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10/25/2022
CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● OCTOBER 25, 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: 886 4955 0943 Password: 646676 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 October 25, 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 Family Court Awareness Month Proclamation C. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Regular Meeting – 10/11/2022 DEPARTMENT: CITY CLERK 3. City Department Monthly Activity Report - August 2022 RECOMMENDATION: Receive and file. DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council October 25, 2022 City of Grand Terrace Page 3 4. Cancellation of City Council Meetings Scheduled for November 22, 2022, and December 27, 2022 RECOMMENDATION: Adopt a Resolution Cancelling the City Council Meetings Scheduled for November 22, 2022, and December 27, 2022 DEPARTMENT: CITY MANAGER 5. Authorize Purchase Order for Veterans Freedom Park Equipment with Per Capital Grant Funds RECOMMENDATION: 1. Authorize the expenditure of up to $16,000 from Parks Fund (Fund 49) for the purchase of two ADA compliant bleachers 2. Authorize City Manager to execute a purchase order and all necessary sales documentation to procure two ADA complaint bleachers not to exceed the grant awarded amount DEPARTMENT: PUBLIC WORKS 6. Authorize Purchase Order for TJ Austin Park Equipment with Per Capital Grant Funds RECOMMENDATION: 1. Authorize the expenditure of up to $5,500 from Parks Fund (Fund 49) for the purchase of surface repair; 2. Authorize City Manager to execute a purchase order and all necessary sales documentation to procure surface repair not to exceed the grant awarded amount DEPARTMENT: PUBLIC WORKS 7. Approval of a Professional Services Agreement with Revenue & Cost Specialists for a User Fee Study RECOMMENDATION: 1. Approve a professional services agreement with RCS for a Comprehensive Citywide User Fee and Rate Study for a not-to-exceed amount of $28,000. 2. Authorize the Mayor to execute the Professional Services Agreement with RCS for a Comprehensive Citywide User Fee and Rate Study subject to City Attorney approval as to form. DEPARTMENT: FINANCE Agenda Grand Terrace City Council October 25, 2022 City of Grand Terrace Page 4 8. Approval of Amendment to the Agreement Between the City of Grand Terrace and Interwest Consulting Group, Inc. to Increase Compensation RECOMMENDATION: 1. Approve Amendment No. 3 to the Agreement for On-Call Engineering Services with Interwest Consulting Group Inc. (dated July 14, 2020), increase contract amount from $100,000 to $125,000; and 2. Authorize the City Manager to execute the above-mentioned amendments subject to the City Attorney’s approval as to form. DEPARTMENT: PUBLIC WORKS D. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda, but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. E. PUBLIC HEARINGS 9. Art in Public Places Ordinance RECOMMENDATION: 1) Conduct a public hearing, and 2) Direct the City Attorney to Read the title of the Ordinance, waive further reading, and introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, FINDING ZONING CODE AMENDMENT 22- 04 EXEMPT FROM CEQA PURSUANT TO SECTION 15061(B)(3) AND AMENDING TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY AMENDING CHAPTER 18.06 (DEFINITIONS), AND ADDING CHAPTER 18.81 ESTABLISHING ART IN PUBLIC PLACES REQUIREMENTS DEPARTMENT: COMMUNITY DEVELOPMENT 10. Tentative Tract Map 21-01 (Tentative Tract Map No. 20395) and Environmental 21-03 RECOMMENDATION: 1) Conduct a public hearing, and Agenda Grand Terrace City Council October 25, 2022 City of Grand Terrace Page 5 2) Adopt A RESOLUTION OF THE CITY COUNCIL ADOPTING AN ENVIRONMENTAL EXEMPTION PURSUANT TO SECTION 15332 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES (ENVIRONMENTAL 21-03) APPROVING TENTATIVE TRACT MAP 21-01 (TENTATIVE TRACT MAP NO. 20395) PROPOSING A SIX LOT SUBDIVISION ON A 3.8-ACRE LOT, LOCATED AT 11899 ROSEDALE AVENUE (APN 0275- 083-03-0000). DEPARTMENT: COMMUNITY DEVELOPMENT F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS 11. Funding for PARS Section 115 Trust RECOMMENDATION: Consider the amount for the initial funding for the PARS Section 115 Trust and select the Investment Strategy. DEPARTMENT: FINANCE 12. Approval of Revisions to the City's Fiscal Policies and First Reading & Introduction of Ordinances Amending Chapters 3.24 & 3.26 of the Municipal Code Thereby Changing Purchasing Procedure Thresholds to $25,000, Changing City Manager’s Sale of Surplus Supplies, Materials, and Equipment Authority to $25,000, and Increasing City Manager's Authorization Limit to $25,000 and Adding a Conflict of Interest & Unlawful Activities Provision to Chapter 3.24 Thereof RECOMMENDATION: 1. Read by title only, waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.24.070, 3.24.080, 3.24.090, AND 3.24.120 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY CHANGING THE THRESHOLDS FOR PURCHASING PROCEDURES, SALE OF SURPLUS SUPPLIES, MATERIALS AND EQUIPMENT, AND CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000; AND ADDING SECTION 3.24.190 TO CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ADDS REQUIREMENTS RELATING TO CONFLICTS OF INTEREST AND UNLAWFUL ACTIVITY; and Agenda Grand Terrace City Council October 25, 2022 City of Grand Terrace Page 6 2. Read by title only, waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.26.030(A) AND 3.26.050(E) OF CHAPTER 3.26 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH INCREASES THE CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000 FOR CONTRACTS FOR PUBLIC PROJECTS AND MAINTENANCE, AS DEFINED THEREIN; and 3. Approve the proposed revisions to the attached City Fiscal Policies, subject to the City Council’s approval of the above-mentioned ordinances (where applicable) DEPARTMENT: FINANCE H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Doug Wilson Council Member Sylvia Robles Mayor Pro Tem Bill Hussey Mayor Darcy McNaboe J. CITY MANAGER COMMUNICATIONS K. CLOSED SESSION - NONE L. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, November 8, 2022, at 6:00 PM. Any request to have an item placed on a future agenda must be made in writing and submitted to the City Clerk’s office and the request will be processed in accordance with Council Procedures. CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● OCTOBER 11, 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, October 11, 2022, at 6:00 p.m. Invocation The Invocation was led by Pastor Rudy Chacon of the Living Word Inland Empire. Pledge of Allegiance Council Member Sylvia Robles led the Pledge of Allegiance. Attendee Name Title Status Arrived Darcy McNaboe Mayor Present Bill Hussey Mayor Pro Tem Present Sylvia Robles Council Member Present Doug Wilson Council Member Present Jeff Allen Council Member Present Konrad Bolowich City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Terry Shea Interim Finance Director Present A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA - NONE B. SPECIAL PRESENTATIONS - NONE C. CONSENT CALENDAR RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Sylvia Robles, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen 1. Waive Full Reading of Ordinances on Agenda C.2 Packet Pg. 7 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 1 1 , 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 October 11, 2022 City of Grand Terrace Page 2 2. Approval of Minutes – Regular Meeting – 09/27/2022 3. August 18, 2022, Planning Commission Meeting Minutes Update RECEIVE AND FILE. 4. Adoption of Resolutions Updating the Signature Authority for the City's Bank of America, California Asset Management Program, LAIF, US Bank Safekeeping, Arrowhead Credit Union, MIDAmerica, and Empower Retirement Accounts ADOPT THE ATTACHED RESOLUTIONS UPDATING THE SIGNATURE AUTHORITY FOR THE CITY’S BANK OF AMERICA, CALIFORNIA ASSET MANAGEMENT PROGRAM, LAIF, US BANK SAFEKEEPING, ARROWHEAD CREDIT UNION, MIDAMERICA, AND EMPOWER RETIREMENT ACCOUNTS D. PUBLIC COMMENT Juanita Odenbaugh, Grand Terrace expressed her concern regarding the accountability of the City Council’s prior approval of CUP 19-01 Truck Trailer Storage Yard. E. PUBLIC HEARINGS - NONE F. NEW BUSINESS 5. Report on Sale of Child Care Facility's Proceeds Terry Shea, Interim Finance Director gave the staff report and PowerPoint presentation for this item. RECEIVE AND FILE RESULT: APPROVED [UNANIMOUS] MOVER: Sylvia Robles, Council Member SECONDER: Jeff Allen, Council Member AYES: McNaboe, Hussey, Robles, Wilson, Allen G. UNFINISHED BUSINESS 6. Funding for PARS Section 115 Trust Terry Shea, Interim Finance Director gave the staff report for this item. C.2 Packet Pg. 8 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 1 1 , 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 October 11, 2022 City of Grand Terrace Page 3 City Council directed staff to return to the City Council with additional information providing scenarios of other cities using the service, strategies on what that service looks like, and sample funding policies. CONSIDER AMOUNT FOR THE INITIAL FUNDING FOR THE PARS SECTION 115 TRUST RESULT: CONTINUED H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL 1. Motion: Explore Steps to Secure a Post Office Location in Grand Terrace Requested by: Mayor Darcy McNaboe RESULT: ADOPTED [4 TO 1] MOVER: Darcy McNaboe, Mayor SECONDER: Jeff Allen, Council Member AYES: Darcy McNaboe, Bill Hussey, Sylvia Robles, Jeff Allen NAYS: Doug Wilson I. CITY COUNCIL COMMUNICATIONS Council Member Jeff Allen Council Member Jeff Allen commented on board meetings and events that she attended. Click here to view the report. Council Member Doug Wilson Council Member Doug Wilson commented on board meetings and events that she attended. Click here to view the report. Council Member Sylvia Robles Council Member Sylvia Robles commented on board meetings and events that she attended. Click here to view the report. Mayor Pro Tem Bill Hussey Mayor Pro Tem Bill Hussey commented on board meetings and events that she attended. Click here to view the report. Mayor Darcy McNaboe Mayor Darcy McNaboe commented on board meetings and events that she attended. Click here to view the report. C.2 Packet Pg. 9 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 1 1 , 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 October 11, 2022 City of Grand Terrace Page 4 J. CITY MANAGER COMMUNICATIONS - NONE K. RECESS TO CLOSED SESSION Mayor McNaboe recessed the regular meeting of the City Council to closed session at 6:40 p.m. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(c); one or more potential cases 2. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(b); one or more potential cases RECONVENE TO OPEN SESSION Mayor McNaboe reconvened the regular meeting of the City Council from closed session at 7:10 p.m. REPORT OUT OF CLOSED SESSION Agenda Item K.1 – Mayor McNaboe announced that there was no reportable action taken, however, direction was provided to staff. Agenda Item K.2 – Mayor McNaboe announced that there was no reportable action taken, however, direction was provided to staff. L. ADJOURN Mayor McNaboe adjourned the Regular Meeting of the City Council at 7:10 p.m. The Next Regular Meeting of the City will be held on Tuesday, October 25, 2022, at 6:00 p.m. _________________________________ Darcy McNaboe, Mayor _________________________________ Debra L. Thomas, City Clerk C.2 Packet Pg. 10 Mi n u t e s A c c e p t a n c e : M i n u t e s o f O c t 1 1 , 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: October 25, 2022 Council Item TITLE: City Department Monthly Activity Report - August 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 August 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 August Report - [Final] (PDF) C.3 Packet Pg. 11 APPROVALS: Konrad Bolowich Completed 10/19/2022 10:48 AM City Manager Completed 10/19/2022 2:49 PM City Council Pending 10/25/2022 6:00 PM C.3 Packet Pg. 12 MONTHLY REPORT August 2022 PRESENTED BY THE CITY MANAGER’S OFFICE C.3.a Packet Pg. 13 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) C.3.a Packet Pg. 14 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 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 ................................................................. Unavailable Weekend Code ....................................................................... Unavailable Parking/Graffiti ........................................................................ Unavailable Animal Control ........................................................................ Unavailable Public Works .................................................................................................. 42 Engineering Division ............................................................................. 43 Maintenance ......................................................................................... 43 Park Maintenance ................................................................................ 45 Burrtec Waste Generation Report .......................................... Unavailable Sheriff’s Contract ............................................................................................ 49 Law Enforcement Services ................................................................... 50 San Bernardino County Fire ........................................................................... 52 Emergency Management Services ...................................................... 53 C.3.a Packet Pg. 15 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 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 Page 1 C.3.a Packet Pg. 16 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) &LW\RI*UDQG7HUUDFH &LW\&OHUN¶V'HSDUWPHQW &LW\&OHUN x $JHQGD3URFHVVLQJ x (OHFWLRQV x 5HFRUGV0DQDJHPHQW x )33&)LOLQJV x 3XEOLF5HFRUGV Page 2 C.3.a Packet Pg. 17 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) City of Grand Terrace City Clerk’s Department . DATE: October 25, 2022 TO: City Manager’s Office FROM: Debra Thomas, City Clerk City Clerk’s Office SUBJECT: AUGUST 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 of this department are Council Support Services, Records Management, Administrative Processing, Board Administration, and Election Services. Each of these functions requires 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 August 2022 is two (2), spending a total of sixteen (16) hours preparing the agenda packet producing 497 pages. AGENDA PROCESSING/POSTING MONTH Regular Meeting Special Meeting Totals March 2 0 2 April 2 1 3 May 2 0 2 June 2 0 2 July 2 0 2 August 2 0 2 Total Processed 12 1 13 Page 3 C.3.a Packet Pg. 18 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 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 August is five (5) and the number of Ordinances processed is two (2). RESOLUTIONS AND ORDINANCES PROCESSED RESOLUTIONS ORDINANCES MONTHLY TOTALS March 4 0 4 April 3 0 3 May 12 2 14 June 5 1 6 July 2 0 2 August 5 2 7 Total Processed 31 5 36 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 the 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 the presentation will be held at another venue. There is one (1) Commendation and two (2) In Memoriam Adjournments issued for the month of August 2022. Month Certificate of Acknowledgment w/Pin Certificate of Recognition w/Pin Commendation w/Pin In Memoriam Adjournments Certificate of Participation Proclamation Total March 0 0 1 1 0 1 3 April 0 7 0 0 0 2 9 May 0 0 0 0 0 3 3 June 0 0 1 0 0 0 1 July 0 0 0 1 0 0 1 August 0 0 1 2 0 0 3 Total 0 7 3 4 0 6 20 Page 4 C.3.a Packet Pg. 19 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 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 includes contracts and agreements, and it is the responsibility of the City Clerk to obtain signatures, distribute originals, log, scan, and file. There were three (3) agreements processed for the month of August 2022. CONTRACTS & AGREEMENTS PROCESSED March 0 April 2 May 2 June 5 July 5 August 3 Total 17 RECORDS REQUESTS The City Clerk’s office received eight (8) Requests for Copies of Public Records for the month of August 2022. All those 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 was 41. RECORDS REQUEST SUMMARY Month Requests Received Completed Within 10 Days Completed with 14-Day Extension # of Pages Provided Letter to Requestor – No Records March 10 8 2 77 4 April 12 12 0 44 3 May 10 8 2 270 4 June 10 8 2 436 2 July 16 15 1 466 6 August 8 8 0 41 4 Total Requests 66 59 7 1,334 23 Page 5 C.3.a Packet Pg. 20 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 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 August 2022, the City Clerk’s office responded to 264 telephone calls from residents, contractors, vendors, consultants, and in-house customer service assistance to City staff. TELEPHONE CUSTOMER SERVICE March 242 April 236 May 385 June 394 July 264 July 277 Total Calls 1,798 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, 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 March 1.0 0.5 0.5 0.5 0 2.5 April 1.0 0.5 0.5 0.5 0 2.5 May 1.0 1.5 1.0 1.0 5.0 9.5 June 0 0.5 0.5 0 0 1.0 July 0 0.5 0.5 0 0 1.0 August 1.0 0.5 0.5 0 0 2.0 TOTAL # HOURS 4.0 4.0 3.5 2.0 5.0 18.5 Page 6 C.3.a Packet Pg. 21 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 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 7 0 3 Planning Commission 5 0 0 Parks & Recreation Committee 5 0 0 Page 7 C.3.a Packet Pg. 22 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) &LW\RI*UDQG7HUUDFH &LW\0DQDJHU¶V2IILFH &LW\0DQDJHU¶V2IILFH x &LW\0DQDJHU¶V2IILFH x +XPDQ5HVRXUFHV x 6HQLRU&HQWHU Page 8 C.3.a Packet Pg. 23 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) DATE: October 25, 2022 TO: Konrad Bolowich, City Manager City Manager’s Office FROM: Debra L. Thomas, City Clerk SUBJECT: August-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. Page 9 C.3.a Packet Pg. 24 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 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. Page 10 C.3.a Packet Pg. 25 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) TABLE 1 Recruitment Activity Description Jul- 2022 Aug- 2022 Sept- 2022 Oct- 2022 Nov- 2022 Dec- 2022 Recruitments Initiated 2 1 0 0 0 0 Recruitments in Progress 2 2 0 0 0 0 Recruitments Pending 2 2 0 0 0 0 Applications Processed 20 58 0 0 0 0 New Hires Processed 2 3 0 0 0 0 Description Jan- 2023 Feb- 2023 Mar- 2023 Apr- 2023 May- 2023 Jun- 2023 Recruitments Initiated 0 0 0 0 0 0 Recruitments in Progress 0 0 0 0 0 0 Recruitments Pending 0 0 0 0 0 0 Applications Received/Processed 0 0 0 0 0 0 New Hires Processed 0 0 0 0 0 0 TABLE 2 Employee Job Performance Activity Description Jul- 2022 Aug- 2022 Sept 2022 Oct- 2022 Nov- 2022 Dec- 2022 Evaluations Processed 0 0 0 0 0 0 Description Jan- 2023 Feb- 2023 Mar- 2023 Apr- 2023 May- 2023 Jun- 2023 Evaluations Processed 0 0 0 0 0 0 Page 11 C.3.a Packet Pg. 26 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 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- 2022 Aug- 2022 Sept- 2022 Oct- 2022 Nov- 2022 Dec- 2022 Nutrition Program (# of meals served) 675 975 Homebound Meals 315 434 Bingo Bridge Bunco Coffee with Megan Exercise Classes Garden Club Morning Glories (quilting) Movies with Solomon Paint Classes Card Game Night (Wednesday) Zumba Kings Corner Cribbage Cell Phone Class Loteria SPECIAL EVENTS Monthly Birthday Celebration Entertainment (2nd Fri. each mo.) Volunteer Meeting Hydration Station Bus Pass Distribution 4th of July Party / Sept Pizza Party / Health Screening Christmas / Holiday Celebration Monthly Summary Attendance (Accounts for a senior participating in any activity/program. One senior may have participated in 2 or more programs, not including meals.) Page 12 C.3.a Packet Pg. 27 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) Description *Jan -2023 *Feb 2023 **Mar -2023 Apr- 2023 May- 2023 Jun- 2023 Nutrition Program (# of meals served) Homebound Meals Arts and Crafts Classes Bingo Bridge Bunco Coffee with Shari Exercise Classes Garden Club Morning Glories (quilting) Movies with Solomon Paint Classes Card Game Night (Wednesday) Zumba Kings Corner Cribbage Cell Phone Class Loteria SPECIAL EVENTS Monthly Birthday Celebration Entertainment (2nd Fri. each mo.) Volunteer Meeting Hydration Station Bus Pass Distribution 4th of July Party / Sept Pizza Party Health Screening Monthly Summary Attendance (Accounts for a senior participating in any activity/program. One senior may have participated in 2 or more programs, not including meals.) ** - Due to COVID-19, the Senior Center will only be providing limited meals. Page 13 C.3.a Packet Pg. 28 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) 1 0 100 200 300 400 500 600 700 800 900 July August September October November December 675 975 315 434 Senior Center (2022 -23) July-2022 -December-2022 # of Meals Served Homebound Meals 898.4 898.6 898.8 899 899.2 899.4 899.6 899.8 900 January February March April May June Senior Center (2022-23) January-2023 -June-2023** # of Meals Served Homebound Meals ** - Due to COVID-19, the Senior Center will only be providing limited meals. Page 14 C.3.a Packet Pg. 29 At t a c h m e n t : C i t y M a n a g e r A u g u s t 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 u g u s t 2 0 2 2 ) TABLE 2 Senior Center Blue Mountain Silver Liner # of Passengers Description Jul- 2022 Aug- 2022 Sept- 2022 Oct- 2022 Nov- 2022 Dec- 2022 Within City Limits (Senior Center, Stater Brothers, Library) 381 358 Outside City Limits (Walmart, 99cent store, Ross) 0 0 0 0 0 0 Special Events/Trips 0 0 0 0 0 0 Description Jan- 2023 Feb- 2023 Mar- 2023 Apr- 2023 May- 2023 Jun- 2023 Within City Limits (Senior Center, Stater Brothers, Library) 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- 2022 Aug- 2022 Sept- 2022 Oct- 2022 Nov- 2022 Dec- 2022 Within City Limits (Senior Center, Stater Brothers, Library) 752 678 Outside City Limits (Walmart, 99cent store, Ross) 0 0 0 0 0 0 Special Events/Trips 0 0 0 0 0 0 Description Jan- 2023 Feb- 2023 Mar- 2023 Apr- 2023 May- 2023 Jun- 2023 Within City Limits (Senior Center, Stater Brothers, Library) Outside City Limits (Walmart, 99cent store, Ross) 0 0 0 0 0 0 Special Events/Trips 0 0 0 0 0 0 Page 15 C.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 u g u s t 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 u g u s t 2 0 2 2 ) 200 250 300 July August September October November December 381 358752 678 Senior Transportation July-2022 -December-2022 # of Passengers # of Rides 250 300 January February March April May June Senior Transportation January-2023 -June -2023 # of Passengers # of Rides Page 16 C.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 u g u s t 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 u g u s t 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. Page 17 C.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 u g u s t 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 u g u s t 2 0 2 2 ) TABLE 1 Financial Activity Description Jul- 2022 Aug- 2022 Sept- 2022 Oct- 2022 Nov- 2022 Dec- 2022 Invoices Processed 128 138 Checks Issued 84 168 Purchase Orders Established 10 50 Revenue Receipts Recorded 57 65 Description Jan- 2023 Feb- 2023 Mar- 2023 Apr- 2023 May- 2023 Jun- 2023 Invoices Processed Checks Issued Purchase Orders Established Revenue Receipts Recorded 128 84 10 57 138 168 50 65 0 25 50 75 100 125 150 175 Invoices Processed Checks Issued P.Os Established Revenue Receipts Recorded Financial Activity Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Page 18 C.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 u g u s t 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 u g u s t 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. 0 0.2 0.4 0.6 0.8 1 1.2 Invoices Processed Checks Issued P.Os Established Revenue Receipts Recorded Financial Activity Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Page 19 C.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 u g u s t 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 u g u s t 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 Activities/Items Added to Slideshow 0 0 Channel 3: Jan Feb Mar Apr May Jun City Council Meeting Replays Activities/Items Added to Slideshow Eblast Jul Aug Sep Oct Nov Dec Number of E-newsletters Distributed 3 0 Number of Subscribers 921 923 Change in Subscribers 40 2 Number of E-newsletters Opened* No Data No Data No Data No Data No Data No Data Eblast Jan Feb Mar Apr May Jun Number of E-newsletters Distributed Number of Subscribers Change in Subscribers Number of E-newsletters Opened* No Data No Data No Data No Data No Data No Data * New e-newsletter management system does not currently track emails opened. 2021-2022 City Communications Data: Page 20 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Facebook Jul Aug Sep Oct Nov Dec Posts 6 3 Total Reach* 5,625 4,660 Total Engagement** 452 510 Page Followers 2,667 2,681 New Page Followers 5 14 Facebook Jan Feb Mar Apr May Jun Posts Total Reach Total Engagement Page Followers New Page Followers * Reach refers to the number of unique people to have seen a post's content. ** Engagement refers to interactions with a post, such as post clicks, Likes, Comments or Shares. 5 Most Popular City Facebook Pages (By % of population) – San Bernardino County % of Pop. 1) Twentynine Palms 29.52% 2) Apple Valley 24.92% 3) Yucca Valley 26.19% 4) Grand Terrace 20.38% 5) Hesperia 15.84% 2,667 2,681 2,300 2,550 2,800 FACEBOOK PAGE FOLLOWERS Page 21 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Twitter Jul Aug Sep Oct Nov Dec Tweets 2 0 Impressions 494 221 Followers 338 343 New Followers 4 5 Twitter Jan Feb Mar Apr May Jun Tweets Impressions Followers New Followers YouTube Jul Aug Sep Oct Nov Dec Video Uploads 2 2 Video Views 221 226 Subscribers 179 182 Change in Subscribers 3 3 YouTube Jan Feb Mar Apr May Jun Video Uploads Video Views Subscribers Change in Subscribers *** Impressions refers to the number of times a tweet has been seen. 338 343 300 325 350 375 TWITTER PAGE FOLLOWERS Page 22 C.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 u g u s t 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 u g u s t 2 0 2 2 ) City News Jul Aug Sep Oct Nov Dec Articles 0 2 1/2-Page Ad 0 0 1/4-Page Ad 1 2 City News Jan Feb Mar Apr May Jun Articles 1/2-Page Ad 1/4-Page Ad AM 1640 Jul Aug Sep Oct Nov Dec Advertisement of City Events 2 0 AM 1640 Jan Feb Mar Apr May Jun Advertisement of City Events Burrtec Newsletter Jul Aug Sep Oct Nov Dec Bi-Monthly Newsletter 1 0 Burrtec Newsletter Jan Feb Mar Apr May Jun Bi-Monthly Newsletter Page 23 C.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 u g u s t 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 u g u s t 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 Page 24 C.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 u g u s t 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 u g u s t 2 0 2 2 ) City of Grand Terrace Planning and Development Services Department . DATE: October 17, 2022 TO: Konrad Bolowich, City Manager City Manager’s Office FROM: Luis Gardea, Building Official Planning and Development Services Department SUBJECT: AUGUST 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 Page 25 C.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 u g u s t 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 u g u s t 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 34 permits issued in August. Year to date a total of 68 permits have been issued with a total revenue of $25,690.77. In addition, a total number of 95 customers were assisted at the Building & Safety counter for the month of August. Monthly Revenue Year to Date Revenue $11,630.48 $25,690.77 Permits Issued Permits issued in August include, HVAC replacements, re-roofs, block wall, electrical panel upgrades and PV solar. Permits that are currently in construction include construction of a multitenant shopping center located at 22200 Barton Rd (Terrace Plaza). A permit was also issued for parking lot site improvements for Terrace Plaza and a double trash enclosure. Permit Activity -August 2022 Applications recv'd (49)Permits issued (34) Permits final (29)Business Occupancies (1) Expired Permits (38) Permit Activity -Year to Date Applications recv'd (83)Permits issued (68) Permits final (40)Business Occupancies (2) Expired Permits (83) Page 26 C.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 u g u s t 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 u g u s t 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-August 2022 (N) SFR (0)Commericial New (0)Commericial TI (0)SF Remodel (0) Block Wall (2)Reroofs (9)Water Heater / Plumbing (2)HVAC Mechanical (5) Solar (9)Panel Upgrades / Electrical (2)Patio Covers (2)Res. Alteration / Addition (3) Residential Permits Issued-Year to Date FY 2022-2023 SFR New (0)Block Walls / Retaining Walls (3)Reroofs (14) Water Heater / Plumbing (5)HVAC Mechanical (12)Solar (17) Panel Upgrades / Electrical (4)Patio Covers (3)Residential Alteration / Repair (6) Pools/Spa (0)Grading (0) Page 27 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 4 of 6 Inspections A total of 96 inspections were conducted in August, with 33 of them being Final inspections. Commercial Permits Issued -Year to Date FY 2022-23 Commercial Tenant Improvement (0)Signs (1) Electrical (0)Demolition (1) Grading (0)New Commerical (1) 0 50 100 150 200 250 BUILDING ELECTRICAL MECHANICAL PLUMBING DEMOLITION TOTAL NUMBER OF INSPECTIONS CONDUCTED July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Page 28 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 5 of 6 Major Projects Under Construction Major projects under construction include Terrace Plaza, Azure Hills commercial kitchen remodel, CVS voluntary accessibility upgrades, and new spray booth for Gerber Collision. Additionally, work is on-going at Wilden Pump for their parking lot expansion at 22038 Van Buren St. Project Description/Location Status 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 Azure Hills 22633 Barton Rd. 22633 Barton Rd. Commercial kitchen remodel Under Construction Gerber Collision 12190 la Crosse Ave 12190 La Crosse Ave. New spray booth Under Construction Plan Checking Activity For August 2022, a total number of twenty (15) plans were submitted for review and re- submittal. Plans submitted include PV solar, a patio cover, and tenant improvements. ADU, 1, 080 sq. Accessory dwelling unit. 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 Johnny Morris 22419 Barton Rd. 22419 Barton Rd. – Tenant improvements for boba shop. In Plan Check – 1st corrections issued. 21800 Barton Rd Suite 111 21800 Barton Rd. Suite111 – New Commercial manufacturing In Plan Check – 1st Page 29 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 6 of 6 Public Works Encroachment Permits Seven (7) Public Works/Encroachment Permit applications were taken in for the month of August. Seven (7) permits were issued for the month, which includes applications that were received in the previous month. 0 2 4 6 8 10 12 14 SoCal Gas Edison Optimum AT&T Other Total Encroachment Permits Issued July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June Page 30 C.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 u g u s t 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 u g u s t 2 0 2 2 ) City of Grand Terrace Planning and Development Services Department . DATE: October 14, 2022 TO: Konrad Bolowich, City Manager City Manager’s Office FROM: Planning and Development Services Department Planning Division SUBJECT: AUGUST 2022 PLANNING DIVISION MONTHLY REPORT This monthly report is presented to the City Manager to keep him informed of the activities within the Planning Division. OUR MISSION To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of a fiscally responsible government. OUR VISION Grand Terrace is an exceptionally safe and well managed City, known for its natural beauty and recreational opportunities; a vibrant and diverse local economy; a place where residents enjoy an outstanding quality of life that fosters pride and an engaged community, encouraging families to come and remain for generations. PLANNING DIVISION Planning Core Services ➢ Permit New Businesses ➢ Permit Alterations to Existing Uses ➢ Zoning Code & General Plan Administration ➢ RDA Dissolution ➢ Planning Commission ➢ Plan Review The Planning Division is budgeted for one full time Director, one full-time Associate Planner and one full-time Assistant Planner. All positions are filled and together constitute a minimum of 480 monthly service hours. Page 31 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 2 of 11 Activity Summary for Planning The Planning Division received 19 new applications in August, and 25 applications were carried over applications. Minor applications such as a new business, patio cover, or small room additions are handled as a Land Use application and typically processed within 2-3 days. Larger additions over 500 square feet or second dwelling units are handled administratively by staff with noticing, and those projects that are either new development or exceed the Director’s administrative authority are handled as Major Permits and are reviewed by the Planning Commission. Home occupation permits are for home based business, such as consulting, housekeeping, and small craft businesses. Application Summary for August 2022 Applications Number Received Carried Over Completed Under Review Major 2 12 1 13 Administrative 0 5 0 5 Land Use 8 3 10 1 Home Occupation 3 2 5 0 Sign 5 2 6 1 Special Event 0 1 1 0 DAB 0 0 0 0 Zoning Verification 1 0 0 1 Total 19 25 23 21 0 2 4 6 8 10 12 14 Major Administrative Land Use Home Occupation Sign Special Event DAB Zoning Verification Applications Received and Carried Over in August 2022 Under Review Completed Carried Over Received Page 32 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 3 of 11 Applications Received, Approved and/or Under Review Fiscal year 2021-2022 to date the Planning Division has received 38 applications for review, 25 applications from previous fiscal year remain under review. A comprehensive list of the applications and their status is at the end of the Planning Division’s report. New Businesses A Land Use Application for an existing business expansion and one change of business ownership were received in the month of August. 1. “Vegan Korner” – New Owner 2. “West Coast Arborist” – Business Expansion Overall, Land Use applications are the most predominant applications that the Planning Division processes, a total of eight Land Use applications were received. 0 5 10 15 20 Major Administrative Land Use Home Occupation Signs Special Event DAB Zoning Verification Applications Received Fiscal Year to Date July August September October November December January February March April May June 3 2 1 1 1 Land Use Applications -August 2022 Wall/Fences Shed/Accessory Structures Patio Covers/Sunrooms Pools New Businesses Minor Improvements Temporary Uses Business Expansion Page 33 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 4 of 11 Projects in Plan Check or Under Construction Projects in Plan Check or Under Construction Date Submitted Case No. Applicant Description Location Status 03/17/2022 SA 22-03, CUP 22-01, V 22-02, E 22-03, SGN 20-05-A1 Bickel Group Coffee Shop/ “Starbucks” 22220 Barton Road APN: 0275- 242-09 Planning Commission Approved on 8/18/2022 Bickel Group “Applicant” representing Golden Star Investments submitted the above applications proposing a shell building for a new single story coffee store with drive-thru lane approximately 1,000 sq. ft. Proposed site improvements include new trash enclosure, landscape, and site accessibility. The proposed project will consist of one building, parking, and landscaping. The property is zoned BRSP – General Commercial. It is part of the Barton Road Specific Plan zoned under General Commercial Planning Area 1 (P.A. 1). 1/2/2019 CUP 19-01 SA 19-03 E 19-05 GrandT-1 Inc. Industrial Semi- Trailer Storage Facility APN: 0275- 191-06, 30 Under Construction The project was approved by the City Council on August 25, 2020, upholding the Planning Commission determination to establish an industrial semi-trailer storage facility on approximately 22 acres. A maximum of 650 total semi-trailers, shipping and storage containers and chassis will be stored on the site at any given time. A 900 square foot caretaker’s admin office and a 4,800 square foot maintenance building will be constructed under an administrative submittal. The site is zoned M2-Industrial, the AG-2 Overlay District, and the FP-Floodplain Overlay District. The Community Benefit Agreement is in review. A rough grading permit has been issued. 11/2/2020 SA 20-08 CUP 21-01 V 20-01 LM 20-2 E 20-08 Bickel Group Multi-Tenant Commercial APN’s:0275- 242-10, 11 Under Construction At the public hearing held on March 18, 2021, the Planning Commission adopted Resolution 2021-01, approving the construction of a 5,342 square-foot Multi-tenant Shopping Center on 0.88-aces. There were no appeals made during the public hearing. 11/15/2020 SA 17-04 E 17-09 Todd Kesseler Single Family Residence 23400 Westwood Street Completed At the public hearing held on April 18, 2019, the Planning Commission adopted Resolution 2019-06, approving the construction of a 3,884-square foot single family home on a 1-acre lot. There were no appeals made during the public hearing Development Advisory Board (DAB) The Development Advisory Board is made up of the Planning and Development Services Director, Public Works Director, Consultant Building Official, Fire Marshal’s Office, the RHWCO Superintendent, and Colton Wastewater. The DAB meets to review conceptual plans for various projects and new development applications, and is conducted free of charge. No DAB meeting took place during the month of August. Page 34 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 5 of 11 Planning Commission The Planning Commission reviews new construction, subdivisions, variances and conditional use permits. They also make recommendations on zone changes, zoning code amendments, and general plan changes. One Planning Commission Meeting was held in the month of August and the following actions occurred: August 18, 2022: • The Planning Commission adopted a Resolution approving Site and Architectural Review 22-03, Variance 22-02, and Sign Program Amendment 20-04-A1 to construct a Starbucks with drive-through service “only” at 22220 Barton Road (APN: 0275-242-09-0000) and finding the Project categorically exempt from CEQA Guidelines, Section 15332 (Environmental 22-01). Conforming Uses and Grants The city was awarded funding for its Blue Mountain Trailhead and Trail application and continues to implement the grant. Staff was informed that through the efforts of Assembly Member Reyes, the city is the recipient of a $1.2 Million Dollar Specified Grant for the acquisition and development of the Blue Mountain Trail and Trailhead. This grant is funded through the State Budget and is non-competitive. Staff met with State representatives on August 15, 2019. Grant Status Grant Amount Blue Mountain Trailhead and Trail Grant Submitted on October 1, 2017. Site visit completed in November 2017. Awarded. Community workshop held on 4/11/2019. Community workshop #2 – July 19, 2021 $212,500 (Estimated Project cost $520,000) Specified Grant - Blue Mountain Trailhead and Trail Grant Non Competitive. Staff met with State Representatives and on August 15, 2019, and March 18, 2020– Property being negotiated with owner for access easement. 05-12-2021 - Interactive website presentation update by Hirsch and Associates $1.2 Million Local Early Access Planning Grant (LEAP) Over-the-counter grant complemented with technical assistance for the preparation and adoption of the sixth- cycle Regional Housing Needs Assessment and the City’s Housing Element. $65,000 Regional Early Access Planning Grant (REAP) One-time grant funding to regional governments and regional entities for planning activities that will accelerate housing production and facilitate. Staff support for the Housing Element. Page 35 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 6 of 11 Community Emergency Response Team CERT meetings continued to be held via Zoom. No CERT volunteer meetings were hold in the month of August. Attachment to Planning Division’s Report Applications Received, Approved and/or Under Review Major Applications - Site and Architectural Review Date Submitted Case No. Applicant Description Location Status 8/23/2022 SA 22-12 E 22-07 Jonathan Zane Triplexes APN:0275-211-36 Application deemed incomplete 8/23/2022 Jonathan Zane representing Candy Bozner submitted the above applications proposing the construction of a triplex residential building located on 0.27-acre lot located at APN: 0275-211-36-0000, zoned R2-Low Density Residential. 8/8/2022 TTM 22-01 E 19-05-A1 GrandT-1 Inc Tentative Parcel Map 11731 Terrace Avenue In review Patrick O’Brien of GrandT-1 has submitted the above applications proposing to adjust the existing parcel lines, separate the community garden referenced in the Community Benefit Agreement recorded on 12/10/2021 between the property owner and the City of Grand Terrace, and process a street vacation fronting the project site at Terrace Avenue. 01/14/2022 SA 22-01, V 22-01, E 22-01 Catherine Tran New Office/Retail Building 22881 Barton Rd APN: 0276-202-25 Project Submitted 11/17/2022. Deemed Incomplete on 03/18/2022. Staff continues to work with applicant. Jonathan Zane (“Applicant”) representing Catherine Tran submitted the above applications proposing a new office/retail multi-tenant shopping center. The proposed building is approximated to be 4,911 sq. ft. The proposed project will consist of (3) suites, parking, and landscaping. The property is zoned BRSP – Office Professional. It is part of the Barton Road Specific Plan zoned under (AP) Administrative Professional Planning Area 3 (P.A. 3). 11/17/2021 CUP 21-06 SA 21-09 E 21-07 V 21-02 SP 21-01 Sunoil Retail Group Gas Station 22505 Baron Road APN:1178-011-07 Project Submitted 11/17/2021. Deemed Incomplete on 2/4/2022. Staff met with the applicant on 2/10/2022 Second comments letter 7/13/2022 Page 36 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 7 of 11 The application is proposing the construction of a 2,660 square foot gas station and convenience store on a .36-acre parcel located at 22505 Barton Road (APN: 1178-011- 07-0000), zoned Barton Road Specific Plan, Village Commercial. The proposed gas station will have (4) four fueling stations pumps provides regular, diesel, and E85 fuels; the convenience store will consist of providing fresh hot, cold, and prepackaged items. The project will also include two community outdoor area. Access to public street through Mount Vernon and Barton Road. 9/10/2021 SA 21-08 E 21-05 Carli Norris Single Family Residence APN:0276-421-27 Deemed Incomplete on 10/14/2021 Project deemed incomplete on 3/28/2022 Staff continues to work with applicant. The applicants Carlie Norris and Nanine Tarbaux are proposing the construction of a one-story single-family residence on a .46-acre lot. The proposed residence is a 2,724- square foot home with four bedrooms and a 623 square foot two car garage. The property is located along Grand Terrace Road, zoned R 20-V-Low Density Single Family Residential with an Agricultural Overlay, APN: 0276-421-27-0000. 4/28/2021 TTM 21-01 SA 21-05 E 21-03 Tony Jara Six Lot Subdivision and Five Single Family Residences 11899 Rosedale Avenue Deemed Incomplete on 2/24/2021 Project Re- submitted 6/9/2022 Anticipated to be reviewed by the Planning Commission on 10/6/2022 Tony Jara (“Applicant”) representing Jay Gees, LLC submitted the above applications proposing to subdivide 3.8 acres into 6 single family lots. Each lot will have an approximate 2,800 square foot home and the minimum lot size will be of 20,000 square feet. One of the six lots will include the existing residence located on the west side of the property, fronting Rosedale Avenue. The property is zoned R1-20-V, Very Low Density Single Family Residential with an Agricultural Overlay District, and designated Low Density Residential on the General Plan Land Use Map. 3/31/2021 SA 21-03 CUP 21-03 E 21-02 Yakuta Enterprises Convert Single Family to Multifamily 22756 Palm Avenue Deemed Incomplete and inconsistent the zoning 5/7/2021 Resubmitted 7/7/2022 In Review Derek Wang of Yukata Enterprises, Inc. submitted the above applications proposing to convert an existing 1,371 square foot nonconforming residence to a multifamily duplex on a 0.32-acre lot. The site improvements will include façade improvements, curb, sidewalk, streetscape, pathway from the sidewalk to each unit, front lawn landscape, driveway and required parking. The property is zoned Barton Road Specific Plan, Office Professional. 8/12/2020 GPA 20-02 SPA 20-02 SA 20-03 CUP 20-01 E 2-03 Greens INV 15 LLC 22317, 22273, 22293 Barton Road Multi Family, Hotel, Restaurant Retail Deemed Incomplete on 9/23/2020 Resubmitted 5/23/2022 Page 37 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 8 of 11 Incomplete on 6/24/2022 Greens INV 15, LLC represented by Andrew Walcker is proposing to develop an approximate 4.68-acre lot. The project will include a 1.78-acre commercial site, including a 4-story hotel and potential restaurant or retail uses on the north side of the property. A 2.9-acre multi-family residential development is proposed on the south side of the property, to include 7 multi-family buildings and amenities. The site improvements include parking, drive thru, landscaping, trash enclosures, loading areas, access, and street improvements. The site is located on the Barton Road Specific Plan, General Commercial zoning. A Specific Plan Amendment update for Barton Road is being prepared and an expanded environmental is also being prepared by Michael Baker to support the development. 10/2/2018 SA 18-09 TTM 18-02 V 18-01 E 18-08 Aegis Builders, Inc 16 Apartments 11695 Canal Street Deemed Incomplete on 10/31/2018 & 3/26/2019 Resubmittal and Incomplete on 7/23/2020 Resubmittal received on 11/11/2020. Deemed Incomplete on 12/10/2020 – Resubmittal Received 11/12/2021 Deemed Incomplete on 1/6/2022 Aegis Builders is proposing a 16-unit apartment community development on 0.82-acres. The design consists of sixteen (16) 2-story apartments arranged in 3 buildings, including 2 efficiency studio units, 2 one-bedroom units, 6 two-bedroom units, and 6 three-bedroom units. The Project site is triangularly shaped and does not have direct access to a public street. Access to the public street will be across the Gage Canal property. The City of Grand Terrace has been interfacing with the City of Riverside, owner of the Gage Canal, and has assured access to the parcel which has historical rights of access over the canal. The property is zoned R3-20-Medium High Density Residential. 3/27/2018 SA 18-04 E 17-10 Lewis Development Residential Project (707 Homes) 1167-151-22, 68, 71, 73, 74, 75 Resubmittal 6/14/2022 In review (Lilburn Corporation) The Gateway Specific Plan encompasses approximately 132 acres. The Grand Terrace General Plan designates the area Mixed Use, requiring a specific plan, and Industrial. The Specific Plan proposes to designate the properties within the Specific Plan as Residential, Commercial, Business Park, and Public Facilities. The Land Use Plan includes Residential, Business Park and Public Facilities Overlays. Page 38 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 9 of 11 Major Applications – Specific Plan Date Submitted Case No. Applicant Description Location Status 12/8/2017 SP 17-01 E 17-10 Lewis Development Specific Plan East side of the 215 Fwy. Review Comments 4/28/2022 The Gateway Specific Plan encompasses approximately 132 acres. The Grand Terrace General Plan designates the area Mixed Use, requiring a specific plan, and Industrial. The Specific Plan proposes to designate the properties within the Specific Plan as Residential, Commercial, Business Park, and Public Facilities. The Land Use Plan includes Residential, Business Park and Public Facilities Overlays. The Draft EIR and accompanying entitlement application is anticipated for public consideration commencing this summer (2021) Major Applications – Conditional Use Permit Date Submitted Case No. Applicant Description Location Status 06/22/2022 CUP 22-02, SA 22-08, MD 22-02, E 22-06 Hines Demo of existing structures and construction of light assembly manufacturing building 21801 & 21803 Barton Road Deemed Incomplete on 7/26/2022 The project is located at 21801 & 21823 Barton Road (APN: 1167-121-02, -03, -04, -07), zoned Restricted Manufacturing – General Plan Industrial. The property will undergo a lot-merger (LM 22-02) to become a single parcel. The proposed assembly manufacturing building with 5,000 square feet of office space, 51,202 square feet of assembly, 114,470 square feet of assembly storage, 18 dock doors, 243 vehicle parking spaces, and 13 trailer parking stalls. 9/17/2017 CUP 17-08 E 17-07 National Logistics Team Recycling Pallets 21496 Main Street Staff working with Applicant The applicant is proposing a recycling use whereby recyclable wood for dismantling, sorting, and packing arrives in the site and is re-used to create wood pallets. The use is proposed on a 3.7-acre parcel zoned M2-Industrial. An existing 6,420 square foot. office will be used for office purposes, a 2,400 square foot. metal shop and four 3-sided work canopies will be used for recycling activities. Administrative Applications Date Submitted Case No. Applicant Description Location Status 7/29/2022 ASA 22-10 Sha-Nay Rodriguez Garage conversion to JADU 12559 Michigan Street Under Review 06/07/2022 ASA 22-07 MD 22-01 E 22-05 Esmond Gee Remodel of Current Building 22805 Barton Road Under Review Comment Letter 7/7/2022 04/18/2022 ASA 22-06 E 22-04 Christos Hardt Residential Remodel/Addition 22938 Vista Grande Way Under Review Comment Letter 5/17/2022 Page 39 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 10 of 11 04/07/2022 ASA 22-05 E 22-09 Ajay Roberts SB 9 ADU Unit 22743 Miriam Way Under Review Comment Letter 7/28/2022 03/28/2022 ASA 22-04 E 22-10 Ajay Roberts SBU ADU Unit 22435 Franklin St Under Review Comment Letter 7/28/2022 Land Use Review Date Submitted Case No. Applicant Description Location Status 8/31/2022 LU 22-91 Vicky Doyle Fence 12035 Westwood Ln Approved 8/31/2022 LU 22-90 Antonio Cantelan Patio 11842 Burns Avenue Approved 8/30/2022 LU 22-89 Jose Alcala Patio 23043 De Berry Approved 8/19/2022 LU 22-88 Anthony Griffith Block Wall 22810 Bluebird Approved 8/17/202 LU 22-87 WCA Business Expansion 21718 Walnut Ave and 21600 Walnut Ave Approved 8/12/2022 LU 22-86 Year Round Heating Air HVAC Root Screening 12408 Mt. Vernon Ave Approved 8/4/2022 LU 22-85 Vegan Korner New Owner 22585 Barton Road Approved 8/2/2022 LU 22-84 Lydia Rivera Fence 2310 Vista Grande Way Approved 7/11/2022 LU 22-77 Loud Burger Expansion, Tenant Improvement s 22497 & 22499 Barton Road Under Review 2ndComment Letter 9/28/2022 4/05/2022 LU 22-48 Ajay Roberts Detached ADU 22435 Franklin St Approved 01/24/2022 LU 22-21 Ajay Roberts Detached ADU 22743 Miriam Way Approved HOP Applications Date Submitted Case No. Applicant Description Location Status 8/10/2022 HOP 22-12 Minerva Blanco On-line Sale Amazon 12757 Mt. Vernon Approved 8/8/2022 HOP 22-11 Lelah Hetrick ETSY Spooky Spoonie Crochet 22634 Arliss Drive Approved 8/1/2022 HOP 22-10 Allen Carter Duct Cleaning Business 11798 Kingston Street Approved 7/18/2022 HOP 22-09 Jeiel Rafferty Physical Therapy 22297 Van Buren Approved 7/5/2022 HOP 22-08 Malia Lascano On-line clothing sales 22790 Bluebird Lane Approved Page 40 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Planning and Development Services Page 11 of 11 Sign Applications Date Submitted Case No. Applicant Description Location Status 8/29/2022 TSGN 22-15 Gerry Ramos Real Estate Signs City Wide Approved 8/12/2022 TSGN 22-14 Stephanie Leal Real Estate Signs City Wide Approved 8/9/2022 TSGN 22-13 Alida Venegas Banner Sign 22270 Barton Road Approved 8/4/2022 TSGN 22-12 Yamin Vallecillo Real Estate Signs City Wide Approved 8/4/2022 SGN 22-03 Aibeto’s Mexican Food Wall Sign 22045 Barton Road Under Review 7/28/2022 SGN 22-02 Ryan Ybarra Awning Sign Camping World 12438 Michigan Avenue Approved 7/6/2022 TSGN 22-09 Aramburo Produce Chile Pepper Roasting 22201 Barton Road (Stater Bros) Approved Zoning Verification Applications Date Submitted Case No. Applicant Description Location Status 8/10/2022 ZV 22-03 Angelia Gallardo Zoning Verification Request 23173 Vista Grande Way Under Review Special Event Applications Date Submitted Case No. Applicant Description Location Status 7/16/2022 SE 22-09 Aramburo Produce Inc Chili Pepper Roasting 22201 Barton Road (Stater Bros) Approved Page 41 C.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 u g u s t 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 u g u s t 2 0 2 2 ) &LW\RI*UDQG7HUUDFH 3XEOLF:RUNV'HSDUWPHQW 3XEOLF:RUNV x (QJLQHHULQJ x Waste Generation Report x Missed Pick-Up Report x Public Works Administration x CIP Contracts Page 42 C.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 u g u s t 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 u g u s t 2 0 2 2 ) City of Grand Terrace Public Works Department DATE: OCTOBER 13, 2022 TO: KONRAD BOLOWICH, CITY MANAGER CITY MANAGER’S OFFICE FROM: PUBLIC WORKS DEPARTMENT SUBJECT: AUGUST 2022 - MONTHLY REPORT – PUBLIC WORKS DEPARTMENT This monthly report is presented to the City Manager to keep him informed of the activities within the Public Works Maintenance Department. Engineering Division The Engineering Division is responsible for managing the City’s Capital Improvement Program (CIP). This includes for the administration, planning, programming, design, construction management, and construction of capital projects throughout the City. Grant funding (when available) are sought after to supplement project funding. READY311 MONTHLY STATS AUGUST 2022 REQUEST RECEIVED THESE MONTHS MONTHS REQUEST RESOLVED REQUEST IN PROCESS READY311 WORK ORDERS ONLY 30 25 5 REQUEST ROLLOVER FROM PREVIOUS MONTHS 9 TOTAL WORK ORDERS TO BE COMPLETED 14 Page 43 C.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 u g u s t 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 u g u s t 2 0 2 2 ) City of Grand Terrace Public Works Department Potholes The table below shows the potholes reported via Ready311 for 2022. It takes on average 36 days to have a pothole repaired. Factors that contribute to delays are staffing issues, size of potholes, and readily available supplies dependent on the size of the pothole. # Open Date Repair Date # Days Location 37995 1/5/2022 1/13/2022 8 Kingston St 37997 1/5/2022 6/28/2022 174 Pico St 38068 1/11/2022 1/13/2022 2 De Berry St 39568 3/17/2022 4/20/2022 34 Barton Rd 39955 3/31/2022 5/24/2022 54 De Soto St 41750 6/6/2022 9/2/2022 88 Emerald St 42204 6/22/2022 7/8/2022 16 Finch St 42859 7/13/2022 8/17/2022 35 Grand Terrace Rd 42901 7/14/2022 8/4/2022 21 Cardinal St 43376 8/3/2022 8/4/2022 1 Westwood St 43896 8/25/2022 0 De Soto St Park Shelter Reservations and Community Room Reservations Park shelter reservations have resumed, and residents must follow all of San Bernardino County Covid-19 related guidelines. Community Room reservations have opened to limited groups. Page 44 C.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 u g u s t 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 u g u s t 2 0 2 2 ) City of Grand Terrace Public Works Department Park Maintenance Richard Rollins Park Weekly Once Once Daily M-Fr, S* Pico Park Weekly Once Once Daily M-Fr, S* TJ Austin Park Weekly Once --- --- M-Fr, S* Gwen Karger Park Weekly Once --- --- M-Fr, S* Fitness Park --- Once (pull Daily M-Fr, S* weeds) Griffin Park --- Location Grass mowed Full-service planter maintenance Trash service receptacle Greenbelt Weekly Once Canal Strip Weekly --- Oriole slope --- Once Orange Grove Parkway --- Once (pull weeds) Civic Center Weekly Once Daily Bike Stations Bi-monthly M & Th Grass mowed Full-service planter Gopher service Trash service (a.m.) Page 45 C.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 u g u s t 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 u g u s t 2 0 2 2 ) CITY OF GRAND TERRACE MISS REPORT – AUGUST 2022 SERVICE ADDRESS Column1 DATE OF CALL DATE COMPLETED WO DESCR SERVICE NOTES 12826 FREMONTIA AVE 07/01/2022 07/05/2022 MISS TRASH WAS MISSED, OUT NIGHT BEFORE, NO RED TAG. RETURN TO SERVICE TODAY. 22111 NEWPORT 157 AVE 07/08/2022 07/09/2022 MISS PER MGR VALERIE, SPACE 157 GW SMELLS BAD, HAS FOOD WASTE. IF YOU CAN SVC. IF TRASH MIXED RED TAG CAN. 22485 BARTON RD 07/12/2022 07/13/2022 MISS PER FREDDY, FOOD WASTE - BY ENCLOSURE 22257 BARTON RD 07/15/2022 07/15/2022 MISS REMINDER SERVICE FOOD WASTE BBL, CUST THINKS THEY WERE MISSED WEDNESDAY BUT NOT SURE. 23285 PALM AVE 07/27/2022 07/27/2022 MISS GW WAS MISSED Page 46 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Public Works Administration Contracts, Bids, Reports, Grants, Project Management & Events Contracts: Public Works Services for FY 2022-2023: Contractor Name Service Purchase Order Amount Remaining Balance as of August 31, 2022 Champion Fire Systems Inc. City Hall Alarm System Service $576.00 $432.00 City of Colton Cooperative Agreement with Grand Terrace Traffic Signal Maintenance for signal on Litton Avenue N/A N/A County of Riverside - TLMA Administration Main Street Traffic Signal Maintenance Services $797.86 $0.00 EZ Sunnyday Landscape Landscape Maintenance $71,765.00 $55,505.00 Firemaster Fire Extinguiser Service for Senior Center $1,255.22 $0.00 Fruit Growers Supply Irrigation Supplies for Parks $2,750.00 $2,614.46 Goodman Field Survey $9,000.00 $9,000.00 Gopher Patrol Gopher Abatement Services $2,629.00 $802.00 High Tech Security Systems Security Maintenance $900.00 $0.00 Home Depot Credit Service Supplies for City Hall and Parks $5,000.00 $3,827.97 Interwest Consulting Group Engineering Services Relating to CA Highspeed Rail Authority NA NA Interwest Consulting Group On-Call Engineering Services NA NA Jonescape Inc Walking Path at Griffin Park $58,000.00 $58,000.00 Loma Linda Heat and A.C. INC HVAC Services $14,183.36 $13,309.36 Lynn Merrill NPDES Services NA NA Lynn Merrill HSIP Cycle 9-Mt Vernon Guard Rail NA NA Moran Janitorial Services Janitorial Services for City Hall and City Parks $31,548.00 $23,661.00 Otis Elevator Elevator Maintenance NA NA San Bernardino County Dept of Public Works – Flood Control Flood Control Facilities $9,727.00 $0.00 San Bernardino County Fire Dept – Hazardous Material Household Hazardous Waste (HHW) Services $20,000.00 $15,064.99 San Bernardino County- Land Use Services Fire and Weed Hazard Abatement Services $16,000.00 $16,000.00 SCA of CA LLC Street Sweeping Services $54,505.00 $40,879.00 Siteone Landscape Supply Irrigation Supplies for Parks $8,100.00 $7,952.48 St. Francis Electric, LLC. Traffic Signal Maintenance Services $20,000.00 $16,519.40 Traffic Management Products General Management Supplies for Streets $9,000.00 $8,388.65 West Coast Arborist Furnish/Install Pinus Elderica $22,700.00 $22,700.00 Page 47 C.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 u g u s t 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 u g u s t 2 0 2 2 ) West Coast Arborist 5 Year Tree Maintenance Program $48,289.00 $46,953.00 Willdan Plan Check/Inspection Svcs $20,000.00 $20,000.00 Willdan CIP Inspections $33,264.00 $33,264.00 Willdan Interim City Engineer Services $43,290.00 $29,990.00 Willdan Engineering and Traffic Surveys $9,975.00 $9,975.00 Willdan Financial Services Engineering Services (incl. Landscape and Lighting Assessment District) NA NA (paid with Dev. fees) TOTAL PUBLIC WORKS CONTRACT VALUE FOR FY 2022-23: $513,254.44 $434,838.31 balance Page 48 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Sheriff’s Contract •Law Enforcement Services Page 49 C.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 u g u s t 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 u g u s t 2 0 2 2 ) San Bernardino County Sheriff’s Department Services July 2022 August 2022 Officer Contact and Calls 1,169 1,177 Monthly Citation Data July 2022 August 2022 Stops 157 197 Citations Issued 45 76 Calls to Dispatch July 2022 August 2022 Emergency 2 1 Priority 1 143 139 Priority 2 44 61 Priority 3 167 153 Priority 4 91 81 Totals 447 435 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. 2 1 143 139 44 61 167 153 91 81 0 50 100 150 200 250 300 350 400 450 500 July August Calls to Dispatch Emergency Priority 1 Priority 2 Priority 3 Priority 4 Page 50 C.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 u g u s t 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 u g u s t 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. Page 51 C.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 u g u s t 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 u g u s t 2 0 2 2 ) San Bernardino County Fire Page 52 C.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 u g u s t 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 u g u s t 2 0 2 2 ) City of Grand Terrace Fire Department Incidents 08/01/22 – 08/31/22 Call Type Number of Calls Carbon Monoxide Alarm 1 Commercial Alarm 5 Commercial Investigation 1 Fire – Commercial Structure 2 Fire – Vegetation 2 Fire – Improvement 2 Fire – Unknown Type 2 Fire – Vehicle 2 Fuel Spill 1 Medical Aid 131 Move Up (Cover Engine into FS#23) 3 Outside Electrical Incident 2 Outside Investigation 2 Public Service 1 Residential Alarm 1 Rescue – Elevator 1 Page 53 C.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 u g u s t 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 u g u s t 2 0 2 2 ) Traffic Collision with Extrication 2 Traffic Collision with Injuries 2 Traffic Collision with Injuries (Freeway) 2 Traffic Collision Unknown Injuries 3 Total Calls 168 Page 54 C.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 u g u s t 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 u g u s t 2 0 2 2 ) AGENDA REPORT MEETING DATE: October 25, 2022 Council Item TITLE: Cancellation of City Council Meetings Scheduled for November 22, 2022 and December 27, 2022 PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: Adopt a Resolution Cancelling the City Council Meetings Scheduled for November 22, 2022 and December 27, 2022 2030 VISION STATEMENT: This Staff Report supports our Mission, our Core Value of Open and Inclusive Government and Goal #5 to Engage in Proactive Communication. BACKGROUND: The regular meetings of the City Council are held on the second and fourth Tuesday of every month, beginning at 6:00 p.m. This year, the second November meeting scheduled for November 22, 2022, falls on the Tuesday during the week of the Thanksgiving Day holiday. The second December meeting scheduled for December 27, 2022, falls on the Tuesday following the Christmas Eve and Christmas Day holiday and during the week of the New Year’s Day holiday. DISCUSSION: Due to travel that City Council and staff may have planned during those holiday weeks, staff is recommending that the City Council consider cancellation of the second meetings in November and December. Any potential agenda items that would be discussed at the November 22, 2022, City Council meeting will be presented at the December 13, 2022, meeting and any potential agenda items that would be discussed at the December 27, 2022, City Council meeting will be presented at the January 10, 2023, City Council meeting. FISCAL IMPACT: None. ATTACHMENTS: • 2022-xx - Cancel 2nd CC Meetings in November and December(DOC) C.4 Packet Pg. 70 APPROVALS: Konrad Bolowich Completed 10/13/2022 10:53 AM Adrian Guerra Completed 10/18/2022 12:03 PM City Manager Completed 10/13/2022 1:11 PM City Council Pending 10/25/2022 6:00 PM C.4 Packet Pg. 71 CC Reso No. 2022-xx Page 1 of 2 October 25, 2022 RESOLUTION NO. 2022-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, CANCELLING THE NOVEMBER 22, 2022, AND DECEMBER 27, 2022, REGULAR CITY COUNCIL MEETINGS WHEREAS, on August 10, 2006, the City Council adopted its City of Grand Terrace Council Procedures; and WHEREAS, on January 13, 2015, June 25, 2019, May 25, 2021, and September 27, 2022, the City Council revised its Council Procedures; WHEREAS, under Section 1.1 (Regular Meetings) of Council Procedures it states: "The Regular City Council Meetings are held on the second and fourth Tuesday of every month, beginning at 6:00 p.m.”; and WHEREAS, November 22, 2022, and December 27, 2022, are the second scheduled City Council meetings of the remaining two (2) months of the year; and WHEREAS, considering the impending 2022 holiday season, the City Council finds that it would be prudent to cancel these meetings. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. The City Council finds that the above recitations are true and correct and, accordingly, are incorporated herein as findings and a material part of this Resolution. SECTION 2. The City Council of the City of Grand Terrace hereby cancels the regular City Council meetings scheduled for November 22, 2022, and December 27, 2022. SECTION 3. The City Clerk shall certify to the adoption of this Resolution. C.4.a Packet Pg. 72 At t a c h m e n t : 2 0 2 2 - x x - C a n c e l 2 n d C C M e e t i n g s i n N o v e m b e r a n d D e c e m b e r ( C a n c e l S e c o n d C o u n c i l M e e t i n g i n N o v e m b e r a n d D e c e m b e r 2 0 2 2 ) CC Reso No. 2022-xx Page 2 of 2 October 25, 2022 PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 25th day of October 2022. ________________________________ Darcy McNaboe, Mayor ATTEST: Debra L. Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra City Attorney C.4.a Packet Pg. 73 At t a c h m e n t : 2 0 2 2 - x x - C a n c e l 2 n d C C M e e t i n g s i n N o v e m b e r a n d D e c e m b e r ( C a n c e l S e c o n d C o u n c i l M e e t i n g i n N o v e m b e r a n d D e c e m b e r 2 0 2 2 ) AGENDA REPORT MEETING DATE: October 25, 2022 TITLE: Authorize Purchase Order for Veterans Freedom Park Equipment with Per Capital Grant Funds PRESENTED BY: Shanita Tillman, Management Analyst RECOMMENDATION: 1. Authorize the expenditure of up to $16,000 from Parks Fund (Fund 49) for the purchase of two ADA compliant bleachers 2. Authorize City Manager to execute a purchase order and all necessary sales documentation to procure two ADA complaint bleachers not to exceed the grant awarded amount 2030 VISION STATEMENT: This staff report supports City Council Goal # 4 “Develop and Implement Successful Partnerships” by working with state agencies to secure funding for programs and projects to deliver services benefiting our community. BACKGROUND: The State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Per Capita Grant Program. The City has needs for funding to provide additional features to City parks. DISCUSSION: Through the Per Capita Grant program, the City is able to provide additional amenities at multiple parks. As approved by the grant, the City will install a baseball/softball scoreboard, two bleachers, bike racks, and play surface repair at Veterans Freedom Park. Per the City’s fiscal policy, a minimum of three quotes have been obtained for the following: Equipment Company Price Grant Awarded Amount Bleachers California Bleachers $15,703.73 $16,000.00 The Park and Facilities Catalog $16,828.40 The Park Warehouse $15,658.43 As additional quotes become available staff will present, for award of the surface repair. C.5 Packet Pg. 74 Lastly, staff is recommending the execution of a purchase order for the bleachers not from California Bleachers since they were the only vendor that had installation as an option. The purchase order shall not exceed the grant awarded amount. FISCAL IMPACTS: The grant is for $177,952.00. Most of the project activities are slated to occur in economically disadvantaged neighborhoods. Because of this, City matching funds will be $5,200.00. The funding for the equipment will come from Parks (Fund 49) Account 49-445-700-000-000. ATTACHMENTS: • Veterans - ADA Bleachers (PDF) APPROVALS: Shanita Tillman Completed 10/14/2022 10:49 AM Finance Completed 10/17/2022 8:22 AM City Manager Completed 10/19/2022 2:48 PM City Council Pending 10/25/2022 6:00 PM C.5 Packet Pg. 75 C.5.a Packet Pg. 76 At t a c h m e n t : V e t e r a n s - A D A B l e a c h e r s ( A u t h o r i z e P u r c h a s e O r d e r f o r V e t e r a n s F r e e d o m P a r k E q u i p m e n t w i t h P e r C a p i t a l G r a n t F u n d s ) AGENDA REPORT MEETING DATE: October 25, 2022 TITLE: Authorize Purchase Order for TJ Austin Park Equipment with Per Capital Grant Funds PRESENTED BY: Shanita Tillman, Management Analyst RECOMMENDATION: 1. Authorize the expenditure of up to $5,500 from Parks Fund (Fund 49) for the purchase of surface repair; 2. Authorize City Manager to execute a purchase order and all necessary sales documentation to procure surface repair not to exceed the grant awarded amount 2030 VISION STATEMENT: This staff report supports City Council Goal # 4 “Develop and Implement Successful Partnerships” by working with state agencies to secure funding for programs and projects to deliver services benefiting our community. BACKGROUND: The State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Per Capita Grant Program. The City has needs for funding to provide additional features to City parks. DISCUSSION: Through the Per Capita Grant program, the City is able to provide additional amenities at multiple parks. As approved by the grant, the City will install a bike rack, shade structure, benches, and play surface repair at TJ Austin Park. Per the City’s fiscal policy, a minimum of three quotes have been obtained for the following: Equipment Company Price Grant Awarded Amount Surface Repair Jet Mulch Inc. $3,968.00 $5,500 Tot Lot Pros $9,000.00 *No Fault Safety Surface $66,016.00 No Fault Safety Surface would not recommend engineered wood fiber installation which is present at TJ Austin Park and would only provide a quote for pour in place surface. C.6 Packet Pg. 77 Finally, as additional quotes become available staff will present for award of the shade structure. Staff is recommending the execution of a purchase order for surface repair from the lowest quote listed above not to exceed the grant awarded amount. FISCAL IMPACTS: The grant is for $177,952.00. Most of the project activities are slated to occur in economically disadvantaged neighborhoods. Because of this, City matching funds will be $5,200.00. The funding for the equipment will come from Parks (Fund 49) Account 49-445-700-000-000. ATTACHMENTS: • TJ Austin - Surface Repair EWF (PDF) APPROVALS: Shanita Tillman Completed 10/14/2022 8:53 AM Finance Completed 10/14/2022 10:20 AM City Manager Completed 10/19/2022 2:48 PM City Council Pending 10/25/2022 6:00 PM C.6 Packet Pg. 78 C.6.a Packet Pg. 79 At t a c h m e n t : T J A u s t i n - S u r f a c e R e p a i r E W F ( A u t h o r i z e P u r c h a s e O r d e r f o r T J A u s t i n P a r k E q u i p m e n t w i t h P e r C a p i t a l G r a n t F u n d s ) AGENDA REPORT MEETING DATE: October 25, 2022 Council Item TITLE: Approval of a Professional Services Agreement with Revenue & Cost Specialists for a User Fee Study PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: 1. Approve a professional services agreement with RCS for a Comprehensive Citywide User Fee and Rate Study for a not-to-exceed amount of $28,000. 2. Authorize the Mayor to execute the Professional Services Agreement with RCS for a Comprehensive Citywide User Fee and Rate Study subject to City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability and Goal #3, Promote Economic Development. BACKGROUND: The City charges a range of fees for services provided to residents and businesses. These fees are imposed as a result of public need, such as building and planning, rental uses, and other types of services. According to best practices established by the Government Finance Officers Association (GFOA) and the National Advisory Council on State and Local Budgeting (NACSLB), governments should calculate the full cost of the different services they provide and should review and update charges and fees periodically based on factors such as the impact of inflation, other cost increases, adequacy of cost recovery, use of services, and the competitiveness of current rates. User fees and charges for the City of Grand Terrace were last updated in 2015. DISCUSSION: Included in the Fiscal Year 2022-23 Budget which was adopted by the City Council on June 14, 2022, Council approved the issuance of a Request for Proposal for a Comprehensive Citywide User Fee Study and included in the Fiscal Year 2022-23 Budget is an amount not-to-exceed $30,000 for the Study. On August 16, 2022, the City issued a Request for Proposal (RFP) for a Comprehensive Citywide User Fee and Rate Study. The RFP was posted on the City’s website as well as the California Society of Municipal Finance Officers website. The deadline for submission was September 15, 2022. A total of three (3) bids were received as follows: C.7 Packet Pg. 80 Table 1 Bidder Bid Amount Revenue & Cost Specialists 28,000$ Matrix Consulting Group 55,210$ Willdan Financial Services 24,900$ Bidders were asked to provide detailed project budgets, to include hourly rates and estimated or projected work hours associated with the project. Based on the information provided, the total combined project hours and average or blended hourly rates for the bids received were as follows: Table 2 Projected Blended Bidder Hours Hourly Rate Revenue & Cost Specialists 160 175.00$ Matrix Consulting Group 344 *161.00$ Willdan Financial Services 162 *154.00$ *Rounded to the nearest whole dollar. Two of three bidders proposed multiple levels of project staff at varying hourly rates. A blended hourly rate was computed for discussion and analysis purposes. The City Manager, Interim Finance Director, Finance Manager and Building Official reviewed and evaluated the bids received. Staff did not conduct interviews of the three firms. The evaluation included a thorough review of each bidder proposal and reference checks. Selection criteria for bid award, as specified in the RFP, included the following: 1. Quality, strength and completeness of proposal; 2. Bidder’s relevant experience and length of time in business; 3. Qualifications and experience of the individual(s) proposed to be assigned to the project; 4. Reference check feedback; 5. Proposal pricing; 6. Stated ability of the bidder to complete the project in a timely manner; 7. Bidder’s reputation and record of performance with the City or similar local governments; 8. Innovative or value-added services or approaches to project completion, as proposed by bidder. Based on the selection criteria, and upon completion of the bid review and evaluation process by City Staff, Staff is recommending the bid be awarded to RCS, in an amount not-to-exceed $28,000. While RCS’ total not-to-exceed project price was the 2nd highest of the three bids received, Staff feels the RCS approach to the project with the work being performed by the two principals will result in a better project and will be completed C.7 Packet Pg. 81 timelier. The City has worked with RCS in prior years for an Impact Fee Study. Other important factors in favor of RCS’ recommended selection include: • More than 40 years in business; • The firm’s expertise and reputation in having served more than 200 California public agencies to-date, including a solid background and demonstrated know-how in working with cities, including local Cities of Redlands and Loma Linda; • An impressive project team with number of years in the industry; • A focus on local government revenues and a breadth of expertise in the industry; The RFP required a list of clients provided similar services over the last five (5) years to those requested by the City. For the list of cities served by RCS please see pages 21 and 22 of the RCS Proposal. The total approved budget for the project is $30,000, which is greater than the not-to- exceed fee of $28,000 proposed. Studies of this nature typically require 120 to 150 days for completion. The updates to the City fee schedule would need to be approved by the Council by way of ordinance, which would require first and second readings, and a waiting period thereafter, prior to the effective date of updated fees. If the Council approves the Staff’s recommendation for bid award, City staff and RCS personnel would be prepared to start the project shortly after approval and work expeditiously to complete the engagement. Once the study has been completed, RCS will meet with the City Council to go over a draft of the report and explain the results of the study and to discuss and develop a City Policy on User Fees. GFOA and NACSLB recommends that a User Fee Policy be established which establishes the extent to which the cost of the service provided is covered by user fees. In some situations, fees may be set at rates lower than the full cost of service. Staff would further recommend the Mayor be delegated authority to sign the standard consulting agreement required for this engagement, on behalf of the City, subject to City Attorney approval as to form. FISCAL IMPACT: The proposed not-to-exceed fee is $28,000. Included in the City’s Fiscal Year 2022-23 Budget for the Study is $30,000. ATTACHMENTS: • City's RFP User Fee Study (PDF) • RCS Grand Terrace User Fee Study Proposal (PDF) • Grand Terrace - RCS for Comprehensive City-wide User Fee & Rate Study Contract Services Agreement (DOCX) C.7 Packet Pg. 82 APPROVALS: Terry Shea Completed 10/14/2022 4:47 PM Finance Completed 10/14/2022 4:47 PM City Attorney Completed 10/18/2022 11:46 AM City Manager Completed 10/18/2022 1:47 PM City Council Pending 10/25/2022 6:00 PM C.7 Packet Pg. 83 Page 1 City of Grand Terrace Request for Proposals Comprehensive Citywide User Fee and Rate Study Date Issued: August 16, 2022 Date Due: September 15, 2022 C.7.a Packet Pg. 84 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Page 2 CITY OF GRAND TERRACE, CALIFORNIA REQUEST FOR PROPOSALS COMPREHENSIVE FEE AND RATE STUDY Table of Contents I. PROJECT OVERVIEW II. GENERAL REQUIREMENTS AND INFORMATION III. PROJECT BACKGROUND AND THE CITY IV. PROJECT SCOPE OF WORK V. PROJECT CONTACT VI. TIME REQUIREMENTS VII. PROPOSAL REQUIREMENTS VIII. SELECTION CRITERIA C.7.a Packet Pg. 85 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Page 3 CITY OF GRAND TERRACE, CALIFORNIA I. PROJECT OVERVIEW The City of Grand Terrace is requesting proposals for a Comprehensive Citywide User Fee and Rate Study. II. GENERAL REQUIREMENTS AND INFORMATION For a PROPOSER to be considered, the City must receive one printable PDF copy via email, of the proposal by 5:00 pm on September 15, 2022,at the following email address: Debra Thomas City Clerk All proposals must be clearly marked:Comprehensive Citywide User Fee and Rate There is no expressed or implied obligation for the City of Grand Terrace to reimburse responding PROPOSER for any expenses incurred in preparing proposals in response to this request. The City of Grand Terrace reserves the right to retain all proposals submitted, and to use any ideas in a proposal regardless of whether that proposal is selected. Submission of a proposal indicates acceptance by the PROPOSER of the conditions contained in this request forproposal, unlessclearlyandspecificallynotedinthe proposal submitted and confirmed in the contract between the City of Grand Terrace and the PROPOSER selected. C.7.a Packet Pg. 86 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Page 4 III. PROJECT BACKGROUND AND THE CITY The City The City of Grand Terrace (the City) is a full-service, general law city, governed by a council-manager form of government. The City employs approximately 20 full-time employees. Incorporated in November 1978, Grand Terrace has a population of about 12,315. Encompassing approximately 3.5 square miles, Grand Terrace is in San Bernardino County on the I-215 Corridor between the cities of Riverside and San Bernardino. The total budget for the fiscal year 2022-2023 is $14,216,068, with operations representing approximately $11.57 million and a capital budget of $2.64 million. The Fiscal Year 2022-2023 ropriations of $7,683,339 support the main operations of the City including Community Development, Planning and Building Services, Building maintenance, and Public Works and Engineering services.Fire and Emergency Services are provided by San Bernardino County Fire Protection District. The City contracts with San Bernardino . Library services are provided by San Bernardino County. The City of Grand Terrace does not provide water or sewer services, these services are provided by Riverside Highland Water Company and City of Colton, respectively. Trash collection services are provided by Burrtec and are billed annually on the property tax rolls. Special revenue funds include Gas Tax, RMRA, Measure I, AQMD, Public Safety allocations from the State of California and Miscellaneous Grants. The City utilizes an annual line-item operating budget. The City wishes to have the cost of services model updated or expanded to capture the full cost of programs and services. Project Background The City of Grand Terrace desires to undertake a comprehensive citywide review and evaluationofuserfeesandcharges. Tothat end,theCityisseekingproposalstoengage the services of qualified professional firm(s) experienced in cost recovery and economic analysis to conduct a comprehensive study of the costs associated with providing City services. The City's primary objective for the study is to have a comprehensive citywide cost-based user fee study prepared. The study will calculate the full (100%) cost of providing certain City services and provide a recommended fee to be charged for each applicable service. 2015. C.7.a Packet Pg. 87 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Page 5 IV. PROJECT SCOPE OF WORK Project Scope Comprehensive User Fee Study If the Consultant feels that additional tasks are warranted, they must be clearly iden are not necessarily limited to, the following: 1. Work and meet with City staff to refine the project scope, purpose, uses and goals Study to ensure that the Study will be both accurate and appropriate to the City s needs.Reviewproject schedule and answer any questions pertaining to the successful development of the Study. 2. Meet with staff and conduct interviews as needed to gain an understanding of Conduct a Comprehensive Review of the fees, rates, and charges, including but not limited to the following: permits, licenses, planning fees, building fees, engineering fees, police fees, administrative fees, recreation fees, fire prevention fees, development impact fees and residential rental inspection fees; work with staff to identify if other fees need to be included in the master fee schedule. 3. Identify the total cost of providing each City service at the lowest reasonable activity level and in a manner that is consistent with all applicable laws,statutes, rules and regulations governing the collection of fees, rates, and charges by public entities including, but not limited to, Proposition 26. 4. Compare service costs with existing recovery levels. This should include any service areas where the City is currently charging for services as well as areas where we perhaps should charge, in light of the or the practices of similar or neighboring cities. 5. Recommend appropriate fees and charges based on your analysis together with the appropriate subsidy percentage for those fees where full cost recovery may be unrealistic. 6. Prepare a report that identifies each service, its full cost, recommended and current cost recovery levels. The report should also identify the direct cost,the indirect cost, and the overhead cost for each service; and provide a model for adjusting these 7. Prepare a report that identifies the present fees, recommended fees, percentage change, cost recovery percentage, revenue impact and fee comparison with other San Bernardino County cities or other California cities that are comparable to Grand Terrace. A survey comparison of rates and fees with similar cities is for information only. C.7.a Packet Pg. 88 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Page 6 8. Report on other matters that come to your attention in the course of your evaluation that in your professional opinion the City should consider. 9. Present your findings to the management group and make necessary adjustments as requested. 10. Prepare and deliver presentations to the GrandTerrace City Council to facilitate their understanding of the plan and its implications for the City and make necessary adjustments as requested. This may include a Committee Meeting, followed by a City Council Meeting. 11. Prepare a final fee study report and provide five bound copies, one unbound copy and a single PDF file of the plan that can be made available to City staff via the intranet for the City. Any Master fee schedule revisions developed shall also be made available to the City electronically, providing the ability to add or delete and/or update information as needed. 12. Consult with City staff should it become necessary to defend the C User Fees as a result of any legal or other challenge. V. PROJECT CONTACT Questions about the project may be directed to: Terry P. Shea, Interim Finance Director City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Telephone: 909-889-0871 C.7.a Packet Pg. 89 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Page 7 VI. TIME REQUIREMENTS The following is a tentative time schedule related to the requested fee studies: Date Activity August 16, 2022 Request for proposal issued September 15, 2022 Due date for proposals (due by 5:00 pm) Week of September 19th 2022 Interviews with final candidates, if needed Week of September 19th 2022 Selection of Vendor October 11, 2022 Contract approval by City Council October 17th, 2022 (tentative)Work begins December 16,2022 (tentative)Completion of project December 23, 2022 (tentative)Presentation of draft report to City staff January 24,2023 City Council Workshop Presentation February 14, 2023 Final Report to City Council for adoption VII. PROPOSAL REQUIREMENTS The Proposal should include the minimum information requested below in the order listed. Additional information, if provided, should be separately identified in the proposal. Section One Transmittal Letter A cover letter signed by an official authorized to solicit business and enter into contracts for the PROPOSER. The cover letter should include the name, address, email address, and phone number of contact person. Section Two Experience and Qualifications A description summarizing the experience over the past five years in performing similar services to municipal clients. A statement identifying the Consultants assigned to this project. Please identify key staff and their qualifications (attach resumes as appropriate). The firm ability to produce the required product in a timely fashion and the ability to present any necessary reports or studies to elected officials and/or the general public. C.7.a Packet Pg. 90 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Page 8 Section Three Outline Strategies and Options Outline methodology, planning and design strategies that will result in the development of recommendations that are practical to the City of Grand Terrace, meaning that the recommendations must not exceed the City implement and properly utilize. Provide detailed information on methodology and tools used to meet the need Section Four References Provide references from five different clients. Include the name, email address and telephone number for a contact person from each reference. Section Five Estimated Project Timeline and Pricing Provide an estimated project timeline required to implement Comprehensive Citywide User Fee and Rate Study. Provide pricing estimates that include planning, development, and implementation services. Project budgets should include: i. A project schedule for each study with activities, milestones, and deliverables, and ii. Project budgets for each study defined, at minimum, as follows: By task with a collective total by milestone and deliverable, Labor rates for all project team members, General overhead rates, and Costs for expenses such as printing, travel and attendance at meetings. The Consultant shall present a specific ot to including associated fees (i.e., printing costs, attendance at meetings, travel). A requested payment schedule should accompany the work schedule. Each phase of work should have an itemized budget including labor costs and expenses for each piece of work. The proposal should include staff hourly rates. Proposed project schedule to begin no later than October 17, 2022, and conclude within 60 days, subject to City extension as necessary. Proposed services to be subcontracted, if any, anticipated subcontractors, and anticipated cost for these services. Available Budget/Contract The City wishes to negotiate a fixed price contract with a to dollar total based on a clearly defined scope of work. It should be noted that the selected consultant(s) shall be required to carry W m commercial general liability, owned and non-owned and hired automobile liability, and professional liability insurance in the amount as identified in the Grand Terrace's Standard Agreement for Professional Services. C.7.a Packet Pg. 91 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Page 9 Selected prospective consultant shall be required to participate in negotiations with City staff and execute a contract for professional services. (A copy of Grand Terrace's Standard Agreement for Professional Services is available upon request.) All proposal responses must be received via email by 5 :00 pm on September 15, 2022,for a PROPOSER to be considered. The City reserves the right to reject all proposals. VIII. SELECTION CRITERIA The City will select the successful proposal based upon several evaluation factors; including features as outlined in the RFP Scope of Work; completeness; qualifications of personnel; demonstrated knowledge and experience; and price. The selection of finalists and the final award will be decided based on the proposal submitted by a qualified vendor that best meets the needs of the City as determined by the City. Contract award may be subject to the approval of the Grand Terrace City Council. C.7.a Packet Pg. 92 At t a c h m e n t : C i t y ' s R F P U s e r F e e S t u d y ( U s e r F e e a n d R a t e S t u d y ) Proposal for the City of Comprehensive Citywide User Fee and Rate Study 1519 E Chapman Ave Suite C Fullerton, CA 92831 (714) 992-9020 www.revenuecost.com C.7.b Packet Pg. 93 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) TABLE OF CONTENTS SEPTEMBER 15, 2022 Section One – Transmittal Letter ....................................................................................................................... 3 Section Two – Experience and Qualifications .............................................................................................. 5 Section Three – Outline Strategies and Options ........................................................................................ 11 Section Four – References .................................................................................................................................. 20 Section Five – Estimated Project Timeline and Pricing ......................................................................... 23 C.7.b Packet Pg. 94 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 3 September 15, 2022 City of Grand Terrace Attn: Debra Thomas, City Clerk 22795 Barton Rd Grand Terrace, CA 92313 Proposal for Comprehensive Citywide User Fee and Rate Study Revenue & Cost Specialists, LLC (RCS) appreciates the opportunity to submit this proposal for a Comprehensive Citywide User Fee and Rate Study. We have been providing fee studies and other costing services since 1980, making us the first and foremost expert in costing services for California. RCS’ skill set will generate maximum accountability for the City of Grand Terrace. We have a history of delivering quality reports with defensible data that can be acted on and adopted. Our fee study process is straightforward, imposes minimal impact on staff, and provides proper information which will allow staff, City Council and other stakeholders to make the best policy decisions for Grand Terrace. We strive to ensure confidence in the information and recommendations of the final Report, and as former city staff ourselves, we understand what you need and want, how a city generally operates, and that your time is precious. The terms of this proposal will be honored for 90 calendar days from the date of submittal. Please contact Eric at (714) 992-9027 or eric@revenuecost.com with any questions. Sincerely, ERIC S. JOHNSON CHU THAI President Vice President C.7.b Packet Pg. 95 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 4 RCS Contacts Revenue & Cost Specialists 1519 E Chapman Ave, Ste C Fullerton, CA 92831 www.revenuecost.com Eric Johnson President 714-992-9027 Eric@revenuecost.com Chu Thai Vice President 714-992-9024 Chu@revenuecost.com C.7.b Packet Pg. 96 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 5 SECTION TWO – EXPERIENCE AND QUALIFICATIONS ABOUT RCS RCS (Taxpayer ID No. 330787781) was founded in 1980 by two former City Managers and a Finance Director who, after the passage of Propositions 13 and 4, discovered that user fees were a legal option to recover lost municipal revenues. Forty-one years later, Revenue & Cost Specialists continues its focus on cost allocation and user fee calculation services. After the passage of AB 1600 in 1988, our company added impact fee calculation services to help municipalities finance public facility expansion. In those early years, RCS principals published articles and presented at conferences on how user fees and impact fees worked. By the mid-1990s, RCS was a company with 25 employees, yet we were not happy with the business model. We strategically downsized, and the remaining four principals focused on service delivery, no longer worrying about revenue growth or competing market shares. Now, RCS principals commit resources to client satisfaction and long-term relationships. To this day, RCS continues to thrive through repeat business, referrals and references. As a small business, RCS takes only a handful of new clients each year, allowing us to spend substantial time with them. In 2000, RCS created Government Software Systems to develop robust costing software that serves fee calculation needs better than spreadsheets. Our company has provided additional services to municipalities that include long-range financial planning, accounting procedures and utility rate studies. For 2022, RCS is celebrating our 42nd year in business and looking forward to another 40 plus years of partnering with municipalities. COMPANY QUALIFICATIONS AND EXPERIENCE RCS’ four principals make up the Limited Liability Company, which has been financially stable since the company started. Combined, RCS principals have over 100 years of experience in cost allocation plans and fee studies and served over 250 municipalities. We have provided these services to a wide array of public agencies, from the smallest special district to larger and more complex cities and counties. Though based in Orange County, we engage in projects throughout the State of California. C.7.b Packet Pg. 97 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 6 RCS principals specialize in: • User Fee Studies • Cost Allocation Plans • Development Impact Fee Studies • Special studies and reports supporting municipal financing management These specializations allow RCS to focus on every aspect of municipal fees and be the best of what we do. We are confident in our project time estimates and do not respond to RFPs when the project workload would exceed our capacity. We have suggested new fees that are not common practice throughout the state and have challenged and removed municipal fees that were not defensible. We have assisted municipalities in streamlining their fee-based processes. All RCS principals have prior city experience, serving as analysts, managers or directors. We are all knowledgeable in fund accounting, department structures and municipal services. We stay current on pending financial and legal issues that challenge municipalities. All principals are comfortable speaking with city staff at all levels, drafting reports and resolutions, and presenting to the public, stakeholders and City Council members. RCS principals perform all studies in a professional and expedient manner and do not rely on junior staff to perform these vital tasks with our clients. We also don’t rely on status memos because we will be at City Hall quite often to tell you in person how the project is going. Eric Johnson, President, has streamlined and perfected the process of CAP and User Fee Study engagements. With over 30 years and hundreds of studies completed, Eric has created a superior process that demands little of city staff time while obtaining maximum results. Eric quickly understands complex city services and how to calculate fees for them. He relates well with elected officials because he responds with candor and brevity. If you speak to any of Eric’s prior or current clients, they will tell you how easy the process was. Chu Thai, Vice President, joined RCS after 22 years of municipal experience. As a budget manager and finance director, Chu has successfully coordinated user fee increases, impact fee increases, utility rate increases and tax ballot measures. His experience helps clients avoid the unseen perils that jeopardize municipal projects. After project completion, Chu leaves behind well-documented reports and spreadsheets for City staff. The focus of his career has been to improve cities’ financial stability and implement operational effectiveness and efficiencies in local government. Scott Thorpe, Senior Vice President, joined RCS in 1985. Before that, he spent 13 years at the cities of Chula Vista, Covina, Anaheim and Brea, serving in various roles within the city manager’s offices. Scott performed user fee studies for several years, transitioning to development impact fees when AB 1600 went into effect. He has written articles laying out the fundamentals of impact fees, and his work has generated tens of millions in fee revenues for cities. C.7.b Packet Pg. 98 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 7 Rick Kermer, Partner, was one of the founders of RCS. Rick used his CPA and audit experience to build cost allocation and user fee spreadsheets and software that passes rigorous analysis and reporting accounting standards. Rick’s work is the foundation of all the fee study work offered today. He is now semi-retired, taking only a handful of projects each year. GRAND TERRACE PROJECT TEAM While all RCS principals have worked independently on projects, Eric Johnson and Chu Thai would both be involved with the City of Grand Terrace. Eric will be the Project Manager and primary contact. Chu will work behind the scenes, compiling and analyzing the data. RCS assigns two principals for several reasons. Often, both principals will attend the public hearing because two are better than one when communicating with policy makers and stakeholders. Two principals allow us to internally discuss high-level issues affecting the Grand Terrace project. Most important to RCS, we want our principals to build long-term relationships with all our clients. RCS may assign additional specialists to the project to help maintain the proposed schedule and ensure the quality of the product. For the sake of continuity, only RCS principals will interact with City staff, as our specialization and expertise will allow staff to focus on other City functions. We thoroughly understand and will be involved in every phase of the fee study, advising City staff when necessary. RCS resumes for the project team are included in this proposal on the following pages. C.7.b Packet Pg. 99 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 8 EDUCATION Bachelor of Arts in Political Science - University of Redlands AFFILIATIONS California Society of Municipal Finance Officers Government Finance Officers Association Eric S. Johnson President Mr. Johnson serves as President of Revenue & Cost Specialists with over 30 years of professional knowledge in cost recovery model and user fee studies. He focuses on providing a positive experience for RCS clients, which minimizes staff interruptions yet still produces a comprehensive, defensible study that is adopted by the governing board. Municipal Experience City of Redlands – Redevelopment Intern (1987-1989) Relevant Project Experience City of Long Beach – Comprehensive Fee Study: Mr. Johnson is performing a three-year comprehensive update of Long Beach’s fees starting in 2019. The first phase of the project was approved by the City Council in 2021. City of Santa Clarita – Cost recovery model and Comprehensive Fee Study: Mr. Johnson developed a Cost Allocation Plan and Comprehensive Fee Study for the City most recently in 2017 and also annually updates the Cost Allocation Plan. RCS has been providing these services for the City since 1995. City of Lancaster – Cost recovery model and Comprehensive Fee Study: Mr. Johnson developed a Cost Allocation Plan and Comprehensive Fee Study for the City most recently in 2019 and also annually updates the Cost Allocation Plan. RCS has been providing these services for the City since 2006. City of El Segundo – Cost recovery model and Comprehensive Fee Study: Mr. Johnson developed a Cost Allocation Plan and Comprehensive Fee Study for the City most recently in 2018 and also annually updates the Cost Allocation Plan. RCS has been providing these services for the City since 2008. C.7.b Packet Pg. 100 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 9 EDUCATION Claremont Graduate University – Completed coursework towards Masters in Public Policy Cal State Northridge – MA Public Administration Cal Poly, Pomona – BS in Urban and Regional Planning AFFILIATIONS California Society of Municipal Finance Officers (CSMFO – Board Member) Government Finance Officers Association (GFOA) International City/County Management Association (ICMA) (Cal-ICMA) Municipal Information Systems Association of California (MISAC) Chu Thai Vice-President Mr. Thai provides multiple aspects to the implementation of user fees, impact fees and utility rates. His experience as a municipal finance officer helps clients reach their goal of fee adoption. Chu keeps current of all legal policies which impact the noticing, calculation and reporting of fees. Municipal Experience Impact Fees: Cities of Morgan Hill and Monterey Park Utility Rates: Cities of Morgan Hill, Beverly Hills, South Pasadena and Monterey Park User Fees: Cities of Claremont, Morgan Hill, Beverly Hills, South Pasadena and Monterey Park Director of Management Services, City of Monterey Park, CA • Managed department of 15 to provide financial planning and reporting, revenue collections, treasury, information technology, telecommunication and support services • Improved city's revenues through updated user fees, utility rates, and impact fees • Conducted long-term financial forecasting and analysis • Streamlined and enforced purchasing process Administrative Services Director, City of Stanton, CA • Managed department providing general accounting, accounts payable, purchasing, payroll, business tax, treasury, IT and communication services • Updated the City's Investment Policy and strategy • Developed long-term revenue strategy • Performed communications audit and reduced expenses by 75% Finance Director, City of South Pasadena, CA • Outsourced utility billing and customer service • Completed $43.4 Million Water Bond Issuance and $12 Million Refunding • Coordinated the passage of Utility Users Tax Ballot Measure • Negotiated lease agreements for city property and cell towers C.7.b Packet Pg. 101 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 10 Chu Thai Vice-President Municipal Experience (continued) Budget and Management Officer, City of Beverly Hills, CA • Managed $400 million citywide budget for 750 full- time employees • Developed comprehensive capital improvement program • Developed quarterly performance report presented to the City Council • Implemented performance-based budget, including goals and objectives • Updated the city's user fees and utility rates Budget Manager, City of Morgan Hill, CA • Managed utility billing, purchasing, business license and accounts receivable functions • Coordinated IT overhaul, including finance, utility billing and recreation software conversions, standardization, training, disaster recovery and outsourcing. • Developed pro-formas for proposed aquatics and community centers • Updated the city's impact fees, user fees and utility rates Senior Management Analyst, City of Tustin, CA • Coordinated the City’s $80 million operating and CIP budget with all departments • Managed finance software upgrade, focusing on departmental reports • Deployed online payment system for utility customers Management Analyst, City of Claremont, CA • Assisted in the development of effective parks and recreation programs • Assisted in the construction and programming of the Claremont Youth Activity Center, Claremont Skate Park and Hughes Community Center • Coordinated budget and evaluated cost recovery for the department C.7.b Packet Pg. 102 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 11 SECTION THREE – OUTLINE STRATEGIES AND OPTIONS RCS understands that the City wants to update its comprehensive list of user fees. RCS’s updated user fees is generally calculated based on staff time, at the fully burdened hourly rate (FBHR), to provide the various city services. This FBHR includes the full cost of salaries, benefits, operating expenses, and overhead. Based on the full cost information, RCS will review with staff a proposed fee structure that will recover these costs in the most equitable and efficient way possible. This may involve flat fees, deposits, valuation-based fees, step-increase fees, or a combination of these. But the eventual fee recommendations included in the final report and master fee resolution will be defensible, easy to understand, and be supported by City staff. RCS will construct user fees that represent how operations are conducted in the City. We will review with staff suggested fee structures that recover costs in the most equitable and efficient way possible. This may involve flat fees, deposits, valuation-based fees, step-increase fees or a combination of these. The eventual fee recommendations included in the final report and master fee resolution will be defensible, easy to understand and supported by City staff. The most important part of our work is performed through a series of focused meetings with staff. Face-to-face meetings commit staff to the timeline and ensure that our study draws from the most knowledgeable person on the subject matter. A series of meetings also gives City staff time to digest and reflect on the information generated. RCS uses only company principals with more than 20-plus years of experience to conduct these meetings, which makes the process quicker and the results more accurate. Our process provides the City with well-documented and defensible service costs that will be used to develop fees that comply with Propositions 4, 218 and 26. We also identify 100% of the staff time on 100% of the services they provide. This gives City staff a complete perspective on their time allocations instead of merely looking at time allocations for individual services in a vacuum. These methods will ensure that City staff feels confident about the data and, therefore, confident in supporting the results in public hearings. The other key result of identifying 100% of City services is that we are identifying not only the cost of fee services, but of community-supported services, such as police, street and park maintenance services. This allows us to have a real discussion with real numbers with the City Council about tax subsidy policy. Since we are identifying the full costs of fee services, C.7.b Packet Pg. 103 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 12 we are also identifying the current subsidy of general tax dollars for these services. Therefore, we can show the City Council how much fee services are subsidized at the expense of community-supported services. Does the City want to continue to use precious tax dollars to support, for instance, a bathroom remodel and permitting inspection that only benefits a particular property owner or use those tax dollars on things that can only be supported by tax dollars, like police patrol and park maintenance? They will now have that information to be able to make that conscious choice. Changing the discussion from fee increases to tax subsidy policy along with RCS’ experience in successfully presenting the results of similar studies to City Councils ensures that the City will be able to meet its policy objectives. RCS’ process will do more than update the City’s current fees. We take a deep dive into each and every fee, discussing its purpose, structure, legal defensibility, payment collection effectiveness, and value to the community. Based on our 42 years of experience, we are comfortable recommending the restructuring, addition and removal of fees to make it better for the City. In addition to user fees, this Study will allow Grand Terrace to update your rents/permit to use fees and fines/bails. RCS’ Comprehensive Fee Study Will Provide the Following C.7.b Packet Pg. 104 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 13 PROJECT TASKS RCS’ Proposal will perform all project tasks listed in the City of Grand Terrace’s’ Request for Proposal. The task descriptions below further explain the steps and timeline of RCS’ fee study. The project tasks in the City’s RFQ shall prevail should there be conflicting language with RCS’ proposal. Task 1: Obtain Budget & Personnel Data RCS will review and prepare necessary files for the project. This includes obtaining and reviewing prior user fee reports and fee schedules, line-item budget details, salary schedules, MOUs and fringe benefit details. Task 2: Kick-off Meeting RCS will conduct a Citywide meeting, explaining the operational methodology of the study and the role of staff. We will review any possible issues that may arise as well as answer any questions from staff about the process. This meeting is crucial for the process as we want to ensure that everyone understands the various steps in the process and what is expected of them. Task 3: Review the Service List with Staff RCS will review the service list through meetings with each department. We will acknowledge fees that are properly structured, introduce new fees for services currently provided without a charge, discuss deletion of fees no longer valid, and consider any changes to any fee structure and calculation methods. The end result, whichever method is used, will be a fee structure that best fits the City going forward. While this list will change during the course of the Study as it is refined, it will be the initial basis from where we start. Task 4: Develop Staff Time Allocations RCS will interview personnel providing end-user services to ensure that costs from all functional areas directly involved with a service are included in the cost of that service. This component will form the bulk of the time spent by staff. There will be two to four meetings with supervisory level staff in each functional area to create and verify the amount of time spent by staff on the services identified in the task above. We do not ask City staff to do our job by filling out forms detailing how they spend their time. This interactive process, and the fact that we allocate 100% of all departmental staff, ensures that the information being generated is valid and reliable. A sample Time Detail Report is included in this proposal. C.7.b Packet Pg. 105 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 14 Task 5: Develop Fully Allocated Hourly Rates RCS will develop a fully allocated hourly rate for each departmental employee, including salaries and benefits, miscellaneous operating services and supply costs, citywide overhead and departmental overhead. This fully burdened rate is needed to calculate the full cost of each fee service. Task 6: Calculate Fee Cost Recovery All the information from the tasks above are entered into our costing software and calculated. The calculation will present us with the current fee for each service, the full cost for each service, and the subsidy level that the City is absorbing. Since we gathered the number of times the fee service occurs per year, we can identify the per- item as well as per-year fiscal impact. Task 7: Prepare Draft Report RCS will prepare a Draft Report that identifies the total costs for each service, along with current fees, and makes fee recommendations for each service presented as well potential new fees for services the City provides but does not charge for. Service costs will be compared with existing recovery levels. RCS will review this report with the departments so that each will have input on the fees presented in the Final Report. Task 8: Survey Similar Municipalities RCS will survey other municipalities and document the findings. The survey summary would compare similar fees for services at different cities, however our results cannot explain why the fees differ. Task 9: Prepare Final Report Based on staff input, RCS will prepare a Final Report, which will have recommendations for new fees, subsidy percentages and revenue projections from those fees. The Report will include text and summary tables that will clearly explain the results and the context. All recommended fees will comply with Propositions 4, 218, 26 and any other applicable laws. Hardcopies and editable electronic copies will be provided to the City. All documents developed during the Study will be provided, including the final comprehensive review, final report along with associated models, tables, graphs, related schedules, cost documentation as well as all related supporting documents, including records and professional time spent. RCS will consult with staff as needed to defend the fee study in the event of audits or other challenges. C.7.b Packet Pg. 106 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 15 Task 10: Present Report to the City Council RCS will assist City staff and the City Council in the review and adoption of revised user fees and subsidy percentages. RCS will assist City staff in the implementation of the revised user fees. ONSITE MEETINGS AND VIDEO CONFERENCING MEETINGS RCS is available to be onsite at the City for the project kick-off meeting and all working meetings occurring the same day. RCS will utilize our Zoom account, or any video conferencing platform of the City’s choosing, to facilitate all other working meetings. Our experience has determined that the use of video conferencing is more flexible in scheduling meetings, permitting City staff to quickly access reports and files on their computers, and allowing everyone to view and discuss the same documents at the same time. RCS Partner(s) will be present at all public meetings involving the City Council. CLIENT INPUT RCS will make every effort to advise, seek input from and, in general, explain the work as it is being performed. For a project to be completed successfully, we depend on dedicated and engaged staff participation. Most of the staff participation is to attend working meetings with RCS. There will be no “homework” to be completed and returned to us. The City should also designate a Project Coordinator for the fee study who will: 1) Identify key City staff and coordinate the kick-off meeting(s) 2) Assist in obtaining requested information 3) Coordinate the review of draft reports, and 4) Provide project direction if needed THE RIGHT SOFTWARE In 2000, RCS developed and began using a Windows-based software that is user-friendly and does more than what spreadsheets can do. It includes a logical, easy-to-use interface and produces easy-to-understand reports. This Costing Software, based on an easily downloadable 14mb package, will allow the City to continuously update the Cost Allocation and User Fee Studies, as well as input hypothetical services to calculate the estimated costs of providing new services without the worry of incorrect formulas inherent in Excel-based systems. In addition, we are no longer impacted by Microsoft’s upgrades and security patches, which frequently broke Excel formulas and macros, making it challenging for RCS to support our clients, who are all using different versions of office suite software. C.7.b Packet Pg. 107 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 16 SAMPLE REPORTS Please see the following examples of reports produced within our software. These reports cannot be easily created with spreadsheets and word processing software. RCS reports are detailed and easily understood. The amount of details presented in RCS reports facilitate future fee updates, and makes the fees easier to defend. In the examples in the following pages, we highlighted some data points to show how information can easily be traced through our reports. All the data within our software can be exported to Excel for analysis and reporting by the City. Our full reports are comprehensive and several hundreds of pages long. We would be happy to email you copies if requested. C.7.b Packet Pg. 108 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 17 SAMPLE – FEE SERVICE SUMMARY WORKSHEET C.7.b Packet Pg. 109 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 18 SAMPLE – FEE SERVICE DETAIL WORKSHEET C.7.b Packet Pg. 110 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 19 SAMPLE – FULLY ALLOCATED HOURLY RATE DETAIL REPORT C.7.b Packet Pg. 111 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 20 SECTION FOUR – REFERENCES We encourage you to contact our references. We have also included a comprehensive list of clients and projects through the years. Jurisdiction Contact Title City of Beaumont Jennifer Ustation (951) 572-3236 Finance Director justation@beaumontca.gov RCS is updating the City’s full and OMB cost allocation plan, and comprehensive user fee. The Fee Study will be presented to the City Council in September 2022. City of El Segundo Joseph Lillio (310) 524-2315 Director of Finance jlillio@elsegundo.org RCS completed a Cost Allocation Plan and Comprehensive Fee Study for the City in 2018. The City Council adopted changes to its fee schedule, including Building fees. RCS is currently contracted to evaluate their Aquatics program and update the City’s fee schedule. City of Farmersville Steve Huntley (559) 747-0458 Finance Director shuntley@cityoffarmersville- ca.gov RCS was selected in September 2020 to update the City’s Cost Allocation Plan, User Fees and Impact Fees. The User Fees were adopted by the City Council in September 2021, and Impact Fees were adopted in December 2021. City of Loma Linda Jarb Thaipejr (909) 799-2811 City Mananger jthaipejr@lomalinda-ca.gov RCS has provided various services for the City of Loma Linda since 2002, most recently in 2021. City of Santa Maria Mary Harvey (805) 925-0951 Finance Director mharvey@citofsantamaria.org RCS was selected in 2019 to update the City’s Comprehensive User Fee Schedule. In 2022, RCS was selected to update the City’s Cost Allocation Plan, and provide annual user fee/cost allocation plan updates for the next 3-5 years C.7.b Packet Pg. 112 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 21 CLIENTS SERVED USER FEE STUDY/COST ALLOCATION PLAN Carpentaria-Summerland Fire District Chino Valley Independent Fire District City of Alhambra City of Antioch City of Arcadia City of Atascadero City of Azusa City of Banning City of Barstow City of Bend, OR City of Beverly Hills City of Big Bear Lake City of Brea City of Buena Park City of Carlsbad City of Carmel-by-the-Sea City of Carpentaria City of Carson City of Ceres City of Chino City of Claremont City of Coachella City of Concord City of Corona City of Cotati City of Cudahy City of Desert Hot Springs City of Diamond Bar City of Dinuba City of Dublin, Ohio City of El Cajon City of El Segundo City of Elk Grove City of Eureka City of Folsom City of Fontana City of Foster City City of Fountain Valley City of Fullerton City of Glendale City of Glendora City of Goodyear, Arizona City of Hemet City of Hermosa Beach City of Hesperia City of Highland City of Huntington Beach City of Kennewick, WA City of La Canada-Flintridge City of La Habra Heights City of La Mirada USER FEE STUDY/COST ALLOCATION PLAN (continued) City of La Palma City of La Puente City of Lake Elsinore City of Lake Forest City of Lakewood City of Lancaster City of Lathrop City of Lawndale City of Lemoore City of Lincoln City of Lindsay City of Loma Linda City of Long Beach City of Los Altos City of Lynwood City of Mammoth Lakes City of Manhattan Beach City of Marina City of Menifee City of Merced City of Milpitas City of Monrovia City of Monterey City of Moreno Valley City of Morgan Hill City of Morro Bay City of Needles City of Norwalk City of Oakdale City of Oceanside City of Ontario City of Oroville City of Oxnard City of Palm Desert City of Palm Springs City of Palmdale City of Pasadena City of Peoria, AZ City of Pico Rivera City of Pismo Beach City of Pittsburg City of Pomona City of Port Hueneme City of Porterville City of Rancho Cucamonga City of Rancho Palos Verdes City of Red Bluff City of Redlands City of Rialto City of Richmond City of Ridgecrest City of Riverside City of Rocklin USER FEE STUDY/COST ALLOCATION PLAN (continued) City of Salinas City of San Clemente City of San Gabriel City of San Juan Capistrano City of San Marino City of San Rafael City of Sanger City of Santa Clarita City of Santa Monica City of Santa Paula City of Scotts Valley City of Seal Beach City of Seaside City of Selma City of Shafter City of Sierra Madre City of Simi Valley City of Solana Beach City of South Gate City of South Lake Tahoe City of South Pasadena City of Springville, UT City of Stockton City of Suisun City City of Taft City of Thousand Oaks City of Tracy City of Tulare City of Turlock City of Upland City of Villa Park City of Vista City of West Covina City of West Jordan, UT City of Westminster City of Yuba City City or Rancho Mirage Coachella Valley Assoc of Gov’t Contra Costa County County of Cobb, GA County of Contra Costa County of San Bernardino County of Tulare Imperial County Oceanside Harbor District Orange County Fire Authority Orange County Vector Control District Placer County Water Agency Riverside County Transport. Comm. San Bernardino Assoc. Gov’t South Jordan City, UT C.7.b Packet Pg. 113 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 22 USER FEE STUDY/COST ALLOCATION PLAN (continued) Town of Apple Valley Town of Los Gatos Town of Mammoth Lakes Town of Truckee Ventura County Fire District IMPACT FEE STUDY Antelope Valley Fire District Apple Valley Fire District Barstow Fire District Bridgeport Fire District Brigham City Corporation, UT Carpentaria-Summerland Fire District Chalfant Public Services (Fire) Protection District City of Alhambra City of Anaheim City of Atascadero City of Baldwin Park City of Barstow City of Big Bear Lake City of Calimesa City of Chino City of Coachella City of Colton City of Corona City of Desert Hot Springs City of Folsom City of Gilroy City of Glendale City of Gonzales City of Grand Terrace City of Greenfield City of Hemet City of Highland City of Huntington Beach City of Jurupa Valley City of King City City of Laguna Hills City of Lemoore City of Loma Linda City of Menifee City of Monterey Park City of Morgan Hill City of Murrieta City of Needles City of Newport Beach City of North Ogden, UT City of Oceanside City of Ontario City of Orange City of Oroville City of Paso Robles City of Petaluma City of Pismo Beach IMPACT FEE STUDY (continued) City of Rancho Cordova City of Reedley City of Rialto City of Riverside City of San Bernardino City of Santa Paula City of Scotts Valley City of Sedona, AZ City of Selma City of Sierra Madre City of Thousand Oaks City of Tracy City of Tulare City of Wheatland City of Whittier County of Monterey Sheriff’s Department County of San Bernardino Feather River Recreation and Park District June Lake Fire District Lake Havasu City, AZ Long Valley Fire District North Central Fire District SANBAG South Jordan City, UT South Ogden City, UT Town of Apple Valley Town of Mammoth Lakes Town of Paradise Town of Truckee Washington Terrace City, UT West Jordan City, UT Wheeler Crest Fire District MISCELLANEOUS PROJECTS Brigham City Corporation, UT – Closed Indian School Use Conversion City of Azusa – Plan Check/Inspection Process Review City of Beverly Hills – Rent Stabilization Fee City of Colton – Electric Utilities Collection Procedural Manual City of Corona – Communications Repeater Cost Financing City of Corona – Interstate 15 Area Public Safety Facility Financing City of Fontana – General & Departmental Overhead Plan City of Garden Grove - Internal Service Fund Balance Study City of Hemet – Supplemental DIF, Public Peril Report MISCELLANEOUS PROJECTS (continued) City of Los Altos – Existing DIF Review City of Milpitas – Business License Ordinance Review City of Needles – Development Agreement Assistance City of Pico Rivera – Business License Ordinance Review City of Port Hueneme – Revenue Search Report City of Redlands – Street Sweeping Rate Study City of San Bernardino – Verdemont Area Financing Analysis City of San Clemente – Business License Review City of Santa Paula – General Plan Element City of Seaside – Hayes Housing Development Service Demands City of South Lake Tahoe – Transfer of Custody Cost Verification City of Westminster – Productivity Measurement Module Lake Havasu City, AZ – Capital Financing Plan Los Angeles Fire/Police Retirement System – Fiscal Review San Bernardino County – Special District Office Finance Review South Jordan City, UT – Business Regulation Costing Town of Windsor – Long Range Capital Financing Plan C.7.b Packet Pg. 114 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 23 SECTION FIVE – ESTIMATED PROJECT TIMELINE AND PRICING PROJECT TIMELINE RCS is available to begin work the week of October 17, 2022, and will present the Fee Study to the City Council on January 24, 2023. This schedule, of course, will require the cooperative participation of City staff. PRICING RCS proposes the following project costs, with a NOT TO EXCEED AMOUNT OF $28,000. Task Milestones/Deliverables Hours Total Cost Prepare City Data Schedule of Positions and Budget 16 2,800 Kick-Off Meeting Informational Meeting 4 700 Review Service List Preliminary Service List 8 1,400 Develop Staff Time Allocations Time Detail Reports 40 7,000 Develop Fully Alloc Hourly Rates Fully Alloc. Hourly Rate Reports 12 2,100 Calculate Fee Cost Recovery Fee Summary Sheets 24 4,200 Prepare & Review Draft Report Draft Fee Study Report 24 4,200 Conduct Fee Survey Survey Summary 16 2,800 Public Meeting/Hearing Public Meetings 16 2,800 TOTAL PROJECT COST 160 $28,000 The above proposal is based on a cost of $175 per hour. The billing rate for any additional work not covered by this proposal would be $195 per hour. Our proposal covers all costs except for the following additional costs that the City may incur: • Insurance coverage beyond our basic general liability and workers compensation Project Timeline Oct 2022 Nov 2022 Dec 2022 Jan 24 2023 Feb 14, 2023 Obtain Budget & Personnel Data Project Kick-Off Review Service List Develop Staff Time Allocations Develop Fully Alloc Hourly Rates Calculate Fee Cost Recovery Completion of Project Present Draft Report to City Staff Conduct Fee Survey City Council Workshop Presentation Final Report for Council Adoption C.7.b Packet Pg. 115 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) Proposal for Comprehensive Citywide User Fee and Rate Study Page 24 requiring an additional premium. RCS standard coverage includes workers compensation pursuant to state law, comprehensive liability Insurance with a combined single limit coverage of $2,000,000 and professional liability insurance with a combined coverage of $2,000,000. • Meeting attendance beyond those identified in this proposal. • Printing of reports beyond those stated in the RFP. RCS will submit four equal invoices plus any miscellaneous costs from the previous paragraph. The first invoice will be submitted ten days after notice to proceed. Each invoice will be due within 30 days of submission. C.7.b Packet Pg. 116 At t a c h m e n t : R C S G r a n d T e r r a c e U s e r F e e S t u d y P r o p o s a l ( U s e r F e e a n d R a t e S t u d y ) 01247.0001/514122.2 12/30/2021 AGREEMENT FOR CONTRACT SERVICES By and Between CITY OF GRAND TERRACE and REVENUE & COST SPECIALISTS For COMPREHENSIVE CITYWIDE USER FEE AND RATE STUDY C.7.c Packet Pg. 117 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -2- AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND REVENUE & COST SPECIALISTS FOR COMPREHENSIVE CITYWIDE USER FEE AND RATE STUDY This “AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND REVENUE & COST SPECIALISTS A COMPREHENSIVE CITYWIDE USER FEE AND RATE STUDY” (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 Revenue & Cost Specialists (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “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. Consultant, 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 Consultant 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. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, the Consultant shall provide those services specified in the “Scope of Services” 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, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in C.7.c Packet Pg. 118 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -3- performing the work and services required hereunder and that all 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 Consultant’s Proposal. The Scope of Service shall include the Consultant’s scope of work or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. Consultant 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 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 this Agreement. Consultant 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 Consultant’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. 1.5 Familiarity with Work. By executing this Agreement, Consultant warrants that Consultant (i) has thoroughly investigated and considered the scope of services 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, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Consultant discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant’s risk until written instructions are received from the Contract Officer. 1.6 Care of Work. The Consultant shall adopt reasonable methods 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 C.7.c Packet Pg. 119 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -4- damages, to persons or property, until acceptance of the work by City, except such losses or damages as may be caused by City’s own negligence. 1.7 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. 1.8 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 costs 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 or $25,000, whichever is less; or, in the time to perform of up to one hundred eighty (180) days, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed. 1.9 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 Consultant 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 Twenty-eight Thousand Dollars ($28,000) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8. C.7.c Packet Pg. 120 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -5- 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 contract retention; (iii) payment for time and materials based upon the Consultant’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, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant 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 Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending said meetings. 2.4 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: 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, or as provided in Section 7.3, 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 City for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. 2.5 Waiver. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant. C.7.c Packet Pg. 121 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -6- 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. 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 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 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 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) 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 Consultant. The following principals of Consultant (“Principals”) are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Eric Johnson President C.7.c Packet Pg. 122 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -7- (Name) (Title) Chu Thai 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 foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City. Additionally, 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, if any, assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant’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 Consultant. Consultant 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. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Consultant, nor any of Consultant’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. Consultant expressly waives any claim Consultant may have to any such rights. 4.3 Contract Officer. The Contract Officer shall be City Manager or such person as may be designated by the City Manager. It shall be the Consultant’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Consultant 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 Consultant, 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 Consultant’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an C.7.c Packet Pg. 123 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -8- 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. 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. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. 4.5 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant 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. 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 Consultant, 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 Consultant or any surety of Consultant of any liability hereunder without the express consent of City. ARTICLE 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) General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence 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, then 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 C.7.c Packet Pg. 124 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -9- $1,000,000. Said policy shall include coverage for owned, non-owned, leased, hired cars and any 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) 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 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. All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its 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, its officers, employees and agents and their respective insurers. Moreover, 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 cancelled, the Consultant shall, prior to the cancellation date, submit new evidence of insurance in conformance with 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 endorsements 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. All certificates shall name the City as additional insured (providing the appropriate endorsement) and shall conform to the following “cancellation” notice: CANCELLATION: C.7.c Packet Pg. 125 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -10- SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATED THEREOF, THE ISSUING COMPANY SHALL MAIL THIRTY (30)-DAY ADVANCE WRITTEN NOTICE TO CERTIFICATE HOLDER NAMED HEREIN. [to be initialed] ______________ Consultant Initials City, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities Consultant performs; products and completed operations of Consultant; premises owned, occupied or used by Consultant; or any automobiles owned, leased, hired or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, employees or volunteers. Consultant’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. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. The Consultant agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which the Consultant may be held responsible for the payment of damages to any persons or property resulting from the Consultant’s activities or the activities of any person or persons for which the Consultant is otherwise responsible nor shall it limit the Consultant’s indemnification liabilities as provided in Section 5.3. In the event the Consultant subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, the contract between the Consultant and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Consultant is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City. 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 C.7.c Packet Pg. 126 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -11- 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 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. 5.4 Sufficiency of Insurer. 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 Risk Manager of the City (“Risk Manager”) due to unique circumstances. If this Agreement continues for more than 3 years duration, or in the event the risk manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the Risk Manager. C.7.c Packet Pg. 127 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -12- ARTICLE 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. 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 three (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 Consultant’s business, custody of the books and records may be given to City, and access shall be provided by Consultant’s successor in interest. Notwithstanding the above, the Consultant 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. Consultant 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. Consultant 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, Consultant agrees that if Consultant 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 Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant 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”), including any electronic documents and materials, prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City in a format of the City’s choice 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 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 Consultant will be at the City’s sole risk and without liability to Consultant, and Consultant’s guarantee and warranties shall not extend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant C.7.c Packet Pg. 128 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -13- shall have the 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 Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. 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. 6.4 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 City without prior written authorization from the Contract Officer. (b) Consultant, 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 Consultant gives City notice of such court order or subpoena. (c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then 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 City should Consultant, 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 Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. 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 Consultant 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 C.7.c Packet Pg. 129 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -14- 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, though not reduced, 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. 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 Consultant 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 Consultant’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. 7.3 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (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 Consultant’s acts or omissions in performing or failing to perform Consultant’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 Consultant, 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 Consultant to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant 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 C.7.c Packet Pg. 130 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -15- 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, Consultant shall file a statutory 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 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 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, except as provided in Section 7.3. 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. 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. 7.8 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. 7.9 Attorney’s 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 C.7.c Packet Pg. 131 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -16- 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. 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 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. 8.2 Conflict of Interest. Consultant 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 Consultant’s performance of services under this Agreement. Consultant 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. Consultant 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. 8.3 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 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. 8.4 Unauthorized Aliens. Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant 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, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorney’s fees, incurred by City. C.7.c Packet Pg. 132 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -17- ARTICLE 9. MISCELLANEOUS PROVISIONS 9.1 Notices. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton 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. 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 Consultant 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. C.7.c Packet Pg. 133 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 -18- 9.6 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation, including but not limited to the Political Reform Act (Government Code Sections 81000, et seq.) 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 _______ 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] C.7.c Packet Pg. 134 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 19 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 _____________________________________ _ Darcy McNaboe, Mayor ATTEST: _____________________________________ _ Debra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _____________________________________ _ Adrian R. Guerra, City Attorney CONSULTANT: Revenue & Cost Specialists By: ___________________________________ Name: Eric Johnson Title: President By: ___________________________________ Name: Chu Thai Title: Vice President Address: 1519 E Chapman Ave, Ste C Fullerton, CA 92831_ 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. C.7.c Packet Pg. 135 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 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. C.7.c Packet Pg. 136 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 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. C.7.c Packet Pg. 137 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 A-1 EXHIBIT “A” SCOPE OF SERVICES I. Consultant will perform the following Services: A. Prepare a Comprehensive Citywide User Fee Study pursuant to this Exhibit “A” (“Study”). i. Task 1: Obtain Budget & Personnel Data 1. Consultant shall review and prepare necessary files for the Study. This includes obtaining and reviewing prior user fee reports and fee schedules, line-item budget details, salary schedules, MOUs and fringe benefit details. ii. Task 2: Hold a Kick-off Meeting 1. Consultant shall conduct a Citywide meeting, explaining the operational methodology of the study and the role of City staff. Consultant shall review any possible issues that may arise as well as answer any questions from staff about the process. This meeting is crucial for the process in order to ensure that all City staff understands the various steps in the process and what is expected of them. iii. Task 3: Review the Service List with City Staff 1. Consultant shall review the City service list through meetings with each City department. Consultant shall acknowledge fees that are properly structured, introduce new fees for City services currently provided without a charge, discuss deletion of fees no longer valid, and consider any changes to any fee structure and calculation methods, as applicable. The end result, whichever method is used, will be a fee structure that best fits the City going forward. While this list will change during the course of the Study as it is refined, it will be the initial basis from where we start. iv. Task 4: Develop City Staff Time Allocations 1. Consultant shall interview City personnel providing end-user services to ensure that costs from all functional areas directly involved with a service are included in the cost of that service. This component will form the bulk of the time spent by staff. Consultant anticipates at least two to four meetings with supervisory level staff in each functional area to create and verify the amount of time spent by staff on the services identified in the task above. C.7.c Packet Pg. 138 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 A-2 This process shall be interactive process (e.g., Consultant will not simply and only require staff to fill out forms detailing how they spend their time) in order to ensure that the information being generated is valid and reliable. v. Task 5: Develop Fully Allocated Hourly Rates 1. Consultant shall develop a fully allocated hourly rate for each departmental employee of the City, including salaries and benefits, miscellaneous operating services and supply costs, citywide overhead and departmental overhead. This fully burdened rate is needed to calculate the full cost of each fee service. vi. Task 6: Calculate Fee Cost Recovery 1. All the information from the tasks above shall be entered into Consultant’s costing software and calculated. The calculation shall provide the current fee for each City service, the full cost for each City service, and the subsidy level that the City is absorbing. Consultant shall gather the number of times the fee service occurs per year in order to identify the per-item as well as per-year fiscal impact. vii. Task 7: Prepare Draft Report 1. Consultant shall prepare a Draft Report that identifies the total costs for each City service, along with current fees, and make fee recommendations for each City service presented as well potential new fees for services the City provides but does not charge for. Service costs will be compared with existing recovery levels. Consultant shall review this report with the City departments so that each will have input on the fees presented in the Final Report. viii. Task 8: Survey Similar Municipalities 1. Consultant shall survey other municipalities and document the findings. The survey summary shall compare similar fees for services at different cities, however these results cannot explain why the fees differ. ix. Task 9: Prepare Final Report 1. Based on City staff input, Consultant shall prepare a Final Report, which will have recommendations for new fees, subsidy percentages and revenue projections from those fees. The Final Report shall include text and summary tables that will clearly explain the results and the context. All recommended fees shall comply with Propositions 4, 218, 26 and any other applicable laws. C.7.c Packet Pg. 139 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 A-3 Hardcopies and editable electronic copies shall be provided to the City. All documents developed during the Study shall be provided, including the final comprehensive review, final report along with associated models, tables, graphs, related schedules, cost documentation as well as all related supporting documents, including records and professional time spent. Consultant shall consult with City staff as needed to defend the fee study in the event of audits or other challenges. x. Task 10: Present Report to the City Council 1. Consultant shall assist City staff and the City Council in the review and adoption of revised user fees and subsidy percentages, including preparations or making of any presentations to the City Council. Consultant shall assist City staff in the implementation of the revised user fees. II. Consultant shall perform all Services in a manner that is consistent with Section IV of the City of Grand Terrace Request for Proposals Comprehensive Citywide User Fee and Rate Study, issued on August 16, 2022, which is incorporated herein by this reference and attached as Exhibit “A-1”. III. As part of the Services, Consultant will prepare and deliver the tangible work products to the City pursuant to this Agreement as the City may require from time to time. IV. In addition to the requirements of Section 6.2, during performance of the Services, Consultant will keep the City appraised of the status of performance by delivering status reports as the City may require from time to time. V. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City. VI. Consultant will utilize the following personnel to accomplish the Services: A. Eric Johnson, President B. Chu Thai, Vice President C.7.c Packet Pg. 140 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 A-4 EXHIBIT “A-1” REQUEST FOR PROPOSALS C.7.c Packet Pg. 141 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 B-1 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) No Special requirements. C.7.c Packet Pg. 142 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 C-1 EXHIBIT “C” SCHEDULE OF COMPENSATION I. Consultant shall perform the following tasks at the following rates: Task Milestones/Deliverables Hours Cost Prepare City Data Sched of Positions & Budget 16 $2,800 Kick-off Meeting Informational Meeting 4 700 Review Service List Preliminary Service List 8 1,400 Develop Staff Time Allocations Time Detail Reports 40 7,000 Develop Fully Alloc Hrly Rates Fully Alloc Hrly Rate Reports 12 2,100 Calculate Fee Cost Recovery Fee Summary Sheets 24 4,200 Prepare & Review Draft Report Draft Fee Study Report 24 4,200 Conduct Fee Survey Survey Summary 16 2,800 Public Meeting Hearing Public Meetings 16 2,800 TOTAL PROJECT COST 160 $28,000 II. 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. III. The total compensation for the Services shall not exceed $28,000 as provided in Section 2.1 of this Agreement. IV. The Consultant’s billing rates for all personnel are $175 per hour. C.7.c Packet Pg. 143 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d 01247.0001/514122.2 12/30/2021 D-1 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Consultant shall perform all Services timely in accordance with the schedule to be developed by Consultant and subject to the written approval of the Contract Officer and the City Attorney’s office. II. Consultant shall deliver the following tangible work products to the City by the following dates. Project Timeline Dates Obtain Budget & Personnel Data October/November 2022 Project Kick-Off October/November 2022 Review Service List October/November 2022 Develop Staff Time Allocations October/November 2022 Develop Fully Allocable Hourly Rates November 2022 Calculate Fee Cost Recovery November 2022 Completion of Project December 2022 Present Draft Report to City Staff December 2022 Conduct Fee Survey December 2022 City Council Workshop Presentation January 2023 Final Report for Council Adoption February 2023 III. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. C.7.c Packet Pg. 144 At t a c h m e n t : G r a n d T e r r a c e - R C S f o r C o m p r e h e n s i v e C i t y - w i d e U s e r F e e & R a t e S t u d y C o n t r a c t S e r v i c e s A g r e e m e n t [ R e v i s i o n 3 ] ( U s e r F e e a n d AGENDA REPORT MEETING DATE: October 25, 2022 Council Item TITLE: Approval of Amendment to the Agreement Between the City of Grand Terrace and Interwest Consulting Group, Inc. to Increase Compensation PRESENTED BY: Shanita Tillman, Management Analyst RECOMMENDATION: Approve Amendment No. 3 to the Agreement for On-Call Engineering Services with Interwest Consulting Group Inc. (dated July 14, 2020), increase contract amount from $100,000 to $125,000; and Authorize the City Manager to execute the above-mentioned amendments subject to the City Attorney’s approval as to form. 2030 VISION STATEMENT: This staff report supports the Mission to preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government. It also supports our Core Values by continuing to provide exceptional customer service to the residents of the City of Grand Terrace. BACKGROUND: Today the Public Works Department is clearly focused on the development of new infrastructure, maintenance of existing infrastructure, and management of Public Works Consultant Services. The Public Works Department is in a unique position, has a considerable number of projects are funded by special funds and grants, which are not subject to general fund fluctuations. Therefore, Public Works project delivery is contingent on adequate staff resources and not budget constraints. In past years, Interwest has been one of few on-call engineering consulting firms the City has utilized. DISCUSSION: The City can utilize the above-mentioned engineering consultant on an as-needed basis, for Public Works related projects, which affords the City an opportunity to access resources without a long-term commitment. These services are specialized in nature, none of the tasks associated with on-call engineering services can be performed by any city represented positions (classified city positions). Staff is confident that continuing with on-call engineering services will allow projects to be expedited. C.8 Packet Pg. 145 With respect to the Interwest Agreement, Staff recommends that the City Council approve an Amendment No. 3 to the Interwest agreement, which was previously extended it to July 14, 2023, and increase the agreement amount by $25,000 for a total compensation of $125,000. ENVIRONMENTAL IMPACT: The agreement has no environmental impact. FISCAL IMPACT: Proposed expenditures will come from the General Fund > Public Works > Professional/ Special Services account 10-175-250-000. ATTACHMENTS: • Attachment 1 - Interwest Agreement (On-Call Engineering Services)(PDF) • Attachment 2 - Amendment No. 1 to Interwest Agreement (On-Call Engineering Services) (PDF) • Attachment 3 - Amendment No. 2 to Interwest Agreement (On-Call Engineering Services) (DOCX) • Attachment 4 - Proposed Agreement No. 3 Interwest Amendment(DOCX) APPROVALS: Shanita Tillman Completed 10/12/2022 10:23 AM Finance Completed 10/14/2022 10:25 AM City Manager Completed 10/19/2022 2:48 PM City Council Pending 10/25/2022 6:00 PM C.8 Packet Pg. 146 2020-15 AGREEMENT FOR CONTRACT SERVICES By and Between CITY OF GRAND TERRACE and INTERWEST CONSULTING GROUP, INC. for ON-CALL ENGINEERING SERVICES 01247.0006/656770.2 7/9/2020 c Task Order, the Task Order's Scope of Work/Services or the Notice to Proceed, or both, shall provide the detailed schedule of performance.III. The Contract Officer may approve extensions for performance of the Services in accordance with Section 3.2.01247.0006/656677.2 7/ 9/2020 D-1 Construction Management KK. Jane Freij, Construction Management LL. Rafael Casillas, PE, Public Outreach and Communication MM. Christopher Kelley, PE, QSD/P, Municipal Stormwater Permit Compliance Services 01247.0006/656677. 2 7/9/2020 A-6 C.8.a Packet Pg. 147 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND INTERWEST CONSULTING GROUP, INC. FOR ON-CALL ENGINEERING SERVICES This "AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND INTERWEST CONSULTING GROUP, INC. FOR ON-CALL ENGINEERING SERVICES" (herein "Agreement") is made and entered into this !4014 day of JuLM , 2020 by and between the City of Grand Terrace, a California municipal corporation City") and Interwest Consulting Group, Inc. ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as the Parties." RECITALS A. City has sought, by issuance of a Request for Qualifications, the performance of the services defined and described particularly in Article 1 of this Agreement. B. The Parties desire to formalize the selection of Consultant 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. SERVICES OF CONSULTANT 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement,the Consultant shall provide those services specified in the"Scope ofServices"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, Consultant represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the services required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Consultant shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Consultant covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all 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. 01247.0006/656770.2 7/9/2020 2- rs and assigns of the parties.SIGNATURES ON FOLLOWING PAGE]01247.0006/656677.2 7/9/2020 18-17-7.9 Attorney's 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 01247.0006/656677.2 7/9/2020 15-euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656677.2 7/ 9/2020 12- C.8.a Packet Pg. 148 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 1.2 Consultant's Proposal. The Scope of Service shall include the Consultant's scope of work or bid which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal and this Agreement,the terms of this Agreement shall govern. 1.3 Compliance with Law. Consultant 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 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 ofthe services required by this Agreement. Consultant 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 Consultant'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. 1.5 Familiarity with Work. By executing this Agreement, Consultant warrants that Consultant (i) has thoroughly investigated and considered the scope of services 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, Consultant warrants that Consultant has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. Should the Consultant discover any latent or unknown conditions, which will materially affect the performance of the services hereunder, Consultant shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the Contract Officer. 1.6 Care of Work. The Consultant shall adopt reasonable methods 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 may be caused by City's own negligence. 01247.0006/656770.2 7/9/2020 3- 7/9/ 2020 18-17-7.9 Attorney's 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 01247.0006/656677.2 7/9/2020 15-euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/ 656677.2 7/9/2020 12- C.8.a Packet Pg. 149 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 1.7 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. 1.8 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 costs ofthe 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 or$25,000,whichever is less; or, in the time to perform of up to one hundred eighty 180) days, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other consultants. No claims for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed. 1.9 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 ofa 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 Consultant 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 Fifty Thousand Dollars ($50,000) (the "Contract Sum"), unless additional compensation is approved pursuant to Section 1.8. 01247.0006/656770.2 7/9/2020 4- 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 01247.0006/656677.2 7/9/2020 15- euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656677.2 7/9/2020 12- C.8.a Packet Pg. 150 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 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 contract retention; (iii) payment for time and materials based upon the Consultant'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, and only if specified in the Schedule of Compensation. The Contract Sum shall include the attendance of Consultant 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 Consultant is required to attend additional meetings to facilitate such coordination, Consultant shall not be entitled to any additional compensation for attending said meetings. 2.4 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: 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, or as provided in Section 7.3, City will use its best efforts to cause Consultant to be paid within forty-five(45) days ofreceipt 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 City for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. 2.5 Waiver. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant. 01247.0006/656770.2 7/9/2020 5- ttorney' 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 01247.0006/656677.2 7/9/2020 15-euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656677.2 7/9/2020 12- C.8.a Packet Pg. 151 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r ARTICLE 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. In addition,upon issuance of a Notice to Proceed on a Task Order, time is of the essence in the performance of the Task Order's Scope of Work or Scope of Services. 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 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 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 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 two (2) years from the date hereof. The City in its sole and absolute discretion may extend the term of this Agreement by one (1) year. ARTICLE 4. COORDINATION OF WORK 4.1 Representatives and Personnel of Consultant. The following principals of Consultant ("Principals") are hereby designated as being the principals and representatives of Consultant authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: 01247.0006/656770.2 7/9/2020 6- ssion. Review and payment by City for any invoice provided by the Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law.2.5 Waiver.Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.01247.0006/656770.2 7/9/ 2020 5-ttorney'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 01247.0006/656677.2 7/9/2020 15-euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656677.2 7/9/2020 12- C.8.a Packet Pg. 152 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r James G. Ross Public Works Group Leader Name) Title) Manuel Gomez Project Manager 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 foregoing principals shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. All personnel of Consultant, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the foregoing Principals may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City. Additionally, 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,ifany, assigned to perform the services required under this Agreement. Consultant shall notify City of any changes in Consultant'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 Consultant. Consultant 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. Consultant shall not at any time or in any manner represent that Consultant or any of Consultant's officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Consultant,nor any of Consultant'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. Consultant expressly waives any claim Consultant 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 Consultant's responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Consultant 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 ofthis 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 Consultant, 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 Consultant's employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Consultant shall perform all services required herein as an 01247.0006/656770.2 7/9/2020 7- er necessary costs 01247.0006/656677. 2 7/9/2020 15-euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656677.2 7/9/2020 12- C.8.a Packet Pg. 153 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 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. 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. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. 4.5 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Consultant 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. 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 Consultant, 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 Consultant or any surety of Consultant of any liability hereunder without the express consent of City. ARTICLE 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) General Liability Insurance (Occurrence Form CG0001 or equivalent). A policy of comprehensive general liability insurance written on a per occurrence 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, then 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 01247.0006/656770.2 7/9/2020 8- umber,compensation or hours of service. Consultant shall perform all services required herein as an 01247.0006/656770.2 7/9/2020 7-er necessary costs 01247.0006/656677.2 7/9/2020 15-euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/ 656677. 2 7/9/2020 12- C.8.a Packet Pg. 154 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 1,000,000. Said policy shall include coverage for owned, non-owned, leased,hired cars and any automobile. d) Professional Liability. Professional liability insurance appropriate to the Consultant's profession. This coverage maybe 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) 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 include all ofthe 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. All of the above policies of insurance shall be primary insurance and shall name the City, its elected and appointed officers, employees and agents as additional insureds and any insurance maintained by City or its 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, its officers, employees and agents and their respective insurers. Moreover, 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 cancelled,the Consultant shall,prior to the cancellation date, submit new evidence of insurance in conformance with 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 endorsements 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. All certificates shall name the City as additional insured (providing the appropriate endorsement) and shall conform to the following"cancellation"notice: CANCELLATION: 01247.0006/656770.2 7/9/2020 9- y damage in an amount not less than 01247.0006/656770.2 7/9/2020 8-umber,compensation or hours of service. Consultant shall perform all services required herein as an 01247.0006/656770.2 7/9/2020 7-er necessary costs 01247. 0006/656677.2 7/9/ 2020 15-euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656677.2 7/9/2020 12- C.8.a Packet Pg. 155 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATED THEREOF, THE ISSUING COMPANY SHALL MAIL THIRTY (30)-DAY ADVANCE WRITTEN NOTICE TO CERTIFICATE HOLDER NAMED HEREIN. to be initialed] tiniltant Initials City, its respective elected and appointed officers, directors, officials, employees, agents and volunteers are to be covered as additional insureds as respects: liability arising out of activities Consultant performs;products and completed operations ofConsultant;premises owned,occupied or used by Consultant; or any automobiles owned, leased, hired or borrowed by Consultant. The coverage shall contain no special limitations on the scope of protection afforded to City, and their respective elected and appointed officers, officials, employees or volunteers. Consultant'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. Any deductibles or self-insured retentions must be declared to and approved by City. At the option of City, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City or its respective elected or appointed officers, officials, employees and volunteers or the Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims. The Consultant agrees that the requirement to provide insurance shall not be construed as limiting in any way the extent to which the Consultant may be held responsible for the payment of damages to any persons or property resulting from the Consultant's activities or the activities of any person or persons for which the Consultant is otherwise responsible nor shall it limit the Consultant's indemnification liabilities as provided in Section 5.3. In the event the Consultant subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, the contract between the Consultant and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Consultant is required to maintain pursuant to Section 5.1, and such certificates and endorsements shall be provided to City. 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 ofthe 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 01247.0006/656770.2 7/9/2020 10- Consultant shall perform all services required herein as an 01247.0006/656770.2 7/9/2020 7-er necessary costs 01247. 0006/656677.2 7/9/2020 15- euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656677.2 7/9/2020 12- C.8.a Packet Pg. 156 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 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 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. 5.4 Sufficiency of Insurer. 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 Risk Manager of the City ("Risk Manager") due to unique circumstances. If this Agreement continues for more than 3 years duration, or in the event the risk manager determines that the work or services to be performed under this Agreement creates an increased or decreased risk of loss to the City, the Consultant agrees that the minimum limits of the insurance policies may be changed accordingly upon receipt of written notice from the Risk Manager. 01247.0006/656770.2 7/9/2020 11- erformance 01247.0006/ 656770. 2 7/9/2020 10-Consultant shall perform all services required herein as an 01247.0006/656770.2 7/9/2020 7-er necessary costs 01247.0006/656677.2 7/9/2020 15-euse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/ 656677.2 7/9/2020 12- C.8.a Packet Pg. 157 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r ARTICLE 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. 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 three(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 Consultant's business, custody of the books and records may be given to City, and access shall be provided by Consultant's successor in interest. Notwithstanding the above, the Consultant 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. Consultant 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. Consultant 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, Consultant agrees that if Consultant 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 Consultant is providing design services, the cost of the project being designed, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Consultant 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"), including any electronic documents and materials, prepared by Consultant, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City in a format of the City's choice 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 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 Consultant will be at the City's sole risk and without liability to Consultant, and Consultant's guarantee and warranties shall not extend to such use, reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656770.2 7/9/2020 12- C.8.a Packet Pg. 158 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r shall have the 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 Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. 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. 6.4 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 City without prior written authorization from the Contract Officer. b) Consultant, 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 Consultant gives City notice of such court order or subpoena. c) If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then 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 City should Consultant, 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 Consultant or be present at any deposition, hearing or similar proceeding. Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant. 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 Consultant 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 01247.0006/656770.2 7/9/2020 13- will be at the City's sole risk and without liability to Consultant, and Consultant's guarantee and warranties shall not extend to such use,reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656770.2 7/9/2020 12- C.8.a Packet Pg. 159 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 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, though not reduced, 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. 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 Consultant 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 ofthe Consultant's default shall not be deemed to result in a waiver ofthe City's legal rights or any rights arising out of any provision of this Agreement. 7.3 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant 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 Consultant's acts or omissions in performing or failing to perform Consultant'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 Consultant, 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 Consultant to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant 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 01247.0006/656770.2 7/9/2020 14- C.8.a Packet Pg. 160 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 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, Consultant shall file a statutory 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 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 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, except as provided in Section 7.3. 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. 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. 7.8 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. 7.9 Attorney's 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 01247.0006/656770.2 7/9/2020 15- reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656770.2 7/ 9/2020 12- C.8.a Packet Pg. 161 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 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. 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 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 ofthe terms of this Agreement. 8.2 Conflict of Interest. Consultant 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 Consultant's performance of services under this Agreement. Consultant 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. Consultant 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. 8.3 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 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. 8.4 Unauthorized Aliens. Consultant hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C.A. §§ 1101, et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Consultant 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, Consultant hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorney's fees, incurred by City. 01247.0006/656770.2 7/9/2020 16- 7.9 Attorney's 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 01247.0006/656770.2 7/9/2020 15-reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656770.2 7/9/2020 12- C.8.a Packet Pg. 162 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r ARTICLE 9. MISCELLANEOUS PROVISIONS 9.1 Notices. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton 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. 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 Consultant 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 ofthe 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 ofthe 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. 01247.0006/656770.2 7/9/2020 17- 7.9 Attorney's 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 01247.0006/656770.2 7/9/2020 15-reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656770.2 7/9/2020 12- C.8.a Packet Pg. 163 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r 9.6 Warranty&Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect,in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of financial interest" shall be consistent with State law and shall not include interests found to be remote" or"noninterests"pursuant to Government Code Sections 1091 or 1091.5. Nor shall any such officer or employee participate in any decision relating to the Agreement which affects her/his financial interest or the financial interest of any corporation, partnership or association in which (s)he is, directly or indirectly, interested, in violation of any State statute or regulation,including but not limited to the Political Reform Act(Government Code Sections 81000, et seq.) 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 Initi s 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] 01247.0006/656770.2 7/9/2020 18- 7.9 Attorney' s 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 01247.0006/656770. 2 7/9/2020 15-reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656770.2 7/9/2020 12- C.8.a Packet Pg. 164 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: City of Grand errace, municipal corporation Darcy c 02oe, Ma EST: e ra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE &1, rER, LLP Adrian R. Guerra, City Attorney CONSULTANT: Interwest C s tin nc. By: ame: -r r i yut Title: By: Name: le0(Se A Title: 1j Address: 1500 S. Haven Avenue, Suite 220 Ontario, CA 92761 Tel: 909-295-3142 Two corporate officer signatures required when Consultant is a corporation,with one signature required from each of the following groups: 1)Chairman ofthe 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. 01247.0006/656770.2 7/9/2020 19 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 anymoney,consideration, or other thing of value to any third party including, but C.8.a Packet Pg. 165 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r ACKNOWLEDGEMENT State of Colorado ss. County of Boulder On Ru5us- 3 120 2 o before me, Te-,c, ,S. Neale,$ Notary Public, personally appeared 1.e.r r.1 J. . .ocre.-q u e who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Colorado that the foregoing paragraph is true and correct. Tricia J.Hayes NOTARY PUBLIC STATE OF COLORADO y WITNESS my hand and official seal. NOTARY ID 20034019453 My commission expires: ( //9/2023 MYCOMMISSION EXPIRES June 19,2023 Signature of Notary Pu 'c giC/lr . 4,eo ATE 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.01247. 0006/656770.2 7/9/2020 19 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 anyagreement. Consultant further warrants and represents that ( s)he/it has not engaged C.8.a Packet Pg. 166 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r ACKNOWLEDGEMENT State of Colorado ss County of Boulder On sk 3 22.0o before me, trititt J. ales Notary Public, personally appeared ..1)e%.,ca. —17n or S o\ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Colorado that the foregoing paragraph is true and correct. Tricia J.Hayes NOTARY PUBLIC WITNESS my hand and official seal. STATE OF COLORADO My commission expires: . //9/2O23 NOTARY 12S03a0194J3MYCOMMISSIONEXPIRESJune 19,2023 Signature of Notary Publ 1iejG L J-Signature of Notary Pu 'c giC/lr . 4,eo ATE 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.01247. 0006/656770.2 7/9/2020 19 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 anyagreement. Consultant further warrants and represents that ( s)he/it has not engaged C.8.a Packet Pg. 167 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r EXHIBIT "A" SCOPE OF SERVICES On an on-call basis, Consultant will perform Professional Engineering services generally described in this Scope of Services. This Agreement retains the Consultant's on-call availability, but does not guarantee that the Consultant shall be selected to provide services on a project-specific Task Order. II. When the City requests proposals from on-call engineers (including the Consultant) on a project-specific Task Order, and if the City accepts Consultant's proposal, then the Task Order and Notice to Proceed shall provide in detail Consultant's Scope of Services on that Task Order.This Agreement does not guarantee that Consultant will be selected to perform services on Task Orders. This Agreement does not provide for Consultant's compensation except for Consultant's services rendered pursuant to a Notice to Proceed on a Task Order. III. Consultant's on-call Professional Engineering Services may include,but are not limited to, the following: A. Project studies B. Research C. Grant Opportunities for Public Works projects D. Land Survey E. Coordinate and/or obtain approvals from various private and public agencies F. Public meetings, workshops, and presentations G. Project-related reports H. Develop conceptual/preliminary plans and designs I.Develop construction plans and specifications J.Project estimates K. Project schedule L. Bid analysis M. Environmental documents and permit compliance N. Utility research and coordination O. Construction support(such as review of quantities and field inspections) 01247.0006/656770.2 7/9/2020 A-1 o, any City official, officer, or employee, as a C.8.a Packet Pg. 168 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r P. Construction management Q. Services associated with project development R. Provide development processing services,including,but not limited to,plan and map checking, on-site oversight, and inspections for new development activity as directed. S. Provide City Traffic Engineering related services such as traffic safety investigations, speed zone surveys, route planning, corridor analysis, capacity evaluations, bicycle and pedestrian facilities analysis, traffic impact reports, traffic signal and control systems, parking facilities, street signage and marking programs, and street lighting; IV. Consultant's on-call Professional Engineering Services may include temporary augmentation of staff functions including,but not limited to, the following: A. Perform at the Project Engineer and/or Project Manager(both of which are referred to herein as "PM") level to assist the Public Works department with various projects. B. The PM shall be a registered professional Civil Engineer licensed to practice in the State of California, with a minimum of 10 years of experience in design and construction management and project management of a variety of Public Works projects. The PM shall have clear oral and written communication skills. C. The PM's services may be required during all or part of a project, from planning stages to project conclusion. D. The PM shall efficiently conduct effective workshops with community groups and have an explicit understanding of the California Public Contract Code. E. The PM will be housed in City Hall performing requisite management and administrative services on projects, and coordinate with City staff. F. Develop matrices of the active and proposed projects with schedules, budgets, and priorities. G. Perform thorough research of information relevant to each project (i.e. record drawings, field investigation, site conditions, restrictions, and CEQA status). H. Discuss and coordinate future projects with various agencies (e.g. utility companies, pipeline companies, San Bernardino County, San Bernardino Sheriffs, and Caltrans). I.Prepare and compose Requests for Proposals(RFP).Review and evaluate proposals and provide recommendations to City Engineer,Director of Public Works,and City Council. 01247.0006/656770.2 7/9/2020 A-2 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]01247.0006/656770.2 7/9/2020 18-7.9 Attorney' s 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 01247.0006/656770.2 7/9/2020 15-reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656770.2 7/9/2020 12- C.8.a Packet Pg. 169 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r J.Prepare and conduct presentations to City staff, City Council, Commissions, and the public. K. Draft construction plans using Autocad® software or such other software that the City may require. L. Compose project specifications and estimates. M. Prepare and coordinate projects for the bidding process. N. Coordinate, conduct, and attend various meetings (e.g. staff meetings, construction meetings, progress meetings, utility coordination meetings, Council meetings, and workshops). O. Meet with various City departments and solicit input for project design, schedule, and budgets. P. Manage project budgets and closely work with City's Finance Department staff Q. Review, evaluate, approve, and process payments to consultants, contractors, and various agencies. R. Review, evaluate, negotiate, and approve proposed changes by consultants and contractors. S. Perform field work such as inspections and job walks. T. Efficiently and effectively develop and manage multiple Public Works Capital Improvement Projects from planning stage through the conclusion of the project. V. Consultant must perform all on-call Services in compliance with the following requirements: A. Each task shall be indicated by a written request (Task Order) produced by the Contract Officer with a description of the work to be performed, and the time desired for completion. All tasks shall be carried out in conformity with all provisions of this Agreement. B. Consultant must prepare a written description of the requested tasks including all components and subtasks; the costs to perform the task ("Task Budget"),using the itemized fees in Exhibit C, Schedule of Compensation, whenever a requested task is provided for in Exhibit C; explain how the cost was determined; and, a schedule for completion of the task ("Task Completion Date"); which shall all collectively be referred to as the "Task Proposal". C. Contract Officer shall in writing approve, modify, or reject the Task Proposal, and may issue a Notice to Proceed. 01247.0006/656770.2 7/9/2020 A-3 Sheriffs,and Caltrans). I.Prepare and compose Requests for Proposals(RFP).Review and evaluate proposals and provide recommendations to City Engineer,Director of Public Works, and City Council.01247.0006/656770.2 7/ 9/2020 A-2 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]01247.0006/656770.2 7/9/2020 18-7.9 Attorney's 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 01247. 0006/656770.2 7/9/2020 15-reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247.0006/656770.2 7/9/2020 12- C.8.a Packet Pg. 170 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r D. The task shall be performed at a cost not to exceeding the Task Budget. E. Consultant shall complete the task and deliver all deliverables to Contract Officer by the Task Completion Date. VI. In addition to the requirements of Section 6.2 and pursuant to the Task Order's project- specific Scope of Services, the Contract Officer may require the Consultant to provide the following deliverables, as applicable: A. Project studies B. Research results C. Grant information and application D. Survey maps E. Photos F. Conceptual plans G. 50% Construction Plan Submittal H. Construction plan submittal with specifications and estimates at 75%, 90%, and 100% levels I.Permits J.Inspection Reports and field reports K. All other related items the City deems necessary for the project VII. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City. VIII. Consultant will utilize qualified personnel with the following titles to perform the Services required by the applicable Task Order. Consultant shall obtain the Contract Officer's advanced written approval when replacing any individual assigned to perform services on Task Orders: A. James R. Ross, Public Works Group Leader B. Manuel Gomez, Project Manager C. Kamran Saber, PE, QSD, Civil Engineer/CIP Project Management D. Kevin Ko, PE, QSD, Civil Engineer/Design Project Management 01247.0006/656770.2 7/9/2020 A-4etask ("Task Budget"), using the itemized fees in Exhibit C, Schedule of C.8.a Packet Pg. 171 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r E. Joe Indrawan, PE, Civil Engineer/Plan Review F. Jack Istik, PE, Civil Engineer/Plan Review G. Gary Neal, PLS, Land Surveyor/Map Check H. Nicole Jules, PE, Traffic Engineer/Transportation Planning I.Andrew Yi, PE, TE, PTOE, Traffic Engineer/Transportation Planning J.Rush Smith, TE, PTP, Traffic Engineer/Transportation Planning K. Roger Peterson, SE, Structural Engineer/Plan Review L. Oliver Roan, SE, Structural Engineer/Plan Review M. Charles Collet, Construction Manager/Inspector N. John Chesworth, Construction Manager/Inspector O. Jesse Isaac, Construction Manager/Inspector 01247.0006/656770.2 7/9/2020 A-5 MM. Christopher Kelley, PE, QSD/P, Municipal Stormwater Permit Compliance Services 01247.0006/ 656677.2 7/9/2020 A-6 C.8.a Packet Pg. 172 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r EXHIBIT "B" SPECIAL REQUIREMENTS Superseding Contract Boilerplate) 01247.0006/656770.2 7/9/2020 B-1 PLS, Land Surveyor/Map Check H. Nicole Jules, PE, Traffic Engineer/Transportation Planning I.Andrew Yi, PE, TE, PTOE, Traffic Engineer/Transportation Planning J.Rush Smith, TE, PTP, Traffic Engineer/Transportation Planning K. Roger Peterson, SE, Structural Engineer/Plan Review L. Oliver Roan, SE, Structural Engineer/Plan Review M. Charles Collet, Construction Manager/Inspector N. John Chesworth, Construction Manager/Inspector O. Jesse Isaac, Construction Manager/Inspector 01247.0006/656770. 2 7/9/2020 A-5 MM. Christopher Kelley, PE, QSD/P, Municipal Stormwater Permit Compliance Services 01247.0006/656677. 2 7/ 9/2020 A-6 C.8.a Packet Pg. 173 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r EXHIBIT "C" SCHEDULE OF COMPENSATION This Schedule of Compensation governs Consultant's compensation in the event the Consultant performs services pursuant to a Notice to Proceed on a Task Order. This Agreement does not guarantee that Consultant will be selected to perform services on Task Orders. II. Consultant responding to the City's request for proposals on a project-specific Task Order shall establish a Task Budget for the Task Order,identifying the subtasks based on the time and rates of the personnel performing the subtasks, and itemizing all materials and equipment utilized and the costs thereof. Ifpayment is to be made other than at completion of the services, then the phases of the performance and percentage of payment due shall also be shown in the Task Proposal. Consultant's proposals on Task Orders shall be based on hourly rates identical to the rates attached as Exhibit C-1. III. The City shall retain ten percent (10%) from each payment as a contract retention to be paid as part of final payment upon satisfactory completion of services on a Task Order. IV. 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. V. The total compensation for the Services shall not exceed $50,000 for the term of this Agreement, as provided in Section 2.1 of this Agreement. VI. Consultant's billing rates for Services are attached as Exhibit C-1.To the extent any portion of Consultant's work is subject to prevailing wage requirements, then Consultant's proposal on a Task Order shall include a Task Budget with hourly rates adjusted for prevailing wage. 01247.0006/656770.2 7/9/2020 C-1 rans).I. Prepare and compose Requests for Proposals(RFP).Review and evaluate proposals and provide recommendations to City Engineer,Director of Public Works,and City Council.01247.0006/656770.2 7/9/2020 A-2 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]01247.0006/656770.2 7/9/2020 18-7.9 Attorney's 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 01247.0006/656770. 2 7/9/2020 15-reuse or assignment. Consultant may retain copies of such documents for its own use. Consultant 01247. 0006/ 656770.2 7/9/ 2020 12- C.8.a Packet Pg. 174 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r EXHIBIT "C-1" CONSULTANT'S RATES Classification Hourly Billing Rate Engineering Principal In Charge 160 Project Manager 160 Traffic Engineer 160 Director of Public Works 150 Lead Engineer 150 Supervising Engineer 150 Senior Engineer 140 Engineering Associate III 125 Engineering Associate II 115 Engineering Associate I 105 Senior Engineering Technician 105 Engineering Technician III 95 Engineering Technician II 85 Engineering Technician I 75 Student Trainee 30 Grading Plans Examiner 140 Construction Management Construction Manager 145 Assistant Construction Manager 130 Supervising Public Works Observer 135 Senior Public Works Observer 125 Public Works Observer III 120 Public Works Observer II 115 Public Works Observer I 105 Overtime 140% of the above listed rates 01247.0006/656770.2 7/9/2020 C-2 payment upon satisfactory completion of services on a Task Order.IV. 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.V. The total compensation for the Services shall not exceed $50, 000 for the term of this Agreement, as provided in Section 2.1 of this Agreement.VI. Consultant'sbillingratesforServices are attached as Exhibit C-1.To the extent C.8.a Packet Pg. 175 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r EXHIBIT "D" SCHEDULE OF PERFORMANCE I.From the term of this Agreement, Consultant shall provide Services on an on-call basis as set forth in Exhibit A. II. If the City selects the Consultant's proposal to perform a project-specific Task Order, the Task Order's Scope of Work/Services or the Notice to Proceed, or both, shall provide the detailed schedule of performance. III. The Contract Officer may approve extensions for performance of the Services in accordance with Section 3.2. 01247.0006/656770.2 7/9/2020 D-1 John Chesworth, Construction Manager/Inspector O. Jesse Isaac, Construction Manager/Inspector 01247. 0006/656770.2 7/9/2020 A- 5 MM. Christopher Kelley, PE, QSD/P, Municipal Stormwater Permit Compliance Services 01247.0006/656677.2 7/9/2020 A-6 C.8.a Packet Pg. 176 At t a c h m e n t : A t t a c h m e n t 1 - I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r AMENDMENT NO. I TO AN AGREEMENT FOR CONTRACT:SERVICES BY AND BETWEEN THE .CITY OF GRAND TERRACE AND INTERWEST : CONSULTING-GROUP,INC.FOR ON-CALL ENGINEERING SERVICES This AMENDMENT NO.1 TO AN AGREEMENT`FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE. AND. INTERWEST CONSULTING GROUP;. INC. FOR .ON-CALL . :ENGINEERING SERVICES Amendment No.. 1") by and between the CITY OF .GRAND TERRACE C'City") and INTERWEST CONSULTING GROUP, INC. ("Consultant") is effective as of the 10"' day of August 2021. RECITALS A. The City entered. into,that- certain Agreement for Contract Services By And Between the City Of Grand Terrace And Interwest Consulting Group for On-Call Engineering Services, dated July 14,2020 C'Agreement"). B. Total compensation:to the ConsultaiT f_or: on-call engineering services rendered pursuant to the Agreement;is.$50,000. C. The term of the Agreement is two years from.the date thereof with the City being able to extend the Agreement by one year. D. Pursuant to'the Agreement, the Consultant provided on-call engineering services to the City to develop construction,plans and specifications for the recently;completed citywide road-rehabilitation project, concrete repairs,:as -well as traffic.engineering assistance ;and traffic impact analysis and Water Quality Management Plan review for proposed developments. E. As a consequence of the above-mentioned on-call engineering services, the Agreement only has$3;217 remaining. F. It:is"anticipated that Consultant's on-call engineering services will continue to be needed for projects within the City, which may- include; but is not limited to, the.following: preparation for the next phase of the pavement management program for the 2021-2022 fiscal year, HSIP Cycle $,project closeout(Mt.Vernon corridor intersection improvement project) and HSIP Cycle 9 Guardrail installation: G. In order to ensure that adequate funds are available, the total compensation to Consultant under the Agreement must be increased by$50,000. H. The parties now therefore desire to increase. Consultant's total compensation under the Agreement by$50,000 for a total of$100,0.0.0. TERMS 1. Amendments to Agreement.The Agreement is amende&as provided as follows: 01247.00061730693.1 C.8.b Packet Pg. 177 At t a c h m e n t : A t t a c h m e n t 2 - A m e n d m e n t N o . 1 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s 1.1 Section 2.1 (Contract Sum) of the Agreement is hereby_ :modified as follows(strilc x gh represents deleted language while bold italics:represents added language): Subject to.limitations set-forth in this Agreement,.City agrees to pay Consultant 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 One Hundred'Thousand Dollars 100,600) (the "Contract Sum"), unless additional compensation is approved:pursuant to Section 1.8." 1.2 Section V of Exhibit "C" is hereby modified as: follows (stril etle represents deleted language whilebold italics represents added language): The.total compensation for the Services,shall not exceed.$50,900 100,000 for the term of this Agreement; as provided in,Section 2.1 of this.Agreement." 2. -Continuing Effect'of Agreement. Except as amended by this Amendment No. 1, all provisions of the Agreement, as amended by Amendment No._1,shall remain unchanged sandinfullforceandeffect: From and after the date of this Amendment, whenever• the team Agreement" :appears in the Agreement, it shall mean the Agreement, as amended .by Amendment No. 1. 3. Affirmation of Agreement; Warranty Re. Absence of Defaults. .City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations ari"sing under the Agreement:.Each party represennts and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other; that the Agreement is currently an effective, valid, and binding obligation. Consultant represents and.warrants to City that, as of the date of this Amendment No. 1, City is not in default of any material term of the Agreement and that there have been no events that-,with the passing of time or the giving of notice,or both,:would'constitute a material default under the Agreement. City represents and warrants to Consultant that, as of the date of this Amendment No. 1, Consultant is not in default of any material term of the Agreement and,that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate: and independent consideration for-the performance of the obligations they have undertaken pursuant to.this Aniendmeiit.No. 1. 5. Authority. The persons executing this.Amendment No. 1 on behalf of the.parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to 01247.0006/730693.1: C.8.b Packet Pg. 178 At t a c h m e n t : A t t a c h m e n t 2 - A m e n d m e n t N o . 1 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s execute. and deliver this Amendment No. 1 on, behalf of said parry, (iii) by so executing this Amendment No. 1, such.-party is formally bound to.the provisions of the Agreement; as amended and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to.which said party is bound. SIGNATURES ON FOLLOWING PAGE] 01247.0006/730693.1 C.8.b Packet Pg. 179 At t a c h m e n t : A t t a c h m e n t 2 - A m e n d m e n t N o . 1 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s IN WITNESS WHEREOF: the parties hereto have executed this Amendment No. 1 on the date and year first-above written. CITY: CITY OF GRAND TERRACE, a municipal corpo ati.o.n yoi,4?F_/vt iL4 14u.55j Y TTEST: ebra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE& Adrian R: Guerra, City Attorney CONSULTANT: - - Interwest Consulting Group,Inc. By: - Name:Thomas Brackett Title: EO By: Na e: Avner Alkhas Title:CFO Address: 1500 S. Haven.Avenue, Suite 220 Ontario, CA 92761 Tel: 909-295-3142 NOTE: 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 DEVELOPER'S BUSINESS ENTITY. 01247.000030693.1 C.8.b Packet Pg. 180 At t a c h m e n t : A t t a c h m e n t 2 - A m e n d m e n t N o . 1 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s i l, I i f'4 i l ii C.8.b Packet Pg. 181 At t a c h m e n t : A t t a c h m e n t 2 - A m e n d m e n t N o . 1 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies,only the identity ofthe individual Who signed. the document to:which this certificate is attached;and not the truthfulness,accuracy or validity of that document; STATE OF C- A e-O COUNTY OF O A On 2021 before me, A eVJ e,11;-personally appeared,f)vr,.c_. .. proved Iro me on the basis of satisfactory evidence'to be the person(s) whose names(s)' s%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/theii signature(s) on:the instrument theperson(s), or the entity upon behalf o0which the person(s) acted,executed the instrument. I certify under PENALTY OF, PERJURY under the laws of.the State of a that the foregoing paragraph is true and correct. MICHELLE ANDAIKEN ,WITNESS ' hand and official seal. NOTARY PUBLIC STANOTARYID202Signature: ,f .) MY COMMISSION EXPI 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 TITLES) TITLE OR TYPE OF DOCUMENT PARTNER(_S)F LIMITED GENERAL ATTORNEY-IN-FACT NUMBER OF PAGES- TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER DATE OF DOCUMENT SIGNER IS REPRESENTING: _ _ NAME OF PERSON(S) OR ENTITY(IES)) SIGNERS) OTHER THAN NAMED ABOVE 01247.0006/730693.1 C.8.b Packet Pg. 182 At t a c h m e n t : A t t a c h m e n t 2 - A m e n d m e n t N o . 1 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT A notary public or other officer completingthis 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 ofthat document. STATE OF C4449MQA Ge COUNTY OF S O 2021 before me, Mi rl-jale 2±L,qqnrsonallY ppraeaed')o provedtd me `on the basis of satisfactory evidence to be the persons) ;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 signatures) 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 a that the foregoing paragraph is true and correct. WITNESS my hand and official seal. FHELLE ANNE AIKEN . LIC-STATE OF COLORADO RY ID 20214002066 ION EXPIRES JAN 15, 2025 Signature: OPTIONAL Though the data below is,not required by raw, it may prove valuable to persons:relyirig on the document and.could prevent fraudulent reattachment.of this form. CAPACITY CLAIMED BY SIGNER. DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER TITLE(S) TITLE OR TYPE.OF DOCUMENT PARTNER(S). LIMITED M.GENERAL ATTORNEY-IN-FACT NUMBER OF PAGES " TRUSTEE(S) GUARDIAN/CON_ SERVATOR OTHER DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES)} SIGNER(S) OTHER THAN NAMED ABOVE 01247.0006/730693.t C.8.b Packet Pg. 183 At t a c h m e n t : A t t a c h m e n t 2 - A m e n d m e n t N o . 1 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s 01247.0006/763794.1 AMENDMENT NO. 2 TO AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF GRAND TERRACE AND INTERWEST CONSULTING GROUP, INC. FOR ON-CALL ENGINEERING SERVICES This AMENDMENT NO. 2 TO THE AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND INTERWEST CONSULTING GROUP, INC. FOR ON-CALL ENGINEERING SERVICES (“Amendment No. 2”) by and between the CITY OF GRAND TERRACE (“City”) and INTERWEST CONSULTING GROUP, INC., a Colorado corporation (“Consultant”) is effective as of the ______ day of February, 2022. RECITALS A. The City and Consultant entered into that certain Agreement for Contract Services By and Between the City of Grand Terrace and Interwest Consulting Group, Inc. for On-Call Engineering Services, dated July 14, 2020 with a 2 year term which may be extended by 1 year (“Original Agreement”). B. The City and Consultant amended the Original Agreement by an Amendment No. 1, dated August 10, 2021, in order to increase the total compensation of the Agreement by $50,000 for a total compensation of $100,000 (“Amendment No. 1”). C. The Original Agreement, as amended by Amendment No. 1, shall hereafter be referred to as the “Agreement” for the purposes of this Amendment No. 2. D. By this Amendment No. 2, the City and Consultant desire to extend the term of the Agreement from July 14, 2022, to July 14, 2023. TERMS 1. Contract Amendments. The Agreement is amended as provided herein: 1.1 Pursuant to Section 3.4 (Term), the term of the Agreement is hereby extended such that it shall expire on July 14, 2023. 2. Continuing Effect of Agreement. Except as amended by this Amendment No. 2, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 2. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. C.8.c Packet Pg. 184 At t a c h m e n t : A t t a c h m e n t 3 - A m e n d m e n t N o . 2 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s 01247.0006/763794.1 Consultant represents and warrants to City that, as of the date of this Amendment No. 2, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Consultant that, as of the date of this Amendment No. 2, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2. 5. Authority. The persons executing this Amendment No. 2 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 Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 2, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment No. 2 does not violate any provision of any other agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] C.8.c Packet Pg. 185 At t a c h m e n t : A t t a c h m e n t 3 - A m e n d m e n t N o . 2 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s 01247.0006/763794.1 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 on the date and year first-above written. CITY: CITY OF GRAND TERRACE, a municipal corporation ___________________________ Darcy McNaboe, Mayor ATTEST: ___________________________ Debra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _______________________ Adrian R. Guerra, City Attorney CONSULTANT: INTERWEST CONSULTING GROUP, INC., a Colorado corporation By: Name: Title: By: Name: Title: Address: 1500 S. Haven Avenue, Suite 220 Ontario, CA 91761 NOTE: 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 DEVELOPER’S BUSINESS ENTITY. C.8.c Packet Pg. 186 At t a c h m e n t : A t t a c h m e n t 3 - A m e n d m e n t N o . 2 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s 01247.0006/763794.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2022 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_________________________ ________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) ______________________________________ ______________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. C.8.c Packet Pg. 187 At t a c h m e n t : A t t a c h m e n t 3 - A m e n d m e n t N o . 2 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s 01247.0006/763794.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2022 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_________________________ ________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) ______________________________________ ______________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. C.8.c Packet Pg. 188 At t a c h m e n t : A t t a c h m e n t 3 - A m e n d m e n t N o . 2 t o I n t e r w e s t A g r e e m e n t ( O n - C a l l E n g i n e e r i n g S e r v i c e s ) ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s 01247.0006/826558.2 AMENDMENT NO. 3 TO AGREEMENT FOR CONTRACT SERVICES BETWEEN THE CITY OF GRAND TERRACE AND INTERWEST CONSULTING GROUP, INC. FOR ON-CALL ENGINEERING SERVICES This AMENDMENT NO. 3 TO THE AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND INTERWEST CONSULTING GROUP, INC. FOR ON-CALL ENGINEERING SERVICES (“Amendment No. 3”) by and between the CITY OF GRAND TERRACE (“City”) and INTERWEST CONSULTING GROUP, INC., a Colorado corporation (“Consultant”) is effective as of the 25th day of October, 2022. RECITALS A. The City and Consultant entered into that certain Agreement for Contract Services By and Between the City of Grand Terrace and Interwest Consulting Group, Inc. for On-Call Engineering Services, dated July 14, 2020 with a 2 year term which may be extended by 1 year (“Original Agreement”). B. The City and Consultant amended the Original Agreement by an Amendment No. 1, dated August 10, 2021, in order to increase the total compensation of the Agreement by $50,000 for a total compensation of $100,000 (“Amendment No. 1”). C. By Amendment No. 2, the City and Consultant extended the term of the Agreement from July 14, 2022, to July 14, 2023 (“Amendment No. 2”). D. The Original Agreement, as amended by Amendment Nos. 1 and 2, shall hereafter be referred to as the “Agreement” for the purposes of this Amendment No. 3. E. By this Amendment No. 3, the City and Consultant now desire to increase the total compensation from $100,000 to $125,000. TERMS 1. Recitals. The recitals set forth above are incorporated herein by this reference. 2. Contract Amendments. The Agreement is amended as provided herein: 2.1 Section 2.1 (Contract Sum) of the Agreement is hereby modified in its entirety as follows: “Subject to limitations set forth in this Agreement, City agrees to pay Consultant 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 One Hundred Twenty Five Thousand Dollars ($125,000) (the "Contract Sum"), unless additional compensation is approved pursuant to Section 1.8.” C.8.d Packet Pg. 189 At t a c h m e n t : A t t a c h m e n t 4 - P r o p o s e d A g r e e m e n t N o . 3 I n t e r w e s t A m e n d m e n t ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r I n t e r w e s t ) 01247.0006/826558.2 2.2 Section V of Exhibit "C" is hereby modified in its entirety as follows : “The total compensation for the Services shall not exceed $125,000 for the term of this Agreement, as provided in Section 2.1 of this Agreement.” 3. Continuing Effect of Agreement. Except as amended by this Amendment No. 3, all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 3. 4. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Consultant represents and warrants to City that, as of the date of this Amendment No. 3, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Consultant that, as of the date of this Amendment No. 3, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 5. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 3. 6. Authority. The persons executing this Amendment No. 3 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 Amendment No. 3 on behalf of said party, (iii) by so executing this Amendment No. 3, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment No. 3 does not violate any provision of any other agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] C.8.d Packet Pg. 190 At t a c h m e n t : A t t a c h m e n t 4 - P r o p o s e d A g r e e m e n t N o . 3 I n t e r w e s t A m e n d m e n t ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r I n t e r w e s t ) 01247.0006/826558.2 IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 3 on the date and year first-above written. CITY: CITY OF GRAND TERRACE, a municipal corporation ___________________________ Darcy McNaboe, Mayor ATTEST: ___________________________ Debra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _______________________ Adrian R. Guerra, City Attorney CONSULTANT: INTERWEST CONSULTING GROUP, INC., a Colorado corporation By: Name: Title: By: Name: Title: Address: 1500 S. Haven Avenue, Suite 220 Ontario, CA 91761 NOTE: 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 DEVELOPER’S BUSINESS ENTITY. C.8.d Packet Pg. 191 At t a c h m e n t : A t t a c h m e n t 4 - P r o p o s e d A g r e e m e n t N o . 3 I n t e r w e s t A m e n d m e n t ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r I n t e r w e s t ) 01247.0006/826558.2 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. C.8.d Packet Pg. 192 At t a c h m e n t : A t t a c h m e n t 4 - P r o p o s e d A g r e e m e n t N o . 3 I n t e r w e s t A m e n d m e n t ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r I n t e r w e s t ) 01247.0006/826558.2 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. C.8.d Packet Pg. 193 At t a c h m e n t : A t t a c h m e n t 4 - P r o p o s e d A g r e e m e n t N o . 3 I n t e r w e s t A m e n d m e n t ( A m e n d O n - C a l l E n g i n e e r i n g S e r v i c e s A g r e e m e n t f o r I n t e r w e s t ) AGENDA REPORT MEETING DATE: October 25, 2022 Council Item TITLE: Art in Public Places Ordinance PRESENTED BY: Haide Aguirre, Senior Planner RECOMMENDATION: 1) Conduct a public hearing, and 2) Direct the City Attorney to Read the title of the Ordinance, waive further reading, and introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, FINDING ZONING CODE AMENDMENT 22-04 EXEMPT FROM CEQA PURSUANT TO SECTION 15061(B)(3) AND AMENDING TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY AMENDING CHAPTER 18.06 (DEFINITIONS), AND ADDING CHAPTER 18.81 ESTABLISHING ART IN PUBLIC PLACES REQUIREMENTS 2030 VISION STATEMENT: This item promotes Our Mission Statement: To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government. Goal No. 3: To promote economic development by updating zoning and development codes in preparation of future development and attract and retain businesses. BACKGROUND: The City of Grand Terrace desires to implement an Art in Public Places Program. Art located in public places has the power to add beauty, character, and a sense of history to the city. It also provides a diverse and culturally rich environment, enhances the quality of live, educates the public, and becomes an economic asset by attracting business and visitors. Grand Terrace has multiple opportunities for development and staff is currently working on future potential projects that will bring more housing, business, and job opportunities. Existing developments along our main corridor (“Barton Road”) have not been required to include an artistic component as part of the project’s design. In order to ensure that public art is present throughout the City, it is necessary to require all new development in the City of Grand Terrace to include an element of public art; or where appropriate, contribute to a City fund for public art, in an amount to be determined by the City Council, in lieu of providing said art. E.9 Packet Pg. 194 Incorporating an art component requirement to all future developments would revitalize the City’s image, enhance the visual character of the community, improve the quality of life, and promote healthy living by drawing residents, visitors, and workers to the outdoor space. On June 16, 2022, the Planning Commission Site and Architectural Review Board conducted a duly noticed public hearing and adopted a Resolution voting unanimously 3-0 recommending City Council approval of an Ordinance establishing Art in Public Places Requirements. DISCUSSION: The proposed amendment to the zoning code establishes the following: • Expands opportunities for citizens of the City of Grand Terrace to experience public art resulting from the creative expression of visual artists throughout the City. (Artist in this amendment is defined as a practitioner in the Arts, generally recognized by critics and peers as one who produces works of art through a record of exhibitions, public commissions, sales of work or educational attainment). • The cost of public art for all new development except single family residential must be equal to at least one percent (1%) of the estimated total construction cost (labor and materials only) to the developer, for all new development projects. The developer has the option to opt out of the public art requirement and instead pay the equivalent in lieu fee which shall be a one percent (1%) fee of the total estimated construction cost. • The cost of public art for single family residential must be equal to at least one half percent (½%) of the estimated total construction cost (labor and materials only) to the developer, for all new development projects. The developer has the option to opt out of the public art requirement and instead pay the equivalent in lieu fee which shall be a one half percent (½%) fee of the total estimated construction cost. • City Manager is directed to create a special interest-bearing fund entitled Public Art Fund, or other appropriate accounting mechanism. Creates a Public Art Fund as a separate fund to receive monies from any source by the Public Art Fund. • Funds shall be expended solely for the costs associated with projects that result in the creation, purchase, installation, security, or maintenance of art in public places. • Public art on private property will be owned by the underlying property owner and pass to the successive owners of the development project. Public art installed on public property is owned by the City of Grand Terrace. • The proposal for public art in a construction project shall be considered as an element of the site and architectural design review. Approval of all public art shall E.9 Packet Pg. 195 require a review of the City of Grand Terrace Planning Commission. • Removal of public art must go through a site review process unless the replacement will be identical to the existing artwork and in the same location. Cost of replacement shall be equal to, or greater than, the initial cost of the existing public art to be removed adjusted for time. Additionally, this ordinance would not apply to certain housing development projects to the extent that SB 330 prohibits the application thereof. ENVIRONMENTAL: The proposed zoning code amendment is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines, Section 15061(b)(3), which states the activity is covered by the general rule that CEQA applies only to projects [that] have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Amending the Grand Terrace Code to include a public art component would not result in any significant environmental impacts due to the narrow scope of the project. Future development projects subject to the proposed ordinance would be reviewed for potential environmental impacts, including any impacts related to the design and placement of public art components. PUBLIC NOTICE: Public notice was provided in accordance with state law, which included publishing a legal advertisement in the Grand Terrace City News and posting in three public places. As of the date of this report, staff has not received any comments. FISCAL IMPACT: There will be no expenditure on the part of the city to adopt this ordinance. CONCLUSION: Staff is recommending the City Council read by title only, waive further reading and Introduce an Ordinance Finding Zoning Code Amendment 22-04 exempt from CEQA pursuant to Section 15061(b)(3) and Amending Title 18 of the Municipal Code Chapter 18.06 (Definitions) and adding Chapter 18.81 establishing art in Public Places Requirements. ATTACHMENTS: • Ordinance_10.14.2022 (DOC) • Art in Public Places_Exhibit A_6.8.2022 Final Draft (DOCX) E.9 Packet Pg. 196 APPROVALS: Haide Aguirre Completed 10/14/2022 9:40 AM City Attorney Completed 10/17/2022 2:56 PM Debra Thomas Completed 10/18/2022 10:22 AM City Manager Completed 10/14/2022 10:05 AM City Council Pending 10/25/2022 6:00 PM E.9 Packet Pg. 197 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, FINDING ZONING CODE AMENDMENT 22-04 EXEMPT FROM CEQA PURSUANT TO SECTION 15061(B)(3) AND AMENDING TITLE 18 OF THE GRAND TERRACE MUNICIPAL CODE BY AMENDING CHAPTER 18.06 (DEFINITIONS), AND ADDING CHAPTER 18.81 ESTABLISHING ART IN PUBLIC PLACES REQUIREMENTS WHEREAS, the City of Grand Terrace (“City”) adopted a zoning code, which has been amended from time to time; and WHEREAS, pursuant to Sections 65800 and 65850 of the California Government Code, the City may adopt ordinances to regulate the use of buildings in compliance with the California Government Code; and WHEREAS, the proposed Zone Code Amendment 22-04 to the Municipal Code is consistent with the goals and policies of the City of Grand Terrace General Plan; and WHEREAS, this Ordinances proposes to amend the Municipal Code, Title 18 (Zoning), Chapter 18.06 (Definitions) to include “Art in Public Places” related definitions and add a Chapter 18.81 establishing Art in Public Places requirements; and WHEREAS, the City Council has determined that public art is a critical element of providing a diverse and culturally rich environment to residents and visitors to Grand Terrace that promotes the general public welfare; and WHEREAS, a well-conceived work of art can increase the value of a development project, help to lease space more quickly, enhance the corporate image of the community, promote cultural tourism, and provide a visible and lasting contribution to the community in return for the ability to build; and WHEREAS, in order to ensure that public art is present throughout the community it is necessary to require that all new development in the City of Grand Terrace include an element of public art; or where appropriate, contribute to a City fund for public art, in an amount to be determined by the City Council, in lieu of providing said art; and WHEREAS, the City Council takes legislative notice of court cases holding that regulations imposing aesthetic requirements through zoning enactments are valid exercises of the police power and do not constitute impermissible takings merely because they may restrict uses or impose costs in conjunction with the development of property (see e.g., Ehrlich v. City of Culver City, 12 Cal. 4th 854, 885-886 (1996); and E.9.a Packet Pg. 198 At t a c h m e n t : O r d i n a n c e _ 1 0 . 1 4 . 2 0 2 2 [ R e v i s i o n 1 ] ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 2 WHEREAS, the requirement that applicants for development projects provide either public art or an in lieu equivalent is a legitimate and valid land use regulation that has been compared by the California courts as akin to traditional land use regulations imposing minimal setbacks, parking and lighting conditions, landscaping requirements and other design conditions; and WHEREAS, the City Council hereby finds that the public art contribution, as provided by this Ordinance, is thus neither a “development fee” subject to the requirements of the California Mitigation Fee Act, California Government Code 66000 et seq, nor a development exaction subject to the heightened scrutiny of relevant rules set forth in Nollan v. California Coastal Commission, 483 U.S. 825 (1987) and Dolan v. City of Tigard, 512 U.S. 374 (1994), but rather, that the public art contribution is a zoning requirement that furthers aesthetic objectives under the authority of the City’s general police power; and WHEREAS, pursuant to Chapter 18.90 (Amendments) of the City of Grand Terrace Municipal Code, the City Council shall hold a public hearing on any proposed amendment to the Zoning Code; and WHEREAS, Zoning Code Amendment 22-04 is exempt from California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) which states the activity is covered by the general rule that CEQA applies only to projects [that] have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Amending the Grand Terrace Code to include a public art component would not result in any significant environmental impacts due to the narrow scope of the project; and WHEREAS, on June 16, 2022, the Grand Terrace Planning Commission conducted duly noticed public hearings at a regular meeting of the Planning Commission on Zoning Code Amendment 22-04 at the Grand Terrace City Hall Council Chambers located at 22795 Barton Road and concluded the hearing by adopting a Resolution recommending that the City Council determine that this Ordinance is exempt from CEQA pursuant to Section 15061(b)(3) and approve this Ordinance establishing Art in Public Places requirement; and WHEREAS, on October 25, 2022, the City Council conducted a duly noticed public hearing on the ordinance at the Grand Terrace Council Chambers located at 22795 Barton Road, Grand Terrace, California 92313 and conducted second reading on______, 2022; and WHEREAS, all legal prerequisites to the adoption of this Ordinance have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES ORDAIN AS FOLLOWS: SECTION 1. The City Council hereby specifically finds that all the facts set forth in the above Recitals, are true and correct and, further, incorporated such facts herein. E.9.a Packet Pg. 199 At t a c h m e n t : O r d i n a n c e _ 1 0 . 1 4 . 2 0 2 2 [ R e v i s i o n 1 ] ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 3 SECTION 2. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the public hearing, the City Council hereby finds that the Project is not subject to environmental review pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations because the revisions are regulatory in nature and will not in themselves create impacts to the environment. SECTION 3. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the public hearing, the City Council specifically finds as follows: 1. Zoning Code Amendment 22-04 will not be detrimental to the health, safety, morals, comfort, or general welfare of the persons residing or working within the City because these amendments establish “Art in Public Places” requirements that will support a diverse and culturally rich environment, educates the public, and becomes an economic asset. In addition, “Art in Public Places” enhances the visual character of the community, improves the quality of live, and promotes healthy living by drawing residents, visitors, and workers to the outdoor space. 2. Zoning Code Amendment 22-04 is consistent with the General Plan and the Municipal Code because these amendments establish “Art in Public Places” requirements that supports the goals and policies of the General Plan programs and policies that will preserve and enhance the quality and character of the city, encourage freeway oriented commercial uses, provide open space identity enhancements, and serve the social and cultural needs of the community. 3. Zoning Code Amendment 22-04 will not be injurious to property or improvements in the neighborhood or within the city. The establishment of a “Art in Public Places” requirements will revitalize the city’s image and enhance the visual character of the community as well as curb the negative impacts of developments in general. SECTION 4. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the public hearing, the City Council finds this Ordinance, adopting Zone Code Amendment 22-04, is exempt from CEQA pursuant to section 15061(b)(3). SECTION 5. Based upon the forgoing and all oral and written testimony by members of the public and City staff (including, but not limited to, staff reports and attachments) made at the public hearing, the City Council hereby amends Title 18 (Zoning) of the Grand Terrace Municipal Code as provided in Exhibit A, attached hereto and incorporated herein by reference. E.9.a Packet Pg. 200 At t a c h m e n t : O r d i n a n c e _ 1 0 . 1 4 . 2 0 2 2 [ R e v i s i o n 1 ] ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 4 SECTION 6. Inconsistencies. Any provision of the Grand Terrace Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to affect the provisions of this Ordinance. SECTION 7. Severability. Should any provision of this Ordinance, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, that determination shall have no effect on any other provision of this Ordinance or the application of this Ordinance to any other person or circumstance and, to that end, the provisions hereof are severable. The City Council of the City of Grand Terrace declares that it would have adopted all the provisions of this ordinance that remain valid if any provisions of this ordinance are declared invalid. SECTION 8. Effective Date. This Ordinance shall become effective thirty (30) days from and after its adoption. SECTION 9. First read at a regular meeting of the City council held on the 25th day of October, 2022. SECTION 10. Certification. The Mayor shall sign, and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard and this Ordinance shall take effect 30 days after its final passage. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 25th day of October 2020. __________________________ Darcy McNaboe, Mayor ATTEST: Debra L. Thomas, City Clerk APPROVED AS TO FORM: Adrian R. Guerra City Attorney E.9.a Packet Pg. 201 At t a c h m e n t : O r d i n a n c e _ 1 0 . 1 4 . 2 0 2 2 [ R e v i s i o n 1 ] ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 EXHIBIT A TITLE 18- ZONING ZONING CODE AMENDMENT 22-020 Chapter 18.06 (Definition) of Title 18 (Zoning) of the Grand Terrace Municipal Code is amended by adding the following Sections: 18.06.067 – Art in Public Places "Art in Public Places" means any work of art which is designed for and sited in a space accessible to the public, from a public square to a wall inside a building open to the public. Art in Public Places requirements are provided in Chapter 18.81. Chapter 18.81 (Art in Public Places) is hereby added to Title 18 (Zoning) of the Grand Terrace Municipal Code as follows: CHAPTER 18.81 - ART IN PUBLIC PLACES Sections: 18.81.010 Purpose 18.81.020 Definitions 18.81.030 Applicability 18.81.040 Exceptions 18.81.050 Final City Approval 18.81.060 Art in Public Places Program Requirements 18.81.070 Ownership and Maintenance of Art 18.81.080 Procedures for Art Installed in Private Property; Review Process and Standards 18.81.090 Procedures for Art Donated to the City 18.81.100 Application Submittal Requirements 18.81.110 Removal of Public Art 18.81.120 Annual Report 18.81.130 Authority for Additional Mitigation 18.81.140 Waiver Section 18.81.010 Purpose A. The purpose of this chapter is to expand the opportunities for citizens of the City of Grand Terrace to experience public art resulting from the creative expression of its visual artists in Public Places throughout the City. A standard is hereby established to direct the inclusion of works of art in new Development Projects and establishing a fund used solely for the creation, purchase, installation, security, and maintenance of art in public spaces throughout the City. E.9.b Packet Pg. 202 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 2 B. The City Council finds and declares as follows: 1. Cultural and artistic resources enhance the quality of life for individuals living in, working in, and visiting the City. 2. Balanced development of cultural and artistic resources preserves and improves the quality of the urban environment and increases real property values. 3. Development of cultural and artistic assets should be finance by those whose development and revitalization diminish the availability of the community’s resources for those opportunities and contribute to community urbanization. 4. Establishment of this Art in Public Places Program will promote the general welfare through balancing the community’s physical growth and revitalization and is cultural and artistic resources. Section 18.81.020 Definitions A. “Artist” means a practitioner in the Arts, generally recognized by critics and peers as one who produces works of art through a record of exhibitions, public commissions, sale of works, or educational attainment. B. “Art” means all forms of original creations of visual arts, including but not limited to: 1. sculpture in any material or combination of materials 2. painting – all media including portable and permanently affixed works, such as murals and frescoes 3. graphic arts – print making and drawing 4. mosaics 5. photography 6. crafts in clay, fiber and textiles, wood, metal, plastics, and other materials 7. calligraphy 8. stained glass 9. mixed media – any combination of forms or media, including collage E.9.b Packet Pg. 203 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 3 10. lighting elements not integral to the illumination of the art 11. dedication ceremonies 12. water generated art C. "Art in Public Places" means any work of art which is designed for and sited in a space accessible to the public, from a public square to a wall inside a building open to the public. D. “Building Valuation” means the construction cost for labor and materials computed using the latest building valuation data as set forth by the International Conference of Building Officials (ICBO), excluding land acquisition and off-site improvement costs. E. “City” means the City of Grand Terrace. F. “City Manager” means the City Manager of the City and his or her designee. G. “Developer” means the applicant, developer, or owner (as applicable) of a Development Project. H. “Development Project” means a proposal for the development of improved or unimproved real property, including but not limited to: offices, hotels, motels, restaurants. I. “Director” means the City’s Planning and Development Services Director and his or her designee. J. “Public Art Fund” means a separate fund established to receive monies from any source by the Public Art Fund. K. “Public Place” means any area or property (public or private) which is accessible or visible to the general public a minimum of eight (8) hours during a business day. L. “Planning Commission” means the Planning Commission of the City of Grand Terrace. Section 18.81.030 Applicability A. Except as provided in Section 18.81.040, this chapter shall apply to all works of construction and rehabilitation within the City for which a building permit is required, including, but no limited to, the following: 1. New commercial and industrial construction. E.9.b Packet Pg. 204 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 4 2. Remodeling or reconstruction of existing commercial or industrial property. 3. Residential subdivisions or development of two or more units, whether by detached single-family residential structures, condominiums, apartments, duplexes, townhouses, or other dwelling units being built in the same tract by the same Developer. B. The creator of the work of Art shall be an Artist through a record of exhibitions, public commissions, sale of works, or educational attainment. Section 18.81.040 Exceptions. A. This chapter shall not apply to the following construction and rehabilitation activities: 1. Public projects undertaken by any agency of the City, the state, county, school district, or any other governmental entity. 2. Remodeling, repair or reconstruction of structures to comply with earthquake seismic safety code standards or which have been damaged by fire, flood, wind, earthquake, or other calamity. 3. Remodeling, repair, or reconstruction of residential units. 4. Nonprofit, social service, or cultural institution projects. 5. Low to moderate housing projects as defined by the household Health and Safety Code Section 50093. 6. Affordable housing development receiving City, state, or federal assistance. 7. Private educational institutions which provide general education equivalent to the public school system (kindergarten through high school or any part thereof). 8. Housing development projects to the extent that such housing development projects comply with applicable, objective general plan, zoning, and subdivision standards and criteria, including design review standards, in effect at the time that the application thereof was deemed complete. Further, this chapter shall not apply to housing development projects to the extent that applicable law, including but not limited to, Government Code Section 65589.5, prohibits the application of this chapter upon housing development projects. For the purposes of this Section 18.81.050(A)(8), the term “housing development project” shall have the same meaning as provided in E.9.b Packet Pg. 205 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 5 Government Code Section 65589.5. 9. Such other circumstances where applicable law prohibits the application of this chapter. Section 18.81.050 Final City Approval A. No final City approval, such as a final inspection or a certificate of occupancy, for any Development Project subject to this chapter shall be granted or issued unless and until full compliance with the Art in Public Places is achieved in one of the following ways: 1. The Developer shall provide the City with proof of installation of the required the work of Art in a manner satisfactory to the City pursuant to Section 18.81.060. 2. In-lieu fees have been paid as calculated pursuant to Section 18.81.060. 3. Financial security in an amount equal to the acquisition and installation cost of an approved works of Art as calculated pursuant to Section 18.81.060 and in a form approved by the city attorney have been posted. 4. An approved work of Art has been donated and accepted by the City pursuant to Section 18.81.100. Section 18.81.060 Art in Public Places Program Requirements A. Public Art Requirement. The Developer shall acquire and install Art on or in the vicinity of the Development Project, which shall be in a Public Place, in accordance with provisions of this chapter. The value of the Art shall be at least as follows: 1. The cost of Art for all new Development Projects (except single family residential) shall be equal to at least one percent (1%) of the estimated total Building Valuation. 2. The cost of the work of Art for Development Projects that are single family residential development must be equal to at least ½% of the estimated total Building Valuation. B. Monetary Contribution In Lieu of Public Art. In lieu of acquiring and installing Art on or in the vicinity of the development site in a Public Place pursuant to subsection A of this section, the Developer may elect to make a monetary E.9.b Packet Pg. 206 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 6 contribution to the Public Art Fund as follows: 1. In the amount of at least one percent (1%) fee of the total estimated construction cost for all new development except single family residential. 2. In the amount of at least one half percent (½%) fee of the total estimated construction cost for new single family residential development. C. If the Developer chooses to pay the in lieu fee, payment in full shall be required at the same time as when all other fees are due on any development processed through the City or upon completion of the project, whichever occurs first. D. Nothing in this section shall prohibit the Developer from placing an approved work of Art with a value, including acquisition and installation costs, totaling an amount less than the Art in Public Places Program allocation provided for in this section, provided that, in that event, the Developer shall also pay into the Public Art Fund an amount equal to the difference between the Art in Public Places Program allocation and the value, including costs of acquisition and installation, of the work of Art placed. This subsection D shall not apply to Industrial Development Projects. Section 18.81.070 Public Art Fund A. Public Art Fund Created. 1. The City Manager is hereby directed to create a special interest- bearing fund entitled Public Art Fund, or other appropriate accounting mechanism. 2. The City Manager shall administer the Public Art Fund. B. Placement and Use of Funds in Public Art Fund. 1. All amounts collected from the in lieu fee collected pursuant to Section 18.81.060(B) shall be placed in said Public Art Fund and expended by the City Manager solely for the costs associated with projects that result in the creation, purchase, installation, security, or maintenance of Art in public spaces. 2. Furnishings or fixtures affixed to the building or its grounds, including architectural features of the building or landscaping that have been uniquely enhanced to be visually appealing, may qualify as Art. Works of Art may be temporary as well as permanent. E.9.b Packet Pg. 207 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 7 3. When selecting the location for Art purchased though the Public Art Fund, preference shall be given to publicly accessible Public Places. This would include libraries, parks, office buildings, sidewalks, traffic islands, lobbies, plazas, adjacent open spaces or exterior treatment of publicly owned buildings shall be potential sites, but the offices themselves of publicly owned buildings shall not be considered acceptable sites. 4. Location and Art purchased through the Public Art Fund shall be reviewed by the Planning Commission with recommendation to the City Council for final approval. 5. Recommendations for installations may be requested from the Parks and Recreation Committee, the Art Committee, the Planning Commission, the City Council, or other City committee. Section 18.81.080 Ownership and Maintenance of Art A. All works of Art installed pursuant to this chapter on private property shall remain the property of the owner of a site for which the final building permit or certificate of occupancy related to the Development Project was obtained and the owner’s successors and assigns, which property owner must provide all maintenance necessary to preserve and maintain the works of Art in good condition and in the manner approved by the City. 1. Title to all works of Art required by and installed pursuant to this section on private property shall be vested in the owner thereof and pass to the successive owners of the Development Project. 2. Prior to placement of the work of Art, the owner of the subject private property shall execute and record a covenant, agreement, or other instrument, in the form approved by the City Attorney, setting forth a description of the work of Art and acknowledging the obligation of the owner of the subject site to repair and maintain the work of Art. This document shall run with the land and provide notice to future property owners of the obligation to repair and maintain the work of Art and of certain limitations related to any federal, state, or local requirements governing the rights of the Artist, including but not limited to right regarding the alteration, modification or relocation of subject work of Art. 3. Each successive owner shall be responsible for the custody, protection, repairing, restoring, maintenance, or reacting the work of Art in the event of physical defacement, mutilation, alteration or destruction, and securing and maintaining insurance coverage in an amount to be approved by the City for: fire, flood, wind, earthquake and natural disaster, vandalism and extended liability. E.9.b Packet Pg. 208 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 8 4. Any time the City determines that the work of Art has not been maintained in substantial conformity with the manner in which it was originally approved, the City may require the current property owner to maintain, repair, restore, or replace the work of Art. 5. Failure to maintain the work of Art as provided in this chapter is declared to be a public nuisance and may be abated as such pursuant to applicable provisions of City of Grand Terrace Municipal Code. B. Art donated to and accepted by the City or installed on public property and accepted by the City is owned by the City and maintenance, removal or protection thereof is the responsibility of the City. Section 18.81.090 Procedures for Art installed on Private Property; Review Process and Standards An application for placement of Art on private property shall be submitted to the Director and shall include the following information, at minimum: A. The Developer shall submit a narrative proposal and artistic rendering of the proposed work of Art in satisfaction of the requirements imposed by this section, including any additional information, plans or maps prescribed by the Director at the time of submission of their development application, or indicate an intention to pay the in lieu fees. The application shall also comply with the requirements of Section 18.81.110. B. The proposal for the work of Art shall be considered as an element of the Site and Architectural design review process, pursuant to the Chapter 18.63. C. The approval of all works of Art to be created, purchased, installed, secured and maintained under this section shall require a review and approval of the City of Grand Terrace Planning Commission. D. The decision of the Planning Commission shall be final unless appealed to the City Council, pursuant to Chapter 18.63. E. Review of all proposed works of Art shall be considered based on the following criteria: 1. Conceptual compatibility of the design with the immediate environment of the site. 2. Appropriateness of the design to the function of the site. E.9.b Packet Pg. 209 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 9 3. Compatibility of the design and location within a unified design character or historical character of the site. 4. Creation of an internal sense of order and a desirable environment for the general community by the design and location of the work of Art. 5. Preservation and integration of natural features with the project. 6. Consideration should be given to structural and surface integrity, permanence, and protection against theft, vandalism, weathering, excessive maintenance, and repair cost. 7. Representation of a broad variety of tastes within the community and the provision of a balanced inventory of Art in Public Places to ensure a variety of style, design and media throughout the community that will be representative of the eclectic tastes of the community. 8. Works of Arts and Art places should be appropriate in scale, form, and content for the immediate, general, social, and physical environments with which they relate. Section 18.81.100 Procedures for Art Donated to City. A. Art Donated as Part of a Development Project. 1. In the event a Developer elects to donate the work of Art to the City pursuant to this chapter as part of a Development Project, an application for acceptance of works of Art to be donated to the City (including for such works of Art to be placed on public property, as applicable) shall be submitted to the Director and comply with the requirements of Section 18.81.110. This application shall be submitted at the same time as the Developer’s application for the Development Project. 2. The application shall also include a written agreement, in form approved by the City Attorney, executed by or on behalf of the Artist who created the Art, which expressly waives his/her rights under the California Art Preservation Act or other applicable law. 3. The proposal for the work of Art shall be considered as an element of the Site and Architectural design review process, pursuant to Chapter 18.63. 4. The Director shall review the application submitted pursuant to this E.9.b Packet Pg. 210 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 10 section and provide a recommendation to the Planning Commission. The Planning Commission shall consider and may either accept (or conditionally accept) or deny the proposed work of Art. Review of all proposed works of Art shall be considered based on the criteria provided in Section 18.81.090(E). The decision of the Planning Commission shall be final unless appealed to the City Council, pursuant to Chapter 18.63. Section 18.81.110 Application Submittal Requirements A. Any works of Art being donated or placed on public or private property pursuant to this Chapter shall be one-of-a-kind piece. The application shall include: 1. Preliminary sketches, photographs, or other documentation of sufficient descriptive clarity to indicate the nature of the proposed works of Art. 2. An appraisal or other evidence of the value of the proposed works of Art, including acquisition, and installation cost. 3. Preliminary plans shall contain detail information of the works of Art, location, and compatibility with the proposed development. The works of Art shall be an integral part of the landscaping and/or architecture of the building, including compatibility with the character of adjacent conforming development parcels and existing neighborhoods if necessary to evaluate the proposal. 4. A narrative statement to demonstrate that the works of Art will be displayed in an area open and freely available to the general public, or otherwise provide public accessibility in an equivalent manner based on the characteristics of the works of Art or its placement on the site. 5. Other information as may be required by the Director to adequately evaluate the proposed donation of public Art. B. If the work of Art is to be donated to the City, an appraisal or other evidence of the value of the proposed work of Art, including acquisition and installation costs. Section 18.81.120 Removal of Public Art A. If, for any reason, the current owner or successor in interest shall choose to replace any work of Art installed pursuant to this section, the following requirements shall be met before the Art is replaced: E.9.b Packet Pg. 211 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) 01247.0005/796054.5 11 1. The replacement of the work of Art must go through the site review process established above, unless the replacement will be identical to the existing works of Art and in the same location. 2. The cost of the replacement shall be equal to, or greater than, the initial cost of the existing work of Art to be removed adjusted for time. 3. The location of the replacement work of Art shall be located in a Public Place and meet the requirement for public visibility in effect at the time of the replacement. 4. The replacement of the work of Art shall conform, in every respect, to all standards in effect at the time of the replacement. 5. The replacement work of Art, location and installation shall violate no other ordinance. 6. The replacement work of Art shall be installed within 180 days of the removal of the existing work of Art piece unless the period is extended by the Director. 7. The owner may choose to pay an in lieu fee equivalent to the cost of the replacement of the existing work of Art as calculated in Section 18.81.060. Section 18.81.130 Annual Report The City Manager shall annually prepare and present a report to the City Council indicating the amount of revenues accumulated in the Art in Public Places Fund and the expenditures made by the City in the preceding fiscal year. Section 18.81.140 Authority for Additional Mitigation Fees collected pursuant to this section do not replace existing development fees or other charges or limit requirements or conditions to provide additional mitigation of impacts imposed upon Development Projects as part of the normal development review process. Section 18.81.150 Waiver The City Manager may request that the City Council exclude certain capital improvement projects from the provisions of this ordinance by the passage of a resolution authorizing such a waiver. E.9.b Packet Pg. 212 At t a c h m e n t : A r t i n P u b l i c P l a c e s _ E x h i b i t A _ 6 . 8 . 2 0 2 2 F i n a l D r a f t ( A r t i n P u b l i c P l a c e s O r d i n a n c e ( Z C A 2 2 - 0 4 ) ) AGENDA REPORT MEETING DATE: October 25, 2022 TITLE: Tentative Tract Map 21-01 (Tentative Tract Map No. 20395) and Environmental 21-03 PRESENTED BY: Haide Aguirre, Senior Planner RECOMMENDATION: 1) Conduct a public hearing, and 2) Adopt A RESOLUTION OF THE CITY COUNCIL ADOPTING AN ENVIRONMENTAL EXEMPTION PURSUANT TO SECTION 15332 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES (ENVIRONMENTAL 21-03) APPROVING TENTATIVE TRACT MAP 21-01 (TENTATIVE TRACT MAP NO. 20395) PROPOSING A SIX LOT SUBDIVISION ON A 3.8-ACRE LOT, LOCATED AT 11899 ROSEDALE AVENUE (APN 0275-083-03-0000). VISION STATEMENT This Project supports the City’s 2030 Vision Plan, Goal #3 Promote Economic Development. BACKGROUND Tony Jara representing Jay Gees, LLC (“Applicant”), is requesting approval of Tentative Tract Map 21-01 (TTM 20395) proposing to subdivide 3.8-acres into six single family lots. There is an existing one-story single-family home and existing detached accessory dwelling unit that will remain as one of the created lots. The site improvements include the construction of a Local (60-foot right-of-way) cul-de-sac street (Street “A”). The Project site is located at 11899 Rosedale Avenue, zoned R1-20-V-Very Low-Density Single Family Residential with an AG-Agricultural Overlay District (APN:0275-083-03- 0000). Pursuant to the City’s Subdivision Ordinance, the City Council has final approval authority on Tentative Tract Maps; however, the Planning Commission has reviewing authority and makes a recommendation to the City Council. • On October 6, 2022, the Planning Commission conducted a Public Hearing Meeting and voted unanimously (5-0) adopting a Resolution recommending City Council approval of Tentative Tract Map No. 20395. E.10 Packet Pg. 213 • In addition, the Planning Commission voted unanimously (5-0) adopting a Resolution approving the concurrent Site and Architectural Review (SA 21-05) proposing the construction of five one-story single-family residences to be constructed on the resulting parcels. The approval of the SA 21-05 is contingent upon City Council approval of TTM No. 20395. ANALYSIS: The site is a 3.8-acre irregular shaped lot, located at the western city limits, bordering the City of Colton to the west and north, Rosedale Avenue and Litton Avenue respectively (60-foot wide Local Streets) and it fronts La Cadena Drive to the east (120-foot-wide Divided Major Highway). The site has an existing one story-single family residence with a detached accessory dwelling unit proposed to remain as part of one of the six subdivided lots. The site is surrounded by single family residential uses to the north, west, and south, and to the east the site fronts La Cadena Drive. General Plan/Zoning Consistency The project site is designated Low Density Residential (LDR) on the General Plan Land Use Map. The Project is consistent with the Housing Element which characterizes R1- 20-V parcels consisting of older homes on larger lots that can be subdivided. This designation encourages infill housing and private development of underutilized land for residential construction by maintaining the physical character of existing low-density residential neighborhood. The Project is zoned R1-20-V-Very Low-Density Single Family Residential with an AG- Agricultural Overlay on the Municipal Code Zoning Map. The proposed six lot subdivision is consistent with the zoning designation which is intended for very low density single-family detached residential housing with a minimum lot size of 20,000 square feet with a density of two dwelling units per acre. The proposed lots sizes range from 20,018 square feet to 24,995. The Project is proposing a density of 1.5 units per acre. The proposed TTM and concurrent SA 21-05 complies with all the design standards of the zoning designation. Circulation/Access The Project is consistent with the Circulation Element, as it is proposing the construction and dedication of a Local cul-de-sac street to provide direct access to the proposed residential development from Rosedale Avenue. The new Local Street will include ultimate street improvements, including but not limited to curb, gutter, sidewalk, street lighting, street landscape, fire hydrant, and a dry well drainage easement. In addition, the project will provide the ultimate street improvements to the north at Litton Avenue and to the west at Rosedale Avenue, which abut the City of Colton to the street center E.10 Packet Pg. 214 lines. The sidewalk improvements will be carried out around the street frontage of the private residence located at 21559 Litton Avenue (APN:0192-281-01-0000). The proposed street improvements at La Cadena Drive (120-foot-wide Divided Major Highway); will include a 2-foot-high silt barrier, slope planting and erosion control, curb and gutter, and griding and repaving to the median. The Project will be required to be annexed into the City’s Landscape and Lighting Maintenance District. Conceptual Grading The proposed subdivided lots gradually decrease in elevation from west to east by approximately 16-feet in a span of 513-feet. The rear yard of proposed Lot 3 on the east side of the Project is adjacent to La Cadena Drive and sits approximately 23-feet higher and slopes within a span of 48-feet to the lowest grade at La Cadena Drive. The Project will include slope planting and erosion control fronting La Cadena Drive. The drainage will be limited to the boundary of the proposed project. The project site currently drains to the east, and it will remain the same post development. The storm runoff water will flow into the proposed 29-foot-wide catch basin easement located at the east end of the cul-de-sac and will be treated by means of a dry well system proposed to have an overflow height 15-feet and an estimated penetration of 50-feet in depth. In addition, the Project is proposing a sewer easement located to the east side of Lot 1 and a concrete down drain swale along the east perimeter of Lot 2 and Lot 3. The project has been conditioned to record all the proposed easements. The City of Grand Terrace Engineer, City Attorney, and the City of Colton will review and approve the document prior to recordation. The proposed development complies with the Public Health and Safety Element. The Applicant has prepared preliminary Water Quality management Plan and Preliminary Soils Engineering Investigation Report. Final reports will be required as part of the final map process. Agency Review The Project Plans were distributed to various agencies for their comments. Conditions of Approval from the City’s Planning Division, Building and Safety Division, and Public Works Department, San Bernardino County Fire, Edison, and Colton Water and Wastewater Department have been obtained. The Conditions are included in the attached Resolution. E.10 Packet Pg. 215 The Project has been conditioned for compliance with the Riverside Highland Water Company requirements and final water improvement plans will require their review and approval. ENVIRONMENTAL REVIEW: The Project is categorically exempt per the California Environmental Quality Act, Code of Regulations, Title 14, Section 15332, which exempts infill development when the project is compatible with the General Plan and Zoning Code, is on less than five acres substantially surrounded by urban uses; is on a site of no value to endangered, threatened, or rare species; is served by public utilities and services, and there are no impacts to traffic noise, air quality or water quality. A Notice of Exemption has been included for adoption. PUBLIC NOTICE: Public notice of the Project was provided, including publishing in the Grand Terrace City News and mailing notices to property owners within 500 feet of the Project site, 10 days prior to the meeting date. In addition, a copy of the notice was posted in three public places. To date, City staff has not received any comments regarding the proposed Project. FISCAL IMPACT: The is no fiscal impact associated with approval of this Project. ATTACHMENTS: • PC Resolution_TTM 20395_10.13.2022 (DOC) • Exhibits_Conditions of Approval (PDF) • Notice of Exemption (DOC) APPROVALS: Haide Aguirre Completed 10/13/2022 4:42 PM City Attorney Completed 10/17/2022 2:37 PM City Manager Completed 10/14/2022 9:17 AM City Council Pending 10/25/2022 6:00 PM E.10 Packet Pg. 216 Page 1 of 21 RESOLUTION NO. 2022- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNINA ADOPTING AN ENVIRONMENTAL EXEMPTION PURSUANT TO SECTION 15332 OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) GUIDELINES (ENVIRONMENTAL 21-03) AND APPROVING TENTATIVE TRACT MAP 21-01 (TENTATIVE TRACT MAP NO. 20395) A SIX LOT SUBDIVIONS ON A 3.8-ACRE LOT, LOCATED AT 11899 ROSEDALE AVENUE (APN 0275-083-03-0000) WHEREAS, Tony Jara representing Jay Gees, LLC (“Applicant”), has filed an application for Tentative Tract Map 21-01 (Tentative Tract Map No. 20395) to subdivide 3.8-acres into a six lot subdivision; and WHEREAS, the Applicant concurrently submitted Site and Architectural Review (SA 21-05) for approval of the site layout and architectural plans for the construction of five one-story single-family residences on Lots 1 through 5 and Lot 6 has an existing home and an existing detached accessory dwelling unit that will remain; and WHEREAS, Tentative Tract Map (TTM 21-01) No.20395, Site and Architectural Review (SA 21-05), and Environmental (E 21-03) are collectively referred to as the “Project”; and WHEREAS, the Project site is zoned R1-20-V-Very Low Density Single Family Residential with an AG-Agricultural Overlay District and designated Low Density Residential on the General Plan Land Use Map, located at 11899 Rosedale Avenue identified as Assessor’s Parcel Number 0275-083-03-0000; and WHEREAS, the Project qualifies for an environmental exemption pursuant to Section 15332 of the California Environmental Quality Act (CEQA) Guidelines, which exempts infill projects when the project is compatible with the General Plan and Zoning Code, is on less than five acres substantially surrounded by urban uses, the property has no value as habitat for any rare, endangered, or threatened species, the site is served by public utilities and services, and there are no impacts to traffic noise, air quality or water quality. WHEREAS, on October 6, 2022, the Planning Commission conducted a duly noticed public hearing at the Council Chambers located at 22795 Barton Road, Grand Terrace, California and concluded the hearing on said date by voting 5-0 recommending City Council approval of the Project. WHEREAS, on October 25, 2022, the City Council conducted a duly noticed public hearing at the Council Chambers located at 22795 Barton Road, Grand Terrace California and concluded the hearing on said date. E.10.a Packet Pg. 217 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 2 of 21 WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY RESOLVE AS FOLLOWS: 1. The Recitals set forth above are incorporated herein by this reference. 2. Based upon the forgoing and all oral and written communications from members of the public and City staff (including, but not limited to, all oral and written staff reports and attachments) presented at the October 25, 2022, public hearing, the City Council hereby finds that the Project is categorially exempt from the provisions of the California Environmental Quality Act (CEQA) Guidelines, pursuant to Section 15332, which exempts infill projects consistent with the applicable General Plan designation and policies and consistent with the Zoning designation regulations, the Project is on less than five acres substantially surrounded by urban uses, the property has no value as habitat for any rare, endangered, or threatened species, the site is served by public utilities and services, and the Project does not result in any significant effects relating to traffic noise, air quality or water quality. 3. Based upon the forgoing and all oral and written communications from members of the public and City staff (including, but not limited to, all oral and written staff reports and attachments) presented at the October 25, 2022, public hearing,the City Council finds as follows with respect to Tentative Tract Map 21-01 (Tentative Tract Map No. 20395): a. The proposed subdivision is consistent with the City General Plan and any applicable specific plan for the area. The Project is zoned R1-20-V-Very Low Density Single Family Residential with an AG-Agricultural Overlay on the Municipal Code Zoning Map. The proposed six lot subdivision is consistent with the zoning which is intended for very low density single family residential houses with a minimum lot size of 20,000 square feet with a maximum density of two dwelling units per gross acre. The project is proposing a density of 1.5 per acre. The project complies with all the design standards of its zoning designation. In addition, the project site is designated Low Density Residential (LDR) on the General Plan Land Use Map. The Project is consistent with the Housing Element which characterizes R1-20-V parcels consisting of older homes on larger lots that can be subdivided. This designation encourages infill housing and private development of underutilized land for residential construction by maintaining the physical character of existing low-density residential neighborhood. Likewise, Project is consistent with the Land Use Element which goal is to preserve and enhance the quality and character of the City’s residential neighborhoods and limits land uses to single family detached residential units. E.10.a Packet Pg. 218 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 3 of 21 b. The design or improvement of the proposed subdivision are consistent with the City’s General Plan and any applicable specific plan for the area. The subdivision complies with the maximum density of 2 dwelling units per acre of the LDR designation. The proposed residential development borders the City of Colton to the west (Rosedale Avenue) and north (Litton Avenue). The six lot single-family residential subdivision is consistent with the existing surrounding residences at the City of Colton and the City of Grand Terrace. The proposed development complies with the minimum 20,000 square-foot lot size requirement of the zoning designation. The new residences will have a minimum of forty-feet separation between structures. The nearest existing residence at the corner of Litton Avenue and Rosedale Avenue is about forty feet away from the new residence at Lot 1, and the nearest existing residence on the City of Colton across Litton Avenue will be about 160 feet away from the proposed new residences at Lots 1 and 2. The project includes an existing residence with detached accessory dwelling unit to west side of the project fronting Rosedale Avenue. The size of the proposed lots, location, and separation between structures is substantially larger in this zoning; therefore, the development will not interfere with the neighbor’s privacy or block scenic views. The Project proposes a local cul-de-sac street and street improvements including, but not limited to paving to the center line of the street frontages, sidewalk, and streetscape. The city-right-of way improvements will be in scale with the townscape and natural landscape of the area. c. The site is physically suitable for the type and proposed density of development proposed by the tentative map. The proposed six lot subdivision is consistent with the zoning which is intended for very low density single family residential houses with a minimum lot size is 20,000 square feet with a maximum density of two dwelling units per gross acre. The 3.8-acre site can support the proposed Project subdivision at the proposed density. d. The design of the subdivision and proposed improvements are not likely to cause significant environmental damage or substantially and avoidably injure fish or wildlife or their habitat. The Project is an infill development exempt of the of the California Environmental Quality Act (CEQA) Guidelines, pursuant to Section 15332. e. The design of the subdivision and the type of improvements are not likely to cause serious public health problems. The design of the subdivision is consistent with the zoning designation and the existing single family residential developments. The proposed development will be accessed through a new local cul-de-sac street. The Project’s Street improvements include paving, sidewalk, curb and gutter, and street landscape. The proposed subdivision and street improvements will be in scale with the existing development and are not likely to cause serious public health problems. E.10.a Packet Pg. 219 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 4 of 21 f. The design of the subdivision provides for future passive or natural heating and cooling opportunities in the subdivision to the extent feasible. The proposed subdivision. The proposed development complies with the minimum 20,000 square-foot lot size requirement of the zoning designation. The size of the proposed lots, location, and separation between structures is substantially larger in this zoning. The development site is proposing a drought tolerant landscaping within the front yards and parkways. The front yard areas are proposed to be a combination of lawn, mulch, shrubs, plants, and trees. The required streetscape will include Southern Magnolia and Holy Oak. The proposed subdivided lots will provide heating and cooling opportunities. g. The design of the subdivision and the type of improvements will not conflict with easements acquired by the public at large for access through or use of property within the proposed subdivision, or the design of the alternate easements which are substantially equivalent to those previously acquired by the public will not be provided. The design of the subdivision is proposing the construction and dedication of a Local (60-foot right-of-way) cul-de-sac Street to provide direct access to the development. The project is proposing a dry well easement and a sewer easement within the confines of the project site to support the development. The improvements will not conflict with existing easements acquired by the public at large. h. In approving the subdivision, the approving authority has considered its effects and the effects of adopted ordinances and actions relating to the review and approval of subdivisions on the housing needs of the region and balanced those needs against the public service needs of its residents and available fiscal and environmental resources. In approving the proposed six lot subdivision, the city has reviewed the project for compliance with the Municipal Code and the General Plan. This designation encourages infill housing and private development of underutilized land for residential construction by maintaining the physical character of existing low-density residential neighborhood. In addition, the project meets all the Municipal Code design requirements. The subdivision is proposing street improvement and infrastructure to support the development; therefore, the subdivision will meet the needs of the region and the residents public service needs. BE IT FURTHER RESOLVED THAT based upon the forgoing and all oral and written communications from members of the public and City staff (including, but not limited to, all oral and written staff reports and attachments) presented at the October 25, 2022, public hearing, the City Council does hereby adopt the Notice of Exemption prepared for the Project and approves Tentative Tract Map 21-01 (Tentative Tract Map No. 20395); subject to the following conditions of approval: General Conditions of Approval: Project Description E.10.a Packet Pg. 220 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 5 of 21 1. Approval of Tentative Tract Map 21-01 (Tentative Tract Map No. 20395) is granted to subdivide 3.8-acres into a six lot subdivision on the property located at 11899 Rosedale Avenue, identified as Assessor’s Parcel Number 0275-083-03-0000. This approval is granted based on the application materials submitted by Tony Jara representing Jay Gees, LLC, including the revised tentative tract map, site plan, architectural elevations/floor plans and conceptual landscape plan. These plans are approved as submitted and conditioned herein and shall not be further altered except as modified by these conditions of approval, and unless reviewed and approved by the affected departments. General Conditions 2. This approval shall expire twenty-four (24) months from the date of adoption of this Resolution. This approval shall become null and void if a final map has not been timely filed prior to the expiration date in accordance with the provisions of the Subdivision Map Act. An extension of time may be granted by the Planning and Development Services Director upon submittal of a time extension request and appropriate filing fees, pursuant to the Municipal Code section 17.16.170. In granting any such time extension the City may impose new conditions and standards on the tentative map, pursuant to Section 66452.6(e) of the California Government Code. 3. Within 24 hours of this approval of the subject Project, the Applicant shall deliver a payment of $50.00 and (check should be made out to the Clerk of the Board of Supervisors) to enable the City to file the Notice of Exemption. If within such 48 hour period the payment has not been delivered to the Community Development Department the above-noted check, the statute of limitations for any interested party to challenge the environmental determination under the provisions of the California Environmental Quality Act could be significantly lengthened. 4. The applicant shall defend, indemnify and hold harmless the City and its agents, officers, attorneys and employees from any claim, action, or proceeding (collectively referred to as "proceeding") brought against the City or its agents, officers, attorneys or employees to attack, set aside, void, or annul the City's decision to approve the tentative tract development, approval or authorization and approvals conditions or approval and certifications under CEQA and/or any mitigation monitoring program, but excluding any subdivision approval governed by California Government Code § 66474.9, and which action is brought within the time period provided for in Government Code Section 66499.37. This indemnification shall include, but not limited to, damages, fees and/or costs awarded against the City, if any, and cost of suit, attorneys' fees and other costs liabilities and expenses incurred in connection with such proceeding whether incurred by applicant, the City, and/or the parties initiating or bringing such proceeding. The City shall promptly notify the applicant of any claim, action, or proceeding concerning the project and the City shall cooperate fully in the defense of the matter. The City reserves the right, at its own option, to choose its own E.10.a Packet Pg. 221 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 6 of 21 attorney to represent the City, its officers, employees, and agents in the defense of the matter. The applicant shall defend, indemnify and hold harmless the City, its agents, officers, employees and attorneys for all costs incurred in additional investigation and/or study of, or for supplementing, preparing, redrafting, revising, or amending any document (such as a notice of exemption, negative declaration, EIR, specific plan or General Plan amendment), if made necessary by said proceeding and if applicant desires to pursue securing such approvals, after initiation of such proceeding, which are conditioned on the approval of such documents, and shall Indemnify the City for all the City's costs, fees, and damages that the City incurs in enforcing these indemnification provisions. 5. In the event that this approval is legally challenged, the City will promptly notify the Applicant of any claim or action and will cooperate fully in the defense of the matter. Once notified, the Applicant agrees to defend, indemnify, and hold harmless the city, their affiliate’s officers, agents and employees from any claim, action or proceeding against the City of Grand Terrace. The Applicant further agrees to reimburse the City of any costs and attorneys’ fees, which the City may be required by a court to pay as a result of such action, but such participation shall not relieve Applicant of his or her obligation under this condition. 6. Minor modifications may be processed administratively without notice or public hearing, provided that the proposed changes are consistent with the intent of the original map approval, do not affect off-site properties, and there are no resulting violations of Municipal Code. Modifications shall be considered minor if are less than 10% of the total number of lots in the subdivision, provided that there is no increase or decrease in the total number of lots within the subdivision. Modifications to the horizontal alignment of two feet or less, or vertical alignment of two feet or less, of any cul-de-sac, local or collector roadway when such modification does not affect off-site property. And any other changes, which in the opinion of the Director and/or City Engineer do not involve substantial changes to the map or the conditions of approval which do not affect off-site property. 7. Modifications to the approved Tentative Tract Map not consistent with the minor modification, shall be processed as a revised map, following the procedures of the original submittal pursuant to Municipal Code, Chapter 17.16. 8. Any details which are inconsistent with requirements of state and local ordinances, conditions of approval, or City policies must be specifically modified to comply with state and local ordinances, conditions of approval, or City policies, or must be approved in the final map or improvement plan approvals 9. The applicant shall comply with all requirements of the Subdivision Map Act, and Title 17 (Subdivisions) contained in the Grand Terrace Municipal Code. 10. This permit or approval is subject to all the applicable provisions of the Grand Terrace Municipal Code in effect at the time of approval, and includes development standards and requirements relating to: dust and dirt control during E.10.a Packet Pg. 222 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 7 of 21 construction and grading activities; emission control of fumes, vapors, gases and other forms of air pollution; glare control; exterior lighting design and control; noise control; odor control; screening; signs, off-street parking and off-street loading; and, vibration control. Screening and sign regulations compliance are important considerations to the developer because they will delay the issuance of a Certificate of Occupancy until compliance is met. Any exterior structural equipment, or utility transformers, boxes, ducts, or meter cabinets shall be architecturally screened by wall or structural element, blending with the building design and include landscaping when on the ground. 11. In the event that exhibits, and written conditions are inconsistent, the written conditions shall prevail. 12. During construction of the site, the Project shall comply with Grand Terrace Municipal Code Section 8.108.040 (Special Activities) which prohibits construction- related activities between the hours of 8:00 p.m. to 7:00 a.m. Monday through Saturday, and no construction activity shall take place at any time on Sunday or national holidays. 13. Under no condition shall there be stockpiling of material prior to the issuance of the first grading permit and related condition of approval for the grading permit have been obtained. 14. Prior to the construction of perimeter decorative block walls on shared property lines, the Applicant shall submit a Fence/Wall agreement signed by the adjacent property owners. In the absence of a Fence/Wall agreement, the construction plans shall demonstrate the perimeter decorative block walls to be constructed entirely inside the property. 15. The Applicant shall comply with the National Pollutant Discharge Elimination System (NPDES). 16. Comply with all applicable SCAQMD rules and regulations including Rules 402 nuisance which require the implementation of Best Available Control Measures (BACM) for each fugitive dust source; and the AQMP, which identifies Best Available Control Technologies (BACT) for area sources and point sources, respectively. 17. The Applicant shall implement SCAQMD Rule 403 and standard construction practices during all operations capable of generating fugitive dust, which will include but not be limited to the use of best available control measures and reasonably available control measures such as: a. Water active grading areas and staging areas at least twice daily as needed; b. Ensure that all disturbed areas are treated to prevent erosion until the site is constructed upon. c. Ensure that landscaped areas are installed as soon as possible to reduce the potential for wind erosion. E.10.a Packet Pg. 223 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 8 of 21 d. Suspend grading activities when wind gusts exceed 25 mph; e. Sweep public paved roads if visible soil material is carried off-site; f. Enforce on-site speed limits on unpaved surface to 15 mph; and g. Discontinue construction activities during Stage 1 smog episodes. 18. To reduce emissions, all equipment used in grading and construction must be tuned and maintained to the manufacturer’s specification to maximize efficient burning of vehicle fuel. 19. The Applicant shall ensure that existing power sources are utilized where feasible via temporary power poles to avoid on-site power generation during construction. 20. The Applicant shall maintain and effectively utilize and schedule on-site equipment in order to minimize exhaust emissions from truck idling. 21. All equipment used in earthwork must be tuned and maintained to the manufacturer’s specification to maximize efficient burning of vehicle fuel. 22. All construction equipment shall be equipped with suitable muffler systems. 23. Construction personnel shall be informed of ride sharing and transit opportunities. 24. Comply with all existing and future CARB and SCAQMD regulations related to diesel-fueled trucks, which may include among others: (1) meeting more stringent emission standards; (2) retrofitting existing engines with particulate traps; (3) use of low sulfur fuel; and (4) use of alternative fuels or equipment. 25. If it is determined that hazardous wastes are or will be generated by the proposed operation of the facility, the wastes shall be managed in accordance with the California Hazardous Waste Control Law and the Hazardous Waste Control Regulations. 26. The Applicant shall work with the City’s franchised solid waste hauler to follow a debris management plan to divert the material from landfills by the use of separate recycling bins (e.g., wood, concrete, steel, aggregate, glass) during demolition and construction to minimize waste and promote recycle and reuse of the materials 27. All Development Impact fees shall be paid to the City of Grand Terrace prior to the issuance of any building and/or construction permits. The Applicant shall pay all required development impact fees to cover 100 percent of the pro rata share of the estimated cost of public infrastructure, facilities, and services. 28. Prior to issuance of any Building and/or Construction Permits, the Applicant shall submit to the Community Development Services Department proof of payment or waiver from Riverside Highland Water, City of Colton for sewer capacity fees, and Colton Unified School District for school impact fees. E.10.a Packet Pg. 224 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 9 of 21 29. Separate submittals and permits are required for all accessory structures such as, but not limited to, street improvements, trash enclosures, patios, block walls, and storage buildings. 30. Construction activities and business operational activities associated with the Project shall comply with the regulations of the City’s Noise Ordinance, Chapter 8.108 of the Grand Terrace Municipal Code. 31. All contractors shall acquire a valid City business license and be in compliance with all City Codes. 32. The applicant shall incorporate into the project design all proposed and existing easements within the project boundaries or obtain abandonment of said easement from the affected easement holder(s). If this requirement cannot be accomplished, the project shall be redesigned. 33. Four (4) copies of the construction plans, including grading and site plans shall be submitted to the Building and Safety Division for review and approval, which shall include approval by the Planning and Engineering Divisions. 34. The location and method of screening for all roof-mounted shall be located inside the roof structure. All ground mounted equipment shall be screened from public view and designed to be an integral component of the building design. The Applicant shall demonstrate to the satisfaction of the Planning and Development Services Director that no roof-mounted equipment will be visible from the public right-of-way. 35. All ground mounted equipment, including utility boxes and backflow devices shall comply with all utility and Fire Department requirements and be screened in a manner that does not impede traffic visibility. 36. Proposed lighting shall conform to the Municipal Code requirements and shall not exceed eighteen feet in height measured from the finished grade of the surface. No lighting shall create illumination on an adjacent property which exceeds five footcandles measure at the ground level and lighting shall be designed to reflect away from residential district and public roadways. 37. The Applicant shall contact the Planning Division for a final inspection a minimum two weeks prior to the inspection date requested. 38. Upon approval of these conditions and prior to becoming final and binding, the applicant must sign and return an “Acceptance of Conditions” form. The form and content shall be prepared by the Planning and Development Services Department. Reviewing Agencies Conditions of Approval E.10.a Packet Pg. 225 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 10 of 21 39. The Applicant shall comply with all requirements of the City of Grand Terrace Building and Safety Division, including the Conditions of Approval contained in the Building and Safety Memorandum dated June 23, 2022, attached hereto as Exhibit 1. 40. The Applicant shall comply with all requirements of the City of Grand Terrace Public Works Division, including the Conditions of Approval contained in the Public Works Memorandum dated September 19, 2022, attached hereto as Exhibit 2. 41. Prior to the issuance of building permits, the Applicant shall comply with Burrtec’s requirements pertaining to trash collection services for the residential development. 42. Under no condition shall the Applicant or assignee contract for construction, solid waste, recycling, or green waste services with any independent disposal service. 43. Prior to the issuance of building permits, the Applicant shall comply with the Conditions of Approval contained in the San Bernardino County Fire Department, Office of the Fire Marshal Community Safety Division, Permit Number FPLN-2021- 00065, attached hereto as Exhibit 3. The plans submitted to San Bernardino County shall be the same as the approved plans by the Planning Commission. 44. Prior to the issuance of building permits, the Applicant shall obtain all requisite permits and clearances from Riverside Highland Water Company (RHWCO). 45. Prior to the issuance of building permits, the Applicant shall comply with all the requirements of the Southern California Edison, including the Conditions of Approval included on the memorandum dated May 24, 2021, attached hereto as Exhibit 4. 46. Prior to the issuance of building permits, the Applicant shall obtain all clearances by the City of Colton, Public Works Water and Wastewater Department, including compliance with the Conditions included in the attached letter dated, January 21, 2021, attached hereto as Exhibit 5. 47. Under no condition shall the Applicant or assignee contract for construction, solid waste, recycling, or green waste services with any independent disposal service. Conditions Prior to Final Map Approval: 48. A final soils report shall be submitted to the City for review and approval. Any recommendations included in the soil study shall be incorporated into the design of the precise grading and paving plan as appropriate. 49. The applicant shall prepare improvement plans, in accordance with the City Subdivision Ordinance. E.10.a Packet Pg. 226 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 11 of 21 50. The final tract map shall be revised to correct the accessor parcel map number for the private property located at 21559 Litton Avenue, to APN: 0275-083-01-0000. 51. The street name for the proposed Street “A”, shall be reviewed and approved by the Community Development Services Division. 52. If any public improvement required as part of the approval of the subdivision will not be completed and accepted prior to approval of the final tract map, then prior to a determination of a complete and timely filing of the final tract map, the subdivider, at his expense, shall be required to enter into a subdivision improvement agreement, with the City to complete said public improvements in accordance with the City’s Subdivision Ordinance. Performance of said agreement shall be guaranteed by the security specified in the Subdivision Ordinance (GTMC Title 17) and Section 66499 et seq. of the Subdivision Map Act. 53. Provide a “will serve” letter from the Riverside Highland Water Company. 54. A final tract prepared by, or under the direction of a registered civil engineer authorized to practice land surveying, or a licensed land surveyor, must be processed through the city prior to being filed with the County Recorder. 55. The applicant shall submit a title report and subdivision guarantee showing all fee interest holders, all interest holders whose interest could ripen into a fee, all trust deeds, together with the names of the trustee and all easement holders. The account for this title report shall remain open until the final parcel map is filed with the County Recorder. No easements shall be granted and recorded until after the final map is recorded, unless approved by the City Engineer and subordinated to any City easements by a certification upon the title sheet of the final map, prior to the grant. 56. The applicant shall incorporate into the project design all existing easements within the project boundaries. In the case where easements are proposed to be abandoned, the applicant shall obtain abandonment of said easements from the affected easement holder(s). If this requirement cannot be accomplished, the project shall be redesigned accordingly and as approved by the City. 57. Prior to the issuance of a building permit, the applicant shall provide a draft of the proposed easements document, which shall be recorded at the Office of the County of San Bernardino Recorder’s Office. The easement document shall be reviewed and approved by the City Engineer, City Attorney, and City of Colton prior to recordation, and all cost for said review shall be borne by the Applicant. a. The language of the agreement shall run with the land and shall include exhibits of all proposed easement areas. b. Such easements may include, but are not limited to, sewer, water, electric, gas, telephone, storm drains, detention basins, and landscaping. E.10.a Packet Pg. 227 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 12 of 21 c. The easements documents shall state that structures are not permitted within the easement areas. d. Access rights shall be granted to the City to allowing access over the drywell, drainage, and sewer easements and for public utility easements. e. A $2,000.00 deposit shall be submitted for the review 58. The proposed 10-foot sewer easement located to the east side of Lot 1 shall be revised to a minimum width of 15-feet or as required by Colton, Public Works Water and Wastewater Department. 59. The Applicant shall pay all required fees for the processing and approval of the final tract map. 60. Prior to final map approval, all on-site and off-site curbs, gutters, paving, streetlights, sewer laterals, water services, utilities, grading, storm drain improvements shall be installed or sufficient surety shall be posted to the satisfaction of the City to guarantee their installation. 61. Prior to final map approval, plans and specifications for the water system facilities shall be submitted for approval to the Riverside Highland Water Company. The subdivider shall submit an agreement and other evidence, satisfactory to the City, indicating that the subdivider has entered into a contract with the water purveyor guaranteeing payment and installation of the water improvements. 62. Prior to the final map approval, there shall also be filed with the City Engineer, a statement from the water purveyor indicating subdivider compliance with the Fire Department’s fire flow requirements. 63. Improvement plans for utility connections and services, including water, fire hydrant and/or fire sprinklers, sewer, storm drain, gas, electric, phone, and television, shall be submitted to and approved by the City Engineer. 64. Prior to the final map approval, the Applicant shall obtain clearances by the City of Colton Wastewater & Utilities Department for the boundary street improvements at Litton Avenue and Rosedale Avenue, such clearances shall be demonstrated to the Community Development Services Department. 65. Sewer improvement plans must be approved by the City of Colton Wastewater & Utilities Department. 66. The applicant shall construct the required public improvements. Public improvements shall consist of half street width paving overlay after utility installations on the entire length of the project (minimum 2 inch asphalt overlay with an asphalt grind), curb, gutter, sidewalk, streetlights, signage and striping. Street improvements will be required to extend beyond the frontage of the project to blend the street flows for drainage and traffic. These improvements shall be revised to the satisfaction of the City Engineer. E.10.a Packet Pg. 228 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 13 of 21 67. Final map shall be filed with the County recorder and one (1) Mylar copy of the filed map shall be submitted to the City offices prior to the issuance of any building permits. 68. The Applicant shall submit a composite development plan for review and approval. Said composite development plan shall be recorded with the tentative tract map, and shall depict the following for information purposes: a. Front yard Setbacks b. Easements 69. The project shall be constructed in accordance with all the approved plans and conditions of approval, including but not limited to site plans, grading plans, wall plans, and building elevations. 70. All perimeter walls shall be decorative, which may include the incorporation of split-face block, stone veneer and/or other materials that match the colors and materials of the project. 71. Perimeter walls shall be constructed prior to acceptance of the final map, and adjacent owner authorization shall be obtained prior to construction on shared property lines. 72. The developer shall pay all applicable development impact fees in effect at the time that construction permits are issued by the City. 73. The Project shall be annexed into the City’s Landscape and Lighting Maintenance District for the ongoing maintenance of street lighting, parkway maintenance, graffiti abatement, and street tree maintenance. The LLMD document shall be reviewed and approved by the City Engineer and City Attorney. The applicant shall deposit a minimum of $2,000.00 to cover the City Attorney’s cost of reviewing the LLMD. 74. The applicant shall submit a declaration of covenants, conditions and restrictions (CC&R's) establishing a Homeowner’s Association or equivalent subject to review and approval by the Community and Development Services Director, City Engineer, and the City Attorney approval. Such declaration shall set forth provisions for maintenance of all common areas, water detention structures (dry well), payment of taxes and all other privileges and responsibilities of the common ownership. The CC&R's shall include provisions prohibiting the homeowners' association (HOA) from quitclaiming, selling or otherwise transferring the land held in common ownership to private property owners. The CC&R’s shall include the following provisions: a. The City shall be made a party of the CC&R's. The City's participation shall be specifically limited to enforcement of the HOA's maintenance obligation. E.10.a Packet Pg. 229 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 14 of 21 b. The provisions of approved CC&R's shall not be amended without the prior approval of the Planning and Development Services Director and City Attorney who at his or her discretion may refer the matter to the Planning Commission. Requests for amendments to existing CC&R's shall be submitted to the Planning and Development Services Department. c. The Covenants, Conditions and Restrictions shall disclose the location of the sewer and drainage easements and shall state that no permanent structural encroachments shall be installed within the easements. d. Privacy fencing, concrete stoops or pavers, and plant material, excluding trees, shall be permitted within the easements. However, the property owner shall obtain an encroachment permit, and enter into a hold harmless agreement with the City of Grand Terrace, in the event that these improvements must be removed to access the easement. Replacement of these materials shall be at the expense of the property owner and/or homeowner’s association. 75. The applicant shall deposit a minimum of $2,000.00 to cover the City Attorney’s cost of reviewing the CC&R’s. 76. Appeals shall be filed in compliance with the Municipal Code, Section 17.16.150. 77. The Applicant shall comply with the Conditions of Approval included on concurrent review the Site and Architectural Review 78. The final tract map shall be revised to be consistent with the conditions of approval imposed on the Site and Architectural Review (SA 21-05) Resolution. Concurrent Conditions of Approval - Site and Architectural Review 21-05 Project Specific Conditions 79. The ultimate street improvements shall be provided at the Project’s Street frontage of Litton Avenue and Rosedale Avenue, and the new cul-de-sac “Street A” including but not limited to grinding and repaving to half street, curb, gutter, sidewalk, street lighting, street landscape, fire hydrant, and a dry well drainage easement. 80. The street improvements at La Cadena Drive Street frontage shall include but not limited to curb and gutter, grinding and repaving to the median, a two-foot-high slit barrier retaining wall, and erosion control planting to the slope. 81. Sidewalk improvements shall be provided along street frontage of the private property located at 21559 Litton Avenue (APN:0275-083-01-000), the improvements shall include: a. Sidewalk and curb and gutter fronting Rosedale Avenue E.10.a Packet Pg. 230 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 15 of 21 b. Sidewalk, curb and gutter, and parkway landscape fronting Litton Avenue 82. The Applicant shall identify the existing power lines easement located to the east city’s right-of-way slope, fronting La Cadena. Any work performed in the easement area will require authorization from the easement holder (Southern California Edison) to be submitted to the Development Services Department. 83. The slope located on the east city’s right-of-way shall be landscaped with stabilization and erosion control planting material, shall be irrigated, and shall be included on the Landscape and Irrigation Plan for review and approval. 84. The Landscape and Irrigation Plan shall include a variety of drought tolerant and pollinating plants. The streetscape shall include Southern Magnolia, ground cover, and drought tolerant planting at Rosedale Avenue and “Street A”, and Holy Oak, ground cover, and drought tolerant planting at Litton Avenue. 85. The Landscape and Irrigation Plan shall include a planning table with the number of proposed planning material. 86. The Landscaping and Irrigation plan shall be reviewed and approved by the Planning Division. 87. The Project shall include a minimum of five feet concrete path area around the sides and rear perimeter of the proposed residences. 88. The Project’s perimeter decorative block walls shall be 6-feet high to the perimeter sides and rears of each proposed lot. The wall height shall be measured from the highest grade. 89. The Proposed decorative block wall proposed along the eastern perimeter Lot Line (Lot 2 and Lot 3) shall be constructed at 8-feet high minimum. 90. The proposed residential lots shall include a side access gate constructed of metal or vinyl. 91. Air conditioning heating and cooling units shall be ground mounted. The Applicant shall show the ground mounted units on the site plan, grading plan, and floor plans. 92. Prior to issuance of a building permit for any building, all grading shall be completed and retaining and screen walls, dry and wet utilities, drainage facilities driveways shall be installed. 93. The construction plans shall include description and location of all proposed easements. The shared easements shall be depicted on the Grading Plan and Site Plan, and Landscape and Irrigation Plan. E.10.a Packet Pg. 231 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 16 of 21 94. The Applicant shall remove all the existing trees at Litton Avenue and Rosedale Avenue to accommodate the proposed street improvements and plant the proposed eight (8) Holy Oak Street trees along the 370-linear feet at Litton Avenue and plant the proposed fifteen (15) Magnolia Grandiflora trees at Rosedale Avenue and the proposed cul-de-sac street. 95. The Applicant shall relocate the proposed fire hydrant located at the eastern end of the cul-de-sac approximately 20-25 feet to the west to approximately front the shared property line of Lot 3 and Lot 4. 96. The Applicant shall provide to potential buyers the city’s zoning information Chapters 18.10-Residential and 18.53-AG Agricultural Overlay District as information for allowable uses and requirements. Landscaping 97. Prior to the issuance of building permits, the Applicant shall submit three (3) copies of the landscape and irrigation plan prepared by a state licensed landscape architect, to be reviewed and approved by the Planning and Development Services Department. The landscape and irrigation plans shall be prepared in accordance with the City’s Water Efficient Landscape Ordinance (Chapter 15.56) Landscaping Standards contained in Chapter 18.60 of the Zoning Code and in compliance with the most recent version of the State Model Ordinance. The plans shall demonstrate the following: a. Include the total square footage of the proposed landscape area including grass areas, planter areas and ground cover area. b. Include an image of the proposed plant material b. Ensure that proposed plant material, at maturity, will maintain clear line visibility at all intersections as determined by the City’s Traffic Engineer. c. Plant material adheres to spacing recommendations based on plant and shrub species. d. Note the material that will placed in planter areas, i.e. mulch, decorative rock, etc. e. Incorporate drip irrigation system to all planting areas, except turf. f. All trees shall be a minimum size of 24-inch box, having a minimum height of 10-feet at the time of planting. g. Shrubs shall be a minimum of 1-gallon size at the time of planting. h. Plants shall be a minimum of 5-gallon size at the time of planting. E.10.a Packet Pg. 232 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 17 of 21 i. Ground cover shall be healthy, dense foliage, and well routed cuttings, or one-gallon container plants. j. The spacing of trees and shrubs shall be appropriate for the species used. k. Twenty percent of planting material shall be pollinating plants. l. Approval must be obtained for removal of all trees having a trunk diameter of 10 inches or more measured 48 inches above existing grade. m. Show location and number of existing trees to be removed on the legend. n. Monument signs shall be approved separately by the Planning Division and shall include four square feet of landscape area for each square foot of sign area (measured by one side only). o. Submit an initial deposit of $2,000 deposit for landscape plan check review. p. The Applicant shall contact the Planning and Development Services Department for a final inspection a minimum one week prior to the inspection date requested. 98. Final landscape and irrigation plans shall be in substantial conformance with the approved conceptual landscape plan and these Conditions of Approval. 99. The landscaping plan shall be consistent with the site plan and any and all wall and fencing shall be illustrated on the final landscape plan. 100. Landscape plans shall depict the utility laterals, concrete improvements, and tree locations. Any modifications to the landscape plans shall be reviewed and approved by the Public Works and Planning Division prior to issuance of permits. 101. The Applicant and/or future property owner shall maintain the property and landscaping in a clean and orderly manner and all dead and dying plants shall be replaced with similar or equivalent type and size of vegetation within 60 days. 102. Tree removal or replacement shall be in accordance with the Tree Removal Municipal Code requirements. Signs 103. Signs are not approved as a part of this permit. Prior to establishing any new signs, the Applicant shall submit an application, and receive approval, for a sign permit from the Planning Division (pursuant to Chapter 18.80 of the Grand Terrace Municipal Code) and a building permit for construction of the signs from the Building Division, as applicable. Mitigation Monitoring Program E.10.a Packet Pg. 233 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 18 of 21 104. The Applicant shall comply with all applicable Mitigation Monitoring Report Program (MMRP) and shall comply with the Monitoring and Reporting Program Checklist (if applicable). 105. In the event historic or prehistoric resources are discovered, a qualified archaeologist shall be contacted to determine if reporting the finds is required and if further monitoring during site earthwork is warranted. If, at any time, resources are identified, the archaeologist shall make recommendations to the City of Grand Terrace for appropriate mitigation measures in compliance with the guidelines of the California Environmental Quality Act. 106. If human remains or funerary objects are encountered during any activities associated with the Project, State Health and Safety Code 7050.5 states that no further disturbance shall occur until the County Coroner has made a determination of origin and disposition pursuant to Public Resources Code Section 5097.98. The County Coroner must be notified of the find immediately. If the remains are determined to be Native American, the County Coroner will notify the Native American Heritage Commission, which will determine and notify a Most Likely Descendant. With the permission of the landowner or his/her authorized representative, the MLD may inspect the site of the discovery. The MLD shall complete the inspection within 48 hours of notification by the NAHC. The MLD will have the opportunity to offer recommendations for the disposition of the remains. 107. In the event paleontological resources be uncovered during grading, a qualified vertebrate paleontologist shall be contacted to perform a field survey to determine and record any non-renewable paleontological resources found on-site. The paleontologist shall determine the significance and make recommendations to the City of Grand Terrace for appropriate mitigation measures in compliance with the guidelines of the California Environmental Quality Act. All identified and/or recovered paleontological/fossil specimens must be professionally researched, analyzed, reported, and curated in accordance with the San Bernardino County Museum policies and guidelines. 108. A Native American Monitor from the interested tribe(s) along with an archaeological monitor shall be present during all ground disturbing proceedings including but not limited to, all construction/demolition based activities, as well as archaeological surveys, testing and data recovery. 109. Prior to the issuance of any ground disturbance-related permits, the City shall contact interested tribes to facilitate and coordinate communications with the contractor to develop a mutually acceptable Tribal Monitoring Agreement. This agreement shall be approved by the City prior to the issuance of any ground disturbance-related permits and its implementation in the field enforced by the City thereafter. 110. If an archaeological deposit or tribal cultural resource is discovered with the Project area, ground disturbing activities shall be suspended 100 feet around the E.10.a Packet Pg. 234 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 19 of 21 resource(s) and an Environmentally Sensitive Area (ESA) physical demarcation/barrier constructed. Representatives from interested tribes, the contractor, and the City Planning and Development Services Department shall confer regarding treatment of the discovered resource(s). A treatment plan shall be prepared, reviewed and adopted by all Parties, and then implemented to protect the identified resources from damage and destruction. The treatment plan shall contain a research design to evaluate the resource for significance under both NHPA and CEQA criteria. Then, should the resource be determined to be significant under either federal- or state-level criteria, and should the resource not be a candidate for avoidance or preservation in place, a data recovery plan shall be developed, reviewed by all Parties, and implemented. The research design and/or data recovery plan shall list the sampling procedures appropriate to ascertain the boundaries, nature, and content of the resource in accordance with current, professional archaeological best practices. Additionally, the data recovery plan will be designed to exhaust the research potential of the resource in accordance with current professional archaeology standards. 111. All draft reports containing the significance and treatment findings and data recovery results shall be prepared by a SOI-qualified archaeologist and submitted to the City of Grand Terrace Planning and Development Services Department and the consulting Native American Tribes for their review and comment. All final reports are to be submitted to the local CHRIS Information Center, the City of Grand Terrace, and the consulting Native American Tribes. 112. All culturally appropriate and professionally proper procedures shall be followed with respect to all artifacts and remains affiliated with Native peoples whether prehistoric, protohistoric, or historic. Any sacred/ceremonial objects or objects of cultural patrimony discovered within the Project area are to be offered to the NAHC-identified Most Likely Descendant (MLD) of record for appropriate treatment and all claims of ownership to such materials waived by the applicant/developer/landowner. All other artifacts shall be permitted to be either (1) left in situ should avoidance or protection in place be guaranteed or (2) reburied, on site, in a location that will be protected from future disturbance vis a vis Project plans, conservation/preservation easements, deed riders, etc. In the event avoidance, preservation in place, or on-site reburial are not an option for some artifacts, the applicant/developer/landowner shall relinquish all ownership and rights to this material and provide the artifacts to representatives of interested Tribes to jointly and collaboratively conduct proper treatments and delineate long- term care protocols. 113. Where appropriate and agreed upon in advance by interested tribes, the SOI- qualified archaeologist shall conduct analyses of certain artifact classes (including, but not limited to, shell, non-human bone, ceramic, stone) if required by CEQA, Section 106 of NHPA, the Project’s mitigation measures, or conditions of approval for the Project. Furthermore, upon completion of authorized and mandatory archeological analysis, the contractor shall provide said artifacts to interested tribes—jointly and simultaneously --within sixty (60) days from the completion of E.10.a Packet Pg. 235 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 20 of 21 analyses and not to exceed one hundred and twenty (120) days after the initial recovery of the items from the field. 114. In the event that any human remains are discovered during implementation of the Project, the City of Grand Terrace and the Contractor shall immediately contact the Coroner and interested tribes. If the Coroner recognizes the human remains to be those of a Native American or has reason to believe that they are those of a Native American, the Coroner shall ensure that notification is provided to the NAHC within twenty-four (24) hours of the determination, as required by California Health and Safety Code § 7050.5 (c). 115. The NAHC-identified MLD, shall be allowed under California Public Resources Code § 5097.98 to inspect the site of the discovery and make determinations as to how the human remains and funerary objects shall be treated and disposed of with appropriate dignity. The MLD, applicant/developer/landowner, and Lead Agency agree to discuss in good faith what constitutes "appropriate dignity" as that term is used in the applicable statutes. As required by California Public Resources Code § 5097.98, the MLD shall complete its inspection within twenty-four (24) hours of receiving notification from either the Contractor or the NAHC. All parties are aware that the MLD may wish to rebury the human remains and associated ceremonial and cultural items (artifacts) on or near the site of their discovery, in an area that shall not be subject to future subsurface disturbances. The Contractor shall accommodate on-site reburial in a location mutually agreed upon by the Parties. The site of any reburial of Native American human remains or cultural artifacts shall not be disclosed and shall not be governed by public disclosure requirements of the California Public Records Act. The Coroner, parties, and Lead Agency, will be asked to withhold public disclosure information related to such reburial, pursuant to the specific exemption set forth in California Government Code § 6254 (r). 116. Upon approval of these conditions and prior to becoming final and binding, the Applicant must sign and return an “Acceptance of Conditions” form. The form and content shall be prepared by the Planning and Development Services Department. E.10.a Packet Pg. 236 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Page 21 of 21 PASSED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 25th day of October 2022. AYES: NOES: ABSENT: ABSTAIN: ATTEST: __________________________ __________________________ Debra L. Thomas Darcy McNaboe City Clerk Mayor E.10.a Packet Pg. 237 At t a c h m e n t : P C R e s o l u t i o n _ T T M 2 0 3 9 5 _ 1 0 . 1 3 . 2 0 2 2 [ R e v i s i o n 1 ] ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Building and Safety Conditions of Approval Date: June 23, 2022 File No: TTM 21-01, SA 21-05, E 21-03 Applicant: Tony Jara, representing Jay Gees, LLC Address of Applicant: 5318 El Rivino Rd. Riverside, CA 92509 Project Address: 11899 Rosedale Avenue APN: 0275-083-03-0000 Provide four (4) sets of construction plans and documentation for plan review of the proposed project. Below you will find a list of the plans and documents Building and Safety will need for plan review. The initial plan review will take approximately two weeks on most projects. Provide the following sets of plans and documents. Building and Safety submittal required at first plan review. (4) Architectural Floor Plans & Elevations (2) Structural Plans (2) Structural Calculations (4) Plot/Site Plans (2) Electrical Plans (2) Electrical Load Calculations (2) Plumbing Plans/Isometrics, Water, Sewer and Gas (2) Mechanical Plans (2) Mechanical Duct Layout Plans (2) Roof and Floor Truss Plans if applicable (2) Title 24 Energy Calculations (2) Precise Grading Plans (2) Water Quality Management Plan (WQMP) (2) Soils Reports (2) Stormwater Pollution Prevention Plan (SWPPP) (2) Best Management Plan (BMP) E.10.b Packet Pg. 238 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Building and Safety Conditions of Approval Building & Safety General Information All structures shall be designed in accordance with the currently adopted building codes by the State of California and City of Grand Terrace Municipal Code as adopted at time of plan submittal. Note if a new code has been adopted prior to the submittal, then all structures shall be designed to the current model code year. The Developer/Owner is responsible for the coordination of the final occupancy. The Developer/Owner shall obtain clearances from each department and division prior to requesting a final building inspection from Building & Safety. Each agency shall sign the bottom of the Job Card or Certificate of Occupancy Clearance Form. Building & Safety inspection requests can be made twenty-four (24) hours in advance for next day inspection. Please contact 909-825-3825. You may also request inspections at the Building & Safety counter. All construction sites must be protected by a security fence and screening. The fencing and screening shall be maintained at all times to protect pedestrians. Temporary toilet facilities shall be provided for construction workers. The toilet facilities shall be maintained in a sanitary condition. Construction toilet facilities of the non sewer type shall conform to ANSI ZA.3. Construction projects which require temporary electrical power shall obtain an Electrical Permit from Building & Safety. No temporary electrical power will be granted to a project unless one of the following items is in place and approved by Building & Safety and the Planning Division. (A) Installation of a construction trailer, or, (B) Security fenced area where the electrical power will be located. Installation of construction/sales trailers must be located on private property. No trailers can be located in the public street right of way. Separate plan submittals and permits are required for all accessory structures including but not limited to patios, block walls, storage buildings, community playgrounds, etc. Pursuant to the California Business and Professions Code Section 6735, most projects are required to be designed by a California Licensed Architect or Engineer. The project owner E.10.b Packet Pg. 239 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Building and Safety Conditions of Approval or developer should review the section of the California Codes and comply with the regulation. Building & Safety Conditions 1. A building permit shall be required for the proposed development with compliance to the currently adopted California Building Codes and City of Grand Terrace Municipal Code. 2. Prior to the issuance of a building permit, the applicant shall pay any associated Development Impact Fees to the City; this also includes school fees, Public Works fees, and outside agency fees including but not limited to Colton Wastewater, Riverside-Highland Water Co., and utilities. Copies of receipts shall be provided to Building & Safety prior to permit issuance. 3. All construction projects shall comply with the National Pollutant Discharge Elimination Systems (NPDES), and the San Bernardino County MS-4 Storm Water Permit. 4. Prior to building permit issuance, the applicant shall establish haul services for construction waste material with Burrtec to facilitate the recycling of all recoverable/recyclable material as required per the California Green Code and City of Grand Terrace Municipal Code. No self-hauling is allowed. 5. The applicant shall submit a completed Construction & Demolition (C&D) Waste Diversion Program / Waste Management Plan (WMP) form along with the required C&D deposit based per square footage of construction and/or demolition prior to building permit issuance. 6. Prior to issuance of building permits, site grading certification and pad certifications shall be submitted to Building & Safety. Prior to concrete placement, submit a certification for the finish floor elevation and setbacks of the structures. The certification needs to reflect that the structure is in conformance with the Precise Grading Plans. Compaction reports shall accompany pad certifications. The certifications are required to be signed by the engineer of record. E.10.b Packet Pg. 240 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Building and Safety Conditions of Approval 7. Installation of conduit and other components to easily accommodate future installation of electric vehicle chargers shall be made inside the garage. 8. Separate permits will be required for the following items: block/retaining walls, PV solar panels, and any other items requiring a permit per California Residential Code (CRC) 105.1. 9. Installation of photovoltaic (PV) solar panels on dwellings shall be required, please include in set of plans for plan check review. E.10.b Packet Pg. 241 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Public Works Comments Date: September 19, 2022 File: Applicant: Tony Jara, representing Jay Gees, LLC Site Location: 11899 Rosedale Avenue, APM 0275-083-03-0000 Subject: TTM 20395 Subdivision of 3.8 acres into 6 single family lots Proposed Conditions of Approval: 1. All work shall be in accordance with the latest edition of the Standard Specifications for Public Works Construction (Green Book), County of San Bernardino Standards, and City of GrandTerrace Standards.2.Design and construct all public utilities to serve the site in accordance with City standards and requirements of the serving utility, including gas, electric, telephone, water, sewerand cable TV.3. Proposed public sewer improvement plans shall be submitted to the City of Colton WastewaterDepartment and Public Works for plan review and approval. 4. Proposed public water improvements plans shall be submitted to Riverside Highland WaterCompany for review and approval.5. Proposed water improvement plans for fire hydrants shall be submitted to the County of SanBernardino Fire Department for plan review and approval.6.All overhead utilities shall be undergrounded if not already.7.Pavement restoration and trench repair for any street cuts shall be in conformance with San Bernardino County standards or as approved by the City Engineer.8. The developer shall restore any public improvements damaged during construction.9. A drainage study will be required for the project and prepared in accordance with the San Bernardino County hydrology manual. Any drainage improvements needed to mitigate increasein runoff (for the 100-year storm event), mitigate downstream impacts, and protect thedevelopment shall be designed and constructed at the developer’s expense.10.Concentrated drainage directed to the public street shall not be conveyed across the sidewalk ordriveway approaches, but rather through parkway culverts/under sidewalk drains in accordancewith San Bernardino County, SPPWC standards plans or as approved by the City Engineer.11. All proposed publicly maintained storm drains shall be reinforced concrete pipe (RCP).12. All proposed curb inlet catch basins shall be constructed per San Bernardino Countystandard plan 206 or SPPWC standard plan 300-3. Catch basins shall be equipped with a trash screen and filtration device as approved by the City Engineer. E.10.b Packet Pg. 242 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) 13. A storm drainage easement shall be dedicated on the tract map for the proposed public drainage facilities. Said easement shall be 25 feet minimum width for the proposed 18” storm drain and be widened as necessary to accommodate the proposed infiltration drywell systems. 1. A final Water Quality Management Plan (WQMP) will be required during final engineering stage. If an infiltration treatment BMP is proposed as part of the design, site specific infiltration testing shall be conducted to substantiate the design infiltration rate used in the WQMP calculations. 14. All construction projects shall comply with the National Pollutant Discharge Elimination Systems (NPDES). Verification of coverage under the State Construction General Permit (CGP) will be required before a grading permit will be issued by providing a copy of the Stormwater Pollution Prevention Plan (SWPPP) and printing the WDID # on the Onsite Grading Plan. 15. A soils report shall be submitted and based on soil samples taken from the site and should analyze the existing geotechnical conditions of the site to determine if the existing soil is adequate for the development and safe from hazardous or deleterious materials. 16. All proposed pavement sections shall be substantiated with pavement section recommendations (based on the appropriate R and TI values), which shall be included as part of the project soils report. 17. Backflow preventers shall be installed for any building with the finished floor elevation below the rim elevation of the nearest upstream manhole. 18. An Onsite Improvement Plan shall be prepared by a California registered civil engineer and include a grading plan, erosion control plan, onsite water and sewer improvements, onsite storm drain system, onsite signing & striping, and all necessary details for construction of the proposed improvements. 19. An Offsite Street Improvement Plan for work within the public right-of-way, prepared by a California registered civil engineer, shall be submitted for review and approval prior to construction. All offsite improvements shall be clearly called out/detailed on the plan. 20. If non-standard retaining walls are proposed for this project, supporting structural calculations shall be submitted for review and approval. 21. A Landscape & Lighting Maintenance District shall be formed to maintain the parkway landscaping and street lighting. 2. Survey Monumentation. If any activity on this project will disturb any land survey monumentation, including but not limited to vertical control points (benchmarks), said monumentation shall be located and referenced by or under the direction of licensed land surveyor or registered civil engineer authorized to practice land surveying prior to commencement of any activity with the potential to disturb said monumentation, and a corner record or record of survey of the references shall be filed with the County Surveyor pursuant to Section 8771(b) Business and Professions Code. Litton Avenue (Local Street - 60’ Right-of-way, 36’ Roadway per the General Plan) 22. Construct 8” Curb & Gutter (C&G) along project frontage and frontage of APN 0192- 281-01 per San Bernardino County standard 115. Although the City of Grand Terrace General Plan indicates a 36’ (18’ half width) roadway width for local streets, a 20’ half width shall be provided for consistency with the adjacent roadway improvements within the City of Colton. E.10.b Packet Pg. 243 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) 23. Construct ADA compliant curb ramp at the southeast corner of Litton Ave and Rosedale Ave. 24. Construct non-curb adjacent sidewalk along project frontage and frontage of APN 0192-281-01 per San Bernardino County standard plan 109, type “B”. 25. The roadway pavement is in poor condition. The pavement along the frontage of the project (up to the center line) shall be reconstructed/rehabilitated in accordance with pavement section recommendations which shall be detailed in the soils report based on the “R” value of the subgrade and traffic index. A minimum 2 foot wide and 0.1’ deep grind/overlay shall be provided for all asphalt joins. 26. Construct one street light along the southerly side of Litton Ave within the project frontage. Said street light shall be LED and be located midway between the two existing street lights that are located along the northerly side of the street. Rosedale Avenue (Local Street - 60’ Right-of-way, 36’ Roadway per General Plan) 27. Construct 8” Curb & Gutter (C&G) along project frontage and frontage of APN 0192- 281-01 per San Bernardino County standard 115. Although the City of Grand Terrace General Plan indicates a 36’ (18’ half width) roadway width for local streets, a 20’ half width shall be provided for consistency with the adjacent roadway improvements within the City of Colton. 28. Construct curb adjacent sidewalk along project frontage and frontage of APN 0192-281- 01 per San Bernardino County standard plan 109, type “C”. 29. Construct ADA compliant curb ramp at the southeast corner of Litton Ave and Rosedale Ave. 30. New pavement for widening shall be constructed in accordance with pavement section recommendations which shall be detailed in the soils report based on the “R” value of the subgrade and traffic index. A minimum 2 foot wide and 0.1’ deep grind/overlay shall be provided for all asphalt joins. 31. Provide a 0.1’ deep asphalt grind & overlay along the project frontage (up to the center line). La Cadena Drive (Divided Major Highway - 120’ Right-of-way, 64’ Roadway per General Plan) 32. Construct 8” Curb & Gutter (C&G) along project frontage per San Bernardino County standard 115. Curb face shall be located 32’ from the westerly raised median curb. 33. Provide a 0.17’ deep asphalt grind & overlay along the project frontage (up to the westerly raised median curb face). 34. Lane line and bike lane striping shall be restored after the grind & overlay work. 35. The existing parkway slope along the project frontage is susceptible to erosion and shall be graded/cut back to reduce the slope ratio from a 1:1 to a 1.5:1 min (2:1 preferred) with the toe of slope beginning 2 feet from the back of the new curb & gutter. Jute netting (biodegradable) shall be installed on the cut slope and hydroseeded with a native mix per Caltrans specifications. Due to the slope ratio, an irrigation system shall not be installed. In lieu of an irrigation system, hydroseeding shall be installed late fall to early winter. E.10.b Packet Pg. 244 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Interior cul-de-sac (Local Street - 60’ Right-of-way, 36’ Roadway) 36. Dedicate a 60’ wide right-of-way for the proposed new interior street. The right-of-way at the cul-de-sac bulb shall be 52 foot radius to allow continuation of a 12 foot wide parkway. 37. Construct 8” Curb & Gutter (C&G) per San Bernardino County standard 115. Curb face shall be located 18’ from center line. 38. Construct sidewalk per San Bernardino County standard plan 109, type “B”. 39. Construct cul-de-sac bulb per San Bernardino County standard plan 120. 40. Construct residential driveway approaches per San Bernardino County standard plan 128. 41. Construct 20’ curb returns at intersection with Rosedale Avenue with ADA accessible ramps. Curb returns and ramps shall be in accordance with San Bernardino County standard plan 110. 42. Dedicate sufficient Right-of-Way to accommodate the required curb returns and ramps. 43. Construct cross gutter and spandrel at intersection with Rosedale Avenue per San Bernardino County standard plan 119. 44. Construct two street lights along the proposed interior street. Said street lights shall be LED and be located at the intersection with Rosedale and the cul-de-sac bulb as shown on the submitted TTM. Required Submittals 45. Geotechnical Investigation 46. Precise Grading and Erosion Control Plan. An asbuilt grading plan shall be submitted and approved for final project acceptance. 47. Final Water Quality Management Plan (WQMP) 48. Drainage Study Offsite Street Improvement Plan. Upon completion of offsite improvements, offsite asbuilt plans shall be submitted and approved for final project acceptance. 49. Offsite Storm Drain Improvement Plan (may be included as part of the Street Improvement Plan set) 50. Signing & Striping Plan (may be included as part of the Street Improvement Plan set) 51. Street Lighting Plan 52. Pad Certifications prepared by a licensed Civil Engineer registered in the State of California shall be submitted and approved prior to issuance of building permits. 53. Structural Calculations (for non-standard retaining walls if applicable) 54. Final Tract Map. Map shall be submitted with supporting documents for review and approval. The map shall be recorded prior to building permit issuance. If there are questions, please contact Johnny Ghazal PE, QSD, consulting civil engineer. jghazal@willdan.com, 909-963-0563 E.10.b Packet Pg. 245 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) San Bernardino County Fire Department Community Safety Division Plan Review Comments Date Reviewed:05/18/2021 Reviewed By:Mike Havens Project Type:Fire Planning/DRC Permit Number:FPLN-2021-00065 Project Name:Rosedale 6 Lots Project Description:This Location:11899 ROSEDALE AVE GRAND TERRACE, CA 92324 APN:0275083030000 Dear Applicant, San Bernardino County Fire Department has completed review of the proposed project. Please see the FIRE COMMENTS attachment below. Redline Plans can be downloaded from the San Bernardino County EZ Online Permitting (EZOP) system at http://av-ezop.sbcounty.gov. Guidance on how to access and navigate the EZOP portal can be found at http://wp.sbcounty.gov/ezop/faqs/videos/. If you have any questions please contact County Fire at (909) 386-8400. Sincerely, The Office of the Fire Marshal Community Safety Division San Bernardino County Fire Department Page 1 of 2v.19.02.0 E.10.b Packet Pg. 246 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) Review Date:05/18/2021 Permit Number:FPLN-2021-00065 Location:11899 ROSEDALE AVE GRAND TERRACE, CA 92324 APN:0275083030000 FIRE COMMENTS Turnaround Turnaround. An approved turnaround shall be provided at the end of each roadway one hundred and fifty (150) feet or more in length. Cul-de-sac length shall not exceed six hundred (600) feet; all roadways shall not exceed a 12 % grade and have a minimum of forty-five (45) foot radius for all turns. In the Fire Safety Overlay District areas, there are additional requirements. Water System Prior to any land disturbance, the water systems shall be designed to meet the required fire flow for this development and shall be approved by the Fire Department. The required fire flow shall be determined by using California Fire Code. The Fire Flow for this project shall be: ___1500____ GPM for a ___2___hour duration at 20 psi residual operating pressure. Additional Requirements In addition to the Fire requirements stated herein, other onsite and offsite improvements may be required which cannot be determined from tentative plans at this time and would have to be reviewed after more complete improvement plans and profiles have been submitted to this office. 1. Access Road to be 26' from curb face to curb face, indicate on plans 2. Indicate the Turnaround dimensions per Standard A-1 Standard A-1 FIRE APPARATUS ACCESS ROAD DESIGN, CONSTRUCTION AND MAINTENANCE This standard shall apply to the design, construction and maintenance of all new fire apparatus access roads within the jurisdiction, as well as fire apparatus access roads at existing facilities when applied at the discretion of the fire code official. Standard W-2 ONSITE FIRE PROTECTION WATER SYSTEMS This standard establishes minimum requirements for installation and maintenance of all private fire hydrants and appliances related to an onsite fire protection system. Page 2 of 2v.19.02.0 E.10.b Packet Pg. 247 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) City of Grand Terrace May 24, 2021 22795 Barton Rd. Grand Terrace, CA 92313-5295 Attention: Planning Department/Haide Aguirre Subject: Tentative Parcel Map No. 20395 Please be advised that the division of the property shown on Tentative Parcel Map No. 20395 will not unreasonably interfere with the free and complete exercise of any easements and/or facilities held by Southern California Edison Company within the boundaries of said map. This letter should not be construed as a subordination of the Company’s rights, title and interest in and to said easement(s), nor should this letter be construed as a waiver of any of the provisions contained in said easement(s) or a waiver of costs for relocation of any affected facilities. In the event that the development requires relocation of facilities, on the subject property, which facilities exist by right of easement or otherwise, the owner/developer will be requested to bear the cost of such relocation and provide Edison with suitable replacement rights. Such costs and replacement rights are required prior to the performance of the relocation. If you have any questions, or need additional information in connection with the subject subdivision, please contact me at (909) 274-1078. Jeff Clark Title and Real Estate Services Vegetation & Land Management E.10.b Packet Pg. 248 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) CITY OF COLTON PUBLIC WORKS DEPARTMENT DAB MEETING DATE: JANUARY 21, 2021 TO: CITY OF GRAND TERRACE PLANNING AND DEVELOPMENT SERVICES DEPARTMENT/APPLICANT FROM: PUBLIC WORKS DEPARTMENT SUBJECT: DAB 21-01 SW CORNER OF LA CADENA DRIVE AND LITTON AVENUE – CONDITIONS OF APPROVAL FILE INDEX NUMBER: DAB 21-01 APPLICANT: Tony Jara PROPERTY OWNER: Tony Jara PROPERTY LOCATION: 11899 Rosedale Avenue ASSESSORS PARCEL NO.’s: 0275-083-03-0000 PROJECT DESCRIPTION Proposing the subdivision and the construction of six single family residences on a 3.8-acre lot, located at 11899 Rosedale Avenue (APN: 0275-083-03-0000), zone R 1-20_Very Low Density Residential with an Agricultural Overlay. A. STREET IMPROVEMENTS: 1. If there are any utility cuts within the City of Colton right-of-way, a final grind and overlay (1.5”minimum) repair along the existing asphalt concrete along project frontage shall be made in accordance with the Public Works Construction “Greenbook” Standards and as approved by the City Engineer. 2. B. WASTEWATER REQUIREMENTS 1. The development shall meet all the requirements as set forth by the water/wastewater department for sewer facilities. 2. All construction shall conform to the current edition of the specifications for Public Works Construction (Green Book), and the current standards and specifications of the City of Colton Wastewater Department. E.10.b Packet Pg. 249 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) 3. Submit Sewer Improvement Plans to the City Engineer for review and approval. The proposed sewer shall connect into the City’s sewer system. 4. As part of the submittal package, a sewer feasibility study shall be provided for approval. 5. All sewer lines shall be extra strength vitrified clay pipes, and the sewer main line shall be a minimum of 8” diameter or the size will be finalized during the design phase. 6. A sewer check valve shall be provided with a finished pad elevation lower than the rim elevation of the immediate up-stream sewer manhole. 7. Show on the plans the location of sewer mainline, nearest manhole, lateral serving the project and configuration of tie-in mainline. 8. A note shall be placed on the plans stating the lateral location shall be marked on the curb with “S” for sewer. 9. All wastewater capacity fees must be paid prior to obtaining the certificate of occupancy. Additional capacity fees may apply if the actual discharge exceeds the estimated flow established during initial approval. Service will be terminated if the fees are not paid. 10. All connection fees and charges shall be levied at the rate scheduled by the City of Colton City Council at the time of payment by the developer. C. BONDINGS 1. Amount of bonding of sewer public improvements shall be as follows: Faithful Performance Bond……………………... 100% of Estimated Cost Labor & Material Bond………………………..…. 100% of Estimated Cost 2. Unit prices for bonding estimates shall be those specified or approved by the City Engineer. 3. For release of Faithful Performance Bond/Labor & Material Bond, all improvements must be complete, all conditions of approval satisfied, final inspection performed and 10% maintenance bond for a period of one year submitted to the City Engineer’s Office.. Upon Acceptance and Approval of the improvements by the City of Colton, the Faithful Performance and Labor & Material Bonds will be released. 4. The 10% Maintenance Bond be authorized for final release at the end of the one year period, subject to the final inspection clearance of the project. D. FEES 1. Public Works Inspection fees shall be paid prior to the issuance of building permits in accordance with the fee schedule in effect at the time the fees are paid. Public Works permits are required prior to construction within the public right of way. E.10.b Packet Pg. 250 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) 2. Sewer Connection fees shall be paid on a per lot basis, prior to issuance of building permits, for each lot within this subdivision in accordance with the fee schedule in effect at the time the fees are paid. E. IMPROVEMENT PLANS 1. Improvement Plans for the proposed development shall be prepared as a separate set of drawing for each of the following categories a. Sewer Plans F. CONSTRUCTION & MAINTENANCE OF PUBLIC IMPROVEMENTS 1. Sewer laterals shall be maintained by individual property owners in accordance with the existing City policy. 2. All required public improvements within the City of Colton shall be completed, tested, and approved by the Engineering Division prior to the issuance of any Certificate of Occupancy. 3. In accordance with § 9.27.190 (E) of the City of Colton Municipal Code, the applicant shall immediately remove any graffiti present within the City of Colton boundary limits including on any traffic control devices set up on within the City of Colton public right-of- way. 4. Submit traffic control plans to the City of Colton Public Works for review and approval prior to any construction in the public right-of-way which may encroach into the City of Colton boundary limits. 5. If traffic loops are cut or damaged during construction activities, the developer shall be responsible for repairing the damages accordingly. E.10.b Packet Pg. 251 At t a c h m e n t : E x h i b i t s _ C o n d i t i o n s o f A p p r o v a l ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) C:\users\dthomas\appdata\roaming\iqm2\minutetraq\grandterracecityca@grandterracecityca.iqm2.com\work\attachments\7646.doc 22795 Barton Road, Grand Terrace, California, 92313-5295 909/824-6621 Fax 909/783-2600 CITY OF GRAND TERRACE NOTICE OF EXEMPTION TO: Clerk of the Board of Supervisors FROM: Planning and Development County of San Bernardino Services Department 385 N. Arrowhead Avenue, 2nd Floor City of Grand Terrace San Bernardino, CA 92415-0130 22795 Barton Road Grand Terrace, CA 92313 Project Title: Tentative Parcel Map 21-01 (Tract Map No. 20395) and Environmental 21-03 Project Location – Specific: The project is located at 11899 Rosedale Avenue, in the County of San Bernardino, APN: 0275-083-03-0000 Description of Project: Approval by the City Council to subdivide a 3.8-acres into six one-story single-family lots Name of Public Agency Approving Project: Grand Terrace City Council Name of Person or Agency Carrying out Project: Tony Jara, representing Jay Gees, LLC Exempt Status: California Code of Regulations, Title 14, Section 15332, Infill Development Projects Reasons Why Project is Exempt: Section 15332 of the California Environmental Quality Act (CEQA) Guidelines. This section exempts infill projects when the project is compatible with the General Plan and Zoning Code, is on less than five acres substantially surrounded by urban uses, it is devoid of habitat for biological resources, the site is served by public utilities and services, and there are no impacts to traffic noise, air quality or water quality. Lead Agency or Contact Person: Area Code/Telephone (909) 954-5177 ______________________________ _________________ Haide Aguirre, Senior Planner Date Planning and Development Services Division E.10.c Packet Pg. 252 At t a c h m e n t : N o t i c e o f E x e m p t i o n ( T T M 2 1 - 0 1 ( T e n t a t i v e T r a c t M a p N o . 2 0 3 9 5 ) a n d E 2 1 - 0 3 ) AGENDA REPORT MEETING DATE: October 25, 2022 Council Item TITLE: Funding for PARS Section 115 Trust PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: Consider the amount for the initial funding for the PARS Section 115 Trust and select the Investment Strategy. 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability by addressing funding options to reduce future pension costs. BACKGROUND: At its meeting of September 13, 2022, the City Council adopted Resolution 2022-50 authorizing participation in the PARS Post-Employment Benefits Trust Program Administered by Public Agency Retirement Services (PARS) which is a Section 115 Trust to address the City’s unfunded liability and to better plan for and manage the City’s unfunded pension liability. The City’s UAL per the June 30, 2020, Actuarial was $5,262,427 with payments from FY 2021-22 to FY 2043-44 of $8,984,752 which includes interest expense payments of $3,722,325. However, the initial funding amount was not approved. The City Council asked for additional information concerning the City’s Unfunded Actuarial Liability (UAL) and the disposition of the proceeds from the sale of the City’s Child Care facility property. At the City Council meeting of October 11, 2022, Staff provided information on the disposition of the proceeds from the sale of the City’s Child Care facility property. Most of the proceeds were used to pay a portion of the UAL payments allocated to the Child Care Fund and to offset the Funds deficit fund balance caused by the UAL payments allocated to the Fund before the program was closed. At the City Council meeting of October 11, 2022, Council asked for additional information concerning the various funding strategies offered through the PARS Post- Employment Benefits Trust Program Administered by PARS. DISCUSSION: The PARS Post-Employment Benefits Trust Program’s Investment Manager is High Mark Capital Management, and they offer the following Investment Strategies: • Conservative 05-20% Equity • Moderately Conservative 20-40% Equity G.11 Packet Pg. 253 • Moderate 40-60% Equity • Balanced 50-70% Equity • Capital Appreciation 65-85% Equity I have included as an attachment information on each of the Investment Strategies which includes detailed information on each Strategy as March 31, 2022. Also, included as an attachment is the historical rates of return for each of the Strategies as of June 30, 2022, for 3, 5 & 10 years as well the projected PARS Investment Objectives as April 2022. Portfolio Manager Keith Stribling, of Highmark Capital, will be attending the City Council meeting to discuss the various Investment Strategies and answer any questions the Council may have. In addition, Anthony Armas from PARS will also be attending the meeting to answer any questions the City Council may have regarding the administration of the program. The reasons to prefund the pension obligations are as follows: 1. Complete Local Control over Assets - The City has complete control overs assets, including contributions, disbursements and the timing, amount, and risk tolerance level of investments. 2. Pension Rate Stabilization - Assets can be transferred to the retirement system at the City’s direction, potentially reducing/eliminating large fluctuations in employer contribution amounts. 3. Rainy Day Fund - Emergency source of funds when employer revenues are strained in difficult budgetary or economic times. 4. Diversification - Allows for investment flexibility and offers the potential for assets to earn greater returns than the General Fund; spread the risk vs. sending additional money to CalPERS. I have also included as an attachment a four-year history of two cities who participate in the PARS 115 Trust Pension Rate Stabilization Program. The schedules show the initial contributions in FY 2018-19 and the earnings, which are netted with the expenses, through FY 2021-22 as well as the Investment Strategy chosen. Staff is looking for direction to fund the PARS Section 115 Trust and the selection of the appropriate Investment Strategy. Staff is recommending using a portion of the proceeds from the sale of the Fire Station Property to the County of San Bernardino. These funds would be used to offset the UAL and the earnings can be used to help with the annual UAL payment. FISCAL IMPACT: The fiscal impact is not known at this time. G.11 Packet Pg. 254 ATTACHMENTS: • PARS Investment Strategies (1) (PDF) • Returns Comparison PP Slides - Q2 2022_ (PDF) • PARS Investment Objectives April 2022 (PDF) • PARS Actual Historical Earnings (PDF) APPROVALS: Terry Shea Completed 10/17/2022 9:14 AM Finance Completed 10/17/2022 9:14 AM City Manager Completed 10/18/2022 1:48 PM City Council Pending 10/25/2022 6:00 PM G.11 Packet Pg. 255 HighMark Plus Composite (Active) Current Quarter* -5.24% Blended Benchmark*,** -4.65% Year To Date* -5.24% Blended Benchmark*,** -4.65% 1 Year -2.02% Blended Benchmark** -1.78% 3 Year 3.88% Blended Benchmark** 3.62% 5 Year 3.92% Blended Benchmark** 3.61% 10 Year 3.79% Blended Benchmark** 3.44% PARS DIVERSIFIED PORTFOLIOS CONSERVATIVE INVESTMENT OBJECTIVE ANNUAL RETURNS ASSET ALLOCATION — CONSERVATIVE PORTFOLIO Comprehensive Investment Solution HighMark® Capital Management, Inc.’s (HighMark) diversified investment portfolios are designed to balance return expectations with risk tolerance. Key features include: sophisticated asset allocation and optimization techniques, four layers of diversification (asset class, style, manager, and security), access to rigorously screened, top tier money managers, flexible investment options, and experienced investment management. Rigorous Manager Due Diligence Our manager review committee utilizes a rigorous screening process that searches for investment managers and styles that have not only produced above-average returns within acceptable risk parameters, but have the resources and commitment to continue to deliver these results. We have set high standards for our investment managers and funds. This is a highly specialized, time consuming approach dedicated to one goal: competitive and consistent performance. Flexible Investment Options In order to meet the unique needs of our clients, we offer access to flexible implementation strategies: HighMark Plus utilizes actively managed mutual funds while Index Plus utilizes index-based securities, including exchange-traded funds. Both investment options leverage HighMark’s active asset allocation approach. Risk Management The portfolio is constructed to control risk through four layers of diversification – asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities. Disciplined mutual fund selection and monitoring process helps to drive return potential while reducing portfolio risk. WHY THE PARS DIVERSIFIED CONSERVATIVE PORTFOLIO? Q1 2022 * Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 - Present: 7.5% S&P500, 1.5% Russell Mid Cap, 2.5% Russell 2000, 1% MSCI EM (net), 2% MSCI EAFE (net), 52.25% Bloomberg US Agg, 25.75% ICE BofA 1-3 Yr US Corp/Gov’t, 2% ICE BofA US High Yield Master II, 0.5% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 – 9/30/2012, the blended benchmark was 12% S&P 500; 1% Russell 2000, 2% MSCI EAFE (net), 40% ICE BofA 1-3 Year Corp./Govt, 40% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007: the blended benchmark was 15% S&P 500, 40% ICE BofA 1-3Yr Corp/Gov, 40% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill. To provide a consistent level of inflation-protected income over the long-term. The major portion of the assets will be fixed income related. Equity securities are utilized to provide inflation protection. Conservative Moderately Conservative Moderate BalancedCapital Appreciation Efficient Frontier Risk (Standard Deviation) Re w a r d ( R a t e o f R e t u r n ) Strategic Range Policy Tactical Equity 5 – 20% 15% 15% Fixed Income 60 – 95% 80% 83% Cash 0 – 20% 5% 2% ANNUALIZED TOTAL RETURNS (Gross of Investment Management Fees, but Net of Embedded Fund Fees) Index Plus Composite (Passive) Current Quarter* -5.36% Blended Benchmark*,** -4.65% Year To Date* -5.36% Blended Benchmark*,** -4.65% 1 Year -2.34% Blended Benchmark** -1.78% 3 Year 3.50% Blended Benchmark** 3.62% 5 Year 3.54% Blended Benchmark** 3.61% 10 Year 3.41% Blended Benchmark** 3.44% PORTFOLIO FACTS HighMark Plus (Active) Composite Inception Date 07/2004 No of Holdings in Portfolio 20 Index Plus (Passive) Composite Inception Date 07/2004 No of Holdings in Portfolio 13 (Gross of Investment Management Fees, but Net of Embedded Fund Fees) HighMark Plus Composite (Active) 2008 -9.04% 2009 15.59% 2010 8.68% 2011 2.19% 2012 8.45% 2013 3.69% 2014 3.88% 2015 0.29% 2016 4.18% 2017 6.73% 2018 -1.35% 2019 11.05% 2020 9.03% 2021 2.20% Index Plus Composite (Passive) 2008 -6.70% 2009 10.49% 2010 7.67% 2011 3.70% 2012 6.22% 2013 3.40% 2014 4.32% 2015 0.06% 2016 3.75% 2017 5.52% 2018 -1.09% 2019 10.37% 2020 8.56% 2021 1.97% G.11.a Packet Pg. 256 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) HIGHMARK CAPITAL MANAGEMENT 350 California Street Suite 1600 San Francisco, CA 94104 800-582-4734 ABOUT THE ADVISER HighMark®Capital Management, Inc. (HighMark) has over 100 years (including predecessor organizations) of institutional money management experience with $9.4 billion in assets under management and $9.6 billion in assets under advisement*. HighMark has a long term disciplined approach to money management and currently manages assets for a wide array of clients. ABOUT THE PORTFOLIO MANAGEMENT TEAM Andrew Brown, CFA® Senior Portfolio Manager Investment Experience: since 1994 HighMark Tenure: since 1997 Education: MBA, University of Southern California; BA, University of Southern California Salvatore “Tory” Milazzo III, CFA® Senior Portfolio Manager Investment Experience: since 2004 HighMark Tenure: since 2014 Education: BA, Colgate University J. Keith Stribling, CFA ® Senior Portfolio Manager Investment Experience: since 1985 HighMark Tenure: since 1995 Education: BA, Stetson University Christiane Tsuda Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2010 Education: BA, International Christian University, Tokyo Anne Wimmer, CFA® Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2007 Education: BA, University of California, Santa Barbara Randy Yurchak, CFA® Senior Portfolio Manager Investment Experience: since 2002 HighMark Tenure: since 2017 Education: MBA, Arizona State University; BS, University of Washington Asset Allocation Committee Number of Members: 17 Average Years of Experience: 27 Average Tenure (Years): 15 Manager Review Group Number of Members: 7 Average Years of Experience: 22 Average Tenure (Years): 10 *Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. Assets under advisement (“AUA”) include assets for which HighMark provides certain investment advisory services (including, but not limited to, investment research and strategies) for client assets of its parent company, MUFG Union Bank, N.A. The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Conservative active and passive objectives. The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio’s returns. Assuming an investment for five years, a 5% annual total return, and an annual sub-advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 millionafter fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’spolicies and procedures for calculating and reporting performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxesbut do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting. Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill. HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 350 California Street Suite 1600 San Francisco, CA 94104 800.582.4734 www.highmarkcapital.com HOLDINGS STYLE Small Cap2.5% Interm-Term Bond 63.9% High Yield 1.1% Short-Term Bond18.2% Large Cap Core 4.3% Large Cap Growth 1.6% Mid Cap1.5% Intl Stocks2.5%Cash2.1%Large Cap Value1.8%Real Estate0.5% Holdings are subject to change at the discretion of the investment manager. HighMark Plus (Active)Index Plus (Passive) Columbia Contrarian Core I3 iShares Core S&P 500 ETF Vanguard Growth & Income Adm iShares S&P 500 Value ETF Dodge & Cox Stock Fund iShares S&P 500 Growth ETF iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF Harbor Capital Appreciation - Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock - I iShares Russell 2000 Value ETF iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF Vanguard Real Estate ETF iShares Core MSCI EAFE ETF Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF Vanguard Small Cap Growth ETF Vanguard Short-Term Invest-Grade Adm DFA Large Cap International Portfolio iShares Core U.S. Aggregate Dodge & Cox International Stock Vanguard High-Yield Corp Adm MFS International Growth - R6 First American Government Obligations Z Hartford Schroders Emerging Markets Eq Vanguard Short-Term Invest-Grade Adm PIMCO High Yield Instl PIMCO Total Return Fund - Inst PGIM Total Return Bond - R6 DoubleLine Core Fixed Income - I First American Government Obligations Z G.11.a Packet Pg. 257 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) PARS DIVERSIFIED PORTFOLIOS MODERATELY CONSERVATIVE INVESTMENT OBJECTIVE ANNUAL RETURNS ASSET ALLOCATION — MODERATELY CONSERVATIVE PORTFOLIO Comprehensive Investment Solution HighMark® Capital Management, Inc.’s (HighMark) diversified investment portfolios are designed to balance return expectations with risk tolerance. Key features include: sophisticated asset allocation and optimization techniques, four layers of diversification (asset class, style, manager, and security), access to rigorously screened, top tier money managers, flexible investment options, and experienced investment management. Rigorous Manager Due Diligence Our manager review committee utilizes a rigorous screening process that searches for investment managers and styles that have not only produced above-average returns within acceptable risk parameters, but have the resources and commitment to continue to deliver these results. We have set high standards for our investment managers and funds. This is a highly specialized, time consuming approach dedicated to one goal: competitive and consistent performance. Flexible Investment Options In order to meet the unique needs of our clients, we offer access to flexible implementation strategies: HighMark Plus utilizes actively managed mutual funds while Index Plus utilizes index-based securities, including exchange-traded funds. Both investment options leverage HighMark’s active asset allocation approach. Risk Management The portfolio is constructed to control risk through four layers of diversification – asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities. Disciplined mutual fund selection and monitoring process helps to drive return potential while reducing portfolio risk. WHY THE PARS DIVERSIFIED MODERATELY CONSERVATIVE PORTFOLIO? Q1 2022 * Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 - Present: 15.5% S&P500, 3% Russell Mid Cap, 4.5% Russell 2000, 2% MSCI EM (net), 4% MSCI EAFE (net), 49.25% Bloomberg US Agg, 14% ICE BofA 1-3 Yr US Corp/Gov’t, 1.75% ICE BofA US High Yield Master II, 1% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 -9/30/2012: the blended benchmark was 25% S&P 500; 1.5% Russell 2000, 3.5% MSCI EAFE (net), 25% ICE BofA 1-3 Year Corp./Govt, 40% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007, the blended benchmark was 30% S&P 500, 25% ICE BofA 1-3Yr Corp/Gov, 40% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill. To provide current income, with capital appreciation as a secondary objective. The major portion of the assets is committed to income-producing securities. Market fluctuations should be expected. Strategic Range Policy Tactical Equity 20 - 40% 30% 29% Fixed Income 50 - 80% 65% 68% Cash 0 - 20% 5% 3% ANNUALIZED TOTAL RETURNS (Gross of Investment Management Fees, but Net of Embedded Fund Fees) HighMark Plus Composite (Active) Current Quarter* -5.15% Blended Benchmark*,** -4.96% Year To Date* -5.15% Blended Benchmark*,** -4.96% 1 Year -0.56% Blended Benchmark** -0.08% 3 Year 5.80% Blended Benchmark** 5.76% 5 Year 5.48% Blended Benchmark** 5.36% 10 Year 5.16% Blended Benchmark** 5.09% Index Plus Composite (Passive) Current Quarter* -5.36% Blended Benchmark*,** -4.96% Year To Date* -5.36% Blended Benchmark*,** -4.96% 1 Year -0.55% Blended Benchmark** -0.08% 3 Year 5.43% Blended Benchmark** 5.76% 5 Year 5.12% Blended Benchmark** 5.36% 10 Year 4.89% Blended Benchmark** 5.09% PORTFOLIO FACTS HighMark Plus (Active) Composite Inception Date 08/2004 No of Holdings in Portfolio 20 Index Plus (Passive) Composite Inception Date 05/2005 No of Holdings in Portfolio 13 Efficient Frontier Risk (Standard Deviation) Re w a r d ( R a t e o f R e t u r n ) Conservative Moderately Conservative Moderate Capital AppreciationBalanced (Gross of Investment Management Fees, but Net of Embedded Fund Fees) HighMark Plus Composite (Active) 2008 -15.37% 2009 18.71% 2010 10.46% 2011 1.75% 2012 10.88% 2013 7.30% 2014 4.41% 2015 0.32% 2016 4.94% 2017 9.56% 2018 -2.60% 2019 13.73% 2020 10.76% 2021 5.15% Index Plus Composite (Passive) 2008 -12.40% 2009 11.92% 2010 9.72% 2011 3.24% 2012 8.24% 2013 6.78% 2014 5.40% 2015 -0.18% 2016 5.42% 2017 8.08% 2018 -2.33% 2019 13.53% 2020 9.74% 2021 5.33% G.11.a Packet Pg. 258 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) HIGHMARK CAPITAL MANAGEMENT 350 California Street Suite 1600 San Francisco, CA 94104 800-582-4734 ABOUT THE ADVISER HighMark®Capital Management, Inc. (HighMark) has over 100 years (including predecessor organizations) of institutional money management experience with $9.4 billion in assets under management and $9.6 billion in assets under advisement*. HighMark has a long term disciplined approach to money management and currently manages assets for a wide array of clients. ABOUT THE PORTFOLIO MANAGEMENT TEAM Andrew Brown, CFA® Senior Portfolio Manager Investment Experience: since 1994 HighMark Tenure: since 1997 Education: MBA, University of Southern California; BA, University of Southern California Salvatore “Tory” Milazzo III, CFA® Senior Portfolio Manager Investment Experience: since 2004 HighMark Tenure: since 2014 Education: BA, Colgate University J. Keith Stribling, CFA® Senior Portfolio Manager Investment Experience: since 1985 HighMark Tenure: since 1995 Education: BA, Stetson University Christiane Tsuda Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2010 Education: BA, International Christian University, Tokyo Anne Wimmer, CFA® Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2007 Education: BA, University of California, Santa Barbara Randy Yurchak, CFA® Senior Portfolio Manager Investment Experience: since 2002 HighMark Tenure: since 2017 Education: MBA, Arizona State University; BS, University of Washington Asset Allocation Committee Number of Members: 17 Average Years of Experience: 27 Average Tenure (Years): 15 Manager Review Group Number of Members: 7 Average Years of Experience: 22 Average Tenure (Years): 10 *Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. Assets under advisement (“AUA”) include assets for which HighMark provides certain investment advisory services (including, but not limited to, investment research and strategies) for client assets of its parent company, MUFG Union Bank, N.A. The performance records shown represent a size-weighted composite of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Moderately Conservative active and passive objectives. The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio’s returns. Assuming an investment for five years, a 5% annual total return, and an annual sub-advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting. Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill. HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 350 California Street Suite 1600 San Francisco, CA 94104 800.582.4734 www.highmarkcapital.com HOLDINGS STYLE Small Cap 4.5% Interm-Term Bond 53.2% High Yield 1.0% Short-Term Bond13.3% Large Cap Core8.4% Large Cap Growth 3.3% Mid Cap 3.0% Intl Stocks 5.2% Cash 3.3% Large Cap Value 3.8%Real Estate 1.1% Holdings are subject to change at the discretion of the investment manager. HighMark Plus (Active)Index Plus (Passive) Columbia Contrarian Core I3 iShares Core S&P 500 ETF Vanguard Growth & Income Adm iShares S&P 500 Value ETF Dodge & Cox Stock Fund iShares S&P 500 Growth ETF iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF Harbor Capital Appreciation - Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock - I iShares Russell 2000 Value ETF iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF Vanguard Real Estate ETF iShares Core MSCI EAFE ETF Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF Vanguard Small Cap Growth ETF Vanguard Short-Term Invest-Grade Adm DFA Large Cap International Portfolio iShares Core U.S. Aggregate Dodge & Cox International Stock Vanguard High-Yield Corp Adm MFS International Growth - R6 First American Government Obligations Z Hartford Schroders Emerging Markets Eq Vanguard Short-Term Invest-Grade Adm PIMCO High Yield Instl PIMCO Total Return Fund - Inst PGIM Total Return Bond - R6 DoubleLine Core Fixed Income - I First American Government Obligations Z G.11.a Packet Pg. 259 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) PARS DIVERSIFIED PORTFOLIOS MODERATE INVESTMENT OBJECTIVE ANNUAL RETURNS ASSET ALLOCATION — MODERATE PORTFOLIO Comprehensive Investment Solution HighMark® Capital Management, Inc.’s (HighMark) diversified investment portfolios are designed to balance return expectations with risk tolerance. Key features include: sophisticated asset allocation and optimization techniques, four layers of diversification (asset class, style, manager, and security), access to rigorously screened, top tier money managers, flexible investment options, and experienced investment management. Rigorous Manager Due Diligence Our manager review committee utilizes a rigorous screening process that searches for investment managers and styles that have not only produced above-average returns within acceptable risk parameters, but have the resources and commitment to continue to deliver these results. We have set high standards for our investment managers and funds. This is a highly specialized, time consuming approach dedicated to one goal: competitive and consistent performance. Flexible Investment Options In order to meet the unique needs of our clients, we offer access to flexible implementation strategies: HighMark Plus utilizes actively managed mutual funds while Index Plus utilizes index-based securities, including exchange-traded funds. Both investment options leverage HighMark’s active asset allocation approach. Risk Management The portfolio is constructed to control risk through four layers of diversification – asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities. Disciplined mutual fund selection and monitoring process helps to drive return potential while reducing portfolio risk. WHY THE PARS DIVERSIFIED MODERATE PORTFOLIO? Q1 2022 * Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 – Present: 26.5% S&P500, 5% Russell Mid Cap, 7.5% Russell 2000, 3.25% MSCI EM (net), 6% MSCI EAFE (net), 33.50% Bloomberg US Agg, 10% ICE BofA1-3 Yr US Corp/Gov’t, 1.50% ICE BofA US High Yield Master II, 1.75% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 – 9/30/2012: the blended benchmark was 43% S&P 500; 2% Russell 2000, 5% MSCI EAFE (net), 15% ICE BofA 1-3 Year Corp./Govt, 30% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007: the blended benchmark was 50% S&P 500, 15% ICE BofA 1-3Yr Corp/Gov, 30% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill. To provide current income and moderate capital appreciation. It is expected that dividend and interest income will comprise a significant portion of total return, although growth through capital appreciation is equally important. Strategic Range Policy Tactical Equity 40 - 60% 50% 49% Fixed Income 40 - 60% 45% 46% Cash 0 - 20% 5% 5% ANNUALIZED TOTAL RETURNS (Gross of Investment Management Fees, but Net of Embedded Fund Fees) HighMark Plus Composite (Active) Current Quarter* -5.07% Blended Benchmark*,** -4.97% Year To Date* -5.07% Blended Benchmark*,** -4.97% 1 Year 1.50% Blended Benchmark** 2.42% 3 Year 8.42% Blended Benchmark** 8.54% 5 Year 7.64% Blended Benchmark** 7.61% 10 Year 6.99% Blended Benchmark** 7.20% Index Plus Composite (Passive) Current Quarter* -5.38% Blended Benchmark*,** -4.97% Year To Date* -5.38% Blended Benchmark*,** -4.97% 1 Year 1.94% Blended Benchmark** 2.42% 3 Year 8.01% Blended Benchmark** 8.54% 5 Year 7.20% Blended Benchmark** 7.61% 10 Year 6.80% Blended Benchmark** 7.20% PORTFOLIO FACTS HighMark Plus (Active) Composite Inception Date 10/2004 No of Holdings in Portfolio 20 Index Plus (Passive) Composite Inception Date 05/2006 No of Holdings in Portfolio 13 Efficient Frontier Risk (Standard Deviation) Re w a r d ( R a t e o f R e t u r n ) Conservative Moderately Conservative Moderate Capital AppreciationBalanced (Gross of Investment Management Fees, but Net of Embedded Fund Fees) HighMark Plus Composite (Active) 2008 -22.88% 2009 21.47% 2010 12.42% 2011 0.55% 2012 12.25% 2013 13.06% 2014 4.84% 2015 0.14% 2016 6.45% 2017 13.19% 2018 -4.03% 2019 17.71% 2020 12.92% 2021 9.31% Index Plus Composite (Passive) 2008 -18.14% 2009 16.05% 2010 11.77% 2011 2.29% 2012 10.91% 2013 12.79% 2014 5.72% 2015 -0.52% 2016 7.23% 2017 11.59% 2018 -4.03% 2019 17.52% 2020 11.23% 2021 10.18% G.11.a Packet Pg. 260 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) HIGHMARK CAPITAL MANAGEMENT 350 California Street Suite 1600 San Francisco, CA 94104 800-582-4734 ABOUT THE ADVISER HighMark®Capital Management, Inc. (HighMark) has over 100 years (including predecessor organizations) of institutional money management experience with $9.4 billion in assets under management and $9.6 billion in assets under advisement*. HighMark has a long term disciplined approach to money management and currently manages assets for a wide array of clients. ABOUT THE PORTFOLIO MANAGEMENT TEAM Andrew Brown, CFA® Senior Portfolio Manager Investment Experience: since 1994 HighMark Tenure: since 1997 Education: MBA, University of Southern California; BA, University of Southern California Salvatore “Tory” Milazzo III, CFA® Senior Portfolio Manager Investment Experience: since 2004 HighMark Tenure: since 2014 Education: BA, Colgate University J. Keith Stribling, CFA® Senior Portfolio Manager Investment Experience: since 1985 HighMark Tenure: since 1995 Education: BA, Stetson University Christiane Tsuda Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2010 Education: BA, International Christian University, Tokyo Anne Wimmer, CFA® Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2007 Education: BA, University of California, Santa Barbara Randy Yurchak, CFA® Senior Portfolio Manager Investment Experience: since 2002 HighMark Tenure: since 2017 Education: MBA, Arizona State University; BS, University of Washington Asset Allocation Committee Number of Members: 17 Average Years of Experience: 27 Average Tenure (Years): 15 Manager Review Group Number of Members: 7 Average Years of Experience: 22 Average Tenure (Years): 10 *Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. Assets under advisement (“AUA”) include assets for which HighMark provides certain investment advisory services (including, but not limited to, investment research and strategies) for client assets of its parent company, MUFG Union Bank, N.A. The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Moderate active and passive objectives. The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio’s returns. Assuming an investment for five years, a 5% annual total return, and an annual sub-advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting. Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill. HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 350 California Street Suite 1600 San Francisco, CA 94104 800.582.4734 www.highmarkcapital.com HOLDINGS STYLE Small Cap 7.5% Interm-Term Bond 35.9% High Yield 1.0%Short-Term Bond9.6% Large Cap Core14.4% Large Cap Growth 5.6% Mid Cap4.9% Intl Stocks8.1% Cash4.8% Large Cap Value6.4% Real Estate 1.8% Holdings are subject to change at the discretion of the investment manager. HighMark Plus (Active)Index Plus (Passive) Columbia Contrarian Core I3 iShares Core S&P 500 ETF Vanguard Growth & Income Adm iShares S&P 500 Value ETF Dodge & Cox Stock Fund iShares S&P 500 Growth ETF iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF Harbor Capital Appreciation - Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock - I iShares Russell 2000 Value ETF iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF Vanguard Real Estate ETF iShares Core MSCI EAFE ETF Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF Vanguard Small Cap Growth ETF Vanguard Short-Term Invest-Grade Adm DFA Large Cap International Portfolio iShares Core U.S. Aggregate Dodge & Cox International Stock Vanguard High-Yield Corp Adm MFS International Growth - R6 First American Government Obligations Z Hartford Schroders Emerging Markets Eq Vanguard Short-Term Invest-Grade Adm PIMCO High Yield Instl PIMCO Total Return Fund - Inst PGIM Total Return Bond - R6 DoubleLine Core Fixed Income - I First American Government Obligations Z G.11.a Packet Pg. 261 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) PARS DIVERSIFIED PORTFOLIOS BALANCED INVESTMENT OBJECTIVE ANNUAL RETURNS ASSET ALLOCATION — BALANCED PORTFOLIO Comprehensive Investment Solution HighMark® Capital Management, Inc.’s (HighMark) diversified investment portfolios are designed to balance return expectations with risk tolerance. Key features include: sophisticated asset allocation and optimization techniques, four layers of diversification (asset class, style, manager, and security), access to rigorously screened, top tier money managers, flexible investment options, and experienced investment management. Rigorous Manager Due Diligence Our manager review committee utilizes a rigorous screening process that searches for investment managers and styles that have not only produced above-average returns within acceptable risk parameters, but have the resources and commitment to continue to deliver these results. We have set high standards for our investment managers and funds. This is a highly specialized, time consuming approach dedicated to one goal: competitive and consistent performance. Flexible Investment Options In order to meet the unique needs of our clients, we offer access to flexible implementation strategies: HighMark Plus utilizes actively managed mutual funds while Index Plus utilizes index-based securities, including exchange-traded funds. Both investment options leverage HighMark’s active asset allocation approach. Risk Management The portfolio is constructed to control risk through four layers of diversification – asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities. Disciplined mutual fund selection and monitoring process helps to drive return potential while reducing portfolio risk. WHY THE PARS DIVERSIFIED BALANCED PORTFOLIO? Q1 2022 * Returns less than one year are not annualized. **Breakdown for Blended Benchmark: From 10/1/2012 – Present: 32% S&P500, 6% Russell Mid Cap, 9% Russell 2000, 4% MSCI EM (net), 7% MSCI EAFE (net), 27% Bloomberg US Agg, 6.75% ICE BofA 1-3 Yr US Corp/Gov’t, 1.25% ICE BofA US High Yield Master II, 2% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. From 4/1/2007 –9/30/2012: the blended benchmark was 51% S&P 500; 3% Russell 2000, 6% MSCI EAFE (net), 5% ICE BofA 1-3 Year Corp./Govt, 30% Bloomberg US Agg, 5% FTSE 1 Mth US T-Bill. Prior to April 2007: the blended benchmark was 60% S&P 500, 5% ICE BofA1-3Yr Corp/Gov, 30% Bloomberg US Agg, and 5% FTSE 1 Mth US T-Bill. To provide growth of principal and income. While dividend and interest income are an important component of the objective’s total return, it is expected that capital appreciation will comprise a larger portion of the total return. Strategic Range Policy Tactical Equity 50 – 70% 60% 59% Fixed Income 30 – 50% 35% 36% Cash 0 – 20% 5% 5% ANNUALIZED TOTAL RETURNS (Gross of Investment Management Fees, but Net of Embedded Fund Fees) HighMark Plus Composite (Active) Current Quarter* -5.03% Blended Benchmark*,** -5.02% Year To Date* -5.03% Blended Benchmark*,** -5.02% 1 Year 2.49% Blended Benchmark** 3.64% 3 Year 9.69% Blended Benchmark** 9.92% 5 Year 8.73% Blended Benchmark** 8.72% 10 Year 7.94% Blended Benchmark** 8.26% Index Plus Composite (Passive) Current Quarter* -5.39% Blended Benchmark*,** -5.02% Year To Date* -5.39% Blended Benchmark*,** -5.02% 1 Year 3.19% Blended Benchmark** 3.64% 3 Year 9.36% Blended Benchmark** 9.92% 5 Year 8.22% Blended Benchmark** 8.72% 10 Year 7.72% Blended Benchmark** 8.26% PORTFOLIO FACTS HighMark Plus (Active) Composite Inception Date 10/2006 No of Holdings in Portfolio 20 Index Plus (Passive) Composite Inception Date 10/2007 No of Holdings in Portfolio 13 Efficient Frontier Risk (Standard Deviation) Re w a r d ( R a t e o f R e t u r n ) Conservative Moderately Conservative Moderate Capital AppreciationBalanced (Gross of Investment Management Fees, but Net of Embedded Fund Fees) HighMark Plus Composite (Active) 2008 -25.72% 2009 21.36% 2010 14.11% 2011 -0.46% 2012 13.25% 2013 16.61% 2014 4.70% 2015 0.04% 2016 6.81% 2017 15.46% 2018 -4.88% 2019 19.85% 2020 13.85% 2021 11.44% Index Plus Composite (Passive) 2008 -23.22% 2009 17.62% 2010 12.76% 2011 1.60% 2012 11.93% 2013 15.63% 2014 6.08% 2015 -0.81% 2016 8.26% 2017 13.39% 2018 -5.05% 2019 19.59% 2020 12.07% 2021 12.63% G.11.a Packet Pg. 262 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) HIGHMARK CAPITAL MANAGEMENT 350 California Street Suite 1600 San Francisco, CA 94104 800-582-4734 ABOUT THE ADVISER HighMark®Capital Management, Inc. (HighMark) has over 100 years (including predecessor organizations) of institutional money management experience with $9.4 billion in assets under management and $9.6 billion in assets under advisement*. HighMark has a long term disciplined approach to money management and currently manages assets for a wide array of clients. ABOUT THE PORTFOLIO MANAGEMENT TEAM Andrew Brown, CFA® Senior Portfolio Manager Investment Experience: since 1994 HighMark Tenure: since 1997 Education: MBA, University of Southern California; BA, University of Southern California Salvatore “Tory” Milazzo III, CFA® Senior Portfolio Manager Investment Experience: since 2004 HighMark Tenure: since 2014 Education: BA, Colgate University J. Keith Stribling, CFA® Senior Portfolio Manager Investment Experience: since 1985 HighMark Tenure: since 1995 Education: BA, Stetson University Christiane Tsuda Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2010 Education: BA, International Christian University, Tokyo Anne Wimmer, CFA® Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2007 Education: BA, University of California, Santa Barbara Randy Yurchak, CFA® Senior Portfolio Manager Investment Experience: since 2002 HighMark Tenure: since 2017 Education: MBA, Arizona State University; BS, University of Washington Asset Allocation Committee Number of Members: 17 Average Years of Experience: 27 Average Tenure (Years): 15 Manager Review Group Number of Members: 7 Average Years of Experience: 22 Average Tenure (Years): 10 *Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. Assets under advisement (“AUA”) include assets for which HighMark provides certain investment advisory services (including, but not limited to, investment research and strategies) for client assets of its parent company, MUFG Union Bank, N.A. The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Balanced active and passive objectives. The composite name has been changed from PARS Balanced/Moderately Aggressive to PARS Balanced on 5/1/2013. The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio’s returns. Assuming an investment for five years, a 5% annual total return, and an annual sub-advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would grow to $12.53 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’spolicies and procedures for calculating and reporting performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxesbut do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting. Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill. HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 350 California Street Suite 1600 San Francisco, CA 94104 800.582.4734 www.highmarkcapital.com HOLDINGS STYLE Small Cap 8.9% Interm-Term Bond 28.5% High Yield0.9% Short-Term Bond6.6%Large Cap Core 17.5% Large Cap Growth6.8% Mid Cap6.0% Intl Stocks 9.6% Cash 5.5% Large Cap Value 7.7% Real Estate2.0% Holdings are subject to change at the discretion of the investment manager. HighMark Plus (Active)Index Plus (Passive) Columbia Contrarian Core I3 iShares Core S&P 500 ETF Vanguard Growth & Income Adm iShares S&P 500 Value ETF Dodge & Cox Stock Fund iShares S&P 500 Growth ETF iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF Harbor Capital Appreciation - Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock - I iShares Russell 2000 Value ETF iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF Vanguard Real Estate ETF iShares Core MSCI EAFE ETF Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF Vanguard Small Cap Growth ETF Vanguard Short-Term Invest-Grade Adm DFA Large Cap International Portfolio iShares Core U.S. Aggregate Dodge & Cox International Stock Vanguard High-Yield Corp Adm MFS International Growth - R6 First American Government Obligations Z Hartford Schroders Emerging Markets Eq Vanguard Short-Term Invest-Grade Adm PIMCO High Yield Instl PIMCO Total Return Fund - Inst PGIM Total Return Bond - R6 DoubleLine Core Fixed Income - I First American Government Obligations Z G.11.a Packet Pg. 263 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) PARS DIVERSIFIED PORTFOLIOS CAPITAL APPRECIATION INVESTMENT OBJECTIVE ANNUAL RETURNS ASSET ALLOCATION — CAPITAL APPRECIATION PORTFOLIO Comprehensive Investment Solution HighMark® Capital Management, Inc.’s (HighMark) diversified investment portfolios are designed to balance return expectations with risk tolerance. Key features include: sophisticated asset allocation and optimization techniques, four layers of diversification (asset class, style, manager, and security), access to rigorously screened, top tier money managers, flexible investment options, and experienced investment management. Rigorous Manager Due Diligence Our manager review committee utilizes a rigorous screening process that searches for investment managers and styles that have not only produced above-average returns within acceptable risk parameters, but have the resources and commitment to continue to deliver these results. We have set high standards for our investment managers and funds. This is a highly specialized, time consuming approach dedicated to one goal: competitive and consistent performance. Flexible Investment Options In order to meet the unique needs of our clients, we offer access to flexible implementation strategies: HighMark Plus utilizes actively managed mutual funds while Index Plus utilizes index-based securities, including exchange-traded funds. Both investment options leverage HighMark’s active asset allocation approach. Risk Management The portfolio is constructed to control risk through four layers of diversification – asset classes (cash, fixed income, equity), investment styles (large cap, small cap, international, value, growth), managers and securities. Disciplined mutual fund selection and monitoring process helps to drive return potential while reducing portfolio risk. WHY THE PARS DIVERSIFIED CAPITAL APPRECIATION PORTFOLIO? Q1 2022 * Returns less than one year are not annualized. **Breakdown for Blended Benchmark: 39.5% S&P500, 7.5% Russell Mid Cap, 10.5% Russell 2000, 5.25% MSCI EM (net), 10.25% MSCI EAFE (net), 16% Bloomberg US Agg, 3% ICE BofA 1-3 Yr US Corp/Gov’t, 1% ICE BofA US High Yield Master II, 2% Wilshire REIT, and 5% FTSE 1 Mth US T-Bill. To provide growth of principal. The major portion of the assets are invested in equity securities and market fluctuations are expected. Strategic Range Policy Tactical Equity 65 - 85% 75% 73% Fixed Income 10 - 30% 20% 20% Cash 0 - 20% 5% 7% ANNUALIZED TOTAL RETURNS (Gross of Investment Management Fees, but Net of Embedded Fund Fees) Consolidated Composite Current Quarter* -5.19% Blended Benchmark*,** -5.09% Year To Date* -5.19% Blended Benchmark*,** -5.09% 1 Year 4.22% Blended Benchmark** 5.24% 3 Year 11.34% Blended Benchmark** 11.77% 5 Year 9.99% Blended Benchmark** 10.21% 10 Year 9.19% Blended Benchmark** 9.58% PORTFOLIO FACTS Consolidated Composite Composite Inception Date 01/2009 No of Holdings in Portfolio 20 Efficient Frontier Risk (Standard Deviation) Re w a r d ( R a t e o f R e t u r n ) Conservative Moderately Conservative Moderate Capital Appreciation Balanced (Gross of Investment Management Fees, but Net of Embedded Fund Fees) Consolidated Composite 2008 N/A 2009 23.77% 2010 12.95% 2011 -1.35% 2012 13.87% 2013 20.33% 2014 6.05% 2015 -0.26% 2016 8.79% 2017 16.72% 2018 -5.82% 2019 22.62% 2020 14.50% 2021 14.96% G.11.a Packet Pg. 264 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) HIGHMARK CAPITAL MANAGEMENT 350 California Street Suite 1600 San Francisco, CA 94104 800-582-4734 ABOUT THE ADVISER HighMark®Capital Management, Inc. (HighMark) has over 100 years (including predecessor organizations) of institutional money management experience with $9.4 billion in assets under management and $9.6 billion in assets under advisement*. HighMark has a long term disciplined approach to money management and currently manages assets for a wide array of clients. ABOUT THE PORTFOLIO MANAGEMENT TEAM Andrew Brown, CFA® Senior Portfolio Manager Investment Experience: since 1994 HighMark Tenure: since 1997 Education: MBA, University of Southern California; BA, University of Southern California Salvatore “Tory” Milazzo III, CFA® Senior Portfolio Manager Investment Experience: since 2004 HighMark Tenure: since 2014 Education: BA, Colgate University J. Keith Stribling, CFA® Senior Portfolio Manager Investment Experience: since 1985 HighMark Tenure: since 1995 Education: BA, Stetson University Christiane Tsuda Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2010 Education: BA, International Christian University, Tokyo Anne Wimmer, CFA® Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2007 Education: BA, University of California, Santa Barbara Randy Yurchak, CFA® Senior Portfolio Manager Investment Experience: since 2002 HighMark Tenure: since 2017 Education: MBA, Arizona State University; BS, University of Washington Asset Allocation Committee Number of Members: 17 Average Years of Experience: 27 Average Tenure (Years): 15 Manager Review Group Number of Members: 7 Average Years of Experience: 22 Average Tenure (Years): 10 *Assets under management (“AUM”) include assets for which HighMark provides continuous and regular supervisory and management services. Assets under advisement (“AUA”) include assets for which HighMark provides certain investment advisory services (including, but not limited to, investment research and strategies) for client assets of its parent company, MUFG Union Bank, N.A. The performance records shown represent a size-weighted composite of tax exempt accounts that meet the following criteria: Accounts are managed by HighMark with full investment authority according to the PARS Capital Appreciation active and passive objectives. The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 0.36% paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio’s returns. Assuming an investment for five years, a 5% annual total return, and an annual sub-advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a $10 million initial value would growto $12.53 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Gross returns are presented before management and custodial fees but after all trading expenses and reflect the reinvestment of dividends and other income. A client's return will be reduced by the advisory fees and other expenses it may incur as a client. Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting. Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The ICE BofA U.S. High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Bloomberg U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The ICE BofA 1-3 Year U.S. Corporate & Government Index tracks the bond performance of the ICE BofA U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged FTSE 1-Month U.S. Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill. HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. 350 California Street Suite 1600 San Francisco, CA 94104 800.582.4734 www.highmarkcapital.com HOLDINGS STYLE Small Cap 10.4% Interm-Term Bond16.6% High Yield0.8% Short-Term Bond2.8% Large Cap Core 22.1%Large Cap Growth8.3% Mid Cap 7.5% Intl Stocks 13.5% Cash6.6% Large Cap Value9.4% Real Estate2.0% Holdings are subject to change at the discretion of the investment manager. HighMark Plus (Active)Index Plus (Passive) Columbia Contrarian Core I3 iShares Core S&P 500 ETF Vanguard Growth & Income Adm iShares S&P 500 Value ETF Dodge & Cox Stock Fund iShares S&P 500 Growth ETF iShares S&P 500 Value ETF iShares Russell Mid-Cap ETF Harbor Capital Appreciation – Retirement Vanguard Real Estate ETF T. Rowe Price Growth Stock - I iShares Russell 2000 Value ETF iShares Russell Mid-Cap ETF iShares Russell 2000 Growth ETF Vanguard Real Estate ETF iShares Core MSCI EAFE ETF Undiscovered Managers Behavioral Value-R6 Vanguard FTSE Emerging Markets ETF Vanguard Small Cap Growth ETF Vanguard Short-Term Invest-Grade Adm DFA Large Cap International Portfolio iShares Core U.S. Aggregate Dodge & Cox International Stock Vanguard High-Yield Corp Adm MFS International Growth - R6 First American Government Obligations Z Hartford Schroders Emerging Markets Eq Vanguard Short-Term Invest-Grade Adm PIMCO High Yield Instl PIMCO Total Return Fund - Inst PGIM Total Return Bond - R6 DoubleLine Core Fixed Income - I First American Government Obligations Z G.11.a Packet Pg. 265 At t a c h m e n t : P A R S I n v e s t m e n t S t r a t e g i e s ( 1 ) ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) Investment returns ▎1 Strategy Equity (%)3 Years 5 Years 10 Years Capital Appreciation 65-85%5.30%6.42%8.03% Balanced 50-70%4.28%5.51%6.90% Moderate 40-60%3.51%4.77%6.01% Moderately Conservative 20-40%1.82%3.24%4.32% Conservative 5-20%0.60%2.15%3.05% HighMark Capital Management ACTIVE PORTFOLIO RETURNS * Apportionment rates illustrated reflect the average of the LAIF apportionment rates (released quarterly) over each time period; LAIF apportionment rates data source: https://www.treasurer.ca.gov/pmia-laif/historical/quarterly.asp As of June 30, 2022 Equity (%)3 Years 5 Years 10 Years LAIF*0%1.00%1.37%0.88% LAIF AVERAGE APPORTIONMENT RATES Past performance does not guarantee future results. G.11.b Packet Pg. 266 At t a c h m e n t : R e t u r n s C o m p a r i s o n P P S l i d e s - Q 2 2 0 2 2 _ ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) Investment returns ▎2 Strategy Equity (%)3 Years 5 Years 10 Years Balanced 50-70%4.28%5.26%6.68% Moderate 40-60%3.48%4.59%5.85% Moderately Conservative 20-40%1.86%3.14%4.11% Conservative 5-20%0.66%2.02%2.76% HighMark Capital Management INDEX PORTFOLIO RETURNS * Apportionment rates illustrated reflect the average of the LAIF apportionment rates (released quarterly) over each time period; LAIF apportionment rates data source: https://www.treasurer.ca.gov/pmia-laif/historical/quarterly.asp As of June 30, 2022 Equity (%)3 Years 5 Years 10 Years LAIF*0%1.00%1.37%0.88% LAIF AVERAGE APPORTIONMENT RATES Past performance does not guarantee future results. G.11.b Packet Pg. 267 At t a c h m e n t : R e t u r n s C o m p a r i s o n P P S l i d e s - Q 2 2 0 2 2 _ ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) PARS Investment Objectives As of April 2022 1 The above information is for illustrative purposes only and is not intended to provide investment recommendations as to which securities to buy or sell, or when to buy or sell securities. Each Sample Portfolio is a hypothetical portfolio only and does not reflect actual investment decisions or recommendations and does not represent actual trading or actual portfolio performance. An actual client’s portfolio construction and performance may vary depending on the client’s investment needs, objectives, restrictions, and market conditions. Asset allocation ranges and performance for each investment objective may also vary depending on the prevailing market conditions. Past performance is no indication of future results. For institutional investor use only. Data as of April 2022. *Expected Returns are based on 30-year returns for various asset classes. Please see disclosure page for additional details on Expected Return and Expected Standard Deviation. Source: Factset Conservative Moderately Conservative Moderate Balanced Capital Appreciation Equity 15.00% 30.00% 50.00% 60.00% 75.00% Large Cap Core 7.50% 15.50% 26.50% 32.00% 39.50% Mid Cap Core 1.50% 3.00% 5.00% 6.00% 7.50% Small Cap Core 2.50% 4.50% 7.50% 9.00% 10.50% Real Estate 0.50% 1.00% 1.75% 2.00% 2.00% International 2.00% 4.00% 6.00% 7.00% 10.25% Emerging Markets 1.00% 2.00% 3.25% 4.00% 5.25% Fixed Income 80.00% 65.00% 45.00% 35.00% 20.00% Short Term Bond 25.75% 14.00% 10.00% 6.75% 3.00% Intermediate Term Bond 52.25% 49.25% 33.50% 27.00% 16.00% High Yield 2.00% 1.75% 1.50% 1.25% 1.00% Cash 5.00% 5.00% 5.00% 5.00% 5.00% Expected Return 4.66% 5.30% 5.95% 6.24% 6.60% Expected Standard Deviation 3.46% 5.28% 8.47% 10.20% 12.86% Equities Fixed Income Cash G.11.c Packet Pg. 268 At t a c h m e n t : P A R S I n v e s t m e n t O b j e c t i v e s A p r i l 2 0 2 2 ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) Disclosures 2 Each strategy represented as a Sample Portfolio is a hypothetical portfolio only and does not reflect actual investment decisions or recommendations. It is solely for illustrative purposes and is subject to change at any time. It is not intended to represent a specific investment. It does not reflect the liquidity constraints of actual investing or the impact that material economic and market factors may have on an investment adviser’s decision-making. Investors cannot invest in the Sample Portfolio and actual investment results may differ materially. An account could incur losses as well as gains. The Sample Portfolio does not reflect the deduction of advisory fees, brokerage, commissions, or any other actual client expenses, which would reduce investor returns. The sample portfolio does not always reflect the potential impact of active management, excluding those investments that are only available from an active manager. Advisory fees are described in Form ADV, Part 2A and are available upon request. A Sample Portfolio’s expected return (comprised of capital appreciation and income/dividends) is calculated the following way: 1. The expected return of each asset class in a given Sample Portfolio is determined through a combination of historical rates of returns, valuation projections, and economic expectations. Expected rates of return are provided by HighMark proprietary research which incorporates Wilshire Associates Incorporated assumptions. Expected rates of return are developed and annually reviewed by HighMark’s Asset Allocation Committee. 2. With 30-year forecasts for U.S. Treasuries, Wilshire’s ten year forecast for U.S. Treasuries is used as the assumed return for the first ten years of the 30-year period. Over the following twenty years (years 11-30), Wilshire’s ULT forecast is used as the assumed return for U.S Treasuries. The resulting combination of the assumed return on U.S. Government bonds over the two periods becomes HighMark’s 30-year forecast subject to rounding. All other taxable fixed income asset classes are derived from the expected return on U.S. Treasuries plus a credit or term premium consistent with those of the ten year forecasts. 3. With 30-year forecasts for global equity, Wilshire’s ten year forecast for global equity is used as the assumed return for the first ten years of the 30-year period. Over the following twenty years (years 11-30), Wilshire’s ULT forecast is used as the assumed return for global equities. The return on cash over this period is derived from the 10 and 30-year cash assumptions. The resulting combination of the assumed global equity returns over the two periods becomes HighMark’s 30-year forecast subject to rounding. 4. Returns reflect the reinvestment of dividends, interests, and other distributions. 5. An expected return for the Sample Portfolio is then calculated by weighting the returns for each asset class according to the exposure as determined by HighMark’s current strategic allocation. Expected returns generated are before taxes and any fees. The standard deviation for an asset class represents its possible divergence of the actual return for an asset class from its expected return. It is a statistical measure of the potential magnitude of volatility of an asset class from its expected return. The range of returns may be higher or lower than those predicted by expected standard deviation. In certain sub asset classes where Wilshire does not provide a discrete 10-year return forecast, HighMark supplements Wilshire’s 10-year expected returns with its proprietary methodology which is based on various market and economic factors some of which are described below. To obtain a full copy of the methodology please contact IMTProduct@unionbank.com. • US Equities – Expected returns at sub asset class level are determined by starting with Wilshire Broad Market 10 year forecast and interpolating into sub asset class returns by referencing Wilshire 5000 index data. • Municipal Bonds – HighMark determines expected returns by assuming there will be historical return discounts for municipal bonds relative to U.S. Treasuries. • Alternative Investments - Expected total return forecasts for alternative investments begin with the forecast for the return on cash over the respective time-horizon and adjusting for estimating the Sharpe ratio (excess return / standard deviation) of each alternative strategy based on the observed long-term performance of a representative strategy specific hedge fund peer group index. HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, and public and private retirement plans. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal. © HighMark Capital Management, Inc. 2022. All rights reserved G.11.c Packet Pg. 269 At t a c h m e n t : P A R S I n v e s t m e n t O b j e c t i v e s A p r i l 2 0 2 2 ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) Balance Contributions Earnings Balance FY 2018-19 -$ 22,500,000.00$ 1,358,138.21$ 23,858,138.21$ FY 2019-20 23,858,138.21 - 985,280.23 24,843,418.44 FY 2020-21 24,843,418.44 - 5,581,699.63 30,425,118.07 FY 2021-22 30,425,118.07 - (4,087,827.80) 26,337,290.27 Moderate Strategy Balance Contributions Earnings Balance FY 2018-19 -$ 515,694.00$ 1,486.28$ 517,180.28$ FY 2019-20 517,180.28 - 12,034.04 529,214.32 FY 2020-21 529,214.32 - 138,751.34 667,965.66 FY 2021-22 667,965.66 - (93,477.14) 574,488.52 Moderately Conservative Strategy City of Grand Terrace PARS 115 Trust Pension Rate Stabilization Program Actual Results FY 2018-19 to FY 2021-22 G.11.d Packet Pg. 270 At t a c h m e n t : P A R S A c t u a l H i s t o r i c a l E a r n i n g s ( F u n d i n g f o r P A R S S e c t i o n 1 1 5 T r u s t ) AGENDA REPORT MEETING DATE: October 25, 2022 Council Item TITLE: Approval of Revisions to the City's Fiscal Policies and First Reading & Introduction of Ordinances Amending Chapters 3.24 & 3.26 of the Municipal Code Thereby Changing Purchasing Procedure Thresholds to $25,000, Changing City Manager’s Sale of Surplus Supplies, Materials, and Equipment Authority to $25,000, and Increasing City Manager's Authorization Limit to $25,000 and Adding a Conflict of Interest & Unlawful Activities Provision to Chapter 3.24 Thereof PRESENTED BY: Terry Shea, Interim Finance Director RECOMMENDATION: 1. Read by title only, waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.24.070, 3.24.080, 3.24.090, AND 3.24.120 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY CHANGING THE THRESHOLDS FOR PURCHASING PROCEDURES, SALE OF SURPLUS SUPPLIES, MATERIALS AND EQUIPMENT, AND CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000; AND ADDING SECTION 3.24.190 TO CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ADDS REQUIREMENTS RELATING TO CONFLICTS OF INTEREST AND UNLAWFUL ACTIVITY; and 2. Read by title only, waive further reading and Introduce AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.26.030(A) AND 3.26.050(E) OF CHAPTER 3.26 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH INCREASES THE CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000 FOR CONTRACTS FOR PUBLIC PROJECTS AND MAINTENANCE, AS DEFINED THEREIN; and 3. Approve the proposed revisions to the attached City Fiscal Policies, subject to the City Council’s approval of the above-mentioned ordinances (where applicable) 2030 VISION STATEMENT: G.12 Packet Pg. 271 This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability,” through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations. BACKGROUND: In May 2014, the City’s fiscal policies were approved by City Council. These core fiscal policies provide a solid framework for the financial administration of the City. The City’s fiscal policies were revised in September 2015. All policies are subject to update and revision as operational needs and circumstances change. Likewise, there will be a need to add or revise policies over time to reflect new operational areas. Further, the City Council’s purchasing procedures can be found in Chapters 3.24 and 3.26 of the Municipal Code. DISCUSSION: The Finance Department has committed to developing a core set of fiscal policies to improve the City’s internal controls, accountability and overall financial management. The following is a listing of the policies that have been approved and those in bold and highlighted in red have been revised for City Council review and approval (as provided in Attachment 1): Policies Related to Safeguarding of Assets (Section 1) • Cash Handling & Control (1.01) (changes made on pg. 1, 2, 3, 4, 6, 7, & 8) • Petty Cash Funds & Change Boxes (1.02) (changes made on pg. 1 & 2) • Accounts Receivable (1.03) • Investments (1.04) (changes made on pg. 1 & 3) • Fixed Assets (1.05) (changes made on pg. 3) • Disposition of Surplus Property (1.06) • Fraud Prevention & Detection (1.07) Policies Related to Liability (Section 2) • Accounts Payable (2.01) Policies Related to General Fiscal Management (Section 3) • Purchasing (3.01) (changes made on pg.1, 2, 3, 5, & 6) • Environmentally Preferable Purchasing (3.01.02) • Budget Appropriation Adjustments (3.02) • Travel & Related Business Expenses (3.03) (changes made on pg. 4, 5, & Exhibit A) • Grants (3.04) • Donations (3.05) • Reserves (3.06) • Unclaimed Money (3.07) (changes made on pg. 1) G.12 Packet Pg. 272 Additionally, the revisions to “Purchasing (3.01)” will not be implemented until the City Council adopts the proposed ordinances (see discussion below). Therefore, the attached fiscal policies represent a foundation for the City’s fiscal policy framework, which will be updated periodically on an ongoing basis. Changes to Chapter 3.24 of the Municipal Code (Attachment 2) The propose ordinance in Attachment 2 makes the following changes to Chapter 3.24 of the Municipal Code: 1. Increases the City Manager’s authorization limit for the purchase of supplies, materials, equipment, and services (including professional services) from $10,000 to $25,000. 2. Changes the threshold relating to the use of open market purchase procedures for the purchase of supplies, materials, equipment, and services (not including professional services) under Grand Terrace Municipal Code Section 3.24.070 from $10,000 to $25,000. 3. Increases the City Manager’s authority to sell surplus supplies, materials, and equipment from $10,000 to $25,000. 4. Adds a prohibition on conflict of interest and unlawful activity relating to the evaluation or selection of bidders. Further, prohibits employees, officers, and agents from influencing decisions relating to an award of contract when these individuals know or have reason to know he or she has a financial interest in the person/entity seeking the contract or outcome of the selection process Changes to Chapter 3.26 of the Municipal Code (Attachment 3) The propose ordinance in Attachment 2 makes the following changes to Chapter 3.26 of the Municipal Code: 1. Increases the City Manager’s authorization limit from $10,000 to $25,000 for the award of contracts relating to public projects or maintenance work (as defined by Chapter 3.26 of the Municipal Code). 2. Increases the City Manager’s authority to award a contract for public project or maintenance work from $10,000 to $25,000 where the informal bid procedures under Municipal Code Section 3.26.050 results in the lowest bid being $25,000 or less. It is therefore recommended that the City Council read by title only, waive further reading and introduce the attached proposed ordinances (Attachments 2 and 3) and G.12 Packet Pg. 273 adopt the proposed revisions to the Fiscal Policies in Attachment 1 subject to the City Council’s approval of the above-mentioned ordinances (as applicable). FISCAL IMPACT: There is no fiscal impact associated with approval of the attached fiscal policies and proposed ordinances. ATTACHMENTS: • Fiscal Policies - Updated 10-11-2022 (PDF) • Ordinance amending Chapter 3.24 (DOCX) • Ordinance amending Chapter 3.26 (DOCX) APPROVALS: Terry Shea Completed 10/17/2022 8:19 AM Adrian Guerra Completed 10/18/2022 9:41 AM Finance Completed 10/18/2022 10:06 AM City Manager Completed 10/18/2022 12:10 PM City Council Pending 10/25/2022 6:00 PM G.12 Packet Pg. 274 City of Grand Terrace Fiscal Policies revised October 11, 2022 G.12.a Packet Pg. 275 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policies Table of Contents Policies Related to Safeguarding of Assets (Section 1) Page •Cash Handling & Control (1.01) ........................................................................ 1 •Petty Cash Funds & Change Boxes (1.02) ........................................................9 •Accounts Receivable (1.03) ............................................................................ 13 -Application for Discharge of Accountability (Exhibit A) .............................. 18 •Investments (1.04) .......................................................................................... 19 •Fixed Assets (1.05) ......................................................................................... 23 •Disposition of Surplus Property (1.06) ............................................................ 26 -Surplus Property Form (Exhibit A) ............................................................. 27 •Fraud Prevention & Detection (1.07) .............................................................. 28 Policies Related to Liability (Section 2) •Accounts Payable (2.01) ................................................................................ 35 Policies Related to General Fiscal Management (Section 3) •Purchasing (3.01.01) ..................................................................................... 38 -Environmentally Preferred Purchasing (3.01.02) ....................................... 44 •Budget Appropriation Adjustments (3.02) ....................................................... 52 -Budget Appropriation Adjustment Form (Exhibit A) ................................... 55 •Travel & Related Business Expenses (3.03) .................................................. 56 -Travel Authorization & Expense Reporting Form (Exhibit A) ..................... 67 •Grants (3.04) .................................................................................................. 69 -Grant Proposal Informational Form (Exhibit A) .......................................... 74 -Grant Cost/Benefit Worksheet (Exhibit B) ................................................. 76 •Donations (3.05) ............................................................................................. 77 -Donation Receipt Form (Exhibit A) ............................................................ 81 •Reserves (3.06) .............................................................................................. 82 •Unclaimed Money (3.07) ................................................................................ 86 -Sample Public Notice (Exhibit A) ................................................................89 -Claim Form (Exhibit B) ...............................................................................90 G.12.a Packet Pg. 276 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 1 of 8 PURPOSE: The purpose of this policy is to establish the practice by which all cash receipts, or cash equivalents, tendered to the City will be accepted, documented, recorded, safeguarded and deposited. This policy is also intended to provide staff with acceptable practices in the handling and safekeeping of cash or cash equivalents. DEFINITIONS: Cashier: Anyone who accepts payments on behalf of the City. Cash Receipts: Includes coin, currency, checks, money orders, or other cash equivalents that may be processed by a financial institution. (Debit and credit card payments are also considered Cash Receipts, although they are not currently accepted by the City.).) Cash Receipt Location (CRL): A physical location, other than the Main Cashier at City Hall, which has been designated as a location to collect and receipt cash for the City of Grand Terrace. Main Cashier: Located at the front counter of the Finance Department in City Hall. Point of Sale System (POS): A software program that can be run either on a stand-alone computer or on a network and allows for the recording of cash collection and receipting related to payments for goods or services. Remote Deposit: The process for scanning and transmitting checks to the bank electronically for deposit. Returned Items: Transactions that have been presented to the bank for deposit and returned to the City due to account balance or status issues. Such transactions could include but are not limited to Non-Sufficient Funds (NSF) or closed accounts. Starter Checks: Checks that are issued to a bank depositor upon the opening of a new checking account. These checks typically do not contain any address or telephone information related to the depositor. POLICY: I. Responsibility A. The Finance Director has oversight, fiduciary, and administrative responsibility for all cash collections performed by City staff or on behalf of the City by contractors. B. The Finance Director has the responsibility and authority to ensure that all cash handling is performed according to this policy. C. This responsibility shall include: G.12.a Packet Pg. 277 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 2 of 8 1. To act as an advisor for cash handling activities performed by City staff. 2. To oversee the cash handling activities on behalf of the City. 3. To verify that all deposits are handled and prepared in accordance with City policy. 4. To review and implement internal controls as needed to ensure the safety of City cash and cash equivalents. II. Scope A. This policy shall apply to all locations that collect cash or cash equivalents on behalf of the City. B. In some cases due to the nature of the collection activity, specialized procedures may be developed which are different than those outlined within this policy. In these cases these procedures must be approved by the Finance Director prior to their implementation. C. Entities that collect funds on behalf of the City, through a contractual relationship, may adopt policies and procedures that differ from those outlined herein. In such cases, these documents must be reviewed and approved by the Finance Director. III. Internal Controls A. Standard accounting internal control procedures will be established and followed. B. Standard accounting internal controls include but are not limited to: 1. Separation of duties. (For example, the person preparing the deposit should be different from the person who accepted the payment and receipted the transaction, when it is practical to do so from a staffing standpoint.) 2. Periodic reconciliation of accounts by someone independent of the cash handling or recording functions. 3. Document Control. Unused manual receipt books should be maintained in a secured location with access limited to authorized staff. IV. Collection Locations A. The Main Cashier in the Finance Department is designated as the primary location for the collection and deposit of cash receipts. A Cash Receipt Location has also been authorized for the Community Development Department (CDD) counter and Child Care Center. B. Cash Receipts received by the City should be deposited in the City’s bank whenever accumulated deposits total $5,000 500 or at least once a week. more. G.12.a Packet Pg. 278 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 3 of 8 Cash deposits will be made in person at the bank; check deposits may be made in person at the bank or via Remote Deposit. Deposits processed by the Child Care Center require a deposit slip submitted to Finance for bank reconciliation purposes. When the appropriate account coding is not immediately available, the payment should be deposited and coded to a suspense account until such time that the coding is identified and communicated to Finance staff. Items placed in suspense need to be identified and reclassified to their correct account within ten working days or by the calendar month-end. C. Any request for the collection of cash receipts at a location other than the Main Cashier, or CDD counter or Child Care Center must be authorized by the Finance Director and should include the following information: 1. How customer service will be improved through the processing of payments.. 2. The cash custodian(s). 3. How cash activities will be accounted for (for example, cash register, hand receipts, etc.). 4. How cash receipts will be safeguarded (for example, safe or lockbox) 5. How deposits will be managed. D. A list of approved collection locations will be maintained by the Finance Department. E. All Cash Receipts will be maintained in a secured area with limited access. F. The establishment of change funds to support collection operations will follow the guidelines set forth in Fiscal Policy No. 1.02 (Petty Cash Funds & Change Boxes). G. All City employees who handle cash will be included under the City’s insurance coverage. V. Methods of Payment A. The following methods of payment will be accepted: 1. Cash 2. Checks 3. Money Orders 4. Traveler’s Checks 5. Wires / Electronic Funds Transfer (EFT) 6. Other forms of tender as approved by the Finance Director and the City’s bank. 7. Credit Card Payments (Visa, Mastercard, or Discover) 8. Debit card payments Note: Debit card payments are currently not accepted but will be recognized as an allowable payment method once the City has established the procedures to process such payments. B. Checks G.12.a Packet Pg. 279 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 4 of 8 1. Checks, Money Orders and Traveler’s Checks are to be made payable to the City of Grand Terrace. 2. Change will not be made for checks written in excess of the invoice amount. In cases where the amount of the check is in excess of the invoice amount the difference will be refunded by means of a City check. 3. Personal Checks a. Personal checks presented in person must have the customer’s name and address preprinted on the face of the check. b. Starter/Blank checks are not to be accepted without the approval of the Finance Director. Proper identification must be provided and the name, address and phone number will be placed on the face of the check. c. Returned Items i. Returned Items will be subject to a returned check fee. ii. The amount of the Returned Check Fee will be determined annually and published in the City’s Fee Schedule. iii. Payors may not replace the returned item(s) in the same manner as the original presentment. (For example if the customer provided an NSF personal check they cannot replace this with another personal check.) iv. Upon the occurrence of a returned item, Finance staff will notify the accepting department so that the related goods or services can be held until the item is replaced. v. The Finance Department will maintain a list of customers who have presented payments that have been returned. The City may require other forms of payment from customers who have recurring issues with returned payments. d. Checks will not be accepted for the following reasons: i. Post-Dated Checks (Checks written on a future date) ii. Stale Dated Checks (Checks written 30 days prior) iii. Checks drawn on foreign currency e. The following personal check transactions will not be performed: i. No cash may be given as change for a personal check transaction. If a check is accepted for an amount greater than the cost of the service, a payment request must be prepared and processed as a refund once the check has cleared. In the case of business license renewals, a credit may be applied to the account. No Exceptions. (This constitutes an illegal loan of City funds.) ii. City employee personal checks will not be redeemed (cashed) for cash. iii. No two-party checks will be accepted. (A two-party check is made G.12.a Packet Pg. 280 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 5 of 8 payable to one party and endorsed to the City) f. When checks are received through the mail the following requirements will be met: i. Checks will be restrictively endorsed. The first employee at a Cash Receipt Location to come in contact with a check is responsible to have the check restrictively endorsed. Endorsement stamps will be obtained from the Finance Director or his/her designee. In the case of checks processed through the Remote Deposit process, the endorsement is automatically generated. ii. If the check is payable to the City but lacks sufficient information to identify the appropriate general ledger account number, write “SUSPENSE” on the deposit form and present to the Main Cashier or Finance Department staff. The check will then be deposited into the bank. When the appropriate general ledger account number is identified, provide the coding to Finance so that the funds can be properly applied to the account. The appropriate account should be identified prior to the month-end closing. 4. Business Checks Company checks will be inspected to ensure that multiple signatures are in place if required or if a “not valid over $” statement is included. 5. Traveler’s Checks a. Traveler’s checks are treated as cash but will require the following actions: i. Cashier must witness the customer write in the payee. ii. Cashier must witness the customer countersign the check. iii. Signature and countersignature should be compared. b. Identification will be required. c. No traveler’s checks drawn on foreign funds will be accepted. 6. Cashier’s Checks / Personal Money Orders a. Cashier’s Checks and Personal Money Orders will be accepted. b. Identification will be required. 7. Currency a. Anyone receiving cash payments is responsible for exercising reasonable care in screening cash transactions for counterfeit currency. G.12.a Packet Pg. 281 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 6 of 8 b. Mutilated currency is still legal tender. Staff may ask customers to substitute another bill for the mutilated bill. If they cannot substitute the bill staff must accept the mutilated bill. i. Currency is considered mutilated if it is torn, written on, missing a portion, or otherwise damaged. ii. Mutilated currency will be exchanged at full value if ¾ of the two serial numbers are present. Currency that is less than ¾ intact will not be accepted due to its diminished redemptive value. iii. Mutilated currency should be removed from the deposit and returned separately to the bank for collection. 8. Wires / Electronic Fund Transfers (EFT) a. All wires or EFTs are to be coordinated through the Finance Director or his/her designee. b. Documentation supporting the wire/EFT and identifying the correct revenue coding will be provided to Finance staff prior to the anticipated date of receipt. This will assist Finance staff in their daily cash management planning. VI. Documentation of Transactions A. All transactions will be recorded by means of an acceptable method of documentation. B. Acceptable methods of documentation include: 1. Cash Register 2. Point of Sale System (POS) 3. Manual Receipt books as issued by the Finance Department. C. Customers must always be provided a receipt which provides the following information: 1. Amount Paid 2. Date of Transaction 3. Service or Product provided 4. Manner of payment D. Receipts 1. Receipts provided to customers will be pre-numbered and issued in numerical sequence by the receipting location (Finance,and CDD counter and Child Care Center). 2. Manual Receipting will be performed when necessary (e.g., during power outages, computer system failures, or special events) by utilizing City of Grand Terrace receipt books, which are maintained and issued by the Finance Department. G.12.a Packet Pg. 282 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 7 of 8 3. Receipts generated by POS systems or cash registers should have a system generated receipt number that should be unique and should be issued in sequence. E. When City of Grand Terrace manual receipts are issued, copies will be distributed in the following manner: 1. Customer 2. Issuing department 3. Cash drawer/transaction 4. Receipt book VII. Balancing and Reconciling A. It is the responsibility of each cashier to balance and reconcile his/her cash drawer(s) daily. Cash drawer(s) should be equal to the change fund plus the balance of cash receipt activity for the day or shift. B. Cash drawer(s) should be reconciled against the daily cash receipts report, cash register tape or calculator tape depending on whether the site uses a POS system, a cash register, or manual receipts. C. Overage / Shortage 1. When the amount in the cash drawer does not balance with the daily report, staff will report an Overage or a Shortage as appropriate. 2. When an Overage or Shortage is identified, staff will complete the City of Grand Terrace Overage/Shortage Form and submit with their deposit. 3. The Overage/Shortage form will require the following information: a. Date of Deposit b. Amount of overage/shortage c. Reason for overage/shortage d. Signature of staff responsible for drawer e. Signature of supervisor 4. The Overage/Shortage Form must accompany deposit to the Main Cashier. 5. Overages or Shortages in excess of $10 must be immediately brought to the attention of the Finance Director or his/her designee upon identification. 6. Under no circumstances is City staff allowed to balance overages by keeping the overage out of the deposit or balance shortages by taking money from other sources, such as out of pocket or money held back from a previous overage. VIII. Requirements for Deposit A. All cash receipts will be deposited into the City’s bank account in a timely manner to ensure the proper posting of accounts and to ensure the safety of staff and City funds. G.12.a Packet Pg. 283 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.01 Subject: Cash Handling & Control Effective Date: 9/8/14 10/11/2022 Page 8 of 8 1. Deposits can be made at the Main Cashier during City Hall business hours. 2. Deposits not taken to the bank the same day will be secured by Finance staff in a fireproof and locked cabinet or safe. A drop safe is utilized at the Child Care Center for checks not processed the same day as received. No cash is to be dropped off. B. All Cash Receipt Locations will prepare deposits whenever accumulated deposits total $5,000 500 or at least once a week more. C. Funds received by staff who are not designated as a Cash Receipt Location must be forwarded to the Finance Department the same day as received. D. Cash Receipts are not to be sent through the City’s interoffice mail system. G.12.a Packet Pg. 284 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.02 Subject: Petty Cash Funds & Change Boxes Effective Date: 5/13/14 10/11/2022 Page 1 of 4 PURPOSE: For Petty Cash – To authorize the use of petty cash funds for emergency purchases and minor out-of-pocket expense reimbursement. For Change Boxes – To authorize change boxes for the sole purpose of making change. DEFINITIONS: Petty Cash is defined as a small fund of cash that is maintained for the payment of incidental expenses. It may also be advanced to employees on an exception basis to make small, incidental purchases where payment by check is not possible or not feasible given the circumstances. It is also available on an exception basis to reimburse City officials or employees for prior-approved, City business-related purchases which were originally paid out-of-pocket, and where reimbursement by check is not feasible under the circumstances. Change Box is defined as a small fund of cash requiring a particular mix of denominations of dollar bills and coinage for the explicit purpose of making change. Reimbursements and advances for incidental City purchases may not be made from a change fund. POLICY: I. Approval to Make Purchases or Receive Reimbursement from Petty Cash A. Advance approval from the employee’s department head must always be obtained to make a Petty Cash purchase or to be reimbursed for out-of-pocket expenses from Petty Cash. Without prior approval, there should be no expectation that an out-of-pocket expense will be reimbursed by Petty Cash. For recurring purchases, a standing approval may be given by the department head so that advance approval is not needed for each transaction. B. Use of Petty Cash is considered an exception to the standard means of procuring supplies. Issuance of a City check shall be the preferred method of procurement. II. Establishment and Authorization of Petty Cash Funds A. Petty Cash funds have been established in the following amounts: City Hall (Finance Department) $1,000 550 Child Care Center $500 Community Services * $50 100 * Maintained in the Finance Department and used for special events such as Animal Licensing. B. Increasing the above amounts or establishing any additional Petty Cash funds requires written recommendation by the applicable department head and Finance Director, and approval by the City Manager. G.12.a Packet Pg. 285 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.02 Subject: Petty Cash Funds & Change Boxes Effective Date: 5/13/14 10/11/2022 Page 2 of 4 III. Maximum Limit For Petty Cash Expense or Reimbursement A. The maximum amount of Petty Cash that may be used for a particular expense or reimbursement shall be as follows: City Hall Petty Cash $200 Child Care Center Petty Cash $200 B. Any request to exceed above limits limit must be approved by the Finance Director or his/her designee. IV. Responsibilities and Procedures A. Fund Custodians 1. Finance Department staff shall maintain the City Hall Petty Cash fund. The Petty Cash fund maintained at the Child Care Center shall have a fund custodian appointed by the department head and an appropriate authorization form on file with the Finance Department. 2. At all times, and without exception, the total Petty Cash fund shall consist of cash or a combination of cash and approved Petty Cash Request Forms, which together total the authorized amount of the fund, as identified in Section II.A of this Policy. B. Procedures for Advancement of Petty Cash for Incidental Purchases 1. Whether Tthe request is to utilize the City Hall or Child Care Center Petty Cash fund, the requesting department or individual must complete a Petty Cash Request Form, which shall provide the date, dollar amount requested, description, account number to be charged, and the appropriate signature approvals. 2. In the event the amount requested exceeds the limits set forth in Section III.A of this policy, the signature of the Finance Director of his/her designee shall be obtained to approve the disbursement. 3. The Petty Cash Request Form must clearly indicate if the monies are being “Advanced”. 3. A receipt or other supporting documentation substantiating a purchase is to be obtained from the employee within two (2) working days following the purchase. 4. If the purchase was for less than the advanced amount, the fund custodian must note the actual amount on the voucher form, obtain the difference in cash from the recipient, and return this amount to the Petty G.12.a Packet Pg. 286 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.02 Subject: Petty Cash Funds & Change Boxes Effective Date: 5/13/14 10/11/2022 Page 3 of 4 Cash fund. The recipient and fund custodian should initial the revised voucher form as concurrence. 5. If the purchase was for more than the advanced amount, the recipient must submit a new and approved Petty Cash Request Form for the total amount of the purchase. The fund custodian will reimburse the recipient for his/her out-of-pocket amount and return the original Petty Cash Request Form previously submitted. C. Procedure for Use of Petty Cash for Out-of-Pocket Reimbursement 1. The requesting department or individual must complete the Petty Cash Request Form for review and approval. The completed form shall provide date, dollar amount requested, description, account number to be charged, and the appropriate signature approvals prior to presentation. 2. Actual receipts of the out-of-pocket purchase must be attached to the Petty Cash Request Form. 3. In the event the amount requested exceeds the limits set forth in Section III.A of this Policy, the signature of the Finance Director or his/her designee shall be obtained to approve the disbursement. D. Replenishment of the Petty Cash Fund To replenish the Petty Cash fund, the fund custodian will attach all receipts and the applicable Petty Cash Request Forms, complete a payment request form, obtain the appropriate authorization signatures, and submit the reimbursement request to the Finance Department. V. Approval to Establish or Increase a Petty Cash Fund A. The Finance Director shall be responsible for review of any request to establish or increase a Petty Cash fund; however, approval to establish a new fund or increase an existing fund requires approval of the City Manager. B. Such requests shall be submitted in writing to the Finance Director by the department head responsible, and shall include justification for the request. If the Finance Director is in agreement with the request, he/she will indicate his/her approval and forward the request to the City Manager for final approval. VI. Change Boxes A. Authorization and Control 1. Three (3) Change Boxes are currently authorized in the Finance Department and integrated with the cash register. 2. Each Change Box maintains cash and coin totaling $200. G.12.a Packet Pg. 287 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.02 Subject: Petty Cash Funds & Change Boxes Effective Date: 5/13/14 10/11/2022 Page 4 of 4 3. Each Cash Box has a separate custodian with individual password security and daily reconciliation. B. Responsibilities and Procedures 1. Departments maintaining Change Boxes shall appoint fund custodians. 2. The procedure for establishing or increasing the amount of a Change Box shall be the same as that for Petty Cash funds (see Section V of this policy). 3. Internal control procedures for Change Boxes shall be the same as those for Petty Cash (see Section VII of this policy). 4. Under no circumstances shall a Change Box be used to advance money or to reimburse for incidental purchases. VII. Internal Control A. Audits of Petty Cash Funds and Change Boxes 1. Audits of Petty Cash funds and Change Boxes will be the responsibility of the Finance Department and shall consist of unannounced cash counts on a periodic basis, but no less than semi-annually. 2. Petty Cash custodians shall have the responsibility to balance their respective Petty Cash funds and Change Boxes on no less than a monthly basis. 3. Any balancing discrepancies from the periodic cash counts must be brought to the immediate attention of the Finance Director. Notification shall consist of a memo from the department head detailing the known or presumed causes of the discrepancy. G.12.a Packet Pg. 288 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 1 of 5 PURPOSE: To establish uniform guidelines and principles for the recognition, recording, collection and write-off of accounts receivable related to goods or services provided by the City or for citations issued by or administered by the departments of the City. DEFINITIONS: Accounts Receivable: A debt owed to the City that arises in the normal course of business dealings and not supported by negotiable paper; a claim against a debtor usually arising from sales or services rendered. Accounts receivable include but are not limited to, rent, concession fees, permit fees, license fees, citations, and payments for goods and services. Allowance for Doubtful Accounts: A valuation account (i.e. contra asset) that is subtracted from the trade receivable on the balance sheet. Bad Debt: A past due account receivable that, despite best efforts by the City, remains unsatisfied and for which there is reasonable doubt that the underlying debt will be satisfied in whole or in part. The expense for a bad debt is recognized when the account receivable becomes doubtful, which typically occurs prior to the write-off of the receivable. The recording of Bad Debt is for accounting purposes only and this action does not discharge the debt. The debt is still owed to the City, however, the amount shown as owed to the City has been adjusted off the financial statement to reflect the doubtful collection. Cognizant Department: The department within the City that negotiated the agreement or contract, or issued the citation or invoice giving rise to the particular account receivable. Debt: In the context of this policy, debt refers to a sum of money due by express agreement between the City and another party or parties. Debt may be owed the City by an individual or by a business entity. Past Due: Refers to an account receivable for which payment has not been received by the established due date. Unearned Revenue: An accounting transaction where items are not recognized as revenue in the current period because they do not meet the “availability” or “collectability” standards in order to be recorded in the current period. Write-Off: An accounting transaction that removes an account receivable from the accounting books and records, and signals the end of any further collection efforts related to that account receivable. G.12.a Packet Pg. 289 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 2 of 5 POLICY: I. Scope This policy pertains to all accounts receivable City-wide whether processed through the City’s financial system or through other subsidiary systems or processes. Accounts receivable include all monies owed to the City for services performed, taxes levied, or citations issued for other persons or organizations including contracts, grants and leases. II. Responsibilities A. Finance Department: It is the responsibility of the Finance Department to perform the following functions: 1. Record the transaction in the City’s general ledger. 2. Maintain supporting documentation. 3. Bill the customer or reimbursing agency. The exception to this is in cases where the Cognizant Department performs the billing function. In such cases, the Finance Director must review and approve the billing and collection procedures. 4. Maintain an aging schedule of outstanding Accounts Receivable and follow up monthly via statements, collection notices or telephone contact, as appropriate, to collect any amounts outstanding more than 30 days. (Note: While monthly follow up and collection efforts are administered by the Finance Department, the Cognizant Department may be asked to assist with collection efforts due to their relationship with the customer or reimbursing agency.) 5. Coordinate the referral of uncollected Accounts Receivable to a collection agency, as applicable and further addressed in Section III of this Policy. 6. Annually review the collectability of outstanding accounts at fiscal year-end. B. Cognizant Department: It is the responsibility of the department providing the service or issuing the citation to perform the following functions: 1. Obtain an agreement to pay such as contract or other form of documentation. 2. Provide the product or service to the customer. 3. Document the product or service provided. 4. Communicate with Finance staff and provide supporting documentation for the transaction. 5. Bill customer if not handled by the Finance Department. In cases where the billing function is performed by the Cognizant Department rather than the Finance Department, the Finance Director must review and approve the billing and collection procedures. 6. Communicate with customer or agency to resolve disputes or discrepancies. 7. Assist with collection efforts if requested to do so by the Finance Department. G.12.a Packet Pg. 290 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 3 of 5 8. In conjunction with the Finance Department, annually review the collectability of outstanding accounts at fiscal year-end. C. Contractors working on behalf of the City to collect for goods or services provided or for citations issued are responsible to perform the following functions: 1. Provide to the Finance Department a monthly aging schedule of all Accounts Receivable including an accounting of current billings, collections and any other activity conducted on accounts related to City services or citations. 2. Maintain a system that tracks the history and status of customer accounts. III. Payment Terms / Collections A. The following payment terms and collection process shall be followed. 1. Payments will be due within 30 days from the invoice date. 2. Interest/Penalty/Late Fees will be charged in a manner consistent with applicable ordinances or policies. The imposition of interest charges, penalties or late fees will be communicated to the customer through the following methods: a. A warning notice or statement will be sent out thirty (30) days in advance of the penalty effective date. b. A new statement will be sent out with the amended invoice/citation amount including the appropriate interest, penalty or late fee. 3. Statements will be issued on a monthly basis unless there are circumstances that warrant some other billing cycle. Exceptions from the monthly billing cycle must be approved by the Finance Director. 4. The Cognizant Department may be requested to assist Finance staff in collection efforts on accounts more than 60 days outstanding. 5. Accounts more than 60 days outstanding may be assigned to a collection agency as determined by the Finance Director. IV. Financial Reporting for Accounts Receivable A. The Finance Department will record the revenues and associated accounts receivable in accordance with Generally Accepted Accounting Principles. B. Periodically, at least annually in conjunction with the fiscal year-end audit, open accounts receivable balances will be reviewed in order to ensure that the City’s financial statements accurately and appropriately reflect the status of these accounts. C. The collectability of open accounts receivable will be estimated so that they can be reflected in the City’s financial statements at their net realizable value, which is consistent with Generally Accepted Accounting Principles. These amounts will be reflected in the following manner: G.12.a Packet Pg. 291 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 4 of 5 1. Enterprise Funds: For enterprise funds (if applicable), an allowance for doubtful accounts will be established in an amount to be determined by the Finance Director or his/her designee in consultation with the current outside auditor for the City. 2. Other Funds: Taxes, fees, citations and other types of revenues found in governmental funds that are due but not collected at year-end, and where there is some level of uncertainty about the ultimate collectability, will be recorded with a debit to Accounts Receivable and a credit to Unearned Revenue within the appropriate fund structure until the uncertainty is resolved at which time the appropriate entry would be a debit to Unearned Revenue and a credit to the appropriate revenue account. This method will result in recognizing the receivable on the financial statements without impacting fund balance with potential fluctuations as revisions are made to estimates. V. Write-Offs: A. As part of the annual review of accounts receivable balances, accounts that have progressed through the collection process and remain unpaid will be reviewed to determine collectability. Based on this review, a recommendation for the write-off of the account or additional collection efforts will be made. The collection process will consist of, but not be limited to, the following steps or processes: 1. Internal Collection efforts (including consultation with the City Attorney’s office for potential legal remedies); 2. Assignment to collection agency; 3. Claims to the Franchise Tax Board (Administrative & Parking Citations); 4. Claims to the Department of Motor Vehicles (Administrative & Parking Citations). B. The City Manager may, at his/her discretion, discharge from further accountability any City department, officer, or employee charged by law with the collection of money which is due and payable if any of the following circumstances apply: 1. The amounts are too small to justify the cost of collection. 2. The likelihood of collection does not warrant the cost involved. 3. The amount has been otherwise lawfully compromised or adjusted. Such discharge of accountability shall only be made upon consideration and approval of a verified application submitted by a department or division with the Finance Director and then approved by the City Manager. Such a discharge of accountability does not constitute a release of any persons from liability for payment of any amount due the City. C. The request to authorize the write-off of accounts must be accompanied by the following documentation: G.12.a Packet Pg. 292 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.03 Subject: Accounts Receivable Effective Date: 5/13/14 Page 5 of 5 1. A detailed account aging (listing of date of service/citation and amount owed by account); 2. A description of collection efforts undertaken; 3. Explanation of reason(s) account(s) is/are determined to be uncollectible; 4. A signed Application for Discharge of Accountability form (Exhibit A). D. Applications for Discharge of Accountability that have been deemed by the Finance Director to be appropriate to forgo further collection actions will be submitted to the City Manager for final approval. E. A copy of the completed Application for Discharge of Accountability and the supporting documentation will be forwarded to Finance staff for entry into the City’s financial system. G.12.a Packet Pg. 293 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) Exhibit A Application for Discharge of Accountability 1. I, on behalf of the Department apply for (Department Head) (Department) Discharge of accountability for collection of the following obligation(s) for the following reason(s): □ The amounts are too small to justify the cost of collection. □ The likelihood of collection does not warrant the cost involved. □ The amount has been lawfully compromised or adjusted. □ Other 2. The person(s) or entity(ies) liable for payment are: (Attach a separate sheet if necessary) Type/ Account/ Program Invoice # Department Name Date Balance I certify that all reasonable collection efforts have been attempted and that correspondence files and other collection documentation supporting the reasons for discharge of accountability shown above will be maintained for three years from the approved date of the discharge of accountability. (Department Head Signature) Above Application for Discharge of Accountability: □ Approved as submitted. □ Approved as submitted. □ Approved except as noted. □ Approved except as noted. _______________________________________ ________________________________ (Finance Director Signature) Date (City Manager signature) Date To: (1) Finance Director (2) City Manager From: Applicable Department Head Date: Subject: Application for Discharge of Accountability for Collection of Monies Owed the City G.12.a Packet Pg. 294 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.04 Subject: Investments Effective Date: 5/13/14 10/11/2022 Page 1 of 4 I. PURPOSE To establish a policy for the management and oversight of the City’s investments. II. POLICY It is the policy of the City of Grand Terrace to invest funds in a manner which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the City and conforming to all statutes governing the investment of City funds. III. SCOPE This investment policy applies to all financial assets of the City. These funds are audited annually and accounted for in the Annual Financial Report. Funds include the General Fund, Capital Projects Fund, Special Revenue Funds, Enterprise Funds and Trust Agency Funds, including funds held by the Successor Agency to the Grand Terrace Community Redevelopment Agency. IV. PRUDENCE Investments shall be made with judgment and care, under circumstances then prevailing which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The standard of prudence to be used shall be the “prudent person” standard and shall be applied in the context of managing an overall portfolio. Investment officers acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibility and/or liability for an individual security’s credit risk or market price changes. V. OBJECTIVES The primary objectives, in order of priority, of the investment program shall be: A. Safety: Safety of principal is the foremost objective of the investment program. Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses in individual securities do not exceed the income generated from the remainder of the portfolio. B. Liquidity: The investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. C. Yield: The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into G.12.a Packet Pg. 295 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.04 Subject: Investments Effective Date: 5/13/14 10/11/2022 Page 2 of 4 account the investment risk constraints and the cash flow characteristics of the portfolio. VI. DELEGATION OF AUTHORITY Authority to manage the investment of surplus funds is derived from California Government Code Section 53600, et seq., and this policy. Management of bond funds is controlled by Government Code Section 5922(d) and such investments must conform to the requirements of the bond indenture. In some cases, it may be appropriate for investments of bond proceeds to cover a longer duration than those limits established for surplus (operating) funds. Management responsibility for the investment program is hereby delegated to the Treasurer (or Finance Director if a separate position of Treasurer is not staffed), who shall establish procedures and operate the investment program consistent with this investment policy. Procedures may include, but not limited to, references to: safekeeping, repurchase agreements, wire transfer agreements, collateral/depository agreements and banking services contracts, as appropriate. The Treasurer (Finance Director) may delegate authority to subordinates for day-to-day investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer (Finance Director). VII. ETHICS AND CONFLICTS OF INTEREST Officers and employees involved in the investment process shall refrain from personal business that could conflict with the proper execution of the investment program, or which could impair their ability to make impartial investment decisions. VIII. AUTHORIZED FINANCIAL INSTITUTIONS AND BROKER/DEALERS A. The City will utilize only financial institutions and broker/dealers who are authorized to provide investment services in the State of California. B. No public deposit shall be made except in a qualified public depository as established by State laws. For broker/dealers of government securities and other investments, the Treasurer (Finance Director) shall select only broker/dealers who are licensed and in good standing with the Securities and Exchange Commission and the Securities Regulation Division of the California Department of Business Oversight. C. Broker/dealers and investment advisors utilized by the City shall be approved by the City Council. IX. AUTHORIZED INVESTMENTS The City is empowered by statute and authorized by the City Council to invest in the following: A. U.S. Treasury Obligations (Treasury Bills, Treasury Notes) G.12.a Packet Pg. 296 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.04 Subject: Investments Effective Date: 5/13/14 10/11/2022 Page 3 of 4 B. Repurchase Agreements C. Certificates of Deposit with State Banks, National Banks, State or Federal Savings Associations, State and Federal Credit Unions in California that are fully insured by federal deposit insurance. The Treasurer (Finance Director) may waive collateralization in lieu of deposit insurance. D. Negotiable Certificates of Deposit, Collateralized with U.S. Treasury Obligations Having a Market Value of 110%. The Treasurer (Finance Director) may, at his/her discretion, waive security for that portion of a deposit that is already covered by federal deposit insurance. E. Passbook Savings Accounts Placed with Federal or State Banks or Credit Unions that are fully insured by federal deposit insurance. The Treasurer (Finance Director) may waive collateralization in lieu of federal deposit insurance. F. Securities Issued by Federal Agencies G. Local Agency Investment Fund (LAIF) 1. This is a special fund of the State Treasurer, in which local agencies are allowed to pool their funds for investment purposes up to a maximum of $50 $75 million, with no restrictions on the amount of bond proceeds that can be invested. 2. LAIF is part of the Pooled Money Investment Account (PMIA). The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are the State Treasurer, Director of Finance, and State Controller. 3. All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The State Treasurer's Office takes delivery of all securities purchased on a delivery-versus-payment (DVP) basis using a third-party custodian. All investments are purchased at market and a market valuation is conducted monthly. Additionally, the PMIA has policies, goals and objectives for the portfolio to ensure that the goals of Safety, Liquidity and Yield are not jeopardized and that prudent management prevails. These policies are formulated by Investment Division staff and reviewed by both the PMIB and the LIAB on an annual basis. 4. The State Treasurer's Office is audited by the Bureau of State Audits on an annual basis and the resulting opinion is posted to the State Treasurer's Office website following its publication. The Bureau of State Audits also has a continuing audit process throughout the year. All investments and LAIF claims are audited on a daily basis by the State G.12.a Packet Pg. 297 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.04 Subject: Investments Effective Date: 5/13/14 10/11/2022 Page 4 of 4 Controller's Office as well as an in-house audit process involving three separate divisions. H. Mutual Funds issued by diversified management companies as defined by Section 23701(m) of the Revenue and Taxation Code, provided that the portfolio of such investment company or investment trust is limited to U.S. government obligations or agencies of the federal government and repurchase agreements fully collateralized by such securities. I. Pools and Other Investment Structures Incorporating Investments Permitted in California Government Code Sections 53601 and 53635 such as local government investment pools sponsored by counties and joint powers authorities. These entities will typically have their own investment policies, which may differ from that of the City. X. COLLATERALIZATION All certificates of deposit must be collateralized by U.S. Treasury obligations held by a third party. The Treasurer (Finance Director) may waive this requirement up to the amount already insured by federal deposit insurance. XI. SAFEKEEPING AND CUSTODY All securities purchased from broker/dealers shall be conducted on a delivery- versus-payment (DVP) basis and shall be held by a third-party custodian designated by the Treasurer (Finance Director) and evidenced by safekeeping receipts. This would not apply to any book-entry direct purchases from the U.S. Government. XII. DIVERSIFICATION The City will diversify its investments by security type and institution. G.12.a Packet Pg. 298 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.05 Subject: Fixed Assets Effective Date: 5/13/14 10/11/2022 Page 1 of 3 PURPOSE: To establish the criteria for determining fixed assets, as well as their physical control, accountability, and depreciation. DEFINITIONS: Fixed Assets refers to land, buildings, equipment, furniture, vehicles, and improvements other than buildings, acquired by the City of Grand Terrace for use in the provision of goods and services to its citizens. Not all Fixed Assets are required to be reported on the balance sheet. Fixed Assets with very short useful lives, or of small monetary amounts, can be “expensed” in the period in which they are acquired. Fixed Assets reported on the balance sheet are said to be “capitalized”, meaning the capital outlay is recorded as an addition to the asset account, and will have an expected useful life of at least two years. The monetary criteria by which governments decide to report Fixed Assets on the balance sheet, is known as the “capitalization threshold.” Governments may utilize separate thresholds for different classes of fixed assets, or establish a single threshold for all of its fixed assets. Capitalization is a financial reporting issue. It addresses the material expenditure level by which users of the City’s financial reports are informed of the policy decision to account for Fixed Assets. It does not eliminate the City’s responsibility for maintaining adequate control over all of its assets, or other equipment below the capitalization threshold, to minimize the risk of loss or misuse. POLICY: I. Fixed Asset Capitalization Threshold Criteria A. Land Land will be capitalized at actual cost. There is no specific dollar threshold. B. Improvements to Land Improvements to land with a value of $25,000 or more will be capitalized. Improvements valued at less than $25,000 will be expensed in the current year. C. Buildings and Building Improvements 1. Buildings and building improvements with a value of $25,000 or more will be capitalized. Buildings and improvements valued at less than $25,000 will be expensed in the current year. 2 Capitalized cost generally includes such items as site clearance and excavation, architectural fees, initial landscaping, building construction and others. G.12.a Packet Pg. 299 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.05 Subject: Fixed Assets Effective Date: 5/13/14 10/11/2022 Page 2 of 3 D. Equipment and Vehicles 1. Equipment and vehicles with a value of $5,000 or more will be capitalized. Equipment and vehicles valued at less than $5,000 will be expensed in the current year. 2. Capitalized cost generally includes purchase price, sales tax, transportation costs and installation. B. Useful Life 1. Fixed assets will be capitalized only if they have a useful life of at least two years following the date of acquisition. 2. Assets that do not meet this criterion shall be expensed regardless of cost. 3. Following are the various Fixed Asset categories and the corresponding useful life range for each category: a. Machinery & Equipment 5 – 15 years b. Vehicles 6 – 15 years c. Improvements other than Buildings 15 – 20 years d. Infrastructure 20 – 30 years e. Buildings 50 years f. Sewer Lines 90 years Note: The specific useful life assigned to each asset will be determined by the Finance Director, in accordance with Governmental Accounting Standards Board (GASB) Statement No. 34. C. Final Capitalization Decision Rests with Finance Director The final decision on whether to capitalize, or how much to capitalize a fixed asset, rests with the Finance Director or his/her designee. II. Identification and Inventory A. Each vehicle, furniture and equipment item that is classified as a Fixed Asset will have a unique identification tag affixed to the item by Finance staff for security and control purposes at the time the Fixed Asset is placed in service. B. An inventory of all Fixed Assets will be conducted by Finance staff annually to verify that no Fixed Assets are missing nor have been moved to another location. Any Fixed Assets that are missing or not in the assigned location when the inventory is conducted must be reported to the City Manager, along with a written explanation from the director of the department to which the Fixed Asset was assigned. G.12.a Packet Pg. 300 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.05 Subject: Fixed Assets Effective Date: 5/13/14 10/11/2022 Page 3 of 3 III. Depreciation A. Financial Statement Basis: 1. Fixed Assets will be depreciated over their estimated useful lives, as reflected in the City’s Annual Financial Report, in accordance with GASB Statement No. 34. 2. The straight-line method of depreciation will be used for all Fixed Assets, unless it is determined by the Finance Director or his/her designee, and confirmed by the City’s outside auditor, that another depreciation method is more appropriate for a given Fixed Asset or a Fixed Asset class. B. Budgetary Basis: 1. Depreciating Fixed Assets over their useful lives for budgetary purposes is not required but is a recommended practice in that it establishes an Asset Replacement Account for each Fixed Asset. Such a practice increases the City’s annual operating costs, in that depreciation charges become a budgeted expense, however, it levels operating expenses over time because when Fixed Assets are replaced, the funds (or a portion of the funds) have already been set aside and therefore do not need to be re- budgeted. 2. While the City has not previously depreciated Fixed Assets for budgetary purposes, it is the City Council’s intent to do so beginning with the FY 2014- 15 budget, and to continue the practice on a go-forward basis thereafter. G.12.a Packet Pg. 301 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.06 Subject: Disposition of Surplus Property Effective Date: 5/13/14 Page 1 of 1 PURPOSE: To define the process for identification and disposal of surplus City supplies, materials and equipment (collectively referred to as property). POLICY: I. Identifying Surplus Property: A. Departments will be responsible for identifying surplus property within work areas assigned to their control. B. Departments will notify the Finance Director of surplus property by completing a Surplus Property Form (Exhibit A). Such form will include descriptive information on the property (i.e., license number, model number, serial number, condition of the item, reason the item is no longer needed, etc.), along with the location of the property. The form must be approved by the respective department head, Finance Director and City Manager before disposition of the item is authorized. C If the surplus property is a Fixed Asset, as defined in Fiscal Policy No. 1.05, the Fixed Asset identification number must also be included on the Surplus Property Form, so that the City’s Fixed Asset records can be adjusted accordingly. D. If a Fixed Asset is being declared as surplus before its useful life (as reflected in the City’s Fixed Asset records) has been exhausted, detailed justification for the requested disposal must be provided on the Surplus Disposal Form. E. Finance staff, in consultation with the City Manager’s Office, will be responsible for making arrangements to warehouse surplus property, as needed, or determining if the item can be used by another department. F. Information Technology staff will be advised if any of the surplus property is computer or telephone equipment. II. Disposition of Surplus Property: A. Supplies, materials and equipment which are determined to be surplus and to have no further use by the City will be disposed of by Finance staff through trade- in, sale, auction, or donation. B. The City Manager or his/her designee will be responsible for determining which method of disposition will be most advantageous to the City. C. The method of disposition will be reflected on the Surplus Property Form. G.12.a Packet Pg. 302 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) Exhibit A Surplus Property Form Requesting Department Request Date Contact Person Property Description Location Model No. Serial No. Condition Reason No Longer Needed Recommended Disposal Method Trade-in Sale Auction Donation Comments regarding recommended disposal method: If the surplus property is a fixed asset that is not fully depreciated, please provide detailed justification for the requested disposal below. Submitted by: Date Department Head approval Date Disposal endorsed Disposal approved Disposal not endorsed Disposal not approved Finance Director Date City Manager Date Comments: Comments: G.12.a Packet Pg. 303 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 1 of 7 I. PURPOSE AND SCOPE To establish a policy and procedures for identifying acts that might be fraudulent, and to describe the steps to be taken when fraud or other dishonest activities are suspected, and to establish procedures to follow in accounting for missing funds, investigating other irregularities, and providing for restitution and recoveries. II. DEFINITIONS A. Fraud – the intentional false representation, or concealment of material fact for the purpose of personal gain for oneself or others; or inducing another to act similarly. Fraud and other similar irregularities include, but are not limited to: 1. Claim for reimbursement of expenses that are not job-related or authorized by City policy. 2. Forgery or unauthorized alteration of documents (checks, promissory notes, time sheets, agreements, purchase orders, budgets, etc.). 3. Misappropriation of City assets (funds, securities, supplies, furniture, equipment, etc.). 4. Improprieties in handling or reporting of financial transactions. 5. Authorizing or receiving payment for goods not received or services not performed. 6. Computer-related activity involving unauthorized alteration, destruction, forgery, or manipulation of data or misappropriation of City-owned software. 7. Misrepresentation of information on documents. 8. Misrepresentation of authority. 9. Any apparent violation of Federal, State, or Local laws related to dishonest activities or fraud. 10. Seeking or accepting anything of material value from those doing business with the City including vendors, consultants, contractors, lessees, applicants, and grantees. B. Employee – In this context, employee refers to any individual or group of individuals who receive compensation, either full-time or part-time, from the City of Grand Terrace. The term also includes any volunteer who provides services to the City through an official arrangement with the City or a City organization, as well as Council Members, consultants, vendors, G.12.a Packet Pg. 304 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 2 of 7 contractors, outside agencies and/or any other parties with a business relationship with the City of Grand Terrace. C. Management – In this context, management refers to any administrator, manager, director, supervisor, or other individual who manages or supervises funds or other resources, including human resources. D. Investigator – In this context, Investigator refers to any person, persons or governmental agency assigned by the City Manager and/or the City Council to investigate any fraud or similar activity. E. External Auditor – In this context, External Auditor refers to independent audit professionals who perform annual audits of the City’s financial statements. III. POLICY A. The City of Grand Terrace is committed to protecting its assets against the risk of loss or misuse. Accordingly, it is the policy of the City to identify and promptly investigate any possibility of fraudulent or related dishonest activities against the City and, when appropriate, to pursue legal remedies available under the law. B. This policy applies to any irregularity, or suspected irregularity, involving Employees, consultants, vendors, contractors, outside agencies, and/or any other parties with a business relationship with the City. C. Any investigative activity required will be conducted in an objective and impartial manner, without regard to the suspected wrongdoer’s length of service, position, title, or relationship to the City. D. All Employees are responsible for the detection, reporting and prevention of fraud, misappropriations, and other irregularities. E. It is the City’s intent to fully investigate, or cause the investigation of, any suspected act of fraud, misappropriation, impropriety or other similar irregularity. An objective and impartial investigation will be conducted regardless of the position, title, length of service or relationship with the City of any party who might be or become involved in or becomes the subject of such investigation. F. Each department of the City is responsible for instituting and maintaining a system of internal controls to provide reasonable assurance for the prevention and detection of fraud, misappropriations, and other irregularities. Management should be familiar with the types of improprieties that might occur within their area(s) of responsibility and be alert for any indications of such conduct. G.12.a Packet Pg. 305 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 3 of 7 G. Investigator, in conjunction with the City Manager, has the primary responsibility for the investigation of all activity as defined in this policy. H. Should the City Manager be a subject of the investigation, the City Attorney will be substituted for the City Manager in references throughout this policy. Employees or other individuals suspecting any fraudulent activity by the City Manager should report his/her concern directly to the City Attorney. I. Should the City Manager and City Attorney both be subjects of the investigation, the Mayor will be substituted for the City Manager and City Attorney in references throughout this policy. Employees or other individuals suspecting any fraudulent activity by both the City Manager and City Attorney should report his/her concern directly to the Mayor, who will in turn advise the other members of the City Council. J. Throughout the investigation, the Investigator will inform the City Manager and others that he/she designates, of pertinent investigative findings. The City Council shall also be immediately advised of the investigation and kept apprised of its status throughout the investigation. K. Employees will be granted whistle-blower protection when acting in accordance with this policy. When informed of a suspected impropriety, neither the City nor any person acting on behalf of the City shall: 1. Dismiss or threaten to dismiss the Employee, 2. Discipline, suspend, or threaten to discipline or suspend the Employee, 3. Impose any penalty upon the Employee, or 4. Intimidate or coerce the Employee. Violations of the whistle-blower protection will result in discipline up to and including dismissal. L. Upon the conclusion of the investigation of an allegation of fraud said to have been committed by an employee or official, the City Council shall be informed by the City Manager, or by the official whom received the complaint and authorized the investigation, of the outcome of the investigation. This shall be done in manner cognizant of the privacy right, if any, of the accused employee or official, as advised by the City Attorney. M. The City Manager, following review of investigation results, will take appropriate action regarding Employee misconduct. Disciplinary action can include termination, and referral of the case to an appropriate law enforcement agency and District Attorney’s Office for possible arrest and prosecution. G.12.a Packet Pg. 306 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 4 of 7 N. The City will pursue every reasonable effort, including court-ordered restitution, to obtain recovery of City losses from the offender, or other appropriate sources. IV. PROCEDURES A. Management Responsibilities 1. Management is responsible for being alert to, and reporting fraudulent or related dishonest activities in their areas of responsibility. 2. Each City official should be familiar with the types of improprieties that might occur in his or her area(s) of responsibility and be alert for any indication that improper activity, misappropriation, or dishonest activity is or was in existence in his or her area(s). 3. When an improper activity is detected or suspected, Management should determine whether an error or mistake has occurred or if there may be dishonest or fraudulent activity. 4. If Management determines a suspected activity may involve fraud or related dishonest activity, they should contact their next immediate supervisor not involved in the alleged misconduct – and together with that supervisor inform their Department Director (unless the Department Director is alleged to have involvement in the alleged misconduct) and City Manager. 5. If the City Manager is suspected to be involved in the alleged misconduct, the City Attorney should be notified in lieu of the City Manager. If the City Manager and City Attorney are both suspected to be involved in the alleged misconduct, the Mayor should be notified in lieu of the City Manager or City Attorney. The Mayor will, in turn, advise the other members of the City Council. 6. Management should not attempt to conduct individual investigations, interviews, or interrogations. However, Management is responsible for taking appropriate corrective actions to ensure adequate controls exist to prevent reoccurrence of improper actions. 7. Management should support the City’s responsibilities and cooperate fully with the Investigator, other involved departments, and law enforcement agencies in the detection, reporting, and investigation of criminal acts, including the prosecution of offenders. 8. Management must give full and unrestricted access to all necessary records and personnel. All City furniture and contents, including desks and electronic devices, are open to inspection at any time. There is no reasonable expectation of privacy. G.12.a Packet Pg. 307 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 5 of 7 9. In dealing with suspected dishonest or fraudulent activities, great care must be taken. Therefore, management should avoid the following: a. False accusations. b. Alerting suspected individuals that an investigation is underway. c. Treating Employees unfairly. d. Making statements that could lead to claims of false accusations or other offenses. 10. In handling dishonest or fraudulent activities, Management has the responsibility to: a. Make no contact (unless requested) with the suspected individual to determine facts or demand restitution. Under no circumstances should there be any reference to “what you did”, “the crime”, “the fraud”, “the misappropriation”, etc. b. Avoid discussing the case, facts, suspicions, or allegations with anyone outside the City, unless specifically directed to do so by the City Attorney. c. Avoid discussing the case, facts, suspicions, or allegations with anyone other than employees who have a need to know such as the City Manager, City Attorney, Department Head, Finance Director, Investigator, or law enforcement personnel – and should direct any City Council inquiries to the City Manager. d. Direct all inquires from the suspected individual, or his or her representative, to the Investigator. All inquires from the media should be directed to the City Manager. e. Take appropriate corrective and disciplinary action, up to and including dismissal, after consulting with the City Manager, in conformance with the City’s Personnel Rules and Regulations and the appropriate Memorandum of Understanding, as applicable. B. Investigator Responsibilities 1. Upon assignment by the City Manager, the Investigator will promptly investigate the allegations of fraud or other dishonest activities. G.12.a Packet Pg. 308 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 6 of 7 2. Employees must cooperate with the Investigator. Refusal to cooperate, or the conveyance of inaccuracies, may subject an Employee to disciplinary action up to and including dismissal. 3. In all circumstances where there appears to be reasonable grounds for suspecting that a fraud has taken place, the Investigator, in consultation with the City Manager, and City Attorney as appropriate, will contact the appropriate law enforcement agency. 4. The Investigator shall be available and receptive to receiving relevant, confidential information to the extent allowed by law. 5. If evidence is uncovered showing possible dishonest or fraudulent activities, the Investigator will proceed as follows: a. Discuss the findings with the City Manager and City Attorney. b. Meet with the City Manager to: 1) Determine if disciplinary actions should be taken. 2) Notify insurers and coordinate the filing of insurance claims. c. Take immediate action, in consultation with the City Manager and City Attorney, to prevent the theft, alteration, or destruction of evidentiary records. Such action shall include, but is not limited to: 1) Removing the records and placing them in a secure location, or limiting access to the records. 2) Preventing the individual suspected of committing the fraud from having access to the records. 6. In consultation with the City Manager and City Attorney, and the appropriate law enforcement agency, the Investigator may disclose particulars of the investigation to potential witnesses if such disclosure would further the investigation. 7. If the Investigator is contacted by the media regarding an alleged fraud or audit investigation, the Investigator will not speak with the media but will instead refer the matter to the City Manager before a response is made. 8. At the conclusion of the investigation, the Investigator will document the results in a confidential report to the City Manager. If the report concludes that the allegations are founded, the report will be forwarded to the appropriate law enforcement agency and the City Council will be advised. G.12.a Packet Pg. 309 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 1.07 Subject: Fraud Prevention & Detection Approval Date: 1/28/14 Page 7 of 7 9. Unless exceptional circumstances exist, a person under investigation for fraud is to be given notice in writing of essential particulars of the allegations following the conclusions of the audit. Where notice is given, the person against whom allegations are being made may submit a written explanation to the Investigator no later than seven calendar days after notice is received. 10. The Investigator will be required to make recommendations to the appropriate department for assistance in the prevention of future similar occurrences. 11. Upon completion of the investigation, including all legal and personnel actions, all records documents, and other evidentiary material obtained from the department under investigation will be returned to the City Manager. G.12.a Packet Pg. 310 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 2.01 Subject: Accounts Payable Effective Date: 5/13/14 Page 1 of 3 PURPOSE: To define the process for review, authorization and payment of vendor invoices. DEFINITIONS: Check Register: A report provided to the City Council on a monthly basis listing payments made to the various City vendors for the preceding month. Discount: A percentage or fixed amount that may be deducted from payment of a vendor’s invoice if payment is made by a date determined by the vendor. A common discount term is “1% 10”, meaning that one percent (1%) may be deducted from the invoice amount if payment is made with 10 days of the invoice date. EFT: Electronic Funds Transfer; may be used as a payment alternative to City check when authorized by the Finance Director. Invoice: A bill rendered to the City by a vendor requesting payment for goods or services provided to the City. Net 30: A specific type of trade credit where the payment is due in full 30 days after the item is purchased and an invoice received. Purchase Order: A City document authorizing a specified quantity of goods and/or services to be provided to the City at specified prices and terms. Receiving Document: A document provided to the City by a vendor attesting to the delivery of goods and/or services. Statement: A summary provided by a vendor showing amounts previously billed, paid, and the unpaid balance. Vendor: A business entity or agency providing goods and/or services to the City. POLICY: I. Payment Terms A. In order to maintain good business relations with the City’s Vendors, it is the policy of the City of Grand Terrace to pay Invoices for authorized goods or services within 30 days of Invoice receipt; (i.e., on a Net 30 basis) unless specified otherwise by City Purchase Order or contract. G.12.a Packet Pg. 311 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 2.01 Subject: Accounts Payable Effective Date: 5/13/14 Page 2 of 3 B. Invoices offering a Discount should be paid within the Discount terms whenever it is possible to process and pay the Invoice within those terms, unless it is determined by the Finance Director that it is more advantageous from a cash management standpoint to not take the Discount and instead to make payment on a Net 30 basis. (Minimum amounts that qualify for Discount processing may be established by the Finance Director in order to ensure that accelerated Invoice processing is cost effective in relation to the Discount amount.) II. Invoice Processing A. Vendors are to be instructed to mail (or e-mail) their Invoices to the City’s Finance Department, attention Accounts Payable. B. Invoices received in Accounts Payable are to be date stamped the same day as received in order to document the date received by the City. C. Should an Invoice mistakenly be received by a department other than Finance, it should be given to the Finance Department Accounts Payable staff the same day as received, so that the date stamp applied to the Invoice will reflect the date received by the City. D. On a timely basis, Accounts Payable staff should notify the applicable department that ordered the goods or services, that an Invoice has been received, so the responsible departmental staff can review and approve the Invoice for payment. E. Invoice approval shall be in accordance with the City’s Signature Authorization Listing. No Invoice should be paid without proper City authorization. F. If an Invoice is related to a City Purchase Order or contract, the quantity and prices reflected on the Invoice must be verified by the department responsible for the purchase to ensure that they are in agreement with the Purchase Order or contract. G. If an Invoice is provided by Accounts Payable staff to another department for review and approval, Accounts Payable staff must maintain a record of the Invoice and date it was provided to the applicable department to ensure that it is returned to Accounts Payable in time to meet the City’s Net 30 payment policy or Discount terms. If there is a dispute regarding the goods or services that were billed to the City, such that the Net 30 or Discount terms cannot be met, the applicable department must notify Accounts Payable staff of the dispute. H. Only original Vendor Invoices should be processed for payment. Payment should never be made from an Invoice copy or Statement. (Should an original Invoice be lost, such that a Vendor submits a duplicate Invoice for processing, the duplicate Invoice should be stamped as a “Duplicate Original” by Accounts Payable staff.) I. A City check should be mailed for all approved Vendor Invoices within 28 days of the date of Invoice receipt in order to comply with the Net 30 payment policy, allowing two days for mail processing and delivery. Exceptions would be Invoices G.12.a Packet Pg. 312 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 2.01 Subject: Accounts Payable Effective Date: 5/13/14 Page 3 of 3 offering Discount terms, which would be paid sooner than 28 days from receipt in order to qualify for the Discount (also allowing two days for mail processing and delivery) and payments made by EFT. J. If the City’s business software system allows a “three-way matching” process, such that a Purchase Order, Invoice and Receiving Document are electronically matched, this process should be implemented since it is considered to be an industry “best practice” and eliminates the need for Invoices to be manually verified or provided to another department for review and approval. IIII. City Council Approval A. A Check Register will be prepared by the Finance Department and submitted to the City Council for review and approval on a monthly basis during a regularly scheduled City Council meeting. B. The Check Register will list all vendor payments for the preceding month along with a brief description of the type of goods or services purchased and the account code(s) associated with each payment. C. In order to meet the Net 30 payment terms, and to take advantage of Discounts offered by Vendors, payment of Invoices will not be delayed pending approval of the Check Register. G.12.a Packet Pg. 313 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 1 of 6 PURPOSE: The purpose of this policy is to ensure that the City’s purchasing practices are carried out in accordance with the revised Purchasing Ordinance, which was approved by the City Council on November 27, 2012 October 11, 2022. DEFINITIONS: Notice Inviting Bids: A document issued to specified potential bidders, or posted on the City’s website, inviting bids for specified merchandise or service. The subsequent contract is generally awarded to the lowest responsible bidder. Purchase Order: A document which authorizes the delivery of specified merchandise or the rendering of certain service and the making of a charge for such merchandise or service. Purchase Requisition: A document submitted by a department requesting approval to purchase specified merchandise or service. Upon its approval, a Purchase Order is issued to the selected vendor or service provider. Purchasing Officer: The Purchasing Ordinance designates a Purchasing Officer, to be appointed by the City Manager. The City Manager has currently appointed the City’s Finance Director as the Purchasing Officer. Under the direction of this position, the Finance Department is charged with the responsibility of administering the Purchasing Ordinance. Request for Proposals (RFP): A document issued to specified potential service providers, or posted on the City’s website, requesting proposals for services. The subsequent contract is awarded based on a number of factors including professional expertise, experience, service level, references and pricing. Consideration of factors other than pricing differentiates an RFP process from a “Notice Inviting Bids” process. POLICY & PROCEDURES: I. Informal Purchases ($0 -2,500 $500) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. A Purchase Order (P.O.) is not required for purchases. C. Price quotes are not required for purchases, although they are encouraged when easily obtainable. D. Payment for purchases is made by submitting a Request for Payment form with approval by the applicable Department Head or designee (per the Authorized Approval Listing). E. Use of City credit card or petty cash may be appropriate for certain low-value purchases, with separate guidelines applying to these purchases. Formatted: Line spacing: 1.5 lines G.12.a Packet Pg. 314 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 2 of 6 II. Informal Purchases ($2,500-5,000 501 - $1,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. A Purchase Order (P.O.) is required for purchases. C. Price quotes are not required for purchases, although they are encouraged when easily obtainable. D. Payment for purchases is made by submitting a Purchase Requisition form with approval by the applicable Department Head or designee (per the Authorized Approval Listing). E. Approval from the City Manager is required. III. Open Market Purchases ($5,001-25,000 1,001 - $10,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. Three (3) informal price quotes must be obtained. C. A Purchase Requisition must be submitted to Finance by the requesting department with the price quotes attached as back-up. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). D. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) E. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). IV. Formal Purchases (over $25,000 10,000 ) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. G.12.a Packet Pg. 315 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 3 of 6 B. Formal contracting procedures must be followed as enumerated in Section 3.24.080 of the Purchasing Ordinance, including: 1. Notice Inviting Bid 2. Bidders’ List 3. Bidders’ Security 4. Bid Opening Procedure 5. Performance Bonds as applicable 6. Formal Award of Contract by the City Council C. Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report attached as backup. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). D. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) E. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. number. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). V. Professional Services A. Professional Services are not awarded via formal bidding, since there are a number of factors other than pricing used to determine the company that is best suited to provide the service. Such factors include professional expertise, experience, service level and references. B. Although not formally bid, it is recommended that professional services with an expected value greater than $10,000 utilize a competitive selection process via a Request for Proposals (RFP). C. RFPs should be posted on the City’s web page and distributed to known companies with expertise in the applicable service area. Generally, at least 30 days should be allowed for proposal submittal following the RFP issuance date. It may also be appropriate to schedule a pre-submittal conference to clarify the RFP and respond to the interested parties’ questions. D. Contracts for professional services with a value of $25,000 10,000 or less may be awarded by the City Manager. G.12.a Packet Pg. 316 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 4 of 6 E. Contracts for professional services with a value greater than $25,000 10,000 must be awarded by the City Council. F. Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report (if applicable) attached as backup. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). G. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) H. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. number. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). VI. Single Source Purchases / Waiver of Bidding / Piggy Backing A. If it is determined that only one company is available or capable of providing the desired goods or services, the purchase may be approved without obtaining price quotes (purchases of $5,001 to $25,000 $1,001 to $10,000), conducting formal bidding (purchases over $25,000 10,000), or utilizing an RFP process (professional services over $25,000 10,000), provided that approval is received for the single source purchase, as follows: 1. Purchases with a value of $5,001 - $25,000 $1,001 - $10,000: Memo explaining the basis for the single source purchase must be submitted by the applicable Department Head along with the Purchase Requisition and approved by the City Manager. 2. Purchases with a value greater than $25,000 10,000: Approval for the single source purchase must be submitted via a staff report in conjunction with the contract award and approved by the City Council. B. If a purchase is not considered to be single source but a waiver of bidding/competitive selection is requested because it is in the best interest of the City, approvals must be obtained by the City Manager ($5,001 - $25,000 $1,001 - $10,000) or City Council (over $ 25,000 $10,000) as described above. C. Justification must be provided if a waiver of bidding/competitive selection is requested. A waiver is an exception to the competitive bid process. As a result, G.12.a Packet Pg. 317 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 5 of 6 explanation/documentation is required to begin the review process. Below are examples for requesting the waiver of the bid/competitive selection process: i. Sole Source: Only one company is available/capable of performing the task or providing the goods or services; the goods or services provided by a specific company are unique in quality, performance, or use specifications. ii. Time Sensitive: The need for the desired good/service is needed to correct or prevent an emergency; iii. Intrinsic Value: When a good or service is determined by its historic, artistic, or educational value. D. If the City has determined that another municipality (host agency) has completed the competitive bid/RFP process awarding a contract within the last 6 months for goods and/or services that the City may require, in order to avoid time and costs, the City has the option to “piggyback” on the public agency’s existing contract provided the following requirements are met: i. Approval must comply with the purchasing policy as follows: a. $0 - $2,500 $500 requires Department Head approval; b. $2,501 - $25,000 501 - $10,000 requires City Manager approval; and c. Over $25,000 10,000 requires City Council approval. ii. The other public agency’s bid and contract award process meet’s the City’s bid and contract award requirements; iii. The host agency and the City (piggybacking agency) must sign an agreement allowing the piggyback; iv. The vendor/contractor must agree to the piggyback, offering the same terms and conditions written in their contract to the piggyback agency; and v. The vendor must inform both the host agency and the piggybacking agency in writing that they agree to the piggyback. VII. Contract Requirements A. If a purchase involves work to be performed on City premises or the public right of way, regardless of the dollar amount, a City contract is recommended to adequately address liability issues. If there is uncertainty regarding whether or not a contract is needed for a given purchase, the City Attorney should be consulted. G.12.a Packet Pg. 318 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 10/11/2022 Page 6 of 6 B. Contracts up to $25,000 10,000 in value may be approved by the City Manager, following City Attorney approval as to legal form. Whenever possible, the standard City contract form should be used. C. Contracts over $25,000 10,000 in value require City Council approval via the agenda process. D. Contracts should include a requirement for the service provider to obtain a City Business License. The department administering the contract is responsible for coordinating with Finance to ensure that a Business License is obtained if the contract value is $25,000 10,000 or less (City Manager approval). If the contract value is greater than $25,000 10,000 (City Council approval), the City Clerk’s Office will coordinate with Finance to ensure that a Business License is obtained. E. The department administering the contract is also responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements if the contract value is $25,000 10,000 or less (City Manager approval). If the contract value is greater than $25,000 10,000 (City Council approval), the City Clerk’s Office will be responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements. VIII. Conflict of interest and unlawful activity E. A. Any evaluation or selection practice that would result in unlawful activity including, but not limited to, kickbacks or unlawful consideration is expressly prohibited. Any award of a contract where an employee, officer or agent has used his or her position with the City to influence a governmental decision in which he or she knows or has reason to know that he or she has a financial interest in any person or entity who seeks such a contract or in the outcome of the selection process in any way, is expressly prohibited. Formatted: Indent: Left: 0" Formatted: Normal, Indent: Left: 0", Hanging: 0.5", No bullets or numbering, Tab stops: Not at 1.04" Formatted: Font: (Default) Arial, 11 pt G.12.a Packet Pg. 319 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 1 of 8 1.0 STATEMENT OF POLICY It is the policy of the City of Grand Terrace to: • Institute practices that reduce waste by increasing product efficiency and effectiveness; Purchase products that minimize environmental impacts, toxics, pollution, and hazards to worker and community safety; • Purchase products that reduce greenhouse gas emissions in their production, shipping, use and discard; and • Purchase products that include recycled content, are durable and long-lasting, and conserve energy and water 2.0 PURPOSE This Policy is adopted in order to: • Conserve natural resources, • Minimize environmental impacts such as pollution and use of water and energy, • Eliminate or reduce toxics that create hazards to workers and our community, • Support strong recycling markets, • Reduce materials that are landfilled, • Increase the use and availability of environmentally preferable products that protect the environment, • Identify environmentally preferable products and distribution systems, • Reward manufacturers and vendors that reduce environmental impacts in their production and distribution systems or services, and • Create a model for successfully purchasing environmentally preferable products and encourage other purchasers in our community to adopt similar goals. 3.0 STRATEGIES FOR IMPLEMENTATION 3.1 Source Reduction 3.1.1 Institute practices that reduce waste, encourage reuse, and result in the purchase of fewer products. G.12.a Packet Pg. 320 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 2 of 8 3.1.2 Purchase remanufactured products such as toner cartridges, tires, furniture, equipment and automotive parts when possible. 3.1.3 Consider short-term and long-term costs in comparing product alternatives. This includes evaluation of total costs expected during the time a product is owned, including, but not limited to, acquisition, extended warranties, operation, supplies, maintenance and replacement parts, disposal costs and expected lifetime compared to other alternatives. 3.1.4 Purchase products that are durable, long lasting, reusable or refillable and to the extent possible avoid purchasing one-time use or disposable products. 3.1.5 Request vendors eliminate packaging or use the minimum amount necessary for product protection. Vendors shall be encouraged to take back packaging for reuse. 3.1.6 Specify a preference for packaging that is reusable, recyclable or compostable, when suitable uses and programs exist. 3.1.7 Encourage vendors to take back and reuse pallets and other shipping materials. 3.1.8 Encourage suppliers of electronic equipment, including but not limited to computers, monitors, printers, and copiers, to take back equipment for reuse or environmentally sound recycling when the City of Grand Terrace discards or replaces such equipment, whenever possible. 3.1.9 Consider provisions in contracts with suppliers of non-electronic equipment that require suppliers to take back equipment for reuse or environmentally sound recycling when the City of Grand Terrace discards or replaces such equipment, whenever possible. 3.1.10 Promote electronic distribution of documents rather than printing or copying. 3.1.11 When producing paper documents, print and copy all documents on both sides to reduce the use and purchase of paper. Printers and copiers shall be set to default to duplex. 3.1.12 Reduce the number and type of equipment needed to perform office functions to save energy and reduce purchasing and maintenance costs. Eliminate desktop printers, redundant network printers and reduce the number of fax machines leased or owned by the City of Grand Terrace. Consider lease or purchase of multi- function devices. 3.1.13 Ensure all imaging equipment is installed with energy and resource-efficient settings set as default. G.12.a Packet Pg. 321 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 3 of 8 3.2 Recycled Content Products 3.2.1 Purchase products for which the United States Environmental Protection Agency (U.S. EPA) has established minimum recycled content standard guidelines, such as those for printing paper, office paper, janitorial paper, construction, landscaping, parks and recreation, transportation, vehicles, miscellaneous and non-paper office products. 3.2.2 Purchase multi-function devices, copiers and printers compatible with the use of recycled content and remanufactured products. 3.2.3 To the extent feasible and in accordance with California Public Contract Code, Sec. 10409, purchase re-refined lubricating and industrial oil for use in its vehicles and other equipment, as long as it is certified by the American Petroleum Institute (API) as appropriate for use in such equipment. This section does not preclude the purchase of virgin-oil products for exclusive use in vehicles whose warranties expressly prohibit the use of products containing recycled oil. 3.2.4 Ensure pre-printed recycled content papers intended for distribution that are purchased or produced contain a statement that the paper is recycled content and indicate the percentage of post-consumer recycled content. 3.3 Energy Efficient and Water Saving Products 3.3.1 Purchase energy-efficient equipment with the most up-to-date energy efficiency functions. This includes, but is not limited to, high efficiency space heating systems and high efficiency space cooling equipment. 3.3.2 Replace inefficient interior lighting with energy-efficient equipment when possible. 3.3.3 Replace inefficient exterior lighting, street lighting and traffic signal lights with energy-efficient equipment when possible. Minimize exterior lighting where possible to avoid unnecessary lighting of architectural and landscape features while providing adequate illumination for safety and accessibility. 3.3.4 Purchase U. S. EPA Energy Star certified products when available. 3.3.5 Purchase U.S. EPA WaterSense labeled water-saving products when available. This includes, but is not limited to, high-performance fixtures like toilets, low-flow faucets and aerators, and upgraded irrigation systems. 3.4 Green Building Products and Practices 3.4.1 Consider Green Building practices for design, construction, and operation as described in the LEED Rating Systems for all building and renovations undertaken by the City of Grand Terrace. G.12.a Packet Pg. 322 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 4 of 8 3.5 Landscaping Products and Practices 3.5.1 Select plants to minimize waste by choosing species for purchase that are appropriate to the microclimate, species that can grow to their natural size in the space allotted them, and perennials rather than annuals for color. Native and drought-tolerant plants that require no or minimal watering once established are preferred. 3.5.2 Hardscapes and landscape structures constructed of recycled content materials are encouraged. Limit the amount of impervious surfaces in the landscape. Permeable substitutes, such as permeable asphalt or pavers, are encouraged for walkways, patios and driveways. 3.6 Toxics and Pollution Prevention Products and Practices 3.6.1 Manage pest problems through prevention and physical, mechanical and biological controls when the City of Grand Terrace and its contractors maintain buildings and landscapes. 3.6.2 Use products with the lowest amount of volatile organic compounds (VOCs), highest recycled content, low or no formaldehyde and no halogenated organic flame retardants when purchasing building maintenance materials such as paint, carpeting, adhesives, furniture and casework. 3.6.3 Prohibit the purchase of products that use polyvinyl chloride (PVC) such as, but not limited to, furniture and flooring. 3.6.4 Purchase products and equipment with no lead or mercury whenever possible. For products that contain lead or mercury, the City of Grand Terrace should give preference to those products with lower quantities of these metals and to vendors with established lead and mercury recovery programs. In addition, whenever lead- or mercury-containing products require disposal, the City of Grand Terrace will dispose of those products in the most environmentally safe manner possible. All fluorescent lamps and batteries will be recycled. 3.6.5 Purchase or specify commercial carpeting that meets NSF/ANSI 140 Standard for Sustainable Carpet Assessment and require old carpet that is removed be recycled. 3.6.6 When replacing vehicles, consider less-polluting alternatives to diesel such as compressed natural gas, bio-based fuels, hybrids, electric batteries, and fuel cells, as available. 3.7 Bio-Based Products 3.7.1 Encourage the use of vehicle fuels made from non-wood, plant-based contents such as vegetable oils whenever practicable. G.12.a Packet Pg. 323 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 5 of 8 3.7.2 Use paper, paper products and construction products made from non-wood, plant- based contents such as agricultural crops and residues when feasible. 3.7.3 Use bio-based plastic products that are biodegradable and compostable, such as bags, film, food and beverage containers, and cutlery when feasible. 3.7.4 Purchase compostable plastic products that meet American Society for Testing and Materials (ASTM) standards as found in ASTM D6400. Meet ASTM D6868 standards for biodegradable plastics used as coatings on paper and other compostable substrates when feasible. 3.8 Forest Conservation Products 3.8.1 To the greatest extent practicable, do not procure wood products such as lumber and paper that originate from forests harvested in an environmentally unsustainable manner. 3.8.2 Encourage the purchase or use of previously used or salvaged wood and wood products whenever practicable. 4.0 RESPONSIBILITIES 4.1 City of Grand Terrace recognizes its duty to act in a fiscally responsible as well as a timely manner. 4.2 Nothing contained in this policy shall be construed as requiring a department, purchaser or contractor to procure products that do not perform adequately for their intended use, exclude adequate competition, risk the health or safety of workers and citizens, or are not available at a reasonable price in a reasonable period of time. 4.3 Nothing contained in this policy shall be construed as requiring the City of Grand Terrace, department, purchaser, or contractor to take any action that conflicts with local, state or federal requirements. 4.4 Grand Terrace has made significant investments in developing a successful recycling system and recognizes that recycled content products are essential to the continuing viability of that recycling system and for the foundation of an environmentally sound production system. 5.0 IMPLEMENTATION 5.1 The Director of Finance shall implement this policy in coordination with other appropriate Grand Terrace personnel. G.12.a Packet Pg. 324 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 6 of 8 5.2 Upon request, buyers making the selection from competitive bids shall be able to provide justification for product choices that do not meet the environmentally preferable purchasing criteria in this policy. 5.3 Encourage vendors, contractors and grantees to comply with applicable sections of this policy for products and services provided to the City of Grand Terrace. 6.0 PROGRAM EVALUATION 6.1 The Director of Finance shall periodically evaluate the success of this policy’s implementation and report to the City Council. 7.0 DEFINITIONS 7.1 “American Society for Testing and Materials” means ASTM International, an open forum for the development of high quality, market relevant international standards use around the globe. 7.2 “Bio-Based Products” means commercial or industrial products (other than food or feed) that utilize agricultural crops or residues but does not include products made from forestry materials. 7.3 “Biodegradable plastic” means the degradation of the plastic must occur as a result of the action of naturally occurring microorganisms. 7.4 “Buyer” means anyone authorized to purchase or contract for purchases on behalf of this jurisdiction or its subdivisions. 7.5 “Compostable plastic” means plastic that is biodegradable during composting to yield carbon dioxide, water and inorganic compounds and biomass, at a rate consistent with other known compostable materials and leaves no visually distinguishable or toxic residues. 7.6 “Contractor” means any person, group of persons, business, consultant, designing architect, association, partnership, corporation, supplier, vendor or other entity that has a contract with the City of Grand Terrace or serves in a subcontracting capacity with an entity having a contract with the City of Grand Terrace for the provision of goods or services. 7.7 “Degradable plastic” means plastic that undergoes significant changes in its chemical structure under specific environmental conditions. 7.8 “Energy Star” means the U.S. EPA’s energy efficiency product labeling program. G.12.a Packet Pg. 325 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 7 of 8 7.9 “Energy-Efficient Product” means a product that is in the upper 25% of energy efficiency for all similar products, or that is at least 10% more efficient than the minimum level that meets Federal standards. 7.10 “Federal Energy Management Program” is a program of the Department of Energy that issues a series of Product Energy Efficiency Recommendations that identify recommended efficiency levels for energy-using products. 7.11 “LEED Rating System” means the most recent version of the Leadership in Energy and Environmental Design (LEED) Rating System, approved by the U.S. Green Building Council, and designed for rating new and existing commercial, institutional, and residential buildings. 7.12 “NSF/ANSI” means NSF International follows the American National Standards Institute (ANSI) standards development process. Standards are developed by joint committees (balanced stakeholder groups of public health, industry and user representatives). 7.13 "Post-consumer Material" means a finished material which would normally be disposed of as a solid waste, having reached its intended end-use and completed its life cycle as a consumer item, and does not include manufacturing or converting wastes. 7.14 “Pre-consumer Material” means material or by-products generated after manufacture of a product is completed but before the product reaches the end-use consumer. Pre-consumer material does not include mill and manufacturing trim, scrap, or broke which is generated at a manufacturing site and commonly reused on-site in the same or another manufacturing process. 7.15 “Recovered Material” means fragments of products or finished products of a manufacturing process, which has converted a resource into a commodity of real economic value, and includes pre-consumer and post-consumer material but does not include excess resources of the manufacturing process. 7.16 “Recycled Content” means the percentage of recovered material, including pre- consumer and post-consumer materials, in a product. 7.17 “Recycled Content Standard” means the minimum level of recovered material and/or post-consumer material necessary for products to qualify as “recycled products.” 7.18 “Recycled Product” means a product that meets the City of Grand Terrace’s recycled content policy objectives for post-consumer and recovered material. 7.19 “Remanufactured Product” means any product diverted from the supply of discarded materials by refurbishing and marketing said product without substantial change to its original form. G.12.a Packet Pg. 326 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.01.02 Subject: Environmentally Preferable Purchasing Effective Date: 11/15/16 Page 8 of 8 7.20 “Reused Product” means any product designed to be used many times for the same or other purposes without additional processing except for specific requirements such as cleaning, painting or minor repairs. 7.21 “Source Reduction” refers to products that result in a net reduction in the generation of waste compared to their previous or alternate version and includes durable, reusable and remanufactured products; products with no, or reduced, toxic constituents; and products marketed with no, or reduced, packaging. 7.22 “U.S. EPA Guidelines” means the Comprehensive Procurement Guidelines established by the U.S. Environmental Protection Agency for federal agency purchases as of October 2007 and any subsequent versions adopted. 7.23 “Water-Saving Products” are those that are in the upper 25% of water conservation for all similar products, or at least 10% more water-conserving than the minimum level that meets the Federal standards. 7.24 “WaterSense” means a partnership program by the U.S. Environmental Protection Agency. Independent, third-party licensed certifying bodies certify that products meet EPA criteria for water efficiency and performance by following testing and certification protocols specific to each product category. Products that are certified to meet EPA specifications are allowed to bear the WaterSense label. 8.0 EFFECTIVE DATES 8.1 This policy shall take effect on November 15, 2016. G.12.a Packet Pg. 327 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.02 Subject: Budget Appropriation Adjustments Effective Date: 5/13/14 Page 1 of 3 PURPOSE: To establish policies and procedures regarding changes to appropriation amounts after adoption of the Annual Budget by the City Council. DEFINITIONS: Type A Adjustments: New or increased appropriations necessary to fund service level changes, new programs, fixed assets, and expenditures in excess of approved budget amounts. Type B Adjustments: New or increased appropriations with offsetting revenues such that there is no net budgetary impact. Type C Adjustments: Transfer of budget amounts from one operating program to another in different funds and/or departments. Type D Adjustments: Transfer of budget amounts from a Capital Improvement Plan (CIP) project to another, regardless of fund. Type E Adjustments: Transfer of budget amounts from one division, program, or object code to another within the same fund and department. POLICY: I. Responsibility A. Budget adjustments shall be processed at such time it is determined that additional funds are needed in a program (business unit) so that expenditures will not exceed the City Council approved appropriation for the program (business unit). This shall apply to operating programs as well as capital projects. B. Every budget adjustment request requires the completion of a Budget Appropriation Adjustment (BAA) Form. Written justification is required on the BAA Form for all requests. II. Procedures and Required Approvals A. Type A: New or increased appropriations from reserves or fund balance 1. New or increased appropriations from reserves or fund balance shall require City Council approval. A properly completed BAA Form must be submitted as an attachment to the City Council staff report describing the appropriation request. The Finance Department will retain the BAA Form following its review and verification; it will not be included as an attachment to the final staff report. 2. These adjustments must be approved by the City Council prior to commitment of funding in excess of budgeted amounts. G.12.a Packet Pg. 328 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.02 Subject: Budget Appropriation Adjustments Effective Date: 5/13/14 Page 2 of 3 B. Type B: New or increased appropriations with offsetting revenues; no net budgetary impact 1. The City Manager is authorized to approve such appropriations. 2. This type of appropriation adjustment shall require the following approvals: Requestor: Program Supervisor/Manager Approval: Department Head Approval: Finance Director Approval: City Manager or designee C. Type C: Transfers of budget amounts between operating programs in different funds and/or departments, regardless of fund, shall require the following approvals: 1. The City Manager is authorized to approve such appropriations. 2. This type of appropriation adjustment shall require the following approvals: Requestor: Program Supervisor/Manager Approval: Department Head Approval: Finance Director Approval: City Manager or designee D. Type D: Transfer of budget amounts between Capital Improvement Plan (CIP) projects, regardless of fund, shall require the following approvals: 1. The City Manager is authorized to approve such appropriations. 2. This type of appropriation adjustment shall require the following approvals: Requestor: Program Supervisor/Manager Approval: Department Head Approval: Finance Director Approval: City Manager or designee E. Type E: Transfer of budget amounts from one division, program, or object code to another within the same fund and department shall require the following approvals: 1. The Finance Director is authorized to approve such appropriations. 2. This type of appropriation adjustment shall require the following approvals: Requestor: Program Supervisor/Manager Approval: Department Head Approval: Finance Director III. Request Procedures Requests for Budget Appropriation Adjustments shall be completed on the authorized BAA Form (Exhibit A). G.12.a Packet Pg. 329 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.02 Subject: Budget Appropriation Adjustments Effective Date: 5/13/14 Page 3 of 3 IV. Routing and Follow-up A. Type A adjustments (City Council approval required) 1. The department requesting the appropriation adjustment is responsible for completing the BAA request form and attaching it to the corresponding City Council staff report. 2. The Finance Director will retain the BAA Form following its review and verification; it will not be forwarded with the staff report for subsequent reviews and approvals, nor included as an attachment to the staff report. 3. Upon Council approval, the Finance Department will process the budget adjustment, with no further approvals on the BAA Form required. B. All Other Types of Adjustments 1. The department shall prepare the BAA Form and specify in the justification box of the form, the reason for the adjustment request. If there is insufficient room for the justification, an additional Word document specifying the purpose or need for the adjustment may be attached. 2. After departmental staff signatures are obtained, the BAA Form should be routed to the Finance Director for review and final processing. V. City Council Staff Reports A. The recommendation and fiscal impact sections of the report to City Council should include specific reference to the nature of the appropriation adjustment. 1. If the adjustment is to increase an amount of an existing budgeted project or program, the proper account codes must be included in the recommended action. 2. If the request is for a new project or program, the report should indicate the proposed funding sources and amounts of appropriations required. 3. In addition, if new revenue sources are associated with the proposed project/program (i.e., grants, special revenues, etc.) these should be included and identified in the recommended City Council action so that appropriate revenue accounts can be adjusted. 4. A properly completed BAA Form must be submitted as an attachment to the City Council staff report describing the appropriation request. The Finance Department will retain the BAA Form following its review and verification; it will not be included as an attachment to the final staff report. G.12.a Packet Pg. 330 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) Date: Department: Cost Center: Type of Adjustment: New/Additional Appropriations (Expense) from Reserves/Fund Balance Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. 5: City Manager 6: City Council New/Additional Appropriations (Expense) with offsetting Revenue (no net budgetary impact). Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. 5: City Manager Transfers between Funds & Departments (Inter-fund/Inter-Departmental Transfers) Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. 5: City Manager Transfers between Capital Improvement Program (CIP) projects within the same fund (no net budgetary impact) Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. 5: City Manager Transfers between Cost Centers within the same Department & Fund (no net budgetary impact) Required Signatures: 1: Requestor 2: Dept. Head 3: Finance Dept. Revenue Current Budget Increase/ (Decrease) Revised/ Budget Expense Current Budget Increase/ (Decrease) Revised/ Budget Transfer OUT (From) Current Budget Increase/ (Decrease) Revised/ Budget Transfer IN (To) Current Budget Increase/ (Decrease) Revised/ Budget Prepared by: Requestor Extension:Date: Authorization: Department Head Extension:Date: Approval as to Funds: Finance Department Extension:Date: Authorization: City Manager Extension:Date: TOTAL TOTAL Council Action No. Justification/Reason for Budget Appropriation Adjustment Justification/Reason for Budget Appropriation Adjustment EXHIBIT A - City of Grand Terrace Budget Appropriation Adjustment (BAA) Form Council Action Date GL Account No. GL Account No. Note: For Type A adjustments, please attach minutes from the City Council meeting to provide documentation of City Council approval. Signature by the Mayor on the BAA Form is not required. Account Description Justification/Reason for Budget Appropriation Adjustment GL Account No. GL Account No. Justification/Reason for Budget Appropriation AdjustmentAccount Description TOTAL TOTAL Account Description Account Description A) B) C) D) E) G.12.a Packet Pg. 331 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 1 of 110 PURPOSE: This policy establishes the basic guidelines for travel on City business. It defines the City’s expectations of its employees (and other City officials) who are required to travel in connection with their work responsibilities, identifies which expenses will be advanced or reimbursed to the employee by the City, and which expenses are considered the personal responsibility of the employee. Business travel is defined as authorized attendance at conferences and seminars, or authorized travel for any other purpose in connection with official City responsibilities. Business travel includes one-day trips and trips requiring one or more overnight stays. As a general rule, this policy is not intended to cover business meetings of less than one day involving travel of less than 150 miles round trip, even though employees may be reimbursed for their cost of meals and travel. In such cases Department Head discretion is required and departments may decide that such travel fits within the scope of this policy. As an example, a day trip to Los Angeles to attend a business meeting will likely involve meals and transportation expense reimbursement. However, such travel may involve less than $100 of expenditures and are generally not considered as part of the scope of this policy. POLICY: I. General Standards A. Mandatory Use of the Travel Authorization & Expense Reporting Form (Exhibit A). The Travel Authorization & Expense Reporting Form (Travel Form) is a mandatory document for all employees, whether or not one expects to receive a travel advance or reimbursement for business related travel expenses. It serves as an estimate of the total cost of attending conferences, meetings and seminars, and provides documentation of cash advances, vendor payments and credit card purchases. Equally important, it serves as documented authorization to travel on City business and helps identify when the employee is traveling on behalf of the City in case of an accident or other incident. The requirement to submit a Travel Form also applies to City Council Members and other appointed officials (such as Planning Commissioners), who will coordinate travel with the City Manager’s Office and obtain City Manager approval of the Travel Form as a prudent internal control measure. B. Policy Emphasizes Economy and Practicality with Reasonable Subsistence and Accommodations while on City Business 1. This policy provides for reasonable subsistence, modes of travel, and lodging and accommodations while on City business. The intent is to allow employees to eat in moderately priced restaurants, stay in moderately priced hotels, and travel comfortably. Employees are responsible for using good judgment in G.12.a Packet Pg. 332 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 2 of 110 making reservations, and travel decisions should emphasize economy and efficiency at all times. For example: a. When using air travel, employees should always book flights in coach as opposed to first class. b. Although the Internet offers numerous specials and low-priced flights, flexibility is often sacrificed and sales are often final. Employees should consider this when booking their flights and can be held personally accountable if a flight is booked incorrectly, costing the City money. To provide more flexibility, designated travel agencies should be used. c. When choosing a hotel for a conference, it is preferable to stay at the hotel where the conference is being held even though it may be slightly more expensive than others in the area. 2. It is permissible to combine personal travel with business travel, such as departing for a business conference a few days early to utilize personal vacation time. But only strictly business-related expenses will be advanced or reimbursed and personal travel shall not result in higher business travel costs or they must be reimbursed to the City. D. Policy is Not Intended to be All Inclusive 1. This policy is not intended to address every issue, exception or contingency that may arise in the course of City travel or attendance at meetings. 2. Accordingly, the basic standard that should always prevail is to use good judgment and economy in the use and stewardship of City funds. II. Travel Authorization & Expense Reporting Form (“Travel Form”) A. Travel Authorization 1. Travel Authorization approval by Department Head and City Manager is required whenever: a. Total estimated cost will exceed $200; or b. Overnight accommodations will be required. 2. Department Head authorization is acceptable for employee travel that is estimated at $200 or less and does not involve overnight accommodations. 3. Travel Restrictions a. Out-of-state travel authorizations require approval by the City Manager (or his/her designee). G.12.a Packet Pg. 333 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 3 of 110 b. Department Head travel authorizations require approval of the City Manager (or his designee). 4. Determining Methods of Payment for Travel Expenses a. The City will pay for legitimate and reasonable travel-related business expenses, including transportation, lodging, registration fees, meals, and any other related expenses if they are for official business and fit within these guidelines. b. There are four methods of payment for travel-related expenses: (1) direct payment to vendors by check; (2) payment by City credit card (secured in the Finance Department); (3) reimbursement to the employee for out-of- pocket expenses; and (4) cash advances, which include per diem. c. Direct payments to vendors are made by the City to an organization to pay for specific costs related to the trip. These costs usually include registration fees, lodging and airfare. d. City credit card (may be used to prepay travel expenses, including registration fees, lodging and airfare, or may be used to cover expenses as they arise on the trip. Credit cards may not be used to advance per diem. e. The employee will be reimbursed for actual, reasonable and allowable out-of-pocket expenses related to travel on City business. The employee must account for out-of-pocket expenses with receipts. f. Cash advances, including per diem, are lump sum payments made to the employee prior to one’s travel based on reasonable estimated expenses. Ground transportation is often difficult to estimate, but may be advanced to the employee using reasonable estimates based on the itinerary. Upon the employee’s return, and with the exception of per diem expenses, the employee must account for advanced expenses with receipts. Advances exceeding substantiated expenses must be returned to the City. If authorized expenses (excluding meals and incidentals covered by per diem) exceed the amount advanced, the City will reimburse the employee for the difference. Note: Receipts are not needed to justify meals and incidental expenses covered by per diem. g. To obtain direct vendor payments or to receive a cash advance, the employee must do the following prior to his trip: 1) Complete the appropriate sections of the Travel Form. G.12.a Packet Pg. 334 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 4 of 110 2) Attach documentation for all payments requested. This would include copies of registration forms, announcements, itineraries, and copies of seminar brochures that provide detail of costs. 3) Attach completed and signed Direct Pay Request forms for all travel-related payment requests. a) Include the appropriate authorization signatures. b) Retain a copy of the completed form to reconcile and account for actual expenses upon return from trip. c) Submit the Travel Form and any Direct Pay Request forms to the Accounts Payable section of the Finance Department. 5. Per Diem (Meals and Incidentals) a. Meals and incidentals, as defined by Internal Revenue Service (IRS) guidelines, include all meals and miscellaneous hotel services, such as tips to waiters and porters. Per Diem will be paid at the current rates established by IRS guidelines determined by the minimum federal per diem rate table for the City’s region. All IRS tax rules will apply. b. By IRS regulations, per diem is defined as travel subsistence extending beyond one day and there is no requirement to provide receipts. However, for one day or partial days of travel, meals expense receipts are required and the standard one day, non-per diem meal allowance will be $79 45 allocated as follows: Breakfast: $ 8.00 18.00 Lunch: $12.00 20.00 Dinner: $25.00 36.00 Incidentals: $5.00 If an employee is advanced money for one-day or partial day meals and the total amount of all receipts is less than the amount advanced, the difference must be reimbursed to the City. Conversely, if the employee exceeds the total one-day or partial day standard non-per diem meal allowance and is requesting reimbursement, receipts MUST be provided and reimbursement shall be at the discretion of the Finance Director based on the circumstances. c. As a general rule, employees are expected to base their requests for daily meals and incidentals according to the federal per diem rates. G.12.a Packet Pg. 335 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 5 of 110 d. As an alternative, an employee can elect not to receive per diem and request reimbursement of actual, reasonable and allowable subsistence expenses that are substantiated with receipts. This alternative must be approved in advance and receipts must accompany the request for reimbursement. However, a combination of per diem and reimbursement of meals and incidental business expenses is prohibited. e. Partial per diem for travel of more than one day may be advanced depending on the employee’s departure time and return time. The request for partial or full per diem will be based on the employee’s itinerary and will be granted based on a “fair and reasonable” request. Partial days per diem will be prorated as follows: 1) Travel of less than 12 hours in a day will be prorated to one-half day of per diem. 2) Travel of 12 hours or more in a day will count as a full day for per diem. For example, assuming a daily per diem of $79 45, if an employee leaves on Monday at 6:00 A.M. to San Francisco for a business conference and returns to work at 1:00 P.M. on Tuesday, the per diem advance would be $158 90. 6. Other Expenses a. Alcoholic Beverages – Expense reimbursement for alcoholic beverages will not be allowed. b. Spouses and Guests – Spouses and guests are welcome to accompany employees on City travel and at conferences, seminars and meetings. However, any additional costs associated with the participation of a spouse or guests are the responsibility of the employee. 7. Method of Travel a. When planning the transportation portion of the trip, the employee must consider all aspects of cost to the City, such as daily expenses, overtime, lost work time, and actual transportation costs. In general, common carrier (bus, train or plane) is preferred mode of transportation. b. The City will only pay or reimburse employees for the cost of coach class flights. c. Employees shall be responsible for canceling any airline or hotel reservations they will not use. Any charge for an unused reservation shall be considered the employee’s personal expense, unless failure to cancel the reservation was due to circumstances beyond the employee’s control. G.12.a Packet Pg. 336 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 6 of 110 d. If available, a City-owned vehicle should be used for travel unless the employee receives a mileage allowance. e. If a City vehicle is not available, or if there is another reason why the employee should drive his/her personal automobile, the City will reimburse the employee with either the cost of the most appropriate means of transportation, or the actual mileage involved in the travel, whichever is the lesser of the two. f. The reimbursed mileage rate for use of a private vehicle for City travel will be at the current Standard Federal Mileage Rate set by the IRS. g. Mileage reimbursement for a private vehicle being used for City travel must consider the employee’s normal commute to work and whether the employee receives a monthly vehicle allowance. If the employee does not receive a vehicle allowance, the employee is entitled to reimbursement for all business miles driven, with the following exceptions: 1) If travel begins and ends at work, the entire business mileage will be reimbursed. 2) If travel begins at work and ends at home (or vice versa), and if the total business mileage driven is less than the total mileage that would have been driven if travel began and ended at work, the total mileage can be claimed. (Example: John Doe lives in Banning and is attending a morning conference in Los Angeles. The trip from Banning to Los Angeles is 75 miles, but is only 60 miles from Grand Terrace to Los Angeles. Since his normal commute would bring him to Grand Terrace and 10 miles closer, in this case John would be reimbursed 120 miles, the round-trip distance from City Hall). 3) If travel begins at home and ends at home, and if the total business mileage driven is less than the total mileage that would have been driven if travel began and ended at work, the total mileage can be claimed. (Example: Jane Doe lives in Banning and is attending a conference in Palm Springs. The round-trip mileage from her house is 120 miles, but would have been 130 miles had she started at and returned to the Grand Terrace City Hall. In this case Jane would be reimbursed for the 120-mile round trip). 4) Under no circumstances shall reimbursement be given to the total business mileage claimed that exceeds the total mileage had the travel begun and ended at work. G.12.a Packet Pg. 337 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 7 of 110 h. If an employee already receives a monthly vehicle allowance, a total of 50 miles must be deducted for each one-way travel to or from the authorized City business travel destination. The mileage exceeding a 50-mile radius is subject to reimbursement, however, the first 50 miles each way is considered applicable to the employee’s vehicle allowance. The above four rules shall also apply. i. In order to drive a privately-owned vehicle on City business, the employee must: 1) Possess a valid California driver’s license. 2) Carry liability insurance, as required by the State of California 3) Realize that any damage to the employee’s personal vehicle and/or service or repair occurring on the trip will be the employee’s responsibility, as insurance costs are factored in the IRS per mile cost reimbursement. j. If local ground transportation is needed during the trip, the use of public transit such as airport shuttles, buses, streetcars, and subways is appropriate. k. Ground transportation must be efficient and cost effective. Use of taxis, hotel courtesy buses and local shuttles are allowed when other public transit or common carriers are not reasonably available. l. Requests for advances of ground transportation costs (including tips) should be substantiated whenever possible. If the cost cannot be substantiated, advances will be based on a fair and reasonable estimate of expenses. m. Ground transportation receipts are required for reimbursement. Employee requests for out-of-pocket reimbursement of ground transportation costs without receipts are subject to review and approval by the Finance Director. n. The use of a rental car is authorized in cases where it is economical or more feasible relative to using ground transportation. o. If a car rental is required, the employee may request reimbursement for out-of-pocket costs including fuel, upon return from business travel. Receipts are required. The optional car rental agency-provided insurance is not a reimbursable cost. Since employees are normally insured by their own automobile insurance carrier for use of a rental vehicle, employees may opt for this coverage at their own expense. p. The City will reimburse all reasonable business travel expenses, including bridge tolls and parking fees incurred as a result of an G.12.a Packet Pg. 338 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 8 of 110 employee’s authorized use of a private vehicle or City vehicle while traveling on City business. Receipts are required. q. Without receipts, any employee request for out-of-pocket reimbursement of costs incurred as a result of an employee’s authorized use of a private vehicle or City vehicle while traveling on City business is subject to review and approval by the Finance Director and additional approval by the City Manager. 8. Compensation for Travel Time (Non-Exempt Employees) a. When travel time exceeds the normal workday or workweek, the City’s rules for overtime apply to those employees eligible for overtime. b. In determining overtime compensation, normal commute time should be deducted from total travel time. c. Normal unpaid meal periods are not considered work time while traveling. d. Overtime eligibility applies equally to drivers and passengers, and should be granted whether travel occurs during normal workdays or on weekends or evenings. 9. Lodging a. Lodging is allowed for attendance at conferences, seminars or meetings that are in excess of 50 miles or one hour of travel time, one-way, from the employee’s home. The City Manager may approve exceptions to the 50-mile/one hour minimum if he/she considers the request to be reasonable and practical, especially considering the destination, the difficulty of the commute, and the starting time of the conference. b. Reasonable lodging expenses will be paid at actual cost including taxes and parking, for as many nights as necessary. c. The lodging accommodations should be economical and practical. In general, the employee should select the most reasonably priced accommodations available, but consistent with the purpose and goals of the trip. d. When choosing a hotel for a conference, it is preferable to stay at the hotel where the conference is being held even though it may be slightly more expensive than others in the area, in order to reduce transportation expenses such as cab fares. e. Other non-business related room charges, including movies or refreshments are not reimbursable. G.12.a Packet Pg. 339 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 9 of 110 f. When making lodging reservations, be sure to ask if a “government rate” is available. Some cities exempt travelers on government business from their local transient occupancy tax (TOT). This can represent as much as a 12%-15% savings on lodging costs depending on the TOT rate. Check with the hotel for this exemption and form. g. Since there is seldom a difference in the room rate for double occupancy, it is permissible for an employee to share a room with a spouse or guest at no additional cost to the City. However, if double occupancy of a room by a non-City employee results in an increased room rate, the difference will be the employee’s personal expense. Furthermore, incurring a non-business related expense using advanced City funds is prohibited. 10. Incidental Expenses a. Incidental expenses include but are not limited to tips for persons who provide services, such as waiters, maids, porters, and baggage handlers. b. Incidental expenses incurred while on an overnight business trip are covered by per diem. To receive reimbursement on incidental expenses incurred on a day business trip, receipts should be submitted whenever possible. If the employee is unable to obtain a receipt, the costs should be documented on the Travel Form as a reimbursement request, along with an explanation of why a receipt was not available. Reimbursement of such unsupported expenses will require approval by the Finance Director and City Manager. c. Business-related expenses such as telegrams and telephone calls, copying and faxing, computer accessories, tapes and other training materials purchased at a conference are reimbursable with receipts, and become property of the City. Whenever possible, employees should anticipate the need for supplies and should take whatever they need with them instead of purchasing these supplies at their destination, where the cost may be significantly more than what the City would normally pay. d. Tips are generally an allowable and reimbursable cost of business travel, but they must be reasonable. 1) For business trips not involving per diem, they should never exceed 15% of the cost of the meal. 2) For ground transportation, they should not exceed 10% of the fare. 11. Non-Reimbursable Expenses G.12.a Packet Pg. 340 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 10 of 110 Personal entertainment costs are not reimbursable. These include headphones or alcoholic beverages purchased on airplanes, video rentals and refreshment bars in hotel rooms, spas and gyms, laundry or dry cleaning and other items of a personal nature. B. Travel Expense Report 1. When returning from a trip, a final accounting of all expenses related to the trip must be approved by the Supervisor and Department Head, and then submitted to the Finance Department within 15 working days. Department Head Travel Expense Reports must be approved by the City Manager. City Manager Travel Expense Reports must be approved by the Finance Director and Mayor. 2. A Travel Expense Report is required in all cases – there are no exceptions. This is mandatory whether or not the advance received is equal to the expenses incurred, whether the employee is eligible for additional reimbursement, or whether money is owed to the City. 3. If the employee owes the City for the unused balance of a cash advance (other than per diem), he/she should pay the amount due to the Finance Department cashier and attach the receipt to his Travel Expense Report. The amount returned to the City must be applied as a credit to the expense account originally used for the cash advance. 4. Supervisors and Department Heads approving Travel Expense Reports are responsible for ensuring that: a. All expenses are reasonable, necessary and consistent with this policy; b. Any required receipts are attached; c. The final disposition is correct (balance due employee, or balance due City); d. Any amounts due to the City are fully reimbursed; and e. Final accounting of all expenses related to the trip is submitted to the Finance Department within 15 workdays following the employee’s completed travel. 5. If the City owes the employee money, the employee may request reimbursement by forwarding the Travel Expense Report to the Finance Department along with a Request for Payment. If the amount requested is $100 or less, a Petty Cash Request may be submitted for reimbursement. Requests for reimbursement will be processed on the next available Accounts Payable check run, if submitted by the normal Accounts Payable deadline, but no later than 10 workdays following receipt. Requests for reimbursement by petty cash will be reimbursed per the City’s Petty Cash & Change Boxes Policy (Fiscal Policy No. 1.02). G.12.a Packet Pg. 341 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.03 Subject: Travel & Related Business Expenses Effective Date: 5/13/14 10/11/2022 Page 11 of 110 6. If the employee owes the City money, he/she should attach a check to the Travel Expense Report. G.12.a Packet Pg. 342 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) ORIGINAL G.12.a Packet Pg. 343 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) EXHIBIT A - City of Grand Terrace - Travel Authorization & Expense Reporting Form Instructions: Prior to travel or training, complete Part I to have anticipated expenses approved. Submit a copy of this approved form with each payment expense submitted. Complete Part II to confirm total travel expenses including any approved adjustments. If paid with a procurement card, submit a copy of this approved form with the appropriate bank statement, otherwise submit to Accounts Payable within 15 workdays of the travel end date. Travel Authorization I Pre-Trip Employee Signature Pre-Trip Supervisor Signature (where applicable)I Name: Purpose of Trip: Job Title: Destination: Dates: Expense Type Estimated $ Actual $ Registration: Lodging: Mileage: Airfare: Total: Per Diem: Total Travel Days (Enter# of Days) >» X Supervisor's Approval X Date City Manager Approval (as required) X X Department Head Approval X Date REVISED G.12.a Packet Pg. 344 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 1 of 5 PURPOSE: To clarify, standardize and identify the benefits of seeking potential grants and the process to properly manage and maximize the use of grants. GOALS: To seek grant funding that will enhance, support and provide additional services to the City, which will clearly provide a positive benefit to the community or needed infrastructure improvements that may not be provided at adequate levels due to limited City revenues. POLICY: To perform cost/benefit analysis of a grant request and to identify potential financial impacts relating to costs associated with the hiring of new personnel, equipment and technology and other related costs during the term of grant and after expiration of grant. I. Pre-Application Process – Review of Grant/Grant Proposal Information Form A. Upon notification of a potential grant, the City Manager shall assign it to the applicable department. A department that receives direct notification of a grant opportunity may also initiate the grant application process after notifying and receiving concurrence from the City Manager’s office. The department shall designate a Grant Project Manager to identify and review potential grant sources, obtain grant application materials and related regulations. This process is not applicable for ongoing direct allocation grants such as the Community Development Block Grant (CDBG) program. Sections II, IV and V of the Grant Policy shall not apply to potential grants of less than $25,000 which the Grant Project Manager determines have matching or administrative requirements which can be handled within the approved City budget and current staffing resources. 1. Federal Grants: identify all requirements needed prior to and after approval of grant such as public hearings, notification of public clearinghouse, advisory boards, lobbying efforts, monitoring/audits and type of reporting requirements. Address issues dealing with supplanting of local funds which restrict funding or existing staff/technology and limit funding to only new hires and new technology. 2. State Grants: identify state requirements including mandatory quarterly/annual reports and monitoring. 3. The annual CDBG entitlement process is not addressed in this policy because the procedures and regulations are outlined under 24 CFR Part 570. Individual projects funded under CDBG shall be applicable to certain provisions of this policy relating to Federal grants. II. Completion of Grant Proposal Information Form & Cost/Benefit Worksheet A. Based on information obtained, the Grant Project Manager shall complete the Grant Proposal Information Form (Exhibit A) and Grant Cost/Benefit Worksheet (Exhibit B). The grant funding identified in Exhibit B should be based on a five- G.12.a Packet Pg. 345 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 2 of 5 year budget projection if applicable. Exhibits A and B shall be reviewed and approved by the Department Head, Finance Director, and City Manager (or designee) as part of the grant application process. 1. Identify amount or percent of grant funds covering cost of personnel, consultant services, design, construction, equipment and technology. 2. Identify source and amount of matching funds needed to be budgeted for the term of the grant. 3. The Finance Director shall determine if adequate funds are available to meet required local match plus any additional costs exceeding the match. 4. The City Manager and the Finance Director, after consultation with Human Resources, shall determine whether grants that have supplanting conditions relating to the hiring of new personnel and technology shall be considered for funding. a. Due to the financial impacts of short-term grants that fund personnel for a limited time, special review must be undertaken to analyze the cost/benefit of the grant. b. If the cost/benefit analysis clearly demonstrates a strong community benefit, the City Manager may: (1) limit the hiring of new personnel to the term of the grant; or (2) authorize continued funding of the new personnel costs after termination of the grant. III. Complete Grant Application A. The grant application shall be completed by the Grant Project Manager under the direction of the applicable Department Head. The Grant Project Manager shall write and complete the grant proposal. The Grant Project Manager shall also confirm that the grant proposal meets eligibility requirements and is consistent with the grant guidelines; that goals and objectives are clearly identified; and that the percent and amount of costs funded by the grant and required matching funds are clearly identified. 1. Ensure the complete computation of personnel and other applicable costs such as consultant services, estimated design and construction, equipment and technology, etc. are included in the grant document. Obtain the computation of component grant costs as follows: a. Personnel costs: Finance Department b. Computer equipment and technology-related costs: Information Services c. Design and construction costs: Public Works Department d. Other miscellaneous costs: Finance Department G.12.a Packet Pg. 346 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 3 of 5 2. Verify the source and amount of the required local match for term of grant. Ensure that all direct costs or in-kind services are identified and included in the grant as eligible expenses or City matching funds to the extent possible. IV. City Council Review A. A City Council staff report describing and justifying the benefits of the grant application request shall be presented to the Council prior to grant submittal. In the event of agenda scheduling conflicts due to untimely notification by funding agency of grant deadline, the City Council shall be advised by memo (or other communication such as the City Manager’s Report) of the grant submittal. A staff report shall be submitted after grant award notification requesting acceptance of grant award. B. Complete resolution for City Council approval if required by grant. V. Finance Director/City Manager Review A. The completed grant application shall be reviewed by the Finance Director and City Manager (or designee) prior to submittal: 1. Review completed grant proposal and staff report to evaluate cost/benefit of receiving administering grant, assure consistency with program goals and identification of personnel, equipment, technology and other related costs. 2. Verify all costs associated with the grant are identified and fully accounted for throughout the term of the grant. 3. The City Manager (or designee) shall have the exclusive authority to execute grant agreements, to sign financial reports and grant applications. VI. Grant Award Notification A. Upon notification of award the Grant Project Manager shall take the following steps: 1. Prepare a staff report to City Council for acceptance of grant award, if the City Council had not previously approved the grant application. The staff report must include a Budget Appropriation Adjustment Form to record grant revenues and expenditures, as further defined in Fiscal Policy No. 3.03 (Budget Appropriation Adjustments). Coordinate with Finance to establish/set up fund accounts for grant, if necessary. G.12.a Packet Pg. 347 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 4 of 5 2. Following City Council’s acceptance, prepare a News Release for review and approval of the City Manager’s office. 3. Schedule a meeting to discuss the applicable financial, project management and reporting requirements of new grant. a. Review personnel, equipment and technology data to determine if needs and costs are still applicable or need updating. b. Set up separate meeting for design and construction projects to discuss project issues and grant requirements related to Federal funding such as preparation of construction-related documents procurement, Davis Bacon compliance standards, etc., and hold a pre-construction conference and take minutes of meeting. c. Initiate all necessary procurement activities, distribute grant documents to those departments involved in the project, hire grant-funded personnel and purchase equipment and technology. d. Monitor projects for compliance with grant requirements, assure timely submittal of required quarterly, semi-annual or annual progress reports. The Grant Project Manager shall coordinate with assigned department to specify the responsibilities of the grant- funded personnel that may involve collection of data for preparation of reporting requirements. 4. Provide technical and administrative assistance to the grantee department if needed. 5. Ensure that all grant-funded contracts include the required grant provisions and route to applicable staff. 6. Prepare appropriate purchase requisitions and progress payment requests. The Grant Project Manager shall prepare requests for grant payments and/or reimbursements and obtain appropriate department signatures and shall review for eligibility of purchase under conditions of the grant. 7. Coordinate with Finance staff the submittal of copies of grant documentation associated with grant-funded purchase requisitions. The Grant Project Manager shall identify personnel, equipment and technology and reference with specific grant name or number on documentation for purchase requisition. 8. Prepare electronic transfer draw-downs for Federally-funded projects or other procedure identified by funding agency. 9. Review/approve change order requests for construction projects. G.12.a Packet Pg. 348 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.04 Subject: Grants Effective Date: 5/13/14 Page 5 of 5 VII. Grant Expiration/Project Completion A. The Grant Project Manager and assigned department shall notify other departments of project completion. 1. Review departmental grant file for completeness of all required documentation and mandatory reports. Complete final assessment report if required. 2. Retain records for the required time period. 3. Participate in grant audit or monitoring. 4. Prepare News Release regarding completion of project if appropriate. 5. Schedule and attend grant close-out meetings (construction projects). G.12.a Packet Pg. 349 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) EXHIBIT A GRANT PROPOSAL INFORMATIONAL FORM Name of Grant: Funding Source: Federal State Other (Describe) Responsible Department: Amount of Grant: $ Local Match Required $ Please provide brief answers for the following questions. 1. Is the grant consistent with the policy and goals identified in the Grant Policy (Fiscal Policy No. 3.04)? 2. Provide brief description of grant. 3. Describe and identity costs for the personnel, equipment, technology, construction, design and other items required or needed under this grant (refer to Attachment B). a. Personnel b. Equipment/Technology c. Design/Engineering d. Construction e. Other G.12.a Packet Pg. 350 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 4. Identify Grant Project Manager and other departments/staff who will be responsible for implementing the grant and providing project oversight. 5. List procedural requirements for grant such as public hearing, advisory board setup, Davis Bacon, environmental reviews, etc. and describe any potentially costly monitoring or compliance issues. 6. Identify required reports (quarterly, semi-annual, annual) to be completed after grant award and what department/staff would be assigned reporting requirements. 7. Describe the cost/benefit aspects of the grant. 8. Complete Attachment B – Grant Cost/Benefit Worksheet G.12.a Packet Pg. 351 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) EXHIBIT B GRANT COST/BENEFIT WORKSHEET Expenditure Category Grant Budget Grant Budget by Fiscal Year Percent of Grant Local Match Budget Local Match by Fiscal Year Percent of Local Match Revenue Source Local Match (Description & Account Code) Total Cost (Grant plus Local Match) Total Cost by Fiscal Year Personnel/Title FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Equipment/Technology FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Design/Engineering FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Construction FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Other FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Subtotal Grand Total FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY Total G.12.a Packet Pg. 352 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.05 Subject: Donations Effective Date: 5/13/14 Page 1 of 4 PURPOSE: To establish policy and procedures for the solicitation and/or acceptance of donations made to or for the City. A uniform set of procedures shall be followed in the acceptance of all donations. Proper approval shall be obtained prior to acceptance. All cash and capital goods donated to the City shall be accounted for in accordance with the procedures set forth within this policy. DEFINITIONS: Donor: An individual, organization or business entity that is offering a monetary contribution, personal property or real property to the City as a gift. Gifts: For purposes of this policy, the terms gift and donation shall be synonymous. Gifts may be a monetary contribution or a personal and real property item which the City has accepted, and for which the donor has not received anything of value in return from the City other than a tax benefit. Included within the scope of this policy are donations whereby a private business sponsors or co-sponsors an event on behalf of or in partnership with the City. POLICY: I. Legal Basis A. (Ref. Government Code, Section 37354, Gifts and Bequests.) The City Council, or its designated representative, may accept or reject any gift made to or by the City for any public purpose. The City may utilize the gift as prescribed by the donor or, providing use of the gift or the income from it is not restricted, the gift may be used for any purpose that furthers City goals and objectives as stated at the time of acceptance. B. (Ref. California Code of Regulations, Section 18944.2) A gift will be deemed a gift to a public agency, and not a gift to a public official, if all of the following requirements are met: (a) the agency receives and controls the payment; (b) the payment is used for official agency business; (c) the agency determines the specific official or officials who shall use the payment; and (d) the agency memorializes the payment in a written public record and the filing is done within 30 days of receipt of the payment by the agency. II. Donations to the City A. Responsibility: Donations with an estimated value of $5,000 or less may be authorized by the City Manager. Donations with an estimated value exceeding $5,000 must be approved by City Council. The Finance Director shall be responsible for managing all donations of cash and for the accounting and inventory of all donated items. G.12.a Packet Pg. 353 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.05 Subject: Donations Effective Date: 5/13/14 Page 2 of 4 B. Solicitation of Gifts: The City Manager may authorize City staff to approach companies or organizations to request donation of goods, services, or funds to facilitate the achievement of identified City goals. Such solicitation shall be made only with the approval of the City Manager. C. Unsolicited Gifts: Unsolicited donations shall be accepted only if they have a valid use to the City. 1. Donors who wish to make a gift to the City shall be referred to the appropriate department head. Those gifts not specific to a given department shall be referred to the Finance Director. 2. In the event that the offered item does not have any practical use for the department to which it has been presented, the donor shall be referred to the Finance Director. If the gift may be of potential value, notice will be circulated to each Department Head to determine if it can be utilized elsewhere. The Donor will be notified within two weeks whether the City will accept the offered gift. If the item clearly has no use to the City or would be more effectively used elsewhere, the donor will be informed immediately and referred to an appropriate agency by the Finance Director. 4. Proof of Ownership: If there is a material question as to the legal ownership of the offered item, proof of ownership shall be requested. Such proof of ownership may include but not be limited to copy of title certificate, receipt for purchase, or signed affidavit verifying ownership. 5. Donors shall be encouraged to place minimal restrictions on the use of a donated item, allowing the City as much flexibility as possible in determining its use and liquidation. D. Conditions for accepting/rejecting donations: Staff shall work with the donor to assure that restrictions are reasonable and do not leave the donor with unrealistic expectations regarding use or life of the donation (e.g., if a tree is donated it could die or be moved). The following are criteria which may be applied in determining if a donation is appropriate for acceptance: 1. Would use of the item be consistent with existing City policy? 2. Would the maintenance or operating costs associated with the gift be excessive? 3. Do proposed or imposed conditions or restrictions upon use of the item make it impractical to accept? 4. Do proposed or imposed conditions or restrictions on disposition of the item make it impractical to accept? G.12.a Packet Pg. 354 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.05 Subject: Donations Effective Date: 5/13/14 Page 3 of 4 5. Is required accounting of acceptance or use of the item excessively burdensome? 6. Would the item require extensive repair or maintenance, and if so, are City means readily available to do so? 7. Does use of the item require the purchase of additional material or equipment to serve the purpose of the gift? 8. Would acceptance of the item present a conflict of interest for the City or any of its employees? Regardless of the value of the donation, if the donor is a contractor, potential contractor or there is reason to believe there may be a conflict of interest, then the offer shall be referred to the City Manager who will determine if the gift will be accepted, rejected or submitted to the City Council for approval. III. Procedures A. Non-monetary gifts valued at $5,000 or less: Any single donation whose total value, as determined by the donor, is $5,000 or less. 1. A Donation Receipt Form (Exhibit A) will be completed when donations are received, with the form completed by City staff. 2. The City will not place any value on the gift for the donor. The donor shall provide proof of current market value. If real property is donated, a current appraisal report will be required. 3. The City Manager will promptly acknowledge each gift by letter, thanking the donor for the gift. 4. The Finance Director shall be notified of the acceptance of any capital asset. Finance shall make the necessary entries on the respective accounts and property records to ensure that the property is recorded to the account of the proper City program. This reporting must take place no later than 30 days after the receipt of the donated item. B. Non-monetary gifts valued at more than $5,000: 1. Any gift valued at more than $5,000, as determined by the donor, cannot be accepted without City Council approval. Subsequent to Council's acceptance, procedures for acceptance of gifts in excess of $5,000 shall be the same as those in Section A above. C. Cash Gifts: 1. Depositing Cash Gifts: All cash gifts shall be deposited immediately with the Finance Department in accordance with the City's Cash Handling & Control Policy (Fiscal Policy No. 1.01) and shall be accompanied by a G.12.a Packet Pg. 355 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.05 Subject: Donations Effective Date: 5/13/14 Page 4 of 4 copy of the Donation Receipt. Cash donations shall be deposited in the appropriate restricted or unrestricted revenue account within the appropriate fund. 2. Restricted Cash Donations: a. Donation Receipt: Restricted cash donations must be supported in Finance Department files by the Donation Receipt signed by the donor, which identifies the name of the donor, the amount and date of the donation, and the nature of the restriction. b. Deposit of Restricted Cash Donations: Donations shall be deposited in a revenue account, which will be managed by the Finance Director. This fund shall be utilized by all depositing departments. Upon receipt of donated cash, the department shall submit a copy of the donation receipt form to the Finance Director at which time an account number will be assigned to the donation. c. Council Authorization: A request for authorization must be sent to the City Council via a staff report and approved by the City Council before a restricted cash donation is spent for its intended use. The staff report must state the name of the donor, the amount of the donation, the date the donation was received and the nature of the restriction. d. Procedures for Expending Donated Cash: The donation may be liquidated by the expending department when an approved purchase is made. Any over-expenditures will be charged to the department's operating budget. Funds shall remain in this account until they are entirely expended in accordance with the terms of the gift. If the funds are not expended as intended, they must be returned to the donor, or the donor must provide written authorization to expend the gift differently than the original purpose. d. Monitoring of Cash Donations: The City Council will receive periodic reports, not less than annually, from the Finance Director accounting for receipts and expenditures of donated funds. 3. Unrestricted Cash Donations: Unrestricted cash donations shall be deposited in an unrestricted revenue account in the General Fund. D. Reporting of Donations: Within 30 days of the end of each quarter, the Finance Director shall submit a report to City Council that summarizes all donations received by each department during the prior fiscal year, with an estimate of the monetary value of the donations. G.12.a Packet Pg. 356 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) EXHIBIT A DONATION RECEIPT FORM Date Donor Telephone ( ) Address City State Zip DONATION DESCRIPTION: CASH CHECK COMMODITY (amount) (amount) Description (be specific) _____UNRESTRICTED _____RESTRICTED (identify restrictions) Total estimated value (estimated by Donor) Received by: Date: Signature of City Employee/Department Donor: Date: Signature -------------------------------------------------------------------------------------------------------------------------------------------- The donation was classified and handled in the following manner: Item was issued a City I.D. number and is located at Item has short life span. Not classed as a fixed asset. Unrestricted cash or check deposited in General Fund, account number Restricted cash or check placed in General Fund, account number ______________________ for use in _____ Other (explain) Finance Director Date City Manager Date G.12.a Packet Pg. 357 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 1 of 4 I. PURPOSE AND SCOPE To define the policy for establishing and maintaining cash reserves needed for prudent financial management of the City. II. POLICY A. Introduction The City will maintain cash balances to preserve the City’s credit worthiness and to adequately provide for: 1. Economic uncertainties, local disasters or catastrophic events, and other financial hardships or downturns in the local or national economy. 2. Contingencies for unforeseen operating needs. 3. Future debt service requirements. 4. Fixed asset replacements. 5. Cash flow requirements. 6. Legal requirements. B. Budgetary Reserves 1. A contingency account will be budgeted each fiscal year in the Non- Departmental cost center to provide for unanticipated expenditures of a nonrecurring nature. Authorization to expend funds from this account will require approval of the City Manager. 2. A General Fund Contingency Reserve account will be established and maintained at the level recommended by the Government Finance Officers Association of the United States & Canada (GFOA), which is a minimum of two months of regular General Fund operating revenues or expenditures (whichever is considered most predictable), to serve as a buffer against unexpected local disasters or catastrophic events, and other financial hardships or downturns in the local or national economy. The City will use General Fund operating revenues as the basis for establishing the two- month reserve target. C. Fund Balance Reserves The City shall report fund balances in accordance with the Governmental Accounting Standards Board (GASB) Statement 54, which requires fund balance to be classified in one of five categories as follows: G.12.a Packet Pg. 358 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 2 of 4 • Non-spendable 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, for example). • 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. • Committed fund balance includes amounts that can be used only for the specific purposes determined by a formal action of the City Council, the government's highest level of decision-making authority. These funds include: ▪ Fixed Asset Fund - funds may only be used for equipment replacement of for the purchase of new equipment; ▪ Community Benefits Fund - funds may only be used for City Council approved grants to benefit the community; ▪ Public Safety Services Fund - funds may only be used for additional public safety services as determined by the City Manager and approved by City Council. Commitments may be changed or lifted only by City Council, the government taking the same formal action that imposed the constraint originally. • Assigned fund balance comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. 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, at a minimum, intended to be used for the purpose of that fund. • 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. G.12.a Packet Pg. 359 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 3 of 4 General Fund Contingency The City shall maintain a committed General Fund contingency reserve equal to two months of operating revenues. If the reserve level falls below the minimum level, the City will seek to replenish fund balance within a reasonable timeframe. The reserves will be used to provide for temporary financing of unanticipated extraordinary needs of an emergency nature, such as economic uncertainties or a local disaster. Intended to act as a short-term solution to fiscal needs, the contingency reserve will be drawn down as the funding source of last resort. Authorization and Action to Commit Fund Balance The City Council, as the government's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the amount can be determined subsequently. Authorization and Action to Assign Fund Balance The City Council may assign fund balance to a specific purpose in relation to this fund balance policy. By resolution, the Council has also authorized the City Manager and/or Finance Director to assign fund balance. Assignments by the City Manager or Finance Director do not require formal action by the City Council; however, each assignment must be approved by either of the authorized officials before the item can be presented in the financial statements. D. Use of and Replenishment of General Fund Contingency Reserve 1. The General Fund Contingency Reserve is intended to act as a buffer to protect service levels during difficult economic times or as a result of catastrophic events that require significant unanticipated expenditures. 2. During such times, or as a result of such events, the General Fund Contingency Reserve may decline below the target level (two months of operating revenues) with City Council authorization. Once the difficult fiscal times pass, the General Fund Contingency Reserve will be replenished to its target level as soon as funding permits, as determined by the City Council through the annual budget process. G.12.a Packet Pg. 360 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.06 Subject: Reserves Revision Date: 9/27/16 Page 4 of 4 3. Appropriate sources for replenishment of the General Fund Contingency Reserve include one-time revenues and other sources not necessary to support ongoing services. E. Policy Versus Appropriation of Reserves This policy establishes target reserve levels for the prudent financial management of the City. However, specific appropriation of funds into the various reserve accounts will be subject to the annual budget adoption process or other City Council budgetary action. G.12.a Packet Pg. 361 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.07 Subject: Unclaimed Money Approval Date: 1/14/14 10/11/2022 Page 1 of 3 I. PURPOSE AND SCOPE To establish a policy and related procedures for escheatment and accounting of unclaimed money in accordance with California Government Code Sections 50050 through 50056. II. DEFINITIONS A. Escheatment - The reversion of property to a government entity in the absence of legal claimants or heirs. B. Unclaimed Money - Money which is not the property of the City but that remains in the City’s treasury, including funds related to uncashed checks. III. POLICY A. Unclaimed Money that remains unclaimed for at least three (3) years will become the property of the City if after proper notification the money remains unclaimed. Unclaimed Money becoming the property of the City, which is in a special fund, will be transferred to the City’s General Fund, unless otherwise restricted. B. Unclaimed Money items less than fifteen dollars ($15), or any amount if the owner is unknown, which remain unclaimed for one (1) year will become the property of the City without notification and will be transferred to the City’s General Fund, unless otherwise restricted. C. All escheated money originating from the Successor Agency to the Community Redevelopment Agency of the City of Grand Terrace (Agency) will revert to the appropriate fund. IV. AUTHORITY This policy is established in California Government Code Sections 50050 through 50056. V. PROCEDURES A. Individual checks/deposits equal to or greater than fifteen dollars ($15): 1. On July 1st, the Finance Department will compile a list of outstanding checks and/or deposits which are equal to or greater than fifteen dollars ($15) and at least three years old; such checks will be deemed stale dated. The Finance Department will proceed as follows: a. A stop payment shall be placed with the bank on all stale-dated checks. b. Accounts Payable will void stale-dated checks. c. Accounting will post a Journal Entry to record the stale-dated check liability. G.12.a Packet Pg. 362 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.07 Subject: Unclaimed Money Approval Date: 1/14/14 10/11/2022 Page 2 of 3 2. The Finance Department will then publish a notice (Exhibit A) identifying all such money in a local newspaper of general circulation once a week for two successive weeks. The notice shall state the payee name, fund in which it is held, the amount of money, and that the money will become City property forty-five (45) days after the first publication of the notice. Proof of publication will be retained in the Finance Department. B. Claims filed by Party of Interest: 1. Upon or prior to publication and before the date the Unclaimed Money becomes City property, a party of interest may submit an Unclaimed Money Claim Form (Exhibit B) with the Finance Department to collect money. The Finance Department will require proof of identification from the claimant. Once a decision is rendered by the Finance Department, notification will be made to the claimant by letter. 2. Upon acceptance, the Finance Department will proceed as follows: a. Accounts Payable will reissue check to the owner, their heir, beneficiary, or duly appointed representative, following accounts payable policies and procedures: b. The Finance Department will remove the check from the list of Unclaimed Money to be escheated. 3. If denied, the claimant may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within San Bernardino County, and must serve a copy of the complaint and the summons issues thereon upon the Finance Department. The copy of the complaint and summons shall be served within 30 days of receiving notice that the claim was denied. The Finance Department shall withhold the release of the portion of Unclaimed Money for which a court action has been filed until a decision is rendered by the court. 4. If the court renders a decision in favor of the claimant, the Finance Department will follow the acceptance procedures identified in this policy to issue the check. 5. If the court renders a decision in favor of the City, the Finance Department will proceed as follows: a. Accounting will reverse the Unclaimed Money liability and record the revenue. b. Accounting will record the transfer of escheated special fund cash to the General Fund, unless otherwise restricted. G.12.a Packet Pg. 363 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) City of Grand Terrace Fiscal Policy Policy No. 3.07 Subject: Unclaimed Money Approval Date: 1/14/14 10/11/2022 Page 3 of 3 c. Any escheated money related to Agency/Trust funds will revert to the appropriate originating fund and not the General Fund. i. Property Escheats to City: 1. On the forty-fifth day after the first publication of the notice, those checks and/or deposits on which no claims were filed escheat to the City. The Finance Department will follow procedures identified in the preceding section. 2. On July 1st, the Finance Department will compile a list of outstanding checks and/or deposits which are less than fifteen dollars ($15), or any amount if the owner is unknown, and have remained unclaimed in the City treasury for a period of one (1) year; such checks will be deemed stale dated. Money identified on the list will escheat to the City and will be transferred to the General Fund, unless otherwise restricted. The Finance Department will proceed as follows: a. A stop payment shall be placed with the bank on all stale-dated checks. b. Accounts Payable will void stale-dated checks. c. Accounting will reclassify the voided check as a credit to Revenue. d. Accounting will record the transfer of escheated special fund cash to the General Fund. e. Any escheated money related Agency/Trust funds will revert to the appropriate originating fund and not the General Fund. G.12.a Packet Pg. 364 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) EXHIBIT A CITY OF GRAND TERRACE UNCLAIMED MONEY SAMPLE PUBLIC NOTICE NOTICE IS HEREBY GIVEN pursuant to Government Code Sections 50050 through 50056 that the following money, which is not the property of the City of Grand Terrace, has remained in the City treasury for more than three (3) years and will become City property if not claimed by August 14, 20XX. The owner/depositor, their heir, beneficiary or duly appointed representative may file a claim requesting release of money with the City of Grand Terrace’s Finance Department, which must include the claimant’s name, address, telephone number, Employer Identification Number or Social Security Number, amount of claim, and the grounds on which the claim is founded before August 14, 20XX. If the claim is denied by the City, the claimant may file a verified complaint seeking to recover all, or a designated part, of the money in a court of competent jurisdiction within San Bernardino County, and must serve a copy of the complaint and the summons issues thereon upon the Finance Department within thirty (30) days of receiving notice that the claim was denied. The Unclaimed Money - Claim Form is available at the City of Grand Terrace, Finance Department, 22795 Barton Road, Grand Terrace, CA. FUND PAYEE NAME AMOUNT G.12.a Packet Pg. 365 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) EXHIBIT B CITY OF GRAND TERRACE UNCLAIMED MONEY CLAIM FORM Claimant’s Name Taxpayer Identification No. or Social Security No. Address City/State/Zip Code ( ) Telephone Number Pursuant to California Government Code Section 50052, I am filing a claim for previously unclaimed money in the amount of $ , which was published in the on / / (MM/DD/YY). The grounds on which I am filing this claim are: Please attach copies of all support documentation to this claim. Do not attach originals, as the City will retain all documents. I hereby certify under penalty and perjury that the information contained and attached to this claim is true and correct and is being submitted to the City of Grand Terrace to substantiate my claim to money held by the City. I further certify that I have the authority and right to claim and receive payment of money and hereby release the City of Grand Terrace, its directors, employees, representatives, attorneys and agents from all liability and further obligation with respect to this claim. Printed Name of Claimant Signature of Claimant Date Mail Completed Forms to: City of Grand Terrace Finance Department 22795 Barton Road Grand Terrace, CA 92313 CITY USE ONLY Payee Name: Account Code: Check No. Check Date: Check Amount: $ Accepted: Denied: Finance Department Signature: Date: G.12.a Packet Pg. 366 At t a c h m e n t : F i s c a l P o l i c i e s - U p d a t e d 1 0 - 1 1 - 2 0 2 2 ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827785.2 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.24.070, 3.24.080, 3.24.090, AND 3.24.120 OF CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE THEREBY CHANGING THE THRESHOLDS FOR PURCHASING PROCEDURES, SALE OF SURPLUS SUPPLIES, MATERIALS AND EQUIPMENT, AND CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000; AND ADDING SECTION 3.24.190 TO CHAPTER 3.24 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH ADDS REQUIREMENTS RELATING TO CONFLICTS OF INTEREST AND UNLAWFUL ACTIVITY WHEREAS, California, Government Code Section 54202 every local agency to adopt policies and procedures, including bidding regulations, governing purchases of supplies and equipment by the local agency; and WHEREAS, California Government Code Section 4526 provides that professional services may be awarded on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required; and WHEREAS, on August 22, 1985, the City Council of the City of Grand Terrace adopted Ordinance No. 93 adding Chapter 3.24 (Purchasing of Supplies and Equipment) to Title 3 of the Municipal Code; and WHEREAS, on November 13, 2012, the City Council of Grand Terrace repealed Ordinance No. 93 and Chapter 3.24 of the Municipal Code in their entirety and adopted a new Chapter 3.24 (Purchasing System) to Title 3 of the Municipal Code; and WHEREAS, the City Council of the City of Grand Terrace desires to amend regulations governing purchases in Grand Terrace Municipal Code (“GTMC”) Sections 3.24.070, 3.24.080, 3.24.090, and 3.24.120 in order to change the thresholds for purchasing procedures, sale of surplus supplies, materials and equipment, and the City Manager’s authorization limit to $25,000; and, further adding GTMC Section 3.24.190 relating to conflicts of interest and unlawful activity with respect to City purchases. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. RECITALS. The Recitals set forth above are incorporated herein by this reference. SECTION 2. PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT, OR NON-PROFESSIONAL SERVICES UNDER $25,000. Section 3.24.070 of Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code is hereby retitled and amended in its entirety as follows: G.12.b Packet Pg. 367 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 [ R e v i s i o n 2 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827785.2 “3.24.070 – Purchases Twenty-five Thousand Dollars or less. Purchase of supplies, materials, equipment or services with an estimated value of $25,000 or less may be made and approved by the City Manager in the open market, pursuant to the procedure prescribed in this Section; provided, however, all quotation may be dispensed with in an emergency, or where said goods and/or services can be obtained from only one source. A using department is responsible for insuring there is a sufficient appropriation in the budgetary account against which said purchase is to be charged. A. Using department shall follow the following procedure when making an open market purchase: 1. Purchases that are $25,000 or less shall, whenever possible, be based on at least three (3) informal quotations and shall be awarded to the vendor submitting the lowest responsible quotation. 2. Solicit quotations from prospective vendors by written request, electronic mail or by telephone. 3. Written quotations shall be submitted to the using department, which shall keep a record of all open-market orders and quotes for a period of one year after the submission of quotes or the placing of orders. 4. Where written contracts are entered into for purchases made under this Section, the department head is authorized to execute such contracts on behalf of the City. Such purchases shall be made only by purchase order. A copy of the executed contract shall be maintained on file in the offices of the requesting department. 5. Using departments shall submit standard purchase order requisition forms to the Purchasing Officer when requesting goods and services pursuant to this Section. B. Notwithstanding subsection "A" above, purchases of supplies, materials, equipment or services not exceeding an estimated value of $2,500 may be made over the counter by a department head without requirement for quotations or comparative pricing. Furthermore, such goods and services may be obtained without a purchase order.” SECTION 3. PURCHASES OF SUPPLIES, MATERIALS, EQUIPMENT, OR NON-PROFESSIONAL SERVICES OVER $25,000. Section 3.24.080 of Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code is hereby retitled and amended in its entirety as follows: G.12.b Packet Pg. 368 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 [ R e v i s i o n 2 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827785.2 “3.24.080 - Formal Contract Procedure, Purchases Greater Than Twenty-five Thousand Dollars. “Except as otherwise provided herein, purchases of supplies, materials, equipment or services with a value greater than $25,000 shall be awarded to the lowest responsible bidder, pursuant to the procedure prescribed in this section. Written contracts may be required when in the judgement of the City Manager the public interest is served thereby. A. Notice inviting bids shall include a general description of the articles to be purchased and shall state where bid documents and specifications may be obtained and the time and place for opening bids. 1. Notice Inviting Bids. Notice inviting bids shall be published by the City Clerk at least ten days before the date of opening of the bids. Notice shall be published at least once in a newspaper of general circulation, printed and published in the City. 2. Bidders' List. The City shall also solicit sealed bids from responsible prospective suppliers whose names are on the bidders' list. B. Bidders' Security. When deemed necessary by the purchasing agent, bidders' security shall be required. Bidders shall be entitled to return of bid security upon execution of the contract or upon the readvertisement for bids; provided that a successful bidder shall forfeit his bid security upon refusal or failure to execute the contract within ten days after the notice of award of contract has been mailed, unless the City is responsible for the delay. The City Council may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsible bidder. If the City Council awards the contract to the next lowest bidder, the bidder first awarded the contract shall forfeit only the portion of his security, which is equal to the difference between his bid and the bid of the next lowest responsible bidder. If the next lowest bidder is awarded the contract and he fails or refuses to execute the contract, he shall forfeit his entire bid security. C. Bid Opening Procedure. Sealed bids shall be submitted to the City Clerk, and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be open for public inspection during regular business hours for a period of not less than 30 calendar days after the bid opening. D. Rejection of Bids. At its discretion, the City Council may reject any and all bids presented, and re-advertise for bids. E. Award of Contracts. Contracts shall be awarded by the City G.12.b Packet Pg. 369 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 [ R e v i s i o n 2 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827785.2 Council to the lowest responsible bidder except as otherwise provided herein. A master copy of the contract is to be on file in the City Clerk's Department upon execution of the contract. F. Award of Contracts by City Manager. The City Manager is authorized to award contracts to the lowest responsible bidder when the City Council has budgeted funds for the item(s) and the amount of the award is not more than the budgeted amount. All contracts awarded pursuant to this Section shall require issuance of a purchase order. G. Tie Bids. If two or more bids received are for the same total amount or unit price, quality, service and delivery being equal, and if the public interest will not permit the delay of re-advertising for bids, the City Council may accept the one it chooses, or accept the lowest bona fide offer by negotiation with the tie bidders at the time of the bid opening. H. Performance Bonds. The City shall have authority to require a performance bond before entering a contract, in such amount as it shall be found reasonably necessary to protect the best interests of the City. If the City requires a performance bond, the form and amount of the bond shall be described in the notice inviting bids. I. Single Source Purchases. Single source purchase of goods or services that can be obtained from only one source may be made by a City department or the Purchasing Officer without advertising and after approval by the City Council. J. Waiver of Formal Bidding Requirement. The City Council may authorize purchase of supplies, materials, equipment or services of a value greater than $25,000.00 without complying with the above procedures when in the opinion of the Council, compliance with the procedure is not in the best interest of the City.” SECTION 4. PROFESSIONAL SERVICES. Section 3.24.090 of Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code is hereby amended in its entirety as follows: “3.24.090 - Professional and contractual services. Contracts for services of specially trained and professional persons or businesses shall be exempt from bidding. If possible, quotes from three qualified vendors shall be obtained prior to the award of a contract and the award of contract may be based on the basis of demonstrated competence and on the professional qualifications necessary for the satisfactory performance of the services required. If the contract is equal to or below $25,000.00, the contract shall require the approval of, and be executed by, the City Manager. All contracts exceeding $25,000.00 must be approved by the City Council.” G.12.b Packet Pg. 370 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 [ R e v i s i o n 2 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827785.2 SECTION 5. . SALE OF SURPLUS SUPPLIES, MATERIAL, OR EQUIPMENT. Section 3.24.120 of Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code is hereby amended in its entirety as follows: “3.24.120 - Surplus supplies, materials and equipment. All using departments shall submit to the Purchasing Officer, at such times and in such forms as he shall prescribe, reports showing all supplies, materials and equipment which are no longer used or which have become obsolete or worn out. The using department, with the concurrence of the Purchasing Officer, shall have authority to sell all supplies, materials and equipment which cannot be used by any department, or which have become unsuitable for City use, or to exchange the same for or trade the same in on new supplies and equipment. The Purchasing Officer shall also have the authority to make transfers between departments of any usable surplus supplies, materials or equipment. The sale of supplies, materials or equipment when the total estimated value exceeds $25,000.00 requires approval by the City Council. Surplus supplies, materials or equipment which cannot be sold may be donated to a local not-for-profit organization with approval of the City Manager.” SECTION 6. CONFLICT OF INTEREST. Section 3.24.190 is hereby added to Chapter 3.24 of Title 3 of the Grand Terrace Municipal Code as follows: “3.24.190 – Conflict of Interest and Unlawful Activity. Any evaluation or selection practice that would result in unlawful activity including, but not limited to, kickbacks or unlawful consideration is expressly prohibited. Any award of a contract where an employee, officer or agent has used his or her position with the City to influence a governmental decision in which he or she knows or has reason to know that he or she has a financial interest in any person or entity who seeks such a contract or in the outcome of the selection process in any way, is expressly prohibited.” SECTION 7. 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 8. EFFECTIVE DATE. This ordinance shall be effective on the thirtieth (30th) day after the day of its adoption. SECTION 9. CERTIFICATION. The City Clerk shall certify to the adoption of this G.12.b Packet Pg. 371 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 [ R e v i s i o n 2 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827785.2 Ordinance and cause the same to be published as 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 G.12.b Packet Pg. 372 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 4 [ R e v i s i o n 2 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827786.1 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, AMENDING SECTIONS 3.26.030(A) AND 3.26.050(E) OF CHAPTER 3.26 OF TITLE 3 OF THE GRAND TERRACE MUNICIPAL CODE, WHICH INCREASES THE CITY MANAGER’S AUTHORIZATION LIMIT TO $25,000 FOR CONTRACTS FOR PUBLIC PROJECTS AND MAINTENANCE, AS DEFINED THEREIN WHEREAS, Public Contract Code Section 20100 et seq. establishes contracting, bidding, and other procedures for public projects; and WHEREAS, the Uniform Public Construction Cost Accounting Act (codified at Public Contract Code Section 22000 et seq.) provides for an alternative procedure for the City to contracting, bidding and other procedures for public projects ("Act"), provided that the City adopt this informal bidding ordinance and a resolution electing to be subject to the public construction cost accounting procedures of the Act; and WHEREAS, the City Council has adopted Resolution No. 2020-39 electing to be subject to the public construction cost accounting procedures of the Act; and WHEREAS, the City Council adopted informal bidding requirements for public projects pursuant to the Act; and WHEREAS, the City Council adopted bidding requirements for maintenance work; and WHEREAS, the City Council now desires to amend Sections 3.26.030(A) and 3.26.050(E) of Chapter 3.26 of Title 3 of the Grand Terrace Municipal Code in order to increase the City Manager’s authorization limit to $25,000 for contracts for public projects and maintenance, as defined therein. NOW THEREFORE, THE CITY COUNCIL OF THE CITY GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. AMENDMENT TO SECTION 3.26.030(A). Section 3.26.030(A) of Chapter 3.26 of Title 3 of the Grand Terrace Municipal Code is hereby amended as follows: “3.26.030 – Bid Procedures for defined public projects. A. Authority to Award. 1. The City Manager may award contracts for public projects or maintenance work of $25,000 or less pursuant to the requirements of this Chapter. G.12.c Packet Pg. 373 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 6 [ R e v i s i o n 1 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827786.1 2. Contract for public projects or maintenance work over $25,000 shall be awarded by the City Council pursuant to the requirements of this Chapter. SECTION 2. AMENDMENT TO SECTION 3.26.050(E). Section 3.26.050(E) of Chapter 3.26 of Title 3 of the Grand Terrace Municipal Code is hereby amended as follows: “E. Authority to Award Contract. The City Manager is authorized to award a contract for public project or maintenance work pursuant to the process set forth in this Section if the lowest bid received is $25,000 or less. Contracts valued at more than $25,000 shall require City Council approval.” 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 cause the same to be published as 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: G.12.c Packet Pg. 374 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 6 [ R e v i s i o n 1 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) 01247.0007/827786.1 ____________________________ Adrian R. Guerra City Attorney G.12.c Packet Pg. 375 At t a c h m e n t : O r d i n a n c e a m e n d i n g C h a p t e r 3 . 2 6 [ R e v i s i o n 1 ] ( A p p r o v a l o f R e v i s i o n s t o t h e C i t y ' s F i s c a l P o l i c i e s ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES OCTOBER 11, 2022 Council Chamber Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace ATTACHMENTS TO October 11, 2022 City Council Minutes PowerPoint Presentations REPORT ON THE PROCEEDS OF THE SALE OF CHILD CARE FACILITY OCTOBER 11, 2022 Background July 1, 2012, the City’s Child Care Program was moved from the General Fund to its own Special Revenue Fund The Child Care Services Fund was to be self- supporting including covering their portion of UAL This resulted in a negative fund balance and borrowing from the City’s cash pool to cover the cost of the UAL Background July 1, 2017 Lease with FSA to run the Child Care Services, with option to purchase property Property became available for sale June 30, 2018 FSA informed the City they would no longer be able to continue the service July 10, 2018 –Council authorized The sale of the property $615,550 of proceeds of the sale to be committed to clear the Child Care Fund’s negative balance September 11, 2018 Property sold for $910,000 and the City received net proceeds of $850,000 after $60,000 commissions Child Care Fund Date Description Amount As of June 30, 2017 Negative Fund Balance ($307,970) FY2017-18 Child Care Fund’s portion UAL ($145,728) FY2017-18 Other Expenditures/Revenues ($8,187) As of June 30, 2018 Negative Fund Balance ($461,885) Child Care Fund Date Description Amount As of June 30, 2018 Negative Fund Balance ($461,885) FY2018-19 Sales Proceeds $850,000 FY2018-19 Child Care Fund’s portion UAL ($145,700) FY2018-19 Other Revenues/Expenditures $705 As of June 30, 2019 Fund Balance $243,120 Child Care Fund Date Description Amount As of June 30, 2019 Fund Balance $243,120 FY2019-20 Investment Earnings $1,300 Sub-Total Child Care Fund -Cash Balance $244,420 FY2019-20 Child Care Fund’s portion UAL ($150,179) FY2019-20 Transfer to General Fund for future UAL ($94,241) As of June 30, 2020 Fund Balance $0 Questions