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05/23/2023CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● MAY 23, 2023 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: 821 5515 1661 Password: 603830 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) 954-5207 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) 954-5207, 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) 954-5207 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 [28 CFR 34.102.104 ADA Title II]. Agenda Grand Terrace City Council May 23, 2023 City of Grand Terrace Page 2 CALL TO ORDER Convene City Council Invocation Pledge of Allegiance AB 2449 Disclosures Remote participation by a member of the legislative body for just cause or emergency circumstances. Roll Call Attendee Name Present Absent Late Arrived Mayor Bill Hussey    Mayor Pro Tem Doug Wilson    Council Member Sylvia Rodriguez-Robles    Council Member Jeff Allen    Council Member Kenneth J. Henderson    A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA B. SPECIAL PRESENTATIONS Certificate of Recognition – The Salvation Army Grand Terrace Community Advocacy Project C. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Special Meeting Workshop – 05/09/2023 DEPARTMENT: CITY CLERK Agenda Grand Terrace City Council May 23, 2023 City of Grand Terrace Page 3 3. Approval of Minutes – Regular Meeting – 05/09/2023 DEPARTMENT: CITY CLERK 4. Approval of Annual Appropriations Limit for Fiscal Year 2023-24, Including Adoption of the Price Factor and Population Change Factor for the Appropriations Limit Calculation RECOMMENDATION: (1) Approve the selection of the Change in Per Capita Personal Income of 4.44% as the Price Factor for the Fiscal Year 2023-24 Appropriations Limit Calculation; and (2) Approve the selection of the Change in the County of San Bernardino Population of 0.12% as the Population Change Factor for the Fiscal Year 2023-2024 Appropriations Limit Calculation; and (3) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2023-24, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION DEPARTMENT: FINANCE 5. Approval of an Agreement with San Bernardino County for the Allocation of Opioid Settlement Funds RECOMMENDATION: Approve Allocation Agreement with the County of San Bernardino, Allocating the City’s Portion of the Opioid Settlement Funds to the County DEPARTMENT: CITY MANAGER 6. Authorize Purchase Order for Replacement Street Signs RECOMMENDATION: 1. Authorize the expenditure of $11,038.13 from ARPA Fund (Fund 94) for the purchase of replacement of City street signs 2. Authorize the City Manager to execute a purchase order, and all necessary future purchase orders up to the remaining $93,253 as approved at the Regular Meeting of the City Council on April 26, 2022, to procure City street signs DEPARTMENT: PUBLIC WORKS 7. Approve an Amended and Restated Agreement No. 2 with Lynn Merrill and Associates RECOMMENDATION: 1. Approve an Amended and Restated Agreement No. 2 with Lynn Merrill and Associates, Inc. to extend the Contract End Date from June 1, 2023, to June 30, 2024, at no additional cost 2. Authorize the City Manager to execute the Amended and Restated Agreement subject to City Attorney approval as to form DEPARTMENT: PUBLIC WORKS Agenda Grand Terrace City Council May 23, 2023 City of Grand Terrace Page 4 8. An Agreement Between the City of Grand Terrace and Michael Baker International - Housing Element Consultant Services to Complete the 2021-2029 HCD Response to Comments and Obtain an Adopted Housing Element RECOMMENDATION: 1. Approve a Professional Services Agreement Between the City of Grand Terrace and Michael Baker International for Housing Element Consultant Services for the 2021- 2029 Housing Element Response to HCD Comments and Housing Element Adoption in the amount of $40,250.00 with a 10% contingency of $4,025.00; 2. Authorize the City Manager to Execute the Agreement subject to the City Attorney's approval as to form; and 3. Authorize the appropriation of the following funding sources: Local Early Action Planning (LEAP) Grant of $20,000.00 and General Fund of $20,250.00. DEPARTMENT: PLANNING & DEVELOPMENT SERVICES D. PUBLIC COMMENT This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. E. PUBLIC HEARINGS - NONE F. UNFINISHED BUSINESS 9. Adoption of the FY2023-24 Proposed Budget RECOMMENDATION: 1. Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2023-2024. DEPARTMENT: FINANCE Agenda Grand Terrace City Council May 23, 2023 City of Grand Terrace Page 5 G. NEW BUSINESS 10. Approve the Re-Location of the Trash Enclosure at Veterans Freedom Park and Approve an Agreement with Martin Lucio for the Demolition and Construction of a New Trash Enclosure and Authorize the City Manager to Execute the Agreement Subject to City Attorney Approval as to Form. RECOMMENDATION: 1. Approve the Re-Location of the Trash Enclosure at Veterans Freedom Park 2. Approve an Agreement with Martin Lucio (CSLB# 1031403) for the Construction of a New Trash Enclosure at Veterans Freedom Park in the amount of $33,000 with a 10% Contingency ($3,300). 3. Authorize the City Manager to execute the Agreement subject to City Attorney approval as to form. DEPARTMENT: PLANNING & DEVELOPMENT SERVICES H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL Pursuant to City Council policy set forth in the 2030 Vision and 2014 ‐2020 Strategic Plan, if a City Council Member is interested in a task or project that will require more than one hour of staff time to complete, the item will be agendized to ask the City Council if time should be spent on preparing a report on the proposed item. In accordance with this policy, this is the opportunity for City Council Members to request that an item be placed on a future agenda and authorize staff to prepare an agenda report. To ensure compliance with the Brown Act, the request shall be submitted to the City Manager at least one week in advance of the meeting so that the topic can be included on the agenda under this section. In order for any listed item to be placed on a future agenda, the City Council must act by formal motion (i.e., requires a motion and a second) to direct the City Manager to place the item on a future agenda. Pursuant to the requirements of the Brown Act, no other items may be considered other than those listed below. 1. Good Landlord Rental Program Discussion Requested by: Council Member Jeff Allen 2. Retroactive Requirement to Secure all Trash Enclosures Throughout the City Requested by: Council Member Jeff Allen I. CITY COUNCIL COMMUNICATIONS Council Member Kenneth J. Henderson Council Member Jeff Allen Agenda Grand Terrace City Council May 23, 2023 City of Grand Terrace Page 6 Council Member Sylvia Robles Mayor Pro Tempore Doug Wilson Mayor Bill Hussey J. CITY MANAGER COMMUNICATIONS K. RECESS TO CLOSED SESSION CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant Exposure to Litigation Pursuant to Government Code Section 54956.9(b) Number of Cases: One (1) RECONVENE TO OPEN SESSION REPORT OUT OF CLOSED SESSION L. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, June 13, 2023, 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 ● MAY 9, 2023 Council Chambers Special Meeting Workshop 4:30 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Mayor Bill Hussey convened the Special Meeting Workshop of the City Council for Tuesday, May 9, 2023, at 4:30 p.m. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Mayor Hussey. Attendee Name Title Status Arrived Bill Hussey Mayor Present Doug Wilson Mayor Pro Tem Present Sylvia Rodriguez-Robles Council Member Absent Jeff Allen Council Member Present Kenneth J. Henderson Council Member Present Konrad Bolowich City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Christine Clayton Finance Director Present A. NEW BUSINESS 1. BUDGET WORKSHOP FY2023-2024 Christine Clayton, Finance Director gave the PowerPoint presentation for this item. Each department commented on its completed projects and upcoming priority projects for FY2023-2024. B. PUBLIC COMMENT None. 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 M a y 9 , 2 0 2 3 4 : 3 0 P M ( C o n s e n t C a l e n d a r ) Minutes Grand Terrace City Council May 9, 2023 City of Grand Terrace Page 2 ADJOURN Mayor Hussey adjourned the Special Meeting Workshop at 6:05 p.m. The Next Regular City Council Meeting will be held on Tuesday, May 9, 2023, at 6:00 p.m. _________________________________ Bill Hussey, Mayor _________________________________ Debra L. Thomas, City Clerk C.2 Packet Pg. 8 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 9 , 2 0 2 3 4 : 3 0 P M ( C o n s e n t C a l e n d a r ) CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● MAY 9, 2023 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center ● 22795 Barton Road City of Grand Terrace Page 1 CALL TO ORDER Mayor Bill Hussey convened the Regular Meeting of the City Council for Tuesday, May 9, 2023, at 6:12 p.m. Invocation The Invocation was led by Pastor Mark Matthews from Grand View Baptist Church. Pledge of Allegiance The Pledge of Allegiance was led by Mayor Hussey. AB 2449 Disclosures None. Attendee Name Title Status Arrived Bill Hussey Mayor Present Doug Wilson Mayor Pro Tem Present Sylvia Rodriguez-Robles Council Member Absent Jeff Allen Council Member Present Kenneth J. Henderson Council Member Present Konrad Bolowich City Manager Present Adrian Guerra City Attorney Present Debra Thomas City Clerk Present Christine Clayton Finance Director Present A. REORDERING OF, ADDITIONS TO, OR REMOVAL OF ITEMS FROM THE AGENDA None. B. SPECIAL PRESENTATIONS Claudia Cooley, Grand Terrace Chamber of Commerce President provided the City Council with information on the newly re-established organization and requested funding from the City. C.3 Packet Pg. 9 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 9 , 2 0 2 3 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 May 9, 2023 City of Grand Terrace Page 2 C. CONSENT CALENDAR RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Kenneth J. Henderson, Council Member AYES: Bill Hussey, Doug Wilson, Jeff Allen, Kenneth J. Henderson ABSENT: Sylvia Rodriguez-Robles 1. Waive Full Reading of Ordinances on Agenda 2. Approval of Minutes – Regular Meeting – 04/25/2023 APPROVE THE REGULAR MEETING MINUTES FOR APRIL 25, 2023 3. March 2, 2023 Planning Commission, March 9, 2023 Parks & Recreation Committee and March 6, 2023 and April 3, 2023 Historical & Cultural Activities Committee Meeting Minutes Update RECEIVE AND FILE. 4. Consideration of a General Plan Conformity Finding Regarding the Sale of Excess City Land Acquired from the San Bernardino County Transportation Agency ("SBCTA") (APNS 1167-231-10 and 1167-231-22) and Approval of an Agreement for Purchase & Sale of Real Estate and Joint Escrow Instructions, Relating to the Sale of Such Excess City Land Acquired from the SBCTA to Salam A. Yasin, Trustee of the Salam Yasin Living Trust Dated July 12, 2020 ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE MAKING A GENERAL PLAN CONFORMANCE FINDING RELATING TO THE SALE OF EXCESS CITY LAND (APNS 1167-231-10 AND 1167-231-22) RECENTLY ACQUIRED FROM THE SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY (“SBCTA”); APPROVAL OF THE AGREEMENT FOR PURCHASE & SALE OF REAL ESTATE AND JOINT ESCROW INSTRUCTIONS, RELATING TO THE SALE OF EXCESS CITY LAND RECENTLY ACQUIRED FROM SBCTA TO SALAM A. YASIN, TRUSTEE OF THE SALAM YASIN LIVING TRUST DATED JULY 12 2020, FOR $141,000, FINDING THIS IS NOT A PROJECT AND/OR IT IS EXEMPT FROM CEQA PURSUANT TO CEQA REGULATIONS 15060(C)(3), 15061(B)(3), 15378(B)(5); AND APPROVING SUCH AGREEMENT; AND AUTHORIZING THE MAYOR TO SIGN THEREOF SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM 5. Authorize Purchase Order to Motive Energy for Senior Bus Electric Charging Station 1. AUTHORIZE THE EXPENDITURE OF UP TO $52,000 FROM SENIOR BUS PROGRAM FUND (FUND 65) FOR THE PURCHASE OF AN ELECTRIC CHARGING STATION 2. AUTHORIZE CITY MANAGER TO EXECUTE A PURCHASE ORDER AND ALL NECESSARY SALES DOCUMENTATION TO PROCURE AN ELECTRIC C.3 Packet Pg. 10 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 9 , 2 0 2 3 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 May 9, 2023 City of Grand Terrace Page 3 CHARGING STATION AND INSTALLATION FOR THE SENIOR BUS PROGRAM NOT TO EXCEED THE GRANT AWARDED AMOUNT 6. Authorize Purchase Order for Richard Rollins and Veterans Park Playground Surface Replacement with Per Capital Grant and General Fund Monies 1. AUTHORIZE THE EXPENDITURE OF UP TO $44,194 FROM PARKS FUND (FUND 49) AND GENERAL FUND (FUND 10) FOR THE REPLACEMENT OF PLAYGROUND SURFACE AT VETERANS PARK 2. AUTHORIZE THE EXPENDITURE OF UP TO $152,266 FROM PARKS FUND (FUND 49) AND GENERAL FUND (FUND 10) FOR THE REPLACEMENT OF PLAYGROUND SURFACE AT RICHARD ROLLINS PARK 3. AUTHORIZE CITY MANAGER TO EXECUTE A PURCHASE ORDER AND ALL NECESSARY SALES DOCUMENTATION TO SECURE REPLACEMENT PLAYGROUND SURFACE AND INSTALLATION 7. Cooperative Agreement Between the City of Grand Terrace and City of Colton for the Asphalt Paving Project at Litton Avenue, Rosedale Avenue, and Palm Avenue. 1. APPROVE A COOPERATIVE AGREEMENT BETWEEN THE CITY OF GRAND TERRACE AND CITY OF COLTON FOR THE ASPHALT PAVING PROJECT AT LITTON AVENUE, ROSEDALE AVENUE, AND PALM AVENUE. 2. AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT. D. PUBLIC COMMENT Frank Audi, Grand Terrace commented on a code enforcement violation he received. Virginia Fernandez, Grand Terrace commented on multiple potholes in her neighborhood that have not been filled and a streetlight that is out at Grand Terrace Road and Vista Grande Way. Bobbie Forbes, Grand Terrace commented on graffiti in the City and a streetlight that is out on Commerce Way. E. PUBLIC HEARINGS - NONE F. UNFINISHED BUSINESS - NONE C.3 Packet Pg. 11 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 9 , 2 0 2 3 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 May 9, 2023 City of Grand Terrace Page 4 G. NEW BUSINESS 8. Introduction of the FY2023-24 Proposed Budget Christine Clayton, Finance Director gave the staff report and PowerPoint presentation for this item. 1. REVIEW THE PROPOSED BUDGET FOR FISCAL YEAR 2023-24; AND 2. BEGIN BUDGET DELIBERATIONS FOR THE PROPOSED BUDGET FOR FISCAL YEAR 2023-24 ON MAY 23, 2023. RESULT: NO ACTION TAKEN H. REQUESTS FOR FUTURE AGENDA ITEMS BY CITY COUNCIL - NONE I. CITY COUNCIL COMMUNICATIONS Council Member Kenneth J. Henderson Council Member Kenneth Henderson commented on board meetings and events that he attended. Click here for the report. Council Member Jeff Allen Council Member Jeff Allen commented on board meetings and events that he attended. Click here for the report. Mayor Pro Tempore Doug Wilson Mayor Pro Tem Doug Wilson has nothing to report on meetings and events he has attended. Mayor Bill Hussey Mayor Bill Hussey commented on board meetings and events that he attended. Click here for the report. J. CITY MANAGER COMMUNICATIONS City Manager Konrad Bolowich announced that the following streets will be receiving repairs: • Pico • Van Buren • Michigan • Vivienda C.3 Packet Pg. 12 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 9 , 2 0 2 3 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 May 9, 2023 City of Grand Terrace Page 5 • La Cadena • Palm If possible, some additional washed-out areas will also be included. Another project that will be worked on is the storm drain at Van Buren and Mt. Vernon. K. CLOSED SESSION - NONE L. ADJOURN Mayor Hussey adjourned the Regular Meeting of the City Council at 7:45 p.m. in memory of Grand Terrace resident, Anne Wade-Hornsby. The Next Regular City Council meeting will be held on Tuesday, May 23, 2023, at 6:00 p.m. _________________________________ Bill Hussey, Mayor _________________________________ Debra L. Thomas, City Clerk C.3 Packet Pg. 13 Mi n u t e s A c c e p t a n c e : M i n u t e s o f M a y 9 , 2 0 2 3 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE: May 23, 2023 Council Item TITLE: Approval of Annual Appropriations Limit for Fiscal Year 2023-24, Including Adoption of the Price Factor and Population Change Factor for the Appropriations Limit Calculation PRESENTED BY: Christine Clayton, Finance Director RECOMMENDATION: (1) Approve the selection of the Change in Per Capita Personal Income of 4.44% as the Price Factor for the Fiscal Year 2023-24 Appropriations Limit Calculation; and (2) Approve the selection of the Change in County of San Bernardino Population of 0.12% as the Population Change Factor for the Fiscal Year 2023-2024 Appropriations Limit Calculation; and (3) Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2023-24, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION 2030 VISION STATEMENT: 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: On November 6, 1979, California voters approved the Gann Spending Limitation Initiative (Proposition 4) establishing Article XIIIB of the State Constitution. Article XIIIB sets limits on the amount of tax revenues that the State and most local governments can appropriate within a given fiscal year. Its basic provisions are as follows: • Each year, the State and local governments must adopt a resolution establishing an Appropriations Limit, also known as the “Gann Limit”. Fiscal Year 1984-85 appropriations serve as the base for this limit, with adjustments being made annually to reflect increases in population, the cost of living, and financial responsibility transfers. C.4 Packet Pg. 14 • Only tax proceeds are subject to the limit. Charges for services, regulatory fees, grants, loans, donations, and other non-tax proceeds are not subject to the limit. Exemptions are also made for voter-approved debt, debt that existed prior to January 1, 1979, and for the cost of compliance with court or Federal government mandates. • All tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers within a two-year period. • The voters may approve an increase in the Appropriations Limit. For the increase to remain in effect, however, it must be re-approved by voters at four- year intervals. On June 5, 1990, California voters approved the Traffic Congestion Relief and Spending Limitation Act (Proposition 111), which made various amendments to Article XIIIB of the State Constitution. The major changes, which became effective July 1, 1990, are as follows: • The change in the cost of living is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of non-residential new construction. Previously, the change in the cost of living was defined as the lesser of the change in the U.S. Consumer Price Index or the change in California per capita personal income. • The change in population is defined as either a change in the City’s population or a change in the County’s population, whichever is greater. • “Qualified capital outlay projects” were added to the items exempted from the Appropriations Limit. Qualified capital outlay projects must have a useful life of ten or more years and a cost that equals or exceeds $100,000. • Tax revenues received in excess of the Appropriations Limit must be refunded to taxpayers only if the limit is exceeded over a two-year period. The annual calculation of the Appropriations Limit must be reviewed as part of the City’s annual financial audit. DISCUSSION: As indicated above, Proposition 111 made several changes to the method used to calculate the Appropriations Limit. The change in the cost of living (or “price factor”) is defined to be either the change in California per capita personal income or the change in assessed valuation due to the addition of non-residential new construction. Following are the two options for the City’s FY 2023-24 Appropriations Limit calculation: 1) Change in California per capita personal income (provided by California Department of Finance): 4.44% 2) Change in Grand Terrace assessed valuation from 2023 to 2024 due to the C.4 Packet Pg. 15 addition of non-residential new construction: This information is not yet available from the County Assessor’s office. When the data is available, if it is greater than the change in California per capita personal income, the Appropriations Limit will be revised and resubmitted to the City Council for approval. Based on the above information, the change in California’s per capita personal income has been used as the price factor for the FY 2023-24 Appropriations Limit calculation. The “population factor” to be used in calculating the Appropriations Limit is defined by Proposition 111 as either a change in the City’s population or a change in the County’s population, whichever is greater. Per information provided by the California Department of Finance, the following are the population changes from 2023 to 2024: 1) Change in the City of Grand Terrace population: (-0.73%) 2) Change in San Bernardino County population: 0.12% Since Option 2 (change in San Bernardino County population) is greater than the City of Grand Terrace population change, it is recommended to be used as the population factor for the FY 2023-24 Appropriations Limit calculation. Exhibit A provides the calculation of the FY 2023-24 Appropriations Limit using the recommended price and population factors. Exhibit B identifies the revenues that are classified as tax proceeds and those that are classified as non-tax proceeds for Appropriations Limit purposes. Exhibit C is the Department of Finance letter providing the per capita personal income and population change information used in the Appropriations Limit calculation. The City’s Appropriations Limit for FY 2022-23 was $17,438,676. The recommended change factor, as allowed by Proposition 111 due to cost of living and population changes, is 1.0457. This results in an FY 2023-24 Appropriations Limit of $18,781,454. The FY 2023-24 Proposed Budget contains appropriations subject to the Appropriations Limit of $6,041,251 which is $12,740,204 below the City’s legal limit. FISCAL IMPACT: There is no fiscal impact associated with the adoption of the FY 2023-24 Appropriations Limit, as the City is safely within its legal appropriations limit for FY 2023-24. ATTACHMENTS: • FY 2023-24 Appropriations Limit Resolution (PDF) • Exhibit A- FY 2023-24 Appropriations Limit Calculation (PDF) • Exhibit B - Revenue Classification (PDF) • Exhibit C - DOF Price and Population Letter 2023 (PDF) C.4 Packet Pg. 16 APPROVALS: Christine Clayton Completed 05/12/2023 11:09 AM Finance Completed 05/12/2023 11:09 AM City Manager Completed 05/17/2023 12:47 PM City Council Pending 05/23/2023 6:00 PM C.4 Packet Pg. 17 Page 1 of 3 RESOLUTION NO. 2023-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2023-24, INCLUDING ADOPTION OF THE PRICE FACTOR AND POPULATION CHANGE FACTOR FOR THE APPROPRIATIONS LIMIT CALCULATION Recitals WHEREAS, Article XlllB of the California Constitution and Section 7910 of the California Government Code require that each year the City of Grand Terrace shall by resolution, establish an Appropriations Limit for the fiscal year; and WHEREAS, the City Council has adopted the Budget for Fiscal Year 2023-24 on May 23, 2023 and has prepared adjustments to said budget, a copy of which is on file in the Office of the City Clerk and available for public inspection, and WHEREAS, the said Budget and proposed amendments contains the estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and WHEREAS, the City’s Finance Department has prepared calculations and documentation required for and to be used in the determination of certain matters and for the establishment of an Appropriations Limit for the City for Fiscal Year 2023-24; and WHEREAS, in accordance with Section 7910 of the California Government Code, documentation used in the determination of the appropriations limit and other necessary determinations was made available to the public in accordance with the requirements set forth therein; and WHEREAS, the City Council has considered pertinent data such as price and population factors and made such determinations as may be required by law, and has adopted this Resolution at a regularly scheduled meeting of the City Council: and WHEREAS, the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2023- 24 is hereby established at $18,781,454 and the total annual appropriations subject to such limitation for Fiscal Year 2023-24 are determined to be $6,041,251. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. That $18,781,454 is hereby established as the Appropriations Limit for the City of Grand Terrace for Fiscal Year 2023-24. 2. The City Council hereby adopts the findings and methods of calculation set forth in Exhibit A (Appropriations Limit Calculation) and Exhibit B (Proceeds of Tax Calculation). C.4.a Packet Pg. 18 At t a c h m e n t : F Y 2 0 2 3 - 2 4 A p p r o p r i a t i o n s L i m i t R e s o l u t i o n ( G A N N L i m i t ) Page 2 of 3 3. The City of Grand Terrace reserves the right to revise the factors associated with the calculation of the limit established pursuant to Article XlllB of the California Constitution if such changes or revisions would result in a more advantageous Appropriations Limit in the future. 4. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. 5. The City Clerk shall certify to the adoption of this Resolution. 6. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 23rd day of May, 2023. ________________________________ William Hussey Mayor ATTEST: __________________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: __________________________________ Adrian R. Guerra City Attorney C.4.a Packet Pg. 19 At t a c h m e n t : F Y 2 0 2 3 - 2 4 A p p r o p r i a t i o n s L i m i t R e s o l u t i o n ( G A N N L i m i t ) Page 3 of 3 C.4.a Packet Pg. 20 At t a c h m e n t : F Y 2 0 2 3 - 2 4 A p p r o p r i a t i o n s L i m i t R e s o l u t i o n ( G A N N L i m i t ) APPROPRIATIONS SUBJECT TO THE LIMIT FY 2023-24 Total Revenue 12,175,655$ Less Non-Proceeds of Tax 6,134,404 A) Total Appropriations Subject to the Limit 6,041,251$ APPROPRIATIONS LIMIT B) FY 2022-23 Appropriations Limit 17,438,676 C) Change Factor**% Increase Factor Cost of Living Adjustment 4.44 1.0444 Population Adjustment 0.12 1.0012 Change Factor (1.0755 x 1.0014)1.0457 D) Increase (decrease) in Appropriations Limit 1,342,778$ E) FY 2023-24 Appropriations Limit (B x C)18,781,454$ REMAINING APPROPRIATIONS CAPACITY (E-A)12,740,204$ Remaining Capacity as Percent of the FY 2023-24 Appropriations Limit 67.83% *Revenues are based on FY 2023-24 Proposed Budget (all City funds excluding Successor Agency). ** State Department of Finance Percent of Change in California Per Capita Income Percent of Change in San Bernardino County Population EXHIBIT A CITY OF GRAND TERRACE APPROPRIATIONS (GANN) LIMIT CALCULATION FISCAL YEAR 2023-24 C.4.b Packet Pg. 21 At t a c h m e n t : E x h i b i t A - F Y 2 0 2 3 - 2 4 A p p r o p r i a t i o n s L i m i t C a l c u l a t i o n ( G A N N L i m i t ) CITY OF GRAND TERRACE APPROPRIATIONS (GANN) LIMIT PROCEEDS OF TAX CALCULATION FISCAL YEAR 2023-24 BUDGETED BUDGETED PROCEEDS NON-PROCEEDS TOTAL REVENUE SOURCE OF TAX OF TAX REVENUE TAXES Property Tax (1)4,701,195$ 4,701,195$ Sales Tax (2) 1,234,000 1,234,000 Business License Tax 94,000 94,000 FEES Franchise Fees 650,000$ 650,000 Building Fees 207,000$ 207,000 Planning Fees 354,000$ 354,000 Other Permits/Fees 424,870$ 424,870 Intergovernmental 2,393,597$ 2,393,597 Use of Money & Property 344,109$ 344,109 Gas Tax/Highway User Fees 668,000$ 668,000 Measure "I" Transportation 300,000$ 300,000 SLESF (AB 3229 COPS)165,000$ 165,000 CDBG 56,020$ 56,020 Other 60,710$ 60,710 OPERATING BUDGET SUBTOTAL 6,029,195$ 5,623,306$ 11,652,501$ % of Total 51.74%48.26%100.00% Interest Allocation (3)12,056 11,244 23,300 CAPITAL PROJECT FUNDING Gas Tax/Measure "I"/Transfers 499,854 499,854 State Grants - - Bond Proceeds - - CAPITAL PROJECT SUBTOTAL -$ 499,854$ 499,854$ TOTAL 6,041,251$ 6,134,404$ 12,175,655$ Revenues are based on FY 2023-24 Proposed Budget (all City funds excluding Successor Agency). Notes: (1) Includes Property Tax In-Lieu of Vehicle License Fees & RPTTF Residual Receipts (2) Includes Property Tax In-Lieu of Sales Tax (3) Based on percentage of Tax/Non-Tax Proceeds EXHIBIT B C.4.c Packet Pg. 22 At t a c h m e n t : E x h i b i t B - R e v e n u e C l a s s i f i c a t i o n ( G A N N L i m i t ) May 2023 Dear Fiscal Officer: Subject: Price Factor and Population Information Appropriations Limit California Revenue and Taxation Code section 2227 requires the Department of Finance (Finance) to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2023, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2023-24. Attachment A provides the change in California’s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the 2023-24 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The code section and the California Constitution can be accessed at the following website: http://leginfo.legislature.ca.gov/faces/codes.xhtml. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits. Population Certification The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2023. Please Note: The prior year’s city population estimates may be revised. The per capita personal income change is based on historical data. If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086. JOE SPEPHENSHAW Director By: Erika Li Chief Deputy Director Attachment C.4.d Packet Pg. 23 At t a c h m e n t : E x h i b i t C - D O F P r i c e a n d P o p u l a t i o n L e t t e r 2 0 2 3 ( G A N N L i m i t ) May 2023 Attachment A A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2023-24 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2023-24 4.44 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2023-24 appropriation limit. 2023-24: Per Capita Cost of Living Change = 4.44 percent Population Change = -0.35 percent Per Capita Cost of Living converted to a ratio: 4.44 + 100 = 1.0444 100 Population converted to a ratio: -0.35 + 100 = 0.9965 100 Calculation of factor for FY 2023-24: 1.0444 x 0.9965 = 1.0407 C.4.d Packet Pg. 24 At t a c h m e n t : E x h i b i t C - D O F P r i c e a n d P o p u l a t i o n L e t t e r 2 0 2 3 ( G A N N L i m i t ) Fiscal Year 2023-24 Attachment B Annual Percent Change in Population Minus Exclusions* January 1, 2022 to January 1, 2023 and Total Population, January 1, 2023 Total County Percent Change ---Population Minus Exclusions ---Population City 2022-2023 1-1-22 1-1-23 1-1-2023 San Bernardino Adelanto 0.65 36,420 36,656 36,656 Apple Valley -0.37 75,277 74,996 74,996 Barstow -1.96 24,768 24,283 24,918 Big Bear Lake -0.43 4,935 4,914 4,914 Chino 0.69 88,564 89,171 93,137 Chino Hills -0.70 77,601 77,058 77,058 Colton -0.67 53,513 53,154 53,154 Fontana 0.58 212,616 213,851 213,851 Grand Terrace -0.73 12,908 12,814 12,814 Hesperia 0.19 99,855 100,041 100,041 Highland -0.53 56,283 55,984 55,984 Loma Linda -0.03 25,198 25,191 25,228 Montclair -0.51 37,688 37,494 37,494 Needles -0.77 4,793 4,756 4,756 Ontario 1.14 178,682 180,717 180,717 Rancho Cucamonga -0.31 174,090 173,545 173,545 Redlands -0.40 72,259 71,972 71,972 Rialto -0.41 103,406 102,985 102,985 San Bernardino 1.25 219,218 221,949 223,230 Twentynine Palms -0.94 15,687 15,539 25,929 Upland -0.50 78,771 78,376 78,376 Victorville 0.90 132,189 133,384 137,193 Yucaipa -0.46 54,242 53,991 53,991 Yucca Valley -0.35 21,712 21,635 21,635 Unincorporated -0.45 290,306 289,011 297,482 County Total 0.12 2,150,981 2,153,467 2,182,056 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. C.4.d Packet Pg. 25 At t a c h m e n t : E x h i b i t C - D O F P r i c e a n d P o p u l a t i o n L e t t e r 2 0 2 3 ( G A N N L i m i t ) AGENDA REPORT MEETING DATE: May 23, 2023 Council Item TITLE: Approval of an Agreement with San Bernardino County for the Allocation of Opioid Settlement Funds PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: Approve Allocation Agreement with the County of San Bernardino, Allocating the City’s Portion of the Opioid Settlement Funds to the County 2030 VISION STATEMENT: This staff report supports City Council Goal Number 4, “Develop and Implement Successful Partnerships” by working collaboratively with community groups and private and public sector agencies to facilitate the delivery of services benefitting youth, seniors & our community. BACKGROUND: At the March 28, 2023 City Council Meeting, the City Council considered and approved participation in a new opioid settlement with manufacturers and retailers of opioids who were named as additional defendants in litigation aimed at addressing the opioid crisis in California. The recommendations approved by the Council were: (1) authorization for the City to participate in the National Opioid Settlements with the 2023 Settling Defendants on the terms and conditions of those settlement agreements; (2) approval of agreements with the State of California on the distribution of settlement funds; and (3) authorization for the City Manager to carry out all necessary acts such that the City can participate in the National Opioid. By its action on March 28, 2023, the Grand Terrace City Council also approved the default allocation of funds to the County, which was recommended by staff due to the strict accounting and expenditure requirements attached to direct distribution to the City. DISCUSSION: Because the City approved the default distribution of settlement funds to the County, whatever portion the City is entitled to will be distributed directly to the County, and the C.5 Packet Pg. 26 County will subsequently administer the funds, implement and manage all drug remediation and treatment programs, and do all required reporting to the Department of Health Care Services (DHCS). As a result, the County has requested that the City review and approve the allocation agreement in Attachment 1. The allocation agreement details the City’s status under the County as a “Local Subdivision” and describes the intended uses of the settlement funds toward opioid remediation. Among its provisions, the agreement acknowledges that: (1) the City’s portion of the funds will be paid directly to the County; (2) the City’s allocation will be used toward opioid remediation strategies such as expanding training and access to recovery and treatment for addiction; and (3) after executing the agreement, the City will not request its direct payment. Under the agreement, the County is responsible for all reporting requirements to the Department of Health Care Services (DHCS) and is responsible for compliance and communication with DHCS oversight. There is an extensive list of opioid remediation tactics that the County will use in Attachment I, beginning on page eight. The City’s allocation will only be used for opioid remediation, as stated in section b (II) on page 4 of the agreement. Approval of this item would authorize the City Manager to execute the attached agreement and defer the City’s allocation and reporting requirements to the County of San Bernardino. FISCAL IMPACT: None. Any funds allocated will automatically be transferred to the County of San Bernardino. ATTACHMENTS: • 2P94368-County-City Allocation Agreement - Teva et al_Grand Terrace (DOCX) APPROVALS: Konrad Bolowich Completed 05/17/2023 10:53 AM City Manager Completed 05/17/2023 12:47 PM City Council Pending 05/23/2023 6:00 PM C.5 Packet Pg. 27 Standard Contract Page 1 of 22 THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY CAO – Finance and Administration Department Contract Representative Telephone Number Contractor CITY OF GRAND TERRACE Contractor Representative Telephone Number Contract Term Original Contract Amount Amendment Amount Total Contract Amount Cost Center AGREEMENT FOR THE USE OF THE LOCAL ALLOCATION OF OPIOID SETTLEMENT FUNDS RE: ALLERGAN, CVS, TEVA, WALGREENS, AND WALMART This Agreement for the Use of the Local Allocation of Opioid Settlement Funds Re: Allergan, CVS, Teva, Walgreens, and Walmart (“Agreement”) is made and entered into on the date this Agreement is fully executed by and between SAN BERNARDINO COUNTY (“County”) and CITY OF GRAND TERRACE (“City”). City and County may be referred to individually as “Party” and or collectively as “Parties.” WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death. The State of California and California counties and cities have spent and continue to spend millions of dollars each year to address the direct consequences of this crisis; and WHEREAS, in response to the opioid crisis, counties, cities, and states across the country filed lawsuits to hold opioid manufacturers, distributors, pharmacies, and others responsible for the harms caused by their deception, negligence, and creation of a public nuisance; and WHEREAS, on or about July 19, 2018, the County filed a lawsuit in the United States District Court for the Central District of California against numerous opioid manufacturers and distributors alleging that as a result of the unlawful conduct of the defendants, the opioid crisis resulted, which caused damage to the County and its residents; and Contract Number SAP Number C.5.a Packet Pg. 28 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 2 of 22 WHEREAS, the County’s lawsuit was transferred to the United States District Court for the Northern District of Ohio to become part of the multidistrict litigation (“MDL”), consisting of thousands of lawsuits brought by various states and local subdivisions, including counties, cities, and special districts, against a number of opioid distributors and manufacturers; and WHEREAS, starting on November 14, 2022 through December 9, 2022, five defendants in the MDL— CVS, Walgreens, Walmart, Teva, and Allergan (collectively, “Settling Defendants”) tentatively reached five separate settlements in the MDL (each a “Settlement” and collectively, “Settlements”), which allow for participation by eligible Non-litigating Local Subdivisions; and WHEREAS, City is an eligible Non-litigating Local Subdivision and has submitted the requisite documentation necessary to participate in the Settlements; WHEREAS, under the Master Agreements for the Settlements, the states and their Local Subdivisions may enter into allocation agreements to govern how the settlements funds from the Settlements coming to a state will be allocated to the state and its Local Subdivisions; and WHEREAS, the State of California (“State”) and its Local Subdivisions have entered into Allocation Agreements for all of the Settlements, which provide that each eligible Local Subdivision that participates in the Settlements will have its Local Allocation go to the county where the subdivision is located, unless the Local Subdivision notifies the Settlement Fund Administrator, at least 60 days before each payment date, that it elects to take a direct distribution of its Local Allocation; and WHEREAS, the City has decided it will not take a direct distribution of its Local Allocation in any of the Settlements that it is participating in, and will instead have its Local Allocation distributed to the County; and WHEREAS, the parties wish to set forth the terms as to the County’s use of the City’s Local Allocation; and NOW, THEREFORE, in consideration of the preceding recitals, together with the mutual covenants hereinafter contained, the parties hereto mutually agree that the above recitals are true and correct and incorporated into the terms of this Agreement and as follows: A. DEFINITIONS a. Actavis Generic Entities means Actavis LLC (f/k/a Actavis Inc.), Actavis Elizabeth LLC, Actavis Kadian LLC, Actavis Pharma, Inc. (f/k/a Watson Pharma, Inc.), Actavis Kadian LLC, Actavis Laboratories UT, Inc. (f/k/a Watson Laboratories, Inc. – Utah), Actavis Mid Atlantic LLC, Actavis Totowa LLC, Actavis Laboratories FL, Inc. (f/k/a Watson Laboratories, Inc. – Florida), Actavis South Atlantic LLC, Warner Chilcott Company LLC, and Watson Laboratories, Inc. b. Allergan shall mean Allergan Finance, LLC (f/k/a Actavis, Inc., which in turn was f/k/a Watson Pharmaceutics, Inc.) and Allergan Limited (f/k/a Allergan plc, which, in turn, was f/k/a Actavis plc). c. Allocation Agreement(s) means the five allocation agreements entered into by and between the State and its Local Subdivisions specifying how the settlement funds from the five Settlements will be distributed to the State and its Local Subdivisions. The five Allocation Agreements are entitled: (1) “Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement”; (2) “Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement”; (3) “Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement”; (4) “Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement”; and (5) “Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement.” C.5.a Packet Pg. 29 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 3 of 22 d. CA Abatement Accounts Fund shall mean “CA Abatement Accounts Fund” as defined in the Allocation Agreements. e. CVS shall mean CVS Health Corporation and CVS Pharmacy, Inc. and all of their past and present direct and indirect parent and subsidiaries. f. DHCS is the California Department of Health Care Services. g. Local Allocation means a Local Subdivision’s share of the settlement funds from the five Settlements, as set forth in Appendix 1 to the Allocation Agreements. h. Local Subdivision(s) means cities and counties. i. Master Agreements shall refer to the settlement agreements in the five Settlements. j. Non-litigating Local Subdivision shall mean a Local Subdivision that did not file a lawsuit against a Settling Defendant relating to the opioid crisis. k. Settlement Fund Administrator shall mean the “Settlement Fund Administrator” as defined in the Master Agreements. l. Teva shall mean Teva Pharmaceutical Industries Ltd. and all of its respective past and present direct or indirect parents, subsidiaries, divisions, affiliates, joint ventures, predecessors, successors, assigns, including but not limited to Teva Pharmaceuticals USA, Inc., the Actavis Generic Entities, and Anda Inc. m. Walgreens shall mean Walgreen Co. n. Walmart shall mean Walmart Inc. B. SCOPE a. This Agreement supplements and is subject to the terms of the Master Agreements and the Allocation Agreements and any amendments thereto. If any term of this Agreement is inconsistent with a mandatory term of the Master Agreements or the Allocation Agreements, the order of the governing document shall be as follows: Master Agreements, Allocation Agreements, and last, this Agreement. b. This Agreement governs the County’s use of the City’s Local Allocation from the Settlements paid directly to the County. C. USE OF CITY’S LOCAL ALLOCATION a. Participation I. City shall have all of its Local Allocation from the Settlements paid directly to the County. II. City shall not, at any time, after execution of this Agreement advise the Settlement Fund Administrator that it requests direct payment of its Local Allocation from the Settlements. III. The parties understand that the Local Allocation is payable over a period of time, with each Settlement paying out over a different period of time. The parties further understand that the yearly disbursement amount of the Local Allocation payment may vary. C.5.a Packet Pg. 30 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 4 of 22 b. County’s Use of the City’s Local Allocation I. The City’s Local Allocation will become part of the County’s share of the CA Abatement Accounts Fund, which will be: 1. Used by County in accordance with Section 4.B.ii (Use of CA Abatement Account Funds) of the Allocation Agreements; and 2. Reported on by County in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight) of the Allocation Agreements. II. The parties understand and agree that the City’s Local Allocation that will be distributed to the County may only be used by County for future opioid remediation as described in Exhibit E to the Master Agreements, attached hereto as Attachment I. III. The parties also understand and agree that no less than 50% of the CA Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities as outlined in the Allocation Agreements. IV. County understands and agrees that it is responsible for the reporting requirements to DHCS as specified in Section 5 of the Allocation Agreements. V. County understands and agrees that it is responsible for responding to any DHCS oversight inquiries and/or requests as specified in Section 4.B.iii. of the Allocation Agreements with respect to the City’s Local Allocation that is distributed to the County. VI. County will track all deposits and expenditures of CA Abatement Accounts Funds consistent with Section 5(c) of the Allocation Agreements. D. GENERAL CONTRACT REQUIREMENTS D.1 Recitals The recitals set forth above are true and correct and incorporated herein by this reference. D.2 Assignability Neither party may assign this Agreement without the prior written consent of the other party. D.3 Attorney’s Fees and Costs If any legal action is instituted to enforce any party’s rights hereunder, each party shall bear its own costs and attorney fees, regardless of who is the prevailing party. D.4 Choice of Law This Agreement shall be governed by and construed according to the laws of the State of California. D.5 Legality and Severability The parties’ actions under the Agreement shall comply with all applicable laws, rules, regulations, court orders and governmental agency orders. The provisions of this Agreement are specifically made severable. If a provision of the Agreement is terminated or held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall remain in full effect. D.6 Mutual Covenants The parties to this Agreement mutually covenant to perform all of their obligations hereunder, to exercise all discretion and rights granted hereunder, and to give all consents in a reasonable manner consistent with the standards of “good faith” and “fair dealing”. C.5.a Packet Pg. 31 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 5 of 22 D.7 Relationship of the Parties Nothing contained in this Agreement shall be construed as creating a joint venture, or partnership, between the Parties hereto, nor shall either Party have the right, power or authority to create an obligation or duty, expressed or implied, on behalf of the other Party hereto. D.8 Termination for Convenience Except as otherwise specified in this provision, the County and the City each reserve the right to terminate the Agreement, for any reason, with a thirty (30) day written notice of termination. In the event of termination of this Agreement, the City shall not be entitled to any of the City’s Local Allocation that (1) had already been distributed to the County prior to the effective date of termination, or (2) is scheduled to be distributed to the County within 60 days of the notice of termination. D.9 Notice All written notices provided for in this Agreement or which either party desires to give to the other shall be deemed fully given, when made in writing and either served personally, or deposited in the United States mail, postage prepaid, and addressed to the other party as follows: To County: To City: County Administrative Office – Finance & Administration City of Grand Terrace Matthew Erickson, Chief Financial Officer City Manager 385 N. Arrowhead Ave. 4th Floor 22795 Barton Road San Bernardino, CA 92415-0123 Grand Terrace, CA 92313 Notice shall be deemed communicated two (2) County working days from the time of mailing if mailed as provided in this paragraph. D.10 Venue The parties acknowledge and agree that this Agreement was entered into and intended to be performed in San Bernardino County, California. The parties agree that the venue of any action or claim brought by any party to this Agreement will be the Superior Court of California, San Bernardino County, San Bernardino District. Each party hereby waives any law or rule of the court, which would allow them to request or demand a change of venue. If any action or claim concerning this Agreement is brought by any third party and filed in another venue, the parties hereto agree to use their best efforts to obtain a change of venue to the Superior Court of California, San Bernardino County, San Bernardino District. D.11 Informal Dispute Resolution In the event of any dispute, claim, question or disagreement arising from or relating to this Agreement or breach thereof, the parties hereto shall use their best efforts to settle the dispute, claim, question or disagreement. To this effect, they shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties. E. TERM OF AGREEMENT This Agreement is effective as of the date fully executed and expires following the final Settlement payout, but may be terminated earlier in accordance with the provisions of this Agreement. F. INDEMNFICATION F.1 County agrees to indemnify, defend (with counsel reasonably approved by City) and hold harmless City and its officers, employees, agents, and volunteers from any and all claims, actions or losses, damages, and/or liability resulting from County’s negligent acts or omissions which arise from County’s performance of its obligations under this Agreement. C.5.a Packet Pg. 32 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 6 of 22 F.2 City agrees to indemnify, defend (with counsel reasonably approved by County), and hold harmless County and its officers, employees, agents, and volunteers from any and all claims, actions or losses, damages, and/or liability resulting from City’s negligent acts or omissions which arise from City’s performance of its obligations under this Agreement. F.3 In the event County and/or City is found to be comparatively at fault for any claim, action, loss or damage which results from their respective obligations under the Agreement, County and/or City shall indemnify the other to the extent of its comparative fault. G. INSURANCE City and County are authorized self-insured public entities for purposes of Professional Liability, General Liability, Automobile Liability and Workers’ Compensation and warrant that through their insurance policies or respective programs of self-insurance, they have adequate coverage or resources to protect against liabilities arising out of the performance of the terms, conditions or obligations of this Agreement. H. SIGNATURES This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Agreement. The parties shall be entitled to sign and transmit an electronic signature of this Agreement (whether by facsimile, PDF or other email transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Agreement upon request. I. ENTIRE AGREEMENT This Agreement, including Attachment I, which is attached hereto and incorporated by reference, represents the final, complete and exclusive agreement between the parties hereto. Any prior agreement, promises, negotiations or representations relating to the subject matter of this Agreement not expressly set forth herein are of no force or effect. This Agreement is executed without reliance upon any promise, warranty or representation by any party or any representative of any party other than those expressly contained herein. Each party has carefully read this Agreement and signs the same of its own free will. [SIGNATURE PAGE FOLLOWS] C.5.a Packet Pg. 33 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 7 of 22 IN WITNESS WHEREOF, County and City have each caused this Agreement to be subscribed by its respective duly authorized officers, on its behalf. FOR COUNTY USE ONLY Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department Charles Phan, Deputy County Counsel Date Date Date SAN BERNARDINO COUNTY CITY OF GRAND TERRACE By Name: Matthew Erickson Title: Chief Financial Officer (Authorized signature - sign in blue ink) Name Konrad Bolowich (Print or type name of person signing contract) Title City Manager (Print or Type) Dated: Address 22795 Barton Road Grand Terrace, CA 92313 C.5.a Packet Pg. 34 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 8 of 22 ATTACHMENT I C.5.a Packet Pg. 35 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 9 of 22 C.5.a Packet Pg. 36 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 10 of 22 C.5.a Packet Pg. 37 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 11 of 22 C.5.a Packet Pg. 38 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 12 of 22 C.5.a Packet Pg. 39 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 13 of 22 C.5.a Packet Pg. 40 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 14 of 22 C.5.a Packet Pg. 41 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 15 of 22 C.5.a Packet Pg. 42 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 16 of 22 C.5.a Packet Pg. 43 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 17 of 22 C.5.a Packet Pg. 44 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 18 of 22 C.5.a Packet Pg. 45 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 19 of 22 C.5.a Packet Pg. 46 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 20 of 22 C.5.a Packet Pg. 47 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 21 of 22 C.5.a Packet Pg. 48 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) Page 22 of 22 C.5.a Packet Pg. 49 At t a c h m e n t : 2 P 9 4 3 6 8 - C o u n t y - C i t y A l l o c a t i o n A g r e e m e n t - T e v a e t a l _ G r a n d T e r r a c e ( O p i o i d S e t t l e m e n t F u n d s C o u n t y A g r e e m e n t ) AGENDA REPORT MEETING DATE: May 23, 2023 Council Item TITLE: Authorize Purchase Order for Replacement Street Signs PRESENTED BY: Shanita Tillman, Senior Management Analyst RECOMMENDATION: 1. Authorize the expenditure of $11,038.13 from ARPA Fund (Fund 94) for the purchase of replacement of City street signs 2. Authorize the City Manager to execute a purchase order, and all necessary future purchase orders up to the remaining $93,253 as approved at the Regular Meeting of the City Council on April 26, 2022 to procure City street signs 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability BACKGROUND: On March 11, 2021, the American Rescue Plan Act (ARPA) was signed into law by President Biden. This established the Coronavirus State & Local Fiscal Recovery Fund (SLFRP) for local governments (cities and towns) across the U.S. to receive a funding allocation. At the regular meeting of the City Council on April 26, 2022, Council approved allocation for ARPA funds and $150,000 was used toward street sign replacement for faded, missing, and damaged signs. On August 23, 2022, Council approved the purchase order of $33,935.48 from Traffic Management Products, Inc. for the procurement of street signs. DISCUSSION: The existing signs throughout the City have wear and tear due to the elements, and over the years staff has received complaints regarding the visibility of street signs. Staff anticipates replacing 316 street name signs and acquiring 107 traffic signs. Staff has been able to install many street name signs, and in order complete the desired task, additional signs are necessary. A quote for $11,038.13 was obtain from Traffic Management Products, Inc., and since the cumulative amount exceeds the City Manager’s signing authority of $25,000 per the Fiscal Policies authority to proceed is required. Staff is recommending the selection from Traffic Management Products, Inc. in the C.6 Packet Pg. 50 amount of $11,038.13, and authority to execute a purchase order up to $93,253 for the procurement of street signs as approved at the April 26, 2022 Council meeting. FISCAL IMPACT: The expenditure of $11,038.13 will come from the General Fund through a cost savings supplied by American Rescue Plan Act Fund, and will be initially charged to account 94- 175-229-000. ATTACHMENTS: • Traffic Management Quote (PDF) APPROVALS: Shanita Tillman Completed 05/15/2023 7:31 AM Finance Completed 05/16/2023 11:14 AM City Manager Completed 05/17/2023 12:46 PM City Council Pending 05/23/2023 6:00 PM C.6 Packet Pg. 51 C.6.a Packet Pg. 52 At t a c h m e n t : T r a f f i c M a n a g e m e n t Q u o t e ( 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 R e p l a c e m e n t S t r e e t S i g n s ) AGENDA REPORT MEETING DATE: May 23, 2023 Council Item TITLE: Approve an Amended and Restated Agreement No. 2 with Lynn Merrill and Associates PRESENTED BY: Shanita Tillman, Senior Management Analyst RECOMMENDATION: 1. Approve an Amended and Restated Agreement No. 2 with Lynn Merrill and Associates, Inc. to extend the Contract End Date from June 1, 2023 to June 30, 2024 at no additional cost 2. Authorize the City Manager to execute the Amended and Restated Agreement subject to City Attorney approval as to form BACKGROUND: In June 2019, the City Council awarded Lynn Merrill and Associates, Inc. (Lynn Merrill) a contract to prepare and submit paperwork for funding obligations, advertise and administer the federally funded Cycle 9 Hazard Safety Improvement Project (HSIP) Guardrail Replacement Project. The City received a grant in the amount of $648,399 to allow for Lynn Merrill to administer, manager and develop plans and specifications to remove and replace roadway guard rails around the City, as well as pay for the construction costs for the project. Due to staffing changes at the City, Lynn Merrill and Associates, and the COVID-19 pandemic, progress halted. Staff is requesting a no cost contract extension to allow Lynn Merrill to continue work on the guardrail replacement project. DISCUSSION: Due to staffing fluctuations, COVID-19, and difficulties in securing an engineering/ design consultant to prepare plans and specifications for the project, the contract is set to expire. To continue the work on the project, staff requests the City execute an Amended and Restated Agreement to extend the existing contract with Lynn Merrill to June 30, 2024 with no additional costs. FISCAL IMPACT: There are no additional monies needed to extend the contract with Lynn Merrill, and it is currently in the Fiscal Year 2023-24 budget. There is currently a balance of $9,089.12 C.7 Packet Pg. 53 left of on Lynn Merrill’s contract. ATTACHMENTS: • Lynn Merrill Agreement (DOCX) APPROVALS: Shanita Tillman Completed 05/12/2023 3:13 PM Finance Completed 05/16/2023 11:15 AM City Manager Completed 05/17/2023 12:45 PM City Council Pending 05/23/2023 6:00 PM C.7 Packet Pg. 54 01247.0006/739360.4 10/19/2021 -1- 01005.0006/891650.1 AMENDED AND RESTATED AGREEMENT No. 2 FOR CONTRACT SERVICES By and Between CITY OF GRAND TERRACE and LYNN MERRILL AND ASSOCIATES, INC. C.7.a Packet Pg. 55 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -2- 01005.0006/891650.1 AMENDED AND RESTATED AGREEMENT NO. 2 FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND LYNN MERRILL & ASSOCIATES, INC. This “AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND LYNN MERRILL AND ASSOCIATES, INC. ” (herein “Agreement”) is made and entered into this 23rd of May, 2023 by and between the City of Grand Terrace, a California municipal corporation (“City”) and Lynn Merrill and Associates, Inc., a California corporation (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.” RECITALS A. In 2019, City had 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 entered into that certain agreement entitled “Agreement for Contract Services by and between the City of Grand Terrace and Lynn Merrill and Associates Inc.” with Consultant for the services defined and described particularly in Article 1 of such agreement and dated June 25, 2019, (“Original Agreement”). D. Though services under the Original Agreement were carried out by Consultant, the COVID-19 pandemic and subsequent pandemic measures (such as social distancing and limitations on meetings in groups greater than 10), changes in City staffing, and difficulties in acquiring architectural and engineering services have delayed the completion of services in the Original Agreement. E. On September 28, 2021, the City and Consultant entered into an Amended and Restated Agreement (“Amended and Restated Agreement No. 1”) for Consultant to complete the services. F. The services in the Original Agreement that are completed are described further in Exhibit A of this Agreement, however no additional progress was made under Amended and Restated Agreement No. 1. G. Because the Consultant has carried out much of the work in the Original Agreement, is able to continue such work until Project completion as that term is defined within Exhibit “A” the Scope of Services as set forth herein, it is in the best interest of the City to continue services with the Consultant to complete the services. H. The authorized contract sum provided within Section 2.1 of the Original Agreement has not been exceeded and there still remains $9,089.12 that may be expended to complete the services under the Original Agreement (“Remaining Balance”). C.7.a Packet Pg. 56 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -3- 01005.0006/891650.1 I. The Parties have agreed to terminate Amended and Restated Agreement No. 1 in its entirety which shall have no further force and effect and enter into this Amended and Restated Agreement No. 2. By and through this Amended and Restated Agreement No. 2, Consultant has agreed to complete the services under the Original Agreement for the Remaining Balance. J. Based upon the forgoing, the Parties now desire to terminate Amended and Restated Agreement No. 1 in its entirety and amend and restate the Original Agreement in its entirety in order to allow the City to utilize the Consultant to complete the services in the Original Agreement as provided 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 hereby agree to terminate Amended and Restated Agreement No. 1 in its entirety, which shall be of no further force and effect, and amend and restate the Original Agreement in its entirety 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 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. C.7.a Packet Pg. 57 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -4- 01005.0006/891650.1 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 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 C.7.a Packet Pg. 58 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -5- 01005.0006/891650.1 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. 1.10 Recitals. The recitals set forth above are incorporated herein by this reference. ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT. 2.1 Contract Sum. (a) 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, under the Original Agreement and this Agreement shall not exceed $32,415.00 (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8. (b) The Consultant acknowledges and agrees that the City has compensated Consultant in the amount of $23,325.88 pursuant to the Original Agreement for the tasks, or portion of such tasks, which are marked with “( % COMPLETE)” as shown in Exhibit “A”. Consultant agrees that Consultant shall only be compensated for the completion of the tasks marked as “(INCOMPLETE)” or, in the case where only a percentage of a task is completed, the remaining incomplete percentage of such task as provided in Exhibit “A”, but in no event shall compensation exceed $9,089.12 for tasks marked as “(INCOMPLETE)” or, in the case where only a percentage of a task is completed, the remaining incomplete percentage of such task as set forth above. (c) Except to the specific rights and obligations set forth herein or created or reserved in this Agreement, the Consultant hereby releases and forever discharges the City and its officers, employees and agents from any and all claims, demands, actions, causes of action, obligations, costs, expenses, penalties, interest, attorneys’ fees, damages, losses and liabilities of whatsoever nature, character or kind, whether known or unknown, suspected or unsuspected, matured or contingent, which are or could have been the attributed to the tasks, or portion of such tasks, marked as “( % COMPLETE)” as shown in Exhibit “A”. C.7.a Packet Pg. 59 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -6- 01005.0006/891650.1 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.a Packet Pg. 60 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -7- 01005.0006/891650.1 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: C.7.a Packet Pg. 61 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -8- 01005.0006/891650.1 Lynn Merrill Principal (Name) (Title) (Name) (Title) (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 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 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 C.7.a Packet Pg. 62 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -9- 01005.0006/891650.1 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 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 C.7.a Packet Pg. 63 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -10- 01005.0006/891650.1 written on a per occurrence for bodily injury and property damage in an amount not less than $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.a Packet Pg. 64 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -11- 01005.0006/891650.1 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.a Packet Pg. 65 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -12- 01005.0006/891650.1 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.a Packet Pg. 66 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -13- 01005.0006/891650.1 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.a Packet Pg. 67 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -14- 01005.0006/891650.1 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.a Packet Pg. 68 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -15- 01005.0006/891650.1 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.a Packet Pg. 69 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -16- 01005.0006/891650.1 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 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs C.7.a Packet Pg. 70 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -17- 01005.0006/891650.1 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.a Packet Pg. 71 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -18- 01005.0006/891650.1 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.a Packet Pg. 72 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 -19- 01005.0006/891650.1 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.a Packet Pg. 73 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 20 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: City of Grand Terrace, a municipal corporation ATTEST: Bill Hussey, Mayor Debra L. Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP Adrian R. Guerra, City Attorney CONSULTANT: Lynn Merrill and Associates, Inc. By: Name: Lynn Merrill Title: Principal By: Name: Title: Address: 256 Cajon Street, Suite C Redlands, CA 92373 Phone: 909-894-4425 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.a Packet Pg. 74 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On , 2021 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) TITLE OR TYPE OF DOCUMENT PARTNER(S) LIMITED GENERAL NUMBER OF PAGES ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER DATE OF DOCUMENT SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) 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.a Packet Pg. 75 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On , 2021 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) TITLE OR TYPE OF DOCUMENT PARTNER(S) LIMITED GENERAL NUMBER OF PAGES ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER DATE OF DOCUMENT SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) 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.a Packet Pg. 76 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) A-1 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 EXHIBIT “A” SCOPE OF SERVICES I. Consultant will perform the following Services: A. Contractor shall provide Services, as described further below, in relation to the “Project,” which is described as follows: Under the Cycle 9 Highway Safety Improvement Program (“HSIP”), the City was awarded a grant to upgrade existing guardrails at high risk locations on Barton Road, Mount Vernon Avenue, Vista Grande Way and Vivienda Avenue in the amount of $648,300. This project is in coordination with the City of Colton. According to the Implementation Schedule submitted with the grant, the City should commence solicitation of PE consultants to prepare the PS&E documentation on or about April 1, 2019, with an expected completion of the PE Phase by February 1, 2022. Construction is slated to commence on or about July 1, 2022 and be completed on or about February 1, 2023. The Grant closeout should be completed by June 30, 2023. B. Consultant shall act as City’s Contract Administrator for the Project, which shall include, but is not limited to ensuring that the City complies with all the requirements of the grant awarded to the City pursuant to the HSIP (“Grant”) and the CalTrans Local Assistance Procedure Manual (“LAPM”) during all stages of the Project. (35% COMPLETE). C. In carrying out the Services, Contractor shall also prepare the required Request for Authorization to Proceed (E-76) in order to commence development of a procurement package for an Architectural & Engineering (“A&E”) agreement, including the preparation of a scope of work, assemblage of the Request for Proposal Package, coordination of the package through the solicitation and award process, and to provide any additional and related administrative support requested by the Contract Officer. (80% COMPLETE) D. Upon award of the A&E agreement by the City, Consultant shall continue to provide contract administration services for the Project, which shall include, but is not limited to, the development of bid documents necessary to solicit construction and installation bids from qualified contractors (“Construction Contractors”). Such bid documents shall be delivered pursuant to the schedule developed by Consultant and approved by the City as provided in Exhibit “D”. (INCOMPLETE) E. Consultant shall prepare and submit all reports required by the Grant to any reviewing agencies as may be required by applicable law, including, but not limited to the Grant requirements (“Applicable Law”). (35% COMPLETE) F. Consultant shall be the City’s liaison between the City and the City’s A&E consultant to ensure that all necessary documentation and Project milestones will be met. (INCOMPLETE) C.7.a Packet Pg. 77 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) A-2 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 G. Consultant shall, as may be required by the City, be the City’s liaison between the City and the City’s Construction Contractors. (INCOMPLETE) H. Consultant shall continue to provide administration of the Grant by ensuring that all documents supporting the Grant and any required approvals are timely submitted. (35% COMPLETE) I. Consultant shall provide such services as necessary to ensure that the Grant is closed out in accordance with Applicable Law, which is anticipated to occur from February 1, 2023 through June 30, 2023. II. As part of the Services, Consultant will prepare and deliver the following tangible work products to the City: A. Prepare and submit all required Grant documents, including, but not limited, to the Request for Authorization to Proceed (E-76) in accordance with the schedule developed by Consultant and approved by the City pursuant to Exhibit “D”. (80% COMPLETE) B. Prepare the procurement package for an A&E agreement, including the preparation of a scope of work, assemblage of the Request for Proposal Package, and review of bid documents in accordance with the schedule developed by Consultant and approved by the City pursuant to Exhibit “D”. (100% COMPLETE) C. Prepare bid documents necessary to solicit construction and installation bids from qualified contractors for the Project in accordance with the schedule developed by Consultant and approved by the City pursuant to Exhibit “D”. (INCOMPLETE) D. Prepare such other documents as may be necessary to carry out the Services under this Agreement in accordance with the schedule developed by Consultant and approved by the City pursuant to Exhibit “D”. (INCOMPLETE) III. 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 the following status reports: A. Weekly written status report to the Contract Officer and the City’s Director of Public Works. B. Such other status reports as may be requested by the Contract Officer or the City’s Director of Public Works from time to time. IV. All work product, including without limitation such work product related to Tasks shown as “(COMPLETE)” in this Exhibit “A”, 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. Consultant shall perform all the Tasks marked as “(INCOMPLETE)” or, in the case where only a percentage of a task is completed, the remaining incomplete percentage of such task in Exhibit “A” until completion. Completion is subject to review and acceptance by the City and must be revised by the Consultant without additional charge to the City until found C.7.a Packet Pg. 78 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) A-3 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 satisfactory and accepted by City which approval and acceptance shall not be unreasonably withheld. C.7.a Packet Pg. 79 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) B-1 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) C.7.a Packet Pg. 80 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) C-1 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 EXHIBIT “C” SCHEDULE OF COMPENSATION I. Consultant shall perform the Tasks marked as “(INCOMPLETE)” or, in the case where only a percentage of a task is completed, the remaining incomplete percentage of such task in Exhibit “A” until completion at the billing rates provided in Exhibit “C-1”. II. Consultant acknowledges and agrees that City has compensated Consultant for those Tasks, or portion of such Tasks, shown as “( % COMPLETE)” under Exhibit “A”, and that Consultant shall not be entitled for any additional payment for such tasks or portion thereof. III. Within the budgeted amounts for each Task as provided in Exhibit “C-1” that are shown as “(INCOMPLETE)” or, in the case where only a percentage of a task is completed, the remaining incomplete percentage of such task in Exhibit “A”, and with the approval of the Contract Officer, funds may be shifted from one Task subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8. IV. 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. V. The total compensation for the Services under the Original Agreement and this Agreement shall not exceed $32,415 as provided in Section 2.1 of this Agreement. VI. The Consultant’s billing rates for all personnel are attached as Exhibit “C-1”. C.7.a Packet Pg. 81 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) C-2 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 EXHIBIT C-1 CONSULTANT’S RATES C.7.a Packet Pg. 82 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) D-1 01247.0006/739360.4 10/19/2021 01005.0006/891650.1 EXHIBIT “D” SCHEDULE OF PERFORMANCE I Consultant shall commence the Services marked as “(INCOMPLETE)” or, in the case where only a percentage of a task is completed, the remaining incomplete percentage of such task , as described in Exhibit “A,” within 7 days of the City’s issuance of a notice to proceed, provided that the notice of proceed shall not be issued until the City has received evidence of Consultant’s City business license, certificates of insurance evidencing insurance required by this Agreement, and any other documentation required by the City prior to commencement of the Services under this Agreement. II. Consultant shall perform all Services timely in accordance with the schedule to be developed or revised, as applicable, by Consultant and subject to the written approval of the Contract Officer. Consultant shall complete all Services under this Agreement by June 30, 2024. Consultant expressly understands that time is of the essence in performance of this contract and in no even shall completion of all services extend beyond June 30, 2024. Failure by Consultant to complete the remaining services by June 30, 2024 shall suspend the City’s obligation to pay Consultant the remaining balance of the Contract Sum. However, if for any reason Consultant is unable to complete all Services by June 30, 2024, Consultant shall continue to perform all Incomplete or remaining Incomplete percentages of such services until completion as required by the City at the billing rates provided in Exhibit “C-1”, subject to authorization by the Contract Officer, unless otherwise agreed upon in writing by the Parties. III. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. C.7.a Packet Pg. 83 At t a c h m e n t : L y n n M e r r i l l A g r e e m e n t ( A m e n d e d a n d R e s t a t e d A g r e e m e n t N o . 2 w i t h L y n n M e r r i l l a n d A s s o c i a t e s ) AGENDA REPORT MEETING DATE: May 23, 2023 Council Item TITLE: An Agreement Between the City of Grand Terrace and Michael Baker International - Housing Element Consultant Services to Complete the 2021-2029 HCD Response to Comments and Obtain an Adopted Housing Element PRESENTED BY: Haide Aguirre, Senior Planner RECOMMENDATION: 1. Approve a Professional Services Agreement Between the City of Grand Terrace and Michael Baker International for Housing Element Consultant Services for the 2021-2029 Housing Element Response to HCD Comments and Housing Element Adoption in the amount of $40,250.00 with a 10% contingency of $4,025.00; 2. Authorize the City Manager to Execute the Agreement subject to the City Attorney's approval as to form; and 3. Authorize the appropriation of the following funding sources: Local Early Action Planning (LEAP) Grant of $20,000.00 and General Fund of $20,250.00. 2030 VISION STATEMENT: This staff report supports Goal #1, Ensuring Fiscal Viability and Goal #3, Promote Economic Development by having an internally consistent General Plan. BACKGROUND/DISCUSSION: The State of California requires local governments to adequately plan to meet the housing needs of the community. The General Plan serves as the “blueprint” for how the city will grow and develop. The Housing Element is one of seven state mandated components of a General Plan. On September 27, 2016, the Grand Terrace City Council adopted the 2014-2021 (fifth cycle) reviewed and accepted by the State of California Housing and Community Development Department (HCD). On June 9, 2020, the City Council adopted a Resolution authorizing application submittal of the Local Early Action Plan (LEAP) Grant Program, through the Housing and Community Development in the amount of $65,000.00. On March 23, 2021, the City Council approved a Professional Services Agreement with J.H. Douglas and Associates in the amount of $68,950 for the preparation of the Housing Element (sixth cycle). The City Council directed staff to submit the Housing C.8 Packet Pg. 84 Element Draft to the HCD for review and on February 10, 2022, the City of Grand Terrace received comments from the Department of Housing and Community Development. The contract between the City of Grand Terrace and J.H. Douglas expired and was not extended due to unsupported revisions to the contract language. The worked performed by J.H. Douglas under the contract, totaled $42,090.00 which was accounted from the LEAP Grant funds. On April 2022, San Bernardino County Transportation Authority (SBCTA) granted assistance to the City of Grand Terrace through the Regional Early Action Planning Grant (REAP 1.0) and assigned Michael Baker International (“Consultant) to assist the City of Grand Terrace with the sixth cycle Housing Element Updates. The SBCTA Grant funding concluded in December 2022. Michael Baker International has been working with city staff in completing responses to HCD comments. The city wishes to continue working with Michael Baker International to complete HCD Comments, resubmit to the HCD for review, and obtain an adopted Housing Element. Michael Baker International has prepared a cost proposal to complete the revisions to the HCD and obtain an adopted Housing Element. Attached is the proposed Housing Element consultant services contract (Attachment 1), Michael Baker Proposal (Attachment 2), the California Department of Housing and Community Development (HCD) Comments Letter dated February 10, 2022 (Attachment 3), the Local Early Action Plan (LEAP) Grant approval for $65,000.00 (Attachment 4), and City Council Resolution 2020-18 (Attachment 5) authorizing City Staff to pursue the grant. FISCAL IMPACT: The cost proposal is $40,250.00, plus a $4,025.00 contingency; $20,000.00 of the Housing/Safety Element cost will be covered through the remaining fees approved through the Local Early Action Planning (LEAP) Grant account #52-400-250-000-000. The city will pay the remaining $20,250.00 from the Professional Services Account 10- 370-250-000-000 already allocated and approved in the Fiscal Year 2022-2023 Planning budget. ATTACHMENTS: • MBI Contract Agreement_Housing Element HCD Responses (DOCX) • MBI_Grand Terrace Housing Element (PDF) • HCD Draft Comment Letter_2.10.2022 (PDF) • Attachment 1_20-LEAP-15036 Executed (PDF) • Attachment 3_Resolution 2020-18 (PDF) C.8 Packet Pg. 85 APPROVALS: Haide Aguirre Completed 05/12/2023 10:04 PM City Attorney Completed 05/15/2023 4:41 PM Finance Completed 05/16/2023 8:50 AM City Manager Completed 05/17/2023 12:43 PM City Council Pending 05/23/2023 6:00 PM C.8 Packet Pg. 86 01247.0001/873696.1 4/13/2023 AGREEMENT FOR CONTRACT SERVICES By and Between CITY OF GRAND TERRACE and MICHAEL BAKER INTERNATIONAL C.8.a Packet Pg. 87 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -2- AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND MICHAEL BAKER INTERNATIONAL. This “AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND MICHAEL BAKER INTERNATIONAL” (herein “Agreement”) is made and entered into this 23th day of May 2023 by and between the City of Grand Terrace, a California municipal corporation (“City”) and Michel Baker International (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as “Party” and hereinafter collectively referred to as the “Parties.” RECITALS A. Consultant has been working with City staff in completing responses to the California Department of Housing and Community Development (“HCD”) comments for the City’s 6th Cycle Housing Element Update (“HEU”) under contract with the San Bernardino County Transportation Authority (SBCTA) Regional Early Action Planning grant (REAP 1.0). The REAP 1.0 funds were used county-wide to assist 24 agencies, including the City, with planning services related to the production of housing, and those grant funds have been fully expended. 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. The City wishes to continue working with Consultant to complete HCD Comments, resubmit to the HCD for review, and obtain an adopted substantially compliant Housing Element. Consultant, following submission of a proposal or bid for the performance of the additional 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 Formatted: Superscript C.8.a Packet Pg. 88 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -3- 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. 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. C.8.a Packet Pg. 89 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -4- 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. 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. C.8.a Packet Pg. 90 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -5- 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 Forty Thousand, Two Hundred and Fifty Dollars and No Cents ($40,250.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8. 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, C.8.a Packet Pg. 91 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -6- 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. 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) C.8.a Packet Pg. 92 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -7- 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: Tanya Bilezikjian, P.E., ENV SP, Office Executive, Vice President (Corporate Secretary) (Name) (Title) Peter Minegar, AICP, Office Executive, Vice President (Name) (Title) (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. C.8.a Packet Pg. 93 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -8- 4.3 Contract Officer. The Contract Officer shall be Konrad Bolowich, 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 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: C.8.a Packet Pg. 94 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -9- (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 $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 C.8.a Packet Pg. 95 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -10- 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: 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 C.8.a Packet Pg. 96 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -11- 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 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 C.8.a Packet Pg. 97 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -12- 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. 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. C.8.a Packet Pg. 98 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -13- 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 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 C.8.a Packet Pg. 99 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -14- 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 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. C.8.a Packet Pg. 100 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -15- 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 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. C.8.a Packet Pg. 101 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -16- 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 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 C.8.a Packet Pg. 102 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -17- 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. 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 C.8.a Packet Pg. 103 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -18- the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 9.5 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 9.6 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. 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 C.8.a Packet Pg. 104 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 -19- 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.8.a Packet Pg. 105 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 20 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: City of Grand Terrace, a municipal corporation _____________________________________ Konrad Bolowich, City Manager ATTEST: _____________________________________ Debra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP ____________________________________ Adrian R. Guerra, City Attorney CONSULTANT: By: ____________________________________ Name: Tanya Bilezikjian, P.E. ENV SP Title: Office Executive, Vice President By: ____________________________________ Name: Peter Minegar, AICP Title: Office Executive, Vice President Address: 3536 Concours Street, Suite 100 Ontario, CA 92764 ____________________________________ 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.8.a Packet Pg. 106 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2023 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.a Packet Pg. 107 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2023 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.a Packet Pg. 108 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 A-1 EXHIBIT “A” SCOPE OF SERVICES A. Michael Baker International (“Michael Baker” or “Consultant”) had been assisting the City of Grand Terrace with its Housing Element Update (HEU) under contract with the San Bernardino County Transportation Authority (SBCTA) Regional Early Action Planning grant (REAP 1.0). The REAP 1.0 funds were used county-wide to assist 24 agencies with planning services related to the production of housing, and those grant funds have been fully expended. The City wishes to establish a contract with Micheal Baker International in the amount of Forty Thousand, Two Hundred and Fifty Dollars and No Cents ($40,250.00) (the “Contract Sum”), to respond to comments by the state’s Housing and Community Development Department including the finalization of the City’s sites inventory and preparation of an analysis compliant with AB 686, Affirmatively Furthering Fair Housing. From the total contract amount, Twenty Thousand and No Cents ($20,000) will be allocated from the Local Early Action Planning grant (LEAP) Grant (20-LEAP-15036) funding toward its Housing Element. B. The Consultant will use the City’s current draft Housing Element and partner with City staff to address the comments provided by the Housing and Community Development Department in the letter dated February 12, 2022. The Consultant will submit the draft Housing Element to HCD for review and will lead facilitation and ongoing consultations with HCD to achieve compliance with applicable state guidelines. In addition, the Consultant will prepare the final Housing Element Update document with any final revisions resulting from HCD review, as budget permits, and will provide required findings to City Staff for City Council adoption. C. The foregoing is a brief summary and the full scope of services to be provided by consultant are included on the attached Proposal enclosed as Exhibit A-1 C.8.a Packet Pg. 109 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 A-1 EXHIBIT “A-1” Michael Baker International Proposal C.8.a Packet Pg. 110 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 A-1 C.8.a Packet Pg. 111 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 A-1 C.8.a Packet Pg. 112 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 A-1 C.8.a Packet Pg. 113 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 B EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) None. C.8.a Packet Pg. 114 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 C-1 EXHIBIT “C” SCHEDULE OF COMPENSATION I. Consultant shall perform the following Services at the budged amounts included on the cost estimate provided on Exhibit “C-1.” II. A retention of ten percent (10%) shall be held from each payment as a contract retention to be paid as part of the final payment upon satisfactory completion of services. III. Within the budgeted amounts for each Task, and with the approval of the Contract Officer, funds may be shifted from one Task subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Services are approved per Section 1.8. IV. 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. V. The total compensation for the Services shall not exceed Forty Thousand, Two Hundred and Fifty Dollars and No Cents ($40,250.00), as provided in Section 2.1 of this Agreement. VI. The Consultant’s billing rates for all personnel are attached as Exhibit C-1. C.8.a Packet Pg. 115 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 C-1 Exhibit C-1 C.8.a Packet Pg. 116 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 01247.0001/873696.1 4/13/2023 D-1 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Consultant shall commence work under this Agreement within 5 working days of this Agreement’s execution by the parties. II. The Consultant shall prepare a Project Schedule within the first two weeks of the execution of the agreement. The schedule shall outline completion dates for Task 1.1 though Task 1.4. III. Consultant shall perform all Services timely in accordance with the Project Schedule developed by Consultant and subject to the written approval of the Contract Officer. C.8.a Packet Pg. 117 At t a c h m e n t : M B I C o n t r a c t A g r e e m e n t _ H o u s i n g E l e m e n t H C D R e s p o n s e s ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g 3536 Concours Street, Suite 100, Ontario, California 91764 Office: 909.974.4900 April 10, 2023 Konrad Bolowich City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, California SUBJECT: Housing Element Update: Response to HCD Comments Mr. Bolowich, Michael Baker International (Michael Baker) had been assisting the City of Grand Terrace with its Housing Element Update (HEU) under contract with the San Bernardino County Transportation Authority (SBCTA) Regional Early Action Planning grant (REAP 1.0). The REAP 1.0 funds were used county-wide to assist 24 agencies with planning services related to the production of housing, and those grant funds have been fully expended. Michael Baker understands the City wishes to allocate $20,000 in Local Early Action Planning grant (LEAP) funding toward its Housing Element to respond to comments by the state’s Housing and Community Development Department including the finalization of the City’s sites inventory and preparation of an analysis compliant with AB 686, Affirmatively Furthering Fair Housing. On behalf of Michael Baker, we appreciate the opportunity to submit this proposal. Please do not hesitate to contact me at (909)974-4961 or via email at emily.elliott@mbakerintl.com if you have any questions or require further information. Respectfully submitted, Peter Minegar, AICP Vice President Office Executive Emily Elliott, AICP Associate Vice President Department Manager - Planning C.8.b Packet Pg. 118 At t a c h m e n t : M B I _ G r a n d T e r r a c e H o u s i n g E l e m e n t ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) k City of Grand Terrace, 6th Cycle Housing Element Update SCOPE OF WORK Our cost proposal is based on the tasks as described and the specific assumptions and limitations noted; however, we are happy to work with the City to refine and customize the scope of work according to your needs. Additional services and support for the tasks included in our scope can be provided upon request, at an additional cost. This scope of work is based on a time and materials budget not to exceed $40,250 which equates to roughly 275 staff hours. It is understood by Michael Baker that the City is contributing $20,000 in Local Early Action Planning (LEAP) grant funds for the activities conducted under Task 1 and the balance of the work program will be covered by the City of Grand Terrace. Task 1.0 – Revision & Submission of the Draft Housing Element Update Task 1.1 – Response to HCD Comments Using the City’s current draft Housing Element, our team, in partnership with City staff, will address the comments provided by the Housing and Community Development Department to the City. Michael Baker will assist the City in assessing the City’s land use and zoning maps and available sites capacity. Michael Baker assumes that the City will provide additional information regarding each parcel identified and a narrative detailing the methodology utilized for the Adequate Sites Analysis. Michael Baker will collaborate with the City to review those sites identified and the methodology for consistency with State law. Michael Baker also assumes that the City will provide site- level detail to complete all the fields required of HCD’s form for the adequate sites inventory. Michael Baker will guide the City on the level of specificity required to meet State law. Michael Baker will work with City staff to identify potential zoning strategies to address the need for additional housing unit capacity, if needed. The City will be an active participant and will take the lead in the development of programs and goals to satisfy State requirements. Michael Baker staff will aid the City in validating the identified programs and goals. We will provide the City with a response to comments matrix which documents each comment by HCD and a summary of the response and its location within the Housing Element. This task assumes 10 hours of Project Manager and 50 hours of Associate Planner time. Task 1.2 – AFFH Analysis Michael Baker will prepare an AFFH appendix that identifies strengths and weaknesses in fair housing practices and identifies the relationship between the fair housing findings and the Housing Element Sites Inventory. We will use data provided by SBCTA via the local jurisdiction data packet and the regional AFFH analysis and other sources (i.e. local knowledge, service provider records, San Bernardino County 2020 Analysis of Impediments / Consolidated Plan, etc.) to analyze the fair housing issues and their contributing factors in the City of Grand Terrace. Key elements will include: • Introduction – overview of AB 686 and a brief history of Grand Terrace summarizing existing demographic composition including race/ethnicity, age, housing tenure, familial status, etc. and compare it to the region. • Outreach – a summary of engagement conducted with and outcome of that engagement with fair housing service providers. • Assessment of Fair Housing – this section is the bulk of the AFFH analysis and covers: o Fair Housing Enforcement and Outreach Capacity C.8.b Packet Pg. 119 At t a c h m e n t : M B I _ G r a n d T e r r a c e H o u s i n g E l e m e n t ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) City of Grand Terrace, 6th Cycle Housing Element Update o Integration and Segregation Patterns and Trends Related to People with Protected Characteristics and Lower Incomes o Racially and Ethnically Concentrated Areas of Poverty o Disproportionate Housing Needs, Including Displacement o Summary of Fair Housing Issues, Including Local Knowledge • Site Inventory – Improved/Exacerbated Conditions o Segregation and Integration o Racially and Ethnically Concentrated Areas of Poverty and Affluence o Disparities in Access to Opportunity o Disproportionate Housing Needs, Including Displacement o Isolation of the RHNA • Identification and Prioritization of Contributing Factors – this section identifies Fair Housing Issues and Contributing Factors, prioritizes the contributing factors and address their influence on the Goals and Actions • Goals and Actions – this section identifies specific goals and actions that address the contributing factors and provides a timeline for each contributing factor. Michael Baker will prepare and administrative draft of the AFFH appendix for City review and comment. Michael Baker will then prepare a clean public review draft incorporating City comments for submission to HCD (Task 1.4). This task assumes 10 hours of Project Manager and 100 hours of Associate Planner time. Task 1.3 – Administrative Draft/ Public Review Draft Housing Element We will provide an administrative and public review draft of the Housing Element. Michael Baker assumes the City will handle public review distribution. The City will review public comments and provide them in a consolidated format for Michael Baker to review and incorporate any necessary revisions. Michael Baker assumes comments will be relatively minor in nature. Our team will submit the draft Housing Element to HCD for review and will lead facilitation and ongoing consultations with HCD to achieve compliance with applicable state guidelines. This task assumes 12 hours of Project Manager, 40 hours of Associate Planner, and 16 hours of Technical Writer time. Task 1.4 – Final Housing Element – Adoption Our team will prepare the final Housing Element Update document with any final revisions resulting from HCD review, as budget permits. We will provide required findings to City staff for adoption of the Housing Element by the City Council. This task assumes 8 hours of Project Manager, 20 hours of Associate Planner, and 8 hours of Technical Writer time. Task 1 Deliverables: C.8.b Packet Pg. 120 At t a c h m e n t : M B I _ G r a n d T e r r a c e H o u s i n g E l e m e n t ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) City of Grand Terrace, 6th Cycle Housing Element Update • Administrative Draft Housing Element Update, inclusive of AFFH (Microsoft Word, PDF) • Public Review Draft Housing Element (Microsoft Word, PDF) • Draft Housing Element Update for HCD Review (Microsoft Word, PDF, hard copy for HCD) • Final Housing Element Update and Findings (PDF, hard copy for HCD) Assumptions: Michael Baker assumes the following information will be provided by the City. We acknowledge that much of this material has been previously provided. • Recent outreach results • Relevant City Council and Planning Commission priorities • Completed Housing Element Annual Progress Reports • Housing application and permit records 2013–Present (Ongoing) • Pipeline housing projects not expecting to issue permit until after June 30, 2021 • Recent housing projects – examples of recycling existing uses and densities achieved • Housing-related zoning amendments • Updated parcel-level data with complete zoning information • Local data on average fees for single family and multifamily development • Information on average permit timelines for single family and multifamily development • Information on local amendments to the building code • Detailed list of affordable housing that is at-risk of conversion from affordable to market-rate • Detailed list of all available resources for those with special needs including housing for seniors, those experiencing homelessness, farmworkers, and those with disabilities C.8.b Packet Pg. 121 At t a c h m e n t : M B I _ G r a n d T e r r a c e H o u s i n g E l e m e n t ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) COST PROPOSAL All services will be provided on an as-needed time and materials basis. Task Project Manager Associate Planner Technical Writer Fee $235 $135 $100 Task 1: HCD Comments / Housing Element Revisions Task 1.1 Response to HCD Comments 10 50 0 $ 9,100 Task 1.2 AFFH Analysis 10 100 0 $ 15,850 Task 1.3 Administrative & Public Review Draft Housing Element 12 40 16 $ 9,820 Task 1.4 Final Housing Element 8 20 8 $ 5,380 Subtotal $ 40,150 Other Direct Costs (Mileage, Reproduction)$100 Total $ 40,250 C.8.b Packet Pg. 122 At t a c h m e n t : M B I _ G r a n d T e r r a c e H o u s i n g E l e m e n t ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) STATE OF CALIFORNIA -BUSINESS CONSUMER SERVICES AND HOUSING AGENCY DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. Fl Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 I FAX (916) 263-7453 www.hcd.ca.gov February 10, 2022 Konrad Bolowich, City Manager City of Grand Terrace 22795 Barton Road Grand Terrace, CA 92313 Dear Konrad Bolowich: RE: City of Grand Terrace's Sth Cycle (2021-2029) Draft Housing Element Thank you for submitting the City of Grand Terrace's (City) draft housing element received for review on December 15, 2021. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. The draft element addresses many statutory requirements; however, revisions will be necessary to comply with State Housing Element Law (Article 10.6 of the Gov. Code). The enclosed Appendix describes the revisions needed to comply with State Housing Element Law. As a reminder, the City's 6th cycle housing element was due October 15, 2021. As of today, the City has not completed the housing element process for the 6th cycle. The City's 5th cycle housing element no longer satisfies statutory requirements. HCD encourages the City to revise the element as described above, adopt, and submit to HCD to regain housing element compliance. For you·r information, pursuant to Assembly Bill 1398 (Chapter 358, Statutes of 2021 ), if a local government fails to adopt a compliant housing element within 120 days of the statutory deadline (October 15, 2021 ), then any rezoning to accommodate the regional housing needs allocation (RHNA), including for lower-income households, shall be completed no later than one year from the statutory deadline. Otherwise, the local government's housing element will no longer comply with State Housing Element Law, and HCD may revoke its finding of substantial compliance pursuant to Government Code section 65585, subdivision (i). Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City should continue to engage the community, including organizations that C.8.c Packet Pg. 123 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) Konrad Bolowich, City Manager Page2 represent lower-income and special needs households, by making information regularly available and considering and incorporating comments where appropriate. Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD's Affordable Housing and Sustainable Communities programs; and HCD's Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. For your information, some general plan element updates are triggered by housing element adoption. HCD reminds the City to consider timing provisions and welcomes the opportunity to provide assistance. For information, please see the Technical Advisories issued by the Governor's Office of Planning and Research at: http://opr.ca.gov/docs/OPR Appendix C final.pdf and http://opr.ca.gov/docs/Final 6.26.15.pdf. HCD appreciates the City's dedication and cooperation in the housing element update. We are committed to assisting the City in addressing all statutory requirements of State Housing Element Law. If you have any questions, please contact Gerlinde Bernd, of our staff, at Gerlinde.Bernd@hcd.ca.gov. Sincerely, Paul McDougall Senior Program Manager Enclosure C.8.c Packet Pg. 124 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) APPENDIX CITY OF GRAND TERRACE The following changes are necessary to bring the City's housing element into compliance with Article 10.6 of the Government Code. Accompanying each recommended change, we cite the supporting section of the Government Code. Housing element technical assistance information is available on HCD's website at http://www.hcd.ca.gov/community-development/housing-element/housing-element- memos.shtml. Among other resources, the housing element section contains HCD's latest technical assistance tool, Building Blocks for Effective Housing Elements (Building Blocks), available at http://www.hcd.ca.gov/community-development/building-blocks/index.shtml and includes the Government Code addressing State Housing Element Law and other resources. A. Review and Revision Review the previous element to evaluate the appropriateness, effectiveness, and progress in implementation, and reflect the results of this review in the revised element. (Gov. Code, § 65588 (a) and (b).) As part of the review of programs in the past cycle (Appendix 8-A), the element lists programs and provides brief information on progress in implementation, but it largely does not evaluate the effectiveness of programs toward program goals. This is particularly important since many programs do not appear to be revised and reflect the review of the prior programs. Examples from Appendix 8-A include Programs 5 (Facilitate Development on Housing Authority Site), 6 (Section 8 Rental Assistance), 7 (Homebuyer Fund), 8 (Multifamily Residential Rental Bond), 9 (Downpayment Assistance), 11 (Assist in Development of Affordable Housing), 14 (Weatherization and Energy Efficiency), 16 (Home Improvements) and 17 (Home Safety Repair Grants). The element should evaluate the effectiveness of these programs toward housing goals and make appropriate revisions to programs in the current housing element. In addition, the element must provide an evaluation of the cumulative effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations (e.g., elderly, persons with disabilities, large households, female headed households, farmworkers and persons experiencing homelessness). B. Housing Needs! Resources, and Constraints 1 . Affirmatively further[ing] fair housing in accordance with Chapter 15 (commencing with Section 8899.50) of Division 1 of Title 2 ... shall include an assessment of fair housing in the jurisdiction. (Gov. Code, § 65583, subd. (c)(10)(A).) The element generally does not address this requirement. The element, among other things, must include outreach related to affirmatively furthering fair housing (AFFH), an assessment of fair housing, analysis of the sites inventory and AFFH, identification and City of Grand Terrace's 5th Cycle Draft Housing Element February 10, 2022 Page 1 C.8.c Packet Pg. 125 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) prioritization of contributing factors to fair housing issues and goals and actions sufficient to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity. For further guidance, please visit HCD's AFFH in California webpage at https://www.hcd.ca.gov/community-development/affh/index.shtml. 2. Include an analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected needs for all income levels, including extremely low-income households. (Gov. Code, § 65583, subd. (a)(1).) Extremely Low-income (ELI ) Households: The element identifies the projected need for ELI households, but it should quantify and analyze the housing needs of ELI households to understand the housing needs and formulate an appropriate programmatic response. This is particularly important given the unique and disproportionate needs of ELI households. For example, the element should analyze tenure, cost burden and other household characteristics then examine trends and the availability of resources, including effectiveness of past actions, to determine the magnitude of gaps in housing needs. In turn, this analysis should guide the formulation of responsive policies and programs. 3. Include an analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (Gov. Code, § 65583, subd. (a)(2).) While the element provides general data, additional information is needed regarding the overpayment, particularly data regarding lower-income household by tenure (i.e., owner and renter). Additionally, the element should include discussion of rents based on current market conditions. 4. An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality's housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Parcel Listing: In addition to the other factors listed for identified sites (e.g., parcel number, size), the inventory should list general plan designation and sufficiently describe existing uses of nonvacant sites to facilitate an analysis of the potential for redevelopment in the planning period. Realistic Capacity: The element generally does not address this requirement. The element must include a methodology for how realistic capacity was determined and provide support for these assumptions. For example, the element should demonstrate specific trends, factors, and other evidence that led to assumptions for residential capacity calculations. The estimate of the number of units for each site must be adjusted as necessary, based on the land use controls and site improvements, typical densities of existing or approved residential developments at a similar affordability level in that jurisdiction, and on the current or planned availability and accessibility of City of Grand Terrace's 5th Cycle Draft Housing Element February 10, 2022 Page2 C.8.c Packet Pg. 126 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) sufficient water, sewer, and dry utilities. If necessary, the element also should analyze the likelihood that the identified units will be developed as noted in the inventory in .zones that allow 100 percent nonresidential uses (e.g., housing overlay). This analysis should consider the likelihood of 100 percent nonr~sidential development, performance standards, and development trends supporting residential development Suitability of Nonvacant Sites: While the element identifies nonvacant sites to accommodate the regional housing need for lower-income households, it generally does not provide an analysis of the potential for additional development on identified nonvacant sites. The analysis must consider factors including the extent to which existing uses may constitute an impediment to additional residential development, the City's past experience with converting existing uses to higher density residential development, the current market demand for the existing use, an analysis of any existing leases or other contracts that would perpetuate the existing use or prevent redevelopment of the site for additional residential development, development trends, market conditions, and regulatory or other incentives or standards to encourage additional residential development on these sites. In addition, if the housing element relies upon nonvacant sites to accommodate more than 50 percent of the regional housing needs allocation (RHNA) for lower-income households, it must demonstrate existing uses are not an impediment to additional residential development and will likely discontinue in the planning period. (Gov. Code, § 65583.2, subd. (g)(2).) Absent findings (e.g., adoption resolution) based on substantial evidence, the existing uses will be presumed to impede additional residential development and will not be utilized toward demonstrating adequate sites to accommodate the RHNA. Finally, if the element utilizes sites with existing residential uses, absent a replacement housing policy, these sites are not adequate sites to accommodate lower-income households. The replacement housing policy has the same requirements as set forth in Government Code section 65915, subdivision (c) (3). Large Sites: Sites larger than ten acres in size are deemed inadequate to accommodate housing for lower-income households unless it is demonstrated sites are suitable to accommodate housing for lower-income households. The analysis should demonstrate that sites of equivalent size and affordability were successfully developed during the prior planning period or provide other evidence such as analysis and programs to demonstrate the suitability of these sites. Based on a complete analysis, the City should consider adding or revising programs to include incentives for facilitating development on large sites. Environmental Conditions: The element generally describes environmental conditions and impacts on some identified sites. However, the element should clarify how these conditions relate to candidate sites for rezoning (Table 8-B.3) and should discuss any other conditions that impact or preclude the development of identified sites (e.g., hazardous materials, easement, other property conditions, parcel shapes). City of Grand Terrace's 6th Cycle Draft Housing Element February 10, 2022 Page 3 C.8.c Packet Pg. 127 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) Sites Identified in Prior Planning Periods: Sites identified in prior planning periods shall not be deemed adequate to accommodate the housing needs for lower-income households unless a program rezones sites to permit housing development by right pursuant to statutory requirements. The element must clarify if sites used to accommodate the housing need for lower-income households were previously identified in prior planning periods and include programs as appropriate. Infrastructure: While the element generally describes water and sewer infrastructure, it must clarify sufficient existing or planned capacity to accommodate the RHNA or include programs if necessary. In addition, water and sewer service providers must establish specific procedures to grant priority water and sewer service to developments with units affordable to lower- income households. (Gov. Code,§ 65589.7.) Local governments are required to immediately deliver the housing element to water and sewer service providers. The element should discuss compliance with these requirements and if necessary, add or modify programs to establish a written procedure by a date early in the planning period. Accessory Dwelling Units (ADU): ADUs may be counted toward the RHNA based on past trends and other factors. The City projects 5 ADUs per year over the planning period. This projection was based on recent approvals in 2021. However, an analysis should be based on permitted units but may utilize approvals as an indicator of ADU potential. Also, past performance does not appear to support 5 ADUs per year and the element does not include programs to provide incentives for ADU development. For example, HCD records show only 1 ADU was permitted in 2019. The element should be revised to rescale ADU assumption based on past permitted trends or include additional analysis and programs to support ADU assumptions. Electronic Sites Inventory: For your information, pursuant to Government Code section 65583.3, the City must submit an electronic sites inventory with its adopted housing element. The City must utilize standards, forms, and definitions adopted by HCD. Please see HCD's housing element webpage at https://www.hcd.ca.gov/community- development/housinq-element/index.shtml#element for a copy of the form and instructions. The City can reach out to HCD at sitesinventory@hcd.ca.gov for technical assistance. Zoning for a Variety of Housing Types: • Emergency Shelters: The element indicates emergency shelters are permitted by right in the M2 zone; however; it must clarify emergency shelters are permitted without discretionary action and analyze capacity. An analysis of capacity should address total acreage, typical parcel sizes, and any reuse or other opportunities that could accommodateat least one emergency shelter and sufficient to accommodate the need for emergency shelters. In addition, the element should address proximity to transportation and services and presence of any conditions unfit for human habitation. • Employee Housing: The element must demonstrate zoning is explicitly compliant with the Employee Housing Act (Health and Safety Code, § 17000 et seq.) and City of Grand Terrace's 5th Cycle Draft Housing Elememt February 10, 2022 Page4 C.8.c Packet Pg. 128 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) include programs if necessary. For example, Section 17021.5 requires employee housing for six or fewer employees to be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. Section 17021.6 requires employee housing consisting of no more than 12 units or 36 beds to be permitted in the same manner as other agricultural uses in the same zone. 5. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision (c), and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures ... (Gov. Code, § 65583, subd. (a)(5).) Land-Use Controls: The element must identify and analyze all relevant land use controls impacts as potential constraints on a variety of housing types. The analysis should analyze land use controls independently and cumulatively with other land use controls. The analysis should specifically address requirements related to parking, heights, and living area. The analysis should address any impacts on cost, supply (number of units), housing choice, affordability, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints. Housing for Persons with Disabilities: The element generally describes that community care facilities for seven or more persons are excluded from several residential zones and subject to a conditional use permit (CUP); however, it should analyze the CUP and lack of residential zones as constraints on housing for persons with disabilities. Based on the outcomes of this analysis, the element must add or modify programs to address constraints and permit group homes for seven or more persons with objectivity and approval certainty. SB 35 Streamlined Ministerial Approval Process: The element must clarify whether there are written procedures for the SB 35 (Chapter 366, Statutes of 2017) Streamlined Ministerial Approval Process and add a program to address these requirements. Zoning, Development Standards: The element must clarify its compliance with new transparency requirements for posting all zoning, development standards for each parcel on the jurisdiction's website. Other Local Ordinances: The element must analyze any locally adopted ordinances that directly impacts the cost and supply or residential development (e.g., inclusionary requirements, short term rentals, growth controls). 6. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, the cost of construction, the requests to develop housing at densities below those anticipated in the analysis required by subdivision (c) of Government Code section 65583. 2, and the length of time between receiving approval City of Grand Terrace's 6th Cycle Draft Housing Element February 10, 2022 Pages C.8.c Packet Pg. 129 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) for a housing development and submittal of an application for building permits for that housing development that hinder the construction of a locality's share of the regional housing need in accordance with Government Code section 65584. (Gov. Code, § 65583, subd. (a)(6).) Approval Time and Requests for Lesser Densities: The element did not address these requirements. The element must address requests to develop housing at densities below those anticipated in the sites inventory and the length of time between receiving approval for housing development and submittal of application for building permits. The analysis must address any hinderances on housing development and programs should be added as appropriate. 7. Analyze any special housing needs such as elderly; persons with disabilities, including a developmental disability; large families; farmworkers; families with female heads of households; and families and persons in need of emergency shelter. (Gov. Code, § 65583, subd. (a)(7).) While the element includes some minimal qualification of special housing needs, it generally does not analyze those needs. An analysis should address (1) the characteristics of housing needs such as household income, tenure, appropriate housing types and zoning, (2) demographic trends, (3) comparisons in needs relative to other households, (4) available resources and strategies and (4) the magnitude of the gap in addressing housing needs. The analysis should also consult local officials, special needs service providers, or social and health service providers or other relevant organization. For additional information and a sample analysis, see the Building Blocks at http://www.hcd.ca.govlcommunitv-development/building-blocks/housinq-needs/large- families-female-head-household.shtml. In addition, the element indicates a minimal need for farmworkers according to the American Community Survey. However, farmworkers from the broader area and those employed seasonally may have housing needs, including within the City's boundaries. As a result, the element should at least acknowledge the housing needs of permanent and seasonal farmworkers at a county-level (e.g., using USDA county-level farmworker data) and include programs as appropriate. C. Housing Programs 1. Include a program which sets forth a schedule of actions during the planning period, each with a timeline for implementation, which may recognize that certain programs are ongoing, such that there will be beneficial impacts of the programs within the planning period, that the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, the provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions. (Gov. Code,§ 65583, subd. (c).) City of Grand Terrace's 5th Cycle Draft Housing Element February 10, 2022 Page 6 C.8.c Packet Pg. 130 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) To have a beneficial impact in the planning period and address the goals of the housing element, programs must be revised with specific commitment and discrete timelines (e.g., annually or by 2023). Programs to be revised with discrete timelines include Programs 2 (Facilitate Development of Affordable and Special Needs Housing), 3 (Housing Authority Property), 6 (Multifamily Housing Bonds) and 11 (Home Improvement). In addition, programs should be revised based on a complete evaluation of past programs as noted in Finding A. 2. Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city's or county's share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory completed pursuant to paragraph (3) of subdivision (a) without rezoning, and to comply with the requirements of Government Code section 65584. 09. Sites shall be identified as needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory-built housing, mobilehomes, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. (Gov. Code, § 65583, subd. (c)(1 ).) As noted in Finding B4, the element does not include a complete site analysis. Based on the results of a complete sites inventory and analysis, the City may need to add or revise programs to address a shortfall of sites or zoning available to encourage a variety of housing types. In addition, the element should be revised as follows: • Program 1 (Adequate Sites): This Program should be revised to identify the minimum number of acres to be rezoned, allowable densities, permit residential by right for developments where 20 percent of the units are affordable to lower income households and should consider timing by October of 2022 as noted in the cover letter. • Program 3 (Housing Authority Property): Particularly since this program was not implemented in the prior planning period, this Program should include a specific schedule of action to facilitate development in the planning period such as outreach with developers, requests for proposals, applications for funding and when permit processing will be expedited. 3. The housing element shall contain programs which assist in the development of adequate housing to meet the needs of extremely low-, very low-, low-and moderate- income households. (Gov. Code, § 65583, subd. (c)(2).) The element must include a program(s) with specific actions and timelines to assist in the development of housing for extremely low-income and all special needs households including seniors, homeless, farmworkers, female-headed households and persons with disabilities including developmental. While the element includes Program 2 (Facilitate Development of Affordable and Special Needs Housing), the Program should (1) explicitly address all special needs households, (2) address extremely low-income households, (3) specifically commit to proactive outreach with developers on a discrete City of Grand Terrace's 5th Cycle Draft Housing Element February 10, 2022 Page 7 C.8.c Packet Pg. 131 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) timeline (e.g., annually) and (4) make revisions based on a complete evaluate as noted in Finding A. 4. Address and, where appropriate and legally possible, remove governmental and nongovernmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, and provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (Gov. Code, § 65583, subd. (c)(3).) As noted in Findings BS and 86, the element requires a complete analysis of potential governmental and nongovernmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs and address and remove or mitigate any identified constraints. 5. Promote and affirmatively further fair housing opportunities and promote housing throughout the community or communities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability, and other characteristics protected by the California Fair Employment and Housing Act (Part 2. 8 (commencing with Section 12900) of Division 3 of Title 2), Section 65008, and any other state and federal fair housing and planning Jaw. (Gov. Code, § 65583, subd. (c)(5).) As noted in Finding 81, the element must include a complete assessment of fair housing. Based on the outcomes of that analysis, the element must add or modify programs. 6. Develop a plan that incentivizes and promotes the creation of accessory dwelling units that can be offered at affordable rent, as defined in Section 50053 of the Health and Safety Code, for very low, low-, or moderate-income households. For purposes of this paragraph, "accessory dwelling units" has the same meaning as "accessory dwelling unit" as defined in paragraph (4) of subdivision (i) of Section 65852.2. (Gov. Code, § 65583, subd. (c)(l).) The element contains Program 8 (Reduce Constraints to Housing) to adopt an ADU ordinance. However, the element must also include a program that incentivizes or promotes ADU development for very low-, low-, and moderate-income households. This can take the form of flexible zoning requirements, development standards, or processing and fee incentives that facilitate the creation of ADUs, such as reduced parking requirements, fee waivers and more. Additionally, this program should commit to monitoring ADU production and affordability, and to implementing additional actions if not meeting target numbers for production and affordability levels anticipated in the housing element. Additional actions, if necessary, should be taken in a timely manner (e.g., within six months). City of Grand Terrace's 6th Cycle Draft Housing Element February 10, 2022 Page 8 C.8.c Packet Pg. 132 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) D. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the element shall describe this effort. (Gov. Code, § 65583, subd. (c)(8).) While the element includes a general summary of the public participation process, the element should also demonstrate diligent efforts were made to involve all economic segments of the community in the development of the housing element. The element could describe the efforts to circulate the housing element among low-and moderate-income households and organizations that represent them and to involve such groups and persons in the element throughout the process. In addition, the element should also summarize the public comments and describe how they were considered and incorporated into the element. For additional information, see the Building Blocks at http://www.hcd.ca.gov/community-developmenUbuilding-blocks/getting-started/public- participation.shtml. E. Consistency with General Plan The Housing Element shall describe the means by which consistency will be achieved with other general plan elements and community goals. (Gov. Code, § 65583, subd. (c)(7).) The element generally states housing is linked to other elements of the general plan, but it should discuss how internal consistency was achieved as part of the housing element update. For additional information and a sample program, see the Building Blocks at http://www.hcd.ca.gov/community-developmenUbuilding-blocks/other- reg u irements/analysis-consistency-general-plan .shtml. City of Grand Terrace's 5th Cycle Draft Housing Element February 10, 2022 Page 9 C.8.c Packet Pg. 133 At t a c h m e n t : H C D D r a f t C o m m e n t L e t t e r _ 2 . 1 0 . 2 0 2 2 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) 1/11/2021 C.8.d Packet Pg. 134 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 135 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 136 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 137 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 138 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 139 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 140 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 141 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 142 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 143 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 144 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 145 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 146 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 147 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 148 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 149 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) C.8.d Packet Pg. 150 At t a c h m e n t : A t t a c h m e n t 1 _ 2 0 - L E A P - 1 5 0 3 6 E x e c u t e d ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) RESOLUTION NO. 2020-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE AUTHORIZING APPLICATION FOR, AND RECEIPT OF, LOCAL GOVERNMENT PLANNING SUPPORT GRANT PROGRAM FUNDS FROM THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT WHEREAS, pursuant to Health and Safety Code 50515 et seq., the Department of Housing and Community Development (Department) is authorized to issue a Notice of Funding Availability (NOFA) as part of the Local Government Planning Support Grants Program (hereinafter referred to by the Department as the Local Early Action Planning Grants program or LEAP); and WHEREAS, the City Council of the City of Grand Terrace desires to submit a LEAP grant application package ("Application"), on the forms provided by the Department, for approval of grant funding for projects that assist in the preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing need assessment; and WHEREAS, the Department has issued a NOFA and Application on January 27, 2020 in the amount of$119,040,000 for assistance to all California Jurisdictions. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE RESOLVES AS FOLLOWS: SECTION 1. The City Manager is hereby authorized and directed to apply for and submit to the Department the Application package on behalf of the City of Grand Terrace Applicant"). SECTION 2. In connection with the LEAP grant, if the Application is approved by the Department, the City Manager of the City of Grand Terrace is authorized to submit the Application, enter into, execute, and deliver on behalf of the Applicant, a State of California Agreement (Standard Agreement) for the amount of$65,000, and any and all other documents required or deemed necessary or appropriate to evidence and secure the LEAP grant, the Applicant's obligations related thereto, and all amendments thereto. SECTION 3. The Applicant shall be subject to the terms and conditions as specified in the NOFA, and the Standard Agreement provided by the Department after approval. The Application and any and all accompanying documents are incorporated in full as part of the Standard Agreement.Any and all activities funded, information provided, and timelines represented in the Application will be enforceable through the fully executed Standard Agreement. Pursuant to the NOFA and in conjunction with the terms of the CC Reso No. 2020-18 Page 1 of 2 June 9, 2020 he environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines,California Code of Regulations, Title 14, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.SECTION 12. This resolution shall take effect immediately upon adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.CC Reso No. 2020-17 Page 2 of 3 June 9, 2020 C.8.e Packet Pg. 151 At t a c h m e n t : A t t a c h m e n t 3 _ R e s o l u t i o n 2 0 2 0 - 1 8 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) Standard Agreement, the Applicant hereby agrees to use the funds for eligible uses and allowable expenditures in the manner presented and specifically identified in the approved Application. SECTION 4. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 9th day of June 2020. Dar Mc ayor ATTEST: - ACO.A.L,0 ebra L. Thomas City Clerk APPROVED AS TO FORM: Adrian Guerra City Attorney CC Reso No. 2020-18 Page 2 of 2 June 9, 2020 ABSENT: None.ABSTAIN: None.Executed this 10th day of June 2020, at Grand Terrace, California.Deb aL. Thomas City Clerk C.8.e Packet Pg. 152 At t a c h m e n t : A t t a c h m e n t 3 _ R e s o l u t i o n 2 0 2 0 - 1 8 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO CITY OF GRAND TERRACE I Debra L. Thomas, City Clerk of the CITY OF GRAND TERRACE, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 2020-18 was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, at the regular meeting of said City Council held on the 9th day of June 2020, and that the same was passed and adopted by the following vote: AYES: Council Members Allen, Hussey, Robles; Mayor Pro Tem Wilson; Mayor McNaboe NOES: None. ABSENT: None. ABSTAIN: None. Executed this 10th day of June 2020, at Grand Terrace, California. Debra L. Thomas City Clerk C.8.e Packet Pg. 153 At t a c h m e n t : A t t a c h m e n t 3 _ R e s o l u t i o n 2 0 2 0 - 1 8 ( P r o f e s s i o n a l S e r v i c e s A g r e e m e n t f o r t h e 2 0 2 1 - 2 0 2 9 H o u s i n g E l e m e n t ) AGENDA REPORT MEETING DATE: May 23, 2023 Council Item TITLE: Adoption of the FY2023-24 Proposed Budget PRESENTED BY: Christine Clayton, Finance Director RECOMMENDATION: 1. Adopt a RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2023-2024. 2030 VISION STATEMENT: 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 prior years, staff has submitted, for City Council’s review and approval, the proposed budget for the upcoming year. Once approved, this document has served as the City’s financial plan for the following year and acts as the basis for budgetary control. For Fiscal Year (FY) 2022-23, City Council approved a one-year budget, with any adjustments submitted for the FY2022-23 budget, during the current year. An annual budget allows the city to: 1. Improve financial management, 2. Greater flexibility to respond to our confusing and uncertain environment, 3. Greater ability to shift resources because of service level demands; and 4. Quickly Reallocation and redeploy resources. DISCUSSION: The major revenues in the City of Grand Terrace increased during COVID-19, primarily because of consumer demand at food and drug stores. In addition, demand for building and construction supplies remained brisk. Retail sales, along with license fees and collection of franchise fees, are projected to lead to a positive outcome for FY2022-23. F.9 Packet Pg. 154 GENERAL FUND FISCAL YEAR 2022-23 Table 1 reflects the FY2022-23 Year-End Revenue and Expenditure projections. Table 1 City of Grand Terrace FY 2022-23 General Fund Revenue and Expenditure Report 2022-23 2022-23 Adj. Budget 06-22-22 Projections 04-10-2023 Property Tax $4,481,295 $4,466,455 Proceeds from Sale of Property $0 $1,200,000 Franchise Fees $635,000 $677,459 Licenses, Fees & Permits $665,400 $840,085 Sales Tax $1,125,400 $1,102,379 Intergovernmental Revenue/Grants $60,500 $61,206 Charges for Services $178,000 $180,712 Fines & Forfeitures $66,300 $33,694 Miscellaneous $26,710 $14,580 Use of Money & Property $34,660 $50,175 Wastewater Receipts $318,349 $318,349 Transfers In $50,000 $50,000 Total Revenues $7,641,614 $8,995,094 Salaries $1,482,899 $1,397,977 Benefits $1,356,069 $1,309,962 Materials & Supplies $323,605 $348,914 Professional/Cont. Services $4,198,568 $4,384,297 Equipment $0 $0 Lease of Facility/Equipment $12,000 $7,432 Utilities $229,448 $235,212 Overhead Cost Allocation ($81,950) ($81,950) Capital Projects $0 $0 Debt Service $0 $0 Transfers Out $110,700 $110,700 Total Expenditures $7,631,339 $7,712,544 Revenues $7,641,614 $8,995,094 F.9 Packet Pg. 155 City of Grand Terrace FY 2022-23 General Fund Revenue and Expenditure Report 2022-23 2022-23 Adj. Budget 06-22-22 Projections 04-10-2023 Expenditures ($7,631,339) ($7,712,544) Projected Surplus $10,275 $1,282,550 FISCAL YEAR 2023-24 The City continues to receive optimistic sales tax projections that build on the success from prior and current year sales tax growth. Staff continues to meet with our property and sales tax consultants (HdL) to monitor quarterly sales tax trends. Revenues: 1. Sales Tax projections: HdL projected higher sales tax revenues for FY2023-24 in the amount of $1,234,000, 2. Property Tax projections: Were provided by HdL with funds being received in the amount of $2,994,700; and 3. Property Tax VLF swap projections were provided by HdL in the amount of $1,645,763. Expenditures: 1. For the Sheriff’s Department the proposed contract amount is $2,471,165 which is a 4.71% increase from fiscal year 2022-23 which equates to $111,125. 2. General Fund Maintenance of Effort: The City receives Measure “I” funds (1/2 cent sales tax collected throughout San Bernardino County for transportation improvements - $300k) and Road Maintenance and Rehabilitation Program (RMRP) funds ($300k) into the RMRA Fund for use on local street and road systems. The term “Maintenance of Effort” (MOE) generally refers to a requirement placed upon state and federally funded grant programs that requires local cities and counties to maintain general fund spending for streets and roads either through a certain percentage or formula, which may include the local agency’s history of past spending on street rehabilitation and/or maintenance. F.9 Packet Pg. 156 Table 2 summarizes the FY2023-24 Proposed Budget: City of Grand Terrace FY 2023-24 Proposed General Fund Revenue and Expenditure Report 2023-24 Proposed 05-09-2023 Revenues Property Tax $4,640,463 Franchise Fees $650,000 Licenses, Fees & Permits $654,870 Sales Tax $1,234,000 Intergovernmental Revenue/Grants $58,500 Charges for Services $161,500 Fines & Forfeitures $37,800 Miscellaneous $26,710 Use of Money & Property $34,660 Wastewater Receipts $318,349 Transfers In $50,000 Total Revenues $7,866,852 Expenditures by Department Salaries $1,473,431 Benefits $1,237,062 Materials & Supplies $418,545 Professional/Contractual Services $4,398,580 Lease of Facility/Equipment $11,500 Utilities $242,300 Overhead Cost Allocation ($81,950) Transfers Out $110,500 Total Expenditures $7,809,968 Revenues $7,866,852 Expenditures ($7,809,968) Fund Balance $56,884 F.9 Packet Pg. 157 There is no liquidation of assets that will impact the Fund Balance. The projected revenues are greater than the projected expenditures. This is consistent with the City Council’s policy to not fund ongoing expenses with one-time revenue. Revenues, $7,866,852 Expenditure s, $7,809,968 Proposed Surplus, $56,884 Revenue, Expenditure and Fund Balance FY 2023-24 Revenues Expenditures Proposed Surplus CITY-WIDE PROPOSED FY2023-24 BUDGET The total Proposed Budget for FY2023-24 is $12,325,029 in revenues and $12,138,877 in expenditures. The City’s Proposed Budget, which is presented for City Council’s review and consideration, • Supports the City’s mission, vision, core values and goals by preserving and protecting the community and its exceptional quality of life; and PROPOSED BUDGET BY FUND FY 2023-24 The next two tables show the Citywide Proposed Revenues and Expenditure budgets by fund: F.9 Packet Pg. 158 Table 3 (Proposed Revenues) City of Grand Terrace FY 2023-24 Proposed Revenue Summary by Fund 2021-22 2021-22 2022-23 2022-23 2023-24 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget GENERAL FUNDS 10 GENERAL FUND $8,654,269 $8,326,772 $7,641,614 8,995,094 $7,866,852 61 COMMUNITY BENEFITS FUND $20,000 $20,101 $20,000 $20,000 $20,000 62 LIGHT UP GRAND TERRACE $10,000 $13,350 $10,000 $14,950 $20,000 63 GT ILLEGAL FIREWORKS ENFORCEMENT $3,500 ($2,500) $2,000 $0 $2,000 64 PUBLIC SAFETY FUND $0 $43 $0 $106 $0 69 COMMUNITY DAY FUND $10,000 $4,365 $10,000 $0 $10,000 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 $0 $0 $0 $0 70 EQUIP REPLACEMENT RESERVE FUND $0 $4 $0 $0 $0 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $88,000 ($5,220) $88,000 $6,507 $88,000 12 STORM DRAIN FUND $800 $251 $800 $312 $800 13 PARK FUND $800 ($831) $800 $1,014 $800 19 FACILITIES FUND $20,000 ($418) $20,600 $783 $600 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS) $160,000 $161,420 $165,000 $165,306 $165,000 15 AIR QUALITY IMPROVEMENT FUND $15,500 $14,447 $16,400 $16,259 $16,400 16 GAS TAX FUND $725,200 $439,293 $437,700 $377,000 $438,400 17 TRAFFIC SAFETY FUND $4,000 $7,347 $4,500 $4,028 $4,500 20 MEASURE "I" FUND $248,600 $333,893 $300,400 $300,867 $300,400 25 SPRING MOUNTAIN RANCH $53,000 $356,133 $52,000 $0 $52,000 26 LNDSCP & LGTG ASSESSMENT DIST $57,325 $58,045 $57,325 $35,472 $60,732 56 ROAD MAINT & REHAB ACCT $239,000 $254,550 $282,600 $285,000 $300,000 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $21,500 $22,824 $19,300 $10,100 $19,300 76 EIFD - ENHANCED INFRAST FIN DIST $0 $0 $0 $0 $0 85 OPIOID SETTLEMENT PAYMENTS $0 $0 $0 $7,558 $3,400 90 COVID-19 FEMA REIMBURSEMENT FUND $0 $0 $0 $0 $0 91 SB COUNTY COVID-19 $0 $0 $0 $0 $0 F.9 Packet Pg. 159 City of Grand Terrace FY 2023-24 Proposed Revenue Summary by Fund 2021-22 2021-22 2022-23 2022-23 2023-24 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget 93 COVID – INFRASTRUCTURE $0 $0 $0 $0 $0 94 ARPA $0 $2,917 $1,505,180 $1,508,097 $0 ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $4,000 ($8,560) $4,000 $10,165 $4,000 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $69,934 $16,272 $60,140 $50,140 $56,020 65 SENIOR BUS PROGRAM FUND $156,765 $99,923 $152,665 $112,700 $106,238 66 CAL RECYCLE GRANT $0 $21,220 $0 $0 $21,219 73 ACTIVE TRANSPORTATION PRGRM FUND $0 $0 $0 $0 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $44,000 $325,394 $44,000 $0 $692,534 75 EMERMGMT PREP GRANT $0 $6,876 $0 $6,876 $29,000 77 SO CAL INCENTIVE PROJ (SCIP) GRANT $0 $0 $0 $0 $0 92 CDBG – COVID $141,000 $0 $0 $141,000 $0 SUCCESSOR AGENCY 31 S/A RDA REVENUE FUND $0 $0 $0 $0 $0 32 S/A CAPITAL PROJECTS FUND $0 $24,998 $0 $0 $0 33 S/A DEBT SERVICE FUND $0 $771,890 $0 $0 $0 36 2011 TABS A & B BOND PROCEEDS $0 ($1,352) $0 $1,352 $0 CAPITAL PROJECT FUNDS 45 CIP - COMMERCE WAY $0 $1,576 $0 $0 $0 46 CAPITAL IMPROVEMENTS - STREETS $0 $39,000 $0 $0 $524,894 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $0 $0 $0 $0 48 CAPITAL PROJECTS FUND $0 $0 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $1,412,000 $406 $1,589,952 $141,166 $1,456,940 52 HOUSING AUTHORITY $65,000 $22,730 $65,000 $1,080 $65,000 95 DOG PARK ENDOWMENT FUND $0 $0 $0 $0 $0 F.9 Packet Pg. 160 City of Grand Terrace FY 2023-24 Proposed Revenue Summary by Fund 2021-22 2021-22 2022-23 2022-23 2023-24 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget $12,224,193 $11,327,159 $12,549,976 $12,212,932 $12,325,029 Table 4 (Proposed Expenditures) City of Grand Terrace FY 2023-24 Proposed Expense Summary by Fund 2021-22 2021-22 2022-23 2022-23 2023-24 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget GENERAL FUNDS 10 GENERAL FUND $6,956,495 $6,777,142 $7,631,339 $7,712,544 $7,809,967 61 COMMUNITY BENEFITS FUND $20,000 $3,685 $20,000 $8,035 $20,000 62 LIGHT UP GRAND TERRACE $10,000 $16,031 $10,000 $18,783 $20,000 63 GT ILLEGAL FIREWORKS ENFORCEMENT $3,500 $0 $2,000 $2,000 $2,000 64 PUBLIC SAFETY FUND $0 $0 $0 $0 $0 69 COMMUNITY DAY FUND $10,000 $4,694 $20,000 $20,000 $15,000 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 $0 $0 $0 $0 70 EQUIP REPLACEMENT RESERVE FUND $0 $0 $0 $30,000 $0 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $0 $0 $0 $0 $0 12 STORM DRAIN FUND $0 $0 $0 $0 $0 13 PARK FUND $0 $0 $0 $0 $0 19 FACILITIES FUND $0 $766 $0 $4,000 $0 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS) $150,000 $161,918 $160,550 $164,550 $160,550 15 AIR QUALITY IMPROVEMENT FUND $3,860 $3,860 $0 $11,000 $0 16 GAS TAX FUND $722,075 $412,499 $363,416 $344,951 $369,055 17 TRAFFIC SAFETY FUND $4,000 $9,788 $4,000 $4,000 $4,000 20 MEASURE "I" FUND $236,048 $162,647 $119,272 $79,272 $300,000 25 SPRING MOUNTAIN RANCH $50,000 $49,050 $50,000 $50,000 $50,000 26 LNDSCP & LGTG ASSESSMENT DIST $66,009 $25,710 $56,238 $50,780 $59,290 56 ROAD MAINT & REHAB ACCT $0 $0 $0 $0 $300,000 F.9 Packet Pg. 161 City of Grand Terrace FY 2023-24 Proposed Expense Summary by Fund 2021-22 2021-22 2022-23 2022-23 2023-24 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $21,500 $9,220 $19,300 $17,000 $19,300 76 EIFD - ENHANCED INFRAST FIN DIST $0 $0 $0 $0 $0 85 OPIOID SETTLEMENT PAYMENTS $0 $0 $0 $0 $0 90 COVID-19 FEMA REIMBURSEMENT FUND $0 $0 $0 $0 $0 91 SB COUNTY COVID-19 $0 $0 $0 $0 $0 92 CDBG – COVID $141,000 $0 $0 $141,000 $0 93 COVID – INFRASTRUCTURE $0 $0 $0 $0 $0 94 ARPA $0 $0 $2,832,000 $3,003,431 $0 ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $0 $88,570 $0 $0 $0 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $69,934 $28,712 $60,140 $50,140 $56,020 65 SENIOR BUS PROGRAM FUND $121,067 $80,650 $146,825 $146,825 $193,238 66 CAL RECYCLE GRANT $0 $0 $0 $0 $21,219 73 ACTIVE TRANSPORTATION PRGRM FUND $0 $0 $0 $3 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $44,000 $4,928 $44,000 $0 $692,534 75 EMER MGMT PREP GRANT $22,368 $14,033 $0 $0 $29,000 77 SO CAL INCENTIVE PROJ (SCIP) GRANT $0 $0 $0 $0 $0 SUCCESSOR AGENCY 31 S/A RDA REVENUE FUND $0 $311,371 $0 $0 $0 32 S/A CAPITAL PROJECTS FUND $0 $0 $0 $0 $0 33 S/A DEBT SERVICE FUND $0 $245,021 $0 $0 $0 36 2011 TABS A & B BOND PROCEEDS $0 $460,519 $0 $0 $0 CAPITAL PROJECT FUNDS 45 CIP - COMMERCE WAY $839,594 $0 $839,594 $0 $0 46 CAPITAL IMPROVEMENTS - STREETS $0 $38,957 $0 $599,453 $524,894 F.9 Packet Pg. 162 City of Grand Terrace FY 2023-24 Proposed Expense Summary by Fund 2021-22 2021-22 2022-23 2022-23 2023-24 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $3,586 $0 $0 $0 48 CAPITAL PROJECTS FUND $0 $0 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $1,676,097 $2,500 $1,804,605 $146,166 $1,456,940 52 HOUSING AUTHORITY $138,198 $52,766 $32,789 $5,101 $35,870 95 DOG PARK ENDOWMENT FUND $0 $0 $0 $0 $0 $11,305,745 $8,968,623 $14,216,068 $12,609,034 $12,138,877 Budget Schedule The proposed schedule leading to adoption of the FY2023-24 is as follows: Table 5 Description Date Budget Introduction Tuesday, May 9th Budget Deliberations by Department and Fund Tuesday, May 23rd Budget Adoption Tuesday, June 13th FISCAL IMPACT: Fiscal impacts of the FY2023-24 Proposed Budget are identified in the FY2023-24 Proposed Budget Summary (which is being made available in the City Clerk’s office). ATTACHMENTS: • 2023-xx Adopt FY2023-24 Budgt Resolution (DOCX) • FY2023-24 Proposed Budget (PDF) APPROVALS: Christine Clayton Completed 05/11/2023 10:39 AM Finance Completed 05/11/2023 10:40 AM City Manager Completed 05/17/2023 12:45 PM City Council Pending 05/23/2023 6:00 PM F.9 Packet Pg. 163 CC Reso No. 2020-21 Page 1 of 2 June 23, 2020 RESOLUTION NO. 2023-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, ADOPTING THE ANNUAL BUDGET FOR FISCAL YEAR 2023-2024 RECITALS WHEREAS, a Proposed Budget for Fiscal Year 2023-2024 was introduced during a regularly scheduled City Council meeting on May 9, 2023; and WHEREAS, continued deliberations for the Annual Budget for Fiscal Year 2023- 2024 was continued during a regularly scheduled City Council meeting on May 23, 2023; and WHEREAS, the City Manager has heretofore submitted to the City Council a Proposed Budget for the City for Fiscal Year 2023-2024, a copy of which, as may have been amended by the City Council, is on file in the City Clerk’s Department and is available for public inspection; and WHEREAS, the said Proposed Budget contains estimates of the services, activities and projects comprising the budget, and contains expenditure requirements and the resources available to the City; and WHEREAS, the said Proposed Budget contains the estimates of uses of fund balance as required to stabilize the delivery of City services during periods of operational deficits; and WHEREAS, the City Council authorizes payment of expenses incurred by means of a check register prepared by the Finance Department and approved at regular meetings of City Council; and WHEREAS, said expenses are recurring in nature, the amounts having been previously approved by ordinance or resolution or otherwise entailing normal, administrative expenses including tax deposits, utility costs, storage fees and related costs of doing business; and WHEREAS, the City Council has made such revisions to the Proposed Budget as so desired; and WHEREAS, the Proposed Budget conforms with the City’s 2030 Vision and 2014- 2020 Strategic Plan; and WHEREAS, the Proposed Budget, as herein approved, will enable the City Council to make adequate financial plans and will ensure that City officers can administer their respective functions in accordance with such plans. F.9.a Packet Pg. 164 At t a c h m e n t : 2 0 2 3 - x x A d o p t F Y 2 0 2 3 - 2 4 B u d g t R e s o l u t i o n ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) CC Reso No. 2020-21 Page 2 of 2 June 23, 2020 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: 1. The Proposed Budget, with summaries listed as Attachment A to this Resolution and as on file in the City Clerk’s Department and as may have been amended by the City Council, is hereby approved and adopted as the Annual Budget of the City of Grand Terrace for Fiscal Year 2023-2024. 2. The amounts of proposed expenditures, which include the uses of fund balance specified in the approved budget, are hereby appropriated for the various budget programs and units for said fiscal years. 3. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. 4. The City Clerk shall certify to the adoption of this Resolution. 5. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of Grand Terrace at a regular meeting held on the 23rd day of May 2023. ________________________________ Bill Hussey Mayor ATTEST: __________________________________ Debra L. Thomas City Clerk APPROVED AS TO FORM: __________________________________ Adrian R. Guerra City Attorney F.9.a Packet Pg. 165 At t a c h m e n t : 2 0 2 3 - x x A d o p t F Y 2 0 2 3 - 2 4 B u d g t R e s o l u t i o n ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) 2021-22 2021-22 2022-23 2022-23 2023-24 Ty pe Fund Comb 1 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget R 10 R10 General Fund Rev $8,654,269 $8,326,772 $7,641,614 $8,995,094 $7,866,852 E 10 E10 General Fund Exp $6,956,495 $6,777,142 $7,631,339 $7,712,544 $7,809,967 $1,697,774 $1,549,630 $10,275 $1,282,551 $56,885 R 11 R11 Street Fund (DIF)Rev $88,000 ($5,220)$88,000 $6,507 $88,000 E 11 E11 Street Fund (DIF)Exp $0 $0 $0 $0 $0 $88,000 ($5,220)$88,000 $6,507 $88,000 R 12 R12 Storm Drain Fund (DIF)Rev $800 $251 $800 $312 $800 E 12 E12 Storm Drain Fund (DIF)Exp $0 $0 $0 $0 $0 $800 $251 $800 $312 $800 R 13 R13 Park Fund (DIF)Rev $800 ($831)$800 $1,014 $800 E 13 E13 Park Fund (DIF)Exp $0 $0 $0 $0 $0 $800 ($831)$800 $1,014 $800 R 14 R14 SLESF (AB3229 COPS)Rev $160,000 $161,420 $165,000 $165,306 $165,000 E 14 E14 SLESF (AB3229 COPS)Exp $150,000 $161,918 $160,550 $164,550 $160,550 $10,000 ($498)$4,450 $756 $4,450 R 15 R15 Air Quality Improvement Fund Rev $15,500 $14,447 $16,400 $16,259 $16,400 E 15 E15 Air Quality Improvement Fund Exp $3,860 $3,860 $0 $11,000 $0 $11,640 $10,587 $16,400 $5,259 $16,400 R 16 R16 Gas Tax Fund Rev $725,200 $439,293 $437,700 $377,000 $438,400 E 16 E16 Gas Tax Fund Exp $722,075 $412,499 $363,416 $344,951 $369,055 $3,125 $26,794 $74,285 $32,049 $69,345 R 17 R17 Traffic Safety Fund Rev $4,000 $7,347 $4,500 $4,028 $4,500 E 17 E17 Traffic Safety Fund Exp $4,000 $9,788 $4,000 $4,000 $4,000 $0 ($2,441)$500 $28 $500 R 19 R19 Facilities Fund (DIF)Rev $20,000 ($418)$20,600 $783 $600 E 19 E19 Facilities Fund (DIF)Exp $0 $766 $0 $4,000 $0 $20,000 ($1,184)$20,600 ($3,217)$600 R 20 R20 Measure "I" Fund Rev $248,600 $333,893 $300,400 $300,867 $300,400 E 20 E20 Measure "I" Fund Exp $236,048 $162,647 $119,272 $79,272 $300,000 $12,552 $171,246 $181,128 $221,595 $400 R 21 R21 Wastewater Disposal Fund Rev $4,000 ($8,560)$4,000 $10,165 $4,000 E 21 E21 Wastewater Disposal Fund Exp $0 $88,570 $0 $0 $0 $4,000 ($97,130)$4,000 $10,165 $4,000 R 22 R22 Community Dev Block Grant (CDBG)Rev $69,934 $16,272 $60,140 $50,140 $56,020 E 22 E22 Community Dev Block Grant (CDBG)Exp $69,934 $28,712 $60,140 $50,140 $56,020 $0 ($12,440)$0 $0 $0 R 25 R25 Spring Mtn Ranch Mitigation Fund Rev $53,000 $356,133 $52,000 $0 $52,000 E 25 E25 Spring Mtn Ranch Mitigation Fund Exp $50,000 $49,050 $50,000 $50,000 $50,000 $3,000 $307,083 $2,000 ($50,000)$2,000 R 26 R26 Landscape & Lighting Assmnt Rev $57,325 $58,045 $57,325 $35,472 $60,732 E 26 E26 Landscape & Lighting Assmnt Exp $66,009 $25,710 $56,238 $50,780 $59,290 ($8,684)$32,335 $1,087 ($15,308)$1,442 R 31 R31 Sugg Agcy RDA Obligation Fund Rev $0 $0 $0 $0 $0 E 31 E31 Sugg Agcy RDA Obligation Fund Exp $0 $311,371 $0 $0 $0 $0 ($311,371)$0 $0 $0 R 32 R32 Succ Agcy Capital Projects Fund Rev $0 $24,998 $0 $0 $0 E 32 E32 Succ Agcy Capital Projects Fund Exp $0 $0 $0 $0 $0 $0 $24,998 $0 $0 $0 City of Grand Terrace FY2023-24 Proposed Budget F.9.b Packet Pg. 166 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) 2021-22 2021-22 2022-23 2022-23 2023-24 Ty pe Fund Comb 1 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget City of Grand Terrace FY2023-24 Proposed Budget R 33 R33 Succ Agcy Debt Service Fund Rev $0 $771,890 $0 $0 $0 E 33 E33 Succ Agcy Debt Service Fund Exp $0 $245,021 $0 $0 $0 $0 $526,869 $0 $0 $0 R 36 R36 2011 TABs A & B Bond Proceeds Rev $0 ($1,352)$0 $1,352 $0 E 36 E36 2011 TABs A & B Bond Proceeds Exp $0 $460,519 $0 $0 $0 $0 ($461,871)$0 $1,352 $0 R 45 R45 CIP - Commerce Way Rev $0 $1,576 $0 $0 $0 E 45 E45 CIP - Commerce Way Exp $839,594 $0 $839,594 $0 $0 ($839,594)$1,576 ($839,594)$0 $0 R 46 R46 Capital Improvements: Streets Rev $0 $39,000 $0 $0 $524,894 E 46 E46 Capital Improvements: Streets Exp $0 $38,957 $0 $599,453 $524,894 $0 $43 $0 ($599,453)$0 R 47 R47 Capital Projects: Barton-Colton Bridge Rev $0 $0 $0 $0 $0 E 47 E47 Capital Projects: Barton-Colton Bridge Exp $0 $3,586 $0 $0 $0 $0 ($3,586)$0 $0 $0 R 48 R48 Capital Projects Fund Rev $0 $0 $0 $0 $0 E 48 E48 Capital Projects Fund Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 49 R49 Capital Projects Fund: Parks Rev $1,412,000 $406 $1,589,952 $141,166 $1,456,940 E 49 E49 Capital Projects Fund: Parks Exp $1,676,097 $2,500 $1,804,606 $146,166 $1,456,940 ($264,097)($2,094)($214,654)($5,000)$0 R 52 R52 Housing Authority Rev $65,000 $22,730 $65,000 $1,080 $65,000 E 52 E52 Housing Authority Exp $138,198 $52,766 $32,789 $5,100 $35,870 ($73,198)($30,036)$32,211 ($4,020)$29,130 R 56 R56 Road Maintenance & Rehab Rev $239,000 $254,550 $282,600 $285,000 $300,000 E 56 E56 Road Maintenance & Rehab Exp $0 $0 $0 $0 $300,000 $239,000 $254,550 $282,600 $285,000 $0 R 61 R61 Community Benefits Fund (Gen Fund)Rev $20,000 $20,101 $20,000 $20,000 $20,000 E 61 E61 Community Benefits Fund (Gen Fund)Exp $20,000 $3,685 $20,000 $8,035 $20,000 $0 $16,416 $0 $11,965 $0 R 62 R62 Light Up Grand Terrace Fund (Gen Fund)Rev $10,000 $13,350 $10,000 $14,950 $20,000 E 62 E62 Light Up Grand Terrace Fund (Gen Fund)Exp $10,000 $16,031 $10,000 $18,783 $20,000 $0 ($2,681)$0 ($3,833)$0 R 63 R63 Illegal Fireworks Enf (Gen Fund)Rev $3,500 ($2,500)$2,000 $0 $2,000 E 63 E63 Illegal Fireworks Enf (Gen Fund)Exp $3,500 $0 $2,000 $2,000 $2,000 $0 ($2,500)$0 ($2,000)$0 R 64 R64 Public Safety Fund (Gen Fund)Rev $0 $43 $0 $105 $0 E 64 E64 Public Safety Fund (Gen Fund)Exp $0 $0 $0 $0 $0 $0 $43 $0 $105 $0 R 65 R65 Senior Bus Program Fund Rev $156,765 $99,923 $152,665 $112,700 $106,238 E 65 E65 Senior Bus Program Fund Exp $121,067 $80,650 $146,825 $146,825 $193,238 $35,698 $19,273 $5,840 ($34,125)($87,000) R 66 R66 Cal Recycle Grant Rev $0 $21,220 $0 $0 $21,219 E 66 E66 Cal Recycle Grant Exp $0 $0 $0 $0 $21,219 $0 $21,220 $0 $0 $0 R 67 R67 Public Education & Government Access (PEG)Rev $21,500 $22,824 $19,300 $10,100 $19,300 E 67 E67 Public Education & Government Access (PEG)Exp $21,500 $9,220 $19,300 $17,000 $19,300 F.9.b Packet Pg. 167 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) 2021-22 2021-22 2022-23 2022-23 2023-24 Ty pe Fund Comb 1 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget City of Grand Terrace FY2023-24 Proposed Budget $0 $13,604 $0 ($6,900)$0 R 68 R68 40th Year Birthday Celebration Fund (Gen Fund)Rev $0 $0 $0 $0 $0 E 68 E68 40th Year Birthday Celebration Fund (Gen Fund)Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 69 R69 Community Day Fund (Gen Fund)Rev $10,000 $4,365 $10,000 $0 $10,000 E 69 E69 Community Day Fund (Gen Fund)Exp $10,000 $4,694 $20,000 $20,000 $15,000 $0 ($329)($10,000)($20,000)($5,000) R 70 R70 Equipment Replacement Reserve (Gen Fund)Rev $0 $2 $0 $0 $0 E 70 E70 Equipment Replacement Reserve (Gen Fund)Exp $0 $0 $0 $30,000 $0 $0 $2 $0 ($30,000)$0 R 73 R73 Active Transportation Program (ATP)Rev $0 $0 $0 $0 $0 E 73 E73 Active Transportation Program (ATP)Exp $0 $0 $0 $3 $0 $0 $0 $0 ($3)$0 R 74 R74 Highway Safety Improvement Program (HSIP)Rev $44,000 $325,394 $44,000 $0 $692,534 E 74 E74 Highway Safety Improvement Program (HSIP)Exp $44,000 $4,928 $44,000 $0 $692,534 $0 $320,466 $0 $0 $0 R 75 R75 EMER MGMT PREP GRANT (EMPG) FUNDRev $0 $6,876 $0 $6,876 $29,000 E 75 E75 EMER MGMT PREP GRANT (EMPG) FUNDExp $22,368 $14,033 $0 $0 $29,000 ($22,368)($7,157)$0 $6,876 $0 R 76 R76 Enhanced Infrastructure Finance District (EIFD)Rev $0 $0 $0 $0 $0 E 76 E76 Enhanced Infrastructure Finance District (EIFD)Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 77 R77 So Cal Incentive Project (SCIP) Grant Rev $0 $0 $0 $0 $0 E 77 E77 So Cal Incentive Project (SCIP) Grant Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 85 R85 OPIOD SETTLEMENT PAYMENTS Rev $0 $0 $0 $7,558 $3,400 E 85 E85 OPIOD SETTLEMENT PAYMENTS Exp $0 $0 $0 $0 $0 $0 $0 $0 $7,558 $3,400 R 90 R90 COVID-19 FEMA Reimbursement Fund Rev $0 $0 $0 $0 $0 E 90 E90 COVID-19 FEMA Reimbursement Fund Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 91 R91 SB COUNTY CORONA VIRUS RELIEF Rev $0 $0 $0 $0 $0 E 91 E91 SB COUNTY CORONA VIRUS RELIEF Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 92 R92 CDBG Covid Rev $141,000 $0 $0 $141,000 $0 E 92 E92 CDBG Covid Exp $141,000 $0 $0 $141,000 $0 $0 $0 $0 $0 $0 R 93 R93 Covid - Infrastructure Rev $0 $0 $0 $0 $0 E 93 E93 Covid - Infrastructure Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 R 94 R94 ARPA Rev $0 $2,917 $1,505,180 $1,508,097 $0 E 94 E94 ARPA Exp $0 $0 $2,832,000 $3,003,431 $0 $0 $2,917 ($1,326,820)($1,495,335)$0 R 95 R95 Dog Park Endowment Fund Rev $0 $0 $0 $0 $0 E 95 E95 Dog Park Endowment Fund Exp $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 F.9.b Packet Pg. 168 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) 2021-22 2021-22 2022-23 2022-23 2023-24 Ty pe Fund Comb 1 Fund Type Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget City of Grand Terrace FY2023-24 Proposed Budget R Total Revenue $12,224,193 $11,327,159 $12,549,976 $12,212,932 $12,325,029 E Total Expense $11,305,745 $8,968,623 $14,216,068 $12,609,034 $12,138,877 $918,448 $2,358,536 ($1,666,092)($396,103)$186,152 F.9.b Packet Pg. 169 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) Fund Fund Title 2020-21 Actual 2021-22 Actuals 2022-23 Projected 2023-24 Proposed Budget GENERAL FUNDS 10 GENERAL FUND $6,307,123 $8,326,772 $8,995,094 $7,866,852 61 COMMUNITY BENEFITS FUND $10,082 $20,101 $20,000 $20,000 62 LIGHT UP GRAND TERRACE $5,535 $13,350 $14,950 $20,000 63 GT ILLEGAL FIREWORKS ENFORCEMENT $1 ($2,500)$0 $2,000 64 PUBLIC SAFETY FUND $52 $43 $106 $0 69 COMMUNITY DAY FUND $0 $4,365 $0 $10,000 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 $0 $0 $0 70 EQUIP REPLACEMENT RESERVE FUND $2 $4 $0 $0 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $3,550 ($5,220)$6,507 $88,000 12 STORM DRAIN FUND $43,007 $251 $312 $800 13 PARK FUND ($165)($831)$1,014 $800 19 FACILITIES FUND $3,483 ($418)$783 $600 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS)$157,100 $161,420 $165,306 $165,000 15 AIR QUALITY IMPROVEMENT FUND $15,971 $14,447 $16,259 $16,400 16 GAS TAX FUND $369,137 $439,293 $377,000 $438,400 17 TRAFFIC SAFETY FUND $4,454 $7,347 $4,028 $4,500 20 MEASURE "I" FUND $281,718 $333,893 $300,867 $300,400 25 SPRING MOUNTAIN RANCH $1,696 $356,133 $0 $52,000 26 LNDSCP & LGTG ASSESSMENT DIST $55,643 $58,045 $35,472 $60,732 56 ROAD MAINTENANCE & REHAB ACCT $230,963 $254,550 $285,000 $300,000 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $24,025 $22,824 $10,100 $19,300 76 EIFD - ENHANCED INFRAST FIN DIST $0 $0 $0 $0 85 OPIOID SETTLEMENT FUNDS $0 $0 $7,558 $3,400 90 COVID-19 FEMA REIMBURSEMENT FUND $153,449 $0 $0 $0 91 SB COUNTY CORONA VIRUS RELIEF $153,425 $0 $0 $0 93 COVID - INFRASTRUCTURE $274,200 $0 $0 $0 94 ARPA $0 $2,917 $1,508,097 $0 ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $13,576 ($8,560)$10,165 $4,000 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $59,930 $16,272 $50,140 $56,020 65 SENIOR BUS PROGRAM FUND $59,680 $99,923 $112,700 $106,238 66 CAL RECYCLE GRANT $18 $21,220 $0 $21,219 73 ACTIVE TRANSPORTATION PRGRM FUND $0 $0 $0 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $36,200 $325,394 $0 $692,534 75 EMER MGMT PREP GRANT (EMPG)$0 $6,876 $6,876 $29,000 77 SO CAL INCENTIVE PROJ (SCIP) GRANT $0 $0 $0 $0 92 CDBG - COVID $0 $0 $141,000 $0 SUCCESSOR AGENCY 31 S/A RDA REVENUE FUND $283,438 $0 $0 $0 32 S/A CAPITAL PROJECTS FUND $0 $24,998 $0 $0 33 S/A DEBT SERVICE FUND $0 $771,890 $0 $0 36 2011 TABS A & B BOND PROCEEDS $76 ($1,352)$1,352 $0 CAPITAL PROJECT FUNDS 45 CIP - COMMERCE WAY $1,893 $1,576 $0 $0 46 CAPITAL IMPROVEMENTS - STREETS $456,999 $39,000 $0 $524,894 47 CAP.PRJ. BARTON/COLTON BRIDGE $0 $0 $0 $0 48 CAPITAL PROJECTS FUND $0 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $576 $406 $141,166 $1,456,940 52 HOUSING AUTHORITY $2,059 $22,730 $1,080 $65,000 95 DOG PARK ENDOWMENT FUND $0 $0 $0 $0 $9,008,896 $11,327,159 $12,212,932 $12,325,029 Cityof Grand Terrace FY 2023-24 Proposed Revenue Summary by Fund F.9.b Packet Pg. 170 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) Fund Fund Title 2020-21 Actual 2021-22 Actuals 2022-23 Projected 2023-24 Proposed Budget GENERAL FUNDS 10 GENERAL FUND $6,331,328 $6,777,142 $7,712,544 $7,809,967 61 COMMUNITY BENEFITS FUND $1,385 $3,685 $8,035 $20,000 62 LIGHT UP GRAND TERRACE $5,915 $16,031 $18,783 $20,000 63 GT ILLEGAL FIREWORKS ENFORCEMENT $0 $0 $2,000 $2,000 64 PUBLIC SAFETY FUND $0 $0 $0 $0 69 COMMUNITY DAY FUND $0 $4,694 $20,000 $15,000 68 40TH YEAR BIRTHDAY CELEBRATION FND $0 $0 $0 $0 70 EQUIP REPLACEMENT RESERVE FUND $0 $0 $30,000 $0 DEVELOPMENT IMPACT FEES (DIF) 11 STREET FUND $0 $0 $0 $0 12 STORM DRAIN FUND $0 $0 $0 $0 13 PARK FUND $0 $0 $0 $0 19 FACILITIES FUND $204,835 $766 $4,000 $0 SPECIAL REVENUE FUNDS 14 SLESF (AB3229 COPS)$157,872 $161,918 $164,550 $160,550 15 AIR QUALITY IMPROVEMENT FUND $5,000 $3,860 $11,000 $0 16 GAS TAX FUND $428,537 $412,499 $344,951 $369,055 17 TRAFFIC SAFETY FUND $0 $9,788 $4,000 $4,000 20 MEASURE "I" FUND $293,651 $162,647 $79,272 $300,000 25 SPRING MOUNTAIN RANCH $4,720 $49,050 $50,000 $50,000 26 LNDSCP & LGTG ASSESSMENT DIST $14,670 $25,710 $50,780 $59,290 56 ROAD MAINTENANCE & REHAB ACCT $202,000 $0 $0 $300,000 67 PUBLIC, EDUCATIONAL & GOVT ACCESS $0 $9,220 $17,000 $19,300 76 EIFD - ENHANCED INFRAST FIN DIST $0 $0 $0 $0 85 OPIOID SETTLEMENT FUNDS $0 $0 $0 $0 90 COVID-19 FEMA REIMBURSEMENT FUND $123,180 $0 $0 $0 91 SB COUNTY CORONA VIRUS RELIEF $153,426 $0 $0 $0 92 CDBG - COVID $0 $0 $141,000 $0 93 COVID - INFRASTRUCTURE $274,200 $0 $0 $0 94 ARPA $0 $0 $3,003,431 $0 ENTERPRISE FUND 21 WASTEWATER DISPOSAL FUND $88,570 $88,570 $0 $0 GRANT FUNDS 22 CDBG - COMM DEV BLOCK GRANT $30,385 $28,712 $50,140 $56,020 65 SENIOR BUS PROGRAM FUND $62,924 $80,650 $146,825 $193,238 66 CAL RECYCLE GRANT $0 $0 $0 $21,219 73 ACTIVE TRANSPORTATION PRGRM FUND $0 $0 $3 $0 74 HIGHWAY SAFETY IMPROV PROGRAM $442,564 $4,928 $0 $692,534 75 EMER MGMT PREP GRANT (EMPG)$0 $14,033 $0 $29,000 77 SO CAL INCENTIVE PROJ (SCIP) GRANT $0 $0 $0 $0 SUCCESSOR AGENCY 31 S/A RDA REVENUE FUND $0 $311,371 $0 $0 32 S/A CAPITAL PROJECTS FUND $388,132 $0 $0 $0 33 S/A DEBT SERVICE FUND $887,367 $245,021 $0 $0 36 2011 TABS A & B BOND PROCEEDS $0 $460,519 $0 $0 CAPITAL PROJECT FUNDS 45 CIP - COMMERCE WAY $65 $0 $0 $0 46 CAPITAL IMPROVEMENTS - STREETS $456,893 $38,957 $599,453 $524,894 47 CAP.PRJ. BARTON/COLTON BRIDGE $18,623 $3,586 $0 $0 48 CAPITAL PROJECTS FUND $0 $0 $0 $0 49 CAPITAL PROJECTS FUND- PARKS $37,495 $2,500 $146,166 $1,456,940 52 HOUSING AUTHORITY $21,734 $52,766 $5,101 $35,870 95 DOG PARK ENDOWMENT FUND $0 $0 $0 $0 $10,635,471 $8,968,623 $12,609,034 $12,138,877 Cityof Grand Terrace FY 2023-24 Proposed Expenditure Summary by Fund F.9.b Packet Pg. 171 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) 2021-22 2021-22 2022-23 2022-23 2023-24 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Revenues Property Tax $4,046,365 $4,448,671 $2,135,920 $4,501,908 $4,701,195 Residual Receipts - RPTTF $176,900 $188,340 $2,402,700 $0 $0 Proceeds from Sale of Property $1,798,700 $870,601 $0 $1,200,000 $0 Franchise Fees $620,000 $639,348 $635,000 $677,459 $650,000 Licenses, Fees & Permits $658,500 $793,649 $834,800 $856,085 $804,270 Sales Tax $1,236,200 $1,519,921 $1,425,400 $1,402,379 $1,534,000 Intergovernmental Revenue/Grants $2,666,529 $953,077 $3,930,637 $2,467,974 $2,927,417 Charges for Services $144,100 $129,111 $181,000 $180,713 $164,500 Fines & Forfeitures $73,800 $78,302 $72,800 $45,252 $47,700 Miscellaneous $20,000 $31,238 $39,710 $19,530 $44,710 Use of Money & Property $46,090 $37,554 $45,660 $75,583 $45,660 Waste Water Receipts $318,349 $318,349 $318,349 $318,349 $318,349 Transfers In $113,860 $1,017,471 $160,700 $110,700 $719,228 Residual Receipts - Sr Ctr $0 $0 $0 $50,000 $0 Gas Tax $304,800 $301,527 $367,300 $307,000 $368,000 Total Revenues $12,224,193 $11,327,159 $12,549,976 $12,212,932 $12,325,029 Expenditures by Category Salaries $1,887,882 $1,536,573 $1,584,779 $1,493,882 $1,591,747 Benefits $1,292,387 $1,102,628 $1,409,032 $1,361,433 $1,284,706 Materials & Supplies $229,770 $259,094 $479,405 $504,714 $424,045 Professional/Contractual Services $5,426,258 $4,348,386 $8,033,171 $7,533,020 $5,017,147 Equipment $0 $3,000 $0 $30,000 $0 Lease of Facility/Equipment $65,200 $17,817 $17,000 $12,432 $16,500 Utilities $265,748 $309,045 $324,708 $332,802 $342,470 Overhead Cost Allocation ($3,000)$0 $0 $0 $0 Capital Projects $1,945,730 $154,586 $2,207,273 $1,169,051 $2,776,868 Debt Service $0 $220,022 $0 $0 $0 Transfers Out $195,770 $1,017,472 $160,700 $171,700 $685,394 Total Expenditures $11,305,745 $8,968,623 $14,216,068 $12,609,034 $12,138,877 Revenues $12,224,193 $11,327,159 $12,549,976 $12,212,932 $12,325,029 Expenditures by Category ($11,305,745)($8,968,623)($14,216,068)($12,609,034)($12,138,877) Surplus or Approved Use of Fund Balance $918,448 $2,358,536 ($1,666,092)($396,103)$186,152 City of Grand Terrace FY 2023-24 Proposed Citywide Revenue and Expenditure Report F.9.b Packet Pg. 172 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) 2021-22 2021-22 2022-23 2022-23 2023-24 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Revenues Property Tax $3,989,040 $4,390,807 $2,078,595 $4,466,455 $4,640,463 Residual Receipts - RPTTF $176,900 $188,340 $2,402,700 $0 $0 Proceeds from Sale of Property $1,798,700 $870,601 $0 $1,200,000 $0 Franchise Fees $620,000 $639,349 $635,000 $677,459 $650,000 Licenses, Fees & Permits $490,000 $424,778 $665,400 $840,085 $654,870 Sales Tax $988,000 $1,185,907 $1,125,400 $1,102,379 $1,234,000 Intergovernmental Revenue/Grants $31,220 $59,469 $60,500 $61,206 $58,500 Charges for Services $141,100 $129,111 $178,000 $180,713 $161,500 Fines & Forfeitures $66,300 $73,454 $66,300 $33,694 $37,800 Miscellaneous $0 $2,356 $26,710 $14,579 $26,710 Use of Money & Property $34,660 $44,251 $34,660 $50,175 $34,660 Waste Water Receipts $318,349 $318,349 $318,349 $318,349 $318,349 Transfers In $0 $0 $50,000 $0 $50,000 Residual Receipts - Sr Ctr $0 $0 $0 $50,000 $0 Gas Tax $0 $0 $0 $0 $0 Total Revenues $8,654,269 $8,326,772 $7,641,614 $8,995,094 $7,866,852 Expenditures by Category Salaries $1,552,512 $1,337,019 $1,482,899 $1,397,977 $1,473,431 Benefits $1,149,757 $1,044,787 $1,356,069 $1,309,962 $1,237,062 Materials & Supplies $224,770 $250,607 $323,605 $348,914 $418,545 Professional/Contractual Services $3,674,258 $3,698,713 $4,198,568 $4,384,297 $4,398,580 Equipment $0 $3,000 $0 $0 $0 Lease of Facility/Equipment $19,600 $17,817 $12,000 $7,432 $11,500 Utilities $176,448 $216,918 $229,448 $235,212 $242,300 Overhead Cost Allocation ($84,950)($81,950)($81,950)($81,950)($81,950) Capital Projects $118,966 $112,465 $0 $0 $0 Debt Service $0 $0 $0 $0 $0 Transfers Out $125,134 $177,766 $110,700 $110,700 $110,500 Total Expenditures $6,956,495 $6,777,142 $7,631,339 $7,712,544 $7,809,968 Revenues $8,654,269 $8,326,772 $7,641,614 $8,995,094 $7,866,852 Expenditures by Category ($6,956,495)($6,777,142)($7,631,339)($7,712,544)($7,809,968) Surplus or Approved Use of Fund Balance $1,697,774 $1,549,630 $10,275 $1,282,550 $56,884 City of Grand Terrace FY 2023-24 Proposed General Fund Revenue and Expenditure Report by CATEGORY F.9.b Packet Pg. 173 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) 2021-22 2021-22 2022-23 2022-23 2023-24 Adjusted Budget Actuals Adjusted Budget Year-End Projections Proposed Budget Revenues Property Tax $3,989,040 $4,390,807 $2,078,595 $4,466,455 $4,640,463 Residual Receipts - RPTTF $176,900 $188,340 $2,402,700 $0 $0 Proceeds from Sale of Property $1,798,700 $870,601 $0 $1,200,000 $0 Franchise Fees $620,000 $639,349 $635,000 $677,459 $650,000 Licenses, Fees & Permits $490,000 $424,778 $665,400 $840,085 $654,870 Sales Tax $988,000 $1,185,907 $1,125,400 $1,102,379 $1,234,000 Intergovernmental Revenue/Grants $31,220 $59,469 $60,500 $61,206 $58,500 Charges for Services $141,100 $129,111 $178,000 $180,713 $161,500 Fines & Forfeitures $66,300 $73,454 $66,300 $33,694 $37,800 Miscellaneous $0 $2,357 $26,710 $14,579 $26,710 Use of Money & Property $34,660 $44,251 $34,660 $50,175 $34,660 Waste Water Receipts $318,349 $318,349 $318,349 $318,349 $318,349 Transfers In $0 $0 $50,000 $0 $50,000 Residual Receipts - Sr Ctr $0 $0 $0 $50,000 $0 Gas Tax $0 $0 $0 $0 $0 Total Revenues $8,654,269 $8,326,772 $7,641,614 $8,995,094 $7,866,852 Expenditures by Department City Council $76,621 $55,459 $119,528 $101,748 $123,708 City Manager $847,763 $824,190 $690,294 $764,957 $714,415 City Clerk $234,763 $208,176 $287,126 $286,846 $285,686 Finance $480,364 $411,665 $579,427 $565,632 $561,493 City Attorney $210,000 $251,955 $210,000 $186,517 $185,000 Planning & Dev. Svcs $1,064,523 $856,877 $1,213,342 $854,234 $1,028,637 Public Works $659,645 $698,924 $1,008,751 $1,278,061 $1,239,914 Non-Departmental $941,876 $1,113,124 $1,136,875 $1,144,122 $1,015,615 Public Safety $2,440,940 $2,356,772 $2,385,996 $2,530,427 $2,655,500 Total Expenditures $6,956,495 $6,777,142 $7,631,339 $7,712,544 $7,809,967 Revenues $8,654,269 $8,326,772 $7,641,614 $8,995,094 $7,866,852 Expenditures by Department ($6,956,495)($6,777,142)($7,631,339)($7,712,544)($7,809,967) Surplus or Approved Use of Fund Balance $1,697,774 $1,549,630 $10,275 $1,282,550 $56,885 City of Grand Terrace FY 2023-24 Proposed General Fund Revenue and Expenditure Report by DEPARTMENT F.9.b Packet Pg. 174 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 175 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 176 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 177 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 178 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 179 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 180 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 181 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 182 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 183 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 184 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) City of Grand Terrace FY 2023-24 Proposed Revenue & Expense Report by Fund Type Revenues Property Tax Residual Receipts -RPTTF Proceeds from Sale of Property Franchise Fees Licenses, Fees & Permits Sales Tax Intergovernmental Revenue/Grants Charges for Services Fines & Forfeitures Miscellaneous Use of Money & Property Waste Water Receipts Residual Receipts -Sr Ctr Transfers In Gas Tax Expenditures Salaries Benefits Materials & Supplies Professional/Contractual Services Lease of Facility/Equipment Utilities Utilities Capital Projects Debt Service Transfers Out Overhead Cost Allocation Impact to Fund Balance Revenues Expenditures Total Revenues Total Expenditures Net -Increase to or (Use of) Fund Balance CaQital Proiect Funds $0 $0 $0 $0 $0 $0 $1,456,940 $0 $0 $0 $0 $0 $0 $524,894 fill $1,981.834 $0 $0 $0 $0 $0 $0 $0 $1,981,834 $0 $0 fill $1,981.834 $1,981,834 $1,981,834 $2, Housing Authorit)' $0 $0 $0 $0 $0 $0 $65,000 $0 $0 $0 $0 $0 $0 $0 fill $65.000 $9,013 $2,640 $0 $24,036 $0 $0 $181 $0 $0 $0 fill $35.870 $65,000 $35,870 $29,130 TOTAL $4,701,195 $0 $0 $650,000 $804,270 $1,534,000 $2,927,417 $164,500 $47,700 $44,710 $45,660 $318,349 $0 $719,228 �368,000 $12.325.029 $1,591,747 $1,284,706 $424,045 $5,016,847 $0 $16,500 $342,470 $2,776,868 $0 $685,394 fill $12,138.577 $12,325,029 $12,138,577 $186,452 F.9.b Packet Pg. 185 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) City of Grand Terrace FY 2023-24 Proposed Revenue & Expense Report by Fund GENERAL FUNDS Revenues Property Tax Residual Receipts -RPTTF Proceeds from Sale of Property Franchise Fees Licenses, Fees & Permits Sales Tax Gas Tax Intergovernmental Revenue/Grants Charges for Services Fines & Forfeitures Miscellaneous Use of Money & Property Waste Water Receipts Residual Receipts -Sr Ctr Transfers In Expenditures Salaries Benefits Materials & Supplies Professional/Contractual Services Equipment Lease of Facility/Equipment Utilities Capital Projects Debt Service Transfers Out Overhead Cost Allocation Impact to Fund Balance Revenues Expenditures Total Revenues Total Expenditures Net -Increase to or (Use of) Fund Balance 10 General Fund $4,640,463 $0 $0 $650,000 $654,870 $1,234,000 $0 $58,500 $161,500 $37,800 $26,710 $34,660 $318,349 $0 $50,000 $2,866,852 $1,473,431 $1,237,062 $418,545 $4,398,580 $0 $11,500 $242,300 $0 $0 $110,500 ($81,950) n,§09,968 $7,866,852 $7,809,968 $56,884 61 Communit� Benefits Fund $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $20,000 $20,000 $0 $0 $0 $20,000 $0 $0 $0 $0 $0 $0 iQ $20.000 $20,000 $20,000 $0 62 Light Ug Grand Terrace $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $5,000 $0 $0 $0 $15,000 $20,000 $0 $0 $0 $20,000 $0 $0 $0 $0 $0 $0 iQ $20,000 $20,000 $20,000 $,2 F.9.b Packet Pg. 186 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 187 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 188 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 189 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 190 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 191 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 192 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 193 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 194 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 195 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 196 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 197 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 198 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 199 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 200 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) F.9.b Packet Pg. 201 At t a c h m e n t : F Y 2 0 2 3 - 2 4 P r o p o s e d B u d g e t ( A d o p t i o n o f t h e F Y 2 0 2 3 - 2 4 B u d g e t ) AGENDA REPORT MEETING DATE: May 23, 2023 Council Item TITLE: Approve the Re-Location of the Trash Enclosure at Veterans Freedom Park and Approve an Agreement with Martin Lucio for Demolition and Construction of a New Trash Enclosure and Authorize the City Manager to Execute the Agreement Subject to City Attorney Approval as to Form. PRESENTED BY: Luis Gardea, Building Official RECOMMENDATION: 1. Approve the Re-Location of the Trash Enclosure at Veterans Freedom Park 2. Approve an Agreement with Martin Lucio (CSLB# 1031403) for Construction of a New Trash Enclosure at Veterans Freedom Park in the amount of $33,000 with a 10% Contingency ($3,300). 3. Authorize the City Manager to execute the Agreement subject to City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports Goal #2 “Ensuring Our Fiscal Viability”. BACKGROUND: The City of Grand Terrace Veterans Freedom Park currently has a trash enclosure in front of the Veterans Freedom Wall. The existing enclosure is unsightly and blocks sight lines to the memorial. The existing enclosure also does not meet current City standards for trash enclosures and has no location for edible waste disposal bins for waste generated by the snack bar. The park is frequently used by members of the community during Little League softball and baseball seasons, in addition to the City’s annual Veterans Day Ceremony. The item was brought to the City Council as future agenda items request at the April 25, 2023, City Council meeting. At that meeting, the City Council approved the item to be brought back for discussion. DISCUSSION: City staff sent out an invitation to submit bids and contacted various contractors including “B-General” and “C-29 Masonry” licensed contractors in the area qualified to build a new trash enclosure. A total of three (3) bids were received and submitted to G.10 Packet Pg. 202 staff. Below are the three (3) bids received by City staff including the compensation amounts. Total Compensation Bid 1 Concrete the World (CTW) Inc. $54,100.62 Bid 2 Martin Lucio $33,000.00 Bid 3 Jonescape Inc. $39,710.00 The contractor's and subcontractor’s licenses are currently valid, and in good standing, and references provided positive feedback. The total compensation for Concrete the World is proposed at $54,100.62, with Martin Lucio at $33,000, and Jonescape Inc. at $39,710.00 The scope of work includes the demolition of the existing trash enclosure and the construction of a new enclosure at a different location at the park that is more accessible for guests to use. Work will also include building a retaining concrete curb on the left and rear side of the enclosure, resurfacing of concrete slab, a new wooden cover on top of the enclosure, and installation of existing gates to the new trash enclosure with any needed upgrades. RECOMMENDATION: Staff is recommending that Council approve the re-location of the trash enclosure and approve an Agreement with Martin Lucio, (attached hereto) in an amount not to exceed $33,000 for demolition and construction of a new trash enclosure and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. Alternatively, the City Council may also reject the proposal. ENVIRONMENTAL IMPACT: None FISCAL IMPACT: The $33,000 plus 10% contingency of $3,300 for a total of $36,300 will come from the General Fund account #10-450-710-000-000. ATTACHMENTS: • Bid #1 - CTW Inc (PDF) • Bid #2 - Martin Lucio (PDF) • Bid #3 - Jonescape Inc (PDF) • Grand Terrace Public Works Agreement with Martin Lucio_JT's Edits(DOCX) G.10 Packet Pg. 203 APPROVALS: Luis Gardea Completed 05/17/2023 11:30 AM City Manager Completed 05/17/2023 2:54 PM City Council Pending 05/23/2023 6:00 PM G.10 Packet Pg. 204 G.10.a Packet Pg. 205 At t a c h m e n t : B i d # 1 - C T W I n c ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h E n c l o s u r e ) G.10.a Packet Pg. 206 At t a c h m e n t : B i d # 1 - C T W I n c ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h E n c l o s u r e ) G.10.a Packet Pg. 207 At t a c h m e n t : B i d # 1 - C T W I n c ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h E n c l o s u r e ) G.10.b Packet Pg. 208 At t a c h m e n t : B i d # 2 - M a r t i n L u c i o ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h E n c l o s u r e ) G.10.c Packet Pg. 209 At t a c h m e n t : B i d # 3 - J o n e s c a p e I n c ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h E n c l o s u r e ) 01247.0006/867431.1 PUBLIC WORKS AGREEMENT By and Between CITY OF GRAND TERRACE and MARTIN ESPARZA LUCIO G.10.d Packet Pg. 210 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -1- 01247.0006/867431.1 AGREEMENT FOR PUBLIC WORKS SERVICES BETWEEN THE CITY OF GRAND TERRACE AND MARTIN ESPARZA LUCIO This AGREEMENT FOR PUBLIC WORKS SERVICES BETWEEN THE CITY OF GRAND TERRACE AND MARTIN ESPARZA LUCIO. (herein “Agreement”) is made and entered into this 23 day of May, 2023 by and between the City of GRAND TERRACE, a California municipal corporation (“City”) and MARTIN ESPARZA LUCIO, a California corporation (“Contractor”). City and Contractor may be referred to, individually or collectively, as “Party” or “Parties.” RECITALS A. City has sought, by issuance of a Request for Proposals or Invitation for Bids, the performance of the services defined and described particularly in Article 1 of this Agreement. B. Contractor, following submission of a proposal or bid for the performance of the services defined and described particularly in Article 1 of this Agreement, was selected by the City to perform those services. C. Pursuant to the City of Grand Terrace Municipal Code, City has authority to enter into and execute this Agreement. D. The Parties desire to formalize the selection of Contractor for performance of those services defined and described particularly in Article 1 of this Agreement and desire that the terms of that performance be as particularly defined and described herein. OPERATIVE PROVISIONS NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the parties agree as follows: ARTICLE 1. WORK OF CONTRACTOR 1.1 Scope of Work. In compliance with all terms and conditions of this Agreement, the Contractor shall provide those services specified in the “Scope of Work” attached hereto as Exhibit “A” and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to the City entering into this Agreement, Contractor represents and warrants that it has the qualifications, experience, and facilities necessary to properly perform the work required under this Agreement in a thorough, competent, and professional manner, and is experienced in performing the work and services contemplated herein. Contractor shall at all times faithfully, competently and to the best of its ability, experience and talent, perform all services described herein. Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all G.10.d Packet Pg. 211 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -2- 01247.0006/867431.1 materials will be both of good quality as well as fit for the purpose intended. For purposes of this Agreement, the phrase “highest professional standards” shall mean those standards of practice recognized by one or more first-class firms performing similar work under similar circumstances. 1.2 Contract Documents. The Scope of Work shall include the “General Provisions” and “Special Provisions” contained in as provided in this Agreement, all of which are incorporated herein by this reference. In the event of any inconsistency between the terms of the bid documents and this Agreement, the terms of this Agreement shall govern. 1.3 Incorporation of Green Book. The provisions of the 2021 Edition of the Standard Specifications for Public Works Construction, as updated by errata, (“Greenbook”) are incorporated herein, except as explicitly modified by the Bid Documents. In the event of any conflict between the provisions of the Greenbook and this Agreement, the terms of this Agreement shall govern. 1.4 Compliance with Law. Contractor shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered. 1.5 Compliance with California Labor Law. (a) Public Work. The Parties acknowledge that the work to be performed under this Agreement is a “public work” as defined in Labor Code Section 1720 and that this Agreement is therefore subject to the requirements of Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code relating to public works contracts and the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes. The work performed under this Agreement is subject to compliance monitoring and enforcement by the DIR. Contractor shall post job site notices, as prescribed by regulation. (b) Prevailing Wages. Contractor shall pay prevailing wages to the extent required by Labor Code Section 1771. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages are on file at City Hall and will be made available to any interested party on request. By initiating any work under this Agreement, Contractor acknowledges receipt of a copy of the Department of Industrial Relations (DIR) determination of the prevailing rate of per diem wages, and Contractor shall post a copy of the same at each job site where work is performed under this Agreement. (c) Penalty for Failure to Pay Prevailing Wages. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each G.10.d Packet Pg. 212 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -3- 01247.0006/867431.1 calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor. (d) Payroll Records. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform the City of the location of the records. (e) Apprentices. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6, and 1777.7 and California Code of Regulations Title 8, Section 200 et seq. concerning the employment of apprentices on public works projects. Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within sixty (60) days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement. (f) Eight-Hour Work Day. Contractor acknowledges that eight (8) hours labor constitutes a legal day's work. Contractor shall comply with and be bound by Labor Code Section 1810. (g) Penalties for Excess Hours. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and forty (40) hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of eight (8) hours per day, and forty (40) hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of 8 hours per day at not less than one and one-half (1½) times the basic rate of pay. (h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” G.10.d Packet Pg. 213 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -4- 01247.0006/867431.1 Contractor’s Authorized Initials ________ (i) Contractor’s Responsibility for Subcontractors. For every subcontractor who will perform work under this Agreement, Contractor shall be responsible for such subcontractor's compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Agreement. Contractor shall take all actions necessary to enforce such contractual provisions and ensure subcontractor's compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages. Contractor shall diligently take corrective action to halt or rectify any such failure by any subcontractor. 1.6 Licenses, Permits, Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits, registrations, and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder. 1.7 Familiarity with Work. (a) By executing this Agreement, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of work to be performed, (ii) has carefully considered how the services should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of services hereunder. (b) Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any: (i) material Contractor believes may be hazardous waste as defined in Section 25117 of the Health & Safety Code required to be removed to a Class I, II, or III disposal site in accordance with existing law; (ii) subsurface, unknown or latent conditions, materially different from those indicated; or (iii) unknown physical conditions at the site of any unusual nature, different from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement, and will materially affect the performance of the services hereunder. (c) City shall promptly investigate the conditions, and if it finds that the conditions do materially differ, or do involve hazardous waste, and cause a decrease or increase in Contractor's cost of, or the time required for, performance of any part of the work, shall issue a change order per Section 1.10 of this Agreement. G.10.d Packet Pg. 214 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -5- 01247.0006/867431.1 (d) In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided either by contract or by law, which pertain to the resolution of disputes and protests between the contracting parties. (e) City will compensate Contractor to the extent required by Government Code Section 4215 by issuing a change order per Section 1.10 of this Agreement. 1.8 Protection and Care of Work and Materials. The Contractor shall adopt reasonable methods, including providing and maintaining storage facilities, during the life of the Agreement to furnish continuous protection to the work, and the equipment, materials, papers, documents, plans, studies and/or other components thereof to prevent losses or damages, and shall be responsible for all such damages, to persons or property, until acceptance of the work by City, except such losses or damages as caused by City’s own negligence. Stored materials shall be reasonably accessible for inspection. Contractor shall not, without City’s consent, assign, sell, mortgage, hypothecate, or remove equipment or materials which have been installed or delivered and which may be necessary for the completion of the work. 1.9 Warranty. Contractor warrants all work under the Agreement (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Agreement or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the work or non-conformance of the work to the Agreement, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act as soon as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair, remove and replace any portions of the work (or work of other contractors) damaged by its defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor's obligation hereunder to correct defective work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Agreement. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement G.10.d Packet Pg. 215 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -6- 01247.0006/867431.1 and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand. 1.10 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. 1.11 Additional Work and Change Orders. (a) City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Work or make changes by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written change order is first given by the Contract Officer to the Contractor, incorporating therein any adjustment in (i) the Contract Sum, and/or (ii) the time to perform this Agreement, which said adjustments are subject to the written approval of the Contractor (“Change Order”). All Change Orders must be signed by the Contractor and Contract Officer prior to commencing the extra work thereunder. (b) Any increase in compensation of up to ten percent (10%) of the Contract Sum or any increase in the time to perform of up to one hundred eighty (180) days; and does not materially affect the Work and which are not detrimental to the Work or to the interest of the City, may be approved by the Contract Officer. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. (c) Any adjustment in the Contract Sum for a Change Order must be in accordance with the rates set forth in the Schedule of Compensation in Exhibit “C”. If the rates in the Schedule of Compensation do not cover the type of work in the Change Order, the cost of such work shall not exceed an amount agreed upon in writing and signed by Contractor and Contract Officer. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order completed, to the satisfaction of the City, as follows: (i) Labor: the cost of labor shall be the actual cost for wages of workers and subcontractors performing the work for the Change Order at the time such work is done. The use of labor classifications that would increase the cost of such work shall not be permitted. (ii) Materials and Equipment: the cost of materials and equipment shall be at cost to Contractor or lowest current price which such materials and equipment are reasonably available at the time the work is done, whichever is lower. G.10.d Packet Pg. 216 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -7- 01247.0006/867431.1 (iii) If the cost of the extra work cannot be agreed upon, the Contractor must provide a daily report that includes invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include: list of names of workers, classifications, and hours worked; description and list of quantities of materials used; type of equipment, size, identification number, and hours of operation, including loading and transportation, if applicable; description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights for that day. (d) It is expressly understood by Contractor that the provisions of this Section 1.10 shall not apply to services specifically set forth in the Scope of Work. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. (e) No claim for an increase in the Contract Sum or time for performance shall be valid unless the procedures established in this Section are followed. 1.12 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit “B” and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit “B” and any other provisions of this Agreement, the provisions of Exhibit “B” shall govern. ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT. 2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Contractor the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed thirty-three thousand dollars ($33,000) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10. 2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the services less the contract retention; (iii) payment for time and materials based upon the Contractor’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation. G.10.d Packet Pg. 217 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -8- 01247.0006/867431.1 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 Contractor at all project meetings reasonably deemed necessary by the City. Coordination of the performance of the work with City is a critical component of the services. If Contractor is required to attend additional meetings to facilitate such coordination, Contractor shall not be entitled to any additional compensation for attending said meetings. 2.4 Invoices. Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Agreement, Contractor is certifying compliance with all provisions of the Agreement. The invoice shall contain all information specified in Exhibit “C”, and shall detail charges for all necessary and actual expenses by the following categories: labor (by sub-category), travel, materials, equipment, supplies, and sub-contractor contracts. Sub-contractor charges shall also be detailed by such categories. Contractor shall not invoice City for any duplicate services performed by more than one person. City shall, as soon as practicable, independently review each invoice submitted by the Contractor to determine whether the work performed and expenses incurred are in compliance with the provisions of this Agreement. Except as to any charges for work performed or expenses incurred by Contractor which are disputed by City, or as provided in Section 7.3, City will cause Contractor to be paid within thirty (30) days of receipt of Contractor’s correct and undisputed invoice; however, Contractor acknowledges and agrees that due to City warrant run procedures, the City cannot guarantee that payment will occur within this time period. In the event that City does not cause Contractor to be paid within thirty (30) days of receipt of an undisputed and properly submitted invoice, Contractor shall be entitled to the payment of interest to the extent allowed under Public Contract Code Section 20104.50. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Contractor, not later than seven (7) days after receipt by the City, for correction and resubmission. Returned invoices shall be accompanied by a document setting forth in writing the reasons why the payment request was rejected. Review and payment by the City of any invoice provided by the Contractor shall not constitute a waiver of any rights or remedies provided herein or any applicable law. 2.5 Waiver. Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Contractor. ARTICLE 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. G.10.d Packet Pg. 218 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -9- 01247.0006/867431.1 3.2 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit “D” and incorporated herein by this reference. When requested by the Contractor, extensions to the time period(s) specified in the Schedule of Performance may be approved in writing by the Contract Officer but not exceeding one hundred eighty (180) days cumulatively. 3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Contract Officer in writing of the causes of the delay. The Contract Officer shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the Contract Officer such delay is justified. The Contract Officer’s determination shall be final and conclusive upon the parties to this Agreement. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Agreement, however caused, Contractor’s sole remedy being extension of the Agreement pursuant to this Section. 3.4 Inspection and Final Acceptance. City may inspect and accept or reject any of Contractor’s work under this Agreement, either during performance or when completed. City shall reject or finally accept Contractor’s work within forty-five (45) days after submitted to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as to amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Articles 1 and 5, pertaining to warranty and indemnification and insurance, respectively. 3.5 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). G.10.d Packet Pg. 219 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -10- 01247.0006/867431.1 ARTICLE 4. COORDINATION OF WORK 4.1 Representatives and Personnel of Contractor. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: Martin Esparza Lucio Principal (Name) (Title) It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance. 4.2 Status of Contractor. Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Contractor expressly waives any claim Contractor may have to any such rights. 4.3 Contract Officer. The Contract Officer shall be the City Manager or such person as may be designated by the City Manager. It shall be the Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. G.10.d Packet Pg. 220 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -11- 01247.0006/867431.1 4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. Contractor shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor. 4.5 Prohibition Against Subcontracting or Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. All subcontractors shall obtain, at its or Contractor’s expense, such licenses, permits, registrations and approvals (including from the City) as may be required by law for the performance of any services or work under this Agreement. In addition, neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City. ARTICLE 5. INSURANCE, INDEMNIFICATION AND BONDS 5.1 Insurance Coverages. Without limiting Contractor’s indemnification of City, and prior to commencement of any services under this Agreement, Contractor shall obtain, provide and maintain at its own expense during the term of this Agreement, policies of insurance of the type and amounts described below and in a form satisfactory to City. (a) General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. G.10.d Packet Pg. 221 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -12- 01247.0006/867431.1 (b) Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (c) Professional liability (errors & omissions) insurance. Contractor shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Contractor agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement. (d) Workers’ compensation insurance. Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). (e) Subcontractors. Contractor shall include all subcontractors as insureds under its policies or shall furnish separate certificates and certified endorsements for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein. (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”. 5.2 General Insurance Requirements. (a) Proof of insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (b) Duration of coverage. Contractor shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Contractor, its agents, representatives, employees or subcontractors. (c) Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non- contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. G.10.d Packet Pg. 222 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -13- 01247.0006/867431.1 (d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. (f) Waiver of subrogation. All insurance coverage maintained or procured pursuant to this agreement shall be endorsed to waive subrogation against City, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. (g) Enforcement of contract provisions (non-estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (i) Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. G.10.d Packet Pg. 223 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -14- 01247.0006/867431.1 (k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Contractor agrees to ensure that its subcontractors and any other party involved with the project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to City for review. (n) Agency’s right to revise specifications. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor’s compensation. (o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (p) Timely notice of claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (q) Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 5.3 Indemnification. To the full extent permitted by law, Contractor agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“indemnitors”), or arising from Contractor’s or indemnitors’ G.10.d Packet Pg. 224 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -15- 01247.0006/867431.1 reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or activities of Contractor hereunder; and Contractor agrees to save and hold the City, its officers, agents, and employees harmless therefrom; (c) In the event the City, its officers, agents or employees is made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the negligent performance of or failure to perform the work, operation or activities of Contractor hereunder, Contractor agrees to pay to the City, its officers, agents or employees, any and all costs and expenses incurred by the City, its officers, agents or employees in such action or proceeding, including but not limited to, legal costs and attorneys’ fees. In addition, Contractor agrees to indemnify, defend and hold harmless the Indemnified Parties from, any and all claims and liabilities for any infringement of patent rights, copyrights or trademark on any person or persons in consequence of the use by the Indemnified Parties of articles to be supplied by Contractor under this Agreement, and of which the Contractor is not the patentee or assignee or has not the lawful right to sell the same. Contractor shall incorporate similar indemnity agreements with its subcontractors and if it fails to do so Contractor shall be fully responsible to indemnify City hereunder therefore, and failure of City to monitor compliance with these provisions shall not be a waiver hereof. This indemnification includes claims or liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Contractor in the performance of professional services and work hereunder. The provisions of this Section do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful acts or omissions, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnity obligation shall be binding on successors and assigns of Contractor and shall survive termination of this Agreement. 5.4 Notification of Third-Party Claims. City shall timely notify Contractor of the receipt of any third-party claim relating to the work under this Agreement. City shall be entitled to recover from Contractor its reasonable costs incurred in providing such notification. G.10.d Packet Pg. 225 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -16- 01247.0006/867431.1 5.5 Labor Bond. Concurrently with execution of this Agreement, Contractor shall deliver to the City, a labor and materials bond in the amount of the Contract Sum of this Agreement, in the form provided by the City Clerk, which secures the payment of all persons furnishing labor and/or materials in connection with the work under this Agreement (“Labor Bond”). The Labor Bond required under this Section 5.5 shall contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his power of attorney. The bond shall be unconditional and remain in force during the entire term of the Agreement and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Agreement and pays all labor and materials for work and services under this Agreement. The bond shall be in the form as provided in Exhibit “A- 2” as applicable. 5.6 Sufficiency of Insurer or Surety. Insurance and bonds 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’s 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 Contractor agrees that the minimum limits of the insurance policies and the performance bond required by Section 5.5 may be changed accordingly upon receipt of written notice from the Risk Manager. 5.7 Substitution of Securities. Pursuant to Public Contract Code Section 22300, substitution of eligible equivalent securities for any funds withheld to ensure performance under this Agreement may be permitted at the request and sole expense of the Contractor. Alternatively, the Contractor may, pursuant to an escrow agreement in a form prescribed by Public Contract Code Section 22300, request payment of retentions funds earned directly to the escrow agent at the sole expense of the Contractor. 5.8 Release of Securities. City shall release the Labor Bond when the following have occurred: (a) Contractor has made a written request for release and provided evidence of satisfaction of all other requirements under Article 5 of this Agreement; (b) the Work has been accepted; and (c) after passage of the time within which lien claims are required to be made pursuant to applicable laws; if lien claims have been timely filed, City shall hold the Labor G.10.d Packet Pg. 226 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -17- 01247.0006/867431.1 Bond until such claims have been resolved, Contractor has provided statutory bond, or otherwise as required by applicable law. ARTICLE 6. RECORDS, REPORTS, AND RELEASE OF INFORMATION 6.1 Records. Contractor shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies, certified and accurate copies of payroll records in compliance with all applicable laws, or other documents relating to the disbursements charged to City and services performed hereunder (the “books and records”), as shall be necessary to perform the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services. Any and all such documents shall be maintained in accordance with generally accepted accounting principles and shall be complete and detailed. The Contract Officer shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts from such records. Such records shall be maintained for a period of 3 years following completion of the services hereunder, and the City shall have access to such records in the event any audit is required. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest. Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act. 6.2 Reports. Contractor shall periodically prepare and submit to the Contract Officer such reports concerning the performance of the services required by this Agreement as the Contract Officer shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Agreement. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed. 6.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted G.10.d Packet Pg. 227 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -18- 01247.0006/867431.1 documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City. 6.4 Confidentiality and Release of Information. (a) Information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Contract Officer. (b) Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Contract Officer or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena. (c) If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Contractor’s conduct. (d) Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION 7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other G.10.d Packet Pg. 228 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -19- 01247.0006/867431.1 appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California. 7.2 Disputes. (a) Default; Cure. In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Contractor is in default, the City shall hold all invoices and shall proceed with payment on the invoices only when the default is cured. In the alternative, the City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Contractor does not cure the default, the City may take necessary steps to terminate this Agreement under this Article. Any failure on the part of the City to give notice of the Contractor’s default shall not be deemed to result in a waiver of the City’s legal rights or any rights arising out of any provision of this Agreement. (b) Dispute Resolution. This Agreement is subject to the provisions of Article 1.5 (commencing at Section 20104) of Division 2, Part 3 of the California Public Contract Code regarding the resolution of public works claims of less than $375,000. Article 1.5 mandates certain procedures for the filing of claims and supporting documentation by the Contractor, for the response to such claims by the City, for a mandatory meet and confer conference upon the request of the Contractor, for mandatory non-binding mediation in the event litigation is commenced, and for mandatory judicial arbitration upon the failure to resolve the dispute through mediation. This Agreement hereby incorporates the provisions of Article 1.5 as though fully set forth herein. 7.3 Retention of Funds. Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor’s acts or omissions in performing or failing to perform Contractor’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein. G.10.d Packet Pg. 229 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -20- 01247.0006/867431.1 7.4 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 7.6 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Contractor shall file a claim pursuant to Government Code Sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement. 7.7 Liquidated Damages. Since the determination of actual damages for any delay in performance of this Agreement would be extremely difficult or impractical to determine in the event of a breach of this Agreement, the Contractor and its sureties shall be liable for and shall pay to the City the sum of Five Hundred Dollars ($500) as liquidated damages for each working day of delay in the performance of any service required hereunder, as specified in the Schedule of Performance (Exhibit “D”). The City may withhold from any monies payable on account of services performed by the Contractor any accrued liquidated damages. Pursuant to Government Code Section 4215, Contractor shall not be assessed liquidated damages for delay in completion of the project when such delay was caused by the failure of the public agency or owner of the utility to provide for removal or relocation of utility facilities. 7.8 Termination Prior to Expiration of Term. This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be G.10.d Packet Pg. 230 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -21- 01247.0006/867431.1 such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2. 7.9 Termination for Default of Contractor. If termination is due to the failure of the Contractor to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.2, take over the work and prosecute the same to completion by contract or otherwise, and the Contractor shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that the City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to the Contractor for the purpose of set-off or partial payment of the amounts owed the City as previously stated. 7.10 Attorneys’ Fees. If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney’s fees. Attorney’s fees shall include attorney’s fees on any appeal, and in addition a party entitled to attorney’s fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. 7.11 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Agreement. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment of the Parties. G.10.d Packet Pg. 231 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -22- 01247.0006/867431.1 ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 8.1 Conflict of Interest. Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Contract Officer. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. No officer or employee of the City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to the Agreement which effects his financial interest or the financial interest of any corporation, partnership or association in which he is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement. 8.2 Covenant Against Discrimination. Contractor covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class in the performance of this Agreement. Contractor shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class. 8.3 Unauthorized Aliens. Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City. G.10.d Packet Pg. 232 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -23- 01247.0006/867431.1 ARTICLE 9. MISCELLANEOUS PROVISIONS 9.1 Notices. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton Road, Grand Terrace, California 92313, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. All correspondence relating to this Agreement shall be serialized consecutively. 9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Agreement or any other rule of construction which might otherwise apply. 9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. 9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral agreements between the parties hereto affecting this Agreement and this Agreement supersedes and cancels any and all previous negotiations, arrangements, agreements and understandings, if any, between the parties, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by the Contractor and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 9.5 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. G.10.d Packet Pg. 233 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -24- 01247.0006/867431.1 9.6 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any agreement. Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Agreement void and of no force or effect. Contractor’s Authorized Initials _______ 9.7 Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the parties. [SIGNATURES ON FOLLOWING PAGE] G.10.d Packet Pg. 234 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h -25- 01247.0006/867431.1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year first-above written. CITY: City of Grand Terrace, a municipal corporation _____________________________________ Konrad Bolowich, City Manager ATTEST: _____________________________________ Debra Thomas, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP _____________________________________ Adrian R. Guerra, City Attorney CONTRACTOR: MARTIN ESPARZA LUCIO By: ___________________________________ Name: Title: By: ___________________________________ Name: Title: Address: Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. CONTRACTOR’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY. G.10.d Packet Pg. 235 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2023 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. G.10.d Packet Pg. 236 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2023 before me, ________________, personally appeared ________________, proved to me on the basis of satisfactory evidence to be the person(s) whose names(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: _____________________________________ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT INDIVIDUAL CORPORATE OFFICER _______________________________ TITLE(S) PARTNER(S) LIMITED GENERAL ATTORNEY-IN-FACT TRUSTEE(S) GUARDIAN/CONSERVATOR OTHER_______________________________ ______________________________________ SIGNER IS REPRESENTING: (NAME OF PERSON(S) OR ENTITY(IES)) _____________________________________________ _____________________________________________ ___________________________________ TITLE OR TYPE OF DOCUMENT ___________________________________ NUMBER OF PAGES ___________________________________ DATE OF DOCUMENT ___________________________________ SIGNER(S) OTHER THAN NAMED ABOVE A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. G.10.d Packet Pg. 237 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 A-1 EXHIBIT “A” SCOPE OF WORK I. Contractor shall perform all of the work and comply with all of the specifications and requirements in Exhibit A-1, including, but not limited to, the “General Provisions” and “Special Provisions”. II. Brief description of the work to be performed under this Agreement is as follows (“Project”): A. Demolition of an existing trash enclosure and construction of a new enclosure at a different location at the park, as approved by the Public Works Director, that is far more accessible for guests to use. Work will also include building a retaining concrete curb on the left and rear side of the enclosure, resurfacing of concrete slab, a new wooden cover on top of the enclosure, and installation of existing gates to the new trash enclosure with any needed upgrades. III. In addition to the requirements of Section 6.2, during performance of the work, Contractor will keep the City apprised of the status of performance by delivering status reports on a weekly basis and pursuant to the construction timeline. Contractor shall also deliver status reports as may be required by the City from time to time. IV. All work is subject to review and acceptance by the City including inspections performed by the City’s Building Division, and must be revised by the Contractor without additional charge to the City until found satisfactory and accepted by City. V. Contractor shall provide safe and continuous passage for pedestrian and vehicular traffic in accordance with the Work Area Traffic Control Handbook (WATCH), latest edition. G.10.d Packet Pg. 238 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 EXHIBIT “A-1” G.10.d Packet Pg. 239 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 EXHIBIT “A-2” PAYMENT BOND We, __________, a California corporation, as Principal, and ____________, as Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Grand Terrace (“City”) and those for whose benefit this bond insures in the sum of ___________ ($_______). City and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference herein, for completion of public works for the property(ies) referenced in said agreement. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform. Surety acknowledges that the agreement herein referenced shall be that document as executed by City and Principal. If Principal or any of Principal's contractors or subcontractors, fails to pay any of the persons named in Section 9000 et seq. of the California Civil Code employed in the performance of the agreement for materials furnished or for labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, then Surety shall pay the same in an amount not exceeding the sum specified above, and also shall pay, in case suit is brought upon this bond, such reasonable attorneys' fees as shall be fixed by the court. Surety agrees that it shall pay the amounts due the persons above named and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement. If Surety fails to perform within the times specified in the agreement, Surety shall promptly on demand deposit with City such amount as City may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall extend, notwithstanding any controversy between Principal and City regarding Principal's failure under the agreement. Principal and Surety agree that any payment by Surety pursuant to this paragraph should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligation herein and shall be deemed proper payment as between Principal and Surety. This bond shall insure to the benefit of any and all of the persons named in Section 9000 et seq. of the California Civil Code so as to give a right of action to them or their assigns in any suit brought upon this bond. Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder, or the plans and specifications, or any matters unknown to Surety which might affect Surety's risk, shall in any way affect its obligation on this bond, and it does hereby waive notice thereof. Principal and Surety agree that should City become a party to any action on this bond, that each will also pay City's reasonable attorneys' fees incurred therein in addition to the above sums. G.10.d Packet Pg. 240 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 Executed this _____________ day of ___________, ______. Seal of Corporation ______________ By:______________________________ Authorized Representative of Principal Title: __________ (ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVES) Any claims under this bond may be addressed to: (check one) Surety's agent for service of process in California: ( ) ________________ [name of surety] _________________________ _____________________________ Name Street Number _________________________ _____________________________ Street Number City and State _________________________ _____________________________ City and State Telephone Number _________________________ Telephone Number By:_____________________________ Attorney in Fact or other Representative (ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE) Furnish the name, address and phone number of the company agent as well as the surety company. Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Treasury Department (their bonds will be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the agreement. G.10.d Packet Pg. 241 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) G.10.d Packet Pg. 242 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 EXHIBIT “C” SCHEDULE OF COMPENSATION I. Contractor shall perform all work at the rates submitted as part of Contractor’s Proposal as provided in Exhibit C-1, provided that the City does not expressly or by implication agree that the actual amount of work will correspond with quantities given in Exhibit C- 1, but reserves the right to increase or decrease the amount of any class or portion as deemed necessary or advisable by the City Engineer. Payment will be based upon the actual quantities installed or constructed, unless otherwise specified. II. A retention of five percent (5%) shall be held from each payment as a contract retention to be paid as part of the final payment upon satisfactory completion of services. III. Within the budgeted amounts for each item above, and with the approval of the Contract Officer, funds may be shifted from one item’s subbudget to another so long as the Contract Sum is not exceeded per Section 2.1, unless Additional Work is approved per Section 1.10. IV. The City will compensate Contractor for the Services performed upon submission of a valid invoice. Each invoice is to include: A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate. B. Line items for all materials and equipment properly charged to the Services. C. Line items for all other approved reimbursable expenses claimed, with supporting documentation. D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services. V. The total compensation for the Services shall not exceed $33,000 as provided in Section 2.1 of this Agreement. G.10.d Packet Pg. 243 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 EXHIBIT C-1 BID SCHEDULE FOR ______ G.10.d Packet Pg. 244 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h 01247.0006/867431.1 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Contractor shall perform all work timely and in accordance with plans and specifications as provided in Exhibit A and such work shall be completed by June 23, 2023. II. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. G.10.d Packet Pg. 245 At t a c h m e n t : G r a n d T e r r a c e P u b l i c W o r k s A g r e e m e n t w i t h M a r t i n L u c i o _ J T ' s E d i t s ( S e l e c t i o n o f B i d f o r V e t e r a n s F r e e d o m P a r k T r a s h