogs Loose Dogs Returned to Owner Animal Welfare Check Dead Animals Bites Other (unfounded, wildlife, etc.) Page 43 C.4.a Packet Pg. 64 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Dog Licensing Revenue Jul Aug Sep Oct Nov Dec Over the Counter Dog License Revenue $ 503.00 $ 581.00 $ 1312.00 Jul Aug Sep Oct Nov Dec Online Dog License Revenue $ 253.00 $ 223.00 $ 30.00 $503.00 $581.00 $1,312.00 $- $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 Jul Aug Sep Dog License Revenue (Over the Counter) $253.00 $223.00 $30.00 $- $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 Jul Aug Sep Dog License Revenue (Online) Page 44 C.4.a Packet Pg. 65 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Jul Aug Sep Oct Nov Dec Combined Dog License Revenue $ 756.00 $ 804.00 $ 1342.00 $ - $ - $ - $756.00 $804.00 $1,342.00 $- $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 $1,400.00 $1,600.00 Jul Aug Sep Combined Dog License Revenue Page 45 C.4.a Packet Pg. 66 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) PUBLIC WORKS DIVISION Work Release Hours Maintenance was supplemented by 136 work releases hours during the month of September. September 2020 REQUEST RECEIVED THIS MONTH REQUEST RESOLVED THIS MONTH REQUEST IN PROCESS CIVICLIVE WORK ORDERS ONLY 62 56 6 REQUEST ROLLOVER FROM PREVIOUS MONTHS 23 TOTAL WORK ORDERS TO BE COMPLETED 29 SEPTEMBER 2020 (62 work orders) Drainage Issues 10% Internal Issue with Park/Facility Equipment 6% Illegal Dumping 13% Internal Event Set- up/BreakDowns 5% INTERNAL-General Office 10% Sidewalk Issues 0% Issue with Park/Facility Equipment 2% Overgrown Grass / Weeds 16% Pothole 3% Tree Issues 6% Street Sign Issues 2% Property Maintenance 8% Internal Street Signs Issues 0% Other 2% Graffiti 3% Water Leak Issue 8% Internal Tree Issues 3% Internal Drainage Issue 2% Internal Sidewalk Issue 2% Internal Overgrown Vegatation 0% SEPTEMBER 2020 CIVIC LIVE WORK ORDERS CICIVIC LIVE MONTHLY STATS CITY OF GRAND TERRACE Page 46 C.4.a Packet Pg. 67 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Potholes The table below shows the potholes reported via Civic Live for the current calendar year. It takes on average 8.95 days to have a pothole repaired. Factors that contribute to delays are staffing issues, size of potholes, and readily available supplies dependent on the size of the pothole. No. Location Date Reported Date Repaired # Days Reported By 226532 Michigan St south of Deberry 1/2/2020 1/9/2020 7 Alan 226664 Pico between Michigan/Mt Vernon 1/3/2020 1/21/2020 18 Civic Live 229338 Michigan, De Berry, Mt Vernon 1/8/2020 1/9/2020 1 Civic Live 233311 12344 Whistler 1/16/2020 1/21/2020 5 Civic Live 233401 Barton Rd near dental clinic 1/16/2020 1/21/2020 5 Civic Live 236607 Barton Rd in front of Bank of America 1/16/2020 1/21/2020 5 Civic Live 239008 N Van Buren 1/28/2020 1/28/2020 0 Civic Live 239327 La Cadena/Litton #1land s/b 1/29/2020 1/30/2020 1 Civic Live 240840 Mt Vernon south of Van Buren 1/31/2020 2/3/2020 3 Civic Live 244003 21971 De Berry 2/6/2020 2/10/2020 4 Civic Live 248309 Rosedale from Saville to Palm s/b 2/13/2020 2/14/2020 1 Civic Live 256460 w/b Palm Ave 2/28/2020 3/3/2020 4 Alan 257513 s/b lane of Mt Vernon south of Barton Rd 3/2/2020 3/3/2020 1 Alan 257546 w/b Westwood Ave 3/2/2020 3/3/2020 1 Civic Live 272187 Garden/Pico St 3/27/2020 3/31/2020 4 Civic Live 274101 Warbler/Thrush near gutter 3/31/2020 4/1/2020 1 Civic Live 287828 22430 Pico 4/27/2020 5/15/2020 18 Civic Live 290576 Palm and Observation (cross gutter) 5/1/2020 5/20/2020 19 Ruben 290576 N Jensen and Palm 5/1/2020 5/20/2020 19 Ruben 290576 Barton westbound before Colton city limits 5/1/2020 5/20/2020 19 Ruben 290576 Mt Vernon north of Barton Rd 5/1/2020 5/20/2020 19 Ruben 297007 SW Corner of Van Buren and Michigan 5/12/2020 5/15/2020 3 Kristin 297248 22122 Deberry 5/12/2020 5/15/2020 3 Kristin 300994 12043 Mt Vernon 5/19/2020 5/19/2020 0 Alan 290576 Michigan/ Mt Vernon East 5/1/2020 5/20/2020 19 Ruben 290576 Michigan/ Mt Vernon West 5/1/2020 5/20/2020 19 Ruben 290576 La Cadena n/b Palm/Litton 5/1/2020 5/20/2020 19 Ruben Page 47 C.4.a Packet Pg. 68 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) 290576 La Cadena s/b Litton/Palm 5/1/2020 5/20/2020 19 Ruben 290576 Michigan/ Pico (cross gutter) 5/1/2020 5/20/2020 19 Ruben 290576 Barton (before Colton) Brudge (Tapout building) 5/1/2020 5/20/2020 19 Ruben 309257 22522 Van Buren St 6/1/2020 6/2/2020 1 Alan 314635 11881 Mt Vernon 6/9/2020 7/13/2020 34 Civic Live 316125 22475 Raven Way 6/10/2020 6/16/2020 6 Civic Live 317516 23064 Barton Rd 6/12/2020 6/22/2020 10 Civic Live 317952 22576 Pico 6/13/2020 6/22/2020 9 Civic Live 347210 22322 Van Buren 7/16/2020 7/28/2020 12 Civic Live 348456 22466 Van Buren 7/19/2020 7/28/2020 9 Civic Live 351402 Mt Vernon s/b #1 north of Van Buren 7/23/2020 7/29/2020 6 Civic Live 352187 Palm Ave past triangle 7/24/2020 7/28/2020 4 Civic Live 357374 12710 Garden 8/1/2020 8/10/2020 9 Civic Live 363976 Litton St 8/11/2020 Ruben 368575 Van Buren/ Mt Vernon 8/18/2020 Ruben 371512 Oriole/ De Berry 8/23/2020 Kristin 375412 22735 Raven Way 8/28/2020 Civic Live 378641 Barton/Mt Vernon 9/2/2020 9/3/2020 1 Ruben 392966 22905 Arliss 9/23/2020 Civic Live Park Shelter Reservations and Community Room Reservations Park and Community Room reservations have been affected by COVID-19 and it is open for limited use. Park Maintenance Park Grass mowed Full-service planter maintenance Gopher service Restroom service (a.m.) Trash receptacle service Richard Rollins Park Weekly Once Once Daily M-Fr, S* Pico Park Weekly Once Once Daily M-Fr, S* TJ Austin Park Weekly Once --- --- M-Fr, S* Gwen Karger Park Weekly Once --- --- M-Fr, S* Fitness Park --- Once (pull weeds) Daily M-Fr, S* Griffin Park --- Location Grass mowed Full-service planter maintenance Trash service receptacle Page 48 C.4.a Packet Pg. 69 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Greenbelt Weekly Once Canal Strip Weekly --- Oriole slope --- Once Orange Grove Parkway --- Once (pull weeds) Civic Center Weekly Once Daily Bike Stations Bi-monthly M & Th Page 49 C.4.a Packet Pg. 70 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) City of Grand Terrace Public Works Department Public Works • Engineering • Waste Generation Report • Missed Pick-Up Report • Public Works Administration • CIP Contracts Page 50 C.4.a Packet Pg. 71 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) DATE: October 1, 2020 TO: G. Harold Duffey, City Manager City Manager’s Office FROM: Public Works Department SUBJECT: September 2020-MONTHLY REPORT - PUBLIC WORKS DEPARTMENT This monthly report is presented to the City Manager to keep him informed of the activities within the Public Works Maintenance Department. Engineering Division The Engineering Division is responsible for managing the City’s Capital Improvement Program (CIP). This includes for the administration, planning, programming, design, construction management, and construction of capital projects throughout the City. Grant funding (when available) are sought after to supplement project funding. The following table summarizes the current projects, status and associated funding source(s). Project Name Funds Status Fund Source(s) Barton Bridge Replacement Project $ 3,500,000 Preliminary Design Started, technical studies started Fed, State, City Commerce Way Extension $ 5,500,000 Completed Final Design of City Section, coordinating with developer on southern portion and grant funding State, City CIP Year 3 Street Slurry/Resurfacing combined with Year 4 $1,600,000 Assemble Bid Package, funding from LCC bond sale in July State, City HSIP Cycle 8, Mt. Vernon Safety Project $350,000 Received additional grant funding to complete project. Coordinating with contractor to complete project Federal Grant HSIP Cycle 9 Guardrail Project $650,000 Prepared Preliminary Engineering Documents and requested proposals, no proposals submitted Federal Grant EV Charging Stations $180,000 Easement in process for SCE, equipment, submitted grant paperwork MSRC, SCIP, AQMD Grants Grand Terrace, north of Newport Ave. Rehabilitation and Resurfacing $60,000 Joint emergency project with SCE to rehabilitate and resurface street. Project completed. Notice of Completion filed. City Preston Signal Modification $117,000 Project completed Final Payment and Notice of Completion Spring Mountain Ranch Fund, DIF and Insurance Settlement Page 51 C.4.a Packet Pg. 72 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) WORK RELEASE HOURS Maintenance was supplemented by 136 work releases hours during the month of September. September 2020 REQUEST RECEIVED THIS MONTH REQUEST RESOLVED THIS MONTH REQUEST IN PROCESS CIVICLIVE WORK ORDERS ONLY 62 56 6 REQUEST ROLLOVER FROM PREVIOUS MONTHS 23 TOTAL WORK ORDERS TO BE COMPLETED 29 SEPTEMBER 2020 (62 work orders) # Status Open Date Resolved Date Type 377358 resolved 09/01/2020 09:02 10/05/2020 Overgrown Grass / Weeds 377362 resolved 09/01/2020 09:06 09/03/2020 Illegal Dumping 377681 resolved 09/01/2020 13:19 09/03/2020 Illegal Dumping 377683 resolved 09/01/2020 13:19 09/03/2020 Illegal Dumping 378626 resolved 09/02/2020 12:46 09/03/2020 Property Maintenance 378632 resolved 09/02/2020 12:48 09/03/2020 Property Maintenance 378634 resolved 09/02/2020 12:50 09/03/2020 Drainage Issues 378638 resolved 09/02/2020 12:52 09/15/2020 Overgrown Grass / Weeds 378641 resolved 09/02/2020 12:54 09/03/2020 Pothole 378645 resolved 09/02/2020 12:56 09/15/2020 Overgrown Grass / Weeds 379075 resolved 09/03/2020 07:10 09/15/2020 Overgrown Grass / Weeds 379076 resolved 09/03/2020 07:12 09/03/2020 Illegal Dumping 379081 resolved 09/03/2020 07:13 10/06/2020 Overgrown Grass / Weeds 379089 resolved 09/03/2020 07:15 09/15/2020 Overgrown Grass / Weeds 379091 resolved 09/03/2020 07:18 09/29/2020 Overgrown Grass / Weeds 379337 received 09/03/2020 10:10 -- Drainage Issues 379340 received 09/03/2020 10:10 -- Drainage Issues 380318 resolved 09/04/2020 13:41 09/04/2020 Property Maintenance 380320 resolved 09/04/2020 13:44 09/15/2020 Overgrown Grass / Weeds 380322 resolved 09/04/2020 13:48 09/15/2020 Overgrown Grass / Weeds 380888 resolved 09/06/2020 14:10 09/15/2020 Internal Tree Issues CICIVIC LIVE MONTHLY STATS CITY OF GRAND TERRACE Page 52 C.4.a Packet Pg. 73 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) 382509 resolved 09/09/2020 08:30 09/17/2020 Illegal Dumping 383048 resolved 09/09/2020 16:40 09/15/2020 Tree Issues 383052 resolved 09/09/2020 16:41 09/29/2020 Overgrown Grass / Weeds 385342 resolved 09/13/2020 11:25 09/29/2020 Graffiti 385406 resolved 09/13/2020 13:06 09/15/2020 Drainage Issues 386977 received 09/15/2020 09:06 -- Drainage Issues 387374 resolved 09/15/2020 15:24 09/17/2020 Property Maintenance 388839 resolved 09/17/2020 11:14 09/22/2020 Property Maintenance 388843 resolved 09/17/2020 11:16 10/08/2020 INTERNAL- General Office 389018 resolved 09/17/2020 14:08 09/18/2020 Water Leak Issue 389241 resolved 09/18/2020 06:25 09/18/2020 Internal Issue with Park/Facility Equipment 389242 resolved 09/18/2020 06:28 09/18/2020 Internal Drainage Issues 389244 resolved 09/18/2020 06:29 09/18/2020 Internal Issue with Park/Facility Equipment 389379 resolved 09/18/2020 08:47 10/06/2020 Graffiti 389388 resolved 09/18/2020 09:24 09/21/2020 Illegal Dumping 389522 resolved 09/18/2020 12:10 09/29/2020 Internal Event Set-up/BreakDowns 389525 resolved 09/18/2020 12:10 09/29/2020 INTERNAL- General Office 389528 resolved 09/18/2020 12:12 09/25/2020 Drainage Issues 389616 resolved 09/18/2020 13:40 10/08/2020 Tree Issues 390269 resolved 09/20/2020 08:21 09/23/2020 Illegal Dumping 390962 resolved 09/21/2020 10:03 09/21/2020 Water Leak Issue 392702 resolved 09/23/2020 10:28 10/06/2020 Street Sign issues 392904 resolved 09/23/2020 13:12 09/23/2020 Internal Tree Issues 392906 resolved 09/23/2020 13:14 09/23/2020 Issue with Park/Facility Equipment 392907 resolved 09/23/2020 13:16 09/23/2020 Internal Issue with Park/Facility Equipment 392966 received 09/23/2020 14:57 -- Pothole 393619 resolved 09/24/2020 11:52 09/29/2020 Tree Issues 393620 resolved 09/24/2020 11:53 09/25/2020 INTERNAL- General Office 394025 resolved 09/25/2020 06:18 09/25/2020 Internal Sidewalk Issue 394026 resolved 09/25/2020 06:19 10/05/2020 Internal Issue with Park/Facility Equipment 394032 resolved 09/25/2020 06:26 09/30/2020 Water Leak Issue 395577 resolved 09/28/2020 08:58 10/14/2020 INTERNAL- General Office 395745 received 09/28/2020 10:48 -- Tree Issues 396669 resolved 09/29/2020 12:36 09/30/2020 INTERNAL- General Office 397011 resolved 09/30/2020 05:56 09/30/2020 Internal Overgrown Grass/Weeds 397012 resolved 09/30/2020 05:57 10/06/2020 Internal Overgrown Grass/Weeds 397035 resolved 09/30/2020 06:22 10/06/2020 Other 397047 resolved 09/30/2020 06:46 10/05/2020 Illegal Dumping 397418 canceled 09/30/2020 11:10 10/05/2020 INTERNAL- General Office 397563 resolved 09/30/2020 14:16 09/30/2020 Internal Event Set-up/BreakDowns 397564 resolved 09/30/2020 14:17 09/30/2020 Internal Event Set-up/BreakDowns Page 53 C.4.a Packet Pg. 74 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Potholes The table below shows the potholes reported via Civic Live for the current calendar year. It takes on average 8.95 days to have a pothole repaired. Factors that contribute to delays are staffing issues, size of potholes, and readily available supplies dependent on the size of the pothole. No. Location Date Reported Date Repaired # Days Reported By 226532 Michigan St south of Deberry 1/2/2020 1/9/2020 7 Alan 226664 Pico between Michigan/Mt Vernon 1/3/2020 1/21/2020 18 Civic Live 229338 Michigan, De Berry, Mt Vernon 1/8/2020 1/9/2020 1 Civic Live 233311 12344 Whistler 1/16/2020 1/21/2020 5 Civic Live 233401 Barton Rd near dental clinic 1/16/2020 1/21/2020 5 Civic Live 236607 Barton Rd in front of Bank of America 1/16/2020 1/21/2020 5 Civic Live 239008 N Van Buren 1/28/2020 1/28/2020 0 Civic Live 239327 La Cadena/Litton #1land s/b 1/29/2020 1/30/2020 1 Civic Live 240840 Mt Vernon south of Van Buren 1/31/2020 2/3/2020 3 Civic Live 244003 21971 De Berry 2/6/2020 2/10/2020 4 Civic Live Drainage Issues 10% Internal Issue with Park/Facility Equipment 6% Illegal Dumping 13% Internal Event Set- up/BreakDowns 5% INTERNAL-General Office 10% Sidewalk Issues 0% Issue with Park/Facility Equipment 2% Overgrown Grass / Weeds 16% Pothole 3% Tree Issues 6% Street Sign Issues 2% Property Maintenance 8% Internal Street Signs Issues 0% Other 2% Graffiti 3% Water Leak Issue 8% Internal Tree Issues 3% Internal Drainage Issue 2% Internal Sidewalk Issue 2% Internal Overgrown Vegatation 0% SEPTEMBER 2020 CIVIC LIVE WORK ORDERS Page 54 C.4.a Packet Pg. 75 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) 248309 Rosedale from Saville to Palm s/b 2/13/2020 2/14/2020 1 Civic Live 256460 w/b Palm Ave 2/28/2020 3/3/2020 4 Alan 257513 s/b lane of Mt Vernon south of Barton Rd 3/2/2020 3/3/2020 1 Alan 257546 w/b Westwood Ave 3/2/2020 3/3/2020 1 Civic Live 272187 Garden/Pico St 3/27/2020 3/31/2020 4 Civic Live 274101 Warbler/Thrush near gutter 3/31/2020 4/1/2020 1 Civic Live 287828 22430 Pico 4/27/2020 5/15/2020 18 Civic Live 290576 Palm and Observation (cross gutter) 5/1/2020 5/20/2020 19 Ruben 290576 N Jensen and Palm 5/1/2020 5/20/2020 19 Ruben 290576 Barton westbound before Colton city limits 5/1/2020 5/20/2020 19 Ruben 290576 Mt Vernon north of Barton Rd 5/1/2020 5/20/2020 19 Ruben 297007 SW Corner of Van Buren and Michigan 5/12/2020 5/15/2020 3 Kristin 297248 22122 Deberry 5/12/2020 5/15/2020 3 Kristin 300994 12043 Mt Vernon 5/19/2020 5/19/2020 0 Alan 290576 Michigan/ Mt Vernon East 5/1/2020 5/20/2020 19 Ruben 290576 Michigan/ Mt Vernon West 5/1/2020 5/20/2020 19 Ruben 290576 La Cadena n/b Palm/Litton 5/1/2020 5/20/2020 19 Ruben 290576 La Cadena s/b Litton/Palm 5/1/2020 5/20/2020 19 Ruben 290576 Michigan/ Pico (cross gutter) 5/1/2020 5/20/2020 19 Ruben 290576 Barton (before Colton) Brudge (Tapout building) 5/1/2020 5/20/2020 19 Ruben 309257 22522 Van Buren St 6/1/2020 6/2/2020 1 Alan 314635 11881 Mt Vernon 6/9/2020 7/13/2020 34 Civic Live 316125 22475 Raven Way 6/10/2020 6/16/2020 6 Civic Live 317516 23064 Barton Rd 6/12/2020 6/22/2020 10 Civic Live 317952 22576 Pico 6/13/2020 6/22/2020 9 Civic Live 347210 22322 Van Buren 7/16/2020 7/28/2020 12 Civic Live 348456 22466 Van Buren 7/19/2020 7/28/2020 9 Civic Live 351402 Mt Vernon s/b #1 north of Van Buren 7/23/2020 7/29/2020 6 Civic Live 352187 Palm Ave past triangle 7/24/2020 7/28/2020 4 Civic Live 357374 12710 Garden 8/1/2020 8/10/2020 9 Civic Live 363976 Litton St 8/11/2020 Ruben 368575 Van Buren/ Mt Vernon 8/18/2020 Ruben 371512 Oriole/ De Berry 8/23/2020 Kristin Page 55 C.4.a Packet Pg. 76 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) 375412 22735 Raven Way 8/28/2020 Civic Live 378641 Barton/Mt Vernon 9/2/2020 9/3/2020 1 Ruben 392966 22905 Arliss 9/23/2020 Civic Live Park Shelter Reservations and Community Room Reservations Park and Community Room reservations have been affected by COVID-19 and it is open for limited use. Park Maintenance Park Grass mowed Full-service planter maintenance Gopher service Restroom service (a.m.) Trash receptacle service Richard Rollins Park Weekly Once Once Daily M-Fr, S* Pico Park Weekly Once Once Daily M-Fr, S* TJ Austin Park Weekly Once --- --- M-Fr, S* Gwen Karger Park Weekly Once --- --- M-Fr, S* Fitness Park --- Once (pull weeds) Daily M-Fr, S* Griffin Park --- Location Grass mowed Full-service planter maintenance Trash service receptacle Greenbelt Weekly Once Canal Strip Weekly --- Oriole slope --- Once Orange Grove Parkway --- Once (pull weeds) Civic Center Weekly Once Daily Bike Stations Bi-monthly M & Th Page 56 C.4.a Packet Pg. 77 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Waste Management Services Burrtec Waste Industries Waste Generation Report: - Burrtec releases Waste Generation Reports two months following month of service. - Year-to-Date (YTD) Summaries are also available August 2020: Concise Waste Generation Report (Unit of Measure: Tons) Service Description Refuse Recycling E-Waste Green- waste Tires Tin/ White Scrap Metal Inert C&D Food Comm’l Select / Floor-sort Total Tonnage Generated Total Tonnage Generated by Category Residential 304.84 92.74 190.33 587.91 Christmas Tree Bulky Item 7.49 0.25 2.36 10.10 598.01 Residential Clean Up Multi-Family 92.96 5.13 6.37 104.46 104.46 Multi-Family Commercial 101.03 7.36 1.58 0.27 0.79 1.22 1.77 114.02 School 36.72 12.27 48.99 163.01 Commercial Roll off 48.82 8.00 56.82 56.82 Roll off Grand Total 591.86 117.50 0.25 198.28 0.27 2.36 0.79 8.00 1.22 1.77 922.30 Page 57 C.4.a Packet Pg. 78 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r City of Grand Terrace Public Works Department Public Works Administration Contracts, Bids, Reports, Grants, Project Management & Events Contracts: Public Works Services for FY 2020-21: Contractor Name Service Contract Amount Remaining Balance as of SEP. 30, 2020 ACCO Engineered Systems HVAC Maintenance $22,850 $22,850 Albert A Webb Associates Commerce Way Final Design Southern Portion $170,880 $4,119 Clean Street Street Sweeping Services $54,508 $39,204 City of Colton Cooperative Agreement with Grand Terrace Traffic Signal Maintenance for signal on Litton Avenue N/A N/A EZ Sunnyday Landscape Landscape Maintenance $47,830 $31,700 Gopher Patrol Gopher Abatement Services $7,227 $4,047 Hardy and Harper, Inc Street Maintenance Services $10,000 $3,300 Interwest Consulting Group TKE Engineering, HR Green On-Call Public Works Inspection Services $40,000 $40,000 Interwest Consulting Group, TKE Engineering, WIlldan Group On-Call Engineering Services $50,000 $50,000 Interwest Consulting Group Interim Public Works Services $165,000 $152,070 Lynn Merrill NPDES Services $10,000 $10,000 Moran Janitorial Services Janitorial Services for City Hall and City Parks $19,980 $19,980 Otis Elevator Elevator Maintenance $5,291 $0 San Bernardino County Dept of Public Works – Flood Control Flood Control Facilities $22,770 $22,770 San Bernardino County Fire Dept – Hazardous Material Household Hazardous Waste (HHW) Services $18,065 $9,304 San Bernardino County Land Use Services Fire and Weed Hazard Abatement Services $13,526 $13,526 St. Francis Electric, LLC. Traffic Signal Maintenance Services $20,000 $19,561 County of Riverside TLMA Administration Main Street Traffic Signal Maintenance Services $6,000 $5,645 West Coast Arborist 5 Year Tree Maintenance Program $38,560 ($192,802: 5-yr term) $38,560 ($192,802: 5-yr term) Western Exterminator Co. Pest Control Services $7,502 $7,502 Willdan Engineering Services (incl. Landscape and Lighting Assessment District) $7,000 (paid with Dev. fees) N/A (Developer Fee and LLMD Assess.) TOTAL PUBLIC WORKS CONTRACT VALUE FOR FY 2020-21: $736,989 $494,138 balance Page 58 C.4.a Packet Pg. 79 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) FY 2020-21 Capital Improvement Project Contracts Contractor Name Service Contract Amount Contract Balance TSR Construction and Inspection Mt. Vernon Safety Improvement $367,208 $53,193 Interwest Consulting Group Commerce Way Extension Real Estate & Engineering Services $360,005 $229,627 TOTAL CIP PROJECT CONTRACT VALUE FOR FY 2020-21 $628,355 $282,820 Bids: - N/A Major Reports: Update on Emergency Rehabilitation of Grand Terrace Road, North of Newport Avenue Grand Terrace/Mount Vernon Intersection Safety Improvements Update Grants: - MSRC Funding for Clean Transportation Projects EV Chargers - HSIP – Highway Safety Improvement funding for Mt. Vernon Construction - HSIP – Guardrail Safety Project Project Management: - Senior Center ADA Door Installation - HSIP Cycle 9 Guardrail Project - HSIP – Highway Safety Improvement funding for Mt. Vernon Major Meetings / Events: - N/A Page 59 C.4.a Packet Pg. 80 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Sheriff’s Contract •Law Enforcement Services Page 60 C.4.a Packet Pg. 81 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) San Bernardino County Sheriff’s Department Services August 2020 September 2020 Officer Contact and Calls 1,278 1,193 Monthly Citation Data August 2020 September 2020 Stops 201 200 Citations Issued 75 56 Calls to Dispatch August September Emergency 1 1 Priority 1 112 133 Priority 2 68 46 Priority 3 140 180 Priority 4 78 106 Totals 399 466 1 1 112 133 68 46 140 180 78 106 0 50 100 150 200 250 300 350 400 450 500 Aug-20 Sep-20 Calls to Dispatch Emergency Priority 1 Priority 2 Priority 3 Priority 4 Page 61 C.4.a Packet Pg. 82 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Emergency – 911 calls (evaluated for substance). Priority 1 – Currently active, 15 minutes or less. Priority 3 – Calls over 30 minutes ago. Priority 2 – Just occurred, 15 minutes or more. Priority 4 – Incident calls, counter calls. Note: As dispatch receives more information during the call, the level of priority can change to a higher or lower level priority. Citizens on Patrol (COP) - Weekly Hours for March 2020: Mar. 9th Mar. 16th Total Hours 8 2 10 * - On March 17th all patrol activities for the Citizens on Patrol were suspended. Page 62 C.4.a Packet Pg. 83 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) San Bernardino County Fire Page 63 C.4.a Packet Pg. 84 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) City of Grand Terrace Fire Department Incidents 09/01/20 – 09/30/20 Call Type Number of Calls Carbon Monoxide Alarm 1 Commercial Investigation 1 Fire – Dumpster 1 Fire – Vegetation 3 Fire – Improvement 1 Fire – Residential Structure 6 Fire – Unknown Type 7 Medical Aid 93 Move Up (Cover Engine into FS#23) 9 Outside Electrical Incident 1 Outside Investigation 2 Public Service 4 Residential Alarm 3 Traffic Collision with Extrication 2 Traffic Collision with Injuries 1 Traffic Collision – Auto vs. Pedestrian 2 Traffic Collision Unknown Injuries 2 Page 64 C.4.a Packet Pg. 85 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) Call Type Number of Calls Traffic Collision Unknown Injuries - Freeway 2 Total Calls 141 Page 65 C.4.a Packet Pg. 86 At t a c h m e n t : S e p t e m b e r 2 0 2 0 M o n t h l y R e p o r t - F i n a l ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - S e p t e m b e r 2 0 2 0 ) AGENDA REPORT MEETING DATE: November 10, 2020 Council Item TITLE: Second Reading and Adoption of an Ordinance Establishing Procurement Procedures for Public Projects Pursuant to the Uniform Public Construction Cost Accounting Act and for Maintenance Work PRESENTED BY: Adrian Guerra, City Attorney RECOMMENDATION: Conduct second reading by title only, waive further reading of, and adopt an Ordinance Adding Chapter 3.26 To Title 3 And Amending Section 3.24.060 of Chapter 3.24 of Title 3 of The Grand Terrace Municipal Code, which establishes procurement procedures for Public Projects, pursuant to the Uniform Public Construction Cost Accounting Act, and for Maintenance Work. 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" by investing in critical improvements to infrastructure. BACKGROUND: At its October 27, 2020 regular meeting, the City Council adopted a resolution and introduced an ordinance which would establish public project purchasing procedures pursuant to the Uniform Public Construction Cost Accounting Act (“Act”). This ordinance establishes the same/similar purchasing procedures for “maintenance work” (defined by the Act). It is recommended that the City Council conduct second reading by title only, waive further reading, and adopt the proposed ordinance (attached). Adoption of this ordinance is the final step to allowing the City to utilize the Act. DISCUSSION: Chapter 3.24 of the Grand Terrace Municipal Code sets forth the City’s Purchasing System (“Purchasing System”). The Purchasing System is inapplicable to “public projects” governed by the Public Contract Code, which strictly requires formal bidding for public projects with estimated value of $5,000 or more. However, the Public Contract Code permits an alternative public project bidding procedure pursuant to the Act. The proposed ordinance implements the Act’s procurement procedures for public projects and adopts the Act’s requirements for “maintenance work” (e.g., routine, recurring, and usual work for the preservation or protection of any publicly owned or C.5 Packet Pg. 87 operated facility for its intended purposes). Under the Act, the City can use alternative bidding procedures for public projects as follows: 1. Public projects of $60,000 or less may be performed by negotiated contract or by purchase order; 2. Public projects greater than $60,000 but less than $200,000 may be contracted through informal bidding procedures set forth in the Act, which includes providing a notice inviting bid to a “contractor lists”; 3. Public projects of more than $200,000 must be contracted through traditional formal bidding procedures. The Act allows the City to perform public projects with its own workforce in an amount up to $60,000, if the City follows the Act’s accounting procedures. These accounting procedures require the City to track a public project’s labor, equipment, material, and overhead costs. The proposed ordinance adopts the same/similar requirements and procedures mentioned above for maintenance work. Further, the City Manager’s expenditure authority remains unchanged at $10,000 and the City Council retains its authority to award for public projects/maintenance work in excess of $10,000. FISCAL IMPACT: Streamlined procurement methods will reduce public works construction and maintenance costs. ATTACHMENTS: • GT Uniform Public Construction Cost Accounting Ordinance (003)(DOC) APPROVALS: Adrian Guerra Completed 11/03/2020 4:27 PM City Attorney Completed 11/03/2020 8:27 PM Finance Completed 11/04/2020 5:39 PM City Manager Completed 11/05/2020 1:53 PM City Council Pending 11/10/2020 6:00 PM C.5 Packet Pg. 88 01247.0006/673204.9 Ordinance No. ___ Page 1 of 9 _____, 2020 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ADDING CHAPTER 3.26 TO TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE AND AMENDING SECTION 3.24.060 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ESTABLISH PROCUREMENT PROCEDURES FOR PUBLIC PROJECTS, PURSUANT TO THE UNIFORM PUBLIC CONSTRUCTION COST ACCOUNTING ACT, AND FOR MAINTENANCE WORK WHEREAS, Public Contract Code Section 20100 et seq. establishes contracting, bidding, and other procedures for public projects. WHEREAS, the Uniform Public Construction Cost Accounting Act (codified at Public Contract Code Section 22000 et seq.) provides for an alternative procedure for the City to contracting, bidding and other procedures for public projects (“Act”), provided that the City adopt this informal bidding ordinance and a resolution electing to be subject to the public construction cost accounting procedures of the Act. WHEREAS, the City Council has adopted Resolution No. 2020-_____ electing to be subject to the public construction cost accounting procedures of the Act. WHEREAS, .the City Council now desires to adopt informal bidding requirements for public projects pursuant to the Act. WHEREAS, the City Council further desires to adopt bidding requirements for maintenance work. WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby specifically finds that all of the facts set forth in the above Recitals, are true and correct and are incorporated herein as findings of the City Council. SECTION 2. Section 3.24.060 (PUBLIC PROJECTS EXEMPTIONS) of Chapter 3.24 (PURCHASING SYSTEM) of Title 3 (REVENUE AND FINANCE) is hereby retitled and amended in its entirety as follows: “Section 3.24.060 – Public Projects And Maintenance Work Exemptions The procedures set forth in this chapter shall not apply to contracts for “public projects,” as defined in Public Contract Code Sections 20161 and 22002, or any applicable successor statute, and “maintenance work,” as C.5.a Packet Pg. 89 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s 01247.0006/673204.9 Ordinance No. xxx Page 2 of 9 October 27, 2020 defined by Public Contract Code 22002 and Chapter 3.26 (Bid Procedures for Public Projects and Maintenance Work), which are governed by the procedures set forth in Chapter 3.26 (Bid Procedures for Public Projects and Maintenance Work) and applicable provisions of the Public Contract Code.” SECTION 3. Chapter 3.26 (BID PROCEDURES FOR PUBLIC PROJECTS AND MAINTENANCE WORK) is hereby added to Title 3 (REVENUE AND FINANCE) as follows: “Chapter 3.26 – Bid Procedures for Public Projects and Maintenance Work 3.26.010 – Purpose. A. This chapter is intended to provide for the city’s purchasing procedures for public projects and maintenance work in a manner consistent with State law. B. The city has elected to become subject to the Uniform Public Construction Cost Accounting Act (Public Contract Code Section 22000 et seq.) and the contracting procedures set forth therein. Accordingly, the city may procure public projects by force account, negotiated contract, purchase order, informal bidding or formal bidding in accordance with the alternative procedures authorized by the Act and the applicable dollar amount limitations set forth in Section 22032 of the Act, as it may be amended from time to time. C. Specifically, this chapter is intended to comply with Public Contract Code Section 22034, which requires that a public agency that has elected to become subject to the uniform construction accounting procedures enact an informal bidding ordinance to govern the selection of contractors. D. This chapter is intended to ensure that contracts for public projects in the city meet the requirements of applicable state laws, including California Public Contract Code, Division 2, Part 1, and Division 2, Part 3, Local Agency Public Construction Act. All procedures set forth in this chapter shall be interpreted in a manner consistent with state law. E. This chapter is further intended to provide bidding procedures for maintenance work consistent with State law. 3.26.020 – Definitions. As used in this chapter, the following words and terms shall be defined as follows unless the context indicates that a different meaning is intended: “Act” means the Uniform Public Construction Cost Accounting Act C.5.a Packet Pg. 90 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s 01247.0006/673204.9 Ordinance No. xxx Page 3 of 9 October 27, 2020 (California Public Contract Code Section 22000 et seq.). “Bid” means the response submitted by a bidder to an invitation for bids issued by the city for goods, services, maintenance work, or public projects. “Commission” means the California Uniform Public Construction Cost Accounting Commission established pursuant to Public Contract Code Section 22010. “Facility” shall have the same meaning as set forth in Section 22002 of the Act and includes any plant, building, structure, ground facility, utility system (subject to the limitation found in Public Contract Code Section 22002), real property, streets and highways, or other public work improvement. “Force account” means work performed on public projects or maintenance work using internal resources, including, but not limited to, labor, equipment, materials, supplies, and subcontracts of the public agency. “Informal bid” means a competitive bid that is submitted by a bidder for procurement of goods or services for which formal bidding is not required. “Maintenance work” shall have the same meaning as set forth in Public Contract Code Section 22002. For the purpose of this chapter, maintenance work is not considered a public project. Maintenance work includes: 1. The routine, recurring, and usual work for the preservation or protection of any publicly owned or operated facility for its intended purposes. 2. Minor repainting. 3. Resurfacing of streets and highways at less than one inch. 4. Landscape maintenance including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems. “Public project” shall have the same meaning as set forth in Public Contract Code Section 22002 and includes the following: 1. Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility. 2. Painting or repainting of any publicly owned, leased, or C.5.a Packet Pg. 91 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s 01247.0006/673204.9 Ordinance No. xxx Page 4 of 9 October 27, 2020 operated facility. “Public project” does not include maintenance work as defined above. Section 3.26.030 – Bid Procedures for defined public projects. A. Authority to Award. 1. The city manager may award contracts for public projects or maintenance work of ten thousand dollars or less pursuant to the requirements of this chapter. 2. Contract for public projects or maintenance work over ten thousand dollars shall be awarded by the City Council pursuant to the requirements of this chapter. B. Bidding Thresholds. The following limits and procedures apply to contracting for public projects and maintenance work in the city: 1. Public projects or maintenance work of sixty thousand dollars or less (or the current amount as specified in Article 3, Chapter 2 of Part 3 of Division 2, Section 22032(a) of the Public Contract Code) may be performed by the employees of the city, by force account, by negotiated contract, or by purchase order. Except for performance by employees, by force account, at least three quotes shall be sought when it is in the best interest of the City; 2. Public projects or maintenance work of greater than sixty thousand dollars but less than two hundred thousand dollars (or the current amount as specified in Article 3, Chapter 2 of Part 3 of Division 2, Section 22032(b) of the Public Contract Code) may be let to contract through informal procedures as set forth in this chapter; and 3. Public projects or maintenance work of more than $200,000 (or the current amount as specified in Article 3, Chapter 2 of Part 3 of Division 2, Section 22032(c) of the Public Contract Code) shall, except as otherwise provided in this chapter or in the Public Contract Code, be let to contract by the formal bidding procedure set forth in this chapter. Section 3.26.040 – List of contractors. A list of qualified contractors, identified according to categories of work, shall be developed and maintained in accordance with Public Contract Code Section 22034(a) and any criteria promulgated from time to time by the Commission. Such list shall be maintained and updated from time to time by the city manager or his/her designee. Section 3.26.050 – Informal bid procedure. C.5.a Packet Pg. 92 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s 01247.0006/673204.9 Ordinance No. xxx Page 5 of 9 October 27, 2020 The following procedures shall apply to informal bids for public projects and maintenance work: A. Notice Inviting Informal Bids. 1. In accordance with Public Contract Code Section 22034, when a public project or maintenance work is permitted to be let to contract by informal bidding pursuant to this chapter, a notice inviting informal bids shall be mailed and/or emailed to all contractors on the list created pursuant to Section 3.26.040 for the category of work being bid. 2. Optional Noticing. Notice may be also provided to any additional contractors, publications and/or construction trade journals identified by the city manager or the city manager’s designee. B. Exception. If the product or service to be procured for a public project or maintenance work is proprietary in nature such that it can be obtained only from a certain contractor or contractors, the notice inviting informal bids may be sent exclusively to such contractor or contractors. C. Time of Giving Notice. All mailing of notices to contractors and construction trade journals pursuant to this section shall be completed not less than ten calendar days before bids are due. D. Description of Public Project or Maintenance Work. The notice inviting informal bids shall describe the public project or maintenance work in general terms and how to obtain more detailed information about the public project or maintenance work, and state the time and place for the submission of bids. E. Authority to Award Contracts. The city manager is authorized to award a contract for a public project or maintenance work pursuant to the process set forth in this section if the lowest bid received is ten thousand dollars or less. Contracts valued at more than ten thousand dollars shall require city council approval. F. Bids Exceeding Two Hundred Thousand Dollars. If all bids received pursuant to the informal process are in excess of two hundred thousand dollars (or the current amount as specified in Article 3, Chapter 2 of Part 3 of Division 2, Section 22034(d) of the Public Contract Code), the city council may adopt a resolution by a four-fifths vote to award the contract to the lowest responsible bidder at two hundred twelve thousand five hundred dollars (or the current amount as specified in Section 22034(d) of the Public Contract Code) or less, if it determines the city’s cost estimate was reasonable. C.5.a Packet Pg. 93 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s 01247.0006/673204.9 Ordinance No. xxx Page 6 of 9 October 27, 2020 G. Award of Contract. Any contract awarded pursuant to this section shall be awarded to the lowest responsible bidder. If two or more bids received are for the same total amount or unit price, quality and service being equal, the approving entity may accept either bid. H. No Bids. If no bids are received, the project may be performed by city employees by force account, or negotiated contract without further complying with this chapter. Section 3.26.060 – Formal bidding procedures. For those public projects or maintenance work requiring formal bidding under Section 3.26.030, the following procedures shall be used: A. Publication of Notice. In accordance with Public Contract Code Section 22037, a notice shall be published, at least once, fourteen calendar days before the date of opening the bids in a newspaper of general circulation printed and published in the jurisdiction of the city. The notice inviting formal bids shall also be sent electronically, if available, by either facsimile or email, and mailed to all construction trade journals specified by the commission in accordance with Public Contract Code Section 22036 specified as appropriate for the area. The notice shall be mailed at least fifteen calendar days before the date of opening the bids. The notice inviting formal bids shall state the time and place for the receiving and opening of sealed bids and distinctly describe the public project or maintenance work. In addition to notice required by this section, the city may give such other notice as it deems proper. B. Bidder’s Security/Failure to Sign Contract. When deemed necessary bidder’s security shall be prescribed in the notice inviting bids in an amount equal to ten percent of the amount bid. Bidder’s security shall be either a cash deposit with the city, a cashier’s or certified check payable to the city, or a bidder’s bond. Unsuccessful bidders shall be entitled to the return of bid security within sixty days of the date of the award. On the refusal or failure of the lowest responsive and responsible bidder to execute the contract, the city council may award the contract to the next lowest responsive and responsible bidder. Should the lowest responsive and responsible bidder refuse or fail to execute the contract within ten days after the date of the award of the contract, then the bidder shall be deemed to have forfeited the bid security amount to the city. The city may retain as damages an amount out of the bid security equal to the difference between the lowest bid and the second lowest bid and return the excess bid security amount, if any, to the lowest bidder. All bids must be signed by an individual or individuals authorized to bind the bidder to bid terms. C. Bid Opening Procedure. Sealed bids shall be submitted to C.5.a Packet Pg. 94 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s 01247.0006/673204.9 Ordinance No. xxx Page 7 of 9 October 27, 2020 the city clerk’s office and shall be identified as to bidder, public project or maintenance work (as applicable), and shall state “Bid” on the envelope. Bids shall be opened by the city clerk’s staff in public at the time and place stated in the notice inviting bids. A written record and tabulation shall be made at that time of all bids received by the deadline. Bids that are received after the submittal deadline shall be marked as “Late” and shall not be opened at the bid opening and shall not be considered for award. Bids shall be open for public inspection in accordance to the California Public Records Act. Bids may be submitted electronically, such as through online bid boards or online websites, provided that such submissions comply with the requirements of this Chapter. D. Award of Contracts/Minor Irregularities. Contracts shall be awarded by the city council to the lowest responsive and responsible bidder whose bid fulfills the purpose intended, according to criteria designated in the solicitation, and provided the award amount is within the unencumbered appropriation for that item. The city council may waive minor bid irregularities. E. Change Orders. A “change order” shall be used to modify the contract documents regarding contract price, schedule of payments, completion date, plans and specifications, and for unit price overruns and under runs, as specified in the contract. Work description and justification must relate to the original project and must be work necessary to achieve original scope of project. After a determination that costs are merited by developments in a specific project, the purchasing officer, city manager is authorized to issue contract amendments or change orders up to the contract contingency approved by the city council. F. Tie Bids. If two or more bids received are for the same total amount or unit price, the city council may accept either bid. G. Performance/Labor/Materials Bonds. A labor and materials bond, plus a performance bond shall be required, from an acceptable surety, in such amounts and in such a form as the city finds reasonably necessary to protect the public interest. The City Manager may waive bond requirements in this Section 3.26.070(G) for maintenance work if it is determined to be in the best interest of the City and consistent with State law. H. No Bids. If no bids are received, the public project or maintenance work may be performed by city employees by force account or negotiated contract, without further complying with this chapter. Section 3.26.070 – Rejecting formal bids. The following rules apply to rejecting bids for public projects and C.5.a Packet Pg. 95 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s 01247.0006/673204.9 Ordinance No. xxx Page 8 of 9 October 27, 2020 maintenance work: A. In accordance with Public Contract Code Section 22038, the city council may, in its discretion, reject any bids presented, if the city, prior to rejecting all bids, furnishes a written notice to an apparent low bidder. The notice shall inform the bidder of the city’s intention to reject the bid and shall be mailed at least two business days prior to the city council meeting at which the city intends to reject the bid. If after the first invitation of bids all bids are rejected and after reevaluating its cost estimates of the project, the city shall have the option of either of the following: 1. Abandoning the public project/maintenance work or re-advertising for bids in the manner described by this chapter. 2. Have the public project or maintenance work done by force account without further complying with this chapter, provided the city council has passed a resolution by a four-fifths vote declaring that the project can be performed more economically by city employees. B. Lowest Bidder. If a contract is awarded, it shall be awarded to the lowest responsible bidder. C. No Bids. If no bids are received through the formal or informal procedure, the public project or maintenance work may be performed by the employees of the city, by force account, or negotiated contract without further complying with this chapter. Section 3.26.070 – Exceptions to Competitive Bidding. Bidding pursuant to this Chapter shall not be required in the following circumstances: A. In the case of emergency pursuant to Public Contract Code Section 22035. B. Any procurement that is governed by Chapter 3.24 of the Grand Terrace Municipal Code. C. As authorized by any other applicable law.” SECTION 4. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. The City Council of the City of Grand Terrace declares that it would have adopted all the provisions of this ordinance that remain valid if any provisions of this C.5.a Packet Pg. 96 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s 01247.0006/673204.9 Ordinance No. xxx Page 9 of 9 October 27, 2020 ordinance are declared invalid. SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days from and after its adoption. SECTION 6. Certification. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the ____ day of _______, 2020. _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney C.5.a Packet Pg. 97 At t a c h m e n t : G T U n i f o r m P u b l i c C o n s t r u c t i o n C o s t A c c o u n t i n g O r d i n a n c e ( 0 0 3 ) ( 2 N d R e a d i n g o f O r d i n a n c e E n a c t i n g P r o c u r e m e n t P r o c e d u r e s AGENDA REPORT MEETING DATE: November 10, 2020 Council Item TITLE: Assignment of Agreement for Option to Purchase Real Property Located at 21893 Barton Road, Grand Terrace, California PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Approve Assignment Agreement with DIBA Real Estate Investments LLC, for Assignment of Option to Purchase Real Property Located at 21893 Barton Road 2030 VISION STATEMENT: This staff report supports Goal #3, Promote Economic Development. BACKGROUND: On July 12, 2016, the City of Grand Terrace and Dr. Terry McDuffee entered into an Exclusive Negotiation Agreement (ENA) on 0.90 acres owned by the City located at the southwest corner of Commerce Way and Michigan Street. The purpose of the ENA was to keep the Emergency Animal Clinic, owned by Dr. McDuffee, in town. The Animal Emergency Clinic needed to relocate due to the I-215 Interchange Project. Although the land Dr. McDuffee wanted to acquire from the City was already committed in a previously negotiated ENA with the Lewis Group, staff renegotiated with the Lewis Group and removed the property in question from the Lewis ENA for Dr. McDuffee to purchase. In return, and to further promote economic development opportunities, the McDuffee DDA included a provision to allow the City, first right of refusal to purchase, at fair market value, Dr. McDuffee’s property located at the southwest corner of Barton Road and La Crosse Avenue (Attachment I) . On September 27, 2016, the City Council approved a Resolution approving the 2016 Disposition and Development Agreement (DDA) by and between the City of Grand Terrace and Dr. Terry McDuffee. The DDA outlined the terms of the purchase and development of the property with an emergency animal clinic, purchase price, terms of escrow, performance timelines, and an option to buy Dr. McDuffee’s property located at the southwest corner of Barton Road and La Crosse Avenue. DISCUSSION: As previously indicated, in exchange for removing the property from the Lewis/City ENA, the “option to purchase” provisions would give the City up to twelve (12) months G.6 Packet Pg. 98 after completion of the Interchange. The agreement also allows the City to assign its rights of purchase to another party. City staff is recommending the City Council assign the Option to Purchase Rights to DIBA REAL ESTATE INVESTMENTS LLC. Staff believes the assignment of purchase rights to DIBA REAL ESTATE INVESTMENTS LLC is in the best interest of the City, as the City desires the property to be developed to its highest and best use. DIBA REAL ESTATE INVESTMENTS LLC owns the adjacent property and would like to consolidate the parcels and develop a project to maximize development opportunities (Attachment II). For the assignment, DIBA REAL ESTATE INVESTMENTS LLC has agreed to assume all rights of the Option to Purchase Rights and pay $25,000 to the City, which is refundable if they acquire the property or if they are unable to acquire the property as further described in the assignment agreement (Attachment III). FISCAL IMPACT: There is no immediate impact to the City’s general fund. However, the potential for future sale and property tax from construction and business location will generate positive income for the general fund. The $25,000 assignment fee will be placed in a refundable deposit account (Account 23-510-55) for DIBA REAL ESTATE INVESTMENTS LLC. ATTACHMENTS: • Attachment I - Dr. Terry McDuffee DDA (PDF) • Attachment II - McDuffee Property (PDF) • Attachment III - Option Assignment Agreement (McDuffee)1 (PDF) APPROVALS: G. Harold Duffey Completed 11/05/2020 11:39 AM City Attorney Completed 11/05/2020 3:50 PM Finance Completed 11/05/2020 5:40 PM City Manager Completed 11/05/2020 5:58 PM City Council Pending 11/10/2020 6:00 PM G.6 Packet Pg. 99 2016 DISPOSITION AND DEVELOPMENT AGREEMENT by and between the THE CITY OF GRAND TERRACE, a municipal corporation, and DR. TERRY MCDUFFEE, an individual September 27, 2016 2016-48 G.6.a Packet Pg. 100 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) K. WHEREAS, Developer understands and acknowledges that conveyance of the City Property is subject to the City's Power of Termination of Developer's Fee Title as set forth in Section 8.3 of this Agreement. L. WHEREAS, In the event Developer fails to complete the Project pursuant to the deadlii:ies set forth in the Schedule of Performance, City will exercise its right of termination of Developer's fee title and Developer shall transfer the City Property back to the City as set forth herein. NOW, THEREFORE, FOR GOOD AND VALUABLE CONSIDERATION AND THE PROMISES AND COVENANTS OF CITY AND DEVELOPER SET FORTH IN THIS AGREEMENT, CITY AND DEVELOPER AGREE, AS FOLLOWS: 1. DEFINITIONS 1.1 Defined Terms. The following words, terms and phrases are used in this Agreement with the following meanings, unless the particular context of usage of a word, term or phrase requires another interpretation: 1.1.1 Affiliate. Any other Person, directly or indirectly, Controlling or Controlled by or under common Control with such specified Person. 1.1.2 [Intentionally reserved] 1.1.3 Agreement. This 2016 Disposition and Development Agreement, dated as of September 27, 2016. 1.1.4 Application. Any agreement, application, certificate, document, or submission (or amendment of any of the foregoing): (a) necessary or appropriate for the Project, including any application for any building permit, Certificate of Occupancy, utility service or hookup, easement, covenant, condition, restriction, subdivision, or such other instrument as Developer may reasonably request for the Project; or (b) to enable Developer to seek any Approval or to use and operate the Project in accordance with this Agreement. 1.1.5 Approval. Any license, permit, approval, consent, certificate, ruling, variance, authorization, conditional use permit, or amendment to any of the foregoing, as shall be necessary or appropriate under any Law to commence, perform, or complete the Construction of the Project. 1.1.6 Automobile Liability Insurance. Insurance coverage against claims of personal injury (including bodily injury and death) and property damage at least as broad as Insurance Services Office Form No. CAOOOl covering Automobile Liability, Code No. 1 (any auto), covering all owned, leased, hired and non-owned vehicles used by the Developer regarding the Project, with minimum limits for bodily injury and property damage of TWO MILLION DOLLARS ($2,000,000). Such insurance shall be provided by a business or commercial vehicle policy. 2 -September 27, 2016 G.6.a Packet Pg. 102 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 1.1.30 Default. Any Monetary Default, any Non-Monetary Default, any Insurance Maintenance Default or any Escrow Default. 1.1.31 Default Interest. Interest at an annual rate equal to the lesser of: (a) eight percent (8%) per annum; or (b) the Usury Limit. 1.1.32 Deposit. Ten Thousand Dollars ($10,000). 1.1.33 Developer. Dr. Terry McDuffee, an individual, or his assignee provided that assignment can only be made to an Affiliate of Dr. Terry McDuffee. 1.1.34 Developer Entity Documents. The organizational documents of the entity, if any, that is Developer, including all amendments, all of which Developer shall certify as accurate and updated on the date of the Close of Escrow, and, if appropriate, a Certificate of Good Standing from the Secretary of State of the State certifying that Developer is authorized to conduct business in the State. 1.1.35 Developer Official Action. If prior to Close of Escrow, Dr. Terry McDuffee assigns his interest in this Agreement to an Affiliate, then the assignee shall within two (2) business days of such assignment deliver to the Escrow Holder, with a copy to City, the original of such assignment together with a certified document evidencing the consent of the directors, managers or other Persons in Control of such assignee to the transactions provided for in this Agreement and authorizing and instmcting the official actions reasonably necessary or convenient to enter into and perform this Agreement. 1.1.36 Developer Parties. Collectively, Developer and the directors, officers, employees, agents, shareholders, members, managers and partners of Developer. 1.1.37 Developer Party. Individually, Developer or the directors, officers, employees or agents, shareholders, members, managers or partners of Developer. 1.1.38 Developer Property. That certain real property located within the City of Grand Terrace, County of San Bernardino, State of California, specifically described in the legal description attached as Exhibit "B" attached to this Agreement, which is incorporated into this Agreement by this reference. 1.1.39 Developer Specific Default. Any Default that: (a) is not reasonably susceptible of cure by the holder of a Permitted Security Instmment, such as (to the extent, if any, that it actually constitutes a Default under this Agreement) any Default resulting from a Bankruptcy Proceeding affecting Developer; any prohibited change of management of Developer; failure to deliver required financial information within Developer's control; (b) by its nature relates only to, or can reasonably be performed only by, Developer or its Affiliates; or (c) consists of Developer's failure to satisfy or discharge any lien, charge, or encumbrance that satisfies all of the following: (i) attaches to the Property; (ii) is junior to the specific Permitted Security Instmment; and (iii) this Agreement prohibits. 1.1.40 Due Diligence Completion Notice. A written notice from Developer delivered to both the City and the Escrow Agent, prior to the end of the Due Diligence Period, 5 -September 27, 2016 G.6.a Packet Pg. 105 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 1.1.47 Escrow. An escrow, as defined in Civil Code Section 1057 and Financial Code Section 17003(a), that is conducted by the Escrow Agent with respect to the sale of the Property from City to Developer, pursuant to this Agreement. 1.1.48 Escrow Agent. Catherine Von Moos, Orange Coast Title Company of Southern California, 1845 Business Center Drive, Suite 218, San Bernardino, CA 92408, Phone: 909-825-8800 ext. 6123, Fax: 714-864-3106, E-mail: catherinev@octitle.com, or such other Person mutually agreed upon in writing by City and Developer in writing. 1.1.49 Escrow Agent Consent. The Escrow Agent's consent to acting as Escrow Agent under this Agreement, in substantially the form of Exhibit "C" attached to this Agreement. 1.1.50 Escrow Closing Date. The fifth (5th) Business Day following the Escrow Agent's receipt of written confirmation from both City and Developer of the satisfaction or waiver of all conditions precedent to the Close of Escrow, subject to extension due to Unavoidable Delay pursuant to Section 9.14. 1.1.51 Escrow Default. The unexcused failure to submit any document or funds to the Escrow Agent as reasonably necessary to close the Escrow, after all other conditions precedent to the Close of Escrow for the benefit of such Party are satisfied or waived by such Party. 1.1.52 Escrow Opening Date. The first date on which a fully executed copy of this Agreement and the Deposit are deposited with the Escrow Agent pursuant to Section 4.1. 1.1.53 Event of Default. The occurrence of any one or more of the following: (a) Monetary Default. A Monetary Default that continues for fifteen (15) calendar days after Notice from the non-defaulting Party, specifying in reasonable detail the amount of money not paid and the nature and calculation of each such payment; (b) Escrow Closing Default. An Escrow Default that continues for seven (7) calendar days after Notice from the non-defaulting Party, specifying in reasonable detail the document or funds not submitted; (c) Insurance Maintenance Default. An Insurance Maintenance Default that continues for ten (10) calendar days after Notice of such Insurance Maintenance Default. (d) Bankruptcy or Insolvency. Developer admits in writing that it is unable to pay its debts as they become due or becomes subject to any Bankruptcy Proceeding (except an involuntary Bankruptcy Proceeding dismissed within one hundred twenty (120) days after commencement), or a custodian or trustee is appointed to take possession of, or an attachment, execution or other judicial seizure is made with respect to, substantially all of Developer's assets or Developer's interest in this Agreement (unless such appointment, attachment, execution, or other seizure was involuntary, and is contested with diligence and continuity and vacated and discharged within one hundred twenty (120) days); 7 -September 27, 2016 G.6.a Packet Pg. 107 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) (e) Transfer. The occurrence of a Transfer, whether voluntarily or involuntarily or by operation of Law, in violation of the terms and conditions of this Agreement; or (f) Non-Monetary Default. Any Non-Monetary Default, other than those specifically addressed in Subsection (d) and in Subsection (e), that is not cured within sixty (60) days after Notice to the Party alleged to be in Default describing the Non-Monetary Default in reasonable detail, or, in the case of a Non-Monetary Default that cannot with reasonable diligence be cured within sixty (60) days after the effective date of such Notice, if the Party alleged to be in Default does not do all of the following: (a) within sixty (60) days after Notice of such Non-Monetary Default, advise the other Party of the intention of the Party alleged to be in Default to take all reasonable steps to cure such Non-Monetary Default; (b) duly commence such cure within such period, and then diligently prosecute such cure to completion; and (c) complete such cure within a reasonable time under the circumstances. 1.1.54 Federal. The government of the United States of America. 1.1.55 Final. Relative to any Approval or any CEQA Document, when all administrative appeal periods regarding such matter have expired, all administrative appeals or challenges regarding such matter (if any) have been resolved to both City's and Developer's reasonable satisfaction, all statutory periods for challenging such matter have expired, all litigation or other proceedings (if any) challenging any such matter have been resolved to the reasonable satisfaction of both City and Developer, all appeal periods relating to any such litigation or other proceedings have expired, all referendum periods regarding such matter have expired and all referenda regarding such matter (if any) have been resolved to both City's and Developer's reasonable satisfaction. 1.1.56 Foreclosure Event. Any transfer of title to the Property through any: (a) judicial or non-judicial foreclosure; (b) trustee's sale; (c) deed, transfer, assignment, or other conveyance in lieu of foreclosure; ( d) other similar exercise of rights or remedies under any Security Instrument; or (e) transfer by operation of or through any Bankruptcy Proceeding (including an auction or plan of reorganization in any Bankruptcy Proceeding and any Bankruptcy Sale), in each case ("(a)" through "(e)") whether the transferee is a Lender, a Person claiming through a Lender, or a Third Person. 1.1.57 Form 593. A California Franchise Tax Board Form 593-C. 1.1.58 General Escrow Instructions. The Escrow Agent's general escrow instructions. 1.1.59 Government. Each and every governmental City, authority, bureau, department, quasi-governmental body, or other entity or instrumentality having or claiming jurisdiction over the Property (or any activity this Agreement allows), including the government of the United States of America, the State and County governments and their subdivisions and municipalities, including the City, the City and all other applicable governmental agencies, authorities, and subdivisions thereof. "Government" shall also include any planning commission, board of standards and appeals, department of buildings, city council, zoning board of appeals, 8-September 27, 2016 G.6.a Packet Pg. 108 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) design review board or committee or similar body having or claiming jurisdiction over the Property or any activities on or at the Property. 1.1.60 Hazardous Substance. Any flammable substances, explosives, radioactive materials, asbestos, asbestos-containing materials, polychlorinated biphenyls, chemicals known to cause cancer or reproductive toxicity, pollutants, contaminants, hazardous wastes, medical wastes, toxic substances or related materials, explosives, petroleum, petroleum products and any "hazardous" or "toxic" material, substance or waste that is defined by those or similar terms or is regulated as such under any Law, including any material, substance or waste that is: (a) defined as a "hazardous substance" under Section 311 of the Water Pollution Control Act (33 U.S.C. § 1317), as amended; (b) substances designated as "hazardous substances" pursuant to 33 U.S.C. § 1321; (c) defined as a "hazardous waste" under Section 1004 of the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901, et seq., as amended; (d) defined as a "hazardous substance" or "hazardous waste" under Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Reauthorization Act of 1986, 42 U.S.C. § 9601, et seq., or any so-called "superfund" or "superlien" law; (e) defined as a "pollutant" or "contaminant" under 42 U.S.C. § 9601(33); (f) defined as "hazardous waste" under 40 C.F.R. Part 260; (g) defined as a "hazardous chemical" under 29 C.F.R. Part 1910; (h) any matter within the definition of "hazardous substance" set forth in 15 U.S.C. § 1262; (i) any matter, waste or substance regulated under the Toxic Substances Control Act ("TSCA") [15 U.S.C. Sections 2601, et seq.]; (j) any matter, waste or substance regulated under the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801, et seq.; (k) those substances listed in the United States Department of Transportation (DOT)Table [49 C.F.R. 172.101]; (1) any matter, waste or substances designated by the EPA, or any successor authority, as a hazardous substance [40 C.F.R. Part 302]; (m) any matter, waste or substances defined as "hazardous waste" in Section 25117 of the California Health and Safety Code; (n) any substance defined as a "hazardous substance" in Section 25316 of the California Health and Safety Code; (o) any matter, waste, or substance that is subject to any other Law regulating, relating to or imposing obligations, liability or standards of conduct concerning protection of human health, plant life, animal life, natural resources, property or the enjoyment of life or property free from the presence in the environment of any solid, liquid, gas, odor or any form of energy from whatever source; or (p) other substances, materials, and wastes that are, or become, regulated or classified as hazardous or toxic under Law or in the regulations adopted pursuant to said Law, including manure, asbestos, polychlorinated biphenyl, flammable explosives and radioactive material. 1.1.61 Hazardous Substance Discharge. Any deposit, discharge, generation, release, or spill of a Hazardous Substance that occurs at on, under, into or from either Property, or during transportation of any Hazardous Substance to or from either Property, or that arises at any time from the Constmction, installation, use or operation of the Project or any activities conducted at on, under or from either Property, whether or not caused by a Party. 1.1.62 Indemnify. Where this Agreement states that any Indemnitor shall "indemnify" any Indemnitee from, against, or for a particular Claim, that the Indemnitor shall indemnify the Indemnitee and defend and hold the Indemnitee harmless from and against such Claim (alleged or otherwise). "Indemnified" shall have the correlative meaning. 9 -September 27, 2016 G.6.a Packet Pg. 109 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) l. l.63 this Agreement. lndemnitee. Any Person entitled to be Indemnified under the terms of l. l.64 lndernnitor. A Party that agrees to Indemnify any other Person under the terms of this Agreement. 1.1.65 Insurance Documents. Copies of insurance policies and endorsements evidencing all insurance coverage required to be obtained by Developer pursuant to Section 6. l. l.66 Insurance Maintenance Default. Any failure to maintain the insurance policies required by this Agreement. l.l.67 Law. Every law, ordinance, requirement, order, proclamation, directive, rule, and regulation of any Government applicable to the Properties, or the Project, in any way, including any development, use, maintenance, taxation, operation, or occupancy of, or environmental conditions affecting the Properties or the Project, or relating to any taxes, or otherwise relating to this Agreement or any Party's rights, obligations or remedies under this Agreement, or any Transfer of any of the foregoing, whether in force on the Effective Date or passed, enacted, modified, amended or imposed at some later time, subject in all cases, however, to any applicable waiver, variance, or exemption. 1.1.68 Legal Costs. In reference to any Person, all reasonable costs and expenses such Person incurs in any legal proceeding (or other matter for which such Person is entitled to be reimbursed for its Legal Costs), including reasonable attorneys' fees, court costs and expenses and consultant and expert witness fees and expenses. 1.1.69 Lender. The holder of any Security Instrument and its successors and assigns. 1.1. 70 Liability Insurance. Commercial general liability insurance against claims for bodily injury, personal injury, death, or property damage occurring upon, in, or about the Property, the Project or adjoining streets or passageways, at least as broad as Insurance Services Office Occurrence Form CGOOOl, with a minimum liability limit of Four Million Dollars ($4,000,000) for any one occurrence. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Property or the general aggregate limit shall be twice the required minimum liability limit for any one occurrence. 1.1. 71 Monetary Default. Any failure by either Party to pay or deposit, when and as this Agreement requires, any amount of money, any bond or surety or evidence of any insurance coverage required to be provided under this Agreement, whether to or with a Party or a Third Person. 1.1.72 Negotiation Agreement. Defined in Recital H to this Agreement. 1.1.73 Non-Monetary Default. The occurrence of any of the following, except to the extent constituting a Monetary Default or an Escrow Default: (a) any failure of a Party to perform any of its obligations under this Agreement; (b) any failure of Party to comply 10-September 27, 2016 G.6.a Packet Pg. 110 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) with any material restriction or prohibition in this Agreement; or (c) any other event or circumstance that, with passage of time or giving of Notice, or both, or neither, would constitute a breach of this Agreement. 1.1.74 Notice. Any consent, demand, designation, election, notice, or request relating to this Agreement, including any Notice of Default. All Notices must be in writing. A notice in substantially the form of Exhibit "I" attached to this Agreement to be recorded against the Property at the Close of Escrow. 1.1.75 Notice of Agreement. A notice of the applicability of this Agreement to the Property in substantially the form of Exhibit "I" attached to this Agreement. 1.1.76 Notice of Completion. The Notice described in and ascribed the same name in California Civil Code Section 3093. 1.1.77 or alleged Default. Notice of Default. Any Notice claiming or giving Notice of a Default 1.1.78 Notice of Option to Purchase Real Property. A notice of the option to purchase real property granted to City by Developer in substantially the form of Exhibit "E" attached to this Agreement. 1.1.79 Notify. To give a Notice. 1.1.80 Parties. Collectively, City and Developer. 1.1.81 Party. Individually, either City or Developer, as applicable. 1.1.82 Permitted Encumbrance. Any Permitted Security h).strument, the Notice of Agreement, utility easements directly related to the Project, a bona fide Permanent Loan, a bona fide Refinancing and any other document required or expressly allowed to be recorded against the Property by the express terms of this Agreement. 1.1.83 Permitted Exceptions. All of the following: (a) items shown in Schedule B of the Title Commitment as exceptions to coverage under the proposed Title Policy that are expressly approved by Developer or as to which no Supplement Notice has been given by Developer or as to which a Supplement Notice Waiver has been given by Developer; (b) any exceptions from coverage under the proposed Title Policy; (c) any lien for non-delinquent property taxes or assessments; (d) any Laws applicable to the Property; (e) this Agreement; (f) the Notice of Agreement; (g) any Permitted Security Instrument; (h) any encumbrance recorded against the Property with Developer's consent or as a result of the activities of Developer; and (i) any other document or encumbrance expressly required or allowed to be recorded against the Property or the Project under the terms of this Agreement. 1.1.84 Permitted Lender. The holder of any Permitted Security Instrument. 1.1.85 Permitted Security Instrument. Any Security Interest: (a) that encumbers only the Property or any interest in the Property; (b) a copy of which (recorded or 11 -September 27, 2016 G.6.a Packet Pg. 111 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) unrecorded) is promptly after execution delivered to City, with a certification by the Lender that the copy is accurate and stating the Lender's name and notice address; (c) that is held by a Lender subject to the jurisdiction of the courts of the State, not immune from suit and cannot elect to be immune from suit; and (d) only secures: (i) the repayment of money used to pay or reimburse the Total Project Costs; (ii) a bona fide Permanent Loan; or (iii) a delivery assurance fee regarding a Permanent Loan that is refundable to Developer at the close of the Permanent Loan. 1.1.86 Permitted Transfer. Any Transfer to a Lender that is not a Prohibited Transferee: (1) pursuant to a Permitted Security Instrument as collateral for bona fide Construction Financing to pay all or any part of the Total Project Costs; or (2) pursuant to a Permitted Security Instrument as collateral for a bona fide Permanent Loan. 1.1.87 Person. Any association, corporation, governmental entity or City, individual, joint venture, joint-stock company, limited liability company, partnership, trust, unincorporated organization, or other entity of any kind. 1.1.88 Preliminary Report. A preliminary report issued by the Title Company in contemplation of the issuance of the Title Policy, accompanied by legible copies of all documents listed in Schedule B of the report as exceptions to coverage under the proposed Title Policy. 1.1.89 Prevailing Wage Action. Any of the following: (a) any determination by the State Department of Industrial Relations that prevailing wage rates should have been paid, but were not, (b) any determination by the State Department of Industrial Relations that higher prevailing wage rates than those paid should have been paid, (c) any administrative or legal action or proceeding arising from any failure to comply with any of California Labor Code Sections 1720 through 1781, as amended from time to time, regarding prevailing wages, including maintaining certified payroll records pursuant to California Labor Code Section 1776, or (d) any administrative or legal action or proceeding to recover wage amounts at law or in equity, including pursuant to California Labor Code Section 1781. 1.1.90 Prohibited Encumbrance. Any mortgage, lien, deed of trust, security instrument, mechanic's lien, easement or other encumbrance recorded or asserted against the Property or the Project that is not a Permitted Encumbrance. 1.1.91 Prohibited Transferee. Any Person with whom City is in litigation, any Person that City reasonably determines has any connection with any terrorist organization, any Person entitled to claim diplomatic immunity, any domestic or foreign governmental entity, except as reasonably approved by City, any Person that is immune or may elect to be immune from suit under State or Federal law, or any other Person that City reasonably disapproves. 1.1.92 Project. The development to be constructed on the Property by Developer and specifically described in the Project Scope of Development, the Project Plans and Specifications and the Approvals for the Project. 1.1.93 Project Completion Date. April 1, 2018 12 -September 27, 2016 G.6.a Packet Pg. 112 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 1.1.94 Project Plans and Specifications. Plans and specifications for the Project, prepared by Developer's architect, that have received all necessary Approvals regarding Construction of the Project, submitted in both hard copy and such machine-readable format as is then customary in the architectural profession in the State, using naming conventions and other criteria reasonably approved or required by City, consisting of architectural plans; elevations and section indicating principal areas, core design and location; location, number, and capacity of elevators; basic structural system; minimum estimated electrical capacity and distribution system; general type of plumbing system; fa\:ade, placement, and orientation; gross and rentable square foot analysis; and principal types of HV AC systems. 1.1.95 Project Schedule of Performance. The Construction schedule described in Exhibit "H" attached to this Agreement. 1.1.96 Project Scope of Development. The development project generally described in Exhibit "G" attached to this Agreement. 1.1.97 Properties. Collectively City Property and Developer Property. 1.1.98 Property. Individually, either the City Property or Developer Property as applicable. 1.1 .99 Property Information. Any and all studies and reports prepared by or on behalf of Developer regarding the physical condition of or title to the Property, including, without limitation, soils reports, geotechnical reports and surveys (not to include architectural plans and specifications, proprietary information, internal communications, feasibility studies, financial analyses, proformas, tax returns or any attorney-client privileged communications and documents). 1.1.100 Property Insurance. Insurance providing coverage for the Property and all improvements against loss, damage, or destruction by fire and other hazards encompassed under the broadest form of property insurance coverage then customarily used for like properties in the County, in an amount equal to one hundred percent (100%) of the replacement value (without deduction for depreciation) of all improvements comprising the Project (excluding excavations and foundations) and in any event sufficient to avoid co-insurance and with no co- insurance penalty provision, with "ordinance or law" coverage. To the extent customary for like properties in the County at the time, such insurance shall include coverage for explosion of steam and pressure boilers and similar apparatus located on the Property; an "increased cost of construction" endorsement; and an endorsement covering demolition and cost of debris removal, all subject to policy sublimits. Property Insurance shall also include rental or business interruption insurance in an amount, at least, equal to the average annual Gross Income from the Project for the preceding three (3) calendar years and providing for a 12-month extended period of indemnity. 1.1.101 Punchlist Work. Construction, of an insubstantial nature, that if not completed, will not delay issuance of a final Certificate of Occupancy (or equivalent approval) for the Project by the City or the applicable portion thereof or materially interfere with use of the Project. 13 -September 27, 2016 G.6.a Packet Pg. 113 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 1.1.102 Purchase Price. Four Hundred Thousand Dollars ($400,000.00). 1.1. l 03 Record, recorded, recording or recordation. Recordation of the referenced document in the official records of the County. 1.1.104 Refinancing. Any loan secured by a Permitted Security Instrument that the Developer obtains from a Lender subsequent to recordation of the Permanent Loan for any of the following purposes: (1) to pay off all or a portion of an existing loan secured by a Permitted Security Instrument where the Lender providing the new loan will disburse loan proceeds to or on behalf of Developer exceeding the amount of principal and interest under the existing loan being paid plus the amount of any reasonable and customary fees and costs associated with obtaining such new loan that are actually paid by Developer and not rebated or refunded to Developer, the aggregate amount of such fees and costs not to exceed three percent (3%) of the original principal amount of the new loan; (2) disbursing funds to or on behalf of Developer without paying off any existing loan secured by a Permitted Security Instrument; or (3) any loan extension, modification or equivalent regarding an existing loan to Developer secured by a Permitted Security Instrument that results in the Lender of the existing loan disbursing additional loan proceeds to or on behalf of Developer in excess of the original principal amount of the loan. 1.1.105 Security Instrument. Any security instrument, deed of trust, security deed, contract for deed, deed to secure debt, or other voluntary real property (including leasehold) security instrument(s) or agreement(s) intended to grant real property (including leasehold) security for any obligation (including a purchase-money or other promissory note) encumbering the Property, as entered into, renewed, modified, consolidated, increased, decreased, amended, extended, restated, assigned (wholly or partially), collaterally assigned, or supplemented from time to time, unless and until paid, satisfied, and discharged of record. If two or more such security instruments are consolidated or restated as a single lien or held by the same Lender (as applicable), then all such security instmments so consolidated or restated shall constitute a single Security Instmment. A participation interest in a security instrument (or partial assignment of the secured loan) does not itself constitute a Security Instmment. 1.1.106 Senior. Referring to multiple Security Instruments, the Security Instmment that is most senior in lien of the same type. Where Senior is used as a comparative term as against any specified Security Instrument, such term refers to any Security Instrument of the same type that is senior in lien to such specified Security Instmment. If only one Security Instrument of a particular type exists, then it shall be deemed the Senior Security Instrument of such type. 1.1.107 State. The State of California. 1.1.108 Supplement Notice. A Notice from Developer to both City and the Escrow Agent indicating Developer's objection to any exception to the title of the Property set forth in the supplement, describing in suitable detail the actions that Developer reasonably believes are necessary to obtain Developer's approval of the state of the title of the Property. 1.1.109 Supplement Notice Response. A Notice from City in response to a Supplement Notice, in which City elects to either: (a) cause the removal from the Title 14-September 27, 2016 G.6.a Packet Pg. 114 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) in the Title Notice that City has not agreed to address to Developer's reasonable satisfaction in the Title Notice Response. 1.1.117 Title Policy. A standard owner's policy of title insurance issued by the Title Company, with coverage in the amount of Four Hundred Thousand Dollars ($400,000.00). or as otherwise agreed between the Parties in writing prior to the Close of Escrow and insuring fee title to the Property vested in Developer, subject to the Permitted Exceptions. 1.1.118 Total Project Costs. All of the costs set forth in Section 4.9 and Exhibit "D" attached to this Agreement. 1.1.119 Transfer. Regarding any property, right or obligation means any of the following, whether by operation of law or otherwise, whether voluntary or involuntary, and whether direct or indirect: (a) any assignment, conveyance, grant, hypothecation, mortgage, pledge, sale, or other transfer, whether direct or indirect, of all or any part of such property, right or obligation, or of any legal, beneficial, or equitable interest or estate in such property, right or obligation or any part of it (including the grant of any easement, lien, or other encumbrance); (b) any conversion, exchange, issuance, modification, reallocation, sale, or other transfer of any direct or indirect Equity Interest(s) in the owner of such property, right or obligation by the holders of such Equity Interest(s); (c) any transaction described in "b" affecting any Equity Interest(s) or any other interest in such property, right or obligation or in any such owner (or in any other direct or indirect owner at any higher tier of ownership) through any manner or means whatsoever; or (d) any transaction that is in substance equivalent to any of the foregoing. A transaction affecting Equity Interests, as referred to in clauses "b" through "d," shall be deemed a Transfer by the Developer even though the Developer is not technically the transferor. A "Transfer" shall not, however, include any of the foregoing (provided that the other Party has received Notice of such occurrence) relating to the Property and/or any Equity Interest: (i) a mere change in form of ownership with no material change in beneficial ownership and constitutes a tax-free transaction under federal income tax law and the State real estate transfer tax; (ii) to member(s) of the immediate family(ies) of the transferor(s) or trusts for their benefit; (iii) to any Person that, as of the Effective Date, holds an Equity Interest in the entity whose Equity Interest is being transferred; (iv) the original sale of Equity Interests in Developer; or (v) to an Affiliate of Developer. 1.1.120 Unavoidable Delay. A delay in either Party performing any obligation under this Agreement, except payment of money, arising from or on account of any cause whatsoever beyond the Party's reasonable control, including strikes, labor troubles or other union activities, casualty, war, acts of terrorism, riots, litigation, governmental action or inaction, regional natural disasters, or inability to obtain materials. Unavoidable Delay shall not include delay caused by a Party's financial condition, illiquidity, or insolvency. 1.1.121 Usury Limit. The highest rate of interest, if any, that Law allows under the circumstances. 1.1.122 Waiver of Subrogation. A provlSlon in, or endorsement to, any insurance policy, by which the carrier agrees to waive rights of recovery by way of subrogation against either Party to this Agreement for any loss such policy covers. 16 -September 27, 2016 G.6.a Packet Pg. 116 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 1.1.123 Workers Compensation Insurance. Workers compensation insurance complying with the provisions of State law and an employer's liability insurance policy or endorsement to a liability insurance policy, with a minimum liability limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease, covering all employees of Developer. 2. TERMINATION OF NEGOTIATION AGREEMENT. Upon the occurrence of the Effective Date, the Parties intend and agree that the Negotiation Agreement shall expire, terminate and be of no further force or effect. 3. CONVEYANCE OF PROPERTY INTERESTS 3.1 Escrow. City shall sell the City Property to Developer and Developer shall purchase the City Property from City, pursuant to the terms and conditions of this Agreement. For the purposes of exchanging funds and documents for City to sell the City Property to Developer and Developer to purchase the City Property from City, City and Developer agree to open the Escrow with the Escrow Agent. The provisions of Section 4 of this Agreement are the joint escrow instmctions of the Parties to the Escrow Agent for conducting the Escrow. If requested by the Escrow Agent, Developer and City shall execute the General Escrow Instrnctions. In the event of any conflict between the provisions of this Agreement and the General Escrow Instmctions, the provisions of this Agreement shall be controlling. 3.2 Payment of Purchase Price. The Developer shall pay the Purchase Price by depositing it into the Escrow at least one (1) Business Day preceding the Escrow Closing Date. 3.2.1 Deposit. Within seven (7) days following the Effective Date, the Developer shall deliver the Deposit to the Escrow Agent in immediately available funds. The Deposit shall be non-refundable to Developer and shall be applied to the Purchase Price, except that the Deposit shall be refunded in the event that City is unable to complete the transfer of the Property due to not acquiring an executed compensation agreement from all of the taxing entities a signatory thereto or City breaches this Agreement. 3.2.2 At Close of Escrow. At least one (1) Business Day preceding the Escrow Closing Date, the Developer shall deposit the balance of the Purchase Price and any other funds necessary to close escrow into Escrow. 17 -September 27, 2016 G.6.a Packet Pg. 117 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 3.3 Eminent Domain. If any portion of the Property or any interest in any portion of the Property, becomes the subject of any eminent domain proceeding prior to Close of Escrow, other than such a proceeding by the City, including the filing of any notice of intended condemnation or proceedings in the nature of eminent domain commenced by any Government, the City shall immediately give the Developer Notice of such occurrence, and the Developer shall have the option, exercisable within ten (10) Business Days after receipt of such Notice from the City, to either: (1) cancel the Escrow and terminate this Agreement and the Escrow, in which case the Parties and the Escrow Agent shall proceed in accordance with Section 4.11; or (2) continue with this Agreement in accordance with its terms, in which event the City shall assign to the Developer any right of the City to receive any condemnation award attributable to the Property. 3.4 Developer's Approval of Title to Property. 3.4.1 Title Notice. Within fifteen (15) days after the Escrow Opening Date, City shall obtain the Preliminary Report from the Title Company, and deliver a copy of the Preliminary Report to the Developer. Within thirty (30) days following the Developer's receipt of the Preliminary Report, the Developer shall send the Title Notice to both City and the Escrow Agent. 3.4.2 Failure to Deliver Title Notice. If the Developer fails to send the Title Notice to City and the Escrow Agent, within the time period provided in Section 3.4.1 the Developer will be deemed to approve the status of title to the Property and accept conveyance of the Property. 3.4.3 Title Notice Response. Within fifteen (15) days following the City's receipt of the Title Notice (if any), City shall send the Title Notice Response to both the Developer and the Escrow Agent. If the Title Notice does not disapprove or conditionally approve any matter in the Preliminary Report or the Developer fails to deliver the Title Notice, City shall not be required to send the Title Notice Response. If City does not send the Title Notice Response, if necessary, within the time period provided in this Section, City shall be deemed to elect not to take any action in reference to the Title Notice. If City elects in the Title Notice Response to take any action in reference to the Title Notice, City shall complete such action, prior to the Escrow Closing Date or as otherwise specified in the Title Notice Response. 3.4.4 Title Notice Waiver. If City elects or is deemed to have elected not to address one or more matters set forth in the Title Notice to the Developer's reasonable satisfaction, then within ten (10) days after the earlier of: (i) the Developer's receipt of the City's Title Notice Response or (ii) the last date for the City to deliver its Title Notice Response, the Developer shall either: (a) refuse to accept the title to and conveyance of the Property, or (b) waive its disapproval or conditional approval of all such matters set forth in the Title Notice by sending the Title Notice Waiver to both City and the Escrow Agent. Failure by the Developer to timely send the Title Notice Waiver, where the Title Notice Response or City's failure to deliver the Title Notice Response results in City's election not to address one or more matters set forth in the Title Notice to the Developer's reasonable satisfaction, will be deemed the Developer's continued refusal to accept the title to and conveyance of the Property, in which case both the 18 -September 27, 2016 G.6.a Packet Pg. 118 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 3.5.4 Due Diligence Completion Notice. The Developer shall deliver a Due Diligence Completion Notice to both City and the Escrow Agent, prior to the end of the Due Diligence Period. If the Developer does not unconditionally accept the condition of the Property by delivery of its Due Diligence Completion Notice stating such acceptance, prior to the end of the Due Diligence Period, the Developer shall be deemed to have rejected the condition of the Property and refused to accept conveyance of the Property. If the condition of the Property is rejected or deemed rejected by the Developer, then either the Developer or City shall have the right to cancel the Escrow and terminate this Agreement, in their respective sole and absolute discretion, until such time (if ever) as the Developer delivers the Due Diligence Completion Notice stating the Developer's unconditional acceptance of the condition of the Property. Any termination of this Agreement and cancellation of the Escrow, pursuant to this Section 3.5, shall be without liability to the other Party or any other Person, and shall be accomplished by delivery of a written Notice of termination to the other Party and the Escrow Agent, in which case the Parties and the Escrow Agent shall proceed pursuant to Section 4.11. Notwithstanding any other provision of this Agreement, the Developer may reject the condition of the Property at any time during the Due Diligence Period for any reason or no reason, in the Developer's sole and absolute discretion, and terminate this Agreement and cancel the Escrow by Notice to both City and the Escrow Agent, in which case the Parties and the Escrow Agent shall proceed pursuant to Section 4.11. 3.6 Delivery of Property Free of Tenants. At the Close of Escrow, City will deliver possession of the Property to Developer free and clear of any contractual rights created by or with the consent of City for any Person (other than Developer) to use or occupy the Property. 3.7 Acceptance of Property "AS-IS." Except to the extent of any express representations and warranties of City specifically set forth in this Agreement (if any) the Close of Escrow shall evidence Developer's unconditional and irrevocable acceptance of the Property in the Property's AS IS, WHERE IS, SUBJECT TO ALL FAULTS CONDITION, WITHOUT WARRANTY AS TO QUALITY, CHARACTER, PERFORMANCE OR CONDITION, including any warranty as to title, physical condition, soil conditions, the presence or absence of fill, ocean or tidal impacts, shoring or bluff stability or support, subsurface support, zoning, land use restrictions, the availability or location of utilities or services, the location of any public infrastmcture on or off of the Property (active, inactive or abandoned), the suitability of the Property for the Project or other use or the existence or absence of Hazardous Substances (excepting any Hazardous Substance Discharge by City) and with full knowledge of the physical condition of the Property, the nature of City's interest in and use of the Property, all Laws applicable to the Property, the Permitted Exceptions and any and all conditions, covenants, restrictions, encumbrances and all matters of record relating to the Property. Developer represents and warrants to City that: (a) Developer has had ample opportunity to inspect and evaluate the Property and the feasibility of the uses and activities Developer is entitled to conduct on the Property in accordance with this Agreement; (b) Developer is experienced in real estate development; (c) Developer is relying entirely on Developer's experience, expertise and its own inspection of the Property in their current state in proceeding with acquisition of the Property; (d) that Developer accepts the Property in its present condition; and (e) to the extent that Developer's own expertise with respect to any matter regarding the Property is insufficient to enable Developer to reach an informed conclusion regarding such matter, Developer has engaged the services of Persons qualified to advise Developer with respect to such matters. The 20 -September 27, 2016 G.6.a Packet Pg. 120 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) Close of Escrow shall constitute Developer's representation and warranty to City that Developer has received assurances acceptable to Developer by means independent of City Parties of the truth of all facts material to Developer's acquisition of the Property pursuant to this Agreement and that the Property is being acquired by Developer as a result of its own knowledge, inspection and investigation of the Property and not as a result of any representation made by any City Party relating to the condition of the Property, unless such statement or representation is expressly and specifically set forth in this Agreement. Except to the extent of any express representations and warranties of City specifically set forth in this Agreement (if any), City hereby expressly and specifically disclaims any express or implied warranties regarding the Property. 3.8 Assignment of Property Information and Approvals. If for any reason this Agreement is terminated, except as a direct result of a City Event of Default, without Developer acquiring the Property, Developer shall deliver or cause to be delivered to City, within twenty (20) days after City's written request and at no cost to City, all Property Information and documentation of all Approvals, subject to any unwaived restrictions set forth in any agreement between Developer and any Third Person regarding preparation of such Property Information or documentation by such Third Person, notwithstanding Developer's reasonable efforts to obtain a waiver of such restrictions. On such a request, the Property Information and all Approvals shall be deemed assigned to City, without the execution of any additional documents, upon a termination of this Agreement without Developer acquiring the Property. Developer shall, if requested by City, execute such other documents as City reasonably requests, to further document the assignment of the Property Information and all Approvals to City. Developer represents and warrants to City that it has the right, power and authority to make the assignments set forth in this Section. Developer shall deliver the Property Information to City, pursuant to this Section, without representation or warranty of any kind. Developer shall take such actions and make such payments as may be necessary to preclude any Claim against City or the Property for any amounts owing by Developer regarding the Property Information. Developer shall Indemnify the City Parties against all Claims arising from any actual or alleged failure of Developer to pay any amount regarding any Property Information. 3.9 Developer to Obtain all Approvals for the Project. 3.9.1 Submission of Development Application. Developer shall exercise reasonable efforts to prepare and submit all required Applications, documents, fees, charges or other items (including, without limitation, deposits, funds or sureties in the ordinary course) required for the Construction of the Project, pursuant to all applicable Laws and Approvals, to each necessary Government for review and approval. Further, Developer shall exercise reasonable efforts to obtain all Approvals for the Construction of the Project on the Property from each Government, prior to the Escrow Closing Date. Prior to commencement of any part of the Construction of the Project, Developer shall obtain all Approvals from each Government required for the Construction of the Project. The City's zoning, building and land use regulations (whether contained in ordinances, the City's municipal code, conditions of approval or elsewhere), shall be applicable to the Construction of the Project on the Property by Developer. Developer acknowledges that the Project Plans and Specifications and any changes to the Project Plans or Specifications shall be subject to all applicable Laws and Approvals. 21-September 27, 2016 G.6.a Packet Pg. 121 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 3.9.2 Reservations. The approval of this Agreement by the City or City shall not be binding on the City Council, City, Design Review Committee, or any other commission, committee, board or body of the City or City regarding any Approvals of the Project required by such bodies. No action by the City or City with reference to this Agreement or any related documents shall be deemed to constitute issuance or waiver of any required City or City Approval regarding the Property, the Project or Developer. The Parties acknowledge and agree that this Agreement is not a statutory development agreement pursuant to Government Code Sections 65864, et seq. 3.10 City Not to Encumber. City agrees not to place any matters of record against the Property (other than Permitted Exceptions and any matters arising from City's issuance or exercise of any remedy related to any Approval for the Project), prior to the Close of Escrow, without the prior written consent of Developer. 3.11 Title Commitment Supplements. If at any time following the Effective Date, the Title Company issues a supplement to the Title Commitment, then any exceptions to the title to the Property set forth in the supplement and not previously shown as an exception to the coverage under the Title Policy shall be Permitted Exceptions, unless Developer delivers a Supplement Notice to City within twenty (20) calendar days following the date of the supplement. City shall have twenty (20) calendar days following receipt of a Supplement Notice to elect to deliver a Supplement Notice Response. If City elects in a Supplement Notice Response to cause the removal of any matter objected to in a Supplement Notice from the Title Commitment or its effect to be insured against, City shall cause the removal of each such objectionable matter from the Title Commitment or a commitment to issue such insurance to be issued by an appropriate insurance carrier, prior to the Close of Escrow, all to the reasonable satisfaction of Developer. If City is unwilling or unable to cause the removal of any one or more matters objected to in a Supplement Notice from the Title Commitment or its effect to be insured against, all to the reasonable satisfaction of Developer, then, within ten (10) days following the earlier of: (a) Developer's receipt of the Supplement Notice Response or (b) passage of the time for City to deliver a Supplement Notice Response, Developer may either: (1) refuse to accept the title to and conveyance of the Property, in which case either Developer or City shall have the right to cancel the Escrow and terminate this Agreement, in their respective sole and absolute discretion, without liability to the other Party or any other Person, by delivery of a Notice of termination to both the other Party and the Escrow Agent, or (2) Developer may waive its objection to any items set forth in a Supplement Notice by delivering a Supplement Notice Waiver to both City and the Escrow Agent. Failure by Developer to deliver a Supplement Notice Waiver, where a Supplement Notice Response or City's failure to deliver a Supplement Notice Response indicates City's election not to cause the removal of any matter objected to in a Supplement Notice from the Title Commitment or to insure against its effect, within ten (10) days following Developer's receipt of such Supplement Notice Response or expiration of the time period for City to deliver such Supplement Notice Response under this Agreement, will be deemed Developer's disapproval of the title to and refusal to accept conveyance of the Property and both the Developer and City shall have the right to cancel Escrow and terminate this Agreement upon seven (7) days Notice, in their resp'ective sole and absolute discretion. 3.12 Option to Purchase and Right of First Refusal for Purchase of Developer Property. In consideration of the City's execution of this DOA and the sale of the City Property 22 -September 27, 2016 G.6.a Packet Pg. 122 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) contemplated herein, Developer grants to City an option to purchase certain real property, as more specifically set forth in Section 10 of this Agreement, and a right of first refusal, as more specifically set forth in Section 11 of this Agreement. 4. JOINT ESCROW INSTRUCTIONS 4.1 Opening of Escrow. City and Developer shall cause the Escrow to be opened within thirty (30) days following Notice that City has received fully executed copies of the compensation agreement by delivering a copy of this Agreement signed by both of the Parties to the Escrow Agent. The Escrow Agent shall promptly confirm the Escrow Opening Date in writing to each of the Parties, with a copy of the Escrow Agent Consent signed by the authorized representative(s) of the Escrow Agent. The provisions of this Section 4 are the joint escrow instructions of City and Developer to the Escrow Agent for conducting the Escrow. 4.2 Escrow Agent Authority. City and Developer authorize the Escrow Agent to: 4.2.1 Charges. Pay and charge City and Developer for their respective shares of the applicable fees, taxes, charges and costs payable by either City or Developer regarding the Escrow; 4.2.2 Settlement/Closing Statements. Release each Party's Escrow settlement/closing statement to the other Party; 4.2.3 Document Recording. File any documents delivered for recording through the Escrow with the office of the Recorder of the County for recordation in the official records of the County, pursuant to the joint instructions of the Parties; and. 4.2.4 Counterpart Documents. Utilize documents that have been signed by City and Developer in counterparts, including attaching separate signature pages to one version of the same document. 4.3 Developer's Conditions to Close of Escrow. Provided that the failure of any such condition to be satisfied is not due to a Default under this Agreement by Developer, Developer's obligation to purchase the Property from City on the Escrow Closing Date shall be subject to the satisfaction or waiver of each of the following conditions precedent, each of which can only be waived in writing by Developer: 4.3.1 Title Policy. The Title Company is, upon payment of the Title Company's premium for the Title Policy, irrevocably and unconditionally committed to issue the Title Policy to Developer, at the Close of Escrow; 4.3.2 Approvals. Final issuance of all discretionary Approvals required from any Government for the Construction of the Project on the Property, on terms and conditions reasonably acceptable to Developer; 4.3.3 CEQA Documents. Final adoption, approval or certification of the CEQA Documents; 23 -Seotember 27. 2016 G.6.a Packet Pg. 123 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 4.3.4 City Escrow Deposits. City deposits all of the items into the Escrow required by Section 4.6; 4.3.5 Settlement/Closing Statement. Developer approves the Escrow Agent's estimated Escrow closing/settlement statement; 4.3.6 City Pre-Closing Obligations. City performs all of its material obligations required to be performed by City under this Agreement prior to the Close of Escrow. 4.4 City's Conditions to Close of Escrow. Provided that the failure of any such condition to be satisfied is not due to a Default under this Agreement by City, City's obligation to sell the Property to Developer on or before the Escrow Closing Date shall be subject to the satisfaction or waiver of each of the following conditions precedent, each of which can only be waived in writing by City: 4.4.1 Document Approval. City has received from Developer and approved all of the following described items in City's reasonable discretion. Developer shall have all of the following described documents completed and signed by all of the Persons required to make such documents operative and shall have delivered tme, accurate and legible copies or originals of all such documents (as specified in this Agreement) to City, prior to the Close of Escrow: (a) Developer Entity Documents; and (b) A copy of the Constmction Contract; and (c) All Insurance Documents; and (d) A copy of the Constmction Financing Documents, if any; 4.4.2 Title. The Developer accepts the state of the title of the Property, pursuant to Section 3.4; 4.4.3 Due Diligence. The Developer delivers its Due Diligence Completion Notice to both City and the Escrow Agent stating the Developer's unconditional acceptance of the condition of the Property; 4.4.4 Title Policy. The Title Company is, upon payment of the Title Company's standard premium for an insurance policy such as the Title Policy, irrevocably and unconditionally committed to issue the Title Policy to Developer, at the Close of Escrow; 4.4.5 Approvals. Final issuance of all discretionary Approvals required from any Government for the Constmction of the Project on the Property, on terms and conditions reasonably acceptable to City; 4.4.6 CEQA Documents. Final adoption, approval or certification of the CEQA Documents; 24 -September 27, 2016 G.6.a Packet Pg. 124 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 4.4.7 Construction Financing. A Permitted Security Instrument securing repayment of any Construction Financing and approved by City has been deposited into the Escrow and is in a condition to be recorded against the Property at the Close of Escrow and the Construction Financing, if any, is in a condition to fund promptly following the Close of Escrow; 4.4.8 Permanent Loan Commitment. If Developer obtains Construction Financing for more than Forty Percent ( 40%) of the Total Project Costs then Developer shall provide City with evidence reasonably satisfactory to City that Developer has received a commitment from a Lender to provide a Permanent Loan; 4.4.9 Developer Escrow Deposits. Developer deposits all of the items into the Escrow required by Section 4.5; 4.4.10 SettlemenUClosing Statement. City approves the Escrow Agent's estimated Escrow closing/settlement statement; 4.4.11 Developer Pre-Closing Obligations. Developer performs all of its material obligations required to be performed by Developer under this Agreement prior to the Close of Escrow; and 4.4.12 Compensation Agreement. City receives compensation agreements fully executed by all appropriate taxing entities. 4.5 Developer's Escrow Deposits. At least one (1) Business Day prior to the Escrow Closing Date scheduled by the Escrow Agent in a writing delivered to both of the Parties, Developer shall deposit the following described funds and documents into the Escrow and, concurrently, provide a copy of each such document to City: 4.5.1 Notice of Agreement. The Notice of Agreement signed by the authorized representative(s) of Developer in recordable form. 4.5.2 Insurance Documents. All Insurance Documents, as approved by City; 4.5.3 Construction Financing Security Instrument. A Permitted Security Instrument securing repayment of the Construction Financing, if any, executed by the authorized representative(s) of Developer in recordable form, to be recorded against the Property at the Close of Escrow; 4.5.4 Notice of Option to Purchase Developer's Property. The Notice of Option to Purchase Real Estate granted to City allowing City's purchase of the Developer Property in accordance with Section 10 of this Agreement and in recordable form substantially similar to Exhibit "E". 4.5.5 Other Funds and Documents. Such other funds or documents required from Developer under the terms of this Agreement to close the Escrow or by the Escrow Agent in the performance of the Escrow Agent's contractual or statutory obligations relating to the Escrow. 25 -September 27, 2016 G.6.a Packet Pg. 125 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 4.6 City's Escrow Deposits. At least one (1) Business Day prior to the Escrow Closing Date scheduled by the Escrow Agent in a writing delivered to both of the Parties, City shall deposit the following described funds and documents into the Escrow and, concurrently, provide a copy of each such document to Developer: 4.6.1 Deed. The Deed signed by the authorized representative(s) of City; 4.6.2 Notice of Agreement. The Notice of Agreement signed by the authorized representative(s) of City in recordable form. 4.6.3 Attorney Fees. Itemized invoice of attorney fees incurred by City in negotiating and preparing this Agreement. 4.6.4 Other Funds and Documents. Such other funds or documents required from City under the terms of this Agreement to close the Escrow or by the Escrow Agent in the performance of the Escrow Agent's contractual or statutory obligations regarding the Escrow. 4.7 Closing Procedure. When each of Developer's Escrow deposits, as set forth in Section 4.5, and each of City's Escrow deposits, as set forth in Section 4.6, are deposited into the Escrow, the Escrow Agent shall request Notice from both Developer and City that each of their respective conditions to the Close of Escrow, as set forth in Sections 4.3 and Section 4.4, respectively, are satisfied or waived. Upon the Escrow Agent's receipt of written confirmation from both City and Developer that each of their respective conditions to the Close of Escrow are either satisfied or waived, the Escrow Agent shall schedule the Escrow Closing Date by Notice to both Parties and, thereafter, shall close the Escrow on or before the Escrow Closing Date by doing all of the following: 4. 7 .1 Recordation and Distribution of Recorded Documents. The Escrow Agent shall file the following documents with the office of the Recorder of the County for recording in the official records of the County, in the following order, at the Close of Escrow: (a) the Deed; (b) the Notice of Agreement; (c) Permitted Security Instrument securing the Construction Financing, if any; (d) Notice of Option securing City's right to purchase the Developer Property; and (e) any other documents to be recorded through the Escrow upon the joint instructions of the Parties. The Escrow Agent shall deliver conformed copies of all documents filed for recording in the official records of the County through the Escrow to City, Developer and any other Person designated in the written joint escrow instructions of the Parties to receive an original or conformed copy of each such document. Each copy of a document filed for recording shall show all recording information. The Parties intend and agree that this Section 4. 7 .1 shall establish the relative priorities of the documents to be recorded in the official records of the County through the Escrow, by providing for recordation of Senior interests prior in time to junior interests, as provided in this Section 4.7.1; 4.7.2 Distribution of Other Documents. The Escrow Agent shall deliver copies of all documents to be delivered through the Escrow that are not to be recorded to City, Developer and any other Person designated in the written joint escrow instructions of the Parties to receive an original or copy of each such document; 26-Seotember 27. 2016 G.6.a Packet Pg. 126 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 4.7.3 Title Policy. Obtain and deliver the Title Policy to Developer; 4.7.4 Funds. Deliver all funds held by the Escrow Agent for the account of City to the appropriate taxing entities identified by the City and as set out in the compensation agreement, less any other charges to the account of City pursuant to the terms of this Agreement and as authorized by the compensation agreement, including but not limited to the City's attorney fees in negotiating and preparing this Agreement, and return all remaining funds held by the Escrow Agent for the account of Developer to Developer, less Developer's share of the Escrow closing costs, and less any other charges to the account of Developer pursuant to the terms of this Agreement; 4.7.5 Report to IRS. Following the Close of Escrow and prior to the last date on which such report is required to be filed with the United States Internal Revenue Service, if such report is required pursuant to Section 6045(e) of the United States Internal Revenue Code, the Escrow Agent shall report the gross proceeds of the sale of the Property pursuant to this Agreement to the United States Internal Revenue Service on Form 1099-B, Form W-9 or such other form(s) as may be specified by the United States Internal Revenue Service pursuant to Section 6045(e) or its associated Federal regulations. Upon the filing of such reporting form with the United States Internal Revenue Service, the Escrow Agent shall deliver a copy of the filed form to both City and Developer. 4.8 Close of Escrow. The Close of Escrow shall occur on or before the Escrow Closing Date. The Parties may mutually agree to change the Escrow Closing Date by joint written instruction to the Escrow Agent. The City Manager is authorized to agree to one or more extensions of the Escrow Closing Date on behalf of City up to a maximum time period extension of six (6) months in the aggregate, in the City Manager's sole and absolute discretion. If for any reason (other than a Default or Event of Default by such Party) the Close of Escrow has not occurred on or before the Escrow Closing Date, then any Party not then in Default under this Agreement may cancel the Escrow and terminate this Agreement, without liability to the other Party or any other Person for such cancellation and termination, by delivering written Notice of termination to both the other Party and the Escrow Agent. Following any such Notice of termination of this Agreement and cancellation of the Escrow, the Parties and the Escrow Agent shall proceed pursuant to Section 4.11. Without limiting the right of either Party to cancel the Escrow and terminate this Agreement, pursuant to the first sentence of this Section 4.8, if the Escrow does not close on or before the Escrow Closing Date and neither Party has exercised its contractual right to cancel the Escrow and terminate this Agreement under this Section 4.8 before the first date on which the Escrow Agent Notifies both Parties that the Escrow is in a position to close, then the Escrow shall close as soon as reasonably possible following the first date on which the Escrow Agent Notifies both Parties that the Escrow is in a position to close, pursuant to the terms and conditions of this Agreement. 4.9 Escrow Closing Costs, Taxes and Title Policy Premium. Developer shall pay all Escrow fees and such other costs as the Escrow Agent may charge for conducting the Escrow. City shall pay the premium charged by the Title Company for the Title Policy, exclusive of any endorsements or other supplements to the coverage of the Title Policy that may be requested by Developer. City shall pay any County documentary transfer tax arising from the transfer of the Property from City to Developer at the Close of Escrow. Developer shall pay any and all 27 -September 27, 2016 G.6.a Packet Pg. 127 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 5. PROJECT DEVELOPMENT. 5.1 Developer's Covenant to Develop the Project. Developer covenants to and for the express benefit of the City that Developer shall commence, pursue and complete the development of the Project, within the time period for each such action set forth in the Project Schedule of Performance. Developer covenants and agrees for itself, its successors and assigns that the Property shall be improved and developed with the Project, in conformity with the terms and conditions of this Agreement and all applicable Laws and conditions of each Government. The covenants of this Section 5.1 shall run with the Property until the date of issuance of a Certificate of .Completion for the Project. 5.2 Changes to Project Plans and Specifications During Course of Construction. Developer shall have the right, during the course of Construction of the Project, to make "minor field changes," without seeking the approval of the City, if such changes do not affect the type of use to be conducted within all or any portion of a structure. "Minor field changes" shall be defined as those changes from the Approvals for the Project that have no substantial effect on the Project and are made in order to expedite the work of Construction in response to field conditions. Nothing contained in this Section 5.2 shall be deemed to constitute a waiver of or change in any Approvals governing any such "minor field changes" or any Approvals by any Government otherwise required for any such "minor field changes." 5.3 Construction Start and Completion of Project. 5.3.1 Commencement. Developer shall commence Construction of the Project in accordance with the Project Schedule of Performance. Thereafter, Developer shall diligently proceed to pursue and complete the Construction of the Project, in a good and workmanlike manner, in accordance with the Project Schedule of Performance and all applicable Laws and all Approvals for the Project issued by each Government. 5.3.2 Completion. On or before the Project Completion Date, Developer shall do all of the following: (a) Record a Notice of Completion, in accordance with California Civil Code Section 3093, for the entirety of the Project; (b) Cause the Project to be inspected by each Government, as required by the applicable Approvals or Laws, and correct any defects and deficiencies that may be disclosed by any such inspection; (c) Cause all final Certificates of Occupancy (or equivalent approvals) and other Approvals necessary for the occupancy and operation of the completed Project to be duly issued; 5.3.3 Time Extensions. The City Manager, in his or her sole and absolute discretion, may extend the Project Completion Date for up to an additional one hundred eighty (180) days, in the aggregate. 29 -September 27, 2016 G.6.a Packet Pg. 129 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 5.4 Compliance with Laws. All work performed in connection with the Construction of the Project shall comply with all applicable Laws and Approvals. 5.5 Project Schedule of Performance. All planning construction, installation and other development obligations and responsibilities of Developer related to the Project shall be initiated and completed within the times specified in the Project Schedule of Performance, or within such reasonable extensions of such times granted by the City manager or as otherwise provided for in this Agreement. 5.6 Reserved. 5.7 City Right to Inspect Project and Property. The City Parties shall have the right of reasonable access to the Property, without the payment of charges or fees, during normal construction hours, during the period of Construction of the Project. Any and all City representatives who enter the Property shall identify themselves at the Construction management office or, if none, to the apparent on-site Construction supervisor on the Property, upon their entrance onto the Property, and shall at all times be accompanied by a representative of Developer, while on the Property. Developer shall make a representative of Developer available for this purpose at all times during normal construction hours, upon reasonable advance Notice from the City. The City shall Indemnify Developer from injury, property damage or liability to the extent arising out of the exercise by the City of the right of access to the Property provided in this Section, except to the extent that any such injury, property damage or liability arises from the negligence or willful misconduct of any of Developer Parties. If in the City's reasonable judgment it is necessary, the City shall have the further right, from time to time, at its own cost, to retain a consultant or consultants to inspect the Project and verify compliance by Developer with the provisions of this Agreement. Developer acknowledges and agrees that any such City inspections are for the sole purpose of protecting the City's rights under this Agreement, are made solely for the City's benefit, that the City's inspections may be superficial and general in nature, and are for the purposes of informing the City of the progress of the Project and the conformity of the Project with the terms and conditions of this Agreement, and that Developer shall not be entitled to rely on any such inspection(s) as constituting the City's approval, satisfaction or acceptance of any materials, workmanship, conformity of the Project with this Agreement or otherwise. Developer agrees to make its own regular inspections of the work of Construction of the Project to determine that the progress and quality of the Project and all other requirements of the work of Construction of the Project are being performed in a manner satisfactory to Developer. 5.8 PREY AILING WAGES. 5.8.1 RESPONSIBILITY. DEVELOPER AGREES WITH CITY THAT DEVELOPER SHALL ASSUME ANY AND ALL RESPONSIBILITY AND BE SOLELY RESPONSIBLE FOR DETERMINING WHETHER OR NOT LABORERS EMPLOYED RELATIVE TO THE CONSTRUCTION OF THE PROJECT MUST BE PAID THE PREVAILING PER DIEM WAGE RATE FOR THEIR LABOR CLASSIFICATION, AS DETERMINED BY THE STATE, PURSUANT TO LABOR CODE SECTIONS 1720, ET SEQ. 30-Seotember 27. 2016 G.6.a Packet Pg. 130 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) City may, in its sole and absolute discretion, issue a Certificate of Completion upon the posting of a bond or irrevocable standby letter of credit by Developer, in form and substance reasonably acceptable to the City, in an amount representing the fair value of the work on the Project remaining to be completed, as reasonably determined by the City. If the City fails to provide such written statement, within the specified time period, Developer shall be deemed, conclusively and without further action of the City, to have satisfied the requirements of this Agreement with respect to the Constmction of the Project, as if a Certificate of Completion had been issued by the City pursuant to this Agreement, and the same shall irrevocably be deemed to have been issued as of such date for all purposes of this Agreement; provided, however, that City shall subsequently issue a Certificate of Completion, if requested to do so by Developer. 5.9.2 Effect. A Certificate of Completion shall only be evidence of the City's conclusive determination of satisfactory completion of the Constmction of the Project in accordance with the terms of this Agreement. A Certificate of Completion shall not constitute a Notice of Completion under California Civil Code Section 3093, nor shall it act to terminate the continuing reservations, covenants, restrictions or conditions contained in the Deed or any other instmments recorded against the Property or set forth in this Agreement or otherwise. A Certificate of Completion is not evidence of the compliance of the Project with any Laws or Approvals. A Certificate of Completion shall not evidence the satisfaction of any obligation of Developer to the City under this Agreement or otherwise, other than Developer's obligation to constmct and install the Project on the Property. After the recordation of a Certificate of Completion for the Project, any Person then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the Property or the Project shall not (because of such ownership, purchase, lease or acquisition) incur any obligation or liability under this Agreement regarding Constmction of the Project, but such Person shall be bound by any other reservations, covenants, conditions, restrictions and interests affecting the Property pursuant to this Agreement. 6. INSURANCE 6.1 Developer. Developer shall maintain, to protect the City Parties against all insurable Claims resulting from the actions of Developer in connection with this Agreement, the Property and the Project, at the sole cost and expense of Developer, until issuance of a Certificate of Completion for the Project, the following insurance (or its then reasonably available equivalent): (a) Liability Insurance; (b) Property Insurance; (c) Builder's Risk Insurance; and (d) Workers Compensation Insurance. 6.2 Nature of Insurance. All Liability Insurance, Property Insurance and Automobile Liability Insurance policies this Agreement requires shall be issued by carriers that: (a) are listed in the then current "Best's Key Rating Guide-Property/Casualty-United States & Canada" publication (or its equivalent, if such publication ceases to be published) with a minimum financial strength rating of "A-" and a minimum financial size category of "VII" (exception may be made for the State Compensation Insurance Fund when not specifically rated); and (b) are authorized to do business in the State Developer may provide any insurance under a "blanket" or "umbrella" insurance policy, provided that: (i) such policy or a certificate of such policy shall specify the amount(s) of the total insurance allocated to the Property and the Project, which amount(s) shall equal or exceed the amount(s) required by this Agreement and shall not be 32 -Seotember 27. 2016 G.6.a Packet Pg. 132 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) any such Notice of Default shall have the right, at its option, to commence the cure or remedy of any Default of Developer set forth in such Notice and to diligently and continuously proceed with such cure or remedy such Default, within the cure period allowed to Developer under this Agreement. The City shall accept such performance by a Lender with the same force and effect as if furnished by Developer. If such Default can only be remedied or cured by the Lender upon obtaining possession of the Property, the City shall allow the Lender an opportunity to obtain possession with diligence and continuity through exercise of remedies under such Lender's Permitted Security Instrument and to remedy or cure such Default within ninety (90) days after obtaining possession of the Property. If the Default reasonably requires more than ninety (90) days to cure, however, then the time available to a Lender to cure pursuant to this Section 7.4 shall be the reasonable time required to complete such cure, as long as the Lender has commenced the cure of the Default within such ninety (90) day period and diligently pursues the cure to completion. During such extension of time, the City shall not terminate this Agreement or exercise other remedies under this Agreement by reason of such Default. All Developer Specific Defaults shall be deemed cured upon transfer of Developer's interest in the entire Property to the Lender, its assignee or nominee, pursuant to exercise of remedies under a Permitted Security Instrument. In addition, any Lender properly completing the Project with the consent of City shall be entitled, upon written request made to City, to a Certificate of Completion from City. Nothing contained in this Agreement shall be deemed to permit, authorize or require any Lender to undertake or continue the Construction or installation of any portion of the Project (beyond the extent necessary to conserve or protect improvements or Construction already made) prior to or after acquiring title to or possession of the entire Property, without expressly assuming Developer's obligations under this Agreement by written agreement reasonably satisfactory to the City, in which the Lender agrees to complete, in the manner provided in this Agreement, the Project. Any Lender desiring to complete the Project must provide the City with evidence reasonably satisfactory to the City that the Lender has the qualifications (or will engage one or more licensed contractor(s) or consultant(s) with such qualifications) and financial capability necessary to perform such obligations. 7.4.3 No Termination of Permitted Security Instruments by Default. An Event of Default by Developer under this Agreement shall not defeat or render invalid the lien of any Permitted Security Instmment made in good faith and for value as to all or any part of the Property, whether or not the Lender is subordinated to this Agreement; but unless otherwise provided in this Agreement, this Agreement shall be binding and effective against any owner of the Property, whose title thereto is acquired pursuant to exercise of remedies under a Permitted Security Instrument or from a Person exercising any such remedies. 7.4.4 Lender Rights on Termination or Modification. No termination of this Agreement shall be binding upon a Lender unless the termination occurs after Notice to such Lender and such Lender's failure to cure all then existing Defaults under this Agreement (except any Defaults), pursuant to this Section 7.4, or with such Lender's prior written consent. No modification of this Agreement that materially affects the rights of a Lender shall be binding upon the Lender without its prior written consent. 7.4.5 City Right to Purchase Obligation. In any case where, after delivery of Notice of Default of Developer under this Agreement, an affected Lender· has not exercised the option provided in Section 7.4.2 to construct and install the applicable portions of the Project, 16 -Sentember 27. 2016 G.6.a Packet Pg. 136 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) or has exercised the option, but has not proceeded diligently with such Construction or installation, the City shall have the option, in the City's sole and absolute discretion, to purchase the rights of such Lender against or in the reference to Developer regarding the Property or Project secured by any Permitted Security Instrument held by such Lender and by payment to the Lender of the amount of the unpaid obligations secured by such Permitted Security Instrument and, if the ownership of the Property has vested in such Lender, the City, at its option, but not its obligation, shall be entitled to a conveyance from such Lender of any title or interest in the Property vested in such Lender to the City or the City's designee. (a) After forty-five (45) days following expiration of the time period for an affected Lender to cure a Default of Developer under this Agreement, an affected Lender may demand by Notice, that the City act to exercise or forego the right granted in Section 7.4.5 by Notice to the Lender. If the City fails to exercise the right granted in Section 7.4.5 by Notice to the Lender within forty-five ( 45) calendar days following the date of the City's receipt of such written demand from the Lender, the City shall be conclusively deemed to have waived its rights under Section 7.4.5. If the City timely exercises its rights under Section 7.4.5, the purchase transaction shall close within sixty (60) days after the date of such Lender's receipt of the City's Notice exercising such rights. 7.4.6 No Construction Obligation of Lender. A Lender shall in no way be obligated by the provisions of this Agreement to constmct or complete the development of the Project or to guarantee such constmction or completion, but may do so pursuant to and in accordance with this Section 7.4. Nothing in this Agreement shall be deemed to constme, permit, or authorize any Lender to devote all or any portion of the Property to any uses, or to construct any improvements thereon, other than those uses or the Project provided for or authorized by this Agreement. 7.4.7 City Right to Cure Obligations. In the event of a Default by Developer under any Permitted Security Instrument, prior to the date of issuance of a Certificate of Completion for the Project, where the Lender has not exercised its option to complete the Project under Section 7.4.2, the City may cure the Default of Developer l.mder the applicable Permitted Security Instrument, but is under no obligation to do so, prior to completion of any sale or foreclosure of all or any portion of the Property under the applicable Permitted Security Instrument. The City shall be entitled to reimbursement from Developer of all costs and reasonable expenses incurred by the City in curing any Default of Developer under any Permitted Security Instrument, under demand. Any amount expended by the City to cure a Default of Developer under any Permitted Security Instrument that is not reimbursed to the City by Developer within thirty (30) calendar days after Notice of such amount to Developer, shall accme Default Interest, until paid in full. 7.4.8 Foreclosure of Permitted Security Instrument. Foreclosure of any Permitted Security Instrument, whether by judicial proceedings or by power of sale, or any conveyance by deed in lieu of foreclosure, shall not require the consent of the City or constitute a Default under this Agreement. Following any Foreclosure Event, the City shall recognize as "Developer" under this Agreement any purchaser or other transferee of the entire Property that assumes each and all the obligations of Developer under this Agreement pursuant . to an assumption agreement reasonably satisfactory to the City. If any Lender or its nominee or G.6.a Packet Pg. 137 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) section may hereafter be amended, renumbered, replaced or substituted. Such conveyance shall be duly acknowledged by Developer and a notary public in a manner suitable for recordation. The City may enforce its rights pursuant to this Section 8.3 by means of an injunctive relief or forfeiture of title action filed in any court of competent jurisdiction. (d) Upon the revesting in the City of title to the Property, whether by grant deed or court decree, the City shall exercise its reasonable good faith efforts to resell the Property at the Property's then fair reuse value, as soon and in such manner as the City shall, in its sole discretion, find feasible and consistent with the objectives of the compensation agreements, to a qualified and responsible Person or Persons (as reasonably determined by the City) who will assume Developer's obligations to begin and/or complete and/or operate the Project, or such other replacement development acceptable to the City, in its sole and absolute discretion, consistent with the Redevelopment Plan. Upon any such resale of all or a portion of the Property, the proceeds received by the City from such sale shall be applied, as follows: (i) First, to pay any and all amounts required to release/reconvey any Permitted Security Instmment recorded against the Property; and (ii) Second, to reimburse the City on its own behalf or on behalf of the City for all actual internal and Third Person costs and expenses incurred by the City or the City related to the Property, the Project or this Agreement, including customary and reasonable fees or salaries to Third Person consultants (including Legal Costs) in connection with the recapture, management or resale of all or any portion of the Property; all taxes, assessments and utility charges paid by the City and/or the City with respect to all or any portion of the Property; any payment made or necessary to be made to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations incurred by Developer with respect to the Property Acquisition Costs or the constmction or installation of the Project; and amounts otherwise owing to the City by Developer pursuant to the terms of this Agreement; and (iii) Third, to the extent that any proceeds from such resale are, thereafter, available, to reimburse Developer, the amount of: (1) the pro-rata portion of the Purchase Price paid to the City; and (2) the pro-rata portion of the Third Person costs actually incurred and paid by Developer regarding the development of the Project, including costs of carry, taxes, and other items as set forth in a cost certification to be made by Developer to the City, prior to any such reimbursement and, which certification shall be subject to the City's reasonable approval; provided, however, that Developer shall not be entitled to reimbursement for any expenses to the extent that such expenses relate to any loans, liens or other encumbrances that are paid by the City pursuant to the provisions of sub-sections (1) or (2), above; and (iv) Fourth, any portion of the proceeds from the resale of the Property remaining after the foregoing applications shall be retained by the City, as its sole and exclusive property and distributed immediately thereafter in compliance with the compensation agreements. G.6.a Packet Pg. 141 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) matter subject to an indemnity obligation under this Agreement are fully, finally, absolutely and completely barred by applicable statutes of limitations. 8.7 Indemnification Procedures. Wherever this Agreement requires any Indemnitor to Indemnify any Indemnitee: 8.7.1 Prompt Notice. The Indemnitee shall promptly Notify the lndemnitor of any Claim. 8.7.2 Selection of Counsel. The Indemnitor shall select counsel reasonably acceptable to the Indemnitee. Counsel to Indemnitor's insurance carrier that is providing coverage for a Claim shall be deemed reasonably satisfactory, except in the event of a potential or actual conflict of interest for such counsel regarding such representation or such counsel proves to be incompetent regarding such representation. Even though the lndemnitor shall defend the Claim, Indemnitee may, at its option and its own expense, engage separate counsel to advise it regarding the Claim and its defense. The Indemnitee's separate counsel may attend all proceedings and meetings. The Indemnitor's counsel shall actively consult with the Indemnitee's separate counsel. The Indemnitor and its counsel shall, however, control the defense, except to the extent that the Indemnitee waives its rights to indemnity and defense for such Claim. 8.7.3 Cooperation. The Indemnitee shall reasonably cooperate with the Indemnitor' s defense of the Indemnitee. 8.7.4 Settlement. The Indemnitor may only settle a Claim with the Indemnitee's consent, not to be unreasonably withheld. 9. GENERAL PROVISIONS 9.1 Incorporation of Recitals. The Recitals of fact set forth preceding this Agreement are true and correct and are incorporated into this Agreement in their entirety by this reference. 9.2 Successor Agency Not a Party. The Successor Agency is not a Party to this Agreement. 9.3 Restrictions on Change in Management or Control of Developer, Assignment and Transfer. 9.3.1 Restrictions. Developer acknowledges and agrees that the qualifications and identity of Developer are of particular importance and concern to City. Developer further acknowledges and agrees that City has relied and is relying on the specific qualifications and identity of Developer in entering into this Agreement with Developer and that City would not have entered into this Agreement, but for the specific qualifications and identity of Developer. As a consequence, Transfers are permitted only as expressly provided in this Agreement. Developer represents to City that it has not made and agrees that it will not create or permit to be made or created, any Transfer, other than a Permitted Transfer, either voluntarily, involuntarily or by operation of Law, without the prior written approval of City, which may be given, withheld or conditioned in the sole and absolute discretion of City. Any Transfer made in contravention of this Section 9.3 shall be voidable at the election of City. Developer hereby 41 -SPntPmhP.r ?7 ?01 n G.6.a Packet Pg. 143 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) Option is not exercised within the time set forth in this section, (ii) this Agreement is terminated, (iii) the parties fail to execute a DDA or other similar agreement, (iv) the Developer does not acquire permits necessary for the Project, or (v) the City does not exercise its right of first refusal or exercises such right but then does not purchase the Developer Property and such property is sold to a third party, then the Option shall terminate and be null and void. The parties agree that the bargained for consideration for this Option Agreement is the mutual execution of the DDA and no further consideration for this Option Agreement is expected. The option granted herein shall be a covenant running with the land. 10.2 Following the City's exercise of its Option, City and Developer shall select a mutually acceptable appraiser to perform the appraisal. If City and Developer cannot agree upon an appraiser, then City and Developer shall each select an appraiser, the two of whom shall mutually agree upon a third appraiser to perform the appraisal. The appraiser shall establish the valuation for the Developer's Property by considering the highest and best use of the Developer's Property based upon its condition at the time of exercise of the Option and subject to any and all encumbrances including Developer's right to access and existing or likely future environmental conditions. 10.3 During the term of the Option, prior to City's exercise of said Option and continuing through City's actual acquisition of the Developer Property, Developer shall remain responsible to keep and maintain the Developer's Property in good repair, except Developer shall have no obligations as to the condition of Developer Property during the temporary constmction easement granted relative to the construction of the freeway project. 10.4 In the event of close of escrow on the Developer's Property, each side will bear its own costs for any attorney, staff, or consultant time involved in the transaction, except that Developer shall be responsible to pay for any commercial broker. The City shall owe no commission on the sale of the Developer's Property. All other closing costs shall be shared equally between City and Developer. 10.5 In the event City exercises its option, then within 30 business days after such exercise, the parties shall negotiate, execute and deliver a purchase and sale agreement for the purchase and sale of the Developer Property. To the extent terms and conditions included in such purchase and sale agreement appear in this DDA, such terms and conditions shall be substantially similar to those set forth in this DDA, to the extent the terms and conditions of the DDA are appropriate and applicable for the sale of the Developer Property. The DDA terms and obligations related to the City's interest in the development of the City Property are not relevant to the purchase and sale of the Developer Property and such provisions shall not be included in the purchase and sale agreement for the Developer Property. The parties shall negotiate in good faith to resolve any dispute as to which terms and conditions of the DDA are applicable to the purchase and sale of the Developer Property. 10.6 Conditions for Exercise of Option. If City is not in default under this Option Agreement and all conditions to the exercise of the option are satisfied or are waived in writing G.6.a Packet Pg. 151 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) [Signatures on following page] 54-September 27, 2016 G.6.a Packet Pg. 154 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXIDBIT "A" TO 2016 disposition and development agreement CITY PROPERTY LEGAL DESCRIPTION ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF GRAND TERRACE, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS FOLLOWS: PARCEL NO. 7 OF PARCEL MAP NO. 3803, AS PER PLAT RECORDED lN BOOK49 OF PARCEL MAPS, PAGE(S) 16 AND 17, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY APN: l 167-141-08-0000 Exhibit "A" City Property Legal Description G.6.a Packet Pg. 158 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXHIBIT "B" TO 2016 disposition and development agreement DEVELOPER PROPERTY LEGAL DESCRIPTION All that certain real property situated in the County of San Bernardino, State of California, described as follows: The East 1h of the following described property described as a whole as follows: East 1h of Lot 7 in Section 5, Township 2 South, Range 4 West, San Bernardino Base and Meridian; also that portion of Lot 6 in Section 5, more particularly described as follows: Commencing at a point 384.78 feet West of the Northeast corner of said Lot 6: thence running West 256.52 feet to the Northwest corner of said Lot 6; thence at right angles South to the Southwest corner of said Lot; thence at right angles East 256.52 feet; thence at right angles North to the place of beginning. All as delineated upon a certain map of the lands of East Riverside Land Company and recorded in the office of the County Recorder of the County of San Bernardino, State of California, in Book 6 of Maps, Page 44, thereof, the said portion of Lot 6 is also described as the Westerly rectangular 256.52 feet of said lot. Excepting therefrom that portion conveyed to the State of California by Deed recorded December 18, 1956, in Book 4112, page 186, Official Records. Assessor Parcel Number: 1167-121-01. Exhibit "B" Developer Property Legal Description G.6.a Packet Pg. 159 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) Exhibit "B" Developer Property Legal Description G.6.a Packet Pg. 160 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXfilBIT "C" TO 2016 disposition and development agreement FORM OF ESCROW AGENT CONSENT ORANGE COAST TITLE COMPANY OF SOUTHERN CALIFORNIA accepts that certain 2016 disposition and development agreement, dated as of September 13, 2016, by and between the City of Grand Terrace, a municipal corporation, and Dr. Terry McDuffee, an individual, agrees to act as "Escrow Agent" pursuant to such agreement and agrees to be bound by all provisions of such agreement applicable to it as the Escrow Agent. ESCROW AGENT: ORANGE COAST TITLE COMP ANY OF SOUTHERN CALIFORNIA By: _____________ _ Name: ~------------Its: _____________ _ Dated: ~------------ Notice Address: Exhibit "C" Form Of Escrow Agent Consent G.6.a Packet Pg. 161 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXIDBIT "D" TO 2016 disposition and development agreement TOT AL PROJECT COSTS Estimated at Two Million Dollars ($2,000,000) based on intended construction of a Ten Thousand (10,000) square foot building at Two Hundred Dollars ($200) per square foot Exhibit "D" Total Project Costs G.6.a Packet Pg. 162 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXHIBIT "E" TO 2016 DISPOSITION AND DEVELOPMENT AGREEMENT NOTICE OF OPTION TO PURCHASE REAL PROPERTY Exhibit "E" Notice of Option to Purchase Real Property G.6.a Packet Pg. 163 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Manager APN 1167-121-01 THIS SPACE FOR RECORDER'S USE ONLY EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT CODE SECTION 27383 CITY OF GRAND TERRACE Notice of Option to Purchase Real Property TO ALL INTERESTED PERSONS PLEASE TAKE NOTICE that as of September 27, 2016, the CITY OF GRAND TERRACE, a municipal corporation ("City"), and DR. TERRY MCDUFFEE, an individual ("Developer"), entered into an agreement entitled "Disposition and Development Agreement" (the "Agreement"). A copy of the Agreement is on file with the City Clerk of the City and is available for inspection and copying by interested persons as a public record of the City at the City's offices located at 22795 Barton Road, Grand Terrace, California 92313, during the regular business hours of the City. The Agreement affects the real property described in Attachment "A" attached to this Notice of Option to Purchase Real Property (the "Property"). The meaning of defined terms, indicated by initial capitalization, used in this Notice of Option to Purchase Real Property and not defined in this Notice of Option to Purchase Real Property shall be the same as the meaning ascribed to such terms in the Agreement. PLEASE TAKE FURTHER NOTICE that the Agreement contains certain covenants running with the land of the Property and other agreements between Developer and the City affecting the Property, including, without limitation (all section references are to the Agreement): 10.1 Grant of Option. In consideration of City's execution of the DDA and the conveyance of the City Property and as a condition precedent to the transfer of the City Property, Developer hereby grants to City, and City hereby accepts, an exclusive option to purchase the Developer Property ("Option") commencing on either (i) August 15· 2019, or (ii) completion of the 1-215 Interchange Project, whichever occurs last, and continuing on thereafter for a period of twelve (12) months ("Option Termination Date"). The purchase price for the Developer's Property shall be the actual fair market value as defined below. If (i) the Option is not exercised within the time set forth in this section, (ii) this Agreement is Exhibit "E" Notice of Option to Purchase Real Property G.6.a Packet Pg. 164 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) terminated, (iii) the parties fail to execute a DDA or other similar agreement, (iv) the Developer does not acquire permits necessary for the Project, or (v) the City does not exercise its right of first refusal or exercises such right but then does not purchase the Developer Property and such property is sold to a third party, then the Option shall terminate and be null and void. The parties agree that the bargained for consideration for this Option Agreement is the mutual execution of the DDA and no further consideration for this Option Agreement is expected. The option granted herein shall be a covenant running with the land. 11.1 Right of First Refusal. Developer, on behalf of itself and all its successors in interest (together, referred to herein collective, as "Developer"), hereby grants to City a right of first refusal ("Right of First Refusal") to purchase the Developer Property from Developer pursuant to the terms and conditions set forth in this Section 11. This Right of First Refusal shall survive termination of this Agreement and shall be a covenant running with the land. 11.2 Right of First Refusal Period. City's Right of First Refusal shall begin upon execution of this Agreement and thereafter expire on the Option Termination Date ("Right of First Refusal Period"). 11.3 Exercise of Right of First Refusal. Throughout the entire Right of First Refusal Period, City shall have the right, but not the obligation, to purchase the Developer Property on terms consistent with the terms under which the Developer Property (or any portion thereof) are offered for sale. The Right of First Refusal shall be exercisable as follows: (i) Developer shall not, at any time during the Right of First Refusal Period, make any transfer of the Developer Property without first giving written notice thereof to City, which notice is hereinafter referred to as "Notice of Transfer"; (ii) the Notice of Transfer shall include the exact and complete terms of the proposed transfer and shall have attached thereto a photocopy of bona fide offer and counteroffer, if any, duly executed by both Developer and the prospective transferee; (iii) for a period of forty-five (45) days after receipt by City of the Notice of Transfer, City shall have the right to give written notice of City's exercise of City's right to purchase the interest proposed to be sold or otherwise transferred on the same terms, price and conditions as set forth in the Notice of Transfer. In the event Developer does not receive written notice of City's exercise of the Right of First Refusal herein granted within said forty-five (45) day period, there shall be a conclusive presumption that City has elected not to exercise the Right of First Refusal hereunder, and Developer may transfer the interest proposed to be transferred on the same terms set forth in the Notice of Transfer (subject to Minor Modifications, as defined below); (iv) in the event City declines to exercise its Right of First Refusal after receipt of the Notice of Transfer and thereafter, (A) Developer and the prospective transferee purchaser (1) modify by more than five percent (5%): (a) the sales price, (b) the amount of down payment, (c) the interest charged, or (2) otherwise materially modify the terms of the prospective transfer; or (B) in the event the sale is not consummated within sixty (60) days after the time period set forth in the Notice of Transfer, then City's Right of First Refusal shall reapply to said transaction as of the occurrence of any of the aforementioned events (any modifications that do not satisfy the criteria of the events described in this subdivision (iv) may be referred to herein as "Minor Modifications"); and (v) the failure by City to exercise its Right of First Refusal as to one transfer shall not eliminate, modify, or reduce City's Right of First Refusal in the event of future transfers that may be proposed during the Right of First Refusal Period. If City exercises its Right of First Refusal but Exhibit "E" Notice of Option to Purchase Real Property G.6.a Packet Pg. 165 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) then fails to purchase the Developer Property in accordance with the terms set forth in the Notice of Transfer, Developer may enter into an agreement to transfer the interest on substantially the same terms set forth in the original Notice of Transfer (subject to Minor Modifications), and City shall not have a Right of First Refusal with respect to such agreement. If the Right of First Refusal has not been exercised during the Right of First Refusal Period, it shall automatically expire at the end of said term. THIS NOTICE OF AGREEMENT is dated as of September 27, 2016, and has been signed on behalf of Developer and the City by and through the signatures of their authorized representative(s) set forth below. This Notice of Agreement may be executed in counterparts and when fully executed each counterpart shall be deemed to be one original instrument. [Signatures on following page] Exhibit "E" Notice of Option to Purchase Real Property G.6.a Packet Pg. 166 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) SIGNATURE PAGE TO NOTICE OF AGREEMENT DISPOSITION AND DEVELOPMENT AGREEMENT CITY: CITY OF GRAND TERRACE, a municipal corporation By: ____________ _ Mayor Attest: By: ____________ _ City Clerk APPROVED AS TO FORM: JONES & MA YER By: ____________ _ City Attorney DEVELOPER: DR. TERRY MCDUFFEE, an individual By: DR. TERRY MCDUFFEE, an individual APPROVED AS TO FORM: PECCORINI & PECCORINI By: ___________ _ Julie Peccorini [SIGNATURES OF PRINCIPALS MUST BE NOTARY ACKNOWLEDGED] Exhibit "E" Notice of Option to Purchase Real Property G.6.a Packet Pg. 167 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) ATTACHMENT "A" TO NOTICE OF OPTION TO PURCHASE REAL PROPERTY Developer Property Legal Description All that certain real property situated in the County of San Bernardino, State of California, described as follows: The East 1/2 of the following described property described as a whole as follows: East 1/2 of Lot 7 in Section 5, Township 2 South, Range 4 West, San Bernardino Base and Meridian; also that portion of Lot 6 in Section 5, more particularly described as follows: Commencing at a point 384.78 feet West of the Northeast corner of said Lot 6: thence running West 256.52 feet to the Northwest corner of said Lot 6; thence at right angles South to the Southwest corner of said Lot; thence at right angles East 256.52 feet; thence at right angles North to the place of beginning. All as delineated upon a certain map of the lands of East Riverside Land Company and recorded in the office of the County Recorder of the County of San Bernardino, State of California, in Book 6 of Maps, Page 44, thereof, the said portion of Lot 6 is also described as the Westerly rectangular 256.52 feet of said lot. Excepting therefrom that portion conveyed to the State of California by Deed recorded December 18, 1956, in Book 4112, page 186, Official Records. Assessor Parcel Number: 1167-121-01. Exhibit "E" Notice of Option to Purchase Real Estate G.6.a Packet Pg. 168 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXIDBIT "F" TO 2016 disposition and development agreement FORM OF DEED [To be attached behind this cover page] Exhibit "F' Form Of Deed G.6.a Packet Pg. 169 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) RECORDING REQUESTED BY: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Manager Escrow and Order No. ----- WHEN RECORDED MAIL TO AND MAIL TAX STATKMENTS TO: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Manager APN ________ _ SPACE ABOVE FOR RECORDER'S USE ONLY CITY OF GRAND TERRACE GRANTDEED FOR VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, the CITY OF GRAND TERRACE, a municipal corporation (the "City"), hereby grants and conveys to DR TERRY MCDUFFEE, an individual (the "Grantee"), all of that certain real property legally described in ATTACHMENT A attached to and by this reference incorporated into this Grant Deed (the "Property"), subject to the following terms, conditions, covenants and restrictions running with the land of the Property for the benefit of the City: 1. Conveyance Subject to Terms of a Disposition and Development Agreement. The Property is conveyed subject to that certain Disposition and Development Agreement dated as of September 27, 2016, by and between the City and the Grantee (the "Agreement"). Any terms indicated to be defined terms in this Grant Deed by initial capitalization and not defined in this Grant Deed shall have the meaning ascribed to the same term in the Agreement. 2. Condition of Property. The Grantee acknowledges and agrees that the Property is conveyed by the City to the Grantee in its "AS IS," "WHERE IS" and "SUBJECT TO ALL FAULTS CONDITION," as of the date of recordation of this Grant Deed, with no warranties, expressed or implied, as to the environmental or other physical condition of the Property, the presence or absence of any patent or latent environmental or other physical condition on or in the Property, or any other matters affecting the Property. Exhibit "F' Form Of Deed G.6.a Packet Pg. 170 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 3. Grantee's Covenant to Develop the Project. Grantee covenants and agrees for itself, its successors and assigns that the Property shall be improved and developed with the Project, in conformity with the terms and conditions of the Agreement and all applicable laws. The covenants of this Section 3 shall run with the Property, until the date of issuance of a Certificate of Completion for the Project. 4. City Power of Termination Regarding Property. 4.1 Reservation. The City hereby reserves a power of termination pursuant to Civil Code Sections 885.010, et seq., exercisable by the City, in its sole and absolute discretion, upon thirty (30) calendar days written notice to Grantee referencing this Section 4.1, to terminate the fee interest of Grantee in the Property and/or any improvements to the Property and revest such fee title in the City and take possession of all or any portion of such real property and improvements, without compensation to Grantee, upon the occurrence of an Event of Default, as set forth in the Agreement, by Grantee following the Close of Escrow and prior to the issuance of a Certificate of Completion for the Project. The City shall not exercise such power of termination, if Grantee cures the Event of Default within the thirty (30) calendar day period set forth in this Section 4.1. 4.2 Process. The rights of the City under this Section 4 shall not defeat, render invalid or limit: (a) Any Permitted Security Instrument; or (b) Any leases, declarations of covenants, conditions and restrictions, easement agreements or other recorded documents or interests applicable to the Property and specifically authorized by the Agreement, or consented to in writing by the City. (c) Upon the City's exercise of its power of termination pursuant to this Section 4, Grantee shall convey fee title to the Property and all improvements on or to the Property to the City by grant deed, in accordance with Civil Code Section 1109, as such code section may hereafter be amended, renumbered, replaced or substituted. Such conveyance shall be duly acknowledged by Grantee and a notary public in a manner suitable for recordation. The City may enforce its rights pursuant to this Section 4 by means of an injunctive relief or forfeiture of title action filed in any court of competent jurisdiction. (d) Upon the revesting in the City of title to the Property, whether by grant deed or court decree, the City shall exercise its reasonable good faith efforts to resell the Property at the Property's then fair reuse value, as soon and in such manner as the City shall, in its sole discretion, find feasible and consistent with its objectives, to a qualified and responsible Person or Persons (as reasonably determined by the City) who will assume Grantee's obligations to begin and/or complete and/or operate the Project, or such other replacement development acceptable to the City, in its sole and absolute discretion, consistent with the City's objectives. Upon any such resale of all or a portion of the Property, the proceeds received by the City from such sale shall be applied, as follows: (i) First, to pay any and all amounts required to release/reconvey any Permitted Security Instrument recorded against the Property; and Exhibit "F' Form Of Deed G.6.a Packet Pg. 171 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) (ii) Second, to reimburse the City on its own behalf or on behalf of the City for all actual internal and Third Person costs and expenses incurred by the City or the City related to the Property, the Project, the Agreement, including customary and reasonable fees or salaries to Third Person consultants (including Legal Costs) in connection with the recapture, management or resale of all or any portion of the Property; all taxes, assessments and utility charges paid by the City and/or the City with respect to all or any portion of the Property; any payment made or necessary to be made to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations incurred by Grantee with respect to costs associated with the acquisition of the Property or the construction or installation of the Project; and amounts otherwise owing to the City by Grantee pursuant to the terms of the Agreement; and (iii) Third, to the extent that any proceeds from such resale are, thereafter, available, to reimburse Grantee, the amount of: (1) the pro-rata portion of the Purchase Price paid to the City; and (2) the pro-rata portion of the Third Person costs actually incurred and paid by Grantee regarding the development of the Project, including costs of carry, taxes, and other items as set forth in a cost certification to be made by Grantee to the City, prior to any such reimbursement and, which certification shall be subject to the City's reasonable approval; provided, however, that Grantee shall not be entitled to reimbursement for any expenses to the extent that such expenses relate to any loans, liens or other encumbrances that are paid by the City pursuant to the provisions of sub-sections (1) or (2), above; and (iv) Fourth, any portion of the proceeds from the resale of the Property remaining after the foregoing applications shall be retained by the City, as its sole and exclusive property. 5. No Discrimination or Segregation. Grantee covenants by and for itself and all Persons claiming under or through it that this Grant Deed is made and accepted upon and subject to the following conditions: 5.1 Standards. That there shall be no discrimination against or segregation of any Person or group of Persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Property nor shall Grantee or any Person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the Property. 5.2 Interpretation. Notwithstanding Section 5.1, with respect to familial status, Section 5.1 shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in Section 5.1 shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to Section 5.1. Exhibit "F' Form Of Deed G.6.a Packet Pg. 172 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 6. Covenants, Conditions and Restrictions Run with the Land of the Property. Regardless of classification or characterization, each of the covenants, conditions, restrictions and agreements contained in this Grant Deed touch and concern the Property and each of them is expressly declared to be for the benefit and in favor of the City for the entire period that such covenants, conditions, restrictions and/or agreements are in full force and effect, regardless of whether the City is or remains an owner of any land or interest in land to which such covenants relate. The City, in the event of any breach of any such covenants, conditions, restrictions and agreements, has the right to exercise all of the rights and remedies, and to maintain any actions at law or suits in equity or other proper proceedings, to enforce the curing of such breach, as provided in the Agreement, or by law. All such covenants, conditions, restrictions and agreements shall survive the issuance and recordation of each and every certificate of occupancy by the City, for the time period set forth in each covenant. 7. No Impairment of Liens. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage, deed of trust or other financing or security instmment permitted by the Agreement; provided, however, that any successor of Grantee to all or any portion of the Property shall be bound by such continuing covenants, conditions, restrictions, limitations and provisions, whether such successor's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. 8. Interpretation. It is the intent of the City in giving this Grant Deed that all of the covenants, conditions, restrictions and agreements set forth in this Grant Deed be given full force and effect in favor of the City, as the City would not have given this Grant Deed without such covenants, conditions, restrictions and agreements, and that each such covenant, condition, restriction and agreement should be classified or characterized in the manner necessary to its enforcement in favor of the City, regardless of any specific classification or characterization in this Grant Deed. 9. No Affect on Agreement. Nothing contained in this Grant Deed is intended to nor shall be deemed or constmed to modify or terminate any condition, covenant, restriction or agreement set forth in the Agreement; provided, however, that certain provisions of the Agreement cease to be effective on the recordation of a Certificate of Completion for the Project pursuant to the Agreement. 10. Costs and Attorneys' Fees for Enforcement Proceeding. If legal proceedings are initiated to enforce the rights, duties or obligations of any of the covenants set forth in this Grant Deed, then the prevailing party in such proceeding shall be entitled to collect its reasonable attorney fees and costs from the other party in addition to any other damages or relief obtained in such proceedings. [Signatures on following page] Exhibit "F' Form Of Deed G.6.a Packet Pg. 173 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) IN WITNESS WHEREOF, the City has caused this Grant Deed to be executed by its authorized representative(s) on this __ day of _____ _ ATTEST: By: ___________ _ City Clerk CITY: CITY OF GRAND TERRACE, a public body, corporate and politic By: ______________ _ Mayor Exhibit "F' Form Of Deed G.6.a Packet Pg. 174 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) ATTACHMENT A TO GRANT DEED City Property Legal Description The land referred to in this report is situated in the County of SAN BERNARDINO, State of California, and is described as follows: Parcel No. 7 of Parcel Map No. 3803, in the City of Grand Terrace, County of San Bernardino, State of California, as per Plat recorded in Book 49, of Parcel Maps, Page( s) 16 and 17, in the Office of the County Recorder of said County. Excepting therefrom, that portion of Parcel 7 of Parcel Map No. 3803, in the City of Grand Terrace, County of San Bernardino, State of California, as shown on Plat filed in Book 49, Pages 16 and 17 of Parcel Maps, records of said County lying Northeasterly of the following described line: Commencing at the Northwest comer of said Parcel; thence along the North line of said Parcel also being the South right of way line of Commerce Way (36.00 feet -half width), as shown on said plat, North 46° 04' 36" East, 54.82 feet to West right of way line of Michigan Street (44.00 feet -half width) as shown on said plat, and the Terminus of this description. APN: 1167-141-08-0000 Exhibit "F' Form of Deed G.6.a Packet Pg. 175 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXHIBIT "G" TO 2016 disposition and development agreement PROJECT SCOPE OF DEVELOPMENT Construction of a commercial building of approximately Ten Thousand (10,000) square feet with an estimated Seven Thousand (7 ,000) square feet to be used as an animal emergency hospital and the remaining Three Thousand (3,000) square feet to be used as rental space for professional, retail or other commercial tenants; construction of related improvements necessary for use and occupancy of such building including parking lot, driveways, curbs, etc. Exhibit "G" Project Scope Development G.6.a Packet Pg. 176 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXlllBIT "H" TO 2016 disposition and development agreement PROJECT SCHEDULE OF PERFORMANCE Secure Entitlements within one hundred fifty (150) days of Effective Date Commence Construction within thirty (30) days of close of escrow Obtain a Certificate of Occupancy by April 1, 2018 Obtain Certificate of Project Completion by April 30, 2018 Exhibit "H" Project Schedule G.6.a Packet Pg. 177 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXIIlBIT "I" TO 2016 disposition and development agreement NOTICE OF AGREEMENT [To be attached behind this cover page] Exhibit "I" Notice of Agreement G.6.a Packet Pg. 178 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Attn: City Manager APN 1167-141-08-0000 THIS SPACE FOR RECORDER'S USE ONLY EXEMPT FROM FILING FEES PURSUANT TO GOVERNMENT CODE SECTION 27383 CITY OF GRAND TERRACE Notice of Agreement Disposition and Development Agreement TO ALL INTERESTED PERSONS PLEASE TAKE NOTICE that as of September 27, 2016, the CITY OF GRAND TERRACE, a municipal corporation ("City"), and DR. TERRY MCDUFFEE, an individual ("Developer"), entered into an agreement entitled "Disposition and Development Agreement" (the "Agreement"). A copy of the Agreement is on file with the City Clerk of the City and is available for inspection and copying by interested persons as a public record of the City at the City's offices located at 22795 Barton Road, Grand Terrace, California 92313, during the regular business hours of the City. The Agreement affects the real property described in Attachment "A" attached to this Notice of Agreement (the "Property"). The meaning of defined terms, indicated by initial capitalization, used in this Notice of Agreement and not defined in this Notice of Agreement shall be the same as the meaning ascribed to such terms in the Agreement. PLEASE TAKE FURTHER NOTICE that the Agreement contains certain covenants nmning with the land of the Property and other agreements between Developer and the City affecting the Property, including, without limitation (all section references are to the Agreement): 5.1. Developer's Covenant to Develop the Project. Developer covenants to and for the express benefit of the City that Developer shall commence, pursue and complete the development of the Project, within the time period for each such action set forth in the Project Schedule of Performance. Developer covenants and agrees for itself, its successors and assigns that the Property shall be improved and developed with the Project, in conformity with the terms and conditions of this Agreement and all Exhibit "I" Notice of Agreement G.6.a Packet Pg. 179 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) applicable Laws and conditions of each Government. The covenants of this Section 5.1 shall run with the Property until the date of issuance of a Certificate of Completion for the Project. 9.3 Restrictions on Change in Management or Control of Developer, Assignment and Transfer. 9.3.1 Restrictions. Developer acknowledges and agrees that the qualifications and identity of Developer are of particular importance and concern to City. Developer further acknowledges and agrees that City has relied and is relying on the specific qualifications and identity of Developer in entering into this Agreement with Developer and that City would not have entered into this Agreement, but for the specific qualifications and identity of Developer. As a consequence, Transfers are permitted only as expressly provided in this Agreement. Developer represents to City that it has not made and agrees that it will not create or permit to be made or created, any Transfer, other than a Permitted Transfer, either voluntarily, involuntarily or by operation of Law, without the prior written approval of City, which may be given, withheld or conditioned in the sole and absolute discretion of City. Any Transfer made in contravention of this Section 9.3 shall be voidable at the election of City. Developer hereby acknowledges and agrees that the restrictions on Transfers set forth in this Section 9.3 are reasonable. 9.3.2 Delivery of Transfer Documents. All instruments and other legal documents proposed to effect any proposed Transfer shall be submitted to City for review, at least thirty-five (35) calendar days prior to the proposed date of the Transfer, and the written approval, disapproval or conditions of City regarding the proposed Transfer shall be provided to Developer, within thirty (30) calendar days following City's receipt of all proposed Transfer documents. Developer agrees to reimburse City for all costs and expenses incurred by City in connection with its review of each proposed Transfer, including all Legal Costs and other Third Person consultant fees and expenses. 9.18 No Discrimination or Segregation. Developer covenants by and for itself and all Persons claiming under or through it that this Agreement is made and accepted upon and subject to the following conditions: 9.18.1 Standards. That there shall be no discrimination against or segregation of any Person or group of Persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the Property nor shall Developer or any Person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the Property. 9.18.2 Interpretation. Notwithstanding Section 9.18.1, with respect to familial status, Section 9.18.l shall not be constmed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status, nothing in Section 9.18.1 shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of Exhibit "I" Notice of Agreement G.6.a Packet Pg. 180 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to Section 9.18.1. THIS NOTICE OF AGREEMENT is dated as of September 27, 2016, and has been signed on behalf of Developer and the City by and through the signatures of their authorized representative(s) set forth below. This Notice of Agreement may be executed in counterparts and when fully executed each counterpart shall be deemed to be one original instrument. [Signatures on following page] Exhibit "I" Notice of Agreement G.6.a Packet Pg. 181 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) SIGNATURE PAGE TO NOTICE OF AGREEMENT DISPOSITION AND DEVELOPMENT AGREEMENT CITY: CITY OF GRAND TERRACE, a municipal corporation By: ____________ _ Darcy McNaboe, Mayor Attest: By: ___________ ~ City Clerk APPROVED AS TO FORM: JONES & MA YER By: ____________ _ City Attorney DEVELOPER: DR. TERRY MCDUFFEE, an individual By: DR. TERRY MCDUFFEE, an individual APPROVED AS TO FORM: PECCORINI & PECCORINI By: ____________ _ Julie Peccorini [SIGNATURES OF PRINCIPALS MUST BE NOT ARY ACKNOWLEDGED] Exhibit "I'' Notice of Agreement G.6.a Packet Pg. 182 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) ATTACHMENT "A" TO NOTICE OF AGREEMENT DISPOSITION AND DEVELOPMENT AGREEMENT City Property Legal Description The land referred to in this report is situated in the County of SAN BERNARDINO, State of California, and is described as follows: Parcel No. 7 of Parcel Map No. 3803, in the City of Grand Terrace, County of San Bernardino, State of California, as per Plat recorded in Book 49, of Parcel Maps, Page(s) 16 and 17, in the Office of the County Recorder of said County. Excepting therefrom, that portion of Parcel 7 of Parcel Map No. 3803, in the City of Grand Terrace, County of San Bernardino, State of California, as shown on Plat filed in Book 49, Pages 16 and 17 of Parcel Maps, records of said County lying Northeasterly of the following described line: Commencing at the Northwest comer of said Parcel; thence along the North line of said Parcel also being the South right of way line of Commerce Way (36.00 feet -half width), as shown on said plat, North 46° 04' 36" East, 54.82 feet to West right of way line of Michigan Street (44.00 feet -half width) as shown on said plat, and the Terminus of this description. APN: 1167-141-08-0000 Exhibit "N" Notice of Agreement G.6.a Packet Pg. 183 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) EXHIBIT "J" TO 2016 disposition and development agreement CERTIFICATE OF CO:MPLETION [To be attached behind this cover page] Exhibit "J" Certificate of Completion G.6.a Packet Pg. 184 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) TABLE OF CONTENTS Page 1. DEFINITIONS .................................................................................................................. 1 1.1 Defined Terms ....................................................................................................... 1 2. TERMINATION OF NEGOTIATION AGREEMENT ................................................. 17 3. CONVEYANCE OF PROPERTY .................................................................................. 17 3.1 Escrow ................................................................................................................. 17 3.2 Payment of Purchase Price .................................................................................. 18 3.3 Eminent Domain .................................................................................................. 18 3 .4 Developer's Approval of Title to Property .......................................................... 18 3.5 Due Diligence Investigations ............................................................................... 20 3 .6 Delivery of Property Free of Tenants .................................................................. 21 3.7 Acceptance of Property "AS-IS." ........................................................................ 21 3.8 Assignment of Property Information and Approvals ........................................... 21 3.9 Developer to Obtain all Approvals for the Project .............................................. 22 3.10 City Not to Encumber .......................................................................................... 22 3 .11 Title Commitment Supplements .......................................................................... 23 4. JOINT ESCROW INSTRUCTIONS ............................................................................... 23 4.1 Opening of Escrow .............................................................................................. 23 4.2 Escrow Agent Authority ...................................................................................... 23 4.3 Developer's Conditions to Close of Escrow ........................................................ 24 4.4 City's Conditions to Close of Escrow ................................................................. 24 4.5 Developer's Escrow Deposits .............................................................................. 26 4.6 City's Escrow Deposits ........................................................................................ 27 4.7 Closing Procedure ................................................................................................ 27 4.8 Close of Escrow ................................................................................................... 28 4.9 Escrow Closing Costs, Taxes and Title Policy Premium .................................... 29 4.10 Escrow Cancellation Charges .............................................................................. 29 4.11 Escrow Cancellation ............................................................................................. 29 4.12 Escrow Notices .................................................................................................... 30 Exhibit "K" Developer Official Action G.6.a Packet Pg. 185 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) TABLE OF CONTENTS (continued) Page 5. PROJECT DEVELOPMENT .......................................................................................... 30 5.1 Developer's Covenant to Develop the Project.. ................................................... 30 5.2 Changes to Project Plans and Specifications During Course of Construction ......................................................................................................... 30 5.3 Construction Start and Completion of Project.. ................................................... 30 5.4 Compliance with Laws ........................................................................................ 31 5 .5 Project Schedule of Performance ......................................................................... 31 5.6 Developer Attendance at City Meetings .............................................................. 31 5.7 City Right to Inspect Project and Property .......................................................... 31 5.8 PREY AILING WAGES ...................................................................................... 32 5.9 Project Certificate of Completion ........................................................................ 33 6. INSURANCE .................................................................................................................. 34 6.1 Developer ............................................................................................................. 34 6.2 Nature of Insurance .............................................................................................. 34 6.3 Policy Requirements and Endorsements ............................................................. 34 7. FINANCING ................................................................................................................... 36 7 .1 Project Financing ................................................................................................. 36 7.2 Only Permitted Encumbrances ............................................................................ 37 7.3 City Right to Discharge Prohibited Encumbrances ............................................. 37 7.4 Rights of Lender and City Regarding Permitted Security Instruments ............... 38 8. REMEDIES AND INDEMNITY .................................................................................... 40 8.1 DEVELOPER'S RIGHT TO SPECIFIC PERFORMANCE AND LIMITATION ON RECOVERY OF DAMAGES PRIOR TO CLOSE OF ESCROW ............................................................................................................. 40 8.2 City Liquidated Damages .................................................................................... 42 8.3 City Power of Termination Regarding Property .................................................. 43 8.4 Legal Actions ....................................................................................................... 44 8.5 Rights and Remedies are Cumulative .................................................................. 44 8.6 Indemnification .................................................................................................... 44 8.7 Indemnification Procedures ................................................................................. 45 -iii- G.6.a Packet Pg. 186 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) TABLE OF CONTENTS (continued) Page 9. GENERAL PROVISIONS .............................................................................................. 46 9.1 Incorporation of Recitals ..................................................................................... 46 9.2 City Not a Party ................................................................................................... 46 9.3 Restrictions on Change in Management or Control of Developer, Assignment and Transfer ..................................................................................... 46 9.4 Developer Assumption of Risks of Legal Challenges ......................................... 46 9.5 City manager Implementation ............................................................................. 47 9.6 Notices, Demands and Communications Between the Parties ............................ 47 9.7 Warranty Against Payment of Consideration for Agreement.. ............................ 48 9.8 Relationship of Parties ......................................................................................... 49 9.9 Survival of Agreement. ........................................................................................ 49 9.10 Non-liability of Officials, Employees and Agents .............................................. 49 9.11 Calculation of Time Periods ................................................................................ 49 9.12 Principles of Interpretation .................................................................................. 49 9.13 Governing Law .................................................................................................... 50 9.14 Unavoidable Delay; Extension of Time of Performance ..................................... 50 9 .15 Inspection of B oaks and Records ........................................................................ 51 9.16 Real Estate Commissions .................................................................................... 51 9.17 Binding on Successors and Assigns .................................................................... 51 9.18 No Discrimination or Segregation ....................................................................... 51 9.19 No Other Representations or Warranties ............................................................. 52 9.20 Tax Consequences ............................................................................................... 52 9.21 No Third-Party Beneficiaries ............................................................................... 52 9.22 Execution in Counterparts ................................................................................... 52 9.23 Entire Agreement ................................................................................................. 52 9.24 Exhibits ................................................................................................................ 52 9.25 Execution of this Agreement ............................................................................... 53 9.26 Time Declared to be of the Essence ..................................................................... 53 9.27 No Waiver ............................................................................................................ 53 -iii- G.6.a Packet Pg. 187 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) TABLE OF CONTENTS (continued) Page 9.28 Facsimile Signatures ............................................................................................ 53 EXHIBIT "A" -CITY PROPERTY LEGAL DESCRIPTION .................................................... 1 EXHIBIT "B" -DEVELOPER PROPERTY LEGAL DESCRIPTION ...................................... 1 EXHIBIT "C" -FORM OF ESCROW AGENT CONSENT ....................................................... 1 EXHIBIT "D" -TOTAL PROJECT CONSTRUCTION COSTS ................................................ 1 EXHIBIT "E" -NOTICE OF OPTION TO PURCHASE REAL EST ATE ................................. 1 EXHIBIT "F' -FORM OF DEED ............................................................................................... 1 EXHIBIT "G" -PROJECT OF SCOPE OF DEVELOPMENT ................................................... 1 EXHIBIT "H" -PROJECT SCHEDULE OF PERFORMANCE ................................................ 1 EXHIBIT "I" -NOTICE OF AGREEMENT ............................................................................... 1 EXHIBIT "J" -CERTIFICATION OF COMPLETION .............................................................. 1 EXHIBIT "K" -DEVELOPER OFFICIAL ACTION ................................................................. 1 -iii- G.6.a Packet Pg. 188 At t a c h m e n t : A t t a c h m e n t I - D r . T e r r y M c D u f f e e D D A ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) G.6.b Packet Pg. 190 At t a c h m e n t : A t t a c h m e n t I I - M c D u f f e e P r o p e r t y ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 01247.0020/678447.7 1 AGREEMENT FOR ASSIGNMENT OF OPTION TO PURCHASE REAL PROPERTY THIS AGREEMENT FOR ASSIGNMENT OF OPTION TO PURCHASE REAL PROPERTY (“Agreement”) is made and entered into by CITY OF GRAND TERRACE, a municipal corporation (“City”) and DIBA REAL ESTATE INVESTMENTS LLC, a California limited liability company (“Assignee”), as of November __, 2020 (“ Agreement Date”). R E C I T A L S : A. Pursuant to that certain 2016 Disposition and Development Agreement dated September 27, 2017 (“DDA”) by and between City and Dr. Terry McDuffee (“Developer”), City sold certain real property to the Developer (“DDA Property”) for development of a commercial project (“Project”). Pursuant to DDA Section 3.12, Developer acknowledged that as material consideration for the sale of the DDA Property, Section 10 of the DDA granted City an option to purchase (“Option”) and Section 11 of the DDA granted City a right of first refusal (“RoFR”), with respect to the adjacent real property commonly described as 21893 Barton Road, Grand Terrace (APN 1167-121-01) legally described on Exhibit A (“Option Property”). B. In accordance with the DDA, that certain Notice of Option to Purchase Real Property dated September 27, 2016 was recorded on March 21, 2017, as Instrument No. 2017-0118658 in the Official Records of San Bernardino County against the Option Property (“Notice of Option”). The Notice of Option contained some of the applicable provisions of the Option and the RoFR. C. Developer completed the Project and City executed and recorded that certain Certificate of Completion pursuant to Section 5.9 which was recorded in the Official Records of San Bernardino. Pursuant to DDA Section 5.9.2, recordation of the Certificate was conclusive determination of satisfactory completion of the Project pursuant to the DDA. D. Pursuant to Section 10.7, the Option is specifically assignable by the City provided it is assigned by City and assumed by the assignee in writing with an executed copy delivered to Developer. E. The term of the Option commenced on August 20, 2020 which was the date that the freeway interchange was completed and terminates twelve (12) months thereafter being midnight on August 19, 2021 (“Option Term”). City formally notified Developer of the commencement date pursuant to that certain letter dated September 15, 2020 and delivered to Developer. F. City is agreeing to assign to Assignee, and Assignee is agreeing to assume from City, all of City’s right, title and interest in the Property under the Purchase Agreement, subject to the terms and conditions set forth below. NOW, THEREFORE, in reliance of the forgoing recitals, City agrees to assign the Option to Assignee and Assignee accepts and assumes the Option on the terms and conditions set forth below. AGREEMENT 1. Assignment and Assumption of Option. As of the Effective Date, City assigns the Option to Assignee and Assignee assumes the Option pursuant to the terms and conditions in this G.6.c Packet Pg. 191 At t a c h m e n t : A t t a c h m e n t I I I - O p t i o n A s s i g n m e n t A g r e e m e n t ( M c D u f f e e ) 1 ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 01247.0020/678447.7 2 Agreement. 2. Consideration for Assignment. Assignee agrees to pay to City the sum of Twenty-Five Thousand Dollars ($25,000) as consideration for the assignment of the Option (“Assignment Payment”). The Assignment Payment shall be returned to Assignee only if Assignee acquires the Option Property otherwise City shall retain the Assignment Payment as its property. In the event that Assignee is unable to acquire the Option Property for reasons solely caused by the Developer, City will return the Assignment Payment to Assignee provided Assignee (i) notifies City in writing providing reasonable details explaining the issues; (ii) requests the return of the Assignment Payment; and (iii) if requested by City, in its sole discretion, (a) provides all documents related to the Option or purchase and sale agreement (“PSA”), as applicable, and (b) if requested by City, in its sole discretion, assigns the Option or the PSA to City in a form acceptable to the City. 3. Effective Date. This Agreement shall be effective upon the last to occur of: (i) execution of two (2) copies of this Agreement by each party and delivery to the other party: (ii) execution of two (2) copies of the Notice of Assignment and Assumption by Assignee in the form of Exhibit B (“Assignment Notice”) and delivery to City; and (iii) Assignee delivers the Assignment Payment to the City. Promptly following the Effective Date, City shall deliver an executed copy the Assignment Notice to Developer. If Assignee does not deliver all the foregoing documents and funds on or before November 15, 2020, City shall have the right to terminate this Agreement upon written notice to the Assignee. 5. Disclosures. 5.1 Notice to Developer. Assignee is aware that the Developer has place the Option Property has been listed with brokers as available for ground leasing. On October 29, 2020 City sent a formal notice to Developer and his brokers that the Option remains in full force and effect and demanding that the listing be cancelled, the sign on the Option Property be removed and that Developer not execute a ground lease. 5.2 Option Property. City has delivered to Assignee copies of all of the following (“Property Disclosures”): (i) a copy of the certain appraisal dated as of September 21, 2020 issued by CBRE; (ii) a preliminary title report for the Option Property issued by Fidelity National Title Insurance Company Order No. 30053428-MAM as of September 9, 2020; and (iii) a complete copy of the DDA and Notice of Option. 5.3 No Assurances. (a) Appraisal. City has not made and does not make any assurances to Assignee that the Developer will agree to accept the Appraisal as the fair market value of the Option Property nor that Developer will comply with the terms of the Option. (b) Condition of Option Property. City has not provided any assurances to Assignee as to the physical condition of the Option Property, including, but not limited to, soils, contamination, etc. (c) Development. As a public agency, City cannot and has not made any assurances or commitments to Assignee regarding the development of the Option Property. 6. No Further Assignment of Option. After the Effective Date, Assignee may not assign the Option or this Agreement to any third party. If Assignee does not exercise the Option on or before July 1, 2021, Assignee will promptly assign the Option to City in a form reasonably acceptable to G.6.c Packet Pg. 192 At t a c h m e n t : A t t a c h m e n t I I I - O p t i o n A s s i g n m e n t A g r e e m e n t ( M c D u f f e e ) 1 ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 01247.0020/678447.7 3 City. Furthermore, if Assignee exercises the Option, Assignee may not assign the purchase and sale agreement to any third party without the prior written consent of City. 7. Representations and Warranties by City. As of the Agreement Date and the Effective Date, City represents and warrants to Assignee each of the following are true and correct: (a) City has not exercised the Option; (b) To the best of City’s knowledge and understanding, the Option is in full force and effect and has not been amended; (c) City has not received any notice under DDA Section 11 and has not exercised the RofFR; (d) All obligations of Developer (excluding the Option and RofFR) under the DDA have been completed satisfactorily as evidenced by the Certificate of Completion; (e) City is not in default under the DDA and has not received any notice of an alleged default by Developer; and (f) To the best of City’s knowledge, no broker is involved with the Option and no commission will be due or payable by Assignee as option holder upon exercise of the Option. 8. Representations and Warranties by Assignee. As of the Agreement Date and the Effective Date, City represents and warrants to Assignee each of the following are true and correct: (a) City is duly organized and legally existing under the laws of the State of California; (b) The execution and delivery by City of, and City’s performance under, this Agreement and the instruments and documents referenced herein are within City’s powers and have been duly authorized by all requisite corporate action; and (c) The person executing this Agreement and the instruments and documents referenced herein on behalf of City has the authority to do so. 9. Covenants. 9.1 City Covenants. City covenants to cooperate with Assignee with respect to any documents required to effect the exercise of the Option provided such cooperation shall be at no cost or expense to City nor create any liability to the City. 9.2 Assignee Covenants. Assignee covenants to City that it will promptly exercise the Option, cooperate with Developer to proceed to confirm the purchase price, execute a purchase and sale agreement and close the transaction as expeditiously as practical. Assignee agrees to keep the City informed as to the status of the Option and the acquisition of the Option Property and will respond to City’s inquiries. If, for any reason, Assignee elects to not exercise the Option or upon exercise, elects not to complete the purchase, Assignee will advise the City in writing and upon City’s request will assign the respective document to City. 10. Attorney Fees and Costs; Venue. In the event either party files a suit in connection with this Agreement or any provisions contained herein, then the party which prevails in such action shall be entitled to recover, in addition to all other remedies or damages, reasonable attorneys’ fees G.6.c Packet Pg. 193 At t a c h m e n t : A t t a c h m e n t I I I - O p t i o n A s s i g n m e n t A g r e e m e n t ( M c D u f f e e ) 1 ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 01247.0020/678447.7 4 and costs of court incurred in such suit. The venue for any legal action shall be in San Bernardino County Superior Court. 11. Counterpart Execution; Electronic Signatures. This Agreement may be executed in any number of counterparts with the same effect as if the parties hereto had signed the same document. All counterparts will be construed together and shall constitute an agreement. Signatures transmitted electronically in accordance with ESign and UETA shall have the same effect as original signatures. 12. Notices. Any notice which either party may desire to give to the other party or to the Escrow Holder must be in writing and may be given by personal delivery which will be deemed received the following day or by mailing the same by registered or certified mail, return receipt requested which will be deemed delivered three (3) days after depositing same in the mail, addressed to the party to whom the notice is directed as set forth below, or such other address and to such other persons as the parties may hereafter designate: To City: CITY OF GRAND TERRACE 22795 Barton Rd. Grand Terrace, CA 92313 Attention: City Manager With a Copy to: Aleshire & Wynder, LLP 18881 Von Karman Avenue, Suite 1700 Irvine, CA 92612 Attention: Adrian Guerra, City Attorney To Assignee: DIBA REAL ESTATE INVESTMENTS LLC 28008 Harrison Park Way Valencia, CA 91355 Michael Banayan, Manager Daniel Safavi, Manager With a Copy to: ______________________ ______________________ ______________________ 13. Construction. The parties acknowledge and agree that each has participated in the drafting and negotiation of this Agreement and accordingly in the event of a dispute among the parties hereto with respect to the interpretation or enforcement hereof, no provision shall be construed so as to favor or disfavor either party. 14. Successors and Assigns. Subject to the provisions of Section 6 of this Agreement, all of the provisions of this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the parties. 15. Survival. Any provision of this Agreement which is applicable for the period after the Effective Date whether expressly stated or not, shall survive the Effective Date until such provision under its terms no longer applies. 16. Time. Time is of the essence in the performance each and every obligation of this Agreement. G.6.c Packet Pg. 194 At t a c h m e n t : A t t a c h m e n t I I I - O p t i o n A s s i g n m e n t A g r e e m e n t ( M c D u f f e e ) 1 ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 01247.0020/678447.7 5 17. Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. 18. No Third Party Beneficiaries. This Agreement is only between the parties, and is not intended to be nor shall it be construed as being for the benefit of any third party. 19. Execution in Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart 20. Exhibits. Exhibits A and B attached hereto are incorporated herein by reference. IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates below. ASSIGNEE: CITY: DIBA REAL ESTATE INVESTMENTS LLC, a California limited liability company By: _______________________ Michael Banayan, Manager By: _______________________ Daniel Safavi, Manager CITY OF GRAND TERRACE, a municipal corporation By: _____________________________ Darcy McNaboe, Mayor _________________, 2020 ATTEST: _____________________________ Debra Thomas, City Clerk APPROVED AS TO FORM: Aleshire & Wynder, LLP By: ___________________________ Adrian R. Guerra, City Attorney G.6.c Packet Pg. 195 At t a c h m e n t : A t t a c h m e n t I I I - O p t i o n A s s i g n m e n t A g r e e m e n t ( M c D u f f e e ) 1 ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 01247.0020/678447.7 1 EXHIBIT A LEGAL DESCRIPTION OF OPTION PROPERTY That certain real property in the City of Grand Terrace, County of San Bernardino, State of California, legally described as follows: G.6.c Packet Pg. 196 At t a c h m e n t : A t t a c h m e n t I I I - O p t i o n A s s i g n m e n t A g r e e m e n t ( M c D u f f e e ) 1 ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) 01247.0020/678447.7 1 EXHIBIT B ASSIGNMENT NOTICE City Letterhead _________________, 2020 VIA FEDERAL EXPRESS & US. MAIL, CERTIFIED, RETURN RECEIPT REQUESTED Dr. Terry McDuffee 925 Carob Street Redlands, CA 92373 Julie Peccorini Peccorini & Peccorini 1835 Business Center Dr. Suite 103 San Bernardino, CA 92408-3447 Re: Notice of Assignment of Option to Purchase APN 1167-121-01 (Property) Dear Dr. McDuffee: Notice is hereby given that pursuant to Section 10.7 of the 2016 Disposition and Development Agreement dated September 27, 2017 between you and the City of Grand Terrace (“City”), the City has assigned the option to purchase the Property (“Option”) to DIBA REAL ESTATE INVESTMENTS LLC, a California limited liability company (“Assignee”) and Assignee has assumed all obligations under the Option. Any notices to Assignee should be sent as follows: DIBA REAL ESTATE INVESTMENTS LLC 28008 Harrison Park Way Valencia, CA 91355 Michael Banayan, Manager Daniel Safavi, Manager ASSIGNEE: CITY: DIBA REAL ESTATE INVESTMENTS LLC, a California limited liability company By: _______________________ Michael Banayan, Manager By: _______________________ Daniel Safavieh, Manager CITY OF GRAND TERRACE, a municipal corporation By: _____________________________ Darcy McNaboe, Mayor ATTEST: _____________________________ Debra Thomas, City Clerk cc: Adrian Guerra (City Attorney) Harold Duffy (City Manager) G.6.c Packet Pg. 197 At t a c h m e n t : A t t a c h m e n t I I I - O p t i o n A s s i g n m e n t A g r e e m e n t ( M c D u f f e e ) 1 ( D I B A R e a l E s t a t e I n v e s t m e n t s f o r A s s i g n m e n t o f O p t i o n t o P u r c h a s e ) AGENDA REPORT MEETING DATE: November 10, 2020 Council Item TITLE: Appropriation of San Bernardino County CARES Act Infrastructure Funding (Incl. City Match) for City Hall/Library HVAC Improvements & Replacement PRESENTED BY: Cynthia Fortune, Assistant City Manager RECOMMENDATION: 1. Approve the revenue and expense appropriations in the amount of $267,700 respectively (includes City’s matching funds), for the City’s approved San Bernardino County CARES ACT Coronavirus Relief Funds Infrastructure Project (City Hall/Library HVAC Improvements & Replacement); and 2. Approve the appropriation of $60,425 from the Facilities Development Impact Fees (DIF) Fund to be used as part of the City’s matching funds for the above-mentioned project (the above-mentioned $267,700 includes this appropriation of $60,425). 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability through ensuring appropriate cost recovery, specially for COVID-19 related expenditures, and Goal #2, Maintaining Public Safety by investing in critical improvements to infrastructure and maintaining the health and well-being of City employees and those that visit City Hall. BACKGROUND: The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, provides emergency assistance and health care response for individuals, families and businesses affected by the COVID-19 pandemic. The CARES Act created the Coronavirus Relief Fund (CRF) which provides a total of $150 billion in federal fiscal support for state and local governments for the purpose of responding to the COVID-19 pandemic. On April 22, 2020, California was allocated $15.3 billion in CRF funds, $9 billion going to the State of California, with the remaining funds distributed directly to qualifying counties and cities. On July 28, 2020, the City accepted its allocation of $153,425 from the State, designating these funds for personal protective equipment, and programs aimed to G.7 Packet Pg. 198 provide aid to businesses that suffered as a result of the COVID-19 pandemic. On September 29, 2020, the San Bernardino County Board of Supervisors, approved to distribute a portion ($23.2 million of their $380 million received) of their CRF funds to cities in the same way the State distributed CRF funds to local jurisdictions. The City was designated a second allocation of $153,425 from the County and will be using these funds to support youth, senior, community art and culture programs, and City Hall infrastructure improvements. On October 27, 2020, City Council authorized staff recommended programs and activities for this 2nd CARES Act funding allocation, which included a City Hall Safety and Security Program. DISCUSSION: In addition to the approved allocations mentioned earlier, the County Board of Supervisors set aside $25 million in CRF funding to allocate to cities and towns for infrastructure projects (Attachment 1 – Notice of Funding Availability). Funding received for eligible infrastructure projects requires a one-to-one ($1:$1) cash match from the City. The notice further states that funding directly allocated to Cities/Towns (the $23.2 million allocation) may be used as the match for the infrastructure project program. The City submitted a Scope of Expenditures application (Attachment 2) for improvements on City Hall/Library’s existing Heating, Ventilation, and Air Conditioning (HVAC) system in the amount of $267,700 (HVAC Infrastructure Project). Improvements to the City Hall/Library’s HVAC system will: • Provide safety and improved indoor air quality as a result of the heightened risk of COVID-19 transmission specific to air pathogens; and • Improved safety controls and equipment for new filtration and ultraviolet light treatment for airborne disinfection and inactivating bacterial and fungal organisms. In addition, the City’s application, as required by the County, states that the above project complies with Section 5001(d) of the CARES Act that the CRF funds may only be used to fund costs that: 1. are necessary expenditures incurred due to the public health emergency with respect to COVID-19; 2. were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or local government; and 3. were incurred during the period that begins March 1, 2020 and ends December 30, 2020. The City received a Notice of Eligible Projects (Attachment 3) from the County, G.7 Packet Pg. 199 approving the HVAC Infrastructure Project and authorizing the City to proceed with the project. Due to the time constraints imposed by the County’s Notice of Funding Availability, pursuant to Sections 5(a) and 5(b) of Resolution 2020-05 (Attachment 4), the City Manager is authorized to carry out the following activity: “SECTION 5. In addition to the powers, functions, and duties already prescribed above, the Council desires to make clear the powers, functions, and duties include: (a) As necessary for the public health, life, and property, entering into contracts to arrange for the procurement of materials, goods, and services needed to assist in preparing for, containing, responding to, mitigating the effects of, and recovering from the spread of COVID-19. (b) Applicable provisions of the Government Code and the Public Contract Code, including but not limited to travel, advertising, and competitive bidding requirements, as well as any City procurement or related policy, are suspended to the extent reasonably necessary to address the effects of COVID-19.” Because Honeywell purchased and installed City Hall/Library’s current HVAC system, the City Manager sought and received a proposal from Honeywell (Attachment 5) to purchase and install the improvements to the City’s HVAC system. As authorized by Resolution 2020-05, the City Manager will be executing a purchase order for Honeywell for the above-mentioned infrastructure project in the amount of $267,700. As mentioned earlier, part of the City’s CARES Act funding received from the County in the amount of $153,425 will be used as part of the City match. The City is revising its program allocation as follows: Table 1 Approved Programs Submitted to City Council 10/27/2020 Proposed Adjustments Revised 11/10/2020 1 Community Youth Sports Protection Prgm $20,000 $0 $20,000 2 Senior Center Virtual Participation Prgm $40,000 ($10,000) $30,000 3 Community Art and Culture Grants $10,000 $0 $10,000 4 City Hall Safety and Security Program $60,425 $13,000 $73,425 5 Wi-Fi Expansion in Public Places $23,000 ($3,000) $20,000 TOTAL $153,425 $0 $153,425 The City is required to provide a $1:$1 match as stated in the Notice of Funding Availability. As such, City staff is recommending that $60,425 in development impact fees from the City’s Facilities Fund (Fund 19) be used complete the City’s match for the infrastructure project. Based on the above recommendation, funding sources, including the City’s match, for G.7 Packet Pg. 200 the infrastructure project will be as follows: Table 2 City Infrastructure project $267,700 City Match: 1. County CARES Act Funding (Table 1) $73,425 2. Development Impact Fees (DIF) Facilities $60,425 $133,850 County Infrastructure CARES Act Funding $133,850 $267,700 FISCAL IMPACT: Staff is recommending that City Council approve the following appropriations and transfers to fund the City Hall Infrastructure Project: Table 3 – Revenue and Expense Appropriations for Infrastructure Project Fund Description Amount REVENUES Fund 93 – COVID-19 SB County Infrastructure Allocation SB County Match (93-300-01) $133,850 Transfers In from SB County COVID Allocation Fund 91 (93-800-91) $73,425 Transfers In from Facilities Development Impact Fees (DIF) Fund 19 (93-800-19) $60,425 TOTAL REVENUES $267,700 EXPENDITURES Fund 93 City Hall Infrastructure Improvements (93- 190-701-000) $267,700 TOTAL EXPENDITURES $267,700 Table 4 – Transfer of DIF Funds to the Infrastructure Project Fund Description Amount Fund 19 – Facilities DIF Fund Estimated Fund Balance, June 30, 2020 $392,714 EXPENSE APPROPRIATION Fund 19 – Facilities DIF Fund Transfers Out to Fund 93 (19-999-999- 093) ($60,425) Ending Fund Balance $332,289 ATTACHMENTS: • Attachment 1 SB County Notice of Funding Availability (PDF) • Attachment 2 Scope of Expenditures Application (PDF) G.7 Packet Pg. 201 • Attachment 3 SB County approval for project (PDF) • Attachment 4 Resolution 2020-05 (PDF) • Attachment 5 Honeywell Proposal (PDF) APPROVALS: Cynthia A. Fortune Completed 11/05/2020 5:27 PM Finance Completed 11/05/2020 5:27 PM City Attorney Completed 11/05/2020 7:17 PM City Manager Completed 11/05/2020 7:27 PM City Council Pending 11/10/2020 6:00 PM G.7 Packet Pg. 202 NOTICE OF FUNDING AVAILABILITY (NOF A) COUNTY OF SAN BERNARDINO CARES ACT CORONA VIRUS RELIEF FUND FOR CITIES AND TOWNS This correspondence contains important time sensitive information regarding completion of the CARES Act Coronavirus Relief Fund (CRF) for CITIES and TOWNS Application. The CARES Act Coronavirus Relief Fund (CRF) for CITIES and TOWNS Notice of Funding Availability (NOFA) is hereby released to Cities and Towns within San Bernardino County on Thursday, October 15, 2020. The CARES Act, signed into law on March 27, 2020, created the CRF, which provides a total of $150.0 billion in federal fiscal support for state and local governments for the purpose of responding to the Coronavirus Disease 2019 (COVID-19) pandemic. Section 5001(d) of the CARES Act provides the eligible purposes for which CRF allocations may be used. Specifically, the CARES Act provides that CRF may only be used to fund costs that - 1. are necessary expenditures incurred due to the public health emergency with respect to the Coronavirus Disease 2019 (COVID-19); 2. were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act) for the State or local government; and 3. were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. For purposes of this project, "incurred" means goods and or services received by December 30, 2020. On September 29, 2020, the San Bernardino County Board of Supervisors set-aside $25.0 million in CARES Act funding to allocate to cities and towns for infrastructure projects. All proposed infrastructure projects must meet CARES Act eligibility requirements as determined by guidance provided by the US Treasury. Funding received for eligible infrastructure projects requires a one-to-one ($1 :$1) cash match from the Cityffown. For example, if a $100,000 project is proposed, the Cityffown will be eligible to receive up to a $50,000 reimbursement from the County. Funding directly allocated to Citiesffowns under the County's $23.2 million allocation for expenses incurred while responding to the Pandemic may be used as the match for infrastructure project program. Proposed Project $100,000 Cityffown Funded Cash Match $50,000 County Funding (CARES Act) $50,000 This $25.0 million in funding has been broken into two allocation components: • Up to $23.2 million in infrastructure project funding will be made available to each city based on its share of the population, which will equal the amounts provided under the "city allocation" funding distribution. • Up to $1 .8 million in additional funding above the base allocations will be available to cities that submit joint infrastructure projects with neighboring cities that focus on a regional approach to addressing challenges faced by the pandemic. (If $1.8 million in joint infrastructure projects cannot be identified, the remaining unspent amount will revert back to the proportionate share based on population on November 6, 2020). ATTACHMENT 1 G.7.a Packet Pg. 203 At t a c h m e n t : A t t a c h m e n t 1 S B C o u n t y N o t i c e o f F u n d i n g A v a i l a b i l i t y ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) Proposals should be submitted electronically and include the following: • Completed Exhibit A-Project Application Form (attached to this NOFA). o Examples of Exhibits are included as an attachment to this email. o Examples of Infrastructure projects are included as an additional attachment to this email. • Any documentation to demonstrate costs that have already been incurred, or a spending plan to demonstrate that costs will be incurred before December 30, 2020. CARES Act CRF NOFA Timeline and Deadlines Important milestones and deadlines within the application process are as follows: • Availability of applications is October 15, 2020 • Deadline to submit applications via email is October 26, 2020 by 4:00 PM. Any late applications will be held for review only if funds remain after review/funding of applications that were submitted prior to deadline. • The County will evaluate and notify Cities/Towns of eligible applications the week of October 26, 2020. • The County will notify Cities/Towns of approved funding and final allocations by November 6, 2020. • Acceptance of funding will require the City/Town to enter into a contract for reimbursement with the County of San Bernardino (template attached for reference). Reporting deadlines per the agreement: o November30,2020 o any other subsequent report as requested by the County Please read the template agreement carefully for detailed eligibility of the funding, requirements, reimbursement, compliance, and certifications. Please note that all infrastructure project proposals MUST meet the CARES Act Fund Program criteria and must be submitted during time of application to be considered. Upon approval of a proposed project, the County will engage the City/Town to complete the necessary contract documents. Late applications will only be reviewed if funding remains after review of applications received prior to deadline. An example of a completed Exhibit A is provided for your reference (PDF Attached entitled: EXAMPLE-EXHIBIT A TO CARES ACT FUNDING AGREEMENT FINAL). Additional guidance from the US Treasury can be found here: https://home.treasurv.gov/policy-issues/cares/state-and-local-governments Page 2 of3 G.7.a Packet Pg. 204 At t a c h m e n t : A t t a c h m e n t 1 S B C o u n t y N o t i c e o f F u n d i n g A v a i l a b i l i t y ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) Should you have any questions regarding this CARES ACT CRF for CITIES and TOWNS application process, please contact Monique Amis, Administrative Analyst, at (909) 387-4883 or by email at Moniq ue.Amis@cao. sbcounty. gov. Respectfully, County of San Bernardino CARES Act Coronavirus Relief Fund for CITIES and TOWNS County Administrative Office Phone: 909-387-5423 Fax: 909-387-4883 385 North Arrowhead Ave., 4th Floor San Bernardino, CA 92415-0043 Our job is to create a county in which those who reside and invest can prosper and achieve well-being. www.SBCountv.gov County of San Bernardino Confidentiality Notice: This communication contains confidential information sent solely for the use of the intended recipient. If you are not the intended recipient of this communication, you are not authorized to use it in any manner, except to immediately destroy it and notify the sender. Page 3 of 3 G.7.a Packet Pg. 205 At t a c h m e n t : A t t a c h m e n t 1 S B C o u n t y N o t i c e o f F u n d i n g A v a i l a b i l i t y ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) ATTACHMENT 2 Scope of Expenditures 1.The following scope of expenditures improves Indoor Air Quality and Security in response to the current COVID-19 pandemic: •Analysis of Air Quality at the County of San Bernardino Library in Grand Terrace and City of Grand Terrace City Hall: City Hall and the San Bernardino County library provide essential services to the citizens of Grand Terrace that support many local service, religious and business groups. The City of Grand Terrace and San Bernardino County Library share the same building and Heating, ventilation, and air conditioning (HVAC) integrated system where the library is a hub for children, teen and adult education programs and activities and City Hall is a hub for essential City personnel, including elected City officials and City staff for City operations. Because of the heightened risk of COVID-19 transmission specific to air pathogens and the health effects related to air quality, a review of the City’s current building plans and inspection of HVAC system was conducted. Based on a review of the building plans and HVAC system the following improvements were recommended to ensure greater safeguards and improved indoor air quality in response to the COVID-19 pandemic: •Safety and Improved Indoor Air Quality Technological improvements to enhance safety and wellness within City Hall and the County library. A new Building Automation System (BAS) will put in new and updated controls of the HVAC system equipment to achieve critical air quality parameters like zone and air temperature and humidity. Building studies have determined certain ranges of humidity and temperature mixture is known to decrease occupant exposure and reduce viral transmission. The system monitors, alarms and reports environmental conditions for early detection and immediate resolution as needed. The same BAS management system software integrates with security to achieve Grand Terrace’s strategy to minimize touch at access points minimizing contamination. This can help manage people access and flow and proactively protect property. Access control reporting capable for contact tracing of affected parties. The current HVAC system lacks the necessary hardware and software capable to monitor and provide reliable information and safety controls in relation to indoor air quality and contact tracing. The City requires new HVAC equipment to support the improved safety controls and equipment for new filtration and Ultraviolet Light treatment. City Hall must invest in a new G.7.b Packet Pg. 206 At t a c h m e n t : A t t a c h m e n t 2 S c o p e o f E x p e n d i t u r e s A p p l i c a t i o n ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) 40-Ton roof top unit. Assessment results established compressors shut down on the safety resulting in degradation of 50 percent of designed cooling capacity to the areas it serves that include the first-floor administrative offices, common areas, community room and library. The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) median lifespan for HVAC equipment is 15 years and the current unit is 14 years old. Statistics have shown that the right temperature can improve health as well as confidence and productivity. Additionally, the unit uses Refrigerant 22, a greenhouse gas that contributes to the depletion of the Earth’s ozone layer and global warming. R22 is completely phased out as of January 1, 2020. Neither new or imported R-22 is allowed in the U.S. postdate. Servicing the unit allows only recycled, reclaimed, or previously produced R22. Drop-in refrigerants can be used in place of R22, but result in decreased reliability and performance, of a unit already underperforming at only 78 percent. Separate from R22 and the challenges of adequately cooling supply air, enhancements of Ultraviolet light for coil surface and airborne disinfection for inactivating bacterial and fungal organisms so they are less likely to replicate and potentially cause disease. And the replacement of existing HVAC air filtration to MERV 13 in duct filters. ASHRAE currently recommends using a minimum MERV 13 filter, which is at least 85% efficient at capturing particles in 1 micrometer (µm) to 3 µm size range. • Compliance with Industry Standards The recommended system complies with ASHRAE industry guidance and standards. ASHRAE industry guidance statement concludes “Ventilation and filtration provided by heating, ventilating and air-conditioning systems can reduce the airborne concentration of SARS-CoV- 2 and thus the risk of transmission through the air. Unconditioned spaces can cause thermal stress to people that may be directly life threatening and that may also lower resistance to infection. In general, disabling of heating, ventilating and air-conditioning systems is not a recommended measure to reduce the transmission of the virus.” The above projects will enable the City of Grand Terrace in response to COVID-19 to Investment in a new RTU, environmental controls and improve indoor air quality measures, implement controlled people pathways to minimize contamination related to COVID-19 to protect the health and safety of its employees and citizens that work in or rely on the services of City Hall and the Library. The use of CARES Act funds for these projects is permissible as the costs for the City of Grand Terrace: • are necessary expenditures incurred due to the public health emergency with respect to COVID-19; • were not accounted for in the budget most recently approved as of March 27, 2020 (the date of enactment of the CARES Act); and • were incurred during the period that begins March 1, 2020 and ends December 30, 2020 2. Not-to-exceed amount of expenditures described in 1, above, incurred and paid during the period of March 1, 2020 through December 30, 2020 is $267,700. G.7.b Packet Pg. 207 At t a c h m e n t : A t t a c h m e n t 2 S c o p e o f E x p e n d i t u r e s A p p l i c a t i o n ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) 3. Test a. Is the expense connected to the current COVID-19 emergency and, if yes, how? The need for compliance with industry standards to improve safety and indoor air quality as it relates to Air Borne pathogens is an immediate funding need related to COVID-19. All facility designs should follow the latest practice standards, including but not limited to American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)* Standard 55 for thermal conditions (ASHRAE 2013a); ventilation Standards 62.1 (ASHRAE 2013b), 62.2 (ASHRAE 2013c) commissioning, maintenance, and proper operation of buildings, and, in particular, systems intended to control airborne infectious disease, are necessary for buildings and systems to be effective. Building designers, owners, and operators should give high priority to enhancing well designed, installed, commissioned, and maintained HVAC systems with supplemental filtration, Ultraviolet and, in some cases, to additional or more effective ventilation to the breathing zone. b. Is the expense necessary due to the COVID-19 emergency and, if yes, how? The HVAC systems play a vital role in the protentional spread and transmission of airborne viruses. A relatively easy way to reduce protentional indoor virus particles is by increasing the level of air filtration. Ultraviolet germicidal irradiation (UVGI), and humidity control are effective strategies for reducing the risk of dissemination of infectious aerosols in buildings and transportation environments. Without proper air flow and filtration, the likelihood of transmission of airborne viruses through aerosols increases. Therefore, replacing the existing HVAC system, addressing existing filtration issues and adding anti-virus defense mechanism such as Ultra-Violet lighting can provide an opportunity to mitigate the spread and transmission of airborne viruses. c. If the expense includes meeting payroll expenses for public safety, public health, health care, human services and similar employees, are these services substantially dedicated to mitigating or responding to the COVID-19 public health emergency and, if yes, how? N/A d. Is the expense filling a short fall in government revenues? No e. Is the expense funded through another budget line item, allotment of allocation, as of March 27, 2020 No G.7.b Packet Pg. 208 At t a c h m e n t : A t t a c h m e n t 2 S c o p e o f E x p e n d i t u r e s A p p l i c a t i o n ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) f. True or false: The expense would not exist without COVID-19 OR would be for a substantially different purpose. True. Indoor air quality and health is now more crucial than ever due to the exposure and magnitude of COVID-19. More studies are being released containing the effects indoor air quality can have at preventing transmission of viruses and disease as well as improve the safety, health, and well-being of visitors and occupants. g. The CARES Act Coronavirus Relief Fund is considered as federal financial assistance under the Single Audit Act is subject to 2 (Code of Federal Regulations) CFR Part 200, including but not limited to 2 CFR 200.303 (internal control), 200.330 thru 2000.332 (subrecipient monitoring and management), and subpart F (audit). Does your agency have adequate policies and procedures in place to follow the requirements of 2 CFR Part 200 as prescribed by the Office of Management and Budget (OMB)? Yes G.7.b Packet Pg. 209 At t a c h m e n t : A t t a c h m e n t 2 S c o p e o f E x p e n d i t u r e s A p p l i c a t i o n ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) ATTACHMENT 3 G.7.c Packet Pg. 210 At t a c h m e n t : A t t a c h m e n t 3 S B C o u n t y a p p r o v a l f o r p r o j e c t ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) G.7.c Packet Pg. 211 At t a c h m e n t : A t t a c h m e n t 3 S B C o u n t y a p p r o v a l f o r p r o j e c t ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) G.7.c Packet Pg. 212 At t a c h m e n t : A t t a c h m e n t 3 S B C o u n t y a p p r o v a l f o r p r o j e c t ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) G.7.c Packet Pg. 213 At t a c h m e n t : A t t a c h m e n t 3 S B C o u n t y a p p r o v a l f o r p r o j e c t ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) G.7.c Packet Pg. 214 At t a c h m e n t : A t t a c h m e n t 3 S B C o u n t y a p p r o v a l f o r p r o j e c t ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) RESOLUTION NO. 2020-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RA Tl FYI NG, DECLARING AND PROCLAIMING A LOCAL EMERGENCY IN RESPONSE TO COVID-19 WHEREAS, in December 2019, an outbreak of respiratory illness due to a novel coronavirus (COVID-19) was first identified in Wuhan City, Hubie Province, China; and WHEREAS, the Center for Disease Control and Prevention (CDC) considers COVID-19 to be a very serious public health threat with outcomes ranging from very mild (including some with no reported symptoms) to severe, including illness resulting in death; and WHEREAS, according to the CDC, there is no vaccine to prevent COVID-19 and there is no specific antiviral treatment recommended for COVID-19 at this time; and WHEREAS, on January 30, 2020, the World Health Organization declared a Public Health Emergency of International Concern over the global spread of COVID-19; and WHEREAS, on January 31, 2020, Health and Human Services declared a Public Health Emergency for the United States to aid the nation's healthcare community in responding to COVID-19; and WHEREAS, the California Department of Public Health (CDPH) has activated its Medical and Health Coordination Center, and the Office of Emergency Services recently activated the State Operations Center to provide support and guide actions to preserve public health; and WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a State of Emergency for the State of California; and WHEREAS, on March 11, 2020, the World Health Organization characterized COVID-19 as a "pandemic"; and WHEREAS, on March 12, 2020, Governor Newsom issued Executive Order N-25- 20 regarding COVID-19; and WHEREAS, on March 12, 2020, the San Bernardino County Health Official issued an order related to COVID-19, which was subsequently revised by their March 16, 2020, order (see below); and WHEREAS, on March 13, 2020, President Trump declared a National State of Emergency in response to increased spread of COVID-19; and WHEREAS, on March 16, 2020, Governor Newsom issued Executive Order N-28- 20 regarding COVID-19; and ATTACHMENT 4 G.7.d Packet Pg. 215 At t a c h m e n t : A t t a c h m e n t 4 R e s o l u t i o n 2 0 2 0 - 0 5 ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) WHEREAS, on March 17, 2020, the San Bernardino County Health Official issued an order cancelling all meetings; and WHEREAS, there are no known cases of COVID-19 within the City of Grand Terrace, but COVID-19 is easily transmissible from person to person and as of March 17, 2020, has spread globally to over 151 countries and territories, has infected more than 179,000 individuals and killed more than 7,000 individuals per the World Health Organization; and WHEREAS, it is imperative to prepare for and respond to suspected or confirmed COVID-19 cases within the City, and to prepare to respond to an increasing number or individuals who may require medical care; and WHEREAS, strict compliance with certain Municipal Code and other City regulations would prevent, hinder, or delay appropriate actions to prevent and mitigate the effects of the COVID-19, which issue cannot be timely addressed absent a declaration of emergency; and WHEREAS, per Government Code Section 8630 a declaration of a local emergency shall not remain in effect for a period in excess of seven days unless it has been ratified by the City Council; and WHEREAS, Section 2.28.060 of the Grand Terrace Municipal Code appoints the City Manager as Director of Emergency Services, and empowers the Director request the City Council to proclaim the existence or threatened existence of a local emergency if the City Council is in session, or to issue such proclamation if the City Council is not in session; and WHEREAS, out of an abundance of caution to protect the health, safety, and welfare of the community, the Director of Emergency Services requested the City Council to proclaim a local emergency due to the public health threat caused by COVID-19; and NOW, THEREFORE, THE GRAND TERRACE CITY COUNCIL DOES HEREBY RESOLVE, AS FOLLOWS: SECTION 1. The conditions of extreme peril to the safety of persons and property have arisen within the City of Grand Terrace, caused by the effects of COVID-19. SECTION 2. The aforementioned conditions of extreme peril warrant and necessitate the proclamation of the existence of a local emergency by the City, as the means to resolve the conditions of extreme peril will probably exceed the capability of the City. SECTION 3. The City Council does hereby ratify the proclamation of emergency by the City Manager as Director of Emergency Services on March 19, 2020 and the City Council hereby further declares and proclaims the existence of a local emergency. 2020-05 CC Reso Page 2 of 4 March 24, 2020 G.7.d Packet Pg. 216 At t a c h m e n t : A t t a c h m e n t 4 R e s o l u t i o n 2 0 2 0 - 0 5 ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) SECTION 4. During the existence of such local emergency, the powers, functions, and duties of the City Manager as Director of Emergency Services and the Disaster Council of this City shall be those prescribed by State Law, Chapter 2.28 of the Grand Terrace Municipal Code, and ordinances and resolutions of this City, and approved plans of the City in order to mitigate the effects of the local emergency. SECTION 5. In addition to the powers, functions, and duties already prescribed above, the Council desires to make clear the powers, functions, and duties include: (a) As necessary for the public health, life, and property, entering into contracts to arrange for the procurement of materials, goods, and services needed to assist in preparing for, containing, responding to, mitigating the effects of, and recovering from the spread of COVID-19. (b) Applicable provisions of the Government Code and the Public Contract Code, including but not limited to travel, advertising, and competitive bidding requirements, as well as any City procurement or related policy, are suspended to the extent reasonably necessary to address the effects of COVID-19. (c) The Emergency Services Director is expressly authorized to assist with any lawful order, including the enforcement of an order of quarantine or curfew, as well as ordering potentially ill City employees to leave the workplace, authorizing certain City employees to work remotely, taking steps to limit non-essential contact by City employees, etc., to address the effects of COVID-19. SECTION 6. The local emergency shall be deemed to continue to exist until its termination is proclaimed by the City Council. SECTION 7. The Government Code Section 8630 requirement that the Council review of the need for continuing the local emergency at least once every 60 days until the City Council terminates the local emergency has been waived for the duration of the statewide emergency declared by Governor Newsom. In the event this declaration of local emergency extends for more than the duration of the statewide emergency declared for COVID-19, City Staff are directed to thereafter return this item for Council review of the need for continuing the local emergency at least once every 60 days until the City Council terminates the local emergency. SECTION 8. This Resolution shall take effect immediately. A copy of the Proclamation and this Resolution shall be forwarded to the San Bernardino County Operational Area for transmission to California Emergency Management Agency. The City Clerk shall certify to the passage and adoption of this resolution. 2020-05 CC Reso Page 3 of 4 March 24, 2020 G.7.d Packet Pg. 217 At t a c h m e n t : A t t a c h m e n t 4 R e s o l u t i o n 2 0 2 0 - 0 5 ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 24th day of March 2020. D~~'-Flc-- Ma ~:T~ , _ Qebra L. Thomas . City Clerk·, . APPROVED AS/JORM: ti)L_J<~- Adrian R. Guerra City Attorney 2020-05 CC Reso Page 4 of 4 March 24, 2020 G.7.d Packet Pg. 218 At t a c h m e n t : A t t a c h m e n t 4 R e s o l u t i o n 2 0 2 0 - 0 5 ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY WHEREAS, in December 2019, an outbreak of respiratory illness due to a novel coronavirus (COVID-19) was first identified in Wuhan City, Hubie Province, China; and WHEREAS, the Center for Disease Control and Prevention (CDC) considers COVID-19 to be a very serious public health threat with outcomes ranging from very mild (including some with no reported symptoms) to severe, including illness resulting in death; and WHEREAS, according to the CDC, there is no vaccine to prevent COVID-19 and there is no specific antiviral treatment recommended for COVID-19 at this time; and WHEREAS, on January 30, 2020, the World Health Organization declared a Public Health Emergency of International Concern over the global spread of COVID-19; and WHEREAS, on January 31, 2020, Health and Human Services declared a Public Health Emergency for the United States to aid the nation's healthcare community in responding to COVID-19; and WHEREAS, the California Department of Public Health (CDPH) has activated its Medical and Health Coordination Center, and the Office of Emergency Services recently activated the State Operations Center to provide support and guide actions to preserve public health; and WHEREAS, on March 11, 2020, the World Health Organization characterized COVID-19 as a "pandemic"; and WHEREAS, on March 4, 2020, Governor Newsom proclaimed the existence of a state of emergency; and WHEREAS, on March 12, 2020, Governor Newsom issued Executive Order N-25- 20 regarding COVID-19; and 01247.0001/637377.1 G.7.d Packet Pg. 219 At t a c h m e n t : A t t a c h m e n t 4 R e s o l u t i o n 2 0 2 0 - 0 5 ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) WHEREAS, on March 13, 2020, President Trump declared a National State of Emergency in response to increased spread of COVID-19; and WHEREAS, the California Emergency Services Act, Government Code Sections 8558(c) and 8630 authorize the proclamation of a local emergency when conditions of a disaster or extreme peril to the safety of persons and property within the territorial limits of a city exist; and WHEREAS, pursuant to Government Code Section 8630 such an emergency may be proclaimed by the governing body or by an official designated by ordinance adopted by the governing body; and WHEREAS, Section 2.28.060 of the Grand Terrace Municipal Code empowers the Director of Emergency Services/City Manager to proclaim the existence or threatened existence of a "local emergency" if the City Council is not in session and requires that the City Council act to ratify the proclamation within seven (7) days thereafter; and WHEREAS, The City Manager, as Director of Emergency Services of the City of Grand Terrace, in accordance with the authority provided under the above provisions of state and local law, does hereby find: 1. That the proclamation of a local emergency warranted by virtue of the extreme peril to the safety of persons and property in the City of Grand Terrace caused by epidemic in the form of the global spread of a severe acute respiratory illness caused by a novel (new) coronavirus ("COVID-19"), including confirmed cases in the State of California and in San Bernardino County prompting the State of California and the County of San Bernardino to declare a local health emergency; and 2. That the City of Grand Terrace officers and employees take all steps as requested by the Director of Emergency Services/City Manager and in accordance with the guidelines as prescribed by the Federal, State and County governments to prevent the spread of COVID-19 and to prevent or alleviate illness or death due to the virus. 3. That the City Council of the City of Grand Terrace is not in session and cannot immediately be called into session. 4. That this proclamation shall be in effect for a period of seven (7) days by which time it must be ratified by the City Council of the City of Grand Terrace, pursuant to Government Code Section 8630 and Grand Terrace Municipal Code Section 2.28.060. NOW, THEREFORE, IT IS HERBY PROCLAIMED that, based upon the foregoing, a local emergency now exists throughout the City of Grand Terrace; and 01247.0001/637377.1 G.7.d Packet Pg. 220 At t a c h m e n t : A t t a c h m e n t 4 R e s o l u t i o n 2 0 2 0 - 0 5 ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) BE IT FURTHER PROCLAIMED AND ORDERED that during the existence of said local emergency, the powers, functions, and duties of the emergency organization of this City shall be those prescribed by state law, ordinances, and resolutions of this City, and by the City of Grand Terrace Emergency Plan. BE IT FURTHER PROCLAIMED AND ORDERED that all City officers and employees take all steps required by the City Manager to qualify the City for reimbursement from the Federal Emergency Management Agency and for other state and federal relief as my be available to reimburse the City for the expenses it incurs in addressing this emergency. Signed this 19th day of March 2020 Time: 5:oo P.M. ervices 01247 .0001/637377 .1 G.7.d Packet Pg. 221 At t a c h m e n t : A t t a c h m e n t 4 R e s o l u t i o n 2 0 2 0 - 0 5 ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) CITY OF GRAND TERRACE ) I Debra L. Thomas, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2020-05 was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, at the regular meeting of said City Council held on the 24th day of March 2020, and that the same was passed and adopted by the following vote: AYES: Council Members Allen, Hussey, Robles; Mayor Pro Tern Wilson; Mayor McNaboe NOES: None. ABSENT: None ABSTAIN: None. Executed this 25th day of March 2020, at Grand Terrace, California. Ql,~ e113L. Thomas : ;_ -. · City Clerk --= : --.:./:-: . -3 -.. G.7.d Packet Pg. 222 At t a c h m e n t : A t t a c h m e n t 4 R e s o l u t i o n 2 0 2 0 - 0 5 ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) BUDGETARY Quote Number: Opp-2034004-143481 Honeywell LA-F City of Grand Terrace EBI and DDC upgrades Proposal for: City of Grand Terrace LA-F City of Grand Terrace EBI and DDC upgrades Presented by: Melinda Pfenning Honeywell Building Solutions Notwithstanding any other provision of this document, this budgetary proposal is provided for information and planning purposes only, is non-binding, and does not constitute an offer capable of acceptance. Honeywell will be pleased to provide a firm price proposal upon request, subject to its internal approval requirements. ATTACHMENT 5 G.7.e Packet Pg. 223 At t a c h m e n t : A t t a c h m e n t 5 H o n e y w e l l P r o p o s a l ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) Honeywell International 22 Centerpointe Drive La Palma, CA 90623 Date:26-Oct-2020 Site: City of Grand Terrace City Hall 22795 Barton Road Grand Terrace California United States 92313 Customer: City of Grand Terrace 22795 Barton Rd Grand Terrace California United States 92313-5207 Contact:Contact: Phone:Phone: Email:Email: Overview Of Scope City of Grand Terrace EBI/DDC upgrade Mechanical / Building Automation System (BAS) Scope of Work Honeywell is providing a budgetary price proposal for the City of Grand Terrace EBI/DDC upgrades. Honeywell will be providing materials, electrical installation, programming and commissioning. Honeywell was provided with a select set of drawings taken from the master MEP set, dated 8/1983. Drawings provided for this budgetary proposal is A-5, A-6, M-1, M-2, M-4, & M-6. Building Automation System (BAS): A new BAS system will be provided with an Enterprise Building Integrator (EBI-CPO), which will have a connection to the main EBI server. A user workstation will be provided for the building engineer and facilities staff. The proposed HVAC DDC system field equipment will be comprised of Honeywell’s latest Comfort point Open controllers using BACnet MSTP (ASHRAE Standard 135-2016) communications protocol for Building and Automation & Control Networks. EBI-CPO R600 Front End • There will be a user workstation located the building engineer’s with EBI-CPO R600 installed. • The new system will have the capability of connecting to the Access Controls EBI server. • Graphics for DDC controls will be provided with system. • Qty (1) web connection through web browser will be provided. 2 G.7.e Packet Pg. 224 At t a c h m e n t : A t t a c h m e n t 5 H o n e y w e l l P r o p o s a l ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) Honeywell Internal Existing Roof Top Units 1 through 4 (Qty 4) • Add new half-size Enclosure with RL5N controller with transformer/power supply. • Replace existing panel power supplies and/or transformers with new. • Connect new RTU controllers to new PC-400 (Boiler Room) via new BACnet MSTP cabling. • Install and wire new field devices using existing wiring if in good condition. If not, replace wiring. • Reuse existing conduits and raceways. • Existing equipment/field devices planned for reuse: • Supply fan enable relays and current sensors • High-static safety cutoff switches • Duct static pressure transmitters • Low-limit thermostats • Supply and return air smoke detectors and interlocking relays for shutdown • Filter status alarm • New equipment/field devices to be provided and/or installed: • Mixed air, heating coil, and discharge air averaging temperature sensors • Return air temperature probe • Room temperature sensors (sylk bus) –display • Hot water valves/actuators • BACnet AHU controllers, programmed with sequences closely matching existing • Panel power supplies and transformers Existing VAV Boxes (Qty 5) • New BACnet controllers will mounted on existing VAV box damper post. • Existing room sensor outlets/stub-ups to be reused. Wall stat will be replaced. • All VAV boxes to be interconnected to their respective AHU controller via new BACnet cabling. • The plan for power is to have each VAV box controller powered separately, but if boxes are in close proximity of each other a single 500 VA transformer may be used to limit the amount of 120Vac circuits needed. • Equipment/field devices to be provided and/or installed or reused: • BACnet VAV controller (Installed by electrician) • Discharge duct temperature sensor • Damper actuator – built into new controllers • Airflow CFM – built into new controllers • Room temperature sensors (sylk bus) – w/display • Hot water reheats valves with actuators (reuse if possible) Existing Exhaust Fans (Qty 3) • Existing exhaust fans to be controlled by new remote BACnet enabled relay/current switch combination devices (Functional Devices RIBTWX2402B-BC). • Devices to be interconnected via new BACnet cabling. • New equipment/field devices to be provided and/or installed: • Remote relay/current switch device ( • 20va transformers to power devices (line side taken from fan power) Existing DHW & HW Plant • There are no detailed drawings of the Boiler plant and/or Domestic Hot Water system. 3 G.7.e Packet Pg. 225 At t a c h m e n t : A t t a c h m e n t 5 H o n e y w e l l P r o p o s a l ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) • Remove existing controller and replace with Honeywell BACnet plant controller (PC-400). • Ensure existing wiring planned for reuse is properly labeled – existing panel enclosure and incoming power to be reused. • Replace existing power supplies and/or transformers with new. • Install and wire new devices using existing wiring if in good condition. If not, replace wiring. • Reuse existing field devices where possible and as shown below. • Reuse existing conduits and raceways. • New equipment/field devices to be provided and/or installed: • Power supply and transformer • BACnet plant controller with panel-mount I/O modules • Relays and current sensors for (1) existing primary hot water pump. • Relays and current sensors for (1) existing DHW water secondary pump. • Boiler system enable relay • Relays and current sensors for new hot water pump • BACnet wiring to new hot water pump. • Hot water system temperature sensors with thermal wells (2) Merv 13 Filters • Will provide labor and materials to replace the existing MERV 10 Filters with MERV 13 Filters for the 6 A/C Units at the City Hall / Civic Center UV Lights • Install QTY (10) UV-C lights into (4) Rooftop Air Conditioning Systems at City Hall/Civic Center. UV-C lighting has been shown to reduce infectious agents and qualifies for LEED points in energy and sustainability categories. • Work will have to be done after hours (weekend work) RTU 40TN UNIT Replacement • Honeywell will remove and replace (1) existing 45TN Roof Top Air Conditioner. • Install new outdoor condenser coil, recharge and test unit. • Work will be done over a span of 5 days, including over the weekend. • Crane will be used in parking lot to lift equipment up to the roof. Honeywell Internal 4 Honeywell has included (8) hours of customer training for up to (3) people in this proposal. Training shall be performed in (1) sitting. Return trips for additional training will incur additional costs. Training will consist of basic programing including card holder database, holidays, access levels, door groups and monitoring and acknowledging alarms. Additional training can be provided under a separate contract. Additional pricing can be provided upon request. Training: G.7.e Packet Pg. 226 At t a c h m e n t : A t t a c h m e n t 5 H o n e y w e l l P r o p o s a l ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) Clarifications and Exclusions: • Parts of the Mechanical scope will have to be done after hours due to putting equipment offline while working. This will cause areas of unconditioned spaces within building and will not be comfortable for building occupants during our working hours. • Providing or installing dampers or damper actuators of any kind is excluded • All 120v and higher power wiring is by others • Any permits and permit fees. • Any devices required but not listed above as new can be provided for additional fee • Network drops to DDC panels, where required, is provided by others • Emergency boiler stop switch is provided/installed by others • MMI displays are excluded • Additional support required due to non-Honeywell issues will require a change order. • Trenching, patching, painting is excluded • Test and balance are by others • All interfaces to 3rd-party equipment, such as chillers, boilers, VFD’s, etc., is provided, installed, and configured by others with BACnet points properly exposed • Taxes are excluded NOTE 1: Honeywell shall be entitled to an equitable extension of time to perform its work and appropriate additional compensation to the extent its work is affected, delayed, and/or hindered because of any cause relating to the Covid-19 pandemic. NOTE 2: Due to implementation of the United States and other tariffs on certain imported products, Honeywell may incur unplanned price increases from our suppliers and/or subcontractors. As a result, Honeywell’s proposal pricing is subject to change once you accept our proposal and/or present a purchase order to Honeywell. At the award date, Honeywell will confirm the proposal price or present the pricing change, and will obtain your acceptance, prior to commencement of any work under this project. Honeywell reserves the right to negotiate mutually acceptable scope of work, terms and conditions of the ensuing subcontract. NOTE 3: Delays in testing and commissioning due to work performed by others that cause a labor impact to Honeywell or return trips will incur additional charges at Honeywell’s T&M hourly rate. Budgetary Price 5 $119,260.00Budgetary Price for DDC Controls & EBI Upgrade : $2,800.00 $28,890.00Budgetary Price for UV Lights: Budgetary Price RTU 40TN Unit Replacement : $116,750.00 Notwithstanding any other provision of this document, this budgetary proposal is provided for information and planning purposes only, is non-binding, and does not constitute an offer capable of acceptance. Honeywell will be pleased to provide a firm price proposal upon request, subject to its internal approval requirements. Honeywell Internal Budgetary Price for Merv 13 Filters: G.7.e Packet Pg. 227 At t a c h m e n t : A t t a c h m e n t 5 H o n e y w e l l P r o p o s a l ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) Honeywell Internal 6 G.7.e Packet Pg. 228 At t a c h m e n t : A t t a c h m e n t 5 H o n e y w e l l P r o p o s a l ( S B C o u n t y C A R E S A c t I n f r a s t r u c t u r e F u n d i n g ) AGENDA REPORT MEETING DATE: November 10, 2020 Council Item TITLE: City Hall Closure During the 2020 Holidays PRESENTED BY: G. Harold Duffey, City Manager RECOMMENDATION: Receive and file the report on the Closure of City Hall from Thursday, December 24, 2020 through Friday, January 1, 2021. 2030 VISION STATEMENT: This staff report supports Goal #1, "Ensuring Our Fiscal Viability" by temporarily reducing some operational costs, including utilities and janitorial services, in City Hall during the period of closure during the holidays. BACKGROUND: On April 14, 2015, City Council approved Resolution No. 2015-07 (Attachment I) delegating authority to the City Manager to set the City Hall closure schedule over the Christmas/New Year's holiday. The City's Statement of Benefits for employees provides for holidays over Christmas & New Year's as follows: 1. Christmas Eve; 2. Christmas Day; 3. New Year's Eve; 4. New Year's Day; and During the 2019 calendar year, Grand Terrace City Hall was closed for "the holidays", between Monday, December 23, 2019 and reopened Thursday, January 2, 2020. DISCUSSION: City Hall will close Christmas week, starting Thursday, December 24, 2020 and reopen Monday, January 4, 2021. Before the schedule was decided, staff polled several surrounding cities in San Bernardino County on their holiday closures, which are identified in the chart below, which include the proposed holiday closure for the City. The holiday closure schedule varied from city-to-city and also includes those that work forty (40) hours and are open G.8 Packet Pg. 229 five (5) days a week, four (4) tens (10’s) and are closed every Friday, a 9/80 work week being closed every other Friday and those with a staggered 9/80 work week but still open every Friday. Dates Rialto Fontana Grand Terrace San Bernardino Loma Linda Redlands Monday 12/21/2020 ✓ Tuesday 12/22/2020 ✓ Wednesday 12/23/2020 ✓ Christmas Eve Thursday 12/24/2020 ✓ ✓ ✓ ✓ ✓ ✓ Christmas Friday 12/25/2020 * * ✓ *** * ** Monday 12/28/2020 ✓ ✓ ✓ ✓ Tuesday 12/29/2020 ✓ ✓ ✓ ✓ Wednesday 12/30/2020 ✓ ✓ ✓ ✓ New Year’s Eve Thursday 12/31/2020 ✓ ✓ ✓ ✓ ✓ ✓ New Year’s Friday 01/01/2021 * * ✓ *** * ✓ ✓ = Holiday Closure * = Closed Every Friday ** = 9/80 Work Week - Closed Every Other Friday *** = 9/80 Work Week Staggered – Open Every Friday (Employees Alternate Fridays Off) The closure will result in a total of three (3) workdays employees will need to use leave time such as floating holidays, administrative days and/or vacation days to cover the three (3) workdays City Hall will be closed. Employers cannot make their employees take accrued leave. If we have employees that are unwilling to use their paid leave for the days City Hall is scheduled to close, we will accommodate them and allow them to work and a supervisor will be present. G.8 Packet Pg. 230 The City will continue to have on-call services for maintenance and animal control during the holiday period. Street Sweeping services and ticketing will be suspended after the 19th of November 2020 and will resume January 7, 2021. The City will conduct scheduled inspections during City Hall closure. FISCAL IMPACT: There is no fiscal impact to receiving and filing this report. ATTACHMENTS: • Attachment I - 2015-07 CC Reso - CM Sets Holiday Closure Schedule (PDF) APPROVALS: G. Harold Duffey Completed 11/04/2020 3:26 PM City Attorney Completed 11/05/2020 9:58 AM Finance Completed 11/05/2020 10:29 AM City Manager Completed 11/05/2020 2:02 PM City Council Pending 11/10/2020 6:00 PM G.8 Packet Pg. 231 G.8.a Packet Pg. 232 At t a c h m e n t : A t t a c h m e n t I - 2 0 1 5 - 0 7 C C R e s o - C M S e t s H o l i d a y C l o s u r e S c h e d u l e ( C i t y H a l l H o l i d a y C l o s u r e ) G.8.a Packet Pg. 233 At t a c h m e n t : A t t a c h m e n t I - 2 0 1 5 - 0 7 C C R e s o - C M S e t s H o l i d a y C l o s u r e S c h e d u l e ( C i t y H a l l H o l i d a y C l o s u r e )