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05/10/2022CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● MAY 10, 2022 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 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, please complete a Request to Speak card located at the front entrance and provide it to the City Clerk. 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: 844 1680 2640 Password: 093664 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 May 10, 2022 City of Grand Terrace Page 2 CALL TO ORDER Convene City Council Invocation Pledge of Allegiance Roll Call Attendee Name Present Absent Late Arrived Mayor Darcy McNaboe    Mayor Pro Tem Bill Hussey    Council Member Sylvia Robles    Council Member Doug Wilson    Council Member Jeff Allen    A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA B. SPECIAL PRESENTATIONS - NONE 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 – Special Meeting Workshop – 04/21/2022 DEPARTMENT: CITY CLERK 3. Approval of Minutes – Regular Meeting – 04/26/2022 DEPARTMENT: CITY CLERK 4. Grand Terrace High School Senior Parade RECOMMENDATION: That the City Council approve a resolution finding that the use of City funds to pay for a parade for graduating seniors at Grand Terrace High School serves the public interest. DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council May 10, 2022 City of Grand Terrace Page 3 5. Ordinance Adjusting City Council Salary and Formally Establishing Vehicle and Technology Allowances RECOMMENDATION: Direct the City Attorney to read the title for second reading, waive further reading of, and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ADJUSTING THE MONTHLY SALARY OF THE CITY COUNCIL AND ESTABLISHING VEHICLE AND TECHNOLOGY ALLOWANCES DEPARTMENT: CITY ATTORNEY 6. Twenty-Ninth Amendment to Law Enforcement Services Contract No. 94-797 with the County of San Bernardino to Provide Law Enforcement Services for Fiscal Year 2022- 23 to the City of Grand Terrace RECOMMENDATION: 1. Approve the Twenty-Ninth Amendment to Law Enforcement Services Contract No. 94-797 with the County of San Bernardino to provide Law Enforcement Services from the Sheriffs’ Department for Fiscal Year 2022-23; and 2. Authorize the City Manager to execute the contract, subject to City Attorney’s approval as to form. DEPARTMENT: CITY MANAGER 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 7. Ordinances of the City Council of the City of Grand Terrace, California, Establishing Objective Standards for Implementation of Senate Bill No. 9 Pertaining to Urban Lot Splits and Two-Unit Developments and Updating the City's Regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units RECOMMENDATION: 1. Conduct a public hearing; and 2. Read by title only, waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ESTABLISHING REGULATIONS FOR URBAN LOT SPLITS AND TWO-UNIT DEVELOPMENTS IN Agenda Grand Terrace City Council May 10, 2022 City of Grand Terrace Page 4 ACCORDANCE WITH SENATE BILL 9 which also finds and determines that this ordinance is not a “project” for purposes of California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.21(j) and 66411.7(n); and 3. Read by title only, waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING AMENDMENTS TO REGULATIONS OF ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS, which also finds and determines that this ordinance is exempt from CEQA review pursuant to Public Resources Code Section 21080.17. DEPARTMENT: PLANNING & DEVELOPMENT SERVICES F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS 8. Award of Contract for HVAC Preventative Maintenance and Repair Services to Loma Linda Heat and Air Conditioning Inc. RECOMMENDATION: 1. Award and Approve an Agreement for HVAC Services to Loma Linda Heat and Air Conditioning Inc. in the amount of $70,916.80 with an initial 3-year term and 2 automatic extensions of 1 year each. 2. Authorize the City Manager to execute the Agreement subject to City Attorney approval as to form. DEPARTMENT: PLANNING & DEVELOPMENT SERVICES 9. Consideration of Commercial Cannabis Regulations RECOMMENDATION: Discuss and provide direction to staff on establishment of a potential commercial cannabis regulatory program, including what types of cannabis activities to permit (if any). DEPARTMENT: CITY ATTORNEY 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 Agenda Grand Terrace City Council May 10, 2022 City of Grand Terrace Page 5 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. Return to City Council-City Manager Form of Government Where Council Chooses one of its Number to Serve as Presiding Officer of the Council, to be known as Mayor Requested by: Council Member Sylvia Robles I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Doug Wilson Council Member Sylvia Robles Mayor Pro Tem Bill Hussey Mayor Darcy McNaboe J. CITY MANAGER COMMUNICATIONS • OFFICER’S REPORT K. RECESS TO CLOSED SESSION CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant Exposure to Litigation [Pursuant to Government Code Section 54956.9(d)(2), e(1)] A point has been reached where, in the opinion of the legislative body of the local agency, upon the advice of its legal counsel based on existing facts and circumstances, that there is significant exposure to litigation against the local agency. The facts and circumstances are those that might result in litigation against the local agency but which the local agency believes are not yet known to be a potential plaintiff or plaintiffs, which facts and circumstances need not be Agenda Grand Terrace City Council May 10, 2022 City of Grand Terrace Page 6 disclosed. Number of Cases: One (1) 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to Government Code Section 54956.9(a) Case Name: Sunny Days, LLC v. City of Grand Terrace Case No.: CIV SB 2107692 RECONVENE TO OPEN SESSION REPORT OUT OF CLOSED SESSION L. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, May 24, 2022, 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 ● APRIL 21, 2022 Council Chambers Special Meeting Workshop 6:30 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Mayor Darcy McNaboe convened the Joint Special Meeting Workshop of the City Council and Planning Commission for Thursday, April 21, 2022, at 6:30 p.m. PLEDGE OF ALLEGIANCE Mayor McNaboe led the Pledge of Allegiance. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Bill Hussey Mayor Pro Tem Present Sylvia Robles Council Member Present Doug Wilson Council Member Present Jeff Allen Council Member Present 6:45 PM Edward Giroux Planning Chairman Present Tara Ceseña Planning Commissioner Present David Alaniz Planning Commissioner Present Konrad Bolowich City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Haide Aguirre Associate Planner Present A. PUBLIC COMMENT None. B. NEW BUSINESS 1. Joint City Council and Planning Commission/Site and Architectural Review Board Workshop for Senate Bill No. 9 Pertaining to Urban Lot Splits and Two-Unit Developments and Accessory Dwelling Units and Junior Accessory Dwelling Units; and Related Proposed Ordinances 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 A p r 2 1 , 2 0 2 2 6 : 3 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council April 21, 2022 City of Grand Terrace Page 2 Haide Aguirre, Associate Planner gave the staff report and PowerPoint presentations for this item. 1. THAT CITY COUNCIL AND PLANNING COMMISSION/SITE AND ARCHITECTURAL REVIEW BOARD FIRST RECEIVE A PRESENTATION ON ADU AND JADU LAW AND OBJECTIVE STANDARDS UPDATING THE CITY'S ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND PROVIDE INPUT AND DIRECTION TO STAFF ON THE PROPOSED REVISIONS TO ADU/JADU ORDINANCE. 2. THAT, FOLLOWING COMPLETION OF THE DISCUSSION ON ADU/JADU REGULATIONS, THE CITY COUNCIL AND PLANNING COMMISSION/SITE AND ARCHITECTURAL REVIEW BOARD RECEIVE A PRESENTATION ON SB 9 AND PROVIDE INPUT AND DIRECTION TO STAFF ON THE PROPOSED OBJECTIVE STANDARDS FOR IMPLEMENTATION OF SENATE BILL NO. 9. RESULT: PROVIDE DIRECTION TO STAFF ADJOURN Mayor McNaboe adjourned the Special Joint Meeting Workshop of the City Council and Planning Commission at 8:45 p.m. The Next Regular Meeting of the City Council will be held on Tuesday, April 26, 2022, at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Debra Thomas, City Clerk 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 A p r 2 1 , 2 0 2 2 6 : 3 0 P M ( C o n s e n t C a l e n d a r ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● APRIL 26, 2022 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. INVOCATION The Invocation was provided by Mayor Pro Tem Bill Hussey. PLEDGE OF ALLEGIANCE Mayor Darcy McNaboe led the Pledge of Allegiance. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Bill Hussey Mayor Pro Tem Present Sylvia Robles Council Member Present Doug Wilson Council Member Present Jeff Allen Council Member Present Konrad Bolowich City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Terry Shea Interim Finance Director Present A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA None. B. SPECIAL PRESENTATIONS Terry Shea, Interim Finance Director introduced new employee, Trevor Greeley, Finance Technician The City Council presented DMV Donate Life Proclamation to Susan Van Campen on behalf of One Legacy. Johan Gallo presented Certificates of Recognition to the City Council, San Bernardino County Sheriff’s Department and San Bernardino County Fire on behalf of Sick N Tired Recovery Home. C.3 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 A p r 2 6 , 2 0 2 2 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 April 26, 2022 City of Grand Terrace Page 2 C. CONSENT CALENDAR RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 1. Waive Full Reading of Ordinances on Agenda 2. Approval of Minutes – Regular Meeting – 04/12/2022 APPROVE THE REGULAR MEETING MINUTES OF APRIL 12, 2022 3. Approve National Arab American Heritage Month Proclamation and Certificate of Recognition, Victoria Bacon, Girl Scout Troop #30 APPROVE NATIONAL ARAB AMERICAN HERITAGE MONTH PROCLAMATION AND CERTIFICATE OF RECOGNITION TO BE PRESENTED TO VICTORIA BACON, GIRL SCOUT TROOP #30 4. Approval of the March-2022 Check Register in the Amount of $433,430.02 APPROVE THE CHECK REGISTER NO. 03312022 IN THE AMOUNT OF $433,430.02 AS SUBMITTED, FOR THE MONTH ENDING MARCH 31, 2022. 5. City Department Monthly Activity Report - February 2022 RECEIVE AND FILE. 6. Amendment to the Statement of Benefits ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE AMENDING THE STATEMENT OF BENEFITS SECTIONS PERTAINING TO MAJOR MEDICAL INSURANCE BENEFITS FOR EMPLOYEES, MEDICAL INSURANCE BENEFITS FOR CITY COUNCIL MEMBERS, AND ALL LANGUAGE PERTAINING TO CHILD CARE EMPLOYEES 7. Amend CalPERS Health Contract for General Members and Retired Annuitants ADOPT A RESOLUTION OF THE CITY OF GRAND TERRACE FIXING THE EMPLOYER CONTRIBUTION UNDER THE PUBLIC EMPLOYEES’ MEDICAL AND HOSPITAL CARE ACT AT AN UNEQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION 8. Award Contractor Agreement to Goodman & Associates for Plans, Specifications, and Estimates Preparation for Pavement Rehabilitation Project for Fiscal Year 2021-22 1. AWARD AN AGREEMENT TO GOODMAN & ASSOCIATES FOR PREPARING PLANS, SPECIFICATIONS AND ESTIMATES (PS&E) FOR PAVEMENT REHABILITATION PROJECT PROVIDED IN THE REVISED FISCAL YEAR 21-22 CIP IN THE AMOUNT OF $23,500. C.3 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 A p r 2 6 , 2 0 2 2 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 April 26, 2022 City of Grand Terrace Page 3 2. AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM. D. PUBLIC COMMENT None. E. PUBLIC HEARINGS - NONE F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS 9. Grand Terrace High School Senior Parade Konrad Bolowich, City Manager gave the staff report and PowerPoint presentation for this item. Mayor Pro Tem Hussey moved, with an alternate motion to cover the total cost of the event, dollar-for-dollar, and direct staff to bring back a resolution setting forth the public benefit findings to justify the expense. The motion failed for lack of a second. Council Member Allen, moved, with a second from Council Member Robles, that the City Council support the event in the proposed manner, that the City will match, dollar- for-dollar, contributed/paid by the Parade organizers for the Parade costs up to fifty (50) percent of the Parade costs and direct staff to bring back a resolution setting forth the public benefit findings to justify the expense. RESULT: APPROVED [3 TO 2] MOVER: Jeff Allen, Council Member SECONDER: Sylvia Robles, Council Member AYES: Darcy McNaboe, Sylvia Robles, Jeff Allen NAYS: Bill Hussey, Doug Wilson 10. Ordinance Adjusting City Council Salary and Formally Establishing Vehicle and Technology Allowances Adrian Guerra, City Attorney gave the staff report and PowerPoint presentation for this item. READ BY TITLE ONLY, WAIVE FURTHER READING AND INTRODUCE AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, C.3 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 A p r 2 6 , 2 0 2 2 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 April 26, 2022 City of Grand Terrace Page 4 CALIFORNIA ADJUSTING THE MONTHLY SALARY OF THE CITY COUNCIL AND ESTABLISHING VEHICLE AND TECHNOLOGY ALLOWANCES RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Doug Wilson, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 11. Non-Owner Occupied/Rental Inspection Program Progress Leila Holtzen, Senior Code Enforcement Officer gave the staff report and PowerPoint presentation for this item. PUBLIC COMMENT Bobbie Forbes, Grand Terrace supports the Non-Owner Occupied/Rental Inspection Program but without the reduction in fees and a flat rate should be applied. She believes owners need to be notified by the City when a problem tenant has been identified. She suggested that a property owner with a non-owner occupied property, no matter who it is, needs to be registered with the program and secure a City business license. STAFF RECOMMENDS THAT THE CITY COUNCIL CONDUCT A DISCUSSION ON THE CURRENT NON-OWNER-OCCUPIED RENTAL PROGRAM AND PROVIDE DIRECTION ON PROPOSED PROGRAM CHANGES. RESULT: NO ACTION TAKEN 12. Landscape Recognition Program Konrad Bolowich, City Manager gave the staff report and PowerPoint presentation for this item. PUBLIC COMMENT Bobbie Forbes, Grand Terrace stated that the proposal to bring homeowner recognitions to the City Council once a year, is not enough. THAT THE CITY COUNCIL DIRECT STAFF TO IMPLEMENT AN ANNUAL LANDSCAPE RECOGNITION PROGRAM RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 13. American Rescue Plan Act Funding Konrad Bolowich, City Manager gave the staff report and PowerPoint presentation for this item. C.3 Packet Pg. 12 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 A p r 2 6 , 2 0 2 2 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 April 26, 2022 City of Grand Terrace Page 5 PUBLIC COMMENT Bobbie Forbes, Grand Terrace suggested the City sell the old signs that will be replaced. She wanted to know if street sweeping and speed limit signs would be included when old signs are replaced? THAT THE CITY COUNCIL APPROVE THE SELECTED PROJECTS, FOR THE USE OF THE AMERICAN RESCUE PLAN ACT FUNDING RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Doug Wilson, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 14. 2021-22 Mid-Year and Year-End Budget Review Terry Shea, Interim Finance Director gave the staff report and PowerPoint presentation for this item. RECEIVE AND FILE THE FY2021-22 MID-YEAR AND YEAR-END REPORT. RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Doug Wilson, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen On April 20, 2022, Council Member Allen attended the San Bernardino County Solid Waste Advisory Task Force meeting and discussed SB 1383 and its implementation by the end of 2022. Council Member Doug Wilson Nothing to Report. Council Member Sylvia Robles Nothing to Report. C.3 Packet Pg. 13 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 A p r 2 6 , 2 0 2 2 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 April 26, 2022 City of Grand Terrace Page 6 Mayor Pro Tem Bill Hussey On April 20, 2022, Mayor Pro Tem Hussey attended the Coffee with a Cop at Woody’s Classic Grill and discussed law enforcement activities throughout the City. Mayor Darcy McNaboe On April 20, 2022, Mayor McNaboe attended the Coffee with a Cop at Woody’s Classic Grill and discussed law enforcement activities throughout the City. J. CITY MANAGER COMMUNICATIONS Konrad Bolowich, City Manager announced that the City has spent the last two (2) days (with approximately three (3) more needed) working on removing homeless encampment that is located at Barton Road where the guardrail has been removed. K. CLOSED SESSION - NONE L. ADJOURN Mayor McNaboe adjourned the Regular Meeting of the City Council at 9:00 p.m. The Next Regular Meeting of the City Council will be held on Tuesday, May 10, 2022, at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Debra Thomas, City Clerk C.3 Packet Pg. 14 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 A p r 2 6 , 2 0 2 2 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE: May 10, 2022 TITLE: Grand Terrace High School Senior Parade PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: That the City Council approve a resolution finding that the use of City funds to pay for a parade for graduating seniors at Grand Terrace High School serves the public interest. 2030 VISION STATEMENT: This staff report supports Goal #4, Develop and Implement Successful Partnerships. BACKGROUND: The parents of graduating high school seniors at Grand Terrace High School desire to conduct a Parade (Parade) in recognition of such graduating high school seniors. The Parade will require coordination and activities by various local agencies and, requires that the organizers of the Parade must acquire insurance. The total cost of such coordination and activities require payments to other entities, and the City Council desires to pay up to half of the total Parade costs. DISCUSSION: The City has an interest in ensuring that its rights-of-way are safe and ensuring that the Parade is properly planned to minimize disruption. The Parade could cause obstruction or sudden and unexpected stopping of vehicles in the right-of-way. Therefore, a public purpose is served by assisting the Parade organizers to conduct it in a safe manner. Additionally, the City has an interest in encouraging its young residents to graduate from high school. The Parade will not only honor these young residents but serve as encouragement and an example to those who have yet to graduate. Therefore, a public purpose is served by the expenditure of City funds on the Parade. FISCAL IMPACT: Up to fifty percent of the Parade costs, not to exceed the City Managers approval limits. ATTACHMENTS: • 2022-xx - GT Resolution - Parade Expenditure (DOCX) C.4 Packet Pg. 15 APPROVALS: Konrad Bolowich Completed 05/04/2022 11:33 AM City Manager Completed 05/04/2022 1:15 PM City Council Pending 05/10/2022 6:00 PM C.4 Packet Pg. 16 01247.0001/786791.3 RESOLUTION NO. 2022-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE FINDING THAT THE USE OF CITY FUNDS TO PAY FOR A CERTAIN COSTS RELATING TO A PARADE FOR GRADUATING SENIORS AT GRAND TERRACE HIGH SCHOOL SERVES A PUBLIC PURPOSE AND, FURTHER, APPROVING THE USE OF CITY FUNDS TO PAY THEREOF. WHEREAS, parents of graduating high school seniors at Grand Terrace High School desire to conduct a parade in addition to commencement activities within the City of Grand Terrace (“City”) in honor of such graduating high school seniors (“Parade”); and WHEREAS, the Parade will require coordination and activities by various local agencies, including, but not limited to City staff coordination (e.g., the Public Works Department) and the San Bernardino County Sheriffs; and, further, requires that the organizers of the parade must acquire insurance; and, further, require payments of the associated costs (“Parade Costs”); and WHEREAS, the Parade Costs require payments to other organizations or agencies; and WHEREAS, the City Council desires to annually pay up to half of the total Parade Costs by matching the funds paid by the Parade organizers, but only up to half of the total Parade Costs. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace, as follows: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. Public Purpose. The expenditure of City funds for the Parade serves the following public purposes: A. The City has an interest in ensuring that its rights-of-way are safe, and the City has an interest in ensuring that the Parade is properly planned such that disruption to the City’s rights-of-ways is minimized. In 2020, a similar parade was informally held without the City’s review/approval. There is a possibility that another parade is informally organized, which could be a public safety issue for other users of the City’s rights-of-way as it could obstruct or cause sudden and unexpected stopping of vehicles in the right-of-way. Therefore, a public purpose is served by assisting the organizers of the Parade conduct it in a safe manner. B. The City has an interest in encouraging its young residents to graduate from high school in order to be prepared for the economy by attaining higher education levels. If the City’s residents are more educated, then the City’s economy will be improved which will result in higher tax revenues for the City and, in turn, will result in more/better City services. The Parade will not only honor these young residents, but serve as encouragement and an example to those who have yet to graduate. Therefore, a public purposes is served by the expenditure of City funds on the Parade. C.4.a Packet Pg. 17 At t a c h m e n t : 2 0 2 2 - x x - G T R e s o l u t i o n - P a r a d e E x p e n d i t u r e ( G r a n d T e r r a c e H i g h S c h o o l S e n i o r P a r a d e ) 01247.0001/786791.3 Section 3. Expenditure Approval. For each year that the Parade is held, the City will match each dollar contributed/paid by the Parade organizers for the Parade Costs up to fifty percent of the Parade Costs. In no event shall the City’s payment of the Parade Costs for a particular year exceed the City Manager’s expenditure limit. Section 4. Other Acts. The City Manager is hereby authorized to take such acts as may be necessary and proper to carry out this Resolution. Section 5. Effective Date. This Resolution shall immediately take effect upon passage. PASSED, APPROVED and ORDERED by the City Council of the City of Grand Terrace, California at a regular meeting held on the 10th day of May, 2022. Darcy McNaboe Mayor ATTEST: ________________________________ Debra Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra City Attorney C.4.a Packet Pg. 18 At t a c h m e n t : 2 0 2 2 - x x - G T R e s o l u t i o n - P a r a d e E x p e n d i t u r e ( G r a n d T e r r a c e H i g h S c h o o l S e n i o r P a r a d e ) AGENDA REPORT MEETING DATE: May 10, 2022 Council Item TITLE: Ordinance Adjusting City Council Salary and Formally Establishing Vehicle and Technology Allowances PRESENTED BY: Adrian Guerra, City Attorney RECOMMENDATION: Direct the City Attorney to read the title for second reading, waive further reading of, and adopt AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ADJUSTING THE MONTHLY SALARY OF THE CITY COUNCIL AND ESTABLISHING VEHICLE AND TECHNOLOGY ALLOWANCES 2030 VISION STATEMENT: This staff report supports City Council Goal #5, “Engage the Community by Participation” by allowing the City to ensure that City Council salaries and vehicle allowances are competitive such that it will encourage more citizens to participate in City governance. BACKGROUND: Pursuant to Grand Terrace Municipal Code (“GTMC”) 2.04.020, the City Council’s current monthly salary is $300, which was established pursuant to Government Code Section 36516. The original salary was established in 1978. Additionally, Government Code Section 1223 permits the City Council to establish a vehicle allowance. The current vehicle allowance is $200 per month. The City Council currently does not receive a technology allowance. DISCUSSION: The City Council conducted the first reading of the attached proposed ordinance on April 26, 2022. If adopted, the ordinance will establish the following: • Increase City Council’s compensation to $480 per month per Councilmember (increase of $180). This increase will not go into effect until after one or more council members begins a new term of office following the adoption of the proposed ordinance. • Establish the vehicle allowance in the amount of $450 per month. C.5 Packet Pg. 19 • Establish a new technology allowance in the amount of $205 per month per Councilmember. Both auto and technology allowances serve as reimbursement for actual and necessary expenses incurred by City Council members in the performance of their official duties within the applicable statutes. Therefore, it is recommended that the City Council direct the City Attorney to read the title for second reading, waive further reading of, and adopt the attached ordinance. FISCAL IMPACT: If approved, the total cost per fiscal year for Council salary will be $28,800 (increase of $10,800). The total cost per fiscal year for the vehicle allowance will be $24,000 (increase of $12,000). The total cost per fiscal year for the new technology allowance is $12,300. ATTACHMENTS: • Ordinance 337 - Council Salary_Auto_Technology (DOC) APPROVALS: Adrian Guerra Completed 05/04/2022 8:41 AM City Manager Completed 05/04/2022 11:18 AM City Council Pending 05/10/2022 6:00 PM C.5 Packet Pg. 20 01247.0001/627102.11 Page 1 of 3 ORDINANCE NO. 337 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ADJUSTING THE MONTHLY SALARY OF THE CITY COUNCIL AND ESTABLISHING VEHICLE AND TECHNOLOGY ALLOWANCES WHEREAS, Grand Terrace Municipal Code Section 2.04.020 codifies the monthly salary for the City Council pursuant to Government Code Section 36516(a); and WHEREAS, the City Council currently receives a salary of $300 per month, which has not been adjusted since 2010; and WHEREAS, Government Code Sections 36516(a)(4), in relevant part, allows an increase in City Council compensation that is calculated pursuant to a statutory formula stating that “The salary of council members may be increased beyond the amount provided in this subdivision by an ordinance or by an amendment to an ordinance, but the amount of the increase shall not exceed an amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted …”; and WHEREAS, based upon the aforementioned statutory formula, the current maximum total amount that the City Council may increase its compensation is $480; and WHEREAS, pursuant to Government Code Section 36516.5, any change in compensation “… does not apply to a council member during the council member's term of office. This prohibition shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one or more members of the city council becomes eligible for a salary increase by virtue of the council member beginning a new term of office. …”; and WHEREAS, the City Council now desires to adjust the compensation of the City Council members in accordance with Government Code Sections 36516 and 36516.5; and WHEREAS, pursuant to Government Code Section 1223, the City Council also desires to formally establish a vehicle allowance, which reflects the estimated travel costs that City Council members would incur in the performance of their official duties; and WHEREAS, the City Council also desires to establish a technology allowance that reflects the estimated technology costs that City Council members would incur in the performance of their official duties, such as use of a cell phone service, internet service, and other similar costs; and C.5.a Packet Pg. 21 At t a c h m e n t : O r d i n a n c e 3 3 7 - C o u n c i l S a l a r y _ A u t o _ T e c h n o l o g y ( A d j u s t C i t y C o u n c i l S a l a r y & E s t a b l i s h V e h i c l e a n d T e c h A l l o w a n c e - 2 N d Ord No. 337 Page 2 of 3 May 10, 2022 WHEREAS, the Attorney General’s Office has opined that these types of allowances must be based upon estimated costs and is codified; and WHEREAS, an analysis of the technology allowance amount is on file with the City’s Finance Department; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES ORDAIN AS FOLLOWS: SECTION 1. Recitals. The City Council hereby 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. Modifications to Section 2.04.020. Section 2.04.020 of Chapter 2.04 of Title 2 of the Grand Terrace Municipal Code is hereby retitled and amended in its entirety as follows: “2.04.020 – Salary and Vehicle Allowance. A. Each member of the City Council shall receive a salary of $480.00 per month. Such salary shall be payable at the same time and in the same manner as the salaries are paid to other City officers and employees. B. Effective July 1, 2022, in lieu of the City’s provision of an automobile to individual Councilmembers for their use in the course of official duties, each member of the City Council shall receive a vehicle allowance in the amount of $450.00 per month as reimbursement for expenses such as gasoline, mileage, wear and tear, insurance, and depreciation, incurred by Councilmembers in the use of their personal automobiles in the course of official duties. Such vehicle allowance shall be payable at the same time and in the same manner as the city council salary. C. Effective July 1, 2022, each member of the City Council shall receive a technology allowance in the amount of $205.00 per month as reimbursement for technology-related expenses such as cellphone service, internet service, and other similar costs incurred by Councilmembers in the use of their personal technology-related equipment and service in the course of official duties. Such technology allowance shall be payable at the same time and in the same manner as the city council salary. D. The City Manager shall place a discussion item on a City Council agenda during the City’s annual budget preparation cycle for the City C.5.a Packet Pg. 22 At t a c h m e n t : O r d i n a n c e 3 3 7 - C o u n c i l S a l a r y _ A u t o _ T e c h n o l o g y ( A d j u s t C i t y C o u n c i l S a l a r y & E s t a b l i s h V e h i c l e a n d T e c h A l l o w a n c e - 2 N d Ord No. 337 Page 3 of 3 May 10, 2022 Council to review and consider adjustments to City Council salary and allowances.” SECTION 3. Government Code Section 36516.5. The salary adjustment provided in Section 2 of this Ordinance shall not become effective until after one or more council members begins a new term of office following the adoption of this Ordinance. Prior to the effective date of such salary adjustment, each council member shall continue to receive the monthly salary as specified in Section 1 of Ordinance No. 252 in the amount of $300 per month. 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 ordinance are declared invalid. SECTION 6. Effective Date of Ordinance. This Ordinance shall become effective thirty (30) days from and after its adoption. SECTION 7. 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 10th day of May 2022. _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney C.5.a Packet Pg. 23 At t a c h m e n t : O r d i n a n c e 3 3 7 - C o u n c i l S a l a r y _ A u t o _ T e c h n o l o g y ( A d j u s t C i t y C o u n c i l S a l a r y & E s t a b l i s h V e h i c l e a n d T e c h A l l o w a n c e - 2 N d AGENDA REPORT MEETING DATE: May 10, 2022 Council Item TITLE: Twenty-Ninth Amendment to Law Enforcement Services Contract No. 94-797 with the County of San Bernardino to Provide Law Enforcement Services for Fiscal Year 2022-23 to the City of Grand Terrace PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: 1. Approve the Twenty-Ninth Amendment to Law Enforcement Services Contract No. 94-797 with the County of San Bernardino to provide Law Enforcement Services from the Sheriffs’ Department for Fiscal Year 2022-23; and 2. Authorize the City Manager to execute the contract, subject to City Attorney’s approval as to form. 2030 VISION STATEMENT: This staff report supports the following goals: • Goal #1, “Ensuring Our Fiscal Viability,” through the continuous monitoring of expenditure budgets, allocations, and operational costs; and • Goal #2, “Maintaining Public Safety,” by ensuring adequate staff levels for police services for our Community. BACKGROUND: Since incorporation, the City has contracted with the County of San Bernardino for law enforcement services provided through the San Bernardino County Sheriff's Department (Exhibit 1 – Original Public Safety Services Contract). Each fiscal year, cities which contract for law enforcement services are required to approve a contract amendment that specifies the level of services for that fiscal year (Exhibit 2 - Schedule "A"). DISCUSSION: As stated in the original 94-797 contract, law enforcement duties to the City shall include: • enforcement of state statutes; • enforcement of city ordinances; C.6 Packet Pg. 24 • traffic enforcement; • specialized enforcement such as arson, homicide, juvenile, and narcotics enforcement; • and attendance at City meetings. These services shall be provided by the County personnel as specified in the attached Proposed Schedule “A.” The City will continue staffing level and hours worked by Sheriff staff as in FY2021-22 as estimated in the table below: Table 1 Personnel Level of Service Hours Per Week Annual Hours Lieutenant 0.21 7.5 390.0 Sergeant 0.90 32.5 1,690.0 Detective 0.56 20.0 1,040.0 Deputy Sheriff 5.76 208.0 10,816.0 Office Specialist 1.26 45.0 2,340.0 Motor Pool Svcs Asst 0.14 5.0 260.0 Dispatchers 0.94 30.0 1,560.0 TOTAL 9.77 348.0 18,096.0 The 29th Amendment to this Agreement (proposed FY2022-23 amendment) updates the cost of law enforcement services that will be provided in FY2022-23 totaling $2,305,996, an increase of $36,679 (1.6%) from the current year’s cost of $2,269,316. The below table shows the final annual contract amounts for law enforcement services over the last five (5) years. Table 2 City of Grand Terrace San Bernardino County Sheriff's Department Annual Contract History 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Final Final Final Final Final Proposed Amount $1,819,337 $1,941,702 $2,071,535 $2,207,992 $2,269,316 $2,305,996 Increase from prior year $122,365 $129,833 $136,457 $61,324 $36,679 Percentage increase 6.726% 6.687% 6.587% 2.777% 1.590% As this is the County’s proposed amendment at this time, it may be subject to change once the County’s Board of Supervisors have approved the department’s final personnel costs. C.6 Packet Pg. 25 FISCAL IMPACT: The Twenty-Ninth Amendment to the Agreement for law enforcement services is a contractual obligation of $2,305,996, of which may be subject to change upon approval of the Board of Supervisors. City staff will propose a $2,305,996 budget allocation FY2022-23 proposed budget for law enforcement services. ATTACHMENTS: • Attachment 1 94-797 Original Public Safety Services Agreement(PDF) • Attachment 2 - 29th Law Enforcement Amendment No. 29 Schedule A (PDF) APPROVALS: Konrad Bolowich Completed 05/02/2022 10:45 AM City Attorney Completed 05/03/2022 10:07 PM Finance Completed 05/04/2022 8:43 AM City Manager Completed 05/02/2022 10:59 AM City Council Pending 05/10/2022 6:00 PM C.6 Packet Pg. 26 C.6.a Packet Pg. 27 At t a c h m e n t : A t t a c h m e n t 1 9 4 - 7 9 7 O r i g i n a l P u b l i c S a f e t y S e r v i c e s A g r e e m e n t ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - 7 9 7 C.6.a Packet Pg. 28 At t a c h m e n t : A t t a c h m e n t 1 9 4 - 7 9 7 O r i g i n a l P u b l i c S a f e t y S e r v i c e s A g r e e m e n t ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - 7 9 7 C.6.a Packet Pg. 29 At t a c h m e n t : A t t a c h m e n t 1 9 4 - 7 9 7 O r i g i n a l P u b l i c S a f e t y S e r v i c e s A g r e e m e n t ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - 7 9 7 C.6.a Packet Pg. 30 At t a c h m e n t : A t t a c h m e n t 1 9 4 - 7 9 7 O r i g i n a l P u b l i c S a f e t y S e r v i c e s A g r e e m e n t ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - 7 9 7 C.6.a Packet Pg. 31 At t a c h m e n t : A t t a c h m e n t 1 9 4 - 7 9 7 O r i g i n a l P u b l i c S a f e t y S e r v i c e s A g r e e m e n t ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - 7 9 7 C.6.a Packet Pg. 32 At t a c h m e n t : A t t a c h m e n t 1 9 4 - 7 9 7 O r i g i n a l P u b l i c S a f e t y S e r v i c e s A g r e e m e n t ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - 7 9 7 C.6.a Packet Pg. 33 At t a c h m e n t : A t t a c h m e n t 1 9 4 - 7 9 7 O r i g i n a l P u b l i c S a f e t y S e r v i c e s A g r e e m e n t ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - 7 9 7 C.6.b Packet Pg. 34 At t a c h m e n t : A t t a c h m e n t 2 - 2 9 t h L a w E n f o r c e m e n t A m e n d m e n t N o . 2 9 S c h e d u l e A ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - C.6.b Packet Pg. 35 At t a c h m e n t : A t t a c h m e n t 2 - 2 9 t h L a w E n f o r c e m e n t A m e n d m e n t N o . 2 9 S c h e d u l e A ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - C.6.b Packet Pg. 36 At t a c h m e n t : A t t a c h m e n t 2 - 2 9 t h L a w E n f o r c e m e n t A m e n d m e n t N o . 2 9 S c h e d u l e A ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - C.6.b Packet Pg. 37 At t a c h m e n t : A t t a c h m e n t 2 - 2 9 t h L a w E n f o r c e m e n t A m e n d m e n t N o . 2 9 S c h e d u l e A ( T w e n t y - N i n t h A m e n d m e n t t o L a w E n f o r c e m e n t C o n t r a c t 9 4 - AGENDA REPORT MEETING DATE: May 10, 2022 Council Item TITLE: Ordinances of the City Council of the City of Grand Terrace, California, Establishing Objective Standards for Implementation of Senate Bill No. 9 Pertaining to Urban Lot Splits and Two-Unit Developments and Updating the City's Regulations for Accessory Dwelling Units and Junior Accessory Dwelling Units PRESENTED BY: Haide Aguirre, Associate Planner RECOMMENDATION: 1. Conduct a public hearing; and 2. Read by title only, waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ESTABLISHING REGULATIONS FOR URBAN LOT SPLITS AND TWO-UNIT DEVELOPMENTS IN ACCORDANCE WITH SENATE BILL 9 which also finds and determines that this ordinance is not a “project” for purposes of California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.21(j) and 66411.7(n); and 3. Read by title only, waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING AMENDMENTS TO REGULATIONS OF ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS, which also finds and determines that this ordinance is exempt from CEQA review pursuant to Public Resources Code Section 21080.17. 2030 VISION STATEMENT: Goal No. 3 to promote economic development by updating zoning and development code in preparation for future development, and to preserve and protect our community and its exceptional quality of life through thoughtful planning. BACKGROUND: On January 25, 2022, the City Council adopted Urgency Ordinance No. 336-U, establishing objective standards for the regulation of lot splits and new units developed under SB 9. The City Council also directed staff to bring back a regular ordinance, specifically, an ordinance that would first receive a review by the Planning Commission/Site and Architectural Review Board (“Planning Commission”) before going E.7 Packet Pg. 38 to City Council. At the same meeting, the City Council also directed City staff to prepare updates to the City’s regulations on accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs). The City’s ADU and JADU regulations have not been updated since 2017. Since then, state law has been amended significantly, as the state continues to adopt regulations aimed at forcing City’s to allow more density and to create additional housing options. On March 3, 2022, the Planning Commission reviewed proposed SB 9 and ADU regulations and recommended that the City Council approve the regulations with a 4-0 vote. The Planning Commission also recommended that additional regulations and clarifications be added regarding sewer and onsite wastewater treatment systems, water line connections, and additional parking requirements. On March 22, 2022, the City Council considered the proposed SB 9 and ADU ordinances and decided to continue the item in order to hold a joint workshop with the Planning Commission to further discuss the proposed regulations. On April 21, 2022, the City Council and Planning Commission held a joint session and further discussed the proposed SB 9 and ADU regulations. Staff has incorporated the comments from that meeting, and from the prior meetings of the City Council and Planning Commission into the proposed ordinances presented with this report. DISCUSSION: SB 9 Ordinance SB 9 has two primary effects on City land use regulations. First, it requires cities to permit up to two primary residences on each parcel in single-family residential zones, where previously only one primary residence would be allowed. When combined with ADUs, this means that a parcel in a single-family residential zone could have up to 4 dwelling units, if it was not created through an SB 9 lot split. Second, SB 9 requires cities to permit owners of single-family residential lots to split their lots in half and create two separate smaller parcels, even if the resulting lots are smaller than the minimum lot size otherwise allowed. New lots resulting from an SB 9 lot split may only have up to two units on them, inclusive of ADUs and JADUs. State law establishes many requirements, but also allows cites to impose additional objective standards that do not conflict with state law. The following tables show the mandated state requirements and additional objective standards that City staff are proposing: SB 9 Lot Splits State Requirements 1. Only allowed in single-family residential zones - RH, R1-20, R1-10, and R1-7.2 zones. E.7 Packet Pg. 39 2. Not allowed on parcels that are located in or on certain kinds of protected farmland; wetlands; high fire severity zones (subject to some exceptions); hazardous waste sites; earthquake fault zones; flood hazard areas; habitat for protected species; or land under a conservation easement. 3. Not allowed in historic districts 4. City may deny a proposed SB 9 lot split if the building official makes a written finding based upon a preponderance of the evidence, that the proposed project would have a specific adverse impact (as defined) upon public health and safety or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 5. Resulting lots must be at least 40% of the size of the original lot and must be at least 1,200 square feet. 6. An urban lot split cannot be used to split a lot that was previously split by an urban lot split. 7. An urban lot split cannot require or allow the demolition or alteration of any of the following types of housing: (a) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (b) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (c) Housing that has been occupied by a tenant in the last three years. 8. Vacant lots are not eligible for urban lot split, unless the owner of the lot is a community land trust or qualified nonprofit corporation as defined by state law. 9. Lots resulting from urban lot splits can only be used for residential uses. 10. Owner of the property must sign an affidavit stating intent to occupy a unit on one of the resulting parcels as their primary residence for three years after approval of lot split, unless the owner is a community land trust or qualified nonprofit corporation as defined by state law. 11. Resulting lots must have access to right-of-way and must dedicate easements for utilities and public facilities. 12. Units built on resulting parcels cannot be rented for terms of less than 31 days (no short-term rentals). 13. Resulting parcels may only have up to two units on them (including ADUs and JADUs). 14. Lot splits must comply with all requirements of the Subdivision Map Act and all other City standards for lot splits. 15. Urban lots splits will be ministerially approved without a public hearing. E.7 Packet Pg. 40 Additional City Standards 1. City will mail a courtesy notice to the owner(s) of each property immediately adjacent to the property where the proposed lot split will be located informing the owner(s) of the submitted application. 2. The dividing line between the two resulting parcels must be a single straight line extending from the right-of-way to the rear lot line. 3. The owner of the parcel to be divided must execute a deed restriction, which will be recorded on each of the resulting parcels, at the property owner’s cost, and will limit the use of each parcel in accordance with the standards in the City’s ordinance. SB 9 Units State Requirements 1. Only allowed in single-family residential zones - RH, R1-20, R1-10, and R1-7.2 zones. 2. Not allowed on parcels that are located in or on certain kinds of protected farmland; wetlands; high fire severity zones (subject to some exceptions); hazardous waste sites; earthquake fault zones; flood hazard areas; habitat for protected species; or land under a conservation easement. 3. Not allowed in historic districts. 4. City may deny a proposed SB 9 development if the building official makes a written finding based upon a preponderance of the evidence, that the proposed project would have a specific adverse impact (as defined) upon public health and safety or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. 5. An SB 9 development cannot require or allow the demolition or alteration of any of the following types of housing: (a) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (b) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (c) Housing that has been occupied by a tenant in the last three years. 6. SB 9 developments will be ministerially approved without a public hearing. 7. City can only impose up a 4 foot rear and side setback for SB 9 units. 8. City can only require one parking spot per SB 9 units, with some exceptions. E.7 Packet Pg. 41 9. City cannot enforce standards that would prevent up to two primary units that are at least 800 square feet each. 10. Maximum of two primary units are allowed on property, plus ADUs/JADU. 11. SB 9 units cannot be rented for terms of less than 31 days (no short-term rentals). Additional City Standards 1. City will mail a courtesy notice to the owner(s) of each property immediately adjacent to the property where the proposed SB 9 development will be located informing the owner(s) of the submitted application. 2. SB 9 developments will be approved thought the administrative site and architectural review process. 3. Units built under SB 9 will not have a maximum size. They will instead be limited by development standards including setbacks, maximum lot coverage requirements, and a minimum distance between detached structures. Regardless of these standards, the City must allow units to be at least 800 square feet as long as they meet a 4-foot rear and side yard setback. A second unit may not be larger than an existing primary unit on the same lot. 4. Units created under SB 9 are limited to two (2) stories, or to one (1) story if built on top of a one-story structure. 5. Must have at least 15 feet of separation between SB 9 units and other detached units on a parcel. 6. There must be at least four (4) feet of unobstructed space adjacent to each exterior wall of a second unit and each unit of a two-unit development in order to ensure that the unit is accessible by public safety personnel. This space shall remain unobstructed at all times. 7. City will require sewer line inspection to determine the capacity of existing sewer lines and/or the onsite wastewater treatment system on the parcel. Wastewater systems within 200 feet of an existing sewer line will be required to disconnect from the wastewater treatment system and be connected to the sewer. Compliance with the California Plumbing Code and the Santa Ana Regional Water Quality Control Board and/or other objective City sewer or septic system requirements will be required. If a parcel relies on an onsite wastewater treatment system and there is not space to accommodate a new onsite treatment for replacement, the City shall require all existing units on the parcel to disconnect from the wastewater treatment system and connect to the sewer. If disconnection of an existing wastewater system and connection to the sewer is not possible, then the building official, or designee shall consider whether such circumstances are grounds for denial of the proposed project pursuant to Section E.7 Packet Pg. 42 18.65.020C. 8. Each unit created under SB 9 shall have an unobstructed pathway, constructed of impermeable materials, leading up to its main entrance, sufficient to provide access to the unit by public safety personnel and the resident of the unit. 9. Design of second units must match the primary unit. Flat roofs will not be allowed. The roof shall have a minimum 16-inch overhang, except that the outermost edge of the roof shall be at least three (3) feet from any side or rear lot line. 10. SB 9 units may not be turned into condos or sold separately from other units on the property. 11. Owner must execute deed restriction limiting use of units as required by state law and City ordinance. 12. SB 9 units are required to pay development impact fees, in an amount established by the City Council. 13. SB 9 units will be assumed to be rentals and will be subject to City’s Non-Owner Occupied/Rental Property Program. 14. New SB 9 units are required to have a separate connection to the water service line and comply with the Riverside Highland Water Company requirements. 15. One new on-site off-street parking space per each new unit is required. Such parking spaces shall be in addition to all existing parking spaces on the parcel. ADU Ordinance As with SB 9, many of the standards for ADUs/JADUs are established by state law, but the state does allow cities to establish regulations that do not conflict with state law. The following table shows the mandated state requirements and additional standards that City staff are proposing: ADU/JADU Regulations State Requirements 1. ADUs are permitted in single-family, multifamily, and mixed-use zones, and on properties with single-family and multifamily units. 2. Must be approved ministerially without a public hearing. 3. Parcel with one or more single-family dwelling can have one ADU; parcel with a multifamily dwelling can have two ADUs (or more for parcels with more than 8 multifamily units). 4. JADUs must be completely within a single family dwelling and are only allowed on parcels that have only one single-family dwelling and E.7 Packet Pg. 43 no multi-family dwellings. 5. City can only impose up a 4 foot rear and side setback for ADUs. 6. ADUs can be attached to, detached from, or built within other dwelling structures, or be created by converting non-habitable structures. 7. ADUs must have complete independent living facilities and can only be limited to 850 sf for studio/one-bedroom units and 1,000 sf for units with two or more bedrooms. 8. JADUs must have independent living facilities except that they can share a bathroom with the primary unit and only have to have an efficiency kitchen; they are limited to 500 square feet. 9. City cannot impose owner-occupancy requirements on ADUs, but if property has a JADU, owner must either live in JADU or primary dwelling. 10. ADUs and JADUs cannot be sold separately from other units on property (with one minor exception). 11. Only one parking space can be required for ADUs (with some exceptions) and no additional parking can be required for JADUs. 12. A deed restriction must be recorded for a JADU requiring compliance with state law regulations. Additional City Standards 1. The minimum size will be an efficiency unit (220 square feet). JADUs will be limited to 500 square feet. ADUs built inside primary units or existing accessory structures will not have a maximum size limit. Attached and detached ADUs will not have a maximum size limit but will instead be limited by development standards including setbacks, maximum lot coverage requirements, and a minimum distance between detached structures. Regardless of these standards, the City must allow units to be at least 800 square feet as long as the ADU meets a 4-foot rear and side yard setback. An ADU may not be larger than an existing primary unit on the same lot. 2. ADUs are limited to two (2) stories, or to one (1) story if built on top of a one-story structure. 3. Detached accessory dwelling units shall have a minimum wall separation from the primary unit(s) of fifteen (15) feet. 4. City will require sewer line inspection to determine the capacity of existing sewer lines and/or the onsite wastewater treatment system on the parcel. Wastewater systems within 200 feet of an existing sewer line will be required to disconnect from the wastewater treatment system and be connected to the sewer. Compliance with the California Plumbing Code and the Santa Ana Regional Water Quality Control Board and/or other objective City sewer or septic system requirements E.7 Packet Pg. 44 will be required. If a parcel relies on an onsite wastewater treatment system and there is not space to accommodate a new onsite treatment for replacement, the City shall impose conditions of approval on the development that are necessary to ensure compliance with such requirements. 5. There shall be at least four (4) feet of unobstructed space adjacent to each exterior wall of an accessory dwelling unit in order to ensure that the unit is accessible by public safety personnel. This space shall remain unobstructed at all times. 6. Each accessory dwelling unit and junior accessory dwelling unit shall have an unobstructed pathway, constructed of impermeable materials, leading up to its main entrance, sufficient to provide access to the unit by public safety personnel and the resident of the unit. However, the pathway is not required to extend from the unit all the way to the street. 7. Design of ADUs must match primary unit. Ordinance establishes specific development and design standards for manufactured homes used as ADUs. Flat roofs are not allowed. The roof shall have a minimum 16-inch overhang, except that the outermost edge of the roof shall be at least three (3) feet from any side or rear lot line. 8. ADUs and JADUs cannot be used for short-term rentals (less than 31 days). 9. ADUs/JADUs will be assumed to be rentals and will be subject to City’s Non-Owner Occupied/Rental Property Program. 10. Establishes requirements for number of ADUs allowed on a property with both a single-family and multifamily residence since state law is silent on this issue. 11. ADUs above 750 sf are required to pay development impact fees, in an amount established by the City Council 12. ADUs/JADUs will be approved thought the administrative site and architectural review process. 13. New SB 9 units are required to have a separate connection to the water service line and comply with the Riverside Highland Water Company requirements. 14. One new on-site off-street parking space per each new unit is required. Such parking spaces shall be in addition to all existing parking spaces on the parcel. 15. Accessory dwelling units and junior accessory dwelling units shall have their own address, which shall be the address of the primary unit with the addition of a letter (A, B, C, etc.). Adoption of the proposed ordinances would repeal Urgency Ordinance No. 336-U and replace its amendments with the new amendments in the proposed ordinances. E.7 Packet Pg. 45 If the ADU ordinance is adopted, the city will be required to submit the ordinance to the Department of Housing and Community Development as required by state law. ENVIRONMENTAL REVIEW: The adoption of SB 9 regulations is not a “project” for purposes of the California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.21(j) and 66411.7(n). Additionally, the adoption of an ordinance regarding second units (ADUs) in a single-family or multifamily residential zone to implement the provisions of Government Code Sections 65852.2 and 65852.22 is exempt from CEQA review pursuant to Public Resources Code Section 21080.17. Therefore, the proposed ordinances do not require any environmental review under CEQA. FISCAL IMPACT: There will be no expenditure on the part of the city to adopt this ordinance. The cost to administer this ordinance is currently unknown, but such costs will be recovered, at least in part, through application fees. RECOMMENDATION: Staff recommends the City Council read by title only, waive further reading and Introduce (1) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ESTABLISHING REGULATIONS FOR URBAN LOT SPLITS AND TWO- UNIT DEVELOPMENTS IN ACCORDANCE WITH SENATE BILL 9, and (2) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING AMENDMENTS TO REGULATIONS OF ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS. ATTACHMENTS: • SB 9 Ordinance_Grand Terrace_ 5.2.22 (DOCX) • ADU Ordinance_Grand Terrace_ 5.2.22 (DOCX) • 336-U (PDF) APPROVALS: Haide Aguirre Completed 05/02/2022 6:47 PM City Attorney Completed 05/04/2022 12:02 PM City Manager Completed 05/03/2022 8:36 AM City Council Pending 05/10/2022 6:00 PM E.7 Packet Pg. 46 01247.0005/787276.1 1 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ESTABLISHING REGULATIONS FOR URBAN LOT SPLITS AND TWO-UNIT DEVELOPMENTS IN ACCORDANCE WITH SENATE BILL 9 WHEREAS, the City Council adopted Urgency Ordinance 336-U on January 25, 2022, establishing objective standards and regulations regarding second units, two-unit developments, and urban lot splits authorized by SB 9; and WHEREAS, out of an abundance of caution, the City Council now wishes to adopt the same regulations through the regular ordinance process, and also wishes to make certain revisions to the previously adopted SB 9 regulations; and WHEREAS, the Planning Commission considered this ordinance at the Planning Commission Noticed Public Hearing meeting held on March 3, 2022, and voted unanimously 4-0 adopting a resolution recommending City Council approval; and WHEREAS, on April 21, 2022, the City Council and Planning Commission held a joint session to further discuss proposed SB 9 and accessory dwelling unit regulations; and WHEREAS, on May 10, 2022 the City Council of the City of Grand Terrace conducted a duly noticed public hearing at the Grand Terrace City Hall Council Chambers located 22795 Barton Road and conclude the hearing on said date; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Recitals. The above recitals are incorporated by reference. SECTION 2. CEQA. The City Council finds and determines that these ordinance amendments are not a “project” for purposes of California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.21(j) and 66411.7(n), and therefore do not require any environmental review under CEQA. SECTION 3. Urgency Ordinance 336-U is hereby repealed in its entirety and all changes to the Grand Terrace Municipal Code made therein are hereby repealed. SECTION 4. Section 17.04.040, subjection H, of the Grand Terrace Municipal Code is hereby amended as follows with the remainder of Section 17.04.040 remaining unchanged (deletions in bold strikethrough; additions in bold italics): H. The construction, financing or leasing of dwelling units pursuant to California Government Code Section 65852.1 or second accessory dwelling units pursuant to California Government Code Section 65852.2; but this Title shall apply to the sale or transfer, but not the leasing of those units; E.7.a Packet Pg. 47 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 2 SECTION 5. Table 17.04.050 (Review, approval and appeal body) is hereby amended as follows (additions in bold italics): Table 17.04.050 Review, approval and appeal body TYPE OF ACTION REVIEW BODY APPROVAL BODY APPEAL BODY Tentative maps Planning Commission City Council N/A Vesting tentative maps Planning Commission City Council N/A Tentative parcel maps Planning Commission City Council N/A Tentative map extensions City staff and other responsible agencies Director Planning Commission Parcel maps (4 or less lots) City staff and other responsible agencies City Council N/A Final maps (5 or more lots) City staff and other responsible agencies City Council N/A Waivers of parcel maps City staff and other responsible agencies City Engineer Planning Commission Urban Lot Splits City staff and other responsible agencies City Engineer Planning Commission Reversion to acreage Planning Commission City Council N/A Lot and parcel mergers City staff and other responsible agencies Director Planning Commission Lot line adjustments City staff and other responsible agencies Director Planning Commission Certificate of Compliance City staff and other responsible agencies City Engineer Planning Commission SECTION 6. Section 17.08.020 of the Grand Terrace Municipal Code is hereby amended to add a definition of “Urban lot split” as follows, with all other definitions in Section 17.08.020, except those shown below, remaining unchanged (deletions in bold strikethrough; additions in bold italics): GG. “Urban lot split” shall mean the division of a single parcel into two separate parcels in compliance with the provisions of Chapter 17.30 (Urban Lot Splits). GG. HH. “Vesting tentative map” shall mean a tentative map prepared in accordance with the provisions of this Title that shall have printed conspicuously on its face the words "Vesting Tentative Map" at the time it is filed. E.7.a Packet Pg. 48 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 3 HH. II. “Zoning code” shall mean Title 18 of the Grand Terrace Municipal Code, including all text and maps, as it may be amended from time to time. SECTION 7. Chapter 17.30 (Urban Lot Splits) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): Chapter 17.30 - URBAN LOT SPLITS 17.30.010 - Purpose. The purpose of this chapter is to establish procedures and standards for urban lot splits in accordance with the requirements of Government Code Section 66411.7. 17.30.020 - Permitted applicants; ministerial review; standard for denial; courtesy notice. A. Only individual property owners may apply for an urban lot split. “Individual property owner” means a natural person holding fee title individually or jointly in the person’s own name or as a beneficiary of a trust that holds fee title. “Individual property owner” does not include any corporation or corporate person of any kind (partnership, LP, LLC, C corp, S corp, etc.) except for a “community land trust,” as defined in Revenue and Taxation Code Section 402.1(a)(11)(C)(ii), or a “qualified nonprofit corporation” as described in Revenue and Taxation Code Section 214.15. B. Notwithstanding any other provision of this code, an application for an urban lot split shall be considered ministerially, without discretionary review or a hearing, and shall be approved if it meets all of the requirements of this chapter. C. An application for an urban lot split shall be approved or denied by the City Engineer, and the decision may be appealed in accordance with Section 17.16.150. D. Notwithstanding subsection B, the City may deny an application for an urban lot split if the building official, or designee, makes a written finding, based upon a preponderance of the evidence, that the proposed urban lot split would have a specific, adverse impact, as defined in subsection (d)(2) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. E. At least seven (7) days prior to making a determination on an application for an urban lot split, the City Engineer shall mail a courtesy notice to the E.7.a Packet Pg. 49 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 4 owner(s) of each property immediately adjacent to the property where the proposed lot split will be located informing the owner(s) of the submitted application. 17.30.030 - Parcel requirements. The parcel that is proposed for subdivision through an urban lot split: A. Shall be located in an RH, R1-20, R1-10, or R1-7.2 zoning district; B. Shall have at least one residential dwelling unit located on it on the date that the urban lot split is approved, unless the parcel is owned by a “community land trust,” as defined in Revenue and Taxation Code Section 402.1(a)(11)(C)(ii), or a “qualified nonprofit corporation” as described in Revenue and Taxation Code Section 214.15; C. Shall only have residential uses located on it on the date the urban lot split is approved; D. Shall not be located on a parcel that is any of the following, as more particularly described and defined in Government Code Section 65913.4(a)(6)(B) through (a)(6)(K): 1. Prime farmland, farmland of statewide importance, or land zoned or designated for agricultural protection by an approved local ballot measure; 2. Wetlands; 3. Within a very high fire hazard severity zone as determined by the Department of Forestry and Fire Protection, unless the site has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures; 4. A hazardous waste site that has not been cleared for residential use; 5. Within a delineated earthquake fault zone unless the development complies with all applicable state and local seismic protection building code standards; 6. Within a special flood hazard area subject to inundation by a 100- year flood, unless: E.7.a Packet Pg. 50 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 5 a. The site has been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the city; or b. The site meets Federal Emergency Management Agency requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program; 7. Within a regulatory floodway, unless the development has received a no-rise certification; 8. Lands identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan; 9. Habitat for protected species; or 10. Land under a conservation easement; E. Shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, or within a site that is designated or listed as a City or county landmark or historic property or district pursuant to a City or county ordinance; F. Shall not have been created through a previous urban lot split; and G. Shall not be adjacent to a parcel that was previously subdivided through an urban lot split by the owner of the parcel on which the urban lot split is proposed or any person acting in concert with the owner. 17.30.040 - Additional requirements. A. An urban lot split shall subdivide an existing parcel to create no more than two new parcels of approximately equal lot area, provided that: 1. Neither resulting parcel shall be smaller than 40 percent of the lot area of the original parcel proposed for subdivision; 2. Neither resulting parcel shall be smaller than 1,200 square feet; and 3. The dividing line between the two resulting parcels shall be a single straight line extending from the right-of-way to the rear lot line. E.7.a Packet Pg. 51 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 6 B. An urban lot split shall not result in the creation of a parcel with more than two existing units, as defined in Section 17.30.060. C. An urban lot split shall not require or allow the demolition or alteration of any of the following types of housing: 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. 2. Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. 3. A parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. 4. Housing that has been occupied by a tenant in the last three years. D. As a condition of approval for an urban lot split, the owner of the parcel being split shall sign an affidavit, in a form approved by the City Attorney, stating that: 1. The proposed urban lot split will not violate the requirements of subsection C of this section; 2. Neither the owner, nor any person acting in concert with the owner, has previously subdivided an adjacent parcel using an urban lot split; and 3. The owner intends to occupy a residential dwelling unit on one of the parcels created by the urban lot split as their primary residence for a minimum of three years from the date of the approval of the urban lot split. This subsection D.3 shall not apply if the owner of the parcel is a “community land trust,” as defined in Revenue and Taxation Code Section 402.1(a)(11)(C)(ii), or a “qualified nonprofit corporation” as described in Revenue and Taxation Code Section 214.15. E. As a condition of approval of an urban lot split, the owner shall dedicate all easements over the resulting parcels required for the provision of public services and facilities, as determined by the City Engineer. E.7.a Packet Pg. 52 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 7 F. Each parcel resulting from an urban lot split shall have access to or adjoin the public right-of-way, and, if necessary, provide the other parcel with access to the right-of-way through an easement. G. The City shall not require as a condition of approval of an urban lot split: 1. Dedications of rights-of-way or the construction of offsite improvements; or 2. The correction of non-conforming zoning conditions existing on the parcel that will be divided. H. An urban lot split: 1. Shall conform with all the requirements of the Subdivision Map Act; and 2. Shall conform with all the requirements applicable to lot splits under this code, except for those requirements that conflict with the requirements of this chapter, in which case the provisions of this chapter shall control. 17.30.050 - Limitations applicable to new parcels. A. Parcels created by an urban lot split shall only be used for residential uses, notwithstanding the fact that other uses may be permitted in the zoning district in which the parcels are located. B. Residential units constructed on parcels created by an urban lot split shall not be rented for a term of less than thirty-one (31) consecutive days. C. A parcel created through an urban lot split may not be further subdivided by a subsequent urban lot split. D. Separate conveyance of the lots resulting from an urban lot split is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the urban lot split boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, the owner must record appropriate CC&Rs, easements, or other documentation that is necessary to allocate rights and responsibilities between the owners of the two lots. E.7.a Packet Pg. 53 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 8 17.30.060 - Limitation on number of units. Notwithstanding any other provision of this code, no more than two units are permitted on any parcel created by an urban lot split. For the purposes of this section, “unit” means any dwelling unit, including, but not limited to, a primary dwelling unit, a unit or units created pursuant to Chapter 18.65 (Second Units and Two-Unit Developments), an accessory dwelling unit, or a junior accessory dwelling unit. 17.30.070 - Deed restriction. As a condition of approval of an urban lot split, the owner of the parcel to be divided shall execute a deed restriction, in a form approved by the city attorney, which shall be recorded on each of the resulting parcels, at the property owner’s cost, and shall limit the use of each parcel in accordance with the standards of this chapter. Violation of the deed restriction shall be considered a violation of this code and may be enforced in a manner that this code may be enforced. SECTION 8. Section 18.06.020 (Accessory structure) is hereby renumbered to Section 18.06.025, and Section 18.06.025 (Accessory living quarters) is hereby renumbered to Section 18.06.020, so as to put these two definitions in alphabetical order. SECTION 9. Section 18.06.083 (Single-family detached) is hereby deleted in its entirety. SECTION 10. Section 18.06.246 (Dwelling, single-family detached) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.246 - Dwelling, single-family detached. “Single-family detached dwelling” means one residential structure containing no more than one dwelling and complying with a minimum living area requirement of one thousand three hundred fifty square feet. It shall also be known as a full sized single-family unit or single-family dwelling. SECTION 11. Section 18.06.683 (Second unit) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.683 - Second unit. “Second unit” means a second residential dwelling unit, other than an accessory dwelling unit or junior accessory dwelling unit, on a parcel with one and only one existing primary dwelling unit. SECTION 12. Section 18.06.929 (Two-unit development) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.929 - Two-unit development. “Two-unit development” means the simultaneous development of two new residential dwelling units on a parcel with no existing primary dwelling units. E.7.a Packet Pg. 54 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 9 SECTION 13. Table 18.10.030 of the Grand Terrace Municipal Code shall be amended, a new footnote (e) shall be added to multiple uses under “Other Uses,” footnote (e) shall be amended, and a new footnote (g) shall be added, as follows (deletions in bold strikethrough; additions in bold italic): TABLE 18.10.030 LAND USE REGULATIONS Permitted Uses RH R1- 20 R1- 10 R1- 7.2 R2 R3 R3- S R3- 20/R3- 24 A. Residential Uses Single-Family (Detached), Full Sized P P P P Pa Pb - - Second Units (Subject to Chapter 17.30 and 18.65) Pg Pg Pg Pg - - - - Two-Unit Developments (Subject to Chapter 17.30 and 18.65) Pg Pg Pg Pg - - - - Single-Family (Attached) (Duplexes, Triplexes, and Fourplexes) - - - - P P - P Multiple Family Units - - - - P P - P Manufactured Housing (As Permitted Per Chapter 18.66) P P P P P P - - Mobile Home Park - - - - C C - - Senior Citizen Housing Pd P B. Residential Accessory Structures Accessory Structure P P P P P P Pd P Second-Family Unite (As Permitted Per Chapter 18.63) P P P P P P - - Accessory Dwelling Unit (Subject to Chapter 17.30 and 18.69) P P P P P P P P Junior Accessory Dwelling Unit (Subject to Chapter 17.30 and 18.69) P P P P P P - - Guest House C C C C C C - - Private Garage P P P P P P - P Private Swimming Pool P P P P P P Pd P Home occupation (As Permitted Per Chapter 5.06) P P P P P P Pd P Keeping of Cats and Dogs (Maximum of Two Each) P P P P P P Pd P Other Accessory Uses (As Approved by the Planning Director) P P P P P P Pd P C. Other Uses Churches (Minimum Three-Acre Parcel)e C C C C C C - - Schools (Private and Parochial)e C C C C C C - - Public Park and Playgrounde P P P P P P - - Public Facilities (And Quasi- Public)e C C C C C C - - Family Day Care (Eight or Less Children)e P P P P P P - - Family Day Care Center (Nine or More Children)e C C C C C C - - Residential Care Facility (Six or Less Persons) P P P P P P P P Residential Care Facility (Seven or More Persons)f C C - - Single Room Occupancy C C - - Utility or Service Facilitye C C C C C C - - Outdoor Recreation Facilitye C C C C C C - - D. Temporary uses Temporary Uses (As approved by Planning Director) P P P P P P Pd P Temporary Trailers (As Approved by Planning Director) P P P P P P Pd P E.7.a Packet Pg. 55 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 10 Footnotes: a. A second single-family detached unit (full-sized single-family detached dwelling) shall be permitted in the R2 zone provided that the lot or parcel in question meets the minimum area requirement for the R2 zone and that said lot or parcel is developed with no more than one single-family detached dwelling. A site and architectural review application for the second- family detached unit in accordance with Chapter 18.63 of the Zoning Code shall be required to be approved prior to the issuance of building permits. In addition, all development standards of the underlying zone must be adhered to; and any division in ownership among the structures on the lot or parcel in question shall conform to the subdivision laws of the state and city. b. A second-family detached unit (full sized single-family detached dwelling) shall be permitted in the R3 zone provided that the lot or parcel in question meets the minimum area requirements for the R3 zone and that said lot or parcel is developed with no more than one single-family detached dwelling. A site and architectural review application for the second- family detached unit in accordance with Chapter 18.63 of the Zoning Code shall be required to be approved prior to the issuance of building permits. In addition, all development standards of the underlying zone must be adhered to; and any division in ownership among the structures on the lot or parcel in question shall conform to the subdivision laws of the state and city. c. "P" stands for "Permitted Use" where the use is permitted by right; and "C" stands for "Conditional Use" where the use requires a conditional use permit. d. Senior citizen housing is allowed in the R3-S up to a maximum density of twenty unit/acre. A specific plan will be required for all senior citizen housing projects in this zone. Some accessory and temporary uses as indicated will be allowed in the R3-S zone with the approval of the Community Development Director. e. Subject to administrative site and architectural review. Notwithstanding anything indicating otherwise in this Table, this use is prohibited on a parcel that was created by an urban lot split, pursuant to Section 17.30.050(A). f. Subject to administrative conditional use permit. g. Notwithstanding anything indicating otherwise in this Table, this use shall be prohibited if the finding of a specific, adverse impact is made in accordance with Section 18.65.020(C). SECTION 14. Chapter 18.60.030, subsection A, of the Grand Terrace Municipal Code is hereby amended as follows (additions in bold italics): The requirements for off-street parking shall be as follows: A. Residential Uses. 1. Single-family dwellings (detached): E.7.a Packet Pg. 56 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 11 a. Two parking spaces for each residential unit shall be provided on the same parcel of land as the residential unit, b. The required spaces shall be located within a garage; 2. Multiple-family dwellings: a. One parking space for each studio or efficiency unit. b. Two parking spaces for each one-, two- or three-bedroom unit. c. Three parking spaces for each four-bedroom unit or more. d. At least one space shall be located within a garage or carport, and all required spaces shall be located within 150 feet of the unit being served. e. Guest parking shall be provided at a ratio of 0.25 spaces for each residential unit, and shall be rounded up to the next whole number. f. Guest parking: (i) Shall be identified as "Guest Parking"; (ii) Shall not be used for the storage of recreational vehicles, boats, trailers or other similar items; (iii) Shall be located on the same parcel of land as the residential units and shall be within reasonable walking distance of said units; (iv) May be uncovered spaces; and (v) May be located on a private street within the site or in a common parking area. 3. Second units and two-unit developments: See Chapter 18.65. 4. Accessory dwelling units and junior accessory dwelling units: See Chapter 18.69. SECTION 15. Subsections B and C of Section 18.63.020 of the Grand Terrace Municipal Code are hereby amended as follows (additions in bold italics): B. Land Use Application. The purpose of this section is to empower the community development director or representative with responsibilities for site and architectural review of minor items, yet which may have potential to adversely affect the environment. Noticing to adjacent property owners E.7.a Packet Pg. 57 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 12 will be at the discretion of the community development director, with the exception of satellite dishes. 1. Land use application, regardless of need for a permit, shall be required in the event any of the following actions or construction occur: a. Any new construction exceeding six feet in height; b. Any remodeling or renovation of a structure which results in: i. A change in use or intensity of use (includes any proposed use of a structure which has been vacant for a period of six months or more), or ii. An increase in building size (including bulk area and floor area), or iii. Increased capacity, or iv. Additional street access; c. Plan check or clearance of building plans including, but not limited to: swimming pools, spas, patio covers, enclosures, all types of accessory structures, walls, fences and other structures which do not require administrative or formal site and architectural review. 2. The following items may be approved by the planning director without going to the site and architectural review board: a. Sunrooms, provided they strictly meet the planning commission setback policies, UBC and other construction code regulations; b. Satellite dish antennae, provided they can be screened from the street in accordance with code and design standards. Notice including location map or site plan shall be mailed to adjacent property owners requesting comments at least two weeks in advance of the Planning Director's decision; c. Overhead decks, provided they strictly meet the Planning Commission design guidelines; d. Ground floor additions to existing residential structures located in an R1 district where the addition is less than 500 square feet gross floor area and the exterior design and materials of the addition match the exterior design and materials of the existing structure; E.7.a Packet Pg. 58 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 13 e. Fences or walls which do not meet Section 18.73.070; f. All construction of elevated decks; g. Construction of playhouses according to Section 18.63.110 of this Chapter; h. Temporary uses with insignificant adverse, long-term impact on the environment, i.e., parking lot sales, rummage sales, Christmas tree sales, seasonal sales and others in the commercial and industrial areas other than residential areas; i. In the case of damaged or partially damaged structures due to fire, earthquake, explosion or other natural disasters, and the structure will be reconstructed in the exact condition prior to the disaster and in conformance with applicable City codes and the Zoning Code. j. Accessory dwelling units that comply with Chapter 18.69. Any item which could not be satisfactorily reviewed at staff level may be subject to site and architectural review at the discretion of the Community Development Director. The Community Development Director's decisions shall be final unless appealed to the Planning Commission within ten calendar days. Appeals shall be filed with the Planning Department and follow similar rules as the appeals to the City Council (Section 18.63.070). C. Administrative Site and Architectural Review Application. The purpose of this application is to allow staff level review of projects of medium scale and impact without the need for a public hearing, related costs and noticing procedures. The following items may be approved by the Planning Director without going to the Site and Architectural Review Board. However, the plans must be routed to all reviewing agencies and notices shall be mailed to adjacent property owners requesting comments within two weeks. The Planning Director’s decisions shall be final unless appealed to the Planning Commission within ten calendar days. Appeals shall be filed with the Planning Department and follow similar rules as the appeals to the City Council (Section 18.63.070). 1. All accessory structures, except: a. Structures with 65 percent or more of the square footage of the main residence living area. Living area does not include porches, patios, carports, garages, storage areas, or auxiliary rooms; E.7.a Packet Pg. 59 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 14 b. Structures 1,200 square feet or more in size; c. Structures with lot coverage higher than 25 percent; 2. All room additions, except room additions with 65 percent or more of the square footage of the main residence living area. Living area does not include porches, patios, carports, garages, storage areas, or auxiliary rooms; 3. Large scale temporary uses of insignificant adverse impact on the environment, i.e., parking lot sales which require review by fire, health and other agencies; 4. In case of damaged structures due to fire, earthquakes, or other natural disasters where the structure will be reconstructed with alterations but not sufficient to trigger a public hearing. 5. Developments within the R3-24 and R3-24 Overlay districts. Such developments shall not constitute a “project” for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. 6. Applications for second units and two-unit developments in accordance with Chapter 18.65. 7. Applications for accessory dwelling units and junior accessory dwelling units in accordance with Chapter 18.69. SECTION 16. Chapter 18.65 (Second Units and Two-Unit Developments) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): Chapter 18.65 - SECOND UNITS AND TWO-UNIT DEVELOPMENTS 18.65.010 - Purpose. The purpose of this chapter is to establish procedures and standards for the approval and creation of second units and two-unit developments in accordance with the requirements of Government Code Section 65852.21. 18.65.020 - Ministerial review; standard for denial; courtesy notice. A. Notwithstanding any other provision of this code, an application for a second unit or a two-unit development shall be considered ministerially, without discretionary review or a hearing, and shall be approved if it meets all of the requirements of this chapter. B. An application for a second unit or a two-unit development shall be reviewed by the Planning Director through the administrative site and E.7.a Packet Pg. 60 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 15 architectural review process, as described in Chapter 18.63, and the decision may be appealed in accordance with Section 18.63.020(C). C. Notwithstanding subsection A, the City may deny an application for a second unit or two-unit development if the building official, or designee, makes a written finding, based upon a preponderance of the evidence, that the proposed second unit or two-unit development would have a specific, adverse impact, as defined in subsection (d)(2) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. D. At least seven (7) days prior to making a determination on an application for a second unit or two-unit development, the Planning Director shall mail a courtesy notice to the owner(s) of each property immediately adjacent to the property where the proposed development will be located informing the owner(s) of the submitted application. 18.65.030 – General requirements. Proposed second units and two-unit developments: A. Shall be located in the RH, R1-20, R1-10, or R1-7.2 zoning district; B. Shall not be located on a parcel that is any of the following, as more particularly described and defined in Government Code Section 65913.4(a)(6)(B) through (a)(6)(K): 1. Prime farmland, farmland of statewide importance, or land zoned or designated for agricultural protection by an approved local ballot measure; 2. Wetlands; 3. Within a very high fire hazard severity zone as determined by the Department of Forestry and Fire Protection, unless the site has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures; 4. A hazardous waste site that has not been cleared for residential use; 5. Within a delineated earthquake fault zone unless the development complies with all applicable state and local seismic protection building code standards; E.7.a Packet Pg. 61 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 16 6. Within a special flood hazard area subject to inundation by a 100- year flood, unless: a. The site has been subject to a Letter of Map Revision prepared by the Federal Emergency Management Agency and issued to the city; or b. The site meets Federal Emergency Management Agency requirements necessary to meet minimum flood plain management criteria of the National Flood Insurance Program; 7. Within a regulatory floodway, unless the development has received a no-rise certification; 8. Lands identified for conservation in an adopted natural community conservation plan, habitat conservation plan, or other adopted natural resource protection plan; 9. Habitat for protected species; or 10. Land under a conservation easement; C. Shall not require or allow the demolition or alteration of any of the following types of housing: 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. 2. Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. 3. Housing that has been occupied by a tenant in the last three years; D. Shall not require or allow the demolition of more than 25 percent of the existing exterior structure walls on the parcel if the parcel has been occupied by a tenant in the last three years; E. Shall not be located on a parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application; and E.7.a Packet Pg. 62 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 17 F. Shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, or within a site that is designated or listed as a City or county landmark or historic property or district pursuant to a City or county ordinance. 18.65.040 - Development standards. A second unit, and both of the units in a two-unit development, shall comply with all of the following development standards: A. Configuration. A second unit may be attached to or detached from the other primary dwelling unit on the parcel, subject to subsections C and D of Section 18.65.030. Subject to the requirements of this chapter, a second unit may be added to a parcel either by (i) the construction of a new residential dwelling unit, (ii) the conversion of an existing structure into a residential dwelling unit, or (iii) the bifurcation of an existing residential dwelling unit into two separate residential dwelling units. B. Size. A second unit, and both of the units in a two-unit development, are subject to the following size limitations: 1. There is no maximum size limit. 2. Second units and both units in a two-unit development shall comply with setback requirements, the minimum separation between detached units in subsection (E), the open space requirements and maximum lot coverage requirements applicable to the parcel on which each unit is located, and all other development standards in this Section 18.65.040. 3. A second unit shall not be larger than an existing primary unit on the same lot. 4. Notwithstanding subsections (B)(2) and (B)(3), and with the exception of the side and rear setback requirements, the City will not enforce any development standard to the extent that it would have the effect of physically precluding the construction of a second unit or two-unit development on a parcel, or would physically preclude either the second unit or both units of a two- unit development from being at least 800 square feet in floor area. C. Height. A second unit, and both of the units in a two-unit development, are limited to two (2) stories, or to one (1) story if built on top of a one- story structure. E.7.a Packet Pg. 63 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 18 D. Setbacks. No setback beyond the existing setback shall be required for an existing structure or for a unit constructed in the same location and to the same dimensions as an existing structure. In all other circumstances, second units, and both units of a two-unit development, shall be set back at least 4 feet from the side and rear lot lines. E. Separation Between Detached Units. There shall be at least 15 feet of separation between the walls of second units, and each unit of a two unit development, and walls of other detached structures on the same parcel. F. Parking. 1. One new on-site off-street parking space is required for a second unit and one new on-site off-street parking space per unit is required for each unit of a two-unit development. Such parking spaces shall be in addition to all existing parking spaces on the parcel. 2. Notwithstanding subsection F.1, no parking spaces are required for a second unit or a two-unit development if either: a. The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subsection (b) of Public Resources Code Section 21155, or a major transit stop, as defined in Public Resources Code Section 21064.3; or b. There is a car share vehicle located within one block of the parcel. G. Wastewater; Water Service. 1. Sewer. Prior to issuance of a building permit for a second unit or either unit of a two-unit development, the City Engineer shall inspect existing sewer lines and determine the sewer capacity limits. If the City Engineer determines that the addition of a new unit or units would result in a violation of the requirements of the California Plumbing Code, and/or other objective sewer or septic system requirements in local or state law, then the City shall impose conditions of approval on the development that are necessary to ensure compliance with such requirements. E.7.a Packet Pg. 64 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 19 2. Septic System. a. If a parcel relies on an onsite wastewater treatment system, and it is within 200 feet of an existing sewer system, then all existing and proposed units on the parcel shall be disconnected from the onsite wastewater treatment system and connected to the sewer system as a condition of approval of the development. b. If the City determines that the second unit would exceed the current capacity of the onsite wastewater system or result in a violation of the requirements of the California Plumbing Code, the requirements of the Santa Ana Regional Water Quality Control Board, and/or other objective City waste disposal system requirements, then the City shall impose conditions of approval on the development that are necessary to ensure compliance with such requirements. c. If a proposed second unit would be located on the only part of the parcel that could accommodate a new onsite wastewater treatment system in the event the existing system needed to be replaced, then all existing and proposed units on the parcel shall be disconnected from the onsite wastewater treatment system and connected to the sewer system as a condition of approval of the development. If such disconnection and connection is not possible, or would require off-site improvements, then the building official, or designee, shall consider whether such circumstances are grounds for denial of the proposed project pursuant to Section 18.65.020.C. 3. A second unit, and both of the units in a two-unit development, shall each have a separate connection to the main water service line in the street and the applicant shall submit plans for such line(s) to the Riverside Highland Water Company for review and approval. The applicant shall comply will all objective requirements of the Riverside Highland Water Company for the construction and operation of the water line(s). H. Separate Entrances; Pathway. A second unit, and both of the units in a two-unit development, shall each have a separate entrance. Furthermore, each second unit, and each units in a two-unit development, shall have an unobstructed pathway, constructed of impermeable materials, leading up to its main entrance, sufficient to provide access to the unit by public safety personnel and the resident of the unit. I. Unobstructed Area Adjacent to Unit. There shall be at least four (4) feet of unobstructed space adjacent to each exterior wall of a second unit and each unit of a two-unit development in order to ensure that the unit is E.7.a Packet Pg. 65 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 20 accessible by public safety personnel. This space shall remain unobstructed at all times. J. Additional Development Standards. Except as provided in subsections A through I, second units, and each unit of a two-unit development, shall comply with all development standards that would be applicable to a primary dwelling unit on the same parcel. 18.65.050 - Total number of units. A. This chapter does not authorize or require the approval of more than two primary dwelling units on a single parcel. For purposes of this subsection, “primary dwelling units” means dwelling units other than accessory dwelling units or junior accessory dwelling units. B. Notwithstanding any other provision in this chapter, the approval of second units and two-unit developments on a parcel that was created through an urban lot split shall be limited as described in Section 17.30.060. 18.65.060 - Design standards. A. Second units, and each unit of a two-unit development, shall comply with all objective design standards that would be applicable to a primary dwelling unit on the same parcel. B. The architectural design and detailing, roof material, roof pitch, exterior color, and finish materials of a second unit shall be the same as those of the primary dwelling unit, except that a flat roof shall not be permitted even if all or a portion of the roof on the primary dwelling is flat. Both units of a two-unit development shall have the same roof material, roof pitch, exterior color, and finish materials. The roof shall have a minimum 16-inch overhang, except that the outermost edge of the roof shall be at least three (3) feet from any side or rear lot line. 18.65.070 - Rental term; rental property program compliance; separate conveyance. A. Second units and both units in a two-unit development shall not be rented for a term of less than thirty-one (31) consecutive days. B. Unless the owner of the property provides the City with an annual certification that a unit is owner-occupied, second units and both units in a two-unit development shall be assumed to be rental units and shall be subject to the requirements in Chapter 5.80 (Non-Owner Occupied/Rental Property Program). E.7.a Packet Pg. 66 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 21 C. A second primary unit may not be turned into a condominium or otherwise sold separately from the other primary unit on the parcel. The units in a two-unit development may not be turned into condominiums or otherwise sold separately from one another. 18.65.080 - Deed restriction. As a condition of approval of, and prior to the issuance of a certificate of occupancy for, a second unit or two-unit development, the property owner shall execute a deed restriction, in a form approved by the city attorney, which shall be recorded on the property, at the property owner’s cost, and shall require that the second unit or two-unit development only be used and developed in accordance with the requirements in this chapter. Violation of the deed restriction shall be considered a violation of this code and may be enforced in a manner that this code may be enforced. 18.65.090 Development impact fees. As a condition of receiving a certificate of occupancy for a second unit or two- unit development, the applicant shall pay development impact fees in an amount established by city council resolution. SECTION 17. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part, or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional. SECTION 18. Posting. The City Clerk shall certify to the passage and adoption of this Ordinance by the City Council and shall cause this ordinance to be published or posted in accordance with Government Code Section 36933 as required by law. SECTION 19. This Ordinance shall take effect and be in full force and effect from and after thirty (30) calendar days after its final passage and adoption. I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving the first reading, except by title, at a regular meeting thereof held on the ____ day of _____________, 2022, and adopted the Ordinance after the second reading at a regular meeting held on the ____ day of _______________, 2022, by the following roll call vote: AYES: NOES: E.7.a Packet Pg. 67 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787276.1 22 ABSTAIN: ABSENT: _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney E.7.a Packet Pg. 68 At t a c h m e n t : S B 9 O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 1 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ADOPTING AMENDMENTS TO REGULATIONS OF ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS WHEREAS, Chapter 18.69 of the Grand Terrace Municipal Code establishes regulations of accessory dwelling units and junior accessory dwelling units; and WHEREAS, updates to the City’s regulations of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) are needed in order to make these regulations compliant with state law and clarify the relationship between ADUs/JADUs and units created under SB 9; and WHEREAS, the Planning Commission considered this ordinance at the Planning Commission Noticed Public Hearing meeting held on March 3, 2022, and voted unanimously 4-0 adopting a resolution recommending City Council approval; and WHEREAS, on April 21, 2022, the City Council and Planning Commission held a joint session to further discuss proposed SB 9 and accessory dwelling unit regulations; and WHEREAS, on May 10, 2022, the City Council of the City of Grand Terrace conducted a duly noticed public hearing at the Grand Terrace City Hall Council Chambers located 22795 Barton Road and conclude the hearing on said date; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Recitals. The above recitals are incorporated by reference. SECTION 2. CEQA. The City Council finds and determines that the adoption of an ordinance regarding second units (ADUs) in a single-family or multifamily residential zone to implement the provisions of Government Code Sections 65852.2 and 65852.22 is exempt from CEQA review pursuant to Public Resources Code Section 21080.17. Therefore, this ordinance does not require any environmental review under CEQA. SECTION 3. Section 18.06.017 (Accessory dwelling unit) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.017 - Accessory dwelling unit (ADU). “Accessory dwelling unit” or ADU means an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons. An accessory dwelling unit includes (1) an efficiency unit, as defined in Health and Safety Code Section 17958.1, and (2) a manufactured home, as defined in Health and Safety Code Section 18007. This definition shall be E.7.b Packet Pg. 69 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 2 interpreted as consistent with the definition for “accessory dwelling unit” in Government Code Section 65852.2. SECTION 4. Section 18.06.018 (Accessory dwelling unit, junior) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.018 - Accessory dwelling unit, junior (JADU). “Junior accessory dwelling unit” or JADU means a residential dwelling unit that is no more than 500 feet in size and is contained within a single-family residence. This definition shall be interpreted as consistent with the definition for “junior accessory dwelling unit” in Government Code Section 65852.22. SECTION 5. Section 18.06.082 (Accessory dwelling unit) is hereby deleted in its entirety. SECTION 6. Chapter 18.69 of the Grand Terrace Municipal Code (Accessory Dwelling Units) is hereby repealed and replaced in its entirety with the following (new text in bold italics): Chapter 18.69 - ACCESSORY DWELLING UNITS 18.69.010 - Purpose. This chapter is intended to implement the provisions of Sections 65852.2 and 65852.22 of the Government Code and, in case of ambiguity, shall be interpreted to be consistent with such provisions. 18.69.020 - Definitions. For purpose of this chapter, the following terms shall be defined as follows: (a) “Multifamily dwelling” means a structure containing two or more attached primary dwelling units, not including accessory dwelling units or junior accessory dwelling units. Multiple detached single-family dwellings on the same lot are not a multifamily dwelling. (b) “Single-family dwelling” means a structure containing no more than one primary dwelling unit, not including accessory dwelling units or junior accessory dwelling units. 18.69.030 - Review process; certificate of occupancy. (a) Applications for accessory dwelling units and junior accessory dwelling units pursuant to this chapter shall be processed ministerially, without discretionary review or a hearing, through the administrative site and architectural review process, as described in Chapter 18.63, within sixty (60) days from the date the City receives a complete application if there is an existing single-family or multifamily dwelling on the lot. If the application to create an accessory dwelling unit or a junior accessory dwelling unit is submitted with a permit application to create a new single- family dwelling on the lot, the City may delay acting on the application E.7.b Packet Pg. 70 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 3 for the accessory dwelling unit or the junior accessory dwelling unit until the City acts on the permit application to create the new single-family dwelling, but the application to create the accessory dwelling unit or junior accessory dwelling unit shall be considered without discretionary review or hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. (b) A certificate of occupancy for an accessory dwelling unit shall not be issued before the city issues a certificate of occupancy for the primary dwelling. 18.69.040 - Consistency with density requirements, zoning, and general plan. Accessory dwelling units and junior accessory dwelling units do not exceed the allowable density for the parcel on which they are located, and are a residential use consistent with the general plan and zoning designation of the parcel on which they are located. 18.69.050 - General requirements. (a) Maximum Number of Units Allowed. The following is the maximum number of accessory dwelling units and/or junior accessory dwelling units allowed on any lot. Notwithstanding any other provision in this chapter, the number of accessory dwelling units and junior accessory dwelling units permitted on a parcel that was created through an urban lot split shall be limited as described in Section 17.30.060. Unless specified below, only one category may be used per lot. (1) ADU or JADU within Proposed or Existing Single-family Dwelling or Accessory Structure. One accessory dwelling unit and one junior accessory dwelling unit are permitted on a lot with one or more proposed or existing single-family dwellings, if either: (A) The accessory dwelling unit or junior accessory dwelling unit is proposed within the space of a proposed or existing single-unit dwelling (including an attached garage); or (B) The accessory dwelling unit is proposed within the space of an existing accessory structure, plus an addition beyond the physical dimensions of the accessory structure of up to one hundred fifty (150) square feet for the sole purpose of facilitating entrance to and exit from the accessory dwelling unit. (2) Detached/Attached ADU on Lot with Single-Unit Dwelling. One detached or one attached, new-construction accessory dwelling unit is permitted on a lot with one or more proposed or existing single-family dwellings. The accessory dwelling unit may be E.7.b Packet Pg. 71 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 4 combined with a junior accessory dwelling unit described in subsection (a)(1) of this section. (3) Conversion of Existing Multifamily Dwelling. Multiple accessory dwelling units are permitted on lots with existing multifamily dwellings subject to the following: (A) The amount of accessory dwelling units allowed within a multifamily dwelling shall be equal to 25 percent of the number of units in the multifamily dwelling; provided, that fractional units shall be rounded down, and at least one accessory dwelling unit shall be allowed in each multifamily dwelling structure. For example, one accessory dwelling unit is allowed in a multifamily dwelling structure with seven or fewer units; two accessory dwelling units are allowed in a multifamily dwelling structure with eight to eleven units; and three accessory dwelling units are allowed in a multifamily dwelling structure with twelve units; and (B) An accessory dwelling unit located within a multifamily dwelling structure may only be located within a portion of the structure not used as livable space, including, but not limited to, a storage room, boiler room, passageway, attic, basement, or garage, provided that each unit shall comply with state building standards for dwellings. Amenities within common areas such as recreation rooms, outdoor space or any space previously designed to meet common area requirements shall not be converted to accessory dwelling units. (4) Detached ADU on Multifamily Lot. Up to two detached, new- construction accessory dwelling units are permitted on a lot that has an existing multifamily dwelling. (b) Required Facilities. (1) Accessory dwelling units shall include complete independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation, including a kitchen and bathroom. (2) Junior accessory dwelling units shall include living facilities for one or more persons, including permanent provisions for living, sleeping, eating, and cooking, including an efficiency kitchen, as defined in Government Code Section 65852.22(a), as may be amended. Junior accessory dwelling units may include separate E.7.b Packet Pg. 72 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 5 sanitation facilities or may share sanitation facilities with the primary residence. (c) Separate Entrances; Pathway. (1) Junior accessory dwelling units and accessory dwelling units located within or attached to a primary residence shall include an entrance that is separate from the main entrance to the primary residence. (2) Each accessory dwelling unit and junior accessory dwelling unit shall have an unobstructed pathway, constructed of impermeable materials, leading up to its main entrance, sufficient to provide access to the unit by public safety personnel and the resident of the unit. However, the pathway is not required to extend from the unit all the way to the street. (d) Development Standards. Accessory dwelling unit and junior accessory dwelling units shall comply with the following standards: (1) Size. (A) Accessory dwelling units and junior accessory dwelling units shall be no smaller than an efficiency unit, as defined in Health and Safety Code Section 17958.1. (B) Junior accessory dwelling units shall be no larger than 500 square feet. (C) The size of an accessory dwelling unit shall be limited as follows: (i) There is no limit on the size of any accessory dwelling unit that is located within a proposed or existing single-family dwelling or accessory structure, as described in subsection (a)(1). (ii) There is no limit on the size of an accessory dwelling unit that is attached to or detached from a primary unit, except that attached and detached accessory dwelling units shall not be larger than the primary unit, and detached and attached accessory dwelling units shall comply with setback requirements, the required distance between units in subsection (d)(4), and the open space requirements and maximum lot coverage requirements applicable to the parcel on which the unit is located. E.7.b Packet Pg. 73 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 6 (iii) Notwithstanding subsection (d)(1)(C)(ii), if the required distance between units in subsection (d)(4), the open space requirements, and/or the maximum lot coverage requirements would prevent an attached or detached accessory dwelling unit from being at least eight hundred (800) square feet, or if the primary unit is less than eight hundred (800) square feet, then an applicant shall, nonetheless, be permitted to construct an attached or detached accessory dwelling unit that is up to eight hundred (800) square feet, provided that the unit shall comply will all other development standards, including but not limited to setback requirements. (2) Height. Accessory dwelling units are limited to two (2) stories, or to one (1) story if built on top of a one-story structure. (3) Setbacks. (A) The front setback for an accessory dwelling unit shall be the same as for the primary unit on the property. (B) The side and rear setbacks for an accessory dwelling unit shall be four (4) feet minimum. (C) Notwithstanding (A) and (B), no setback is required for the conversion of an existing living area, garage, or accessory structure to an accessory dwelling unit or junior accessory dwelling unit; or for a new structure constructed in the same location as an existing structure; where: (i) the existing structure is permitted; and (ii) the conversion or new construction will have the same dimensions as the existing structure. (4) Separation Between Units. Detached accessory dwelling units shall have a minimum wall separation from the primary unit(s) of fifteen (15) feet. (5) Fire Sprinklers. Accessory dwelling units shall not be required to provide fire sprinklers if they are not required for the primary dwelling unit. (6) Unobstructed Space Surrounding Unit. There shall be at least four (4) feet of unobstructed space adjacent to each exterior wall of an accessory dwelling unit in order to ensure that the unit is E.7.b Packet Pg. 74 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 7 accessible by public safety personnel. This space shall remain unobstructed at all times. (7) Nonconforming Conditions. Notwithstanding any other provision of this code, approval of a permit for the creation of an accessory dwelling unit or junior accessory dwelling unit shall not be conditioned on the correction of nonconforming conditions on the subject property. (8) Compliance with Other Codes. Accessory dwelling units and junior accessory dwelling units must comply with the building code, fire code, health and safety codes, and noise insulation standards applicable at the time the building permit for the accessory dwelling unit or junior accessory dwelling unit is issued. (9) Utilities. (A) The City shall not require a separate utility connection between an accessory dwelling unit or junior accessory dwelling unit and the utility, or impose a related connection fee or capacity charge, for units located entirely within a primary dwelling, unless the accessory dwelling unit or junior accessory dwelling unit was constructed with a new single-family home. (B) Except as provided in subdivision (A), accessory dwelling units and junior accessory dwelling units shall have a separate connection to the main water service line in the street and the applicant shall submit plans for such line(s) to the Riverside Highland Water Company for review and approval. The applicant shall comply will all objective requirements of the Riverside Highland Water Company for the construction and operation of the water line(s). (10) Wastewater Service. (A) Sewer: (1) Prior to issuance of a building permit for an accessory dwelling unit or junior accessory dwelling unit, the City Engineer shall inspect existing sewer lines and determine sewer capacity limits. If the City Engineer determines that the addition of a new unit or units would result in a violation of the requirements of the California Plumbing Code and/or other objective sewer or septic system requirements in local or state law, or exceed the existing sewer capacity, then the City shall impose conditions of approval on the development that are necessary to ensure compliance with such requirements. E.7.b Packet Pg. 75 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 8 (B) Septic System: (1) If a parcel relies on an onsite wastewater treatment system and the primary unit or second unit is within 200 feet of the city sewer system, then the city shall require that all existing and proposed units on the parcel be disconnected from the onsite wastewater treatment system and connected to the sewer system as a condition of approval of the development unless the city determines that there are conditions precluding attachment. (2) If the parcel relies on an onsite wastewater treatment system, the city may, if applicable, require documentation of a percolation test completed within the last five years, or if the percolation test has been recertified, within the last ten years. (3) If the City determines that the addition of a new unit or units would exceed the current capacity of the onsite wastewater system or result in a violation of the requirements of the California Plumbing Code, the requirements of the Santa Ana Regional Water Quality Control Board, and/or other objective City waste disposal system requirements, then the City shall impose conditions of approval on the development that are necessary to ensure compliance with such requirements. (4) If a proposed unit would be located on the only part of the parcel that could accommodate a new onsite wastewater treatment system in the event the existing system needed to be replaced, then the City shall require that all existing and proposed units on the parcel be disconnected from the onsite wastewater treatment system and connected to the sewer system as a condition of approval of the development. (11) Manufactured Homes. If a manufactured home is used as an accessory dwelling unit, it shall comply with the following requirements: (A) It shall be no more than ten years old on the day it is installed on the property. (B) It shall be installed on a permanent foundation. (C) It must meet the design standards in Section 18.69.060(b). E.7.b Packet Pg. 76 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 9 (12) Address. Accessory dwelling units and junior accessory dwelling units shall have their own address, which shall be the address of the primary unit with the addition of a letter (A, B, C, etc.). (13) Other Development Standards. Except as provided in this Section, accessory dwelling units and junior accessory dwelling units shall comply with all development standards applicable to the primary residence on the same lot. 18.69.060 - Design standards. (a) The architectural design and detailing, roof material, roof pitch, exterior color, and finish materials of an accessory dwelling unit or junior accessory dwelling unit shall be the same as those of the primary dwelling, except that a flat roof shall not be permitted even if all or a portion of the roof on the primary dwelling is flat. (b) The roof shall have a minimum 16-inch overhang. (c) If a manufactured home is used as an accessory dwelling unit, it shall comply with the following design requirements: (1) It shall comply with the design requirements in Section 18.69.060(a), except that if materials matching the primary dwelling are not commercially available for a manufactured home, then finish materials shall be the same color as the finish materials on the primary dwelling; and (2) Mechanical equipment associated with the manufactured home shall be located so as to not be visible from a public street or adjoining property. 18.69.070 - Parking requirements. (a) One new parking space shall be provided for each accessory dwelling unit on a lot, except as otherwise provided in subsection (c). The new parking space(s) shall be located on the same lot where the accessory dwelling unit is located, shall not be on the street, and shall be in addition to all existing parking spaces on the lot. (b) No additional parking spaces are required for a junior accessory dwelling unit. (c) Notwithstanding subsection (a), no additional parking is required for accessory dwelling units in the following circumstances: (1) The accessory dwelling unit is located within one-half mile walking distance of public transit, as defined in Government Code Section 65852.2(j), as may be amended. E.7.b Packet Pg. 77 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 10 (2) The accessory dwelling unit is located within an architecturally and historically significant historic district. (3) The accessory dwelling unit is located entirely within the proposed or existing primary residence or an accessory structure. (4) When on-street parking permits are required but not offered to the occupant of the accessory dwelling unit. (5) When there is a car share vehicle located within one block of the accessory dwelling unit. (d) Off-street parking may be provided in setback areas in locations determined by the planning and development services department or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based on specific site or regional topographical or fire and life safety conditions. (e) Off-street parking spaces do not need to be replaced when a garage, carport, or covered parking structure is demolished in conjunction with the construction of an accessory dwelling unit or is converted to an accessory dwelling unit. However, off-street parking spaces shall be replaced when a garage, carport, or covered parking structure is demolished in conjunction with the construction of a junior accessory dwelling unit or is converted to a junior accessory dwelling unit. (f) All parking design standards in Chapter 18.60 shall apply unless they conflict within this Chapter, in which case this Chapter shall govern. 18.69.080 - Sale and rental of units; rental property program compliance. (a) Except as provided in Government Code Section 65852.26, accessory dwelling units and junior accessory dwelling units may not be sold or otherwise conveyed separate from the primary residence. (b) An accessory dwelling unit or junior accessory dwelling unit may be rented separate from the primary residence but may not be rented for a term of less than 31 consecutive days. (c) Unless the owner of the property provides the City with an annual certification that a unit is owner-occupied, accessory dwelling units and junior accessory dwelling units shall be assumed to be rental units and shall be subject to the requirements in Chapter 5.80 (Non-Owner Occupied/Rental Property Program). 18.69.090 - Deed restriction – junior accessory dwelling unit. The approval of a junior accessory dwelling unit shall be conditioned on the recordation of a deed restriction, which shall run with the land, and will be recorded by the City on the property where the unit is, or will be, located. The E.7.b Packet Pg. 78 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 11 covenant shall be approved by the city attorney and the building official. The property owner shall bear the cost of recording the deed restriction. The deed restriction shall include the following: (a) A prohibition on the sale of the unit separately from the sale of the primary residence, including a statement that the deed restriction may be enforced against future purchasers. (b) A restriction on the size and attributes of the unit that conforms to Government Code Section 65852.22, including the owner-occupancy requirement in Section 18.69.100. 18.69.100 - Owner occupancy – junior accessory dwelling unit. The property owner must reside in any single-family residence that includes a junior accessory dwelling unit. The owner may reside in either the junior accessory dwelling unit or the remaining portion of the structure. However, owner-occupancy is not required if the owner is a government agency, land trust, or housing organization. 18.69.110 - Development impact fees. No impact fee shall be imposed for an accessory dwelling unit less than seven hundred fifty square feet. Any impact fees charged for an accessory dwelling unit of seven hundred fifty square feet or more shall be charged proportionately in relation to the square footage of the primary dwelling unit. For purposes of this section, “impact fee” has the meaning given in Government Code Section 65852.2(f)(3)(b). SECTION 7. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional. SECTION 8. Posting. The City Clerk shall certify to the passage and adoption of this Ordinance by the City Council and shall cause this ordinance to be published or posted in accordance with Government Code Section 36933 as required by law. SECTION 9. Submission to Department of Housing and Community Development. Pursuant to Government Code section 65852.2(h), a copy of this ordinance shall be submitted to the Department of Housing and Community Development within 60 days after adoption. SECTION 10. This Ordinance shall take effect and be in full force and effect from and after thirty (30) calendar days after its final passage and adoption. E.7.b Packet Pg. 79 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 01247.0005/787283.2 12 I HEREBY CERTIFY that the foregoing Ordinance was introduced by the City Council after waiving the first reading, except by title, at a regular meeting thereof held on the ____ day of _____________, 2022, and adopted the Ordinance after the second reading at a regular meeting held on the ____ day of _______________, 2022, by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney E.7.b Packet Pg. 80 At t a c h m e n t : A D U O r d i n a n c e _ G r a n d T e r r a c e _ 5 . 2 . 2 2 ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) ORDINANCE NO.336-U AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE ESTABLISHING REGULATIONS FOR URBAN LOT SPLITS AND TWO-UNIT DEVELOPMENTS IN ACCORDANCE WITH SENATE BILL 9 WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill 9 (SB 9). This bill requires the ministerial approval of two dwelling units per parcel in single-family residential zones, where previously only one primary dwelling unit would have been permitted, and requires ministerial approval of lot splits in single-family residential zones and allows two units to be built on each resulting parcel; and WHEREAS,SB 9 took effect on January 1,2022,and it is therefore necessary for the City to establish objective standards regarding housing developments and lot splits authorized by SB 9 as soon as possible; and WHEREAS,the City Council desires to establish objective standards governing units and lots splits authorized by SB 9 to preserve the City's character and quality of life as characterized by the City's General Plan; and WHEREAS,pursuant to Government Code Section 36937,subdivision(b), any ordinance for the immediate preservation of the public peace, health, or safety, containing a declaration of the facts constituting the urgency, that is passed by a four-fifths (4/5) vote of the City Council, shall take effect immediately upon its adoption; and WHEREAS,the City Council seeks and intends to protect the health, safety, and welfare of the residents of the City of Grand Terrace by establishing regulations for urban lot splits and two-unit developments in single family residential zones, as further described herein. NOW THEREFORE, the City Council of the City of Grand Terrace does hereby ordain as follows: SECTION 1. Recitals. The above recitals are incorporated by reference. SECTION 2. Urgency Findings. A. SB 9 requires the ministerial approval of two dwelling units per parcel in single- family residential zones, where previously only one primary dwelling unit would have been permitted, in addition to accessory dwelling units and junior accessory dwelling units, in some cases. B. Additionally, SB 9 requires ministerial approval of lot splits in single-family residential zones and allows two units to be built on each resulting parcel. C. This bill has the potential to dramatically increase the density and population of single-family zones, potentially placing a strain on public resources and the infrastructure that serves these zoning districts. CC Ord No.336 Page 1 of 16 January 25,2022 E.7.c Packet Pg. 81 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) D. Moreover, SB 9 continues a pattern of state action that deprives cities of control over issues of fundamental local concern and traditional local control, namely, the character and quality of residential neighborhoods and the ability to control and plan for the uses of land in the City. E. SB 9 took effect on January 1, 2022, and it is therefore necessary for the City to establish objective standards regarding the housing developments and lot splits that the City will now be required to permit, and to ensure that such regulations take effect as soon as possible, so as to protect and provide for the welfare of the local community. SECTION 3. CEQA. The City Council finds and determines that these ordinance amendments are not a "project' for purposes of California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.216) and 66411.7(n), and therefore do not require any environmental review under CEQA. SECTION 4. Section 17.04.040, subjection H, of the Grand Terrace Municipal Code is hereby amended as follows with the remainder of Section 17.04.040 remaining unchanged deletions in bold str•1kethrough; additions in bold italics): H. The construction, financing or leasing of dwelling units pursuant to California Government Code Section 65852.1 or seeend accessory dwelling units pursuant to California Government Code Section 65852.2; but this Title shall apply to the sale or transfer, but not the leasing of those units; SECTION 5. Table 17.04.050(Review, approval and appeal body)is hereby amended as follows(additions in bold italics): Table 17.04.050 Review, approval and appeal body TYPE OF REVIEW APPROVAL APPEAL ACTION BODY BODY BODY Tentative maps Planning City Council N/A Commission Vesting tentative Planning City Council N/A maps Commission Tentative parcel maps Planning City Council N/A Commission Tentative map City staff and other Director Planning extensions responsible agencies Commission Parcel maps(4 or less City staff and other City Council N/A lots) res onsible agencies Final maps(5 or City staff and other City Council N/A more lots) res onsible agencies Waivers of parcel City staff and other City Engineer Planning maps responsible agencies Commission CC Ord No.336 Page 2 of 16 January 25,2022 E.7.c Packet Pg. 82 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) Urban Lot Splits City staff and other City Engineer Planning responsible agencies Commission Reversion to Planning City Council N/A acreage Commission Lot and parcel City staff and other Director Planning mergers responsible aizencies Commission Lot line adjustments City staff and other Director Planning responsible agencies Commission Certificate of City staff and other City Engineer Planning Compliance I responsible agencies I I Commission SECTION 6. Section 17.08.020 of the Grand Terrace Municipal Code is hereby amended to add a definition of"Urban lot split"as follows, with all other definitions in Section 17.08.020, except those shown below, remaining unchanged (deletions in bold stFikethFough; additions in bold italics): GG. "Urban lot split" shall mean the division of a single parcel into two separate parcels in compliance with the provisions of Chapter 17.30 Urban Lot Splits). GQ HH. "Vesting tentative map" shall mean a tentative map prepared in accordance with the provisions of this Title that shall have printed conspicuously on its face the words "Vesting Tentative Map" at the time it is filed. II. Zoning code" shall mean Title 18 of the Grand Terrace Municipal Code, including all text and maps, as it may be amended from time to time. SECTION 7. Chapter 17.30 (Urban Lot Splits) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): Chapter 17.30- URBAN LOT SPLITS 17.30.010-Purpose. The purpose ofthis chapter is to establish procedures and standardsfor urbair lot splits in accordance with the requirements of Government Code Section 6641 L 7. 17.30.020-Ministerial review; standard for denial, A. Notwithstanding any other provision of this code, an application for an urban lot split shall be considered ministerially, without discretionary review or a hearing, and shall be approved if it meets all of the requirements ofthis chapter. CC Ord No. 336 Page 3 of 16 January 25,2022 E.7.c Packet Pg. 83 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) B. An application for an urban lot split shall be approved or denied by the City Engineer, and the decision may be appealed in accordance with Section 17.16.150. C. Notwithstanding subsection A, the City may deny an application for an urban lot split if the building official, or designee, makes a written finding, based upon a preponderance of the evidence, that the proposed urban lot split would have a specific, adverse impact, as defined in subsection (d)(2) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. 17.30.030-Parcel requirements. The parcel that is proposed for subdivision through an urban lot split. A. Shall be located in an RH,RI-20,RI-10, or RI-7.2 zoning district, B. Shall have at least one residential dwelling unit located on it on the date that the urban lot split is approved; C. Shall only have residential uses located oil it on the date the urban lot split is approved; D. Shall satisfy all the requirements of subsections (a)(6)(B) through a)( 6)(K), inclusive, of Government Code Section 65913.4; E. Shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, or within a site that is designated or listed as a City or county landmark or historic property or district pursuant to a City or county ordinance; F. Shall not have been created through a previous urban lot split, and G. Shall not be adjacent to a parcel that was previously subdivided through an urban lot split by the owner of the parcel on which the urban lot split is proposed or any person acting in concert with the owner. 17.30.040-Additional requirements A. An urban lot split shall subdivide an existing parcel to create no more than two new parcels ofapproximately equal lot area,provided that. CC Ord No. 336 Page 4 of 16 January 25,2022 E.7.c Packet Pg. 84 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 1.Neither resulting parcel shall be smaller than 40 percent of the lot area ofthe originalparcelproposed for subdivision; and 2. Neither resulting parcel shall be smaller than 1,200 square feet. B. An urban lot split shall not result in the creation ofa parcel with more than two existing units, as defined in Section 17.30.060. C. An urban lot split shall not require or allow the demolition or alteration ofany ofthefollowing types ofhousing: 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. 2. Housing that is subjectto anyform ofrent orprice control through apublic entity's valid exercise ofits police power. 3. A parcel on which an owner of residential real property has exercised the owner's rights under Chapter 12.75 (commencing with Section 7060)ofDivision 7 ofTitle I ofthe Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. 4. Housing that has been occupied by a tenant in the last three years. D. As a condition ofapprovalfor an urban lot split, the applicant and owner ifdifferentfrom the applicant)shall sign an affidavit,in aform approved by the City Attorney, stating that. 1.The proposed urban lot split will not violate the requirements of subsection C of'this section; 2.Neither the owner nor applicant, nor any person acting in concert with the owner or applicant,haspreviously subdivided an adjacent parcel using an urban lot split; and 3.The applicant intends to occupy a residential dwelling unit on one of the parcels created by the urban lot split as their primary residence for a minimum of three years from the date of the approval ofthe urban lot split. This subsection D.3 shall not apply to an applicant that is a "community land trust," as defined in clause (ii) of subparagraph (C) ofparagraph (11) of subdivision a) of Section 402.1 of the Revenue and Taxation Code, or is a CC Ord No. 336 Page 5 of 16 January 25,2022 E.7.c Packet Pg. 85 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) qualified nonprofit corporation"as described in Section 214.15 ofthe Revenue and Taxation Code. E. As a condition ofapproval of an urban lot split, the owner shall dedicate all easements over the resulting parcels required for the provision of public services andfacilities, as determined by the City Engineer. F. Each parcel resultingfron an urban lot split shall have access to or adjoin the public right-of-way, and, ij'necessary,provide the other parcel with access to the right-of-way through an easement. G. The City shall not require as a condition of approval of an urban lot split: L Dedications of rights-of-way or the construction oj' offsite improvements; or 2.The correction of non-conforming zoning conditions existing on the parcel that will be divided H. An urban lot split: 1. Shall conform with all the requirements of the Subdivision Map Act; and 2. Shall conform with all the requirements applicable to lot splits under this code, except for those requirements that conflict with the requirements of this chapter, in which case the provisions of this chapter shall control, 17.30.050-Limitations applicable to new parcels. A. Parcels created by an urban lotsplitshall only be usedfor residential uses, notwithstanding the fact that other uses may be permitted in the zoning district in which the parcels are located B. Residential units constructed on parcels created by an urban lot split shall not be rentedfor a term ofless than thirty-one(31) consecutive days 17.30.060-Limitation on number of units Notwithstanding any other provision of this code, no more than two units are permitted on any parcel created by an urban lot split. For the purposes of this section, "unit"means any dwelling unit, including, but not limited to, aprimary dwelling unit, a unit or units created pursuant to Chapter 18.65 (Second Units and Two-Unit Developments), an accessory dwelling unit, or a junior accessory dwelling unit. CC Ord No.336 Page 6 of 16 January 25,2022 E.7.c Packet Pg. 86 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) SECTION 8. Section 18.06.017 (Accessory dwelling unit) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.017-Accessory dwelling unit. Accessory dwelling unit" means an attached or detached residential dwelling unit thatprovides complete independent living facilities for one or more persons It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel that the single-family dwelling is situated An accessory dwelling unit includes (1) an efficiency unit, as defined in Health and Safety Code Section 17958.1,and(2)a manufactured home,as defined in Health and Safety Code Section 18007. This definition shall be interpreted as consistent with the definition for "accessory dwelling unit" in Government Code Section 65852.2. SECTION 9. Section 18.06.018 (Accessory dwelling unit,junior) is hereby added to the Grand Terrace Municipal Code and shall read as follows(additions in bold italics): 18 06.018-Accessory dwelling unit,junior. Junior accessory dwelling unit" means a residential dwelling unit that is no more than 500feet in size and is contained within a single-family residence. This definition shall be interpreted as consistent with the definition for `junior accessory dwelling unit"in Government Code Section 65852.22. SECTION 10. Section 18.06.020 (Accessory structure) is hereby renumbered to Section 18.06.025, and Section 18.06.025 (Accessory living quarters) is hereby renumbered to Section 18.06.020, so as to put these two definitions in alphabetical order. SECTION 11. Section 18.06.082 (Accessory dwelling unit) is hereby deleted in its entirety. SECTION 12. Section 18.06.083 (Single-family detached) is hereby deleted in its entirety. SECTION 13. Section 18.06.246 (Dwelling, single-family detached) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.246-Dwelling, single-family detached Single-family detached dwelling"means one residential structure containing no more than one dwelling and complying with a minimum living area requirement of one thousand three hundred fifty square feet. It shall also be known as a full sized single-family unit or single-family dwelling. SECTION 14. Section 18.06.683 (Second unit) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.683-Second unit. CC Ord No.336 Page 7 of 16 January 25,2022 E.7.c Packet Pg. 87 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) Second unit"means a second residential dwelling unit, other than an accessory dwelling unit or junior accessory dwelling unit, on a parcel with one and only one existing residential unit that is not an accessory dwelling unit or junior accessory dwelling unit. SECTION 15. Section 18.06.929 (Two-unit development) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): 18.06.929- Two-unit development. Two-unit development" means the simultaneous development of two new residential dwelling units on a parcel with no existing residential dwelling units other than an accessory dwelling unit. SECTION 16. Table 18. 10.030 of the Grand Terrace Municipal Code shall be amended, a new footnote (e) shall be added to multiple uses under "Other Uses," footnote (e) shall be amended, and a new footnote (g) shall be added, as follows (deletions in additions in bold italics): TABLE 18.10.030 LAND USE REGULATIONS Permitted Uses bur1- l-R 1-R2 0' 0 10 7.2 S a A.Residential Uses Single-Family(Detached),Full Sized p p p p pa b Second Units(Subject to Chapter 17.30 and 18.65) Two-Unit Developments(Subject to Chapter 17.30 and 18.65) Single-Family Attached (Duplexes,Triplexes,and Fo lexes Multi le Family Units Manufactured Housing As Permitted Per Chapter 18.66 Mobile Home Park Senior Citizen Housing pd B.Residential Accessor Structures Accessory Structure P P P P P P, Accessory Dwelling Unit(Subject to Chapter 17.30 and 18 69) Junior Accessory Dwelling Unit(Subject to Chapter 17.30 and 18.69) Guest House C C r r C r - Private Garage Private Swimming Pool p p p P p p pd Home occupation As Permitted Per Chapter 5.06 Pp p pd Keeping of Cats and Dos Maximum of Two Each a Other Accessory Uses As Approved by the Planning Director a C. Other Uses Churches Minimum Three-Acre Parcel e Ic C 1C Ic 1C Schools Private and Parochial)e C Public Park and Playgrounde CC Ord No.336 Page 8 of 16 January 25,2022 E.7.c Packet Pg. 88 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) Public Facilities AndQuasi-Public)" C Family Day Care(Eight or Less Children Family Day Care Center(Nine or More Children),* C C Residential Care Facility Six or Less Persons Residential Care Facility Seven or More Persons f C - Sin le Room Occupancy Utility or Service Facility' Outdoor Recreation Facilitye D.Temporary uses Temporary Uses As approved by Planning Director a Temporary Trailers As Approved by Planning Director d Footnotes: a. A second single-family detached unit(full-sized single-family detached dwelling)shall be permitted in the R2 zone provided that the lot or parcel in question meets the minimum area requirement for the R2 zone and that said lot or parcel is developed with no more than one single-family detached dwelling. A site and architectural review application for the second-family detached unit in accordance with Chapter 18.63 of the Zoning Code shall be required to be approved prior to the issuance of building permits.In addition,all development standards of the underlying zone must be adhered to; and any division in ownership among the structures on the lot or parcel in question shall conform to the subdivision laws of the state and city. b. A second-family detached unit(full sized single-family detached dwelling)shall be permitted in the R3 zone provided that the lot or parcel in question meets the minimum area requirements for the R3 zone and that said lot or parcel is developed with no more than one single-family detached dwelling.A site and architectural review application for the second-family detached unit in accordance with Chapter 18.63 of the Zoning Code shall be required to be approved prior to the issuance of building permits. In addition,all development standards of the underlying zone must be adhered to; and any division in ownership among the structures on the lot or parcel in question shall conform to the subdivision laws ofthe state and city. C. "P" stands for"Permitted Use"where the use is permitted by right; and"C" stands for"Conditional Use"where the use requires a conditional use permit. d. Senior citizen housing is allowed in the R3-S up to a maximum density of twenty unit/acre.A specific plan will be required for all senior citizen housing projects in this zone. Some accessory and temporary uses as indicated will be allowed in the R3-S zone with the approval ofthe Community Development Director. e. Notwithstanding anything indicating otherwise in this Table,this use is prohibited on a parcel that was created by an urban lot split, pursuant to Section 17.30.050. f. Subject to administrative conditional use permit. g. Notwithstanding anything indicating otherwise in this Table,this use shall be prohibited if the Ending ofa specific, adverse impact is made in accordance with Section 18.65.020(C). CC Ord No.336 Page 9 of 16 January 25,2022 E.7.c Packet Pg. 89 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) SECTION 17. Chapter 18.63.020 of the Grand Terrace Municipal Code is hereby amended as follows (additions in bold italics): C. Administrative Site and Architectural Review Application. The purpose of this application is to allow staff level review of projects of medium scale and impact without the need for a public hearing,related costs and noticing procedures. The following items may be approved by the Planning Director without going to the Site and Architectural Review Board. However,the plans must be routed to all reviewing agencies and notices shall be mailed to adjacent property owners requesting comments within two weeks. The Planning Director's decisions shall be final unless appealed to the Planning Commission within ten calendar days. Appeals shall be filed with the Planning Department and follow similar rules as the appeals to the City Council (Section 18.63.070). 1. All accessory structures, except: a.Structures with 65 percent or more of the square footage of the main residence living area. Living area does not include porches,patios, carports, garages, storage areas, or auxiliary rooms; b.Structures 1,200 square feet or more in size; C.Structures with lot coverage higher than 25 percent; 2. All room additions, except room additions with 65 percent or more ofthe square footage of the main residence living area. Living area does not include porches,patios, carports, garages, storage areas, or auxiliary rooms; 3.Large scale temporary uses of insignificant adverse impact on the environment, i.e., parking lot sales which require review by fire, health and other agencies; 4. In case of damaged structures due to fire, earthquakes or other natural disasters where the structure will be reconstructed with alterations but not sufficient to trigger a public hearing. 5. Developments within the R3-24 and R3-24 Overlay districts. Such developments shall not constitute a "project" for purposes of Division 13 (commencing with Section 21000) of the Public Resources Code. 6. Applications for second units and two-unit developments in accordance with Chapter 18.65. CC Ord No. 336 Page 10 of 16 January 25,2022 E.7.c Packet Pg. 90 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) SECTION 18. Chapter 18.65 (Second Units and Two-Unit Developments) is hereby added to the Grand Terrace Municipal Code and shall read as follows (additions in bold italics): Chapter 18.65-SECOND UNITS AND TWO-UNIT DEVELOPMENTS 18.65.010-Purpose. The purpose of this chapter is to establish procedures and standards for the approval and creation ofsecond units and two-unit developments in accordance with the requirements of Government Code Section 65852.2L 18.65.020-Ministerial review;standardfor denial A. Notwithstanding any other provision of this code, an application for a second unit or a two-unit development shall be considered ministerially, without discretionary review or a hearing, and shall be approved if it meets all of the requirements ofthis chapter. B. An application for a second unit or a two-unit development shall be reviewed by the Planning Director through the administrative site and architectural review process, as described in Chapter 18.63, and the decision may be appealed in accordance with Section 18.63.020(C). C. Notwithstanding subsection A, the City may deny an application for a second unit or two-unit development ifthe building official, or designee, makes a writtenfinding,based upon a preponderance ofthe evidence,that the proposed second unit or two-unit development would have a specific, adverse impact, as defined in subsection (d)(2) of Government Code Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. 18.65.030—General requirements. Proposed second units and two-unit developments. A. Shall be located in the RM,R1-20,RI-10, or R1-7.2 zoning district; B. Shall be located on a parcel that meets all the requirements ofsubsections a)(6)(B) through (A)(6)(%), inclusive, of Government Code Section 65913.4; C. Shall not require or allow the demolition or alteration of any of the following types ofhousing. CC Ord No. 336 Page 11 of 16 January 25,2022 E.7.c Packet Pg. 91 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 1. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. 2. Housing that is subject to anyform ofrent orprice control through apublic entity's valid exercise ofits police power. 3.Housing that has been occupied by a tenant in the last threeyears; D. Shall not require or allow the demolition ofmore than 25 percent of the existing exterior structure walls on the parcel if the parcel has been occupied by a tenant in the last three years, E. Shall not be located on a parcel on which an owner of residential real property has exercised the owner's rights under Chapter 12.75 commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodationsfrom rent or lease within 15 years before the date that the development proponent submits an application; and F. Shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Public Resources Code Section 5020.1, or within a site that is designated or listed as a City or county landmark or historic property or districtpursuant to a City or county ordinance. 18.65.040-Development standards. A second unit,and both of the units in a two-unit development,shall comply with all of thefollowing development standards: A. Con muration. A second unit, and both units ofa two-unit development, may be attached to, adjacent to, or detached from any other structure on the parcel, subject to subsections C and D of Section 18.65.030. Subject to the requirements ofthis chapter,a second unit may be added to aparcel either by (i) the construction of a new residential dwelling unit, (ii) the conversion ofan existing structure into a residential dwelling unit, or(iii) the bifurcation of an existing residential dwelling unit into two separate residential dwelling units B. Size. A second unit,and both ofthe units in a two-unit development,shall be no larger than 800 square feet infloor area each. C. Height A second unit, and both of the units in a two-unit development, shall be no taller than 16 feet in height from ground level and shall be CC Ord No. 336 Page 12 of 16 January 25,2022 E.7.c Packet Pg. 92 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) one-story. The units shall not be located on the second or any higher story ofa structure. D. Setbacks No setback beyond the existing setback shall be requiredfor an existing structure orfor a unit constructed in the same location and to the same dimensions as an existing structure. In all other circumstances, second units, and both units of a two-unit development, shall be set back at least 4 feetfrom the side and rear lot lines E. Separation Between Detached Units There shall be at least 15 feet of separation between all detached units on a parcel,including second units, primary units, both units of a two-unit development if they are not attached, and detached accessory dwelling units F. Parking. 1.One off-streetparking space is requiredfor a second unit and one off-streetparking spaceper unit is requiredfor each unit of'a two- unit development. 2. Notwithstanding subsection F.1, no parking spaces are required for a second unit or a two-unit development if either. a.Theparcel is located within one-halfmile walking distance of either a high-quality transit corridor, as defined in subsection (b) ofPublic Resources Code Section 21155, or a major transit stop, as defined in Public Resources Code Section 21064.3; or b.There is a car share vehicle located within one block of the parcel G. Wastewater. 1. Prior to issuance of a building permitfor a second unit or either unit ofa two-unit development, a video of the sewer lines that will be connected to the units)shall be conducted to show there are no sewer line constraints, as determined by the City Engineer. Any sewer line constraints shall be resolved to ensure adequate sewer capacity for all units on the parcel, as determined by the City Engineer,prior to issuance of a building permit. 2. Prior to issuance of a building permit for a second unit or either unit of a two-unit development that will be connected to an onsite wastewater treatment system, the applicant shall provide documentation of a percolation test completed within the lastfive CC Ord No. 336 Page 13 of 16 January 25,2022 E.7.c Packet Pg. 93 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) years,or,ifthepercolation test has been recertified, within the last ten years If the City Engineer finds that the onsite wastewater treatment system is inadequate to serve the proposed units, the system shall be repaired, replaced,or otherwise modified to ensure adequate capacity for all units on the parcel, as determined by the City Engineer,prior to issuance ofa buildingpermit, H. Separate Entrances. A second unit, and both of the units in a two-unit development, shall each have a separate entrance. I.Additional Development Standards Except as provided in subsections A through H, second units, and each unit of a two-unit development, shall comply with all development standards that would be applicable to a primary dwelling unit on the same parcel, J. Limitation on Enforcement of Development Standards With the exceptions of the setback requirements in subsection D and the requirement to comply with all building codes, the City shall not enforce any development standard to the extent that it would have the effect of physically precluding the construction of a second unit or two-unit development on a parcel, or would physically preclude either the second unit or both units of a two-unit development from being at least 800 squarefeet in floor area. 18. 65.050- Total number ofunits A. This chapter does not authorize or require the approval ofmore than two primary dwelling units on a single parcel, For purposes of this subsection, "primary dwelling units" means dwelling units other than accessory dwelling units orjunior accessory dwelling unit A Notwithstanding any other provision in this chapter, the approval of second units and two-unit developments on a parcel that was created through an urban lot split shall be limited as described in Section 17.30.060. 18.65.060-Design standards. Second units, and each unit of a two-unit development, shall comply with all objective design standards that would be applicable to a primary dwelling unit on the same parcel, 18.65.070-Rental term. Second units and the units in a two-unit development shall not be rented for a term ofless than thirty-one(31) consecutive days CC Ord No.336 Page 14 of 16 January 25,2022 E.7.c Packet Pg. 94 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 18 65.080-Affordable rent requirement. Second units, and both units of a two-unit development, if rented, shall only be rented at an affordable rentfor lower-income households, as defined in Health and Safety Code Section 50053, and shall only be rented to lower-income households, as defined in Health and Safety Code Section 50079.5, for a minimum ofSS year& Prior to the issuance ofa certificate of occupancyfor any second unit or any unit ofa two-unit development,the owner oftheproperty shall execute and record on the property a deed restriction, in a form approved by the director and the City Attorney, establishing legal restrictions consistent with this Section. SECTION 19. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional. SECTION 20. Posting. The City Clerk shall certify to the passage and adoption of this Ordinance by the City Council and shall cause this ordinance to be published or posted in accordance with Government Code Section 36933 as required by law. SECTION 21. Effective Date. Pursuant to Government Code Section 36937, this Urgency Ordinance shall take effective immediately upon approval of the same by a four-fifths 4/5) affirmative vote of the City Council. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 25th day of January, 2022. Darcy c oe Ma ATTEST: ebra Thomas City Clerk CC Ord No.336 Page 15 of 16 January 25,2022 E.7.c Packet Pg. 95 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) APPROVED AS TO FORM: Adrian R. Guerra City Attorney CC Ord No. 336 Page 16 of 16 January 25,2022 E.7.c Packet Pg. 96 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) 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 Ordinance, being Ordinance No. 336-U 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 25t' day of January 2022, and that the same was passed and adopted by the following vote: AYES: Council Members Allen, Wilson, Robles; Mayor McNaboe NOES: None. ABSENT: Mayor Pro Tern Hussey ABSTAIN: None. Executed this 26U'day of January 2022, at Grand Terrace, California. I',—1&/j - - - Debra L. Thomas City Clerk SEAL] E.7.c Packet Pg. 97 At t a c h m e n t : 3 3 6 - U ( S B 9 O r d i n a n c e a n d A D U / J A D U O r d i n a n c e ) AGENDA REPORT MEETING DATE: May 10, 2022 Council Item TITLE: Award of Contract for HVAC Preventative Maintenance and Repair Services to Loma Linda Heat and Air Conditioning Inc. PRESENTED BY: Luis Gardea, Building Official RECOMMENDATION: 1. Award and Approve an Agreement for HVAC Services to Loma Linda Heat and Air Conditioning Inc. in the amount of $70,916.80 with an initial 3-year term and 2 automatic extensions of 1 year each. 2. Authorize the City Manager to execute the Agreement subject to City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports Goal #2 “Ensuring Our Fiscal Viability.” BACKGROUND: On November 15, 2016, the City entered into a 3-year Maintenance Service Agreement with ACCO Engineered Systems for heating, ventilation, and air conditioning (HVAC) Preventative Maintenance Services and Air Filter and Boiler Water Treatment Services. The contract expired on November 15, 2019. DISCUSSION: City staff issued bid documents for HVAC Services in accordance with the City’s purchasing ordinance. On April 12, 2022, the City issued a Notice Inviting Bids for HVAC Maintenance and Repair Services, and two (2) bids were submitted. The companies and their total base bids are as follows: Annual Compensation Total Compensation for Initial 3 years Bid 1 Honeywell Building Solutions $50,099.00 $150,297 Bid 2 Loma Linda Heat and Air Conditioning Inc. $14,183.36 $42,550.08 As shown above, Loma Linda Heat and Air Conditioning Inc. is the lowest bidder. The contractor's and subcontractor’s licenses are valid, in good standing, and references provided positive feedback. The contract will have an initial term of three years with a G.8 Packet Pg. 98 maximum of (2) one-year automatic extensions. The annual compensation for each of the one-year extensions will also be $14,183.36. This means that the total compensation for Loma Linda Heat and Air Conditioning Inc. for all 5 years would be $70,916.80. The scope of work includes: HVAC equipment preventative maintenance and repair at City Hall; Air Filter Service, Air Quality, Replacement of UV Light Bulbs, and Emergency Service. The scope of work also calls for a warranty to be provided on replacement equipment. Furthermore, the scope of work requires a quarterly performance review, and allows the City to conduct inspections at any time to ensure the proper level of preventative maintenance service is performed on the HVAC equipment. Staff is recommending that Council award to and approve an Agreement with Loma Linda Heat and Air Conditioning Inc. in an amount not to exceed $14,183.36 annually (total compensation for the initial three-year term: $42,550.08; total compensation for the entire 5 years: $70,916.80) for HVAC Preventative Maintenance and Repair Services and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. Alternatively, the City Council may also reject all bids. FISCAL IMPACT: There are funds budgeted in the FY2021-22 Adopted Budget General Fund (10-195- 257) to cover the remaining quarterly cost of HVAC Maintenance Services ($3,545.84). ATTACHMENTS: • Loma Linda Heat and Air Conditioning Inc. Contract & Exhibit (DOCX) • Loma Linda Heat & Air Conditioning (PDF) • Honeywell Comprehensive Maintenance (PDF) • Final Draft - Bid for HVAC Maintenance and Repair Services 2022(DOCX) APPROVALS: Luis Gardea Completed 05/05/2022 3:04 PM City Attorney Completed 05/05/2022 3:04 PM Finance Completed 05/05/2022 3:04 PM City Manager Completed 05/05/2022 3:04 PM City Council Pending 05/10/2022 6:00 PM G.8 Packet Pg. 99 01247.0026/740766.1 PUBLIC WORKS AGREEMENT By and Between CITY OF GRAND TERRACE and LOMA LINDA HEAT AND AIR CONDITIONING INC. G.8.a Packet Pg. 100 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -1- 01247.0026/740766.1 AGREEMENT FOR PUBLIC WORKS SERVICES BETWEEN THE CITY OF GRAND TERRACE AND LOMA LINDA HEAT AND AIR CONDITIONING INC. This AGREEMENT FOR PUBLIC WORKS SERVICES BETWEEN THE CITY OF GRAND TERRACE AND LOMA LINDA HEAT AND AIR CONDITIONING INC. (herein “Agreement”) is made and entered into this 10th day of May, 2022 by and between the City of GRAND TERRACE, a California municipal corporation (“City”) and LOMA LINDA HEAT AND AIR CONDITIONING INC., a California corporation (“Contractor”). City and Contractor may be referred to, individually or collectively, as “Party” or “Parties.” RECITALS A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement. B. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services. C. Pursuant to the City of Grand Terrace Municipal Code, City has authority to enter into and execute this Agreement. D. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows: ARTICLE 1. WORK OF CONTRACTOR 1.1 Scope of Work. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the “Scope of Work” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the work required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all G.8.a Packet Pg. 101 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -2- 01247.0026/740766.1 materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 1.2 Contract Documents. The Scope of Work shall include the “General Provisions” and “Special Provisions” contained in as provided in this Agreement, all of which are incorporated herein by this reference. In the event of any inconsistency between the terms of the bid documents and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. Contractor shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered. 1.4 Compliance with California Labor Law. (a) Public Work. The Parties acknowledge that the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Contractor shall post job site notices, as prescribed by regulation. (b) Prevailing Wages. Contractor shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Contractor acknowledges receipt of a copy of the Department of Industrial Relations (DIR) determination of the prevailing rate of per diem wages, and Contractor shall post a copy of the same at each job site where work is performed under this Agreement. (c) Penalty for Failure to Pay Prevailing Wages. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor. (d) Payroll Records. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified G.8.a Packet Pg. 102 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -3- 01247.0026/740766.1 in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records. (e) Apprentices. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement. (f) Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810. (g) Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay. (h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” Contractor’s Authorized Initials ________ (i) Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement. Contractor shall take all actions necessary G.8.a Packet Pg. 103 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -4- 01247.0026/740766.1 to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Contractor shall diligently take corrective action to halt or rectify any such failure by any subcontractor. 1.5 Licenses, Permits, Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits, registrations, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder. 1.6 Familiarity with Work. (a) By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of work to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. (b) Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any: (i) material Contractor believes may be hazardous waste as defined in Section 25117 of the Health & Safety Code required to be removed to a Class I, II, or III disposal site in accordance with existing law; (ii) subsurface, unknown or latent conditions, materially different from those indicated; or (iii) unknown physical conditions at the site of any unusual nature, different from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement, and will materially affect the performance of the services hereunder. (c) City shall promptly investigate the conditions, and if it finds that the conditions do materially differ, or do involve hazardous waste, and cause a decrease or increase in Contractor's cost of, or the time required for, performance of any part of the work, shall issue a change order per Section 1.10 of this Agreement. (d) In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided G.8.a Packet Pg. 104 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -5- 01247.0026/740766.1 either by contract or by law, which pertain to the resolution of disputes and protests between the contracting parties. (e) City will compensate Contractor to the extent required by Government Code Section 4215 by issuing a change order per Section 1.10 of this Agreement. 1.7 Protection and Care of Work and Materials. The Contractor shall adopt reasonable methods, including providing and maintaining storage facilities, during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as caused by City’s own negligence. Stored materials shall be reasonably accessible for inspection. Contractor shall not, without City’s consent, assign, sell, mortgage, hypothecate, or remove equipment or materials which have been installed or delivered and which may be necessary for the completion of the work. 1.8 Warranty. Contractor warrants all work under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the work or non-conformance of the work to the Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act as soon as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair, remove and replace any portions of the work (or work of other contractors) damaged by its defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct defective work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. G.8.a Packet Pg. 105 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -6- 01247.0026/740766.1 Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand. 1.9 Further Responsibilities of Parties. Both parties agree to use reasonable care and diligence to perform their respective obligations under this Agreement. Both parties agree to act in good faith to execute all instruments, prepare all documents and take all actions as may be reasonably necessary to carry out the purposes of this Agreement. Unless hereafter specified, neither party shall be responsible for the service of the other. 1.10 Additional Work and Change Orders. (a) City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Work or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor (“Change Order”). All Change Orders must be signed by the Contractor and Contract Officer prior to commencing the extra work thereunder. (b) Any increase in compensation of up to ten percent (10%) of the Contract Sum or any increase in the time to perform of up to one hundred eighty (180) days; and does not materially affect the Work and which are not detrimental to the Work or to the interest of the City, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. (c) Any adjustment in the Contract Sum for a Change Order must be in accordance with the rates set forth in the Schedule of Compensation in Exhibit “C”. If the rates in the Schedule of Compensation do not cover the type of work in the Change Order, the cost of such work shall not exceed an amount agreed upon in writing and signed by Contractor and Contract Officer. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order completed, to the satisfaction of the City, as follows: (i) Labor: the cost of labor shall be the actual cost for wages of workers and subcontractors performing the work for the Change Order at the time such work is done. The use of labor classifications that would increase the cost of such work shall not be permitted. (ii) Materials and Equipment: the cost of materials and equipment shall be at cost to Contractor or lowest current price which such materials and equipment are reasonably available at the time the work is done, whichever is lower. (iii) If the cost of the extra work cannot be agreed upon, the Contractor must provide a daily report that includes invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include: list of names of workers, classifications, and hours worked; description and list of quantities of materials used; type of G.8.a Packet Pg. 106 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -7- 01247.0026/740766.1 equipment, size, identification number, and hours of operation, including loading and transportation, if applicable; description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights for that day. (d) It is expressly understood by Contractor that the provisions of this Section 1.10 shall not apply to services specifically set forth in the Scope of Work. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. (e) No claim for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed. 1.11 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern. ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT. 2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Seventy Thousand Nine Hundred Sixteen Dollars and Eighty Cents ($70,916.80) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10. 2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services less the contract retention; (iii) payment for time and materials based upon the Contractor’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation. 2.3 Reimbursable Expenses. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, G.8.a Packet Pg. 107 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -8- 01247.0026/740766.1 and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Contractor at all project meetings reasonably deemed necessary by the City. Coordination of the performance of the work with City is a critical component of the services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings. 2.4 Invoices. Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Contractor is certifying compliance with all provisions of the Agreement. The invoice shall contain all information specified in Exhibit “C”, and shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Contractor shall not invoice City for any duplicate services performed by more than one person. City shall, as soon as practicable, independently review each invoice submitted by the Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, or as provided in Section 7.3, City will cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice; however, Contractor acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event that City does not cause Contractor to be paid within thirty (30) days of receipt of an undisputed and properly submitted invoice, Contractor shall be entitled to the payment of interest to the extent allowed under Public Contract Code Section 20104.50. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor, not later than seven (7) days after receipt by the City, for correction and resubmission. Returned invoices shall be accompanied by a document setting forth in writing the reasons why the payment request was rejected. Review and payment by the City of any invoice provided by the Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law. 2.5 Waiver. Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor. ARTICLE 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in G.8.a Packet Pg. 108 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -9- 01247.0026/740766.1 the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively. 3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of the Agreement pursuant to this Section. 3.4 Inspection and Final Acceptance. City may inspect and accept or reject any of Contractor’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Contractor’s work within forty-five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as to amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Articles 1 and 5, pertaining to warranty and indemnification and insurance, respectively. 3.5 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). ARTICLE 4. COORDINATION OF WORK 4.1 Representatives and Personnel of Contractor. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: G.8.a Packet Pg. 109 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -10- 01247.0026/740766.1 Miles Volsch CEO (Name) (Title) It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance. 4.2 Status of Contractor. Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Contractor expressly waives any claim Contractor may have to any such rights. 4.3 Contract Officer. The Contract Officer shall be the City Manager or such person as may be designated by the City Manager. It shall be the Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. 4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly G.8.a Packet Pg. 110 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -11- 01247.0026/740766.1 independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. 4.5 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. All subcontractors shall obtain, at its or Contractor’s expense, such licenses, permits, registrations and approvals (including from the City) as may be required by law for the performance of any services or work under this Agreement. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City. ARTICLE 5. INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance Coverages. Without limiting Contractor’s indemnification of City, and prior to commencement of any services under this Agreement, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. (a) General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (b) Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (c) Professional liability (errors & omissions) insurance. Contractor shall maintain professional liability insurance that covers the Services to be performed in connection G.8.a Packet Pg. 111 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -12- 01247.0026/740766.1 with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Contractor agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ compensation insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). (e) Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”. 5.2 General Insurance Requirements. (a) Proof of insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (b) Duration of coverage. Contractor shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Contractor, its agents, representatives, employees or subcontractors. (c) Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non- contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. (d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned G.8.a Packet Pg. 112 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -13- 01247.0026/740766.1 policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (f) Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. (g) Enforcement of contract provisions (non-estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (i) Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. (k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Contractor agrees to ensure that its subcontractors and any other party involved with the project who is brought onto or involved in the project by G.8.a Packet Pg. 113 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -14- 01247.0026/740766.1 Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. (n) Agency’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. (o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (p) Timely notice of claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (q) Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 5.3 Indemnification. To the full extent permitted by law, Contractor agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“indemnitors”), or arising from Contractor’s or indemnitors’ reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or G.8.a Packet Pg. 114 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -15- 01247.0026/740766.1 activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees. In addition, Contractor agrees to indemnify, defend and hold harmless the Indemnified Parties from, any and all claims and liabilities for any infringement of patent rights, copyrights or trademark on any person or persons in consequence of the use by the Indemnified Parties of articles to be supplied by Contractor under this Agreement, and of which the Contractor is not the patentee or assignee or has not the lawful right to sell the same. Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Contractor in the performance of professional services and work hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement. 5.4 Notification of Third-Party Claims. City shall timely notify Contractor of the receipt of any third-party claim relating to the work under this Agreement. City shall be entitled to recover from Contractor its reasonable costs incurred in providing such notification. ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION 6.1 Records. Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies, certified and accurate copies of payroll records in compliance with all applicable laws, or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times G.8.a Packet Pg. 115 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -16- 01247.0026/740766.1 during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of 3 years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest. Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act. 6.2 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed. 6.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City. 6.4 Confidentiality and Release of Information. (a) Information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such G.8.a Packet Pg. 116 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -17- 01247.0026/740766.1 information or work product to persons or entities other than City without prior written authorization from the Contract Officer. (b) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena. (c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Contractor’s conduct. (d) Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION 7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California. 7.2 Disputes. (a) Default; Cure. In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Contractor is in default, the City shall hold all invoices and shall proceed with payment on the invoices only when the default is cured. In the alternative, the City may, in its sole discretion, elect G.8.a Packet Pg. 117 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -18- 01247.0026/740766.1 to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Contractor’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement. (b) Dispute Resolution. This Agreement is subject to the provisions of Article 1.5 (commencing at Section 20104) of Division 2, Part 3 of the California Public Contract Code regarding the resolution of public works claims of less than $375,000. Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by the Contractor, for the response to such claims by the City, for a mandatory meet and confer conference upon the request of the Contractor, for mandatory non-binding mediation in the event litigation is commenced, and for mandatory judicial arbitration upon the failure to resolve the dispute through mediation. This Agreement hereby incorporates the provisions of Article 1.5 as though fully set forth herein. 7.3 Retention of Funds. Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor’s acts or omissions in performing or failing to perform Contractor’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or G.8.a Packet Pg. 118 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -19- 01247.0026/740766.1 different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Contractor shall file a claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement. 7.7 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of Five Hundred Dollars ($500) as liquidated damages for each working day of delay in the performance of any service required hereunder, as specified in the Schedule of Performance (Exhibit “D”). The City may withhold from any monies payable on account of services performed by the Contractor any accrued liquidated damages. Pursuant to Government Code Section 4215, Contractor shall not be assessed liquidated damages for delay in completion of the project when such delay was caused by the failure of the public agency or owner of the utility to provide for removal or relocation of utility facilities. 7.8 Termination Prior to Expiration of Term. This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2. G.8.a Packet Pg. 119 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -20- 01247.0026/740766.1 7.9 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. 7.10 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. 7.11 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Agreement. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment of the Parties. ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 8.1 Conflict of Interest. Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor G.8.a Packet Pg. 120 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -21- 01247.0026/740766.1 without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.2 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class. 8.3 Unauthorized Aliens. Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City. ARTICLE 9. MISCELLANEOUS PROVISIONS 9.1 Notices. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton Road, Grand Terrace, California 92313, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. All correspondence relating to this Agreement shall be serialized consecutively. G.8.a Packet Pg. 121 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -22- 01247.0026/740766.1 9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 9.5 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 9.6 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or G.8.a Packet Pg. 122 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -23- 01247.0026/740766.1 employee, as a result of consequence of obtaining or being awarded any agreement. Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect. Contractor’s Authorized Initials _______ 9.7 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] G.8.a Packet Pg. 123 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) -24- 01247.0026/740766.1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: City of Grand Terrace, a municipal corporation _____________________________________ Konrad Bolowich, City Manager ATTEST: _____________________________________ Debra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _____________________________________ Adrian R. Guerra, City Attorney CONTRACTOR: LOMA LINDA HEAT AND AIR CONDITIONING INC. By: _________________________________ Name: Title: By: _________________________________ Name: Title: Address: Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY. G.8.a Packet Pg. 124 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2022 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. G.8.a Packet Pg. 125 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2022 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. G.8.a Packet Pg. 126 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 A-1 EXHIBIT “A” SCOPE OF WORK I. Contractor shall perform all of the work and comply with all of the specifications and requirements in Exhibit A-1, including, but not limited to, the “General Provisions” and “Special Provisions”. II. Brief description of the work to be performed under this Agreement is as follows (“Project”): A. Preventative maintenance and repair of the HVAC mechanical equipment for Grand Terrace City Hall building. III. In addition to the requirements of Section 6.2, during performance of the work, Contractor will keep the City apprised of the status of performance by delivering status reports on a weekly basis and pursuant to the construction timeline. Contractor shall also deliver status reports as may be required by the City from time to time. IV. All work is subject to review and acceptance by the City, and must be revised by the Contractor without additional charge to the City until found satisfactory and accepted by City. V. If applicable, Contractor shall provide safe and continuous passage for pedestrian and vehicular traffic in accordance with the Work Area Traffic Control Handbook (WATCH), latest edition. G.8.a Packet Pg. 127 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 A-2 EXHIBIT “A-1” HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES Contractor shall perform heater, ventilation, and air conditioning (“HVAC”) preventative maintenance and repair services as provided in this Agreement (“Services”). All work shall be done in accordance with federal, state and local codes and regulations. The Services includes, but is not limited to, the following: I. Service Location: Grand Terrace City Hall: 22795 Barton Road, Grand Terrace, CA 92313 II. General Services A. The Services shall include, but not be limited to, the following: 1. Contractor shall provide a comprehensive evaluation of the existing HVAC System at City facilities and provide detailed report that includes assessment of the current condition of the system and its various components as well as recommendations for repair or replacement of equipment with an estimate of cost. 2. Contractor shall provide preventative maintenance services (refer to Sample Preventative Maintenance Program) for HVAC equipment including Automation, Water Treatment and Air Filter Services with annual cost. 3. Contractor shall provide maximum warranty for existing equipment and/or replacement equipment 4. Contractor shall provide hourly rates for service call-outs (outside of routine maintenance schedule) III. Equipment A. Equipment covered by this specification includes electro-mechanical systems, HVAC, water heaters, pumps, controls, roof-mounted components, mechanical room devices, UV light bulbs, VAV control boxes, and related critical component functions, materials, parts and operations. (Please refer to the Equipment List included in this Exhibit “A-1”). IV. Maintenance Service A. Contractor must utilize computer generated preventative maintenance task scheduling to ensure timely and uniform maintenance on all equipment. The computer shall use the building's run time, the equipment's run time, the equipment manufacturer's recommendations and the Contractor's maintenance experience to generate the required maintenance tasks and the required frequency of task performance. B. Contractor shall schedule a technician to perform HVAC preventative maintenance service on all equipment at a frequency adequate to meet the required level of G.8.a Packet Pg. 128 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 A-3 service, but no less than quarterly (refer to the Equipment List and Sample Preventative Maintenance Service Plan for further details) C. The City shall be provided with a copy of the computer generated preventative maintenance task schedule by the Contractor D. Upon completion of each service call, Contractor shall provide a service report to the Public Works Director or his designee for signature. E. The details from the completed service report shall be entered into the computer database by the Contractor. This will ensure performance control and continuous program updating. F. On a semi-annual basis, the Contractor shall supply the City with a copy of the computer database. V. Repair or replacement of parts. components and devices A. All parts, components and devices that are worn or not in optimal functional condition shall be repaired, or at the City's option, replaced with new parts, components or devices. When parts, components or devices are replaced in their entirety and a new design is available and is functionally equivalent and compatible, the parts, components or device of the newer design shall be used as the replacements. B. Warranty shall be provided for replacement parts, components or devices VI. Air Filter Services A. Contractor will furnish and install air filters appropriate for the design condition of the City's ventilation systems. Air filter media for the fan system units listed under the Equipment List in this Scope of Services will be replaced no less than quarterly. VII. Additional Services A. Additional services outside the existing scope of work, for HVAC maintenance and repairs may be required, for example, the installation of additional HVAC units. Pursuant to Section 1.10, the City may request an itemized quote for additional work, said quote shall include any and all additional parts and/or labor necessary to complete the additional work. VIII. Air Quality A. HVAC System must not aggravate any "indoor air pollution" in the building B. System should provide a minimum of 25 percent makeup fresh air to avoid the "Sick Building Syndrome" C. Contractor shall conduct semi-annual random measurements of air flows to ensure that the proper level of air flows and the proper air circulations are maintained: - G.8.a Packet Pg. 129 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 A-4 D. During the course of preventative maintenance service the Contractor shall identify and report any potential microbiological growth sites or reservoirs. Potential problem areas can include, but are not limited to, drain pans with stagnant water, wet insulations, and wet acoustic ceiling tiles and possible outdoor contamination sources. E. To minimize the potential for microbiological growth, the Contractor shall apply disinfectant to the replacement air filter elements prior to their installation. The disinfectant must be non-toxic and must be approved by the City prior to application. IX. Emergency Service A. The Contractor shall provide emergency services on an as-needed basis. Emergency service shall be available on a 24/7 basis, weekends and holidays included. B. The Contractor shall provide the City with an after-hours emergency telephone number. C. The Contractor shall be capable of responding to an emergency situation within two (2) hours of notification of a HVAC system problem by the City. D. The responding technicians must be trained on the City's HVAC systems and their operations. E. All labor, overtime, parts, supplies and any other expenses incurred on an emergency service call shall be invoiced separately by the Contractor. X. INSPECTIONS The City reserves the right to conduct inspections to confirm that the proper levels of preventative maintenance service are performed on the HVAC equipment. If the City finds the preventative maintenance service fails to meet expectations, the City will notify the Contractor in writing. Contractor shall promptly correct any deficiencies within 3 business days. Failure to correct such deficiencies will be considered a breach of the Contract. XI. PERFORMANCE REVIEW A review of the services provided within this Agreement will be performed by the Contractor on an annual basis. The Contractor and the Contract Officer will discuss work performed since the last review, answer questions pertaining to Service delivery, and identify opportunities to further improve performance of the City's HVAC equipment. G.8.a Packet Pg. 130 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 A-5 XII. CITY RESPONSIBILITIES The City will provide a reasonable means of access to the HVAC equipment. XIII. CONTRACTOR RESPONSIBILITIES A. The Contractor shall supply ALL necessary equipment, tools, instrumentation and labor to perform the HVAC preventative maintenance service as described herein B. The Contractor shall be responsible for repairs of damages incurred during the performance of the preventative maintenance service D. The Contractor shall provide a service i:e. port, which must include a copy of the check-off lists and/or work sheets used by the technician E. The Contractor shall be responsible for supplying any consumable materials such as filters, belts and water treatment chemicals and invoiced separately, at cost, unless otherwise informed by the City G.8.a Packet Pg. 131 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 A-6 EQUIPMENT LIST: ' QUANTITY LOCATION DESCRIPTION SIZE MODEL 1 Library Roof Package Unit 10 Tons Carrier 1 Meeting Room/ Package Unit 10 Tons Carrier Roof 1 Council Package Unit 5 Tons Carrier Chambers/Roof 1 Civic Center Package Unit 5 Tons Carrier 1 Civic Center Package Unit 5 Tons Carrier 1 Admin/Roof Package Unit 40 Tons Carrier G.8.a Packet Pg. 132 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 SAMPLE PREVENTATIVE MAINTENANCE SERVICE A. CONDENSING UNITS 1. Inspect and test electrical 2. Sequence test all controls and adjust as needed 3. Check and calibrate safety controls and limits 4. Check and tighten electrical connections and check contact points 5. Check operating voltages and currents 6. Lubricate all motors, pumps and fan bearings 7. Check pump seal 8. Check spray nozzles and adjust when required 9. Check water strainer 10. Check pump strainer and clean when required 11. Check float control and adjust when required 12. Check drip pan and drain connections 13. Check bleeder line and adjust when required 14. Check water valve setting 15. Check receiver levels 16. Pump down system as required 17. Check bearings for end play, temperature and wear 18. Check motor mounts and belt tension, adjust when required 19. Check fan wheels and blades for dirt accumulation, clearance, rotation, and balance 20. Check for visible refrigerant leaks 2 I. Check temperature rise across coil 22. Check sub-cooling leaving condenser 23. Check oil levels 24. Check condition of coil surface and fins 25. Wash coils with water where possible 26. Check air intake screen B. AIR COOLED CONDENSER 1. Clean heat exchanger surface as required 2. Examine surface for corrosion 3. Adjust automatic controls 4. Check air intake screen 5. Check for refrigerant leaks 6. Check condenser for blade and housing clearance 7. Lubricate condenser fan motors and bearings as required 8. Check and adjust condenser fan belt tension as required 9. Check operation of pressure and temperature controls 10. Check condenser screws and bolts for tightness 11. Check condenser fan amperage and voltage 12. Scrape, clean and repair rust spots as required G.8.a Packet Pg. 133 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 13. Check coils for dirt and wash coils with water where possible C. RECIPROCATING COMPRESSORS 1. Check suction pressure with compressor under load 2. Check discharge pressure with compressor under load 3. Check oil pressure 4. Check compressor amperage and voltage 5. Check evaporator fan amperage 6. Check condenser fan amperage 7. Check and record oil level 8. Check pump amperage 9. Check oil for acid 10. Check refrigerant level 11. Check refrigerant system for leaks 12. Check operation of oil safety 13. Check operation of high-pressure cut-out 14. Check operation of other safeties 15. Check and adjust all operating controls as required 16. Check all wiring, tighten all terminals and check contacts 17. Check condenser temperature differential (Delta "T") 18. Check and adjust V-belts as required D. FAN COILS 1. Inspect and test electrical disconnect 2. Sequence test all controls 3. Check and tighten electrical connections and check contact points 4. Check operating currents 5. Lubricate bearings 6. Check bearings for end play, temperature and wear 7. Check motor mounts, belt tension and condition 8. Check fan wheels for dirt accumulation, clearance, rotation, and balance 9. Check drives for wear and alignment 10. Check for visible refrigerant leaks 11. Check temperature drop across evaporator coil 12. Check TXV bulb location, strapping, and insulation 13. Check condition of coil surfaces and fins 14. Check condensate pans and drains 15. Check ice patterns 16. Check defrost controls 17. Change air filters as needed E. FURNACES (GAS OR ELECTRIC) 1. Inspect and test electrical disconnect 2. Sequence test all controls G.8.a Packet Pg. 134 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 3. Check and calibrate safety controls and limits 4. Check and tighten electrical connections and check contact points 5. Check combustion 6. Check gas train controls, burners and pilot including pilot safety device 7. Clean pilot 8. Check automatic gas valve 9. Lubricate bearings 10. Check bearings for end play, temperature and wear 11. Check motor mounts, belt tension and condition 12. Check fan wheels and blades for dirt accumulation, clearance, rotation, and balance 13. Check fan limit control 14. Check drives for wear and alignment. 15. Check temperature delta 16. Change air filters as needed 17. Check Flue connection, restriction and operation 18. Test ignition control system F. AIR HANDLERS l. Inspect and test electrical disconnect 2. Sequence test all controls 3. Check and calibrate safety controls and limits 4. Check starter 5. Check and tighten electrical connections, and check contact points 6. Check operating voltages and currents 7. Lubricate bearings 8. Check motor pulley and belts for security, alignment and wear 9. Check bearings for end play, temperature and wear 10. Check motor mounts, belt tension and condition 11. Check fan wheels and blades for dirt accumulation, clearance, rotation, balance and vibration 12. Check wire and conduit for condition from motor to starter 13. Check for visible leaks 14. Check condition of coil surfaces and fins 15. Check condensate pans and drains 16. Change air filters as required 17. Check fan and motor alignment 18. Check motor for excessive heat and noise 19. Check rotation of motor G. HEAT PUMP PACKAGE UNITS I. Inspect and test electrical disconnect 2. Sequence test all controls 3. Check and calibrate safety controls and limits 4. Check and tighten electrical connections, and check contact points G.8.a Packet Pg. 135 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 5. Check operating voltages and currents 6. Lubricate bearings 7. Check bearings for end play, temperature and wear 8. Check motor mounts, belt tension and condition 9. Check fan wheels and blades for dirt accumulation, clearance, rotation and balance 10. Check couplings and drive for wear and alignment 11. Check for visible refrigerant leaks 12. Check temperature drop across evaporator coil 13. Check TXV bulb location, strapping, and insulation 14. Check crankcase heater 15. Check condition of coil surfaces and fins 16. Check condensate pans and drains 17. Test operation of reversing valve 18. Change air filters as needed H. PACKAGED AIR CONDITIONING UNITS 1. Check compressor oil pressure and level 2. Check refrigerant sight glass and perform leak test 3. Check and clean air-cooled condenser coil 4. Check condenser fan and motor bearings - Lubricate as required 5. Check supply fan motor bearings - Lubricate as required 6. Check drain pan - Drain and clean as required 7. Clean coils and inlet screen as required 8. Change air filter as required 9. Clean and lubricate all damper bearings and linkage 10. Check all wiring and connections 11. Check for proper operation of gas furnace section - Perform gas furnace inspections as required 12. Check, adjust and calibrate all temperature controls 13. Clean, paint and repair corroded and rust spots as required I. FANS AND BLOWERS 1.) Inspect and test electrical disconnect. 2) Check and tighten electrical connections and check contact points. 3) Check operating voltage and currents. 4) Check sheave condition 5) Lubricate bearings and all moving parts 6) Check bearings for end play, temperature and wear 7) Check motor mounts, belt tension and condition 8) Adjust tension on all belt drives 9) Check wheels and blades for dirt accumulation, clearance, rotation, and balance 10) Check couplings and drives for wear and alignment G.8.a Packet Pg. 136 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 J. DAMPERS (AUTOMATIC OR MANUAL) 1} Check and adjust for correct operation 2) Check all linkage and adjust where necessary 3) Check fire dampers for flexible links K. ECONOMIZERS I) Lubricate damper linkages 2) Check condition of actuators 3) Check motor L. MOTORS AND MOTOR CONTROLS I)Clean oil and/or grease 2) Check for overload under full operation 3) Check contactors and clean as necessary 4) Check time clock for proper settings 5) Check and adjust operation of all electric or pneumatic controls 6} Check motor speeds 7) Check amperage draws 8) Check voltages 9} Secure motor mounts 10) Check bearings M. CONTROLS - ELECTRIC/PNEUMATIC 1) Check thermostat contacts 2) Check starter contacts 3} Check damper motors/actuators 4) Check refrigerator air dryer 5) Check air controls and filters 6) Check air compressor intake and air filter 7) Check air compressor oil 8) Check air compressor belt 9) Lubricate air compressor motor 10) Spot check stats for calibration G.8.a Packet Pg. 137 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) G.8.a Packet Pg. 138 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 EXHIBIT “C” SCHEDULE OF COMPENSATION I. Contractor shall perform all work at the rates submitted as part of Contractor’s Proposal as provided in Exhibit C-1, provided that the City does not expressly or by implication agree that the actual amount of work will correspond with quantities given in Exhibit C- 1, but reserves the right to increase or decrease the amount of any class or portion as deemed necessary or advisable by the City Engineer. Contractor shall be paid $3,545.84 on a quarterly basis and Contractor’s total annual compensation shall be as follows: Year 1 Year 2 Year 3 Year 4 (First Automatic Extension Term) Year 5 (Second Automatic Extension Term) $14,183.36 $14,183.36 $14,183.36 $14,183.36 $14,183.36 II. A retention of five percent (5%) shall be held from each payment as a contract retention to be paid as part of the final payment upon satisfactory completion of services. III. Within the budgeted amounts for each item above, and with the approval of the Contract Officer, funds may be shifted from one item’s subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Work is approved per Section 1.10. IV. The City will compensate Contractor for the Services performed upon submission of a valid invoice. Each invoice is to include: A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate. B. Line items for all materials and equipment properly charged to the Services. C. Line items for all other approved reimbursable expenses claimed, with supporting documentation. D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services. V. The total compensation for the Services shall not exceed $70,916.80 as provided in Section 2.1 of this Agreement. G.8.a Packet Pg. 139 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 EXHIBIT C-1 CONTRACTOR’S PROPOSAL G.8.a Packet Pg. 140 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 01247.0026/740766.1 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Contractor shall perform all Services timely and in accordance with a project schedule to be developed by Contractor and the Contract Officer (consistent with Exhibits “A” and “A-1”, which project schedule shall be subject to the written approval of the Contract Officer. Further, Contractor shall perform such Services timely and in accordance with plans and specifications as provided in Exhibits “A” and “A-1”. Contractor shall immediately commence all Services upon the City sending Contractor a written Notice to Proceed. II. The Contract Officer may approve extensions for performance of the services in accordance with Section 1.10. III. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding three (3) years from the date hereof (“Initial Term”). After the Initial Term, this Agreement shall automatically continue for no more than two (2) successive one (1) year terms unless this Agreement is terminated in accordance with Article 7 of this Agreement. G.8.a Packet Pg. 141 At t a c h m e n t : L o m a L i n d a H e a t a n d A i r C o n d i t i o n i n g I n c . C o n t r a c t & E x h i b i t ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.b Packet Pg. 142 At t a c h m e n t : L o m a L i n d a H e a t & A i r C o n d i t i o n i n g ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 143 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 144 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 145 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 146 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 147 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 148 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 149 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 150 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 151 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 152 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 153 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 154 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 155 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 156 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 157 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 158 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 159 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 160 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 161 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 162 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) G.8.c Packet Pg. 163 At t a c h m e n t : H o n e y w e l l C o m p r e h e n s i v e M a i n t e n a n c e ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) CITY OF GRAND TERRACE COUNTY OF SAN BERNARDINO STATE OF CALIFORNIA REQUEST FOR PROPOSALS FOR HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES Issue Date: April 12, 2022 Proposal Due: April 22, 2022 [Editor’s Note: Timeline Dates below are Subject to Change] • Issuance of Bid by City Tuesday, April 12, 2022 (11:00 am) • Deadline Questions/Clarification Requests Friday, April 22, 2022 (11:00 am) • Presentation to City Council for Final Approval Tuesday, May 10, 2022 (6:00 pm) G.8.d Packet Pg. 164 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) TABLE OF CONTENTS SECTION PAGE NOTICE INVITING BIDS ........................................................................................................ A-1 INSTRUCTIONS TO BIDDERS .............................................................................................. C-1 PROPOSAL DOCUMENTS Proposal................................................................................................................... ..... C-5 Bidding Schedule .............................................................................................. ........... C-7 Addenda Acknowledgement ......................................................................................... C-9 Bidders Information ....................................................................................................C-10 Designation of Subcontractors..................................................................................... C-12 References .................................................................................................................C-13 Non-Collusion Affidavit ...............................................................................................C-14 Form of Bid Bond........................................................................................................... C-15 CONTRACT AGREEMENT Contract Agreement................................................................................................... ... D-1 Scope of Services (See Exhibit A)............................................................................. ... Worker's Compensation Insurance Certificate............................................................. . D-10 EXHIBIT A SCOPE OF SERVICES with Equipment List and Sample Preventative Maintenance Program G.8.d Packet Pg. 165 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) A-3 NOTICE INVITING BIDS (HVAC PREVENTATIVE MAINTENANCE & REPAIR SERVICES) NOTICE IS HEREBY GIVEN that the City Clerk, on behalf of and as authorized by the City Council of the City of Grand Terrace (hereinafter referred to as the "City"), will receive sealed bids at 22795 Barton Road Grand Terrace, California, 92313 in care of the City Clerk, until 11:00 a.m. on Friday, April 22, 2022 for HVAC preventative maintenance and repair services at City of Grand Terrace facilities designated as: HVAC PREVENTATIVE MAINTENANCE & REPAIR SERVICES BID NO. 22- At the time designated for receiving sealed bids on said Project, the bids will be publicly opened, examined and read aloud. All bids must be in writing, must be sealed in an opaque envelope, and addressed to the City, c/o City Clerk, and delivered or mailed to the City at 22795 Barton Road Grand Terrace, California 92313 in care of the City Clerk. The envelope shall be plainly marked in the upper left-hand corner as follows: ATTENTION: CITY OF GRAND TERRACE c/o CITY CLERK (BIDDER'S NAME AND ADDRESS) BID FOR: HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES Contractor must have a Class C20 “HVAC Contractor” License. Any bid received after the hour stated above for any reason whatsoever, will not be considered for any purpose but will be returned, unopened, to the bidder. This project involves HVAC Preventative Maintenance and Repair Services at City of Grand Terrace City Hall building. The work shall be done under the supervision of the Director of Public Works / City Engineer and no work or portion of the work shall be paid for until it is approved for payment by the Director of Public Works / City Engineer, but this shall not prevent approval of and payment for completed portions of the work as it progresses, payment acceptance of these portions or of the completed project. Each bidder must submit a proposal to the City, c/o City Clerk, on standard forms provided in the bid package. Said proposal is to be accompanied by a cash deposit, a certified or cashier’s check, or a bid bond, made payable to the City, in an amount not less than 10 percent of the total bid submitted. Said cash deposit or check shall be forfeited or said bond shall become payable in the event the bidder depositing the same does not within ten (10) calendar days after written notice execute the Contract. The successful bidder will be required to furnish certificates of insurance evidencing G.8.d Packet Pg. 166 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) A-4 that all insurance coverage as required by the Specification has been so secured. The Contractor may, at Contractor’s sole cost and expense, substitute securities equivalent to any monies withheld by the City to insure performance under the Contract. Such securities shall be deposited with the City, or a state federally chartered bank as escrow agent, who shall pay such monies to the Contractor upon satisfactory completion of the Contract. Such securities, if deposited by the Contractor, will be valued by the City, whose decision on valuation of the securities shall be final. The Contractor shall be the beneficial owner of any securities substituted for monies withheld and shall receive any accrued interest thereon. Securities eligible for investment shall include those listed in Government Code Section 16430. No such substitution shall be accepted until the escrow agreement, letter of credit, form of security and any other document related to said substitution is reviewed and found acceptable by the City’s attorney. The City reserves the right to waive any informalities or irregularities or to reject any or all bids, or any portions of any bid, or to reject and then negotiate the amount and/or terms of any bid with any bidder, and to be the sole judge of the merits of the respective bids received. The award of Contract, if made, will be on the basis of the lowest cost to the City to a responsible bidder whose proposal complies with all the prescribed requirements. No bidder may withdraw his bid for a period of thirty (30) days after the bid opening. Contract Documents, including the Plans and Specifications, may be examined at the City of Grand Terrace Public Works Department located at 22795 Barton Road, Grand Terrace, CA 92313 or may be obtained by email request to Shanita Tillman, Management Analyst, stillman@grandterrace-ca.gov Any questions regarding the bid documents should be directed via e-mail to the Interim Public Works Director, Kamran Dadbeh kdadbeh@grandterrace-ca.gov The successful bidder will be required to pay not less than the prevailing wage scale, determined by the Director of the California Department of Industrial Relations, copies of which scale are on file in the office of the City Clerk and the office of the Director of Public Works / City Engineer, and which shall be made available to any interested party upon request. The Contractor shall execute the Contract and shall secure all insurance required within ten (10) calendar days after the Contractor has been notified in writing of the award of the Contract. Payments will be made in cash to the Contractor in accordance with the provisions of the Specifications and on itemized estimates duly certified and approved by the Director of Public Works / City Engineer submitted in accordance therewith, based on labor and materials incorporated into said work during the preceding month by the Contractor. G.8.d Packet Pg. 167 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) A-5 City of Grand Terrace BY: (Date) Debra Thomas, City Clerk G.8.d Packet Pg. 168 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) INSTRUCTIONS TO BIDDERS CITY OF GRAND TERRACE BID NO: 22-01 CITY CLERK'S OFFICE DUE: Apr. 22, 2022 22795 BARTON ROAD at 11:00 A.M. GRAND TERRACE, CA 92313 Submit bid in sealed envelope as indicated on the cover sheet BIDS NOT DELIVERED PRIOR TO THE HOUR INDICATED WILL BE REJECTED WE ARE PLEASED TO ISSUE THE ENCLOSED SPECIFICATIONS FOR YOUR CONSIDERATION FORM OF PROPOSAL: The bidder shall submit a complete proposal which will include this set of Specifications and any other documents required by these Specifications. The complete proposal shall be enclosed in a sealed envelope bearing the name of the bidder and of the project. In the event there is more than one bidding schedule, the bidder may bid on any individual schedule or on any combination of schedules. All quotations must be signed with the firm's name and by a responsible officer or employee. Obligations assumed by such signature must be fulfilled. Prices quoted by the bidder shall be exclusive of Federal Excise Taxes pursuant to exemption of political subdivision of a State by Federal Law. Prices quoted by the bidder shall mean total cost to the City, Freight on Board, delivered to the City of Grand Terrace. ADDENDA: Any addenda issued during the time of bidding forming a part of the documents shall be acknowledged on the next page of the Bidding Schedule Section C and will be made a part of the Contract. DELIVERY OF PROPOSAL: The proposal shall be delivered by the time and to the place stipulated in the Notice Inviting Bids. It is the bidder's sole responsibility to see that his proposal is received in proper time. Any proposal received after the scheduled closing time for receipt of proposal will be returned to the bidder unopened. WITHDRAWAL OF PROPOSAL: If for any reason you do not wish to bid on the project, mark NO BID and state your reasons for not bidding at this time. This withdrawal request must be signed by the bidder or his authorized representative. Such written request must be delivered to the place stipulated in the Notice Inviting Bids prior to the scheduled closing time for receipt of proposals. By following the necessary withdrawal procedures, you will enhance our efforts to keep our bidders list current. The withdrawal of a proposal shall not prejudice the right of a bidder to file a new proposal. OPENING OF PROPOSALS: The proposals will be publicly opened and read at the time and place stipulated in the Notice Inviting Bids. The City Council of the City of Grand Terrace reserves the right to reject any and all proposals and/or waive any informalities thereon. C-1 G.8.d Packet Pg. 169 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) We hope you will attend our formal bid opening and obtain the results as we are unable to complete our evaluation and furnish this information by phone until noon the following day. The complete proposal including proposal guaranty shall be enclosed in sealed envelope, endorsed with the bidder's company name and address on the upper left corner, the bid number, name of project, hour and date of bid opening as shown in Notice Inviting Bids and the words "Sealed Bid". Sealed bids shall be addressed to the City of Grand Terrace c/o City Clerk, 22795 Barton Road, Grand Terrace, California 92313. MODIFICATIONS AND ALTERNATIVE PROPOSAL: Unauthorized conditions, limitations, or provisions attached to a proposal will render it informal and may cause its rejection. The completed proposal forms shall be without interlineations, alterations, or erasures. Alternative proposals will not be considered unless specified. Oral, telegraphic, or telephonic proposals or modifications will not be considered. The City of Grand Terrace cannot honor any explanation or changes in the bid documents unless written addendum has been issued. DISCREPANCIES IN PROPOSALS: In the event there is more than one bid item in a bidding schedule, the bidder shall furnish a price for all bid items in the schedule, and failure to do so will render the proposal informal and may cause its rejection. In the event there are unit price bid items in a bidding schedule and the "amount" indicated for a unit price bid item does not equal the product of the unit price and quantity, the unit price shall govern and the amount will be corrected. PROPOSAL GUARANTEE: Each proposal shall be accompanied by a certified or cashier's check or bid bond in the amount of not less than 10 percent of the total amount named in the proposal. Said check or bond shall be made payable to the City and shall be given as a guarantee that the bidder, if awarded the work, will enter into a Contract within 15 calendar days after receipt of the Contract from the City, and will furnish the necessary insurance certificates, faithful performance bond, and labor and material bond; each of said bonds to be in the amount stated in the Notice Inviting Bids. In case of refusal or failure to enter into said Contract, the check or bid bond, as the case may be, shall be forfeited to the City. If the bidder elects to furnish a bid bond as his proposal guarantee, he shall use the bid bond form bound herein, or one conforming substantially to it in form. BIDDER'S EXAMINATION OF SITE: Before submitting a proposal, bidder shall carefully examine the drawings, specifications, and other Contract Documents, and shall visit the site of the work. It will be assumed that the bidder is familiar with existing site conditions and has a clear understanding of the requirements of the Contract regarding the furnishing of materials and performance of work. The submission of a proposal shall be considered conclusive evidence that the bidder has investigated and is satisfied with the character, quality, quantities of work to be performed and materials to be furnished. COMPETENCY OF BIDDERS: In selecting the lowest responsible bidder, consideration will be given not only to the financial standing but also to the general competency of the bidder for the performance of the work covered by the proposal. To this end, each proposal shall be supported by a statement of the bidder's experience as of recent date on the form C-2 G.8.d Packet Pg. 170 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-3 entitled "INFORMATION REQUIRED OF BIDDER", bound herein. The bidder shall have recently completed not less than 3 projects of similar type and complexity. No proposal for the work will be accepted from a Contractor who is not licensed in accordance with applicable state law. CONTRACTOR'S LICENSING LAWS: In all State projects where Federal funds are involved, no bid submitted shall be invalidated by the laws of this State. However, at the time the Contract is awarded, the Contractor shall be properly licensed in accordance with the laws of this State. The first payment for work or material under any contract shall not be made by the Controller unless and until the Registrar of Contractors certifies to the Controller that the records of the Contractors State License Board indicate that the Contractor was properly licensed at the time the Contract was awarded. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by law, including, but not limited to, any appropriate disciplinary action by the Contractors State License Board. The department shall include a statement to that effect in the standard form of prequalification questionnaire and financial statement. Failure of the bidder to obtain proper and adequate licensing for an award of a Contract shall constitute a failure to execute the Contract as provided in Section 10181 and shall result in the forfeiture of the security of the bidder. DISQUALIFICATION OF BIDDERS: More than one proposal from an individual, firm, partnership, corporation, or association under the same or different names will not be considered. Reasonable grounds for believing that any bidder is interested in more than one proposal for the work contemplated will cause the rejection of all proposals in which such bidder is interested. If there is reason for believing that collusion exists among the bidders, all bids will be rejected and none of the participants in such collusion will be considered in future proposals. No proposal will be accepted from a Contractor who is not licensed in accordance with the provision of Chapter 9 of Division III of the Business and Profession Code. RETURN OF PROPOSAL GUARANTY: The City will return the proposal guarantees accompanying each of the proposals which are not used in making the award once the Contract has been finally executed. AWARD OF CONTRACT: Award of a Contract, if it is awarded, will be based primarily on the lowest overall cost (total project with additive bids) to the City, and will be made to a responsible bidder whose proposal complies with all the requirements prescribed. Preference will be given by the City of Grand Terrace to the lowest responsible bidder furnishing products made in the continental United States. Where the price of an acceptable American made product is within 5% of a non-American made product, award will be made to the domestic manufacturer. G.8.d Packet Pg. 171 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-4 Evaluation of the bidder's experience and additional information requested on the form "INFORMATION REQUIRED OF BIDDERS", bound herein, also will be a determining factor in arriving at an award. Any such award will be made within 60 calendar days after opening of the proposals. Unless otherwise indicated, a single award will not be made for less than all the bid items in an individual bidding schedule. In the event there is more than one bidding schedule, the City may award schedules individually or in combination. The City reserves the right to reject any or all bids, to waive any informality in a bid, and to make awards in the interests of the City. EXECUTION OF CONTRACT: The bidder to whom award is made shall execute a written Contract with the City on the form of agreement provided, shall secure all insurance and shall furnish all certificates and bonds required by the Specifications within 10 calendar days after receipt of the Contract from the City. No Contract shall be binding upon the City until the City Attorney has approved the Contract execution between the City and Contractor. Failure or refusal to enter into a Contract as herein provided or to conform to any of the stipulated requirements in connection therewith shall be just cause for annulment of the award and the forfeiture of the proposal guarantee. If the successful bidder refuses or fails to execute the Contract, the City may award the Contract to the second lowest responsible bidder. If the second lowest responsible bidder refuses or fails to execute the Contract, the City may award the Contract to the third lowest bidder to execute the Contract; such bidder's guarantees shall be likewise forfeited to the City. TIME OF COMPLETION: The Contractor shall be allotted the number of working days as specified in the Agreement to complete the work to the satisfaction of the City. G.8.d Packet Pg. 172 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-5 PROPOSAL FOR HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES Bids due no later than 11:00 AM on Friday, April 22, 2022 at the office of the City Clerk. TO: CITY OF GRAND TERRACE, acting by and through its Governing Body, herein called the "CITY". Pursuant to and in compliance with your Notice to Contractors calling for Bids and other documents relating thereto, the undersigned bidder, having familiarized himself with the terms of the Contract, the local conditions affecting the performance of the Contract, and the cost of the work at the place where the work is to be done, and with the drawings and specifications and other Contract Documents, hereby proposed and agrees to perform within the time stipulated, the Contract, including all of its component parts, and everything required to be performed, and to provide and furnish any and all applicable taxes, utility and transportation services necessary to perform the Contract and complete in a workmanlike manner all of the work required in connection with the project known as: “HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES”. All in strict conformity with the specifications and other Contract Documents, including Addenda No. , and , on file at the OFFICE OF THE CITY CLERK, 22795 BARTON ROAD, GRAND TERRACE, CALIFORNIA, 92313, for the sum of: (SEE BID SCHEDULE FOR COST BREAKDOWN OF ITEMS) COMPANY NAME TITLE CITY ZIP CODE TELEPHONE ( ) CONTRACTOR’S LICENSE NO. DIR REGISTRATION NO. G.8.d Packet Pg. 173 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-6 DATE BIDDER’S NAME, ADDRESS & PHONE CONTRACTOR’S LICENSE NO. CITY BUSINESS LICENSE NO. (if available) CORPORATE SEAL Corporation incorporated under the State of TELEPHONE: (Area Code) BY: Signature Print or type name TITLE: Names and addresses of all members of co-partnership or names and titles of all officers of the corporation: G.8.d Packet Pg. 174 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-7 BID SCHEDULE FOR HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES BIDDER: (Company Name) BASE BID: Preventative Maintenance, Inspections and Seasonal Start-Up ITEM NO. DESCRIPTION OF ITEMS ESTIMATED QUANTITY SERVICE FREQUENCY UNIT PRICE IN WORDS UNIT PRICE TOTAL ANNUAL COST 1 City Hall 22795 Barton Road 6 Units 1 Boiler 1 Pump Quarterly 2 Air Filter Service 48 Quarterly 3 Automation Service: Honeywell Web Interface for five XL 10 Controllers 5 Annual 4 Boiler – Water Treatment Service 1 Semi-Annual 5 Comprehensive Evaluation of existing HVAC system at City facilities with recommendations and estimates (See Scope of Work General Services) 1 One Time TOTAL BASE BID: (WORDS) $ (FIGURE) G.8.d Packet Pg. 175 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-8 BASIS OF AWARD: THE CITY WILL MAKE AN AWARD TO THE LOWEST, RESPONSIVE/RESPONSIBLE BIDDER. THE LOWEST, RESPONSIVE BIDDER WILL BE DETERMINED BY THE TOTAL BASE BID. ADDITIONAL WORK ITEM NO. DESCRIPTION OF ITEMS UNIT REGULAR TIME OVERTIME EMERGENCY CALL-OUT 1. Labor Hourly Rates 1a. Certified Technician Hour 1b. Assistant Technician Hour TOTAL PERCENTAGE MARK-UP 2. Percentage Mark-Up on Material / Parts Each TOTAL YEARS FOR WARRANTY 3. Warranty Year G.8.d Packet Pg. 176 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-9 ADDENDA ACKNOWLEDGMENT The undersigned acknowledges receipt of the following ADDENDA and the cost if any, or such revisions have been included in the TOTAL BID of the Bidding Schedule (s). ADDENDUM NO. , DATED ADDENDUM NO. , DATED ADDENDUM NO. , DATED ADDENDUM NO. , DATED Name of Bidder Address State License No. Telephone No. By: Signature Title Date the day of , G.8.d Packet Pg. 177 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-10 BIDDER'S INFORMATION BIDDER certifies that the following information is true and correct: Bidder's Name Business Address Telephone State Contractor's License No. Original Date Issued Expiration Date The following are the names, titles, addresses, and telephone numbers of all individuals, firm members, partners, joint ventures, and/or corporate officers having a principal interest in this proposal: The dates of any voluntary or involuntary bankruptcy judgments against any principal having an interest in this proposal, or any firm, corporation, partnership or joint venture of which any principal having an interest in this proposal was an owner, corporate officer, partner, or joint venture are as follows: All current and prior DBA's, alias, and/or fictitious business names for any principal having an interest in this proposal are as follows: G.8.d Packet Pg. 178 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-11 IN WITNESS WHEREOF, BIDDER executes and submits this proposal with the names, title, hands, and seals of all aforenamed principals this day of , 20 . BIDDER Subscribed and sworn to this day of , 20 . NOTARY PUBLIC G.8.d Packet Pg. 179 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-12 DESIGNATION OF SUBCONTRACTORS BIDDER proposes to subcontract certain portions of the work, and to procure materials and equipment from suppliers and vendors as follows: NAME, ADDRESS, TELEPHONE NUMBER, LICENSE NO., AND DIR REG NO. OF SUBCONTRACTORS ITEMS OF WORK Prior to award of contract, Contractor shall submit a list of suppliers and vendors in writing to the City Engineer. G.8.d Packet Pg. 180 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-13 REFERENCES The Contractor shall list in the spaces provided below, not less than three comparable contracts which have been completed within the past two years. Contract Year(s) Type of Work Performed Annual Contract Amount Client/Agency Name Contact Name/Title Phone Number G.8.d Packet Pg. 181 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-14 NON-COLLUSION AFFIDAVIT STATE OF CALIFORNIA ) ) SS COUNTY OF ) (NAME), affiant being first duly sworn, deposes and says: that he or she is the of (sole owner, partner, other proper title) , the party making the foregoing bid and (Contracting Firm Name) that the Bid is not made in the interest of, or on behalf of, any undisclosed person, partnership, company, association, organization, or corporation; that the Bid is genuine and not collusive or sham; that the Bidder has not directly or indirectly induced or solicited any other Bidder to put in a false or sham Bid, and has not directly or indirectly colluded, conspired, connived, or agreed with any Bidder or anyone else to put in a sham Bid, or that anyone shall refrain from bidding; that the Bidder has not in any manner, directly or indirectly sought by agreement, communication, or conference with anyone to fix the bid price of the Bidder or any other Bidder, or to fix any overhead, profit, or cost element of the bid price, or of that of any other Bidder, or to secure any advantage against the public body awarding the Contract of anyone interested in the proposed Contract; that all statements contained in the Bid are true; and, further, that the Bidder has not, directly or indirectly, submitted his or her bid price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company associations, organization, bid depository, or to any member or agent thereof to effectuate a collusive or sham Bid. (Public Contract Code Section 7106) Bidder's Name: Bidder's Address: Telephone No.: (Signature of Bidder) (Title) G.8.d Packet Pg. 182 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-15 All signatures must be notarized and securely attached to this form. FORM OF BID BOND KNOW ALL MEN BY THESE PRESENTS, that we, the undersigned, , as Principal, and as Surety, are hereby and firmly bound unto as Owner in the penal sum of for the payment of which, will and truly to be made, we hereby jointly and severally bind ourselves, our heirs, executors, administrator, successors and assigns. Signed this day of ,2022. The condition of the above obligation is such that whereas the Principal has submitted to certain Bid, attached hereto and hereby made a part hereof to enter into a Contract in writing for the HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES. NOW, THEREFORE, a. If said Bid shall be rejected, or in the alternate, b. If said Bid shall be accepted and the Principal shall execute and deliver a Contract in the Form of Contract attached hereto (properly completed in accordance with said Bid) and shall furnish a bond for his faithful performance of said Contract, and shall in all other respects perform the agreement created by said Bid, then this obligation shall be void, otherwise, the same shall remain in force and effect; it is expressly understood and agreed that the liability of the Surety for any and all claims hereunder shall, in no event, exceed the penal amount of this obligation as herein stated. The Surety, for value received, hereby stipulates and agrees that the obligation of said Surety and its bond shall be in no way impaired or affected by any extension of the time within which the Owner may accept such Bid; and said Surety does hereby waive notice G.8.d Packet Pg. 183 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) C-16 of any such extension. IN WITNESS WHEREOF, the Principal and the Surety have hereunto set their hands and seals, and such of them as are corporations have caused their corporate seals to be hereto affixed and these presents to be signed by their proper officers, the day and year first mentioned. PRINCIPAL: BY: SEAL G.8.d Packet Pg. 184 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) D-1 CONTRACT AGREEMENT THIS CONTRACTORS AGREEMENT (“Agreement”) is made and entered into this day of 2022, (“Effective Date”) by and between the CITY OF GRAND TERRACE (“City”), a public entity, and ., ("Contractor"), a California Corporation. 1. Scope of Services. Contractor shall perform all the services as described as follows: a) For and in consideration of the payments and agreements hereinafter mentioned to be made and performed by said City, said Contractor agrees with said City to perform and complete in a workmanlike manner all work required in the Scope of Services, attached as Exhibit A and incorporated by this reference. b) The Notice Inviting Bids, Instructions to Bidders, Proposal, Information required of Bidder, Specification, Drawings, Exhibits and all addenda issued by the City with respect to the foregoing prior to the opening of bids, are hereby incorporated in and made a part of this Agreement. 2. Term. This Agreement shall be effective on the date first written above and the Agreement shall remain in effect for three years unless terminated as provided herein. 3. Compensation/Payment. Contractor shall perform the Services under this Agreement for the total sum not to exceed _. Payment shall be made in accordance with City's usual accounting procedures upon receipt and approval of an itemized invoice setting forth the services performed. The invoices shall be delivered to City at the address set forth in Section 4, hereof. 4. Notices. Any notices required to be given hereunder shall be in writing and shall be personally served or given by mail. Any notice given by mail shall be deemed given when deposited in the United States Mail, certified and postage prepaid, addressed to the party to be served as follows: To City To G.8.d Packet Pg. 185 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) D-2 City of Grand Terrace 22795 Barton Rd. Bldg. B Grand Terrace, CA 92313 5. Prevailing Wage. If applicable, Contractor and all subcontractors are required to pay the general prevailing wage rates of per diem wages and overtime and holiday wages determined by the Director of the Department of Industrial Relations under Section 1720 et seq. of the California Labor Code and implemented the City Council of the City of Grand Terrace. The Director’s determination is on file and open to inspection in the office of the City Clerk and is referred to and made a part hereof; the wage rates therein ascertained, determined, and specified are referred to and made a part hereof as though fully set forth herein. 6. Contract Administration. A designee of the City will be appointed to administer this Agreement on behalf of City and shall be referred to herein as Contract Administrator. 7. Standard of Performance. While performing the Services, Contractor shall exercise the reasonable care and skill customarily exercised by reputable members of Contractors in the Metropolitan Southern California Area, and shall use reasonable diligence and best judgment while exercising its skill and expertise. 8. Personnel. Contractor shall furnish all personnel necessary to perform the Services and shall be responsible for their performance and compensation. Contractor recognizes that the qualifications and experience of the personnel to be used are vital to Contractor and timely completion of the Services. 9. Assignment and Subcontracting. Neither party shall transfer any right, interest, or obligation in or under this Agreement to any other entity without prior written consent of the other party. In any event, no assignment shall be made unless the assignee expressly assumes the obligations of assignor under this Agreement, in writing satisfactory to the parties. Contractor shall not subcontract any portion of the work required by this Agreement without prior written approval by the responsible City’s Contract Administrator. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including without limitation, the insurance obligations set forth in Section 13. Contractor acknowledges that any transfer of rights may require City Manager and/or City Council approval. 10. Independent Contractor. In the performance of this Agreement, Contractor and his employees, subcontractors and agents, shall act in an independent capacity as independent contractors, and not as officers or employees of the City or the City of Grand Terrace. Contractor acknowledges and agrees that the City has no obligation to pay or withhold state or federal taxes or to provide workers’ compensation or unemployment insurance to Contractor to Contractors employees, subcontractors and agents. Contractor as an independent contractor shall be responsible for any and all taxes that apply to Contractor as an employer. 11. PERS Eligibility Indemnity. In the event that Contractor or any employee, agent, or subcontractor of Contractor providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (“PERS”) to be eligible for enrollment in PERS as an employee of the City, Contractor shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer G.8.d Packet Pg. 186 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) D-3 contributions for PERS benefits on behalf of Contractor or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Contractor and any of its employees, agents, and subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits. 12 Indemnifications. 12.1 Indemnity. Except as to the sole negligence or willful misconduct of the City, Contractor shall defend, indemnify and hold the City, and its officers, employees and agents, harmless from any and all loss, damage, claim for damage, liability, expense or cost, including attorneys’ fees, which arises out of or is in any way connected with the performance of work under this Agreement by Contractor or any of the Contractor's employees, agents or subcontractors and from all claims by Contractor's employees, subcontractors and agents for compensation for services rendered to in the performance of this Agreement, notwithstanding that the City may have benefitted from their services. This indemnification provision shall apply to any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of Contractor or of Contractor's employees, subcontractors or agents. 12.2 Attorney’s Fees. The parties expressly agree that any payment, attorneys’ fees, costs or expense that the City incurs or makes to or on behalf of an injured employee under the City’s self-administered workers' compensation is included as a loss, expense or cost for the purposes of this Section, and that this Section shall survive the expiration or early termination of the Agreement. 13. Insurance. 13.1 General Provisions. Prior to the City’s execution of this Agreement, Contractor shall provide satisfactory evidence of, and shall thereafter maintain during the term of this Agreement, such insurance policies and coverage’s in the types, limits, forms and ratings required herein. The rating and required insurance policies and coverage’s may be modified in writing by the City’s Risk Manager or City Attorney, or a designee, unless such modification is prohibited by law. 13.1.1 Limitations. These minimum amounts of coverage shall not constitute any limitation or cap on Contractor’s indemnification obligations under Section 12 hereof. 13.1.2 Ratings. Any insurance policy or coverage provided by Contractor as required by this Agreement shall be deemed inadequate and a material breach of this Agreement, unless such policy or coverage is issued by insurance companies authorized to transact insurance business in the State of California with a policy holder’s rating of A- or higher and a Financial Class of VII or higher. 13.1.3 Cancellation. The policies shall not be canceled unless thirty (30) days prior written notification of intended cancellation has been given to City by certified or registered mail, postage prepaid. 13.1.4 Adequacy. The City, its officers, employees and agents make no representation that the types or limits of insurance specified to be carried by G.8.d Packet Pg. 187 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) D-4 Contractor pursuant to this Agreement are adequate to protect. If Contractor believes that any required insurance coverage is inadequate, Contractor will obtain such additional insurance coverage as deems adequate, at Contractor's sole expense. 13.2 Workers’ Compensation Insurance: By executing this Agreement, certifies that Contractor is aware of and will comply with Section 3700 of the Labor Code of the State of California requiring every employer to be insured against liability for workers’ compensation, or to undertake self-insurance before commencing any of the work. Contractor shall carry the insurance or provide for self-insurance required by California law to protect said Contractor from claims under the Workers’ Compensation Act. Prior to City's execution of this Agreement, Contractor shall file with City either (1) a certificate of insurance showing that such insurance is in effect, or that Contractor is self- insured for such coverage, or (2) a certified statement that Contractor has no employees, and acknowledging that if Contractor does employ any person, the necessary certificate of insurance will immediately be filed with City. Any certificate filed with City shall provide that City will be given ten (10) days prior written notice before modification or cancellation thereof. 13.3 Commercial General Liability and Automobile Insurance. Prior to City's execution of this Agreement, Contractor shall obtain, and shall thereafter maintain during the term of this Agreement, commercial general liability insurance and automobile liability insurance as required to insure against damages for personal injury, including accidental death, as well as from claims for property damage, which may arise from or which may concern operations by anyone directly or indirectly employed by, connected with, or acting for or on behalf of Contractor. The City and the City, and its officers, employees and agents, shall be named as additional insured’s under the Contractor’s insurance policies. 13.3.1 Contractor’s commercial general liability insurance policy shall cover both bodily injury (including death) and property damage (including, but not limited to, premises operations liability, products-completed operations liability, independent ’s liability, personal injury liability, and contractual liability) in an amount not less than $1,000,000 per occurrence and a general aggregate limit in the amount of not less than $2,000,000. 13.3.2 Contractors automobile liability policy shall cover both bodily injury and property damage in an amount not less than $500,000 per occurrence and an aggregate limit of not less than $1,000,000. All of Contractor’s automobile and/or commercial general liability insurance policies shall cover all vehicles used in connection with Contractor’s performance of this Agreement, which vehicles shall include, but are not limited to, owned vehicles, leased vehicles, Contractor’s employee vehicles, non-owned vehicles and hired vehicles. 13.3.3 Prior to City's execution of this Agreement, copies of insurance policies or original certificates and additional insured endorsements evidencing the coverage required by this Agreement, for both commercial general and automobile liability insurance, shall be filed with City and shall include the City and its officers, employees and agents, as additional insured’s. Said policies shall be in the usual form of commercial general and automobile liability insurance policies, but shall include the following provisions: It is agreed that the City of Grand Terrace and its officers, employees and agents, are added as additional insures under this policy, solely for work done by and on G.8.d Packet Pg. 188 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) D-5 behalf of the named insured for the City of Grand Terrace. 13.4 Subcontractors’ Insurance. Contractor shall require all of its subcontractors to carry insurance, in an amount sufficient to cover the risk of injury, damage or loss that may be caused by the subcontractors’ scope of work and activities provided in furtherance of this Agreement, including, but without limitation, the following coverage’s: Workers Compensation, Commercial General Liability, Errors and Omissions, and Automobile liability. Upon City’s request, Contractor shall provide City with satisfactory evidence that Subcontractors have obtained insurance policies and coverage’s required by this section. 14. Business Tax. Contractor understands that the Services performed under this Agreement constitutes doing business in the City of Grand Terrace, and Contractor agrees that Contractor will register for and pay a business tax pursuant to Chapter 5.04 of the Grand Terrace Municipal Code and keep such tax certificate current during the term of this Agreement. 15. Time of Essence. Time is of the essence for each and every provision of this Agreement. 16. City's Right to Employ Other. City reserves the right to employ other in connection with the Services. 17. Solicitation. Contractor warrants that they have not employed or retained any person or City to solicit or secure this Agreement, nor has it entered into any agreement or understanding for a commission, percentage, brokerage, or contingent fee to be paid to secure this Agreement. For breach of this warranty, City shall have the right to terminate this Agreement without liability and pay only for the value of work has actually performed, or, in its sole discretion, to deduct from the Agreement price or otherwise recover from Contractor the full amount of such commission, percentage, brokerage or commission fee. The remedies specified in this section shall be in addition to and not in lieu of those remedies otherwise specified in this Agreement. 18. General Compliance with Laws. Contractor shall keep fully informed of federal, state and local laws and ordinances and regulations which in any manner affect those employed by Professional, or in any way affect the performance of services by Contractor pursuant to this Agreement. Contractor shall at all times observe and comply with all such laws, ordinances and regulations, and shall be solely responsible for any failure to comply with all applicable laws, ordinances and regulations. 19. Amendments. This Agreement may be modified or amended only by a written Agreement and/or change order executed by the Contractor and the City. 20. Termination. City, by notifying Contractor in writing, shall have the right to terminate any or all of the services and work covered by this Agreement at any time, with or without cause. In the event of such termination, Contractor may submit s final written statement of the amount of Contractor's services as of the date of such termination based upon the ratio that the work completed bears to the total work required to make the report complete, subject to the City’s rights under Sections 16 and 21 hereof. In ascertaining the work actually rendered through the termination date, City shall consider completed work, work in progress and complete and incomplete reports and other documents only after delivered to City. G.8.d Packet Pg. 189 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) D-6 20.1 Other than as stated below, City shall give Contractor thirty (30) days prior written notice prior to termination. 20.2 City may terminate this Agreement upon fifteen (15) days written notice to Contractor, in the event: 20.2.1 Contractor substantially fails to perform or materially breaches the Agreement; or 20.2.2 City decides to abandon or postpone the Services. 21. Offsets. Contractor acknowledges and agrees that with respect to any business tax or penalties thereon, utility charges, invoiced fee or other debt which Contractor owes or may owe to the City, City reserves the right to withhold and offset said amounts from payments or refunds or reimbursements owed by City to Contractor. Notice of such withholding and offset shall promptly be given to by City in writing. In the event of a dispute as to the amount owed or whether such amount is owed to the City, City will hold such disputed amount until either the appropriate appeal process has been completed or until the dispute has been resolved. 22. Successors and Assigns. This Agreement shall be binding upon City and its successors and assigns, and upon Contractor and its permitted successors and assigns, and shall not be assigned by, Contractor either in whole or in part, except as otherwise provided in paragraph 9 of this Agreement. 23. Governing Law, Venue, Dispute Resolution and Attorneys' Fees. This Agreement shall be governed by and construed in accordance with laws of the State of California. Prior to commencing suit in a court of competent jurisdiction, any controversy, dispute or claim arising out of the Agreement shall first be submitted to an alternative dispute resolution process as set forth in Section 24 herein. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of San Bernardino, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county. In the event either party hereto shall bring suit to enforce any term of this Agreement or to recover any damages for and on account of the breach of any term or condition of this Agreement, it is mutually agreed that the prevailing party in such action shall recover all costs thereof, including reasonable attorneys' fees, to be set by the court in such action. 24. Alternative Dispute Resolution. In the event of any controversy, dispute or claim arising out of or relating to this Agreement, the parties hereto shall consult and negotiate with each other and, recognizing their mutual interest, attempt to reach a solution satisfactory to both parties. If they do not reach settlement within a period of 60 days, the matter shall be submitted to an alternative dispute resolution process, either nonbinding arbitration or mediation, (“Process”) by written notice from either party to the other. The parties shall meet and confer in good faith and select a Process and an arbitrator or a mediator that is agreeable to both sides. The selected Process shall be completed no later than 120 days (“Process Period”) after tender of the aforementioned written notice, unless the Parties mutually agree to an extension of the Process Period. If the matter is not successfully resolved by the selected Process, within the Process Period, the parties are free to commence litigation in a court of competent jurisdiction as defined in Section 23 herein. Any litigation commenced without both parties’ consent prior to the end of the Process Period, shall be subject to a stay until the end of the Process Period. The Parties further agree to equally bear the cost of the Process. G.8.d Packet Pg. 190 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) D-7 25. Nondiscrimination. During Contractor’s performance of this Agreement, Contractor shall not discriminate on the grounds of race, religious creed, color, national origin, ancestry, age, physical disability, mental disability, medical condition, including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sex, or sexual orientation, in the selection and retention of employees and subcontractors and the procurement of materials and equipment, except as provided in Section 12940 of the California Government Code. Further, Contractor agrees to conform to the requirements of the Americans with Disabilities Act in the performance of this Agreement. 26. Severability. Each provision, term, condition, covenant and/or restriction, in whole and in part, of this Agreement shall be considered severable. In the event any provision, term, condition, covenant and/or restriction, in whole and/or in part, of this Agreement is declared invalid, unconstitutional, or void for any reason, such provision or part thereof shall be severed from this Agreement and shall not affect any other provision, term, condition, covenant and/or restriction of this Agreement, and the remainder of the Agreement shall continue in full force and effect. 27. Authority: The individuals executing this Agreement and the instruments referenced herein on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions hereof and thereof. 28. Entire Agreement: This Agreement constitutes the final, complete, and exclusive statement of the terms of the agreement between the parties pertaining to the subject matter of this Agreement, and supersedes all prior and contemporaneous understandings or agreements of the parties. Neither party has been induced to enter into this Agreement by, nor is neither party relying on, any representation or warranty outside those expressly set forth in this Agreement. 29. Interpretation. City and Contractor acknowledge and agree that this Agreement is the product of mutual arms-length negotiations and accordingly, the rule of construction, which provides that the ambiguities in a document shall be construed against the drafter of that document, shall have no application to the interpretation and enforcement of this Agreement. 29.1 Titles and captions are for convenience of reference only and do not define, describe or limit the scope or the intent of the Agreement or any of its terms. References to section numbers are to sections in the Agreement unless expressly stated otherwise. 29.2 This Agreement shall be governed by and construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. G.8.d Packet Pg. 191 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) D-8 IN WITNESS WHEREOF City and Contractor have caused this Agreement to be duly executed the day and year first above written. THE CITY OF GRAND TERRACE, A public body By: _ Konrad Bolowich City Manager Attest: Debra Thomas City Clerk APPROVED AS TO FORM: Adrian Guerra City Attorney By: _ [Printed Name] G.8.d Packet Pg. 192 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) HVAC MAINTENANCE SERVICES WORKER'S COMPENSATION INSURANCE CERTIFICATE The Contractor shall execute the following form as required by the California Labor Code, Section 1860 and 1861: I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability worker's compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Contract. DATE: (Contractor) (By) D-10 G.8.d Packet Pg. 193 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) HVAC MAINTENANCE SERVICES EXHIBIT A HVAC PREVENTATIVE MAINTENANCE AND REPAIR SERVICES SCOPE OF S ERVICES The City of Grand Terrace seeks to retain a contractor for a period of three (3) years to provide heater, ventilation, and air conditioning (HVAC) preventative maintenance and repair services. All work shall be done in accordance with federal, state and local codes and regulations. The scope of services includes, but is not limited to, the following: Service Locations: City Hall: 22795 Barton Road, Grand Terrace, CA 92313 General Services • Provide a comprehensive evaluation of the existing HVAC System at City facilities and provide detailed report that includes assessment of the current condition of the system and its various components as well as recommendations for repair or replacement of equipment with an estimate of cost (See Item 7 of Bid Schedule) • Provide preventative maintenance services (refer to Sample Preventative Maintenance Program) for each City facility with annual cost • Provide maximum warranty for existing equipment and/or replacement equipment • Provide hourly rates for service call-outs (outside of routine maintenance schedule) A. Equipment • Equipment covered by this specification includes electro-mechanical systems, HVAC, boiler, water heaters, pumps, controls, roof-mounted components, mechanical room devices, and related critical component functions, materials, parts and operations. (Please refer to the Equipment List included in this Scope of Services). B. Maintenance Service • Contractor must utilize computer generated preventative maintenance task scheduling to ensure timely and uniform maintenance on all equipment. The computer shall use the building’s run time, the equipment’s run time, the equipment manufacturer’s recommendations and the Contractor’s maintenance experience to generate the required maintenance tasks and the required frequency of task performance. • Contractor shall schedule a technician to perform HVAC preventative maintenance service on all equipment at a frequency adequate to meet the required level of service, but no less than quarterly (refer to the Equipment List and Sample Preventative Maintenance Service Plan for further details) G.8.d Packet Pg. 194 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) HVAC MAINTENANCE SERVICES • The City shall be provided with a copy of the computer generated preventative maintenance task schedule by the Contractor • Upon completion of each service call, Contractor shall provide a service report to the Public Works Director or his designee for signature. • The details from the completed service report shall be entered into the computer database by the Contractor. This will ensure performance control and continuous program updating. • On a semi-annual basis, the Contractor shall supply the City with a copy of the computer database. C. Automation Service • Contractor shall maintain set-up and configuration of Honeywell Web Vision 1.0.35 interface with five XL10 Controllers for air conditioning control capabilities at City Hall • Contractor shall check connection between web interface activated temperature sensors and the five XL10 Controllers annually • Contractor shall trouble shoot and repair XL10 Controllers and field devices if air conditioning control system is not functioning properly D. Repair or replacement of parts, components and devices • All parts, components or devices that are worn or not in optimal functional condition shall be repaired, or at the City’s option, replaced with new parts, components or devices. When parts, components or devices are replaced in their entirety and a new design is available and is functionally equivalent and compatible, the parts, components or device of the newer design shall be used as the replacements. • Warranty shall be provided for replacement parts, components or devices E. Air Filter Services • Contractor will furnish and install air filters appropriate for the design condition of the City’s ventilation systems. Air filter media for the fan system units listed under the Equipment List in this Scope of Services will be replaced no less than quarterly. F. Additional Services • Additional services outside the existing scope of work, for HVAC maintenance and repairs may be required, for example, the installation of additional HVAC units. The City may request an itemized quote for additional work, said quote shall include any and all additional parts and/or labor necessary to complete the additional work. G. Water Analysis and Treatment Services • Contractor shall provide a treatment program for the control of scale, corrosion, and biological fouling. • Contractor shall perform water analysis of both chilled and hot water systems. The analysis shall be performed once in the spring (chilled water system) and once in the fall (hot water system). The results of the analysis shall be used to determine any required additions to the water treatment chemicals. G.8.d Packet Pg. 195 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) HVAC MAINTENANCE SERVICES • On systems requiring continuous analysis, the Contractor shall install an electronic monitoring system that will automate the water analysis process, and adjust chemical feed and bleed interval automatically. • Contractor will provide and maintain all monitoring equipment, and will supply biodegradable chemicals necessary to maintain proper water treatment. H. Air Quality • HVAC System must not aggravate any “indoor air pollution” in the building • System should provide a minimum of 25 percent makeup fresh air to avoid the “Sick Building Syndrome” • Contractor shall conduct semi-annual random measurements of air flows to ensure that the proper level of air flows and the proper air circulations are maintained. • During the course of preventative maintenance service the Contractor shall identify and report any potential microbiological growth sites or reservoirs. Potential problem areas can include, but are not limited to, drain pans with stagnant water, wet insulations, and wet acoustic ceiling tiles and possible outdoor contamination sources. • To minimize the potential for microbiological growth, the Contractor shall apply disinfectant to the replacement air filter elements prior to their installation. The disinfectant must be non-toxic and must be approved by the City prior to application. I. Emergency Service • The Contractor shall provide emergency services on an as-needed basis. Emergency service shall be available on a 24/7 basis, weekends and holidays included. • The Contractor shall provide the City with an after-hours emergency telephone number. • The Contractor shall be capable of responding to an emergency situation within two (2) hours of notification of a HVAC system problem by the City. • The responding technicians must be trained on the City’s HVAC systems and their operations. • All labor, overtime, parts, supplies and any other expenses incurred on an emergency service call shall be invoiced separately by the Contractor. INSPECTIONS The City reserves the right to conduct inspections to confirm that the proper levels of preventative maintenance service are performed on the HVAC equipment. If the City finds the preventative maintenance service fails to meet expectations, the City will notify the Contractor in writing. Contractor shall promptly correct any deficiencies within 3 business days. Failure to correct such deficiencies will be considered a breach of the Contract. PERFORMANCE REVIEW A review of the services provided within this Agreement will be performed by the Contractor on an annual basis. The Contractor and the Public Works Director will discuss work performed since the last review, answer questions pertaining to Service delivery, and identify opportunities to further improve performance of the City’s HVAC equipment. G.8.d Packet Pg. 196 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) HVAC MAINTENANCE SERVICES CITY RESPONSIBILITIES The City will provide a reasonable means of access to the HVAC equipment. CONTRACTOR RESPONSIBILITIES • The Contractor shall supply ALL necessary equipment, tools, instrumentation and labor to perform the HVAC preventative maintenance service as described herein • The Contractor shall be responsible for repairs of damages incurred during the performance of the preventative maintenance service • The Contractor shall provide a service report, which must include a copy of the check-off lists and/or work sheets used by the technician • The Contractor shall be responsible for supplying any consumable materials such as filters, belts and water treatment chemicals and invoiced separately, at cost, unless otherwise informed by the City G.8.d Packet Pg. 197 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) HVAC MAINTENANCE SERVICES EQUIPMENT LIST: QUANTITY LOCATION DESCRIPTION SIZE MODEL 1 Library Roof Package Unit 10 Tons Carrier 1 Meeting Room/ Roof Package Unit 10 Tons Carrier 1 Council Chambers/Roof Package Unit 5 Tons Carrier 1 Civic Center Package Unit 5 Tons Carrier 1 Civic Center Package Unit 5 Tons Carrier 1 Admin/Roof Package Unit 40 Tons Carrier AIR FILTER SERVICES Fan System Unit Quantity Size Type Changes Per Year All covered systems 48 Ave. 20-25-2 Pleated 4 G.8.d Packet Pg. 198 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) SAMPLE PREVENTATIVE MAINTENANCE SERVICE A. AIR COMPRESSORS AND REFRIGERATED AIR DRYERS 1. Inspect and test electrical disconnect 2. Sequence test all controls 3. Check and calibrate safety controls and limits 4. Check and tighten electrical connections and check contact points 5. Check operating voltages and currents 6. Lubricate bearings 7. Check motor mounts and belt tension 8. Align and tighten belts 9. Check couplings and drives for wear and alignment 10. Check and clean air intake filter 11. Check rotation 12. Check oil level and pressure 13. Check head pressure 14. Check suction pressure 15. Check head bolts and anchor bolts 16. Check refrigerant charge 17. Drain tank and check automatic tank drain 18. Inspect compressed air system for clean dry air supply 19. Check crank case heater B. CONDENSING UNITS 1. Inspect and test electrical 2. Sequence test all controls and adjust as needed 3. Check and calibrate safety controls and limits 4. Check and tighten electrical connections and check contact points 5. Check operating voltages and currents 6. Lubricate all motors, pumps and fan bearings 7. Check pump seal 8. Check spray nozzles and adjust when required 9. Check water strainer 10. Check pump strainer and clean when required 11. Check float control and adjust when required 12. Check drip pan and drain connections 13. Check bleeder line and adjust when required 14. Check water valve setting 15. Check receiver levels 16. Pump down system as required 17. Check bearings for end play, temperature and wear 18. Check motor mounts and belt tension, adjust when required 19. Check fan wheels and blades for dirt accumulation, clearance, rotation, and balance 20. Check for visible refrigerant leaks 21. Check temperature rise across coil 22. Check sub-cooling leaving condenser 23. Check oil levels G.8.d Packet Pg. 199 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 24. Check condition of coil surface and fins 25. Wash coils with water where possible 26. Check air intake screen C. AIR DRYER 1. Check automatic traps 2. Clean and lubricate traps as required 3. Clean condenser tubes and cover grills 4. Check expansion valve and refrigerant charge D. AIR COOLED CONDENSER 1. Clean heat exchanger surface as required 2. Examine surface for corrosion 3. Adjust automatic controls 4. Check air intake screen 5. Check for refrigerant leaks 6. Check condenser for blade and housing clearance 7. Lubricate condenser fan motors and bearings as required 8. Check and adjust condenser fan belt tension as required 9. Check operation of pressure and temperature controls 10. Check condenser screws and bolts for tightness 11. Check condenser fan amperage and voltage 12. Scrape, clean and repair rust spots as required 13. Check coils for dirt and wash coils with water where possible E. RECIPROCATING COMPRESSORS 1. Check suction pressure with compressor under load 2. Check discharge pressure with compressor under load 3. Check oil pressure 4. Check compressor amperage and voltage 5. Check evaporator fan amperage 6. Check condenser fan amperage 7. Check and record oil level 8. Check pump amperage 9. Check oil for acid 10. Check refrigerant level 11. Check refrigerant system for leaks 12. Check operation of oil safety 13. Check operation of high pressure cut-out 14. Check operation of other safeties 15. Check and adjust all operating controls as required 16. Check all wiring, tighten all terminals and check contacts 17. Check condenser temperature differential (Delta “T”) 18. Check and adjust V-belts as required G.8.d Packet Pg. 200 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) F. FAN COILS 1. Inspect and test electrical disconnect 2. Sequence test all controls 3. Check and tighten electrical connections and check contact points 4. Check operating currents 5. Lubricate bearings 6. Check bearings for end play, temperature and wear 7. Check motor mounts, belt tension and condition 8. Check fan wheels for dirt accumulation, clearance, rotation, and balance 9. Check drives for wear and alignment 10. Check for visible refrigerant leaks 11. Check temperature drop across evaporator coil 12. Check TXV bulb location, strapping, and insulation 13. Check condition of coil surfaces and fins 14. Check condensate pans and drains 15. Check ice patterns 16. Check defrost controls 17. Change air filters as needed G. FURNACES (GAS OR ELECTRIC) 1. Inspect and test electrical disconnect 2. Sequence test all controls 3. Check and calibrate safety controls and limits 4. Check and tighten electrical connections and check contact points 5. Check combustion 6. Check gas train controls, burners and pilot including pilot safety device 7. Clean pilot 8. Check automatic gas valve 9. Lubricate bearings 10. Check bearings for end play, temperature and wear 11. Check motor mounts, belt tension and condition 12. Check fan wheels and blades for dirt accumulation, clearance, rotation, and balance 13. Check fan limit control 14. Check drives for wear and alignment. 15. Check temperature delta 16. Change air filters as needed 17. Check Flue connection, restriction and operation 18. Test ignition control system H. AIR HANDLERS 1. Inspect and test electrical disconnect 2. Sequence test all controls 3. Check and calibrate safety controls and limits 4. Check starter 5. Check and tighten electrical connections, and check contact points G.8.d Packet Pg. 201 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 6. Check operating voltages and currents 7. Lubricate bearings 8. Check motor pulley and belts for security, alignment and wear 9. Check bearings for end play, temperature and wear 10. Check motor mounts, belt tension and condition 11. Check fan wheels and blades for dirt accumulation, clearance, rotation, balance and vibration 12. Check wire and conduit for condition from motor to starter 13. Check for visible leaks 14. Check condition of coil surfaces and fins 15. Check condensate pans and drains 16. Change air filters as required 17. Check fan and motor alignment 18. Check motor for excessive heat and noise 19. Check rotation of motor I. HEAT PUMP PACKAGE UNITS 1. Inspect and test electrical disconnect 2. Sequence test all controls 3. Check and calibrate safety controls and limits 4. Check and tighten electrical connections, and check contact points 5. Check operating voltages and currents 6. Lubricate bearings 7. Check bearings for end play, temperature and wear 8. Check motor mounts, belt tension and condition 9. Check fan wheels and blades for dirt accumulation, clearance, rotation and balance 10. Check couplings and drive for wear and alignment 11. Check for visible refrigerant leaks 12. Check temperature drop across evaporator coil 13. Check TXV bulb location, strapping, and insulation 14. Check crankcase heater 15. Check condition of coil surfaces and fins 16. Check condensate pans and drains 17. Test operation of reversing valve 18. Change air filters as needed J. PUMPS 1. Inspect and test electrical disconnect 2. Check and tighten electrical connections, contacts and motor overloads 3. Check operating voltages and currents 4. Lubricate bearings 5. Check bearings for end play, temperature and wear 6. Check motor mounts 7. Check couplings and drives for wear and alignment 8. Check seal for visible leaks 9. Check differential pressure G.8.d Packet Pg. 202 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) K. PACKAGED AIR CONDITIONING UNITS 1. Check compressor oil pressure and level 2. Check refrigerant sight glass and perform leak test 3. Check and clean air cooled condenser coil 4. Check condenser fan and motor bearings - Lubricate as required 5. Check supply fan motor bearings - Lubricate as required 6. Check drain pan - Drain and clean as required 7. Clean coils and inlet screen as required 8. Change air filter as required 9. Clean and lubricate all damper bearings and linkage 10. Check all wiring and connections 11. Check for proper operation of gas furnace section - Perform gas furnace inspections as required 12. Check, adjust and calibrate all temperature controls 13. Clean, paint and repair corroded and rust spots as required L. FANS AND BLOWERS 1) Inspect and test electrical disconnect. 2) Check and tighten electrical connections, and check contact points. 3) Check operating voltage and currents. 4) Check sheave condition 5) Lubricate bearings and all moving parts 6) Check bearings for end play, temperature and wear 7) Check motor mounts, belt tension and condition 8) Adjust tension on all belt drives 9) Check wheels and blades for dirt accumulation, clearance, rotation, and balance 10) Check couplings and drives for wear and alignment M. WATER TREATMENT 1) Check and report water treatment status including scale 2) Examine, test and adjust all water treatment devices 3) Perform periodic water analysis 4) Install and maintain electronic monitoring system on systems requiring continuous analysis 5) Clean and adjust water treatment equipment N. BOILERS 1) Check combustion 2) Check and clean pilot 3) Check fan limit control 4) Check pilot safety device 5) Check low water cut off 6) Check automatic water feeder 7) Check water strainer G.8.d Packet Pg. 203 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) 8) Check water pressure regulator 9) Check relief valve 10) Drain and recharge expansion tank 11) Slow down boiler and controls 12) Check automatic gas valve 13) Check boiler control settings 14) Check steam valves and traps, adjust controls as required O. DAMPERS (AUTOMATIC OR MANUAL) 1) Check and adjust for correct operation 2) Check all linkage and adjust where necessary 3) Check fire dampers for flexible links P. ECONOMIZERS 1) Lubricate damper linkages 2) Check condition of actuators 3) Check motor Q. MOTORS AND MOTOR CONTROLS 1) Clean oil and/or grease 2) Check for overload under full operation 3) Check contactors and clean as necessary 4) Check time clock for proper settings 5) Check and adjust operation of all electric or pneumatic controls 6) Check motor speeds 7) Check amperage draws 8) Check voltages 9) Secure motor mounts 10) Check bearings R. CONTROLS – ELECTRIC/PNEUMATIC 1) Check thermostat contacts 2) Check starter contacts 3) Check damper motors/actuators 4) Check refrigerator air dryer 5) Check air controls and filters 6) Check air compressor intake and air filter 7) Check air compressor oil 8) Check air compressor belt 9) Lubricate air compressor motor 10) Spot check stats for calibration G.8.d Packet Pg. 204 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) S. REFRIGERATION SYSTEMS 1) Check for proper operation of purger 2) Check accumulator and intercooler level 3) Check high and control pressure receiver levels 4) Check oil stills, drain as necessary 5) Check coils for ice patterns and fan operation 6) Walk the plant and inspect for signs of leaks T. CHILLERS 1) Check flow switch operation 2) Check refrigerant charges and oil levels 3) Check glycol concentration 4) Check pressure differential 5) Check temperature differential G.8.d Packet Pg. 205 At t a c h m e n t : F i n a l D r a f t - B i d f o r H V A C M a i n t e n a n c e a n d R e p a i r S e r v i c e s 2 0 2 2 ( H V A C P r e v e n t a t i v e M a i n t e n a n c e a n d R e p a i r S e r v i c e s ) AGENDA REPORT MEETING DATE: May 10, 2022 Council Item TITLE: Consideration of Commercial Cannabis Regulations PRESENTED BY: Adrian Guerra, City Attorney RECOMMENDATION: Discuss and provide direction to staff on establishment of a potential commercial cannabis regulatory program, including what types of cannabis activities to permit (if any). 2030 VISION STATEMENT: This staff report supports City Council Goal #5, “Engage in Proactive Communication” by allowing community input on potential establishment of a commercial cannabis regulatory program. BACKGROUND: Currently, the City prohibits all commercial cannabis activities per Chapter 18.91 of the Municipal Code. Only indoor personal cultivation of up to six plants at a time at a private residence (by persons 21+) is allowed, as this is a right provided by state law. This staff report provides general background information for the Council to consider in determining whether it would be in the best interest of the City to amend the Municipal Code to replace its general prohibition on commercial cannabis activities with new regulations that would permit some or all types of commercial cannabis activities. DISCUSSION: I. Evolution of California Cannabis Law In 1996, California voters approved Proposition 215, the Compassionate Use Act (codified at Health and Safety Code § 11362.5) to ensure that seriously ill Californians have the right to obtain and use cannabis for medical purposes without fear of criminal prosecution under limited, specified circumstances. In 2004, the State Legislature enacted SB 420, the Medical Marijuana Program Act (codified at Health and Safety Code section 11362.7 et seq.), to clarify the scope of the Compassionate Use Act, provide additional statutory guidance regarding medical cannabis use, and allow cities and counties to adopt supplemental rules and regulations. In 2015, the Governor signed the Medical Marijuana Regulation and Safety Act (“MMRSA”), creating a comprehensive state licensing system for the commercial G.9 Packet Pg. 206 cultivation, manufacture, retail sale, transport, distribution, delivery, and testing of medical cannabis, all subject to local control. One of the purposes of MMRSA was to ensure uniformity among jurisdictions that wished to allow commercial cannabis operations. MMRSA’s name was changed to the Medical Cannabis Regulation and Safety Act (“MCRSA”) in 2016. Proposition 64, the Adult Use of Marijuana Act (“AUMA”) was approved by California voters at the November 2016 election. The purpose of AUMA was to establish a comprehensive system to legalize, control and regulate the cultivation, processing, manufacture, distribution, testing, and sale of nonmedical cannabis, including cannabis products. Under AUMA, adults, age 21 and older, are legally entitled to possess and grow certain amounts of cannabis at home for personal use. On June 27, 2017, the Governor signed SB 94, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”), effectively repealing MCRSA and merging certain provisions of MCRSA into the provisions of AUMA to create a comprehensive state law licensing and regulatory framework applicable to all types of commercial cannabis activities. MAUCRSA preserves the dual licensing scheme applicable to commercial cannabis uses, requiring all cannabis businesses to have a required state license applicable to the commercial cannabis activities in which they engage, and also authorizing cities to adopt their own ordinances permitting, regulating and/or prohibiting the various types of commercial cannabis uses and activities. Under MAUCRSA, cannabis businesses are required to comply with local ordinances and obtain any required local permits in addition to complying with state regulations to obtain the required state licenses. Local agencies retain the right to prohibit all commercial cannabis activities, as Grand Terrace did via adoption of Ordinance No. 299 in 2016. Under MAUCRSA, three state licensing authorities, the Bureau of Cannabis Control, the Department of Food and Agriculture, and the Department of Public Health, were empowered to issue state licenses authorizing the various types of commercial cannabis uses, and to promulgate regulations applicable to the state licensing process. All three state licensing authorities promulgated regulations and began issuing state licenses around 2017-2018. In 2021, the three state licensing authorities were merged into one centralized agency for all state cannabis regulation, the newly-created Department of Cannabis Control (“DCC”). The separate regulations of each for the three former licensing authorities were also merged into one consolidated set of State licensing regulations administered and enforced by the DCC, codified as Division 19 of Title 4 of the California Code of Regulations. Additional modifications are currently being proposed by the DCC to streamline and strengthen the regulatory framework. II. Status of Federal Cannabis Law Despite legalization in California, cannabis remains illegal under federal law as a Schedule 1 Controlled Substance. Federal law prevails over state law where the two conflict. However, U.S. Attorney General Merrick Garland has made it clear that the U.S. Department of Justice (DOJ) does not consider enforcement of the federal G.9 Packet Pg. 207 Controlled Substances Act against cannabis in states which have legalized it a priority of the DOJ or an efficient use of the DOJ’s resources, although prior Attorney General guidance establishing a more formal policy of non-prosecution against state-legal cannabis that been rescinded during the Trump administration has not been reinstated. Additionally, federal budget legislation originally known as the Rohrabacher-Farr Amendment, prohibiting the DOJ from spending funds to interfere with the implementation of state medical cannabis laws, was originally passed in 2014, has been continually renewed since that time, and most recently has been renewed such that it will remain in effect until through at least September 30, 2022. III. State and Federal Regulation of Hemp Prior to 2018, hemp was not recognized as legally distinct from cannabis, and therefore was considered a Schedule 1 controlled substance under federal law. However, under the Federal Agriculture Improvement Act of 2018, also known as the Farm Bill, “hemp” was removed from Schedule 1 controlled substance status by excluding it from the definition of “cannabis” in the Controlled Substances Act, thereby essentially legalizing the production of “hemp” federally, and a shared state-federal regulatory framework was established over hemp cultivation and production. “Hemp” is defined under the Farm Bill to include any cannabis plant, or derivative thereof, that contains not more than 0.3 percent delta-9 tetrahydrocannabinol (“THC”) on a dry-weight basis. THC is the compound in the cannabis plant most commonly associated with getting a person high. Thus, although “hemp” and “cannabis” both come from the cannabis plant, “hemp” cannot contain more than 0.3 percent THC (and thus cannot get a person high); if it does, it is instead considered “cannabis,” which is unlawful under federal law. California law, MAUCRSA, defines “cannabis” as: “all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. ‘Cannabis’ also means the separated resin, whether crude or purified, obtained from cannabis. ‘Cannabis’ does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, ‘cannabis’ does not mean ‘industrial hemp’ as defined by Section 11018.5 of the Health and Safety Code.” Thus, hemp is also excluded from the definition of cannabis under state law. California enacted its Industrial Hemp Farming Act, purporting to legalize hemp production, even prior to passage of the Farm Bill. The Act was passed in 2013 and took effect January 1, 2017 under AUMA. Regulations (codified at Code of Cal. Regulations, Title 3, Sections 4900 et seq.) were subsequently promulgated pursuant to the Hemp Farming Act in 2019, 2020 and 2021 pertaining to registration, regulation and G.9 Packet Pg. 208 enforcement of industrial hemp cultivators and crops. The federal 2018 Farm Bill’s legalization of the production of hemp also extends to hemp-derived cannabidiol (CBD) products. CBD is another chemical that occurs naturally in the cannabis plant, but that is distinct from (and does not contain) THC. CBD can be extracted from hemp or cannabis into an oil or other concentrate and then infused into other products including food, beverages, and dietary supplements. CBD that is derived purely from “hemp” is not considered a “cannabis” product and therefore is not unlawful federally, whereas CBD that is derived from “cannabis” is considered a “cannabis” product and is unlawful federally. Although the Farm Bill legalizes the production of hemp, and by extension the production of hemp-derived CBD, it does not regulate processed hemp-derived CBD products, such as CBD-infused food and dietary supplements. Rather, the law preserved FDA’s authority to regulate processed hemp products under the Federal Food, Drug, and Cosmetic Act. The FDA has issued guidance prohibiting CBD-infused food, beverages, and dietary supplements sold in interstate commerce. However, in 2021, the State of California passed Assembly Bill 45, which, among other things, allows hemp-derived CBD to be included in any food, beverages, and dietary supplements sold in California. This new law flies in the face of the FDA guidance issued under the Farm Bill, again creating a situation where California has purported to legalize something that remains illegal federally. However, it is possible that the FDA will soon change its guidance to allow such products consistent with state law. It should be noted that state law does not provide the same type of dual licensing scheme applicable to hemp as it does for cannabis. As such, cities may not have the same degree of independent regulatory authority over hemp, and hemp regulations are generally not included in cities’ cannabis ordinances. Note also that state cannabis laws and regulations exclude hemp, and state cannabis licensees, which are generally limited in the types of products they can sell to cannabis goods, products, and accessories and licensees’ branded merchandise, are NOT licensed to deal in hemp. IV. Potential City Commercial Cannabis Regulations A. Regulatory Authority The City retains full regulatory and land use authority over commercial cannabis uses amd activities pursuant to its police power, allowing it a wide range of options for a potential cannabis ordinance amendment, should the City Council see fit to pursue one. Some key considerations include the following: • Selecting the zones in which to permit commercial cannabis land uses (or certain types of them). The City could also create an overlay zoning designation and provide that commercial cannabis uses may only be only permitted within the overlay zone. G.9 Packet Pg. 209 • The City may also establish buffers around sensitive uses, in which areas commercial cannabis activities would be prohibited even if otherwise permitted in the subject zone. The default buffers provided in state law for state licensees are 600 feet from an existing school, daycare center, or youth center, unless the DCC or a local jurisdiction specifies a different radius. Accordingly, the City could specify a higher or lower radius requirement and could establish different or additional sensitive uses that are subject to the buffer requirement. • Determining which types of commercial cannabis activities to permit. The simplest way to make distinctions as to which types of commercial cannabis activities to permit is to follow the delineations of the state commercial cannabis license types under state regulations, as follows (discussed in more detail in the attached powerpoint presentation): (i) Retailers (including delivery); (ii) Distributors; (iii) Manufacturers; (iv) Cultivators; (v) Testing Laboratories; (vi) Microbusinesses; and (vii) Cannabis Events. The City can select which of these types of cannabis businesses it wishes to permit and which to prohibit. • Establishing a regulatory permit requirement for the types of commercial cannabis activities that may be permitted. • Alternatively, the City could require a land use entitlement such as a conditional use permit. However, requiring a regulatory permit as opposed to a conditional use permit has the advantage that the granting of the regulatory permit does not constitute a vested right and that the regulatory permit may be revoked without a hearing in the event of a violation (and the ordinance would expressly state the same). If cannabis businesses are instead permitted subject to a CUP, once the CUP is issued it can be difficult to revoke, even if/when a permittee proves not to be a good member of the City’s business community. A regulatory permit can be revoked without the same due process and vested rights concerns. • However, the approval of the regulatory permit could be made discretionary depending on the required findings for approval and the designated approval authority for the permit. Doing so carries the advantage of making it more difficult for an applicant to compel issuance of a permit via legal proceedings in the event a permit application is denied by the City. • Enactment of such a permit requirement will generally require establishment of an application process, including required application contents, a process for review and approval of applications, a process for annual permit renewal and required inspections if desired, and provisions for suspension and/or revocation of permits and other remedies in the event of violations. Following adoption of an ordinance, application forms would need to be developed to G.9 Packet Pg. 210 implement the ordinance, among other tasks such as application fee adoption (discussed below), before applications would be accepted for processing. • Establishing operational requirements that must be met by cannabis businesses in order to obtain/maintain the required City regulatory permit. • The operational requirements can be more stringent than those set forth in the State regulations, which apply to state licensing of the businesses. Because the businesses cannot operate lawfully in the City without a state license, there is no need to duplicate state regulations in the City’s ordinance. • Rather, the City’s ordinance could state that in order to obtain a City regulatory permit, the business must hold a valid state license, in addition to meeting the requirements necessary to obtain the City regulatory permit. Then any City operational standards could function as supplemental to the state standards. • Examples of operational requirements the City may wish to consider are on- site security requirements, cannabis business employee background check requirements, requirements that all cannabis operations be conducted indoors, measures to prevent off-site odors, fire safety requirements, insurance requirements, and recordkeeping requirements. • Establishing an application fee to fund administration of the regulatory program, including the costs of application processing and any required permit inspections. The amount of the fee would generally be set by a separate resolution following a fee study or analysis to estimate the reasonable costs of processing an application. A deposit system may also be used in lieu of a set fee. B. Taxation Authority The City may also enact a commercial cannabis tax, with voter approval. The tax could be made to apply to all cannabis businesses in the City (whether permitted or not) and could establish a maximum tax rate as a percentage of gross receipts of such businesses, and/or a per-square-foot tax rate applicable to all space used for commercial cannabis activity or cannabis cultivation. The Council could then at any subsequent time, by resolution, set and adjust the actual tax rate anywhere within the authorized range, up to the maximum rate authorized by the voters. Examples of other cities’ cannabis tax rates include: (1) Suisun City – up to 15% of proceeds and up to $25 per square foot of space used for commercial cannabis activities (as of 2018; subject to automatic CPI increases); (2) Hesperia – 1-6% of proceeds and up to $15 per square foot of cultivation area (as of 2018; subject to automatic CPI increases); (3) Desert Hot Springs (10% of proceeds and $10 per square foot of cultivation (as of 2015; subject to automatic CPI increases); (4) Perris – 10% of proceeds for dispensaries and $25 per square foot of cultivation space (as of 2016; G.9 Packet Pg. 211 subject to automatic CPI increases); and (5) Carson – up to $25 per square foot of cultivation area and up to 18% of proceeds of cannabis operations. It should be noted that the State also imposes significant taxes on cannabis businesses (15-percent cannabis excise tax is imposed upon all purchasers of cannabis or cannabis products sold at retail; cultivation tax of $10.08 per dry-weight ounce of flower, $3 per dry-weight ounce of leaves, and $1.41 per ounce of fresh cannabis plant). So, if the City wants to promote/attract legal commercial cannabis businesses, it should set the rates at levels that do not make the overall costs of doing business in the City prohibitive. In some cases, cities do not wish to attract commercial cannabis businesses even though they adopt a tax, so they intentionally set the rates at prohibitive levels to deter businesses from seeking to commence operations in the city. Alternatively, they may seek voter authorization for a high maximum rate but set the actual rate far lower. If the City Council sees fit to adopt a cannabis ordinance permitting any commercial cannabis activities, it is advisable to do so concurrently with, or subsequent to, adoption of a cannabis tax ordinance, to ensure that no applicants are able to obtain permits prior to imposition of the tax requirement. If prepared as a “general tax” (i.e., a tax imposed for general governmental purposes), only a simple majority voter approval would be required to pass a cannabis tax measure, and it would need to be voted on at a general election unless the tax measure is proposed by the voters rather than the City Council. If prepared as a “special tax,” (i.e., a tax imposed for specific purposes, including taxes imposed for specific purposes and placed into a general fund), two-thirds voter approval would be required. An election for the purpose of imposing a "general tax" must be consolidated with a regularly scheduled general election for members of the city council, except in cases of emergency declared by a unanimous vote of the council. A regularly scheduled general election will take place on November 8, 2022. To place a commercial cannabis tax measure before City voters on the November 2022 ballot, the City Council would have to approve a proposed tax ordinance by a two-thirds vote, and would have to submit an adopted resolution calling the election on the ballot measure and requesting that the election be consolidated with the November 2022 general election to the County Registrar by about early August, 2022. The resolution would have to include (i) the full proposed tax ordinance, and (ii) the ballot label language which summarizes the key terms of the proposed tax ordinance for the voters by describing the tax rate and methodology, stating the duration of the tax, and providing an estimate of the amount of money the tax is expected to raise annually. FISCAL IMPACT: Potential long-term tax revenues associated with permitting of commercial cannabis activities. ATTACHMENTS: • Grand Terrace Cannabis Workshop Presentation (PDF) G.9 Packet Pg. 212 APPROVALS: Adrian Guerra Completed 05/03/2022 8:24 AM City Manager Completed 05/03/2022 8:35 AM City Council Pending 05/10/2022 6:00 PM G.9 Packet Pg. 213 CANNABIS -FEDERAL, STATE AND LOCAL REGULATION CITY OF GRAND TERRACE –CANNABIS WORKSHOP August 14, 2019 Benjamin R. Jones, Esq.; Aleshire & Wynder, LLP G.9.a Packet Pg. 214 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f FEDERAL REGULATION (CANNABIS) •1970 –Federal Controlled Substances Act •2005 –Gonzalez v.Raich (U.S.Supreme Ct.,2005)545 U.S.1 •2013 –U.S.DOJ deprioritizes CSA enforcement against cannabis in states which regulate •2014 –Congress defunds federal enforcement of CSA against medical cannabis in states which regulate •2015 –USA v.Marin All.For Med.Marijuana (N.D.Cal.2015)139 F.Supp.3d 1039 •2016 –USA v.McIntosh (9th Cir.2016)833 F.3d 1163 •2018 –U.S.Attorney General Sessions creates uncertainty •2018 –Federal Gov’t resumes hands off approach to state-legal cannabis activities;federal law heavily restricts access to banking services •2019-CSA remains valid law;33 states and DC have legal medical cannabis;10 states and DC have legal adult-use cannabis G.9.a Packet Pg. 215 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f HISTORY OF CALIFORNIA REGULATION - MEDICAL MARIJUANA •1996 –Compassionate Use Act (Prop 215) •2003 –Medical Marijuana Program Act (SB 420) •2015 –Medical Marijuana Regulation and Safety Act (MMRSA) (AB 243, AB 266, SB 643) (name change to MCRSA in 2016 –SB 837) G.9.a Packet Pg. 216 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CALIFORNIA LAW TODAY •AUMA -The Control, Regulate and Tax Adult Use of Marijuana Act (Prop 64) •Passed by California voters on November 8, 2016 •Legalized cannabis for adult use and personal cultivation (up to six plants) •“Adult use” = 21+; recreational; non-medicinal •Allows commercial cultivation and sale of cannabis for adult use subject to state and local licensure (but cannot sell within 600 feet of school, day care center, or youth center) •MAUCRSA -The Medicinal and Adult-Use Cannabis Regulation and Safety Act (SB 94) •B&P Code Division 10 (Sections 26000 et seq.) •Legislature’s Response to Prop 64 •Repealed MCRSA, but included certain MCRSA provisions into the licensing provisions of AUMA, creating consolidated regulatory scheme governing both medicinal and adult-use cannabis •Focuses on regulation of cannabis businesses •Dual licensing scheme –Preserves local control G.9.a Packet Pg. 217 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f INDUSTRIAL HEMP –NOT “CANNABIS” •Defined -A crop that is limited to types of the plant Cannabis sativa L.having no more than 0.3%THC contained in the dried flowering tops,whether growing or not;the seeds of the plant;the resin extracted from any part of the plant;and every compound, manufacture,salt,derivative,mixture,or preparation of the plant,its seeds or resin produced therefrom.CHSC §11018.5. •Expressly exempted from state law definition of “cannabis.”B&P Code §26001(f). •Federal Agriculture Improvement Act of 2018 (Farm Bill) •Confirms legalization of hemp;no longer a controlled substance,unlike cannabis •CSA had failed to distinguish hemp from cannabis •2014 Farm Bill had allowed for limited industrial hemp pilot programs •California Industrial Hemp Farming Act (2013) •Provides for the cultivation of industrial hemp by registered growers and established agricultural research institutions. •No requirements/regulations applicable to manufacturing,processing or sale (yet) G.9.a Packet Pg. 218 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CANNABIDIOL (CBD) AND CBD OIL •Found in cannabis plants (including hemp)like THC,but non-psychoactive •Can be extracted into an oil used for medicinal purposes •CBD oil from cannabis =cannabis •CBD oil from hemp =hemp (≠cannabis) •Lower THC generally means lower CBD,so relatively large amount of plant material may be needed for hemp-based CBD oil G.9.a Packet Pg. 219 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE LICENSE TYPES -OVERVIEW •Cultivator •Manufacturer •Testing Laboratory •Retailer •Distributor •Microbusiness G.9.a Packet Pg. 220 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE REGULATORS •Bureau of Cannabis Control (BCC) •State Licensing of: •Retailers (including delivery) •Distributors •Testing Labs •Microbusinesses •Regulations: CCR, Title 16, Division 42 •Cal. Dept. of Public Health •State Licensing of Manufacturers •Regulations: CCR, Title 17, Chapter 13 •Cal. Dept of Food & Agriculture •Stated Licensing of Cultivators •Regulations: CCR, Title 3, Division 8 G.9.a Packet Pg. 221 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE LICENSE TYPES -CULTIVATION •Type 1 -Cultivation; Specialty outdoor; Small. •Type 1A -Cultivation; Specialty indoor; Small. •Type 1B -Cultivation; Specialty mixed-light; Small •Type 1C -Cultivation; Specialty cottage; Small. •Type 2 -Cultivation; Outdoor; Small. •Type 2A -Cultivation; Indoor; Small. •Type 2B -Cultivation; Mixed-light; Small. •Type 3 -Cultivation; Outdoor; Medium. •Type 3A -Cultivation; Indoor; Medium. •Type 3B -Cultivation; Mixed-light; Medium. •Type 4 -Cultivation; Nursery. •Type 5 -Cultivation; Outdoor; Large. •Type 5A -Cultivation; Indoor; Large. •Type 5B -Cultivation; Mixed-light; Large. G.9.a Packet Pg. 222 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE LICENSE TYPES –CULTIVATION (Cont’d) •“Cultivation” –Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis •“Canopy” –Designated areas that will contain mature plants at any time •measured in square feet; •clearly identifiable boundaries; •stacking –count each level •Groupings: •Specialty Cottage •Specialty •Small •Medium •Large (each: Indoor; Outdoor; Mixed-Light) •Nursery G.9.a Packet Pg. 223 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CULTIVATION LICENSE TYPES –SPECIALTY COTTAGE •Type 1C -Cultivation;Specialty cottage;Small. •Outdoor cultivation of up to 25 mature plants •Outdoor =no artificial light •Indoor cultivation of up to 500 square feet of total canopy •Indoor =exclusively artificial light •Mixed-light cultivation of up to 2,500 square feet of total canopy •Mixed Light =A combination of natural and supplemental artificial lighting •Tier 1 –Up to 6 watts/square foot •Tier 2 –6 to 25 watts/square foot •On one premises. G.9.a Packet Pg. 224 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CULTIVATION LICENSE TYPES -SPECIALTY •Type 1 -Specialty outdoor; Small. •An outdoor cultivation site of up to 5,000 square feet of total canopy size on one premises, or up to 50 mature plants on noncontiguous plots. •Type 1A -Specialty indoor; Small. •An indoor cultivation site of between 501 and 5,000 square feet of total canopy size. •Type 1B -Specialty mixed-light; Small. •Mixed-light cultivation of between 2,501 and 5,000 square feet of total canopy size on one premises. •Tier 1 •Tier 2 G.9.a Packet Pg. 225 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CULTIVATION LICENSE TYPES -SMALL •Small = 5,001 –10,000 square feet of total canopy •Type 2 -Outdoor; Small. •Type 2A -Indoor; Small. •Type 2B -Mixed-light; Small. •Tier 1 •Tier 2 G.9.a Packet Pg. 226 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CULTIVATION LICENSE TYPES -MEDIUM •Type 3 -Outdoor; Medium. •Between 10,001 sq. ft. and one acre (43,560 sq. ft.) of total canopy •Type 3A -Indoor; Medium. •Between 10,001 sq. ft. and 22,000 square feet of total canopy •Type 3B -Mixed-light; Medium. •Between 10,001 sq. ft. and 22,000 square feet of total canopy •Tier 1; Tier 2 G.9.a Packet Pg. 227 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CULTIVATION LICENSE TYPES -LARGE •Type 5 -Outdoor; Large. •Outdoor cultivation of greater than one acre of total canopy size •Type 5A -Indoor; Large. •Indoor cultivation of greater than 22,000 sq. ft. of total canopy size •Type 5B -Mixed-light; Large. •Mixed-light cultivation of greater than 22,000 sq. ft. of total canopy size •No type 5, 5A or 5B cultivation licenses may be issued before January 1, 2023 (B&P Code 26061) G.9.a Packet Pg. 228 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CULTIVATION LICENSE TYPES -NURSERY •Type 4 -Cultivation; Nursery. •Cultivation of cannabis solely as a nursery •Nursery = All activities associated with producing clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis. G.9.a Packet Pg. 229 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE LICENSE TYPES -MANUFACTURER •“Cannabis products”-cannabis that has undergone a process whereby the plant material has been transformed into a concentrate,including,but not limited to,concentrated cannabis,or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. •Type 6 –Manufacturer Level 1 •Nonvolatile or no solvents •Type 7 –Manufacturer Level 2 •Volatile solvents •Type N –No extraction; Can also package and label •Type P –Packaging and labeling only •Type S –Manufacturing in shared use facilities (manufacturing premises operated by a Type 6, Type 7 or Type N Licensee G.9.a Packet Pg. 230 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE LICENSE TYPES –TESTING LAB •Type 8 –Testing Laboratory •Cannabis shall not be sold pursuant to state license unless a representative sample has been tested by a licensed testing lab •Confirms chemical profile of sample conforms to labeled content, including with respect to THC and CDB content G.9.a Packet Pg. 231 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE LICENSE TYPES –RETAILER •Type 9 –Non-Storefront Retailer •Sales by delivery only •Must maintain licensed premises from which deliveries are conducted •Type 10 –Retailer •Storefront “dispensary” •Sales by delivery also allowed •Note: BCC Regulations on Delivery eroding local control; litigation pending G.9.a Packet Pg. 232 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE LICENSE TYPES –DISTRIBUTOR •Type 11 –Distributor •Wholesale –between licensees •Type 13 –Distributor (Transport Only) •Only immature cannabis plants and seeds to retailers G.9.a Packet Pg. 233 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f STATE LICENSE TYPES –MICROBUSINESS •Type 12-Microbusiness •At least 3 of 4: •Cultivator (less than 10,000 sq. ft); •Manufacturer Level 1 (non-volatile); •Distributor; •Retailer. G.9.a Packet Pg. 234 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CANNABIS TAXATION -STATE •Excise Tax –15% of “Average Market Price” (approved per AUMA) •Imposed on purchasers of cannabis/cannabis products •“Average Market Price” computed as actual wholesale price x “mark up” •“Mark up” is not actual mark up, but rather a rate set by CDTFA, currently 60% •So not based on gross receipts •Cultivation Tax (approved per AUMA) •Imposed on cultivators •$9.25 per ounce of dry-weight flowers. •$2.75 per ounce of dry-weight leaves. •$1.29 per ounce of “fresh plant.” •Excludes immature plants and seeds. •Standard sales and use tax (retail sales only; medicinal exemption available) G.9.a Packet Pg. 235 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CANNABIS TAXATION -LOCAL •State law does not preempt local taxation •Local “cannabis tax” can be enacted with voter approval •City Council approves tax ordinance for placement on ballot (2/3 vote) •Simple majority for general tax; 2/3 majority for special tax •Gross Receipts; Per-square-foot methodologies available •Establish maximum rate by ordinance; Council can then set/adjust actual rate thereafter without voter approval, subject to maximum •Standard sales and use tax revenue always available (retail sales only; subject to available medicinal exemption) •Must be careful to avoid deterring businesses with prohibitive costs/expenses G.9.a Packet Pg. 236 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f ESTABLISHING LOCAL REGULATIONS •Adopt Ordinance establishing permitting system and regulations •Determine what type of permit(s) to require •Business License; Conditional Use Permit; Regulatory Permit •Consider: Level(s) of Approval; Discretionary vs. Ministerial; Authority to Impose Conditions; Revocation Requirements •Determine zone(s) in which cannabis uses may be permitted •Can create cannabis overlay zone •Determine permitted and prohibited cannabis uses •Identify by state license types •Application Requirements; Fees; Review Process •Safety Regulations –General and for each license type (more stringent than state regulations) •Renewal; Appeals; Suspension; Revocation •Authority to City Manager or designee to promulgate regulations G.9.a Packet Pg. 237 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f LOCAL REGULATIONS –IMPLEMENTATION •Fee Resolution •Fee Study/Analysis •Hearing Process •Application Forms •Staff assignment/training •Processing background checks (livescan) •Employee Work Permits •Development Agreements •Get Tax Approved First G.9.a Packet Pg. 238 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f QUESTIONS? Bjones@awattorneys.com G.9.a Packet Pg. 239 At t a c h m e n t : G r a n d T e r r a c e C a n n a b i s W o r k s h o p P r e s e n t a t i o n ( C o n s i d e r a t i o n o f CITY OF GRAND TERRACE CITY COUNCIL/PLANNING COMMISSION MINUTES ● APRIL 21, 2022 Council Chamber Special Meeting Workshop 6:30 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO April 21, 2022 City Council/Planning Commission Minutes PowerPoint Presentations APRIL 21, 2022 Joint Workshop by the City Council and Planning Commission/Site and Architectural Review Board •Accessory Dwelling Units and Junior Accessory Dwelling Units. •Senate Bill No.9 Pertaining to Urban Lot Splits and Two-Unit Developments 2030 Vision Statement Goal 3 to Promote Economic Development by updating zoning and development code in preparation for future growth, and to preserve and protect our community and its exceptional quality of life though thoughtful planning. Background On January 25, 2022, the City Council adopted an Urgency Ordinance (No. 336-U) establishing objective standards for the regulation of lots splits and new units developed under SB 9. On March 3, 2022, the Planning Commission Conducted a Noticed Public Hearing and voted unanimously 4-0 adopting a Resolution recommending that the City Council adopt an Ordinance establishing SB9 standards and an Ordinance updating the city’s ADU requirements. Background On March 22, 2022, the City Council Conducted a Noticed Public Hearing and voted unanimously 5-0 to continue the Public Hearing to a date uncertain and directed staff to conduct a joint City Council and Planning Commission workshop to further review and discuss the State Legislation requirements and provide input on the city’s proposed objective standards for SB9 and ADU/JADU developments. Accessory Dwelling Units Junior Accessory Dwelling Units ADUs/JADUs ADUs/JADUs Legislature updates became effective on January 1, 2021. The city’s current ADU ordinance was adopted in 2017. The State Law allow cities to impose additional objective standards that do not conflict with State Law. Permitted Zoning: •Single-family Residential •Multifamily Residential •Mixed-Use Residential ADUState Requirements ADUs must be approved ministerially without a public hearing. ADUs can be attached to, detached from, or built within other dwelling structures, or be created by converting non-habitable structures. ADU State Requirements A parcel with one or more single-family dwellings can have up to one ADU. The amount of ADUs allowed within a multifamily dwelling shall be equal to 25% of the number of units in the multifamily development, provided that fractional units shall be rounded down. There can be up two detached ADU’s on a parcel with a multifamily dwelling. ADU State Requirements ADUs must have complete independent living facilities and can only be limited to 850 sq ft for studio/one-bedroom units and 1,000 sq ft for units with two or more bedrooms. ADUs can not be smaller than an “efficient unit” = 220 square feet. Attached ADUs can be limited to 50% of the floor area of the primary unit (but no smaller than 800 square feet). ADU State Requirements The city may only impose up to 4-foot rear and side setback for ADUs. ADUs cannot be sold separately from other units on the property. Only one parking space can be required for ADUs (with some exceptions). ADU State Requirements ADUs up to 750 square feet are exempt from impact fees. ADUs that are 750 feet or larger may be charged impact fees but only such fees that are proportional in size (by square foot) to those for the primary dwelling unit. ADU State Requirements JADUs Must be completely within a single-family dwelling Prohibited on multi-family dwellings Must have independent living facilities including an efficiency kitchen May share a bathroom Limited to 500 sq ft JADUs require the property owner to reside in the JADU or the primary dwelling. JADUs cannot be sold separately from the main house. No additional parking can be required for a JADU. A deed restriction must be recorded for a JADU requiring compliance with State Law regulations. JADU State Requirements ADUs and JADUs DISCUSSION Detached ADUs Unit Type Detached ADU maximum size Studio/one-bedroom units 850 sq. ft. Two or more bedrooms units 1,000 sq. ft. Size Attached ADUs: Unit Type Attached ADU Maximum size Studio/one-bedroom units 850 sq. ft. or 50% of the primary dwelling floor area, whichever is less Two or more bedrooms units 1,000 sq. ft. or 50% of the primary dwelling floor area, whichever is less Size Height Limit to a maximum16 feet in height. The city may restrict new ADU construction to ground level only or may allow ADUs to be added on as second stories. Height limitations will not apply to ADUs created by converting space in an existing structure. Water The Riverside Highland Water Company is also revising their requirements for additional units in response to the SB9 legislation, but the requirements will also be applicable to ADUs. RHWC will require a separate connection for every unit constructed. Their board meeting will be held on April 28, 2022. Water Section 18.69.050-General Requirements(e)(7)(A) (A)The City shall not require a separate utility connection between an accessory dwelling unit or junior accessory dwelling unit and the utility, or impose a related connection fee or capacity charge, for units located entirely within a primary dwelling, unless the accessory dwelling unit or junior accessory dwelling unit was constructed with a new single-family home. Water Section 18.69.050-General Requirements(e)(7)(B) (B)Except as provided in subdivision (A), accessory dwelling units and junior accessory dwelling units shall have a separate connection to the main water service line in the street and the applicant shall submit plans for such line(s) to the Riverside Highland Water Company for review and approval. The applicant shall comply will all objective requirements of the Riverside Highland Water Company for the construction and operation of the water line(s). Sewer and Septic Section 18.69.050-General Requirements(e)(8)(A) Prior to issuance of a building permit for an accessory dwelling unit or junior accessory dwelling unit, the City Engineer shall inspect existing sewer lines and/or the onsite wastewater treatment system on the parcel. As part of this inspection, the City Engineer may, if applicable, require documentation of a percolation test completed within the last five years, or, if the percolation test has been recertified, within the last ten years. If the City Engineer determines that the addition of a new unit or units would result in a violation of the requirements of the California Plumbing Code, the requirements of the Santa Ana Regional Water Quality Control Board, and/or other objective City sewer or septic system requirements, then the City shall impose conditions of approval on the development that are necessary to ensure compliance with such requirements. Sewer and Septic Section 18.69.050-General Requirements(e)(8)(B) If a parcel relies on an onsite wastewater treatment system, and a proposed unit would be located on the only part of the parcel that could accommodate a new onsite wastewater treatment system in the event the existing system needed to be replaced, then the City shall require that all existing and proposed units on the parcel be disconnected from the onsite wastewater treatment system and connected to the sewer system as a condition of approval of the development. Tree Replacement Section 18.69.050-General Requirements(10) If the construction of an accessory dwelling unit or junior accessory dwelling unit will result in the removal of one or more trees with a trunk diameter of six (6) inches or greater, then, as a condition of obtaining a certificate of occupancy, the owner shall plant one new 24-inch box tree on site for each tree removed. The proposed project site shall have a minimum of one tree per unit. Design Standards Section 18.69.060 The architectural design and detailing, roof material, exterior color, and finish materials of an accessory dwelling unit or junior accessory dwelling unit shall be the same as those of the primary dwelling. Design Standards Manufactured home requirements: a.if materials matching the primary dwelling arenotcommerciallyavailableforamanufacturedhome,then finish materials shall be the same colorasthefinishmaterialsontheprimarydwelling; b.The roof shall have a minimum 16-inchoverhandandshallhaveaminimumpitchofnotlessthantwoinchesverticalriseforeach12inchesofhorizontalrun;and c.Mechanical equipment associated with themanufacturedhomeshallbelocatedsoisnotvisiblefromapublicstreetoradjoiningproperty. Additional Development Standards Are there any other development standards that the Council or Commission would like to see in the ADU/JADU Ordinance? End of Discussion ADUs/JADUs Sewer and Septic Questions What is the minimum size requirement for a sceptic service? Colton Wastewater Department Response: Size calculations are based on estimated flow. The bigger the house the bigger size of septic tank. The minimum septic tank size for a 2-bedroom house is 750 gallons, whereas a minimum 1200 -gallon size septic tank is needed for a 4-bedroom house. What type of percolation test is going to be required and in what instance is it needed? Colton Wastewater Department Response: Most of the time percolation test is required when building a septic tank. Sometimes the soil is clay or rock and will not be suitable for a septic tank. Percolation test will know how fast the sewage is percolating into the ground. Sewer and Septic Questions What kind of testing is required to determine if the existing septic system or sewer capacity is sufficient? Colton Wastewater Department Response: Flow rate of the percolation test and size calculation depends on the projected sewage flow. Sewer and Septic Questions If an existing dwelling unit is served by a septic system, can the additional units be on a separate sewer line connection? Colton Wastewater Department Response: The new structure or ADU will be required to have a new connection. The existing house can stay with the septic tank if preferred by the owner. Sewer and Septic Questions Do the Santa Ana Regional Water Board requirements supersede the SB9 requirements? Colton Wastewater Department Response: SB-9 is a State mandated law which will prevail. Sewer and Septic Questions If an existing site has a septic system, can the system be tested to identify the projected longevity of such system to support the existing residence and additional units? Colton Wastewater Department Response: It’s the responsibility of the Building Department to allow or enforce the repair of the existing septic tank to satisfy with the additional flow from the new structure. Sewer and Septic Questions Colton Wastewater Department Sewer requirements: “All persons owning property within the city with any building which has access to the sewer main shall connect all toilets, sinks, lavatories and other appliances on the property, with the city sewer system….Properties on which all buildings are farther than 200 feet from a sewer main shall either comply with the requirements of the Uniform Building Code regarding sewage disposal or shall be connected to the sewer main.” Sewer and Septic Questions SENATE BILL 9 Senate Bill 9 Senate Bill 9 was signed on September 16, 2021. The bill became effective on January 1, 2022. Local agencies are required to allow SB 9 projects through a ministerial approval process. SB 9 Legislation The city is required to permit up to two primary residences per parcel in single-family residential zone. Under SB 9 single-family residential lots may be split in half and create two separate smaller parcels The State Law has established many requirements and allows cities to impose additional objective standards that do not conflict with State Law. The lot must be in the single-family residential zone: •RH-Hillside Residential •R1-20-Very Low-Density Single Family Residential •R1-10-Low Density Sigle Family Residential •R1-7.2-Single Family Residential SB 9State Requirements SB 9 –State Requirements SB 9 does not apply to parcels located: •historic district •earthquake fault zones •wetlands •high fire severity zones •hazardous waste sites •flood hazard areas •protected farmland •habitat for protected species •land under a conservation easement Where are SB 9 projects prohibited? SB 9 Ordinance -State Requirements A city may deny a proposed SB 9 development project or lot split if the building official makes a written finding based upon a preponderance of the evidence, that the proposed project would have a specific adverse impact upon public health and safety or the physical environment, and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. SB 9State Requirements Developments cannot involve the demolition or alteration of the following types of housing: Deed restricted to affordable housing Rent-controlled housing Housing occupied by a tenant in the last three years No more than 25% of existing exterior structure walls shall be allowed or required SB 9 State Requirements Maximum of two primary units are allowed on property, plus ADUs. The city can only impose up to a 4-foot rear and side setback. SB 9 units cannot be rented for terms of less than 31 days. The City cannot enforce standards that prevent the construction of up to two primary units that are at least 800 square feet each. SB 9 State Requirements The city can only require one parking spot per SB 9 units to be located on the parcel, except if: The parcel is located within on-half mile walking distance of either a high-quality transit corridor, or a major transit stop. There is a car share vehicle located withing one block of the parcel. A two-lot subdivision shall not result on a parcel smaller than 40% of the lot area of the original parcel and must be at least 1,200 square feet SB 9 State Requirements SB 9 State Requirements Vacant lots are not eligible for urban lot splits An urban lot split cannot be further subdivided No more than two units are permitted on any parcel created by a lot split Only residential uses are allowed SB 9 State Requirements The owner of the parcel must live in one of the resulting parcels for a minimum of 3 years Easements must be dedicated for: •public services and facilities •access to public right-of-way Urban lot splits must comply with requirements of the Subdivision Map Act and City standards Urban lot splits will be ministerially approved without the public hearing SB 9 Two Unit Development and Lot Split DISCUSSION Size Under SB9, a lot may have either 1 or 2 primary units. Detached or attached (i.e. a duplex). The city can set a size requirement that is not less than 800 square feet. Size Things to consider: Some of the units will be on normal-sized lots. Other units will be built on substandard-sized lots that result from SB 9 lot splits. The city may want to have different size standards depending on whether the unit is on a standard parcel or a lot-split parcel. ZONING MINIMUM LOT SIZE SB 9 LOT SUBDIVISION POSSIBLE OPTIONS 40%50%60% RH-Hillside Residential 43,560 (1-acre) 17,424 21,780 26,136 R1-20-Very Low- Density Single Family Residential 20,000 8,000 10,000 12,000 R1-10-Low Density Family Residential 10,000 4,000 5,000 6,000 R1-7.2-Single Family Residential 7,200 2,880 3,600 4,320 Lot Size Recommendation 1 (a) The first primary unit on a lot will have no maximum size requirement, but will only be subject to setback, maximum lot coverage, and other development standards applicable to the lot. (b) The second primary unit on a lot will be limited to 800 sf. (c) A new construction duplex (2 attached units) will be limited to 1,200 sf per unit. Recommendation 2 Create two standards: (a)(1)Standard-Sized Parcel: The first primary unit on a lot will have no maximum size requirement, but will only be subject to setback, maximum lot coverage, and other development standards applicable to the lot. (a)(2)Substandard-Sized Parcel: The first primary unit on a lot resulting from an SB 9 lot split will be limited to 1,200 sf. Height Does the City want to impose height restrictions on the first and/or second primary unit on a parcel? Notice Does the City want to give adjacent property owners notice that an application for an urban lot split or second primary unit has been submitted? Water The Riverside Highland Water Company is also revising their requirements in response to the SB9 legislation. RHWC will require a separate connection for every unit constructed. Their meeting will be held on April 28, 2022. Water Section 18.65.040-Development Standards (G)(3) “A second unit, and both units in a two-unit development, shall each have a separate water service line and the applicant shall submit plans for such lines(s) to the RHWC for review and approval. The applicant shall comply with all objective requirements of the RHWC for the construction and operation of the water line(s)”. Sewer and Septic G.Wastewater;Water Service.  1.Prior to issuance of a building permit for a second unit or either unit of a two-unit development,the City Engineer shall inspect existing sewer lines and/or the onsite wastewater treatment system on the parcel.As part of this inspection,the City Engineer may,if applicable,require documentation of a percolation test completed within the last five years,or,if the percolation test has been recertified,within the last ten years.If the City Engineer determines that the addition of a new unit or units would result in a violation of the requirements of the California Plumbing Code,the requirements of the Santa Ana Regional Water Quality Control Board,and/or other objective City sewer or septic system requirements,then the City shall impose conditions of approval on the development that are necessary to ensure compliance with such requirements. Sewer and Septic G.Wastewater;Water Service.  2.If a parcel relies on an onsite wastewater treatment system, and a proposed unit would be located on the only part of the parcel that could accommodate a new onsite wastewater treatment system in the event the existing system needed to be replaced,then the City shall require that all existing and proposed units on the parcel be disconnected from the onsite wastewater treatment system and connected to the sewer system as a condition of approval of the development.If such disconnection and connection is not possible,or would require off-site improvements,then the building official,or designee, shall consider whether such circumstances are grounds for denial of the proposed project pursuant to Section 18.65.020.C. Deed Restriction Section 18.65.080-Deed Restriction; affordable rent requirements B.Second units, and both units of a two-unit development, if rented, shall only be rented at an affordable rent for lower-income households, as defined in Health and Safety Code Section 50053, and shall only be rented to lower-income households, as defined in Health and Safety Code Section 50079.5, for a minimum of 55 years. Tree Replacement Section 18.65.040-Development Standards (I) If the construction of a second unit or two-unit development will result in the removal of one or more trees with a trunk diameter of six (6) inches or greater, then, as a condition of obtaining a certificate of occupancy, the owner shall plant one new 24-inch box tree on site for each tree removed. The proposed project site shall have a minimum of one tree per unit. Shape of Parcel Resulting from a Lot Split Does the Council or Commission prefer side-by-side lots or flag lots, or no preference? For example: The City may impose minimum frontage requirements, minimum lot width, prohibition of flag lots, etc. Additional Development Standards Are there any other development standards that the Council or Commission would like to see in the SB 9 Ordinance? CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● APRIL 26, 2022 Council Chamber Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO April 26, 2022 City Council Minutes PowerPoint Presentations Senior Parade RECOMMEND THAT THE CITY COUNCIL DETERMINE WHETHER FUNDS SHOULD BE EXPENDED TO SUPPORT A PARADE FOR GRADUATING SENIORS AT GRAND TERRACE HIGH SCHOOL Background This staff report supports Goal #4,Develop and Implement Successful Partnerships. In 2020 and 2021 Grand Terrace High School (GTHS) did not have regular commencement ceremonies due to COVID-19. In 2020, parents and students held a parade. In 2021, The City hosted a parade for the seniors. The group was not charged for the costs associated with the event. A group of parents is organizing to promote a similar parade Parade Route Start at Richard Rollins Park Mt Vernon to Main Main to GTHS Requires traffic control at 5 intersections Cost City Cost $1800.00 Sheriffs Cost $3800.00 Insurance $1000.00 TOTAL $6600.0 Ordinance Establishing New City Council Salary, Vehicle and Technology Allowances April 26, 2022 City Council Goal # 5 Engage the Community by Participation” by allowing the City to ensure that City Council salaries and allowances are competitive such that it will encourage more citizens to participate in City governance. Proposed Ordinance for Introduction •Codify an Adjustment to the City Council Salary •Codify an Adjustment to the City Council Vehicle Allowance •Establish and Codify a New Technology Allowance City Council Salary Government Code Section 36516(a)(4) permits the City Council to increase the compensation above the amount set by Government Code Section 36516(a)(1), provided that “… the amount of the increase shall not exceed an amount equal to 5 percent for each calendar year from the operative date of the last adjustment of the salary in effect when the ordinance or amendment is enacted …” City Council Salary •Last City Council salary adjustment took place in 2010 •The adjustment was from $150 to $300 per month •The calculation for the proposed adjustment is as follows: 2022 –2010 = 12 years 5% x 12 years = 60% 60% x $300 = $180 per council member $180 + $300 = $480 per council member •New adjusted amount $480 per month Allowances •Government Code section 36514.5 states: “City council members may be reimbursed for actual and necessary expenses incurred in the performance of official duties.” •State law contemplates reimbursement based on receipts of actual expenses rather than allowances. Reimbursement approach is safest and most conservative. Allowances •In 2010, the California Attorney General was presented with the following question: May a city provide a vehicle allowance to its city council members in lieu of reimbursing actual vehicle expenses after such expenses are incurred? •The Attorney General opined: “A city may provide a vehicle allowance to its city council members in lieu of reimbursing actual vehicle expenses after such expenses are incurred.” Allowances •“[T]he purpose of a vehicle allowance provided to city council members or other public officers is to realize administrative and other cost savings and efficiencies for the public.” •“[A] vehicle allowance is permissible only if travel expenses are authorized by statute, ordinance, or charter.” •“[T]he amount of the allowance must be reasonably related to what is required for the performance of an officer’s public duties.” Vehicle Allowance •Travel allowance will serve as reimbursement for expenses such as gasoline, mileage, wear and tear, insurance, and depreciation, incurred by Council Members in the use of their personal automobiles in the course of official duties. •Current amount is $200 per month •Proposed adjusted amount is $450 per month •The ordinance will formally codify this travel allowance in the Municipal Code as suggested in the Attorney General opinion. Technology Allowance •Ordinance also establishes a technology allowance which recognizes the effects of COVID- 19 and new necessity to utilize technology to serve in the role of a council member. •Technology allowance is an extension of the Attorney General opinion discussing travel allowances by relying on the same concepts. •Risk question: allowance versus reimbursement-based model? Technology Allowance •Proposed amount is $205.00 per month •Amount will serve as reimbursement for technology- related expenses such as: •Cellphone service •Internet service •Other similar costs incurred by Council Members in the use of their personal technology- related equipment and service in the course of official duties. Technology Allowance •Based upon research by staff: •The monthly internet service in the Grand Terrace is about $114.99 (Spectrum Internet). •Monthly cell phone service with Verizon is about $90.00 (not including device costs). •Monthly cellphone service cost with AT&T (unlimited) is about $105.00. •The $205.00 amount is based upon the Verizon monthly cellphone service cost. General Comments •The salary adjustment does not take effect until a new City Council member is seated which will likely be after the next election. •The two allowances will take effect on July 1, 2022 (start of the new fiscal year) •The ordinance provides that the City Manager shall place a discussion item on a City Council agenda during the City’s annual budget preparation cycle for the City Council to review and consider adjustments to City Council salary and allowances. Questions Rental Program Non-Owner Occupied/Rental Property CURRENT PROGRAM CURRENT CHALLENGES GUIDANCE CURRENT RENTAL PROGRAM Annual inspection fee. Apartments 200+ units $36.00 per unit Apartments 1-199 units $48.00 per unit Single-Family Home $95.00 Re-Inspection $47.00 CURRENT RENTAL PROGRAM Good Landlord/Tenant Program. Passing inspection three consecutive years may qualify to participate in the good landlord/tenant program. For qualifying participants, the property owner will pay an annual inspection fee that is one-half of the City inspection program's annual fee, Four consecutive years will pay an annual inspection fee of 30 percent of the City inspection program's annual fee. For properties eligible under the program, a drive-by inspection will be conducted to ensure satisfactory maintenance. On the 11th year of participation, whether in the Good Landlord/Tenant Program or not, the participating property shall revert to first year status. Current Challenges Apartments Parking Garage use Number of Tenants Trash in street Increased foot traffic Current Challenges Single Family Homes Inoperable vehicles Noise complaints Dogs Responsible Party for violations Inspection timing Guidance Requested Crime Free Multi-Housing Program What defines a rental Business license required for 2 or more single-family homes and any multifamily dwelling Non-Owner-Occupied Rental information sheet Inspection timing change Late Fee Landscape Recognition Program RECOMMEND THAT THAT THE CITY COUNCIL DIRECT STAFF TO IMPLEMENT AN ANNUAL LANDSCAPE RECOGNITION PROGRAM Background Municipal code mandates that all residential and commercial developments have landscaped areas. The current code allows for broad discretion in how individuals utilize landscaping to enhance their property. This program would recognize creative and aesthetically pleasing installations. Program Description Self-nomination, nomination by residents, as well as nomination by City Staff (Code Enforcement). Selection will occur in the Fall in even numbered years, and Spring in odd numbered years. Candidates will be screened to ensure there are no code violations and businesses have appropriate licenses. Criteria for Selection General Appearance Creative or Unique Design Use of Native Plants Use of color Criteria for Selection Specialized gardens such as rain gardens, vegetable or herb gardens Water conservation techniques Complimentary use of hardscape and landscape elements. Selection Process Initial screening will be done by the Planning Commission and a pool of no more than 10 candidates will be forwarded to the City Council. City Council will select the recipients. Awards Recipients will receive a $100 gift card at a local nursery or gardening center. Will also receive a yard sign that they may place in their yard for the year as recognition of their award. ARPA Funding RECOMMEND THAT THE CITY COUNCIL APPROVE THE SELECTED PROJECTS, FOR THE USE OF THE AMERICAN RESCUE PLAN ACT FUNDING. Background On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by President Biden. In California, both large cities (populations over 50,000) and small cities and towns (populations under 50,000, which includes the City of Grand Terrace) have received ARPA funding allocations. In total, small cities in California, including Grand Terrace, have been allocated over $1.2 billion. Grand Terrace will receive $3,010,360 in funds. What Funds are Available? Recipients may determine their loss by choosing a standard allowance of up to $10 Million in aggregate, not to exceed their award amount, during the program. Recipients may use funds up to the amount of revenue loss for government service Payment for Law Enforcement is considered government service This will free General Fund resources to be applied to infrastructure projects. Staff recommendations for use of ARPA Funds $32,000 Records Management software to complete document preservation and retrieval initiatives. $50,000 Cap and plug abandoned well at Grand Terrace HS.The well is a source of liability.San Bernardino County Environmental Health Department is requesting us to mitigate the hazard.  Staff recommendations for use of ARPA Funds $50,000 Tree planting in the right of way throughout the City. $150,000 Street sign replacement for faded, missing and damaged signs. Christmas Tree at Palm and Barton Staff recommendations for use of ARPA Funds $160,000 Three public works trucks. Current trucks are at end of life. $200,000 Roof replacement at City Hall. Current roof is 40 years old and has multiple failures Staff recommendations for use of ARPA Funds $250,000 Sidewalk and handicap ramp repairs. There are multiple locations in the City where sidewalks present trip hazards and ramps do not meet ADA requirements. $2,100,000 Pavement rehabilitation. Approximately 2/3 of the funds will be expended to restore, replace, or rehabilitate streets. What to expect Staff is seeking direction to proceed with these priorities Each project will come back to Council for contract award and appropriation CITY OF GRAND TERRACE MID-YEAR & YEAR-END BUDGET REVIEWApril 26, 2022 2030 VISION •Goal #1: Ensuring our Fiscal Viability through the continuous monitoring of revenues & expenditures against approved budget allocations. 2 PURPOSE OF REVIEW •Mid-Year actuals & Year-end projections; •Proposed budget adjustments for the current year, if any; 3 MID-YEAR ACTUALS JANUARY 31, 2022 FY2021-22 ACTUAL REVENUES AS OF 01-31-2022 9 As of January 31, 2022, General Fund operating revenues received were $4,139,414, or 47.8% of the approved budget of $8,654,269. General Fund operating expenditures through January 31, 2022 were $3,617,338, which represents 53% of the approved expenditures of $6,822,395. With 58% of the fiscal year elapsed through January, this shows a positive result of $339,651 against the expected budget of $3,956,989. 9 Approved Budget JAN-2022 Monthly Actuals REVENUES $8,654,269 $4,139,414 EXPENDITURES (6,822,395)(3,617,338) NET $1,831,874 $522,076 REVENUE & EXPENDITURES AS OF 01-31-2022 YEAR-END PROJECTIONS FY2021-22 PROJECTED REVENUES 9 As of January 31, 2022, General Fund operating revenues received were $4,139,414, or 47.8% of the approved budget of $8,654,269. General Fund operating expenditures through January 31, 2022 are $3,617,338, which represents 53% of the approved expenditures of the approved budget of $6,822,395. With 58% of the fiscal year elapsed through January, this shows a positive result of $339,651 against expected budget of $3,956,989. REVENUES Approved Budget Year-end Projection 2017-18 Actuals Year-end vs. Appr Budget Property Tax $1,980,000 $1,976,300 $1,799,310 $(3,700) Residual Receipts -RPTTF 1,090,000 1,091,100 1,125,223 1,100 Residual Receipts -Housing 60,000 0 0 (60,000) Franchise Fees 524,300 515,000 510,761 (9,300) Licenses, Fees & Permits 419,415 376,080 432,805 (43,335) Sales Tax 770,000 770,000 773,093 0 Other revenues 310,100 285,200 372,146 (24,900) Proceeds -Sale of Property 80,000 80,000 0 0 Waste Water Receipts 300,000 318,350 300,000 18,350 OPERATING REVENUES $5,533,815 $5,412,030 $5,313,338 $(121,785) REVENUES Approved Budget JAN-2022 Monthly Actuals Year-End Projection Variance (Year-end vs. Budget) Property Tax $4,194,640 $2,329,354 $4,586,773 $392,133 Franchise Fees 620,000 179,191 631,646 11,646 Other Permits & Fees 95,870 46,164 104,276 8,406 Sales Tax 988,000 468,553 1,110,053 122,053 Business Licenses Fees 95,000 48,813 114,913 19,913 Charges for Services 440,450 117,612 186,550 (253,900) Fines & Forfeitures 66,300 24,333 44,273 (22,027) Miscellaneous 0 13,385 14,885 14,885 Use of Money & Property 34,660 13,916 28,416 (6,244) County Solid Waste 22,000 13,168 52,168 30,168 Proceeds from Sale of Prop 1,770,000 870,601 2,070,601 300,601 Motor Vehicle Fees 9,000 14,324 14,324 5,324 Waste Water Receipts 318,349 0 318,349 0 TOTAL REVENUES $8,654,269 $4,139,414 $9,277,227 $622,958 9 FY2021-22 PROJECTED EXPENDITURES EXPENDITURES Approved Budget JAN-2022 Monthly Actuals Year-end Projection Year-end vs. Appr Budget City Council $76,621 $29,096 $51,170 $25,451 City Manager 847,763 479,523 843,227 4,536 City Clerk 234,763 125,882 217,816 16,947 City Attorney 210,000 110,143 255,502 (45,502) Finance 480,364 231,016 412,722 67,642 Planning & Dev. Svcs.1,064,523 493,823 904,831 159,692 Public Works 659,645 387,173 705,495 (45,850) Law Enforcement 2,440,940 1,074,592 2,304,521 136,419 Non-Departmental 807,776 686,090 872,235 (64,459) TOTAL EXPENSE $6,822,395 $3,617,338 $6,567,519 $254,876 9 FY2021-22 REVENUE & EXPENSE Approved Budget JAN-2022 Actuals Year-End Projection Year-end vs. Appr Budget REVENUE $8,654,269 $4,139,414 $9,277,227 $622,958 EXPENSE (6,822,395)(3,617,338)(6,567,519)254,876 NET $1,831,874 $522,076 $2,709,708 $877,834 General Fund’s Long-Term Financial Performance Healthy Sustainable Vulnerable Unsustainable/ Insolvent 09/10 Rev $4.7M Exp $4.0M 10/11 11/12 12/13 13/14 14/15 15/16 16/17 Healthy:Revenues exceed expenditures,continue to show growth,City maintains a 2-month reserves-rainy day fund Sustainable:Revenues exceeds expenditures (2-month reserves–rainy day fund) Vulnerable:Revenues exceed expenditures (less than the 2-month reserve–rainy day fund) Unsustainable/Insolvent:Revenues less than expenditures Rev $5.3M Exp $5.5M Rev $6.1M Exp $5.1M Rev $5.3M Exp $4.7M Rev $5.2M Exp $4.8M Rev $4.8M Exp $4.4M Rev $4.5M Exp $4.5M Rev $5.0M Exp $4.8M 17/18 Rev $5.3M Exp $5.3M 18/19 Rev $5.4M Exp $5.4M 19/20 20/21 Rev $5.4M Exp $5.7M Rev $6.3M Exp $6.2M QUESTIONS?