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06/28/2022CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● JUNE 28, 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: 858 9854 4454 Password: 633401 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 June 28, 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 Certificate of Commendation – Anessa “Nessi” Campos, US Deaf Women’s National Soccer Team C. 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. D. NEW BUSINESS 1. Appoint Three (3) Planning Commission Members to Fill Three (3) New Four-Year Terms Expired June 30, 2022 RECOMMENDATION: Conduct Planning Commission Interviews and Make Appointments DEPARTMENT: CITY CLERK Agenda Grand Terrace City Council June 28, 2022 City of Grand Terrace Page 3 E. 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. 2. Approval of Minutes – Regular Meeting – 06/14/2022 DEPARTMENT: CITY CLERK 3. City Department Monthly Activity Report - April 2022 RECOMMENDATION: Receive and file. DEPARTMENT: CITY MANAGER 4. Adopt the Revised Special Event Ordinance to the Grand Terrace Municipal Code (GTMC) 8.50 RECOMMENDATION: That the City Council Adopt the Revised Special Event Ordinance to the Grand Terrace Municipal Code (GTMC) 8.50 DEPARTMENT: CITY MANAGER 5. Commitment of Fund Balance for Fiscal Year 2021-2022 in Accordance with Governmental Accounting Standards Board Statement No. 54 and City Reserves Policy No. 3.06 RECOMMENDATION: Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, COMMITTING FUND BALANCE FOR FISCAL YEAR 2021- 22 IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT 54 AND CITY RESERVES POLICY NO. 3.06 DEPARTMENT: FINANCE 6. Funding Agreement Between Omnitrans and the City of Grand Terrace for Measure "I" Funds for the City's Senior Transportation Program; RECOMMENDATION: 1. Approve the Two-Year Contract with Omnitrans for the following: a. A not to exceed amount of $173,703 in operating expenses, with an annual not to exceed amount of $86,965 in Fiscal Year 2022-23, and $86,738 in Fiscal 2023- 24; and b. A not to exceed amount of $46,800 in capital expenses, with an annual not to exceed amount of $46,800 in Fiscal Year 2022-23, 2. Direct the City Manager to execute the agreement subject to the City Attorney approval as to form. DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council June 28, 2022 City of Grand Terrace Page 4 7. Amendment No. 9 to the Waste Disposal Agreement Between the City of Grand Terrace and the County of San Bernardino RECOMMENDATION: 1) Adopt a RESOLUTION OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING AMENDMENT NO. 9, TO THE WASTE DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF GRAND TERRACE; and 2) Authorize the Mayor to Sign the Amendment No. 9 subject to City Attorney approval as to form. DEPARTMENT: PUBLIC WORKS 8. Award of Contract for the Capital Improvement Project (CIP 2022-1) RECOMMENDATION: Staff recommends that the City Council take the following actions: 1. Find that the Capital Improvement Project (CIP 2022-1) is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) and authorize the preparation and filing of a Notice of Exemption as applicable. 2 Award the Capital Improvement Project (CIP 2022-1) to Hardy & Harper, Inc. on the Base Bid only and approve the public works agreement with Hardy & Harper, Inc. in the amount of $570,000, plus a 10% contingency ($57,000) for the construction of the Capital Improvement Project (CIP 2022-1) and authorize the City Manager to execute the agreement subject to City Attorney approval as to form; 3 Award a contract to Willdan for Inspection Services for 2021-22 Capital Improvement Project (CIP 2022-1) in the amount of $30,240, plus a 10% contingency ($3,024), and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. DEPARTMENT: PUBLIC WORKS F. PUBLIC HEARINGS - NONE G. UNFINISHED BUSINESS - NONE H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Agenda Grand Terrace City Council June 28, 2022 City of Grand Terrace Page 5 Council Member Doug Wilson Council Member Sylvia Robles Mayor Pro Tem Bill Hussey Mayor Darcy McNaboe J. CITY MANAGER COMMUNICATIONS K. RECESS TO CLOSED SESSION CLOSED SESSION 1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION pursuant to Government Code Section 54957(b)(1) TITLE: City Attorney RECONVENE TO OPEN SESSION REPORT OUT OF CLOSED SESSION L. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, July 12, 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. AGENDA REPORT MEETING DATE: June 28, 2022 Council Item TITLE: Appoint Three (3) Planning Commission Members to Fill Three (3) New Four-Year Terms Expired June 30, 2022 PRESENTED BY: Debra Thomas, City Clerk RECOMMENDATION: Conduct Planning Commission Interviews and Make Appointments 2030 VISION STATEMENT This action supports Our Mission: To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government. BACKGROUND: The Planning Commission is a five-member Board appointed by the City Council and serve four-year terms at the pleasure of the City Council (Municipal Code Chapter 2.16). The terms alternate so that every two (2) years at least two (2) appointments are set to expire. At the end of the 2021-22 fiscal year, Former Commissioner McConnell (resigned April 1, 2022), Former Vice-Chairman Briggs (resigned February 3, 2022), and Chairman Giroux’s terms expired. The Table below depicts the current composition and terms of the Commission: Name Appointed Re-Appointed Term Ends Chairman Edward Giroux 06/10/2014 07/10/2018 06/30/2022 Vacant * -- 06/30/2022 Commissioner Tara Ceseña 06/10/2014 06/02/2016 06/30/2024 Vacant * -- 06/30/2022 Commissioner David Alaniz 02/25/2020 -- 06/30/2024 *Commissioners resigned effective February 3, 2022, and April 1, 2022, respectively. Commission members are eligible to seek reappointment to the Planning Commission. DISCUSSION: D.1 Packet Pg. 6 On February 28, 2022, and April 13, 2022, staff advertised for the two (2) expiring terms as the result of resignations and again on May 15, 2022, for three (3) expiring terms as the result of a total of three (3) expiring terms on the Planning Commission. Those advertisements ran bi-weekly from February 28, 2022, through May 15, 2022. As a result, six (6) applications were received which have been attached to this report. The applicants are as follows: 1. Aron Chad Burian 2. Brian Roy Phelps 3. Edward Giroux (reapplying) 4. Michelle Norris 5. Scot Mathis 6. Vincent Rasso The appointment process will proceed as follows: • Draw applicant names to determine the order of interview • Staff provides City Council with questions to ask each applicant • Staff provides City Council with ballot listing names of applicants • Interview each applicant one-by-one, with the first interview beginning with the first name drawn while the remaining applicants are sequestered in the Community Room • After interviews are complete, City Council select their top three (3) applicants for appointment via a ballot process • Upon completion, Staff collects the ballots from the dais and reads aloud how each Council Member voted and the applicants receiving the majority votes are appointed. FISCAL IMPACT: There would be no additional fiscal impact created by this action. Planning Commissioners are paid a stipend of $50.00 a month for attendance at a minimum of one meeting, which would continue with the new appointments. D.1 Packet Pg. 7 ATTACHMENTS: • Aron Chad Burian_Redacted (PDF) • Brian Roy Phelps_Redacted (PDF) • Edward Giroux_Redacted (PDF) • Michelle Norris_Redacted (PDF) • Scot Mathis_Redacted (PDF) APPROVALS: Debra Thomas Completed 06/21/2022 3:04 PM Finance Completed 06/21/2022 3:23 PM City Manager Completed 06/21/2022 4:43 PM City Council Pending 06/28/2022 6:00 PM D.1 Packet Pg. 8 D.1.a Packet Pg. 9 At t a c h m e n t : A r o n C h a d B u r i a n _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.a Packet Pg. 10 At t a c h m e n t : A r o n C h a d B u r i a n _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.b Packet Pg. 11 At t a c h m e n t : B r i a n R o y P h e l p s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.b Packet Pg. 12 At t a c h m e n t : B r i a n R o y P h e l p s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.c Packet Pg. 13 At t a c h m e n t : E d w a r d G i r o u x _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.d Packet Pg. 14 At t a c h m e n t : M i c h e l l e N o r r i s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.d Packet Pg. 15 At t a c h m e n t : M i c h e l l e N o r r i s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.d Packet Pg. 16 At t a c h m e n t : M i c h e l l e N o r r i s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.d Packet Pg. 17 At t a c h m e n t : M i c h e l l e N o r r i s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.d Packet Pg. 18 At t a c h m e n t : M i c h e l l e N o r r i s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.d Packet Pg. 19 At t a c h m e n t : M i c h e l l e N o r r i s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.d Packet Pg. 20 At t a c h m e n t : M i c h e l l e N o r r i s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) D.1.e Packet Pg. 21 At t a c h m e n t : S c o t M a t h i s _ R e d a c t e d ( P l a n n i n g C o m m i s s i o n A p p o i n t m e n t s ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● JUNE 14, 2022 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Mayor Darcy McNaboe convened the Regular Meeting of the City Council for Tuesday, June 14, 2022, at 6:00 p.m. INVOCATION Mayor Pro Tem Bill Hussey gave the Invocation. PLEDGE OF ALLEGIANCE Council Member Jeff Allen 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 B. SPECIAL PRESENTATIONS Debra Thomas, City Clerk introduced Lanita Perez, new Department Secretary for the City of Grand Terrace. E.2 Packet Pg. 22 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 J u n 1 4 , 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 June 14, 2022 City of Grand Terrace Page 2 C. CONSENT CALENDAR RESULT: APPROVED [UNANIMOUS] MOVER: Bill Hussey, Mayor Pro Tem 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 – 05/24/2022 APPROVE THE REGULAR MEETING MINUTES OF MAY 24, 2022 4. Letter of Support for the Community Assistance, Recovery and Empowerment Court Concept (CARE Court) THAT THE CITY COUNCIL CONSIDER ITS SUPPORT FOR THE COMMUNITY ASSISTANCE, RECOVERY AND EMPOWERMENT COURT AND AUTHORIZE THE MAYOR TO SIGN THE LETTER OF SUPPORT ON BEHALF OF THE CITY COUNCIL Agenda Item C.3 pulled for discussion 3. Approval of the April-2022 Check Register in the Amount of $422,580.52 Mayor Pro Tem Bill Hussey pulled Agenda Item C.3, Approval of the April-2022 Check Register in the Amount of $422,580.52 for discussion. APPROVE THE CHECK REGISTER NO. 04302022 IN THE AMOUNT OF $422,580.52 AS SUBMITTED, FOR THE MONTH ENDING APRIL 30, 2022. RESULT: APPROVED [UNANIMOUS] MOVER: Bill Hussey, Mayor Pro Tem SECONDER: Jeff Allen, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen D. PUBLIC COMMENT Bobbie Forbes, Grand Terrace requested that the City would produce an idea to legally allow her to put up lost and found signs for animals. Ms. Forbes expressed her concerns regarding 22300 Barton Road and what she believes to be an unsafe condition. E. PUBLIC HEARINGS - NONE E.2 Packet Pg. 23 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 J u n 1 4 , 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 June 14, 2022 City of Grand Terrace Page 3 F. UNFINISHED BUSINESS 5. Adoption of the Fiscal Year 2022-23 Budget Konrad Bolowich, City Manager gave the staff report and PowerPoint presentation for this item. PUBLIC COMMENT Bobbie Forbes, Grand Terrace expressed appreciation that the City is hiring more staff and she requested that City staff support and work with the community. 1. ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2022-2023. RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen G. NEW BUSINESS 6. Revised Special Events Ordinance Konrad Bolowich, City Manager gave the staff report and PowerPoint presentation for this item. THAT THE CITY COUNCIL RESCIND THE EXISTING GRAND TERRACE MUNICIPAL CODE (GTMC) 8.50 SPECIAL EVENTS AND ADOPT THE REVISED CODE TO THE GRAND TERRACE MUNICIPAL CODE (GTMC) 8.50 RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Bill Hussey, Mayor Pro Tem AYES: McNaboe, Hussey, Robles, Wilson, Allen 7. Discussion Regarding the City's Unfunded Pension & OPEB Liabilities Terry Shea, Interim Finance Director gave the staff report and PowerPoint presentation for this item. RECEIVE DIRECTION FOR WAYS TO ADDRESS THE CITY'S UNFUNDED PENSION & OPEB LIABILITIES. RESULT: PROVIDE DIRECTION TO STAFF E.2 Packet Pg. 24 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 J u n 1 4 , 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 June 14, 2022 City of Grand Terrace Page 4 8. Consideration of Entering into an Agreement with Multi-Bank Securities, Inc. & Opening a Custodial Agreement with Pershing LLC Terry Shea, Interim Finance Director gave the staff report for this item. IT IS RECOMMENDED THE CITY COUNCIL AUTHORIZE THE INTERIM FINANCE DIRECTOR TO PURCHASE NEGOTIABLE CERTIFICATES OF DEPOSITS AND OTHER AUTHORIZED INVESTMENTS FROM MULTI-BANK SECURITIES AND OPEN A CUSTODIAL ACCOUNT WITH PERSHING LLC. THE AUTHORIZED SIGNERS ON THE ACCOUNT WOULD BE THE CITY MANAGER KONRAD BOLOWICH AND INTERIM FINANCE DIRECTOR TERRY SHEA. RESULT: APPROVED [UNANIMOUS] MOVER: Doug Wilson, Council Member SECONDER: Sylvia Robles, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 9. Approval of Annual Appropriations Limit for Fiscal Year 2022-23, Including Adoption of the Price Factor and Population Change Factor for the Appropriations Limit Calculation Terry Shea, Interim Finance Director gave the staff report and PowerPoint presentation for this item. (1) APPROVE THE SELECTION OF THE CHANGE IN PER CAPITA PERSONAL INCOME OF 7.55% AS THE PRICE FACTOR FOR THE FISCAL YEAR 2022-23 APPROPRIATIONS LIMIT CALCULATION; AND (2) APPROVE THE SELECTION OF THE CHANGE IN COUNTY OF SAN BERNARDINO POPULATION OF 0.14% AS THE POPULATION CHANGE FACTOR FOR THE FISCAL YEAR 2022-2023 APPROPRIATIONS LIMIT CALCULATION; AND (3) ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Bill Hussey, Mayor Pro Tem AYES: McNaboe, Hussey, Robles, Wilson, Allen E.2 Packet Pg. 25 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 J u n 1 4 , 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 June 14, 2022 City of Grand Terrace Page 5 10. Approval of Amendment No. 2 to the Professional Services Agreement for Interim Finance Director and Administration Services with Rogers, Anderson, Malody and Scott, LLP Konrad Bolowich, City Manager gave the staff report for this agenda item. 1. APPROVE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT FOR INTERIM FINANCE DIRECTOR AND ADMINISTRATION SERVICES WITH ROGERS, ANDERSON, MALODY AND SCOTT, LLP, WHICH INCREASES THE CONTRACT SUM BY $60,000 FOR A TOTAL CONTRACT SUM OF $277,500. 2. AUTHORIZE THE MAYOR TO EXECUTE AMENDMENT NO. 2, SUBJECT TO THE CITY ATTORNEY’S APPROVAL AS TO FORM. RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Bill Hussey, Mayor Pro Tem AYES: McNaboe, Hussey, Robles, Wilson, Allen H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Nothing to Report. Council Member Doug Wilson On June 8, 2022, Council Member Doug Wilson participated in an interview with a representative from the Grand Terrace High School “Teens for Change” group to discuss its mission. Council Member Sylvia Robles On May 30, 2022, Council Member Sylvia Robles attended the Memorial Day event held at Veteran’s Freedom Park hosted by the Veteran’s Wall of Freedom committee. Mayor Pro Tem Bill Hussey Mayor Pro Tem Bill Hussey attended a Memorial Day event held in South Carolina. Mayor Darcy McNaboe Mayor Darcy McNaboe attended the Memorial Day Event hosted by the Veteran’s Wall of Freedom Committee, Grand Terrace Community Days and participated in an interview with a representative from the Grand Terrace high School “Teens for Change” group to discuss its mission. Mayor McNaboe also attended meetings with Omnitrans and SBCTA to discuss budgets. E.2 Packet Pg. 26 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 J u n 1 4 , 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 June 14, 2022 City of Grand Terrace Page 6 J. CITY MANAGER COMMUNICATIONS Konrad Bolowich, City Manager announced the following: • City Manager’s TAC group is discussed the sunsetting of Measure I • Update on the City of Grand Terrace’s Vaccination Clinic • June 28, 2022, San Bernardino County Department of Health’s COVID-19 Vaccination Clinic • July 19, 2022, San Bernardino County Department of Health’s COVID-19 Vaccination Clinic K. CLOSED SESSION - NONE L. ADJOURN Mayor Darcy McNaboe adjourned the Regular Meeting of the City Council in memory of Grand Terrace resident, Leroy Parker at 7:40 p.m. The Next Regular Meeting of the City Council will be held on Tuesday, June 2, 2022, at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Debra Thomas, City Clerk E.2 Packet Pg. 27 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 J u n 1 4 , 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: June 28, 2022 Council Item TITLE: City Department Monthly Activity Report - April 2022 PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: Receive and file. 2030 VISION STATEMENT: This staff report identifies the monthly tasks associated with the delivery of projects to support City Council’s Goals 1) Ensure Our Fiscal Viability - Explore Creative Means to Provide Services and 4) Develop and Implement Successful Partnerships - Work with Local, Regional and State Agencies to secure Funding for Programs and Projects. BACKGROUND: The City Council of Grand Terrace established a 2030 Vision for the City of Grand Terrace and followed up with a 2014-2020 Strategic Plan. The Strategic Plan is a roadmap to ensure that the City remains on target and reaches its overall goals. The 2030 Vision and Strategic Plan will be achieved as staff accomplishes tasks and projects that are aligned with the 2030 Vision goals. The goals include: • Ensure Our Fiscal Viability • Maintain Public Safety • Promote Economic Development • Develop and Implement Successful Partnerships • Engage in Proactive Communications DISCUSSION: This Monthly report includes April 2022 data for each department in the City. The number of projects and activities reported do not reflect everything staff is doing but rather highlights things they have worked on in the past month which may be of interest to City Council and the public. This report is updated monthly and posted to the City’s website on the fourth week of each month. FISCAL IMPACT: The Monthly report has no fiscal impact. The monthly reports do not provide budgetary status. The Finance Department will continue to produce individual monthly financial reports which are separate from the Department monthly reports. ATTACHMENTS: • City Manager Apil 2022 Report [Final] (PDF) E.3 Packet Pg. 28 APPROVALS: Konrad Bolowich Completed 06/22/2022 11:12 AM City Manager Completed 06/22/2022 11:46 AM City Council Pending 06/28/2022 6:00 PM E.3 Packet Pg. 29 MONTHLY REPORT April 2022 PRESENTED BY THE CITY MANAGER’S OFFICE E.3.a Packet Pg. 30 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) E.3.a Packet Pg. 31 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) i Organizational Chart .........................................................................................1 City Clerk ...........................................................................................................2 Committee/Commissions ........................................................................7 City Manager .....................................................................................................8 Senior Center ....................................................................................... 12 Senior Bus Program ............................................................................. 15 Communications ................................................................................... 20 Planning and Development ............................................................................ 24 Code Enforcement ............................................................................... 31 Weekend Code ..................................................................................... 33 Parking/Graffiti ...................................................................................... 33 Animal Control ...................................................................................... 36 Public Works .................................................................................... Unavailable Engineering Division ............................................................... Unavailable Maintenance ........................................................................... Unavailable Park Maintenance .................................................................. Unavailable Burrtec Waste Generation Report .......................................... Unavailable Public Works Administration ................................................... Unavailable Sheriff’s Contract ............................................................................................ 42 Law Enforcement Services ................................................................... 43 San Bernardino County Fire ........................................................................... 45 Emergency Management Services ...................................................... 46 E.3.a Packet Pg. 32 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) CITY MANAGER Organization Chart City Manager City Clerk Planning & Development Public Works Finance Public Safety Agenda Processing Land Use Planning Engineering Accounting Fire District Elections Planning Commission NPDES Budgeting & Purchasing Law Enforcement Records Management Building & Safety Storm Drain Maintenance Payroll FPPC Filings Code Enforcement Facilities Maintenance Treasury Public Records Enforcement Program Parks Maintenance Senior Bus Program 1 E.3.a Packet Pg. 33 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) &LW\RI*UDQG7HUUDFH &LW\&OHUN¶V'HSDUWPHQW &LW\&OHUN x $JHQGD3URFHVVLQJ x (OHFWLRQV x 5HFRUGV0DQDJHPHQW x )33&)LOLQJV x 3XEOLF5HFRUGV 2 E.3.a Packet Pg. 34 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) City of Grand Terrace City Clerk’s Department . DATE: June 28, 2022 TO: City Manager’s Office FROM: Debra Thomas, City Clerk City Clerk’s Office SUBJECT: APRIL CITY CLERK MONTHLY REPORT This monthly report is presented to the City Manager to keep him informed of the activities and responsibilities within the City Clerk’s Department over the last six (6) months. The City Clerk’s Office is staffed with one position that includes the City Clerk. The primary responsibilities for this department are Council Support Services, Records Management, Administrative Processing, Board Administration and Election Services. Each of these functions require a collaborative effort between the department staff to ensure that all components within the process are completed from origin to file. As the official records manager for all City documents it is imperative that this process be accurate to ensure the preservation of the City’s history. AGENDAS/POSTINGS The City Clerk is responsible for preparing agendas and postings for all City Council Regular and Special Meetings, as well as for the Housing Authority and Successor Agency to the Community Redevelopment Agency. The total number of agendas processed for the month of April 2022 are three (3), spending a total of twenty-four (24) hours preparing the agenda packet producing 616 pages. AGENDA PROCESSING/POSTING MONTH Regular Meeting Special Meeting Totals November 1 1 2 December 1 1 2 January 2 0 2 February 2 1 3 March 2 0 2 April 2 1 3 Total Processed 10 4 14 3 E.3.a Packet Pg. 35 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) RESOLUTIONS & ORDINANCES The City Clerk is responsible for the security of all official City records including Resolutions. Additionally, it is the City Clerk’s responsibility to ensure those Resolutions are executed, certified, and published, when appropriate. It is also the responsibility of the City Clerk to ensure all City Council Ordinances presented to Council have been certified and made available for review by the public. The City Clerk must coordinate with the local adjudicated newspaper to publish Ordinance summaries for its first and second readings. The number of Resolutions processed for the month of April is three (3). There were no ordinances processed. RESOLUTIONS AND ORDINANCES PROCESSED RESOLUTIONS ORDINANCES MONTHLY TOTALS November 1 1 2 December 5 0 5 January 7 1 8 February 5 0 5 March 4 0 4 April 3 0 3 Total Processed 24 2 26 RECOGNITION ACTIVITY Its purpose is to recognize individuals, groups, and events of significance to the Grand Terrace community by the issuance of Certificates, Recognition, Acknowledgment and Commendation Pins. It is the responsibility of the City Clerk to ensure that all signatures of City Council are obtained on the document, coordinate attendance at Council meetings for the individual, group, or event representative to accept the recognition, as well as prepare Council with all necessary information to present the recognition if presentation will be held at another venue. There was seven (7) Certificates of Recognition and two Proclamations issued for the month of April 2022. Month Certificate of Acknowledgment w/Pin Certificate of Recognition w/Pin Commendation w/Pin In Memoriam Adjournments Certificate of Participation Proclamation Total November 0 7 0 0 0 1 8 December 0 0 0 0 0 0 0 January 0 43 0 0 0 1 44 February 0 0 0 0 0 0 0 March 0 0 1 1 0 1 3 April 0 7 0 0 0 2 10 Total 0 57 1 1 0 5 65 4 E.3.a Packet Pg. 36 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) CONTRACTS AND AGREEMENTS PROCESSED The City Clerk works closely with the City Council and is responsible for processing follow-up documentation. Management of these documents include contracts and agreements, and it is the responsibility of the City Clerk to obtain signatures, distribute originals, log, scan, and file. There were two (2) agreements processed for the month of April 2022. CONTRACTS & AGREEMENTS PROCESSED November 1 December 4 January 2 February 3 March 0 April 2 Total 12 RECORDS REQUESTS The City Clerk’s office received twelve (12) Requests for Copies of Public Records for the month of April 2022. Twelve (12) of these requests were completed within the Government Code Section 6253(c)’s requirement of ten (10) calendar days. The total number of pages provided in response to those requests were 44. RECORDS REQUEST SUMMARY Month Requests Received Completed Within 10 Days Completed with 14-Day Extension # of Pages Provided Letter to Requestor – No Records November 6 6 0 63 2 December 8 6 2 11,258 0 January 17 9 6 471 4 February 10 7 3 86 3 March 10 8 2 77 4 April 12 12 0 44 3 Total Requests 63 48 13 11,999 16 5 E.3.a Packet Pg. 37 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) CUSTOMER SERVICE – TELEPHONE CALLS The City Clerk is responsible for receiving and responding to inquiries and external customer service requests, communicating, coordinating, and responding to internal department requests, external agency cooperation and legislative bodies. For the month of April 2022, the City Clerk’s office responded to 242 telephone calls from residents, contractors, vendors, consultants, and in-house customer service assistance to City staff. TELEPHONE CUSTOMER SERVICE November 290 December 311 January 352 February 288 March 242 April 236 Total Calls 1,719 HISTORICAL & CULTURAL COMMITTEE ACTIVITY The Historical and Cultural Activities Committee preserves the history of Grand Terrace and facilitates cultural activities for the benefit of all citizens in the City. The City Clerk serves as a liaison facilitating communication between the committee and City Manager and City Council, maintains the committee minutes of its proceedings and provides support for the Annual Art Show, Country Fair and City Birthday Party. Month Committee Meeting Emails w/Committee Members & Vendors Written Correspondence w/Committee Members Telephone Calls with Committee Members & Vendors Art Show/Country Fair & City Birthday Prep & Attendance Total # of Hours November 1 .5 0 .25 0 1.75 December 1 .5 .5 .25 4.0 6.25 January 1 .5 .5 0 0 2 February 1 .5 .5 .5 0 2.5 March 1 .5 .5 .5 0 2.5 April 1 .5 .5 .5 0 2.5 TOTAL # HOURS 6.0 3.0 2.5 2.0 4.0 17.50 6 E.3.a Packet Pg. 38 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) COMMITTEES/COMMISSIONS The City Clerk is responsible for maintaining Appointed Committee/Commission Rosters and ensuring that all information is current and up to date for each. Listed below are the number of current Appointed City Committees/Commissions, including the number of alternates and vacancies that may exist: COMMITTEES/COMMISSIONS # OF MEMBERS # OF ALTERNATES # OF VACANCIES Historical & Cultural Activities Committee 6 0 1 Planning Commission 4 0 1 Parks & Recreation Committee 5 0 0 7 E.3.a Packet Pg. 39 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) &LW\RI*UDQG7HUUDFH &LW\0DQDJHU¶V2IILFH &LW\0DQDJHU¶V2IILFH x &LW\0DQDJHU¶V2IILFH x +XPDQ5HVRXUFHV x 6HQLRU&HQWHU 8 E.3.a Packet Pg. 40 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) DATE: June 28, 2022 TO: Konrad Bolowich, City Manager City Manager’s Office FROM: Debra L. Thomas, City Clerk SUBJECT: April-2022 Monthly Services Report This monthly report is presented to the City Manager to keep the City Manager and Policy Makers informed of the activities within the City Manager’s Office and programs administered by the office to meet service demands. The tasks and projects identified within the monthly report represent programs administered by the City Manager’s Office. The projects identified in this report do not represent the City Manager’s Office’s larger policy and fiscal oversight. Reports on those issues are presented to the Council in separate and distinct reports. The attached monthly report addresses the City Manager’s Office administration of the following activities:  Human Resources  Senior Center  Finance (currently ACM is Acting Finance Director)  IT and Communications OUR MISSION To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of a fiscally responsible government. OUR VISION Grand Terrace is an exceptionally safe and well managed City, known for its natural beauty and recreational opportunities; a vibrant and diverse local economy; a place where residents enjoy an outstanding quality of life that fosters pride and an engaged community, encouraging families to come and remain for generations. 9 E.3.a Packet Pg. 41 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) HUMAN RESOURCES Mission: It is the mission of human resources to support the organization in meeting its mission and goals through one of its most valuable resources - its PEOPLE. Values: Develop An attitude of teamwork and quality in our day-to-day operations and create an atmosphere that fosters camaraderie, fellowships, challenges, and safety. Increase Participation in City and community activities while seeking knowledge, enthusiasm, and an improved quality of life for ourselves, co-workers, and the community. Respect Team member values that may be different from our own and accept responsibility for promoting ethical and legal conduct in personal and business practices. Communicate In a candid and fair manner with the diverse workforce from whom our City derives its strength. CORE SERVICES 1. Hiring the most qualified employees by: pre-planning staffing needs, ensuring an effective internal interview process, conducting thorough reference checks. 2. Properly balancing the needs of the employees and the needs of the organization. 3. Ensuring a diverse workforce in a safe and discrimination/harassment free environment by: maintaining compliance with employment laws and government regulations, providing management and employee training, and developing policies and procedures. 4. Providing training and development in areas of: effective leadership and career development of employees, and, employment law and government regulation. 5. Retaining our valued employees by: assuring effective leadership qualities in our managers; furnishing technical, interpersonal and career development training and coaching; supplying relevant feedback to management; and enhancing two-way communication between employees and management. 10 E.3.a Packet Pg. 42 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) TABLE 1 Recruitment Activity Description Jul- 2021 Aug- 2021 Sept- 2021 Oct- 2021 Nov- 2021 Dec- 2021 Recruitments Initiated 3 0 2 0 0 1 Recruitments in Progress 3 1 1 3 1 1 Recruitments Pending 2 1 1 0 1 0 Applications Processed 129 0 49 35 0 0 New Hires Processed 2 0 4 4 0 0 Description Jan- 2022 Feb- 2022 Mar- 2022 Apr- 2022 May- 2022 Jun- 2022 Recruitments Initiated 1 2 1 0 Recruitments in Progress 1 1 1 0 Recruitments Pending 1 1 1 0 Applications Received/Processed 10 19 52 0 New Hires Processed 0 1 1 0 TABLE 2 Employee Job Performance Activity Description Jul- 2021 Aug- 2021 Sept 2021 Oct- 2021 Nov- 2021 Dec- 2021 Evaluations Processed 1 0 1 3 1 6 Description Jan- 2022 Feb- 2022 Mar- 2022 Apr- 2022 May- 2022 Jun- 2022 Evaluations Processed 0 0 1 1 11 E.3.a Packet Pg. 43 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) SENIOR CENTER Mission: To provide recreational, educational, and social activities for the seniors in the community and to enrich our seniors lives through friendship, activities, education, and nourishment. Core Values: Seniors are recognized as a valuable asset. Seniors have the opportunity to contribute and expand their talents and knowledge. Seniors strengthen our community and benefit personally by their involvement. Seniors have access to a full spectrum of services, including social, emotional, educational, and recreational opportunities appropriate to their unique needs and interests. Seniors are treated respectfully and with dignity. Senior of all economic circumstances are served. TABLE 1 - Senior Center Activities Description Jul- 2021 Aug- 2021 Sept- 2021 Oct- 2021 Nov- 2021 Dec- 2021 Nutrition Program (# of meals served) 660 815 1,015 730 860 915 Homebound Meals 230 285 295 335 295 200 Bingo Bridge Bunco Coffee with Megan Exercise Classes Garden Club Morning Glories (quilting) Movies with Solomon Paint Classes Card Game Night (Wednesday) Zumba Kings Corner Cribbage Cell Phone Class Loteria SPECIAL EVENTS Monthly Birthday Celebration Entertainment (2nd Fri. each mo.) Volunteer Meeting Hydration Station Bus Pass Distribution 4th of July Party / Sept Pizza Party / Health Screening Christmas / Holiday Celebration Monthly Summary Attendance (Accounts for a senior participating in any activity/program. One senior may have participated in 2 or more programs, not including meals.) 12 E.3.a Packet Pg. 44 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Description *Jan -2022 *Feb 2022 **Mar -2022 Apr- 2022 May- 2022 Jun- 2022 Nutrition Program (# of meals served) 795 670 910 820 Homebound Meals 285 270 260 370 Arts and Crafts Classes Bingo Bridge Bunco Coffee with Shari Exercise Classes Garden Club Morning Glories (quilting) Movies with Solomon Paint Classes Card Game Night (Wednesday) Zumba Kings Corner Cribbage Cell Phone Class Loteria SPECIAL EVENTS Monthly Birthday Celebration Entertainment (2nd Fri. each mo.) Volunteer Meeting Hydration Station Bus Pass Distribution 4th of July Party / Sept Pizza Party Health Screening Monthly Summary Attendance (Accounts for a senior participating in any activity/program. One senior may have participated in 2 or more programs, not including meals.) ** - Due to COVID-19, the Senior Center will only be providing limited meals. 13 E.3.a Packet Pg. 45 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) 1 0 100 200 300 400 500 600 700 800 900 July August September October November December 660 815 1015 730 860 915 230 285 295 335 295 200 Senior Center (2021 -22) July-2021 -December-2021 # of Meals Served Homebound Meals 0 100 200 300 400 500 600 700 800 900 January February March April May June 795 670 910 820 0 0 285 270 260 370 0 0 Senior Center (2021-22) January-2022 -June-2022** # of Meals Served Homebound Meals ** - Due to COVID-19, the Senior Center will only be providing limited meals. 14 E.3.a Packet Pg. 46 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) TABLE 2 Senior Center Blue Mountain Silver Liner # of Passengers Description Jul- 2021 Aug- 2021 Sept- 2021 Oct- 2021 Nov- 2021 Dec- 2021 Within City Limits (Senior Center, Stater Brothers, Library) 324 441 407 209 373 213 Outside City Limits (Walmart, 99cent store, Ross) 0 0 0 0 0 0 Special Events/Trips 0 0 0 0 0 0 Description Jan- 2022 Feb- 2022 Mar- 2022 Apr- 2022 May- 2022 Jun- 2022 Within City Limits (Senior Center, Stater Brothers, Library) 349 259 395 441 0 0 Outside City Limits (Walmart, 99cent store, Ross) 0 0 0 0 0 0 Special Events/Trips 0 0 0 0 0 0 TABLE 3 # of Rides Description Jul- 2021 Aug- 2021 Sept- 2021 Oct- 2021 Nov- 2021 Dec- 2021 Within City Limits (Senior Center, Stater Brothers, Library) 652 879 835 418 756 430 Outside City Limits (Walmart, 99cent store, Ross) 0 0 0 0 0 0 Special Events/Trips 0 0 0 0 0 0 Description Jan- 2022 Feb- 2022 Mar- 2022 Apr- 2022 May- 2022 Jun- 2022 Within City Limits (Senior Center, Stater Brothers, Library) 716 533 754 887 0 0 Outside City Limits (Walmart, 99cent store, Ross) 0 0 0 0 0 0 Special Events/Trips 0 0 0 0 0 0 15 E.3.a Packet Pg. 47 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) 0 50 100 150 200 250 300 July August September October November December 324 441 407 209 373 213 652 879 835 418 756 430 Senior Transportation July-2021 -December-2021 # of Passengers # of Rides 200 250 300 January February March April May June 349 259 395 441716533754 887 Senior Transportation January-2022 -June -2022 # of Passengers # of Rides 16 E.3.a Packet Pg. 48 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Oc-17 7%5% FINANCE Mission: To efficiently and effectively manage the City’s finances, preserve its assets by conforming to the highest ethical standards, implement sound internal controls, and provide meaningful, timely, and accurate financial reporting. Values: Transparency (Accessibility of Information): The Finance Department will ensure openness, clarity and comprehensibility when providing reliable, relevant, and timely financial information to the public. Integrity (Reliability on Information Provided): The Finance Department commits adherence to the highest ethical standards. The financial services provided will be honest, fair, and unbiased. Quality (Commitment to Excellence): The Finance Department will deliver financial services expeditiously and provide valuable support services to other departments and the community. Teamwork (Mutual Respect and Cooperation): The Finance Department will work together collaboratively with others, recognize the role and contribution each person makes, and provide assistance as necessary to achieve the City’s 2030 Mission, Vision and Goals. CORE SERVICES The Finance Department has 4 core services: Accounting, Purchasing, Revenue Management and Treasury. The Finance Department works in partnership with other departments to effectively develop, manage and safeguard the City’s fiscal resources to enable and enhance the delivery of City services and projects. 1. Disbursements – to facilitate timely and accurate payments of the City’s financial obligations which includes vendor payments, employee and resident reimbursements, and payroll. 2. Financial Reporting – to provide accurate and meaningful reporting on the City’s financial condition through the City’s monthly and annual financial reports. 3. Purchasing – to authorize the purchase of quality products in a cost-effective manner. 4. Revenue and Treasury Management – to bill and collect revenue while providing cost- effective financing, investments, and cash collection of the City’s resources to enhance the City’s financial condition. 17 E.3.a Packet Pg. 49 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) TABLE 1 Financial Activity Description Jul- 2021 Aug- 2021 Sept- 2021 Oct- 2021 Nov- 2021 Dec- 2021 Invoices Processed 165 124 145 136 120 163 164 Checks Issued 76 88 86 108 72 164 Purchase Orders Established 18 10 12 10 9 5 Revenue Receipts Recorded 22 31 45 57 47 23 Description Jan- 2022 Feb- 2022 Mar- 2022 Apr- 2022 May- 2022 Jun- 2022 Invoices Processed 170 104 134 123 Checks Issued 143 126 97 79 Purchase Orders Established 7 8 3 2 Revenue Receipts Recorded 71 63 55 33 165 76 18 22 124 88 10 31 145 86 12 45 136 108 10 57 120 72 9 47 163 164 5 23 0 25 50 75 100 125 150 175 Invoices Processed Checks Issued P.Os Established Revenue Receipts Recorded Financial Activity Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 18 E.3.a Packet Pg. 50 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) FINANCIAL REPORTS SUBMITTED TO CITY COUNCIL: Monthly: 1. Check Register; and 2. General Fund Monthly Financial Report (revenues less expenditures). Quarterly: 1. Business License Report; and 2. Treasurer’s Report (current cash flow and fund balance); and 3. 1st Quarter, Mid-Year and Year-end Financial Reports (General Fund). Annual: Audited Annual Financial Reports for the following: 1. City – all Funds; 2. Measure I – Fund 20; 3. Air Quality Management District (AQMD) – Fund 15; and 4. Housing Authority- Fund 52. 170 143 7 71 104 126 8 63 134 97 3 55 123 79 2 33 0 20 40 60 80 100 120 140 160 180 Invoices Processed Checks Issued P.Os Established Revenue Receipts Recorded Financial Activity Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 19 E.3.a Packet Pg. 51 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) COMMUNICATIONS Mission: To develop, implement and provide comprehensive internal and external communications for the City and its community. Core Services: Plan, organize and disseminate timely and accurate information and promote awareness of City operations, services, programs, projects, events, and issues to the community. Promote and provide positive and proactive media relations for the City. Disseminate news materials in a timely manner. Initiate and write press releases, public service announcements, articles, and websites for media distribution. Maintain and improve the City’s website for distributing mass media information under various situations. Channel 3: Jul Aug Sep Oct Nov Dec City Council Meeting Replays 2 2 2 2 1 1 Activities/Items Added to Slideshow 0 0 0 0 0 0 Channel 3: Jan Feb Mar Apr May Jun City Council Meeting Replays 2 2 2 2 Activities/Items Added to Slideshow 0 1 1 1 Eblast Jul Aug Sep Oct Nov Dec Number of E-newsletters Distributed 3 4 1 2 1 0 Number of Subscribers 865 866 872 873 874 881 Change in Subscribers 35 1 6 1 1 7 Number of E-newsletters Opened* No Data No Data No Data No Data No Data No Data Eblast Jan Feb Mar Apr May Jun Number of E-newsletters Distributed 1 1 2 3 Number of Subscribers 885 886 888 900 Change in Subscribers 4 1 2 12 Number of E-newsletters Opened* No Data No Data No Data No Data No Data No Data * New e-newsletter management system does not currently track emails opened. 2021-2022 City Communications Data: 20 E.3.a Packet Pg. 52 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Facebook Jul Aug Sep Oct Nov Dec Posts 3 4 0 8 3 2 Total Reach* 4,068 5,794 0 7,290 2,126 2,389 Total Engagement** 376 608 0 716 104 493 Page Followers 2,540 2541 2,560 2,583 2,601 2,603 New Page Followers 9 1 19 23 18 2 Facebook Jan Feb Mar Apr May Jun Posts 5 6 3 8 Total Reach 11,590 14,896 1,297 6,626 Total Engagement 2,831 1,021 45 491 Page Followers 2,623 2,631 2,635 2,644 New Page Followers 20 8 4 9 * Reach refers to the number of unique people to have seen a post's content. ** Engagement refers to interactions with a post, such as post clicks, Likes, Comments or Shares. 5 Most Popular City Facebook Pages (By % of population) – San Bernardino County % of Pop. 1) Twentynine Palms 31.31% 2) Apple Valley 26.21% 3) Yucca Valley 25.28% 4) Grand Terrace 20.87% 5) Hesperia 16.43% 2,540 2,541 2,560 2,583 2,601 2,603 2,623 2,631 2,635 2,644 2,300 2,550 FACEBOOK PAGE FOLLOWERS 21 E.3.a Packet Pg. 53 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Twitter Jul Aug Sep Oct Nov Dec Tweets 0 0 0 0 0 0 Impressions 740 1,085 475 328 328 236 Followers 334 333 334 340 340 340 New Followers 3 -1 1 1 1 0 Twitter Jan Feb Mar Apr May Jun Tweets 3 2 1 3 Impressions 499 1,184 456 860 Followers 343 343 343 342 New Followers 3 0 0 -1 YouTube Jul Aug Sep Oct Nov Dec Video Uploads 2 2 2 2 1 1 Video Views 88 86 56 60 62 37 Subscribers 171 171 171 172 172 173 Change in Subscribers -1 0 0 1 0 1 YouTube Jan Feb Mar Apr May Jun Video Uploads 2 2 2 2 Video Views 92 58 83 67 Subscribers 173 173 173 175 Change in Subscribers 0 0 0 2 *** Impressions refers to the number of times a tweet has been seen. 334 333 334 339 340 340 343 343 343 342 300 325 350 375 400 TWITTER PAGE FOLLOWERS 22 E.3.a Packet Pg. 54 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) City News Jul Aug Sep Oct Nov Dec Articles 6 1 1 0 3 2 1/2-Page Ad 0 0 0 0 1 0 1/4-Page Ad 1 1 1 0 0 0 City News Jan Feb Mar Apr May Jun Articles 2 2 5 3 1/2-Page Ad 0 0 0 0 1/4-Page Ad 1 2 7 5 AM 1640 Jul Aug Sep Oct Nov Dec Advertisement of City Events 0 0 0 4 1 0 AM 1640 Jan Feb Mar Apr May Jun Advertisement of City Events 0 1 1 1 Burrtec Newsletter Jul Aug Sep Oct Nov Dec Bi-Monthly Newsletter 1 0 1 0 1 0 Burrtec Newsletter Jan Feb Mar Apr May Jun Bi-Monthly Newsletter 1 0 1 0 23 E.3.a Packet Pg. 55 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) &LW\RI*UDQG7HUUDFH 3ODQQLQJDQG'HYHORSPHQW6HUYLFHV'HSDUWPHQW 3ODQQLQJ 'HYHORSPHQW x /DQG8VH3ODQQLQJ x 3ODQQLQJ&RPPLVVLRQ x %XLOGLQJ 6DIHW\ x &RGH(QIRUFHPHQW x (QIRUFHPHQW3URJUDP 24 E.3.a Packet Pg. 56 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) City of Grand Terrace Planning and Development Services Department . DATE: June 13, 2022 TO: Konrad Bolowich, City Manager City Manager’s Office FROM: Luis Gardea, Building Official Planning and Development Services Department SUBJECT: APRIL 2022 PLANNING AND DEVELOPMENT SERVICES MONTHLY REPORT This monthly report is presented to the City Manager to keep him informed of the activities within the Planning and Development Services Department, comprised of Planning, Building and Safety, Code Enforcement, and Animal Control. OUR MISSION To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of a fiscally responsible government. OUR VISION Grand Terrace is an exceptionally safe and well managed City, known for its natural beauty and recreational opportunities; a vibrant and diverse local economy; a place where residents enjoy an outstanding quality of life that fosters pride and an engaged community, encouraging families to come and remain for generations. BUILDING AND SAFETY DIVISION Building and Safety and Planning Core Services ➢ Permit New Businesses ➢ Permit Alterations to Existing Uses ➢ Zoning Code & General Plan Administration ➢ RDA Dissolution ➢ Planning Commission ➢ Building Permit Issuance ➢ Building Plans Review & Inspections 25 E.3.a Packet Pg. 57 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Page 2 of 6 The Building and Safety Division is budgeted for one full time Permit Technician and one full time Building Official. These two positions constitute up to 240 monthly service hours. Additionally, the Department budgets for plan checking and inspection services through a contract with Willdan Engineering. Inspection services are conducted on-call as needed by staff. The cost of these services is offset through the collection of fees and deposits. Activity Summary for Building and Safety Building Permit Activity includes 26 permits issued in April. Year to date a total of 325 permits have been issued with a total revenue of $115,119.86. In addition, a total number of 80 customers were assisted at the Building & Safety counter for the month of April. Monthly Revenue Year to Date Revenue $8,859.38 $115,119.86 Permits Issued Permits issued in April include, HVAC replacements, re-roofs, block wall, and PV solar. For the month of April, a precise grading and trash enclosure permit were issued for Terrace Plaza located at 22200 Barton Road for a multitenant shopping center. Additionally, a tenant improvement permit was issued for a new Aibeto’s restaurant located at 22045 Barton Rd. Permits that are currently in construction include 11731 Terrace Avenue which consists of installing underground electrical for future lighting and site improvements for a proposed trailer yard and community garden. Permit Activity -April 2022 Applications recv'd (35)Permits issued (26) Permits final (30)Business Occupancies (3) Expired Permits (5) Permit Activity -Year to Date Applications recv'd (359)Permits issued (325) Permits final (194)Business Occupancies (13) Expired Permits (80) 26 E.3.a Packet Pg. 58 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Page 3 of 6 * Residential Alteration / Repair consists of: Remodels, Room Additions, Stucco / Siding Work, Interior Demolition / Construction of Walls, Windows, Garage Doors. * Residential Alteration / Repair consists of: Remodels, Room Additions, Stucco / Siding Work, Interior Demolition / Construction of Walls, Windows, Garage Doors. Residential Permits Issued-April 2022 (N) SFR (0)Commericial New (1)Commericial TI (1)SF Remodel (1) Block Wall (1)Reroofs (8)Water Heater / Plumbing (2)HVAC Mechanical (1) Solar (2)Panel Upgrades / Electrical (2)Patio Covers (3)Res. Alteration / Addition (4) Residential Permits Issued-Year to Date FY 2021-2022 SFR New (0)Block Walls / Retaining Walls (18)Reroofs (49) Water Heater / Plumbing (15)HVAC Mechanical (43)Solar (92) Panel Upgrades / Electrical (26)Patio Covers (13)Residential Alteration / Repair (47) Pools/Spa (7)Grading (2) 27 E.3.a Packet Pg. 59 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Page 4 of 6 Inspections A total of 106 inspections were conducted in April, with 39 of them being Final inspections. Commercial Permits Issued -Year to Date FY 2021-22 Commercial Tenant Improvement (3)Signs (4) Electrical (2)Demolition (1) Grading (2)New Commerical (0) 0 100 200 300 400 500 600 700 BUILDING ELECTRICAL MECHANICAL PLUMBING DEMOLITION TOTAL NUMBER OF INSPECTIONS CONDUCTED July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June 28 E.3.a Packet Pg. 60 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Page 5 of 6 Major Projects Under Construction Major projects under construction include a tenant improvement for an adult day care “St. Christopher Adult Day Care Center” located at 22400 Barton Rd. Project Description/Location Status Anel Aguayo – 12040 La Cadena Dr. 12040 La Cadena Dr. – Precise grading for new single-family residence Drywall inspection complete – under construction Frank Randall 23400 Westwood St. 23400 Westwood St. – Precise grading & new single-family residence Under Construction – Drywall completed Edward Giroux – 21891 Vivienda Ave. 21891 Vivienda Ave. – Construction of a new classic car storage, 3 – car garage, swimming pool, and block wall Under Construction – Footings completed Edna Medrano 22400 Barton Rd. 22400 Barton Rd. – Tenant improvement for an adult day care center Under Construction – Plumbing inspected Terrace Plaza 22200 22200 Barton Rd. – Foundation Only Permit for a new multi-tenant building Under Construction Aibeto’s Mexicn Food 22045 Barton Rd. 22045 Barton Rd. Tenant improvements for restaurant. Under Construction Plan Checking Activity For April 2022, a total number of fourteen (14) plans were submitted for review and re- submittal. Plans submitted include PV solar, a patio cover, and a tenant improvement for accessibility upgrades at CVS Pharmacy. A tenant improvement for a new boba shop located at 22419 Rd. was submitted. Project Description/Location Status Bickel Group – 22200 Barton Rd. 22200 Barton Rd. –(N) 5,342 sq. ft. multitenant building – Terrace Plaza In Plan Check – Plans approved Wilden Pump Co. 22069 Van Buren St. 22069 Van Buren St. – New tarmac building addition In Plan Check – Plans approved Robert Morton – 22045 Barton Rd. 22045 Barton Rd. – Tenant improvement for Aibeto’s Mexican Food In Plan Check – Plans approved CVS Pharmacy – 12071 Mt. Vernon Ave. 12071 Mt. Vernon Ave. – Tenant improvement for accessibility upgrades at CVS Pharmacy In Plan Check – 1st submittal received Randall Jepson – 12210 Michigan St. Suite A 12210 Michigan St. – Tenant improvement for beauty salon In Plan Check – Plans approved Johnny Morris 22419 Barton Rd. 22419 Barton Rd. – Tenant improvements for boba shop. In Plan Check – 1st corrections issued. 29 E.3.a Packet Pg. 61 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Page 6 of 6 Public Works Encroachment Permits Five (5) Public Works/Encroachment Permit applications were taken in for the month of April. Four (4) permits were issued for the month, which includes applications that were received in the previous month. 0 10 20 30 40 50 60 70 SoCal Gas Edison Optimum AT&T Other Total Encroachment Permits Issued July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June 30 E.3.a Packet Pg. 62 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services ANIMAL CONTROL AND CODE ENFORCEMENT DIVISION Core Services ➢ Zoning & Municipal Code Enforcement ➢ Animal Control Services ➢ Street Sweeping Traffic Enforcement ➢ Tow vehicles after 72-hours have elapsed ➢ Remove graffiti ➢ Business Licenses The Division is budgeted for one full time Code Enforcement Officer, Animal Control Specialist, and a Department Secretary. On-call coverage is provided to manage after hour emergency animal control calls. The city is divided into seven zones, including commercial centers, and the zones are inspected on a continual rotating basis over a two-week period. A set route is driven each day in addition to the zones. The route includes Mount Vernon Avenue, Main Street, Michigan Street, Barton Road, Preston Street, Palm Avenue, Observation Drive, and Van Buren Street. Activity Summary for Code Enforcement Code Enforcement had 245 cases carried over from the previous month, 38 new cases opened, and 155 cases were closed in April. The chart below demonstrates a breakdown of Code cases by detailing how many cases were carried over from the previous month, opened, closed, and still being addressed. 31 E.3.a Packet Pg. 63 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services The following table shows the number of inspections conducted, the number of citations, and corrective notices issued. *The number of corrections issued does not include vehicle related complaints, illegal dumping referred to Burrtec, or homelessness on public property referred Sheriff’s Department. 76 77 78 79 80 88 85 64 110 348 331 245 41 42 43 44 45 44 40 48 33 315 231 38 33 34 35 36 37 68 25 50 50 75 173 155 84 85 86 87 88 85 64 110 348 331 245 130 MAY'21 JUN'21 JUL'21 AUG'21 SEP'21 OCT'21 NOV'21 DEC'21 JAN'22 FEB'22 MAR'22 APR'22 2021-2022 CODE CASE Number of Cases Carried Over Number of Cases Opened Number of Cases Closed Number of Cases In Process Citations May'21 Jun'21 Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 Number of Inspections Conducted 136 40 73 64 64 100 105 90 93 137 198 220 Number of Notice of Corrections Issued 13 20 33 20 24 27 47 32 26 45 16 20 Number of Notice of Violations Issued 10 3 12 9 8 11 11 13 19 281 264 56 Number of Citations Issued 14 5 4 4 6 8 14 11 27 27 16 48 32 E.3.a Packet Pg. 64 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Weekend Code Enforcement Activities The Weekend Animal Control/Code Enforcement Specialist patrols the weekends and conducts zone inspections and scheduled re-inspections. Weekend code enforcement also handles code violations such as unpermitted yard sales, open house signs, and parking violations. The table below demonstrates weekend code enforcement activities by type for this fiscal year. Graffiti/Vandalism/Illegal Dumping: There were two cases of illegal dumping and two cases of graffiti reported in April; all cases have been resolved. 6 7 6 1 4 5 13 4 13 2 2 25 0 36 25 7 20 17 14 5 1 3 1 19 24 21 11 2 19 12 10 45 16 38 10745213242222 37 26 12 0 11 16 22 8 52 15 18 13 19 0 11 0 0 0 0 0 0 0 0 0 29 46 23 21 14 22 26 5 2 4 1 0 0 0 0 10 20 30 40 50 60 May'21 Jun'21 July'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 Weekend Code Enforcement Graffiti Yard Sale with out permit Open house and other signs Illegal Dumping Follow-up inspections Parking violations Other Public Nuisance Unpermimitted Construction 33 E.3.a Packet Pg. 65 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Parking Citations: In March , 16 vehicle related citations were issued. There were no citations issued for street sweeping enforcement. Street Sweeping in residential areas occurs on the first, second, and third Thursdays of each month. As of June 4, 2020, Code Enforcement resumed issuing street sweeping citations for vehicles parked on the street during street sweeping hours which was suspended due to COVID-19. 283 182 266 61 94 155 62 79 22 0 0 0# o f C i t a t i o n s Street Sweeping Citations Street Sweeping 34 E.3.a Packet Pg. 66 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Other parking citations include expired registration, parking on unpaved surfaces, and commercial vehicles in residential areas. Parking citations are issued by Code Enforcement Staff, as well as Sheriff Deputies. May'21 Jun'21 Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 72 Hour Parking Warning/Cite 10 8 14 5 20 14 9 3 3 4 1 1 Vehicles on Unpaved Surface 0 0 0 11 13 0 0 0 0 0 0 0 Recreational Vehicle Violations 2 1 1 1 3 2 4 3 1 2 3 1 Commercial Vehicle Violations 1 1 7 1 6 8 4 2 0 1 4 3 Vehicles Blocking Sidewalk/Driveway 0 2 4 6 13 17 1 0 0 1 5 0 Expired Registration/Missing plates or tabs 11 6 10 2 10 4 6 1 0 4 0 0 Other Parking Violations 20 7 13 19 30 21 13 0 2 4 2 2 Parking in Handicap Zone 0 2 3 3 5 2 1 0 3 0 1 0 0 5 10 15 20 25 30 35 Parking Citations 35 E.3.a Packet Pg. 67 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Non-Owner Occupied/Rental Property Program There are approximately 351 properties in the Program (number is subject to change as properties get sold or becomes owner occupied) consisting of both single-family units and multiple family units (i.e., apartments, duplexes, triplexes, and quadruplexes). In January, the Rental Inspection invoices were mailed. In April the total amount received for Rental Inspection fees was $1,755.40. Business Licenses For the month of February, our Code Enforcement department reviewed the accounts for business licenses that were expired. In April we received a sum of $517.63 for past due business licenses. This is a direct result of our Code Enforcement department implementing and following up on the business license. Animal Control Services With the implementation of Animal Control Services, the city has instituted the practice of first making every effort to return stray dogs to its owner, by checking it for tags or microchip. If the owner cannot be identified, the city will place a photograph of the impounded animal on the City’s Facebook page so that owners can reclaim their pet. Animal Control is also working to identify animals via Facebook who have been sent to the animal shelter and have since been returned to their owner so their status can be updated for the public. If the dog is unlicensed the owner will be given a citation, but the fine is dismissed if the dog is licensed within 7 days. 36 E.3.a Packet Pg. 68 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Riverside County Department of Animal Services stats: Animal Control Sheltering Services May '21 Jun '21 Jul '21 Aug '21 Sep '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 Animal Intakes Strays 4 10 6 2 5 2 3 10 4 2 32 7 Stray Dead 3 5 15 4 5 6 3 4 2 1 32 1 Owner Surrender 1 1 0 0 0 0 0 1 1 11 1 1 Other 0 1 0 0 0 1 0 0 0 1 15 2 Total 8 17 21 6 10 9 6 15 7 15 80 11 Animal Disposition Adopted 2 1 1 1 1 2 2 0 6 1 14 3 Returned to Owner 0 3 1 0 3 1 0 1 1 1 2 1 Euthanized 1 3 5 0 0 1 0 0 1 1 1 4 Other 2 0 1 0 0 1 2 0 1 0 1 1 Total 5 7 8 1 3 5 4 1 9 3 18 9 The following stats are from Grand Terrace Animal Control: Animal Control Officer Investigations May '21 Jun '21 Jul '21 Aug '21 Sep '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22 Barking Complaints 2 0 1 0 0 1 2 0 0 0 3 0 Unlicensed Dogs 7 0 0 0 0 0 82 0 0 0 0 0 Loose Dogs 4 9 2 3 7 6 10 7 6 2 4 3 Loose Dogs Returned to Owner 2 0 2 0 0 7 0 0 1 2 0 2 Animal Welfare Check 1 0 8 0 3 2 0 5 0 7 0 2 Dead Animals 3 16 8 4 7 5 2 6 6 4 12 6 Bites 0 1 1 0 0 1 2 1 0 0 0 0 Other (unfounded, wildlife, etc.) 6 10 6 2 4 2 0 5 1 1 2 5 37 E.3.a Packet Pg. 69 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services 0 10 20 30 40 50 60 70 80 90 MAY '21 JUN '21 JUL '21 AUG '21 SEP '21 OCT '21 NOV '21 DEC '21 JAN '22 FEB '22 MAR '22 APR '22 Animal Control Investigations Barking Complaints Unlicensed Dogs Loose Dogs Loose Dogs Returned to Owner Animal Welfare Check Dead Animals 38 E.3.a Packet Pg. 70 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services Dog Licensing Revenue In the beginning of April 2021, Animal Control began canvassing properties with outstanding dog licenses and leaving a door hanger with renewal information to ensure we have the most accurate count of dogs in our system. Often individuals move away from the City, and we are not notified and annually those properties are issues renewal notices as typical protocol. During this time there was an influx of individuals renewing their dog licenses and licensing new dogs. The door hanger indicated they had a month and half to renew the license, or they may risk receiving a citation. The deadline was extended from February 12th to April 1st due to COVID related issues. 0 $754.00 $298.00 $817.00 $784.00 $784.00 $901.00 $2,355.00 $1,356.50 $1,610.00 $2,218.31 $1,660.50 $1,169.50 0 500 1000 1500 2000 2500 May'21 Jun'21 Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 Dog License Revenue (Over the Counter) 39 E.3.a Packet Pg. 71 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services $-$-$- $88.00 $15.00 $274.00 $180.00 $208.00 $335.00 $299.00 $296.00 $294.00 $- $50.00 $100.00 $150.00 $200.00 $250.00 $300.00 $350.00 $400.00 May'21 June'21 Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 Dog License Revenue (Online) $754.00 $298.00 $817.00 $872.00 $446.00 $1,175.00 $2,535.00 $1,564.50 $1,945.00 $2,517.31 $1,956.50 $1,463.50 $- $500.00 $1,000.00 $1,500.00 $2,000.00 $2,500.00 $3,000.00 May'21 June'21 July'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22 Apr'22 Combined Dog License Revenue 40 E.3.a Packet Pg. 72 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Planning and Development Services 41 E.3.a Packet Pg. 73 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Sheriff’s Contract •Law Enforcement Services 42 E.3.a Packet Pg. 74 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) San Bernardino County Sheriff’s Department Services March 2022 April 2022 Officer Contact and Calls 1,285 1,148 Monthly Citation Data March 2022 April 2022 Stops 306 267 Citations Issued 117 156 Calls to Dispatch March 2022 April 2022 Emergency 3 4 Priority 1 140 132 Priority 2 56 64 Priority 3 155 158 Priority 4 77 75 Totals 431 433 vankagans@gmail.com Emergency – 911 calls (evaluated for substance). Priority 1 – Currently active, 15 minutes or less. Priority 3 – Calls over 30 minutes ago. Priority 2 – Just occurred, 15 minutes or more. Priority 4 – Incident calls, counter calls. Note: As dispatch receives more information during the call, the level of priority can change to a higher or lower level priority. 3 4 140 132 56 64 155 158 77 75 0 50 100 150 200 250 300 350 400 450 500 March April Calls to Dispatch Emergency Priority 1 Priority 2 Priority 3 Priority 4 43 E.3.a Packet Pg. 75 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) Citizens on Patrol (COP) - Weekly Hours for March 2020: Mar. 9th Mar. 16th Total Hours 8 2 10 * - On March 17th all patrol activities for the Citizens on Patrol were suspended. 44 E.3.a Packet Pg. 76 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) San Bernardino County Fire 45 E.3.a Packet Pg. 77 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) City of Grand Terrace Fire Department Incidents 04/01/22 – 04/30/22 Call Type Number of Calls Commercial Alarm 3 Fire – Improvement 2 Fire – Refuse 1 Fire – Residential Structure 1 Medical Aid 118 Move Up (Cover Engine into FS#23) 3 Public Service 4 Residential Alarm 4 Traffic Collision with Extrication 1 Traffic Collision with Injuries 1 Traffic Collision Unknown Injuries 2 Traffic Collision Unknown Injuries (Freeway) 2 Total Calls 142 46 E.3.a Packet Pg. 78 At t a c h m e n t : C i t y M a n a g e r A p i l 2 0 2 2 R e p o r t [ F i n a l ] ( D e p a r t m e n t M o n t h l y A c t i v i t y R e p o r t - A p r i l 2 0 2 2 ) AGENDA REPORT MEETING DATE: June 28, 2022 Council Item TITLE: Adopt the Revised Special Event Ordinance to the Grand Terrace Municipal Code (GTMC) 8.50 PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: That the City Council Adopt the Revised Special Event Ordinance to the Grand Terrace Municipal Code (GTMC) 8.50 2030 VISION STATEMENT: This staff report supports Goal #4, Develop and Implement Successful Partnerships by Working Collaboratively with Community Groups. BACKGROUND: On June 14, 2022, the City Council rescinded the existing Grand Terrace Municipal Code (GTMC) 8.50 Special Events and introduced an ordinance for a first reading with a revised version of the GTMC Section 8.50. The revised ordinance addresses a broader spectrum of events providing appropriate guidance for the different types of events while preserving First Amendment rights. No changes have been made to the proposed ordinance since its introduction. Accordingly, the ordinance is now ready for second reading and adoption by the City Council. ENVIRONMENTAL IMPACT This project is exempt from CEQA. FISCAL IMPACT: None. ATTACHMENTS: • Ordinance No. XXX - Comprehensive Special events Ordinance Update rev 6-8 (PDF) APPROVALS: Konrad Bolowich Completed 06/22/2022 9:16 AM E.4 Packet Pg. 79 City Manager Completed 06/22/2022 10:39 AM City Council Pending 06/28/2022 6:00 PM E.4 Packet Pg. 80 01247.0001/786274.13 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, REPEALING AND REPLACING CHAPTER 8.50 (SPECIAL EVENTS) OF TITLE 8 (HEALTH & SAFETY) OF THE GRAND TERRACE MUNICIPAL CODE, WHICH UPDATES THE CITY’S SPECIAL EVENT REGULATIONS. WHEREAS, the City Council of the City of Grand Terrace recognizes the substantial community benefit that may result from community events, which can provide cultural enrichment and economic vitality and can enhance community identity. WHEREAS, the sale of food and/or beverages at community events can impact public health, safety, and welfare of event patrons, residents and other visitors, such as impacts relating to traffic, food safety, sanitation, and overcrowding. WHEREAS, the City Council wishes to update the City’s coordinated processes for managing community events to ensure the public health, safety, and welfare of event patrons, residents and other visitors, and to provide for fees and procedures required to administer the permit process. WHEREAS, with this ordinance, the City Council does not intend to change the rules for ordinary use of public property. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES ORDAIN AS FOLLOWS: SECTION 1. The facts set forth in the Recitals of this Ordinance are true and correct, and incorporated herein. SECTION 2. Chapter 8.50 (Special Events) of Title 5 (Health & Safety) is repealed and replaced as follows: “Chapter 8.50 - SPECIAL EVENTS 8.50.010 Title. This chapter shall be known as the Special Events Ordinance. 8.50.020 Purpose. A. It is the purpose of this chapter to provide for the issuance of Special Event Permits to regulate large, organized events on the public streets and public property of the City; on private property to the extent that such events have a significant impact on neighboring properties and/or public property; and to provide for fees, charges, and procedures required to administer the permit process. This ordinance shall not be interpreted to require picnics and impromptu E.4.a Packet Pg. 81 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 2 of 17 gatherings at public parks or private properties to obtain a permit. Large groups who wish to reserve specific areas in public parks may do so through such City department as may be designated by the City Manager of the City. B. It is further the purpose of this chapter to provide for expedited procedures for Free Speech Special Events, while also providing for the protection and preservation of public spaces and public resources. 8.50.030 Definitions. The following words and phrases when used in this chapter shall mean: “Amplified sound” means music or speech projected or transmitted by electronic equipment, including, but not limited to, an amplifier, loudspeakers, or similar devices. “Annual event” means an event recurring each year at approximately the same date. “Applicant” means the event sponsor or the sponsor’s authorized agent who completes the permit application and acts as primary contact for a Special Event. “City-partnered event” means an event organized and run by a non-profit organization in conjunction with the City, where the City provides sponsorship or partnership and retains control over how the event(s) is run and/or publicized. “City-run event” means an event organized and run by the City. “City Manager” means the City Manager of the City of Grand Terrace, and shall include his/her designee. “Director” means the Director of the City’s Community Development Department or such other person as the City Manager may designate. “Event Participants” means persons in attendance at an event, including spectators, vendors, event staff, City staff, and all others present for the purpose of the event. Any persons in attendance at an event for the purpose of protesting the event shall not be considered Event Participants. “Fair/carnival” means a traveling enterprise offering amusements, or a gathering of buyers and sellers, held at a temporary location for one or more days. E.4.a Packet Pg. 82 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 3 of 17 “Free speech” means speech and expressive conduct protected by the First Amendment of the United States Constitution or by Article 1, Section 2 of the California Constitution. “Free Speech Special Event” means an event at which the expression of free speech rights is the principal purpose of the event, and that satisfies one or more of the following: (i) the event is covered by Section 8.50.080; (ii) the event requires the use of amplified sound; (iii) the event may interfere with traffic or obstruct ingress or egress to a property or structure; or (iv) the event will use any structure or equipment that requires a health & safety inspection. Examples of Free Speech Special Events include, but are not limited to: a protest, speech, or rally that requires traffic control; individual street performers. “Indigent person” means: (1) a person who is receiving benefits pursuant to the Supplemental Security Income (SSI) and State Supplemental Payments (SSP) programs (Sections 12200 to 12205, inclusive, of the California Welfare and Institutions Code), the California Work Opportunity and Responsibility to Kids Act (CalWORKs) program (Chapter 2, commencing with Section 11200 of Part 3 of Division 9 of the California Welfare and Institutions Code), the Food Stamp program (7 U.S.C. Section 2011 et seq.) or Section 17000 of the Welfare and Institutions Code; (2) a person whose monthly income is 125% or less of the current monthly poverty line annually established by the Secretary of Health and Human Services pursuant to the Omnibus Budget Reconciliation Act of 1981, as amended. “Mixed Free Speech Special Event“ means an event that has both a free speech component and a commercial component, or that is open to the public for entertainment or cultural purposes; Mixed Free Speech Special Events are not dependent on current events and require time and logistical support to organize and include, but are not limited to: (i) a circus; (ii) outdoor theater; (iii) an art fair. “Parade” means a public procession, typically celebrating a special day or event and including marching bands and floats, in the public right-of-way. “Race/run” means an organized competitive event upon a public street, sidewalk, walkway, or other publicly owned property including City parks, in which persons participate by walking, running, riding a bicycle or horse, or operating a wheelchair. “Recurring event” means an event that will occur repeatedly within a one- year period. “Special Event” includes, but is not limited to, any of the following one-time or recurring or annual events: (i) A commercial event (e.g., a fair, carnival, farmers market). E.4.a Packet Pg. 83 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 4 of 17 (ii) A spectator sport (e.g., volleyball, hockey, basketball, baseball, soccer). (iii) Any organized athletic event (e.g., races, runs, soccer games, baseball games). (iv) A community event (e.g., park clean-up, a hike, or nature walk). (iv) Parades. (v) Any Mixed Free Speech Special Event. (vi) Any event covered by Section 8.50.040. (vii) Any event that: (a) will use amplified sound, (b) may interfere with traffic, ingress, or egress; or (c) will use structures or equipment that require health & safety inspections. “Sponsor” means the person or group responsible for or organizing the Special Event. “Spontaneous Event” means a Free Speech Event occasioned by news or events coming into public knowledge 4 business days or fewer prior to such event. “Transportation management/parking plan” means a plan developed by the special event sponsor to identify and mitigate traffic/parking impacts associated with a special event. 8.50.040 Special Event Permit required. A. Special Events 1. Special Events on public property or private property require a Special Event Permit, pursuant to Sections 8.50.060 and 8.50.070, when any of the following applies: a. where the anticipated attendance exceeds the occupancy limits (e.g., as determined by a certificate of occupancy) of a public property. The occupancy limits of City-owned properties shall be available for review at City Hall; b. where the Special Event has public health and safety impacts (including, but not limited to, impacts relating to health and sanitation) that E.4.a Packet Pg. 84 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 5 of 17 are greater than what the underlying infrastructure of the subject site can accommodate; c. where the underlying approved or conditionally approved use for a property does not include Special Events; d. The proposed Special Event requires any permit to be issued by any other governmental agency, such as a building permit, fire safety permit, or health permit; e. where the proposed Special Event may impede, obstruct, impair, or interfere with the free use of any public street, highway, alley, sidewalk, or other public right-of-way, or with ingress or egress to the same; or f. where the proposed Special Event requires the use of any public street, highway, alley, sidewalk, or other public right-of-way. 2. No food or beverages may be sold at any Special Event except in the following circumstances: a. nonprofit or educational events; b. an event in which food is an integral part of the event, such as food fairs, farmers’ markets, a fairs or carnivals, or other similar events; c. the location of the Special Event provides an area for the sale of food, beverages, and/or merchandise, such as a concession stand, snack bar, food court, or other similar areas; d. where Vehicle Code Section 22455 is applicable; e. where Chapter 9.05 is applicable; or f. when sale of food and/or beverages is otherwise permitted pursuant to applicable law. B. Free Speech Special Events on public property require a Free Speech Special Event Permit pursuant to and shall be subject to the alternative permitting provisions of Section 8.50.080. E.4.a Packet Pg. 85 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 6 of 17 8.50.050 Exemptions and waivers. A. City-run events and City-partnered events do not require Special Event Permits. B. Permits for nonprofit or educational events, may be subject to reduced or waived fees, as determined by City Council resolution. 8.50.060 Special Event Permit application. A. Special Event Permit Application Required. An application must be submitted to the City by the Special Event Sponsor along with an application fee and an administrative review fee (if applicable) in the amounts established by City Council resolution. An Indigent Person who is unable to pay the application fee due to such indigence may not be required to pay the fee in accordance with administrative regulations or guidelines adopted pursuant to this chapter. Application for indigent status shall be made at the time of submission of the permit application and shall be accompanied by such relevant information and documentation as may, in the opinion of the Director, be reasonably necessary to verify such status. B. Application Form and Contents. An application for a Special Event Permit shall be on a City form and signed by the Applicant who is at least 18 years of age, and contain all of the following information: 1. The name, address, email address, mailing address, and daytime telephone number of each of the following: a. The Applicant and the Sponsor, if different from the Applicant (also include evening telephone number), b. An alternate person to contact if an emergency arises and the Applicant is unavailable (also include evening telephone number), c. If applicable: the president, chair or other head of the sponsor organization; nonprofit documentation (also include written documentation of the authority under which the Applicant is applying on behalf of the organization), and E.4.a Packet Pg. 86 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 7 of 17 d. The person who will be present and in charge of the event on the day of the event and their contact information during the event. 2. The requested event date, including the dates and times for set-up and clean-up, and the starting and finishing time of the event. Also include two alternative dates. 3. The estimated number of Event Participants and the estimated number of Special Event employees and/or volunteers 4. A site plan identifying the proposed event and staging locations, including specific street closures or street routes, if any, or park area requested and parking areas. 5. A site map showing emergency exit routes. 6. Any City equipment or personnel requested. 7. A description of the planned event. 8. A description of how the event will be promoted and any prior history of promotions for similar events, including references. 9. The proposed distribution or, if permitted pursuant to Section 8.50.040(A)(2), sale of any food or beverage, including alcoholic beverages. If alcoholic beverages are included, provide all applicable licenses and registrations allowing the sale of alcoholic beverages at the event. All such distribution or sale of any food or beverages shall comply with all applicable law. 10. The type and estimated number of vehicles, animals, or structures that will be used. 11. A description and location of any sound amplification equipment proposed to be used. 12. The location of electrical generators, stages, tents, canopies, cooking apparatus and lights. 13. The location of mechanical rides, jump houses, or other amusement attractions. 14. The location of any water, first aid, or comfort station(s) to be provided. E.4.a Packet Pg. 87 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 8 of 17 15. For each application for a Parade: (i) the time when the units of the Parade will begin to assemble, (ii) the proposed assembly point for the Parade, (iii) the proposed Parade route, (iv) the interval space to be maintained between units of the Parade, and (v) the number, type and size of floats or other vehicles. 16. For a commercial or Mixed Free Speech event, a layout showing the locations of booths, stages, audience, tables and chairs, food court, portable bathrooms, emergency exits (as applicable). 17. A preliminary security plan and any monitors to be employed during the event. 18. Any other information which the Director reasonably requires to evaluate the particular Special Event Permit application. In addition, the Director can waive application requirements that the Director determines are inapplicable. 19. A parking and transportation plan as deemed necessary by the Director, based on the anticipated number of Event Participants and the availability of parking at the proposed location. 20. For Recurring Events, the Applicant shall also include the following information: i. The frequency of the proposed recurring event, including if available a schedule with proposed dates and times. Proposed schedules may be submitted as soon as available, but no later than 15 days prior to the start of the events. ii. The minimum and maximum number of anticipated Event Participants for each event. 21. If a Special Event primarily caters to children, then the Director may require that the Applicant conduct and submit background checks for all Special Event staff. 8.50.070 Processing of Special Event Permit applications. Special Event Permits will be processed based on the following: A. Submission timelines. E.4.a Packet Pg. 88 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 9 of 17 1. Special Events. An application for a Special Event Permit shall be filed at least 30 days prior to the date of a proposed Special Event with anticipated attendance of 50 or fewer Event Participants, and at least 60 days prior to the date of a proposed Special Event with anticipated attendance of greater than 50 Event Participants. 2. Hikes and nature walks. Notwithstanding anything to the contrary in Subsection A.1, above, Special Event Permit applications for hikes and nature walks in any of the City’s trails may be submitted 15 days prior to the proposed event. 3. Recurring Special Event Permits. Notwithstanding anything to the contrary in Subsection A.1, above, a Special Event Permit application for recurring events must be submitted no later than 60 days prior to the start of the Recurring Special Events. These permits shall only authorize the same type of recurring event during the year, and is not intended to be a blanket event permit for the Applicant or Sponsor. 4. Requested dates and times at specific locations on public property shall be reserved on a first come first served basis. If the date or time requested is not available, the Director shall inform the Applicant within 5 business days and shall suggest alternative dates and times. Applications for events occurring more than 12 months from the date of the application shall not be accepted. B. The Director shall meet with the Applicant or Sponsor to review the application to determine whether additional information is required and discuss applicable conditions and potential fees and costs. In reviewing the application, the Director shall consult with such other City departments and outside local agencies as the Director determines to be appropriate. C. The Director shall make a decision on the application, set any conditions and fees, and issue the permit. For Special Events with anticipated attendance of at least 50 Event Participants, a decision on the Special Event Permit shall be made by the Director no later than 15 calendar days following the submission of a completed application. For Special Events with anticipated attendance over 50 Event Participants, a decision on the Special Event Permit shall be made by the Director no later than 30 days following submission of a completed application. E.4.a Packet Pg. 89 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 10 of 17 D. In deciding whether to approve, or approve with conditions, the Director shall make each of the following findings: 1. The Special Event, as proposed, does not pose a threat to health and safety. 2. The use of sheriff and/or fire resources to support the event will not deny reasonable sheriff and fire protection to the City. 3. The Special Event will not adversely interfere with previously City-approved and/or scheduled construction, maintenance or other activities. 4. The Special Event will not adversely impact the health or safety of surrounding properties; or the impacts can be significantly mitigated by way of reasonable permit conditions. Adverse impacts include, but are not limited to, noise, traffic, parking, trash, and damage to public property, infrastructure, or facilities. 5. There will be negligible adverse impact on the condition of parks and open space areas; proposed mitigation by the event Sponsor will be considered. 6. The Special Event shall not adversely impede the public’s reasonable use of City streets, sidewalks, walkways, trails, and City parks. E. Conditions. 1. The Director may include in a Special Event Permit reasonable terms or conditions as to the time, place, and manner of the Special Event, notice requirements, compliance with health and sanitary regulations, public health and safety requirements, emergency services requirements, security payment of the Special Event Permit fee, reimbursement of direct expenses incurred by the City, and a clean-up/damage deposit. 2. Additional permits or security fees may be required by other state or federal agencies or federal, state, or local laws. 3. In order to accommodate other concurrent events, the rights of abutting owners and the needs of the public to use streets or parks, the conditions may include, but not be limited to, reasonable adjustments in the date, time, E.4.a Packet Pg. 90 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 11 of 17 route or location of the proposed event; accommodations of pedestrian or vehicular traffic using the street; accommodations of public access to City parks and the City’s trails; and limitations on the duration of the event. 4. If applicable, conditions relating to the use of amplified sound to minimize the interference with the quiet enjoyment of neighboring properties. 5. If applicable, conditions relating to maintaining the public property in the same or better condition after the Special Event. Conditions may address collection of trash, access to rest facilities, prohibiting access to protected habitat, etc. 6. The Director may require a Special Event Permit Sponsor a deposit in an amount determined by the City to reimburse the City for the cost of repairs needed to public property because of the Special Event. F. Recurring Events. The Director may require a trial period before approving all planned events. In no case shall recurring events be authorized for more than one year at the time of application. G. An application for a Special Event Permit can be denied on any of the following grounds: 1. The Applicant is unable to comply with the reasonable terms or conditions as to the time, place, and manner of the Special Event, health and sanitary regulations, public health and safety regulations, and emergency services requirements that would be imposed upon the Special Event. 2. Applicant’s provision of false or misleading information; 3. Conflict with other planned events in the area; 4. Previous Special Event Permit violations by the Applicant or Sponsor; 5. Inability to make all the findings for approval set forth above; or 6. The public property location requested is not eligible for Special Events. E.4.a Packet Pg. 91 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 12 of 17 H. CEQA Review. The Director will designate a staff person knowledgeable in the California Environmental Quality Act to perform an environmental review of the proposed special event. I. Applicant’s Acceptance. The Applicant shall notify the Director in writing of their acceptance forthwith after written notice of the decision. Once the Applicant submits a written acceptance of the Director’s decision in a form required by the Director, the Special Event Permit shall be approved. 8.50.080 Free Speech Special Event Permit application. A. The following application procedures apply to a Free Speech Special Event only. Parades and Mixed Free Speech Events shall be subject to the Special Event Permit provisions of Section 8.50.040 through 8.50.070. B. A Free Speech Special Event requires a Free Speech Special Event Permit when: 1. The proposed event may impede, obstruct, impair or interfere with the free use of any public street, highway, alley, sidewalk, or other public right-of-way, or with ingress or egress to the same; or 2. The proposed event requires the use of any public street, highway, alley, sidewalk, or other public right-of-way; or 3. The anticipated attendance exceeds the occupancy limits (e.g., as determined by a certificate of occupancy) of a public property. The occupancy of City-owned properties can be reviewed at City Hall; or 4. The proposed event requires any permit to be issued by any other governmental agency, such as a building permit, fire safety permit, or health permit; or 5. Notwithstanding anything to the contrary in this chapter, Special Event Permits and Free Speech Special Event Permits are not required for Spontaneous Events. The Sponsor of a Spontaneous Event shall provide the Director with advance notification to the extent practicable, as well as the following information: the type of event; the date, time, and duration of the proposed event; the location of the event and/or route, including which public spaces or public right-of-ways may be obstructed or closed; and anticipated participation. E.4.a Packet Pg. 92 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 13 of 17 C. A Free Speech Special Event application shall include the following information: 1. A description of the proposed event; 2. The street or other public property and the specific area or areas thereof to be utilized in connection with the proposed event; 3. The manner in which the public property will be utilized; 4. The date or dates and the specific times of the proposed event, including set-up and tear-down; 5. The name, address and telephone number of the sponsor of the proposed event; 6. The name, address and telephone number of the person or persons to be contacted regarding the application or the permit; 7. Anticipated participation, including any animals that may be in attendance. D. Timing of application. The Applicant shall file a complete application for a Free Speech Special Event Permit with the Director as soon as possible, but no later than 5 business days before the proposed event. The Director shall review the Free Speech Special Event Permit application to establish reasonable conditions to address health and safety only, notification of the decision, and appeal from the decision. E. Director’s Decision. The Director shall render a decision in accordance with the findings set forth herein within two business days following the filing of the completed application. 1. The event, as proposed, will not pose a threat to health and safety; 2. The use of sheriff and/or fire protection resources to support the event will not deny reasonable sheriff and fire protection to the City; 3. The event will not interfere with previously City-approved and/or scheduled construction or maintenance, or with a previously permitted special event; 4. No consideration was given to the message of the event, E.4.a Packet Pg. 93 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 14 of 17 the content of speech, the identity or associational relationships of the Applicant, or to any assumptions or predictions as to the amount of hostility which may be aroused in the public by the content of the speech or message conveyed by the event. 5. The event is in compliance with the attendance and other limitations as provided in Section 8.50.040. 6. There will be minimal or no adverse impact on the condition of parks and open space areas, proposed measures to mitigate any adverse impacts shall be taken into consideration. F. Notification of Decision. The Director shall notify the Applicant in writing (and orally, if possible) of the decision, including a statement of the reasons for any conditions or the grounds for a denial. If a change in the time or location of the proposed event would allow approval of the application, the Director shall propose an alternative to the Applicant. Any conditions shall be directed G.. Free Speech Special Events will not be required to comply with any of the following as a condition of receiving a permit: 1. Any fee or charge required by the City. 2. Any insurance or proof of insurance covering the Free Speech Event, its organizers, or Event Participants, including the requirements of Section 8.50.150. 3. Any requirement of indemnification or agreement to hold harmless, including the requirements of Section 8.50.140. I. Appeal. Any decision relating to the issuance of a Free Speech Special Events Permit may be appealed to the City Manager. The appeal must be in writing and must be submitted to the City Manager’s Office within two business days of the Director’s decision. The City Manager shall decide the appeal within one business day. The City Manager’s decision shall be final. J. Judicial Review. Decisions regarding a Free Speech Special Event Permit are eligible for expedited judicial review pursuant to Section 1094.8 of the Code of Civil Procedure. E.4.a Packet Pg. 94 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 15 of 17 8.50.090 Administrative Regulations. The City Manager may establish administrative policies and procedures for the purpose of implementing this code as necessary. 8.50.100 Special Event Permit fees and charges. A. Special Event Permit fees and charges are established by resolution of the City Council. The application fee must be submitted with the application. Other costs for City services shall be invoiced to the Applicant no later than 10 calendar days after the expiration date of the permit. The Applicant shall pay all fees and charges within 30 calendar days of invoice otherwise late fees shall apply. B. In addition to the payment of any applicable non-refundable permit application fees, all Applicants or sponsors shall be responsible for paying for all City departmental, San Bernardino County Sheriff, or San Bernardino County Fire Protection District service charges incurred in connection with or due to the permittee’s activities under the permit. 8.50.110 Revocation. A Special Event Permit can be revoked by the Director for any of the following reasons: A. Failure to comply with any permitting requirements or conditions of approval; B. Knowingly providing false, misleading, or fraudulent information; C. Failing to pay required fees, charges, or deposits; D. Failing to agree to the indemnification provisions or failing to provide proof of insurance to the extent required; or E. The event materially changes after a permit has been approved. F. If the Applicant/Sponsor violates any applicable law in the preparation for or operation of the Special Event. 8.50.120 Enforcement. A. Violations of this chapter shall be charged to the Applicant and/or Sponsor of the event pursuant to Chapters 1.06 and 1.16 of this Code, as well as any other remedies available to the City E.4.a Packet Pg. 95 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 16 of 17 at law or equity. B. In addition to the penalties provided for in Chapters 1.06 and 1.16 of this Code, Sponsors, Applicants, or Event Participants of an event may be cited and/or ejected from the public property for violations of this chapter after notice and an opportunity to cure the violation. C. Notwithstanding any approval given pursuant to this chapter, any county sheriff, fire official or building official is granted the authority to stop or prevent any immediate threat to the public health or safety, including the right to issue a cease and desist order for all or any part of the Special Event or any Special Event. 8.50.130 Appeal. A. A decision regarding a Special Event Permit application may be appealed in writing to the City Manager within 10 calendar days of the Director’s decision for Special Events. B. The City Manager shall make a decision on the appeal within 10 calendar days of receipt of the appeal for Special Events. C. The decision of the City Manager shall be final, and is subject to judicial review pursuant to Section 1094.5 and 1094.6 of the Code of Civil Procedure. 8.50.140 Hold harmless. As a condition to the issuance of any permit under this chapter, the Applicant/Sponsor shall agree to defend, indemnify, and hold harmless the City, its elected and appointed officials, employees and agents, against losses and liabilities incurred from the conduct of the permittee, or its officers, employees, and agents, or claims or liabilities caused by, or arising out of any activities authorized by any such permit. 8.50.150 Insurance requirements for special events. The Applicant shall provide general liability insurance in the amount deemed reasonable by the city, naming the City, its elected and appointed officials, employees, and agents, as an additional insured. Limits of coverage will be determined by the City’s Risk Manager at the time of application. Certificates of insurance are to be submitted to the City for approval 14 calendar days prior to the day of the event. Acceptability of insurance is subject to approval by the City’s Risk Manager. This requirement does not apply to Free Speech Events.” E.4.a Packet Pg. 96 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) Page 17 of 17 SECTION 3. SEVERABILITY. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this Ordinance or the application thereof to any person or place, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remainder of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 4. EFFECTIVE DATE. This ordinance shall be effective on the thirtieth (30th) day after the day of its adoption. SECTION 5. CERTIFICATION. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be posted in the manner required by law. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the ____ day of _______, 2022. _____________________________ Darcy McNaboe Mayor ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney E.4.a Packet Pg. 97 At t a c h m e n t : O r d i n a n c e N o . X X X - C o m p r e h e n s i v e S p e c i a l e v e n t s O r d i n a n c e U p d a t e r e v 6 - 8 ( 2 N d R e a d i n g S p e c i a l E v e n t s O r d i n a n c e - R e v i s i o n ) AGENDA REPORT MEETING DATE: June 28, 2022 Council Item TITLE: Commitment of Fund Balance for Fiscal Year 2021-2022 in Accordance with Governmental Accounting Standards Board Statement No. 54 and City Reserves Policy No. 3.06 PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, COMITTING FUND BALANCE FOR FISCAL YEAR 2021-22 IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT 54 AND CITY RESERVES POLICY NO. 3.06 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensuring Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations and providing City Council scheduled updates on the City’s fiscal condition. BACKGROUND: In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions. Statement 54 is designed to modify fund balance reporting in governmental funds with the intention to improve financial reporting by providing fund balance categories and classifications that will be more easily understood by the users of our annual financial statements. Fund balance refers to the difference between assets (what the City owns) and liabilities (what the City owes) in the governmental balance sheet. Users of governmental financial statements examine fund balance information to identify the available resources of the governmental entity. Statement 54 sets criteria for fund balance reporting that more clearly defines categories of fund balance. With more concisely defined categories, the nature and extent of the constraints placed on a government’s fund balance are clearer and more transparent. DISCUSSION: E.5 Packet Pg. 98 FUND BALANCE To establish uniformity, GASB Statement 54 created five new classifications of fund balance. Each classification depicts the relative strength of the spending constraint for which the resources can be used. From most to least constrained, the classifications of fund balance are: 1. Non-spendable: Nonspendable fund balance includes amounts that are not in a spendable form (inventory, for example) or are required to be maintained intact (the principal of an endowment fund, or deposits for example). 2. Restricted: Restricted fund balance includes amounts constrained to specific purposes by their providers (such as grant providers, bondholders, and higher levels of government) through constitutional provisions or enabling legislation (balances in special revenue funds are restricted fund balances since their amounts are restricted for a specific purpose). 3. Committed: Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision-making authority, in this case, City Council. Commitments may be changed or lifted only by City Council through the same formal action that imposed the constraint originally. As approved by City Council in the previous year, the City’s General Fund committed fund balances consisted of: a) Contingencies; b) Community Projects/Services; c) Public Safety; and d) Equipment Replacement (Fixed Asset Fund). 4. Assigned: Assigned fund balance comprises amounts intended to be used by the governing body (City Council) for specific purposes. The intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In this case, staff is requesting that the City Council delegate to the City Manager and/or the Finance Director the authority to assign fund balance. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted or committed. This indicates that resources in other governmental funds are intended to be used for the purpose of that fund. 5. Unassigned: Unassigned fund balance is the residual classification for the general fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. If another governmental fund has a fund balance deficit, then it will be reported as a negative amount in the unassigned classification in that fund. Positive unassigned amounts will be reported only in the general fund. E.5 Packet Pg. 99 SUB-FUNDS City staff established several funds for various programs and activities that staff believed should be recorded and tracked separately from the General Fund for ease of reporting to management and City Council. With the implementation of Statement 54, these funds would be combined with the General Fund’s (Fund 10) fund balance for reporting purposes in the annual financial statements according to the GASB policy; however, City staff will continue to provide internal separate fund reports to City Council for transparency. The funds that will be reported as the collective “General Fund” in the City’s annual financial statements include: 1. General Fund (Fund 10) 2. Community Benefits Fund (Fund 61) 3. Light Up Grand Terrace Fund (Fund 62) 4. GT Illegal Fireworks Enforcement Fund (Fund 63) 5. Public Safety Fund (Fund 64) 6. Community Day Fund (69) 7. Equipment Replacement Reserve Fund (Fund 70) As stated in the Generally Accepted Accounting Principles (GAAP), the General Fund (for purposes of the City’s financial statements) which combines all seven (7) funds listed above into one fund, should maintain a reserve equal to two (2) months of operating revenues (estimates based on budgeted revenues). The table below shows the collective fund balance of the General Fund and as it relates to the GAAP minimum balance requirement as of June 30, 2022: Table 1 General Fund Comm. Benefits Fund Light Up Grand Terrace Fund Illegal Fireworks Fund Public Safety Fund Community Day Fund Eqpt Replc Reserve TOTAL (10) (61) (62) (63) (64) (69) (70) Fund balance, 7-1-2020 $3,558,613 $33,610 $(529) $224 $22,047 $5 $1,020 $3,614,990 Actual Revenues (2020-21) $6,418,968 $83 $535 $0 $52 $0 $4 $6,419,642 Actual Expense (2019-20) ($6,302,591) ($1,385) ($5,915) $0 ($1) $0 $0 ($6,309,892) Fund balance, 6-30- 2021 $3,674,990 $32,308 ($5,909) $224 $22,098 $5 $1,024 $3,724,740 Estimated Revenues $9,289,170 $20,000 $13,885 $0 $105 $0 $0 $9,323,160 E.5 Packet Pg. 100 (2021-22) Estimated Expense (2021-22) ($6,721,437) ($3,685) ($15,850) $0 $0 ($20,000) $0 ($6,760,972) Fund balance, 6-30- 2022 $6,242,723 $48,623 ($7,874) $224 $22,203 ($19,995) $1,024 $6,286,928 Operating Reserve (2 months of revenues) $1,548,195 $3,333 $2,314 $0 $18 $0 $0 $1,553,860 It is good to note that the collective Fund Balance includes any unspent 2011 Excess Bond Proceeds transferred from the Successor Agency as approved by the Department of Finance. As stated earlier, the City uses its budgeted revenues to calculate the minimum fund requirements. The FY2021-22 estimated revenues for the collective General Fund are as follows: Table 2 General Fund Comm. Benefits Fund Light Up Grand Terrace Fund Illegal Fireworks Fund Public Safety Fund Community Day Fund Eqpt Replc Reserve TOTAL (10) (61) (62) (63) (64) (69) (70) Estimated Revenues (2021-22) $9,289,170 $20,000 $13,885 $0 $105 $0 $0 $9,323,160 Operating Reserve (2 months revenues) $1,548,195 $3,333 $2,314 $0 $18 $0 $0 $1,553,860 The formula for maintaining a reserve equal to two (2) months of operating revenues is: FY2021-22 Estimated revenues: $9,323,160 --------------- X 2 = $1,553,860 (16.7%) 12 E.5 Packet Pg. 101 Staff is recommending that City Council adopt the attached resolution committing the General Fund’s fund balance for Fiscal Year 2021-22 in the following categories shown below: Table 3 City of Grand Terrace Fund Balance Designation: FY2021-22 Nonspendable: Prepaid Costs $0 Land Held for Resale $0 Restricted for: Community Development Projects $0 (e.g. Parks Fund, Facilities Fund) Public Safety (e.g. SLESF Fund) $0 Public Works (e.g. Street Fund, facilities projects) $0 Infrastructure Projects $1,057,737 Committed to: Committed to Contingencies (General Fund: #10) $1,553,860 Committed to Community Services • Community Benefits Fund: #61 $3,400 • Light Up Grand Terrace Fund: #62 $2,400 Committed to Equipment Replacement (Fixed Assets Fund:#70) $801,603 Assigned Assigned for continuing appropriations (commitments, projects approved in current and prior years that must be carried forward into the new fiscal year) $50,000 Assigned for future debt obligations $94,000 Unassigned $2,723,928 Total Fund Balance, GENERAL FUND $6,286,928 FISCAL IMPACT: There is no fiscal impact to approving the resolution, designating Fund balance and E.5 Packet Pg. 102 implementing Statement 54. Total fund balance reported with or without Statement 54 would be the same; only the components of fund balance will be altered. ATTACHMENTS: • Resolution 2022-XX committing fund balance for FY2021-22 06-28-22 (DOCX) APPROVALS: Finance Completed 06/17/2022 11:53 AM Terry Shea Completed 06/17/2022 11:53 AM City Manager Completed 06/17/2022 1:57 PM City Council Pending 06/28/2022 6:00 PM E.5 Packet Pg. 103 Page 1 of 3 RESOLUTION NO. 2022-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, COMITTING FUND BALANCE FOR FISCAL YEAR 2021-22 IN ACCORDANCE WITH GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT 54 AND CITY RESERVES POLICY NO. 3.06 Recitals WHEREAS, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, establishing a hierarchy clarifying the constraints that govern how a government entity can use amounts reported as fund balance; and WHEREAS, GASB 54 allows the governing body to formalize the commitment of unassigned fund balance to a specified purpose; and WHEREAS, the City Council of the City of Grand Terrace is the highest level of decision-making authority for the City of Grand Terrace, and has the authority to commit, assign, or evaluate existing fund balance classifications and identify the intended uses of committed or assigned funds; and WHEREAS, the committed fund balance classification reflects amounts subject to internal restraints self-imposed by the City Council; and WHEREAS, once the committed fund balance restraints are imposed, it requires the constraint to be removed by the City Council prior to redirecting the funds for other purposes; and WHEREAS, the City Council has determined it will commit its General Fund reserves for Fiscal Years 2021-22 as shown in the table below. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. The City Council finds that the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution. 2. The City Council hereby commits the following fund balance as shown in the table below for fiscal year 2021-2022 in accordance with Governmental Accounting Standards Board Statement 54 and City Reserves Policy No. 3.06: E.5.a Packet Pg. 104 At t a c h m e n t : R e s o l u t i o n 2 0 2 2 - X X c o m m i t t i n g f u n d b a l a n c e f o r F Y 2 0 2 1 - 2 2 0 6 - 2 8 - 2 2 ( F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) Page 2 of 3 City of Grand Terrace Fund Balance Designation: FY2021-22 Nonspendable: Prepaid Costs $0 Land Held for Resale $665,000 Restricted for: Community Development Projects $0 (e.g. Parks Fund, Facilities Fund) Public Safety (e.g. SLESF Fund) $0 Public Works (e.g. Street Fund, facilities projects) $0 Infrastructure Projects $1,092,979 Committed to: Committed to Contingencies $1,046,078 Committed to Community Services · Community Benefits Fund: #61 $1,680 · Light Up Grand Terrace Fund: #62 $920 Assigned Assigned for continuing appropriations (commitments, projects approved in current and prior years that must be carried forward into the new fiscal year) $50,000 Assigned for future debt obligations $94,000 Unassigned $753,867 Total Fund Balance, GENERAL FUND $3,704,524 3. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. 4. The City Clerk shall certify to the adoption of this Resolution. E.5.a Packet Pg. 105 At t a c h m e n t : R e s o l u t i o n 2 0 2 2 - X X c o m m i t t i n g f u n d b a l a n c e f o r F Y 2 0 2 1 - 2 2 0 6 - 2 8 - 2 2 ( F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) Page 3 of 3 5. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 28th day of June, 2022. Darcy McNaboe Mayor ATTEST: Debra Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra City Attorney E.5.a Packet Pg. 106 At t a c h m e n t : R e s o l u t i o n 2 0 2 2 - X X c o m m i t t i n g f u n d b a l a n c e f o r F Y 2 0 2 1 - 2 2 0 6 - 2 8 - 2 2 ( F u n d B a l a n c e D e s i g n a t i o n - I m p l e m e n t a t i o n o f G A S B 5 4 ) AGENDA REPORT MEETING DATE: June 28, 2022 Council Item TITLE: Funding Agreement Between Omnitrans and the City of Grand Terrace for Measure "I" Funds for the City's Senior Transportation Program; PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: 1. Approve the Two-Year Contract with Omnitrans for the following: a. A not to exceed amount of $173,703 in operating expenses, with an annual not to exceed amount of $86,965 in Fiscal Year 2022-23, and $86,738 in Fiscal 2023-24; and b. A not to exceed amount of $46,800 in capital expenses, with an annual not to exceed amount of $46,800 in Fiscal Year 2022-23, 2. Direct the City Manager to execute the agreement subject to the City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports Goal #4 "Develop and Implement Successful Partnerships" by working with a regional agency to secure funding for programs and projects that benefit seniors in our community. BACKGROUND: On December 16, 2015, the City of Grand Terrace entered into a partnership with Valley Transportation Services (VTrans) (Attachment 1). VTrans was a 501(c)3 nonprofit organization created and designated in October 2010 by SANBAG as the Consolidated Transportation Services Agency (CTSA) eligible to receive two percent (2%) of the Measure I Senior/Disabled funds collected in the Valley portion of San Bernardino (Attachment 1). VTrans’ mission was to improve mobility for seniors, persons with disabilities and persons of low income. The VTrans Board approved a three-year funding agreement in the amount of $132,879 for operating expenses and leased the City a wheelchair equipped vehicle for $1.00. On August 1, 2016 VTrans assigned and transferred all rights and obligation of its agreement with the City of Grand Terrace to Omnitrans (a Joint Powers Authority and a consolidated Transportation Services Agency), which was designated as the new CTSA for San Bernardino Valley (Attachment 2). VTrans also converted the lease of the wheelchair equipped vehicle to a purchase agreement and the vehicle is now owned by E.6 Packet Pg. 107 the City of Grand Terrace. On December 11, 2018, the City and Omnitrans entered into a Two-year Funding Agreement (Dec-2018 through Dec-2020) (Attachment 3), wherein Omnitrans, through the use of Measure I Senior/Disabled funds, funded 72% of the City’s Senior Transportation Program’s annual operating expenses with the City’s General Fund contributing $10,000 and the City’s Air Quality Management District (AQMD) Fund contributing $5,000 annually. On January 1, 2021, the City and Omnitrans entered into a Two-year Funding Agreement (Jan-2021 through Dec-2022) (Attachment 4), wherein Omnitrans, through the use of Measure I Senior/Disabled funds, funded 80% of the City’s Senior Transportation Program’s annual operating expenses with the City’s General Fund contributing $8,770 and the City’s Air Quality Management District (AQMD) Fund contributing $5,000 annually. DISCUSSION: Omnitrans’ Measure I Regional Mobility Partnership Program (RMP) provides funding to support the development and sustainability of programs that provide transportation services to seniors and individuals with disabilities throughout the San Bernardino Valley region. Funding for the RMP is distributed to eligible agencies through an annual, competitive Measure I Call for Projects. In April-2022, Omnitrans distributed a Measure I RMP Call for Projects to agencies with transportation programs that are designed to improve mobility and/or the coordination of transportation services for seniors and/or persons with disabilities in the San Bernardino Valley region. Applicants may include local government authorities, human and social services agencies, tribal governments, private non-profit and charitable organizations. This program has switch from Calendar year to fiscal year to align with local governmental fiscal years. The City submitted a proposal and received funding for the following (detailed in Exhibit B of the proposed Funding Agreement). As with the prior funding agreement, the RMP guidelines require a City match, 10% for capital expenses and 20% for operational expenses: Table 1 CAPITAL EXPENSES EXPENSES Jul '22 – Jun '23 Jul '23 – Jun '24 TOTAL A. Electric Vehicle Charging Stations 52,000.00 - 52,000.00 E.6 Packet Pg. 108 CAPITAL EXPENSES EXPENSES Jul '22 – Jun '23 Jul '23 – Jun '24 TOTAL TOTAL PROJECT EXPENSES 52,000.00 0.00 52,000.00 REVENUES City Match (Cash) A. General Fund (10%) 5,200.00 - 5,200.00 Total Cash Match 5,200.00 0.00 5,200.00 Measure I Request 46,800.00 - 46,800.00 TOTAL REVENUES 52,000.00 0.00 52,000.00 Calculated Measure I portion 90.00% 90.00% 90.00% Table 2 OPERATIONAL EXPENSES EXPENSES Jul '22 – Jun '23 Jul '23 – Jun '24 TOTAL A. One (1) Bus Driver position: 40- hr week 65,520.00 68,800.00 134,320.00 C. Program Support 15,000.00 15,000.00 30,000.00 D. Fuel, cost to charge vehicles, supplies, etc. 24,300.00 20,800.00 45,100.00 E. Overhead (3%) 3,145.00 3,138.00 6,283.00 TOTAL PROJECT EXPENSES 107,965.00 107,738.00 215,703.00 REVENUES City Match (Cash) A. General Fund 5,500.00 5,500.00 11,000.00 B. Donations, AQMD Fund 3,000.00 3,000.00 6,000.00 Total Cash Match 8,500.00 8,500.00 17,000.00 City Match (In-Kind) A. Program Support 12,500.00 12,500.00 25,000.00 Total In-Kind Match 12,500.00 12,500.00 25,000.00 Measure I Request 86,965.00 86,738.00 173,703.00 TOTAL REVENUES 107,965.00 107,738.00 215,703.00 Calculated Measure I portion 80.00% 80.00% 80.00% Prior to the pandemic, the City’s transportation program has allowed senior residents of Grand Terrace an opportunity to take advantage of a full spectrum of services and activities, including arts and crafts, bingo, card games, educational classes, guitar E.6 Packet Pg. 109 lessons, health screenings, support groups and excursions. The Center also organizes a wide variety of social gatherings including a monthly general meeting with entertainment on the second Friday of every month at 10:00 am. Since the pandemic, the City’s transportation program has allowed senior residents to travel to the local grocery stores and restaurants within the City. The City has since added trips to the Veterans Administration hospital. In complying with the Center for Disease Control (CDC) guidelines of maintaining a six- foot distance between passengers, the City’s Senior Bus (Silver Liner) has had to make numerous trips to one location to accommodate all passengers. The increased hours of the existing Bus Driver position will allow for additional trips, and the addition of a Part- time Bus Driver will allow for weekend trips if warranted and can serve as a back-up for the full-time position during leaves such as vacation, sick, etc. The Center is open from 8:00 a.m. to 3:00 p.m., Monday through Friday. The Silver Liner can be credited for increasing attendance at the Center as the additional excursions offered by the Silver Liner increases the mobility of seniors living in the senior housing development (Blue Mountain Villas) attached to the Grand Terrace Senior Center (Attachment IV). FISCAL IMPACT Funding for this program has already been included in the fiscal year 2022-23 budget in Fund 65. Funding for FY2023-24 Senior Transportation Program will be included in the proposed FY2023-24 Proposed Budget. ATTACHMENTS: • 1_Funding Agreement VTrans 12-16-2015 (PDF) • 2_Assignment of funding Agreement w- Vtrans to Omnitrans (PDF) • 3_Funding Agreeement Omnitrans-2018-50 12-11-2018 (PDF) • 4_Funding Agreement City of Grand Terrace 2021-1 (PDF) • Grand Terrace FY23-FY24 Agreement (DOCX) APPROVALS: Konrad Bolowich Completed 06/17/2022 1:17 PM Finance Completed 06/22/2022 11:45 AM City Manager Completed 06/22/2022 11:48 AM City Council Pending 06/28/2022 6:00 PM E.6 Packet Pg. 110 FUNDING AGREEMENT BETWEEN VALLEY TRANSPORTATION SERVICES AND CITY OF GRAND TERRACE THIS AGREEMENT, is made and entered into this 161h day of December, 2015 at Upland, California, by and between Valley Transportation Services, a non-profit corporation and Consolidated Transportation Services Agency (hereinafter "VT rans"), and City of Grand Terrace, a municipal corporation (hereinafter "CITY"). RECITALS WHEREAS, in its capacity as the Consolidated Transportation Services Agency ("CTSA") for the San Bernardino Valley, VTrans has the ability to provide local funds to other entities for projects that improve mobility for persons with disabilities and senior citizens; and WHEREAS, CITY would like to operate a curb-to-curb shuttle service for the transportation of seniors to and from the Grand Terrace Senior Center and various other destinations ("Project"); and WHEREAS, VTrans desires to provide funds to CITY, on a reimbursable basis, for the Project; and WHEREAS, the parties wish to enter into this Funding Agreement ("Agreement") to document the terms and conditions ofVTrans' funding of the Project. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Project Description: CITY will provide all Project services, as set forth in CITY's Proposal, attached hereto as Exhibit A. Any proposed amendment to Exhibit A must be agreed to in advance by the parties pursuant to a written amendment. 2. Time of Performance: This Agreement will commence on December 1, 2015. This Agreement shall expire on November 30, 2018, unless otherwise terminated as provided for in this Agreement or extended by written agreement between the parties. 3. Funding Amount: The amount to be paid to CITY under this Agreement will not exceed One-Hundred Thirty-Two Thousand, Eight Hundred Seventy-Nine Dollars ($132,879), unless agreed to in advance by the parties pursuant to a written amendment. In no instance will VTrans be liable for any payments or costs for work in excess of this amount, nor for any unauthorized or ineligible costs. Eligible costs shall include expenditures consistent with Measure I. E.6.a Packet Pg. 111 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 4. Payment: a. On a monthly basis, CITY will provide VTrans with an invoice for reimbursement pursuant to Subsections 4.b. and 4.c., below. b. Payments for operating expenses to CITY hereunder will be made in arrears. CITY will submit a detailed and properly documented invoice for reimbursement not more often than monthly, which invoice will include: (i) a description of the work performed; and (ii) a detailed accounting of costs incurred. c. Payments for capital expenses, including but not limited to vehicles, may be requested in advance, upon presentation of a valid vendor invoice for such purchases. d. CITY will be notified within ten ( 10) business days following receipt of its invoice by VTrans of any circumstances or data in CITY's invoice that would cause withholding of approval and subsequent payment. CITY' s invoice will include documentation of reimbursable expenses and billed items sufficient for VTrans, in its opinion, to substantiate billings. VTrans reserves the right to withhold payment of disputed amounts. e. At no time shall payments from VTrans be used to supplant or replace funding currently provided to CITY by any funding source for CITY's existing Shuttle Service. CITY shall notify VT rans of any potential loss of funding for the existing Shuttle Service within ten (10) business days of learning of the funding loss. 5. Progress Reports: CITY will provide VTrans with monthly progress reports on the Project, as set forth in Exhibit A. In cooperation with VTrans, CITY shall develop national ridership data reporting mechanisms sufficient for reporting as part of the NTD (National Transit Database) reporting system, and shall provide such data to VT rans. 6. Advisory Committee Participation: CITY shall attend and participate in advisory committee meetings, as mutually agreed upon by VTrans. 7. Compliance with Laws: CITY will comply with all applicable federal, state, and local laws, codes, ordinances, regulations, orders, circulars, and directives, including, without limitation: (i) all regulatory requirements associated with the funding provided to CITY for this Project; (ii) all disability laws; and (iii) non-discrimination and equal opportunity laws. Any failure by CITY to comply with such laws may result in the termination of this Agreement or such other remedy as VTrans deems appropriate. 8. Independent Contractor: CITY, and the agents and employees of CITY, in the performance of this Agreement, will act as and be independent contractors, and not officers, employees, or agents ofVTrans. CITY, its officers, employees, agents, and contractors, if any, will have no power to bind or commit VTrans to any decision or course of action, and will not E.6.a Packet Pg. 112 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) represent to any person or business that they have such power. CITY has and will retain the right to exercise full control of the supervision of the Project, and over the employment, direction, compensation, and discharge of all persons assisting in the performance of the work funded by this Agreement. CITY will be solely responsible for all matters relating to the payment of its employees and contractors, including but not limited to, compliance with all laws, statutes, and regulations governing such matters. 9. Termination: a. VTrans may terminate this Agreement for cause by giving CITY a notice of default and intention to terminate the Agreement ("Termination Notice"). The notice will be deemed served and effective for all purposes on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to CITY at the address indicated in Section 20 below. b. Upon receipt of a Termination Notice, CITY shall have 30 days in which to cure the stated violation(s) and to provide to VTrans sufficient evidence that the violations have been cured. If CITY has not cured within 30 days of such notice, or has not provided sufficient evidence of such to VTrans, the Agreement shall be terminated, effective immediately. c. VTrans may also terminate this Agreement in the event of Measure I or federal grant funding shortfall, upon 15 days written notice. Such notice will be served and effective as set forth in Subsection 9.a., herein. d. VTrans may also terminate this Agreement in the event of a funding shortfall for CITY's existing Shuttle Service, or the failure to provide notice to VTrans of such funding shortfall, as required pursuant to section 4.e. In the event CITY fails to provide the notice required pursuant to section 4.e., VTrans is not required to give CITY an opportunity to cure such violation. e. If VT rans issues a Termination Notice or terminates this Agreement due to a funding shortfall, VTrans will reimburse CITY for work actually performed up to the effective date of the Termination Notice, subject to the limitations in Section 4, and less any compensation to VTrans for damages suffered as a result of CITY's failure to comply with the terms of this Agreement. f. CITY will have the right to terminate this Agreement in the event VTrans is unable to make required payments. In such event, CITY will provide VTrans with seven (7) days written notice of termination. The notice will be deemed served and effective on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to VTrans at the address indicated in Section 20. VTrans will make payment to CITY through the date of termination, subject to the provisions of Section 4 above, and less E.6.a Packet Pg. 113 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) any compensation to VT rans for damages suffered as a result of CITY' s failure to comply with the terms of this Agreement. 10. Assignment: The parties understand that VTrans entered into this Agreement based on the Project proposed by CITY. Therefore, without the prior express written consent of VTrans, this Agreement is not assignable by CITY either in whole or in part. 11. Binding Agreement: This Agreement will be binding on the parties hereto, their assigns, successors, administrators, executors, and other representatives. 12. Time: Time is of the essence in this Agreement and will follow the timeline set forth in Exhibit A, unless modified pursuant to Section 13. 13. Amendments: No alteration or variation of the terms of this Agreement will be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, will be binding on any of the parties hereto. 14. Contractors and Subcontractors: CITY will be fully responsible for all work performed by its contractors and subcontractors. VTrans reserves the right to review and approve any contract or agreement to be funded in whole or in part using funds provided under this Agreement in excess of $25,000. 15. Indemnity: CITY and VTrans are responsible for their own acts and omissions. Further, each party agrees to indemnify, defend, and hold harmless the other party, its governing body, officers, employees, and agents from and against any and all actions, claims, demands, losses, damages, liabilities, costs, and expenses, including reasonable attorney's fees and costs, resulting from the negligent acts or omissions or willful misconduct of the indemnifying party. The provisions of this Section will survive the expiration, termination, or assignment of this Agreement. 16. Insurance Requirements: CITY hereby warrants that it carries and shall maintain, in full force and effect during the full term of this Agreement and any extensions to this Agreement, the following described insurance coverage: E.6.a Packet Pg. 114 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) (1) (2) (3) POLICY MINIMUM LIMITS OF LIABILITY Workers' Compensation; Employer's Statutory requirements for Workers' Liability. Compensation; $1,000,000 Employer's Liability. Comprehensive Automobile: Bodily Injury/Property Damage $2,000,000 Insurance Services Office, form #CA each accident. 0001 covering Automobile Liability, code 1 (any auto). General Liability: Insurance Services $1,000,000 per occurrence. If Commercial Office Commercial General Liability General Liability Insurance or other form coverage (occurrence form #CG with a general aggregate limit, such limit shall 0001). apply separately to this Project or the general aggregate limit shall be twice the required occurrence limit. a. Deductibles and Self-insured Retentions: Any deductibles or self-insured retentions in excess of $5,000 must be declared to and approved by VTrans. b. Required Provisions: The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions: (1) For any claims related to this Agreement, CITY's insurance coverage shall be primary insurance as respects VTrans, its directors, officers, employees and agents. Any insurance or self-insurance maintained by VTrans, its directors, officers, employees or agents shall be in excess of CITY' s insurance and shall not contribute to it. (2) Any failure by CITY to comply with reporting or other provisions of the policies including breaches of warrants shall not affect coverage provided to VTrans, its directors, officers, employees or agents. (3) CITY's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. (4) Each insurance policy required by this Agreement shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior E.6.a Packet Pg. 115 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) written notice by certified mail, return receipt requested, has been given to VT rans. c. Acceptabilitv of Insurers: Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A: VII, unless otherwise approved by VTrans. d. Certificate of Insurance and Additional Insured Requirement: CITY shall furnish to VTrans an original Certificate of Insurance on a standard ACORD form, or other form acceptable to VTrans, substantiating the required coverages and limits set forth above and also containing the following: (1) Thirty (30) days prior written notice to VTrans of the cancellation, non- renewal, or reduction in coverage of any policy listed on the Certificate; and (2) The following statement with respect to the Commercial General Liability policy: "VTrans and its directors, officers, employees and agents, are made additional insureds, but only insofar as the operations under this Agreement are concerned." e. Certified Copies of Policies: Upon request by VTrans, CITY shall immediately furnish a complete copy of any policy required hereunder, including all endorsements, with said copy certified by the insurance company to be a true and correct copy of the original policy. f. CITY's Responsibility: Nothing herein shall be construed as limiting in any way the extent to which CITY may be held responsible for damages resulting from CITY's operations, acts, omissions, or negligence. Insurance coverage obtained in the minimum amounts specified above shall not relieve CITY of liability in excess of such minimum coverage, nor shall it preclude VT rans from taking other actions available to it under this Agreement or by law, including but not limited to, actions pursuant to CITY's indemnity obligations. 17. Audit: An independent auditor shall audit CITY's use of Project funds no less than annually. CITY agrees to supply VTrans with a copy of any audit of Project related activities performed. 18. Retention and Inspection of Records a. CITY, including any contractors or subcontractors, will retain all driver training records and vehicle maintenance and safety records. b. VTrans or its designee will have the right to review, obtain, copy, and audit all books, records, computer records, accounts, documentation and any other materials E.6.a Packet Pg. 116 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) pertaining to performance of this Agreement (collectively "Records"), including any Records in the possession of any contractors or subcontractors. CITY agrees to provide VTrans or its designee with any relevant information requested and will permit VTrans or its designees access to its premises, upon reasonable notice, during normal business hours, for the purpose of interviewing employees and inspecting and copying such Records for the purpose of determining compliance with any applicable federal and state laws and regulations. c. CITY further agrees to maintain all Project Records for a period of four (4) years after final payment under the Agreement or four (4) years from the conclusion or resolution of any and all audits or litigation relevant to this Agreement and any amendments, whichever is later. If so directed by VTrans upon expiration of this Agreement, CITY will cause all Records relevant to the Project to be delivered to VTrans as depository. 19. Signs: CITY will include the VTrans logo and/or Measure I signage ,~m Project related marketing materials and on vehicles operated with VTrans funding, including: a. Vehicles purchased or operated with Measure I funds shall display signs clearly visible to riders indicating the vehicle is funded in part through Measure I funding. b. Capital projects constructed by Entity using Measure I funds shall also have Measure I signage. f. Signage must conform with approved Measure I signage and be approved by VT rans. 20. Project Managers: VTrans' Project Manager for this Agreement is Beth Kranda, unless VTrans otherwise informs CITY. With the exception of notice of termination sent by certified mail pursuant to Section 9 above, any notice, report, or other communication required by this Agreement will be mailed by first-class mail to the VTrans Project Manager at the following address: Valley Transportation Services Chief Executive Officer 299 W. Foothill Blvd, Ste. 202 Upland, CA 91786 CITY's Project Manager for this Agreement is G. Harold Duffey, City Manager. With the exception of notice of termination sent by certified mail pursuant to Section 9 above, any notice, report, or other communication to CITY required by this Agreement will be mailed by first-class mail to: E.6.a Packet Pg. 117 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) G. Harold Duffey, City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 21. Waivers: No waiver of any breach of this Agreement will be held to be a waiver of any prior or subsequent breach. The failure of VTrans to enforce at any time the provisions of this Agreement or to require at any time performance by CITY of these provisions, will in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of VT rans to enforce these provisions. 22. Litigation: CITY will notify VTrans immediately of any claim or action undertaken by it or against it that affects or may affect this Agreement or VTrans, and will take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests ofVTrans. 23. Non-Liability of VTrans: VTrans shall not be liable to CITY or any third party for any claim for loss of profits or consequential damages. Further, VTrans shall not be liable to CITY or any third party for any loss, cost, claim or damage, either direct or consequential, allegedly arising from a delay in performance or failure to perform under this Agreement. 24. Costs and Attorneys' Fees: If either party commences any legal action against the other party arising out of this Agreement or the performance thereof, the prevailing party in such action may recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and reasonable attorneys' fees. 25. Governing Law and Choice of Forum: This Agreement will be administered and interpreted under California law as if written by both parties. Any litigation arising from this Agreement will be brought in the Superior Court of San Bernardino County. 26. Integration: This Agreement represents the entire understanding of VT rans and CITY as to those matters contained herein and supersedes all prior negotiations, representations, or agreements, both written and oral. This Agreement may not be modified or altered except in accordance with Section 13. 27. Severability: If any term or provision of this Agreement or the application thereof to any person or circumstance will, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is invalid or unenforceable, will not be affected thereby, and each term and provision of this Agreement will be valid and will be enforced to the fullest extent permitted by law, unless the exclusion of such term or provision, or the application of such term or provision, would result in such a material change so as to cause completion of the obligations contemplated herein to be unreasonable. E.6.a Packet Pg. 118 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 28. Headings: The headings of the various sections of this Agreement are intended solely for convenience of reference and are not intended to explain, modify, or place any interpretation upon any of the provisions of this Agreement. 29. Authority: Each person signing this Agreement on behalf of a party hereby certifies, represents, and warrants that he or she has the authority to bind that party to the terms and conditions of this Agreement. 30. Ownershio: Permission: VTrans represents and warrants that all materials used in the performance of the Project work, including, without limitation, all computer software materials and all written materials, are either produced and owned by CITY or that all required permissions and license agreements have been obtained and paid for by CITY. CITY will defend, indemnify and hold harmless VTrans and its directors, officers, employees, and agents from any claim, loss, damage, cost, liability, or expense to the extent of any violation or falsity of the foregoing representation and warranty. 31. Counterparts: This Agreement may be executed in multiple counterparts, each of which will constitute an original, and all of which taken together will constitute one and the same instrument. 32. Press Releases: CITY will obtain VTrans' prior written approval of any press releases, or other public outreach materials, that include any reference to VT rans or depiction of the VT rans logo. IN WITNESS WHEREOF, the PARTIES hereto have executed this Agreement, as of the date first appearing above. By: ~ Sam Spagno G. Harold Duffey, City Manager Valley Transportation Services Approved as to form: l . . ·fa~t1!w City of Grand Terrace Attorney E.6.a Packet Pg. 119 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) EXHIBIT A BACKGROUND The City of Grand Terrace Senior Center provides a full spectrum of services and activities, including: arts and crafts, bingo, card games, educational classes, guitar lessons, health screenings, support groups and excursions. The Center also has a wide variety of social gatherings including a monthly general meeting with entertainment on the second Friday of every month at lO:OOam. The Center is open from 8:00am to 3:00pm, Monday through Friday. The Family Services Association operates a senior nutrition program at the Senior Center by providing lunch on a daily basis from 11 :30am to 12:30pm at a cost of $3.00 (recommended donation) for seniors aged 60+ and $5 for those under 60 years old. The Senior Center and the senior nutrition program are underutilized and City Staff believe that the lack of transportation service to the Center is a significant contributing factor. PROJECT DESCRIPTION The City of Grand Terrace is proposing to lease a VT rans bus to provide a five (5) day per week Senior Transportation Program that will begin with daily rides to and from the Senior Center. The Center also coordinates an annual excursion trip for seniors to explore Southern California. The bus may be used for this service. The program could eventually expand to include other ride services, for example, rides to and from the grocery store or the doctor's office/Kaiser Permanente. Seniors will be allowed to purchase a weekly or monthly pass. The weekly pass will be $2.50 and will include 5 round trips to the Senior Center. A monthly pass will be $10.00 and include 20 round trips to the Senior Center. A major marketing effort the City would like to implement for the Senior Transportation Program is a vehicle wrap for the bus. The City understands that VTrans must first approve the wrap design, and in addition to the City of Grand Terrace logo the VTrans and Measure I logos will also need to be included. Year 1 Budget Salaries $49,478.00 Vehicle & Insurance $3,101.00 Fuel $3,000.00 Marketing & $3,100.00 Advertising Excursions/Misc. $1,200.00 Total $59,879.00 CITY RESPONSIBILITIES CITY will provide Project services, including but not limited to: 1. CITY will provide cub-to-curb shuttle services, as described above. 2. CITY will account for all funding received from VTrans in an agreed upon format. Monthly financial reports on the Project, including year-to-date expenses, will also be provided. E.6.a Packet Pg. 120 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 3. CITY will provide monthly progress reports on the Project, including but not limited to: monthly ridership numbers, trips provided, cost per trip, monthly expenses, project milestones, and/or any other data deemed mutually beneficial. 4. CITY will keep records of demographic information pertaining to disability, age and income, as applicable. PROJECT MILESTONES The City has never had a senior transportation program so it is difficult to project ridership, but City Staff projects an average of at least five (5) daily I (20) weekly riders as the program begins. The Senior Center currently has 160 members. The goal will be to increase the bus ridership numbers over the first year through marketing efforts and outreach. The projected launch date of this program is January 1, 2016. PERFORMANCE CRITERIA Project performance will be evaluated annually, or more frequently as determined by VTrans. If participation in the Project is significantly less than anticipated by VTrans and CITY, or if VT rans determines that the quality of performance by CITY is insufficient, as determined by VTrans, VT rans may modify this Exhibit A, or terminate this Agreement as provided in Section 9 herein. E.6.a Packet Pg. 121 At t a c h m e n t : 1 _ F u n d i n g A g r e e m e n t V T r a n s 1 2 - 1 6 - 2 0 1 5 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) E.6.b Packet Pg. 122 At t a c h m e n t : 2 _ A s s i g n m e n t o f f u n d i n g A g r e e m e n t w - V t r a n s t o O m n i t r a n s ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d E.6.b Packet Pg. 123 At t a c h m e n t : 2 _ A s s i g n m e n t o f f u n d i n g A g r e e m e n t w - V t r a n s t o O m n i t r a n s ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d E.6.b Packet Pg. 124 At t a c h m e n t : 2 _ A s s i g n m e n t o f f u n d i n g A g r e e m e n t w - V t r a n s t o O m n i t r a n s ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d FUNDING AGREEMENT BETWEEN OMNITRANS AND CITY OF GRAND TERRACE This Funding Agreement for Measure I funds ("Agreement") by and between the City of Grand Terrace, a municipal government and Omnitrans, a Joint Powers Authority and a Consolidated Transportation Services Agency("Omnitrans"), is entered into this_[_L_day of yilyiASA4_ , 2018. The City of Grand Terrace and Omnitrans are sometimes individually referred to as "Party" and collectively as "Parties." RECITALS WHEREAS, in its capacity as the Consolidated Transportation Services Agency CTSA") for the San Bernardino Valley, Omnitrans has the ability to provide Measure I funds to other entities for projects that improve mobility for persons with disabilities, senior citizens, and persons of low income; and WHEREAS, the City of Grand Terrace currently operates its Senior Transportation Program("Project") which provides weekday curb-to-curb transportation for seniors to and from the Grand Terrace Senior Center for lunch, social activities, and planned outings in the community; and WHEREAS, the City of Grand Terrace would like to continue operating its Senior Transportation Program; and WHEREAS, Omnitrans desires to provide operating assistance funds to the City of Grand Terrace, on a reimbursable basis, for the Project; and WHEREAS, the parties wish to enter into this Agreement to document the terms and conditions of Omnitrans funding of the Project. NOW, THEREFORE,THE PARTIES AGREE AS FOLLOWS: 1. Project Description: The City of Grand Terrace will continue to operate its curb-to-curb transportation program for seniors between their homes and the Grand Terrace Senior Center on weekdays. The service is branded the "Blue Mountain Silver-Liner" and is provided through a City owned 12-passenger bus, as set forth in the City of Grand Terrace's Project, attached hereto 1 E.6.c Packet Pg. 125 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 5. Progress Reports: In cooperation with Omnitrans, the City of Grand Terrace shall develop national ridership data reporting mechanisms sufficient for reporting as part of the NTD National Transit Database) reporting system, and shall provide such data to Omnitrans monthly. 6. Advisory Committee Participation: The City of Grand Terrace shall attend and participate in advisory committee meetings, as mutually agreed upon by Omnitrans and the San Bernardino County Transportation Authority. 7. Compliance with Laws: The City of Grand Terrace will comply with all applicable federal, state, and local laws, codes, ordinances, regulations, orders, circulars, and directives, including, without limitation: (i) all regulatory requirements associated with the funding provided to the City of Grand Terrace for this Project; (ii) all disability laws; and (iii) non- discrimination and equal opportunity laws. Any failure by the City of Grand Terrace to comply with such laws may result in the termination of this Agreement or such other remedy as Omnitrans deems appropriate. 8. Independent Contractor: The City of Grand Terrace, and the agents and employees of the City of Grand Terrace,in the performance of this Agreement, will act as and be independent contractors, and not officers, employees, or agents of Omnitrans. The City of Grand Terrace, its officers, employees, agents, and contractors, if any, will have no power to bind or commit Omnitrans to any decision or course of action, and will not represent to any person or business that they have such power. The City of Grand Terrace has and will retain the right to exercise full control of the supervision of the Project, and over the employment, direction, compensation, and discharge of all persons assisting in the performance of the work funded by this Agreement. The City of Grand Terrace will be solely responsible for all matters relating to the payment of its employees and contractors, including but not limited to, coripliance with all laws, statutes, and regulations governing such matters. 9. Termination: a. Omnitrans may terminate this Agreement for cause by giving the City of Grand Terrace a notice of default and intention to terminate the Agreement ("Termination Notice"). The notice will be deemed served and effective for all purposes on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to the City of Grand Terrace at the address indicated in Section 19 below. b. Upon receipt of a Termination Notice, the City of Grand Terrace shall have 30 days in which to cure the stated violation(s) and to provide to Omnitrans sufficient evidence that the violations have been cured. If the City of Grand Terrace has not 3 E.6.c Packet Pg. 126 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) cured within 30 days of such notice, or has not provided sufficient evidence of such to Omnitrans, the Agreement shall be terminated, effective immediately. c. Omnitrans may also terminate this Agreement in the event of Measure I or federal grant funding shortfall, upon 15 days written notice. Such notice will be served and effective as set forth in Subsection 9.a., herein. d. Omnitrans may also terminate this Agreement in the event of a funding shortfall for the City of Grand Terrace's Program or the failure to provide notice to Omnitrans of such funding shortfall, as required pursuant to section 4.e. In the event the City of Grand Terrace fails to provide the notice required pursuant to section 4.e., Omnitrans is not required to give the City of Grand Terrace an opportunity to cure such violation. e. If Omnitrans issues a Termination Notice or terminates this Agreement due to a funding shortfall, Omnitrans will reimburse the City of Grand Terrace for work actually performed up to the effective date of the Termination Notice, subject to the limitations in Section 4, and less any compensation to Omnitrans for damages suffered as a result of the City of Grand Terrace's failure to comply with the terms of this Agreement. f. The City of Grand Terrace will have the right to terminate this Agreement in the event Omnitrans is unable to make required payments. In such event, the City of Grand Terrace will provide Omnitrans with seven (7) days written notice of termination. The notice will be deemed served and effective on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to Omnitrans at the address indicated in Section 19. Omnitrans will make payment to the City of Grand Terrace through the date of termination, subject to the provisions of Section 4 above, and less any compensation to Omnitrans for damages suffered as a result of the City of Grand Terrace's failure to comply with the terms of this Agreement. 10. Assignment: The parties understand that Omnitrans entered into this Agreement based on the Project proposed by the City of Grand Terrace. Therefore, without the prior express written consent of Omnitrans, this Agreement is not assignable by the City of Grand Terrace either in whole or in part. 11. Binding Agreement: This Agreement will be binding on the parties hereto, their assigns, successors, administrators, executors, and other representatives. 4 E.6.c Packet Pg. 127 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 12. Amendments: No alteration or variation of the terms of this Agreement will be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, will be binding on any of the parties hereto. 13. Contractors and Subcontractors: The City of Grand Terrace will be fully responsible for all work performed by its contractors and subcontractors. Omnitrans reserves the right to review and approve any contract or agreement to be funded in whole or in part using funds provided under this Agreement in excess of$25,000. 14. Indemnification. The City of Grand Terrace shall defend, indemnify and hold Omnitrans, its directors, officials, officers, employees, agents and/or:volunteers free and harmless from any and all liability from loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to any acts, omissions or willful misconduct of City of Grand Terrace or any of its directors, officials, officers, employees, agents, volunteers, or service providers arising out of or in connection with the City of Grand Terrace's performance of this Agreement, including, without limitation, the payment of consequential damages and attorneys' fees. Further, the City of Grand Terrace shall defend, at its own expense, including the payment of attorneys' fees, Omnitrans, its officials, officers, employees, agents and/or volunteers in any legal action based upon such acts, omissions or willful misconduct. The City of Grand Terrace shall reimburse Omnitrans, its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. 15. Insurance. The City of Grand Terrace shall require all contractors or consultants hired to perform work or services on the Project to obtain, and require their sub-consultants and sub- contractors to obtain, insurance of the types and in the amounts described below and satisfactory to Omnitrans. Such insurance shall be maintained throughout'the term of this Agreement, or until completion of the Project, whichever occurs last. Upon request, the City of Grand Terrace will provide written certificates evidencing compliance to Omnitrans. a.Commercial General Liability Insurance. Occurrence version commercial general liability insurance or equivalent form with a combined single limit of not less than 1,000,000.00 per occurrence. If such insurance contains a general aggregate limit, it shall.apply separately to the Project or be no less than two times the occurrence limit. Such insurance shall: 1) Name Omnitrans, its officials, officers, employees, agents, and consultants as an additional insured with respect to performance of the work or services on the Project and shall contain no special limitations on the scope of coverage or the protection afforded to these insured; 5 E.6.c Packet Pg. 128 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 2) Be primary with respect to any insurance or self-insurance programs covering Omnitrans, its officials, officers, employees, agents, and consultants; and 3) "Contain standard separation of insured provisions. b. Business Automobile Liability Insurance. Business automobile liability insurance or equivalent form with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall include coverage for owned, hired and non- owned automobiles. C.Workers' Compensation Insurance. Workers' compensation insurance with statutory limits and employers' liability insurance with limits of not less than 1,000,000.00 each accident. 16. Audit: An independent auditor shall audit the City of Grand Terrace's use of Project funds no less than annually. The City of Grand Terrace agrees to supply Omnitrans with a copy of any audit of Project related activities performed. 17. Retention and Inspection of Records a. The City of Grand Terrace, including any contractors or subcontractors, will retain all driver training records and vehicle maintenance and safety records. b. Omnitrans or its. designee will have the right to review, obtain, copy, and audit all books, records, computer records, accounts, documentation and any other materials pertaining to performance of this Agreement (collectively "Records"), including any Records in the possession of any contractors or subcontractors. The City of Grand Terrace agrees to provide Omnitrans or its designee with any relevant information requested and will permit Omnitrans or its designees access to its premises, upon reasonable notice, during normal business hours, for the purpose of interviewing employees and inspecting and copying such Records for the purpose of determining compliance with any applicable federal and state laws and regulations. c. The City of Grand Terrace further agrees to maintain all Project Records for a period of four (4) years after final payment under the Agreement or four (4) years from the conclusion or resolution of any and all audits or litigation relevant to this Agreement and any amendments, whichever is later. If so directed by Omnitrans upon expiration of this Agreement, the City of Grand Terrace will cause all Records relevant to the Project to be delivered to Omnitrans as depository. 6 E.6.c Packet Pg. 129 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 18. Ste_ The City of Grand Terrace will include the Omnitrans logo and/or Measure I signage on Project related marketing materials and on.vehicles operated with Omnitrans funding, including: a. Vehicles purchased or operated with Measure I funds shall display signs clearly visible to riders indicating the vehicle is funded in part through Measure I funding. b. Signage must conform with approved Measure I signage and be approved by Omnitrans. 19. Notices. All notices hereunder shall be in writing and shall be effective upon receipt. All notices and communications, including invoices, between the Parties to this Agreement shall be either personally delivered, sent by first-class mail, return receipt requested, or sent by overnight express delivery service, postage or other charges fully prepaid, as follows: TO OMNITRANS:TO THE CITY OF GRAND TERRACE: Omnitrans City of Grand Terrace 1700 West Fifth Street 22795 Barton Road San Bernardino, CA 92411 Grand Terrace, CA 92313 ATTN: Director Special Transportation ATTN:,G. Harold Duffey, City Manager Services 20. Waivers: No waiver of any breach of this Agreement will be held to be a waiver of any prior or subsequent breach. The failure of Omnitrans to enforce at any time the provisions of this Agreement or to require at any time performance by the City of Grand Terrace of these provisions, will in no way be .construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Omnitrans to enforce these provisions. 21. Litigation: The City of Grand Terrace will notify Omnitrans immediately of any claim or action undertaken by it or against it that affects or may affect this Agreement or Omnitrans, and will take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of Omnitrans. 22. Non-Liability of Omnitrans: Omnitrans shall not be liable to the City of Grand Terrace or any third party for any claim for loss of profits or consequential damages. Further, Omnitrans shall not be liable to the City of Grand Terrace or any third party for any loss, cost, claim or damage, either direct or consequential, allegedly arising from a delay in performance or failure to perform under this Agreement. 7 E.6.c Packet Pg. 130 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 23. Costs and Attorneys' Fees: If either party commences any legal action against the other party arising out of this Agreement or the performance thereof, the prevailing party in such action may recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and reasonable attorneys' fees. 24. Governing_Law and Choice of Forum: This Agreement will be administered and interpreted under California law as if written by both parties. Any litigation arising from this Agreement will be brought in the Superior Court of San Bernardino County. 25. Integration: This Agreement represents the entire understanding of Omnitrans and the City of Grand Terrace as to those matters contained herein and supersedes all prior negotiations, representations, or agreements, both written and oral. This Agreement may not be modified or altered except in accordance with Section 12. 26. Severability: If any term or provision of this Agreement or the application thereof to any person or circumstance will, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is invalid or unenforceable, will not be affected thereby, and each term and provision of this Agreement will be valid and will be enforced to the fullest extent permitted by law, unless the exclusion of such term or provision, or the application of such term or provision, would result in such a material change so as to cause completion of the obligations contemplated herein to be unreasonable. 27. Headings: The headings of the various sections of this Agreement are intended solely for convenience of reference and are not intended to explain, modify, or place any interpretation upon any of the provisions of this Agreement. 28. Authority: Each person signing this Agreement on behalf of a party hereby certifies, represents, and warrants that he or she has the authority to bind that party to the terms and conditions of this Agreement. 29. Ownership; Permission: The City of Grand Terrace represents and warrants that all materials used in the performance of the Project work, including, without limitation, all computer software materials and all written materials, are either produced or owned by the City of Grand Terrace or that all required permissions and license agreements have been obtained and paid for by the City of Grand Terrace. The City of Grand Terrace will defend, indemnify and hold harmless Omnitrans and its directors, officers, employees, and agents from any claim, loss, damage, cost, liability, or expense to the extent of any violation or falsity of the foregoing representation and warranty. 8 E.6.c Packet Pg. 131 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 30. Counterparts: This Agreement may be executed in multiple counterparts, each of which will constitute an original, and all of which taken together will constitute one and the same instrument. 31. Press Releases: The City of Grand Terrace will obtain Omnitrans' prior written approval of any press releases, or other public outreach materials, that include any reference to Omnitrans or depiction of the Omnitrans logo. IN WITNESS WHEREOF, the PARTIES hereto have executed this Agreement, as of the date first appearing above. Signatures on following page] 9 E.6.c Packet Pg. 132 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) SIGNATURE PAGE TO FUNDING AGREEMENT BETWEEN OMNITRANS AND CITY OF GRAND TERRACE By: A)op-"Iscott Graham G. Har d ffey CEO/General Manager City M ger Omnitrans City of Grand Terrace Approved a O itians Legal Counsel City of Grand Terrace Legal Counsel 10 E.6.c Packet Pg. 133 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) EXHIBIT A Project Narrative Background: The City of Grand Terrace Senior Transportation Program has provided seniors with curb-to- curb transportation services to and from the Grand Terrace Senior Center, Monday through Friday, for lunch, activities, appointments and planned outings, since May of 2016. This increasingly popular program has seen a steady rise in its participation from its inception in 2016. The average number of passenger rides per month in the past three months (June, July and August 2018) of 254, is 56.15% higher than from the same span of time one year ago when the program averaged 162.66 passenger rides per month, and 662.76% higher than the same span of time during the program's first year, 2016, when the program averaged 33.33 passenger rides per month. The Senior Transportation Program is a valued part of the community and provides the City's senior residents the opportunity to meet for lunch, socialize, play games, make special trips, and be active, all by providing a convenient, local form of transportation. Project Description: The City utilizes a Ford E-450, 12-passenger bus, branded the "Blue Mountain Silver-Liner", to transport senior residents to and from the Senior Center, Monday through Friday, as well as to City events on weekends. The City of Grand Terrace is proposing to continue existing shuttling services, as well as to expand ridership through targeted community outreach, offering special excursions and continuing to respond to the suggestions of City staff working at the Senior Center. The original function of the Senior Transportation Program, to provide senior residents transportation to the Senior Center for lunch, is currently being served daily. Senior residents can schedule their pickup to the Senior Center, stay for lunch, games and activities, or to travel to the pre-scheduled bus destination for that day and receive a return ride home. Pre-scheduled destinations include daily trips to nearby shopping, restaurants, bank visits or special excursions to nearby entertainment. Shopping destinations include visits to Colton's Citrus Plaza, Ross, the 99 Cents Store, Wal-Mart, Target, CVS/Walgreens, as well as the Inland Center Mall, in San Bernardino. Restaurant visits include trips to local destinations such as Thai Kitchen, La Pasta Italia, Maria's, or Odalberto's, as well as trips to restaurants on Hospitality Lane, in San Bernardino, or even Serrano Buffet, at San Manuel Casino. Special excursions are also regularly planned and include trips to the movies, Redlands Bowl, or local theatrical presentations. 11 E.6.c Packet Pg. 134 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) Trips are planned based upon historically successful ridership data, as well as through rider and staff feedback. The Grand Terrace Senior Club meets each month at the Grand Terrace Senior Center. The Senior Club has a sub-committee in charge of activities which provides feedback and suggestions for the Senior Transportation Program. Following the direction provided by this feedback, the Senior Bus has been used to transport senior residents to requested destinations such as the local barber, Serrano Buffet and to the movies. 12 E.6.c Packet Pg. 135 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) EXHIBIT B Proiect Budget Exhibit A PROPOSED PROJECT BUDGET Agency Name: City of Grand Terrace Project Title: Senior Transportation Pro ram mnr rair s EXPENSES PO61..%T Dec'18-Dee'18 Jan'20-Dee'20 TOTAL Salaries by Position(oxhide benefits): Example:drivers,scheduler,trainer etc,) A Shuttle Driver 1 tED 100% S 26,000.00 S 26,650.00 $ 52,650.00 B.Benefits 17,204.00 $ 17,634.00 $ 34,838,00 C. S D. S E. S F. Total Salaries B Benefits. - 43,204:00 -$_.44.284.00 $ 87,468.00. Non-Personnel Expenses- Example:fuel,rent,insurance,utilities etc.) A Vehicle Fuel 4,080.00 $ 4.18200 $ 8,262.00 B.Vehicle Insurance S 632G0 $ 546,00 S 1,078.00 C.Vehicle Maintenance 3,SOD.00 $ 3.585.00 $ 7.088.00 D.Marketing 1,000.00 $ 1,02G.G0 S 2,025.00 E.Miscellaneous(Telephone,Office Supplies,etc.) S 160.00 $ 164.00 S 324.00 F Total Non-Pemonnel Expenses 9.272.00 S 9,505.O0--$ MT77.00 Administrative Overhead calculated at 3%) 1,574.28 $ 1.613.67 S 3,187.95 TOTALIPROJECTEXPENSES- 5' ' 54,050:28 5 402,675 S 109,452s5 REVENUES Agency Match(Cash) Example:General Fund,CDBG,Donations,etc) A.General Fund 15:000.00 S 15,000.00 $ 30,000.00 B.Donations 450.00 S 450,00 $ 900.00 C. D. E. F. Total Cash Match S 15,450.00 $ 15,450.00 $ 30,960.00 Agency Match(In-Kind)Pauaoe rcTim. Salaries by Positron(ewiude benelits): A. S B. C. S S D. S E. F. S S G. Is Total In-Kind Match, S Is a NtA '" ,r TF ,.. Iw` a (,,q•'. Measure I Request 38,600.28 $ 39,95267 $ 78,552.95 TtSTAL REVENUES.:"S Sa,oso.is $ ss;aoz.e7- $' - 109,452.95 13 E.6.c Packet Pg. 136 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 1700 W.Fifth St.OmniTrans San Bernardino,CA 92411 909-379-7100 Connecting Our Community. www.omnitrans.org TO: G. Harold Duffey, City Manager of the City of Grand Terrace FROM: Marcus Garcia, Programs Administrator DATE: Wednesday, December 12, 2018 RE: Measure I Funding Agreement Through December 31, 2020 Please find enclosed two copies of the Measure I Funding Agreement for your organization which was approved by the Omnitrans Board of Directors on November 7, 2018. Both copies contain the original signatures of both the CEO/General Manager and Legal Counsel of Omnitrans. One of the copies with original signatures from Omnitrans is for your organization's records, and the other should be returned to Omnitrans with the signature of the designated representative named on the document. If your organization's policies require review from Legal Counsel, a space is also provided for their signature as well. The addressed envelope provided can be used to return one copy with original signatures from your organization via U.S. Mail. The original copy should be submitted to the following address: Omnitrans Special Transportation Services Attn: Marcus Garcia, Programs Administrator 1700 W. Sth Street San Bernardino, CA 92411-2401 Please do not hesitate to contact me at (909) 379-7343 or marcus.garcia@omnitrans.org with any questions related to this matter. Sincerely, Marcus Garcia Programs.Administrator Omnitrans Special Transportation Services E.6.c Packet Pg. 137 At t a c h m e n t : 3 _ F u n d i n g A g r e e e m e n t O m n i t r a n s - 2 0 1 8 - 5 0 1 2 - 1 1 - 2 0 1 8 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 1 FUNDING AGREEMENT BETWEEN OMNITRANS AND CITY OF GRAND TERRACE This Funding Agreement for Measure I funds (“Agreement”) by and between the City of Grand Terrace, a municipal government and Omnitrans, a Joint Powers Authority and a Consolidated Transportation Services Agency (“Omnitrans”), is entered into this 1st day of January, 2021. The City of Grand Terrace and Omnitrans are sometimes individually referred to as “Party” and collectively as “Parties.” RECITALS WHEREAS, in its capacity as the Consolidated Transportation Services Agency (“CTSA”) for the San Bernardino Valley, Omnitrans has the ability to provide Measure I funds to other entities for projects that improve mobility for persons with disabilities, senior citizens, and persons of low income; and WHEREAS, the City of Grand Terrace currently operates its Senior Transportation Program (“Project”) which provides weekday curb-to-curb transportation for seniors to and from the Grand Terrace Senior Center for lunch, social activities, and planned outings in the community; and WHEREAS, the City of Grand Terrace would like to continue operating its Senior Transportation Program; and WHEREAS, Omnitrans desires to provide capital and operating assistance funds to the City of Grand Terrace, on a reimbursable basis, for the Project; and WHEREAS, the parties wish to enter into this Agreement to document the terms and conditions of Omnitrans funding of the Project. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Project Description: The City of Grand Terrace will introduce a zero-emission carshare and rideshare program for use by its residents and community composed of two (2) zero emission vehicles. The program will serve senior individuals (62 years and older) as well as persons with disabilities, as set forth in the City of Grand Terrace’s Project, attached hereto as Exhibit A. Any E.6.d Packet Pg. 138 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 2 proposed amendment to Exhibit A must be agreed to in advance by the parties pursuant to a written amendment. 2. Term: This Agreement will be for a term of two (2) years and shall expire on December 31, 2022, unless otherwise terminated as provided for in this Agreement or extended by written agreement between the parties. 3. Funding Amount: The amount to be paid to the City of Grand Terrace under this Agreement will not exceed $190,900 in operating expenses, with an annual not to exceed amount of $95,092 in Calendar Year 2021 and $95,808 in Calendar Year 2022. A total of $128,880 in capital expenses, with annual not to exceed amounts of $87,840 in Calendar Year 2021 and $41,040 in Calendar Year 2022-unless agreed to in advance by the parties pursuant to a written amendment. In no instance will Omnitrans be liable for any payments or costs for work in excess of these amounts, nor for costs not listed in Project Budget, attached hereto as Exhibit B. 4. Payment: a. On a monthly basis, the City of Grand Terrace will provide Omnitrans with an invoice for reimbursement pursuant to Subsections 4.b. and 4.c., below. b. Payments for operating expenses to the City of Grand Terrace hereunder will be made in arrears. The City of Grand Terrace will submit a detailed and properly documented invoice for reimbursement not more often than monthly, which invoice will include: (i) a description of the work performed; and (ii) a detailed accounting of costs incurred. c. Payments for capital expenses, including but not limited to vehicles, may be requested in advance, upon presentation of a valid vendor invoice for such purchases d. The City of Grand Terrace will be notified within ten (10) business days following receipt of its invoice by Omnitrans of any circumstances or data in the City of Grand Terrace’s invoice that would cause withholding of approval and subsequent payment. The City of Grand Terrace’s invoice will include documentation of reimbursable expenses and billed items sufficient for Omnitrans, in its opinion, to substantiate billings. Omnitrans reserves the right to withhold payment of disputed amounts. e. At no time shall payments from Omnitrans be used to supplant any existing funding source for the City of Grand Terrace’s Senior Transportation Program. The City of Grand Terrace shall notify Omnitrans of any potential loss of funding for the existing City of Grand Terrace services within ten (10) business days of learning of the funding loss. E.6.d Packet Pg. 139 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 3 5. Progress Reports: In cooperation with Omnitrans, the City of Grand Terrace shall develop national ridership data reporting mechanisms sufficient for reporting as part of the NTD (National Transit Database) reporting system, and shall provide such data to Omnitrans monthly. 6. Advisory Committee Participation: The City of Grand Terrace shall attend and participate in advisory committee meetings, as mutually agreed upon by Omnitrans and the San Bernardino County Transportation Authority. 7. Compliance with Laws: The City of Grand Terrace will comply with all applicable federal, state, and local laws, codes, ordinances, regulations, orders, circulars, and directives, including, without limitation: (i) all regulatory requirements associated with the funding provided to the City of Grand Terrace for this Project; (ii) all disability laws; and (iii) non-discrimination and equal opportunity laws. Any failure by the City of Grand Terrace to comply with such laws may result in the termination of this Agreement or such other remedy as Omnitrans deems appropriate. 8. Independent Contractor: The City of Grand Terrace, and the agents and employees of the City of Grand Terrace, in the performance of this Agreement, will act as and be independent contractors, and not officers, employees, or agents of Omnitrans. The City of Grand Terrace, its officers, employees, agents, and contractors, if any, will have no power to bind or commit Omnitrans to any decision or course of action, and will not represent to any person or business that they have such power. The City of Grand Terrace has and will retain the right to exercise full control of the supervision of the Project, and over the employment, direction, compensation, and discharge of all persons assisting in the performance of the work funded by this Agreement. The City of Grand Terrace will be solely responsible for all matters relating to the payment of its employees and contractors, including but not limited to, compliance with all laws, statutes, and regulations governing such matters. 9. Termination: a. Omnitrans may terminate this Agreement for cause by giving the City of Grand Terrace a notice of default and intention to terminate the Agreement (“Termination Notice”). The notice will be deemed served and effective for all purposes on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to the City of Grand Terrace at the address indicated in Section 19 below. b. Upon receipt of a Termination Notice, the City of Grand Terrace shall have 30 days in which to cure the stated violation(s) and to provide to Omnitrans sufficient evidence that the violations have been cured. If the City of Grand Terrace has not cured within 30 days of such notice, or has not provided sufficient evidence of such to Omnitrans, the Agreement shall be terminated, effective immediately. E.6.d Packet Pg. 140 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 4 c. Omnitrans may also terminate this Agreement in the event of Measure I or federal grant funding shortfall, upon 15 days written notice. Such notice will be served and effective as set forth in Subsection 9.a., herein. d. Omnitrans may also terminate this Agreement in the event of a funding shortfall for the City of Grand Terrace’s Program or the failure to provide notice to Omnitrans of such funding shortfall, as required pursuant to section 4.e. In the event the City of Grand Terrace fails to provide the notice required pursuant to section 4.e., Omnitrans is not required to give the City of Grand Terrace an opportunity to cure such violation. e. If Omnitrans issues a Termination Notice or terminates this Agreement due to a funding shortfall, Omnitrans will reimburse the City of Grand Terrace for work actually performed up to the effective date of the Termination Notice, subject to the limitations in Section 4, and less any compensation to Omnitrans for damages suffered as a result of the City of Grand Terrace’s failure to comply with the terms of this Agreement. f. The City of Grand Terrace will have the right to terminate this Agreement in the event Omnitrans is unable to make required payments. In such event, the City of Grand Terrace will provide Omnitrans with seven (7) days written notice of termination. The notice will be deemed served and effective on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to Omnitrans at the address indicated in Section 19. Omnitrans will make payment to the City of Grand Terrace through the date of termination, subject to the provisions of Section 4 above, and less any compensation to Omnitrans for damages suffered as a result of the City of Grand Terrace’s failure to comply with the terms of this Agreement. 10. Assignment: The parties understand that Omnitrans entered into this Agreement based on the Project proposed by the City of Grand Terrace. Therefore, without the prior express written consent of Omnitrans, this Agreement is not assignable by the City of Grand Terrace either in whole or in part. 11. Binding Agreement: This Agreement will be binding on the parties hereto, their assigns, successors, administrators, executors, and other representatives. 12. Amendments: No alteration or variation of the terms of this Agreement will be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, will be binding on any of the parties hereto. 13. Contractors and Subcontractors: The City of Grand Terrace will be fully responsible for all work performed by its contractors and subcontractors. Omnitrans reserves the right to review E.6.d Packet Pg. 141 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 5 and approve any contract or agreement to be funded in whole or in part using funds provided under this Agreement in excess of $25,000. 14. Indemnification. The City of Grand Terrace shall defend, indemnify and hold Omnitrans, its directors, officials, officers, employees, agents and/or volunteers free and harmless from any and all liability from loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to any acts, omissions or willful misconduct of City of Grand Terrace or any of its directors, officials, officers, employees, agents, volunteers, or service providers arising out of or in connection with the City of Grand Terrace’s performance of this Agreement, including, without limitation, the payment of consequential damages and attorneys' fees. Further, the City of Grand Terrace shall defend, at its own expense, including the payment of attorneys' fees, Omnitrans, its officials, officers, employees, agents and/or volunteers in any legal action based upon such acts, omissions or willful misconduct. The City of Grand Terrace shall reimburse Omnitrans, its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. 15. Insurance. The City of Grand Terrace shall require all contractors or consultants hired to perform work or services on the Project to obtain, and require their sub-consultants and sub- contractors to obtain, insurance of the types and in the amounts described below and satisfactory to Omnitrans. The City of Grand Terrace may satisfy its insurance obligations herein through participation in a program of self-insurance. Such insurance shall be maintained throughout the term of this Agreement, or until completion of the Project, whichever occurs last. Upon request, the City of Grand Terrace will provide written certificates evidencing compliance to Omnitrans. a. Commercial General Liability Insurance. Occurrence version commercial general liability insurance or equivalent form with a combined single limit of not less than $1,000,000.00 per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to the Project or be no less than two times the occurrence limit. Such insurance shall: b. Business Automobile Liability Insurance. Business automobile liability insurance or equivalent form with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall include coverage for owned, hired and non-owned automobiles. c. Workers’ Compensation Insurance. Workers’ compensation insurance with statutory limits and employers’ liability insurance with limits of not less than $1,000,000.00 each accident. E.6.d Packet Pg. 142 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 6 16. Audit: An independent auditor shall audit the City of Grand Terrace’s use of Project funds no less than annually. The City of Grand Terrace agrees to supply Omnitrans with a copy of any audit of Project related activities performed. 17. Retention and Inspection of Records a. The City of Grand Terrace, including any contractors or subcontractors, will retain all driver training records and vehicle maintenance and safety records. b. Omnitrans or its designee will have the right to review, obtain, copy, and audit all books, records, computer records, accounts, documentation and any other materials pertaining to performance of this Agreement (collectively “Records”), including any Records in the possession of any contractors or subcontractors. The City of Grand Terrace agrees to provide Omnitrans or its designee with any relevant information requested and will permit Omnitrans or its designees access to its premises, upon reasonable notice, during normal business hours, for the purpose of interviewing employees and inspecting and copying such Records for the purpose of determining compliance with any applicable federal and state laws and regulations. c. The City of Grand Terrace further agrees to maintain all Project Records for a period of four (4) years after final payment under the Agreement or four (4) years from the conclusion or resolution of any and all audits or litigation relevant to this Agreement and any amendments, whichever is later. If so directed by Omnitrans upon expiration of this Agreement, the City of Grand Terrace will cause all Records relevant to the Project to be delivered to Omnitrans as depository. 18. Signs: The City of Grand Terrace will include the Omnitrans logo and/or Measure I signage on Project related marketing materials and on vehicles operated with Omnitrans funding, including: a. Vehicles purchased or operated with Measure I funds shall display signs clearly visible to riders indicating the vehicle is funded in part through Measure I funding. b. Signage must conform with approved Measure I signage and be approved by Omnitrans. 19. Notices. All notices hereunder shall be in writing and shall be effective upon receipt. All notices and communications, including invoices, between the Parties to this Agreement shall be either personally delivered, sent by first-class mail, return receipt requested, or sent by overnight express delivery service, postage or other charges fully prepaid, as follows: E.6.d Packet Pg. 143 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 7 TO OMNITRANS: TO THE CITY OF GRAND TERRACE: Omnitrans City of Grand Terrace 1700 West Fifth Street 22795 Barton Road San Bernardino, CA 92411 Grand Terrace, CA 92313 ATTN: Director Special Transportation ATTN: A. Harold Duffey, City Manager Services 20. Waivers: No waiver of any breach of this Agreement will be held to be a waiver of any prior or subsequent breach. The failure of Omnitrans to enforce at any time the provisions of this Agreement or to require at any time performance by the City of Grand Terrace of these provisions, will in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Omnitrans to enforce these provisions. 21. Litigation: The City of Grand Terrace will notify Omnitrans immediately of any claim or action undertaken by it or against it that affects or may affect this Agreement or Omnitrans, and will take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of Omnitrans. 22. Non-Liability of Omnitrans: Omnitrans shall not be liable to the City of Grand Terrace or any third party for any claim for loss of profits or consequential damages. Further, Omnitrans shall not be liable to the City of Grand Terrace or any third party for any loss, cost, claim or damage, either direct or consequential, allegedly arising from a delay in performance or failure to perform under this Agreement. 23. Costs and Attorneys’ Fees: If either party commences any legal action against the other party arising out of this Agreement or the performance thereof, the prevailing party in such action may recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and reasonable attorneys’ fees. 24. Governing Law and Choice of Forum: This Agreement will be administered and interpreted under California law as if written by both parties. Any litigation arising from this Agreement will be brought in the Superior Court of San Bernardino County. 25. Integration: This Agreement represents the entire understanding of Omnitrans and the City of Grand Terrace as to those matters contained herein and supersedes all prior negotiations, representations, or agreements, both written and oral. This Agreement may not be modified or altered except in accordance with Section 12. E.6.d Packet Pg. 144 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 8 26. Severability: If any term or provision of this Agreement or the application thereof to any person or circumstance will, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is invalid or unenforceable, will not be affected thereby, and each term and provision of this Agreement will be valid and will be enforced to the fullest extent permitted by law, unless the exclusion of such term or provision, or the application of such term or provision, would result in such a material change so as to cause completion of the obligations contemplated herein to be unreasonable. 27. Headings: The headings of the various sections of this Agreement are intended solely for convenience of reference and are not intended to explain, modify, or place any interpretation upon any of the provisions of this Agreement. 28. Authority: Each person signing this Agreement on behalf of a party hereby certifies, represents, and warrants that he or she has the authority to bind that party to the terms and conditions of this Agreement. 29. Ownership; Permission: Omnitrans represents and warrants that all materials used in the performance of the Project work, including, without limitation, all computer software materials and all written materials, are either produced or owned by the City of Grand Terrace or that all required permissions and license agreements have been obtained and paid for by the City of Grand Terrace. The City of Grand Terrace will defend, indemnify and hold harmless Omnitrans and its directors, officers, employees, and agents from any claim, loss, damage, cost, liability, or expense to the extent of any violation or falsity of the foregoing representation and warranty. 30. Counterparts: This Agreement may be executed in multiple counterparts, each of which will constitute an original, and all of which taken together will constitute one and the same instrument. 31. Press Releases: The City of Grand Terrace will obtain Omnitrans' prior written approval of any press releases, or other public outreach materials, that include any reference to Omnitrans or depiction of the Omnitrans logo. E.6.d Packet Pg. 145 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 9 IN WITNESS WHEREOF, the PARTIES hereto have executed this Agreement, as of the date first appearing above. By: _________________________ ___________________________ Erin Rogers G. Harold Duffey CEO/General Manager City Manager Omnitrans City of Grand Terrace Approved as to form: _________________________ _____________________________ Omnitrans Legal Counsel Legal Counsel of the City of Grand Terrace E.6.d Packet Pg. 146 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 10 EXHIBIT A Project Narrative The City of Grand Terrace proposes to introduce a zero-emission carshare and rideshare program for use by its residents and community. The program will serve senior individuals (62 years old and older) as well as persons with disabilities. Offering a zero-emission carshare and rideshare program solves the immediate need to provide flexible, lifeline transportation to our organization’s community members. As indicated in the Coordinated Plan, scheduled, fixed-route transportation is infrequent in our subarea and other specialized services do not operate on a flexible enough schedule to accommodate last-minute or off-hour trips. An independent program supported on site at Grand Terrace City Hall and the Grand Terrace Senior Center would allow community members better access to transportation and the desired mobility option to bunch or group trips in an efficient way for improved services. At the end of the two-year demonstration period, our anticipated performance measures and indicators include: - 3,000 Total Individuals served, Seniors 3,000 and Persons with Disabilities 500 - 4,000 Total Vehicle Miles Traveled - 9,000 One-Way Passenger Trips - 100 % of trips aligned with the City of Grand Terrace’s organizational mission (healthcare, employment, recreational or other) City of Grand Terrace’s use of battery-electric vehicles further supports Omnitrans’ strategic goals and objectives to decarbonize transportation via zero-emission modes that have measurable impacts on local air quality and the co-benefits associated with decreased pollution. Employing a blended carshare/rideshare model additionally assists to decrease single-occupancy vehicle traffic and promotes shared mobility as a daily means of transportation, including public transit. E.6.d Packet Pg. 147 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 11 EXHIBIT B Project Budget CAPITAL EXPENSES PROJECT BUDGET FORM Agency Name: Project Title: EXPENSES Position % Time Jan '21 - Dec '21 Jan '22 - Dec '22 TOTAL Capital Asset(s) (Example: Vehicle Yr/Make/Model, Software, etc.) LEASE VIA GREEN COMMUTER A. EV Star ADA Rear Lift (14-Passenger + 2WheelChair Lease) #1 22,800.00$ 22,800.00$ 45,600.00$ B. EV Star ADA Rear Lift (14-Passenger + 2WheelChair Lease) #2 22,800.00$ 22,800.00$ 45,600.00$ C. EV Charging Station (Location: 1 City Maintenance Yard) DC#3 26,000.00$ -$ 26,000.00$ D. EV Charging Station (Location: 2Barton & Mt. Vernon) DC#3 26,000.00$ -$ 26,000.00$ E. -$ -$ -$ F. -$ -$ -$ 97,600.00$ 45,600.00$ 143,200.00$ 97,600.00$ 45,600.00$ 143,200.00$ REVENUES Agency Match (Cash) (Example: General Fund, CDBG, Donations, etc) A. General Fund 9,760.00$ 4,560.00$ 14,320.00$ B. -$ -$ -$ C.-$ -$ -$ D.-$ -$ -$ E.-$ -$ -$ F.-$ -$ -$ 9,760.00$ 4,560.00$ 14,320.00$ Measure I Request 87,840.00$ 41,040.00$ 128,880.00$ 97,600.00$ 45,600.00$ 143,200.00$ 90.00%90.00%90.00%Calculated Measure I portion Total Cash Match TOTAL REVENUES City of Grand Terrace Senior Transportation Program Total Salaries & Benefits TOTAL PROJECT EXPENSES E.6.d Packet Pg. 148 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 12 OPERATING EXPENSES PROJECT BUDGET FORM Agency Name: Project Title: EXPENSES Position % Time Jan '21 - Dec '21 Jan '22 - Dec '22 TOTAL Salaries by Position (include benefits): (Example: drivers, scheduler, trainer etc.) A. Bus Driver #1 (40 hours per week)6:30am - 3:00pm 41,600.00$ 43,680.00$ 85,280.00$ B. Benefits for Bus Driver #1 20,800.00$ 21,840.00$ 42,640.00$ C. Back-up / Add'l Bus Driver #2 (20 hours per week)20,800.00$ 21,840.00$ 42,640.00$ Sat & Sun 8:00am - 12:00 noon / Tue & Thu 3:00pm - 7:00pm D. Benefits for Bus Driver #2 10,400.00$ 10,920.00$ 21,320.00$ E. Program Support (Salaries & Benefits)10,000.00$ 10,000.00$ 20,000.00$ Assistant City Manager & Management Analyst F. -$ -$ -$ 103,600.00$ 108,280.00$ 211,880.00$ Non-Personnel Expenses: (Example: fuel, rent, insurance, utilities etc.) A. Vehicle Fuel 3,000.00$ 3,150.00$ 6,150.00$ B. Vehicle Wrap/Signage 4,000.00$ -$ 4,000.00$ C. Cleaning supplies 800.00$ 840.00$ 1,640.00$ D. Cost to charge vehicles 4,000.00$ 4,000.00$ 8,000.00$ E.-$ -$ -$ F.-$ -$ -$ 11,800.00$ 7,990.00$ 19,790.00$ 3,462.00$ 3,488.00$ 6,950.00$ 118,862.00$ 119,758.00$ 238,620.00$ REVENUES Agency Match (Cash) (Example: General Fund, CDBG, Donations, etc) A. General Fund 8,770.00$ 8,770.00$ 17,540.00$ B. Donations 5,000.00$ 5,180.00$ 10,180.00$ C.-$ -$ -$ D.-$ -$ -$ E.-$ -$ -$ F.-$ -$ -$ 13,770.00$ 13,950.00$ 27,720.00$ Agency Match (In-Kind)Position % Time Salaries by Position (include benefits): A. Program Support - Assistant City Manager & Management Analyst 10,000.00$ 10,000.00$ 20,000.00$ B.-$ -$ -$ C.-$ -$ -$ Non-Personnel Match (in-kind) D.-$ -$ -$ E.-$ -$ -$ F.-$ -$ -$ 10,000.00$ 10,000.00$ 20,000.00$ Measure I Request 95,092.00$ 95,808.00$ 190,900.00$ 118,862.00$ 119,758.00$ 238,620.00$ 80.00%80.00%80.00%Calculated Measure I portion Total Cash Match Total In-Kind Match TOTAL REVENUES City of Grand Terrace Senior Transportation Program Total Salaries & Benefits Total Non-Personnel Expenses Administrative Overhead (calculated at 3%) TOTAL PROJECT EXPENSES E.6.d Packet Pg. 149 At t a c h m e n t : 4 _ F u n d i n g A g r e e m e n t C i t y o f G r a n d T e r r a c e 2 0 2 1 - 1 ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 1 FUNDING AGREEMENT BETWEEN OMNITRANS AND GRAND TERRACE This Funding Agreement for Measure I funds (“Agreement”) by and between The City of Grand Terrace (“Grand Terrace”), a municipal government and Omnitrans, a Joint Powers Authority and a Consolidated Transportation Services Agency (“Omnitrans”), is entered into this 1st day of July, 2022. Grand Terrace and Omnitrans are sometimes individually referred to as “Party” and collectively as “Parties.” RECITALS WHEREAS, in its capacity as the Consolidated Transportation Services Agency (“CTSA”) for the San Bernardino Valley, Omnitrans has the ability to provide Measure I funds to other entities for projects that improve mobility for persons with disabilities, senior citizens, and persons of low income; and WHEREAS, Grand Terrace currently operates its Senior Transportation Program which provides weekday curb-to-curb transportation for seniors to and from the Grand Terrace Senior Center for lunch, social activities, and planned outings in the community; and WHEREAS, Grand Terrace would like to continue to operate its Senior Transportation Program; (“Project”); and WHEREAS, Omnitrans desires to provide operating assistance funds to Grand Terrace, on a reimbursable basis, for the Project; and WHEREAS, the Parties wish to enter into this Agreement to document the terms and conditions of Omnitrans funding of the Project. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Project Description: The Grand Terrace Senior Transportation Program provides transportation service in the form of pre-scheduled daily trips to nearby shopping, restaurants, hospitals/doctor's visits, bank visits, or special excursions, as further described in Exhibit A, which is attached hereto and incorporated herein by reference. E.6.e Packet Pg. 150 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 2 2. Term: This Agreement will be for a term of two (2) years and shall expire on June 30, 2024, unless otherwise terminated as provided for in this Agreement or extended by written agreement between the parties. 3. Funding Amount: The amount to be paid to Grand Terrace under this Agreement will not exceed $173,703 in operating expenses, with an annual not to exceed amount of $86,965 in Fiscal Year 2023 and $86,738 in Fiscal Year 2024. A total of $46,800 in capital expenses, with annual not to exceed amounts of $46,800 in Fiscal Year 2023 and no capital expenses in 2024. In no instance will Omnitrans be liable for any payments or costs for work in excess of these amounts, nor for costs not listed in Project Budget, attached hereto as Exhibit B. 4. Payment: a. On a monthly basis, Grand Terrace will provide Omnitrans with an invoice for reimbursement pursuant to Subsections 4.b. and 4.c., below. b. Payments for operating expenses to Grand Terrace hereunder will be made in arrears. Grand Terrace will submit a detailed and properly documented invoice for reimbursement not more often than monthly, which invoice will include: (i) a description of the work performed; and (ii) a detailed accounting of costs incurred. c. Payments for capital expenses, including but not limited to vehicles, may be requested in advance, upon presentation of a valid vendor invoice for such purchases d. Grand Terrace will be notified within ten (10) business days following receipt of its invoice by Omnitrans of any circumstances or data in Grand Terrace’s invoice that would cause withholding of approval and subsequent payment. Grand Terrace’s invoice will include documentation of reimbursable expenses and billed items sufficient for Omnitrans, in its opinion, to substantiate billings. Omnitrans reserves the right to withhold payment of disputed amounts. e. At no time shall payments from Omnitrans be used to supplant any existing funding source for Grand Terrace’s Senior Transportation Program. Grand Terrace shall notify Omnitrans of any potential loss of funding for the existing Grand Terrace services within ten (10) business days of learning of the funding loss. 5. Progress Reports: Grand Terrace will provide Omnitrans with monthly Project Milestones updates on the Project, as set forth in Exhibit A. In cooperation with Omnitrans, Grand Terrace shall develop national ridership data reporting mechanisms sufficient for reporting as part of the NTD (National Transit Database) reporting system, and shall provide such data to Omnitrans monthly. E.6.e Packet Pg. 151 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 3 6. Advisory Committee Participation: Grand Terrace shall attend and participate in advisory committee meetings, as mutually agreed upon by Omnitrans and the San Bernardino County Transportation Authority. 7. Compliance with Laws: Grand Terrace will comply with all applicable federal, state, and local laws, codes, ordinances, regulations, orders, circulars, and directives, including, without limitation: (i) all regulatory requirements associated with the funding provided to the Grand Terrace for this Project; (ii) all disability laws; and (iii) non-discrimination and equal opportunity laws. Any failure by Grand Terrace to comply with such laws may result in the termination of this Agreement or such other remedy as Omnitrans deems appropriate. 8. Independent Contractor: Grand Terrace, and the agents and employees of Grand Terrace, in the performance of this Agreement, will act as and be independent contractors, and not officers, employees, or agents of Omnitrans. Grand Terrace, its officers, employees, agents, and contractors, if any, will have no power to bind or commit Omnitrans to any decision or course of action, and will not represent to any person or business that they have such power. Grand Terrace has and will retain the right to exercise full control of the supervision of the Project, and over the employment, direction, compensation, and discharge of all persons assisting in the performance of the work funded by this Agreement. Grand Terrace will be solely responsible for all matters relating to the payment of its employees and contractors, including but not limited to, compliance with all laws, statutes, and regulations governing such matters. 9. Termination: a. Omnitrans may terminate this Agreement for cause by giving Grand Terrace a notice of default and intention to terminate the Agreement (“Termination Notice”). The notice will be deemed served and effective for all purposes on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to Grand Terrace at the address indicated in Section 20 below. b. Upon receipt of a Termination Notice, Grand Terrace shall have 30 days in which to cure the stated violation(s) and to provide to Omnitrans sufficient evidence that the violations have been cured. If Grand Terrace has not cured within 30 days of such notice, or has not provided sufficient evidence of such to Omnitrans, the Agreement shall be terminated, effective immediately. c. Omnitrans may also terminate this Agreement in the event of Measure I or federal grant funding shortfall, upon 15 days written notice. Such notice will be served and effective as set forth in Subsection 9.a., herein. E.6.e Packet Pg. 152 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 4 d. Omnitrans may also terminate this Agreement in the event of a funding shortfall for Grand Terrace’s program or the failure to provide notice to Omnitrans of such funding shortfall, as required pursuant to section 4.e. In the event Grand Terrace fails to provide the notice required pursuant to section 4.e., Omnitrans is not required to give Grand Terrace an opportunity to cure such violation. e. If Omnitrans issues a Termination Notice or terminates this Agreement due to a funding shortfall, Omnitrans will reimburse Grand Terrace for work actually performed up to the effective date of the Termination Notice, subject to the limitations in Section 4, and less any compensation to Omnitrans for damages suffered as a result of Grand Terrace’s failure to comply with the terms of this Agreement. f. Grand Terrace will have the right to terminate this Agreement in the event Omnitrans is unable to make required payments. In such event, Grand Terrace will provide Omnitrans with seven (7) days written notice of termination. The notice will be deemed served and effective on the date it is deposited in the U.S. mail, certified, return receipt requested, addressed to Omnitrans at the address indicated in Section 20. Omnitrans will make payment to Grand Terrace through the date of termination, subject to the provisions of Section 4 above, and less any compensation to Omnitrans for damages suffered as a result of Grand Terrace’s failure to comply with the terms of this Agreement. 10. Assignment: The parties understand that Omnitrans entered into this Agreement based on the project proposed by Grand Terrace. Therefore, without the prior express written consent of Omnitrans, this Agreement is not assignable by Grand Terrace either in whole or in part. 11. Binding Agreement: This Agreement will be binding on the parties hereto, their assigns, successors, administrators, executors, and other representatives. 12. Time: Time is of the essence in this Agreement and will follow the Project Milestones timeline set forth in Exhibit A, unless modified pursuant to Section 13. 13. Amendments: No alteration or variation of the terms of this Agreement will be valid unless made in writing and signed by the parties hereto, and no oral understanding or agreement not incorporated herein, will be binding on any of the parties hereto. 14. Contractors and Subcontractors: Grand Terrace will be fully responsible for all work performed by its contractors and subcontractors. Omnitrans reserves the right to review and approve any contract or agreement to be funded in whole or in part using funds provided under this Agreement in excess of $25,000. Grand Terrace shall incorporate the terms of this Agreement, E.6.e Packet Pg. 153 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 5 including without limitation the indemnification and insurance provisions, into any subcontractor agreement funded by this Agreement. 15. Indemnification. Grand Terrace shall defend, indemnify and hold Omnitrans, its directors, officials, officers, employees, agents and/or volunteers free and harmless from any and all liability from loss, damage, or injury to property or persons, including wrongful death, in any manner arising out of or incident to any acts, omissions or willful misconduct of Grand Terrace or any of its directors, officials, officers, employees, agents, volunteers, or service providers arising out of or in connection with Grand Terrace’s performance of this Agreement, including, without limitation, the payment of consequential damages and attorneys' fees. Further, Grand Terrace shall defend, at its own expense, including the payment of attorneys' fees, Omnitrans, its officials, officers, employees, agents and/or volunteers in any legal action based upon such acts, omissions or willful misconduct. Grand Terrace shall reimburse Omnitrans, its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. 16. Insurance. Grand Terrace shall require all contractors or consultants hired to perform work or services on the Project to obtain, and require their sub-consultants and sub-contractors to obtain, insurance of the types and in the amounts described below and satisfactory to Omnitrans. Grand Terrace may satisfy its insurance obligations herein through participation in a program of self- insurance. Such insurance shall be maintained throughout the term of this Agreement, or until completion of the Project, whichever occurs last. Upon request, Grand Terrace will provide written certificates evidencing compliance to Omnitrans. a. Commercial General Liability Insurance. Occurrence version commercial general liability insurance or equivalent form with a combined single limit of not less than $1,000,000.00 per occurrence. If such insurance contains a general aggregate limit, it shall apply separately to the Project or be no less than two times the occurrence limit. Such insurance shall: b. Business Automobile Liability Insurance. Business automobile liability insurance or equivalent form with a combined single limit of not less than $1,000,000.00 per occurrence. Such insurance shall include coverage for owned, hired and non- owned automobiles. c. Workers’ Compensation Insurance. Workers’ compensation insurance with statutory limits and employers’ liability insurance with limits of not less than $1,000,000.00 each accident. 17. Audit: An independent auditor shall audit Grand Terrace’s use of project funds no less than annually. Grand Terrace agrees to supply Omnitrans with a copy of any audit of project related activities performed. E.6.e Packet Pg. 154 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 6 18. Retention and Inspection of Records a. Grand Terrace, including any contractors or subcontractors, will retain all driver training records and vehicle maintenance and safety records. b. Omnitrans or its designee will have the right to review, obtain, copy, and audit all books, records, computer records, accounts, documentation and any other materials pertaining to performance of this Agreement (collectively “Records”), including any Records in the possession of any contractors or subcontractors. Grand Terrace agrees to provide Omnitrans or its designee with any relevant information requested and will permit Omnitrans or its designees access to its premises, upon reasonable notice, during normal business hours, for the purpose of interviewing employees and inspecting and copying such Records for the purpose of determining compliance with any applicable federal and state laws and regulations. c. Grand Terrace further agrees to maintain all project records for a period of four (4) years after final payment under the Agreement or four (4) years from the conclusion or resolution of any and all audits or litigation relevant to this Agreement and any amendments, whichever is later. If so directed by Omnitrans upon expiration of this Agreement, Grand Terrace will cause all Records relevant to the Project to be delivered to Omnitrans as depository. 19. Signs: Grand Terrace will include the Omnitrans logo and/or Measure I signage on Project related marketing materials and on vehicles operated with Omnitrans funding, including: a. Vehicles purchased or operated with Measure I funds shall display signs clearly visible to riders indicating the vehicle is funded in part through Measure I funding. b. Signage must conform with approved Measure I signage and be approved by Omnitrans. 20. Notices. All notices hereunder shall be in writing and shall be effective upon receipt. All notices and communications, including invoices, between the Parties to this Agreement shall be either personally delivered, sent by first-class mail, return receipt requested, or sent by overnight express delivery service, postage or other charges fully prepaid, as follows: TO OMNITRANS: TO Grand Terrace: Omnitrans City of Grand Terrace 1700 West Fifth Street 22795 Barton Road San Bernardino, CA 92411 Grand Terrace, CA 92313 ATTN: Director Strategic Development ATTN: City Manager E.6.e Packet Pg. 155 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 7 21. Waivers: No waiver of any breach of this Agreement will be held to be a waiver of any prior or subsequent breach. The failure of Omnitrans to enforce at any time the provisions of this Agreement or to require at any time performance by Grand Terrace of these provisions, will in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of Omnitrans to enforce these provisions. 22. Litigation: Grand Terrace will notify Omnitrans immediately of any claim or action undertaken by it or against it that affects or may affect this Agreement or Omnitrans, and will take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of Omnitrans. 23. Non-Liability of Omnitrans: Omnitrans shall not be liable to Grand Terrace or any third party for any claim for loss of profits or consequential damages. Further, Omnitrans shall not be liable to Grand Terrace or any third party for any loss, cost, claim or damage, either direct or consequential, allegedly arising from a delay in performance or failure to perform under this Agreement. There are no third party beneficiaries to this Agreement 24. Costs and Attorneys’ Fees: If either party commences any legal action against the other party arising out of this Agreement or the performance thereof, the prevailing party in such action may recover its reasonable litigation expenses, including court costs, expert witness fees, discovery expenses, and reasonable attorneys’ fees. 25. Governing Law and Choice of Forum: This Agreement will be administered and interpreted under California law as if written by both parties. Any litigation arising from this Agreement will be brought in the Superior Court of San Bernardino County. 26. Integration: This Agreement represents the entire understanding of Omnitrans and Grand Terrace as to those matters contained herein and supersedes all prior negotiations, representations, or agreements, both written and oral. This Agreement may not be modified or altered except in accordance with Section 13. 27. Severability: If any term or provision of this Agreement or the application thereof to any person or circumstance will, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those to which it is invalid or unenforceable, will not be affected thereby, and each term and provision of this Agreement will be valid and will be enforced to the fullest extent permitted by law, unless the exclusion of such term or provision, or the application of such term or provision, would result in such a material change so as to cause completion of the obligations contemplated herein to be unreasonable. E.6.e Packet Pg. 156 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 8 28. Headings: The headings of the various sections of this Agreement are intended solely for convenience of reference and are not intended to explain, modify, or place any interpretation upon any of the provisions of this Agreement. 29. Authority: Each person signing this Agreement on behalf of a party hereby certifies, represents, and warrants that he or she has the authority to bind that party to the terms and conditions of this Agreement. 30. Ownership; Permission: Omnitrans represents and warrants that all materials used in the performance of the Project work, including, without limitation, all computer software materials and all written materials, are either produced or owned by Grand Terrace or that all required permissions and license agreements have been obtained and paid for by Grand Terrace. Grand Terrace will defend, indemnify and hold harmless Omnitrans and its directors, officers, employees, and agents from any claim, loss, damage, cost, liability, or expense to the extent of any violation or falsity of the foregoing representation and warranty. 31. Counterparts: This Agreement may be executed in multiple counterparts, each of which will constitute an original, and all of which taken together will constitute one and the same instrument. 32. Press Releases: Grand Terrace will obtain Omnitrans' prior written approval of any press releases, or other public outreach materials, that include any reference to Omnitrans or depiction of the Omnitrans logo. IN WITNESS WHEREOF, the PARTIES hereto have executed this Agreement, as of the date first appearing above. By: _________________________ ___________________________ Erin Rogers Konrad Bolowich CEO/General Manager City Manager Omnitrans City of Grand Terrace E.6.e Packet Pg. 157 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 9 Approved as to form: _________________________ _____________________________ Omnitrans Legal Counsel Legal Counsel of Grand Terrace E.6.e Packet Pg. 158 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 10 EXHIBIT A Project Narrative The original function of the Senior Transportation Program was to provide senior residents transportation to the Senior Center for lunch, which since COVID is being served weekly via frozen meals. Senior residents can schedule their pickup to the Senior Center for scheduled activities, or to travel to the pre-scheduled bus destination for that day and receive a return ride home. Pre-scheduled destinations include daily trips to nearby shopping, restaurants, bank visits, doctors' visits, or special excursions to nearby entertainment. Shopping destinations include visits to Colton’s Citrus Plaza, Ross, the 99 Cents Store, Wal-Mart, Target, and CVS/Walgreens. Restaurant visits include trips to local destinations such as Thai Kitchen, Woody’s Grill or Odalberto’s. Special excursions are also regularly planned have included trips to the movies, Redlands Bowl, or local theatrical presentations. Since COVID-19, bus trips have slowly expanded to the local pharmacies, local restaurants (to pick up food to go) and trips to the Veterans Affairs (VA) hospital in Loma Linda. Ridership has increased from 4-5 passengers per trip to average of 24 daily rides. E.6.e Packet Pg. 159 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 11 EXHIBIT B Project Budget E.6.e Packet Pg. 160 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) 12 E.6.e Packet Pg. 161 At t a c h m e n t : G r a n d T e r r a c e F Y 2 3 - F Y 2 4 A g r e e m e n t ( F u n d i n g A g r e e m e n t B e t w e e n O m n i t r a n s a n d t h e C i t y o f G r a n d T e r r a c e ) AGENDA REPORT MEETING DATE: June 28, 2022 Council Item TITLE: Amendment No. 9 to the Waste Disposal Agreement Between the City of Grand Terrace and the County of San Bernardino PRESENTED BY: Shanita Tillman, Management Analyst RECOMMENDATION: 1) Adopt a RESOLUTION OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING AMENDMENT NO. 9, TO THE WASTE DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF GRAND TERRACE; and 2) Authorize the Mayor to Sign the Amendment No. 9 subject to City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports Goal #4 develop and implement successful partnerships. BACKGROUND: In 1998 the City of Grand Terrace entered into a Waste Disposal Agreement (WDA) with the County of San Bernardino (County), obligating the City to deliver all controllable waste to the San Timoteo Landfill for 15 years and obligating the County to provide capacity for that waste at the lowest tipping fee rate. A total of 18 cities in the County became signatories to identical agreements. The Original WDA has been amended several times to extend the term of the Agreement; increase allowable tonnage and revise the rates. The most recent amendment was Amendment No. 8, approved by the City Council in 2021 to reset the WDA Contract Rate and extended the term for five (5) years to June 30, 2026. The County holds an annual meeting to discuss the financial statement for the County landfill system and include language for sharing the net revenue of In-County Non- WDA waste generated based on the revenue sharing formula in Section 8.4 of Amendment No. 7. DISCUSSION: This year, the County recommended a 14.23% increase in rates to a base rate of $43.41 per ton. This pricing model shifted costs away gate rates to WDA Cities. The City managers of the WDA signatory Cities declined to forward the increased rates to their councils for approval. There were subsequent discussions between the City Managers and the County CAO. E.7 Packet Pg. 162 As the result of these discussions between the County of San Bernardino’s Department of Public Works Staff, County CAO, and other WDA cities, there has been a mutual agreement on behalf of all parties to recommend amending the current WDA contract to cap the WDA Contract Rate in order to maintain a 15% buffer between the WDA Contract Rate and the County’s posted gate rate. This change will assist both the City and the County in planning for future fiscal years’ budgeting of solid waste disposal services and costs by putting a mechanism in place for the future to prevent compaction with the County’s posted gate rate. In exchange, a clause for City Convenience Termination was added to the agreement to commit the City to the WDA for the remainder of the term with no provision to terminate without cause. The latest proposed tonnage rate effective July 1, 2022, payable by each Franchise Hauler is $40.75 per ton. County staff has requested that the 18 cities/towns present the WDA Amendment No. 9 to each respective Council for review and approval. Amendment No. 9 shall be effective if and only when all 18 cities/towns have each adopted and executed said amendment and such amendment has been adopted and executed by the County on or before June 30, 2022. FISCAL IMPACT: A positive fiscal impact could be realized, as County provides WDA cities with a lower disposal rate per ton for their guaranteed waste. The County will also share revenue gained from additional tonnage from In-County Non-WDA cities that pay a higher rate per ton. The more tons landfilled, the lower the incremental costs. The County will share revenue gained from additional waste disposed at a lower incremental cost. Shared revenue will be deposited into Fund 10 (General Fund) ATTACHMENTS: • 2022-xx CC Reso - SB County Waste Amend No. 9 (DOCX) • Original SBCOWDA - 1998 (PDF) • AGR-PW-Waste 6-28-22 Grand Terrace WDA Amend 9 (DOCX) APPROVALS: Shanita Tillman Completed 06/16/2022 5:08 PM City Manager Completed 06/22/2022 11:45 AM City Council Pending 06/28/2022 6:00 PM E.7 Packet Pg. 163 RESOLUTION 2022-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA ADOPTING AMENDMENT NO. 9 TO THE WASTE DISPOSAL AGREEMENT BETWEEN THE COUNTY OF SAN BERNARDINO AND THE CITY OF GRAND TERRACE. RECITALS WHEREAS, on February 24, 1998 the City of Grand Terrace (“City”) and the County of San Bernardino (“County”) entered into a Waste Disposal Agreement (“WDA”); and WHEREAS, in April 2016, fifteen (15) WDA cities met and determined it was in their best interest to change the termination date of the Agreement to expire on June 30, 2021; and WHEREAS, on June 8, 2021, the City Council approved Amendment No. 8, extending the termination date of the WDA to June 30, 2026; and WHEREAS, the parties have determined it is now in their best interests to cap the WDA Contract Rate in order to maintain a 15% buffer between the WDA Contract Rate and the County’s posted gate rate; and WHEREAS, the parties have determined it is in their best interests to apply the $40.75 per ton subject to potential adjustment necessary to reflect the circumstances set forth below: (i) increased costs incurred by the County (in excess of available insurance proceeds) due to the occurrence of one or more Uncontrollable Circumstances, including Changes in Law; and (ii) escalation during the Term of this Agreement calculated in accordance with Section 4.2(B). In no case will the calculation of escalation exceed 85% of the County approved general public gate rate (currently $59.94 minus the current CDSDP recycling fee of $12.00), as such fees may be amended. NOW THEREFORE, BE IT RESOLVED THAT CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, FIND AND ORDER AS FOLLOWS: Section 1. The City Council finds that all of the above recitals are true and correct and are incorporated herein by reference. Section 2. The City Council hereby approves Amendment No. 9 of the Waste E.7.a Packet Pg. 164 At t a c h m e n t : 2 0 2 2 - x x C C R e s o - S B C o u n t y W a s t e A m e n d N o . 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) Disposal Agreement between the County of San Bernardino and the City of Grand Terrace, as attached hereto as Exhibit A, and authorizes the Mayor to execute the amendment subject to City Attorney approval as to form. E.7.a Packet Pg. 165 At t a c h m e n t : 2 0 2 2 - x x C C R e s o - S B C o u n t y W a s t e A m e n d N o . 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 28th day of June 2022. _____________________________ Darcy McNaboe, Mayor ATTEST: _____________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: _____________________________ Adrian R. Guerra City Attorney E.7.a Packet Pg. 166 At t a c h m e n t : 2 0 2 2 - x x C C R e s o - S B C o u n t y W a s t e A m e n d N o . 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) Exhibit A (Waste Delivery Agreement – Amendment No. 9) E.7.a Packet Pg. 167 At t a c h m e n t : 2 0 2 2 - x x C C R e s o - S B C o u n t y W a s t e A m e n d N o . 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) Record of Action of the Board of Supervisors AGREEMENT NO. 98-107 APPROVED BOARD OF SUPERVISORS COUNTY OF SAN BERNARDINO ABSENT -t.:- AYE -1 COND 1 fl ‘i-- 2 -,1 3..p ck PROAT, C f.) "nu. fir DATED : Feb a 24, MOTION EARLE BY ;Dv MOVE AYE 4 5 ITEM 048 REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS OF SAN BERNARDINO COUNTY, CALIFORNIA AND RECORD OF ACTION Agree. 98-107 February 24, 1998 FROM: GERRY NEWCOMBE, Contract Administrator Public Services Group, Waste System Division SUBJECT: WASTE DELIVERY AGREEMENT BETWEEN THE COUNTY AND THE CITY OF GRAND TERRACE RECOMMENDATION: Approve 15 year Waste Delivery Agreement (WDA) with the City of Grand Terrace for use of the County landfill system. BACKGROUND INFORMATION: On November 4, 1997, the Board approved a standard WDA and directed staff to present the agreement for approval to the cities and return any signed agreements to the Board for final approval. The Grand Terrace City Council approved the WDA on January 15, 1998, and it is now being presented to the Board for final approval. Approval of the recommendation will execute the WDA whereby the City of Grand- Terrace is obligated to deliver all of its controllable waste to the Colton Landfill for 15 years, and the County is obligated to provide capacity for that waste at the Contract Rate. When WDA's representing 60 percent of the system tonnage of 1,390,000 tons (less the unincorporated tonnage which will be controlled by the County through franchise agreements) have been executed, it will be necessary to modify the compensation provisions in NORCAL's contract. Staff has met with NORCAL and reached agreement on the rationale for a revised compensation program that is consistent with the controls placed on the contract rate contained in the WDA's. The WSD will present the modified compensation program for Board consideration when the 60 percent threshold is within reach. Prior to reaching that threshold, the system can continue to function with the existing compensation program in place. REVIEW BY OTHERS: This item has been reviewed by Deputy County Counsel Robert L. Jocks on February 5, 1998. FINANCIAL IMPACT: This action will have no impact on the General Fund. The difference between the budgeted $33/ton tip fee and the $28.50/ton Contract Rate will reduce revenue in the FY 1997/98 Solid Waste Enterprise Fund. This reduction will be offset by a combination of expenditure reductions and new revenue sources. SUPERVISORIAL DISTRICT(S): All PRESENTER: Gerry Newcombe Rev 07/97 cc: WSD--Newcombe w/agreement City of Grand Terrace w/agree. c/o WSD Auditor w/agreement Contract Compliance w/agree. EHS-Pamella Bennett Co. Counsel-Jocks w/agree. Risk Management PSG File w/agreement mll E.7.b Packet Pg. 168 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) County of San Bernardino F A S CONTRACT TRANSMITTAL FOR COUNTY USE ONLY w 2 xl X New _ Change Cancel Vendor Code Cr Dept. Contract Number 98-107 County Department Dept. Orgn. PSG-Waste System Division Contractor's License No. County Gerry Department Contract Representative Ph. Ext. Newcombe 1R6-8703 Amount of Contract Fund Dept. Organization Appr. Obj/Rev Source Activity GRC/PROJ/JOB Number Commodity Code Estimated Payment Total by Fiscal Year FY Amount I/O FY Amount I/D Project Name 15 Year Waste Delivery Agreement CONTRACTOR Birth Date Federal ID No. or Social Security No Contractor's Representative Thomas J. Schwab. City Manager Address 22795 Barton Road, Grand Terrace CA 92313 Phone (909) 824-6621 Nature of Contract: (Briefly describe the general terms of the contract) A 15 year Waste Delivery Agreement between the County and the City of Grand Terrace for use of the County landfill system, February 24, 1998 to December 31, 2012. City of Grand Terrace (Attach this transmittal to all contracts not prepared on the "Standard Contract" form.) Approved as to Legal Form lb' See Agreement - Page 31 County Counsel Date Reviewed as to Affirmative Action Reviewed for Processing Agency Administrator/CAO Date Date 02-12294-000 Rev. 11/90 E.7.b Packet Pg. 169 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) EXECUTION COPY WASTE DISPOSAL AGREEMENT Between THE COUNTY OF SAN BERNARDINO, CALIFORNIA and THE CITY OF GRAND TERRACE Dated: February 24, 1998 County Authorization Date: February 24, 1998 County Notice Address: Gerry Newcombe, Contract Administrator Waste System Division 222 W. Hospitality Lane, 2nd Floor San Bernardino, California 92415-0017 City Authorization Date: /*January , 1998 City Notice Address: Thomas Schwab, City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 E.7.b Packet Pg. 170 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) TABLE OF CONTENTS Page RECITALS 1 ARTICLE I DEFINITIONS AND INTERPRETATION 3 SECTION 1.1. DEFINITIONS 3 SECTION 1.2. INTERPRETATION 8 ARTICLE II REPRESENTATIONS AND WARRANTIES 10 SECTION 2.1. REPRESENTATIONS AND WARRANTIES OF THE CITY 1 0 SECTION 2.2. REPRESENTATIONS AND WARRANTIES OF THE COUNTY 10 ARTICLE III DELIVERY AND ACCEPTANCE OF WASTE AND PROVISION OF DISPOSAL SERVICE 12 SECTION 3.1. DELIVERY OF WASTE 12 SECTION 3.2. PROVISION OF DISPOSAL SERVICES BY THE COUNTY 16 SECTION 3.3. COUNTY RIGHT TO REFUSE WASTE 17 SECTION 3.4. MISCELLANEOUS OPERATIONAL MATTERS 18 SECTION 3.5. OTHER USERS OF THE DISPOSAL SYSTEM 18 SECTION 3.6. COUNTY PROVISION OF WASTE DIVERSION SERVICES 19 ARTICLE IV CONTRACT RATE 20 SECTION 4.1. CHARGING AND SECURING PAYMENT OF CONTRACT RATE 20 SECTION 4.2. CONTRACT RATE 20 SECTION 4.3. RESPONSIBILITY FOR PAYMENT OF THE CONTRACT 22 SECTION 4.4. BILLING OF THE CONTRACT RATE 23 SECTION 4.5. SOLID WASTE DISPOSAL FEE OPTION 23 ARTICLE V BREACH, ENFORCEMENT AND TERMINATION 24 SECTION 5.1. BREACH: REMEDIES 24 SECTION 5.2. CITY CONVENIENCE TERMINATION 24 SECTION 5.3. TERMINATION 24 SECTION 5.4. NO WAIVERS 25 SECTION 5.5 DAMAGES 25 SECTION 5.6. FORUM FOR DISPUTE RESOLUTION 25 ARTICLE VI TERM 26 SECTION 6.1. EFFECTIVE DATE AND TERM 26 ARTICLE VII GENERAL PROVISIONS 27 SECTION 7.1. OPERATION AND MAINTENANCE OF THE DISPOSAL SYSTEM 27 SECTION 7.2. UNCONTROLLABLE CIRCUMSTANCES GENERALLY 27 SECTION 7.3. INDEMNIFICATION 27 SECTION 7.4. RELATIONSHIP OF THE PARTIES 28 SECTION 7.5. LIMITED RECOURSE 28 SECTION 7.6. PRE-EXISTING RIGHTS AND LIABILITIES 29 SECTION 7.7. NO VESTED RIGHTS 29 E.7.b Packet Pg. 171 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) SECTION 7.8. LIABILITY FOR COLLECTION, TRANSPORTATION AND PROCESSING 29 SECTION 7.9. NO CONSEOUENTIAL OR PUNITIVE DAMAGES 29 SECTION 7.10. AMENDMENTS 29 SECTION 7.11. NOTICE OF LITIGATION 29 SECTION 7.12. FURTHER ASSURANCES 29 SECTION 7.13. ASSIGNMENT OF AGREEMENT 29 SECTION 7.14. INTEREST ON OVERDUE OBLIGATIONS 29 SECTION 7.15. BINDING EFFECT 30 SECTION 7.16. NOTICES 30 APPENDIX 1 DESIGNATED DISPOSAL FACILITY APPENDIX 2 FORM OF HAULER ACKNOWLEDGMENT [delete depending on city] E.7.b Packet Pg. 172 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) WASTE DISPOSAL AGREEMENT THIS WASTE DISPOSAL AGREEMENT is made and dated as of the date indicated on the cover page hereof between the County of San Bernardino, a political subdivision of the State of California (the "County"), and the City designated on the cover page of this Agreement, a general law or charter city and political subdivision of the State of California (the "City"). RECITALS The County owns, manages and operates a sanitary landfill system for the disposal of municipal solid waste generated in the unincorporated area within the County and which it has made available for the disposal of municipal solid waste generated within cities located within the County (the "Disposal System"). The Disposal System currently includes 12 active landfills and is expected to consist of five active landfills upon implementation of the Solid Waste Partnership Strategy and Implementation Plan. The Disposal System is used for the disposal of municipal solid waste which is not composted, reused, recycled, transformed or otherwise diverted from landfill disposal, pursuant to the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code). The Act, which mandates the diversion of 50% of waste from landfill disposal by 2000, has already reduced the volume of waste delivered to the landfills. The County wishes to enter into an agreement with the City to accept all of the City's municipal solid waste in the Disposal System for the term and subject to the provisions of this Agreement, and the City desires to use all legal and contractual powers it possesses to deliver or cause to be delivered the municipal solid waste generated within its boundaries to the Disposal System for the term of and subject to the provisions of this Agreement. The City, in the exercise of its police power and its powers under the Act, either (i) has entered into a franchise or other agreement with or issued permits or licenses to one or more private haulers for the collection and disposal of municipal solid waste generated within the City or (ii) collects municipal solid waste generated within the City in City owned and operated collection vehicles. The City has determined that the execution of this Agreement by the City will serve the public health, safety and welfare of the City by providing greater disposal rate stability, more predictable and reliable long-term disposal service, and the continuation of sound environmental management. The County has determined that the execution by the County of this Agreement will serve the public health, safety and welfare by providing a more stable, predictable and reliable supply of municipal solid waste and the resulting service payment revenue to the Disposal System, thereby enabling the County to plan, manage, operate and finance improvements to the Disposal System on a more prudent and sound long term, businesslike basis. Official action approving this Agreement and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the County on the County authorization date indicated on the cover page hereof. Official action approving this Agreement and determining it to be in the public interest and authorizing its execution and delivery was duly taken by the City on the City authorization date indicated on the cover page hereof. 1 E.7.b Packet Pg. 173 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) It is, therefore, agreed as follows: 2 E.7.b Packet Pg. 174 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) ARTICLE I DEFINITIONS AND INTERPRETATION SECTION 1.1. DEFINITIONS. As used in this Agreement, the following terms shall have the meanings set forth below. "Acceptable Waste" means all garbage, refuse, rubbish and other materials and substances discarded or rejected as being spent, useless, worthless or in excess to the owners at the time of such discard or rejection and which are normally disposed of by or collected from residential (single family and multi- family), commercial, industrial, governmental and institutional establishments which are acceptable at Class III landfills under Applicable Law (including, without limitation, the Legal Entitlements for each facility). "Act" means the California Integrated Waste Management Act of 1989 (Division 30 of the California Public Resources Code), as amended, supplemented, superseded and replaced from time to time. "Agreement" means this Waste Disposal Agreement between the County and the City as the same may be amended or modified from time to time in accordance herewith. "Appendix" means an appendix to this Agreement, as the same may be amended or modified from time to time in accordance with the terms hereof. "Applicable Law" means the Act, the San Bernardino County Code, CERCLA, RCRA, CEQA, any Legal Entitlement and any federal or state rule, regulation, requirement, guideline, permit, action, determination or order of any Governmental Body having jurisdiction, applicable from time to time to the siting, design, permitting, acquisition, construction, equipping, financing, ownership, possession, operation or maintenance of the Disposal System, the transfer, handling, transportation and disposal of Acceptable Waste, Unacceptable Waste, or any other transaction or matter contemplated hereby (including any of the foregoing which concern health, safety, fire, environmental protection, mitigation monitoring plans and building codes.). "Board" means the California Integrated Waste Management Board. "CEQA" means the California Environmental Quality Act, codified at Cal. Pub. Res. Code Section 21000 et seq. (West 1996) as amended or superseded, and the regulations promulgated thereunder. "CERCLA" means the Comprehensive Environmental Responsibility Compensation and Liability Act, 42 U.S.C.A. Section 9601 et seq. (West 1995 & Supp. 1996), as amended or superseded, and the regulations promulgated thereunder. "Change in Law" means any of the following events or conditions which has a material and adverse effect on the performance by the parties of their respective obligations under this Agreement (except for payment obligations), or on the siting, design, permitting, acquisition, construction, equipping, financing, ownership, possession, operation or maintenance of the Disposal System or other matters to which Applicable Law applies: (1) the enactment, adoption, promulgation, issuance, material modification or written change in administrative or judicial interpretation on or after the Commencement Date of any Applicable Law (other than Applicable Law enacted by the County); 3 E.7.b Packet Pg. 175 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) (2)the order or judgment of any Governmental Body (other than the County), on or after the Commencement Date, to the extent such order or judgment is not the result of willful or negligent action, error or omission or lack of reasonable diligence of the County or of the City, whichever is asserting the occurrence of a Change in Law; provided, however, that the contesting in good faith or the good faith decision not to contest any such order or judgment shall not constitute or be construed as such a willful or negligent action, error or omission or lack of reasonable diligence; or (3)the denial of an application for, delay in the review, issuance or renewal of, or suspension, termination, interruption, imposition of a new or more stringent condition in connection with the issuance, renewal or failure of issuance or renewal on or after the Commencement Date of any Legal Entitlement to the extent that such denial, delay, suspension, termination, interruption, imposition or failure materially and adversely interferes with the performance of this Agreement, if and to the extent that such denial, delay, suspension, termination, interruption, imposition or failure is not the result of willful or negligent action, error or omission or a lack of reasonable diligence of the County or of the City, whichever is asserting the occurrence of a Change in Law; provided, however that the contesting in good faith or the good faith decision not to contest any such denial, delay, suspension, termination, interruption, imposition or failure shall not be construed as such a willful or negligent action, error or omission or lack of reasonable diligence. "Change in Law" shall not include actions taken by Governmental Bodies to enforce requirements of Applicable Law. "City" means, as applicable, the city designated on the cover page of this Agreement and party to this Agreement. "City Acceptable Waste" means all Acceptable Waste which was originally discarded by the first generator thereof within the geographical limits of the City, and Residue from the foregoing (or Tonnage equivalencies of such Residues, as and to the extent provided in subsection 3.1(C) hereof). "Contract Date" means the date of delivery of this Agreement as executed by the parties hereto. "Contract Rate" has the meaning specified in Section 4.2 hereof. "Contract Year" means the fiscal year commencing on July 1 in any year and ending on June 30 of the following year. "Controllable Waste" means all City Acceptable Waste with respect to which the City has the legal or contractual ability to determine the disposal location therefor and which is: (1)Non-Diverted City Acceptable Waste; (2)not generated from the operations of the Governmental Bodies which, under Applicable Law, have the independent power to arrange for the disposal of the waste they generate (such as school districts and State correctional facilities); (3)not Residue excluded from the Waste Delivery Covenant pursuant to Section 3.1(C); (4)not inert materials, construction and demolition debris, green waste and other materials which can be disposed at landfills other than Class III landfills; and (5)collected and hauled by Franchise Haulers. 4 E.7.b Packet Pg. 176 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) "County" means the County of San Bernardino, a political subdivision of the State of California and party to this Agreement. "County Waste Management Enterprise Fund" means the waste management enterprise fund established and managed by the County pursuant to Section 25261 of the Government Code separate from its other funds and accounts for receipts and disbursements in connection with the Disposal System. "County-wide Recycling Services" has the meaning set forth in subsection 3.6(A) hereof. "Designated Disposal Facility" means the sanitary landfill or other facility operated by or for the County as part of the Disposal System which is designated in Appendix 1 hereto as the disposal location for Controllable Waste delivered to the County pursuant hereto as of the Commencement Date, or such other additional, alternate or replacement sanitary landfills or other disposal facilities as may be designated by the County as the Designated Disposal Facility (subject to the approval of the City) in accordance with Section 3.2 hereof. "Disposal Agreements" means each of the waste disposal agreements entered into between the County and any city within the County in accordance herewith. "Disposal Services" means the solid waste disposal services to be provided by the County pursuant to the Service Covenant and otherwise hereunder. "Disposal System" means all sanitary landfills and other solid waste transfer, transportation, storage, handling, processing and disposal facilities, now or at any time owned, leased, managed, operated by or under contract to the County for the acceptance, handling, processing and disposal of Acceptable Waste delivered by or on behalf of the City under this Agreement, including the Designated Disposal Facilities listed on Appendix 1 and any expansion thereof, all as more particularly described in the Solid Waste Partnership Strategy and Implementation Plan. "Disposal System Component" means any landfill, facility, structure, work, equipment, site or other real or personal property constituting a component part of the Disposal System. "Diverted City Acceptable Waste" means any otherwise Controllable Waste which is separated from Acceptable Waste by the generator thereof or by processing and which is "diverted" within the meaning of Section 40180 of the Public Resources Code. "Franchise Hauler" means any hauler or collector who provides Acceptable Waste collection services within the City pursuant to, or under authority granted by, a contract, franchise or other agreement with the City. The term Franchise Hauler includes the City itself if Acceptable Waste collection and transportation services are provided directly by City operated municipal collection service. "Governmental Body" means any federal, State, county, city or regional legislative, executive, judicial or other governmental board, agency, authority, committee, administration, court or other body, or any officer thereof acting within the scope of his or her authority. "Hazardous Substance" has the meaning given such term in the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq., CERCLA, and all future amendments to either of them or as defined by California statute or by the California Environmental Protection Agency or the California Integrated Waste Management Board, or any of them. 5 E.7.b Packet Pg. 177 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) "Hazardous Waste" means (a) any waste which by reason of its quality, concentration, composition or physical, chemical or infectious characteristics may do either of the following: cause, or significantly contribute to, an increase in mortality or an increase in serious irreversible, or incapacitating reversible, illness, or pose a substantial threat or potential hazard to human health or the environment, or any waste which is defined or regulated as a hazardous waste, toxic substance, hazardous chemical substance or mixture, or asbestos under Applicable Law, as amended from time to time including, but not limited to: (1) the Resource Conservation and Recovery Act and the regulations contained in 40 CFR Parts 260-281; (2) the Toxic Substances Control Act (15 U.S.C. Sections 2601 et seq.) and the regulations contained in 40 CFR Parts 761-766; (3) the California Health and Safety Code, Section 25117 (West 1992 & Supp. 1996); (4) the California Public Resources Code, Section 40141 (West 1996); (5) CERCLA and regulations promulgated thereunder and (6) future additional or substitute Applicable Law pertaining to the identification, treatment, storage or disposal of toxic substances or hazardous wastes; or (b) radioactive materials which are source, special nuclear or by-product material as defined by the Atomic Energy Act of 1954 (42 U.S.C. Section 2011 et sea.) and the regulations contained in 10 CFR Part 40. "Imported Acceptable Waste" means Acceptable Waste that is generated outside of the geographical boundaries of the County and delivered to the Disposal System. "In-County Processing Facility" means any Processing Facility located within the geographical boundaries of the County, whether owned and/or operated by the County, any city, or private operator. "Independent Haulers" means those waste collection/hauler companies primarily engaged as a principal business in the collection and transportation of municipal solid waste generated in the County of San Bernardino and not under a franchise or other contract with a city in the County. "Term" has the meaning specified in Section 6.1(A) hereof. "Legal Entitlement" means all permits, licenses, approvals, authorizations, consents and entitlements of whatever kind and however described which are required under Applicable Law to be obtained or maintained by any person with respect to the Disposal System or the performance of any obligation under this Agreement or the matters covered hereby. "Legal Proceeding" means every action, suit, litigation, arbitration, administrative proceeding, and other legal or equitable proceeding having a bearing upon this Agreement. "Loss-and-Expense" means any and all loss, liability, obligation, damage, delay, penalty, judgment, deposit, cost, expense, claim, demand, charge, tax, or expense, including all fees and costs. "Out-of-County Processing Facility" means a Processing Facility located outside the geographical boundaries of the County. "Non-Diverted City Acceptable Waste" means all City Acceptable Waste other than Diverted City Acceptable Waste. "Overdue Rate" means the post-judgment rate of interest specified by the laws of the State. "Processing Facility" means any materials recovery facility, composting facility, intermediate processing center, recycling center, incinerator or other waste management facility to which City Acceptable Waste is delivered for processing prior to disposal. 6 E.7.b Packet Pg. 178 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) "Prohibited Medical Waste" means any medical or infectious waste prohibited or restricted under Applicable Law from being received by or disposed at the Disposal System. "Qualified Household Hazardous Waste" means waste materials determined by the Board, the Department of Health Services, the State Water Resources Control Board, or the Air Resources Board to be: (1)Of a nature that they must be listed as hazardous in State statutes and regulations; (2)Toxic/ignitable/corrosive/reactive; and (3)Carcinogenic/mutagenic/teratogenic; which are discarded from households as opposed to businesses. Qualified Household Hazardous Waste shall not include Unacceptable Waste. "Residue" means any material remaining from the processing in permitted solid waste facilities or other facilities, by any means and to any extent, of City Acceptable Waste or Diverted City Acceptable Waste. "Resource Conservation and Recovery Act" or "RCRA" means the Resource Conservation and Recovery Act, 42 U.S.C.A. Section 6901 et seq. (West 1983 & Supp 1989), as amended and superseded. "Self-Hauled Waste" means City Acceptable Waste collected and hauled by Self-Haulers. "Self-Hauler" means any person not engaged commercially in waste haulage who collects and hauls Acceptable Waste generated from residential or business activities conducted by such person. "Service Covenant" means the covenants and agreements of the County set forth in Sections 3.2 and 3.3 hereof. "State" means the State of California. "Term" shall mean the Term of this Agreement specified in Section 6.1. "Ton" means a "short ton" of 2,000 pounds. "Transfer Station" means any transfer station or other waste handling or management facility to which solid waste collected for the City is delivered for transfer, processing or transformation before disposal in the Disposal System. "Unacceptable Waste" means Hazardous Waste; Hazardous Substances; Prohibited Medical Waste; Qualified Household Hazardous Waste separated from Acceptable Waste (or otherwise identified by the County in loads otherwise containing Acceptable Waste); explosives, ordnance, highly flammable substances, and noxious materials and lead-acid batteries (except if delivered in minimal quantities); drums and closed containers; liquid waste, oil, human wastes; machinery and equipment from commercial or industrial sources, such as hardened gears, shafts, motor vehicles or major components thereof, agricultural equipment, trailers, marine vessels and steel cable; hot loads; and any waste which the Disposal System is prohibited from receiving under Applicable Law. "Uncontrollable Circumstance" means any act, event or condition affecting the Disposal System, the County, the City, or any of their Franchise Haulers, contractors or suppliers to the extent that 7 E.7.b Packet Pg. 179 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) it materially and adversely affects the ability of either party to perform any obligation under the Agreement (except for payment obligations), if such act, event or condition is beyond the reasonable control and is not also the result of the willful or negligent act, error or omission or failure to exercise reasonable diligence on the part of the party relying thereon as justification for not performing an obligation or complying with any condition required of such party under the Agreement; provided, however, that the contesting in good faith or the good faith decision not to contest such action or inaction shall not be construed as willful or negligent action or a lack of reasonable diligence of either party. Examples of Uncontrollable Circumstances are: (1)an act of God, landslide, lightning, earthquake, fire, explosion, flood, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance; and (2)a Change in Law. It is specifically understood that none of the following acts or conditions shall constitute Uncontrollable Circumstances: (a) general economic conditions, interest or inflation rates, currency fluctuations or changes in the cost of fuel, the availability of commodities, supplies or equipment; (b) changes in the financial condition of the County, the City or any Subcontractor affecting their ability to perform their obligations; (c) the consequences of errors, neglect or omissions by the County, the City, or any Subcontractor of any tier in the performance of their obligations hereunder; (d) union work rules, requirements or demands which have the effect of increasing the number of employees employed in connection with the Disposal System or otherwise increase the cost to the County of operating and maintaining the Disposal System or providing the Disposal Services; (e) strikes, work stoppages or other labor disputes or disturbances occurring with respect to any activity performed or to be performed by the City or the County or any of the City's or County's Subcontractors in connection with the Disposal System or the Disposal Services; (1) any failure of any Subcontractor to furnish labor, materials, service or equipment for any reason (other than an Uncontrollable Circumstance); (g) equipment failure; (h) any impact of minimum wage law, prevailing wage law, customs or practices on the County's construction or operating costs; or (i) changing conditions in the local, regional, or national waste disposal market. "Unincorporated Area" means those portions of the County which are not contained within the jurisdictional boundaries of incorporated cities. "Waste Disposal Covenant" means the covenants and agreements of the City set forth in Section 3.1 hereof. SECTION 1.2. INTERPRETATION. In this Agreement, unless the context otherwise requires: (A)References Hereto. The terms "hereby", "hereof', "herein", "hereunder" and any similar terms are references to this Agreement, and the term "hereafter" means after, and the term "heretofore" means before, the Contract Date. (B)Gender and Plurality. Words of the masculine gender mean and include correlative words of the feminine and neuter genders and words importing the singular number mean and include the plural number and vice versa. (C)Persons. Words importing persons include firms, companies, associations, general partnerships, limited partnerships, trusts, business trusts, corporations and other legal entities, including public bodies, as well as individuals. 8 E.7.b Packet Pg. 180 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) (D)Headings. The table of contents and any headings preceding the text of the Articles, Sections and subsections of this Agreement shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect. (E)Entire Agreement. This Agreement contains the entire agreement between the parties hereto with respect to the transactions contemplated by this Agreement and, except as expressly provided otherwise herein, nothing in this Agreement is intended to confer on haulers or any other person other than the parties hereto and their respective permitted successors and assigns hereunder any rights or remedies under or by reason of this Agreement. (F)Counterparts. This Agreement may be executed in any number of original counterparts. All such counterparts shall constitute but one and the same Agreement. (G)Applicable Law. This Agreement shall be governed by and construed in accordance with the Applicable Laws of the State of California. (H)Accounting Terms. All accounting terms used but not specifically defined herein shall be construed in accordance with, all accounting determinations hereunder to be made shall be prepared in accordance with generally acceptable accounting principles applied on a consistent basis. (I)Severability. If any clause, provision, subsection, Section or Article of this Agreement shall be ruled invalid by any court of jurisdiction, then the parties shall: (1) promptly meet and negotiate a substitute for such clause, provision, subsection, Section or Article which shall, to the greatest extent legally permissible, effect the intent of the parties therein; (2) if necessary or desirable to accomplish item (1) above, apply to the court having declared such invalidity for a judicial construction of the invalidated portion of this Agreement; and (3) negotiate such changes in, substitutions for or additions to the remaining provisions of this Agreement as may be necessary in addition to and in conjunction with items (1) and (2) above to effect the intent of the parties in the invalid provision. The invalidity of such clause, provision, subsection, Section or Article shall not affect any of the remaining provisions hereof, and this Agreement shall be construed and enforced as if such invalid portion did not exist, unless such invalidity frustrates the underlying primary purpose of the Agreement. (J)Integration. This Agreement contains the entire agreement between the parties with respect to the transactions contemplated hereby. This Agreement shall completely and fully supersede all prior understandings and agreements between the Parties with respect to such transactions. (K)Recitals. The recitals to this Agreement are not intended to bind the parties hereto. In the event of a conflict between the recitals and the operative provisions of this Agreement, the operative provisions shall prevail. The recitals shall not be used to interpret the provisions of the Agreement. 9 E.7.b Packet Pg. 181 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) ARTICLE II REPRESENTATIONS AND WARRANTIES SECTION 2.1. REPRESENTATIONS AND WARRANTIES OF THE CITY. The City represents and warrants that: (A)Existence. The City is a general law or charter city validly existing under the Constitution and laws of the State. (B)Due Authorization. The City has duly authorized the execution and delivery of this Agreement, and this Agreement has been duly executed and delivered by the City. (C)No Conflict. Neither the execution nor the delivery by the City of this Agreement nor the performance by the City of its obligations hereunder nor the consummation by the City of the transactions contemplated hereby (1) conflicts with, violates or results in a breach of any Applicable Law or (2) conflicts with, violates or results in a breach of any term or conditions of any contract, agreement, franchise, judgment, instrument or decree to which the City is a party or by which the City or any of its properties or assets are bound, or constitutes a default under any such contract, franchise, judgment, decree, agreement or instrument. (D)No Litigation. There is no action, suit or other proceeding, at law or equity, before or by any court or Governmental Body pending or, to the City's best knowledge, threatened against the City in which an unfavorable decision, ruling or finding which would materially and adversely affect the validity of or enforceability of this Agreement or any other agreement or instrument to be entered into by the City in connection with the transactions contemplated hereby, or which would materially and adversely affect the performance by the City of its obligations hereunder or under any such other agreement or instrument. SECTION 2.2. REPRESENTATIONS AND WARRANTIES OF THE COUNTY. The County represents and warrants that: (A)Existence. The County is a political subdivision of the State of California validly existing under the Constitution and laws of the State. (B)Due Authorization. The County has duly authorized the execution and delivery of this Agreement, and this Agreement has been duly executed and delivered by the County. (C)No Conflict. Neither the execution nor the delivery by the County of this Agreement nor the performance by the County of its obligations hereunder nor the consummation by the County of the transactions contemplated hereby (1) conflicts with, violates or results in a breach of any Applicable Law or (2) conflicts with, violates or results in a breach of any term or conditions of any contract, agreement, franchise, judgment, instrument or decree to which the County is a party or by which the County or any of its properties or assets are bound, or constitutes a default under any such contract, franchise, judgment, decree, agreement or instrument. (D)No Litigation. There is no action, suit or other proceeding, at law or equity, before or by any court or Governmental Body pending or, to the County's best knowledge, threatened against the County in which an unfavorable decision, ruling or finding which would materially and adversely affect the validity of or enforceability of this Agreement or any other agreement or instrument to be entered into by the County in connection with the transactions contemplated hereby, or which would materially and 1 0 E.7.b Packet Pg. 182 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) adversely affect the performance by the County of its obligations hereunder or under any such other agreement or instrument. 11 E.7.b Packet Pg. 183 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) ARTICLE III DELIVERY AND ACCEPTANCE OF WASTE AND PROVISION OF DISPOSAL SERVICE SECTION 3.1. DELIVERY OF WASTE. (A) Waste Disposal Covenant. Subject to the occurrence of the Commencement Date and throughout the Term of this Agreement, the City shall exercise all legal and contractual power and authority which it may possess from time to time to deliver or cause the delivery of all Controllable Waste to the Disposal System in accordance herewith beginning on January 1, 1998. (B) Diverted City Acceptable Waste. The parties hereto acknowledge the responsibility of the City to meet the recycling and landfill diversion goals contained in the Act. Nothing in this Agreement is intended or shall be interpreted to prohibit or impair the ability of the City to meet or exceed such responsibilities, or to restrict the right of the residents, businesses or organizations in the City to practice source separation, source reduction, recycling, composting or other materials recovery activities, or to restrict the right of the City to conduct, sponsor, encourage or require such activities in any form. No reduction in the amount of Controllable Waste generated in the City and delivered to the Disposal System by or on behalf of the City which may result from any such source separation or recycling program (whether or not such program meets or exceeds the diversion requirements of the Act) shall cause the City any liability hereunder and shall not constitute a breach of this Agreement. [SECTION TO BE USED IF ALL WASTE CURRENTLY STAYS WITHIN COUNTY] (C) Waste Delivered to Transfer Station or Processing Facilities. Subject to the provisions of this Section, all Residue from any processing of Controllable Waste by materials recovery, composting, recycling or other means, performed at In-County Processing Facilities or Out-of-County Processing Facilities shall constitute Controllable Waste and be subject to the Waste Disposal Covenant. The County specifically acknowledges that the City shall have the right to deliver or cause the delivery of City Acceptable Waste to Out-of-County Processing Facilities, and that the City is not obligated to require that Residue from such Out-of-County Processing Facilities be delivered to the Disposal System, after final processing or re-processing of such Residue as long as such Residue from Out-of-County Processing Facilities does not exceed, in any Contract Year, the lesser of (i) 40% of the amount of City Acceptable Waste delivered to such Out-of-County Processing Facility in such Contract Year or (ii) 2% of the total amount of Controllable Waste generated in the City during such Contract Year. To the extent that Residue from the processing of Controllable Waste exceeds the amount specified in the preceding sentence, the City shall exercise all legal and contractual authority which it may possess from time to time to require that such excess Residue be delivered to the Disposal System, and shall include a requirement to that effect in any contracts, agreements or other arrangements for processing at Out-of-County Processing Facilities which it enters into or amends after the Contract Date. Where City Acceptable Waste is processed at an In-County or Out-of-County Processing Facility which concurrently processes other Acceptable Waste in a manner which produces commingled residue which cannot be traced to a geographic source, generic residues from such Processing Facility in Tonnage equal to the residues that would have been produced had City Acceptable Waste only been processed at the facility shall constitute Controllable Waste and be subject to the Waste Disposal Covenant (subject to the exclusion from Controllable Waste of the amounts of Residue from Out-of-County Processing Facilities specified in this Section 3.1(C).) Such generic residues shall be delivered to the Disposal System regularly, in approximately the same frequency as deliveries of City Acceptable Waste to the Processing Facility. (In making any determination of Residue attributable to the City, the City may rely on the reports or certifications of the owner or operator of the Transfer Station or Processing Facility.) [FOLLOWING SECTION TO BE USED IF WASTE CURRENTLY PROCESSED OUT-OF- COUNTY] 12 E.7.b Packet Pg. 184 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) (C) Waste Delivered to Transfer Station or Processing Facilities. Subject to the provisions of this Section, all Residue from any processing of Controllable Waste by materials recovery, composting, recycling or other means, performed at In-County Processing Facilities or Out-of-County Processing Facilities shall constitute Controllable Waste and be subject to the Waste Disposal Covenant. The County acknowledges that a portion of Controllable Waste, (i) the subject of a franchise, contract or other agreement which provides for the processing of such portion of Controllable Waste at an Out-of-County Processing Facility and (ii) was, as of July 1, 1997, and is, as of the Contract Date being actually delivered to an Out-of County Processing Facility pursuant to such franchise, contract or other agreement. With respect to the portion of Controllable Waste which is subject to the franchise, contract or other agreement described in this Section the City is not obligated to require that Residue from such Out-of-County Processing Facilities be delivered to the Disposal System, after final processing or re-processing of such Residue as long as such Residue from Out-of-County Processing Facilities does not exceed, in any Contract Year, the lesser of (i) 40% of the amount of City Acceptable Waste delivered to such Out-of-County Processing Facility in such Contract Year or (ii) 7% of the total amount of Controllable Waste generated in the City during such Contract Year. However, the City agrees that upon the expiration date of such franchise, contract or agreement (as such expiration date exists as of the Contract Date, without any renewal, amendment or modification thereof) the City will not be obligated to require that Residue from such Out-of-County Processing Facilities be delivered to the Disposal System, after final processing or re-processing of such Residue as long as such Residue from Out-of-County Processing Facilities does not exceed, in any Contract Year, the lesser of (i) 40% of the amount of City Acceptable Waste delivered to such Out-of-County Processing Facility in such Contract Year or (ii) 2% of the total amount of Controllable Waste generated in the City during such Contract Year To the extent that Residue from the processing of Controllable Waste exceeds the amount specified in this Section, the City shall exercise all legal and contractual authority which it may possess from to time to time to require that such excess Residue be delivered to the Disposal System, and shall include a requirement to that effect in any contracts, agreements or other arrangements for processing at Out-of-County Processing Facilities which it enters into or amends after the Contract Date. Where City Acceptable Waste is processed at an In-County or Out-of-County Processing Facility which concurrently processes other Acceptable Waste in a manner which produces commingled residue which cannot be traced to a geographic source, generic residues from such Processing Facility in Tonnage equal to the residues that would have been produced had City Acceptable Waste only been processed at the facility shall constitute Controllable Waste and be subject to the Waste Disposal Covenant (subject to the exclusion from Controllable Waste of the amounts of Residue from Out-of-County Processing Facilities specified this Section 3.1(C).) Such generic residues shall be delivered to the Disposal System regularly, in approximately the same frequency as deliveries of City Acceptable Waste to the Processing Facility. (In making any determination of Residue attributable to the City, the City may rely on the reports or certifications of the owner or operator of the Transfer Station or Processing Facility.) (D) Power to Obligate Waste Disposal and Comply with this Agreement. On or before January 1, 1998, (i) any City franchise, contract, lease, or other agreement which is lawfully in effect relating to or affecting Controllable Waste shall provide, or shall have been amended to provide, that the City shall have the right without material restriction on and after the January 1, 1998 to direct the delivery of all Controllable Waste to a disposal location selected by the City (whether or not such Controllable Waste is delivered to a transfer station as an intermediate step prior to landfill disposal) and otherwise to comply with its obligations under this Agreement with respect to Controllable Waste and Franchise Haulers, (ii) the City shall designate the Designated Disposal Site as the disposal location pursuant to such franchise, contract, lease or other agreement and (iii) the City's Franchise Hauler shall execute the Hauler Acknowledgment attached hereto as Appendix 2, pursuant to which the Franchise Hauler acknowledges the City's execution of this Agreement, and agrees to comply with the Waste Disposal Covenant. Throughout the Term of this Agreement the City (a) shall not enter into any franchise, contract, lease, agreement or obligation, issue any permit, license or approval, or adopt any ordinance, resolution or law which is materially inconsistent with 13 E.7.b Packet Pg. 185 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) the requirements of the Waste Disposal Covenant, and (b) shall maintain non-exclusive or exclusive franchises or other contractual arrangements (or collection through City owned and operated collection services) over any City Acceptable Waste which, as of the Contract Date, is subject to non-exclusive or exclusive franchise or other contractual arrangements. The City agrees that the County shall be a third party beneficiary of the obligation of Franchise Haulers to deliver Controllable Waste to the Disposal System, and may directly enforce such obligation through any legal or means available; provided, however, that such designation of the County as a third party beneficiary does not relieve the City of its obligations hereunder to enforce the waste delivery obligation of the Franchise Haulers. The City shall notify in writing each Franchise Hauler of the County's third party beneficiary rights. (E)Waste Flow Enforcement. The City, in cooperation with the County, shall establish, implement, carry out and enforce a waste flow enforcement program which is sufficient to assure the delivery of all Controllable Waste to the Disposal System pursuant to and in accordance with the Waste Disposal Covenant for disposal at the times and in the manner provided herein. The waste flow enforcement program shall consist of amending City franchises with all Franchise Haulers, to the extent required by this Section, and shall include in addition, to the extent necessary and appropriate in the circumstances to assure compliance with the Waste Disposal Covenant, but shall not be limited to: (1) licensing or permitting Franchise Haulers, upon the condition of compliance with the Waste Disposal Covenant, (2) providing for and taking appropriate enforcement action under any such franchise, license, or permit, such as but not limited to the suspension, revocation and termination of collection rights and privileges, the imposition of fines or collection of damages, and the exercise of injunctive relief against non-complying Franchise Haulers and (3) causing any Transfer Station to which Controllable Waste is delivered for processing to deliver certification, under the penalty of perjury, of the amounts of Controllable Waste received and Residue remaining from processing at such Transfer Station. The City acknowledges and agrees that in the event of a breach of the Waste Disposal Covenant by the City, the City shall pay the County an amount equal to 100% multiplied by the Contract Rate in effect at the time of such breach multiplied by the number of tons of Controllable Waste which were not delivered to the Disposal System as a result of the failure of the City to comply with the Waste Disposal Covenant. The parties recognize that if the City fails to meet its obligations hereunder, the County will suffer damages and that it is and will be impracticable and extremely difficult to ascertain and determine the exact amount of such damages. Therefore, the parties agree that the damages specified above represent a reasonable estimate of the amount of such damages, considering all of the circumstances existing on the date hereto, including the relationship of the sums to the range of harm to the County that reasonably could be anticipated and anticipation that proof of actual damages would be costly or inconvenient. In signing this Agreement, each party specifically confirms the accuracy of the statements made above and the fact that each party had ample opportunity to consult with legal counsel and obtain an explanation of this liquidated damage provision at the time that this Agreement was made. (F)Legal Challenges to Franchise System. The City shall use its best efforts to preserve, protect and defend (by diligent pursuit of claims through the trial court level) its right to exercise and comply with the Waste Disposal Covenant against any challenge thereto, legal or otherwise (including any lawsuits against the City or the County, whether as plaintiff or defendant), by a Franchise Hauler or any other person, based upon breach of contract, violation of law or any other legal theory. The City shall bear the cost and expense of any such Legal Proceeding or other challenge. In the event any such Legal Proceeding relating to the Waste Disposal Covenant or the City's exercise thereof establishes in a final determination that such covenant or exercise thereof is void, unlawful or unenforceable, or if any Franchise Hauler fails to deliver Controllable Waste to the Disposal System in breach of its franchise with the City on the grounds that a judicial determination made by any court or other Applicable Law has rendered its obligation to deliver Controllable Waste to the Disposal System void, unlawful or unenforceable on any legal grounds, with the result that actual waste deliveries of the City's Controllable Waste to the Disposal System in any Contract Year fall below 93% of the amount of the City's Controllable Waste delivered to the 14 E.7.b Packet Pg. 186 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) Disposal System during the preceding Contract Year, the County shall be entitled to terminate this Agreement upon 60 days prior written notice to the City. Such right of the County to terminate must be exercised within one year of the end of the Contract Year during which the delivery shortfalls described in this Section giving rise to the right to terminate occurred. Upon any termination by the County pursuant to the provisions of this Section, the obligations of the County pursuant to Section 7.3 hereof shall not apply to any Loss-and-Expense of the City which may arise from deliveries of waste to the Disposal System after such date of termination. (G)Franchise Haulers. The City shall compile and provide the County with the following information concerning all Franchise Haulers: name, address and phone number; identification number; area of collection and transportation; and franchise and permit terms. (H)Waste Information System. The City shall cooperate with the County in collecting information and otherwise monitoring Franchise Haulers in order to assure compliance with this Agreement. Such information may include, to the extent practicable, data pertaining to Controllable Waste collected, transported, stored, processed and disposed of Diverted City Acceptable Waste collected, transported, stored, processed and marketed or disposed of; Franchise Haulers' franchise, permit or license terms, collection areas, transportation routes and compliance with Applicable Law; and all other information which may reasonably be required by the County in connection with this Agreement. (I)City Actions Affecting County. The City agrees not to conduct any disposal services for Controllable Waste to be provided in competition with the Disposal Services provided by the County hereunder, and not to take or omit to take any action with respect to Controllable Waste or its collection, transportation, transfer, storage, treatment or disposal that may materially and adversely affect the County's ability to achieve such timely compliance. The County acknowledges that development by the City (or cooperation by the City in connection with the private development of) any materials recovery facility or transfer station located within or without the City shall not violate the provisions of this section as long as the ultimate disposal site for any Controllable Waste (or Residue therefrom) which is delivered to such materials recovery facility or transfer station is the Disposal System. Notwithstanding the foregoing, the City shall not be required to (i) approve or deny any permit or license or grant or refuse to grant any approval while exercising its police powers or (ii) waive, modify or otherwise limit in any manner the City's land use authority. No Right of Waste Substitution. Nothing in this Agreement shall authorize or entitle the City to deliver or cause the delivery to the Disposal System of Acceptable Waste originating from or generated outside the jurisdiction of the City, nor obligate the County to receive or dispose of any such Acceptable Waste. The City shall not assign in whole or in part its right to deliver or cause to be delivered Controllable Waste to the County hereunder, and shall not permit any Acceptable Waste originating from or generated outside the jurisdiction of the City to be substituted for Controllable Waste for any purpose hereunder. (K) Annexations and Restructuring. It is the intention of the parties that this Agreement and the obligations and rights of the City hereunder, including particularly the Waste Disposal Covenant and the Contract Rate, shall, to the extent permitted by Applicable Law (and subject to any rights of waste haulers operating in such areas prior to such annexation ), extend to any territory annexed by the City (or any territory with respect to which the City assumes solid waste management responsibility from a sanitary district or other public entity) and shall bind any successor or restructured Governmental Body which shall assume or succeed to the rights of the City under Applicable Law. 15 E.7.b Packet Pg. 187 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) SECTION 3.2. PROVISION OF DISPOSAL SERVICES BY THE COUNTY. (A) Service Covenant. Commencing January 1, 1998, the County shall provide or cause the provision of the service of (1) receiving and disposing of all Controllable Waste at the Designated Disposal Facility, (2) disposing in accordance with subsection 3.2(C) hereof of Controllable Waste which, at any time and for any reason, is in excess of the disposal capacity of the Designated Disposal Facility, and (3) in accordance with subsection 3.3(C) hereof, disposing of Unacceptable Waste inadvertently accepted at the Designated Disposal Facility. The County shall do and perform all acts and things which may be necessary or desirable in connection with its covenants in this subsection, including without limitation all planning, development, administration, implementation, construction, operation, maintenance, management, financing and contract work related thereto or undertaken in connection therewith. The County shall exercise all reasonable efforts to minimize the costs incurred in complying with the Service Covenant consistent with its responsibilities hereunder and under this Agreement, Applicable Law and prudent solid waste management practice and environmental considerations, so as to enable the County to provide the services hereunder at the Contract Rate. (B) Temporary Unavailability of Designated Disposal Facility: Provision of Transfer Capacity. The County shall immediately advise the City and Franchise Hauler by telephone and facsimile of any situation, event or circumstance which results in the partial or complete inability of the County to receive Controllable Waste at the Designated Disposal Facility, its effect on the County's ability to perform its obligations hereunder, and the County's best estimate of the probable duration. The County shall confirm such advice in writing within 24 hours of the occurrence of any such inability. The County shall use its best efforts to resume normal operation of the Designated Disposal Facility as soon as possible in accordance with subsection 3.2(C) hereof. In the event that, at any time during the term hereof, the County is unable to accept City Acceptable Waste for disposal at any particular Designated Disposal Facility for a period in excess of 14 consecutive days, it shall nonetheless provide sufficient transfer capacity at such Designated Disposal Facility, and shall accept for transfer and disposal City Acceptable Waste at such Designated Disposal Facility for the Contract Rate. In the event that the County cannot provide such transfer capacity, it shall be obligated to accept such City Acceptable Waste at another facility within the Disposal System and to reimburse the City for any increased transportation cost (including without limitation, equipment rental costs, overtime and increased fuel costs resulting from the unavailability of the Designated Disposal Facility) incurred by the City or the Franchise Haulers in transporting City Acceptable Waste to another disposal facility within the Disposal System. In the event that the County cannot provide disposal capacity at another facility within the Disposal System, it shall be obligated to reimburse the City for (i) any increased transportation cost (including without limitation, equipment rental costs, overtime and increased fuel costs resulting from the unavailability of the Designated Disposal Facility) incurred by the City or the Franchise Haulers in transporting City Acceptable Waste to any other disposal facility used by the City or Franchise Hauler and (ii) the amount, if any, by which the tipping fee at the alternative facility utilized by the City or Franchise Hauler (because of the unavailability of any facility within the Disposal System) exceeds the then current Contract Rate. The invoice shall include reasonable substantiation of the amount invoiced. (C) Termination by County in Certain Circumstances. In the event that the Designated Disposal Facility becomes unavailable pursuant to Section 3.2(B) for a period exceeding 14 days, the County shall have the right to terminate this Agreement pursuant to this Section. The County may exercise such right by providing 10 days prior written notice thereof to the City. In the event that the County exercises such right, the County shall be obligated to pay the City an amount equal to (i) any aggregate increased transportation cost (including without limitation, equipment rental costs, overtime and increased fuel costs resulting from the unavailability of the Designated Disposal Facility) reasonably expected to be incurred by the City or the Franchise Haulers in transporting City Acceptable Waste to any other disposal facility used by the City or Franchise Hauler for a period of one year following the date of termination and (ii) the aggregate amount, if any, by which the tipping fee at the alternative facility utilized by the City or Franchise Hauler (because of the unavailability of any facility within the Disposal System) is reasonably expected to exceed the then 16 E.7.b Packet Pg. 188 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) current Contract Rate for a period of one year following the date of termination. Such amounts shall be payable by the County within 60 days of the date of termination. (D)Change in Designated Disposal Facility by Mutual Consent. The Designated Disposal Facility has been initially designated in Appendix I hereto. The Designated Disposal Facility may be changed, and other Designated Disposal Facilities added, at any time with the mutual consent of the parties. (E)Change in Designated Disposal Facility at City Request. In the event the City wishes to change the Designated Disposal Facility to another Disposal System Component, the City shall provide written notice and the reasons therefor to the County, and shall indicate whether the requested change is permanent or temporary. The County shall consider any such request in good faith and provide a response to the City within 14 days, taking into account the reasons for the request, the County's obligations to other cities which have executed Disposal Agreements, the requirements of Applicable Law, and the implications of any such change for the Disposal System as a whole. The County shall honor any such request to the extent commercially practicable based on such considerations and the overall interests of the Disposal System. (F)Annual Notification of Remaining Disposal Capacity. At the end of each Contract Year, the City shall advise the County in writing as to the expected delivery levels of Controllable Waste during the next Contract Year, and the County shall submit to the City a statement specifying (1) the amount of disposal capacity at the Designated Disposal Facility expected to be available for use by the City during the next Contract Year; (2) the aggregate amount of Disposal System capacity expected to be available for use by the cities which have executed Disposal Agreements during the remaining Term of this Agreement; and (3) any plans the County may have with respect to redesignating the Designated Disposal Facility, increasing or decreasing the number of cities using the Designated Disposal Facility, or curtailing or expanding the use of the Designated Disposal Facility. The annual notification to be provided by the County pursuant to this Section shall also describe the status of any permits required with respect to the Designated Disposal Facility, including a description of (i) any permit revisions expected to be proposed by the County; and (ii) any abatement orders or other permit compliance or enforcement actions taken or proposed by Governmental Bodies. SECTION 3.3. COUNTY RIGHT TO REFUSE WASTE. (A) Right of Refusal. Notwithstanding any other provision hereof, the County may refuse delivery of: (1)Unacceptable Waste; and (2)Controllable Waste delivered at hours other than those provided in the facility operating permit. (B)Identification of Unacceptable Waste. The County shall have the right (but not the duty or the obligation) to inspect the vehicles of all Franchise Haulers delivering material to the Disposal System, and may require that the Franchise Hauler remove any Unacceptable Waste from such vehicle before it is unloaded. If the County determines that it is impractical to separate Controllable Waste from Unacceptable Waste in any vehicle, or if the Franchise Hauler delivering such waste is unwilling to make such separation, or if any vehicle is carrying waste which may spill or leak, then the County may reject the entire vehicle, and the County shall require that the Franchise Hauler shall forthwith remove or cause the removal of the entire delivery from the Disposal System. (C)Hazardous Waste and Hazardous Substances. The parties acknowledge that the Disposal System has not been designed or permitted, and is not intended to be used in any manner or to any 17 E.7.b Packet Pg. 189 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) extent, for the handling, transportation, storage or disposal of Hazardous Waste or Hazardous Substances. Neither the County nor the City shall countenance or knowingly permit the delivery of Hazardous Waste or Hazardous Substances to the Disposal System. (D)Disposal of Unacceptable Waste and Hazardous Waste. If Unacceptable Waste or Hazardous Waste is discovered in a vehicle at any landfill within the Disposal System, the driver of the vehicle will not be permitted to discharge the load. If a vehicle is observed unloading Unacceptable Waste or Hazardous Waste in the tipping area of a landfill within the Disposal System County personnel will use reasonable efforts to assure that such material has been characterized, properly secured and its disposition resolved. The return or reloading on to the delivery vehicle of any Hazardous Waste, Prohibited Medical Waste or other waste requiring handling or transportation shall be conducted in accordance with Applicable Law. Whenever Hazardous Waste is detected at any landfill within the Disposal System, the County shall take immediate action in accordance with Applicable Law. In addition, if the County inadvertently accepts Unacceptable Waste, it shall have the right to pursue any remedies which it may against the person delivering such Unacceptable Waste to recoup the cost of handling and properly disposing of such Unacceptable Waste. (E)Environmental Insurance. Prior to the Contract Date, the County will obtain insurance for potential CERCLA or other environmental liability of the Disposal System, in an amount equal to $10,000,000 with deductibles of: (i) $1,000,000 for events giving rise to coverage which events occurred prior to October 1, 1995 and (ii) $250,000 for events giving rise to coverage which events occurred on or after October 1, 1995. The County shall maintain comparable insurance throughout the term hereof so long as commercially available on reasonable terms, as determined in the reasonable discretion of the County risk manager. The County shall notify the City in the event that the County does not maintain the insurance described in this Section. SECTION 3.4. MISCELLANEOUS OPERATIONAL MATTERS. (A) Permit Revisions or Stipulated Orders. The County shall provide the City with any application of the County to revise the Legal Entitlements for the Designated Disposal Facility (or any draft or final stipulated notice and order relating to the Designated Disposal Facility which may be under consideration by the local enforcement agency with jurisdiction over the Designated Disposal Facility). Such applications shall be provided to the City concurrently with its submittal to the appropriate regulatory agency. (B) Scales and Weighing. The County shall operate and maintain permanent scales at the Disposal System in compliance with Applicable Law. The County shall weigh all vehicles delivering Controllable Waste by or on behalf of the City (whether or not the County accepts such waste) and prepare a daily weight record with regard to such delivery. (In the event that scales are temporarily unavailable, the County shall reasonably estimate the weight of Controllable Waste delivered by volume.) SECTION 3.5. OTHER USERS OF THE DISPOSAL SYSTEM. (A) Generally. The County shall have the right to enter into waste disposal agreements with other cities in the County, Sanitary Districts, Transfer Stations or Independent Haulers; provided, however, that in no event shall such agreements have terms and provisions more favorable than the terms and provisions of this Agreement (including but not limited to the Contract Rate and availability of disposal capacity) unless the County has first offered the City such more favorable contract (or amendments to this Agreement). (B) Receipt of Imported Acceptable Waste on a Contract Basis. The County shall have the right to enter into a contract or other agreement with any municipal or private non-County entity for the delivery of Imported Acceptable Waste on terms and conditions that the County determines to be necessary to ensure and enhance the viability of the Disposal System for the benefit of the County and the cities which 18 E.7.b Packet Pg. 190 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) have executed Disposal Agreements. The County shall not enter into any such arrangements if such arrangements would materially and adversely affect the ability of the County to receive and dispose of Acceptable Waste from the cities which have executed Disposal Agreements in accordance with the Disposal Agreements throughout the Term thereof. Any such agreements shall provide that, in the event there is insufficient capacity at the Designated Disposal Facility for both Controllable Waste and Imported Acceptable Waste, Controllable Waste shall have priority with respect to existing capacity. SECTION 3.6. COUNTY PROVISION OF WASTE DIVERSION SERVICES. (A) County-Wide Recycling Services. This Agreement does not require the County to provide for any source reduction, materials recovery, recycling, composting, or other waste diversion services by the County nor any payment therefor by the City, by Franchise Haulers or by ratepayers; provided, however, any County- Wide Recycling Services, or recycling services provided at any Designated Disposal Facility (such as providing drop boxes for wood waste, green waste or other recyclable materials delivered to such Designated Disposal Facility), may be funded through the County Waste Management Enterprise Fund. Any such recycling services may be expanded, contracted or modified by the County at any time in its sole discretion. (B) Separate City-County Diversion Service Agreements. Nothing in this Agreement is intended to limit the right of the County to enter into a separate agreement with the City or any other person to provide source reduction, materials recovery, recycling, composting or other waste diversion services. Any such program conducted by the County, whether in participation with the City, any other of the cities which have executed Disposal Agreements, other cities, Sanitary Districts, Transfer Stations, Independent Haulers, Unincorporated Area or non-County entity, shall be operated, managed and accounted for as a program separate and distinct from the Disposal Services program contemplated by the Disposal Agreements and shall not be funded through the general revenues of the Disposal System. (C) Diversion Programs in Unincorporated Areas. To the extent the County implements diversion or other related programs in the Unincorporated Area of the County, the cost of such diversion programs shall be paid by the residences and businesses receiving the benefit of such diversion programs, and shall not be payable from the revenues of the Disposal System. 19 E.7.b Packet Pg. 191 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) ARTICLE IV CONTRACT RATE SECTION 4.1. CHARGING AND SECURING PAYMENT OF CONTRACT RATE. The City acknowledges that the County shall have the right to charge and collect a Contract Rate for the acceptance and disposal of Controllable Waste delivered to the System by any Franchise Hauler. The Contract Rate shall be calculated and established, and may be modified, as provided in Section 4.2 hereof. In addition, the City acknowledges that the County shall have the right to establish as part of the operating rules and regulations reasonable measures to secure the payment of all Contract Rates. Notwithstanding Section 4.2(A), the County shall have the right to impose special charges for the receipt of hard to handle materials, such as bulky materials, construction and demolition debris, tires and sludge. Such special charges shall be calculated to reflect the reasonable incremental costs to the County of accepting such hard to handle materials. SECTION 4.2. CONTRACT RATE. (A) Generally. Effective January 1, 1998, the Contract Rate payable by each Franchise Hauler shall be $28.50 per ton, subject to potential adjustment necessary to reflect the circumstances set forth below: (i)increased costs incurred by the County (in excess of available insurance proceeds) due to the occurrence of one or more Uncontrollable Circumstances, including Changes in Law; and (ii)escalation during the Term of this Agreement calculated in accordance with Section 4.2 (B). Prior to adjusting the Contract Rate as a result of any of the circumstances described in Section 4.2(A)(i), the County shall utilize the following remedy: reduce the costs of operating the Disposal System to the extent practicable. Any adjustments to the Contract Rate permitted by this Section 4.2(A)(i) shall be calculated by the County to reflect the actual costs or expenses of addressing the circumstance or circumstances pursuant to which the adjustment is authorized, and shall also reflect, where applicable, the then remaining capacity in the Disposal System. Such adjustment may not reflect circumstances other than the circumstances described in Section 4.2(A)(i). (B) Calculation of Escalation. For purposes of Section 4.2(A)(ii), the Contract Rate shall be adjusted in accordance with the formula described in this Section each July 1 during the term hereof, commencing July 1, 1999. The adjustment shall be calculated in accordance with the following formula: Contract Rate = Fixed Portion + [Escalating Portion x Index] Where, Fixed Portion = $10.87 Escalating Portion = $17.63 Index = Price Index, which shall be determined in accordance with the following formula I .7[PPI I/PP12]+.3[EI I/EI2] 20 E.7.b Packet Pg. 192 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) PPII The Producer Price Index, Industrial Commodities, as published by the United States Department of Labor Statistics in the publication Producer Price Indices, Table 6, for the month of February in the year the adjustment is being made (e.g., the first adjustment will use the February, 1999 value) PPI, = Producer Price Index, Industrial Commodities for the month of February, 1998 ET, = Employment Cost Index, Compensation, Private Industry Workers, as published by the United States Department of Labor Statistics in the publication Monthly Labor Review, Table 22 for the last quarter of the year preceding the year the adjustment is being made (e.g., the first adjustment will use the last quarter, 1998 value) EI2 = Employment Cost Index, Compensation, Private Industry Workers established for the last quarter of 1997 If the Employment Cost Index or Producer Price Index are no longer published, or are otherwise unavailable, then the Cost of Living Adjustment shall be determined by using standard official statistics measuring changes to, respectively, labor costs and cost of materials, as the parties shall mutually agree. (C) Procedure for Rate Adjustments. In the event the County determines that it is entitled to an adjustment of the Contract Rate pursuant to Section 4.2(A)(i), it shall utilize the procedures described in this Section 4.2(C). The County shall be required to provide the City with at least 60 days prior written notice of the adjustment, which notice shall identify the specific event(s) or circumstances which require the adjustment. The notice shall also specify the earliest date on which the County Board of Supervisors shall consider the proposed adjustment. At least 45 days prior to such meeting of the Board of Supervisors, the County shall provide the City with a report which shall contain the following information: a description of the specific event(s) or circumstances which require the adjustment; a description (including cost estimates) of any activities (which may include, but not be limited to capital improvements to the Disposal System) required in order to remedy such event or circumstance; certification by the County that it has implemented the remedy described in Section 4.2 prior to requiring the rate adjustment; and a description of the methodology used by the County to calculate the adjustment to the Contract Rate (hereinafter the "County Report"). In the event the City disputes the adjustment, it shall provide the County with a written description of the reason for the dispute at least 10 days prior to the meeting of the Board of Supervisors identified in the initial notice of the County (hereinafter the "City Report"). The City Report shall be provided to the Board of Supervisors for consideration at such meeting in connection with the proposed rate adjustment. At any time from and after the date that the County provides the City with the County Report, upon the request of either party, the City and County shall meet and confer in good faith to resolve any dispute that may arise regarding the proposed adjustment to the Contract Rate. In the event the Board of Supervisors approves all or a portion of the proposed rate adjustment, such rate adjustment shall become effective on the date identified in the initial notice sent by the County, but subject to potential reimbursement pursuant to Section 4.2(D). (D) Challenges to Rate Adjustment. In the event that the City challenges a Rate Adjustment made pursuant to Section 4.2(A) and a court of applicable jurisdiction determines that any portion of the County's adjusted Contract Rate was improperly imposed, the County shall, within 30 days of the date of the statement of decision, reimburse to the City the amount improperly imposed, together with interest 21 E.7.b Packet Pg. 193 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) calculated at the Overdue Rate. Such reimbursement may be made in the form of a reduction in the Contract Rate for a future period reasonably calculated to provide full reimbursement of the amounts described above. SECTION 4.3. RESPONSIBILITY FOR PAYMENT OF THE CONTRACT. (A) Payment by City. In the event and to the extent (1) the City uses municipai collection forces directly for the haulage of Controllable Waste to the Disposal System or (2) the City uses non-municipal Franchise Haulers for collection but nonetheless elects to pay the Contract Rate from City revenues, the City shall have direct responsibility for payment of the Contract Rate, and shall take all such budgetary, appropriation and other action as may be necessary to provide for the timely payment of the Contract Rate. Such action may include, depending upon the means authorized by the City to provide for such payment, the levy and collection of general or special taxes, the imposition of benefit assessments, or the collection of user fees, generator charges or other similar impositions for municipal solid waste disposal. The City shall use best efforts in accordance with Applicable Law to levy and impose all such taxes, assessments, fees or charges, and will take all steps, actions and proceedings for the enforcement, collection and payment of all such amounts which shall become delinquent, to the full extent permitted by Applicable Law. To the extent provided in Section 7.5 hereof, the obligation of the City for such Contract Rate or Transfer Rates shall be limited to amounts in the City's Solid Waste Enterprise Fund. From the Commencement Date to the date of expiration or termination of this Agreement, the obligation of the City to pay the Contract Rate or Transfer Rate, to the extent the City rather than Franchise Haulers is responsible directly for payment and provided that the Service Covenant has been complied with, shall be absolute and unconditional and shall not be subject to delay or diminution by reason of set-off, abatement, counterclaim, existence of a dispute or otherwise. The obligation of the City hereunder shall be limited in all circumstances to amounts available in any enterprise fund created by the City for solid waste management purposes, and there shall be no recourse hereunder against the City's general fund or other funds not related to solid waste management purposes for amounts owed by the City hereunder. (B)Payment by Franchise Haulers. With respect to Controllable Waste delivered by Franchise Haulers other than City municipal collection forces, the obligation to pay the Contract Rate shall rest with such Franchise Haulers and not with the City and, unless the City has agreed with the County to be responsible for Franchise Hauler payments, the City shall not be financially responsible for any delay or failure by such Franchise Hauler to pay the Contract Rate or any portion thereof when due. In the event of any such failure, the County and the City shall cooperate with each other and use their best efforts to obtain timely payment. Such efforts by the County may include, as appropriate, requiring cash payments for disposal rights from such Franchise Hauler and bringing a legal proceeding for payment and damages. Such efforts by the City shall include, as appropriate, legal proceedings to suspend, revoke or terminate the Franchise Hauler's franchise, permit or license rights. (C)Disputes. If the City or the Franchise Hauler disputes any amount billed by the County in any Billing Statement, the City or the Franchise Hauler shall nonetheless pay undisputed amounts identified on such Billing Statement and shall provide the County with written objection within 30 days of the receipt of such Billing Statement indicating the amount that is being disputed and providing all reasons then known to the City or the Franchise Hauler for any objection to or disagreement with such amount. The County shall then respond to such written objection (providing additional documentation substantiating the amount disputed if applicable) within 30 days of receipt of the written objection. If the City or the Franchise Hauler and the County are not able to resolve such dispute within 30 days after the County's response, either party may pursue appropriate legal remedies. In addition, in the event of nonpayment by the City or Franchise Hauler, as applicable, the County shall have the right to discontinue any credit arrangements it may have had with the City or Franchise Hauler, and require cash payment for subsequent deliveries. 22 E.7.b Packet Pg. 194 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) SECTION 4.4. BILLING OF THE CONTRACT RATE. The County shall continue to bill Contract Rate after January 1, 1998, in the same manner as it has customarily billed tipping fees. Subject to the other provisions of this Agreement, the County shall have the right to modify or amend such manner of billing on reasonable notice to affected parties. SECTION 4.5. SOLID WASTE DISPOSAL FEE OPTION. Notwithstanding the other provisions of this Article IV, City shall have the option to adopt the following procedure: City agrees that it or its Franchise Hauler will pay the then current Solid Waste Disposal Fee (which Fee is, at this time, set forth in Section 16.0222 of the County Code), as same may be amended from time to time, relative to the City's Controllable Waste delivered to the Disposal System. In turn, the City will receive a monthly payment from the County equal to the product of: the City's Controllable Waste delivered to the Disposal System for the month in question multiplied by the difference between the then current Solid Waste Disposal Fee and the then current Contract Rate (as the Contract Rate is determined under the provisions of this Agreement). City acknowledges that the County shall have the right to establish as part of the operating rules and regulations reasonable measures to secure the payment of all Solid Waste Disposal Fees. Further, all references to "Contract Rate" in Sections 4.3 and 4.4 shall be deemed to refer to the Solid Waste Disposal Fee. City shall elect the option set forth in this Section 4.5 by notifying the County of such election as provided in Section 7.16. The election shall be effective on the first day of the second month following receipt of the notice by County. 23 E.7.b Packet Pg. 195 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) ARTICLE V BREACH, ENFORCEMENT AND TERMINATION SECTION 5.1. BREACH: REMEDIES. The parties acknowledge that the money damages provided hereunder may not be adequate to compensate either party for the other party's nonperformance. The parties agree that in the event either party breaches any obligation under this Agreement or any representation made by either party hereunder is untrue in any material respect, the other party shall have the right to take any action at law or in equity (including actions for injunctive relief, mandamus and specific performance) it may have to enforce the payment of any amounts due or the performance of any obligations to be performed hereunder. Neither party shall have the right to terminate this Agreement except as provided in Section 3.1(F), Section 3.2(C), Section 5.2 and Section 5.3 hereof or as otherwise provided in this Agreement. SECTION 5.2. CITY CONVENIENCE TERMINATION. The City shall have the right to terminate this Agreement in its sole discretion, for its convenience and without cause at any time during the Term hereof upon 90 days' written notice to the County. If the City exercises its rights to terminate the Agreement pursuant to this Section, the City shall pay the County a termination fee equal to (x) $14.25 multiplied by (y) the amount of Controllable Waste delivered to the Disposal System during the prior Contract Year multiplied by (z) remaining term of the Waste Disposal Agreement, stated in years (assuming such termination for convenience did not occur). Upon any termination by the City pursuant to the provisions of this Section, the obligations of the County pursuant to Section 7.3 hereof shall not survive such termination, notwithstanding Section 6.1(B). SECTION 5.3. TERMINATION. (A) By City. Except as expressly provided herein, the City shall have no right to terminate this Agreement for cause except in the event of the repeated failure or refusal by the County substantially to perform any material obligation under this Agreement unless such failure or refusal is excused by an Uncontrollable Circumstance; except that no such failure or refusal shall give the City the right to terminate this Agreement for cause under this subsection unless: (1)The City has given prior written notice to the County stating that a specified failure or refusal to perform exists which will, unless corrected, constitute a material breach of this Agreement on the part of the County and which will, in its opinion, give the City the right to terminate this Agreement for cause under this subsection unless such breach is corrected within a reasonable period of time, and (2)The County has neither challenged in an appropriate forum (in accordance with Section 5.6) the City's conclusion that such failure or refusal to perform has occurred or constitutes a material breach of this Agreement nor corrected or diligently taken steps to correct such breach within a reasonable period of time not more than 90 days from the date of the notice given pursuant to clause (1) of this subsection (but if the County shall have diligently taken steps to correct such breach within such reasonable period of time, the same shall not constitute a breach giving rise to the right of termination for as long as the County is continuing to take such steps to correct such breach). (B) By County. Except as expressly provided herein, the County shall have no right to terminate this Agreement for cause except in the event of the repeated failure or refusal by the City substantially to perform any material obligation under this Agreement unless such failure or refusal is excused by an Uncontrollable Circumstance; except that no such failure or refusal shall give the County the right to terminate this Agreement for cause under this subsection unless: 24 E.7.b Packet Pg. 196 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) (1)The County has given prior written notice to the City stating that a specified failure or refusal to perform exists which will, unless corrected, constitute a material breach of this Agreement on the part of the City and which will, in its opinion, give the County right to terminate this Agreement for cause under this subsection unless such breach is corrected within a reasonable period of time, and (2)The City has neither challenged in an appropriate forum (in accordance with Section 5.6 the County's conclusion that such failure or refusal to perform has occurred or constitutes a material breach of this Agreement nor corrected or diligently taken steps to correct such breach within a reasonable period of time not more than 90 days from the date of the notice given pursuant to clause (1) of this subsection (but if the City shall have diligently taken steps to correct such breach within such reasonable period of time, the same shall not constitute a breach giving rise to the right of termination for as long as the City is continuing to take such steps to correct such breach). SECTION 5.4. NO WAIVERS. No action of the County or the City pursuant to this Agreement (including, but not limited to, any investigation or payment), and no failure to act, shall constitute a waiver by either party of the other party's compliance with any term or provision of this Agreement. No course of dealing or delay by the County or the City in exercising any right, power or remedy under this Agreement shall operate as a waiver thereof or otherwise prejudice such party's rights, powers and remedies. No single or partial exercise of (or failure to exercise) any right, power or remedy of the County or the City under this Agreement shall preclude any other or further exercise thereof of the exercise of any other right, power or remedy. SECTION 5.5 DAMAGES. (A) City. In the event that the City terminates the Agreement pursuant to Section 5.3(A), the County shall be obligated to pay to the City as damages the amount by which the City's reasonably expected cost of transporting and disposing of City Acceptable Waste (for a period commencing on the date of termination and ending one year after such date of termination) exceeds the aggregate Contract Rate that would have been payable with respect to such City Acceptable Waste had the County met its obligations hereunder and the Agreement had not been terminated. (B) County. In the event that the County terminates the Agreement pursuant to Section 5.3(B), the City shall pay the County as damages an amount equal to the Contract Rate in effect at the time of such termination multiplied by the number of tons of City Acceptable Waste delivered to the Disposal System during the preceding twelve months. SECTION 5.6. FORUM FOR DISPUTE RESOLUTION. It is the express intention of the parties that all legal actions and proceedings related to this Agreement or to the Disposal System or to any rights or any relationship between the parties arising therefrom shall be solely and exclusively initiated and maintained in courts of the State of California having appropriate jurisdiction. 25 E.7.b Packet Pg. 197 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) ARTICLE VI TERM SECTION 6.1. EFFECTIVE DATE AND TERM. (A) Term. This Agreement shall become effective, shall be in full force and effect and shall be legally binding upon the City and the County from the Contract Date and shall continue in full force and effect until the fifteenth anniversary of the Contract Date, unless earlier terminated in accordance with its terms. (B) Survival; Accrued Rights. The rights and obligations of the parties hereto pursuant to Sections 3.1(E), 5.1, 5.3, 5.5, 7.2, 7.3, 7.5, 7.7, 7.8, 7.9, and 7.10 hereof shall survive the termination or expiration of this Agreement, and no such termination or expiration shall limit or otherwise affect the respective rights and obligations of the parties hereto accrued prior to the date of such termination or expiration provided, however, that Section 7.3 shall not survive if the termination of the Waste Disposal Agreement is due to the occurrence of an Event of Default on the part of the City. At the end of the Term of this Agreement, all other obligations of the parties shall terminate. 26 E.7.b Packet Pg. 198 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) ARTICLE VII GENERAL PROVISIONS SECTION 7.1. OPERATION AND MAINTENANCE OF THE DISPOSAL SYSTEM. The County, at its cost and expense through the County Solid Waste Enterprise Fund, shall at all times operate, or cause to be operated, the Disposal System in accordance with Applicable Law and the operating rules and regulations of the County. SECTION 7.2. UNCONTROLLABLE CIRCUMSTANCES GENERALLY. (A) Performance Excused. Except as otherwise specifically provided in this Agreement, neither the County nor the City shall be liable to the other for any failure or delay in the performance of any obligation under this Agreement (other than any payment at the time due and owing) to the extent such failure or delay is due to the occurrence of an Uncontrollable Circumstance. (B)Notice. Mitigation. The party experiencing an Uncontrollable Circumstance shall notify the other party by telecommunication or telephone and in writing, on or promptly after the date the party experiencing such Uncontrollable Circumstance first knew of the commencement thereof, followed within 15 days by a written description of (1) the Uncontrollable Circumstance and the cause thereof (to the extent known), (2) the date the Uncontrollable Circumstance began and the cause thereof, its estimated duration, the estimated time during which the performance of such party's obligations hereunder will be delayed, (3) the estimated amount, if any, by which the Contract Rate may need to be adjusted as a result of such Uncontrollable Circumstance, (4) its estimated impact on the other obligations of such party under this Agreement and (5) potential mitigating actions which might be taken by the County or City and any areas where costs might be reduced and the approximate amount of such cost reductions. Each party shall provide prompt written notice of the cessation of such Uncontrollable Circumstance. Whenever such act, event or condition shall occur, the party claiming to be adversely affected thereby shall, as promptly as reasonably possible, use its best efforts to eliminate the cause therefor, reduce costs and resume performance under this Agreement. In addition, with respect to Changes in Law, the County shall diligently contest any such changes the imposition of which would have a material adverse impact on the Disposal System. While the delay continues, the County or City shall give notice to the other party, before the first day of each succeeding month, updating the information previously submitted. (C)Impact on Contract Rate. If and to the extent that Uncontrollable Circumstances interfere with, delay or increase the cost to the County of meeting its obligations hereunder and providing Disposal Services to the cities which have executed Disposal Agreements in accordance herewith, the County shall be entitled to an increase in the Contract Rate as provided in Section 4.2 herein or an extension in the schedule for performance equal to the amount of the increased cost or the time lost as a result thereof. The proceeds of any insurance available to meet any such increased cost shall be applied to such purpose prior to any determination of cost increases payable under this subsection. Any cost reductions achieved through the mitigating measures undertaken by the County pursuant to subsection 7.2(B) hereof upon the occurrence of an Uncontrollable Circumstance shall be reflected in a reduction of the amount by which the Contract Rate would have otherwise been increased or shall serve to reduce the Contract Rate to reflect such mitigation measures, as applicable. SECTION 7.3. INDEMNIFICATION. The County shall indemnify, defend with competent counsel reasonably selected by the County, protect and hold harmless City, its officers, employees and assigns from and against all Loss-and-Expense, including natural resources damages, injuries, costs, response, assessment, remediation and removal costs, losses, demands, debts, liens, liabilities, causes of action, suits, legal or administrative proceedings, interest, fines, charges, penalties and expenses (including but not limited to attorneys' and expert witness fees and costs incurred in connection with defending against 27 E.7.b Packet Pg. 199 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) any of the foregoing or in enforcing this indemnity) of any kind whatsoever paid, incurred or suffered by, or asserted against, City or its officers or employees arising from or attributable to any repair, cleanup or detoxification, or preparation and implementation of any removal, remedial, response, closure or other plan (regardless of whether undertaken due to governmental action) or replacement or restoration of natural resources arising from or related to Hazardous Substance or Hazardous Wastes or petroleum products at any place where County transfers, stores or disposes of municipal solid waste pursuant to this agreement, or the County's activities pursuant to this Agreement which result in a release or threatened release of Hazardous Substances or Hazardous Wastes or petroleum products into the environment. The foregoing indemnity is intended to operate as an agreement pursuant to but not limited to Section 107(e) of the Comprehensive Environmental Response, Compensation and liability Act ("CERCLA"). 42 U.S.C. Section 9607(e), and California Health and Safety Code Section 25364, to defend, protect, hold harmless and indemnify City from liability. This indemnity shall not apply to willful, deliberate or grossly negligent delivery by the City of Hazardous Substances or Hazardous Waste to the Disposal System. This indemnity shall also not apply with respect to (i) vehicle accidents or other waste delivery activities or (ii) to any Hazardous Substances, Hazardous Waste, petroleum product or other Unacceptable Waste not accepted for disposal in the Disposal System. The City agrees that the County may provide counsel to jointly represent itself, the City and any and all other parties who disposed of waste in the Disposal System. The City hereby agrees to waive, in writing, any conflict, actual or apparent, created by the joint representation of such parties pursuant to this indemnity. The City also hereby agrees to cooperate fully and completely with the County and with counsel provided by the County in resolving any legal matter that arises pursuant to this indemnity. The City further agrees that the County has complete discretion in the conduct of any matter to which this indemnity applies, and may resolve or settle such matters to which this indemnity applies in its sole discretion without the permission or approval of the City. The County agrees that it will not bring any action against the City claiming or alleging that the City has any responsibility for matters, actions or liabilities within the scope of the indemnity provided above. SECTION 7.4. RELATIONSHIP OF THE PARTIES. Neither party to this Agreement shall have any responsibility whatsoever with respect to services provided or contractual obligations or liabilities assumed by the other party hereto, whether accrued, absolute, contingent or otherwise, or whether due or to become due. The County is an independent contractor of the City and nothing in this Agreement shall be deemed to constitute either party a partner, agent or legal representative of the other party or to create any fiduciary relationship between the parties. SECTION 7.5. LIMITED RECOURSE. (A) To the City. Except in the event the City has not established or maintained a City Solid Waste Enterprise Fund, no recourse shall be had to the general funds or general credit of the City for the payment of any amount due the County hereunder, or the performance of any obligation incurred hereunder, including any Loss-and-Expense of any nature arising from the performance or non-performance of the City's obligations hereunder. The sole recourse of the County for all such amounts shall be to the funds held in any such Solid Waste Enterprise Fund. All amounts held in any City Solid Waste Enterprise Fund shall be held for the uses permitted and required thereby, and no such amounts shall constitute property of the County. The City shall make adequate provision in the administration of any City Solid Waste Enterprise Fund for the payment of any amount or the performance of any obligation which may be due hereunder. (B) To the County. No recourse shall be had to the general funds or general credit of the County for the payment of any amount due the City hereunder, or the performance of any obligation incurred hereunder, including any Loss-and-Expense of any nature arising from the performance or non- performance of the County's obligations hereunder. The sole recourse of the City for all such amounts shall be to the funds held in the County Solid Waste Enterprise Fund in accordance with the terms of this Agreement. All amounts held in the County Solid Waste Enterprise Fund shall be held for the uses permitted 28 E.7.b Packet Pg. 200 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) and required thereby, and no such amounts shall constitute property of the City. The County shall make adequate provision in the administration of the County Solid Waste Enterprise Fund for the payment of any amount or the performance of any obligation which may be due hereunder. SECTION 7.6. PRE-EXISTING RIGHTS AND LIABILITIES. Except as specifically set forth herein, nothing in this Agreement is intended to affect, release, waive or modify any rights, obligations or liabilities which any party hereto may have to or against the other party as of the Contract Date relating to the disposal of waste in the Disposal System or any other related matter. SECTION 7.7. NO VESTED RIGHTS. The City shall not acquire any vested property, license or other rights in the Disposal System by reason of this Agreement. SECTION 7.8. LIABILITY FOR COLLECTION. TRANSPORTATION AND PROCESSING. Any liability incurred by the City as a result of collecting Acceptable Waste or processing it for diversion from landfill, or as a result of causing, franchising, permitting, licensing, authorizing or arranging any of the foregoing, shall be its sole liability, except as expressly otherwise provided herein. SECTION 7.9. NO CONSEQUENTIAL OR PUNITIVE DAMAGES. In no event shall either party hereto be liable to the other or obligated in any manner to pay to the other any special, incidental, consequential, punitive or similar damages based upon claims arising out of or in connection with the performance or non-performance of its obligations or otherwise under this Agreement, or the material inaccuracy of any representation made in this Agreement, whether such claims are based upon contract, tort, negligence, warranty or other legal theory. SECTION 7.10. AMENDMENTS. Neither this Agreement nor any provision hereof may be changed, modified, amended or waived except by written agreement duly authorized and executed by both parties. SECTION 7.11. NOTICE OF LITIGATION. Each party shall deliver written notice to the other of any Legal Proceeding to which it is a party and which questions the validity or enforceability of this Agreement executed by the City or the County or any Legal Entitlement issued in connection herewith. SECTION 7.12. FURTHER ASSURANCES. At any and all times the City and the County so far as may be authorized by law shall pass, make, do, execute, acknowledge and deliver any and every such further resolutions, acts, deeds, conveyances, instruments, assignments, transfers and assurances as may be necessary or reasonably requested by the other in order to give full effect to this Agreement. SECTION 7.13. ASSIGNMENT OF AGREEMENT. Neither this Agreement nor any of the rights or obligations hereunder may be assigned by either party hereto without the prior written consent of the other party, which may be withheld in the other party's sole discretion. Notwithstanding the foregoing, that either party may assign this Agreement to another successor public entity, subject to the reasonable consent of the other party. In such circumstances the party not requesting the assignment shall have the right to demand assurances of the financial, technical and legal ability of the proposed assignee to undertake the responsibilities and obligations of the assigning party. SECTION 7.14. INTEREST ON OVERDUE OBLIGATIONS. Except as otherwise provided herein, all amounts due hereunder, whether as damages, credits, revenue or reimbursements, that are not paid when due shall bear interest at the Overdue Rate on the amount outstanding from time to time, on the basis of a 365-day year, counting the actual number of days elapsed, and all such interest accrued at any time shall, to the extent permitted by Applicable Law, be deemed added to the amount due, as accrued. 29 E.7.b Packet Pg. 201 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) SECTION 7.15. BINDING EFFECT. This Agreement shall bind and inure to the benefit of the parties hereto and any successor or assignee acquiring an interest hereunder consistent with the provisions of Section 7.13 hereof. SECTION 7.16. NOTICES. Any notice or communication required or permitted hereunder shall be in writing and sufficiently given if delivered in person or sent by certified or registered mail, postage prepaid, to the notice address of the respective parties set forth on the cover page of this Agreement. Changes in the respective addresses to which such notices may be directed may be made from time to time by any party by notice to the other party. 30 E.7.b Packet Pg. 202 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) By an, B d of Supervisors Date FEB 2 4 1998 ' Date January 22, 1998 sors , California IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers or representatives as of the day and year first above written. COUNTY OF SAN BERNARDINO SIGNED AND CERTIFIED THAT A COPY OF THIS CONTRACT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Date FEB 2 4 1998 98-107 Byrn R. Matteson, Mayor Ci y of Grand Terrace APPROVED AS TO FORM: COUNTY COUNSEL SAN B RDING COQ Y, CALIFORNIA Date 02 31 E.7.b Packet Pg. 203 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) APPENDIX 1 DESIGNATED DISPOSAL FACILITY E.7.b Packet Pg. 204 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) DESIGNATED DISPOSAL FACILITY The designated disposal facility for the City of Grand Terrace is the Colton Sanitary Landfill. E.7.b Packet Pg. 205 At t a c h m e n t : O r i g i n a l S B C O W D A - 1 9 9 8 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) AMENDMENT NO. 9 TO THE WASTE DISPOSAL AGREEMENT NO. 98-107 On February 24, 1998, the City of Grand Terrace (“City”) and the County of San Bernardino (“County”) entered into a Waste Disposal Agreement (“WDA”). The parties hereby amend the WDA, on the Effective Date as provided herein, by their respective execution of this agreement (hereinafter “Amendment’). Recitals A. The parties have previously entered into the following amendments to the WDA. Amendment No. 1 to the WDA was to correct the designated disposal facilities for the City. Amendment No. 2 was to implement the “Article 19 Solid Waste” component of the County’s waste management system and define the City’s share of that revenue. Amendment No. 3 was to increase the annual maximum limits of “Article 19 Solid Waste” in the County landfill system. Amendment No. 4 allowed the County to charge the fee of $10.00 per ton (prorated) for identified controllable waste of the City (e.g., roll off container trucks and other County/City vehicles such as pickups and dump trucks) and have such waste subject to being processed in the recycling program. Amendment No. 5 allowed the County to calculate the annual cost of living adjustment earlier in the calendar year. Amendment No. 6 extended the end date of the WDA to June 30, 2016. Amendment No. 7 extended the term of the WDA to June 30, 2021, applied an annual fixed WDA renewal discount adjustment of $0.82 per ton for the term of the WDA, and allowed the County to enter into agreements to accept in-County waste from non-WDA users of the Disposal System at a rate lower than the WDA Contract Rate in exchange for sharing the net revenue generated from those agreements. Amendment No. 8 reset the WDA Contract Rate and extended the term for five (5) years to June 30, 2026. B. In connection with the ongoing administration of the WDA, the parties have determined it is now in their best interests to cap the WDA Contract Rate in order to maintain a 15% buffer between the WDA Contract Rate and the County’s posted gate rate. C. This change will assist both the City and the County in planning for future fiscal years’ budgeting of solid waste disposal services and costs by putting a mechanism in place for the future to prevent compaction with the County’s posted gate rate. NOW THEREFORE, in consideration of the forgoing recitals and the following covenants and promises the Parties agree as follows: 1. Amended Section 4.2 CONTRACT RATE. (A) Generally. This section is amended in its entirety to read: SECTION 4.2. CONTRACT RATE. (A) Generally. Effective July 1, 2022, the Contract Rate payable by each Franchise Hauler shall be $40.75 per ton, subject to potential adjustment necessary to reflect the circumstances set forth below: (i) increased costs incurred by the County (in excess of available insurance proceeds) due to the occurrence of one or more Uncontrollable Circumstances, including Changes in Law; and (ii) escalation during the Term of this Agreement calculated in accordance with Section 4.2(B). In no case will the calculation of escalation exceed 85% of the County approved general public gate rate (currently $59.94 minus the current CDSDP recycling fee of $12.00), as such fees may be amended. Prior to adjusting the Contract Rate as a result of any of the circumstances described in Section 4.2(A)(i), the County shall utilize the following remedy: reduce the costs of operating the Disposal System to the extent practicable. E.7.c Packet Pg. 206 At t a c h m e n t : A G R - P W - W a s t e 6 - 2 8 - 2 2 G r a n d T e r r a c e W D A A m e n d 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) Any adjustments to the Contract Rate permitted by Section 4.2(A)(i) shall be calculated by the County to reflect the actual costs or expenses of addressing the circumstance or circumstances pursuant to which the adjustment is authorized, and shall also reflect, where applicable, the then remaining capacity in the Disposal System. Such adjustment may not reflect circumstances other than the circumstances described in Section 4.2(A)(i). 2. Amended Section 4.2. CONTRACT RATE. (B) Calculation of Escalation. This section is amended in its entirety to read: SECTION 4.2. CONTRACT RATE. (B) Calculation of Escalation. For purposes of Section 4.2(A)(ii), the Contract Rate shall be adjusted in accordance with the formula described in this Section each July 1 during the term hereof, commencing July 1, 2022. The adjustment shall be calculated in accordance with the following formula: Contract Rate = Fixed Portion + [Escalating Portion x Index] Where, Fixed Portion = $10.87 Escalating Portion = $27.13 Index = Price Index, which shall be determined in accordance with the following formula: I = .7[PPI1/PPI2] +.3[EI1/EI2] PPI1 = The Producer Price Index, Industrial Commodities Commodity Data, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Series ID WPU03 thru 15 for the month of September in the year prior to the year for which the adjustment is being made (e.g., the adjustment effective July 1, 2011 will use the September 2010 value) PPI2 = Producer Price Index, Industrial Commodities Commodity Data for the month of September, 1997 EI1 = Employment Cost Index, Total Compensation, Private Industry All Workers, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Series ID: CIU2010000000000I for the last quarter of the year preceding the year for which the adjustment is being made (e.g., the adjustment effective July 1, 2011 will use the third quarter, 2010 value) EI2 = Employment Cost Index, Compensation, Private Industry All Workers, as published at the United States Department of Labor, Bureau of Labor Statistics web site, Table 3, established for the third quarter of 1997. Effective July 1, 2022, and each July 1 thereafter during the term of the Agreement, the Contract Rate adjustment will be calculated as provided above, except that an annual fixed WDA renewal discount adjustment of $0.82 per ton will be applied after the annual Cost of Living Adjustment (COLA) adjustment. In no case will the adjustment to the Contract Rate exceed 85% of the County’s approved general public gate rate (without the current CDSDP recycling fee of $12.00), as such fees may be amended. For example, the current County’s posted gate rate is $47.94 ($59.94 minus the $12 CDSDP fee). Therefore, the WDA Contract Rate cannot be more than 85% of that rate, which is $40.75. However, if the County adjusts its posted gate rate in any future year of the term of the WDA, the WDA Contract Rate will be adjusted according to the above calculation formula, including the renewal discount adjustment of $0.82 per ton, up to the maximum of 85% of the newly posted gate rate. If the calculated annual adjustment of any year would exceed the 85%, then the capped maximum amount of 85% will be used. If, however, E.7.c Packet Pg. 207 At t a c h m e n t : A G R - P W - W a s t e 6 - 2 8 - 2 2 G r a n d T e r r a c e W D A A m e n d 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) the posted gate rate does not change, and the WDA Contract Rate is already at the capped 85% amount, the WDA Contract Rate will remain the same for the calculated fiscal year. Any decrease in the calculated adjustment to the Contract Rate, calculated according to the above formula, including the renewal discount adjustment, will be applied to the then WDA Contract Rate. Please note that, due to timing, in future years where the gate rate is recommended to be increased, the WDA rate notification letter may be delayed until final approval of the gate rate by the Board of Supervisors. If at any time either the Employment Cost Index or the Producer Price Index is no longer published, or are otherwise unavailable, then the COLA shall be determined by using standard official statistics measuring changes to, respectively, labor costs and cost of materials, as the parties shall mutually agree. 3. Amended Section 5.2 CITY CONVENIENCE TERMINATION. This section is amended in its entirety to read: SECTION 5.2. CITY CONVENIENCE TERMINATION. In exchange for capping the WDA Contract Rate, the City agrees to commit to remaining a WDA City, with no provision to terminate without cause, for the remainder of the WDA Term. 4. Effective Date. This Amendment shall be effective if and only when all fifteen cities/towns listed on Exhibit A have each adopted and executed a counterpart of this Amendment No. 9 (the amendment number may differ for each city/town listed on Exhibit A) and such amendment has been adopted and executed by the County on or before June 30, 2022. In all events, the conditions in the forgoing sentence shall occur otherwise this Amendment No. 9 shall be null and void and without any effect whatsoever. 5. This Amendment may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Amendment. The parties shall be entitled to sign and transmit an electronic signature of this Amendment (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Amendment upon request. 6. Except as modified in this Amendment (or in any prior Amendment(s)) all other terms and conditions of the WDA shall remain in full force and effect. E.7.c Packet Pg. 208 At t a c h m e n t : A G R - P W - W a s t e 6 - 2 8 - 2 2 G r a n d T e r r a c e W D A A m e n d 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) IN WITNESS WHEREOF, the parties have caused this Amendment to be executed by their duly authorized officers or representatives as of the day and year first above written. Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department Jolena Grider, Deputy County Counsel Andy Silao, P.E. Brendon Biggs, Director Date Date Date SAN BERNARDINO COUNTY City of Grand Terrace (Print or type name of corporation, company, contractor, etc.) By Curt Hagman, Chairman, Board of Supervisors (Authorized signature - sign in blue ink) Dated: Name SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract) DOCUMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD Title Lynna Monell Clerk of the Board of Supervisors of San Bernardino County (Print or Type) By Dated: Deputy Address 22795 Barton Road Grand Terrace, CA 92313 E.7.c Packet Pg. 209 At t a c h m e n t : A G R - P W - W a s t e 6 - 2 8 - 2 2 G r a n d T e r r a c e W D A A m e n d 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) EXHIBIT A CITIES/TOWNS WITH A WASTE DELIVERY AGREEMENT WITH THE COUNTY OF SAN BERNARDINO OFFERED THIS AMENDMENT JUNE 2022 FOR AN AGREEMENT END DATE OF JUNE 30, 2026 1. ADELANTO 2. APPLE VALLEY 3. BARSTOW 4. BIG BEAR LAKE 5. COLTON 6. FONTANA 7. GRAND TERRACE 8. HESPERIA 9. HIGHLAND 10. LOMA LINDA 11. RIALTO 12. TWENTYNINE PALMS 13. VICTORVILLE 14. YUCAIPA 15. YUCCA VALLEY E.7.c Packet Pg. 210 At t a c h m e n t : A G R - P W - W a s t e 6 - 2 8 - 2 2 G r a n d T e r r a c e W D A A m e n d 9 ( W a s t e D i s p o s a l A g r e e m e n t - A m e n d m e n t N o . 9 ) AGENDA REPORT MEETING DATE: June 28, 2022 Council Item TITLE: Award of Contract for the Capital Improvement Project (CIP 2022-1) PRESENTED BY: Kamran Dadbeh, Interim City Engineer RECOMMENDATION: Staff recommends that the City Council take the following actions: 1. Find that the Capital Improvement Project (CIP 2022- 1) is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) and authorize the preparation and filing of a Notice of Exemption as applicable. 2 Award the Capital Improvement Project (CIP 2022-1) to Hardy & Harper, Inc. on the Base Bid only and approve the public works agreement with Hardy & Harper, Inc. in the amount of $570,000, plus a 10% contingency ($57,000) for the construction of the Capital Improvement Project (CIP 2022-1) and authorize the City Manager to execute the agreement subject to City Attorney approval as to form; 3 Award a contract to Willdan for Inspection Services for 2021-22 Capital Improvement Project (CIP 2022-1) in the amount of $30,240, plus a 10% contingency ($3,024), and 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 "Maintain Public Safety" by investing in improvements to public infrastructure. BACKGROUND: The City of Grand Terrace receives an annual allotment of funds from Senate Bill 1, formally referred to as the Road Maintenance and Rehabilitation Program (RMRP) to address deferred maintenance on the State Highway System and the local street and road system. In addition, the City receives Measure I funding through SBCTA. Measure I is the half-cent sales tax collected throughout San Bernardino County for transportation improvements. DISCUSSION: A bid package for the FY 2021-22 Capital Improvement Project (CIP 2022-1) which E.8 Packet Pg. 211 included construction plans, technical specifications, and bid documents were prepared and advertised for construction bids. The project will include the removal and replacement of two inches of existing asphalt paving and re-installment of pavement markings and striping on the following locations: Barton Road from Town Square to Mt. Vernon Van Buren from Mt. Vernon Ave. to West End of Van Buren St. Alternative/Additive Work: Vivienda from Barton Rd. to Vivienda Ct. The project was advertised for bids on May 31,2022. Bids were accepted until 2:00 p.m. on June 15, 2022. The City Clerk received three timely bids as provided in the table below. Hardy & Harper Inc. Lake Forest RJ Noble Orange All American Corona Base Bid Total $570,000.00 $609,361.75 $646,20700 Add Alt. 1 Total $80,000.00 $79,099.00 $55,186.00 Add Alt. 2 Total $70,000.00 $70,370.00 $51,277.00 Add Alt. 3 Total $55,000.00 $62,364.50 $41,156.00 Colton Unified School District has indicated that they will be reconstructing the frontage of Grand Terrace School, and their construction will affect Vivienda Avenue and Vivienda Ct. The three Alternate Bids portion of this project will not be awarded at this time. Staff solicited proposals from consulting firms of Willdan and Interwest for the inspection of the project. Based on price and availability, it was determined that the proposal from Willdan would best address the inspection of this project and it is most advantageous to the City. Based upon the forgoing, Staff recommends that the City Council concur with staff’s recommendation. CEQA FINDING: Paving projects are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) because it relates to repair/maintenance of existing streets. FISCAL IMPACT: E.8 Packet Pg. 212 The CIP will be funded by a combination of Measure “I”, RMRA, and Gas Tax funds. Should City Council approve recommendations 2 and 3, staff recommends the authorization expense appropriations from the following table. Proposed Expenditure Budget Fund 46 (Capital Improvements - Streets) 46-900-321-000-000 $660,480.00 ATTACHMENTS: • Attachment 1: Construction Agreement (PDF) • Attachment 2 - Hardy & Harper, Inc. Proposal (PDF) • Attachment 3: Project Locations (PDF) • Attachment 4: Willdan Proposal (PDF) • Attachment 5: Contract Inspect Svcs Agreement Willdan (PDF) APPROVALS: Kamran Dadbeh Skipped 06/16/2022 3:52 PM Shanita Tillman Completed 06/16/2022 3:52 PM Finance Completed 06/22/2022 12:05 PM City Manager Completed 06/22/2022 12:52 PM City Council Pending 06/28/2022 6:00 PM E.8 Packet Pg. 213 01247.0006/669201.8 PUBLIC WORKS AGREEMENT By and Between CITY OF GRAND TERRACE and HARDY & HARPER INC. E.8.a Packet Pg. 214 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -1- 01247.0006/669201.8 AGREEMENT FOR PUBLIC WORKS SERVICES BETWEEN THE CITY OF GRAND TERRACE AND HARDY & HARPER INC. This AGREEMENT FOR PUBLIC WORKS SERVICES BETWEEN THE CITY OF GRAND TERRACE AND HARDY & HARPER INC. (herein “Agreement”) is made and entered into this ____ day of June, 2022 by and between the City of GRAND TERRACE, a California municipal corporation (“City”) and HARDY & HARPER 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 E.8.a Packet Pg. 215 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -2- 01247.0006/669201.8 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 E.8.a Packet Pg. 216 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -3- 01247.0006/669201.8 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 E.8.a Packet Pg. 217 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -4- 01247.0006/669201.8 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 E.8.a Packet Pg. 218 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -5- 01247.0006/669201.8 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. E.8.a Packet Pg. 219 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -6- 01247.0006/669201.8 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 E.8.a Packet Pg. 220 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -7- 01247.0006/669201.8 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 Five Hundred Seventy Thousand Dollars and No Cents ($570,000.00) (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, E.8.a Packet Pg. 221 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -8- 01247.0006/669201.8 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 E.8.a Packet Pg. 222 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -9- 01247.0006/669201.8 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: E.8.a Packet Pg. 223 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -10- 01247.0006/669201.8 Michael Murray Vice President (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 E.8.a Packet Pg. 224 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -11- 01247.0006/669201.8 herein as an independent contractor of City and shall remain at all times as to City a wholly 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. E.8.a Packet Pg. 225 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -12- 01247.0006/669201.8 (c) Professional liability (errors & omissions) insurance. Contractor shall maintain professional liability insurance that covers the Services to be performed in connection 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.8.a Packet Pg. 226 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -13- 01247.0006/669201.8 (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 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 E.8.a Packet Pg. 227 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -14- 01247.0006/669201.8 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 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: E.8.a Packet Pg. 228 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -15- 01247.0006/669201.8 (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 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. E.8.a Packet Pg. 229 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -16- 01247.0006/669201.8 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 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. E.8.a Packet Pg. 230 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -17- 01247.0006/669201.8 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 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 E.8.a Packet Pg. 231 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -18- 01247.0006/669201.8 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 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 E.8.a Packet Pg. 232 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -19- 01247.0006/669201.8 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 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 E.8.a Packet Pg. 233 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -20- 01247.0006/669201.8 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. 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 E.8.a Packet Pg. 234 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -21- 01247.0006/669201.8 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 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 E.8.a Packet Pg. 235 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -22- 01247.0006/669201.8 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. 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 E.8.a Packet Pg. 236 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -23- 01247.0006/669201.8 “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 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] E.8.a Packet Pg. 237 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) -24- 01247.0006/669201.8 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: Hardy & Harper Inc. By: ___________________________________ Name: Michael Murray Title: Vice President, By: ___________________________________ Name: Title: Address: 32 Rancho Circle Lake Forest, CA 92630 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. E.8.a Packet Pg. 238 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/669201.8 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. E.8.a Packet Pg. 239 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/669201.8 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. E.8.a Packet Pg. 240 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/669201.8 A-1 EXHIBIT “A” SCOPE OF WORK I. Contractor shall perform all of the work and comply with all of the specifications and requirements, 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.2021/2022 Capital Improvement Project CIP No. 2022-1 in accordance with approved plans, specifications, Addenda 1 through 5 and submitted proposal. This includes, but is not limited to, the removal and replacement of existing asphalt paving (various depths) at designated locations shown on the plans; micro-mill existing asphalt concrete (AC); cold mill existing AC 2” deep and construct 2” asphalt rubber hot mix (ARHM) overlay; construct asphalt rubber aggregate membrane (ARAM) and polymer modified emulsified asphalt-reclaimed asphalt pavement aggregate (PME-RAP) slurry; and reinstall pavement markings and striping. 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. Contractor shall provide safe and continuous passage for pedestrian and vehicular traffic in accordance with the Work Area Traffic Control Handbook (WATCH), latest edition. E.8.a Packet Pg. 241 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/669201.8 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) E.8.a Packet Pg. 242 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/669201.8 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. Payment will be based upon the actual quantities installed or constructed, unless otherwise specified. II.A retention of ten percent (10%) 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 $570,000 as provided in Section 2.1 of this Agreement. E.8.a Packet Pg. 243 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) Exhibit C-1 E.8.a Packet Pg. 244 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) E.8.a Packet Pg. 245 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Contractor shall perform all work timely and in accordance with plans and specifications as provided in Exhibit A and such work shall be completed within 55 days of the Notice to Proceed issued by the Contract Officer. II.The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. E.8.a Packet Pg. 246 At t a c h m e n t : A t t a c h m e n t 1 : C o n s t r u c t i o n A g r e e m e n t ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) E.8.b Packet Pg. 247 At t a c h m e n t : A t t a c h m e n t 2 - H a r d y & H a r p e r , I n c . P r o p o s a l ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) E.8.b Packet Pg. 248 At t a c h m e n t : A t t a c h m e n t 2 - H a r d y & H a r p e r , I n c . P r o p o s a l ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) E.8.c Packet Pg. 249 At t a c h m e n t : A t t a c h m e n t 3 : P r o j e c t L o c a t i o n s ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) June 14, 2022 Kamran Dadbeh, City Engineer City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Subject: Proposal for Inspection Services for the City of Grand Terrace Street Overlay Project – Barton Road from Town Square to Mt. Vernon & Van Buren Street from Mt. Vernon to West End Dear Kamran Dadbeh: Willdan Engineering is pleased to present the City of Grand Terrace with this proposal to assist with inspecting the City of Grand Terrace’s Barton Road from Town Square to Mt. Vernon & Van Buren Street from Mt. Vernon to West End Street Overlay Project. Willdan Engineering has been providing inspection services to California cities and counties for 58 years, including Rancho Cucamonga, Redlands, Highland, Yucca Valley, as well as within the City of Grand Terrace. We are well suited to partner with the City of Grand Terrace to achieve a fast- track approach for planned infrastructure projects. Willdan will provide staffing professionals who are committed to providing the City with top-quality service. Serving public agencies is the cornerstone of Willdan’s business. Willdan's proposed staff members are experienced in working together as an integral part of municipal agency improvement projects and can provide exemplary staff for the City’s role requests. The following strengths are what set us apart from the competition and make us the best-qualified team for this assignment: Highly Skilled Construction Manager and Inspector. Our proposed Public Works Inspector, Joseph Putrino, has 34 years of experience in Public Works, with strong leadership qualities and the ability to manage projects successfully. He possesses exceptional decision-making capabilities and is meticulous in ensuring project specifications are compliant with contracts and requirements. Joseph Putrino offers extensive pavement and slurry seal experience to the City of Grand Terrace. Unmatched Pavement Improvement Project Experience. Willdan has provided construction management and/or inspection on an extensive amount of pavement related projects for over 58 years, including overlays, bike lanes, rehabilitations, slurry seals, and street widening. Our project team has experience working together on hundreds of public works projects throughout the region. City of Grand Terrace Experience. Willdan has provided construction management and inspection services to several of the City of Grand Terrace’s projects. These include 23400 Westwood Street Improvements, 12040 La Cadena Drive Improvements, Civil Work Tract 18071, San Bernardino Indian Health Center, 22200 Barton Road, and the Side Walk 2017 improvements. Our staff has hands‐on working knowledge and direct experience implementing City of Grand Terrace standards. Willdan looks forward to the opportunity to assist the City of Grand Terrace on this very important project. Should you have any questions regarding our proposal, please do not hesitate to contact me at (562) 364-8198. Respectfully submitted, Approval and Authorization to Proceed By: WILLDAN ENGINEERING CITY OF GRAND TERRACE Chris Baca, RCI, CESSWI Director of Construction Management Signature and Inspection Services Date 910005\06-140\P22-198_23533 E.8.d Packet Pg. 250 At t a c h m e n t : A t t a c h m e n t 4 : W i l l d a n P r o p o s a l ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) City of Grand Terrace Page | 2 WILLDAN CONSTRUCTION SERVICES EXPERTISE Willdan provides expertise in all areas of project and construction management, contract administration, construction inspection and observation, grant funding administration and compliance, labor compliance, and community relations. Willdan's corporate philosophy emphasizes strong leadership, cost effectiveness, timely performance, and consistent reciprocal communication with clients and internal and external resources. Our resident engineers, construction managers, and construction inspectors offer reliable service, quality workmanship, use of good judgment, fair and equitable treatment, and adherence to our corporate integrity. These experienced team members identify and correct discrepancies, ambiguities, omissions, or conflicts in plans, specifications, and bid schedules that might generate misinterpretation and/or lead to agency and contractor disagreements. Our professionals are adept at anticipating issues before they arise through continual review of project plans, specifications, contractors’ schedules, and contract documents. Potential problems are brought to the attention of the City's Project Manager and/or the contractor, along with constructive recommendations for solutions, so that costly delays and negative impacts to the public and the project are mitigated. METHODOLOGY Project Understanding Willdan understands the City of Grand Terrace requires the services of a qualified construction inspector to provide full-time inspection services for 30 working days and will include street overlay on Barton Road from Town Square to Mt. Vernon & Van Buren Street from Mt. Vernon to West End. Project Approach Willdan provides expertise in all areas of construction management, inspection, labor compliance, and community relations to residents and businesses affected by construction. Our experienced team members serve as construction managers, resident engineers, and inspectors and provide significant insight for identifying and correcting discrepancies, ambiguities, omissions, or conflicts in contract documents that could generate misinterpretation and/or disagreements between the City and the contractor. Our goal is to anticipate or diminish potential problems before they arise through continual review of project plans, specifications, contractor’s schedule, and other contract documents. The graphic below shows potential challenges when undertaking a pavement project and how Willdan works to mitigate those challenges. E.8.d Packet Pg. 251 At t a c h m e n t : A t t a c h m e n t 4 : W i l l d a n P r o p o s a l ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) City of Grand Terrace Page | 3 Our team is adept at: ▪ Anticipating job site problems and dealing with issues in a professional, straightforward fashion ▪ Calling job site problems to the project manager’s and/or contractor’s attention ▪ Offering constructive recommendations and achieving cooperation from the contractor ▪ Addressing concerns of the public Our approach to issue resolution is to: ▪ Obtain and document the facts surrounding the issue ▪ Develop reasonable solutions in conjunction with the contractor and City project manager ▪ Respond quickly and effectively so that job progress and quality do not suffer Through close communication with the City’s project staff, timely corrective action is taken to alleviate potential adverse impacts of work progress, costly change orders, and construction claims. QUALITY CONTROL/QUALITY ASSURANCE Willdan will perform Quality Assurance and Quality Control of this project through a diligent review of all work and documentation. Quality Assurance and Quality Control will begin with the pre-construction meeting, at which time the scope of the project and control requirements will be reviewed with the General Contractor. Once construction begins, the next step in the Quality Control process will be the verification of materials and components to be installed. Once the material and components arrive onsite, Willdan Inspectors will spot- check these materials and components to verify they match the construction documents. The Inspectors will maintain a detailed record of samples, tests, material releases, and certificate of compliance for the project. Willdan Inspectors closely monitor projects to ensure compliance with all contract requirements. Most of our inspectors have American Construction Inspectors Association (ACIA) certification and attend regular seminars, college courses, and in-house presentations to keep abreast of current construction technologies. In addition to ACIA, many of our staff are certified QSPs and QSDs and are provided with the latest information concerning the implementation of the State Water Board permit. Willdan’s inspectors have knowledge of basic soil dynamics and are highly cognizant of the crucial role of soils compaction in construction. They are also familiar with the need for general material testing for asphalt and concrete. The basic goal of the quality assurance plan is to provide quality work delivered on time and within budget. We do this by adhering to the following steps. Willdan adopted Caltrans' Construction Manual (LAPM) as our in-house quality standard and have incorporated Caltrans' prescribed standards and procedures into our everyday inspection routine. This ensures we meet federal and state guidelines from the start. Contractor Compliance Our inspection staff has extensive experience with a myriad of public works projects and our staff has a clear understanding of the issues surrounding inspection of the work. For example, when constructing trench backfill, our inspector will ensure adequate compaction has been achieved. Inspectors will monitor the work for conformance with the plans and specifications. Willdan’s inspectors will monitor the contractor’s operations for conformance with City compaction standards by working with the City’s approved material testing lab and will not accept any trench backfill or allow any pavement repair until proper compaction is verified by the lab. Delivery tickets will be checked to ensure materials match the approved submittals. Address contractor coordination issues Identify key dates to maintain the project schedule Investigate constructability Discuss project sequencing Track progress E.8.d Packet Pg. 252 At t a c h m e n t : A t t a c h m e n t 4 : W i l l d a n P r o p o s a l ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) City of Grand Terrace Page | 4 SCOPE OF WORK Construction Inspection The Construction Manager and Inspector will observe work performed by the contractor for general conformance with the plans and specifications. The project inspector will be expected to be onsite at all times during construction activities. 1. Review plans, specifications, and all other contract- and construction-related documents. 2. Conduct a field investigation of the project area to become familiar with the existing facilities and the project environment. 3. Become familiar with traffic control plans, construction schedule, construction sequence, and permit requirements from other agencies. 4. Verify that the contractor conforms to the design survey line and grades. 5. Attend weekly progress meetings with the construction manager, contractor, and subcontractors. 6. Assist with review of up to (8) shop drawings/submittals, including resubmittals. 7. Provide full-time and as-needed construction inspection, including night inspection, of the work to monitor materials and methods for compliance with plans, specifications, and contract documents; address and document non- conforming items as they are discovered. 8. Monitor compliance with Cal OSHA requirements and compliance with all local, state, and federal regulations. Although Willdan will monitor the activities, it is the contractor’s sole responsibility to provide workers with a safe working environment. 9. Provide City’s labor compliance manager with federally-compliant labor and equipment reports. 10. Monitor compliance with the Clean Air Act and the Clean Water Act (National Pollutant Discharge Elimination System – NPDES best management practices). Also, monitor the contractor’s compliance with approved SWPPP. 11. Meet with the contractor at the beginning of each day and review the proposed work plan, including specific details that may affect progress. 12. Conduct daily measurements of quantities of work with the contractor. 13. Review actual contractor performance throughout the day and discuss discrepancies with the contractor as they occur. 14. Assist in coordination of engineering support, surveying, specialty inspections, and fieldwork by utility companies. 15. Ensure compliance of Underground Service Alert notification/delineation. 16. Evaluate the contractor’s operation and production with respect to quality and progress and report to the City’s Project Manager and Construction Manager. 17. Photograph continuous property frontages along the street alignment once prior to construction and once immediately following construction. Maintain a photographic record of key elements of each major operation of work each day, with increased detail in situations of potential changes or claims. 18. Closely monitor testing results and require the contractor to provide corrective measures to achieve compliance. 19. Maintain copies of all permits needed to construct the project and enforce special requirements of each. 20. Prepare and maintain detailed daily diary inspector reports on construction progress. 21. Prepare clear and concise letters and memoranda, as needed. Establish a solid paper trail. 22. Maintain field file bound workbooks and Willdan electronic file during construction, including a cumulative record of quantities constructed, daily and weekly reports, working day reports, change order documentation, photographs, and other documentation. 23. Analyze delays and review claims on a timely basis and make recommendations to the construction manager. 24. Assist with the review and evaluation of up to (3) change orders. 25. Provide complete measurements and calculations documented to administer progress payments. 26. Maintain and submit a clean set of plans marked in red for as-built corrections on record drawings to be filed with the City. (City’s design consultant will transfer the contractor’s record drawings to original Mylar drawings). 27. Prepare a punch list at substantial completion and follow up with the contractor regarding progress of corrections. 28. Schedule a final inspection with the City and applicable agencies; prepare, distribute, and inspect corrections to the final punch list for completion; and recommend final acceptance. 29. Prepare documentation for final payment to the contractor. 30. Upon project completion, provide the finished set of project workbooks to the City. E.8.d Packet Pg. 253 At t a c h m e n t : A t t a c h m e n t 4 : W i l l d a n P r o p o s a l ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) City of Grand Terrace Page | 5 PROJECT FEE Willdan proposes to perform the required inspection services on a time and materials (T&M) basis. Willdan’s proposal is based upon the City’s estimated 30 Working Day construction schedule. Our proposed not-to-exceed fee for the Scope of Work identified above is $30,240.00. Classification Rate Hrs. Total Construction Manager and Public Works Inspector (Senior Public Works Inspector No. V) $126 240 Hrs. $30,240 Total Not-to-Exceed Fee $30,240.00 1 Hours are estimated and will be depended upon the Contractor’s final phasing and scheduling of the work. 2 Additional service needed beyond this duration will be provided on a time-and-material basis at Willdan's standard hourly rates. 3 Overtime inspection services are not included but will be billed at 1.5 times normal hourly rate if required and may require adjustment to the approved budget. Work performed by support staff with titles not explicitly listed herein will be charged in accordance with Willdan's Grand Terrace Project specified hourly rates. E.8.d Packet Pg. 254 At t a c h m e n t : A t t a c h m e n t 4 : W i l l d a n P r o p o s a l ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) City of Grand Terrace Page | 6 Joseph Putrino Construction Manager/Senior Public Works Observer Profile Summary Education: ▪ College of the Desert, Palm Desert ▪ Uniform Building Code, Fire Code, and ADA Codes, Bergen Community College ▪ Construction Management, Architectural Drafting, and Blueprint Reading Courses Registration: ▪ Certified Building Inspector, International Code Council ▪ Certified Plumbing Inspector, International Code Council ▪ Certified Mechanical Inspector, International Code Council ▪ Contractor License Class A and B, No. 636747 Experience: ▪ 34 Years Mr. Joseph Putrino is experienced in all aspects of public works construction projects. He possesses extensive experience with estimating project costs, progress schedules, bid preparation, and complete project administration. Relevant Project Experience 22051 Grand Terrace Road, City of Grand Terrace, California. Public Works Inspector. The project includes inspection for the public improvements associated with the construction of the new building at 22051 Grand Terrace Road. 22200 Barton Road, City of Grand Terrace, California. Public Works Inspector. The project includes public works inspection for the public improvements associated with the construction of the new 5,342 SF multi-tenant building located at 22200 Barton Road. 23400 Westwood Rough Grading Project, City of Grand Terrace, California. Public Works Inspector. The project included construction of new on and off-site improvements at the remodeled San Bernardino Indian Health Center. The project involved the installation of new curb/gutter, rough grading and finish grading of new parking lot, drainage structures, asphalt repair, and other appurtenant work. Slurry Seal, De Luz Community Service District, California. Construction Manager. Willdan provided construction management, inspection, and labor compliance for the De Luz Community Service District’s Slurry Seal project. 22172 Barton Road/Taco Bell Rough Grading Project, City of Grand Terrace, California. Public Works Inspector. The project included construction of new on and off-site improvements at the remodeled Taco Bell at 22172 Barton Rd. The project involved the installation of new curb/gutter, rough grading and finish grading of new parking lot, drainage structures, asphalt repair, and other appurtenant work. Police Substation CP 15-07, City of Palm Springs, California. Public Works Inspector. The project includes ADA upgrades to the police station restrooms, water features, and landscape improvements. Public Library Improvements, City of Yorba Linda, California. Public Works Inspector. The project included engineering design services to prepare construction plans to demolish the existing Public Library for the City of Yorba Linda at 18181 Imperial Highway. The scope of work included hazardous material testing, utility coordination, and contract document preparation. Fire Station No. 4 Remodel and Expansion City Project 15-25, City of Palm Springs, California. Senior Public Works Observer. The project involved remodeling and expanding the fire station approximately 2,820 square feet to address sleeping quarter separation, decontamination areas, and general ADA compliance issues. The project construction encompassed demolition, asbestos remediation, structural foundations, structural retrofit and framing, utility equipment yard enclosure, electrical service transformer, wet and dry utilities, fire line, sprinkler and alarm systems, keyless entry system, vehicle emission exhaust system, sand/oil separator, site furnishings and furniture, lighting fixtures, doors and windows, miscellaneous concrete work, ADA-compliant ramps, site drainage, landscaping, signing and striping, emergency alerting system, back-up generator, and fuel tank. E.8.d Packet Pg. 255 At t a c h m e n t : A t t a c h m e n t 4 : W i l l d a n P r o p o s a l ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/784435.1 4/18/2022 1 CITY OF GRAND TERRACE AGREEMENT FOR CONTRACT SERVICES FOR INSPECTION SERVICES FOR THE 2021-22 CAPITAL IMPROVEMENT PROJECT This “CITY OF GRAND TERRACE AGREEMENT FOR CONTRACT SERVICES FOR INSPECTION SERVICES FOR THE 2021-22 CAPITAL IMPROVEMENT PROJECT” (herein “Agreement”) is made and entered into this ____ day of _______, 2022, by and between the CITY OF GRAND TERRACE, a California municipal corporation (“City”) and Willdan, a California limited liability company (herein “Consultant”). NOW, THEREFORE, the parties hereto agree as follows: 1. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all of the terms and conditions of this Agreement, the Consultant shall perform the work or services set forth in the “Scope of Services” attached hereto as Exhibit “A” and incorporated herein by reference. Consultant warrants that it has the experience and ability to perform all work and services required hereunder and that it shall diligently perform such work and services in a professional and satisfactory manner. 1.2 Compliance With Law. All work and services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency of competent jurisdiction. 1.3 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the services required by the Agreement. 1.4 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. 2. COMPENSATION 2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference, but not exceeding the maximum contract amount of Thirty Thousand Two Hundred Forty Dollars ($30,240.00) (“Contract Sum”). 2.2 Invoices. Each month Consultant 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, Consultant is certifying compliance with all provisions of the Agreement. The invoice shall detail charges for all necessary and actual expenses by the following categories: E.8.e Packet Pg. 256 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 2 01247.0006/784435.1 4/18/2022 labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Consultant shall not invoice City for any duplicate services performed by more than one person. City shall independently review each invoice submitted by the Consultant 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 Consultant which are disputed by City, City will use its best efforts to cause Consultant to be paid within forty five (45) days of receipt of Consultant’s correct and undisputed invoice; however, Consultant 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 any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by the City of any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. 2.3 Additional Services. 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 Services or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order is first given by the Contract Officer to the Consultant, incorporating therein any adjustment in (i) the Contract Sum for the actual cost of the extra work, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Consultant. Any increase in compensation of up to ten percent (10%) of the Contract Sum but not exceeding a total contract amount of Five Thousand Dollars ($5,000) or in the time to perform of up to ninety (90) days may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. 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. 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Consultant 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 the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Consultant, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding thirty (30) 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 Consultant, 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 Consultant 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 E.8.e Packet Pg. 257 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 3 01247.0006/784435.1 4/18/2022 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 Consultant be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of the Agreement pursuant to this Section. 3.4 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) year from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). 4. COORDINATION OF WORK 4.1 Representative of Consultant. Willdan is hereby designated as being the representative of Consultant authorized to act on its behalf with respect to the work and services specified herein and make all decisions in connection therewith. All personnel of Consultant and any authorized agents shall be under the exclusive direction of the representative of Consultant. Consultant shall utilize only competent personnel to perform services pursuant to this Agreement. Consultant shall make every reasonable effort to maintain the stability and continuity of Consultant’s staff and subcontractors and shall keep City informed of any changes. 4.2 Contract Officer. City Manager, or such person as may be designated by the City Manager, is hereby designated as being the representative the City authorized to act in its behalf with respect to the work and services specified herein and to make all decisions in connection therewith (“Contract Officer”). 4.3 Prohibition Against Subcontracting or Assignment. Consultant shall not contract with any entity to perform in whole or in part the work or services required hereunder without the express written approval of the City. Neither this Agreement nor any interest herein may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City. Any such prohibited assignment or transfer shall be void. 4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Consultant, its agents or employees, perform the services required herein, except as otherwise set forth. Consultant shall perform all services required herein as an independent contractor of City with only such obligations as are consistent with that role. Consultant 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, or that it is a member of a joint enterprise with City. 5. INSURANCE AND INDEMNIFICATION 5.1 Insurance Coverages. The Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Agreement including any extension thereof, the following policies of insurance which shall cover all elected and appointed officers, employees and agents of City: (a) Commercial General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence E.8.e Packet Pg. 258 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 4 01247.0006/784435.1 4/18/2022 basis for bodily injury, personal injury and property damage. The policy of insurance shall be in an amount not less than $1,000,000.00 per occurrence or if a general aggregate limit is used, either the general aggregate limit shall apply separately to this contract/location, or the general aggregate limit shall be twice the occurrence limit. (b) Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for the Consultant against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by the Consultant in the course of carrying out the work or services contemplated in this Agreement. (c) Automotive Insurance (Form CA 0001 (Ed 1/87) including “any auto” and endorsement CA 0025 or equivalent). A policy of comprehensive automobile liability insurance written on a per occurrence for bodily injury and property damage in an amount not less than either (i) bodily injury liability limits of $100,000 per person and $300,000 per occurrence and property damage liability limits of $150,000 per occurrence or (ii) combined single limit liability of $1,000,000. Said policy shall include coverage for owned, non-owned, leased, hired cars, and any other automobile. (d) Professional Liability. Professional liability insurance appropriate to the Consultant’s profession. This coverage may be written on a “claims made” basis, and must include coverage for contractual liability. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of or related to services performed under this Agreement. The insurance must be maintained for at least 5 consecutive years following the completion of Consultant’s services or the termination of this Agreement. During this additional 5-year period, Consultant shall annually and upon request of the City submit written evidence of this continuous coverage. (e) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”. (f) Subcontractors. Consultant 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 be subject to all of the requirements stated herein. 5.2 General Insurance Requirements. All of the above policies of insurance shall be primary insurance and shall name the City, elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or officers, employees or agents may apply in excess of, and not contribute with Consultant’s insurance. The insurer is deemed hereof to waive all rights of subrogation and contribution it may have against the City, officers, employees and agents and their respective insurers. The insurance policy must specify that where the primary insured does not satisfy the self-insured retention, any additional insured may satisfy the self-insured retention. All of said policies of insurance shall provide that said insurance may not be amended or cancelled by the insurer or any party hereto without providing thirty (30) days prior written notice by certified mail return receipt requested to the City. In the event any of said policies of insurance are E.8.e Packet Pg. 259 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 5 01247.0006/784435.1 4/18/2022 cancelled, the Consultant shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section 5.1 to the Contract Officer. No work or services under this Agreement shall commence until the Consultant has provided the City with Certificates of Insurance, additional insured endorsement forms or appropriate insurance binders evidencing the above insurance coverages and said Certificates of Insurance or binders are approved by the City. City reserves the right to inspect complete, certified copies of and endorsement to all required insurance policies at any time. Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City. The insurance required by this Agreement shall be satisfactory only if issued by companies qualified to do business in California, rated “A” or better in the most recent edition of Best Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or better, unless such requirements are waived by the City’s Risk Manager or other designee of the City due to unique circumstances. 5.3 Indemnification. To the full extent permitted by law, Consultant 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 Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (“indemnitors”), or arising from Consultant’s or indemnitors’ reckless or willful misconduct, or arising from Consultant’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: a. Consultant 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 attorney’s fees incurred in connection therewith; b. Consultant 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 activities of Consultant hereunder; and Consultant 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 Consultant 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 Consultant hereunder, Consultant 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 attorney’s fees. Consultant shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Consultant shall be fully responsible to indemnify City hereunder E.8.e Packet Pg. 260 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 6 01247.0006/784435.1 4/18/2022 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 Consultant in the performance of professional services 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 Consultant and shall survive termination of this Agreement. 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION 6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies 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 and shall keep such records for a period of three years following completion of the services hereunder. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. 6.2 Reports. Consultant shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement or as the Contract Officer shall require. 6.3 Confidentiality and Release of Information. (a) All information gained or work product produced by Consultant in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than the City without prior written authorization from the Contract Officer. (b) Consultant 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 Consultant gives the City notice of such court order or subpoena. (c) If Consultant provides any information or work product in violation of this Agreement, then the City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. (d) Consultant shall promptly notify the City should Consultant be served with any summons, complaint, subpoena, notice of deposition, request for documents, E.8.e Packet Pg. 261 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 7 01247.0006/784435.1 4/18/2022 interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed thereunder. The City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with the City and to provide the City with the opportunity to review any response to discovery requests provided by Consultant. 6.4 Ownership of Documents. All studies, surveys, data, notes, computer files, reports, records, drawings, specifications, maps, designs, photographs, documents and other materials (the “documents and materials”) prepared by Consultant in the performance of this Agreement shall be the property of the City and shall be delivered to the City upon request of the Contract Officer or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by the City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Moreover, Consultant 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. 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. 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; Default. In the event that Consultant is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, the City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, if circumstances warrant. During the period of time that Consultant is in default, the City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices. If Consultant does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. 7.3 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, Consultant shall file a statutory claim pursuant to Government Code Sections 905 et. seq. and 910 et. seq., in order to pursue any legal action under this Agreement. 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 E.8.e Packet Pg. 262 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 8 01247.0006/784435.1 4/18/2022 different times, of any other rights or remedies for the same default or any other default by the other party. 7.4 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 written notice to Consultant. In addition, the Consultant may terminate this Contract at any time for cause, upon sixty (60) days’ advance written notice to City. Upon receipt of any notice of termination, Consultant shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Consultant has initiated termination, the Consultant 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. In the event the Consultant has initiated termination, the Consultant shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder, but not exceeding the compensation provided therefore in the Schedule of Compensation Exhibit “C”. 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. 7.5 Termination for Default of Consultant. If termination is due to the failure of the Consultant 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 Consultant 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 Consultant for the purpose of set-off or partial payment of the amounts owed the City as previously stated. 8. MISCELLANEOUS 8.1 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on 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. Consultant shall take affirmative action to ensure 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 8.2 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Consultant, 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 Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. 8.3 Notice. 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 E.8.e Packet Pg. 263 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 9 01247.0006/784435.1 4/18/2022 City title), City of Grand Terrace, 22795 Barton Rd, Grand Terrace, CA 92313, and in the case of the Consultant, to the person(s) 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. 8.4 Integration; Amendment. 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. This Agreement may be amended at any time by the mutual consent of the parties by an instrument in writing. 8.5 Severability. In the event that part of 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 portions 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. 8.6 Waiver. No delay or omission in the exercise of any right or remedy by non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. A party’s consent to or approval of any act by the other party requiring the party’s consent or approval shall not be deemed to waive or render unnecessary the other party’s consent to or approval of any subsequent act. 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. 8.7 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 any be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees, whether or not the matter proceeds to judgment. 8.8 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. 8.9 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. 8.10 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, E.8.e Packet Pg. 264 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 10 01247.0006/784435.1 4/18/2022 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. Consultant 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. Consultant 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 employee, as a result of consequence of obtaining or being awarded any agreement. Consultant 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. Consultant’s Authorized Initials _______ 8.11 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 the following page.] E.8.e Packet Pg. 265 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 11 01247.0006/784435.1 4/18/2022 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 CONSULTANT: WILLDAN, a California limited liability company By: __________________________________ Name: Title: By: __________________________________ Name: Title: Address: 13191 Crossroads Parkway North Suite 405 Industry, California Tel: 562-908-6200 Fax: 562-695-2120 ______________________________ Two corporate officer signatures required when Consultant 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. CONSULTANT’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 CONSULTANT’S BUSINESS ENTITY. E.8.e Packet Pg. 266 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/784435.1 4/18/2022 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. E.8.e Packet Pg. 267 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/784435.1 4/18/2022 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. E.8.e Packet Pg. 268 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01006-0001/301444.1 A-1 EXHIBIT “A” SCOPE OF SERVICES I. Consultant will perform contract inspection services for the City of Grand Terrace 2021-22 Capital Improvement Project, which includes resurfacing work on Barton Rd and Van Buren St as awarded in the Resurfacing Contract for the 2021/2022 CIP. Consultant’s Services shall include, but not be limited to, the following tasks: 1. Review plans, specifications, and all other contract- and construction-related documents. 2. Conduct a field investigation of the project area to become familiar with the existing facilities and the project environment. 3. Become familiar with traffic control plans, construction schedule, construction sequence, and permit requirements from other agencies. 4. Verify that the contractor conforms to the design survey line and grades. 5. Attend weekly progress meetings with the construction manager, contractor, and subcontractors. 6. Assist with review of up to (8) shop drawings/submittals, including resubmittals. 7. Provide full-time and as-needed construction inspection, including night inspection, of the work to monitor materials and methods for compliance with plans, specifications, and contract documents; address and document nonconforming items as they are discovered. 8. Monitor compliance with Cal OSHA requirements and compliance with all local, state, and federal regulations. Although Willdan will monitor the activities, it is the contractor’s sole responsibility to provide workers with a safe working environment. 9. Provide City’s labor compliance manager with federally-compliant labor and equipment reports. 10. Monitor compliance with the Clean Air Act and the Clean Water Act (National Pollutant Discharge Elimination System – NPDES best management practices). Also, monitor the contractor’s compliance with approved SWPPP. 11. Meet with the contractor at the beginning of each day and review the proposed work plan, including specific details that may affect progress. E.8.e Packet Pg. 269 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/784435.1 4/18/2022 12. Conduct daily measurements of quantities of work with the contractor. 13. Review actual contractor performance throughout the day and discuss discrepancies with the contractor as they occur. 14. Assist in coordination of engineering support, surveying, specialty inspections, and fieldwork by utility companies. 15. Ensure compliance of Underground Service Alert notification/delineation. 16. Evaluate the contractor’s operation and production with respect to quality and progress and report to the City’s Project Manager and Construction Manager. 17. Photograph continuous property frontages along the street alignment once prior to construction and once immediately following construction. Maintain a photographic record of key elements of each major operation of work each day, with increased detail in situations of potential changes or claims. 18. Closely monitor testing results and require the contractor to provide corrective measures to achieve compliance. 19. Maintain copies of all permits needed to construct the project and enforce special requirements of each. 20. Prepare and maintain detailed daily diary inspector reports on construction progress. 21. Prepare clear and concise letters and memoranda, as needed. Establish a solid paper trail. 22. Maintain field file bound workbooks and Willdan electronic file during construction, including a cumulative record of quantities constructed, daily and weekly reports, working day reports, change order documentation, photographs, and other documentation. 23. Analyze delays and review claims on a timely basis and make recommendations to the construction manager. 24. Assist with the review and evaluation of up to (3) change orders. 25. Provide complete measurements and calculations documented to administer progress payments. 26. Maintain and submit a clean set of plans marked in red for as-built corrections on record drawings to be filed with the City. (City’s design consultant will transfer the contractor’s record drawings to original Mylar drawings). 27. Prepare a punch list at substantial completion and follow up with the contractor regarding progress of corrections. E.8.e Packet Pg. 270 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/784435.1 4/18/2022 28. Schedule a final inspection with the City and applicable agencies; prepare, distribute, and inspect corrections to the final punch list for completion; and recommend final acceptance. 29. Prepare documentation for final payment to the contractor. 30. Upon project completion, provide the finished set of project workbooks to the City. E.8.e Packet Pg. 271 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) 01247.0006/784435.1 4/18/2022 B-1 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) E.8.e Packet Pg. 272 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) C-1 01247.0006/784435.1 4/18/2022 EXHIBIT “C” SCHEDULE OF COMPENSATION I. The total compensation for the Services shall not exceed $30,240.00 as provided in Section 2.1 of this Agreement. II. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task sub budget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8. III. The City will compensate Consultant 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. E.8.e Packet Pg. 273 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) D-1 01247.0006/784435.1 4/18/2022 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Consultant shall perform and complete all Services within 30 days from the date of Notice to Proceed issued by the Contract Officer. E.8.e Packet Pg. 274 At t a c h m e n t : A t t a c h m e n t 5 : C o n t r a c t I n s p e c t S v c s A g r e e m e n t W i l l d a n ( R e s u r f a c i n g C o n t r a c t A w a r d f o r C I P F i s c a l Y e a r 2 0 2 0 / 2 1 ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES JUNE 14, 2022 Council Chamber Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO June 14, 2022 City Council Minutes PowerPoint Presentations 2 3 4 5 2020-21 2020-21 2021-22 2021-22 2022-23 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Property Tax $2,082,593 $2,197,948 $3,989,040 $1,985,232 $2,078,595 Residual Receipts -RPTTF $1,798,163 $1,354,741 $176,900 $2,603,817 $2,402,700 Proceeds from Sale of Property $0 $0 $1,798,700 $2,070,601 $0 Franchise Fees $445,000 $613,598 $620,000 $644,000 $635,000 Licenses, Fees & Permits $329,090 $439,948 $490,000 $329,822 $665,400 Sales Tax $750,000 $1,064,567 $988,000 $1,110,053 $1,125,400 Intergovernmental Revenue/Grants $20,000 $54,606 $31,220 $66,492 $60,500 Charges for Services $100,300 $138,916 $141,100 $73,229 $178,000 Fines & Forfeitures $70,000 $73,219 $66,300 $44,274 $66,300 Miscellaneous $0 $20,091 $0 $14,885 $26,710 Use of Money & Property $67,500 $31,140 $34,660 $28,416 $34,660 Wastewater Receipts $318,349 $318,349 $318,349 $318,349 $318,349 Transfers In $0 $0 $0 $0 $50,000 Residual Receipts -Sr Ctr $0 $0 $0 $0 $0 Total Revenues $5,980,995 $6,307,123 $8,654,269 $9,289,170 $7,641,614 Property Tax 58.6% Sales Tax 14.7% Franchise Fees 8.3% Licenses, Fees & Permits 8.7% Waste Water Receipts 4.2% Intergovt Revenue/Grants 0.8% Charges for Services 2.3% Use of Money & Property 0.5%Fines & Forfeitures 0.9% Transfers In 0.7% Miscellaneous 0.3% City of Grand Terrace 2022-23 General Fund Proposed Revenues 2020-21 2020-21 2021-22 2021-22 2022-23 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Salaries $1,094,006 $1,088,247 $1,552,512 $1,356,254 $1,482,899 Benefits $1,118,326 $964,910 $1,149,757 $1,044,541 $1,356,069 Materials & Supplies $190,955 $206,360 $224,770 $218,657 $323,605 Professional/Contractual Services $3,572,540 $3,646,766 $3,674,258 $3,743,232 $4,198,568 Equipment $1 $0 $0 $3,000 $0 Lease of Facility/Equipment $19,323 $17,513 $19,600 $17,615 $12,000 Utilities $143,858 $168,416 $176,448 $199,166 $229,448 Overhead Cost Allocation ($81,950)($68,192)($84,950)($84,950)($81,950) Capital Projects $213,419 $90,615 $0 $113,922 $0 Debt Service $0 $15,968 $0 $0 $0 Transfers Out $139,750 $200,725 $110,000 $110,000 $110,700 Total Expenditures $6,410,228 $6,331,328 $6,822,395 $6,721,437 $7,631,339 $1,482,899 $1,356,069 $323,605 $4,198,568 $12,000 $229,448 ($81,950) $110,700 Salaries Benefits Materials & Supplies Prof/Cont Services Lease of Equip Utilities Overhead Cost Alloc Transfers Out ($500,000)$500,000 $1,500,000 $2,500,000 $3,500,000 $4,500,000 City of Grand Terrace 2022-23 General Fund Proposed Expenditures 10 Event Date Budget Introduction Tue., May 24th Budget Adoption Tue., June 14th Special Events •Revision of Grand Terrace Municipal Code (GTMC) Chapter 8.50 •Chapter 8.50 which was adopted in 1997. •The structure of the ordinance addresses Aerial Displays, Street Events and Special Events. •The Special Events section treats all types of events in a similar nature. Although there is a vasts difference in impacts and concerns Clearly Defines Events One time or recurring events •Anticipated attendance exceeds the occupancy limits •The Special Event has public health and safety impacts •Underlying approved or conditionally approved use for a property does not include the use Needs for permit scales to scope of event Addresses First Amendment Issues Addresses Food Concessions •Nonprofit or educational events; •Where food is an integral part of the event, such as food fairs, farmers’ markets, a fairs or carnivals, or other similar events; •The location of the Special Event provides an area for the sale of food, beverages, and/or merchandise, such as a concession stand, snack bar, food court, or other similar areas; •When sale of food and/or beverages is otherwise permitted pursuant to applicable law. Provides Clear Application Proceedures Cleary calls out procedures for applications Requirements are comprehensive yet scalable to the event Address Free Speech Issues Includes Conditions for use Provides for enforcement Recommendations Recommended that the City Council rescind the existing Grand Terrace Municipal Code (GTMC) 8.50 Special Events and adopt the revised code to the Grand Terrace Municipal Code (GTMC) 8.50 City of Grand Terrace Unfunded Pension & OPEB Liabilities Unfunded Pension & OPEB Liabilities Unfunded Pension Liability CalPERS For CalPERS, the City has three plans, Miscellaneous Plan, PEPRA Miscellaneous Plan, and the Miscellaneous Second Tier Plan. Per the CalPERS Actuarial Valuation dated June 30, 2020, the unfunded liability and funded ratio for each of the Plans is as follows: Misc.PEPRA Second Plan Plan Tier Plan Unfunded Accrued Liability 5,526,787$ 56,733$ 53,849$ Funded Ratio 67.70%88.50%91.20% June 30, 2020 Valuations Unfunded Pension & OPEB Liabilities For CalPERS, the City has three plans, Miscellaneous Plan, PEPRA Miscellaneous Plan, and the Miscellaneous Second Tier Plan. Per the CalPERS Actuarial Valuation dated June 30, 2020, the unfunded liability and funded ratio for each of the Plans is as follows: Misc.PEPRA Second Plan Plan Tier Plan Unfunded Accrued Liability 5,526,787$ 56,733$ 53,849$ Funded Ratio 67.70%88.50%91.20% June 30, 2020 Valuations The annual costs for each of the Plans is made up of the Normal Cost and the Unfunded Accrued Liability (UAL). For Fiscal Year 2022-23 those costs are as follows: Misc.PEPRA Second Plan Plan Tier Plan Total Normal Cost 7,731$ 47,544$ 31,938$ 87,213$ UAL Contribution 579,800 10,202 7,856 597,858 587,531$ 57,746$ 39,794$ 685,071$ Unfunded Pension & OPEB Liabilities The Normal Costs are based on the City’s payroll and are reasonable and within the City’s annual budget.We need to have a way to reduce the UAL payment or find an alternative way to fund it annually.I have attached Schedules for each of the Plans which shows the current amortization schedules and two alternative schedules based on a 15 Year and a 10 Year amortization schedule.For the Miscellaneous Plan with a 15-year amortization period there is an estimated savings of $606,245 and with a 10- year amortization period there is an estimated savings of $1,741,469. Unfunded Pension & OPEB Liabilities Reasons to Prefund •Greater expected rate of return (discount rate)which lowers your liabilities. •Investment flexibility with Section 115 Trust compared to restrictions on general fund investments (Govt. Code 53216). •Contributions into trust are “assets”that offset liabilities on the financial statements. •Can help with the City’s credit ratings. •OPEB assets are accessible for OPEB expenses at any time. •Prefunding has no downside other than market fluctuation (like pension). Unfunded Pension & OPEB Liabilities Additional Discretionary Employer Contributions CalPERS allows employers to make additional discretionary payments (ADPs)at any time and in any amount.These optional payments serve to reduce the UAL and future required contributions and can result in significant long-term savings. The ADPs can be used to stabilize annual contributions as a fixed dollar amount, percent of payroll or percent of revenue.The schedules as mentioned above are an example of how the ADPs reduce the City’s costs. Unfunded Pension & OPEB Liabilities IRS Section 115 Trust Governmental entities can establish an IRS Section 115 Trust,these are irrevocable and must be used forpensionorOPEBobligations.A couple of the companies that provide the Section 115 Trusts have IRSPrivateLetterRulingsontheirPlans.CalPERS also offers a Section 115 Trust. This would provide the City with an alternative to sending funds to CalPERS that will allow for greater localcontroloverassets,investment by a professional fund management team selected and monitored by theCity,with future excess contributions transferred to CalPERS at the City’s discretion to reduce the City’s NetPensionLiability. These programs can be established as a multiple employer trust so that public agencies regardless of sizecanjointheprogramtoreceivethenecessaryeconomiesofscaletokeepadministrativefeeslowandavoidanysetupcosts.The trust permits the City,under federal and state law,to invest in a more diversified arrayofinvestmentstomaximizeinvestmentreturnslongterm. Unfunded Pension & OPEB Liabilities Funding Plans •Pension Obligation Bonds •Use one-time revenue sources •Lower the minimum General Fund Reserve level percentage •Contribute a certain percentage of any given year’s realized General Fund surplus •Annual appropriation in each year’s budget Unfunded Pension & OPEB Liabilites Unfunded Other Post Employment Benefit Plan The City’s OPEB Plan currently does not have any plan assets and is a pay as you go.We budget and make the retiree medical premiums each fiscal year which is approximately $36,000 per fiscal year. As of June 30,2021 the unfunded OPEB Liability was $1,964,307 with a discount rate of 1.92%,because the City does not have any plan assets. Unfunded Pension & OPEB Liabilities California Employers’ Retiree Benefit Trust Fund (CERBT) The CERBT is Section 115 trust fund dedicated to prefunding OPEB for all eligible California Public Agencies. By joining this trust fund, California public agencies can help finance future costs in a large part from investment earnings provided by CalPERS. Prefunding provides the following benefits:Contribute to preserving a positive credit ratingGenerate investment income from employer-controlled contributions to pay for future retiree benefitsReduce future employer cash flow requirements and budget dependency with investment incomeReduce the OPEB Liability reported on the City’s annual financial statementsHaving plan assets allows the use of a higher discount rate which in turns lowers the reported liability The money earned can be used on annual basis to make the retiree medical payments and can free up additional funds for the General Fund budget. Unfunded Pension & OPEB Liabilities •Questions Appropriations Limit for FY 2022-23 Appropriations Limit FY 2022-23 On November 6, 1979, California voters approved the Gann Spending Limitation Initiative (Proposition 4) establishing Article XIIIB of the State Constitution. Article XIIIB sets limits on the amount of tax revenues that the State and most local governments can appropriate within a given fiscal year. Each year, the State and local governments must adopt a resolution establishing an Appropriations Limit, also known as the “Gann Limit”. Fiscal Year 1984-85 appropriations serve as the base for this limit, with adjustments being made annually to reflect increases in population, the cost of living, and financial responsibility transfers. Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations and other non-tax proceeds are not subject to the limit. All tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers within a two-year period. Appropriations Limit FY 2022-23 The calculation is based on two factors: •The change in the cost of living is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of non-residential new construction. •The change in population is defined as either a change in the City’s population or a change in the County’s population,whichever is greater. Change in California per capita personal income (provided by California Department of Finance):7.55% The following are the changes in population from 2021 to 2022 (provided by DOF): City of Grand Terrace (-0.68%) County of San Bernardino 0.14% Since Option 2 (change in San Bernardino County population)is greater than the City of Grand Terrace population change,it is recommended to be used as the population factor for the FY 2022-23 Appropriations Limit calculation. Appropriations Limit FY 2022-23 APPROPRIATIONS SUBJECT TO THE LIMIT FY 2022-23 Total Revenue $ 12,459,276 Less Non-Proceeds of Tax 6,689,466 A) Total Appropriations Subject to the Limit $ 5,769,810 APPROPRIATIONS LIMIT B) FY 2021-22 Appropriations Limit 16,164,085 C) Change Factor**% Increase Factor Cost of Living Adjustment 7.55 1.0755 Population Adjustment 0.14 1.0014 Change Factor (1.0755 x 1.0014)1.0770 D) Increase (decrease) in Appropriations Limit $ 1,244,635 E) FY 2022-23 Appropriations Limit (B x C)$ 17,408,719 REMAINING APPROPRIATIONS CAPACITY (E-A)$ 11,638,909 Remaining Capacity as Percent of the FY 2022-23 Appropriations Limit 66.86% Appropriations Limit FY 2022-23 Adopt a Resolution of the City Council of the City of Grand Terrace, California, Establishing the Appropriations Limit For Fiscal Year 2022-23, Including Adoption of the Price Factor and Population Factor Change Factor for the Appropriations Limit Calculation Questions