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02/13/2024CITY OF GRAND TERRACE CITY COUNCIL AGENDA ● FEBRUARY 13, 2024 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: 831 4505 0293 Passcode: 119290 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 February 13, 2024 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. 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. C. SPECIAL PRESENTATIONS San Bernardino County Fire Protection District FP-5 Presentation - Daniel R. Munsey, Fire Chief/Fire Warden D. 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 Agenda Grand Terrace City Council February 13, 2024 City of Grand Terrace Page 3 Member, Staff Member, or Citizen may request removal of an item from the Consent calendar for discussion. 1. Waive Full Reading of Ordinances on Agenda DEPARTMENT: CITY CLERK 2. Approval of Minutes – Regular Meeting – 01/09/2024 DEPARTMENT: CITY CLERK 3. Proclaim Existence of a Local Emergency RECOMMENDATION: Adopt a Resolution of the City Council of the City of Grand Terrace, California, Ratifying, Declaring and Proclaiming a Local Emergency for the City of Grand Terrace DEPARTMENT: CITY MANAGER/CITY ATTORNEY 4. Revise the Special Event Fees and Deposit Requirement Previously Approved and Established by the City Council in Title 8, of the Grand Terrace Municipal Code RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA TO AMEND THE SPECIAL EVENT FEES AND DEPOSIT REQUIREMENT PURSUANT TO TITLE 8 OF THE GRAND TERRACE MUNICIPAL CODE AND FINDING THE RESOLUTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL EQUALITY ACT (“CEQA”) DEPARTMENT: PLANNING & DEVELOPMENT SERVICES 5. Emergency Management Performance Grant (EMPG) FY2022 RECOMMENDATION: 1. Receive and file the San Bernardino County Office of Emergency Services- Emergency Management Performance Grant (EMPG) Project Approval Notification Letter. 2. Accept the EMPG award in the amount of $14,500. 3. Authorize the in-kind match of $14,500 from the City’s approved FY2023-24 operating budget as required by the EMPG grant. 4. Approve the revenue and expense appropriations in the amounts of $29,000 respectively for the EMPG grant activity. 5. Approve FY22 Emergency Management Performance Grant (EMPG) Subrecipient Agreement. DEPARTMENT: CITY MANAGER Agenda Grand Terrace City Council February 13, 2024 City of Grand Terrace Page 4 6. An Amendment to the Agreement Between the City of Grand Terrace and Michael Baker International - Housing Element Consultant Services for the 2021-2029 Planning Period to Incorporate Additional Public Outreach to Complete HCD Response to Comments and Obtain an Adopted Housing Element RECOMMENDATION: 1. Approve an Amendment No. 1 to 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 $37,110.00, for a total not to exceed contract amount of $77,360; and 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 up to $24,750.00 and General Fund of $16,071.00. DEPARTMENT: PLANNING & DEVELOPMENT SERVICES 7. Consideration of a Resolution of the City Council of the City of Grand Terrace Approving a Form Reimbursement and Indemnification Agreement to be Used in Relation to Development Projects Within the City and Authorizing the Execution Thereof by the City Manager Subject to City Attorney Approval as to Form RECOMMENDATION: 1. Adopt a Resolution approving a Form Reimbursement and Indemnification Agreement and Authorizing the City Manager to Execute the Same Subject to City Attorney Approval as to Form. DEPARTMENT: CITY ATTORNEY 8. Appropriations for Barton Rd Slope Repair RECOMMENDATION: 1. Approve appropriations in the amount of $192,000 for the Barton Rd slope repair. 2. Award a contract to TK Construction for repair services in the amount of $192,000 plus a 10% contingency ($19,200) and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. DEPARTMENT: PUBLIC WORKS 9. Street Rehabilitation Project: FY 2023-24 CIP and City Yard Improvements RECOMMENDATION: 1. Adopt a resolution of the City Council of the City of Grand Terrace in the County of San Bernardino, State of California, adopting the revision to the Fiscal Year 2023-24 Five-Year Capital Improvement Plan (CIP) for Fiscal Years 2023-24 through 2027- 28. 2. Find that the Capital Improvement Project (CIP 2023-1) is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) and authorize the preparation and filing of a Notice of Exemption Agenda Grand Terrace City Council February 13, 2024 City of Grand Terrace Page 5 as applicable. 3. Award the Capital Improvement Project (CIP 2023-24) to Hardy & Harper, Inc. on the Base Bid and approve the public works agreement with Hardy & Harper, Inc., in the amount of $1,188,000, plus a 10% contingency ($118,800) for the construction of the Capital Improvement Project (CIP 2023-24), and authorize the City Manager to execute the agreement, subject to City Attorney approval as to form. 4. Award a contract to Willdan for Inspection Services for Capital Improvement Project (CIP 2023-24) in the amount of $36,240 plus a 10% contingency ($3,624), and authorize the City Manager to execute the agreement, subject to City Attorney approval as to form. DEPARTMENT: PUBLIC WORKS 10. Concrete Rehabilitation Project - Sidewalk and Ramp Replacement RECOMMENDATION: 1. Find that the Concrete Rehabilitation Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) and authorize the preparation and filing of a Notice of Exemption as applicable. 2. Award the Concrete Rehabilitation Project to Hardy & Harper, Inc., on the Base Bid and approve the public works agreement with Hardy & Harper, Inc., in the amount of $84,315.00 plus a 10% contingency ($8,431.50) and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. 3. Award a contract to Willdan for Inspection Services in the amount of $18,120 plus a 10% contingency ($1,812) and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. DEPARTMENT: PUBLIC WORKS E. PUBLIC HEARINGS 11. Introduction and First Reading by Title Only, with Further Reading Waived an Ordinance Amending Title 12.08 Street Excavation RECOMMENDATION: Introduction and First Reading by Title Only, with Further Reading Waived an Ordinance Amending Title 12.08 Street Excavation DEPARTMENT: PUBLIC WORKS 12. Prioritization of Funding Recommendations for Community Development Block Grant (CDBG) Funds for Program Year 2024-25 RECOMMENDATION: 1) Conduct a public hearing for the prioritization of eligible applications for 2024-25 Community Development Block Grant (CDBG) funding; and, Agenda Grand Terrace City Council February 13, 2024 City of Grand Terrace Page 6 2) Prioritize funding allocations and authorize staff to submit the City's CDBG funding recommendation to the County of San Bernardino Economic Development Agency. DEPARTMENT: PUBLIC WORKS F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS 13. Information on the Process of Implementation, the Difference Between a General Purpose and Special Purpose Tax, the Requirements for Adoption by City Council Action or Adoption by Initiative, the Requirement for Each Process, and the Timing Associated with Placing the Item on the Ballot RECOMMENDATION: City staff recommends that the City Council: 1. Direct staff to prepare necessary resolutions and an ordinance to establish a general Transactions and Use Tax; 2. Provide direction to utilize a rate of 1.00% or some other rate. DEPARTMENT: CITY MANAGER 14. City Council to Submit Its Opposition to the Public Utilities Code Tax Provision, Section 739.9 Embeddded into Assembly Bill 205 (2022) RECOMMENDATION: That the City Council Submit its Opposition to Public Utilities Code Tax Provision, Section 739.9 Embedded into Assembly Bill 205 (2022) DEPARTMENT: CITY MANAGER 15. Priority Projects FY 2023-2024_FY2024-2025 Review RECOMMENDATION: That the City Council review and provide feedback and direction as appropriate. DEPARTMENT: CITY MANAGER H. FUTURE AGENDA ITEMS - NONE I. CITY COUNCIL COMMUNICATIONS Council Member Kenneth J. Henderson Council Member Jeff Allen Agenda Grand Terrace City Council February 13, 2024 City of Grand Terrace Page 7 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 REAL PROPERTY NEGOTIATORS, pursuant to Government Code Section 54956.8 Property: APNs 1167-151-22, 2267-151-74, 1167-151-68, 1167-151-71, 1167-161-03 and 1167-161-04 City negotiator: Konrad Bolowich, City Manager Negotiating parties: Lewis Land Developers Under negotiation: Price and terms of payment 2. CONFERENCE WITH LABOR NEGOTIATORS, pursuant to Government Code Section 54957.6 Agency Designated Representatives: Konrad Bolowich, City Manager Adrian R. Guerra, City Attorney Employee Organization: Teamsters Local 1932 Unrepresented Employees City Manager, Finance Director, City Clerk, Director of Public Works, Director of Planning & Development Services, Senior Management Analyst (Two Positions), Management Analyst 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION, pursuant to Government Code Section 54956.9(a) Case Name: Sunny Days, LLC v. City of Grand Terrace Case No.: CIV SB 2107692 4. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION, pursuant to Government Code Section 54956.9(a) Case Name: Ben Eilenberg, an individual v. City of Grand Terrace, et al. Case No.: CIV SB 2200100 RECONVENE TO OPEN SESSION REPORT OUT OF CLOSED SESSION Agenda Grand Terrace City Council February 13, 2024 City of Grand Terrace Page 8 L. ADJOURN The Next Regular City Council Meeting will be held on Tuesday, February 27, 2024 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. CITY OF GRAND TERRACE CITY COUNCIL MINUTES ● JANUARY 9, 2024 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, January 9, 2024, at 6:00 p.m. Invocation The Invocation was given by Pastor Mark Matthews from Grand View Baptist Church. Pledge of Allegiance The Pledge of Allegiance was led by Mayor Pro Tem Doug Wilson. AB 2449 Disclosures None. Attendee Name Title Status Arrived Bill Hussey Mayor Present Doug Wilson Mayor Pro Tem Present Sylvia Rodriguez-Robles Council Member Present 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 Konrad Bolowich, City Manager removed Agenda Item No. G.7 from the agenda. B. PUBLIC COMMENT Christina Phelps, Grand Terrace expressed her concern regarding the increase in the City’s Special Event permit fee. Robert Sanchez, Grand Terrace expressed his concern regarding JC Wallace House. D.2 Packet Pg. 9 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J a n 9 , 2 0 2 4 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 January 9, 2024 City of Grand Terrace Page 2 Monica Helton, Grand Terrace expressed her concern regarding JC Wallace House. Bobbie Forbes, Grand Terrace expressed her concern regarding JC Wallace House. Alex Howard, Grand Terrace expressed her concern regarding homelessness in the city. C. SPECIAL PRESENTATIONS - NONE D. CONSENT CALENDAR RESULT: APPROVED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Kenneth J. Henderson, Council Member AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson 1. Waive Full Reading of Ordinances on Agenda 2. Approval of Minutes – Regular Meeting – 12/12/2023 APPROVE THE REGULAR MEETING MINUTES OF DECEMBER 12, 2023. 3. September 14, 2023, October 12, 2023 and November 9, 2023 Parks & Recreation Advisory Committee Meeting Minutes Updates RECEIVE AND FILE. 4. Approval of the November-2023 Check Register in the Amount of $676,339.18 APPROVE THE CHECK REGISTER NO. 11302023 IN THE AMOUNT OF $676,339.18 AS SUBMITTED, FOR THE MONTH ENDING NOVEMBER 30, 2023. 5. Approval of the December-2023 Check Register in the Amount of $842,004.13 APPROVE THE CHECK REGISTER NO. 12312023 IN THE AMOUNT OF $842,004.13 AS SUBMITTED, FOR THE MONTH ENDING DECEMBER 31, 2023. E. PUBLIC HEARINGS 6. Introduction and First Reading by Title Only, with Further Reading Waived an Ordinance Amending Title 12.08 Street Excavation Shanita Tillman, Senior Management Analyst gave the staff report and PowerPoint presentation for this item. Mayor Hussey opened the public hearing for this item at 6:33 p.m. D.2 Packet Pg. 10 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J a n 9 , 2 0 2 4 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 January 9, 2024 City of Grand Terrace Page 3 PUBLIC COMMENT None. Mayor Hussey closed the public hearing for this item at 6:33 p.m. Mayor Pro Tem Wilson moved, with a second from Council Member Kenneth J. Henderson, to continue the moratorium ordinance to a future meeting that includes language that any excavation and repaving on Mt. Vernon Avenue, Barton Road, Michigan Street and Observation Drive, and any other street the City Engineer deems necessary, is limited to jack and bore only. RESULT: CONTINUED [UNANIMOUS] Next: 2/13/2024 6:00 PM MOVER: Doug Wilson, Mayor Pro Tem SECONDER: Kenneth J. Henderson, Council Member AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson F. UNFINISHED BUSINESS - NONE G. NEW BUSINESS 7. Community Benefit Fund Grant Award to the Grand Terrace Foundation of Grand Terrace Youth in the Amount of $2,000.00 Christine Clayton, Finance Director gave the Staff Report on this item. Christy Boal, Grand Terrace spoke on behalf of the Foundation of Grand Terrace for Youth in support of the item. Council Member Henderson moved, with a second from Mayor Pro Tem Wilson that the City Council approve the Community Benefit Fund application submitted by the Foundation of Grand Terrace for Youth in the amount of $2,000.00 as a scholarship that the Foundation of Grand Terrace for Youth will administer, that the City Council consider future changes to the Community Benefit Fund regarding a fellowship program and include the City Manager’s potential changes to the program moving forward. RESULT: APPROVED [UNANIMOUS] MOVER: Kenneth J. Henderson, Council Member SECONDER: Doug Wilson, Mayor Pro Tem AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson D.2 Packet Pg. 11 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J a n 9 , 2 0 2 4 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 January 9, 2024 City of Grand Terrace Page 4 8. Establishment of a Transactions and Use Tax Adrian Guerra, City Attorney gave the Staff Report and PowerPoint Presentation on this item. PUBLIC COMMENT Bobbie Forbes, Grand Terrace conveyed her support for the agenda item. Michelle Sabino, Grand Terrace conveyed her support for the agenda item. Mayor Hussey moved, with a second from Council Member Allen, to bring back the item to the first meeting in February 2024 for further discussion and provide the City Council with the associated costs of bringing a tax initiative to the voters. RESULT: APPROVED [UNANIMOUS] MOVER: Bill Hussey, Mayor SECONDER: Jeff Allen, Council Member AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson H. FUTURE AGENDA ITEMS 1. Motion: Motion: Discuss the potential opposition by the City Council to public utilities proposed high fixed utility charge. Requested by: Council Member Henderson RESULT: ADOPTED [UNANIMOUS] MOVER: Kenneth J. Henderson, Council Member SECONDER: Jeff Allen, Council Member AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson 2. Motion: Motion: Review how Conditional Use Permits are issued by the city. Requested by: Council Member Allen RESULT: ADOPTED [UNANIMOUS] MOVER: Jeff Allen, Council Member SECONDER: Kenneth J. Henderson, Council Member AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson 3. Motion: Motion: Request a receive and file update report on JC Wallace House. Requested by: Council Member Rodriguez-Robles D.2 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 J a n 9 , 2 0 2 4 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 January 9, 2024 City of Grand Terrace Page 5 RESULT: ADOPTED [UNANIMOUS] MOVER: Sylvia Rodriguez-Robles, Council Member SECONDER: Bill Hussey, Mayor AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson 4. Motion: Motion: Establish a Subcommittee to review the operations of JC Wallace House to ensure they are in compliance. Requested by: Mayor Hussey RESULT: ADOPTED [4 TO 1] MOVER: Bill Hussey, Mayor SECONDER: Sylvia Rodriguez-Robles, Council Member AYES: Bill Hussey, Sylvia Rodriguez-Robles, Jeff Allen, Kenneth J. Henderson NAYS: Doug Wilson 5. Motion: Motion: Review Special Event permit fees and consider revision. Requested by: Mayor Hussey RESULT: ADOPTED [UNANIMOUS] MOVER: Bill Hussey, Mayor SECONDER: Kenneth J. Henderson, Council Member AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson 6. Motion: Motion: Discuss an ordinance and administer violations on pan handling in the city. Requested by: Mayor Hussey RESULT: ADOPTED [UNANIMOUS] MOVER: Bill Hussey, Mayor SECONDER: Doug Wilson, Mayor Pro Tem AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson 7. Motion: Motion: Discuss street vendor regulations. Requested by: Mayor Hussey RESULT: ADOPTED [UNANIMOUS] MOVER: Bill Hussey, Mayor SECONDER: Kenneth J. Henderson, Council Member AYES: Hussey, Wilson, Rodriguez-Robles, Allen, Henderson I. CITY COUNCIL COMMUNICATIONS Council Member Kenneth J. Henderson Nothing to Report. D.2 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 J a n 9 , 2 0 2 4 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 January 9, 2024 City of Grand Terrace Page 6 Council Member Jeff Allen Nothing to Report. Council Member Sylvia Robles Council Member Sylvia Robles attended the following: • Council Member Rodriguez-Robles attended the San Bernardino County Transportation Authority’s Board of Directors meeting on January 3, 2024. Mayor Pro Tempore Doug Wilson Nothing to Report. Mayor Bill Hussey Mayor Hussey reported on the following: • Mayor Hussey announced that January 9, 2024, is National Law Enforcement Day J. CITY MANAGER COMMUNICATIONS Nothing to Report. K. RECESS TO CLOSED SESSION Mayor Hussey recessed the Regular Meeting of the City Council to closed session at 8:25 p.m. CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION pursuant to Government Code Section 54956.9(a) Case Name: Ben Eilenberg, an individual v. City of Grand Terrace, et al. Case No.: CIV SB 2200100 RECONVENE TO OPEN SESSION Mayor Hussey reconvened the Regular Meeting of the City Council from closed session at 8:40 p.m. REPORT OUT OF CLOSED SESSION Mayor Hussey announced there was no reportable action taken and direction was given to staff. D.2 Packet Pg. 14 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J a n 9 , 2 0 2 4 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 January 9, 2024 City of Grand Terrace Page 7 L. ADJOURN Mayor Pro Tem Wilson adjourned the Regular Meeting of the City Council at 8:41 p.m. The Next Regular City Council Meeting will be held on Tuesday, January 23, 2024, at 6:00 p.m. _________________________________ _________________________________ Bill Hussey, Mayor Debra L. Thomas, City Clerk D.2 Packet Pg. 15 Mi n u t e s A c c e p t a n c e : M i n u t e s o f J a n 9 , 2 0 2 4 6 : 0 0 P M ( C o n s e n t C a l e n d a r ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Proclaim Existence of a Local Emergency PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: Adopt a Resolution of the City Council of the City of Grand Terrace, California, Ratifying, Declaring and Proclaiming a Local Emergency for the City of Grand Terrace 2030 VISION STATEMENT: This staff report supports Our Mission to preserve and protect our community, Goal #2, Maintaining Public Safety and Goal #5, Engage in Proactive Communication. BACKGROUND: In early February of 2024, a powerful, slow moving atmospheric river storm struck California and continued for several days threatening life and safety, public and private property and structures, and other critical infrastructure. The National Weather Service issued multiple Winter Storm Warnings, High Wind Warnings, Wind Advisories, and Flood and Flash Flood Watches throughout the State in anticipation of the potential impacts from the early February 2024 storms, which included dangerous and life-threatening flooding and debris flows, and damaging wind causing property damage and power outages. DISCUSSION: Currently, there are two Governor’s proclamations for two disasters. Starting December 28, 2023, through February 2, 2024, San Diego, Ventura, Humboldt, Imperial, Monterey, San Mateo and Santa Cruz counties were proclaimed disaster areas. Starting February 3, 2024, Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo and Santa Barbara counties were added to the Governor’s disaster proclamation. The Federal Highway Administration's (FHWA) Emergency Relief (ER) Program was authorized by Congress to repair or reconstruct federal-aid routes that have suffered serious damage as a direct result of a declared event (see Title 23, United States Code, Section 125). The program is available to State and Local Agency transportation departments with roads suffering serious damage from natural disasters or catastrophic failures from external causes. ER funding is intended to supplement resources from States, localities and other Federal agencies to help in the repair of facilities damaged D.3 Packet Pg. 16 by eligible events. Local agencies reporting disaster damage information must report their damages to both CalOES and Caltrans, separately. CalOES and Caltrans separately administer different disaster relief funding programs, with very different requirements. For this reason, local agencies will need to make sure they are sharing all their disaster damage information separately, with both CalOES and Caltrans. A resolution of the City Council of the City of Grand Terrace, California, declaring a local emergency has been attached to this staff report for City Council review and approval as the Department of Transportation (Caltrans) will need this information so that the City can participate the Emergency Relief Program. FISCAL IMPACT: None at this time. ATTACHMENTS: • 2024-xx - Declare Local Emergency (DOC) APPROVALS: Konrad Bolowich Completed 02/08/2024 3:11 PM City Manager Completed 02/08/2024 3:12 PM City Council Pending 02/13/2024 6:00 PM D.3 Packet Pg. 17 CC Reso No. 2024-xx Page 1 of 2 February13, 2024 RESOLUTION NO. 2024- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, RATIFYING, DECLARING AND PROCLAIMING A LOCAL EMERGENCY FOR THE CITY OF GRAND TERRACE WHEREAS, the California Emergency Services Act, Government Code Sections 85589(c) and 8630 authorize the proclamation of a local emergency when conditions of a disaster or extreme peril to the safety of persons and property within the territorial limits of a city exist; and WHEREAS, pursuant to Government Code Section 8630 such an emergency may be proclaimed by the governing body or by an official designated by ordinance adopted by the governing body; and WHEREAS, in early February 2024 a powerful, slow moving atmospheric river storm struck California beginning February 3, 2024, and is expected to continue for several days threatening life and safety, public and private property and structures, and other critical infrastructure; and WHEREAS, the National Weather Service has issued multiple Winter Storm Warnings, High Wind Warnings, Wind Advisories, and Flood and Flash Flood Watches throughout the State in anticipation of the potential impacts from the early February 2024 storms, which include dangerous and life-threatening flooding and debris flows, and damaging wind causing property damage and power outages. WHEREAS, the City of Grand Terrace has experienced direct impacts from these weather events causing damage to local infrastructure. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace, as follows: 1. The Recitals set forth above are true and correct and are incorporated herein by this reference. 2. That the City Council ratifies, declares and proclaims the existence of a local emergency throughout the City; and 3. That all City Departments and Personnel are instructed and required to continue to perform all duties and responsibilities to represent the City in this matter to prevent and abate the emergency and receive, process, and coordinate all inquiries and requirements necessary to obtain whatever State D.3.a Packet Pg. 18 At t a c h m e n t : 2 0 2 4 - x x - D e c l a r e L o c a l E m e r g e n c y ( P r o c l a i m E x i s t e n c e o f a L o c a l E m e r g e n c y - 2 0 2 4 ) CC Reso No. 2024-xx Page 2 of 2 February13, 2024 and Federal Assistance may become available to the City and/or to the citizens of the City who may be affected by the emergency; and 4. That the City Clerk is hereby instructed to forward copies of this Resolution to the Governor of the State of California, the Director of the Office of Emergency Services of the State of California, the San Bernardino County Office of Emergency Services and the San Bernardino County Board of Supervisors. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 13th day of February 2024. _______________________________ Bill Hussey, Mayor ATTEST: Debra L. Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra City Attorney D.3.a Packet Pg. 19 At t a c h m e n t : 2 0 2 4 - x x - D e c l a r e L o c a l E m e r g e n c y ( P r o c l a i m E x i s t e n c e o f a L o c a l E m e r g e n c y - 2 0 2 4 ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Revise the Special Event Fees and Deposit Requirement Previously Approved and Established by the City Council in Title 8, of the Grand Terrace Municipal Code PRESENTED BY: Antonio Lopez, Planning Technician RECOMMENDATION: ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA TO AMEND THE SPECIAL EVENT FEES AND DEPOSIT REQUIREMENT PURSUANT TO TITLE 8 OF THE GRAND TERRACE MUNICIPAL CODE AND FINDING THE RESOLUTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL EQUALITY ACT (“CEQA”) 2030 VISION STATEMENT: This staff report supports Goal #4 "Develop and Implement Successful Partnerships", specifically, the action item “Work Collaboratively with Community Groups and Private and Public Sector Agencies to Facilitate the Delivery of Services Benefiting Youth, Seniors & Our Community.” BACKGROUND: Article XI, section 7 of the California constitution provides cities with broad power to make and enforce within its limits all local, police, sanitary, and other ordinances, and regulations not in conflict with general laws. In exercising this power, the legislative body of any county or city may establish reasonable fees for the processing of permits and regulatory activities, but the fees shall not exceed the amount reasonably required to administer the processing of such permits and the regulatory activities. Title 8 of the Grand Terrace Municipal Code regulates Special Event permits, and Section 8.50.040 requires that special events on public property or private property require a special event permit. A “special event,” defined under Section 8.50.030, includes: • A commercial event (e.g., a fair, carnival, farmers market), • A spectator sport (e.g., volleyball, hockey, basketball, baseball, soccer), • Any organized athletic event (e.g., races, runs, soccer games, baseball games), • A community event (e.g., park clean-up, a hike, or nature walk), • Parades, • Any mixed free speech special event, • Any event that: will use amplified sound; may interfere with traffic, ingress, or D.4 Packet Pg. 20 egress, or will use structures or equipment that require health and safety inspections. Section 8.50.060 requires that applicants for a special event permit also pay an application fee and administrative review fee (if applicable), and require that permit holders pay any additional costs of any other City services and charges that are billed after the expiration of the permit. These fee amounts have been set by City Council resolution, pursuant to Section 8.50.100. On October 1st, 2023, a new fee schedule was adopted resulting in the price increase of a Special Event permit fees going from $310.00 (Minor Event, 200 people or less), $620.00 (Mid-Size Event, 201-500 people), and $620.00 deposit with actual costs (Major Event, 501+ people), to $1,230.00 plus a security deposit for a minor event, $1,435.00, plus a security deposit determined by staff for a mid-size event, and $2,000 deposit with actual costs plus a security deposit determined by staff for a major event. The City’s current Special Event Fee schedule is attached as “Exhibit 1.” On the January 9th, 2024, City Council meeting the City Council of the City of Grand Terrace directed City Staff to provide recommendations regarding amending the current Special Event Permit Fees to allow more accessibility to all members of the community wishing to have special events within the city. DISCUSSION: Since the current Special Event Permit Fees were adopted on October 1, 2023, City staff has received public comment on several occasions that the Special Event Fees were not feasible and accessible for those wishing to have special events here in the city, especially for non-profit groups-community based organizations and grass root groups. Currently the City of Grand Terrace does have the option for those wishing to have a special event to apply for the Community Benefit Fund which allows the City Council to waive the Special Event Permit fee. However, but the grant has only a limited budget of $5,000, which at the current Special Event Permit fees will allow for only four to five applicants to receive the funds to be able to host special events. Therefore, based on the City Council’s direction and feedback from the public, and in order to make the Special Event Permit for accessible for all community-based groups, non-profit groups, residents and all wishing to make a positive impact within the City of Grand Terrace, staff recommends that the City Council adopt the proposed Resolution to amend the current Special Event Permit Fees in Exhibit 1 to reduce Special Event Permit Fees for Minor Events (200 people or less), Mid-Size Events (201-500 people), and Major Events (501+ people) to $0.00. Further, amending the Special Event Permit Fees supports Goal #4 of the 2030 Vision Statement, “Develop and Implement Successful Partnerships,” by working collaboratively with community groups and private D.4 Packet Pg. 21 and public sector agencies to facilitate the delivery of services benefiting youth, seniors & our community. The City’s proposed Special Event Fee schedule reflecting these reduced fees is attached as “Exhibit 2.” FISCAL IMPACT: The adoption of the Resolution will likely result in an increase in community members, non-profit groups, and residents applying for Special Event Permits. An analysis done by staff shows that from fiscal year 2019 until present, Special Events accumulated a total of $6,243.50 in fees, after Community Benefit Grants were awarded. These amounts are illustrated in the below chart: Based on community feedback and the current number of pending or complete Special Event Permit applications, staff projects that the City is likely to receive less permit applications from community members, non-profit groups, and residents than from 2019 to present due to the over 50% increase in Special Permit Event Fees adopted in October 2023. Staff projects that reducing Special Event Permit Fees for Minor Events (200 people or less), Mid-Size Events (201-500 people), and Major Events (501+ people) to $0.00 will attract more community members, non-profits, local organizations to host special events in the City of Grand Terrace, resulting in the creation of a stronger community and bolstering community engagement from residents, and organizations located within the City of Grand Terrace. ATTACHMENTS: • (GT) Resolution Adjusting Special Event Fee 2024(957862.2)(DOCX) APPROVALS: Antonio Lopez Completed 02/06/2024 3:57 PM Finance Completed 02/06/2024 4:20 PM City Manager Completed 02/07/2024 2:34 PM D.4 Packet Pg. 22 City Council Pending 02/13/2024 6:00 PM D.4 Packet Pg. 23 01247.0005/957862.2 RESOLUTION NO. 2024- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA TO AMEND THE SPECIAL EVENT FEES AND DEPOSIT REQUIREMENT PURSUANT TO TITLE 8 OF THE GRAND TERRACE MUNICIPAL CODE AND FINDING THE RESOLUTION EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL EQUALITY ACT (“CEQA”) WHEREAS, Article XI, section 7 of the California Constitution provides cities with broad police power to make and enforce within its limits all local, police, sanitary, and other ordinances, and regulations not in conflict with general laws; and WHEREAS, this broad police power includes the ability to impose administrative fees for business regulations and provision of public services to reimburse the City’s costs of providing such regulations and services (“Fees”); and WHEREAS, Title 8 of the Grand Terrace Municipal Code requires that special events on public property or private property require a Special Event Permit granted by the City; and WHEREAS, Section 8.50.100 of Title 8 of the Grand Terrace Municipal Code establishes that Special Event Permit Fees, charges and deposit costs are set by resolution of the City Council. The City’s current Special Event Permit Fees are attached hereto as “Exhibit 1”; and WHEREAS, the City Council adopted Ordinance No. 330 in May 2020, which authorized the City Council to adopt, establish, and adjust certain fees and deposits by resolution, including any fees or deposits established in Titles 4, 5, 6, 8, 10, 12, and 13 of the Grand Terrace Municipal Code; and WHEREAS, Resolution 2020-12 allows the City Council to review the complete fee schedule and make changes as necessary by resolution rather than through an ordinance anytime a particular fee needs to be adjusted; and WHEREAS, at the January 9, 2024, regular City Council meeting, the City Council directed staff to recommend and provide options regarding potential adjustments to the Special Event Permit Fee defined under Section 8.50.100 in order to allow cost feasibility and access to all desiring to have special events within the City; and WHEREAS, the City Council now seeks to adjust the Special Event Permit Fees and security deposits required to obtain Special Event Permits for Minor Events, Mid-Size Events, and Major Events, based on staff recommendations, in order to allow price feasibility and access to all wishing to have Special Events within the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES RESOLVE, DETERMINE, AND AS FOLLOWS: Section 1. Recitals. The City Council finds that the above recitals are true and correct and are incorporated herein by this reference. Section 2. Adoption of Fees. The City Council has duly considered the proposed amended Special Event Permit Fee schedule, attached hereto as “Exhibit 2” and incorporated herein by this reference, and hereby approves and adopts Exhibit 2 as the fee schedule for Special Event Permits pursuant to Section 8.50.100 of the Grand Terrace Municipal Code. This Resolution supersedes all prior resolutions concerning all Special Event Permit Fees specified in D.4.a Packet Pg. 24 At t a c h m e n t : ( G T ) R e s o l u t i o n A d j u s t i n g S p e c i a l E v e n t F e e 2 0 2 4 ( 9 5 7 8 6 2 . 2 ) ( C C R e s o - S p e c i a l E v e n t P e r m i t F e e U p d a t e ) 01247.0005/957862.2 the fee schedule found in Exhibit 1. Section 3. CEQA Exemption. The City Council finds that this Resolution is exempt from the California Environmental Quality Act (“CEQA”) under Section 15061(b)(3) of the CEQA Guidelines, which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where, as here, it can be seen with certainty that there is no possibility that the activity in question would have a significant effect on the environment, the activity is not subject to CEQA. Section 4. Severability. 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. Section 5. Certification. The City Clerk shall certify the adoption of this Resolution, which shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 13th day of February 2024. Bill Hussey Mayor ATTEST: Debra L. Thomas City Clerk APPROVED AS TO FORM: Adrian R. Guerra, City Attorney D.4.a Packet Pg. 25 At t a c h m e n t : ( G T ) R e s o l u t i o n A d j u s t i n g S p e c i a l E v e n t F e e 2 0 2 4 ( 9 5 7 8 6 2 . 2 ) ( C C R e s o - S p e c i a l E v e n t P e r m i t F e e U p d a t e ) 01247.0005/957862.2 Exhibit 1: Current Special Event Permit Fees D.4.a Packet Pg. 26 At t a c h m e n t : ( G T ) R e s o l u t i o n A d j u s t i n g S p e c i a l E v e n t F e e 2 0 2 4 ( 9 5 7 8 6 2 . 2 ) ( C C R e s o - S p e c i a l E v e n t P e r m i t F e e U p d a t e ) 01247.0005/957862.2 Exhibit 2: Proposed Special Event Permit Fees D.4.a Packet Pg. 27 At t a c h m e n t : ( G T ) R e s o l u t i o n A d j u s t i n g S p e c i a l E v e n t F e e 2 0 2 4 ( 9 5 7 8 6 2 . 2 ) ( C C R e s o - S p e c i a l E v e n t P e r m i t F e e U p d a t e ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Emergency Management Performance Grant (EMPG) FY2022 PRESENTED BY: Darrell Gipson, Code Enforcement/Animal Control Officer RECOMMENDATION: 1. Receive and file the San Bernardino County Office of Emergency Services-Emergency Management Performance Grant (EMPG) Project Approval Notification Letter. 2. Accept the EMPG award in the amount of $14,500. 3. Authorize the in-kind match of $14,500 from the City’s approved FY2023-24 operating budget as required by the EMPG grant. 4. Approve the revenue and expense appropriations in the amounts of $29,000 respectively for the EMPG grant activity. 5. Approve FY22 Emergency Management Performance Grant (EMPG) Subrecipient Agreement. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensuring Our Fiscal Viability” and Goal #2 "Maintain Public Safety". BACKGROUND: The Emergency Management Performance Grant (EMPG) is a program that supports comprehensive emergency management at the local level and encourages the improvement of mitigation, preparedness, response, and recovery capabilities for all hazards and threats. Funds provided under the EMPG program must be used to support local emergency management program activities that contribute to the San Bernardino County Operational Area’s capability to prevent, prepare for, mitigate against, respond to, and recover from emergencies and disasters, whether natural or man-made. The EMPG establishes standards to ensure a uniform level of preparedness across jurisdictions. The eligible activities covered by the grant include planning, organization, equipment training, and exercises, which provide the foundation for an effective and D.5 Packet Pg. 28 consistent response to any threatened or actual disaster or emergency, regardless of the cause. The EMPG is granted on a 50/50 match basis, which requires the city to match at a minimum the amount of the funding received. DISCUSSION: On July 26, 2023, the City received approval from San Bernardino County Office of Emergency Services for a grant application submitted in the amount of $14,500 to be used in support of the City’s Emergency Operations Center (EOC) and Community Emergency Response Team (CERT). The grant allows the City to improve communication and response capabilities by repairing existing equipment and purchasing needed equipment utilized for supporting the City’s “Special Needs and Planning.” The City has limited resources; therefore, the grant was requested by the City Manager as a resource to update existing equipment and to purchase needed equipment to improve the EOC and CERT preparedness, prevention, preparation for, mitigation against, response to, and recovery from emergencies and disasters. The projects approved by San Bernardino County are listed below: No. Equipment Description Project Cost A Off Road Emergency Vehicle $21,000 B Handheld Emergency Radios $8,000 RECOMMENDATION: Staff is requesting that City Council receive and file the San Bernardino County Office of Emergency Services-Emergency Management Performance Grant (EMPG) Project Approval Notification Letter (attached), accepts the EMPG award in the amount of $14,500 (attached), authorize the in-kind match of $14,500 from the City’s Approved FY2023-24 operating budget as required by the EMPG grant, and approves the revenue and expense appropriations in the amount of $29,000 respectively for the EMPG grant activity. FISCAL IMPACT: The City will receive a federal reimbursement grant in the amount of $14,500. Staff is requesting that City Council authorize grant revenue of $14,500 and a transfer from the General Fund of $14,500 for the City's match and expense appropriations in the amount of $29,000 as shown in the table below to account for the grant expenditures. The City will be reimbursed by the federal program after the project is completed. D.5 Packet Pg. 29 Emergency Management Preparedness Grant (EMPG) Fund: Fund Description Amounts Revenue/Transfers 75 75-300-33 Grant Revenues EMPG $14,500.00 75 75-800-10 Transfer from Fund 10 $14,500.00 Total Revenues/Transfers $29,000.00 Expenditures 75 75-370-220-000-000 Special Departmental Expense $29,000.00 Total Expenditures $29,000.00 10 10-999-999-075-000 Transfer to Fund 75 $14,500.00 ATTACHMENTS: • FY22 EMPG Project Approval Notification Letter (PDF) • FY20 EMPG Subrecipient Agreement (PDF) APPROVALS: Darrell Gipson Completed 01/29/2024 10:56 AM Finance Completed 01/30/2024 12:31 PM City Manager Completed 01/30/2024 1:47 PM City Council Pending 02/13/2024 6:00 PM D.5 Packet Pg. 30 D.5.a Packet Pg. 31 At t a c h m e n t : F Y 2 2 E M P G P r o j e c t A p p r o v a l N o t i f i c a t i o n L e t t e r ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.a Packet Pg. 32 At t a c h m e n t : F Y 2 2 E M P G P r o j e c t A p p r o v a l N o t i f i c a t i o n L e t t e r ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 33 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 34 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 35 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 36 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 37 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 38 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 39 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 40 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 41 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 42 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 43 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 44 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 45 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 46 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 47 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 48 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 49 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 50 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 51 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 52 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 53 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 54 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 55 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 56 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Attachment G FY20 EMPG Project Narrative and Work Plan Page 1 of 3 NOTE: Complete a separate Project Narrative and Work Plan for each proposed project Applicant (Jurisdiction’s Name): City of Grand Terrace Project Title: EOC and CERT equipment and materials AEL No.:N/A State Strategy Goal and Objective Supported by the Project: This project supports State strategy goal an objective No.4, to strengthen communications capabilities through planning, governance, technology, and equipment, and No. 8, to enhance incident recovery capabilities. Indicate the State Priority Supported by the Project (Select All That Apply): 1. Information Management 6. Emergency Responder Credentialing 2. Care and Sheltering x 7. Planning 3. Alert and Warning 8. Exercises x 4. Special Needs 9. Regional Catastrophic Planning 5. Mass Evacuation 10. COOP and COG Planning Please answer the following questions: 1. Provide a brief description (maximum 2 paragraphs) of the proposed project and how it supports the State priority. Grand Terrace, a city with limited resources, wishes to utilize the FY20 EMP Grand funding (matching) to support the mission of providing humanitarian services in the event of public need and assistance. Grand Terrace has an established Emergency Operations Center (EOC) and a Community Emergency Response Team (CERT) focused on training community members on how to safely prepare to and respond to disasters. In order to build up the EOC and improve communication capabilities we would like to get a laptop, portable printer, Office software, a bag to make the computer and equipment portable. A portable generator has been included to be utilized by either the EOC or CERT when needed. In addition, we would like to include some type of communication software to improve communication between the City and the community (emergency notifications), we have listed Hootsuite Software; however, we are also considering Dataminr. The City reinstated the City’s CERT Volunteer group in 2018. The CERT trailer needs to be repaired to be able to function properly in case of an emergency. Much of the originally purchased equipment needs replacement or, more efficient equipment will be necessary. The City’s CERT trailer stored with essential equipment needs complete replacement. Emergency food, lighting, and radios are obsolete. The CERT inventory needs are listed on the proposed equipment list (H1). 2. Provide a detailed description on how you plan to manage your proposed project. Directed by the City’s designated Emergency Manager, G. Harold Duffey, Planning and Development Services Director/Staff will develop a strategy to manage these resources, provide training by priority. A work program will be initiated to identify how inventory, maintenance, equipment, and supplies are resourced and maintained to keep the EOC and CERT ready in the event of an emergency. 3. Provide a detailed description on how you plan to account for and manage the required 50/50 cost-match of the proposed project. The City takes extreme pride by continually auditing every expenditure through the strategic business planning process with quarterly updates to the City Council. All costs will be managed with an Excel D.5.b Packet Pg. 57 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Attachment G FY20 EMPG Project Narrative and Work Plan Page 2 of 3 spreadsheet clearly identifying purchase, cost, and timely input. Staff time will be tracked by task and timeline required by the FY20 EMPG and matching the amount spent. 4. Provide a performance timeline for your proposed project. Make sure that the timeline you are proposing is “reasonable”. The City anticipates the grant is awarded in thirty (30) days Once the grant has been awarded, the award of grant will be presented to the City Council for contract acceptance. The contract will then be submitted to the Grantor for acceptance and funding. Assuming the Grant is accepted with contract, vital equipment will then be purchased during Spring 2021. The City will develop a priority list and start obtaining estimates for the purchase of a new CERT trailer to replace the obsolete existing trailer, equipment and supplies such as radios and emergency food and water will furnish the trailer. For the EOC, the City will purchase with the grant a compatible laptop computer, cameras for monitoring sensitive locations with compatible EOC related software. 5. Training Data Table (Indicate the date that course was taken by the employee. Attached copy of certification). If the employee has not taken the course, write the date that the employee plans to complete the course in FY 2019. Important Note to Remember: To qualify for 2020 EMPG grant funding, the program funded personnel must complete the required course or courses listed below from July 1, 2020 to June 30, 2022. NIMS REQUIRED COURSES EMPG Funded Employee Name IS 100 IS 200 IS 700 IS 800 Aligned to Multi-Year Training (Yes or No) EMPG Funded Employee Name FEMA PROFESSIONAL DEVELOPMENT SERIES IS 120.c IS 230.d IS 235.c IS 240.b IS 241.b IS 242.b IS 244.b Aligned to Multi-Year Training (Yes or No) 6. Exercise Requirement (indicates the name of the exercise, location, and date the subrecipient plans to attend or host the event). Important Note to Remember: To qualify for 2020 EMPG grant funding, D.5.b Packet Pg. 58 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Attachment G FY20 EMPG Project Narrative and Work Plan Page 3 of 3 the program funded personnel, as well as personnel providing salary match, must participate in at least three (3) exercises from July 1, 2020 to June 30, 2022 (24-month period). Response to real world events will not fulfill exercise requirements. Please check the appropriate box: □ Our agency currently has spending authority for the requested funds. □ Our agency does not currently have spending authority for the requested funds. Please explain below: __________________________________________________________________________________ ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ Exercise Date EMPG Funded Employee Name Name of Exercise Name of Host and Location Discussion- Based Exercise (Seminar, Workshop, TTX or Game) Operations-Based Exercise (Drill, Functional, Full-Scale) 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. AAR & IP Will Be Submitted D.5.b Packet Pg. 59 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Attachment H-1 Jurisdiction Name:City of Grand Terrace Point of Contact:Steven A. Weiss Department or Division:Planning and Development Services Director Address:22795 Barton Road, Gran Terrace, CA 92313 E-mail Address:sweiss@grandterrace-ca.gov Phone Number:(909) 824-6621 ext. 225 Date Submitted:11/17/2020 ***Must Complete Attachment G: Project Narrative for each project listed here.*** YES NO 1 Other Authorized Equipment N/A N/A N/A NO NO $5,213 Response Operational Coordination Goal 4: Strengthen Communications Capabilities Through Planning, Governance, Technology, and Equipment At the 6 month mark, this project will be _____ % complete and $ ________ funds will be expended.At the 12 month mark, this project will be _____ % complete and $ _________ funds will be expended. At the 18 month mark, this project will be ____% complete and $_________ funds will be expended. At the 24 month mark, this project will be _____% complete and $_________ funds will be expended. YES NO 1 Other Authorized Equipment N/A N/A N/A NO NO $1,000 Response Operational Coordination Goal 4: Strengthen Communications Capabilities YES NO 1 Other Authorized Equipment N/A N/A N/A NO NO $4,500 Prevention Operational Coordination Goal 4: Strengthen Communicatio ns Capabilities Through YES No 1 Other Authorized Equipment N/A N/A N/A NO NO $159 Prevention Operational Coordination Goal 4: Strengthen Communicatio ns Capabilities Through YES No 1 Other Authorized Equipment N/A N/A N/A NO NO $400 Prevention Operational Coordination Goal 4: Strengthen Communicatio ns Capabilities Through YES No 1 Other Authorized Equipment N/A N/A N/A NO NO $80 Prevention Operational Coordination Goal 4: Strengthen Communicatio ns Capabilities Through YES No 1 Other Authorized Equipment N/A N/A N/A NO NO $100 Prevention Operational Coordination Goal 4: Strengthen Communicatio ns Capabilities Through YES No 1 Other Authorized Equipment N/A N/A N/A NO NO $2,000 Prevention Operational Coordination Goal 4: Strengthen Communicatio ns Capabilities Through YES No 1 Other Authorized Equipment N/A N/A N/A NO NO $3,120 Prevention Operational Coordination Goal 4: Strengthen Communicatio ns Capabilities Through SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT FY 2020 EMPG PROPOSED EQUIPMENT PROJECT OFFICE OF EMERGENCY SERVICES Equipment Description No.Installation Required QTY EHP FBI Project Cost Solution Area Sub-Category Sole Source Project Milestones AEL Title NPG Core CapabilitiesNPG Mission Area Cal OES FY20 Strategy Goals and Number SafecomGuidance Portable or Handheld CERT Trailer repair Maint. and Sustain > Repair and Replacement Costs EOC ProjectAEL # EOC Laptop computer 04HW-01-INHW Computer Software (Microsoft Office) EOC Wireless Portable Printer EOC Dell wireless mouse and Keyboard EOC computer back pack EOC Satellite Phones (2) EOC Hootsuite Software (Team for two years) EOC Portable Generator FY2019 EMPG D.5.b Packet Pg. 60 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Equipment Description No.Installation Required QTY EHP FBI Project Cost Solution Area Sub-Category Sole Source Project Milestones AEL Title NPG Core CapabilitiesNPG Mission Area Cal OES FY20 Strategy Goals and Number SafecomGuidance Portable or Handheld EOC ProjectAEL # yes n/a 20 Other Authorized Equipment N/A N/A N/A NO NO $1,580 Response Operational Coordination Goal 4: Strengthen Communications Capabilities Through Planning, Governance, Technology, and Equipment At the 6 month mark, this project will be _____ % complete and $ ________ funds will be expended.At the 12 month mark, this project will be _____ % complete and $ _________ funds will be expended. At the 18 month mark, this project will be ____% complete and $_________ funds will be expended. At the 24 month mark, this project will be _____% complete and $_________ funds will be expended. yes n/a 20 Other Authorized E i t N/A N/A N/A NO NO $1,500 Response Operational Coordination yes NO 10 Other Authorized Equipment N/A N/A N/A NO NO $100 Response Response yes NO 20 Other Authorized Equipment N/A N/A N/A NO NO $30 Response Response yes NO 20 Other Authorized Equipment N/A N/A N/A NO NO $100 Response Response yes NO Other Authorized Equipment N/A N/A N/A NO NO $150 Response Response yes NO 10 Other Authorized Equipment N/A N/A N/A NO NO $150 Response Response yes NO Other Authorized N/A N/A N/A NO NO $200 Response Response yes NO 20 Other Authorized N/A N/A N/A NO NO $40 Response Response yes NO 15 Other Authorized N/A N/A N/A NO NO $52 Response Response yes NO Other Authorized N/A N/A N/A NO NO $100 Response Response yes NO 10 Other Authorized N/A N/A N/A NO NO $20 Response Response yes NO Other Authorized N/A N/A N/A NO NO $50 Response Response yes NO 5 Other Authorized Equipment N/A N/A N/A NO NO $75 Response Response yes NO 1 Other Authorized Equipment N/A N/A N/A NO NO $50 Response Response yes NO 2 Other Authorized Equipment N/A N/A N/A NO NO $100 Response Response yes NO 1 Other Authorized Equipment N/A N/A N/A NO NO $119 Response Response yes NO Other Authorized Equipment N/A N/A N/A NO NO $100 Response Response yes NO 1 Other Authorized Equipment N/A N/A N/A NO NO $75 Response Response yes NO 2 Other Authorized Equipment N/A N/A N/A NO NO $46 Response Response yes NO 10 Other Authorized Equipment N/A N/A N/A NO NO $250 Response Response yes NO 30 Other Authorized Equipment N/A N/A N/A NO NO $87 Response Response yes NO 20 Other Authorized Equipment N/A N/A N/A NO NO $60 Response Response Ear Pllug, foam (2 boxes) 01ZA-04-HEAR Batteries 10BC-00-BATT Outdoor Extension Cord 100ft 21GN-00-CCEQ All weather Field Operating Guides 11RE-00-RFEX or 11RE-00-RFNC CERT Logo Patches 21GN-00-CCEQ Eye shield and Face Mask 01ZA-03-EYEP / 01EM-01-EFPS(M) and 01AR-06-DISP/ 01EM-01-MASK Go Anywhere Toilet Kits (50 pack) 21GN-00-CCEQ dehydrated foods 19FD-01-IRAT Crescent Wrench Adjustable 21GN-00-CCEQ goggles 01UT-01-EYEP N95 Face Mask 01EM-01-MASK nitrate gloves 01EM-03-GLME water purification tablets (10 packs)21GN-00-CCEQ utility knifes 21GN-00-CCEQ heavy-duty work gloves 01UT-01-GLOVemergency water 19FD-01-IRAT duct tape and masking tape 21GN-00-CCEQ scissors, note pads, markers, pens 21GN-00-CCEQ gas and water shut off tool 21GN-00-CCEQ Emergency Rolling Backpacks 19GN-00-BGPK Midland Emergency Weather NOAA Radio 06CP-01-PORT Batteries for the two way hand held emergency radios10BC-00-BATT Two way hand held emergency radios and batteries 06CP-01-PORT FY2019 EMPG D.5.b Packet Pg. 61 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Equipment Description No.Installation Required QTY EHP FBI Project Cost Solution Area Sub-Category Sole Source Project Milestones AEL Title NPG Core CapabilitiesNPG Mission Area Cal OES FY20 Strategy Goals and Number SafecomGuidance Portable or Handheld EOC ProjectAEL # yes NO 4 Other Authorized Equipment N/A N/A N/A NO NO $40 Response Response yes NO 4 Other Authorized Equipment N/A N/A N/A NO NO $32 Response Response yes NO 2 Other Authorized Equipment N/A N/A N/A NO NO $140 Response Response yes NO 1 Other Authorized Equipment N/A N/A N/A NO NO $250 Response Response YES NO 3 Other Authorized Equipment N/A N/A N/A NO NO $300 Response Response Total $22,368 Wristband military triage tags 21GN-00-CCEQ Triage Marking Tapes adhesive (color set) 21GN-00-CCEQ Triage tarp set 21GN-00-CCEQ CERT team printed triage flagging tape kit, non adhesive 21GN-00-CCEQTriage tags 21GN-00-CCEQ FY2019 EMPG D.5.b Packet Pg. 62 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 63 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 64 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 65 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 66 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 67 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 68 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 69 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 70 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 71 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 72 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 73 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 74 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 75 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 76 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 77 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) D.5.b Packet Pg. 78 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE, CALIFORNIA FOR THE FISCAL YEAR ENDED JUNE 30, 2019 ANNUAL FINANCIAL REPORT D.5.b Packet Pg. 79 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) THIS PAGE INTENTIONALLY LEFT BLANK D.5.b Packet Pg. 80 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE, CALIFORNIA ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 D.5.b Packet Pg. 81 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) THIS PAGE INTENTIONALLY LEFT BLANK D.5.b Packet Pg. 82 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS Page Number INDEPENDENT AUDITORS’ REPORT .............................................................................................. 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................ 5 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statement of Net Position .................................................................................................... 19 Statement of Activities .......................................................................................................... 20 Fund Financial Statements: Balance Sheet - Governmental Funds ................................................................................. 22 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .......................................................................................... 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ......................................................................................... 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................................................................................................... 25 Statement of Net Position - Proprietary Funds .................................................................... 26 Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds .......................................................................................... 27 Statement of Cash Flows - Proprietary Funds ..................................................................... 28 Statement of Fiduciary Net Position - Fiduciary Funds ........................................................ 29 Statement of Changes in Fiduciary Net Position - Fiduciary Funds .................................... 30 Notes to Financial Statements ............................................................................................. 31 REQUIRED SUPPLEMENTARY INFORMATION Pension Plan: Schedule of Proportionate Share of the Net Pension Liability — Miscellaneous Cost-Sharing Plan ........................................................................................ 64 Schedule of Plan Contributions — Miscellaneous Cost-Sharing Plan .................................... 65 OPEB Plan: Schedule of Changes in Net OPEB Liability and Related Ratios ............................................ 66 D.5.b Packet Pg. 83 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2019 TABLE OF CONTENTS Page Number Budgetary Comparison Information: General Fund ....................................................................................................................... 67 Street Improvement Fund .................................................................................................... 68 Housing Authority ................................................................................................................. 69 Notes to Required Supplementary Information .......................................................................... 71 COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet - Nonmajor Governmental Funds .................................................... 72 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds ................................................... 80 Budgetary Comparison Information – Special Revenue Funds: Child Care Center ................................................................................................................ 87 Storm Drain Improvement .................................................................................................... 88 Park Development ................................................................................................................ 89 AB 3229 COPS .................................................................................................................... 90 Air Quality Improvement ....................................................................................................... 91 State Gas Tax ...................................................................................................................... 92 Traffic Safety ........................................................................................................................ 93 Facilities Development ......................................................................................................... 94 Measure I ............................................................................................................................. 95 CDBG ................................................................................................................................... 96 Special Districts Landscape and Lighting District ................................................................ 97 Spring Mountain Ranch ........................................................................................................ 98 Cal Recycle Grant ................................................................................................................ 99 Senior Bus Program ........................................................................................................... 100 Public, Educational & Government Access........................................................................ 101 Active Transportation Program .......................................................................................... 102 Highway Safety Improvement Program ............................................................................. 103 Budgetary Comparison Information – Capital Project Funds: Capital Improvement - Streets ........................................................................................... 104 Barton/Colton Bridge .......................................................................................................... 105 Capital Projects .................................................................................................................. 106 Capital Projects - Parks ...................................................................................................... 107 Capital Improvement – Commerce Way Project ................................................................ 108 Combining Statement of Assets and Liabilities All Agency Funds ............................................................................................................... 109 Combining Statement of Changes in Assets and Liabilities – All Agency Funds ......................................................................... 110 D.5.b Packet Pg. 84 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grand Terrace, California, (the City) as of and for the year ended June 30, 2019, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 D.5.b Packet Pg. 85 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Grand Terrace, California, as of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules for the General Fund, Street Improvement Fund and the Housing Authority Fund, the schedule of proportionate share of the net pension liability and the schedule of plan contributions for the miscellaneous cost-sharing plan, and the schedule of changes in Total OPEB liability and related ratios be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated, in all material respects in relation to the basic financial statements as a whole. 2 D.5.b Packet Pg. 86 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) To the Honorable Mayor and Members of the City Council City of Grand Terrace, California Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 1, 2020 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Brea, California June 1, 2020 3 D.5.b Packet Pg. 87 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) THIS PAGE INTENTIONALLY LEFT BLANK 4 D.5.b Packet Pg. 88 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Management's Discussion and Analysis The following discussion and analysis of the financial performance of the City of Grand Terrace provides an overview of the City's financial activities for the fiscal year ended June 30, 2019. The information presented herein should be considered in conjunction with the City’s financial statements identified in the accompanying table of contents. Financial Highlights ƒ The assets of the City of Grand Terrace exceeded its liabilities at June 30, 2019 by $20.4 million (net position). ƒ The City’s net position increased by $0.1 million from the previous fiscal year from $20.3 million to $20.4 million. ƒ As of June 30, 2019, the City of Grand Terrace’s governmental funds had reported combined ending fund balances of $8.8 million, an increase of $0.8 million from the previous fiscal year. Of this total, approximately $6.7 million, or 76.0% of the total fund balance, are either non-spendable or restricted due to the nature of the restriction. ƒ The total debt of the City showed a net increase of about $14,500 mainly due to the increase in compensated absences. During FY 2018-19, while the OPEB obligation increased by about $0.2 million, the City’s Net Pension Liability decreased by about $ 0.2 million as well. ƒ The General Fund had a year-end fund balance of $3.3 million at June 30, 2019. This was a decrease of $0.1 million and a decrease of 2.3% over FY 2017-18. Using the Accompanying Financial Statements Included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements explain how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail than the government-wide statements by providing information about the City's most significant funds. Overview of the Financial Statements The annual report consists of four parts - management's discussion and analysis (this section), the basic financial statements, required supplementary information and an optional section that presents combining statements for nonmajor governmental funds. The basic financial statements include two kinds of statements that present different views of the City: ƒ The first two statements are government-wide financial statements that provide both long-term and short-term information about the City's overall financial status. ƒ The remaining statements are fund financial statements that focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements. 5 D.5.b Packet Pg. 89 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Overview of the Financial Statements (Continued) ƒ The governmental funds statements explain how general government services like public safety were financed in the short term as well as what remains for future spending. ƒ Proprietary funds statements offer short and long-term financial information about the activities the government operates like a business. ƒ Fiduciary fund statements provide information about the fiduciary relationships - like the agency funds of the City - in which the City acts solely as agent or trustee for the benefit of others, to whom the resources in question belong. The financial statements also include notes that provide additional explanatory information regarding the financial statements, as well as more detailed data. The statements are followed by a section of required supplementary spreadsheets that provide additional financial and budgetary information. Reporting the City as a Whole The accompanying government-wide financial statements include two statements that present financial data for the City as a whole. The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. The statement of net position includes all of the City’s assets and liabilities, as well as any deferred outflows and inflows. The statement of activities includes all current year revenues and expenses regardless of when cash is received. These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-sector companies. These two statements report the City's net position and changes in net position that transpired during the fiscal year. The City's net position - the difference between assets and liabilities is one way to measure the City's financial health, or financial position. Over time, increases and decreases in the City's net position are one indicator of whether its financial health is improving or deteriorating. Other nonfinancial factors, however, should also be considered such as changes in the City's property tax or sales tax base and the condition of the City's roads, to assess the overall health of the City. The Statement of Net Position and the Statement of Activities are divided into two types of activities: ƒ Governmental activities - Most of the City's basic services such as public safety, public works, community development, and general government are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities. ƒ Business-type activity - The Waste Water Disposal Fund accounts for the remaining assets and liabilities of the fund that used to account for the provision of waste water disposal services to the residents and businesses within the City of Grand Terrace. The City of Colton/ Colton Utility Authority now provide wastewater disposal services for the City’s residents and businesses. 6 D.5.b Packet Pg. 90 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Reporting the City's Most Significant Funds The fund financial statements provide detailed information about the City's most significant funds - not the City as a whole. Some funds are required to be established by State law or by bond covenants. However, the City establishes many other funds to help it control and manage financial resources for particular purposes or to demonstrate that it is meeting oversight responsibilities for using certain taxes, grants, or other money. The City's two types of funds - governmental and proprietary - use different accounting approaches. ƒ Governmental funds - Most of the City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances remaining at year end that are available for spending. These funds are reported using the modified accrual accounting method, which measures cash and all other current financial assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps to determine whether there are greater or fewer financial resources that can be spent in the near future to finance the City's programs. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. ƒ Proprietary funds - When the City charges customers for the services it provides, these services are generally reported in proprietary funds. Proprietary funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities. In fact, the City's enterprise fund is the same as the business-type activities reported in the government-wide statements, but provides more detail and additional information, such as cash flows, for the proprietary fund. The City does not use internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City's other programs and activities. Reporting the City's Fiduciary Responsibilities The City is an agent for certain assets held for, and under the control of, other organizations and individuals. These activities are excluded from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. Government-Wide Financial Statements As noted earlier, net position may serve over time as a useful indicator of a government's financial position. At June 30, 2019, net position for the City of Grand Terrace was $20,368,321; compared to net position of $20,291,188 at June 30, 2018. 7 D.5.b Packet Pg. 91 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Government-Wide Financial Statements (Continued) A summary of the government-wide Statement of Net Position at June 30, 2019 and June 30, 2018 are as follows: Table 1 Net Position 2019 2018 2019 2018 2019 2018 Current and other assets 10,408,597$ 9,733,343$ 1,559,460$ 1,453,024$ 11,968,057$ 11,186,367$ Capital assets, net 11,190,542 11,923,357 4,619,698 4,708,268 15,810,240 16,631,625 Total assets 21,599,139 21,656,700 6,179,158 6,161,292 27,778,297 27,817,992 Deferred Outflows for Pension & OPEB 1,035,466 1,244,591 - - 1,035,466 1,244,591 Other liabilities 1,450,313 1,473,214 6,875 6,875 1,457,188 1,480,089 Long-term liabilities 6,410,675 6,396,228 - - 6,410,675 6,396,228 Total liabilities 7,860,988 7,869,442 6,875 6,875 7,867,863 7,876,317 Deferred inflows for Pension & OPEB 577,579 895,078 - - 577,579 895,078 Invested in capital assets, net of debt 11,190,542 11,923,357 4,619,698 4,708,268 15,810,240 16,631,625 Restricted 6,674,424 7,299,178 - - 6,674,424 7,299,178 Unrestricted (3,668,928) (5,085,764) 1,552,585 1,446,149 (2,116,343) (3,639,615) Total net assets 14,196,038$ 14,136,771$ 6,172,283$ 6,154,417$ 20,368,321$ 20,291,188$ Governmental Activities Business-type Activities Total $15,810,240 (78%) of the net position reflects the City's investment in capital assets, less any related debt used to acquire those assets that are still outstanding. Since these assets are used to provide services to the citizens, they are not available for future spending. An additional $6,674,424 (33%) represents resources that are subject to external restrictions on how they may be used. The unrestricted net position resulted in a negative amount of $2,116,243 (-11%). The City’s net position remained at almost the same amount from $20,291,188 in FY 2017-18 to $20,368,321 during FY 2018-19. 8 D.5.b Packet Pg. 92 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Government-Wide Financial Statements (Continued) A summary of the government-wide Statement of Activities for the year ended June 30, 2019 and 2018 are as follows: Table 2 Changes in Net Position 2019 2018 2019 2018 2019 2018 Revenues and transfers Program revenues: Charges for services 1,307,816$ 904,402$ -$ -$ 1,307,816$ 904,402$ Operating contributions - and grants 470,311 3,380,359 - - 470,311 3,380,359 Capital contributions - and grants 625,655 380,029 30,000 - 655,655 380,029 General revenues:- Property tax 3,342,641 2,943,736 - - 3,342,641 2,943,736 Sales tax 831,321 728,893 - - 831,321 728,893 Motor vehicle in lieu 6,012 6,546 - - 6,012 6,546 Other taxes 552,401 533,383 - - 552,401 533,383 Use of money & property 1,055,201 436,299 42,759 17,944 1,097,960 454,243 Other revenues 64,489 22,055 - - 64,489 22,055 Total revenues 8,255,847 9,335,702 72,759 17,944 8,328,606 9,353,646 Expenses General government 1,693,881 1,100,629 - - 1,693,881 1,100,629 Public safety 2,302,235 2,152,184 - - 2,302,235 2,152,184 Public works 2,844,983 2,191,913 - - 2,844,983 2,191,913 Economic development 14,688 11,472 - - 14,688 11,472 Cultural and recreation 1,293,997 1,373,318 - - 1,293,997 1,373,318 Interest on long-term debt - 5,140 - - - 5,140 Waste water disposal - - 88,570 88,570 88,570 88,570 Total Expenses 8,149,784 6,834,656 88,570 88,570 8,238,354 6,923,226 Change in net position 106,063 2,501,046 (15,811) (70,626) 90,252 2,430,420 Beginning net position 14,136,771 11,311,672 6,154,417 6,225,043 20,291,188 17,536,715 Restatement of Net Position (46,796) 324,053 33,677 - (13,119) 324,053 Ending net position 14,196,038$ 14,136,771$ 6,172,283$ 6,154,417$ 20,368,321$ 20,291,188$ Governmental Activities Business-type Activities Total The increase or decrease in net position can provide an indication as to whether the overall financial position of the City improved or worsened during the year. The total net position of the City at June 30, 2019 stayed at almost the same level as the net position of the City at the end of FY 2017- 2018, increasing only by $77,133 or 0.4%. Taken separately, the net position of governmental activities increased by $59,267, while the net position of business-type activities decreased by $17,866. Total expenses of $8,238,354 were offset by total revenues of $8,328,606. In the Statement of Activities, expenditures do not include the cost of assets capitalized during the year or payments made on principal of outstanding debt. Depreciation is 9 D.5.b Packet Pg. 93 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Government-Wide Financial Statements (Continued) shown for governmental funds on this table, but the expense is not recorded in each individual fund. After the deduction of capitalized assets, the next largest component in changes to net position is the actual increase or decrease in fund balances resulting from operations. For governmental funds there was a net increase of $ 785,979. Of this amount, a net increase of $ 652,810 is attributable to the nonmajor funds, a net increase of $173,973 to the Housing Authority, a net increase of $ 66,398 to the Street Improvement Fund, with the difference being a net decrease to the General Fund of $107,202. Governmental Activities The following table shows the cost of each of the City’s major programs and their net cost after subtracting fees and other direct revenue generated by the activities. The net cost reflects the financial burden that was placed on the City taxpayers by each of the programs. Net Cost of Governmental Activities Total Cost of Services Net Cost of Services Total Cost of Services Net Cost of Services General government 1,693,881$ 1,353,609$ 1,100,629$ 741,296$ Public safety 2,302,235 2,049,437 2,152,184 1,930,002 Public works 2,844,983 1,147,878 2,191,913 (1,791,829) Economic development 14,688 5,333 11,472 (16,139) Cultural and recreation 1,293,997 1,189,745 1,373,318 1,301,396 Interest on long-term debt - - 5,140 5,140 Total 8,149,784$ 5,746,002$ 6,834,656$ 2,169,866$ 2019 2018 This table shows the cost of all governmental activities this year was $ 8,149,784. General tax dollars paid for approximately 58 percent of this cost. Fees, grants and contributions and fund balances at the beginning of the fiscal year funded the balance of the cost of governmental activities. 10 D.5.b Packet Pg. 94 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Revenues by Source - Governmental Activities $8,255,847 Expenses by Function - Governmental Activities - $8,149,784 11 D.5.b Packet Pg. 95 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Business-Type Activity In March 2014, the cities of Grand Terrace and Colton entered into sewer services and lease agreements for fifty (50) years. These agreements extricated Grand Terrace from the wastewater collection business. In accordance with the Sewer Services Agreement with the City of Colton/ Colton Utility Authority, the provision of sewer services for the City’s residents and businesses are no longer being directly provided by the City of Grand Terrace. Hence, the City of Grand Terrace no longer receives sewer services revenues from the City’s residents and businesses. Likewise, sewer- services related expenditures are also no longer being incurred and recorded in the City’s Waste Water Disposal Fund. The following were the only financial- related activities recorded in the City’s Waste Water Disposal Fund during FY 2018-19 • Annual depreciation amounting to $88,570 of all wastewater sewer capital assets which are still owned by the City; • Capital contributions amounting to $30,000; and • Interest income of $42,759 earned by the remaining cash in the Waste Water Disposal Fund. Expenses and Program Revenues – Business-type Activities Major Funds As noted earlier, the City uses fund accounting to provide proper financial management of the City's resources and to demonstrate compliance with finance-related legal requirements. Major Governmental Funds: The General Fund is the main operating fund of the City. At the end of FY 2018-19, the fund balance of the General Fund decreased by $140,879 from a fund balance of $3,369,153 at June 30, 2018 to $ 3,228,274 at June 30, 2019. Total fund balance in all Governmental Funds was $8,827,757. 0 300,000 600,000 900,000 1,200,000 1,500,000 1,800,000 Waste Water Treatment Operating Expenses Operating Revenues 12 D.5.b Packet Pg. 96 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Major Governmental Funds (Continued) The General Fund Revenues and Expenditures are shown below: Increase (Decrease) in 2018-2019 2017-2018 Fund Balance Revenues 5,866,335$ 8,162,060$ (2,295,725)$ Expenditures (5,855,533) (5,593,196) (262,337) Other Sources (Uses) (118,004) (117,431) (573) Net Change in Fund Balance (107,202) 2,451,433 (2,558,635) Beginning Fund Balance 3,369,153 917,720 2,451,433 Restatements (33,677) - (33,677) Ending Fund Balance 3,228,274$ 3,369,153$ (140,879)$ The significant highlights in activities, revenues and expenditures of the City's General Fund from the prior year are as follows: ƒ General Fund expenditures and transfers out exceeded revenues and transfers in by $107,202. Total General Fund revenues decreased by $ 2,295,725 or 28.1 percent from FY 2017-18. This decrease in revenues is mainly due to the one-time FY2017-18 receipt of the excess 15% 2011 bond proceeds in the amount of $2.8 million by the General Fund from the Successor Agency to the Grand Terrace Community Redevelopment Agency, which did not occur again in FY 2018-19. This $2.8 million decrease, along with the increase of $0.4 million in property taxes and the increase of $0.1 million in sales taxes received during FY 2018-19 over the previous fiscal year resulted in the net decrease of $ 2.3 million in General Fund revenues. • Property taxes received increased by 13.6 percent from $2,924,532 to $3,323,177, a difference of about $398,645. This increase in property tax is mainly attributable to the increase in RPTTF Residual Receipts by $241,500. During the fiscal year, the increase in Property tax-VLF Swap and Excess proceeds redistribution provided the remaining additional increase to this category. • Gross Sales tax increased by $102,428 or 14.1 percent from $728,893 to $831,321 compared to the previous fiscal year. • Charges for service, including licenses and permits in FY 2018-19 decreased by 2.1 percent from $1,107,908 to $ 1,085,008. The following revenues belonging to these categories decreased during the FY 2018-19 as compared to FY 2017-18 – Miscellaneous planning fees, Engineering plan review, Public Works permit, Professional services – other and Rental inspection fees. The following revenues however, increased during FY 2018-19 compared to the previous fiscal year – Construction permits, Building & safety plan review and Site & architectural review. 13 D.5.b Packet Pg. 97 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Major Governmental Funds (Continued) • Fines and forfeitures received during FY 2018-19 decreased by $7,381 or 7.1 percent from $103,674 during FY 2017-18 to $96,293 during FY 2018-19. The decrease in this category resulted from decreased collections of the following General Fund revenues: parking citations, which decreased by $17,079, and sweep day citations, which decreased by $4,986. The decrease in these revenues were mainly offset by the increase in the following revenues: dog licenses, which increased by $8,525 and code enforcement fines, which increased by $4,087. • The overall operating expenditures of the General Fund increased by 4.1 percent over the prior year - from $5.6 million to $5.9 million. The negative variance of about $0.2 million between FY 2017-18 and FY 2018-19 was mainly due to the following: the increase in the general government category by $ 284,438. • The public safety category and the cultural & recreation category also both showed an increase in expenditures by $75,215 and $96,554 respectively. The following categories had decreased expenditures during FY 2018-19 compared to the previous fiscal year: public works ($133,899), capital outlay ($84,946), interest and fiscal charges ($5,140) and transfers out ($47,048). • Of the total $5,855,533 in General Fund operating expenditures, total general government expenditures represented 24.8 percent, public works expenditures represented 22.8 percent, public safety expenditures represented 36.1 percent, cultural & recreation represented 12.8 percent and capital outlay represented 3.5 percent. Other major governmental funds include the Street Improvement Fund and the Housing Authority Fund. The Street Improvement Fund had a positive net change of $66,398 during the fiscal year. The fund balance of the Housing Authority Fund increased by $173,973 during FY 2018-19. This fund accounts for the housing assets as a result of the dissolution of community redevelopment agency of the City. Nonmajor Funds The Nonmajor funds, as listed in the table of contents of this report, include Gas Tax, Measure I, the Capital Improvement Funds, and most of the special revenue funds. Fiduciary Funds Fiduciary funds are used to account for resources held for the benefit of parties outside the City. In these cases, the City has a fiduciary responsibility and is acting as trustee. The Statement of Fiduciary Net Position included in the Basic Financial Statements, separately reports all of the City’s fiduciary activities. The City’s fiduciary activities are reported in separate statements of fiduciary net position and statement of changes in fiduciary net position (Private Purpose Trust Fund- Successor Agency of the Former RDA only). Fiduciary funds are not reflected in the government- wide financial statements because the resources of those funds are not available to support the City’s own programs. However, the City is responsible for ensuring that the assets reported in these funds are used for their intended purposes. 14 D.5.b Packet Pg. 98 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Capital Assets As of June 30, 2019, the City had invested $15,810,240 in a broad range of capital assets, including buildings, parks and park improvements, computer and maintenance equipment, vehicles, sewer collection systems, streets, sidewalks and storm drains. The City is exempt by provisions of Governmental Accounting Standards Board (GASB) Statement No. 34 from including the valuation of old City infrastructure prior to the implementation of GASB Statement No. 34. Capital Assets (Net of depreciation) 2019 2018 2019 2018 2019 2018 Land 3,112,881$ 3,262,881$ -$ -$ 3,112,881$ 3,262,881$ Buildings 2,291,015 2,746,722 - - 2,291,015 2,746,722 Improvements 2,731,197 2,912,654 88,498 96,926 2,819,695 3,009,580 Equipment 282,929 258,073 - - 282,929 258,073 Vehicles 102,982 83,431 - - 102,982 83,431 Infrastructure 1,899,421 2,131,136 - - 1,899,421 2,131,136 Sewer mains - - 2,462,173 2,506,874 2,462,173 2,506,874 Sewer laterals - - 1,244,801 1,265,811 1,244,801 1,265,811 Sewer manholes - - 824,226 838,657 824,226 838,657 Construction in progress 770,117 528,460 - - 770,117 528,460 11,190,542$ 11,923,357$ 4,619,698$ 4,708,268$ 15,810,240$ 16,631,625$ Governmental Activities Business-type activities Total Long-Term Debt At the end FY 2018-19, the City had debt outstanding of $6,410,675. The City’s net pension liability decreased by $172,833 from $5,064,768 in the prior fiscal year to $4,891,935 at the end of June 30, 2019. The City’s other post- employment benefits (OPEB) obligations increased by $178,908 from $1,165,731 at the end of FY 2017-18 to $1,344,639 at the end of FY 2018-19. The City’s liability for compensated absences increased by $8,372 compared to the prior fiscal year from $165,729 to $174,101 at the end of June 30, 2019. Additional information on the City’s long-term debt can be found in the notes to the accompanying financial statements. 15 D.5.b Packet Pg. 99 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Long-Term Debt (Continued) Outstanding Debt Governmental Activities 2019 2018 Increase (Decrease) Total OPEB Obligation 1,344,639$ 1,165,731$ 178,908$ Net Pension Liability 4,891,935 5,064,768 (172,833) Compensated Absences 174,101 165,729 8,372 Total Outstanding Debt 6,410,675$ 6,396,228$ 14,447$ Economic Factors and Outlook for Future Years The City of Grand Terrace fiscal position in 2019-20 is sustainable (revenue exceeds expenses and city maintains funds in a reserve account that is the equivalent of two months of expenses), allowing the city to post its sixth consecutive year of economic growth based on fiscal responsibility, development of needed infrastructure, adequate public safety and a diligent strategy for economic independence. The $105,000,000 interchange project, which started construction in 2017 is scheduled for completion in early 2020. The project leads to the heart of the city, creating a magnificent entrance to the City and its current and future commercial corridor. The completed interchange was designed to increase circulation by 30%, allowing over 40,000 cars per day to easily access Barton Rd. The increased circulation capacity enhances the City’s appeal to retailers as a vibrant commercial corridor between the two main metropolises of Riverside and San Bernardino. The completion of the Barton Rd Interchange is integral to the City of Grand Terrace’s Economic strategy. The economic prosperity of the City is linked directly to infrastructure. The interchange project leads to the heart of our economy with over 50% of all sales taxes generated in the City, coming from business on or adjacent to Barton Rd adjacent to the interchange. It is estimated that build out of businesses on Barton Rd within the next five years will lead to doubling of sales tax that is currently generated. Yet, during this same period, the completion of the interchange project will solidify the submittal of the 132-acre Gateway Specific Plan project, which is a mixed-use master plan project adjacent to the freeway with the ability to deliver a minimum of over $800,000 in property taxes to the City. While the City’s core revenue sources are steady, the City will receive an additional boost in property tax because of private transactions, leading to increase tax rolls. In addition, the City defeased its Redevelopment Bonds, leading to an increase in residual property taxes of approximately $500,000 annually starting in 2020-21. The property tax increases from defeasement above and the modest annual growth in property taxes allows the City to reasonably address the increases of core service contracts, which eliminates the City’s ability to increase levels of service. 16 D.5.b Packet Pg. 100 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Economic Factors and Outlook for Future Years (Continued) The City continues to see additional revenues materialize for Restricted/Special Purpose Funds allocated to it, after approval of the City’s Last and Final ROPS. The City will use these funds to continue to advance its long- term economic strategy with funds earmarked infrastructure, economic development and elimination of blight. A significant amount of the funds will be used for infrastructure and economic development. SB-1 (Road Repair & Rehab Program) will allow the City to accelerate the repair of the City’s aging road infrastructure. The City has a successful track record of leveraging small amounts of general fund proceeds to go after grant programs to help build infrastructure. As the Interchange project comes to a close, the $300,000 Mount Vernon Avenue safety improvement program will enhance intersections for 5 major intersections in the City, four of which lead to the majority of our residential developments. We believe the improvements to these intersections will contribute to the growth and increase of property values. The City continues to push its $500,000,000 marketing strategy, the MIDAS (Municipal Investment in Development to Achieve Success) program which consist of various public and private economic development partnerships within the City of Grand Terrace. We are anticipating the opening of Grocery Outlet Market in the former Stater Bros complex, which was vacant for over a decade. This project was featured in our MIDAS program will be the only way the City will be able to generate a significant boost in sales tax and property tax revenue to offer enhanced services to residents. Finally, to balance out the City’s goal of economic growth for our entire community, staff is anticipating a major role for the City’s Housing Successor Agency in the coming years, as the City moves to promote economic development and housing for all. The Housing Successor Agency has over $1,000,000 in cash, in addition to assets, which will allow it to carry out the agency’s policies. The City’s Five-Year Financial Analysis is sustainable, as long as: ¾ Revenue increases outpace annual increases of expenses ¾ No new programs are implemented without a new source of revenue ¾ Projects for Barton Road retail space materializes 17 D.5.b Packet Pg. 101 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) THIS PAGE INTENTIONALLY LEFT BLANK 18 D.5.b Packet Pg. 102 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE STATEMENT OF NET POSITION Governmental Business-TypeActivities Activities TotalAssets:Cash and investments 8,916,430$ 620,688$ 9,537,118$ Receivables:Accounts 156,376 -156,376 Notes and loans 778,843 -778,843 Accrued interest 17,956 -17,956 Internal balances (938,772) 938,772 - Prepaid costs 19,611 -19,611 Due from other governments 793,153 -793,153 Land held for resale 665,000 -665,000Capital assets not being depreciated 3,882,998 - 3,882,998Capital assets, net of depreciation 7,307,544 4,619,698 11,927,242 Total Assets 21,599,139 6,179,158 27,778,297 Deferred Outflows of Resources:Deferred pension related items 983,832 -983,832 Deferred OPEB related items 51,634 -51,634 Total Deferred Outflows of Resources 1,035,466 - 1,035,466 Liabilities: Accounts payable 396,019 -396,019Accrued liabilities 82,298 - 82,298Deposits payable 25,559 6,875 32,434Due to other governments 946,437 -946,437Noncurrent liabilities:Due within one year Compensated absences 40,376 -40,376Due in more than one yearCompensated absences 133,725 -133,725Total OPEB liability 1,344,639 - 1,344,639Net pension liability 4,891,935 - 4,891,935 Total Liabilities 7,860,988 6,875 7,867,863 Deferred Inflows of Resources: Deferred pension related items 548,092 -548,092 Deferred OPEB related items 29,487 -29,487 Total Deferred Inflows of Resources 577,579 -577,579 Net Position:Invested in capital assets 11,190,542 4,619,698 15,810,240Restricted for: Community development projects 3,284,050 - 3,284,050 Public safety 25,741 -25,741 Public works 3,121,513 - 3,121,513 Child care 243,120 -243,120 Unrestricted (3,668,928) 1,552,585 (2,116,343) Total Net Position 14,196,038$ 6,172,283$ 20,368,321$ JUNE 30, 2019 Primary Government See Notes to Financial Statements 19 D.5.b Packet Pg. 103 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2019 Operating CapitalCharges for Contributions ContributionsExpenses Services and Grants and Grants Functions/ProgramsPrimary Government: Governmental Activities:General government 1,693,881$ 209,489$ 130,783$ -$ Public safety 2,302,235 103,644 149,154 - Economic development 14,688 - 9,355 - Cultural and recreation 1,293,997 104,252 - - Public works 2,844,983 890,431 181,019 625,655 Total Governmental Activities 8,149,784 1,307,816 470,311 625,655 Business-Type Activities:Waste Water Disposal 88,570 - - 30,000 Total Business-Type Activities 88,570 - - 30,000 Total Primary Government 8,238,354$ 1,307,816$ 470,311$ 655,655$ General Revenues:Taxes: Property taxes, levied for general purpose Sales taxes Franchise taxes Business licenses taxes Motor vehicle in lieu - unrestricted Use of money and property OtherGain on sale of capital asset Total General Revenues Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at Beginning of Year, as Restated Net Position at End of Year Program Revenues See Notes to Financial Statements 20 D.5.b Packet Pg. 104 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) Primary Government Governmental Business-TypeActivities Activities Total (1,353,609)$ -$ (1,353,609)$ (2,049,437) - (2,049,437) (5,333) - (5,333) (1,189,745) - (1,189,745) (1,147,878) - (1,147,878) (5,746,002) - (5,746,002) - (58,570) (58,570) - (58,570) (58,570) (5,746,002) (58,570) (5,804,572) 3,342,641 - 3,342,641 831,321 - 831,321 456,994 - 456,994 95,407 - 95,407 6,012 - 6,012 491,892 42,759 534,651 64,489 - 64,489 563,309 - 563,309 5,852,065 42,759 5,894,824 106,063 (15,811) 90,252 14,136,771 6,154,417 20,291,188 (46,796) 33,677 (13,119) 14,089,975 6,188,094 20,278,069 14,196,038$ 6,172,283$ 20,368,321$ Net (Expenses) Revenues and Changes in Net Position See Notes to Financial Statements 21 D.5.b Packet Pg. 105 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2019 Other Total Governmental Governmental General Funds Funds Assets: Cash and investments 4,464,315$ 607,240$ 936,962$ 2,907,913$ 8,916,430$ Receivables: Accrued revenue 139,629 - - 16,747 156,376 Notes and loans receivable 50,000 - 728,843 - 778,843 Interest receivable 17,956 - - - 17,956 Prepaid costs 19,611 - - - 19,611 Due from other funds 100,449 9,000 - 27,000 136,449 Due from other governments 221,666 - 348,636 222,851 793,153 Advances to other funds - - 168,205 - 168,205 Land held for resale 665,000 - - - 665,000 Total Assets 5,678,626$ 616,240$ 2,182,646$ 3,174,511$ 11,652,023$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 335,805$ -$ 7,993$ 52,221$ 396,019$ Accrued liabilities 82,298 - - - 82,298 Due to other funds - - - 136,449 136,449 Due to other governments 925,272 - 21,165 - 946,437 Advances from other funds 1,106,977 - - - 1,106,977 Refundable deposits - 4,663 - 20,896 25,559 Total Liabilities 2,450,352 4,663 29,158 209,566 2,693,739 Deferred Inflows of Resources:Unavailable revenues - - 59,843 70,684 130,527 Total Deferred Inflows of Resources - - 59,843 70,684 130,527 Fund Balances: Nonspendable: Prepaid costs 19,611 - - - 19,611 Notes and loans 50,000 - - - 50,000 Restricted for: Community development projects - - 2,093,645 1,190,405 3,284,050 Public safety - - - 25,741 25,741 Public works - 611,577 - 1,509,936 2,121,513 Child Care - - - 243,120 243,120 Infrastructure projects 1,000,000 - - - 1,000,000 Committed to: Committed to contingencies 1,298,140 - - - 1,298,140 Committed to equipment replacement 148,905 - - - 148,905 Committed to community services 42,115 - - - 42,115 Committed to additional public safety 294,833 - - - 294,833 Unassigned 374,670 - - (74,941) 299,729 Total Fund Balances 3,228,274 611,577 2,093,645 2,894,261 8,827,757 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 5,678,626$ 616,240$ 2,182,646$ 3,174,511$ 11,652,023$ Special Revenue Funds Street Improvement Housing Authority See Notes to Financial Statements 22 D.5.b Packet Pg. 106 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDSTO THE STATEMENT OF NET POSITION JUNE 30, 2019 Fund balances of governmental funds 8,827,757$ Amounts reported for governmental activities in the statement of netposition are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. Capital assets 21,701,576$ Accumulated depreciation (10,511,034) 11,190,542 Deferred outflows of resources reported for the pension plan for government-wide statements are as follows: Pension contributions made subsequent to the measurement date 383,835 Difference between expected and actual experience 141,374 Change in assumptions 420,063 Net difference between projected and actual earnings on pension plan investments 18,216 Adjustment due to difference in proportions 9,094 Differences in proportionate share 11,250 983,832 OPEB related items:Change in assumptions 51,634 Compensated absences that have not been included in the governmental activities (174,101) Governmental funds report all OPEB contributions as expenditures, however in the statement of net position, the excess of the total OPEB liability over the plan fiduciary net position is reported as a net OPEB liability.(1,344,639) Governmental funds report all pension contributions as expenditures, however, in the statement of net position, the excess of the plan proportionate share of the total pension liability over the proportionate share of the plan fiduciary net position is reported as a net pension liability.(4,891,935) Deferred inflows of resources reported for government-wide statements are amortized: Pension related items:Difference between expected and actual experience (48,109) Change in assumptions (102,949) Adjustment due to difference in proportions (314,126) Differences in proportionate share (82,908) (548,092) OPEB related items:Change in assumptions (29,487) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.130,527 Net Position of Governmental Activities 14,196,038$ See Notes to Financial Statements 23 D.5.b Packet Pg. 107 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 Other Total Governmental Governmental General Funds Funds Revenues: Taxes 4,154,498$ -$ -$ 19,464$ 4,173,962$ Assessments - - - 155,750 155,750 Intergovernmental 46,209 - - 1,204,167 1,250,376 Charges for services 1,085,008 89,519 - 297,827 1,472,354 Use of money and property 421,284 7,650 6,676 55,958 491,568 Fines and forfeitures 96,293 - - 7,640 103,933 Miscellaneous 63,043 - - 22,580 85,623 Total Revenues 5,866,335 97,169 6,676 1,763,386 7,733,566 Expenditures: Current: General government 1,424,092 - - 8,100 1,432,192 Public safety 2,111,201 - - 150,050 2,261,251 Public works 1,334,339 - - 1,323,217 2,657,556 Economic development - - 34,537 - 34,537 Cultural and recreation 750,807 - - 279,737 1,030,544 Capital outlay: Project improvement costs 204,999 - - 348,247 553,246 Debt service: Interest and fiscal charges 30,095 - - - 30,095 Total Expenditures 5,855,533 - 34,537 2,109,351 7,999,421 Excess (Deficiency) of Revenues Over (Under) Expenditures 10,802 97,169 (27,861) (345,965) (265,855) Other Financing Sources (Uses):Transfers in 2,379 - - 1,280,348 1,282,727 Transfers out (120,383) (30,771) - (1,131,573) (1,282,727) Proceeds from sale of capital asset - - - 850,000 850,000 Gain on sale of land held for resale - - 201,834 - 201,834 Total Other Financing Sources (Uses) (118,004) (30,771) 201,834 998,775 1,051,834 Net Change in Fund Balances (107,202) 66,398 173,973 652,810 785,979 Fund Balances, Beginning of Year, as previously reported 3,369,153 545,179 1,919,672 2,254,570 8,088,574 Restatements (33,677) - - (13,119) (46,796) Fund Balances, Beginning of Year, as restated 3,335,476 545,179 1,919,672 2,241,451 8,041,778 Fund Balances, End of Year 3,228,274$ 611,577$ 2,093,645$ 2,894,261$ 8,827,757$ Special Revenue Funds Street Improvement Housing Authority See Notes to Financial Statements 24 D.5.b Packet Pg. 108 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2019 Net change in fund balances - total governmental funds 785,979$ Amounts reported for governmental activities in the statement of activities are differentbecause: Governmental funds report capital outlays as expenditures. However, in the statementof activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. The activity is reconciled as follows: Cost of assets capitalized 553,245$ Depreciation expense (789,850) Disposition of capital assets (496,210) (732,815) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Change in compensated absences payable (8,372) Governmental funds report all contributions in relation to the actuarially determined contribution for OPEB as expenditures, however in the statement of activities only the annual OPEB cost is an expense.(119,304) Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.221,603 Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.(41,028) Change in Net Position of Governmental Activities 106,063$ See Notes to Financial Statements 25 D.5.b Packet Pg. 109 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2019 Assets:Current:Cash and investments 620,688$ Total Current Assets 620,688 Noncurrent:Advances to other funds 938,772 Capital assets - net of accumulated depreciation 4,619,698 Total Noncurrent Assets 5,558,470 Total Assets 6,179,158$ Liabilities and Net Position: Liabilities:Deposits payable 6,875$ Total Liabilities 6,875 Net Position:Net investment in capital assets 4,619,698 Unrestricted 1,552,585 Total Net Position 6,172,283 Total Liabilities and Net Position 6,179,158$ Business-Type Activities Waste Water Disposal See Notes to Financial Statements 26 D.5.b Packet Pg. 110 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE STATEMENT OF REVENUES, EXPENSESAND CHANGES IN FUND NET POSITIONYEAR ENDED JUNE 30, 2019 Operating Expenses:Depreciation expense 88,570$ Total Operating Expenses 88,570 Operating Income (Loss)(88,570) Nonoperating Revenues (Expenses):Interest revenue 42,759 Total Nonoperating Revenues (Expenses)42,759 Income (Loss) Before Contributions (45,811) Contributions 30,000 Changes in Net Position (15,811) Net Position: Beginning of Fiscal Year, as previously reported 6,154,417 Restatements 33,677 Beginning of Fiscal Year, as restated 6,188,094 End of Fiscal Year 6,172,283$ Business-Type Activities Waste Water Disposal See Notes to Financial Statements 27 D.5.b Packet Pg. 111 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE STATEMENT OF CASH FLOWS PROPRIETARY FUNDS JUNE 30, 2019 Cash Flows from Non-Capital Financing Activities: Advance to other funds (30,095)$ Net Cash Provided (Used) by Non-Capital Financing Activities (30,095) Cash Flows from Capital and Related Financing Activities:Capital contributions 30,000 Net Cash Provided (Used) by Capital and Related Financing Activities 30,000 Cash Flows from Investing Activities: Interest received 42,759 Net Cash Provided (Used) byInvesting Activities 42,759 Net Increase (Decrease) in Cash and Cash Equivalents 42,664 Cash and Cash Equivalents at Beginning of Year 578,024 Cash and Cash Equivalents at End of Year 620,688$ Reconciliation of Operating Income to Net CashProvided (Used) by Operating Activities:Operating income (loss)(88,570)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities:Depreciation 88,570 Total Adjustments 88,570 Net Cash Provided (Used) by Operating Activities -$ Business-Type Activities Waste Water Disposal See Notes to Financial Statements 28 D.5.b Packet Pg. 112 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDSJUNE 30, 2019 Agency FundsAssets: Cash and investments 764,705$ 16,730,599$ Receivables: Interest - 93,141 Due from other governments 3,572 925,272 Land held for resale - 363,133 Restricted assets: Cash and investments with fiscal agent - 1,764,350 Total Assets 768,277$ 19,876,495 Liabilities: Current: Accounts payable 8,752$ 1,666 Accrued interest - 351,014 Due to other governments - 851,956 Deposits payable 759,525 - Bonds payable - 700,000 Noncurrent: Bonds payable - 16,029,396 Total Liabilities 768,277$ 17,934,032 Net Position:Held in trust for other purposes 1,942,463 Total Net Position 1,942,463$ Private- Purpose Trust Fund Successor Agency Private Purpose Trust Fund See Notes to Financial Statements 29 D.5.b Packet Pg. 113 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDSYEAR ENDED JUNE 30, 2019 Additions: RPTTF distribution 2,054,163$ Investment earnings 428,506 Total Additions 2,482,669 Deductions:Administrative expenses 16,642Contractual services 308,633Debt service payments - interest 1,079,113Payments of enforceable obligations 74,559Loss on sale of land held for resale 29,546 Total Deductions 1,508,493 Changes in Net Position 974,176 Net Position - Beginning of the Year 968,287 Net Position - End of the Year 1,942,463$ Private- Purpose Trust Fund Successor Agency Private Purpose Trust Fund See Notes to Financial Statements 30 D.5.b Packet Pg. 114 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2019 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of Entity The City of Grand Terrace (City) was incorporated in November 1978 under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public safety (law enforcement), highways and streets, cultural and recreational activities, public improvements, planning and zoning, building and safety, low and moderate income housing programs, and general administrative services. As required by generally accepted accounting principles, the financial statements of the City of Grand Terrace include the financial activities of the City (the primary government), and the City of Grand Terrace Public Financing Authority (the Authority). This blended component unit is discussed below and is included in the reporting entity because of the significance of its operation and financial relationship with the City. The Authority is legally separate from the City. However, the City of Grand Terrace’s elected officials have a continuing full or partial accountability for fiscal matters of the Authority. The financial reporting entity consists of: 1) the City, 2) organizations for which the City is financially accountable, and 3) organizations for which the nature and significance of their relationship with the City are such that exclusions would cause the City’s financial statements to be misleading or incomplete. An organization is fiscally dependent on the primary government if it is unable to adopt a budget, levy taxes or set rates or charges, or issue bonded debt without approval by the primary government. In a blended presentation, component unit balances and transactions are reported in a manner similar to the balances and transactions of the City. Component units are presented on a blended basis when the component unit’s governing body is substantially the same as the City’s or the component unit provides services almost entirely to the City. The following component units of the City have been included in the financial reporting entity as blended component units. City of Grand Terrace Public Financing Authority The Grand Terrace Public Financing Authority (the Authority) was established on July 16, 1991, pursuant to a Joint Powers Agreement between the City of Grand Terrace and the former Community Redevelopment Agency of the City of Grand Terrace. The Authority was created to facilitate financing of public capital improvements benefiting the City and the former RDA. The City Council also acts as the governing body of the Authority. The Authority’s activities are blended with those of the City. Separate financial statements are not prepared for the Grand Terrace Public Financing Authority. There are several other governmental agencies, including the County of San Bernardino, school districts, and others, providing services within the City of Grand Terrace. Those agencies have independently elected governing boards other than the City Council of the City of Grand Terrace and no financial accountability to the City of Grand Terrace. Consequently, financial information for these agencies is not included within this financial report. 31 D.5.b Packet Pg. 115 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Organization and Summary of Significant Accounting Policies (Continued) b. Government-Wide and Fund Financial Statements The government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regard to interfund activities, payables, and receivables. All internal balances in the statement of net position have been eliminated except those representing balances between the governmental activities and the business-type activities, which are presented as internal balances and eliminated in the total primary government column. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct and indirect expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions, including special assessments, that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenue are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the cash flows. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified-accrual basis of accounting. Under the modified-accrual basis of accounting, revenues are recognized in these funds when susceptible to accrual (i.e., when they are both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the City considers property taxes collected after year-end as available, if they are collected within 60 days of the end of the current fiscal period. Other revenue susceptible to accrual includes sales tax, state gasoline taxes, investment income, 32 D.5.b Packet Pg. 116 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Organization and Summary of Significant Accounting Policies (Continued) and certain other intergovernmental revenues. Expenditures in the governmental funds are generally recognized in the accounting period in which the related fund liability is incurred, if measurable, except for unmatured principal and interest on general long-term debt, as well as compensated absences and claims and judgments, which are recognized when due. The City reports the following major governmental funds: • The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. • The Street Improvement Fund accounts for all revenues collected for street capital improvement fees under the Municipal Code. Funds are expended in accordance with the latest adopted fiscal impact study and capital needs assessment. • The Housing Authority Fund accounts for the housing assets transferred from the former redevelopment agency and Low and Moderate housing activities of the City. The fund activities are restricted for the same purposes as the former Low and Moderate Income Housing Fund of the Agency. The City reports the following major proprietary fund: • The Waste Water Disposal Fund is used to account for the remaining assets and liabilities of the fund that used to account for the provision of waste water disposal services to the residences and businesses of the City. Currently, a Sewer Services Agreement is in place between the City of Colton/Colton Utility Authority and the City of Grand Terrace for the provision of waste-water disposal services by the City of Colton to residents and businesses of the City of Grand Terrace. Additionally, the City reports the following fund types: • Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted or committed to expenditures for specified purposes. • Capital Projects Funds are used to account for financial resources used for the acquisition or construction of major capital facilities (other than those financed by the proprietary funds). • Permanent Fund accounts for resources that are legally restricted, to the extent that only earnings, and not principal, may be used for purposes that support the City’s program. • The Private Purpose Trust Fund is used to account for the resources, obligations, and activities of the Successor Agency of the Redevelopment Agency of the City of Grand Terrace as directed by the Oversight Board to settle the affairs of the dissolved agency (see Note 13). 33 D.5.b Packet Pg. 117 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Organization and Summary of Significant Accounting Policies (Continued) • Agency Funds are used to account for the resources held by the City in a fiduciary capacity. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government's proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. d. Other Accounting Policies 1. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." 2. Cash and Cash Equivalents For the purpose of the statement of cash flows, the City considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. The City follows the practice of pooling cash and investments of all funds. Since cash and investments are pooled, the City utilizes the assumption that the cash and investments in the Enterprise Fund are cash and cash equivalents. 3. Investments The City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. 4. Property Held for Resale Property held for resale is recorded at the lower of cost or net realizable value. 34 D.5.b Packet Pg. 118 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 5. Compensated Absences The short-term portion is determined to be the amount due to employees for future absences which is attributable to services already rendered and which is expected to be paid during the next fiscal year. The total amount of liability for compensated absences is segregated between short-term and long-term as indicated above and both portions are reflected in the government-wide statements. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally, an employee cannot accrue more than two times his regular annual entitlement. Sick leave is payable when an employee is unable to work because of illness. Upon termination, regular employees with 5 years continuous service will be paid 40% for any unused sick leave. 6. Capital Assets Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items) are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than or equal to $5,000 (amount not rounded) and an estimated useful life of at least two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated Capital assets, donated works of art and similar items, and capital assets received in a service concession arrangement are reported at acquisition value at the time of acquisition by the City. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not capitalized. Property, plant and equipment of the primary government, as well as the component units, are depreciated using the straight-line method over the following estimated useful lives. Assets Years Buildings 50 Machinery & Equipment 5-15 Vehicles 6-15 Improvements other than buildings 15-20 Infrastructure 20-30 Sewer Lines 90 35 D.5.b Packet Pg. 119 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 7. Long-term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as expenditures. 8. Net Pension Liability For purposes of measuring the net pension liability, deferred outflows and inflows of resources related to pension, and pension expense, information about the fiduciary net position and additions to/deletions from the fiduciary net position have been determined on the same basis as they are reported by the CalPERS Financial Office. For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. CalPERS audited financial statements are publicly available reports that can be obtained at CalPERS website under Forms and Publications. GASB 68 requires that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date (VD) June 30, 2017 Measurement date (MD) June 30, 2018 Measurement Period (MP) July 1, 2017 to June 30, 2018 9. Other Post-Employment Benefits (OPEB) Liability For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB and OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used: Valuation Date June 30, 2017 Measurement Date June 30, 2019 Measurement Period July 1, 2018 to June 30, 2019 36 D.5.b Packet Pg. 120 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 10. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position and the governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/ expenditure) until then. The City only has one item that qualifies for reporting in this category. Deferred outflows relating to the net pension obligation reported in the government-wide statement of net position. These outflows are the results of contributions made after the measurement period, which are expensed in the following year, and of adjustments due to difference in proportions, change in assumptions, and the difference between actual contributions made and the proportionate share of the risk pool’s total contributions. These amounts are deferred and amortized over the expected average remaining service lifetime. In addition to liabilities, the Statement of Net Position and the Governmental Balance Sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has three items, one of which, arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenue from intergovernmental revenues. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The other items are deferred pension related items and deferred OPEB related items. Gains and losses related to changes in total pension or OPEB liability and their related fiduciary net position are recognized in pension or OPEB expense, respectively, systematically over time. Amounts are first recognized in pension or OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pension or OPEB and are recognized in future pension and OPEB expense, respectively. The recognition period differs depending on the source of the gain or loss: Net difference between projected and actual earning on pension or OPEB plan investments 5 years All plans All other amounts are amortized over the expected average remaining service lifetime (EARSL) of the respective plan. At June 30, 2019, EARLS were: 5.7 years 3.8 years OPEB plan Pension Miscellaneous – Cost Sharing Plan 37 D.5.b Packet Pg. 121 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 11. Net Position Flow Assumption Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. 12. Fund Balance Flow Assumptions Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 13. Fund Balance Policies The City implemented GASB Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”. This statement provides more clearly defined fund balance categories to make the nature and extent of the constraints placed on a government’s fund balance more transparent. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used: • Non-spendable – amounts that are not in a spendable form (such as inventory) or are required to be maintained intact. • Restricted – amounts constrained to specific purposes by their providers (such as grantors, bondholders and higher levels of government), through constitutional provisions or by enabling legislation. • Committed – amounts constrained to specific purposes determined by a formal action of the City Council, the government's highest level of decision-making authority. • Assigned – amounts the City intends to use for a specific purpose; intent can be expressed by City Council or by an official or body to which the City Council delegates the authority. By resolution, the Council has authorized the City Manager and/or Finance Director to assign fund balance. • Unassigned – amounts that are for any purpose; positive amounts are reported only in the general fund. 38 D.5.b Packet Pg. 122 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. 14. Property Tax Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied provided they become available. Available means when due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31. 15. Use of Estimates The financial statements have been prepared in accordance with generally accepted accounting principles accepted in the United States of America and necessarily include amounts based on estimates and assumptions by management. Actual results could differ from those amounts. 16. New Accounting Principles Adopted During the fiscal year ended June 30, 2019, the City implemented the following Governmental Accounting Standards Board (GASB) standards: GASB Statement No. 88 – Certain Disclosures Related to Debt, Including Direct Borrowings and Direct Placements. The primary objective of this Statement is to improve the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements. It also clarifies which liabilities governments should include when disclosing information related to debt. This Statement defines debt for purposes of disclosure in notes to financial statements as a liability that arises from a contractual obligation to pay cash (or other assets that may be used in lieu of cash) in one or more payments to settle an amount that is fixed at the date the contractual obligation is established. This Statement requires that additional essential information related to debt be disclosed in notes to financial statements, including unused lines of credit; assets pledged as collateral for the debt; and terms specified in debt agreements related to significant events of default with finance-related consequences, significant termination events with finance-related consequences, and significant subjective acceleration clauses. For notes to financial statements related to debt, this Statement also requires that existing and additional information be provided for direct borrowings and direct placements of debt separately from other debt. 39 D.5.b Packet Pg. 123 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 II. STEWARDSHIP Note 2: Stewardship, Compliance and Accountability Deficit Fund Balances As of June 30, 2019, the following funds have deficit fund balances: Amount CDBG (33,298)$ Enhanced Infrastructure Financing District (41,643) These deficits will be funded by future revenues or transfers from other funds. Budget The Enhanced Infrastructure Financing District Fund and the Dog Park Endowment Fund did not adopt a budget for fiscal year 2018-19 and therefore budgetary comparison information is not presented: III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments Cash and investments as of June 30, 2019, are classified in the accompanying financial statements as follows: Statement of Net Position: Cash and Investments 9,537,118$ Statement of Fiduciary Net Position: Cash and Investments 17,495,304 Cash and Investments with Fiscal Agents 1,764,350 Total Cash and Investments 28,796,772$ Cash and investments as of June 30, 2019, consist of the following: Cash on Hand 1,250$ Deposits with Financial Institutions 4,574,125 Investments 24,221,397 Total Cash and Investments 28,796,772$ 40 D.5.b Packet Pg. 124 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 3: Cash and Investments (Continued) Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City’s investment policy. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer U.S. Treasury Obligations 5 years None None Repurchase Agreements 6 years None None Certificates of Deposit 7 years None None Passbook Savings Accounts 8 years 30% None Securities Issued by Federal Agencies N/A None None Local Agency Investment Fund (LAIF) N/A None 50,000,000$ Mutual Funds N/A 20% None Pools and other Investment Structures N/A None None Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustees. The table identifies certain provisions of these debt agreements that address interest rate risk, credit risk and concentration of credit risk. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in One Issuer Government Obligations 5 years None None FHLB's 6 years None None FHLMC's 7 years None None Farm Credit Banks 8 years 30% None FNMA's N/A None None Financing Corp Debt Obligations N/A None 50,000,000$ Certificates of Deposit N/A 20% None Deposits fully Insured by FDIC N/A None None USAID Guaranteed Notes N/A None None Investment Agreements N/A None None Bankers Acceptances N/A None None Municipal Obligations rated Aaa N/A None None Commercial Paper rated P-1 N/A None None Repurchase Agreements N/A None None Money Market Mutual Funds rated AAAm N/A None None 41 D.5.b Packet Pg. 125 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 3: Cash and Investments (Continued) Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City’s investments to market interest rate fluctuations are presented below. Remaining Investment Maturity Authorized Investment Type Amount 12 Months or Less Local Agency Investment Fund (LAIF) 18,370,556$ 18,370,556$ Local Gov. Invest. Pool (CAMP) 4,085,318 4,085,318 First American Treasury 1,173 1,173 Held by Trustee: Money Market Mutual Funds 1,764,350 1,764,350 Total 24,221,397$ 24,221,397$ Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Information about the minimum rating required by the California Government Code, the City’s investment policy, or debt agreements, and the actual rating as of year-end for each type of investment held by the City can be found below. Authorized Investment Type Amount Minimum Legal Rating Actual Rating Local Agency Investment Fund (LAIF)18,370,556$ N/A N/A Local Gov. Invest. Pool (CAMP)4,085,318 N/A N/A First American Treasury 1,173 N/A N/A Held by Trustee: Money Market Mutual Funds 1,764,350 AAAm N/A Total 24,221,397$ 42 D.5.b Packet Pg. 126 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 3: Cash and Investments (Continued) Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. During the fiscal year ended June 30, 2019, the City did not hold any investments in any one issuer (other than Mutual Funds and External Investment Pools) that represent 5% or more of total City’s investments. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure deposits by pledging first deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2019, the City had deposits with financial institutions in excess of federal depository insurance limits of $4,231,461. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. LAIF has reported to its participating agencies that, as of June 30, 2019, the carrying amount (at amortized cost) of the Pool was $105,633,660,465 and the estimated fair value of the Pool was $105,814,483,092. The City’s proportionate share of the Pool’s market value (as determined by LAIF) as of June 30, 2019, was $18,370,556. Included in LAIF’s investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain state funds, and floating rate securities. 43 D.5.b Packet Pg. 127 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 3: Cash and Investments (Continued) Local Government Investment Pool The City is a voluntary participant in the Local Government Investment Pool, “CAMP” (California Asset Management Program). CAMP is a California Joint Powers Authority, established to provide public agencies with professional investment services, and is directed by a Board of Trustees, which is made up of experienced local government finance directors and treasurers. The CAMP Pool is a permitted investment for all local agencies under California Government Code Section 53601(p). The City reports its share in the investment pool at the estimated fair market value. As of June 30, 2019, the City’s share of the Pool (as determined by CAMP) is $4,085,318. Included in the CAMP’s investment portfolio are U.S. treasury notes, bonds, bills or certificates of indebtedness or other obligations of the United States, federal agency or U.S. government-sponsored enterprise obligations, participations or other instruments, repurchase agreements, bills of exchange or time drafts, negotiable certificates of deposits, commercial paper of prime quality of the highest ranking or of the highest letter and number rating. Pooled Cash The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by outside fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated to the various funds based on the cash balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. Fair Value Measurement and Application The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2019: Total 1 2 3 Investments: Local Government Investment Pool 4,085,318$ -$ -$ First American Treasury 1,173 - 1,173 - Local Agency Investment fund 18,370,556 - - Total Cash Investments 22,457,047 - 1,173 - Investments with Fiscal Agents: Money Market Funds 1,764,350 - 1,764,350 - Total Investments with Fiscal Agent 1,764,350 - 1,764,350 - 24,221,397$ -$ 1,765,523$ -$ Investment Type Level 44 D.5.b Packet Pg. 128 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 4: Interfund Receivable, Payable and Transfers The composition of interfund balances at June 30, 2019, is as follows: Due to/from other funds: Receivable Fund Payable Fund Amount General Fund Nonmajor Governmental Funds (1) 100,449$ Street Improvement Fund Nonmajor Governmental Funds (2) 9,000 Nonmajor Governmental Funds Nonmajor Governmental Funds (3) 27,000 136,449$ (1) The General Fund advanced funds to the Measure I Fund, CDBG Fund, Cal Recycle Grant Fund, Active Transportation Program Fund and the Enhanced Infrastructure Financing District to cover deficit cash balances and to cover the Unfunded Accrued Liability pension portion. (2) The Street Improvement Fund advanced funds to the Enhanced Infrastructure Financing District Fund to cover expenditures. (3) The Storm Drain Improvement Fund, Park Development Fund and Facilities Development Fund advanced funds of $9,000 each to the Enhanced Infrastructure Financing District Fund to cover expenditures. Advances from/to other funds: Receivable Fund Payable Fund Amount Housing Authority Fund General Fund 168,205$ Waste Water Disposal General Fund 938,772 1,106,977$ In April 1980, the Community Redevelopment Agency (CRA) entered into a pass-through agreement with the City, which was found to be in noncompliance with State statutes. The misallocated tax increment was being treated as an advance payable to the former Community Redevelopment Agency from the General Fund. Upon the dissolution of the Redevelopment Agency, the advance receivable was transferred to the Housing Authority and the Successor Agency and is shown as a due from other government in the Private Purpose Trust Fund in the amount of $925,272 and an advance to other funds in the Housing authority in the amount of $168,205. The advance is to be repaid as funds are available. On June 30, 2018, the Waste Water Disposal Fund formalized in a promissory note its advance to the General Fund in the amount of $875,000 for the acquisition of property located at 22273 Barton Road. Effective September 13, 2016, interest on the advance accrues at a rate equal to the Local Agency Investment Fund yield. Beginning July 1, 2020, the General Fund will make annual payments in the amount of $87,500. Thereafter payments will be made on the 1st day of each fiscal year. All outstanding principal and accrued interest under the note will be due and payable on July 1, 2030. At June 30, 2019, the advance to the General Fund amounts to $938,722 and includes accrued interest of $63,772. 45 D.5.b Packet Pg. 129 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 4: Interfund Receivable, Payable and Transfers (Continued) Interfund Transfers: Fund Receiving Transfers Fund Making Transfers Amount General Fund Nonmajor Governmental Funds (1)2,379$ Nonmajor Governmental Funds General Fund (2) 120,383 Nonmajor Governmental Funds Street Improvement Fund (3)30,771 Nonmajor Governmental Funds Nonmajor Governmental Funds (4) 1,129,194 Total Interfund Transfers 1,282,727$ (1) Transfers to the General Fund from the Barton / Colton Bridge to close the Barton/Colton Bridge capital project fund. (2) Transfers in the amount of $109,858 were made from the General Fund to the State Gas Tax Fund for franchise sweep fees and pavement impact fees. Transfers in the amount of $10,000 were made to the Senior Bus Program Fund for additional funding. Transfer in the amount of $525 were made to the Capital Project to close out the Capital Projects fund. (3) Transfers to Commerce Way Project from Street Improvement for the amount of $30,771 for the Acquisition of Private & Remnant Land project. (4) Transfers in the amount of $145,510 to the Capital Project – Parks from the Park Development fund for the Blue Mountain Trial Project. Transfers in the amount of $5,000 were made to the Senior Bus Program Fund for additional funding from the Air Quality Improvement fund. Transfers in the amount of $86,110 to the Capital Improvement - Streets Fund from the Gas Tax fund for the Slurry Seal Project. Transfers in the amount of $892,574 from the Capital Improvement - Streets to the Capital Projects – Commerce Way Project fund to establish the fund. 46 D.5.b Packet Pg. 130 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 5: Capital Assets Capital assets activity for the year ended June 30, 2019, was as follows: Beginning EndingBalanceAdditions Deletions BalanceGovernmental Activities:Capital assets, not being depreciated: Land 3,262,881$ -$ 150,000$ 3,112,881$ Construction-in-progress 528,460 241,657 - 770,117 Total Capital Assets, Not Being Depreciated 3,791,341 241,657 150,000 3,882,998 Capital assets, being depreciated: Buildings 6,268,981 - 654,386 5,614,595 Machinery and Equipment 930,313 142,147 146,347 926,113 Vehicles 543,554 55,075 - 598,629 Improvements other than buildings 6,281,969 114,366 58,390 6,337,945 Infrastructure 4,341,296 - - 4,341,296 Total Capital Assets, Being Depreciated 18,366,113 311,588 859,123 17,818,578 Less accumulated depreciation: Buildings 3,522,259 141,326 340,005 3,323,580 Machinery and Equipment 672,240 109,606 138,662 643,184 Vehicles 460,123 35,524 - 495,647 Improvements other than buildings 3,369,315 271,678 34,246 3,606,747 Infrastructure 2,210,160 231,716 - 2,441,876 Total Accumulated Depreciation 10,234,097 789,850 512,913 10,511,034 Total Capital Assets, Being Depreciated, Net 8,132,016 (478,262) 346,210 7,307,544 Governmental Activities Capital Assets, Net 11,923,357$ (236,605)$ 496,210$ 11,190,542$ Depreciation expense was charged to functions of the primary government as follows: Governmental Activities: General Government 153,635$ Public Safety 40,984 Public Works 265,184 Cultural and recreation 330,047 Total Depreciation expense - Governmental Activities 789,850$ 47 D.5.b Packet Pg. 131 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 5: Capital Assets (Continued) Beginning Ending Balance Additions Deletions Balance Business-type Activities: Capital assets, being depreciated: Sewer mains 4,023,128$ -$ -$ 4,023,128$ Laterals 1,890,944 - - 1,890,944 Manholes 1,298,760 - - 1,298,760 Improvements 202,274 - - 202,274 Total Capital Assets, Being Depreciated 7,415,106 - - 7,415,106 Less accumulated depreciation: Sewer mains 1,516,254 44,701 - 1,560,955 Laterals 625,133 21,010 - 646,143 Manholes 460,103 14,431 - 474,534 Improvements 105,348 8,428 - 113,776 Total Accumulated Depreciation 2,706,838 88,570 - 2,795,408 Business-type Activities Capital Assets, Net 4,708,268$ (88,570)$ -$ 4,619,698$ Note 6: Compensated Absences Compensated absences activity for the year ended June 30, 2019, was as follows: Beginning Ending Due WithinBalance Additions Deletions Balance One Year Compensated Absences 165,729$ 46,806$ 38,434$ 174,101$ 40,376$ Total Long-Term Liabilities 165,729$ 46,806$ 38,434$ 174,101$ 40,376$ The City’s policies relating to compensated absences are described in Note 1 of the Notes to Financial Statements. The liability will be paid in future years as it becomes due from the General Fund. Note 7: Pension Plan Plan Description The City contributes to the California Public Employees Retirement System (PERS), a cost sharing multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of PERS’ annual financial report may be obtained from their executive office: 400 “P” Street, Sacramento, California 95814. 48 D.5.b Packet Pg. 132 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 7: Pension Plan (Continued) Benefits Provided CalPERS provides service retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. Below is the summary of the plans’ provisions and benefits in effect at June 30, 2019, for which the City of Grand Terrace has contracted: Tier 1 *Tier 2 PEPRA Hire date Prior to December 13, 2012 December 13, 2012 but prior to January 1, 2013 January 1, 2013 and after Benefit formula 2.7% @ 55 2% @ 60 2% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age minimum 50 yrs minimum 50 yrs minimum 52 yrs Monthly benefits, as a % of eligible compensation 2% - 2.7%, 50 yrs - 63+ yrs, respectively 1.092% - 2.418%, 50 yrs - 63+ yrs, respectively 1.000% - 2.500%, 52 yrs - 67+ yrs, respectively Required employee contribution rates 7.952%6.912%6.250% Required employer contribution rates 12.212%7.634%6.842% *Closed to new entrants Miscellaneous Cost-Sharing Plans Employees Covered At June 30, 2019, the following employees were covered by the benefit terms of the Plan: Description Misc - Tier 1 Misc - Tier 2 PEPRA Total Active members 18 3 19 40 Transferred members 19 4 3 26 Terminated members 55 0 9 64 Retired members and beneficiaries 39 0 1 40 Total 131 7 32 170 Number of Members 49 D.5.b Packet Pg. 133 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 7: Pension Plan (Continued) Contribution Description Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through the CalPERS’ annual actuarial valuation process. The actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the year ended June 30, 2019, the employer contributions recognized as a reduction to the net pension liability was $391,538. Pension Liabilities, Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions As of June 30, 2019, the City reported net pension liabilities for its proportionate shares of the net pension liability of $4,891,935. The City’s net pension liability is measured as the proportionate share of the net pension liability. The net pension liability is measured as of June 30, 2018, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The City’s proportionate share of the net pension liability as of June 30, 2017 and 2018 was as follows: Proportions as a percentage of the CalPERS risk pool: Proportion - June 30, 2017 0.04529% Proportion - June 30, 2018 0.05152% Change - Increase (Decrease)0.00623% 50 D.5.b Packet Pg. 134 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 7: Pension Plan (Continued) For the year ended June 30, 2019, the City recognized a total pension expense of $163,232. At June 30, 2019, the City reported deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Resources Deferred Inflows of Resources City contribution subsequent to the measurement date 383,835$ -$ Difference between Expected and Actual Experience 141,374 (48,109) Change in Assumptions 420,063 (102,949) Net Difference between Projected and Actual Earnings on Pension Plan Investments 18,216 - Adjustment due to Difference in Proportions 9,094 (314,126) Differences in proportionate share 11,250 (82,908) Total 983,832$ (548,092)$ $383,835 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2019. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Measurement Period Ended June 30: Deferred Outflows/(Inflows) of Resources 2019 47,651$ 2020 179,004 2021 (141,608) 2022 (33,142) 51,905$ 51 D.5.b Packet Pg. 135 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 7: Pension Plan (Continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2018, the total pension liability was determined by rolling forward the June 30, 2017 total pension liability. The June 30, 2018 total pension liability was based on the following actuarial methods and assumptions: Valuation Date Measurement Date Actuarial Cost MethodActuarial Assumptions: Discount Rate Inflation Payroll Growth Investment Rate of Return Mortality Post Retirement Benefit Increase Miscellaneous Plan (1) 7.15% (2) Varies by Entry Age and Service 2.50% 7.15% June 30, 2018 Entry-Age Normal Cost Method June 30, 2017 Contract cost of living adjustment (COLA) up to 2.50% until Purchasing Power Protection Allowance Floor on Purchasing Power applies (2) Net of pension plan investment expenses, including inflation (1) Actuarial assumptions are the same for all benefit tiers (Classic Tier I, Classic Tier II, and PEPRA) (3)The mortality table used was developed based on the CalPERS' specific data. The table includes20 years of projected mortality improvements using Society of Actuaries Scale BB. For more details on the table, please refer to the CalPERS 2017 experience study report available on CalPERS' website. Derived using CalPERS Membership Data for all Funds (3) Change of Assumptions For the measurement date June 30, 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. Discount Rate The discount rate used to measure the total pension liability was 7.15% for the Plan. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. 52 D.5.b Packet Pg. 136 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 7: Pension Plan (Continued) Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. Asset Class New Strategic Allocation Real Return Years 1 - 10 (1) Real Return Years 11+ (2) Global Equity 50.00% 4.80%5.98% Fixed Income 28.00% 1.00%2.62% Inflation Assets 0.00% 0.77%1.81% Private Equity 8.00% 6.30%7.23% Real Assets 13.00% 3.75%4.93% Liquidity 1.00% 0.00%-0.92% 100.00% (1) An expected inflation of 2% used for this period. (2) An expected inflation of 2.92% used for this period. Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability, calculated using the discount rate of 7.15%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1% point lower (6.15%) or 1% point higher (8.15%) than the current rate: Discount Rate - 1% Current Discount Discount Rate +1% 6.15%7.15%8.15% Miscellaneous 7,125,869$ 4,891,935$ 3,047,860$ Plans' Net Pension Liability/(Asset) 53 D.5.b Packet Pg. 137 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 7: Pension Plan (Continued) Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS’ website for additional information. Note 8: Other Post-Employment Benefits Plan Description The City provides a medical plan coverage for retirees. This coverage is available for employees who satisfy the requirements for retirement under the California Public Employees Retirement System (PERS), which is age 50 or older with at least five years of State or public agency service. Medical plan benefits are provided through PERS, as permitted by the Public Employees’ Medical and Hospital and Care Act (PEMHCA). As a PEMHCA employer, the City has elected the unequal contribution method, where the contribution will be increased annually over twenty years until it reaches the same employer contribution as active employee medical plan coverage. Contributions The contribution requirements of plan members and the City are established and may be amended by the City Council. Currently, contributions are not required from plan members. The required contribution is based on pay-as-you-go financing requirements. For the measurement date ended June 30, 2019, the City’s cash contributions were $23,030 in total payments, which were recognized as a reduction to the OPEB liability. Employees Covered At June 30, 2019, the measurement date, the following numbers of participants were covered by the benefit terms: Number of Covered Participants Inactives currently receiving benefits 8 Inactives entitled to but not yet receiving benefits 23 Active employees 17 Total 48 Covered participant counts were available to the actuary for the June 30, 2018 actuarial valuation but not as of June 30, 2019 measurement date. 54 D.5.b Packet Pg. 138 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2019 Note 8: Other Post-Employment Benefits (Continued) Total OPEB Liability The City's total OPEB liability was measured as of June 30, 2019 for the measurement period July 1, 2018 through June 30, 2019. The total OPEB liability used to calculate the total OPEB liability was determined by an actuarial valuation dated June 30, 2018, based on the following actuarial assumptions: Actuarial Assumptions: Discount rate 3.87% at June 30, 2018 (Bond Buyer 20-bond Index) Inflation 2.75% per annum Salary Increases Aggregate - 3.00% Merit - Tables from CalPERS 1997-2015 Experience Study Investment rate of retrun N/A Mortality rate CalPERS 1997-2011 Experience Study Healthcare trend rate Non-medicare - 7.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076 Medicare - 6.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076 Discount Rate The discount rate used to measure the total OPEB liability was 3.87%. The discount rate is based on the bond buyer 20-bond index. Changes in the Total OPEB Liability. The changes in the total OPEB liability for the plan are as follows: Total OPEB Liability Measurement Period 2018-19 Total OPEB Liability - June 30, 2018 1,165,731$ Changes in Total OPEB Liability Service Cost 107,552 Interest 48,506 Assumption changes 62,620 Benefits payments (39,770) Change in benefit terms - Net Changes 178,908 Total OPEB Liability - June 30, 2019 1,344,639$ 55 D.5.b Packet Pg. 139 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2019 Note 8: Other Post-Employment Benefits (Continued) Sensitivity of the Total OPEB Liability to Changes in the discount rate The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point higher or one percentage point lower than the current discount rate, for the measurement period June 30, 2019: 1% Decrease (2.5%) Current Rate (3.5%) 1% Increase (4.5%) Total OPEB Liability 1,539,607$ 1,344,639$ 1,185,373$ Discount Rate Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates The following presents the total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point higher or one percentage point lower than the current healthcare cost trend rates: 1% Decrease Current Rate 1% Increase Total OPEB Liability 1,268,123$ 1,344,639$ 1,419,171$ Healthcare Trend Rate OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2019, the City recognized OPEB expense of $159,195. At June 30, 2019, the City's deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Change in assumptions 51,634$ (29,487)$ Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Fiscal Year Ended June 30 Deferred Outflows/(Inflows) of Resources 2020 3,016$ 2021 3,016 2022 3,016 2023 5,409 2024 7,690 Total 22,147$ 56 D.5.b Packet Pg. 140 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2019 Note 9: Risk Management The City is a member of the California Joint Powers Insurance Authority (the "Authority"). The following joint venture disclosures are made in compliance with GASB Code Section J50.103: a. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement The City of Grand Terrace is a member of the California Joint Powers Insurance Authority (Authority). The Authority is composed of 116 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. b. Primary Self-Insurance Programs of the Authority Each member pays an annual contribution at the beginning of the coverage period. A retrospective adjustment is then conducted annually thereafter, for coverage years 2012-13 and prior. Coverage years 2013-14 and forward are not subject to routine annual retrospective adjustment. The total funding requirement for primary self-insurance programs is based on an actuarial analysis. Costs are allocated to individual agencies based on payroll and claims history, relative to other members of the risk-sharing pool. Primary Liability Program Claims are pooled separately between police and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $750,000 to $50 million, are distributed based on the outcome of cost allocation within the first and second loss layers. The overall coverage limit for each member, including all layers of coverage, is $50 million per occurrence. Subsidence losses have a sub-limit of $40 million per occurrence. The coverage structure includes retained risk that is pooled among members, reinsurance, and excess insurance. More detailed information about the various layers of coverage is available on the following website: https://cjpia.org/protection/coverage-programs. Primary Workers’ Compensation Programs Claims are pooled separately between public safety (police and fire) and general government exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within 57 D.5.b Packet Pg. 141 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2019 Note 9: Risk Management (Continued) the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool’s total incurred costs within the second layer. (4) Incurred costs from $100,000 to statutory limits are distributed based on the outcome of cost allocation within the first and second loss layers. For 2018-19 the Authority’s pooled retention is $2 million per occurrence, with reinsurance to statutory limits under California Workers’ Compensation Law. Employer’s Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and Employer’s Liability losses from $5 million to $10 million are pooled among members. c. Purchased Insurance Pollution Liability Insurance The City of Grand Terrace participates in the pollution legal liability insurance program which is available through the Authority. The policy covers sudden and gradual pollution of scheduled property, streets, and storm drains owned by the City of Grand Terrace. Coverage is on a claim’s made basis. There is a $50,000 deductible. The Authority has an aggregate limit of $50 million for the 3-year period from July 1, 2017 through July 1, 2020. Each member of the Authority has a $10 million sub-limit during the 3-year policy term. Property Insurance The City of Grand Terrace participates in the all-risk property protection program of the Authority. This insurance protection is underwritten by several insurance companies. City of Grand Terrace property is currently insured according to a schedule of covered property submitted by the City of Grand Terrace to the Authority. City of Grand Terrace property currently has all-risk property insurance protection in the amount of $27,361,127. There is a $10,000 deductible per occurrence except for non-emergency vehicle insurance which has a $2,500 deductible. Crime Insurance The City of Grand Terrace purchases crime insurance coverage in the amount of $3,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority. d. Adequacy of Protection During the past three fiscal years, none of the above programs of protection experienced settlements or judgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2018-19. 58 D.5.b Packet Pg. 142 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2019 Note 10: Commitments and Contingencies As of June 30, 2019, in the opinion of the City Administration and its legal counsel, there are no outstanding matters, which would have a material effect on the financial position of the City. The following material construction commitments existed at June 30, 2019: Project Name Contract Amount Expenditures to date as of June 30, 2019 Remaining Commitments Barton Road Streetscape 60,000$ $ 2,984 57,016$ Michigan Design & Row (Michigan Walkable Plan)74,509 5,614 68,895 Commerce Way - Real Estate Acquisition of private & remnant land 50,000 44,812 5,188 Commerce Way - Construction Mgmt & 3-D Modeling 237,030 67,825 169,205 Note 11: Fund Balance/ Net Position Restatement Governmental Funds/Government-wide activities The Dog Park Endowment Fund beginning fund balance was restated by $(13,119) to reclassify prior year miscellaneous revenue that should have be recorded as refundable deposits. The General Fund beginning fund balance was restated by $(33,677) to record prior year accrued interest on the advance between the General Fund and the Waste Water Disposal Fund. As a result, governmental activities beginning net position was restated by $(46,796). Enterprise/Business-type Activities The business-type activities beginning net position and the Waste Water Disposal Fund beginning net position were restated by $33,677 to record prior year accrued interest on the advance between the General Fund and the Waste Water Disposal Fund. Note 12: Proposition 218 Proposition 218, which was approved by the voters in November 1996, will regulate the City's ability to impose, increase and extend taxes, assessments and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218 require voter approval before they can be implemented. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future by the voters. Note 13: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Grand Terrace that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay 59 D.5.b Packet Pg. 143 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2019 Note 13: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency (Continued) enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private purpose trust fund) in the financial statements of the City. Cash and Investments As of June 30, 2019, cash and investments were reported in the accompanying financial statements as follows: Cash and investments 16,730,599$ Cash and investments with fiscal agent 1,764,350 Total Cash and Investments 18,494,949$ Long-Term Debt Long-term liability activity for the year ended June 30, 2019, was as follows: Beginning Ending Due Within Balance Additions Deletions Balance One Year Direct Borrowings: Tax Allocation Bonds: 2011 Tax Allocation Bonds, Series A 13,425,000$ -$ 330,000$ 13,095,000$ 340,000$ 2011 Tax Allocation Bonds, Series B 4,070,000 - 335,000 3,735,000 360,000 Discount on Bonds issued (109,714) - (9,110) (100,604) - Total Bonds Payable 17,385,286$ -$ 655,890$ 16,729,396$ 700,000$ 2011A Tax Allocation Bonds In June of 2011, the former CRA issued the $15,175,000 Community Redevelopment Project Area Tax Allocation Bonds, Issue of 2011A. The Bonds were issued to finance public improvement projects pursuant to the Redevelopment Plan and for other redevelopment activities of the Agency. Interest varies from 2.00% to 6.00% and is payable semiannually on March 1 and September 1, commencing September 1, 2011. Principal payments are due annually commencing September 1, 2012, through September 1, 2033. The Bonds are payable from and secured by a pledge of Tax Increment, less amounts required to make payments under the Pass-Through Agreements, annual debt service of the 2004 Bonds and the Housing Set-Aside amount. 60 D.5.b Packet Pg. 144 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2019 Note 13: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency (Continued) The 2011A Tax Allocation Bond was transferred to the Successor Agency on February 1, 2012, as a result of the Redevelopment Agency closure. The balance at June 30, 2019, amounted to $13,095,000. Debt service payments to maturity for the 2011A Tax Allocation Bonds are as follows: Year Ending June 30 Principal Interest 2020 340,000$ 762,478$ 2021 360,000 745,860 2022 380,000 726,990 2023 400,000 707,100 2024 420,000 684,300 2025-2029 3,805,000 2,925,750 2030-2034 7,390,000 1,160,100 Total 13,095,000$ 7,712,578$ 2011B Tax Allocation Bonds In June of 2011, the former CRA issued the $5,650,000 Community Redevelopment Project Area Taxable Tax Allocation Bonds, Issue of 2011 B. The Bonds were issued for the purpose of acquiring land for resale and development in the Project Area. Interest varies from 7.10% to 7.70% and is payable semiannually on March 1 and September 1, commencing September 1, 2011. Principal payments are due annually commencing September 1, 2012 through September 1, 2026. The Bonds are payable from and secured by a pledge of Tax Increment, less amounts required to make payments under the Pass-Through Agreements, annual debt service of the 2004 Bonds and the Housing Set-Aside Amount. The 2011 B Tax Allocation Bond was transferred to the Successor Agency on February 1, 2012 as a result of the Redevelopment Agency closure. The balance at June 30, 2019, amounted to $3,735,000. Debt service payments to maturity for the 2011 B Taxable Tax Allocation Bonds are as follows: Year Ending June 30 Principal Interest 2020 360,000$ 270,345$ 2021 385,000 243,898 2022 410,000 214,445 2023 440,000 181,720 2024 475,000 146,493 2025-2028 1,665,000 198,468 Total 3,735,000$ 1,255,369$ 61 D.5.b Packet Pg. 145 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2019 Note 13: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency (Continued) Pledged Tax Revenues The City has pledged, as security for bonds issued, certain tax revenues for the repayment of Successor Agency bonds through final maturity on September 1, 2033, or earlier retirement, whichever occurs first. Tax revenues consist of tax increment revenues allocated to the Successor Agency pursuant to Section 33670 of the Redevelopment Law. Such Law excludes a portion of tax increment revenues required to be paid under Tax-Sharing Agreements unless the payment of such amounts has been subordinated to the payment of debt service on the Bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to local agency and school entity pursuant to any pass-through agreement, then second to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. For the current year, the total property tax revenue recognized by the Successor Agency was $2,054,163 and the debt service obligation on the bonds was $1,736,698. Note 14: Subsequent Event In August 2019, the Successor Agency to the Community Redevelopment Agency defeased the Community Redevelopment Project Area, Tax Allocation bonds, Issues 2011A and 2011 B. In December 2019, an outbreak of a novel strain of coronavirus (COVID-19) originated in China, and has since spread to a number of other countries, including the U.S. On March 11, 2020, the World Health Organization characterized COVID-19 as a pandemic. In addition, several states in the U.S., including California, have declared a state of emergency. On March 24, 2020, the City Council adopted Resolution 2020-05, ratifying the Declaration and Proclamation of a Local Emergency in response to COVID-19 in the City of Grand Terrace, as issued by the City Manager in his capacity as Director of Emergency Services. Potential impacts to the City’s future tax revenues include disruptions or restrictions on City current employees' ability to work. The economic impacts associated with COVID-19 is difficult to predict at this point. On April 28, 2020, the City Council adopted Resolution No. 2020-07 declaring a fiscal emergency related to the increase spread of COVID-19 and directing the City Manager to research, review and present to City Council for approval budget cut to mitigate the fiscal impacts to the FY2019-20 and FY2020-21 budgets. 62 D.5.b Packet Pg. 146 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) THIS PAGE INTENTIONALLY LEFT BLANK 63 D.5.b Packet Pg. 147 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE MISCELLANEOUS COST-SHARING PLAN SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Measurement Date 2014 2015 2016 2017 2018 Miscellaneous Plan Proportion of the Net Pension Liability 0.05190% 0.05638% 0.05243% 0.05107%0.05077% Proportionate Share of the Net Pension Liability 3,229,236$ 3,870,057$ 4,536,720$ 5,064,768$ 4,891,935$ Covered Payroll 1,413,685$ 1,452,613$ 1,335,625$ 1,540,292$ 1,352,434$ Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 228.43% 266.42% 339.67% 328.82%361.71% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 78.40%79.82%75.87%73.31%75.26% Notes to Schedule: Benefit Changes: No changes in benefits. Changes of Assumptions: In 2017, the account discount rate was reduced from 7.65 percent to 7.15 percent. In 2018, demographic assumptions andinflation rate were changed in accorance to the CalPERS Experience study and Review of Actuarial Assumptions December 2017. (1) Historical information is required only for measurement for which GASB Statement No. 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only five years are shown. 64 D.5.b Packet Pg. 148 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE SCHEDULE OF PLAN CONTRIBUTIONS 2015 2016 2017 2018 2019 Miscellaneous Plan Actuarially Determined Contribution 159,393$ 116,663$ 424,915$ 391,538$ 383,835$ Contribution in Relation to the Actuarially Determined Contribution (159,393) (116,663) (424,915) (391,538)(383,835) Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Covered Payroll 1,452,613$ 1,335,625$ 1,540,292$ 1,352,434$ 1,382,907$ Contributions as a Percentage of Covered Payroll 10.97%8.73% 27.59% 28.95%27.76% Note to Schedule: Valuation Date:June 30, 2016 Methods and assumptions used to determine contribution rates:Actuarial Cost Method Amortization method Level percentage of payroll Assets valuation method Market value Discount rate Payroll growth 3.00% Inflation 2.75% Projected salary increases Varies by entry age and service Individual salary growth MISCELLANEOUS COST-SHARING PLAN AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) Entry age normal (1) Historical information is required only for measurement for which GASB Statement No. 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only five years are shown. A merit scale varying by duration of employment coupled with an assumed annual inflation growth of2.75% and an annual production growth of 0.25%. 7.15% (net of administrative expenses) 65 D.5.b Packet Pg. 149 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2018 2019 Total OPEB Liability Service cost 169,316$ 107,552$ Interest on the total OPEB liability 51,629 48,506 Actual and expected experience difference -- Changes in assumptions (45,427)62,620 Changes in benefit terms (259,790)- Benefit payments (45,629)(39,770) Net Change in Total OPEB Liability (129,901)178,908 Total OPEB liability - beginning 1,295,632 1,165,731 Total OPEB Liability - Ending 1,165,731$ 1,344,639$ Covered-Employee Payroll 866,196$ 1,575,073$ Total OPEB Liability as a Percentage of Covered-Employee Payroll 135%85% Notes to Schedule: None (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available. Changes in assumptions:The discount rate was changed from 3.58 percent to 3.87 percent for the measurement period endedJune 30, 2018. The discount rate was updated to 3.50% (Bond Buyer 20-Bond Index) based on municipal bond rate as of the measure date June 30, 2019. 66 D.5.b Packet Pg. 150 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE GENERAL FUNDYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual PositiveOriginal Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated 3,335,476$ 3,335,476$ 3,335,476$ -$ Resources (Inflows):Taxes 3,840,000 3,840,000 4,154,498 314,498 Intergovernmental 26,500 26,500 46,209 19,709 Charges for services 1,077,498 1,098,734 1,085,008 (13,726) Use of money and property 392,000 392,000 421,284 29,284 Fines and forfeitures 71,500 96,500 96,293 (207) Miscellaneous 85,800 120,366 63,043 (57,323) Transfers in 27,352 27,352 2,379 (24,973) Proceeds from sale of capital asset 80,000 80,000 - (80,000) Amounts Available for Appropriations 8,936,126 9,016,928 9,204,190 187,262 Charges to Appropriations (Outflow): General government 1,364,794 1,455,205 1,454,187 (1,018) Public safety 2,085,927 2,111,203 2,111,201 (2) Cultural and recreation 854,800 778,956 750,807 (28,149) Public works 1,161,303 1,377,227 1,334,339 (42,888) Capital outlay - 1,033,085 204,999 (828,086) Transfers out 126,326 126,326 120,383 (5,943) Total Charges to Appropriations 5,593,150 6,882,002 5,975,916 (906,086) Budgetary Fund Balance, June 30 3,342,976$ 2,134,926$ 3,228,274$ 1,093,348$ See Notes to Required Supplementary Information 67 D.5.b Packet Pg. 151 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE STREET IMPROVEMENTYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 545,179$ 545,179$ 545,179$ -$ Resources (Inflows): Charges for services 48,000 48,000 89,519 41,519 Use of money and property - - 7,650 7,650 Amounts Available for Appropriations 593,179 593,179 642,348 49,169 Charges to Appropriations (Outflow): Public works 47,380 - - - Transfers out 565,000 600,959 30,771 570,188 Total Charges to Appropriations 612,380 600,959 30,771 570,188 Budgetary Fund Balance, June 30 (19,201)$ (7,780)$ 611,577$ 619,357$ See Notes to Required Supplementary Information 68 D.5.b Packet Pg. 152 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE HOUSING AUTHORITYYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 1,919,672$ 1,919,672$ 1,919,672$ -$ Resources (Inflows): Use of money and property - - 6,676 6,676 Miscellaneous 50,000 50,000 - (50,000) Gain on sale of property - - 201,834 201,834 Amounts Available for Appropriations 1,969,672 1,969,672 2,128,182 158,510 Charges to Appropriations (Outflow): Economic development 28,320 59,320 34,537 24,783 Total Charges to Appropriations 28,320 59,320 34,537 24,783 Budgetary Fund Balance, June 30 1,941,352$ 1,910,352$ 2,093,645$ 183,293$ See Notes to Required Supplementary Information 69 D.5.b Packet Pg. 153 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) THIS PAGE INTENTIONALLY LEFT BLANK 70 D.5.b Packet Pg. 154 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2019 Note 1: Budgetary Data The annual budget is adopted by the City Council after the holding of a hearing and provides for the general operation of the City. The operating budget includes proposed expenditures and the means of financing them. The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This "appropriated budget" (as defined by GASB Code Section 2400.109) covers City expenditures in all governmental funds, except for the Public Financing Authority Debt Service Fund. This entity does not adopt an annual budget as effective budgetary control is achieved through bond indenture and other instrument provisions. Actual expenditures may not exceed budgeted appropriations at the fund level. Formal budgetary integration is employed as a management control device during the year. Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditures. Encumbrances and unencumbered appropriations lapse at year-end. Annual budgets for the General and Special Revenue Funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. Capital projects are budgeted through the Capital Project Funds. Appropriations for capital projects authorized, but not constructed or completed during the year, lapse at year-end, and are then included as a part of appropriations in the following year's annual budget. 71 D.5.b Packet Pg. 155 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2019 Assets: Cash and investments 243,120$ 242,735$ 127,105$ 25,741$ Receivables: Accounts Receivable - - - - Due from other governments - - - - Due from other funds - 9,000 9,000 - Total Assets 243,120$ 251,735$ 136,105$ 25,741$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities:Accounts payable -$ -$ -$ -$ Refundable Deposits - - - - Due to other funds - - - - Total Liabilities - - - - Deferred Inflows of Resources: Unavailable revenues - - - - Total Deferred Inflows of Resources - - - - Fund Balances: Restricted for: Community development projects - - 136,105 - Public safety - - - 25,741 Public works - 251,735 - - Child Care 243,120 - - - Unassigned - - - - Total Fund Balances 243,120 251,735 136,105 25,741 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 243,120$ 251,735$ 136,105$ 25,741$ Special Revenue Funds Child Care Center Storm Drain Improvement Park Development AB 3229 COPS Fund 72 D.5.b Packet Pg. 156 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2019 Assets: Cash and investments Receivables: Accounts Receivable Due from other governments Due from other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities:Accounts payableRefundable Deposits Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Child Care Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances (CONTINUED) 38,022$ 99,131$ 9,680$ 347,797$ - - - - 4,211 40,989 1,540 - - - - 9,000 42,233$ 140,120$ 11,220$ 356,797$ -$ 19,836$ -$ -$ - - - - - - - - - 19,836 - - - - - - - - - - - - - 356,797 - - - - 42,233 120,284 11,220 - - - - - - - - - 42,233 120,284 11,220 356,797 42,233$ 140,120$ 11,220$ 356,797$ Special Revenue Funds Facilities Development Air Quality Improvement State Gas Tax Traffic Safety 73 D.5.b Packet Pg. 157 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2019 Assets: Cash and investments Receivables: Accounts Receivable Due from other governments Due from other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities:Accounts payableRefundable Deposits Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Child Care Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances -$ -$ 16,535$ 584,234$ - - - - 58,604 42,164 17 - - - - - 58,604$ 42,164$ 16,552$ 584,234$ 394$ 5,429$ 8,457$ 1,940$ - - - - 713 27,869 - - 1,107 33,298 8,457 1,940 18,266 42,164 - - 18,266 42,164 - - - - - 582,294 - - - - 39,231 - 8,095 - - - - - - (33,298) - - 39,231 (33,298) 8,095 582,294 58,604$ 42,164$ 16,552$ 584,234$ Special Revenue Funds Measure I CDBG Special Districts Landscape & Lighting Spring Mountain Ranch 74 D.5.b Packet Pg. 158 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2019 Assets: Cash and investments Receivables: Accounts Receivable Due from other governments Due from other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities:Accounts payableRefundable Deposits Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Child Care Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances (CONTINUED) -$ 34,525$ 64,893$ -$ - 12,093 4,654 - 28,698 - - 46,628 - - - - 28,698$ 46,618$ 69,547$ 46,628$ -$ 990$ -$ -$ - - - - 19,596 - - 46,628 19,596 990 - 46,628 9,068 - - - 9,068 - - - 34 45,628 69,547 - - - - - - - - - - - - - - - - - 34 45,628 69,547 - 28,698$ 46,618$ 69,547$ 46,628$ Cal Recycle Grant Senior Bus Program Fund Special Revenue Funds Public, Educational & Government Access Active Transportation Program 75 D.5.b Packet Pg. 159 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2019 Assets: Cash and investments Receivables: Accounts Receivable Due from other governments Due from other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities:Accounts payableRefundable Deposits Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Child Care Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances -$ -$ 45,967$ -$ - - - - - - - - - - - - -$ -$ 45,967$ -$ -$ -$ -$ -$ - - - - - 41,643 - - - 41,643 - - - - - - - - - - - - - - - - - - - - 45,967 - - - - - - (41,643) - - - (41,643) 45,967 - -$ -$ 45,967$ -$ Capital Improvement- Streets Barton / Colton Bridge Capital Projects Funds Special Revenue Funds Highway Safety Improvement Program Enhanced Infrastructure Financing District 76 D.5.b Packet Pg. 160 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2019 Assets: Cash and investments Receivables: Accounts Receivable Due from other governments Due from other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities:Accounts payableRefundable Deposits Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Child Care Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances (CONTINUED) Permanent Fund 1,354$ 158,286$ 847,892$ 20,896$ - - - - - - - - - - - - 1,354$ 158,286$ 847,892$ 20,896$ 168$ -$ 15,007$ -$ - - - 20,896 - - - - 168 - 15,007 20,896 1,186 - - - 1,186 - - - - - - - - - - - - 158,286 832,885 - - - - - - - - - - 158,286 832,885 - 1,354$ 158,286$ 847,892$ 20,896$ Dog Park Endowment fund Capital Projects Capital Project - Parks Capital Projects - Commerce Way Project Capital Projects Funds 77 D.5.b Packet Pg. 161 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDSJUNE 30, 2019 Assets: Cash and investments Receivables: Accounts Receivable Due from other governments Due from other funds Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities:Accounts payableRefundable Deposits Due to other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Restricted for: Community development projects Public safety Public works Child Care Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances 2,907,913$ 16,747 222,851 27,000 3,174,511$ 52,221$ 20,896 136,449 209,566 70,684 70,684 1,190,405 25,741 1,509,936 243,120 (74,941) 2,894,261 3,174,511$ Total Governmental Funds 78 D.5.b Packet Pg. 162 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) THIS PAGE INTENTIONALLY LEFT BLANK 79 D.5.b Packet Pg. 163 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 Revenues:Taxes -$ -$ -$ -$ Licenses and permits - - - - Intergovernmental - - - 149,154 Charges for services - 44,680 217,230 - Use of money and property 3,611 4,184 1,969 1,513 Fines and forfeitures - - - - Miscellaneous - - - - Total Revenues 3,611 48,864 219,199 150,667 Expenditures: Current: General government - - - - Public safety - - - 150,050 Cultural and recreation 148,606 - - - Public works - - - - Capital outlay - - - - Total Expenditures 148,606 - - 150,050 Excess (Deficiency) of Revenues Over (Under) Expenditures (144,995) 48,864 219,199 617 Other Financing Sources (Uses):Transfers in - - - - Transfers out - - (145,510) - Proceeds from sale of capital asset 850,000 - - - Total Other Financing Sources (Uses)850,000 - (145,510) - Net Change in Fund Balances 705,005 48,864 73,689 617 Fund Balances, Beginning of Year, as previously reported (461,885) 202,871 62,416 25,124 Restatements - - - - Fund Balances, Beginning of Year, as restated (461,885) 202,871 62,416 25,124 Fund Balances, End of Year 243,120$ 251,735$ 136,105$ 25,741$ AB 3229 COPS Fund Child Care Center Storm Drain Improvement Park Development Special Revenue Funds 80 D.5.b Packet Pg. 164 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 Revenues:TaxesLicenses and permitsIntergovernmental Charges for services Use of money and propertyFines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Cultural and recreation Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses):Transfers inTransfers outProceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year (CONTINUED) Traffic Safety -$ -$ -$ -$ - - - - 16,244 491,924 - - - - - 35,520 1,041 1,583 150 6,229 - - 7,358 - - - - - 17,285 493,507 7,508 41,749 - - - - - - - - - - - - - 541,213 - - 55,075 - - - 55,075 541,213 - - (37,790) (47,706) 7,508 41,749 - 109,858 - - (5,000) (86,110) - - - - - - (5,000) 23,748 - - (42,790) (23,958) 7,508 41,749 85,023 144,242 3,712 315,048 - - - - 85,023 144,242 3,712 315,048 42,233$ 120,284$ 11,220$ 356,797$ Air Quality Improvement Special Revenue Funds State Gas Tax Facilities Development 81 D.5.b Packet Pg. 165 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 Revenues:TaxesLicenses and permitsIntergovernmental Charges for services Use of money and propertyFines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Cultural and recreation Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses):Transfers inTransfers outProceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year Measure I -$ -$ 19,464$ -$ - - - 155,750 217,131 35,000 - - - - - - 1,947 44 181 9,348 - - 282 - - - - - 219,078 35,044 19,927 165,098 - - - - - - - - - - - 1,940 635,144 42,164 17,140 - - - - - 635,144 42,164 17,140 1,940 (416,066) (7,120) 2,787 163,158 - - - - - - - - - - - - - - - - (416,066) (7,120) 2,787 163,158 455,297 (26,178) 5,308 419,136 - - - - 455,297 (26,178) 5,308 419,136 39,231$ (33,298)$ 8,095$ 582,294$ CDBG Special Districts Landscape & Lighting Spring Mountain Ranch Special Revenue Funds 82 D.5.b Packet Pg. 166 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 Revenues:TaxesLicenses and permitsIntergovernmental Charges for services Use of money and propertyFines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Cultural and recreation Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses):Transfers inTransfers outProceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year (CONTINUED) -$ -$ -$ -$ - - - - 29,630 41,624 - 123,283 - 397 - - - 590 984 - - - - - - - 21,134 - 29,630 42,611 22,118 123,283 - - - - - - - - 29,630 46,900 - 52,661 - - - - - - - - 29,630 46,900 - 52,661 - (4,289) 22,118 70,622 - 15,000 - - - - - - - - - - - 15,000 - - - 10,711 22,118 70,622 34 34,917 47,429 (70,622) - - - - 34 34,917 47,429 (70,622) 34$ 45,628$ 69,547$ -$ Cal Recycle Grant Senior Bus Program Fund Public, Educational & Government Access Active Transportation Program Special Revenue Funds 83 D.5.b Packet Pg. 167 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 Revenues:TaxesLicenses and permitsIntergovernmental Charges for services Use of money and propertyFines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Cultural and recreation Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses):Transfers inTransfers outProceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year -$ -$ -$ -$ - - - - 24,956 - - - - - - - - 21 19,228 - - - - - - - - - 24,956 21 19,228 - - 8,100 - - - - - - - - - - - - 86,110 - 24,956 - - - 24,956 8,100 86,110 - - (8,079) (66,882) - - - 86,110 - - - (892,574) (2,379) - - - - - - (806,464) (2,379) - (8,079) (873,346) (2,379) - (33,564) 919,313 2,379 - - - - - (33,564) 919,313 2,379 -$ (41,643)$ 45,967$ -$ Highway Safety Improvement Program Enhanced Infrastructure Financing District Capital Improvement- Streets Barton / Colton Bridge Capital Projects Funds Special Revenue Funds 84 D.5.b Packet Pg. 168 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 Revenues:TaxesLicenses and permitsIntergovernmental Charges for services Use of money and propertyFines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Cultural and recreation Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses):Transfers inTransfers outProceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year (CONTINUED) Permanent Funds -$ -$ -$ -$ - - - - - - 75,221 - - - - - - 3,335 - - - - - - 1,446 - - - 1,446 3,335 75,221 - - - - - - - - - - - - - 1,446 - - - - 102,535 165,681 - 1,446 102,535 165,681 - - (99,200) (90,460) - 525 145,510 923,345 - - - - - - - - - 525 145,510 923,345 - 525 46,310 832,885 - (525) 111,976 - 13,119 - - - (13,119) (525) 111,976 - - -$ 158,286$ 832,885$ -$ Capital Projects Capital Project - Parks Capital Projects - Commerce Way Project Capital Projects Funds Dog Park Endowment fund 85 D.5.b Packet Pg. 169 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2019 Revenues:TaxesLicenses and permitsIntergovernmental Charges for services Use of money and propertyFines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Cultural and recreation Public works Capital outlay Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses):Transfers inTransfers outProceeds from sale of capital asset Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year, as previously reported Restatements Fund Balances, Beginning of Year, as restated Fund Balances, End of Year 19,464$ 155,750 1,204,167 297,827 55,958 7,640 22,580 1,763,386 8,100 150,050 279,737 1,323,217 348,247 2,109,351 (345,965) 1,280,348 (1,131,573) 850,000 998,775 652,810 2,254,570 (13,119) 2,241,451 2,894,261$ Total Governmental Funds 86 D.5.b Packet Pg. 170 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CHILD CARE CENTERYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (461,885)$ (461,885)$ (461,885)$ -$ Resources (Inflows): Use of money and property - - 3,611 3,611 Proceeds from sale of capital asset - - 850,000 850,000 Amounts Available for Appropriations (461,885) (461,885) 391,726 853,611 Charges to Appropriations (Outflow): Cultural and recreation - 150,000 148,606 1,394 Total Charges to Appropriations - 150,000 148,606 1,394 Budgetary Fund Balance, June 30 (461,885)$ (611,885)$ 243,120$ 855,005$ 87 D.5.b Packet Pg. 171 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE STORM DRAIN IMPROVEMENTYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 202,871$ 202,871$ 202,871$ -$ Resources (Inflows): Charges for services 13,250 13,250 44,680 31,430 Use of money and property - - 4,184 4,184 Amounts Available for Appropriations 216,121 216,121 251,735 35,614 Charges to Appropriation (Outflow): Public works 19,570 - - - Capital outlay 50,000 50,000 - 50,000 Total Charges to Appropriations 69,570 50,000 - 50,000 Budgetary Fund Balance, June 30 146,551$ 166,121$ 251,735$ 85,614$ 88 D.5.b Packet Pg. 172 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE PARK DEVELOPMENTYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 62,416$ 62,416$ 62,416$ -$ Resources (Inflows): Charges for services 89,400 89,400 217,230 127,830 Use of money and property - - 1,969 1,969 Amounts Available for Appropriations 151,816 151,816 281,615 129,799 Charges to Appropriations (Outflow):Cultural and recreation 1,250 - - - Public works 22,190 - - - Transfers out 185,000 185,000 145,510 39,490 Total Charges to Appropriations 208,440 185,000 145,510 39,490 Budgetary Fund Balance, June 30 (56,624)$ (33,184)$ 136,105$ 169,289$ 89 D.5.b Packet Pg. 173 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE AB 3229 COPS FUNDYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 25,124$ 25,124$ 25,124$ -$ Resources (Inflows): Intergovernmental 100,050 149,050 149,154 104 Use of money and property - 1,000 1,513 513 Amounts Available for Appropriations 125,174 175,174 175,791 617 Charges to Appropriations (Outflow): Public safety 100,050 150,050 150,050 - Total Charges to Appropriations 100,050 150,050 150,050 - Budgetary Fund Balance, June 30 25,124$ 25,124$ 25,741$ 617$ 90 D.5.b Packet Pg. 174 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENTYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 85,023$ 85,023$ 85,023$ -$ Resources (Inflows): Intergovernmental 13,000 13,000 16,244 3,244 Use of money and property - - 1,041 1,041 Amounts Available for Appropriations 98,023 98,023 102,308 4,285 Charges to Appropriations (Outflow): Public works 10,500 10,500 - 10,500 Capital outlay 55,100 55,100 55,075 25 Transfers out 5,000 5,000 5,000 - Total Charges to Appropriations 70,600 70,600 60,075 10,525 Budgetary Fund Balance, June 30 27,423$ 27,423$ 42,233$ 14,810$ 91 D.5.b Packet Pg. 175 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE STATE GAS TAXYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 144,242$ 144,242$ 144,242$ -$ Resources (Inflows): Intergovernmental 505,600 505,600 491,924 (13,676) Use of money and property 14,200 14,200 1,583 (12,617) Transfers in 90,800 90,800 109,858 19,058 Amounts Available for Appropriations 754,842 754,842 747,607 (7,235) Charges to Appropriations (Outflow): Public works 608,880 541,294 541,213 81 Transfers out - 117,000 86,110 30,890 Total Charges to Appropriations 608,880 658,294 627,323 30,971 Budgetary Fund Balance, June 30 145,962$ 96,548$ 120,284$ 23,736$ 92 D.5.b Packet Pg. 176 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE TRAFFIC SAFETYYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 3,712$ 3,712$ 3,712$ -$ Resources (Inflows): Use of money and property - - 150 150 Fines and forfeitures 6,000 6,000 7,358 1,358 Amounts Available for Appropriations 9,712 9,712 11,220 1,508 Budgetary Fund Balance, June 30 9,712$ 9,712$ 11,220$ 1,508$ 93 D.5.b Packet Pg. 177 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE FACILITIES DEVELOPMENTYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 315,048$ 315,048$ 315,048$ -$ Resources (Inflows): Charges for services 20,000 20,000 35,520 15,520 Use of money and property - - 6,229 6,229 Amounts Available for Appropriations 335,048 335,048 356,797 21,749 Charges to Appropriation (Outflow): Cultural and recreation 90,020 80,000 - 80,000 Total Charges to Appropriations 90,020 80,000 - 80,000 Budgetary Fund Balance, June 30 245,028$ 255,048$ 356,797$ 101,749$ 94 D.5.b Packet Pg. 178 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE MEASURE IYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 455,297$ 455,297$ 455,297$ -$ Resources (Inflows): Intergovernmental 193,000 193,000 217,131 24,131 Use of money and property - - 1,947 1,947 Amounts Available for Appropriations 648,297 648,297 674,375 26,078 Charges to Appropriations (Outflow): Public works 63,000 663,940 635,144 28,796 Capital outlay 130,000 12,239 - 12,239 Total Charges to Appropriations 193,000 676,179 635,144 41,035 Budgetary Fund Balance, June 30 455,297$ (27,882)$ 39,231$ 67,113$ 95 D.5.b Packet Pg. 179 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CDBGYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (26,178)$ (26,178)$ (26,178)$ -$ Resources (Inflows): Intergovernmental 47,876 47,876 35,000 (12,876) Use of money and property - - 44 44 Amounts Available for Appropriations 21,698 21,698 8,866 (12,832) Charges to Appropriations (Outflow): Public works 47,876 47,876 42,164 5,712 Total Charges to Appropriations 47,876 47,876 42,164 5,712 Budgetary Fund Balance, June 30 (26,178)$ (26,178)$ (33,298)$ (7,120)$ 96 D.5.b Packet Pg. 180 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE SPECIAL DISTRICTS LANDSCAPE & LIGHTINGYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 5,308$ 5,308$ 5,308$ -$ Resources (Inflows): Taxes 19,440 19,440 19,464 24 Use of money and property - - 181 181 Fines and forfeitures - - 282 282 Amounts Available for Appropriations 24,748 24,748 25,235 487 Charges to Appropriations (Outflow): Public works 19,440 19,440 17,140 2,300 Total Charges to Appropriations 19,440 19,440 17,140 2,300 Budgetary Fund Balance, June 30 5,308$ 5,308$ 8,095$ 2,787$ 97 D.5.b Packet Pg. 181 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE SPRING MOUNTAIN RANCH YEAR ENDED JUNE 30, 2019 Variance with Final BudgetBudget Amounts Actual PositiveOriginal Final Amounts (Negative)Budgetary Fund Balance, July 1 419,136$ 419,136$ 419,136$ -$ Resources (Inflows):Licenses and permits - - 155,750 155,750 Use of money and property 3,000 3,000 9,348 6,348 Amounts Available for Appropriations 422,136 422,136 584,234 162,098 Charges to Appropriation (Outflow): Cultural and recreation - - 1,940 (1,940) Total Charges to Appropriations - - 1,940 (1,940) Budgetary Fund Balance, June 30 422,136$ 422,136$ 582,294$ 160,158$ 98 D.5.b Packet Pg. 182 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CAL RECYCLE GRANTYEAR ENDED JUNE 30, 2019 Variance with Final BudgetBudget Amounts Actual PositiveOriginal Final Amounts (Negative)Budgetary Fund Balance, July 1, as restated 34$ 34$ 34$ -$ Resources (Inflows):Intergovernmental 5,000 73,484 29,630 (43,854) Amounts Available for Appropriations 5,034 73,518 29,664 (43,854) Charges to Appropriation (Outflow):Cultural and recreation - 68,484 29,630 38,854 Capital outlay 5,000 5,000 - 5,000 Total Charges to Appropriations 5,000 73,484 29,630 43,854 Budgetary Fund Balance, June 30 34$ 34$ 34$ -$ 99 D.5.b Packet Pg. 183 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE SENIOR BUS PROGRAM FUNDYEAR ENDED JUNE 30, 2019 Variance with Final BudgetBudget Amounts Actual PositiveOriginal Final Amounts (Negative)Budgetary Fund Balance, July 1 34,917$ 34,917$ 34,917$ -$ Resources (Inflows):Intergovernmental 22,160 22,160 41,624 19,464 Charges for services 240 240 397 157 Use of money and property 50 50 590 540 Transfers in 15,000 15,000 15,000 - Amounts Available for Appropriations 72,367 72,367 92,528 20,161 Charges to Appropriation (Outflow):Cultural and recreation 37,450 37,450 46,900 (9,450) Total Charges to Appropriations 37,450 37,450 46,900 (9,450) Budgetary Fund Balance, June 30 34,917$ 34,917$ 45,628$ 10,711$ 100 D.5.b Packet Pg. 184 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE PUBLIC, EDUCATIONAL & GOVERNMENT ACCESSYEAR ENDED JUNE 30, 2019 Variance with Final BudgetBudget Amounts Actual PositiveOriginal Final Amounts (Negative)Budgetary Fund Balance, July 1 47,429$ 47,429$ 47,429$ -$ Resources (Inflows):Use of money and property - - 984 984 Miscellaneous 21,500 21,500 21,134 (366) Amounts Available for Appropriations 68,929 68,929 69,547 618 Charges to Appropriation (Outflow):Capital outlay 21,500 21,500 - 21,500 Total Charges to Appropriations 21,500 21,500 - 21,500 Budgetary Fund Balance, June 30 47,429$ 47,429$ 69,547$ 22,118$ 101 D.5.b Packet Pg. 185 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE ACTIVE TRANSPORTATION PROGRAM YEAR ENDED JUNE 30, 2019 Variance with Final BudgetBudget Amounts Actual PositiveOriginal Final Amounts (Negative)Budgetary Fund Balance, July 1 (70,622)$ (70,622)$ (70,622)$ -$ Resources (Inflows): Intergovernmental 120,000 120,000 123,283 3,283 Amounts Available for Appropriations 49,378 49,378 52,661 3,283 Charges to Appropriation (Outflow):Cultural and recreation 119,810 119,810 52,661 67,149 Total Charges to Appropriations 119,810 119,810 52,661 67,149 Budgetary Fund Balance, June 30 (70,432)$ (70,432)$ -$ 70,432$ 102 D.5.b Packet Pg. 186 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE HIGHWAY SAFETY IMPROVEMENT PROGRAMYEAR ENDED JUNE 30, 2019 Variance with Final BudgetBudget Amounts Actual PositiveOriginal Final Amounts (Negative)Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows):Intergovernmental 235,000 235,000 24,956 (210,044) Amounts Available for Appropriations 235,000 235,000 24,956 (210,044) Charges to Appropriation (Outflow):Public works 34,690 - - - Capital outlay 200,000 200,000 24,956 175,044 Total Charges to Appropriations 234,690 200,000 24,956 175,044 Budgetary Fund Balance, June 30 310$ 35,000$ -$ (35,000)$ 103 D.5.b Packet Pg. 187 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CAPITAL IMPROVEMENT- STREETSYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 919,313$ 919,313$ 919,313$ -$ Resources (Inflows): Use of money and property - - 19,228 19,228 Transfers in 565,000 718,365 86,110 (632,255) Amounts Available for Appropriations 1,484,313 1,637,678 1,024,651 (613,027) Charges to Appropriations (Outflow): Public works - 117,406 86,110 31,296 Capital outlay 550,000 550,000 - 550,000 Transfers out - - 892,574 (892,574) Total Charges to Appropriations 550,000 667,406 978,684 (311,278) Budgetary Fund Balance, June 30 934,313$ 970,272$ 45,967$ (924,305)$ 104 D.5.b Packet Pg. 188 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE BARTON / COLTON BRIDGEYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 2,379$ 2,379$ 2,379$ -$ Charges to Appropriation (Outflow): Transfers out 2,352 2,352 2,379 (27) Total Charges to Appropriations 2,352 2,352 2,379 (27) Budgetary Fund Balance, June 30 27$ 27$ -$ (27)$ 105 D.5.b Packet Pg. 189 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTSYEAR ENDED JUNE 30, 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 (525)$ (525)$ (525)$ -$ Resources (Inflows): Miscellaneous - - 1,446 1,446 Transfers in 525 525 525 - Amounts Available for Appropriations - - 1,446 1,446 Charges to Appropriation (Outflow): Public works - - 1,446 (1,446) Total Charges to Appropriations - - 1,446 (1,446) Budgetary Fund Balance, June 30 -$ -$ -$ -$ 106 D.5.b Packet Pg. 190 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECT - PARKSYEAR ENDED JUNE 30, 2019 Variance with Final BudgetBudget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 111,976$ 111,976$ 111,976$ -$ Resources (Inflows): Use of money and property - - 3,335 3,335 Transfers in 185,000 185,000 145,510 (39,490) Amounts Available for Appropriations 296,976 296,976 260,821 (36,155) Charges to Appropriation (Outflow):Capital outlay 150,000 205,623 102,535 103,088 Total Charges to Appropriations 150,000 205,623 102,535 103,088 Budgetary Fund Balance, June 30 146,976$ 91,353$ 158,286$ 66,933$ 107 D.5.b Packet Pg. 191 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE BUDGETARY COMPARISON SCHEDULE CAPITAL PROJECTS - COMMERCE WAY PROJECT YEAR ENDED JUNE 30, 2019 Variance with Final BudgetBudget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 -$ -$ -$ -$ Resources (Inflows): Intergovernmental - - 75,221 75,221 Transfers in - - 923,345 923,345 Amounts Available for Appropriations - - 998,566 998,566 Charges to Appropriation (Outflow): Capital outlay - 968,683 165,681 803,002 Total Charges to Appropriations - 968,683 165,681 803,002 Budgetary Fund Balance, June 30 -$ (968,683)$ 832,885$ 1,801,568$ 108 D.5.b Packet Pg. 192 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF ASSETS AND LIABILITIES ALL AGENCY FUNDSJUNE 30, 2019 Totals Assets:Cash and investments 675,528$ 89,177$ 764,705$ Due from other governments 3,572 - 3,572 Total Assets 679,100$ 89,177$ 768,277$ Liabilities:Accounts payable 8,752$ -$ 8,752$ Deposits payable 670,348 89,177 759,525 Total Liabilities 679,100$ 89,177$ 768,277$ Refundable Deposits Trust Fund Employees Deferred Comp Trust Fund 109 D.5.b Packet Pg. 193 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) CITY OF GRAND TERRACE COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESALL AGENCY FUNDSYEAR ENDED JUNE 30, 2019 Balance Balance July 1, 2018 Additions Deductions June 30, 2019 Refundable Deposits Trust Fund Assets: Cash and investments 427,513$ 441,915$ 193,900$ 675,528$ Due from other governments - 3,572 - 3,572 Total Assets 427,513$ 445,487$ 193,900$ 679,100$ Liabilities: Accounts payable 493$ 74,487$ 66,228$ 8,752$ Deposits payable 427,020 435,389 192,061 670,348 Total Liabilities 427,513$ 509,876$ 258,289$ 679,100$ Employees Deferred Comp Trust Fund Assets: Cash and investments 85,882$ 3,295$ -$ 89,177$ Total Assets 85,882$ 3,295$ -$ 89,177$ Liabilities:Deposits payable 85,882$ 3,295$ -$ 89,177$ Total Liabilities 85,882$ 3,295$ -$ 89,177$ Totals - All Agency Funds Assets: Cash and investments 513,395$ 445,210$ 193,900$ 764,705$ Due from other governments - 3,572 - 3,572 Total Assets 513,395$ 448,782$ 193,900$ 768,277$ Liabilities: Accounts payable 493$ 74,487$ 66,228$ 8,752$ Deposits payable 512,902 438,684 192,061 759,525 Total Liabilities 513,395$ 513,171$ 258,289$ 768,277$ 110 D.5.b Packet Pg. 194 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 Page 1 of 6 PURPOSE: The purpose of this policy is to ensure that the City’s purchasing practices are carried out in accordance with the Purchasing Ordinance, which was approved by the City Council on November 27, 2012. DEFINITIONS: Notice Inviting Bids: A document issued to specified potential bidders, or posted on the City’s website, inviting bids for specified merchandise or service. The subsequent contract is generally awarded to the lowest responsible bidder. Purchase Order: A document which authorizes the delivery of specified merchandise or the rendering of certain service and the making of a charge for such merchandise or service. Purchase Requisition: A document submitted by a department requesting approval to purchase specified merchandise or service. Upon its approval, a Purchase Order is issued to the selected vendor or service provider. Purchasing Officer: The Purchasing Ordinance designates a Purchasing Officer, to be appointed by the City Manager. The City Manager has currently appointed the City’s Finance Director as the Purchasing Officer. Under the direction of this position, the Finance Department is charged with the responsibility of administering the Purchasing Ordinance. Request for Proposals (RFP): A document issued to specified potential service providers, or posted on the City’s website, requesting proposals for services. The subsequent contract is awarded based on a number of factors including professional expertise, experience, service level, references and pricing. Consideration of factors other than pricing differentiates an RFP process from a “Notice Inviting Bids” process. POLICY & PROCEDURES: I. Informal Purchases ($0 - $500) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. A Purchase Order (P.O.) is not required for purchases. C. Price quotes are not required for purchases, although they are encouraged when easily obtainable. D. Payment for purchases is made by submitting a Request for Payment form with approval by the applicable Department Head or designee (per the Authorized Approval Listing). E. Use of City credit card or petty cash may be appropriate for certain low-value purchases, with separate guidelines applying to these purchases. D.5.b Packet Pg. 195 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 Page 2 of 6 II. Informal Purchases ($501 - $1,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. A Purchase Order (P.O.) is required for purchases. C. Price quotes are not required for purchases, although they are encouraged when easily obtainable. D. Payment for purchases is made by submitting a Purchase Requisition form with approval by the applicable Department Head or designee (per the Authorized Approval Listing). E. Approval from the City Manager is required. III. Open Market Purchases ($1,001 - $10,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. Three (3) informal price quotes must be obtained. C. A Purchase Requisition must be submitted to Finance by the requesting department with the price quotes attached as back-up. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). D. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) E. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). IV. Formal Purchases (over $10,000) The following procedures apply: A. Funds must be budgeted for the goods or services to be purchased. B. Formal contracting procedures must be followed as enumerated in Section 3.24.080 of the Purchasing Ordinance, including: D.5.b Packet Pg. 196 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 Page 3 of 6 1. Notice Inviting Bid 2. Bidders’ List 3. Bidders’ Security 4. Bid Opening Procedure 5. Performance Bonds as applicable 6. Formal Award of Contract by the City Council C. Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report attached as backup. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). D. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) E. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. number. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). V. Professional Services A. Professional Services are not awarded via formal bidding, since there are a number of factors other than pricing used to determine the company that is best suited to provide the service. Such factors include professional expertise, experience, service level and references. B. Although not formally bid, it is recommended that professional services with an expected value greater than $10,000 utilize a competitive selection process via a Request for Proposals (RFP). C. RFPs should be posted on the City’s web page and distributed to known companies with expertise in the applicable service area. Generally, at least 30 days should be allowed for proposal submittal following the RFP issuance date. It may also be appropriate to schedule a pre-submittal conference to clarify the RFP and respond to the interested parties’ questions. D. Contracts for professional services with a value of $10,000 or less may be awarded by the City Manager. E. Contracts for professional services with a value greater than $10,000 must be awarded by the City Council. D.5.b Packet Pg. 197 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 Page 4 of 6 F. Following award of contract, a Purchase Requisition should be submitted by the applicable department, with a copy of the executed contract and City Council staff report (if applicable) attached as backup. Purchase Requisitions require approval of the applicable Department Head or designee (per the Authorized Approval Listing). G. Following Finance review of the Purchase Requisition, a P.O. will be issued by Finance and mailed to the vendor, with a copy returned to the originating department. Funds will also be encumbered in the financial system at this time. (Note: P.O.s are signed by the Finance Director signifying that funds are available and that the purchasing requirements have been met.) H. Invoices to be paid against an approved P.O. do not require a Request for Payment form. Instead, to expedite processing, an approval stamp may be utilized on the invoice referencing the applicable P.O. number. (The account code to be charged does not need to be referenced on the invoice unless the P.O. is allocated to multiple account numbers, as the invoice will be charged per the P.O.) Department Head or designee signature is required on the invoice (per the Authorized Approval Listing). VI. Single Source Purchases / Waiver of Bidding / Piggy Backing A. If it is determined that only one company is available or capable of providing the desired goods or services, the purchase may be approved without obtaining price quotes (purchases of $1,001 to $10,000), conducting formal bidding (purchases over $10,000), or utilizing an RFP process (professional services over $10,000), provided that approval is received for the single source purchase, as follows: 1. Purchases with a value of $1,001 - $10,000: Memo explaining the basis for the single source purchase must be submitted by the applicable Department Head along with the Purchase Requisition and approved by the City Manager. 2. Purchases with a value greater than $10,000: Approval for the single source purchase must be submitted via a staff report in conjunction with the contract award and approved by the City Council. B. If a purchase is not considered to be single source but a waiver of bidding/competitive selection is requested because it is in the best interest of the City, approvals must be obtained by the City Manager ($1,001 - $10,000) or City Council (over $10,000) as described above. C. Justification must be provided if a waiver of bidding/competitive selection is requested. A waiver is an exception to the competitive bid process. As a result, explanation/documentation is required to begin the review process. Below are examples for requesting the waiver of the bid/competitive selection process: i. Sole Source: Only one company is available/capable of performing the task or providing the goods or services; the goods or services provided by D.5.b Packet Pg. 198 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 Page 5 of 6 a specific company are unique in quality, performance, or use specifications. ii. Time Sensitive: The need for the desired good/service is needed to correct or prevent an emergency; iii. Intrinsic Value: When a good or service is determined by its historic, artistic, or educational value. D. If the City has determined that another municipality (host agency) has completed the competitive bid/RFP process awarding a contract within the last 6 months for goods and/or services that the City may require, in order to avoid time and costs, the City has the option to “piggyback” on the public agency’s existing contract provided the following requirements are met: i. Approval must comply with the purchasing policy as follows: a. $0 - $500 requires Department Head approval; b. $501 - $10,000 requires City Manager approval; and c. Over $10,000 requires City Council approval. ii. The other public agency’s bid and contract award process meet’s the City’s bid and contract award requirements; iii. The host agency and the City (piggybacking agency) must sign an agreement allowing the piggyback; iv. The vendor/contractor must agree to the piggyback, offering the same terms and conditions written in their contract to the piggyback agency; and v. The vendor must inform both the host agency and the piggybacking agency in writing that they agree to the piggyback. VII. Contract Requirements A. If a purchase involves work to be performed on City premises or the public right of way, regardless of the dollar amount, a City contract is recommended to adequately address liability issues. If there is uncertainty regarding whether or not a contract is needed for a given purchase, the City Attorney should be consulted. B. Contracts up to $10,000 in value may be approved by the City Manager, following City Attorney approval as to legal form. Whenever possible, the standard City contract form should be used. C. Contracts over $10,000 in value require City Council approval via the agenda process. D.5.b Packet Pg. 199 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) City of Grand Terrace Fiscal Policy Policy No. 3.01.01 Subject: Purchasing Effective Date: 5/13/14 Page 6 of 6 D. Contracts should include a requirement for the service provider to obtain a City Business License. The department administering the contract is responsible for coordinating with Finance to ensure that a Business License is obtained if the contract value is $10,000 or less (City Manager approval). If the contract value is greater than $10,000 (City Council approval), the City Clerk’s Office will coordinate with Finance to ensure that a Business License is obtained. E. The department administering the contract is also responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements if the contract value is $10,000 or less (City Manager approval). If the contract value is greater than $10,000 (City Council approval), the City Clerk’s Office will be responsible for obtaining the insurance certificates from the service provider and verifying that the coverage conforms to the contract requirements. D.5.b Packet Pg. 200 At t a c h m e n t : F Y 2 0 E M P G S u b r e c i p i e n t A g r e e m e n t ( E m e r g e n c y M a n a g e m e n t P e r f o r m a n c e G r a n t ( E M P G ) ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: An Amendment to the Agreement Between the City of Grand Terrace and Michael Baker International - Housing Element Consultant Services for the 2021-2029 Planning Period to Incorporate Additional Public Outreach to Complete HCD Response to Comments and Obtain an Adopted Housing Element PRESENTED BY: Scott Hutter, Planning & Development Services Director RECOMMENDATION: 1. Approve an Amendment No. 1 to 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 $37,110.00, for a total not to exceed contract amount of $77,360; and 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 up to $24,750.00 and General Fund of $16,071.00. 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: On March 23, 2021, the City Council approved a Professional Services Agreement with J.H. Douglas and Associates in the amount of $68,950.00 for the preparation of the City’s Housing Element (sixth cycle). The contract between the City of Grand Terrace and J.H. Douglas expired and was not extended and the invoices for J.H. Douglas contract were reimbursed through the General Fund and the State’s SB2 Grant Funding. On May 23, 2023, the City Council approved a Professional Services Agreement with Michael Baker International in the amount of $40,250.00 to pick up on the preparation of the Housing Element (sixth cycle) where J.H. Douglas left off. Michael Baker International has worked diligently with City Staff over the ensuing months to address State comments and make the necessary edits to create a revised draft Housing Element. However, a notice of violation letter was received by the City from the State on November 22, 2023, just as the Michael Baker International was finishing the revised D.6 Packet Pg. 201 draft Housing Element. Pursuant to the State Notice of Violation letter, Michael Baker International and the City Planning Department met (via web conference) with the State of California representatives on December 12, 2023. The meeting discussed status of the Housing Element Update, and the State noted that the City must conduct additional public outreach (interviews and workshops) and incorporate it into the revised draft housing element before sending it to the State for review. The State is requiring that the City engage in additional public outreach because of the time that had elapsed since initial outreach was done and the changes the State has required to be incorporated within the latest draft of the housing element. Per the State’s direction, the 6th Cycle is at its core outreach driven and therefore cannot be omitted in the final document. The scope and budget of the May 2023 Michael Baker International contract did not anticipate any additional public interviews and workshops. Therefore, after the December 12, 2023, meeting with the State the Planning Department requested that Michael Baker International provide a proposal with a budget and scope to conduct additional interviews and workshops. The proposal is in the amount of $37,110.00. The total contract amount will increase to $77,360.00. Attached is the proposed Amendment No. 1 to the Housing Element consultant services contract (Attachment 1), the California Department of Housing and Community Development (HCD) Notice of Violation Letter dated November 22, 2023, with City Response dated December 22, 2023 (Attachment 2), the Local Early Action Plan (LEAP) Grant approval for $65,000.00 (Attachment 3). FISCAL IMPACT: The City currently has the LEAP Grant totaling $65,000.00 to apply towards the Housing Element Update. City Planning Staff applied online in December to extend the LEAP Grant a year, so it now is available until September 2024. City Planning Staff has verified the entire grant of $65,000.00 is available and has also submitted a revise budget and scope for the LEAP Grant to the State which incorporates the Michael Baker contract from May 2023, and this extended outreach proposal. The LEAP Grant can cover the original Michael Baker Contract of $40,250.00 and a significant portion on the new proposals cost of $40,821.00. The LEAP Grant can cover $24,750.00 and the remaining $16,071.00 will be appropriated from the General Fund Professional Services Account 10-370-250-000-000. ATTACHMENTS: 1. Amendment No. 1 to MBI Contract Agreement re Housing Element Expanded Outreach (DOCX) 2. HCD Draft Violation Letter 11.22.2023 & City Response 12.22.2023 (PDF) 3. LEAP Grant (PDF) APPROVALS: Planning Director Completed 02/1/2024 5:00 PM D.6 Packet Pg. 202 City Attorney Pending Finance Pending City Manager Pending City Council Pending ATTACHMENTS: • Attachment 1 - Amendment No 1 to MBI Agreement for Housing Element(959868.1) (DOCX) • Attachment 1 Exhibit A-1 (PDF) • Attachment 1 Exhibit A-2 (PDF) • Attachment 1 Exhibit C-1 (PDF) • Attachment 1 Exhibit C-2 (PDF) • Attachment 2 - State HCD Letter & City Reply Letter (PDF) • Attachment 3 - LEAP Grant (PDF) APPROVALS: Scott Hutter Completed 02/08/2024 7:58 AM Finance Completed 02/08/2024 8:44 AM City Manager Completed 02/08/2024 11:33 AM City Council Pending 02/13/2024 6:00 PM D.6 Packet Pg. 203 01247.0001/959868.1 AMENDMENT NO. 1 TO AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN CITY OF GRAND TERRACE AND MICHAEL BAKER INTERNATIONAL This AMENDMENT NO. 1 TO THE AGREEMENT FOR CONTRACT SERVICES BY AND BETWEEN THE CITY OF GRAND TERRACE AND MICHAEL BAKER INTERNATIONAL(“Amendment No. 1”) by and between the CITY OF GRAND TERRACE (“City”) and MICHAEL BAKER INTERNATIONAL (“Consultant”) is effective as of the 13th day of February, 2024. RECITALS A. The City and Consultant entered into that certain Agreement for Contract Services By and Between the City of Grand Terrace and Michael Baker International, dated May 23, 2023, to complete the City’s 6th Cycle Housing Element Update, with a total compensation (“Contract Sum”) of $40,250.00, and for a term of one (1) year (“Agreement”). B. Consultant has worked diligently with City Staff to address State comments and make the necessary edits to create a revised draft Housing Element. However, a notice of violation letter was received by the City from the State Housing and Community Development Department (“HCD”) on November 22, 2023, just as Consultant was finishing the revised draft Housing Element. C. Pursuant to the State Notice of Violation letter, Consultant and the City Planning Department met (via web conference) with HCD on December 12, 2023. The meeting discussed status of the Housing Element Update and State noted that the City must conduct additional public outreach (interviews and workshops) and incorporate it into the revised draft housing element before sending it to HCD for further review. D. Based thereon, the Planning Department requested that Consultant provide a proposal with a budget and scope to conduct additional interviews and workshops. E. The Parties now desire to amend the Agreement to incorporate the Proposal within the Scope of Work as Exhibit “A-2” to include the additional interviews and workshops, increase the Contract Sum by $37,110.00, for a total not to exceed amount of $77,360.00, and extend the term of the Agreement to be consistent with the completion of the City’s 6th Cycle Housing Element. F. Except as amended hereby, this extension is subject to the same terms and conditions as provided in the Agreement. TERMS 1. Contract Amendments. The Agreement is amended as provided herein: 1.1 Section 2.1 Contract Sum is hereby amended in its entirety and shall now read as follows (strikethrough represents deleted language while bold italics represents added D.6.a Packet Pg. 204 At t a c h m e n t : A t t a c h m e n t 1 - A m e n d m e n t N o 1 t o M B I A g r e e m e n t f o r H o u s i n g E l e m e n t ( 9 5 9 8 6 8 . 1 ) ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 01247.0001/959868.1 language): “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) Seventy-Seven Thousand, Three Hundred and Sixty Dollars ($77, 360.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.8” 1.2 Section 3.4 Term is hereby amended in its entirety and shall now read as follows (strikethrough represents deleted language while bold italics represents added language): “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) two (2) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”).” 1.3 Exhibit “A” Scope of Services is hereby amended in its entirety and shall now read as follows (strikethrough represents deleted language while bold italics represents added language): “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 Micheael 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 conduct additional public outreach to address State HCD’s request to obtain input from lower-income and special needs households that will be incorporated into an updated administrative Housing Element draft, as well as provide support and participate in Planning Commission and City Council ratification or re- adoption hearings as may be necessary. 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 D.6.a Packet Pg. 205 At t a c h m e n t : A t t a c h m e n t 1 - A m e n d m e n t N o 1 t o M B I A g r e e m e n t f o r H o u s i n g E l e m e n t ( 9 5 9 8 6 8 . 1 ) ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 01247.0001/959868.1 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. C. The foregoing is a brief summary and the full scope of services to be provided by consultant are included on the attached Proposals enclosed as Exhibits A-1and A-2, attached hereto and incorporated by reference as though set forth in full.” 1.4 Exhibit “C” Schedule of Compensation is hereby amended in its entirety and shall now read as follows (strikethrough represents deleted language while bold italics represents added language): “I. Consultant shall perform the following Services at the budged amounts included on the cost estimate provided on Exhibit “C-1,” and “C-2.” 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 Seventy-Seven Thousand, Three Hundred and Sixty Dollars ($77, 360.00) 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 and C- 2.” 2. Continuing Effect of Agreement. Except as amended by this Amendment No. 1, D.6.a Packet Pg. 206 At t a c h m e n t : A t t a c h m e n t 1 - A m e n d m e n t N o 1 t o M B I A g r e e m e n t f o r H o u s i n g E l e m e n t ( 9 5 9 8 6 8 . 1 ) ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 01247.0001/959868.1 all provisions of the Agreement shall remain unchanged and in full force and effect. From and after the date of this Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 1. 3. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation. Consultant represents and warrants to City that, as of the date of this Amendment No. 1, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. City represents and warrants to Consultant that, as of the date of this Amendment No. 1, Consultant is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement. 4. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 1. 5. Authority. The persons executing this Amendment No. 1 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 1 on behalf of said party, (iii) by so executing this Amendment No. 1, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment No. 1 does not violate any provision of any other agreement to which said party is bound. [SIGNATURES ON FOLLOWING PAGE] D.6.a Packet Pg. 207 At t a c h m e n t : A t t a c h m e n t 1 - A m e n d m e n t N o 1 t o M B I A g r e e m e n t f o r H o u s i n g E l e m e n t ( 9 5 9 8 6 8 . 1 ) ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 01247.0001/959868.1 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 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. D.6.a Packet Pg. 208 At t a c h m e n t : A t t a c h m e n t 1 - A m e n d m e n t N o 1 t o M B I A g r e e m e n t f o r H o u s i n g E l e m e n t ( 9 5 9 8 6 8 . 1 ) ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 01247.0001/959868.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2024 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. D.6.a Packet Pg. 209 At t a c h m e n t : A t t a c h m e n t 1 - A m e n d m e n t N o 1 t o M B I A g r e e m e n t f o r H o u s i n g E l e m e n t ( 9 5 9 8 6 8 . 1 ) ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 01247.0001/959868.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2024 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. D.6.a Packet Pg. 210 At t a c h m e n t : A t t a c h m e n t 1 - A m e n d m e n t N o 1 t o M B I A g r e e m e n t f o r H o u s i n g E l e m e n t ( 9 5 9 8 6 8 . 1 ) ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 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 EXHIBIT "A-1" Michael Baker International Proposal D.6.b Packet Pg. 211 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 1 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 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 D.6.b Packet Pg. 212 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 1 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 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: D.6.b Packet Pg. 213 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 1 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 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 D.6.b Packet Pg. 214 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 1 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 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 D.6.b Packet Pg. 215 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 1 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) A-2 EXHIBIT “A-2” Michael Baker International Proposal D.6.c Packet Pg. 216 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 2 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) A-2 D.6.c Packet Pg. 217 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 2 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) A-2 D.6.c Packet Pg. 218 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 2 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) A-2 D.6.c Packet Pg. 219 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 2 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) A-2 D.6.c Packet Pg. 220 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t A - 2 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 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 Exhibit C-1 D.6.d Packet Pg. 221 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t C - 1 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) C-2 Exhibit C-2 D.6.e Packet Pg. 222 At t a c h m e n t : A t t a c h m e n t 1 E x h i b i t C - 2 ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) D.6.f Packet Pg. 223 At t a c h m e n t : A t t a c h m e n t 2 - S t a t e H C D L e t t e r & C i t y R e p l y L e t t e r ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) D.6.f Packet Pg. 224 At t a c h m e n t : A t t a c h m e n t 2 - S t a t e H C D L e t t e r & C i t y R e p l y L e t t e r ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) D.6.f Packet Pg. 225 At t a c h m e n t : A t t a c h m e n t 2 - S t a t e H C D L e t t e r & C i t y R e p l y L e t t e r ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) D.6.f Packet Pg. 226 At t a c h m e n t : A t t a c h m e n t 2 - S t a t e H C D L e t t e r & C i t y R e p l y L e t t e r ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) D.6.f Packet Pg. 227 At t a c h m e n t : A t t a c h m e n t 2 - S t a t e H C D L e t t e r & C i t y R e p l y L e t t e r ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) D.6.f Packet Pg. 228 At t a c h m e n t : A t t a c h m e n t 2 - S t a t e H C D L e t t e r & C i t y R e p l y L e t t e r ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 1/11/2021 STATE OF CALIFORNIA -DEPARTMENT OF GENERAL SERVICES STANDARD AGREEMENT AGREEMENT NUMBER PURCHASING AUTHORITY NUMBER Of applicable) STD 213 (ReY. 03/2019) 1. This~ la enbnd lnCo betweer1 the ConCracling /VJefq lllld Ille ContradDr named below: CONTRACTING AGENCY NAME DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT CONTRACTOR'S NAME City of Grand Terrace 2. The lerm of thi1 Agreement Is: START DATE Upon HCD Approval THROUGH END DATE 06/30/2024 3. The maidnun amount of this Agieement ii: $65,000.00 4. The patietl agA111 to comply with the terms and conditions of the fallowing eichOls, which 819 by ta reference made a part ol lhe Agreemenl EXHIBfTS TITLE PAGES Exhibit A ~rtty. Purposeand SC:ope of Woti< 2 ElHllt B Budget Detail and Payment Pl'OYislons 5 E>cnibit c· State of Calibnla General Terma and Conditions GTC • 04/2017 Exhibit D LEAP General Terms and Conditions 9 Exhibit E Special Concilions O TOTAL NUMBER OF PAGES ATTACHED 16 #fJms lhown with an asttH'bk i ). llf9 hereby lncotpomted by 19'8nlllCl9 and made part of this agraement aa ff llllachffd hfH'tltD. The• documents can be vhtwed at htJps:l/Www.df}s.ca.gov/OLS/Resouroe:s IN IMTNESS WHEREOF, THIS AGREEMENT HAS BEEN EXECUTED BY THE PARTIES HERETO. CONlRAC'roR CONTRACTOR NAME (if other than an Individual, state whether a corporation, partnership.etc.) City of Grand Terrace CONTRACTOR BUSINESS ADDRESS 22795 Barton Rd PRINTED NAME OF PERSON SIGNING CONTRAC0l~!~RI~ ~~R~~ Jli~if::i:,,fJ1fo Oepemient of Housing and Community Development CONTRACTING AGENCY ADDRESS 2020 W. Et Camino Ave .. Suite 130 PRINTED NAME OF PERSON SIGNING Shaun Singh CONTRACTING AGENCY AUTHORIZED SIGNATURE CITY Grand Terrace STATE OF CALIFORNIA CITY Sacramento STATE CA ZIP 92313 STATE ZIP CA 95833 TITLE Contracts Manager, Business & Contract SelVices Branch OATEstGNEO ~ ~ Cslifomia Department of General Services Approval (or exemption, if applicable) Exempt per; SCM Vol. 1 4.04A3 (DGS memo dated 6112/1981) D.6.g Packet Pg. 229 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT A AUTHORITY, PURPOSE AND SCOPE OF WORK 1. Authority City of Grand Terrace 20-LEAP-15036 Page 1 of 2 Pursuant to Chapter 3.1 of the California Health and Safety Code (Ch. 159, Sec. 11, Stats. 2019), the State of California Department of Housing and Community Development (the "Department" or "State") has established the Local Early Action Planning Grants Program ("LEAP," or the "Program"), as defined in Health and Safety Code Section 50515, et seq., for Local Governments and Localities. In furtherance of the purpose of the Program, the Department has issued a Notice of Funding Availability ("NOFA") dated January 27, 2020. This Standard Agreement, along with all its exhibits (the "Agreement"), is entered into under the authority of, and in furtherance of, the purpose of the Program. 2. Purpose In accordance with the authority cited above, the Grantee has been awarded financial assistance in the form of a grant from the Program. The Department has agreed to make the grant to provide financial assistance for technical assistance, preparation and adoption of planning documents, and process improvements to accelerate housing production and facilitate compliance to implement the sixth cycle of the regional housing needs assessment, pursuant to the terms of the NOFA, which includes associated forms, and this Agreement. By entering into this Agreement and thereby accepting the award of the Program funds, the Grantee agrees to comply with the terms and conditions of the NOFA, this Agreement, subsequent amendments to this agreement when necessary, the representations contained in the application and the requirements of the authority cited above. Based on the representations made by the Grantee, the State shall provide a grant in the amount shown in Exhibit B, Section 2. 3. Definitions Terms herein shall have the same meaning as definitions in Section VIII of the LEAP NOFA. 4. Scope of Work Preparation and adoption of planning documents and process improvements that accelerate housing production and facilitate compliance in implementing the sixth cycle of the regional housing needs assessment in accordance with the Grantee's Attachment 1: Project Timeline and Budget and Project Description as provided by the Grantee in the LEAP application used for subsequent approval by the Department. 5. Department Contract Coordinator The Contract Coordinator of this Agreement for the Department is the Housing Policy Development Program Manager, or the Manager's designee. Unless otherwise informed, any Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 230 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT A City of Grand Terrace 20-LEAP-15036 Page 2 of 2 notice, report, or other communication required by this Agreement shall be mailed by first class mail to the Department Contract Coordinator at the following address: Department of Housing and Community Development Housing Policy Development Attention: LEAP Program Manager 2020 West El Camino Avenue, Suite 500 Sacramento, CA 95833 Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 231 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT B BUDGET DETAIL AND PAYMENT PROVISIONS 1. Application for Funds City of Grand Terrace 20-LEAP-15036 Page 1 of 5 A. The Department is entering into this Standard Agreement ("Agreement") on the basis of, and in reliance on, facts, information, assertions and representations contained in the Application and any subsequent modifications or additions thereto approved by the Department. The Application and any approved modifications and additions thereto are hereby incorporated into this Agreement. B. The Grantee warrants that all information, facts, assertions and representations contained in the Application and approved modifications and additions thereto are true, correct, and complete to the best of the Grantee's knowledge. In the event that any part of the Application and any approved modification and addition thereto is untrue, incorrect, incomplete, or misleading in such a manner that would substantially affect the Department's approval, disbursement, or monitoring of the funding and the grant or activities governed by this Agreement, the Department may declare a breach hereof and take such action or pursue such remedies as are provided for breach. 2. Grant and Reimbursement Limit The Department's decision to approve or deny an application or request for funding pursuant to the Program, and its determination of the amount of funding provided, shall be final. The maximum total amount granted and reimbursable to the Grantee pursuant to this Agreement shall not exceed $65,000.00. 3. Grant Timelines A This Agreement is effective upon the date of the Department representative's signature on page one of the fully executed Standard Agreement, STD 213, (the "Effective Date"). B. All Grant funds must be expended by the Grantee on or before December 31, 2023. To ensure that the Grantee is reimbursed on or before December 31, 2023, the Grantee shall deliver to the Department all final invoices for reimbursement on or before September 30, 2023. Under special circumstances, as determined by the Department, the Department may modify the September 30, 2023 deadline. It is the responsibility of the Grantee to monitor the project and timeliness of draws within the specified dates. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 232 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT B 4. Allowable Uses of Grant Funds City of Grand Terrace 20-LEAP-15036 Page 2 of 5 A. The Department shall not disburse funds unless it determines that the grant funds shall be expended in compliance with the terms and provisions of the NOFA and this Agreement. B. Grant funds shall only be used by the Grantee for eligible activities pursuant to Section VII of the NOFA and only for activities that were approved by the Department, and as stated in Attachment 1: Project Timeline and Budget and Project Description in the Grantee's approved LEAP Application, , and/or any and all documentation incorporated into this Agreement and made a part thereof. C. Grant funds may not be used for administrative costs of persons employed by the Grantee for activities not directly related to the preparation and adoption of the proposed activity. The Grantee shall use no more than five percent of the total grant amount for costs related to administration of the project. D. A Grantee that receives funds under this Program may use a subcontractor. The subcontract shall provide for compliance with all the requirements of the Program. The subcontract shall not relieve the Grantee of its responsibilities under the Program. E. After the contract has been executed by the Department and all parties, approved and eligible costs for eligible activities may be reimbursed upon completion of deliverables in accordance with Attachment 1: Project Timeline and Budget and Project Description, and subject to the terms and conditions of this Agreement. F. Only approved and eligible costs incurred for work after the NOFA date, continued past the date of full execution of the Agreement, and completed during the grant term, will be reimbursable. G. Approved and eligible costs incurred prior to the NOFA date are ineligible and will not be reimbursed. 5. Performance A. The Grantee shall take such actions, pay such expenses, and do all things necessary to complete all activities as incorporated into the LEAP application and in accordance with the schedule for completion set forth in the Statement of Work, the Grantee's Project Description and Attachment 1: Project Timeline and Budget, and within the terms and conditions of this Agreement. B. The Department may monitor expenditures and activities of Grantee, as the department deems necessary, to ensure compliance with program requirements. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 233 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT B City of Grand Terrace 20-LEAP-15036 Page 3 of 5 C. The Department may request repayment of funds from Grantee or pursue other remedies available to it by law for failure to comply with program requirements. 6. Fiscal Administration A. The Grantee is responsible for maintaining records which fully disclose the activities funded by the LEAP grant. Adequate documentation for each reimbursable transaction shall be maintained to permit the determination, through an audit if requested by the State, of the accuracy of the records and the allowability of expenditures charged to LEAP grant funds. If the allowability of expenditure cannot be determined because records or documentation are inadequate, the expenditure may be disallowed, and the State shall determine the reimbursement method for the amount disallowed. The State's determination of the allowability of any expense shall be final, absent fraud, mistake or arbitrariness. B. Work must be completed prior to requesting reimbursement. The Department may make exceptions to this provision on a case by case basis. In unusual circumstances, the Department may consider alternative arrangements to reimbursement and payment methods based on documentation demonstrating cost burdens, including the inability to pay for work. C. Prior to receiving reimbursement, the Grantee shall submit the following documentation: 1) Government Agency Taxpayer ID Form (GovTIN; Fi$cal form); 2) A Request for Reimbursement form provided by the Department on the Department's Local Early Action Planning (LEAP) Grants webpage; and 3) Any and all documentation requested by the Department in the Request for Reimbursement form and manner as outlined in the following subsection D. D. Grantee shall submit all required reimbursement documentation to the following address: Department of Housing and Community Development Housing Policy Development Attention: LEAP Program Manager 2020 West El Camino Avenue, Suite 500 Sacramento, CA 95833 E. The Grantee shall submit invoices for reimbursement to the Department. All invoices shall be subject to the Department's approval and submitted in accordance with the following schedule: Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 234 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT B 1) At maximum, once per quarter; or 2) Upon completion of a deliverable; and 3) At minimum, one invoice for reimbursement annually. City of Grand Terrace 20-LEAP-15036 Page 4 of 5 The Department will use the 2020 calendar year beginning from the date of the release of the NOFA on January 27, 2020 as the basis for scheduling reimbursements, with first requests for reimbursement accepted upon full execution of the Agreement by the Grantee and the Department F. The Request for Reimbursement must be for a minimum of fifteen percent (15%) of the maximum grant amount awarded. The Department may consider exceptions to the minimum amount requested on a case-by-case basis. All invoices shall reference the contract number and shall be signed and submitted to the Department's Program Manager at the address provided above in Section 6, Subsection D of this part. Invoices shall include at a minimum the following information: 1) Names of the Grantee's personnel performing work; 2) Dates and times of project work; 3) Itemized costs in accordance with Attachment 1: Project Timeline and Budget, and Project Description, including identification of each employee, contractor or subcontractor who provided services during the period of the invoice, the number of hours and hourly rates for each of the Grantee's employees, contractor(s), sub- recipient(s) or subcontractor's staff member(s), authorized expenses with receipts, and contractor, sub-recipient and subcontractor invoices; and 4) Any other documents, certifications, or evidence deemed necessary by the Department prior to disbursement of grant funds. G. The Department will reimburse the Grantee directly for all allowable project costs as promptly as the Department's fiscal procedures permit upon receipt of an itemized signed invoice. H. The Department recognizes that budgeted deliverable amounts are based upon estimates and conditions and circumstances may change. Grantees may request adjustments to Attachment 1: Project Timeline and Budget and Project Description in the Grantee's approved LEAP Application in writing (such as a budget adjustment across deliverables), as long as the total budget does not exceed the maximum amount awarded to the Grantee. All adjustments shall be subject to written approval by the Department. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 235 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT B City of Grand Terrace 20-LEAP-15036 Page 5 of 5 I. Grant funds shall not be disbursed until this Agreement has been fully executed. J. Grant fund payments will be made on a reimbursement basis; advance payments are not allowed. The Grantee, its subcontractors and all partners, must have adequate cash flow to pay all grant-related expenses prior to requesting reimbursement from the Department. The Department may consider alternative arrangements for reimbursement and payment methods based on documentation demonstrating cost burdens, including the inability to pay for work. K. The Grantee will be responsible for compiling and submitting all invoices, supporting documentation and reporting documents. Invoices must be accompanied by reporting materials where appropriate. Invoices without the appropriate reporting materials will not be paid. 1) Supporting documentation may include, but is not limited to; purchase orders, receipts, progress payments, subcontractor invoices, timecards, or any other documentation as deemed necessary and requested by the Department to support the reimbursement to the Grantee for expenditures incurred. L. The Grantee will submit for reimbursements to the Department based on actual costs incurred, and must bill the State based on clear and completed objectives and deliverables as outlined in the application, in Attachment 1: Project Timeline and Budget and the Project Description, and/or any and all documentation incorporated into this Agreement and made a part thereof. M. The Department may withhold ten percent (10%) of the grant until grant terms have been fulfilled to the satisfaction of the Department and the final close-out report submitted, no later than December 31, 2024 pursuant to Health and Safety Code section 50515.04(c)(2). N. It is mutually agreed that if the Budget Act of the current year and/or any subsequent years covered under this Agreement does not appropriate sufficient funds for the program, this Agreement shall immediately terminate and be of no further force and effect. In this event, the State and Contractor shall be relieved of any and all obligations under this Grant Agreement. 0. If funding for any fiscal year is reduced or deleted by the Budget Act for purposes of this program, the State shall have the sole discretion to cancel this Agreement without cause, no liability occurring to the State, or amend the current Grant Agreement and amount allocated to Contractor. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 236 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT D LEAP TERMS AND CONDITIONS 1. Reporting City of Grand Terrace 20-LEAP-15036 Page 1 of 9 A. During the term of this Standard Agreement ("Agreement") the Grantee shall submit, upon request of the Department, a performance report that demonstrates satisfaction of all requirements identified in this Agreement. B. Pursuant to Health and Safety Code Section 50515.04, subsection (a), during the term of the Agreement, the Grantee shall submit an annual report containing all required information by April 1 of the year following receipt of the Grant funds. The annual reports shall be due from the Grantee until Program funds have been expended, but no later than February 28, 2023. A Grantee may, in lieu of providing a separate annual report as identified in Health and Safety Code Section 50515.04, subsection (a), provide the information as part of its Annual Progress Report. C. Upon completion of all deliverables required to fulfill this Agreement pursuant to the Grantee's Attachment 1: Project Timeline and Budget as approved in the LEAP Application, the Grantee shall submit a final close out report in accordance with the January 27, 2020 LEAP NOFA. The close out report shall be submitted with the final Request for Reimbursement by September 30, 2023, in accordance with the final invoices due pursuant to Exhibit B, Section 3. 2. Accounting Records A. The Grantee, its staff, contractors and subcontractors shall establish and maintain an accounting system and reports that properly accumulate incurred project costs by line. The accounting system shall conform to Generally Accepted Accounting Principles (GAAP), to enable the determination of incurred costs at interim points of completion and provide support for reimbursement payment vouchers or invoices. B. The Grantee must establish a separate ledger account for receipts and expenditures of grant funds and maintain expenditure details in accordance with the scope of work, project timeline and budget. Separate bank accounts are not required. C. The Grantee shall maintain documentation of its normal procurement policy and competitive bid process (including the use of sole source purchasing), and financial records of expenditures incurred during the course of the project in accordance with GAAP. D. The Grantee agrees that the state or designated representative shall have the right to review and to copy any records and supporting documentation pertaining to the performance of the Agreement. E. Subcontractors employed by the Grantee and paid with moneys under the terms of this Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 237 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) 3. Audits EXHIBIT D City of Grand Terrace 20-LEAP-15036 Page 2 of 9 Agreement shall be responsible for maintaining accounting records as specified above. Grantee shall monitor and enforce subcontracts accordingly. A At any time during the term of this Agreement, the Department may perform or cause to be performed a financial audit of any and all phases of the award. At the Department's request, the Grantee shall provide, at its own expense, a financial audit prepared by a certified public accountant. The State of California has the right to review project documents and conduct audits during and over the project life. 1) The Grantee agrees that the Department or the Department's designee shall have the right to review, obtain, and copy all records and supporting documentation pertaining to performance of this Agreement. 2) The Grantee agrees to provide the Department or the Department's designee, with any relevant information requested. 3) The Grantee agrees to permit the Department or the Department's designee access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees who might reasonably have information related to such records and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with statutes and this Agreement. B. If a financial audit is required by the Department, the audit shall be performed by an independent certified public accountant. Selection of an independent'audit firm shall be consistent with procurement standards contained in Exhibit D, Section 8 subsection A of this Agreement. 1) The Grantee shall notify the Department of the auditor's name and address immediately after the selection has been made. The contract for the audit shall allow access by the Department to the independent auditor's working papers. 2) The Grantee is responsible for the completion of audits and all costs of preparing audits. 3) If there are audit findings, the Grantee must submit a detailed response acceptable to the Department for each audit finding within ninety (90) days from the date of the audit finding report. C. The Grantee agrees to maintain such records for possible audit after final payment pursuant to Exhibit D, Section 3, subsection E. below, unless a longer period of records retention is stipulated. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 238 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT D City of Grand Terrace 20-LEAP-15036 Page 3 of 9 1) If any litigation, claim, negotiation, audit, monitoring, inspection or other action has been started before the expiration of the required record retention period, all records must be retained by the Grantee, contractors and sub-contractors until completion of the action and resolution of all issues which arise from it. The Grantee shall include in any contract that it enters into in an amount exceeding $10,000.00, the Department's right to audit the contractor's records and interview their employees. 2) The Grantee shall comply with the caveats and be aware of the penalties for violation of fraud and for obstruction of investigation as set forth in California Public Contracts Code Section 10115.10. D. The determination by the Department of the eligibility of any expenditure shall be final. E. The Grantee shall retain all books and records relevant to this Agreement for a minimum of three (3) years after the end of the term of this Agreement. Records relating to any and all audits or litigation relevant to this Agreement shall be retained for five (5) years after the conclusion or resolution of the matter. 4. Remedies of Non-performance A. The Department may monitor expenditures and activities of an applicant, as the Department deems necessary, to ensure compliance with Program requirements. B. The Department may, as it deems appropriate or necessary, request repayment of funds from an applicant, or pursue any remedies available to it by law for failure to comply with Program requirements. C. Any dispute concerning a question of fact arising under this Agreement that is not disposed of by agreement shall be decided by the Department's Housing Policy Development Manager, or the Manager's designee, who may consider any written or verbal evidence submitted by the Grantee. The decision of the Department's Housing Policy Development Manager or Designee shall be the Department's final decision regarding the dispute. D. Neither the pendency of a dispute nor its consideration by the Department will excuse the Grantee from full and timely performance in accordance with the terms of this Agreement. E In the event that it is determined, at the sole discretion of the Department, that the Grantee is not meeting the terms and conditions of the Agreement, immediately upon receiving a written notice from the Department to stop work, the Grantee shall cease all work under the Agreement. The Department has the sole discretion to determine that the Grantee meets the terms and conditions after a stop work order, and to deliver a written notice to the grantee to resume work under the Agreement. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 239 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT D City of Grand Terrace 20-LEAP-15036 Page 4 of 9 F. Both the Grantee and the Department have the right to terminate the Agreement at any time upon thirty (30) days written notice. The notice shall specify the reason for early termination and may permit the grantee or the Department to rectify any deficiency(ies) prior to the early termination date. The Grantee will submit any requested documents to the Department within thirty (30) days of the early termination notice. G. There must be a strong implementation component for the funded activity through this Program, including, where appropriate, agreement by the locality to formally adopt or complete the planning document. Localities that do not formally adopt or complete the funded activity could be subject to repayment of the grant. H. The following shall each constitute a breach of this Agreement: 1) Grantee's failure to comply with any of the terms and conditions of this Agreement. 2) Use of, or permitting the use of, grant funds provided under this Agreement for any ineligible costs or for any activity not approved under this Agreement. 3) Any failure to comply with the deadlines set forth in this Agreement unless approved by the Program Manager. I. In addition to any other remedies that may be available to the Department in law or equity for breach of this Agreement, the Department may at its discretion, exercise the following remedies: 1) Disqualify the Grantee from applying for future Department administered grant programs. 2) Revoke existing LEAP award(s) to the Grantee. 3) Require the return of unexpended LEAP funds disbursed under this Agreement. 4) Require repayment of LEAP Funds disbursed and expended under this Agreement. 5) Seek a court order for specific performance of the obligation defaulted upon, or the appointment of a receiver to complete the obligations in accordance with the LEAP Program requirements. 6) Other remedies available at law, or by and through this Agreement. All remedies available to the Department are cumulative and not exclusive. 7) The Department may give written notice to the Grantee to cure the breach or violation within a period of not less than fifteen (15) days. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 240 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT D 5. Indemnification City of Grand Terrace 20-LEAP-15036 Page 5 of9 Neither the Department nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by the Grantee, its officers, employees, agents, its contractors, its sub-recipients or its subcontractors under or in connection with any work, authority or jurisdiction conferred upon the Grantee under this Agreement. It is understood and agreed that the Grantee shall fully defend, indemnify and save harmless the Department and all of the Department's staff from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortuous, contractual, inverse condemnation or other theories or assertions of liability occurring by reason of anything done or omitted to be done by the Grantee, its officers, employees, agents contractors, sub-recipients, or subcontractors under this Agreement. 6. Waivers No waiver of any breach of this Agreement shall be held to be a waiver of any prior or subsequent breach. The failure of the Department to enforce at any time the provisions of this Agreement, or to require at any time, performance by the Grantee of these provisions, shall in no way be construed to be a waiver of such provisions nor to affect the validity of this Agreement or the right of the Department to enforce these provisions. 7. Relationship of Parties It is expressly understood that this Standard Agreement is an agreement executed by and between two independent governmental entities and is not intended to, and shall not be construed to, create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship whatsoever other than that of an independent party. 8. Third-Partv Contracts A All state-government funded procurements must be conducted using a fair and competitive procurement process. The Grantee may use its own procurement procedures as long as the procedures comply with all City/County laws, rules and ordinances governing procurement, and all applicable provisions of California state law. B. Any contract entered into as a result of this Agreement shall contain all the provisions stipulated in the Agreement to be applicable to the Grantee's sub-recipients, contractors, and subcontractors. Copies of all agreements with sub-recipients, contractors, and subcontractors shall be submitted to the Department's program manager upon request. C. The Department does not have a contractual relationship with the Grantee's sub- recipients, contractors, or subcontractors, and the Grantee shall be fully responsible for all work performed by its sub-recipients, contractors, or subcontractors. D. In the event the Grantee is partnering with another jurisdiction or forming a collaborative effort between the Grantee and other jurisdictions who are grantees of the Local Early Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 241 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT D City of Grand Terrace 20-LEAP-15036 Page 6 of 9 Action Planning Grants Program, the Grantee acknowledges that each partner and/or all entities forming the Local Early Action Planning Grants Program collaborative are in mutual written agreement with each other but are contractually bound to the Department under separate, enforceable contracts. E. In the event the Grantee is partnering with another jurisdiction or forming a collaborative effort with other entities that are not grantees of the Local Early Action Planning Grants Program, the Department shall defer to the provisions as noted in subsections 8(8) and B(C) of this part. 9. Compliance with State and Federal Laws, Rules, and Regulations A. The Grantee agrees to comply with all state and federal laws, rules and regulations that pertain to construction, health and safety, labor, fair employment practices, equal opportunity, and all other matters applicable to the grant, the Grantee, its contractors or subcontractors, and any other grant activity. B. During the performance of this Agreement, the Grantee assures that no otherwise qualified person shall be excluded from participation or employment, denied program benefits, or be subjected to discrimination based on race, color, ancestry, national origin, sex, gender, gender identity, gender expression, genetic information, age, disability, handicap, familial status, religion, or belief, under any program or activity funded by this contract, as required by Title VI of the Civil Rights Act of 1964, the Fair Housing Act (42 USC 3601-20) and all implementing regulations, and the Age Discrimination Act of 1975 and all implementing regulations. C. The Grantee shall include the nondiscrimination and compliance provisions of this clause in all agreements with its sub-recipients, contractors, and subcontractors, and shall include a requirement in all agreements with all of same that each of them in turn include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts they enter into to perform work under the Program. D. The Grantee shall, in the course of performing project work, fully comply with the applicable provisions of the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.) E. The Grantee shall adopt and implement affirmative processes and procedures that provide information, outreach and promotion of opportunities in the LEAP project to encourage participation of all persons regardless of race, color, national origin, sex, religion, familial status, or disability. This includes, but is not limited to, a minority outreach program to ensure the inclusion, to the maximum extent possible, of minorities and women, and entities owned by minorities and women, as required by 24 CFR 92.351. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 242 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT D 10. Litigation City of Grand Terrace 20-LEAP-15036 Page 7 of 9 A. If any provision of this Agreement, or an underlying obligation, is held invalid by a court of competent jurisdiction, such invalidity, at the sole discretion of the Department, shall not affect any other provisions of this Agreement and the remainder of this Agreement shall remain in full force and effect. Therefore, the provisions of this Agreement are, and shall be, deemed severable. B. The Grantee shall notify the Department immediately of any claim or action undertaken by or against it, which affects or may affect this Agreement or the Department, and shall take such action with respect to the claim or action as is consistent with the terms of this Agreement and the interests of the Department. 11. Changes in Terms/Amendments This Agreement may only be amended or modified by mutual written agreement of both parties. 12. State-Owned Data A. Definitions 1) Work: The work to be directly or indirectly produced by the Grantee, its employees, or by and of the Grantee's contractor's, subcontractor's and/or sub-recipient's employees under this Agreement. 2) Work Product: All deliverables created or produced from Work under this Agreement including, but not limited to, all Work and Deliverable conceived or made, or made hereafter conceived or made, either solely or jointly with others during the term of this Agreement and during a period of six months after the termination thereof, which relates to the Work commissioned or performed under this Agreement. Work Product includes all deliverables, inventions, innovations, improvements, or other works of authorship Grantee and/or Grantee's contractor subcontractor and/or sub-recipient may conceive of or develop in the course of this Agreement, whether or not they are eligible for patent, copyright, trademark, trade secret or other legal protection. 3) Inventions: Any ideas, methodologies, designs, concept, technique, invention, discovery, improvement or development regardless of patentability made solely by the Grantee or jointly with the Grantee's contractor, subcontractor and/or sub-recipient and/or Grantee's contractor, subcontractor, and/or sub-recipient's employees with one or more employees of the Department during the term of this Agreement and in performance of any Work Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 243 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT D City of Grand Terrace 20-LEAP-15036 Page 8 of9 under this Agreement, provided that either the conception or reduction to practice thereof occurs during the term of this Agreement and in performance of Work issued under this Agreement. B. Ownership of Work Product and Rights 1) All work Product derived by the Work performed by the Grantee, its employees or by and of the Grantee's contractor's, subcontractor's and/or sub-recipient's employees under this Agreement, shall be owned by the Department and shall be considered to be works made for hire by the Grantee and the Grantee's contractor, subcontractor and/or subrecipient for the Department. The Department shall own all copyrights in the work product. 2) Grantee, its employees and all of Grantee's contractor's, subcontractor's and sub-recipient's employees agree to perpetually assign, and· upon creation of each Work Product automatically assigns, to the Department, ownership of all United States and international copyrights in each and every Work Product, insofar as any such Work Product, by operation of law, may not be considered work made for hire by the Grantee's contractor, subcontractor and/or subrecipient from the Department. From time to time upon the Department's request, the Grantee's contractor, subcontractor and/or subrecipients, and/or its employees, shall confirm such assignments by execution and delivery of such assignment, confirmations or assignment or other written instruments as the Department may request. The Department shall have the right to obtain and hold in its name all copyright registrations and other evidence of rights that may be available for Work Product under this Agreement. Grantee hereby waives all rights relating to identification of authorship restriction or limitation on use or subsequent modification of the Work. 3) Grantee, its employees and all Grantee's contractors, subcontractors and sub- recipients hereby agrees to assign to the Department all Inventions, together with the right to seek protection by obtaining patent rights therefore and to claim all rights or priority thereunder and the same shall become and remain the Department's property regardless of whether such protection is sought The Grantee, its employees and Grantee's contractor, subcontractor and /or subrecipient shall promptly make a complete written disclosure to the Department of each Invention not otherwise clearly disclosed to the Department in the pertinent Work Product, specifically noting features or concepts that the Grantee, its employees and/or Grantee's contractor, subcontractor and/or subrecipient believes to be new or different. 4) Upon completion of all work under this Agreement, all intellectual property rights, ownership and title to all reports, documents, plans, specifications and estimates, produced as part of this Agreement will automatically be vested in Department and no further agreement will be necessary to transfer ownership to Department. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 244 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) EXHIBIT D 13. Special Conditions City of Grand Terrace 20-LEAP-15036 Page 9 of 9 The State reserves the right to add any special conditions to this Agreement it deems necessary to assure that the policy and goals of the Program are achieved. Local Early Action Planning (LEAP) NOFA Date: January 27, 2020 Approved Date: May 29, 2020 Prep. Date: September 14, 2020 D.6.g Packet Pg. 245 At t a c h m e n t : A t t a c h m e n t 3 - L E A P G r a n t ( H o u s i n g E l e m e n t A g r e e m e n t - M i c h a e l B a k e r ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Consideration of a Resolution of the City Council of the City of Grand Terrace Approving a Form Reimbursement and Indemnification Agreement to be Used in Relation to Development Projects Within the City and Authorizing the Execution Thereof by the City Manager Subject to City Attorney Approval as to Form PRESENTED BY: Adrian Guerra, City Attorney RECOMMENDATION: 1. Adopt a Resolution approving a Form Reimbursement and Indemnification Agreement and Authorizing the City Manager to Execute the Same Subject to City Attorney Approval as to Form. 2030 VISION STATEMENT This staff report supports Goal #1: To Identify Additional Revenue Sources; Review Expenditures and Seek Savings; Explore Creative Means to Provide Services; and Ensure Appropriate Cost Recovery for Services. BACKGROUND As development in the City increases, the City’s costs relating to processing land use applications will increase and, therefore, it will become necessary for the City to recover its costs relating to processing entitlements. Government Code section 66014 permits the City to charge fees for “zoning variances; zoning changes; use permits; building inspections; building permits; filing and processing applications.” However, these fees generally seek to recover staff time and costs to process the applications and “may not exceed the estimated reasonable cost of providing the service for which the fee is charged.” (Government Code section 66014(a)). However, some projects require involvement from the City Attorney’s office and/or consultants to perform a more detailed environmental review for compliance with the California Environmental Quality Act. Additionally, the City may need to defend litigation aimed to invalidate project-related approvals from the City. In these cases, the standard fees on the City’s fee schedule would not cover these City costs. As will be discussed below, the City Attorney is recommending that the City Council adopt a policy whereby the City Manager would have authority to enter into reimbursement agreements, subject to City Attorney approval, to recover these additional costs in support of a land use project. DISCUSSION D.7 Packet Pg. 246 The City Attorney’s office has prepared a form for reimbursement and indemnification agreement, which is attached to this report. In general, the form reimbursement and indemnification agreement provides for a deposit-based process in which the developer will be required to maintain a deposit of funds (in an amount that is agreed upon) that the City may utilize for its related costs. The form reimbursement and indemnification agreement includes the following provisions: 1. The developer is responsible for the City’s costs related to their development project, which includes staff time, consultant fees, and attorneys’ fees. 2. Requires that the developer maintains a minimum balance in the deposit. The purpose of this is to avoid a situation where the deposit contains no funds. 3. Requires the developer to indemnify, protect, defend, and hold the City harmless from claims and liabilities arising from their development project. 4. Requires that the City maintain an accounting of any deposits and City costs paid using the deposits. An accounting may be provided to the developer upon written request. Additionally, the City Council is also requested to authorize the City Manager to sign reimbursement and indemnification agreements substantially in the form as attached to this report on behalf of the City, subject to the City Attorney’s approval as to form. Reimbursement and indemnification agreements for a city’s costs incurred in relation to a development project are typically routine in nature with other cities. This authorization will ensure that the processing of development projects will be efficient and ensure the City is promptly reimbursed for its costs and is protected in the event of a lawsuit. FISCAL IMPACT: The City will recover costs associated with any further development project, including staff time, consulting fees and attorneys’ fees. ATTACHMENTS: • Resolution Approving Reimbursement Agrmnt and Authorize CM to Sign (2024) (1) (DOC) • GT Form Reimbursement Agreement (DOCX) APPROVALS: Adrian Guerra Completed 02/07/2024 12:19 PM Finance Completed 02/07/2024 2:02 PM City Manager Completed 02/07/2024 2:34 PM D.7 Packet Pg. 247 City Council Pending 02/13/2024 6:00 PM D.7 Packet Pg. 248 01247.0005/557873.3 RESOLUTION NO. 2024-______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE APPROVING A FORM REIMBURSEMENT AND INDEMNIFICATION AGREEMENT TO BE USED IN RELATION TO DEVELOPMENT PROJECTS WITHIN THE CITY AND AUTHORIZING THE EXECUTION THEREOF BY THE CITY MANAGER SUBJECT TO CITY ATTORNEY APPROVAL AS TO FORM WHEREAS, as development in the City of Grand Terrace (“City”) increases, the City’s costs relating to the processing of land use applications will increases such that it is desirable to implement a method by which the City may adequately and consistently recover its related costs; and WHEREAS, Government Code section 66014 permits the City to charge fees for “zoning variances; zoning changes; use permits; building inspections; building permits; filing and processing applications;” however, these fees generally seek to recover staff time and costs to process the applications and “may not exceed the estimated reasonable cost of providing the service for which the fee is charged.” (Government Code section 66014(a)); and WHEREAS, some projects require involvement from the City Attorney’s office and/or consultants to perform a more detailed environmental review for compliance with the California Environmental Quality Act; and WHEREAS, in other cases, the City may need to defend litigation aimed to invalidate project-related approvals from the City; and WHEREAS, in these cases where the City Attorney, consultants, and/or litigation is involved, the standard fees on the City’s fee schedule would not be sufficient to recover these City costs; and WHEREAS, it is desirable to adopt cost recovery mechanisms so as to minimize the impact of additional land use applications upon City services and to adopt mechanisms that protect the City in the event of litigation; and WHEREAS, the City Council therefore desires to approve a form reimbursement and indemnification agreement to address the aforementioned concerns (“Form Agreement”) consistent with the authority under Government Code section 66014; and WHEREAS, the City Council intends to make the Form Agreement an integral part in the processing of land use applications (where applicable); and WHEREAS, without City Council authorization the execution of the Form Agreement will require City Council approval in every instance; and D.7.a Packet Pg. 249 At t a c h m e n t : R e s o l u t i o n A p p r o v i n g R e i m b u r s e m e n t A g r m n t a n d A u t h o r i z e C M t o S i g n ( 2 0 2 4 ) ( 1 ) ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 01247.0005/557873.3 WHEREAS, in order to ensure the integrated and streamlined processing of land use applications, the City Council further desires to authorize the City Manager to sign such Form Agreements subject to the City Attorney’s approval as to form. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Grand Terrace, as follows: Section 1. The recitals set forth above are true and correct and incorporated herein by this reference. Section 2. The City Council hereby finds that adoption of this Resolution is not a “project” under the California Environmental Quality Act, because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, section 15378(b)(4). Section 3. The Form Agreement is hereby approved in substantially the form as attached in Exhibit A for use in conjunction with the processing of land use applications. The City Attorney is hereby authorized to update the Form Agreement as needed. Section 4. Subject to the City Attorney’s approval as to form, the City Manager is hereby authorized to utilize, negotiate and execute the Form Agreements that are necessary for the processing of land use applications in the City. In determining whether to utilize the Form Agreement for a particular land use application, the City Manager shall consider the size, scope, and costs of such land use applications. Nothing in this Resolution is intended to require the use of the Form Agreement in every instance and may be modified consistent with the project at issue. Section 5. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace, California, at a regular meeting held on the 13 day of February 2024. __________________________________ Bill Hussey Mayor ATTEST: __________________________________ Debra L. Thomas City Clerk D.7.a Packet Pg. 250 At t a c h m e n t : R e s o l u t i o n A p p r o v i n g R e i m b u r s e m e n t A g r m n t a n d A u t h o r i z e C M t o S i g n ( 2 0 2 4 ) ( 1 ) ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 01247.0005/557873.3 APPROVED AS TO FORM: __________________________________ Adrian R. Guerra City Attorney D.7.a Packet Pg. 251 At t a c h m e n t : R e s o l u t i o n A p p r o v i n g R e i m b u r s e m e n t A g r m n t a n d A u t h o r i z e C M t o S i g n ( 2 0 2 4 ) ( 1 ) ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 01247.0005/557873.3 Exhibit A Form Agreement D.7.a Packet Pg. 252 At t a c h m e n t : R e s o l u t i o n A p p r o v i n g R e i m b u r s e m e n t A g r m n t a n d A u t h o r i z e C M t o S i g n ( 2 0 2 4 ) ( 1 ) ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 01005.0018/813501.3 REIMBURSEMENT AGREEMENT This REIMBURSEMENT AGREEMENT (“Agreement”) is executed this ____ day of _______________, 2024 (“Effective Date”), by and between the CITY OF GRAND TERRACE, a California municipal corporation (“City”), and [INSERT NAME OF DEVELOPER], a [insert applicable state] limited partnership (“Developer”). City and Developer may be referred to, individually or collectively, as “Party” or “Parties.” RECITALS WHEREAS, Developer desires to develop [insert project description] (“Project”); and WHEREAS, [insert language]; and WHEREAS, [insert language]. NOW, THEREFORE, for the purposes set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, the Parties hereby agree as follows: TERMS 1. Incorporation of Recitals. The Parties hereby incorporate the Recitals as though fully set forth herein. 2. Developer Responsibility for City Costs. Developer shall be responsible for, and shall reimburse City for, all direct and indirect costs, fees and expenses of City related to review and City’s undertaking of the planning, design, and permitting for the Project, inclusive of any City efforts to facilitate the review and approval of any improvements associated with the Project by other agencies, and the processing of [Approvals/Entitlements] which, depending on the nature of the [Approvals/Entitlements], may or may not include an analysis and approval required under CEQA laws and regulations (the “City Costs”). City Costs include, but are not limited to: (a) City Attorneys’ fees, at a rate not to exceed $350.00 per hour including but not limited to, for drafting, negotiating and reviewing this Agreement, contracts with consultants, contracts with other agencies and public agencies, and any documents that the City deems necessary in connection with undertaking of the planning, design, and permitting for the Project, and for the processing of the [Approvals/Entitlements], (b) staff time required for drafting, negotiating and reviewing this Agreement, contracts with consultants, and contracts with other agencies and public agencies, and any documents that the City deems necessary in connection with undertaking of the planning, design, and permitting for the Project, and for the processing of the [Approvals/Entitlements]; and (c) all costs associated with Sections 2(a) and 2(b) above, including consultant costs and fees; (d) all costs related to studies, reports and design services for the development of any Project- related infrastructure; (e) all costs related to investigations of the Project; and (f) any other fees and costs deemed necessary by the City in order to process, review, or act upon or complete the the Project, and the [Approvals/Entitlements]. Developer’s obligation to deposit and reimburse D.7.b Packet Pg. 253 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 2 City Costs are in addition to Developer’s duty to indemnify, defend, and hold harmless City, as set forth in Section 8, below. 2.1 Deposit. In furtherance of the foregoing, Developer has or shall, within ten (10) days of the Effective Date, deposit with City an initial sum of $[insert amount] against which any City Costs will be drawn down (“Deposit”). The Deposit represents City’s best estimate of Developer’s ultimate financial obligation to City under this Agreement. At no point in time shall the minimum balance of the Deposit fall below $[insert amount], and Developer shall make such additional deposit(s) required under Section 2.2, below. 2.2 Additional Deposits by Developer. Developer shall make additional deposits to the City within ten (10) days of City’s written request to the Developer up to an additional aggregate amount not exceeding $[insert amount]. City’s written requests for additional deposits shall state what costs have been incurred to date, additional costs anticipated, and how City intends to apply any needed additional Developer deposits. If deposited sums exceed the costs incurred by City, City shall refund the difference as soon as City determines the amount of such excess. 2.3 City’s Right to Cease Work. In the event that Developer does not promptly pay or reimburse the City Costs, including by failing to reimburse amounts incurred or timely pay any additional requested deposits, City may immediately cease all work related to or concerning the [Approvals/Entitlements], and/or the Project, and may take such further action as City deems appropriate, including deeming any Developer application(s) abandoned and any development permit issued by City to Developer null and void. 2.4 Interest on Deposit. Any amounts deposited by Developer shall be maintained by City in an interest-bearing account of City’s choice, and may be co-mingled with other City funds in such account. Interest accruing upon any such deposits shall inure to and be created for the benefit of City. 2.5 Accounting. City shall keep an accounting of the City Costs and all deposits made by Developer. Upon written request, City shall provide statements of these accounts to Developer, which shall include descriptions of the City Costs, including the date, amount, and the type of activity for which the cost was incurred. Failure of City to provide any accounting shall not excuse Developer’s duty to perform any act, including the duty to make full and timely deposits required under this Section 2. Developer may question or challenge any use of funds set forth in the accounting and may appeal same to the City Council. 2.6 Unexpended Funds. Upon completion of City’s assistance in connection with Developer’s completion of the Project, the granting or issuance of all necessary Project [Approvals/Entitlements], the expiration of all applicable appeal periods, and if a legal or administrative challenge is made to the [Approvals/Entitlements], then upon the resolution of such challenge, City shall return any then-unexpended portion of the deposit to Developer, without interest, less an amount equal to any unpaid expenses previously incurred by the City. D.7.b Packet Pg. 254 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 3 3. Additional Taxes, Fee, and Charges. Notwithstanding any provision to the contrary, Developer shall pay all normal and customary fees and charges applicable to all permits and [Approvals/Entitlements] necessary for the Project, and any taxes, fees, and charges hereafter imposed by City, which are standard and uniformly-applied to similar projects in the City. 4. City Release; Expiration. This Agreement shall expire three (3) years after the Effective Date unless Developer has outstanding reimbursement obligations to the City at such time or City reasonably determines that the Project has not been abandoned and/or City will incur additional reimbursable costs after such date, in which event this Agreement will be automatically extended for additional one (1) year terms until Developer has reimbursed all City Costs. 5. Remedies. In the event of a breach by Developer, City may, in addition to any other remedies, seek to recover the City Costs plus reasonable attorneys’ fees in enforcing this Agreement. This provision will not be interpreted to curtail any of City’s remedies at law or equity against Developer for any violation of its codes, nor shall it be interpreted as a waiver of any defense of Developer. 6. Conflicts of Interest. 6.1 No Financial Relationship. Developer acknowledges the requirements of Government Code Sections 1090 et seq. (the “1090 Laws”) and warrants that it has not entered into any financial or transactional relationships or arrangements that would violate the 1090 Laws, nor shall Developer solicit, participate in, or facilitate a violation of the 1090 Laws. 6.2 Developer’s Representations and Warranties. Developer represents and warrants that it is duly authorized to do business in the State of California. Developer further represents and warrants that, for the 12-month period preceding the Effective Date of this Agreement, it has not entered into any arrangement to pay financial consideration to, and has not made any payment to, any City official, agent or employee that would create a legally cognizable conflict of interest as defined in the Political Reform Act (California Government Code sections 87100 et seq.). 7. Developer Acknowledgements. Subject to the reimbursement obligations set forth in this Agreement, Developer acknowledges and agrees that, with respect to the work concerning the [Approvals/Entitlements], and the Project: 7.1 City has sole discretion to select which of its employees and contractors are assigned to the work. 7.2 City has sole discretion to direct the work and evaluate the performance of the employees and contractors assigned to the work, and City retains the right to terminate or replace at any time any such person. 7.3 City has sole discretion to determine the amount of compensation paid to employees or contractors assigned to the work. D.7.b Packet Pg. 255 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 4 7.4 City, not Developer, shall pay employees and contractors assigned to the work from a City account. 8. Indemnification and Hold Harmless. 8.1 Agreement Not Liability or Debt of City. The Parties acknowledge that there may be challenges to the legality, validity and adequacy of this Agreement, [Approvals/Entitlements], the Project itself, or other City actions related to the same. If such challenges are successful, such challenges could delay or prevent the performance of this Agreement, [Approvals/Entitlements], or implementation of the Project. City shall have no liability whatsoever for the inability of Developer to obtain the [Approvals/Entitlements], implement the Project, as the result of any judicial determination that some or all of the [Approvals/Entitlements], the Project, or any other City action related to any of the same are invalid or inadequate or not in compliance with law. No official, officer, employee or agent of the City shall be personally liable hereunder to any extent. The Parties further acknowledge and agree that this Agreement is not a debt of the City. The City shall not in any event be liable hereunder other than to return the unexpended and uncommitted portions of the deposit as provided in Section 2.6 above, and to provide an accounting under Section 2.5 above. The City shall not be obligated to advance any of its own funds for any reason whatsoever. 8.2 Indemnification. Developer agrees to indemnify, protect, defend, and hold harmless the City and its officials, officers, employees, agents, elected boards, commissions, departments, agencies, and instrumentalities thereof, from any and all actions, suits, claims, demands, writs of mandamus, liabilities, losses, damages, penalties, obligations, expenses, and any other actions or proceedings (whether legal, equitable, declaratory, administrative, or adjudicatory in nature), and alternative dispute resolution procedures (including, but not limited to, arbitrations, mediations, and other such procedures) asserted by third parties against the City that challenge, or seek to void, set aside, or otherwise modify or annul, the action of, or any approval by, the City for or concerning this Agreement, the [Approvals/Entitlements], the Project, or any other City action related to any of the foregoing (including, but not limited to, reasonable attorneys’ fees and costs) (herein the “Claims and Liabilities”) whether such Claims and Liabilities arise under planning and zoning laws, the Subdivision Map Act, CEQA, Code of Civil Procedure Sections 1085 or 1094.5, or any other federal, state, or local statute, law, ordinance, rule, regulation, or any decision of a competent jurisdiction. In the event any action for any Claims and Liabilities is brought against the City and/or related parties, upon City’s notification to Developer of the pendency of a claim or suit, Developer shall make a minimum deposit sufficient to pay all of Developer’s indemnification obligations for the following ninety (90) days, which includes legal costs and fees anticipated to be incurred as reasonably determined by the City. Developer shall make deposits (“Indemnity Deposit”) required under this section within five (5) days of the City’s written request. At no point during the pendency of such claim or suit shall the minimum balance of the Indemnity Deposit fall below One Hundred Thousand Dollars ($100,000). If Developer fails to timely pay such funds, the City may abandon the action without liability to Developer and may recover from Developer any attorneys’ fees and other costs for which the City may be liable as a result of abandonment of the action. It is expressly agreed that the City shall have the right to utilize the City Attorney’s office or use other legal counsel of its D.7.b Packet Pg. 256 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 5 choosing. Developer’s obligation to pay the defense costs of the City shall extend until final judgment, including any appeals. City agrees to fully cooperate with Developer in the defense of any matter in which Developer is defending and/or holding the City harmless. The City may make all reasonable decisions with respect to its representation in any legal proceeding, including its inherent right to abandon or to settle any litigation brought against it in its sole and absolute discretion, and City’s reasonable decision to settle or abandon a matter, including but not limited to following an adverse judgment or failure to appeal, shall not cause a waiver of the City’s indemnification rights. Any decision by the City to settle litigation shall not, without the written consent of Developer, bind Developer. City shall discuss litigation strategy with Developer in good faith, but shall retain absolute discretion to make strategy decisions. 8.3 Exception. The obligations of Developer under this Section shall not apply to any claims, actions, or proceedings arising through the sole negligence or willful misconduct of the City, its members, officers, or employees. 8.4 Period of Indemnification. The obligations for indemnity under Section 8.2 shall begin upon the Effective Date and shall survive termination or expiration of this Agreement. 9. Developer’s Rights Concerning Review of Documents. City shall give Developer at least ten (10) days’ notice along with copies of any proposed contract with a Consultant and related documents so that Developer shall have the opportunity to provide comments or objections thereto, prior to the City finalizing, filing, or otherwise releasing any of the foregoing. The City shall also provide Developer with draft copies of all other reports and studies funded through this Agreement. Developer may discuss issues with the City or its consultants and may make comments orally or in writing. The City shall also use reasonable efforts to permit Developer's review with respect to agendas and staff reports for all open City Council, Planning Commission and other public body meetings at which the Project or related matters are to be considered, and by providing Developer with draft copies thereof prior to or concurrently with the transmission of such documents to the appropriate body. It is expressly understood that any and all City consultants retained hereunder are under contract solely with the City, and the City is free to disregard the comments of Developer and exercise its independent judgment in making payments to the Consultant or revising or accepting the Consultant’s work product, without any liability whatsoever to Developer therefor. 10. No Obligation to Approve Project. The provisions of this Agreement shall in no way obligate the City to grant any approvals or take any particular action related to an application for any approvals. 11. Assignment. Developer may not assign this Agreement to any other entity unless agreed to in writing by City and upon proof of the financial viability of the successor entity to fulfill the Agreement’s obligations. City’s consent to assignment shall not be unreasonably withheld. D.7.b Packet Pg. 257 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 6 12. Relationship Between the Parties. The Parties agree that this Agreement does not operate to create the relationship of partnership, joint venture, or agency between City and Developer. Nothing herein shall be deemed to make Developer an agent of City. 13. Authority to Enter Agreement. Developer warrants that it has the legal capacity to enter into the Agreement. Each Party warrants that the individuals who have signed the Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party. 14. Notices. All notices, demands, invoices, and communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice: To City: City of Grand Terrace 701 E. Grand Terrace Street Grand Terrace, CA 90745 Attn: Konrad Bolowich, City Manager/Scott Hutter, Planning Director & Antonio Lopez, Assistant Planner Copy to: Aleshire & Wynder, LLP 1 Park Plaza Suite 1000 Irvine, CA 92614 Attn: Adrian Guerra, City Attorney Email: aguerra@awattorneys.com To Developer: [insert name of company] [insert address] Attn: [insert name of individual] Email: [insert email address] Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as of the date and time sent; by messenger, as of the date delivered; by U.S. Mail first class postage prepaid, as of seventy-two (72) hours after deposit in the U.S. Mail; and by email, upon the sender’s receipt of an email from the recipient acknowledging receipt. 15. Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement. 16. Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Unless otherwise specified, any term referencing time, days, or period for performance shall be deemed calendar days and not business days, provided, however that any deadline that falls on a weekend or holiday shall be extended to the next City business day. All references to Developer include all personnel, employees, agents, and contractors of Developer, except as otherwise specified in this D.7.b Packet Pg. 258 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 7 Agreement. All references to City include its elected officials, appointed boards and commissions, officers, employees, agents, and volunteers. The captions of the various paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement. 17. Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties. 18. Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual right by custom, estoppel, or otherwise. 19. Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation. 20. No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties. 21. Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect, and shall be construed so as to effectuate the intent of the Parties. 22. Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the Parties’ activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of San Bernardino, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, Developer expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure section 394. 23. Time is of the Essence. Time is of the essence with respect to this Agreement. 24. Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original and which collectively shall constitute one instrument. 25. Entire Agreement. This Agreement contains the entire agreement between City and Developer and supersedes any prior oral or written statements or agreements between City and Developer with respect to the subject matter of this Agreement. D.7.b Packet Pg. 259 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 8 [SIGNATURES OF PARTIES ON NEXT PAGE] D.7.b Packet Pg. 260 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 9 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written. CITY: CITY OF GRAND TERRACE, a California municipal corporation By:_________________________________ Konrad Bolowich, City Manager ATTEST: By: Debra Thomas, City Clerk APPROVED AS TO FORM: By: ____ Adrian R. Guerra, City Attorney DEVELOPER: [INSERT NAME OF COMPANY], a [insert state] limited partnership By:____________________________________ Name: Title: By:____________________________________ Name: Title: Two corporate officer signatures required when Developer 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. DEVELOPER’S SIGNATURES SHALL BE DULY NOTARIZED, AND APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO DEVELOPER’S BUSINESS ENTITY. D.7.b Packet Pg. 261 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 01005.0018/813501.3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2024 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. D.7.b Packet Pg. 262 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) 2 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2024 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. D.7.b Packet Pg. 263 At t a c h m e n t : G T F o r m R e i m b u r s e m e n t A g r e e m e n t ( P o l i c y f o r R e i m b u r s e m e n t A g r e e m e n t ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Appropriations for Barton Rd Slope Repair PRESENTED BY: Kamran Dadbeh, Interim City Engineer RECOMMENDATION: 1. Approve appropriations in the amount of $192,000 for the Barton Rd slope repair. 2. Award a contract to TK Construction for repair services in the amount of $192,000 plus a 10% contingency ($19,200) and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" by investing in critical improvements to infrastructure. BACKGROUND: In October of 2023, there was significant subsidence of soil and collapse of the embankment on Barton Road north of Glendora Drive due to heavy rain. DISCUSSION: The intensity of the rain exceeded the storm drain's capacity, leading water to bypass the drain inlet and causing a complete collapse of the Barton Road embankment. Goodman and Associate were commissioned to assess the situation and propose remedial actions. Subsequently, three contractors-Matich Corporation, Mike Roquet Construction, and TK Construction-attended an onsite meeting to evaluate the situation and submit proposals for remediation. The deadline for submissions was January 29th at 4 pm. TK Construction was the sole contractor to submit a proposal for the necessary work. Staff recommends that the Council award a contract to TK Construction in the amount of $192,000 for the repair of the embankment on Barton Rd. ENVIRONMENTAL IMPACT None FISCAL IMPACT: D.8 Packet Pg. 264 Staff is recommending that City Council approve the appropriations of $192,000 plus a 10% contingency ($19,200) from the 2011 Bonds Proceeds. The balance of the 2011 Bond Proceeds as of February 13th, 2024 is $227,843. ATTACHMENTS: • TK Construction Agreement (DOCX) • Scope of Work TK (PDF) • Schedule of Compensation TK (PDF) APPROVALS: Kamran Dadbeh Completed 02/06/2024 11:00 AM Shanita Tillman Completed 02/02/2024 12:47 PM Finance Completed 02/06/2024 1:02 PM City Manager Completed 02/07/2024 2:36 PM City Council Pending 02/13/2024 6:00 PM D.8 Packet Pg. 265 01247.0001/959553.1 PUBLIC WORKS AGREEMENT By and Between CITY OF GRAND TERRACE and T K Construction D.8.a Packet Pg. 266 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -1- 01247.0001/959553.1 AGREEMENT FOR PUBLIC WORKS SERVICES BETWEEN THE CITY OF GRAND TERRACE AND TK CONSTRUCTION BARTON ROAD WASHOUT PROJECT This AGREEMENT FOR PUBLIC WORKS SERVICES (herein “Agreement”) BETWEEN THE CITY OF GRAND TERRACE (“City”) AND KIRTLEY CONSTRUCTION, INC. DBA TK CONSTRUCTION, A CALIFORNIA CORPORATION (“Contractor”), is made and entered into this ____ day of February, 2024. 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 D.8.a Packet Pg. 267 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -2- 01247.0001/959553.1 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” as provided in this Agreement, all of which are incorporated herein by this reference. In the event of any inconsistency between the terms of the bid documents and this Agreement, the terms of this Agreement shall govern. 1.3 Compliance with Law. Contractor shall keep itself informed concerning, and shall render all services hereunder in accordance with, all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental entity having jurisdiction in effect at the time service is rendered. 1.4 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. 1.5 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 DIR determination of the prevailing rate of per diem wages, and Contractor shall post a copy of the same at each job site where work is performed under this Agreement. (c) Penalty for Failure to Pay Prevailing Wages. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined D.8.a Packet Pg. 268 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -3- 01247.0001/959553.1 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 of 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 eight (8) hours per day at not less than one and one-half (1½) times the basic rate of pay. (h) Workers’ Compensation. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows: “I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers' compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.” Contractor’s Authorized Initials ________ D.8.a Packet Pg. 269 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -4- 01247.0001/959553.1 (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 latent or 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. 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 sole risk until written instructions are received from the Contract Officer. (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 D.8.a Packet Pg. 270 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -5- 01247.0001/959553.1 in Contractor's cost of, or the time required for, performance of any part of the work, shall issue a change order per Section 1.10 of this Agreement. (d) In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor's cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be performed under the Agreement. Contractor shall retain any and all rights provided 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 by City. 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 D.8.a Packet Pg. 271 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -6- 01247.0001/959553.1 be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Agreement, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming work and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. 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 Scope of Work and which are not detrimental to the Scope of 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 D.8.a Packet Pg. 272 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -7- 01247.0001/959553.1 done. The use of labor classifications that would increase the cost of such work shall not be permitted. (ii) Materials and Equipment: the cost of materials and equipment shall be at cost to Contractor or lowest current price which such materials and equipment are reasonably available at the time the work is done, whichever is lower. (iii) If the cost of the extra work cannot be agreed upon, the Contractor must provide a daily report that includes invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include: list of names of workers, classifications, and hours worked; description and list of quantities of materials used; type of 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 ONE HUNDRED NINETY TWO THOUSAND DOLLARS AND NO CENTS ($192,000.00) (the “Contract Sum”), unless additional compensation is approved pursuant to Section 1.10. 2.2 Method of Compensation. The method of compensation may include: (i) a lump sum payment upon completion; (ii) payment in accordance with specified tasks or the percentage of completion of the D.8.a Packet Pg. 273 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -8- 01247.0001/959553.1 services less the contract retention; (iii) payment for time and materials based upon the Contractor’s rates as specified in the Schedule of Compensation, provided that (a) time estimates are provided for the performance of sub tasks, (b) contract retention is maintained and (c) the Contract Sum is not exceeded; or (iv) such other methods as may be specified in the Schedule of Compensation. 2.3 Reimbursable Expenses. Compensation may include reimbursement for actual and necessary expenditures for reproduction costs, telephone expenses, and travel expenses approved by the Contract Officer in advance, or actual subcontractor expenses of an approved subcontractor pursuant to Section 4.5, 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. D.8.a Packet Pg. 274 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -9- 01247.0001/959553.1 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. 2.6 Substitution of Securities. (a) In conformance with the State of California Public Contract Code, Part 5, Section 22300, Contractor may substitute securities for any monies withheld by the City to ensure performance under this Agreement. (b) At the request and expense of Contractor, Contractor has the option of establishing an escrow account with a state or federally chartered bank which shall serve as an escrow agent, for Contractor’s direct deposit of securities as a substitute for retention earnings required to be withheld by the City. Upon Contractor’s completion of its obligations hereunder, as evidenced by the City’s acceptance of the work pursuant to Section 3.3 hereof, the escrow agent shall return the securities to Contractor. The escrow agent shall notify the City within ten (10) days after deposit of the securities. The market value of the securities at the time of the substitution shall be at least equal to the cash amount then required to be withheld as retention. Securities shall be held in the name of the City and shall designate Contractor as the beneficial owner. Alternatively, on written request of Contractor, the City shall make payments of the retention earnings directly to the escrow account. ARTICLE 3. PERFORMANCE SCHEDULE 3.1 Time of Essence. Time is of the essence in the performance of this Agreement. 3.2 Schedule of Performance. Contractor shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in 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 D.8.a Packet Pg. 275 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -10- 01247.0001/959553.1 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 submission to City. City shall accept work by a timely written acceptance, otherwise work shall be deemed to have been rejected. City’s acceptance shall be conclusive as to such work except with respect to latent defects, fraud and such gross mistakes as to amount to fraud. Acceptance of any work by City shall not constitute a waiver of any of the provisions of this Agreement including, but not limited to, Articles 1 and 5, pertaining to warranty and indemnification and insurance, respectively. 3.5 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services but not exceeding one (1) years from the date hereof, except as otherwise provided in the Schedule of Performance (Exhibit “D”). ARTICLE 4. COORDINATION OF WORK 4.1 Representatives and Personnel of Contractor. The following principals of Contractor (“Principals”) are hereby designated as being the principals and representatives of Contractor authorized to act in its behalf with respect to the work specified herein and make all decisions in connection therewith: David King Vice President (Name) (Title) It is expressly understood that the experience, knowledge, capability and reputation of the foregoing Principals were a substantial inducement for City to enter into this Agreement. Therefore, the Principals shall be responsible during the term of this Agreement for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Agreement, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor’s staff and subcontractors, if any, assigned to perform D.8.a Packet Pg. 276 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -11- 01247.0001/959553.1 the services required under this Agreement. Contractor shall notify City of any changes in Contractor’s staff and subcontractors, if any, assigned to perform the services required under this Agreement, prior to and during any such performance. 4.2 Status of Contractor. Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Agreement or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor’s officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor’s officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City’s employees. Contractor expressly waives any claim Contractor may have to any such rights. 4.3 Contract Officer. The Contract Officer shall be the City Manager or such person as may be designated by the City Manager. It shall be the Contractor’s responsibility to assure that the Contract Officer is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Contract Officer. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Contract Officer. The Contract Officer shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Agreement. 4.4 Independent Contractor. Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor’s employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly 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 D.8.a Packet Pg. 277 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -12- 01247.0001/959553.1 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 which shall cover all elected and appointed officers, employees and agents of the City (a) General liability insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. (b) Automobile liability insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Services to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. (c) Professional liability (errors & omissions) insurance. Contractor shall maintain professional liability insurance that covers the Services to be performed in connection 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. D.8.a Packet Pg. 278 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -13- 01247.0001/959553.1 (f) Additional Insurance. Policies of such other insurance, as may be required in the Special Requirements in Exhibit “B”. 5.2 General Insurance Requirements. (a) Proof of insurance. Contractor shall provide certificates of insurance to City as evidence of the insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. Insurance certificates and endorsements must be approved by City’s Risk Manager prior to commencement of performance. Current certification of insurance shall be kept on file with City at all times during the term of this Agreement. City reserves the right to require complete, certified copies of all required insurance policies, at any time. (b) Duration of coverage. Contractor shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Contractor, its agents, representatives, employees or subcontractors. (c) Primary/noncontributing. Coverage provided by Contractor shall be primary and any insurance or self-insurance procured or maintained by City shall not be required to contribute with it. The limits of insurance required herein may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of City before the City’s own insurance or self-insurance shall be called upon to protect it as a named insured. (d) City’s rights of enforcement. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Agreement. (e) Acceptable insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or that is on the List of Approved Surplus Line Insurers in the State of California, with an assigned 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. D.8.a Packet Pg. 279 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -14- 01247.0001/959553.1 (g) Enforcement of contract provisions (non-estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder. (h) Requirements not limiting. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. (i) Notice of cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage. (j) Additional insured status. General liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies. (k) Prohibition of undisclosed coverage limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (l) Separation of insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer’s limits of liability. The policy(ies) shall not contain any cross-liability exclusions. (m) Pass through clause. Contractor agrees to ensure that its subcontractors and any other party involved with the project who is brought onto or involved in the project by 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. D.8.a Packet Pg. 280 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -15- 01247.0001/959553.1 (o) Self-insured retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City. (p) Timely notice of claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor’s performance under this Agreement, and that involve or may involve coverage under any of the required liability policies. (q) Additional insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 5.3 Indemnification. To the full extent permitted by law, Contractor agrees to indemnify, defend and hold harmless the City, its officers, employees and agents (“Indemnified Parties”) against, and will hold and save them and each of them harmless from, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities whether actual or threatened (herein “claims or liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Contractor, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Contractor is legally liable (“indemnitors”), or arising from Contractor’s or indemnitors’ reckless or willful misconduct, or arising from Contractor’s or indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: (a) Contractor will defend any action or actions filed in connection with any of said claims or liabilities and will pay all costs and expenses, including legal costs and attorneys’ fees incurred in connection therewith; (b) Contractor will promptly pay any judgment rendered against the City, its officers, agents or employees for any such claims or liabilities arising out of or in connection with the negligent performance of or failure to perform such work, operations or 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. D.8.a Packet Pg. 281 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -16- 01247.0001/959553.1 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. 5.5 Performance and Payment Bonds. Concurrently with execution of this Agreement, Contractor shall deliver to the City all of the following bonds if the Contract Sum should exceed $25,000: a. A performance bond securing the faithful performance of this Agreement, in an amount not less than 100% of the total compensation for this Agreement, as stated in Section 2.1. b. A payment bond, securing the payment of all persons furnishing labor and/or materials in connection with the work under this Agreement, in an amount not less than 100% of the total compensation for this Agreement, as stated in Section 2.1. All bonds shall be on the applicable forms provided in Exhibit “D” and Exhibit “E” attached hereto and made part hereof. The bonds shall each contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her power of attorney. The bonds shall be unconditional and remain in force during the entire term of the Agreement until released pursuant to Section 5.7 hereof. 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 D.8.a Packet Pg. 282 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -17- 01247.0001/959553.1 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. If the City determines that the work 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 bonds may be changed accordingly upon receipt of written notice from the City’s Risk Manager. 5.7 Release of Securities. City shall release the performance bond and payment 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 Project 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 payment 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 D.8.a Packet Pg. 283 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -18- 01247.0001/959553.1 agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein or, if Contractor is providing design services, the cost of the project being designed, Contractor shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto and, if Contractor is providing design services, the estimated increased or decreased cost estimate for the project being designed. 6.3 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of the Contract Officer or upon the termination of this Agreement, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom. Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City. 6.4 Confidentiality and Release of Information. (a) Information gained or work product produced by Contractor in performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such 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.8.a Packet Pg. 284 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -19- 01247.0001/959553.1 (d) Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Agreement and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION 7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of San Bernardino, State of California, or any other appropriate court in such county, and Contractor covenants and agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Bernardino, State of California. 7.2 Disputes. (a) Default; Cure. In the event that Contractor is in default under the terms of this Agreement, the City shall not have any obligation or duty to continue compensating Contractor for any work performed after the date of default. Instead, the City may give notice to Contractor of the default and the reasons for the default. The notice shall include the timeframe in which Contractor may cure the default. This timeframe is presumptively thirty (30) days, but may be extended, though not reduced, if circumstances warrant. During the period of time that Contractor is in default, the City shall hold all invoices and shall proceed with payment on the invoices only when the default is cured. In the alternative, the City may, in its sole discretion, elect 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. D.8.a Packet Pg. 285 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -20- 01247.0001/959553.1 7.3 Retention of Funds. Contractor hereby authorizes City to deduct from any amount payable to Contractor (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Contractor’s acts or omissions in performing or failing to perform Contractor’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Contractor, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein. 7.4 Waiver. Waiver by any party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 7.5 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or 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 D.8.a Packet Pg. 286 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -21- 01247.0001/959553.1 of One Thousand Dollars ($1,000) as liquidated damages for each working day of delay in the performance of any service required hereunder, as specified in the Schedule of Performance (Exhibit “D”). The City may withhold from any monies payable on account of services performed by the Contractor any accrued liquidated damages. Pursuant to Government Code Section 4215, Contractor shall not be assessed liquidated damages for delay in completion of the project when such delay was caused by the failure of the public agency or owner of the utility to provide for removal or relocation of utility facilities. 7.8 Termination Prior to Expiration of Term. This Section shall govern any termination of this Contract except as specifically provided in the following Section for termination for cause. The City reserves the right to terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to Contractor, except that where termination is due to the fault of the Contractor, the period of notice may be such shorter time as may be determined by the Contract Officer. In addition, the Contractor reserves the right to terminate this Contract at any time, with or without cause, upon sixty (60) days’ written notice to City, except that where termination is due to the fault of the City, the period of notice may be such shorter time as the Contractor may determine. Upon receipt of any notice of termination, Contractor shall immediately cease all services hereunder except such as may be specifically approved by the Contract Officer. Except where the Contractor has initiated termination, the Contractor shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination and for any services authorized by the Contract Officer thereafter in accordance with the Schedule of Compensation or such as may be approved by the Contract Officer, except as provided in Section 7.3. In the event the Contractor has initiated termination, the Contractor shall be entitled to compensation only for the reasonable value of the work product actually produced hereunder. In the event of termination without cause pursuant to this Section, the terminating party need not provide the non-terminating party with the opportunity to cure pursuant to Section 7.2. 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 D.8.a Packet Pg. 287 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -22- 01247.0001/959553.1 necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment. 7.11 Unfair Business Practices Claims. In entering into this Agreement, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Agreement. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment of the Parties. ARTICLE 8. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION 8.1 Non-liability of City Officers and Employees. No officer or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Agreement. 8.1 Conflict of Interest. Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of services under this Agreement. Contractor further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor 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 D.8.a Packet Pg. 288 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -23- 01247.0001/959553.1 that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry, or other protected class. 8.3 Unauthorized Aliens. Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Agreement, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City. ARTICLE 9. MISCELLANEOUS PROVISIONS 9.1 Notices. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Contract Officer (with her/his name and City title), City of Grand Terrace, 22795 Barton Road, Grand Terrace, California 92313, and in the case of the Contractor, to the person at the address designated on the execution page of this Agreement. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section. All correspondence relating to this Agreement shall be serialized consecutively. 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 D.8.a Packet Pg. 289 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -24- 01247.0001/959553.1 Contractor and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void. 9.5 Severability. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Agreement meaningless. 9.6 Warranty & Representation of Non-Collusion. No official, officer, or employee of City has any financial interest, direct or indirect, in this Agreement, nor shall any official, officer, or employee of City participate in any decision relating to this Agreement which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of “financial interest” shall be consistent with State law and shall not include interests found to be “remote” or “noninterests” pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any agreement. Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or 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. 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.) 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 D.8.a Packet Pg. 290 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -25- 01247.0001/959553.1 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] D.8.a Packet Pg. 291 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) -26- 01247.0001/959553.1 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: KIRTLEY CONSTRUCTION, INC. DBA TK CONSTRUCTION By: ___________________________________ Name: David King Title: Vice President, By: ___________________________________ Name: Patricia Kirtley Title: Secretary/Treasurer Address: 740 W. 40th Street, San Bernardino, CA 92407 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. D.8.a Packet Pg. 292 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2024 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. D.8.a Packet Pg. 293 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF SAN BERNARDINO On __________, 2024 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. D.8.a Packet Pg. 294 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 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” and Addenda 1. II. Brief description of the work to be performed under this Agreement is as follows (“Project”): A. Remediation and reconstruction of failed slope embankment adjacent to Barton Road in accordance with approved plans, specifications, and submitted proposal, attached hereto as Exhibit “A-1,” and including supplemental site preparation and new slope construction. III. In addition to the requirements of Section 6.2, during performance of the work, Contractor will keep the City apprised of the status of performance by delivering status reports on a weekly basis and pursuant to the construction timeline. Contractor shall also deliver status reports as may be required by the City from time to time. IV. All work is subject to review and acceptance by the City, and must be revised by the Contractor without additional charge to the City until found satisfactory and accepted by the 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. D.8.a Packet Pg. 295 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 EXHIBIT “A-1”PERFORMANCE BOND Barton Road Washout Project We, _________, 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”) for payment of the penal sum of __________ U.S. Dollars and ____ Cents ($_______). 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. THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal shall in all things stand to and abide by, and well and truly keep and perform all of the covenants, conditions, and provisions in said agreement, and any alteration thereof made as therein provided, on Principal's part to be kept and performed at the time and in the manner therein specified, and shall indemnify and save harmless the City, City’s engineer, and their consultants, and each of their officials, directors, officers, employees and agents, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect. Surety agrees that should it fail to take over and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement, Surety will 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 exist, notwithstanding any controversy between Principal and City regarding Principal's failure under the agreement, and payment by Surety should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligations herein and shall be deemed proper payment as between Principal and Surety. 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 may affect Surety's risk shall in any wise affect its obligation on this bond, and it does thereby waive notice thereof. Principal and Surety agree that if the City is required to engage the services of an attorney in connection with the enforcement of this bond, each shall pay City's reasonable attorneys' fees incurred, with or without suit, in addition to the above sum. D.8.a Packet Pg. 296 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 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 company] _________________________ ____________________________________ 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. D.8.a Packet Pg. 297 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 EXHIBIT A-2 PAYMENT BOND Barton Road Washout Project We, ______, 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 ______________ U.S. Dollars and ______ Cents ($________). 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. D.8.a Packet Pg. 298 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 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. D.8.a Packet Pg. 299 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 EXHIBIT “B” SPECIAL REQUIREMENTS (Superseding Contract Boilerplate) D.8.a Packet Pg. 300 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 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 (10%) shall be held from each payment as a contract retention to be paid as part of the final payment upon satisfactory completion of services. III. Within the budgeted amounts for each item above, and with the approval of the Contract Officer, funds may be shifted from one item’s sub budget 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 $192,000 as provided in Section 2.1 of this Agreement. D.8.a Packet Pg. 301 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 EXHIBIT C-1 D.8.a Packet Pg. 302 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 01247.0001/959553.1 EXHIBIT “D” SCHEDULE OF PERFORMANCE I. Contractor shall perform all work timely and in accordance with plans and specifications as provided in Exhibit A and such work shall be completed within 60 working days of the Notice to Proceed issued by the Contract Officer. II. The Contract Officer may approve extensions for performance of the services in accordance with Section 3.2. D.8.a Packet Pg. 303 At t a c h m e n t : T K C o n s t r u c t i o n A g r e e m e n t ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) UTILITIES SHEET INDEX SHEET NO. DESCRIPTION TITLE SHEET 1 287 TENNESSEE STREET SOUTHERN CALIFORNIA EDISON CO ELECTRICITY GAS TELEPHONE REDLANDS, CALIFORNIA 92373 (909) 307-6759 CONTACT: KEVIN PURTY REDLANDS, CALIFORNIA 92374 (909) 335-7772 CONTACT: DEVERY JENNINGS SOUTHERN CALIFORNIA GAS CO 1981 WEST LUGONIA AVENUE VERIZON SHEET 1 SHEET 2 SHEET 3 TITLE SHEET WATER RIVERSIDE HIGHLAND WATER CO 12374 MICHIGAN STREET GRAND TERRACE, CA 92313 (909) 825-4128 1980 ORANGE STREET LN, STE 100 REDLANDS, CA 92374 (909) 748-6663 CONTACT: FRANK MURPHY SAWCUT & REMOVE AC PAVEMENT CITY OF GRAND TERRACE WITH THE COUNTY OF SAN BERNARDINO SURVEYOR AT NO ADDITIONAL COST TO THE CITY. THE CONTRACTOR IS RESPONSIBLE FOR THE PROTECTION OF ALL UTILITY VALVES, BOXES, BE CLEANED AND COATED WITH AN ASPHALTIC EMULSION. AT ALL LOCATIONS WHERE NEW PAVEMENT JOINS EXISTING, THE EXISTING PAVEMENT SHALL STRAIGHT LINES. 9. 10. THE CONTRACTOR SHALL RESET MANHOLE RINGS TO SURROUNDING A.C. PAVEMENT GRADE.11. THE CONTRACTOR SHALL CALL IN A LOCATION REQUEST TO UNDERGROUND SERVICE ALERT12. OBSERVANCE OF THE CONTRACTOR'S WORK BY REPRESENTITIVES OF THE CITY ENGINEER'S OFFICE13. ALL EXPOSED CONCRETE SHALL CONFORM IN GRADE, COLOR AND FINISH TO ALL ADJOINING14. THE CONTRACTOR(S) SHALL COORDINATE CONSTRUCTION WITH ALL UTILITIES AND OTHER IMPROVEMENTS15. CONTRACTOR IS INSTRUCTED TO REFER TO THESE PLANS AND THE SPECIFICATIONS, AND WHERE THERE16. IF EXISTING UTILITIES OR ANY OTHER FACILITIES CONFLICT WITH THE PROPOSED IMPROVEMENTS, WORK SHALL17. CONTRACTOR IS TO PROTECT PERMANENT MONUMENTS IN PLACE, PERMANENT MONUMENTS DESTROYED18. COVERS, AND ADJUSTING OF ALL CITY WATER VALVE BOXES AND COVERS TO FINISH GRADE. (U.S.A.), PHONE NUMBER 1 (800) 227-2600, TWO WORKING DAYS BEFORE DIGGING. NO INSPECTION WILL BE PROVIDED BY THE CITY ENGINEER'S OFFICE, AND NO CONSTRUCTION PERMIT ISSUED BY THE PUBLIC WORKS DEPT. INVOLVING EXCAVATION FOR UNDERGROUND FACILITIES WILL BE VALID UNLESS THE APPLICANT HAS BEEN PROVIDED AN INQUIRY IDENTIFICATION SHALL NOT RELIEVE THE CONTRACTOR OF THE FINAL AND ULTIMATE RESPONSIBILITY FOR THE CONTRACTOR OF THE IMPROVMENTS IN ACCORDANCE WITH THESE PLANS AND ANY REFERANCED CURBS AND SIDEWALKS. INCLUDING, BUT NOT LIMITED TO, GAS, TELEPHONE, ELECTRICAL, LIGHTING, TELEVISION CABLE, LANDSCAPING, LANDSCAPING IRRIGATION, DOMESTIC WATER, RECLAIMED WATER, SEWER, STORM DRAINAGE, FLOOD CONTROL IS OR MAY BE A CONFLICT SHALL IMMEDIATELY REPORT SAID CONFLICT OR POSSIBLE CONFLICT TO THE CITY. STOP AND THE ENGINEER NOTIFIED IMMEDIATELY. A NO FEE CONSTRUCTION PERMIT SHALL BE OBTAINED BY THE CONTRACTOR, SHALL BE RESET BY THE CONTRACTORS SURVEYOR AND CORNER RECORDS FILED NUMBER BY U.S.A. SPECIFICATIONS, STANDARD DRAWINGS OR DETAILS. SYSTEMS, ETC. FROM THE CITY OF LOMA LINDA ENGINEERING DIVISION PRIOR TO START OF ANY WORK WITHIN THE CITY LIMITS. NOTIFY CITY ENGINEER'S OFFICE AT (909) 825-6621 24 HOURS PRIOR TO TESTS. ALL EXISTING PAVEMENT TO BE REMOVED SHALL BE SAWCUT AND REMOVED TO CLEAN THE CONTRACTOR SHALL MAINTAIN DUST CONTROL AT ALL TIMES. THE CONTRACTOR SHALL SATISFY HIMSELF THAT THE ESTIMATED QUANTITIES SHOWN ARE ALL TRENCH BACK FILL AND SUBMITTING THEM TO THE CITY ENGINEER FOR APPROVAL. UTILITY CONTRACTORS SHALL BE RESPONSIBLE FOR OBTAINING COMPACTION TESTS OF IT SHALL BE THE CONTRACTOR'S RESPONSIBILITY TO CALL THE CITY ENGINEER'S IT SHALL BE THE CONTRACTOR'S RESPONSIBILITY TO OBTAIN ALL NECESSARY PERMITS. NOT SHOWN ON THESE PLANS. NEITHER THE CITY OF GRAND TERRACE NOR THE WITH THE JOB SITE AND THE LOCATION OF UNDERGROUND FACILITIES SHOWN OR IT SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR TO FAMILIRIZE HIMSELF SUPPLEMENTS, AND THE STANDARD PLANS AND SPECIFICATIONS OF THE SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION (LATEST EDITION), WITH GENERAL NOTES ALL WORK SHALL BE IN ACCORDANCE WITH THESE PLANS, THE STANDARD 2. OFFICE AT (909) 825-6621 FOR INSPECTION 24 HOURS PRIOR TO PREFORMING ENGINEER WILL BE RESPONSIBLE FOR ANY DAMAGE TO UNDERGROUND FACILITIES. 8. 7. 6. 5. 4. 3. 1. CITY OF GRAND TERRACE. ANY WORK. WORK PREFORMED WITHOUT CALLING FOR INSPECTION SHALL BE REJECTED AND SHALL BE REMOVED SOLELY AT THE CONTRACTOR'S EXPENSE. CORRECT BEFORE BIDDING ON ANY ITEM. 1 SEWER CITY OF COLTON WASTEWATER 106 S 10TH STREET COLTON, CA 92324 (909) 370-6131 180 SF CONSTRUCTION NOTES WASHOUT REMEDIATION PLAN BARTON ROAD EXISTING CONDITIONS GRADING AND PAVEMENT PLAN PROJECT SITE VICINITY MAP OVER COMPACTED MATERIAL (PER SOILS REPORT) PLACE AC PAVEMENT & CL2AB (MATCH EXISTING STRUCTURAL SECTION) 2 CONSTRUCTION 8" AC BERM PER SBCO STD 117 3 REMOVE EXISTING AC BERM 4 5 RECONSTRUCT/REPAIR EXISTING SLOPE (PER SOILS REPORT) 200 SF 91 LF 91 LF 100 CY FILL* * 1-800-227-2600 A PUBLIC SERVICE BY UNDERGROUND SERVICE ALERT DIAL TOLL FREE YOU DIG BEFORE TWO WORKING DAYS BEFORE YOU DIG REVISIONSMARK FOR CITY USE ONLY: FILE NO. DRAWN BY: RECOMMENDED BY: CHECKED BY: EXP 12/31/24 CITY ENGINEER - KAMRAN DADBEHDATEAPPR.BY 3 W.O. NO. SHEET ___ OF _____SHEETS CITY OF GRAND TERRACEAPPROVED 2023 DRAWING NO. (909) 824-2775 DOUGLAS L. GOODMAN R.C.E. 28500 2079 SKY VIEW DRIVE COLTON, CALIFORNIA 92324 REGSTE ERDSSO A L E N G EN E ER CALFORNIAST T A E OF NFPRO CIVIL No. 28500 Expir es 3-31- DO UGLAS N GOODMA L. ASSOCIATES Goodman& DATE MY LICENSE EXPIRES 3-31-24 24 REGISTERED CIVIL ENGINEER NO. 52185 BENCH MARK: PRIOR TO BEGINNING CONSTRUCTION AND DEPTH OF EXISTING UTILITIES CONTRACTOR TO VERIFY LOCATION NOTE: DRAFT PRINT DATE 11/17/23 BARTON ROAD WASHOUT REMEDIATION PLAN SHRINKAGE. ADJUSTMENTS FOR SUBSIDENCE OR THESE ARE RAW QUANTITIES WITH NO D.8.b Packet Pg. 304 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 995 9 9 0 960 965970 9 5 5 9 5 5 955 95 5 9 5 5 9 6 0 9 6 0 9 6 0 9 6 0 9 6 0 960 9 6 5 9 6 5 965 965 96 5 9 6 5 96 5 9 6 5 9 7 0 970 97 0 970 9 7 0 9 7 0 970 9 7 0 970 970 97 5 975 9 7 5 9 7 5 9 7 5 97 5 97 5 9 7 5 975 9 75 98 0 980980 980 98 0 980 9 8 0 98 0 980 9 8 0 985 9 85 985 9 8 5 985 9 8 5 98 5 985 9 9 0 990 990 990 990 99 5 9 9 5 995 1000 10 0 0 1000 10 0 5 10 1 0 1 0 1 0 1-800-227-2600 A PUBLIC SERVICE BY UNDERGROUND SERVICE ALERT DIAL TOLL FREE YOU DIG BEFORE TWO WORKING DAYS BEFORE YOU DIG REVISIONSMARK FOR CITY USE ONLY: FILE NO. DRAWN BY: RECOMMENDED BY: CHECKED BY: EXP 12/31/24 CITY ENGINEER - KAMRAN DADBEHDATEAPPR.BY 3 W.O. NO. SHEET ___ OF _____SHEETS CITY OF GRAND TERRACEAPPROVED 2023 DRAWING NO. (909) 824-2775 DOUGLAS L. GOODMAN R.C.E. 28500 2079 SKY VIEW DRIVE COLTON, CALIFORNIA 92324 REGSTE ERDSSO A L E N G EN E ER CALFORNIAST T A E OF NFPRO CIVIL No. 28500 Expir es 3-31- DO UGLAS N GOODMA L. ASSOCIATES Goodman& DATE MY LICENSE EXPIRES 3-31-24 24 REGISTERED CIVIL ENGINEER NO. 52185 BENCH MARK: PRIOR TO BEGINNING CONSTRUCTION AND DEPTH OF EXISTING UTILITIES CONTRACTOR TO VERIFY LOCATION NOTE: DRAFT PRINT DATE 11/17/23 BARTON ROAD WASHOUT REMEDIATION PLAN 20 200 40 60 SCALE 1"= 20' EXISTING CONDITION 2 B A R T O N R D D W Y P R IV A T E E X IS T E X I S T P R I V A T E D W Y SEE SHT 3 D.8.b Packet Pg. 305 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 1-800-227-2600 A PUBLIC SERVICE BY UNDERGROUND SERVICE ALERT DIAL TOLL FREE YOU DIG BEFORE TWO WORKING DAYS BEFORE YOU DIG REVISIONSMARK FOR CITY USE ONLY: FILE NO. DRAWN BY: RECOMMENDED BY: CHECKED BY: EXP 12/31/24 CITY ENGINEER - KAMRAN DADBEHDATEAPPR.BY 3 W.O. NO. SHEET ___ OF _____SHEETS CITY OF GRAND TERRACEAPPROVED 2023 DRAWING NO. (909) 824-2775 DOUGLAS L. GOODMAN R.C.E. 28500 2079 SKY VIEW DRIVE COLTON, CALIFORNIA 92324 REGSTE ERDSSO A L E N G EN E ER CALFORNIAST T A E OF NFPRO CIVIL No. 28500 Expir es 3-31- DO UGLAS N GOODMA L. ASSOCIATES Goodman& DATE MY LICENSE EXPIRES 3-31-24 24 REGISTERED CIVIL ENGINEER NO. 52185 BENCH MARK: PRIOR TO BEGINNING CONSTRUCTION AND DEPTH OF EXISTING UTILITIES CONTRACTOR TO VERIFY LOCATION NOTE: DRAFT PRINT DATE 11/17/23 BARTON ROAD WASHOUT REMEDIATION PLAN 1 SAWCUT & REMOVE AC PAVEMENT CONSTRUCTION NOTES OVER COMPACTED MATERIAL (PER SOILS REPORT) PLACE AC PAVEMENT & CL2AB (MATCH EXISTING STRUCTURAL SECTION) 2 CONSTRUCTION 8" AC BERM PER SBCO STD 117 3 REMOVE EXISTING AC BERM 4 5 RECONSTRUCT/REPAIR EXISTING SLOPE (PER SOILS REPORT) PAVEMENT REMEDIATION & GRADING 3 5 50 10 SCALE 1"= 5' EXIST SEWER MH (PIP) 1 4.5' 4.5' 4 1 . 0 ' 2 3 4 3 JOIN EXIST REPLACEMENT END AC BERM 26+02 2 5 2 6 BERM REMOVAL BEG AC PAVE & 25+11 5 AND REPLACEMENT END AC PAVE REMOVAL 25+52 EXIST 'COLTON' SIGN (PIP) 9 6 3 9 6 5 9 7 0 9 7 5 9 8 0 9 8 5 9 9 0 9 9 5B A R T O N R D 9 5 5 9 6 0 9 6 5 9 7 0 970 9 7 5 9 7 5 98 0 980985 990 9 9 0 99 5 D.8.b Packet Pg. 306 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 307 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 308 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 309 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 310 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 311 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 312 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 313 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 314 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 315 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 316 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 317 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 318 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 319 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 320 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 321 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 322 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 323 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 324 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 325 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 326 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 327 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 328 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 329 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 330 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 331 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 332 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 333 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 334 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 335 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 336 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 337 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 338 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 339 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) D.8.b Packet Pg. 340 At t a c h m e n t : S c o p e o f W o r k T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) 1 of 2 Company Name: Date: Attention of: Project Number:BN This Proposal is based on: We hereby submit an estimate for: Item 1 ls 75 cy 2,300 sf 1 ls 18 cy 184.5 sf 184.5 sf 92 lf * * * * * *Some vegetation may be removed to gain access to site. Proposal does not assume replacing. Proposal Total:$192,000.00 Proposal does not include any work on existing sewer line. Traffic plans will be implemented using WATCH manual. No engineered plans. No weekend or night work. can be accessed with large equipment, is not a natural waterway, and is no fee to work in Flagmen will be used for road repair. Proposal assumes mobilizing & stockpiling at the base of the site. It is assumed this area Guard rail (by others) Roadway inlay pave with 4 inch thick PG 64-10 over 8 inches of base compacted. Roadway overlay cap with 2 inch thick PG 64-10 Remove and replace 8 inch AC berm Furnish and install geo grid. Backfill slope Roadway strip and recompact. Mobilization and demobilization 192,000.00$ Material import, trucking, and stockpile (import to fill dirt) Project Description Sub-Total Email: Kdadbeh@grandterrace-ca.gov Estimator:David King State Prevailing Wages Phone #:909-954-5192 City / State / Zip Grand Terrace, CA Fax #: City / State / Zip Grand Terrace, CA 92313 240122 R1 Project Address:Barton Rd Kamran Dadbeh Address:22795 Barton Rd Project Name: Barton Shoulder Repair PROPOSAL PROPOSAL SUBMITTED TO:Page No. City of Grand Terrace Wednesday, January 31, 2024 TK CONSTRUCTION P.O. BOX 9608, SAN BERNARDINO, CA 92427 (909)473-8739 Fax (909) 473-3067 License #811801 D.8.c Packet Pg. 341 At t a c h m e n t : S c h e d u l e o f C o m p e n s a t i o n T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) Project Number:BN 2 of 2 * * * * * * * * * * * * * * * * * * * * * * * * * * We hereby propose to furnish labor - complete in accordance with the above specifications, for the sum of The above prices, specifications and conditions are hereby accepted. You are authorized to do the work as specified. Payment will be made as outlined above. ACCEPTED:SIGNATURE DATE:SIGNATURE Authorized Signature ACCEPTANCE OF PROPOSAL All material is guaranteed to be as specified. All work to be completed in a workmanlike manner according to standard practices. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. All agreements contingent upon strikes, accident or delays beyond our control. This proposal subject to acceptance within 30 days and it is void thereafter at the option of the undersigned. with payments to be made as follows: Payment to be made upon completion of project Technical Specs Dated: N/A Plans dated:N/A One Hundred and Ninety Two Thousand Dollars and Zero Cents $192,000.00 Owner to provide: permit fees if required All work to be done in one mobilization. Additional mobilizations will be billed as extra. 240122 R1 Page No. Project Specific Notes: District to secure access permission for all areas of work. Encroachment to be "No Fee". All other fees to be paid for by District. David King D.8.c Packet Pg. 342 At t a c h m e n t : S c h e d u l e o f C o m p e n s a t i o n T K ( A p p r o p r i a t i o n s f o r B a r t o n R d S l o p e R e p a i r ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Street Rehabilitation Project: FY 2023-24 CIP and City Yard Improvements PRESENTED BY: Kamran Dadbeh, Interim City Engineer RECOMMENDATION: 1. Adopt a resolution of the City Council of the City of Grand Terrace in the County of San Bernardino, State of California, adopting the revision to the Fiscal Year 2023-24 Five-Year Capital Improvement Plan (CIP) for Fiscal Years 2023-24 through 2027-28. 2. Find that the Capital Improvement Project (CIP 2023-1) is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) and authorize the preparation and filing of a Notice of Exemption as applicable. 3. Award the Capital Improvement Project (CIP 2023-24) to Hardy & Harper, Inc. on the Base Bid and approve the public works agreement with Hardy & Harper, Inc., in the amount of $1,188,000, plus a 10% contingency ($118,800) for the construction of the Capital Improvement Project (CIP 2023-24), and authorize the City Manager to execute the agreement, subject to City Attorney approval as to form. 4. Award a contract to Willdan for Inspection Services for Capital Improvement Project (CIP 2023-24) in the amount of $36,240 plus a 10% contingency ($3,624), and authorize the City Manager to execute the agreement, subject to City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" by investing in improvements to public infrastructure. BACKGROUND: D.9 Packet Pg. 343 The City of Grand Terrace secured American Rescue Plan Act (ARPA) funds to address deferred maintenance on both the State Highway System and the local street and road network. DISCUSSION: Upon reviewing the streets designated for the FY 2023-24 CIP, savings from two previous CIP projects allow expansion to include additional paving segments. The recommendation is to add Main Street, a short section of Barton Road, and improvements to the City Maintenance Yard to the FY 2023-24 CIP. A bid package, including construction plans, technical specifications, and bid documents, was prepared and advertised. The project encompasses street rehabilitation, including paving, striping, and sidewalk replacement, at the following locations (see attached map): • De Berry Street from Michigan Street to East End • Whistler Street from De Berry Street to Cardinal Street • Wren Street from Whistler Street to Observation Drive • Finch Street from Whistler Street to Observation Drive • Barton Road from Mt. Vernon Avenue to Palm Avenue • Main Street from High School to East End (North Side Only) • City Yard Improvements Bids were accepted until 10:00 a.m. on Monday, November 27th, 2023. The City Clerk received four timely bids as follows: • Hardy & Harper Inc., Lake Forest: $1,188,000 • Matich Corp., Highland: $1,290,382 • Onyx Paving Company, Inc., Anaheim: $1,484,000 • R.J. Noble, Orange: $1,499,612 Staff solicited proposals from Willdan for project inspection. Based on the foregoing, Staff recommends that the City Council concurs with staff’s recommendation. CEQA FINDING: Paving projects fall under the categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) because they relate to repair/maintenance of existing streets. FISCAL IMPACT: This project will be funded by ARPA funding, account #94-175-257-000-000 if City Council approves recommendations 2-4. D.9 Packet Pg. 344 ATTACHMENTS: • Project Locations (PDF) • Willdan Proposal (PDF) • Hardy & Harper Bid (PDF) APPROVALS: Kamran Dadbeh Completed 01/29/2024 10:34 AM Shanita Tillman Completed 02/07/2024 2:08 PM Finance Completed 02/07/2024 2:22 PM City Manager Completed 02/07/2024 2:33 PM City Council Pending 02/13/2024 6:00 PM D.9 Packet Pg. 345 R D.9.a Packet Pg. 346 At t a c h m e n t : P r o j e c t L o c a t i o n s ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) December 20, 2023 Kamran Dadbeh, City Engineer City of Grand Terrace, Public Works Department 22795 Barton Road Grand Terrace, CA 92313 Subject: REV: Proposal for Inspection Services for the Pavement Rehabilitation on De Berry Street Project and City Yard Improvements Dear Mr. Dadbeh: Willdan Engineering is pleased to present the City of Grand Terrace with this proposal to assist in managing and inspecting the City of Grand Terrace’s Pavement Rehab and City Yard Improvements. Willdan Engineering has been providing construction management and inspection services to California cities and counties for 59 years, including Grand Terrace, Highland, Bell, Lakewood, Downey, and Cerritos. We are well suited to partner with the City of Grand Terrace to achieve a fast-track approach for planned infrastructure projects. Willdan will provide staffing professionals who are committed to providing the City with top-quality service. The following strengths are what set us apart from the competition and make us the best-qualified team for this assignment: Highly Skilled Construction Inspector. Our proposed Public Works Inspector, Mr. Justin Parent possesses over 15 years of experience in the construction field. He is proficient in providing inspection of work quality and materials to ensure conformance to plans, specifications, codes, ordinances, and regulations of projects. Mr. Parent offers extensive street improvement experience to the City of Grand Terrace. Unmatched Pavement Improvement Project Experience. Willdan has provided construction management and/or inspection on an extensive amount of pavement related projects for over 59 years, including bike lanes, rehabilitations, slurry seals, and street widening. Our project team has experience working together on hundreds of public works projects throughout the region. Large Company with Boutique Company Approach. We have the resources of a large company but are staffed by individuals who respect our clients' unique needs. Every Willdan employee – including those working at City offices – seeks to understand each city's goals, policies, and practices based upon what is written in their general plans and development codes and how those goals and policies have been applied over time. This approach has contributed to Willdan’s success. We have worked with nearly 90% of California cities and counties to deliver 13,000+ projects, serving over 3,400 clients. Willdan looks forward to the opportunity to assist the City of Grand Terrace on this very important project. Should you have any questions regarding our proposal, please do not hesitate to contact me at (310)-502-6335. Respectfully submitted, Approval and Authorization to Proceed By: WILLDAN ENGINEERING CITY OF GRAND TERRACE Chris Baca, RCI, CESSWI Director of Construction Management Signature and Inspection Services Date 910005\06-140\P23-377R2_25924 D.9.b Packet Pg. 347 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace WILLDAN CONSTRUCTION SERVICES EXPERTISE Willdan provides expertise in all areas of project and construction management, contract administration, construction inspection and observation, grant funding administration and compliance, labor compliance, and community relations. Willdan's corporate philosophy emphasizes strong leadership, cost effectiveness, timely performance, and consistent reciprocal communication with clients and internal and external resources. Our resident engineers, construction managers, and construction inspectors offer reliable service, quality workmanship, use of good judgment, fair and equitable treatment, and adherence to our corporate integrity. These experienced team members identify and correct discrepancies, ambiguities, omissions, or conflicts in plans, specifications, and bid schedules that might generate misinterpretation and/or lead to agency and contractor disagreements. Our professionals are adept at anticipating issues before they arise through continual review of project plans, specifications, contractors’ schedules, and contract documents. Potential problems are brought to the attention of the City's Project Manager and/or the contractor, along with constructive recommendations for solutions, so that costly delays and negative impacts to the public and the project are mitigated. METHODOLOGY Project Understanding Willdan understands the City of Grand Terrace requires the services of a qualified construction manager and inspector to provide full-time inspection services for 30 working days and will include cold milling, existing AC pavement, AC removals and reconstructions, ARHM Overlays, AC Base Overlays and Adjusting Utilities to grade; signing, striping, loop detector replacements, and traffic control; removal and replacement of cross gutters and spandrels, including adjacent curb and gutter, and ADA curb ramps. Project Approach Willdan provides expertise in all areas of construction management, inspection, labor compliance, and community relations to residents and businesses affected by construction. Our experienced team members serve as construction managers, resident engineers, and inspectors and provide significant insight for identifying and correcting discrepancies, ambiguities, omissions, or conflicts in contract documents that could generate misinterpretation and/or disagreements between the City and the contractor. Our goal is to anticipate or diminish potential problems before they arise through continual review of project plans, specifications, contractor’s schedule, and other contract documents. The graphic below shows potential challenges when undertaking a pavement project and how Willdan works to mitigate those challenges. D.9.b Packet Pg. 348 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace Our team is adept at: ▪ Anticipating job site problems and dealing with issues in a professional, straightforward fashion ▪ Calling job site problems to the project manager’s and/or contractor’s attention ▪ Offering constructive recommendations and achieving cooperation from the contractor ▪ Addressing concerns of the public Our approach to issue resolution is to: ▪ Obtain and document the facts surrounding the issue. ▪ Develop reasonable solutions in conjunction with the contractor and City project manager. ▪ Respond quickly and effectively so that job progress and quality do not suffer. Through close communication with the City’s project staff, timely corrective action is taken to alleviate potential adverse impacts of work progress, costly change orders, and construction claims. QUALITY CONTROL/QUALITY ASSURANCE Willdan will perform Quality Assurance and Quality Control of this project through a diligent review of all work and documentation. Quality Assurance and Quality Control will begin with the pre-construction meeting, at which time the scope of the project and control requirements will be reviewed with the General Contractor. Once construction begins, the next step in the Quality Control process will be the verification of materials and components to be installed. Once the material and components arrive onsite, Willdan Inspectors will spot-check these materials and components to verify they match the construction documents. The Inspectors will maintain a detailed record of samples, tests, material releases, and certificate of compliance for the project. Willdan Inspectors closely monitor projects to ensure compliance with all contract requirements. Most of our inspectors have American Construction Inspectors Association (ACIA) certification and attend regular seminars, college courses, and in-house presentations to keep abreast of current construction technologies. In addition to ACIA, many of our staff are certified QSPs and QSDs and are provided with the latest information concerning the implementation of the State Water Board permit. Willdan’s inspectors have knowledge of basic soil dynamics and are highly cognizant of the crucial role of soils compaction in construction. They are also familiar with the need for general material testing for asphalt and concrete. The basic goal of the quality assurance plan is to provide quality work delivered on time and within budget. We do this by adhering to the following steps. Willdan adopted Caltrans' Construction Manual (LAPM) as our in-house quality standard and has incorporated Caltrans' prescribed standards and procedures into our everyday inspection routine. This ensures we meet federal and state guidelines from the start. Contractor Compliance Our inspection staff has extensive experience with a myriad of public works projects and our staff has a clear understanding of the issues surrounding inspection of the work. For example, when constructing trench backfill, our inspector will ensure adequate compaction has been achieved. Inspectors will monitor the work for conformance with the plans and specifications. Willdan’s inspectors will monitor the contractor’s operations for conformance with City compaction standards by working with the City’s approved material testing lab and will not accept any trench backfill or allow any pavement repair until proper compaction is verified by the lab. Delivery tickets will be checked to ensure materials match the approved submittals. Address contractor coordination issues Identify key dates to maintain the project schedule Investigate constructability Discuss project sequencing Track progress D.9.b Packet Pg. 349 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace PROJECT EXPERIENCE Recent Project Experience Pavement Rehabilitation Barton Road City of Grand Terrace Willdan provided public works inspection for the City’s pavement rehabilitation project. Willdan provided public works inspection for the public improvements for the new site improvements at 22181 Barton Road. The work includes sidewalk repair, curb/gutter, minor paving, and other appurtenant work. Pavement Rehabilitation Various Streets City of Grand Terrace Willdan provided public works inspection for the City’s various street pavement rehabilitation project. Willdan will provide public works inspection for the public improvements for the City's Barton Road Pavement Rehabilitation Project. The work includes cold milling, ARHM paving, PCC repairs, and other appurtenant work. Pavement Rehabilitation STR200002A Pacific Street City of Highland Willdan provided the services of a qualified construction engineering consultant to provide construction management and inspection services. This project involves pavement rehabilitation including pavement griding, cold central plant recycling, pavement removal and replacement, and asphalt rubber overlay. The scope of work includes minor removal and replacement of damaged concrete sidewalk, curb and gutter, and gross gutter; grinding raised sidewalk panels; slurry seal, crack repair, crack seal; adjusting valve covers to final grade, protection of manholes; and installation of striping and markings. Construction Management/Inspection STR20003 City of Highland Willdan provided the services of a qualified construction engineering consultant to provide construction management and inspection services or the Sector E Pavement Rehabilitation Project, City Project No. str20003. This project involves pavement rehabilitation including pavement griding, cold central plant recycling, pavement removal and replacement, and asphalt rubber overlay. The scope of work includes minor removal and replacement of damaged concrete sidewalk, curb and gutter, and gross gutter; grinding raised sidewalk panels; slurry seal, crack repair, crack seal; adjusting valve covers to final grade, protection of manholes; and installation of striping and markings. D.9.b Packet Pg. 350 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace SCOPE OF WORK Construction Inspection The Construction Inspector will observe work performed by the contractor for general conformance with the plans and specifications. The project inspector will be expected to be onsite at all times during construction activities. 1. Review plans, specifications, and all other contract- and construction-related documents. 2. Conduct a field investigation of the project area to become familiar with the existing facilities and the project environment. 3. Become familiar with traffic control plans, construction schedule, construction sequence, and permit requirements from other agencies. 4. Verify that the contractor conforms to the design survey line and grades. 5. Attend weekly progress meetings with the construction manager, contractor, and subcontractors. 6. Provide full-time and as-needed construction inspection, including night inspection, of the work to monitor materials and methods for compliance with plans, specifications, and contract documents; address and document non-conforming items as they are discovered. 7. Monitor compliance with Cal OSHA requirements and compliance with all local, state, and federal regulations. Although Willdan will monitor the activities, it is the contractor’s sole responsibility to provide workers with a safe working environment. 8. Monitor compliance with the Clean Air Act and the Clean Water Act (National Pollutant Discharge Elimination System – NPDES best management practices). Also, monitor the contractor’s compliance with approved SWPPP. 9. Meet with the contractor at the beginning of each day and review the proposed work plan, including specific details that may affect progress. 10. Conduct daily measurements of quantities of work with the contractor. 11. Review actual contractor performance throughout the day and discuss discrepancies with the contractor as they occur. 12. Assist in coordination of engineering support, surveying, specialty inspections, and fieldwork by utility companies. 13. Ensure compliance of Underground Service Alert notification/delineation. 14. Evaluate the contractor’s operation and production with respect to quality and progress and report to the City’s Project Manager and Construction Manager. 15. Photograph continuous property frontages along the street alignment once prior to construction and once immediately following construction. Maintain a photographic record of key elements of each major operation of work each day, with increased detail in situations of potential changes or claims. 16. Closely monitor testing results and require the contractor to provide corrective measures to achieve compliance. 17. Maintain copies of all permits needed to construct the project and enforce special requirements of each. 18. Prepare and maintain detailed daily diary inspector reports on construction progress. 19. Prepare clear and concise letters and memoranda, as needed. Establish a solid paper trail. 20. Maintain field file bound workbooks and Willdan electronic file during construction, including a cumulative record of quantities constructed, daily and weekly reports, working day reports, change order documentation, photographs, and other documentation. 21. Provide complete measurements and calculations documented to administer progress payments. 22. Maintain and submit a clean set of plans marked in red for as-built corrections on record drawings to be filed with the City. (City’s design consultant will transfer the contractor’s record drawings to original Mylar drawings). 23. Prepare a punch list at substantial completion and follow up with the contractor regarding progress of corrections. 24. Schedule a final inspection with the City and applicable agencies; prepare, distribute, and inspect corrections to the final punch list for completion; and recommend final acceptance. 25. Prepare documentation for final payment to the contractor. Scope of work to be provided by the City: Construction Management The City’s designated Construction Manager will manage and coordinate all aspects of the project including delivering the project on time and within budget. 1. Prepare construction file. A copy of Willdan’s LAPM file checklist can be provided upon request. 2. Ensure contractor distributes public construction notices and places construction and information signs. 3. Prepare special concerns to be presented at preconstruction conference. D.9.b Packet Pg. 351 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace 4. Conduct preconstruction meeting, prepare meeting minutes, and distribute to attendees. 5. Through Willdan’s system of project control, monitor activities related to project such that project is constructed in timely fashion pursuant to contract documents. 6. Log, track, and process submittals, RFIs, releases for construction (RFCs), contract change orders (CCOs), field directives, notices of proposed change (NOPCs), non-conformance reports (NCRs), construction schedule, and detailed traffic control plan. 7. Closely review schedule and advise contractor to take action on schedule slippage. 8. Document contractor’s 20-day notices, mechanic’s liens, and stop notices. 9. Assume responsibility for coordination with inspection staff and City staff. 10. Monitor and coordinate activities of design engineering support, surveying, testing, and work by utilities or other agencies. 11. Coordinate contractor’s field work with utility companies and other agencies. 12. Prepare weekly statement of working days and submit it to contractor and City. 13. Evaluate and respond to contractor’s requests for clarification of plans and specifications. 14. Ensure that all questions, conflicts, and issues are immediately brought to City’s attention and addressed with appropriate directives to contractor. 15. Perform quantity, time, and cost analyses required for negotiation of contract changes. 16. Negotiate and prepare change orders, including memorandum of explanation and cost estimates, to substantiate change order and send to City for review. 17. Monitor and perform immediate and thorough analysis of validity of all potential claims that arise. 18. Maintain all data for change orders and record information regarding time of dispute, time of notification by contractor, and action taken by inspector. 19. Monitor materials documentation and testing results and enforce corrections. 20. Review for approval contractor’s progress payment requests, including verifying LAPM compliance status and impact on payment; negotiate differences over amount with contractor; and process payments through City's Project Manager. 21. Monitor preparation of punch list at substantial completion and follow up. 22. Routinely review construction files to ensure conformance to City standards and good construction management practices. 23. Ensure City receives as-built set of drawings at completion. 24. Assist City with stop notices and release of retention. 25. Provide memorandum of clearance to issue notice of completion. 26. Finalize and deliver all construction files and supplies to City for their records. D.9.b Packet Pg. 352 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace PROJECT FEE Willdan proposes to perform the required inspection services on a time and materials (T&M) basis. Willdan’s proposal is based upon the City’s estimated 30 Working Day construction schedule. Our proposed not-to-exceed fee for the Scope of Work identified above is $36,240.00. Classification Public Works Inspector (Prevailing Wage) Total Hrs. Total $151/hr Preconstruction 0 0 Construction Management 0 0 Construction Inspection 240 240 $36,240.00 Total Not-to-Exceed Fee $36,240.00 1 Hours are estimated and will be dependent upon the Contractor’s final phasing and scheduling of the work. 2 Additional service needed beyond 30 working days will be provided on a time-and-material basis at Willdan's standard hourly rates. 3 Overtime inspection services are not included but will be billed at 1.5 times normal hourly rate if required and may require adjustment to the approved budget. Work performed by support staff with titles not explicitly listed herein will be charged in accordance with Willdan's City of Grand Terrace’s Project 2023 specified hourly rates. D.9.b Packet Pg. 353 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace Justin C. Parent Public Works Observer and Special Inspector Profile Summary Certifications: ▪ Master of Special Inspection, ICC #8095138 ▪ Radiation Safety and Nuke Gauge Training ▪ Structural Welding Special Inspector (S2), ICC #8095138 ▪ Structural Steel and Bolting Special Inspector (S1), ICC #8095138 ▪ Reinforced Concrete Special Inspector, ICC #8095138 ▪ Structural Masonry Special Inspector, ICC#8095138 ▪ ACI Concrete Field-Testing Technician Grade 1, #01150639 ▪ General Education Development #05202005ET0433 Experience: ▪ 15 Years Mr. Justin Parent has 15 years’ experience in public works construction, specializing in concrete, masonry, and structural inspection, monitoring for compliance to approved plans and specifications and maintaining documentation of construction and inspection activities. He has been a Special Inspector for 12 years and is certified in Structural Welding, Steel and Bolting, Reinforced Concrete, and Masonry. He has deep knowledge of construction techniques and understands blueprints, codes, and applicable manuals. Mr. Parent possesses great attention to detail, works well with contractors and cities, and has excellent technical and communication skills. Relevant Project Experience Rolling Hills Estates Pavement Rehabilitation Project, City of Rolling Hills Estates, California. Public Works Inspector. Willdan is providing Construction Management and Inspection services for this project, which consists of pavement rehabilitation on Dapplegray Lane and Palos Verdes Drive North to North End, Buckskin Lane and Dapplegray to North End, Sorrell Lane and Dapplegray to East End, Strawberry Lane and Palos Verdes Drive to North End, including removal and construct AC pavement, cold mill existing AC pavement, ARHM overlay, construct gutter, adjust manhole, adjust water valve to grade, adjust gas valve to grade. Pavement and Sidewalk Rehabilitation Various Streets CIP No 2023-1, City of Grand Terrace, California. Public Works Observer. Willdan is providing Construction Management and Construction Observation services for this pavement and sidewalk rehabilitation on La Cadena Drive from Litton Ave to Barton Rd, Michigan Ave from W. Main St to Commerce Way, Palm Ave from Barton RD to Honeyhill Dr, Van Buren St from Mt. Vernon to Observation Dr, Pico St from West End to East End, and Vivienda Ave/CT from Barton Rd to Cul-de-Sac. This project included removal of pavement and replacement, cold milling, ARHM, as well as manhole adjustments, water valve adjustments to grade, and signing and striping. Hemet Valley Bikeway Improvement Project, City of Hemet, California. Public Works Observer. Willdan is providing Construction Management and Construction Observation Services. The project requires a remotely located Construction Manager/Project Engineer and one full-time construction observer to perform observation services. All documentation is controlled utilizing VPM. The project constructs bicycle improvements along a four-mile route that extends from the northern City limit to a new transportation mobility station located along the NMTP Salt Creek Corridor. It provides a needed connection to activity centers within the City. Project elements include Class II and III facilities, bicycle detection, bike boxes, bike lockers, and bike repair stations. A transportation mobility station provides bicycle staging areas and linkages to regional trails. Other improvements include pavement rehabilitation, street widening, improved signage, lane striping, curb, gutter, sidewalk, and ADA ramps. Missing sidewalks, faded striping, D.9.b Packet Pg. 354 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace inadequate signage, and an overall lack of amenities currently discourage active transportation as a mobility option. CDBG Pavement Rehabilitation Project, City of Highland, California. Public Works Inspector. Willdan is providing construction management and inspection services for this project, which involves pavement rehabilitation including pavement grinding, cold central plant recycling, pavement removal and replacement, and asphalt rubber overlay. The work includes removal and replacement of damaged concrete sidewalk, curb and gutter, cross gutter, grinding raised sidewalk panels, slurry seal, crack repair, crack seal, adjustment of valve covers to final grade, protection of manholes, and installation of striping and markings. Sector E Pavement Rehabilitation Project, City of Highland, California. Public Works Inspector. This project involves pavement rehabilitation including pavement grinding, cold central plant recycling, pavement removal and replacement, and asphalt rubber overlay. The scope of work includes minor removal and replacement of damaged concrete sidewalk, curb and gutter, gross gutter, grinding raised sidewalk panels; slurry seal, crack repair, crack seal; adjusting valve covers to final grade, protection of manholes; and installation of striping and markings. BUSD, Mayfair High School STEAM Center, Lakewood, California. Special Materials Inspector. Mr. Parent served as Special Materials Inspector for this project, involving a new 77,566 square foot, 2-story STEAM Building with 42,284 square foot first floor and 35,282 square foot second floor Structural Steel Building. Kinesiology & Athletics Complex, Orange Coast College, Costa Mesa, California. Special Materials Inspector. Mr. Parent was the Special Materials Inspector for this project that was comprised of one 65-meter X 75’-1” competition long course swimming pool, one 25 yard X 75’-1” instructional / therapy pool, deck canopy shade structure, three buildings, one exterior storage enclosure, one exterior deck shower enclosure, three areas or parking alterations and site improvements including, one 16’ max high soldier pile retaining wall. Language Arts and Social Science Building, Orange Coast College, Costa Mesa, California. Special Materials Inspector. Mr. Parent acted as Special Materials Inspector during the completion of a $61.5 million Language Arts and Social Science Building at Orange Coast College (OCC). The three-story 107,760-square-foot facility houses classrooms, office spaces, conferences rooms and support spaces, including a computer lab for English as a Second Language, facilities for speech, debate and theater, and a journalism newsroom for the college’s student-run newspaper, “Coast Report.” Palm Springs Fire Station No. 4, Palm Springs, California. Special Materials Inspector. Mr. Parent served as Special Materials Inspector for this new multi-story wood framed building. After completion, Fire Station # 4 reopened to continue its legacy of almost five decades of service to the south end of Palm Springs. Soboba Casino, San Jacinto, California. Special Materials Inspector. Mr. Parent was Special Materials Inspector for this project, consisting of a new casino with a new structural steel six-story hotel. The new casino features up to 2,000 slot machines on an 83,500-square-foot gaming floor. The entire resort spans 480,000 square feet and includes a 200-room hotel. The new Soboba Resort features a banquet center for events and a variety of cafes and bars. Planetarium, Orange Coast College, Costa Mesa, California. Special Materials Inspector. Mr. Parent acted as Special Materials Inspector for this 12,124 SF planetarium building, intended to be an iconic statement that stimulates and educates individuals of all ages and backgrounds in the world of science. The workshop has a wide range of faculty from science, math, art, music, humanities, administrators, staff, and community representatives. It also houses a 130-seat immersive theatre/planetarium, a Foucault pendulum, exhibit areas and staff support. D.9.b Packet Pg. 355 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) City of Grand Terrace Heroes Hall, Orange County Fairgrounds, Costa Mesa, California. Special Materials Inspector. Mr. Parent served as Special Materials Inspector for the Heroes Hall project that consists of 3,600 square feet of exhibition space, as well as the Medal of Honor Courtyard and Walk of Honor which features 5,000 square feet of space and is conducive for events and larger gatherings. Newport Beach Main Water Line, Newport Beach, California. Special Materials Inspector. Mr. Parent was Special Materials Inspector for the Newport Beach Main Water Line project that involved miles of multiple 2’ water main to service fresh water to Newport Beach. Interdisciplinary Complex, Orange Coast College, Costa Mesa, California. Special Materials Inspector. Mr. Parent acted as Special Materials Inspector for this new multi-story structural steel and masonry buildings project, including site work and fire lanes. The 90,000-sq. ft. three-story, Phase I, Interdisciplinary Classroom (IDC) complex is located on the north edge of the college’s main quad. Laguna Niguel City Hall, Laguna Niguel, California. Special Materials Inspector. Mr. Parent served as Special Materials Inspector for this $24 million-dollar City project to construct the new 40,800-square-foot building at Alicia and Crown Valley parkways. Target, City of Brea, California. Special Materials Inspector. Mr. Parent was Special Materials Inspector for this project involving a one-story structural steel building built on a one-story parking garage, located at 415 South La Brea. The store is approximately 59,000 square feet and shares its new building with a Sprouts market and two restaurants. D.9.b Packet Pg. 356 At t a c h m e n t : W i l l d a n P r o p o s a l ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 357 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 358 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 359 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 360 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 361 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 362 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 363 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 364 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 365 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 366 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 367 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 368 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 369 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 370 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 371 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 372 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 373 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 374 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 375 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 376 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 377 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 378 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 379 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) D.9.c Packet Pg. 380 At t a c h m e n t : H a r d y & H a r p e r B i d ( S t r e e t R e h a b i l i t a t i o n P r o j e c t : F Y 2 0 2 3 - 2 4 C I P a n d C i t y Y a r d I m p r o v e m e n t s ) AGENDA REPORT MEETING DATE: February 13, 2024 TITLE: Concrete Rehabilitation Project - Sidewalk and Ramp Replacement PRESENTED BY: Kamran Dadbeh, Interim City Engineer RECOMMENDATION: 1. Find that the Concrete Rehabilitation Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) and authorize the preparation and filing of a Notice of Exemption as applicable. 2. Award the Concrete Rehabilitation Project to Hardy & Harper, Inc., on the Base Bid and approve the public works agreement with Hardy & Harper, Inc., in the amount of $84,315.00 plus a 10% contingency ($8,431.50) and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. 3. Award a contract to Willdan for Inspection Services in the amount of $18,120 plus a 10% contingency ($1,812) and authorize the City Manager to execute the agreement subject to City Attorney approval as to form. 2030 VISION STATEMENT: This staff report supports Goal #2 "Maintain Public Safety" by investing in critical infrastructure improvements. BACKGROUND: The City of Grand Terrace received American Rescue Plan Act (ARPA) funds to address deferred maintenance on both the State Highway System and the local street and road network. DISCUSSION: The Concrete Rehabilitation Project aims to replace sidewalks and ramps at various locations (see attached list) uplifted by trees, presenting unsafe walkways for pedestrians. A bid package, including construction plans, technical specifications, and bid documents, was prepared and advertised for construction bids. Bids were accepted D.10 Packet Pg. 381 until 10:00 a.m. on Monday, November 27th, 2023. The City Clerk received timely bids from two contractors: • Hardy & Harper Inc., Lake Forest: $84,315 • Onyx Paving Company, Inc., Anaheim: $111,000 Staff solicited proposals from Willdan for project inspection. Based on the foregoing, staff recommends the City Council concur with this recommendation. ENVIRONMENTAL IMPACT: Paving projects fall under the categorical exemption from the California Environmental Quality Act (CEQA) pursuant to CEQA Regulations Section 15301(c) due to their relation to the repair and maintenance of existing streets. FISCAL IMPACT: This project will be funded from account No. 94-175-257-000-000 if City Council approves recommendations 2 and 3. ATTACHMENTS: • Willdan Proposal (PDF) • Hardy & Harper Bid (PDF) APPROVALS: Kamran Dadbeh Completed 01/29/2024 10:33 AM Shanita Tillman Completed 02/06/2024 12:25 PM Finance Completed 02/06/2024 4:03 PM City Manager Completed 02/07/2024 2:33 PM City Council Pending 02/13/2024 6:00 PM D.10 Packet Pg. 382 December 13, 2023 Kamran Dadbeh, City Engineer City of Grand Terrace, Public Works Department 22795 Barton Road Grand Terrace, CA 92313 Subject: Proposal for Inspection Services for Concrete Rehabilitation for Various Locations Dear Mr. Dadbeh: Willdan Engineering is pleased to present the City of Grand Terrace with this proposal to assist in managing and inspecting the City of Grand Terrace’s Concrete Rehabilitation at various locations. Willdan Engineering has been providing construction management and inspection services to California cities and counties for 59 years, including Grand Terrace, Highland, Bell, Lakewood, Downey, and Cerritos. We are well suited to partner with the City of Grand Terrace to achieve a fast-track approach for planned infrastructure projects. Willdan will provide a staffing professional who is committed to providing the City with top-quality service. Serving public agencies is the cornerstone of Willdan’s business. Willdan's proposed staff members are experienced in working together as an integral part of municipal agency improvement projects and can provide exemplary staff for the City’s role requests. The following strengths are what set us apart from the competition and make us the best-qualified team for this assignment: Highly Skilled and Inspector. Our proposed Public Works Inspector, Joseph Putrino, has 35 years of experience in Public Works, with strong leadership qualities and the ability to manage projects successfully. He possesses exceptional decision-making capabilities and is meticulous in ensuring project specifications are compliant with contracts and requirements. Joseph Putrino offers extensive concrete repair experience to the City of Grand Terrace. Unmatched Grading and Pavement Improvement Project Experience. Willdan has provided construction management and/or inspection on an extensive amount of pavement related projects for over 58 years, including overlays, bike lanes, rehabilitations, slurry seals, and street widening. Our project team has experience working together on hundreds of public works projects throughout the region. City of Grand Terrace Experience. Willdan has provided construction management and inspection services to several of the City of Grand Terrace’s projects. These include 23400 Westwood Street Improvements, 12040 La Cadena Drive Improvements, Civil Work Tract 18071, San Bernardino Indian Health Center, 22200 Barton Road, and the Sidewalk 2017 improvements. Our staff has hands‐on working knowledge and direct experience implementing City of Grand Terrace standards. Willdan looks forward to the opportunity to assist the City of Grand Terrace on this very important project. Should you have any questions regarding our proposal, please do not hesitate to contact me at (310) 502-6335. Respectfully submitted, Approval and Authorization to Proceed By: WILLDAN ENGINEERING CITY OF GRAND TERRACE Chris Baca, RCI, CESSWI Director of Construction Management Signature and Inspection Services Date 910005\06-140\P23-388_25944 D.10.a Packet Pg. 383 At t a c h m e n t : W i l l d a n P r o p o s a l ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) City of Grand Terrace Page | 2 WILLDAN CONSTRUCTION SERVICES EXPERTISE Willdan provides expertise in all areas of project and construction management, contract administration, construction inspection and observation, grant funding administration and compliance, labor compliance, and community relations. Willdan's corporate philosophy emphasizes strong leadership, cost effectiveness, timely performance, and consistent reciprocal communication with clients and internal and external resources. Our resident engineers, construction managers, and construction inspectors offer reliable service, quality workmanship, use of good judgment, fair and equitable treatment, and adherence to our corporate integrity. These experienced team members identify and correct discrepancies, ambiguities, omissions, or conflicts in plans, specifications, and bid schedules that might generate misinterpretation and/or lead to agency and contractor disagreements. Our professionals are adept at anticipating issues before they arise through continual review of project plans, specifications, contractors’ schedules, and contract documents. Potential problems are brought to the attention of the City's Project Manager and/or the contractor, along with constructive recommendations for solutions, so that costly delays and negative impacts to the public and the project are mitigated. QUALITY CONTROL/QUALITY ASSURANCE Willdan will perform Quality Assurance and Quality Control of this project through a diligent review of all work and documentation. Quality Assurance and Quality Control will begin with the pre-construction meeting, at which time the scope of the project and control requirements will be reviewed with the General Contractor. Once construction begins, the next step in the Quality Control process will be the verification of materials and components to be installed. Once the material and components arrive onsite, Willdan Inspectors will spot- check these materials and components to verify they match the construction documents. The Inspectors will maintain a detailed record of samples, tests, material releases, and certificate of compliance for the project. Willdan Inspectors closely monitor projects to ensure compliance with all contract requirements. Most of our inspectors have American Construction Inspectors Association (ACIA) certification and attend regular seminars, college courses, and in-house presentations to keep abreast of current construction technologies. In addition to ACIA, many of our staff are certified QSPs and QSDs and are provided with the latest information concerning the implementation of the State Water Board permit. Willdan’s inspectors have knowledge of basic soil dynamics and are highly cognizant of the crucial role of soils compaction in construction. They are also familiar with the need for general material testing for asphalt and concrete. The basic goal of the quality assurance plan is to provide quality work delivered on time and within budget. We do this by adhering to the following steps. Willdan adopted Caltrans' Construction Manual (LAPM) as our in-house quality standard and have incorporated Caltrans' prescribed standards and procedures into our everyday inspection routine. This ensures we meet federal and state guidelines from the start. Contractor Compliance Our inspection staff has extensive experience with a myriad of public works projects and our staff has a clear understanding of the issues surrounding inspection of the work. For example, when constructing trench backfill, our inspector will ensure adequate compaction has been achieved. Inspectors will monitor the work for conformance with the plans and specifications. Willdan’s inspectors will monitor the contractor’s operations for conformance with City compaction standards by working with the City’s approved material testing lab and will not accept any trench backfill or allow any pavement repair until proper compaction is verified by the lab. Delivery tickets will be checked to ensure materials match the approved submittals. Address contractor coordination issues Identify key dates to maintain the project schedule Investigate constructability Discuss project sequencing Track progress D.10.a Packet Pg. 384 At t a c h m e n t : W i l l d a n P r o p o s a l ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) City of Grand Terrace Page | 3 SCOPE OF WORK Construction Inspection The Construction Manager and Inspector will observe work performed by the contractor for general conformance with the plans and specifications. The project inspector will be expected to be onsite at all times during construction activities. 1. Review plans, specifications, and all other contract- and construction-related documents. 2. Conduct a field investigation of the project area to become familiar with the existing facilities and the project environment. 3. Become familiar with traffic control plans, construction schedule, construction sequence, and permit requirements from other agencies. 4. Verify that the contractor conforms to the design survey line and grades. 5. Attend weekly progress meetings with the construction manager, contractor, and subcontractors. 6. Assist with review of up to (8) shop drawings/submittals, including resubmittals. 7. Provide full-time and as-needed construction inspection, including night inspection, of the work to monitor materials and methods for compliance with plans, specifications, and contract documents; address and document non-conforming items as they are discovered. 8. Monitor compliance with Cal OSHA requirements and compliance with all local, state, and federal regulations. Although Willdan will monitor the activities, it is the contractor’s sole responsibility to provide workers with a safe working environment. 9. Provide City’s labor compliance manager with federally-compliant labor and equipment reports. 10. Monitor compliance with the Clean Air Act and the Clean Water Act (National Pollutant Discharge Elimination System – NPDES best management practices). Also, monitor the contractor’s compliance with approved SWPPP. 11. Meet with the contractor at the beginning of each day and review the proposed work plan, including specific details that may affect progress. 12. Conduct daily measurements of quantities of work with the contractor. 13. Review actual contractor performance throughout the day and discuss discrepancies with the contractor as they occur. 14. Assist in coordination of engineering support, surveying, specialty inspections, and fieldwork by utility companies. 15. Ensure compliance of Underground Service Alert notification/delineation. 16. Evaluate the contractor’s operation and production with respect to quality and progress and report to the City’s Project Manager and Construction Manager. 17. Photograph continuous property frontages along the street alignment once prior to construction and once immediately following construction. Maintain a photographic record of key elements of each major operation of work each day, with increased detail in situations of potential changes or claims. 18. Closely monitor testing results and require the contractor to provide corrective measures to achieve compliance. 19. Maintain copies of all permits needed to construct the project and enforce special requirements of each. 20. Prepare and maintain detailed daily diary inspector reports on construction progress. 21. Prepare clear and concise letters and memoranda, as needed. Establish a solid paper trail. 22. Maintain field file bound workbooks and Willdan electronic file during construction, including a cumulative record of quantities constructed, daily and weekly reports, working day reports, change order documentation, photographs, and other documentation. 23. Analyze delays and review claims on a timely basis and make recommendations to the construction manager. 24. Assist with the review and evaluation of up to (3) change orders. 25. Provide complete measurements and calculations documented to administer progress payments. 26. Maintain and submit a clean set of plans marked in red for as-built corrections on record drawings to be filed with the City. (City’s design consultant will transfer the contractor’s record drawings to original Mylar drawings). 27. Prepare a punch list at substantial completion and follow up with the contractor regarding progress of corrections. 28. Schedule a final inspection with the City and applicable agencies; prepare, distribute, and inspect corrections to the final punch list for completion; and recommend final acceptance. 29. Prepare documentation for final payment to the contractor. 30. Upon project completion, provide the finished set of project workbooks to the City. D.10.a Packet Pg. 385 At t a c h m e n t : W i l l d a n P r o p o s a l ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) City of Grand Terrace Page | 4 PROJECT FEE Willdan proposes to perform the required inspection services on a time and materials (T&M) basis. Willdan’s proposal is based upon the City’s estimated 30 Working Hours construction schedule. Our proposed not-to-exceed fee provides part-time public works inspection and includes the work items listed in our proposed scope work. Classification Rate Hrs. Total Construction Manager and Public Works Inspector (Prevailing Wage Senior Public Works Inspector) $151 120 Hrs. $18,120.00 Total Not-to-Exceed Fee $18,120.00 1 Hours are estimated and will be depended upon the Contractor’s final phasing and scheduling of the work. 2 Additional service needed beyond 30 working days will be provided on a time-and-material basis at Willdan's standard hourly rates. 3 Overtime inspection services are not included but will be billed at 1.5 times normal hourly rate if required and may require adjustment to the approved budget. Work performed by support staff with titles not explicitly listed herein will be charged in accordance with Willdan's Grand Terrace Project specified hourly rates. D.10.a Packet Pg. 386 At t a c h m e n t : W i l l d a n P r o p o s a l ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) City of Grand Terrace Page | 5 Joseph Putrino Construction Manager/Senior Public Works Observer Profile Summary Education: ▪ College of the Desert, Palm Desert ▪ Uniform Building Code, Fire Code, and ADA Codes, Bergen Community College ▪ Construction Management, Architectural Drafting, and Blueprint Reading Courses Registration: ▪ Certified Building Inspector, International Code Council ▪ Certified Plumbing Inspector, International Code Council ▪ Certified Mechanical Inspector, International Code Council ▪ Contractor License Class A and B, No. 636747 Experience: ▪ 35 Years Mr. Joseph Putrino is experienced in all aspects of public works construction projects. He possesses extensive experience with estimating project costs, progress schedules, bid preparation, and complete project administration. Relevant Project Experience 22051 Grand Terrace Road, City of Grand Terrace, California. Public Works Inspector. The project includes inspection for the public improvements associated with the construction of the new building at 22051 Grand Terrace Road. 22200 Barton Road, City of Grand Terrace, California. Public Works Inspector. The project includes public works inspection for the public improvements associated with the construction of the new 5,342 SF multi-tenant building located at 22200 Barton Road. 23400 Westwood Rough Grading Project, City of Grand Terrace, California. Public Works Inspector. The project included construction of new on and off-site improvements at the remodeled San Bernardino Indian Health Center. The project involved the installation of new curb/gutter, rough grading and finish grading of new parking lot, drainage structures, asphalt repair, and other appurtenant work. Slurry Seal, De Luz Community Service District, California. Construction Manager. Willdan provided construction management, inspection, and labor compliance for the De Luz Community Service District’s Slurry Seal project. 22172 Barton Road/Taco Bell Rough Grading Project, City of Grand Terrace, California. Public Works Inspector. The project included construction of new on and off-site improvements at the remodeled Taco Bell at 22172 Barton Rd. The project involved the installation of new curb/gutter, rough grading and finish grading of new parking lot, drainage structures, asphalt repair, and other appurtenant work. Police Substation CP 15-07, City of Palm Springs, California. Public Works Inspector. The project includes ADA upgrades to the police station restrooms, water features, and landscape improvements. Public Library Improvements, City of Yorba Linda, California. Public Works Inspector. The project included engineering design services to prepare construction plans to demolish the existing Public Library for the City of Yorba Linda at 18181 Imperial Highway. The scope of work included hazardous material testing, utility coordination, and contract document preparation. Fire Station No. 4 Remodel and Expansion City Project 15-25, City of Palm Springs, California. Senior Public Works Observer. The project involved remodeling and expanding the fire station approximately 2,820 square feet to address sleeping quarter separation, decontamination areas, and general ADA compliance issues. The project construction encompassed demolition, asbestos remediation, structural foundations, structural retrofit and framing, utility equipment yard enclosure, electrical service transformer, wet and dry utilities, fire line, sprinkler and alarm systems, keyless entry system, vehicle emission exhaust system, sand/oil separator, site furnishings and furniture, lighting fixtures, doors and windows, miscellaneous concrete work, ADA-compliant ramps, site drainage, landscaping, signing and striping, emergency alerting system, back-up generator, and fuel tank. D.10.a Packet Pg. 387 At t a c h m e n t : W i l l d a n P r o p o s a l ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 388 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 389 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 390 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 391 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 392 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 393 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 394 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 395 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 396 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 397 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 398 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 399 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 400 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 401 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 402 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 403 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 404 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 405 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 406 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 407 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 408 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 409 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 410 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 411 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) D.10.b Packet Pg. 412 At t a c h m e n t : H a r d y & H a r p e r B i d ( C o n c r e t e R e h a b i l i t a t i o n P r o j e c t - S i d e w a l k a n d R a m p R e p l a c e m e n t ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Introduction and First Reading by Title Only, with Further Reading Waived an Ordinance Amending Title 12.08 Street Excavation PRESENTED BY: Shanita Tillman, Senior Management Analyst RECOMMENDATION: Introduction and First Reading by Title Only, with Further Reading Waived an Ordinance Amending Title 12.08 Street Excavation BACKGROUND: The City of Grand Terrace introduced Ordinance No. 64, incorporating Chapter 12.08 into the Grand Terrace Municipal Code (GTMC) to regulate excavations and trenching in public rights of way. Amendments followed in 1990 (Ordinance No. 125), addressing cash deposits and public service companies, in 2005 (Ordinance No. 218), imposing fines for non-compliance, and in 2020 (Ordinance No. 330), granting the City Council authority over fees and deposits. On January 9, 2024, staff proposed the adoption of Chapter 12.08 to the Council. Post-meeting, the Council suggested adding a jack and boring requirement along Barton Rd, Mount Vernon Ave, De Berry St, Van Buren St, Pico St, Main Street, and Observation St. DISCUSSION: The City is actively engaged in the revision process with the primary objective of simplifying content, updating language in alignment with prevailing standards, introducing a new street pavement moratorium, and eliminating "Attachment A: Specifications for Construction Within the Right of Way." Going forward, adherence to construction specifications will be under the direct guidance of the City Engineer, eliminating redundancy and ensuring compliance with the latest engineering standards and guidelines. The proposed amendments include the incorporation of Section 12.08.330, introducing a new pavement moratorium. This section aims to address pavement degradation, uphold street structural integrity, provide a smooth surface for all transportation modes, and minimize negative visual impacts. Key provisions are highlighted below: Limitations on Excavation for Recently Constructed Streets: Post-Construction Moratorium: For projects completed in FY 2021-2022 and onwards, pavement surface excavation is restricted for five (5) years from completion or the E.11 Packet Pg. 413 recordation of a notice of completion. On slurry-sealed streets, this moratorium extends to three (3) years from completion unless the applicant agrees to cover the cost of resurfacing the street with a minimum two-inch-thick asphaltic concrete cap. This resurfacing must extend 50 feet on either side of the proposed excavation longitudinally from the centerline of the street. FISCAL IMPACT: A fiscal impact will not occur as a result of the ordinance adoption. ATTACHMENTS: • Street Excavations Ordinance (DOCX) • Chapter_12.08___Street Excavations (DOCX) APPROVALS: Shanita Tillman Completed 12/14/2023 12:37 PM Finance Completed 01/04/2024 10:10 AM City Manager Completed 01/05/2024 1:40 PM City Council Completed 01/09/2024 6:00 PM City Council Pending 02/13/2024 6:00 PM E.11 Packet Pg. 414 01247.0001/926552.5 1 ORDINANCE NO. ___ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, STATE OF CALIFORNIA, AMENDING CHAPTER 12.08 (“STREET EXCAVATIONS”) OF TITLE 12 (“STREETS, SIDEWALKS AND PUBLIC PLACES”) OF THE GRAND TERRACE MUNICIPAL CODE IN ITS ENTIRETY BY ESTABLISHING EXCAVATION AND TRENCHING STANDARDS WHEREAS, in 1982 the City of Grand Terrace (“City”) adopted Ordinance No. 64, adding Chapter 12.08 relating to Excavations in City Streets and Public Places (“Chapter 12.08”) to the Grand Terrace Municipal Code (“GTMC”), in order to establish rules and regulations to govern excavations and trenching within the public right of way by project applicants, residents, and utility companies; and WHEREAS, in 1990 the City adopted Ordinance No. 125 amending Chapter 12.08 of the GTMC by repealing section 12.08.360, and adding sections 12.08.080 entitled Cash Deposits and 12.08.360 entitled Public Service Companies; and WHEREAS, in 2005 the City adopted Ordinance No. 218 adding section 12.08.410 to Chapter 12.08 establishing fines of $1,000.00 for failure to obtain a street cut permit and failure to comply with specifications established in the chapter; and WHEREAS, in 2020 the City adopted Ordinance No. 330 amending sections 12.08.080 and 12.08.260 in Chapter 12.08 to authorize the City Council to adopt certain fees and deposits by resolution; and WHEREAS, the City desires to amend Chapter 12.08 (Street Excavations) of the GTMC to streamline its content, update the language to align with prevailing standards, include a directional boring requirement, as practical, along main thoroughfares within the City such as Barton Rd, Mount Vernon Ave, De Berry St, Van Buren St, Pico St, Main St, and Observation St, implement a new, street pavement moratorium, and remove “Attachment A: Specifications for Construction Within the Right of Way.” Henceforth, all pertinent construction specifications shall be diligently adhered to as promulgated and directed by the City Engineer. This obviates the necessity for redundant documentation and ensures conformity with the most up-to-date engineering standards and guidelines. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Recitals. The above recitals are true and correct and incorporated herein by reference. SECTION 2. CEQA. The City Council finds that the actions contemplated by this Ordinance are exempt from the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, E.11.a Packet Pg. 415 At t a c h m e n t : S t r e e t E x c a v a t i o n s O r d i n a n c e ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/926552.5 2 Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. SECTION 3. Chapter 12.08 (“Street Excavations”) of Title 12 (“Streets, Sidewalks and Public Places”) of the Grand Terrace Municipal Code is hereby amended and shall be replaced and superseded in its entirety, by the revised Chapter 12.08 (“Street Excavations”) of Title 12 (“Streets, Sidewalks and Public Places”) as set forth in Exhibit “A”, attached hereto and incorporated herein by this reference as though set forth in full. SECTION 4. City of Grand Terrace seeks to ameliorate pavement degradation, maintain structural integrity of thoroughfares, maintain and preserve a smooth surface for all modes of transportation, and reduce negative visual impacts. By revising Chapter 12.08 (Street Excavations), property owners, contractors or utilities companies with proposed projects that require excavation of roadways can more effectively plan for excavation activities while preserving the integrity of public right of ways. SECTION 5. The inclusion of a comprehensive street pavement moratorium for those public right of ways that have recently been constructed or rehabilitated serves as an instrumental mechanism in preserving and fortifying the structural integrity of the City's thoroughfares. This measure ensures that the newly rehabilitated streets remain undisturbed during a critical period, thereby optimizing the efficacy of the rehabilitation and safeguarding the municipality's infrastructure investments. SECTION 6. Severability. If any provision(s) of this Ordinance or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect any other provision or application, and to this end the provisions of this ordinance are declared to be severable. The City Council hereby declares that they would have adopted this ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions thereof be declared invalid or unconstitutional. SECTION 7. Posting. The City Clerk shall certify to the passage and adoption of this Ordinance by the City Council and shall cause this ordinance to be published or posted in accordance with Government Code Section 36933 as required by law. SECTION 8. This Ordinance shall take effect and be in full force and effect from and after thirty (30) calendar days after its final passage and adoption. PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 13th day of February, 2024. _____________________________ Bill Hussey Mayor E.11.a Packet Pg. 416 At t a c h m e n t : S t r e e t E x c a v a t i o n s O r d i n a n c e ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/926552.5 3 ATTEST: ____________________________ Debra Thomas City Clerk APPROVED AS TO FORM: ____________________________ Adrian R. Guerra City Attorney E.11.a Packet Pg. 417 At t a c h m e n t : S t r e e t E x c a v a t i o n s O r d i n a n c e ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) Title 12 - STREETS, SIDEWALKS AND PUBLIC PLACES Chapter 12.08 STREET EXCAVATIONS 01247.0001/960130.2 Grand Terrace, California, Municipal Code Page 1 of 12 Chapter 12.08 STREET EXCAVATIONS E.11.b Packet Pg. 418 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Page 2 of 12 12.08.010 Title of ordinance. The ordinance codified in this chapter shall be known and may be cited as the "Street Excavation Ordinance." 12.08.020 Definitions. For the purposes of this Chapter, the following terms shall have the meaning designated unless it is clear from the context that a different meaning is intended: A. "Applicant" means any person making written application to the City Engineer for an encroachment permit under this Chapter. B. “Directional Boring” also known as horizontal directional drilling (HDD), means a trenchless method of installing underground pipes, conduits, or cables in a curved or straight line with minimal surface disruption. This technique involves drilling a pilot hole horizontally and then enlarging it to accommodate the desired utility. C. "Excavation" means any opening in the surface of a public place made in any manner whatsoever except an opening into a lawful structure below the surface of a public place, the top of which is flush with the adjoining surface and so constructed as to permit frequent openings without injury or damage to the public place. D. "Encroachment" means constructing or placing temporary or permanent structures, improvements, facilities or materials in, on, over, or under any public right-of-way or using any right-of-way so as to prevent, obstruct, or interfere with the normal use of that way, including but not limited to the performance of any of the following acts: i. Excavating or disturbing the public right-of-way; ii. Erecting or maintaining any post, sign, pole, fence, guard rail, wall, pipe, conduit, cable, wire, communication service equipment, or other facility or structure on, over, or under a public right-of-way; iii. Planting any tree, shrub, grass, or other growing thing within the public right-of-way; iv. Placing or leaving on the public right-of-way any rubbish, brush, earth, or material; v. Constructing, placing, or maintaining on, over, under, or within a public right-of-way any pathway, sidewalk, driveway, or other surfacing; any culvert or other surface drainage or subsurface drainage facility; or any pipe, conduit, wire, communication service equipment or facility, or cable; and vi. Constructing, placing, planting, or maintaining any structure, embankment, excavation, tree, or other object adjacent to the public right-of-way which causes or may cause an encroachment. E. "Facility" means pipe, pipeline, tube, main, service, trap, vent, vault, manhole, meter, gauge, regulator, valve, conduit, wire, tower, pole, catch basin, pole line, anchor, cable, junction box, transformer or any other material, structure or object of any kind or character, whether enumerated in this Chapter or not, which is or may be lawfully constructed, left, placed or maintained in, upon, along, across, under or over a public place. F. "Permit holder" means any person who has been granted and has in full force and effect an encroachment permit issued under this Chapter. E.11.b Packet Pg. 419 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Page 3 of 12 G. "Person" means any person, firm, partnership, association, corporation, company, political body or organization of any kind. H. "Public place" means any public street, way, place, alley, sidewalk, park, square, or any other public property owned or controlled by any governmental agency in a governmental capacity. I. "Public utility" means any electrical corporation, gas corporation, heat corporation, water corporation, telephone corporation, pipeline corporation, sewer corporation, telegraph corporation, where the service is performed for, or the commodity delivered to, the public or any portion thereof. J. "Slurry seal" means a mixture of polymer modified asphalt emulsion, mineral aggregate, mineral filler, water, and other additives, properly proportioned, mixed, and spread in accordance with the City of Grand Terrace and Caltrans standard plans specifications, and details, whichever is more stringent or as directed by the City Engineer and usually less than one-half inch in thickness. K. "Street" means any street, highway, sidewalk, alley, avenue or other public way or public ground in the City. L. "Street overlay" means one or more courses of asphalt construction on an existing pavement; usually greater than one-half inch in thickness; generally includes an asphalt leveling course to correct the contour of the old pavement. M. "Substructure" means any pipe, conduit, duct, tunnel, manhole, vault, buried cable or wire or any other facility located below the surface of any public place. 12.08.030 Permit required. No person shall dig, excavate, tunnel, undermine, or in any manner break up any street or public place, deposit, place ,or leave upon any public place any earth or other excavated material obstructing or tending to interfere with the free use of the public place, or fill any excavation in any public place, unless such person has first obtained an encroachment permit , as defined in section 12.10.020. The City Engineer shall have authority under this Chapter to issue encroachment permits as provided in Chapter 12.10. 12.08.040 Application. No encroachment permit shall be issued unless a written application for the issuance of an encroachment permit is submitted to the City Engineer. The written application shall follow guidelines set forth in section 12.10.040, as amended from time to time. 12.08.050 Fee. A permit fee shall be charged by the City Engineer for the issuance of an encroachment permit. Such fee shall be in accordance with the fee schedule established by the City Council and adopted by resolution. 12.08.060 Inspection costs—Deposits. All excavation shall be subject to inspection by the City Engineer. Actual costs of such inspections, computed at current permit and inspection rates, shall be paid by the permit holder Before an encroachment permit is issued, the permit holder shall deposit with the City an amount estimated to cover costs of the inspection, plan review, and repair and/or replacement costs, and shall include any third-party costs, computed based on the rates stated in the resolution setting a fee schedule. The remaining balance of the deposit, if any, shall be returned to the permit holder within one year of project completion. Return of the deposit shall be conditioned upon the permit holder's compliance with this Chapter. Public service companies shall be billed for inspection costs on a monthly basis. E.11.b Packet Pg. 420 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Created: 2023-06-14 12:18:08 [EST] (Supp. No. 13) Page 4 of 12 12.08.070 Signs. All places of business and residences abutting the public right of way that are within the limits of any construction zone shall be notified, by the permit holder, by mail or door hangers at least five (5) days prior to commencement of work. This written notification shall be approved in advance by the City Engineer and explain the sequence of work and indicate any restrictions of access. . 12.08.080 Emergency Repair deposits. Before an encroachment permit as provided in this Chapter is issued, the applicant shall deposit with the City Finance Department a deposit in the amount to be determined by the City Engineer to secure proper repairs of the street cut, computed based on the rates stated in the resolution setting a fee schedule, as applicable. A. An application for an encroachment permit to perform excavation work under this Chapter shall be accompanied by a deposit, payable to the City, in accordance with a schedule of fees set by resolution. No deposit shall be less than the amount as set by resolution of the City Council. Any person intending to make openings, cuts or excavations in streets or public places may make and maintain with the City Finance Director a general annual deposit in the sum of not less than an amount set by resolution of the City Council. Such deposit shall be refunded by the City to the permit holder upon the expiration of such 24-month period and upon request of the permit holder, provided, that the City may use any or all of any such deposit to pay the cost of any work the City performs to restore or maintain the street or public place as provided in this Chapter in the event the permit holder fails to perform such work, in which event the amount refunded to the permit holder shall be reduced by the amount thus expended by the City. The decisions of the City Engineer as to the cost of the work done or repairs made by him under the provisions of this Chapter shall be final and conclusive as to cost. An applicant may submit a bond or letter of credit in a form and amount acceptable to the City Engineer, which shall remain in effect for not less than 24 months, in lieu of a deposit under this provision B. Return of the deposit shall be conditioned upon the permit holder's compliance with this Chapter, and further conditioned that the permit holder must fill, restore, place in good and safe condition, and as near to its original condition the public place or street, and to the satisfaction of the City Engineer for the period of 24 months after the work has been accepted. Any settlement of the surface of the public place or street within that 24 month period shall be deemed conclusive evidence of defective backfilling by the permit holder. Nothing contained in this Subsection shall be construed to require the permit holder to maintain any repairs to pavement made by the City if such repairs should prove defective. C. Any owner of real property repairing or engaging another to repair privately owned property that is not a part of the public place or street shall not be required to give such deposit, but shall comply with all other provisions of this Chapter. 12.08.090 Working Hours. Working hours 7:00 A.M. to 8:00 P.M. Monday - Saturday, and at no time on Sunday or national holidays as per section 8.108.040.C. 12.08.100 Traffic Control. The permit holder shall submit a traffic control plan subject to approval by the City Engineer and take appropriate measures to assure that, during the performance of the excavation work, traffic conditions as nearly normal as practicable are maintained at all times, so as to cause as little inconvenience as possible to the occupants of the abutting property and to the general public. The traffic control plan shall ensure that the schedule and conduct of work avoids unnecessary inconvenience to the public and abutting property owners, E.11.b Packet Pg. 421 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Page 5 of 12 avoids undue delay in construction activities to reduce the public's exposure to construction dust and debris. All street closures shall be approved in advance by the City Engineer. The traffic control plan shall include a detour plan, as applicable. The City Engineer may in his discretion permit the closing of streets to all traffic for a period recommended by him in order for the permit holder to complete the excavation work. The permit holder shall comply with standards set forth by the latest edition of the State of California’s Manual on Uniform Traffic Controls Devices for route and traffic control, including its own vehicles, as directed by the City Engineer. 12.08.110 Traffic and access. Maintain safe and adequate pedestrian and vehicular access to driveways, houses, fire hydrants, buildings, fire and police stations, hospitals, and establishments of similar nature. When an abutting property owner's access across the right-of-way line is to be eliminated or replaced under the Contract, the existing access must not be closed until the replacement access facility is usable. Construct temporary approaches to a crossing and an intersecting highway. The permit holder shall provide safe and adequate pedestrian zones and public transportation stops. Pedestrian crossings shall be provided at intervals not exceeding 200 feet, which shall be maintained unless otherwise approved by the City Engineer. The permit holder shall provide, at the end of the day, vehicular access to residential driveways except when necessary construction precludes such access for reasonable periods of time. If backfill has been completed to such extent that safe access may be provided, and the street is opened to local traffic, the permit holder shall immediately clear the street and driveways and provide and maintain access. The permit holder shall cooperate with the various parties involved in the delivery of mail and the collection and removal of trash and garbage to maintain existing schedules for these services. Unless otherwise authorized, work shall be performed in only one-half the roadway at one time. One-half shall be kept open and unobstructed until the opposite side is ready for use. If one-half a street only is being improved, the other half shall be conditioned and maintained as a detour. The permit holder shall absorb in its bid all costs for the above requirements. 12.08.120 Vital equipment access. The excavation work shall be performed and conducted so as not to interfere with access to fire stations, fire hydrants, fire escapes, water gates, underground vaults, water valves, and all other vital equipment as designated by the City Engineer. Materials or obstructions shall not be placed within 15 feet of fire hydrants. Passageways leading to fire escapes or firefighting equipment shall be kept free of piles of material or other obstructions. 12.08.130 Street Closures, detours, and barricades. The permit holder shall erect and maintain suitable barriers, as approved by the City Engineer, to confine earth from trenches or other excavations to encroach upon streets highways as little as possible. The permit holder shall comply with all standards set forth by the State of California’s Manual on Uniform Traffic Controls Devices, latest edition. The permit holder shall provide barriers, guards, lights, signs, temporary bridges, flag persons and watchpersons, advising the public of detours and construction hazards. The permit holder shall also be responsible for compliance with additional public safety requirements, which may arise during construction. The permit holder shall furnish and install, and upon completion of the work, promptly remove, all signs and warning devices. As part of the initial submittal review process, the permit holder must, in advance of closing, partially closing, or reopening any street, alley, or other public thoroughfare, notify the Police, Fire, School Districts, Department of Transportation, Traffic and Engineering Departments of jurisdictional agencies involved, and comply with their requirements. The City Engineer must first approve all schedule deviations in writing E.11.b Packet Pg. 422 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Created: 2023-06-14 12:18:08 [EST] (Supp. No. 13) Page 6 of 12 12.08.140 Existing utilities. The permit holder shall not interfere with any existing utilities without the written consent of the City Engineer and the utility company or person owning the utility. The permit holder shall notify the various gas, electric, telephone, water, or other public utility companies, 48 hours in advance of the intention to begin work so that they may take any necessary protective measures around their facilities. If removal of an existing utility is necessary, this shall be done by its owner. No utility owned by the City shall be moved to accommodate the permit holder unless the cost of such work is borne by the permit holder. The cost of moving privately owned utilities shall be similarly borne by the permit holder unless other arrangements are made with the owner of the utility. The permit holder shall support and protect (by timbers or otherwise) substructure apparatus which may be in any way affected by the excavation work, and do everything necessary to support, sustain and protect them under, over, along or across the work. The permit holder shall be responsible for any damage done to any public or private property by reason of the breaking of any utilities, water pipes, sewer, gas pipe, electric conduit, or other substructure. In case any of the substructure apparatus is damaged, they shall be repaired by the agency or person owning them, and the expense of such repairs shall be charged to the permit holder, and his or its bond shall be liable therefor. The permit holder shall inform itself as to the existence, and location of all substructures and protect the same against damage. 12.08.150 Abandonment of substructures. Whenever the use of a substructure is abandoned, except the abandonment of a service line designed to serve a single property owner, the person owning, using, controlling or having an interest therein shall, within 30 days after such abandonment, file with the City Engineer a statement in writing giving in detail the location of the substructure so abandoned. When the City determines that the abandoned substructure is an obstruction or is otherwise detrimental to a governmental function, and no other alternatives are available, the owner shall remove such abandoned substructure or pay the cost of its removal during the course of excavation for construction of the facility by the City or any other public body. 12.08.160 Sidewalk excavations. Excavations made in or under a sidewalk shall be subject to compliance with standards as established by the City Engineer. 12.08.150 Protection of the public. The permit holder shall place and maintain barriers and warning devices and take other steps required for the protection of the public, as required and/or established by the City Engineer. Permit holder shall not permit or maintain any unguarded machinery, equipment, or other device having the characteristics of an attractive nuisance likely to attract children and become hazardous to their safety or health. 12.08.170 Equipment and materials in public streets. Equipment must be kept in a good state of repair and maintained in such state during the progress of the work. No worn or obsolete equipment shall be used, and in no case shall the maker’s rating of capacity for any equipment be exceeded. Construction materials may not be stored on public streets, roads, or highways. All materials or equipment not installed or used in the construction shall be stored elsewhere by the permit holder at its expense unless authorized by the City Engineer. Construction equipment shall not be stored at the worksite before its actual use on the work nor after it is no longer needed on the worksite. E.11.b Packet Pg. 423 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Created: 2023-06-14 12:18:08 [EST] (Supp. No. 13) Page 7 of 12 Excavated material, except that which is to be used for backfilling the same day in the adjacent trench, may not be stored on public streets, roads, or highways unless otherwise permitted by the City Engineer. After placing backfill, all excess material shall be removed immediately from the site. 12.08.180 Trenches and tunnels. Trench and tunnel excavation and construction, including care of excavated materials, shall be done in compliance with the requirements as established by the City Engineer. 12.08.190 Protection and restoration of existing improvements The permit holder shall be responsible for the protection of public and private property adjacent to the work and shall exercise due caution to avoid damage to such property. The permit holder shall repair or replace all existing improvements, public or private, which are not designated for removal (e.g., curbs, sidewalks, driveways, fences, walls, signs, utility installations, pavements, structures, etc.) which are damaged or removed as a result of its operations; except when a portion of a sprinkler system within the right-of-way must be removed, the remaining lines shall be reconstructed or capped. Repairs and replacements shall be at least equal to existing improvements and shall match them in finish and dimension. Trees, lawn, and shrubbery that are not to be removed shall be protected from damage or injury. If damaged or removed because of the permit holder’s operations, they shall be restored or replaced in as neatly the original condition and location as is reasonably possible. Lawns shall be reseeded and covered with suitable mulch. The permit holder shall give five days’ notice, in writing, to occupants or owners of adjacent property to permit them to salvage or relocate plants, trees, fences, sprinklers and other improvements within the right-of- way, which are designed for removal and would be destroyed because of the work. All costs for protecting, removing, and restoring existing improvements shall be born by the permit holder. 12.08.200 Damage to existing improvements. All damage done to existing improvements during the progress of the excavation work shall be repaired by the permit holder. Materials for such repair shall conform with the requirements of any applicable code or ordinance. If, upon being ordered, the permit holder fails to furnish the necessary labor and materials for such repairs, the City Engineer shall have the authority to cause the necessary labor and materials to be furnished by the City, and the cost shall be charged against the permit holder, and the permit holder shall also be liable on his or its cash deposit therefor. 12.08.210 Property lines and easements. Property lines and limits of easements shall be indicated on the plan of excavation submitted with the application for the encroachment permit, and it shall be the permit holder's responsibility to confine excavation work within these limits. 12.08.220 Cleanup. As the excavation work progresses, all streets, public places, and private properties shall be maintained free of all rubbish, excess earth, rock, and other debris resulting from such work. permit holder. The permit holder shall, at his or its own expense, clean up and remove all refuse and unused materials of any kind resulting from the work within three (3) days after the completion of the work. Failure to do so within 24 hours of being notified by the City Engineer, the work may be done by the City Engineer, and the cost thereof charged to the permit holder, and the permit holder shall also be liable for the cost thereof. E.11.b Packet Pg. 424 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Created: 2023-06-14 12:18:08 [EST] (Supp. No. 13) Page 8 of 12 12.08.230 Watercourses, sewers, and drains. Permit holders shall provide for the flow of watercourses, sewers and drains and provide for incidental matters as established by the City Engineer. 12.08.240 Breaking through pavement or sidewalk. Permit holders shall comply with the requirements as established by the City Engineer in regard to breaking through any pavement or sidewalks as specified in section 12.08.200. 12.08.250 Substructure installation. Permit holders shall comply with the requirements as established by the City Engineer in regard to the installation of any substructures. 12.08.260 Tunnels. Tunnels under pavement shall not be permitted except by permission of the City Engineer and, if permitted, shall be adequately supported by timbering and backfilling under the direction of the City Engineer. 12.08.270 Fire hydrant use. The use of fire hydrants as sources of water supply shall be subject to the conditions set forth by Riverside Highland Water Company and any required payment by permit holder for such use. 12.08.280 Restoration by City—Guarantee of restoration. A. If the permit holder has failed to restore the surface of the street or public place to its original and proper condition, upon expiration of the time fixed by such permit, or otherwise has failed to complete the excavation work covered by such permit, the City Engineer, if he deems it advisable, shall have the right to do all work and things necessary to restore the street or public place and to complete the excavation work. The permit holder shall be liable for the actual cost and an additional amount equal to the City’s actual costs for general overhead and administrative expenses which shall be set by resolution of the City Council. The City shall have a cause of action for all such costs and for all fees, expenses and amounts paid out and due it for such work, and shall apply in payment of the amount due it any funds of the permit holder deposited as provided in this Chapter, and the City shall also enforce its rights under the permit holder’s deposit provided pursuant to this Chapter. B. It shall be the duty of the permit holder to guarantee and maintain the site of the excavation work in the same condition it was in prior to the excavation work two years after restoring it to its original condition. 12.08.290 Pipe trench standards. The permit holder shall comply with the OSHA’s Trenching and Excavation Safety and rules and regulations as established by the City Engineer in regard to the excavation, construction and maintenance of any trenches for the laying of pipe. E.11.b Packet Pg. 425 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Created: 2023-06-14 12:18:09 [EST] (Supp. No. 13) Page 9 of 12 12.08.300 Completion of work. The permit holder shall prosecute with diligence and expedition, to the satisfaction of the City Engineer, all excavation work covered by the encroachment permit, and shall promptly complete such work and restore the street or public place to its original condition, or as near as may be, as soon as practicable and, in any event, not later than the date specified in the encroachment permit therefor. 12.08.310 Emergency completion. If, in his judgment, traffic conditions, the safety or convenience of the traveling public, or the public interest, require that the excavation work be performed as emergency work, the City Engineer shall have full power to order, at the time the permit is granted, that a crew of men and adequate facilities be employed to expeditiously complete such work as soon as possible. 12.08.320 New pavement moratorium. The following provisions are intended to minimize pavement degradation, maintain structural integrity of streets, maintain a smooth surface for all modes of transportation, and reduce negative visual impacts: A. The City Engineer shall attempt to give notice to all owners of substructures & facilities located within the City streets who might be affected approximately six months prior to the probable date of construction of any new paving or repaving of any street in the City. The failure to give such notice shall not affect the further provisions of this Section. B. No excavation, trenching, or overlay shall be permitted in any street that has been constructed, or reconstructed, the pavement surface shall not be cut or opened for a period of five (5) years after completion and acceptance of the project by the City Council, or from recordation of a notice of completion. On a slurry sealed street, the pavement surface shall not be cut or opened for a period of (3) years from completion unless the person proposing to make such excavation shall agree to pay for resurfacing half the street section with an asphaltic concrete cap of a minimum thickness of two inch for a distance of 50 feet on either side of the excavation on a longitudinal basis from centerline of the street. i. In accordance with this street moratorium, it is hereby declared that all paved streets dating back to FY 2021-22 shall be covered by the moratorium as of their filed notice of completion date. C. As practical, directional boring methods shall be utilized along the City’s main thoroughfares, as required by the City Engineer, including but not limited to the full lengths of Barton Road, Mount Vernon Avenue, De Berry Street, Van Buren Street, Pico Street, Main Street, and Observation Street, to minimize surface disruption while efficiently installing, maintaining, or repairing underground utilities. 12.08.330 Exceptions to New Pavement Moratorium. The City Engineer/Public Works Director may, in his or her sole discretion, grant an exception to the moratorium for: A. Emergencies which endanger life, or public health and safety. B. Work that is mandated by city, state or federal legislation. C. New construction approved by City Council or service to buildings or properties where no other reasonable means of providing service exist E.11.b Packet Pg. 426 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Created: 2023-06-14 12:18:09 [EST] (Supp. No. 13) Page 10 of 12 D. The City Engineer/Public Works Director or City Manager shall grant an exception to Riverside Highland Water Company if the following conditions are met: i. Riverside Highland Water Company (RHWC) will repair or replace the facility, backfill the excavation with new fill dirt and base, and install temporary paving. When multiple trenches have accumulated, RHWC will replace the temporary paving with permanent paving on a quarterly basis or as required by the City Engineer 12.08.340. Request for Moratorium Exception. To request an exception, the applicant shall submit the following information to the Public Works Department: A. The location of excavation. B. Which exception from the moratorium as set forth in section 12.08.330is being claimed. C. Description of the work to be performed. F. Justification from the applicant why the work cannot be deferred until after moratorium expires. 12.08.350 Noise, dust and debris. Each permit holder shall conduct and carry out the excavation work in such manner as to avoid unnecessary inconvenience and annoyance to the general public and occupants of neighboring property. The permit holder shall take appropriate measures to reduce to the fullest extent practical, in the performance of the excavation work, noise, dust and unsightly debris and, during the hours of 8:00 p.m. and 7:00 a.m. Monday through Saturday and all day on Sunday or a national holiday, shall not use, except with the expressed written permission of the City Engineer or, in case of an emergency as otherwise provided in this Chapter, any tool, appliance or equipment producing noise of sufficient volume to disturb the sleep or repose of occupants of the neighboring property. 12.08.330 Monument preservation. Any monument set for the purpose of locating or preserving the lines of any street or property subdivision, or a precise survey reference point, or a permanent survey benchmark within the city shall not be removed or disturbed or caused to be removed or disturbed without first obtaining permission in writing from the city engineer so to do. Permission to remove or disturb such monuments, reference points or benchmarks shall only be granted upon condition that the person applying for such permission shall pay all expenses incident to the proper replacement of this monument by a registered professional engineer or a registered land surveyor. 12.08.340 Rule and regulation promulgation. The city engineer shall make such inspections as are necessary in the enforcement of this chapter. The city engineer shall have the authority to promulgate and cause to be enforced such rules and regulations as may be reasonably necessary to enforce and carry out the intent of this chapter. 12.08.350 City work exempted. The provisions of this chapter shall not be applicable to any excavation work performed under the direction of city authorities by employees of the city. The provisions of this chapter shall apply to any permit holder performing work for the city except to the extent exempted by the city engineer or where a particular provision is inconsistent with a specific provision of the contract under which such work is to be performed. E.11.b Packet Pg. 427 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Page 11 of 12 12.08.360 Public utility companies. All persons operating public utilities in the city either under regulations of the State Public Utilities Commission or authorized by the state to operate the public utility, and having the right, either by general or special permission to enter upon the streets and open and excavate pavements, sidewalks or disturb the surface thereon by excavation or other work, shall be required to apply for a permit for all work in the public right-of-way. A blanket permit may be issued for periods up to one year to place or to repair any facility which does not interfere with, disturb, destroy or remove any street improvement, or involve the making of any excavation in or below the surface of the street or interfere with any installation owned by any other person. Excavations in excess of four feet by four feet shall not be made without prior approval of plans by the city Engineer. 12.08.370 Insurance. A permit holder, prior to the commencement of excavation work under this chapter, shall furnish the city engineer satisfactory evidence, in writing, that the permit holder has in force and will maintain in force during the performance of the excavation work and the period of the encroachment permit, public liability insurance for the protection of the city and the permit holder against claims for injury or death to any person or persons or damage to any property arising out of the performance of such excavation work. Such policy shall provide coverage of not less than $4,000,000 for all damages arising out of bodily injuries to or death of one or more persons in any one occurrence, and not less than $2,000,000 for all damages and/or destruction of property in any one occurrence, and not less than $2,000,000 for all damages and/or destruction of property during the policy period. Such policy shall guarantee payment of any final judgment rendered against the permit holder or the city within the coverage provided, irrespective of the financial condition of or of any acts or omissions of such permit holder. Such policy shall specifically name the city as an additional insured and shall further provide that the insurance coverage thereby afforded shall not be terminated or cancelled except upon thirty days' written notice to the city. 12.08.380 Nonliability of city. This chapter shall not be construed as imposing upon the city or any official or employee any liability or responsibility for damages to any person injured by the performance of any excavation work for which an encroachment permit is issued under this chapter, nor shall the city or any official or any employee thereof be deemed to have assumed any such liability or responsibility by reason of inspections authorized under this chapter, the issuance of any permit, or the approval of any excavation work. 12.08.390 Enforcement. The city engineer and/or their designee shall have the authority to promulgate and cause to be enforced such rules and regulations as are reasonably required to provide for the matters governed by this chapter and to supplement the same and to provide for the enforcement of this chapter. Violation of such rules and regulations shall constitute a violation of this chapter. 12.08.400 Violation—Misdemeanor. Any person violating any of the provisions of this chapter is guilty of a misdemeanor. 12.08.410 Fines for failure to obtain a encroachment permit. A. Description of Violation. Encroachment permits along with a city of Grand Terrace construction application package can be obtain from the public works department. Failure to obtain a permit will result in a fine of one thousand dollars for each occurrence. Fine* $1,000.00 per each occurrence E.11.b Packet Pg. 428 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) 01247.0001/960130.2 Page 12 of 12 Permit holders performing street cuts and resulting patching that are not performed correctly in accordance with section 12.08.300C Fine* $1,000.00 per each occurrence and require the permit holder to repair and restore the street per engineer’s standards. E.11.b Packet Pg. 429 At t a c h m e n t : C h a p t e r _ 1 2 . 0 8 _ _ _ S t r e e t E x c a v a t i o n s ( A d o p t i o n o f O r d i n a n c e C h a p t e r 1 2 . 0 8 S t r e e t E x c a v a t i o n ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Prioritization of Funding Recommendations for Community Development Block Grant (CDBG) Funds for Program Year 2024-25 PRESENTED BY: Shanita Tillman, Senior Management Analyst RECOMMENDATION: 1) Conduct a public hearing for the prioritization of eligible applications for 2024-25 Community Development Block Grant (CDBG) funding; and, 2) Prioritize funding allocations and authorize staff to submit the City's CDBG funding recommendation to the County of San Bernardino Economic Development Agency. 2030 VISION STATEMENT: This staff report supports, in part, our Vision of a place where residents can enjoy quality of life that fosters pride and an engaged community, in that the Community Development Block Grant (CDBG) Program funds community programs that benefit Grand Terrace residents. BACKGROUND: The City participates in the Federally funded CDBG Program, administered cooperatively by the San Bernardino County Economic Development Agency (County). Eligible activities must meet one of the following national objectives: 1) benefiting low- and moderate-income persons, 2) eliminating blight, or 3) meeting an urgent need. The City Council makes funding recommendations at a noticed public hearing, and these recommendations are then considered by the Board of Supervisors for approval. The City's 2024-25 allocation is expected to be $55,015, based on population estimates, poverty, and overcrowded housing. The City Council may recommend funding for up to four projects, but only three applied. Any unprogrammed funds can only be used for capital improvement (construction) projects. DISCUSSION: The City Council’s 2024-25 funding recommendations are shown in Table 1. Items 1-3 are projects currently funded by the Board of Supervisors and implementation of these projects is ongoing. E.12 Packet Pg. 430 2024-25 Program Year Three applications eligible for Community Development Block Grant (CDBG) funding were received, all of which are for public service projects for the 2024-25 program year. All applicants were notified of this hearing via email on January 24, 2024. Attached, you will find a summary of the eligible proposals along with copies of the applications containing detailed grant proposals. Any funds not fully expended in past years have been moved to unprogrammed funds. Family Services Association has requested $70,000, and based on staff recommendations, there is only a remaining $35,015. However, due to the availability of unprogrammed funds, we are able to supplement the difference with $34,985 to fully fund their request. Table 1: 2024-25 Eligible Applications Priority Applicant Project FY 2024-25 Funding Request Funding Recommendations Available Unprogrammed Funds to Commit to Activity 1 Family Services Association Con’t - Senior Meals Program $10,000 $10,000 2 SB County Library Grand Terrace Branch Con’t. - Adult Literacy Program $10,000 $10,000 3 Family Services Association Con’t - Senior Center Coordinator $70,000 $35,015 $34,985 Total Requested $90,000 Recommendation Staff recommends funding the top three projects that assist underserved target populations in our community. The City's estimated allocation of $55,015 will not be sufficient to fully fund all proposals. Therefore, staff requests the use of unprogrammed funds in the amount of $34,985 to fully support the Family Services Association's request for a Senior Center Coordinator. Staff also recommends that the Council prioritize funding for the County's Literacy Program and FSA's senior nutrition program. FISCAL IMPACT: In addition to staff time incurred for project administration, there is a temporary fiscal impact on the City's General Fund because the City would need to advance grant funds for all projects except the County Literacy Program. The advanced funds would be later reimbursed by the County. The County administers the Literacy Program Countywide, and no costs are incurred by the City for that program. Budget appropriation for these E.12 Packet Pg. 431 grant allocations will be requested during the Fiscal Year 2024-25 budget process. ATTACHMENTS: • 2024-25 Summary of All Eligible-Grand Terrace Projects (PDF) • Public Hearing Notice 2.14.23 (PDF) • GRAN24PS-052 FSA - Senior Nutrition Program (PDF) • GRAN24PS-053 FSA - Senior Center (PDF) APPROVALS: Shanita Tillman Completed 01/23/2024 8:42 AM Finance Completed 01/30/2024 12:51 PM City Manager Completed 01/30/2024 1:47 PM City Council Pending 02/13/2024 6:00 PM E.12 Packet Pg. 432 New/Cont. District Location Applicant Application #Project Title Project Description Amount  Requested Comments Eligible: Yes/NO Supervising ECD  Analyst Initials Accomplishment #23‐24 Project # Cont Third District Grand Terrace Cheryl‐Marie Hansberger, Chief Executive Officer Family Service Association  21250 Box Springs Rd., Ste 212 Moreno Valley, CA 92557 Cheryl.Hansberger@fsaca.org 951‐686‐1096 GRAN24PS‐052 Grand Terrace: Senior Meals Program ‐ Family Service Association Expanding Public Service ‐ Family Service Association to provide a senior  congregate and mobile meals program to approximately 152 seniors in the  City of Grand Terrace and surrounding communities.  Curbside pick‐up of  meals is also offered. CDBG funds will be used to for personnel costs and  consumable supplies.  $10,000.00 Expanding Public Service ‐ Family Service Association, under contract with the City of Grand Terrace, will provide a senior congregate and mobile meals program to  seniors in the City of Grand Terrace and surrounding communities.  Curbside pick‐up of meals is also offered. FSA expects to serve 152 unduplicated senior citizens  throughout the program year. Seniors are a presumed 51% low‐to moderate‐income population. However, documentation is still required. Public Services are limited to  low‐and moderate‐income persons and require monthly documentation that at least 51% of the persons served qualify as low‐and moderate‐income. This activity was  funded in previous years (less than 12 months) and is a continuing activity. Therefore, a quantifiable increase in the level of service or a new additional service is required  in order to continue to be eligible for CDBG funding.   Yes GRAN23PS‐047 Cont Third District Grand Terrace Cheryl‐Marie Hansberger, Chief Executive Officer Family Service Association  21250 Box Springs Rd., Ste 212 Moreno Valley, CA 92557 Cheryl.Hansberger@fsaca.org 951‐686‐1096 GRAN24PS‐053 Grand Terrace: Senior Center Coordinator ‐ Family Services Association Expanding Public Service ‐ Family Services Association will provide staff to  provide classes, activities, counseling, transportation and associated  coordination, including administrative tasks at the Grand Terrace Senior  Center to approximately 200 seniors.  $70,000.00 Expanding Eligible Public Service ‐ Family Services Association, under contract with the City of Grand Terrace, will provide staff to make available: classes, activities,  counseling, transportation and associated coordination, including administrative tasks at the Grand Terrace Senior Center to approximately 200 unduplicated senior  citizens in Grand Terrace and the surrounding area.  FSA requested $70,000 ($50,000 in personnel costs and $20,000 in operational costs) during this application period.  Senior Center operational costs are not eligible for CDBG funding; therefore, the amount was amended to $50,000. Seniors are a presumed 51% low‐to moderate‐income  population. However, documentation is still required. Public Services are limited to low‐and moderate‐income persons and require monthly documentation that at least  51% of the persons served qualify as low‐and moderate‐income. This activity was funded in previous years (less than 12 months) and is a continuing activity. Therefore, a  quantifiable increase in the level of service or a new additional service is required in order to continue to be eligible for CDBG funding.  Yes GRAN23PS‐050 Cont Third District Grand Terrace Melanie Orosco, County Librarian 268 W. Hospitality Lane, 3rd Floor San Bernardino, CA 92415 melanie.orosco@lib.sbcounty.gov 909‐387‐2220 GRAN24PS‐023 Grand Terrace: Adult Literacy Program  Expanded Public Service ‐ The San Bernardino County Library (SBCL), Grand  Terrace Branch Adult Literacy Services Program will provide programming  and instruction for low‐to‐moderate income illiterate adults and senior  residents of Grand Terrace. Individualized tutoring and one‐on‐one Literacy  instruction (reading, spelling, and basic computer skills) will be provided to  a minimum of 12 qualifying adult participants during Fiscal Year 24‐25.  Library Adult Literacy Services are provided free of charge to all learners  participating in the program. Direct services and assistance are provided by  Library staff as well as a ream of trained Literacy Tutors. $10,000.00 Expanding Eligible Public Service. Services are limited to low‐ and moderate‐income clients and requires documentation of at least 51% of the clients are low‐ to  moderate‐income. Client eligibility (for all clients including illiterate adults) must be evidenced by documentation and data concerning beneficiary family size and income.  This activity was funded in previous fiscal years and is a continuing activity.  Therefore a quantifiable increase in the level of service is required. CDBG funds will be used  to pay for personnel services. Services are provided by San Bernardino County Library Department staff and volunteers. Service Location: 22795 Barton Road, Grand  Terrace, CA 92313. Prior to COVID‐19, the San Bernardino County Library Adult Literacy Program saw gradual increases in the number of learners served at each location.  However, after  COVID‐19, the number of patrons who visited the library has significantly decreased.  This has directly impacted how many potential learners came into the branch as well  as how many current learners felt comfortable returning to the program due to health and safety.  Therefore, the number of learners served has not increased this year,  but the expansion of the program has included the following: (1) expansion of support hours provided by the library staff to tutors who need training; (2) expansion of  support hours provided by the library staff to learners who need additional resources and meetings to revisit roles and goals; (3) expansion of library of materials and  curriculum used to teach adult learners how to improve reading and writing; (4) expansion of hours available for tutors and learners to meet together in the Library for  tutoring sessions (formerly limited to 1‐2 hours per week will now expand to 3+ hours per week, depending on the tutor‐learner pair’s availability, willingness to meet  more, and need to meet a specific goal); and (5) expansion of outreach and planning to promote the program to the local community (higher number of community  connections, more meetings with adult‐literacy‐assigned‐library‐staff to develop awareness events and strategize to bring in more learners and tutors). Yes GRAN23PS‐056 E.12.a Packet Pg. 433 At t a c h m e n t : 2 0 2 4 - 2 5 S u m m a r y o f A l l E l i g i b l e - G r a n d T e r r a c e P r o j e c t s ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) NOTICE OF PUBLIC HEARING BY THE CITY COUNCIL HEARING DATE: Tuesday, February 14, 2023 PLACE: Council Chambers, 22795 Barton Road, Grand Terrace, California TIME: 6:00 P.M. THE CITY COUNCIL OF THE CITY OF GRAND TERRACE IS SCHEDULED TO HOLD A PUBLIC HEARING AT THE ABOVE TIME AND PLACE REGARDING THE FOLLOWING ITEM: 2023-24 Community Development Block Grant (CDBG) Program. The CDBG Program is a federally funded program that provides grant funds for activities that meet national objectives such as principally benefiting low-and moderate-income persons, 2)eliminating blight, and 3) meeting an urgent need. The City Council will hold a public hearing for the purpose of considering eligible applications and prioritizing funding recommendations, which will then be forwarded to the San Bernardino County Board of Supervisors for action. Anyone wishing to speak in favor of or in opposition to any of the above listed items will be given the opportunity to do so before the City Council. Pursuant to Government Code Section 65009(b)(2): “If you challenge the nature of the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the public entity conducting the hearing at or prior to the public hearing.” The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s office at (909) 954-5207, at least 48 hours prior to the meeting. If you have any questions regarding this item, the public hearing or this notice or to review related materials, please contact Shanita Tillman in the Public Works Department located at 22795 Barton Road, Grand Terrace, California (909) 954-5191, or via email stillman@grandterrace-ca.gov. E.12.b Packet Pg. 434 At t a c h m e n t : P u b l i c H e a r i n g N o t i c e 2 . 1 4 . 2 3 ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – San Bernardino County Fiscal Year -Public Services Program Application The following documents must be submitted in the order listed, please be sure to submit all attachments with your application. Exhibit 1: Organization Information Exhibit 2: Project Information Exhibit 3: Community Needs and Target Population Exhibit 4: Project Budget & Sources Exhibit 5: Performance & Outcomes Exhibit 6: Agency Capacity Narrative Exhibit 7: Civil Rights Laws Compliance and HUD Good Standing Exhibit 8: Signature and Assurances Application Checklist _______________ Log Number (Office Use Only) 1 4 4 4 GRAN24PS-052 2024 2025 4 4 2024 4 4 4 2025 4 E.12.c Packet Pg. 435 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 1: Organization Information Organization Name: Organization Address: City/State/Zip: Phone: Fax: Email: Applicant Type: Authorized Person Name: Authorized Person’s Title: Address: City/State/Zip: Phone: Fax: Email: Application Contact Person’s Name: Application Contact Person’s Title: Explain the Agency’s 1) Mission, 2) Purpose, 3) Population Served, 4) Number of years serving population, 5) Supportive Services, their Funding Sources, and Start/End Dates. 2 ahlam.jadallah@fsaca.org CEO Cheryl.Hansberger@fsaca.org Family Service Association has been a non-profit leader for 67 years now, and in times of unprecedented change and adversity, FSA has become a stabilizing force in the community. Founded in 1953 by The Junior League of Riverside, community members have found comfort in FSA’s legacy of providing high quality care through much needed services like Senior Nutrition, Childcare, Mental Health, and Child Abuse Prevention throughout the InlandRegion. FSA’s mission is to address poverty, hunger, and health from infancy to older adults, in families and under-served communities. Family Service Association Cheryl-Marie Hansberger Fund Development Specialist 2024 9516861096 21250 Box Springs Road, Suite 212 9516861096 21250 Box Springs Rd Suite 212 Moreno Valley / CA / 92557-8712 Ahlam Jadallah 2025 Moreno Valley / CA / 92557 E.12.c Packet Pg. 436 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 2: Project Information Project Title: Project Address: County Supervisorial District where project will be located: 1st District 2nd District 3rd District 4th District 5th District If you are requesting funds for an existing CDBG project, provide prior CDBG project number. Will this project provide an opportunity to hire minority-owned and women owned businesses? If YES, describe what actions will be completed to implement such subcontracting plans to monitor this component of the proposed project. If NO, discuss why and what actions are being taken to encourage minority-women businesses to apply for this project. 3 If this is an Expansion of Service to previously funded CDBG project, please explain how this is an expansion of service?. (i.e For 2015 we proposed 60 units of service, this year the agency is planning to serve 100 units of service) Is this a New Public Service Project, or request to expand services to an existing CDBG project? No Grand Terrace Senior Center X 2024 22627 Grand Terrace Rd., Grand Terrace, CA 92313 2025 For 2023, FSA proposed to serve 150 unduplicated clients. This year the Agency is planning to serve 152 unduplicated clients. Expansions of Service to an Existing Project E.12.c Packet Pg. 437 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – EXHIBIT 2A: Countywide Vision Indicate Yes/No in the table below if any of these countywide vision goals are pertinent to the proposed project. Countywide Vision Countywide Vision Yes/ No Implement the Countywide Vision. Create, Maintain and Grow Jobs and Economic Value in the County. Improve County Government Operations. Operate in a Fiscally-Responsible and Business-Like Manner. Ensure Development of a Well-Planned, Balanced, and Sustainable County. Maintain Public Safety. Provide for the Health and Social Services Needs of County Residents. Pursue County Goals and Objectives by Working with Other Governmental Agencies. Provide a brief narrative of how your project meets the Countywide Vision: 4 FSA's Senior Nutrition Program meets the Countywide Vision in the following ways: ·Assists the County in creating a range of choices for its residents in how they live by offering senior services free of charge to qualified seniors. ·Aids the county in their vision of offering high quality community health programs. ·Facilitates in the County’s vision of a model community where great ideas are shared and where collaborations are encouraged to reach shared interests and goals. ·Supports the County’s vision of a place that is a home for anyone seeking a sense of community and the best life has to offer. Yes Yes Yes Yes 2024 Yes Yes 2025 Yes Yes E.12.c Packet Pg. 438 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 3: Community Needs and Target Population Community Needs Target Population Public Service Needs: Yes/No Proposed Community: Yes/No Senior Services Low and Moderate Persons Handicapped Services Low and Moderate Households Youth Services Abused Children Child Care Services Handicapped Persons Transportation Services Illiterate Persons Substance Abuse Services Homeless Persons Employment Training Migrant Farm Workers Health Services Elderly People Lead Hazard Screening Crime Awareness 5 City/Target Area of Project Beneficiaries Participating Cities: (i.e Redlands, Colton, Yucaipa) No NoNo Yes No No Yes No Yes 2024 No City of Grand Terrace, and immediate surrounding area. Yes Yes Yes 2025 No No No Yes No E.12.c Packet Pg. 439 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 3: Community Needs and Target Population (continued) Describe the geographic boundaries of the neighborhood, community or area in which clients of the proposed program reside (attach a map if needed): HUD Demographics: (Yes/No) Does this project help prevent homelessness? Does this project help the homeless? Does this project help those with HIV or AIDS? Does this project primarily help persons with disabilities? Summarize the description of your project to include 1) priority, 2) sub-activity, 3)population(s) to be served, and 4) accomplishment level, and 5) services to be provided. 6 No The geographic boundaries to be served are the entire boundaries of the City of Grand Terrace. Seniors from adjacent communities such as Colton and Highgrove also utilize the Center, but clients are primarily from Grand Terrace. 2024 No No 2025 FSA’s Senior Nutrition Program is dedicated to providing seniors with the necessary nutritional support to protect them against food insecurity, and to help them continue to live independent and fulfilling lives. For many seniors, Senior Nutrition is the first service that they seek for assistance to help them stay in their own homes and live independently. It is through funding from both San Bernardino CDBG program and San Bernardino County DAAS that we are able to provide this service to the residents in the City of Grand Terrace. FSA provides nutritious meals to seniors 62 years of age and older in a group setting at the Grand Terrace Senior Center. Home-delivered meals are also delivered to homebound seniors who aren't mobile by reason of illness, disability, and a lack of transportation. The program also provides a range of services, including nutrition screening, assessment, and education. No E.12.c Packet Pg. 440 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Describe how this project meets the priority population and activities selected. Explain why this project is needed and what evidence can you substantiate the need. Describe what gaps of service in the county this project fills. What are the critical factors for the success of your project (include both financial and human resources)? For instance, is this the only funding for this project? What happens if funding decreases? Does this project rely on only one source of leveraging? Is there adequate staff involved with the project if there is project turnover? Please address any factor that is critical to project success. 7 Rising food costs and inflation have increased the demand for meals among seniors. The demand continues to rise, and new participants are enrolling in the Senior Nutrition Program each day. FSA continues to exceed its program objectives and targets to meet the growth of the program. 2024 The Senior Nutrition Program serves as a critical and meaningful approach to tackle food insecurity, isolation, depression, and many other health and social issues that vulnerable seniors experience. FSA provides seniors with one nutritionally balanced meal Monday - Friday. By providing these meals we will continue to meet our goals of improving the overall health and wellbeing of those we serve. 2025 Without the meals supplied by this program, many seniors would be prematurely placed in assisted living or nursing homes due to their inability to shop for food or prepare their own meals. Many seniors face the threat of hunger due to limitations in their daily living activities, such as difficulties with walking, meal preparation, eating, and memory. In addition, many seniors live alone and do not have family or neighbors to help shop for or prepare meals. For individuals in these challenging situations, the Senior Nutrition Program serves as a critical and valued program. FSA’s Senior Nutrition Program is scalable based on the amount of funding received from various funding sources. The more funds received, the more seniors are able to utilize the congregate and homebound nutrition services that FSA offers. FSA employs over 250 individuals and has a strong volunteer base of nearly 1,000 volunteers. Programs are staffed appropriately, and our executive team is prepared to fill any vacancies should the need arise. E.12.c Packet Pg. 441 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 4: Project Budget & Sources Project Budget SB County Share: ($) Other Source: ($) Personnel Equipment (Rental, Lease or Purchase) Consultant Services (Auditing, Accounting or Payroll) Space Rent Insurance Consumable Supplies Other Total Costs Total Project Budget Cost: (CDBG Share + Other Source) 8 $1,594,000.00 $27,420.00 $2,050,000.00 $101,230.00 2024 $10,000.00 $4,809,150.00 $28,500.00 $10,000.00 $12,000.00 $0.00 2025 $0.00 $4,819,150.00 $996,000.00 E.12.c Packet Pg. 442 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 4A: CDBG Funds Requested and Leveraging Information Indicate the amount being requested by the city. City Amount Requested ($): (This amount should match the grand total requested from CDBG Share) 9 Leveraging items may include any written commitments that will be used towards your cash match requirements in the project, as well as any written commitments for building, equipment, materials, services and volunteer time. Source of Funding: Type of Funding: (Grant Name, EFSP Money) Amount ($): Date Available: (11/22/2016) Federal Funding State Funding County Funding Private Funding Other: Total Leveraging Funds Older Americans Act Title III In-Kind Goods and Services $100,000.00 12/31/2024 Older Americans Act Title III $50,000.00 $3,800,000.00 Individual Donations 2024 07/01/2024$400,000.00 07/01/2024 Grand Te Older Americans Act Title III 07/01/2024 12/31/2024 2025 $10,000.00 $400,000.00 $4,750,000.00 E.12.c Packet Pg. 443 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 5: Performance and Outcomes Definitions: Unduplicated Clients: The number clients/persons projected to be served during the program year (e.g. 25 clients, 50 seniors): Duplicated Clients: The estimated yearly units of service (duplicated, e.g. 25 clients x 10 visits=250 units of service): Complete the chart below with the number of Duplicated and Unduplicated Clients to be served. •In column 1 identify activities that will be completed (e.g. intervention,counseling, and case management). •In column 2 indicate the number of Unduplicated Clients to be served. •In column 3 identify the number of Duplicated Clients to be served. Activities to be Completed (1) Unduplicated Clients to be Served (2) Duplicated Clients projected to be served (3) Performance and Outcomes, answer the following narrative questions using minimum funds request. Indicate a timeline of services provided to client(s) in order to meet project outcome(s). Describe how your agency determines client(s) success. Describe your methodology to evaluate project outcomes. 10 152 The timeline of services is 12 months, July 1, 2024 to June 30, 2025. Evaluation of monthly intake forms and daily sign in sheets. 2024 8500Nutrition (Congregate and Homebound) 2025 FSA determines client success through quantitative and qualitative measures. Quantitative measures includes the number of seniors served daily. Qualitative measures are client success stories and testimonials. E.12.c Packet Pg. 444 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 5A: Proposed Goals & Milestones Explain how the project will meet contract goals and milestones and be completed within 12 months (July 1, –June 30, ). For example, project expenditures and performance/ accomplishment goals of 40% by November 30th, 50% by December 31st, 80% by March 31st, and 100% by June 30th. Fill-in the table below with dates for submission of reimbursement claims and the estimated amount of each. Date of Reimbursement: Amount ($): Total Reimbursement: ($) 11 06/30/2025 25% by September 30, 2024; 50% by December 30, 2024; 75% by March 30, 2025; 100% by June 30, 2025. 09/30/2024 $2,500.00 $10,000.00 $2,500.00 2024 2024 $2,500.00 $2,500.00 03/31/2025 2025 2025 12/31/2024 E.12.c Packet Pg. 445 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 6: Agency Capacity Narrative (Non-Profit Organizations Only) Describe the roles of key administrators, staff members, and volunteers within your agency that will implement the proposed project. In your description include experience, education, and licensing qualifications. Describe your agency’s experience in administering government and/or public funds. Describe your method to sustain project viability over the multi-year process if funding decreases. Instructions: Complete the table below by marking “YES” or “NO” to the questions listed below. Question: Example: Have you received federal funds in the past five years? Yes In the past ten years, has your organization ever had its nonprofit status revoked or withheld by the IRS, the Secretary of State, the State Attorney General, or the Franchise Tax Board? Has your organization been sued in the last five years? Are any of your managers or staff with fiscal responsibilities involved in litigation presently that has any bearing on fiduciary trust or employee relations? Have any unfavorable rulings been handed down by any court against your organization or Executive Director the last five years? Does your organization currently have any unresolved fiscal, reporting, or program issues with any of its funding sources? YES/ NO 12 No No As a recipient of more than $750,000 in federal funds, FSA is subject to single audit requirements using appropriate professional standards. 2024 FSA consistently searches for funding opportunities that could be a match for all agency programs, including the Senior Nutrition Department’s More than a Meal program funding opportunities. No No No 2025 Tom Donahue is the Senior Nutrition Administrator and oversees the entire program, including budget preparation and policies/procedures. E.12.c Packet Pg. 446 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – EXHIBIT 7: Civil Rights Laws Compliance and HUD Good Standing Answer the following questions. Has your organization been a past recipient of assistance under a HUD McKinney Act program or the HUD Single Family Property Disposition Homeless Program? If you have been a recipient under either of these programs, has your agency experienced any project or construction delay, HUD finding or outstanding audit that HUD deems serious regarding the administration of HUD McKinney Act programs or the HUD Single Family Property Disposition Homeless Program? If you answered “Yes”, please explain the circumstances and outcome below. Applicants must be in compliance with applicable civil rights laws and Executive Orders. Applications will be rejected if your agency has any of the following: (1) Any pending civil rights lawsuit instituted by the U.S. Department of Justice; (2) Any noncompliance with civil rights statutes, Executive Orders or regulations as a result of formal administrative proceedings, unless the applicant is operating under a HUD-approved compliance agreement designed to correct the area of noncompliance or is currently negotiating such an agreement; (3) Any unresolved Secretarial charge of discrimination issues under Section 810(g) of the Fair Housing Act, as implemented by 24 CFR 103:400; (4) Any adjudication of a civil rights violation in a civil action brought against the Organization by a private individual, unless the applicant is operating in compliance with a court order designed to correct the area of noncompliance or the applicant has discharged any responsibility arising from such litigation; (5) Any deferral of the processing of applications from the sponsor imposed by HUD under Title VI of the Civil Rights Act of 1964, the Attorney General’s Guidelines (28 CFR 50.3) or the HUD Title VI regulations (24 CFR 1.8) and procedures, or under Section 504 of the Rehabilitation Act of 1973 and HUD Section 504 regulations (24 CFR 8.57). If one or more of these situations exists with your Organization, please attach a brief description. 13 No No 2024 2025 E.12.c Packet Pg. 447 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) E-Signature Authorization San Bernardino County Community Development and Housing Departmemt Community Development Block Grant -Application In order to comply with all applicable federal grant regulations, a hard-copy of this E-Signature Authorization containing an original wet signature must be filed with the San Bernardino County Community Development and Housing (CDH) in order for the applicant to electronically sign the Community Development Block Grant (CDBG) application documents online. This authorization may only be completed by a registered owner, partner, executive officer, or authorized employee (with proof of authorization) of the applicant submitting this form and must contain an original signature to be submitted to the CDH. Authorization Agreement I am an owner, partner, executive officer, or duly authorized employee of the below-listed applicant and have authority to enter into agreements on behalf of the below-listed applicant. CDH may rely on the receipt of such agreements executed and delivered by facsimile or other electronic means as if the original had been received. The undersigned agrees that the electronic signatures appearing on documents submitted from the below-listed applicant are the same as handwritten signatures for the purposes of validity, enforceability and admissibility. By signing this Electronic Signature Authorization Agreement, I authorize the CDH to accept, via electronic submission, documents submitted from the below-listed applicant as required by the CDH's CDBG - Funding Application. I understand that CDH may change the CDBG application system from time to time. I agree that the below-listed applicant will electronically sign all documents requiring a signature related to the CDBG funding application. My signature on this form certifies that: I agree that entering my name in the CDBG funding application system constitutes my electronic signature. I understand that any information and documents submitted using my name is electronically certifying my signature. I understand that I am legally bound, obligated, and responsible by use of my electronic signature as much as I would be by my handwritten signature. I agree that I will protect my signature from unauthorized use, and that I will contact CDH immediately, upon discovery that my electronic signature has been compromised. I certify that my electronic signature is for my own use, and that I will not delegate it or share it with any individual. This request is effective immediately upon receipt by the CDH and will remain in effect until the end of the - CDBG funding cycle or I choose to cancel this request via written notification to the CDH. I understand that it is my responsibility to update and/or cancel this request under all circumstances, including my departure or terminated association with the below-listed applicant. By signing the E- Signature Authorization Form we certify that this agency will also comply with the following: Non-discrimination This organization will, through all possible means, ensure equal opportunity for all persons to receive services, to participate in the volunteer structure, and to be employed regardless of age, handicap, national background, race, religion, or sex. An existing sectarian nature of the agency shall not suffer impairment under this agreement, but participation in religious observances, rituals or services will not be required as a condition of receiving food, services, or shelter paid for by this grant. Accountability We commit this organization, if a grant is received, to provide all reports to the County as required; to expend monies only on eligible costs; to keep complete documentation (copies of all canceled checks, invoices, receipts, etc.) on all expenditures for a minimum of three years; to spend all funds and close out the program on the required date; to return any unused funds to the County to cooperate with monitoring or site visits, and; to provide complete documentation of expenses to the County, if requested, by the required date. We affirm that all information in this application is true and correct to the best of our knowledge and that the applicant under our authority will execute its responsibility under the proposed contract and adhere to all other applicable rules and regulations to the fullest extent possible. Non-collusion This proposal is genuine, and not sham or collusive, nor made in the interest or in behalf of any person not herein named; the proposer has not directly induced or solicited any other proposer to put in a sham proposal, or any other person, firm or corporation to refrain from submitting a proposal; the proposer has not in any manner sought by collusion to secure for him/herself an advantage over any other proposer. Applicant Information Agency Name: Federal Tax ID No.: Mailing Address: Phone No.: Email Address: Fax No: Authorized Signature Print Name: Print Title: Signature: Date: Please send the signed copy of this one page agreement to: San Bernardino County Community Development and Housing Department 215 North D Street, Suite 302, San Bernardino, CA 94215-0043 Attn: CDBG Application 14 12/11/2023 CEOCEO Development@fsaca.org (951) 686-1096(951) 686-1096 Family Service Association 2024 2024 2024 95-1803694 Cheryl-Marie Hansberger 2025 2025 2025 Cheryl-Marie Hansberger 21250 Box Springs Rd Suite 212 E.12.c Packet Pg. 448 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – CDBG Application Checklist (Non-Profit Organizations Only) Community-based organizations are required to include one copy of the items listed below. If you are not submitting these items at this time, please notify Community Development and Housing at (909) 501-0600 to make other arrangements. The following information is required before any contract or reimbursement can be completed. o Summary of agency’s current year General Operating Budget o List of agency’s Board of Directors, including names and addresses o Proof of existing non-profit/tax-exempt status (Letters from the FederalInternal Revenue Service and State Franchise Tax Board) o Current certificate of insurance and amounts covered o Organizational chart o Minutes of last Board meeting o Non- Profit agencies must be Registered in the System of AwardManagement (SAM) website. Agency cannot be funded if they have been debarred in the past. o Provide board minutes/letter that authorizes the executive director or program manager to run the project. If your application is funded you will be required to provide a copy of your last audit and your Articles of Incorporation and Bylaws must be on file. 15 2024 2025 E.12.c Packet Pg. 449 At t a c h m e n t : G R A N 2 4 P S - 0 5 2 F S A - S e n i o r N u t r i t i o n P r o g r a m ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – San Bernardino County Fiscal Year -Public Services Program Application The following documents must be submitted in the order listed, please be sure to submit all attachments with your application. Exhibit 1: Organization Information Exhibit 2: Project Information Exhibit 3: Community Needs and Target Population Exhibit 4: Project Budget & Sources Exhibit 5: Performance & Outcomes Exhibit 6: Agency Capacity Narrative Exhibit 7: Civil Rights Laws Compliance and HUD Good Standing Exhibit 8: Signature and Assurances Application Checklist _______________ Log Number (Office Use Only) 1 4 4 4 GRAN24PS-053 2024 2025 4 4 2024 4 4 4 2025 4 E.12.d Packet Pg. 450 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 1: Organization Information Organization Name: Organization Address: City/State/Zip: Phone: Fax: Email: Applicant Type: Authorized Person Name: Authorized Person’s Title: Address: City/State/Zip: Phone: Fax: Email: Application Contact Person’s Name: Application Contact Person’s Title: Explain the Agency’s 1) Mission, 2) Purpose, 3) Population Served, 4) Number of years serving population, 5) Supportive Services, their Funding Sources, and Start/End Dates. 2 ahlam.jadallah@fsaca.org CEO Cheryl.Hansberger@fsaca.org Family Service Association has been a non-profit leader for 70 years now, and in times of unprecedented change and adversity, FSA has become a stabilizing force in the community. Founded in 1953 by The Junior League of Riverside, community members have found comfort in FSA’s legacy of providing high quality care through much needed services like Senior Nutrition, Childcare, Mental Health, and Child Abuse Prevention throughout the InlandRegion. FSA’s mission is to address poverty, hunger, and health from infancy to older adults, in families and under-served communities. Family Service Association Cheryl-Marie Hansberger Fund Development Specialist 2024 9516861096 21250 Box Springs Road, Suite 212 9516861096 21250 Box Springs Rd Suite 212 Moreno Valley / CA / 92557-8712 Ahlam Jadallah 2025 Moreno Valley / CA / 92557 E.12.d Packet Pg. 451 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 2: Project Information Project Title: Project Address: County Supervisorial District where project will be located: 1st District 2nd District 3rd District 4th District 5th District If you are requesting funds for an existing CDBG project, provide prior CDBG project number. Will this project provide an opportunity to hire minority-owned and women owned businesses? If YES, describe what actions will be completed to implement such subcontracting plans to monitor this component of the proposed project. If NO, discuss why and what actions are being taken to encourage minority-women businesses to apply for this project. 3 If this is an Expansion of Service to previously funded CDBG project, please explain how this is an expansion of service?. (i.e For 2015 we proposed 60 units of service, this year the agency is planning to serve 100 units of service) Is this a New Public Service Project, or request to expand services to an existing CDBG project? No Grand Terrace Senior Center X 2024 22627 Grand Terrace Rd., Grand Terrace, CA 92313 2025 For 2023, FSA proposed to serve 188 unduplicated clients. This year the Agency is planning to serve 200 unduplicated clients. Expansions of Service to an Existing Project E.12.d Packet Pg. 452 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – EXHIBIT 2A: Countywide Vision Indicate Yes/No in the table below if any of these countywide vision goals are pertinent to the proposed project. Countywide Vision Countywide Vision Yes/ No Implement the Countywide Vision. Create, Maintain and Grow Jobs and Economic Value in the County. Improve County Government Operations. Operate in a Fiscally-Responsible and Business-Like Manner. Ensure Development of a Well-Planned, Balanced, and Sustainable County. Maintain Public Safety. Provide for the Health and Social Services Needs of County Residents. Pursue County Goals and Objectives by Working with Other Governmental Agencies. Provide a brief narrative of how your project meets the Countywide Vision: 4 The Project will Implement the Countywide Vision by supporting the Wellness Element to provide safety, health and social service needs for County residents. The senior center offers wellness activities, such as daily lunch, exercise classes, dance, and art classes, educational classes, health screenings, and socialization opportunities for seniors through game nights, arts and craft classes, and karaoke. The Project meets the goals of working with other governmental agencies by maintaining a close working relationship between the County and City of Grand Terrace. Yes Yes Yes Yes 2024 Yes Yes 2025 Yes Yes E.12.d Packet Pg. 453 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 3: Community Needs and Target Population Community Needs Target Population Public Service Needs: Yes/No Proposed Community: Yes/No Senior Services Low and Moderate Persons Handicapped Services Low and Moderate Households Youth Services Abused Children Child Care Services Handicapped Persons Transportation Services Illiterate Persons Substance Abuse Services Homeless Persons Employment Training Migrant Farm Workers Health Services Elderly People Lead Hazard Screening Crime Awareness 5 City/Target Area of Project Beneficiaries Participating Cities: (i.e Redlands, Colton, Yucaipa) No NoNo Yes No No Yes No Yes 2024 No City of Grand Terrace, and immediate surrounding area. Yes Yes Yes 2025 No No No Yes No E.12.d Packet Pg. 454 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 3: Community Needs and Target Population (continued) Describe the geographic boundaries of the neighborhood, community or area in which clients of the proposed program reside (attach a map if needed): HUD Demographics: (Yes/No) Does this project help prevent homelessness? Does this project help the homeless? Does this project help those with HIV or AIDS? Does this project primarily help persons with disabilities? Summarize the description of your project to include 1) priority, 2) sub-activity, 3)population(s) to be served, and 4) accomplishment level, and 5) services to be provided. 6 No The geographic boundaries to be served are the entire boundaries of the City of Grand Terrace. Seniors from adjacent communities such as Colton and Highgrove also utilize the Center, but clients are primarily from Grand Terrace. 2024 No No 2025 FSA is seeking funding to continue operations of the Grand Terrace Senior Center. A Program Coordinator position was established in 2017 and since then services have been offered on regular basis and participation has increased substantially. The project is needed for the City of Grand Terrace to ensure that seniors have a safe and healthy place in their community. The program coordinator is responsible for the daily operation of the Center, including opening and closing the Center, scheduling of classes, educational counseling, coordinating with vendors for programs, and also working with the senior board members. In addition to personnel costs, FSA is also requesting funding for operational costs so that the Center can host more activities and events on a routine basis. Funding is critical to the success of the program, so that an experienced staff person(s) can operate the Center and engage the community at large. No E.12.d Packet Pg. 455 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Describe how this project meets the priority population and activities selected. Explain why this project is needed and what evidence can you substantiate the need. Describe what gaps of service in the county this project fills. What are the critical factors for the success of your project (include both financial and human resources)? For instance, is this the only funding for this project? What happens if funding decreases? Does this project rely on only one source of leveraging? Is there adequate staff involved with the project if there is project turnover? Please address any factor that is critical to project success. 7 For over 30 years, the Center has historically been managed by a senior volunteer; and oftentimes the needs of the Center overwhelmed the capacity of senior volunteers. In 17/18 a coordinator was funded and membership and participation increased by 10%. As membership continues to increase, this staffing position and increased operational costs are needed to manage the center's increasing activities. 2024 The Project will provide services to the senior target population. It will allow for staffing of the Center to manage the services and activities of the Senior Center and its 185 monthly senior participants. The Project will allow seniors to have a safe and healthy place to continue to be nourished and stay active within their community. 2025 The Senior Center serves a minimum of 180 seniors on a monthly basis and fills this gap by providing a variety of health, social and counseling services. With the help of CDBG funding a paid position was established in 17/18, and in less than the first half of the fiscal year membership grew by 10%. The grant is needed to sustain and increase this growth. Funding is a critical factor for Project success. This application seeks $70,000 of CDBG funding to assist in staffing and operations of the Center. It is critical to the success of the program that there is a non-volunteer staffing to manage the Center. A paid coordinator has been in place during the 17/18 year and the Center has already experienced increased participation. E.12.d Packet Pg. 456 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 4: Project Budget & Sources Project Budget SB County Share: ($) Other Source: ($) Personnel Equipment (Rental, Lease or Purchase) Consultant Services (Auditing, Accounting or Payroll) Space Rent Insurance Consumable Supplies Other Total Costs Total Project Budget Cost: (CDBG Share + Other Source) 8 $10,000.00 2024 $10,000.00$70,000.00 $50,000.00 2025 $20,000.00 $80,000.00 E.12.d Packet Pg. 457 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 4A: CDBG Funds Requested and Leveraging Information Indicate the amount being requested by the city. City Amount Requested ($): (This amount should match the grand total requested from CDBG Share) 9 Leveraging items may include any written commitments that will be used towards your cash match requirements in the project, as well as any written commitments for building, equipment, materials, services and volunteer time. Source of Funding: Type of Funding: (Grant Name, EFSP Money) Amount ($): Date Available: (11/22/2016) Federal Funding State Funding County Funding Private Funding Other: Total Leveraging Funds 2024 Grand Te 2025 $70,000.00 $0.00 E.12.d Packet Pg. 458 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 5: Performance and Outcomes Definitions: Unduplicated Clients: The number clients/persons projected to be served during the program year (e.g. 25 clients, 50 seniors): Duplicated Clients: The estimated yearly units of service (duplicated, e.g. 25 clients x 10 visits=250 units of service): Complete the chart below with the number of Duplicated and Unduplicated Clients to be served. •In column 1 identify activities that will be completed (e.g. intervention,counseling, and case management). •In column 2 indicate the number of Unduplicated Clients to be served. •In column 3 identify the number of Duplicated Clients to be served. Activities to be Completed (1) Unduplicated Clients to be Served (2) Duplicated Clients projected to be served (3) Performance and Outcomes, answer the following narrative questions using minimum funds request. Indicate a timeline of services provided to client(s) in order to meet project outcome(s). Describe how your agency determines client(s) success. Describe your methodology to evaluate project outcomes. 10 700 90 The timeline of services is 12 months, July 1, 2024 to June 30, 2025. Exercise and Wellness Programs Transportation to Grocery Markets 30 70 Evaluation of monthly intake forms and daily sign in sheets. 2024 2400 2700Social Recreation 2025 By continued increases in senior center membership, participation and programs, demonstrating that seniors have a safe and healthy place to socialize and stay active within their community. E.12.d Packet Pg. 459 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 5A: Proposed Goals & Milestones Explain how the project will meet contract goals and milestones and be completed within 12 months (July 1, –June 30, ). For example, project expenditures and performance/ accomplishment goals of 40% by November 30th, 50% by December 31st, 80% by March 31st, and 100% by June 30th. Fill-in the table below with dates for submission of reimbursement claims and the estimated amount of each. Date of Reimbursement: Amount ($): Total Reimbursement: ($) 11 06/30/2025 25% by September 30, 2024; 50% by December 30, 2024; 75% by March 30, 2025; 100% by June 30, 2025. 09/30/2024 $17,500.00 $70,000.00 $17,500.00 2024 2024 $17,500.00 $17,500.00 03/31/2025 2025 2025 12/31/2024 E.12.d Packet Pg. 460 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – Exhibit 6: Agency Capacity Narrative (Non-Profit Organizations Only) Describe the roles of key administrators, staff members, and volunteers within your agency that will implement the proposed project. In your description include experience, education, and licensing qualifications. Describe your agency’s experience in administering government and/or public funds. Describe your method to sustain project viability over the multi-year process if funding decreases. Instructions: Complete the table below by marking “YES” or “NO” to the questions listed below. Question: Example: Have you received federal funds in the past five years? Yes In the past ten years, has your organization ever had its nonprofit status revoked or withheld by the IRS, the Secretary of State, the State Attorney General, or the Franchise Tax Board? Has your organization been sued in the last five years? Are any of your managers or staff with fiscal responsibilities involved in litigation presently that has any bearing on fiduciary trust or employee relations? Have any unfavorable rulings been handed down by any court against your organization or Executive Director the last five years? Does your organization currently have any unresolved fiscal, reporting, or program issues with any of its funding sources? YES/ NO 12 No No As a recipient of more than $750,000 in federal funds, FSA is subject to single audit requirements using appropriate professional standards. 2024 FSA consistently searches for funding opportunities that could be a match for all agency programs, including the Senior Center and its activities. No No No 2025 Stephanie Soto is the Community Services Director and oversees the entire Center and program. E.12.d Packet Pg. 461 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – EXHIBIT 7: Civil Rights Laws Compliance and HUD Good Standing Answer the following questions. Has your organization been a past recipient of assistance under a HUD McKinney Act program or the HUD Single Family Property Disposition Homeless Program? If you have been a recipient under either of these programs, has your agency experienced any project or construction delay, HUD finding or outstanding audit that HUD deems serious regarding the administration of HUD McKinney Act programs or the HUD Single Family Property Disposition Homeless Program? If you answered “Yes”, please explain the circumstances and outcome below. Applicants must be in compliance with applicable civil rights laws and Executive Orders. Applications will be rejected if your agency has any of the following: (1) Any pending civil rights lawsuit instituted by the U.S. Department of Justice; (2) Any noncompliance with civil rights statutes, Executive Orders or regulations as a result of formal administrative proceedings, unless the applicant is operating under a HUD-approved compliance agreement designed to correct the area of noncompliance or is currently negotiating such an agreement; (3) Any unresolved Secretarial charge of discrimination issues under Section 810(g) of the Fair Housing Act, as implemented by 24 CFR 103:400; (4) Any adjudication of a civil rights violation in a civil action brought against the Organization by a private individual, unless the applicant is operating in compliance with a court order designed to correct the area of noncompliance or the applicant has discharged any responsibility arising from such litigation; (5) Any deferral of the processing of applications from the sponsor imposed by HUD under Title VI of the Civil Rights Act of 1964, the Attorney General’s Guidelines (28 CFR 50.3) or the HUD Title VI regulations (24 CFR 1.8) and procedures, or under Section 504 of the Rehabilitation Act of 1973 and HUD Section 504 regulations (24 CFR 8.57). If one or more of these situations exists with your Organization, please attach a brief description. 13 No No 2024 2025 E.12.d Packet Pg. 462 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) E-Signature Authorization San Bernardino County Community Development and Housing Departmemt Community Development Block Grant -Application In order to comply with all applicable federal grant regulations, a hard-copy of this E-Signature Authorization containing an original wet signature must be filed with the San Bernardino County Community Development and Housing (CDH) in order for the applicant to electronically sign the Community Development Block Grant (CDBG) application documents online. This authorization may only be completed by a registered owner, partner, executive officer, or authorized employee (with proof of authorization) of the applicant submitting this form and must contain an original signature to be submitted to the CDH. Authorization Agreement I am an owner, partner, executive officer, or duly authorized employee of the below-listed applicant and have authority to enter into agreements on behalf of the below-listed applicant. CDH may rely on the receipt of such agreements executed and delivered by facsimile or other electronic means as if the original had been received. The undersigned agrees that the electronic signatures appearing on documents submitted from the below-listed applicant are the same as handwritten signatures for the purposes of validity, enforceability and admissibility. By signing this Electronic Signature Authorization Agreement, I authorize the CDH to accept, via electronic submission, documents submitted from the below-listed applicant as required by the CDH's CDBG - Funding Application. I understand that CDH may change the CDBG application system from time to time. I agree that the below-listed applicant will electronically sign all documents requiring a signature related to the CDBG funding application. My signature on this form certifies that: I agree that entering my name in the CDBG funding application system constitutes my electronic signature. I understand that any information and documents submitted using my name is electronically certifying my signature. I understand that I am legally bound, obligated, and responsible by use of my electronic signature as much as I would be by my handwritten signature. I agree that I will protect my signature from unauthorized use, and that I will contact CDH immediately, upon discovery that my electronic signature has been compromised. I certify that my electronic signature is for my own use, and that I will not delegate it or share it with any individual. This request is effective immediately upon receipt by the CDH and will remain in effect until the end of the - CDBG funding cycle or I choose to cancel this request via written notification to the CDH. I understand that it is my responsibility to update and/or cancel this request under all circumstances, including my departure or terminated association with the below-listed applicant. By signing the E- Signature Authorization Form we certify that this agency will also comply with the following: Non-discrimination This organization will, through all possible means, ensure equal opportunity for all persons to receive services, to participate in the volunteer structure, and to be employed regardless of age, handicap, national background, race, religion, or sex. An existing sectarian nature of the agency shall not suffer impairment under this agreement, but participation in religious observances, rituals or services will not be required as a condition of receiving food, services, or shelter paid for by this grant. Accountability We commit this organization, if a grant is received, to provide all reports to the County as required; to expend monies only on eligible costs; to keep complete documentation (copies of all canceled checks, invoices, receipts, etc.) on all expenditures for a minimum of three years; to spend all funds and close out the program on the required date; to return any unused funds to the County to cooperate with monitoring or site visits, and; to provide complete documentation of expenses to the County, if requested, by the required date. We affirm that all information in this application is true and correct to the best of our knowledge and that the applicant under our authority will execute its responsibility under the proposed contract and adhere to all other applicable rules and regulations to the fullest extent possible. Non-collusion This proposal is genuine, and not sham or collusive, nor made in the interest or in behalf of any person not herein named; the proposer has not directly induced or solicited any other proposer to put in a sham proposal, or any other person, firm or corporation to refrain from submitting a proposal; the proposer has not in any manner sought by collusion to secure for him/herself an advantage over any other proposer. Applicant Information Agency Name: Federal Tax ID No.: Mailing Address: Phone No.: Email Address: Fax No: Authorized Signature Print Name: Print Title: Signature: Date: Please send the signed copy of this one page agreement to: San Bernardino County Community Development and Housing Department 215 North D Street, Suite 302, San Bernardino, CA 94215-0043 Attn: CDBG Application 14 12/11/2023 CEOCEO Development@fsaca.org (951) 686-1096(951) 686-1096 Family Service Association 2024 2024 2024 95-1803694 Cheryl-Marie Hansberger 2025 2025 2025 Cheryl-Marie Hansberger 21250 Box Springs Rd Suite 212 E.12.d Packet Pg. 463 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) Public Services Program Application Fiscal Year – CDBG Application Checklist (Non-Profit Organizations Only) Community-based organizations are required to include one copy of the items listed below. If you are not submitting these items at this time, please notify Community Development and Housing at (909) 501-0600 to make other arrangements. The following information is required before any contract or reimbursement can be completed. o Summary of agency’s current year General Operating Budget o List of agency’s Board of Directors, including names and addresses o Proof of existing non-profit/tax-exempt status (Letters from the FederalInternal Revenue Service and State Franchise Tax Board) o Current certificate of insurance and amounts covered o Organizational chart o Minutes of last Board meeting o Non- Profit agencies must be Registered in the System of AwardManagement (SAM) website. Agency cannot be funded if they have been debarred in the past. o Provide board minutes/letter that authorizes the executive director or program manager to run the project. If your application is funded you will be required to provide a copy of your last audit and your Articles of Incorporation and Bylaws must be on file. 15 2024 2025 E.12.d Packet Pg. 464 At t a c h m e n t : G R A N 2 4 P S - 0 5 3 F S A - S e n i o r C e n t e r ( 2 0 2 4 - 2 5 C o m m u n i t y D e v e l o p m e n t B l o c k G r a n t P r o g r a m ( C D B G ) ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Information on the Process of Implementation, the Difference Between a General Purpose and Special Purpose Tax, the Requirements for Adoption by City Council Action or Adoption by Initiative, the Requirement for Each Process, and the Timing Associated with Placing the Item on the Ballot PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: City staff recommends that the City Council: 1. Direct staff to prepare necessary resolutions and an ordinance to establish a general Transactions and Use Tax; 2. Provide direction to utilize a rate of 1.00% or some other rate. 2030 VISION STATEMENT: This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability” by identifying additional revenue sources. BACKGROUND: The City Councill convened an Ad-Hoc committee to review current funding and provide recommendations for future funding options. On December 12, 2023, an Ad Hoc Citizens Committee made a presentation to the City Council regarding potential funding sources for additional law enforcement services in Grand Terrace. The Ad Hoc Citizens Committee recommended that an ordinance be adopted enacting a General-Purpose Transactions and Use Tax with a specified tax of 1.00 %. The City Council, thereafter, directed staff to return with a follow-up presentation on the options and corresponding procedures to establish a Transactions and Use Tax at a Rate of 1.00 %. On January 09, 2024, Staff presented information relative to the process of implementation, the difference between a General Purpose and Special Purpose tax, the requirements for adoption by City Council action or adoption by initiative, the requirement for each process, and finally, the timing associated with placing the item on the ballot. G.13 Packet Pg. 465 The City Council requested clarification on considerations to placing the item on the ballot, fiscal impacts as well as costs to residents, potential costs associated with placing the item on the ballot. DISCUSSION: Process to have issue on the ballot State law “caps” the total cumulative sales tax rate at a maximum rate of 10.25% for the jurisdiction of Grand Terrace. 7.25% has already been accounted for by State, County and City sales tax rates. as allocated in the table below. The City’s current allocation is 1.00%. Taxing Jurisdiction Rate California state sales tax 6.00 % San Bernardino County sales tax 0.25 % Grand Terrace sales tax 1.00 % Special tax (San Bernardino County) 0.50 % Combined Sales Tax: 7.75 % G.13 Packet Pg. 466 A maximum, 2.50% remains available to be allocated. A maximum of 2.00% of the remaining 2.50% may be captured by the City via a Transactions and Use Tax. The current city-wide tax rate is 7.75 %, Such a tax may be either designated a General-Purpose tax or a Special Purpose tax. The proposed tax may be for a general purpose (i.e., a “general tax”) or specific purpose (i.e., a “special tax”). The tax may be initiated by the Council via ordinance or via citizen initiative. If the City Council adopts a Transaction and Use tax via ordinance: A General Purpose tax may be adopted under the follow conditions: · An ordinance proposing that tax is approved by a two-thirds vote of all members of that governing body, In this case, four (4) of the five (5) Councilmembers. · The tax is approved by a majority vote (1/2) of the qualified voters of the city · Must be consolidated with a general municipal election where the city council seats are up for election (unless specific emergency criteria are met.) The next general election will take place on November 5, 2024. · The City will not hold any special elections in 2024. A Specific Purpose tax may be adopted under the following conditions: · An ordinance proposing that tax is approved by a two-thirds vote of all members of that governing body, In this case, four (4) of the five (5) Councilmembers. · The tax is approved by two-thirds (2/3) vote of the qualified voters of the city voting in an election on the issue · The ordinance includes an expenditure plan describing the specific projects for which the revenues from the tax may be expended. · The measure may be introduced as a special tax in the next general election on November 5, 2024. · The City will not hold any special elections in 2024. Once the Council has determined to adopt either a General Purpose or Specific Purpose tax, the following items must be completed by the City Council: · Adoption of a resolution ordering submission to the qualified electors of the City of a certain measure relating to a transactions and use tax at the general election to be held on November 5, 2024. · Adoption of a resolution setting priorities for filing written argument(s) and directing the City Attorney to prepare an impartial analysis regarding the transactions and use tax measure. · Resolution providing for the filing of rebuttal arguments for a transactions and use tax measure submitted at the general election on November 5, 2024. G.13 Packet Pg. 467 · A first reading, by title only, of an ordinance relating to the proposed tax measure must take place. If the measure is approved, the second reading of the ordinance would be conducted after the election is certified. The last day to submit these adopted resolutions to the San Bernardino County Elections office is August 9, 2024. All four listed items must be completed before this deadline. The City Attorney recommended adoption of the necessary resolutions by the second meeting in June 2024, to provide sufficient time for the City Clerk to work with the County to satisfy this deadline. If the Transaction and Use tax is initiated via citizen initiative: If the City Council elects not to move forward with establishing a transactions and use tax via ordinance, the residents may pursue the tax by initiative measure as further discussed at the January 9, 2024 meeting and related staff report. If the petition satisfies the statutory requirements for an initiative, then the City Council shall do one of the following pursuant to the Elections Code: · Adopt the ordinance at a regular meeting. While adoption through initiative measure is typically allowed under state law, the City Attorney recommends against this option because the California Constitution prohibits the imposition of any tax until it is submitted to the electorate. · Submit the ordinance to the voters at the next regular election held not fewer than 88 days after the date of the order of the election. · Order a report at a regular meeting at which the certification of the petition is presented. o The city council may refer the proposed initiative to city staff for a report on the proposed measure’s potential impact on the city and any matters the council requests to be in the report, to be presented to the city council in the time prescribed by the council, but no later than 30 days from the date the petition is certified. If the report is requested, then adoption of the ordinance or submission to the voters is delayed until the report is received. Once the ordinance is submitted to the voters at the next regular election, it will only require a simple majority to approve the measure, even if it is a special tax. While Proposition 13 and Proposition 218 require a two-thirds vote for imposition of special taxes, this requirement does not apply to citizen initiative measures. Generally, Proposition 13 added Article XIII to the California Constitution and requires that, among other things, special taxes imposed by cities, counties and special districts be approved by two-thirds vote of the qualified electors of such district. Cal. Const. art. G.13 Packet Pg. 468 13A, § 4. Subsequently, Proposition 218 added article XIII C to the Constitution, which prohibits local governments from imposing, extending, or increasing any special tax until it is submitted to the electorate and approved by a two-thirds vote. Cal. Const. art. 13C, § 2(d). Several recent cases following Propositions 13 and 218, however, have found this supermajority requirement does not apply to the initiative power of the people to propose a special tax measure and approve it by a simple majority of votes. Most notably, in City of Fresno v. Fresno Building Healthy Communities, the City argued Propositions 13 and 218 required all special taxes, even those introduced by initiative power, to be approved by a two-thirds vote. 59 Cal. App. 5th 220, 227 (2020). In response, the court found Proposition 13 was directed against “spendthrift politicians” and its goal of restoring the government of, for and by the people would not be accomplished by interpreting the proposition to limit the people’s own power to raise taxes by initiative. Id. at 234. The court found no external language to suggest voters intended to limit their own power to raise taxes by initiative and expressed any reasonable doubts regarding one of the most precious rights in the democratic process should be resolved in favor of its exercise. Id. at 233-34. Further, the term “local government” in Proposition 218 was found to not include the electorate and therefore, inapplicable to initiative measures. Id. 238. Cases following Fresno Building Healthy Communities have consistently found a simple majority sufficient to enact initiative measures imposing special taxes. See e.g., City and County of San Francisco v. All Persons Interested in Matter of Proposition G, 66 Cal. App. 5th 1058, 1070-75 (2021) (finding special parcel tax for the San Francisco Unified School District that was placed on the ballot as a local citizens’ initiative only required a majority, not supermajority, vote to pass); Alliance San Diego v. City of San Diego, 94 Cal. App. 5th 419, 424 (2023) (finding an initiative measure raising occupancy taxes for overnight lodging facilities only required a simple majority to pass); Howard Jarvis Taxpayers Assn. v. City and County of San Francisco, 60 Cal. App. 5th 227, 230-34 (2021) (adopting reasoning in prior case law and finding the initiative measure imposing additional tax on commercial rents to fund early childcare education did not require a two-thirds majority to pass); Jobs & Housing Coalition v. City of Oakland, 73 Cal. App. 5th 505, 508 (2021) (finding a citizen initiative imposing a special parcel tax was enacted when it received a majority of the vote). Summary The chart below provides a simplified summary of the voting requirements by voters for the two potential options: (1) Imposition of a transactions and use tax by the City Council; or (2) Imposition of transactions and use tax by initiative process. City Council Initiated Measure Citizen Initiative Measure General Tax Majority Vote Majority Vote Special Tax 2/3rds Vote Majority Vote G.13 Packet Pg. 469 Revenue stream breakdown The City Sale Tax consultant estimates that a transaction and sales tax of 1.00% will yield additional revenues of $1,965,000. The transaction portion of the tax will generate new revenues to the City which had previously be allocated to other jurisdictions. In our current tax state, the City receives sales taxes on transactions that occur inside the City limits, and a portion of the County pool of online sales that is proportionate to the City sales taxes relative to the entire County. The proposed Transaction tax will reallocate the taxes for major purchases from the point of sale to the point of use. For example: Currently, if a resident purchases a vehicle from a dealership in another city, the sales taxes are allocated to point of sale, (the city of purchase). With the transaction tax in place, those sales taxes are allocated to the point of use, which is the residents home City. The transaction portion of the taxes are estimated to reallocate $525,000 for Autos and Transportation, as well as $300,000 for general merchandise for a total of $825,000 in revenue allocated to the City that had previously been allocated to other jurisdictions. This does not place an additional sales tax burden upon Grand Terrace residents. This leaves $1,140,000 in new revenues generated from sales in the City. Approximately 30% of the remaining taxes are sales from business to business. These are sales by businesses physically located in Grand Terrace to businesses primarily located outside of Grand Terrace. This will generate approximately $228,000 in new revenue. As such, these sales do not place an additional sales tax burden upon Grand Terrace residents. This leaves $912,000 in sales taxes potentially generated by resident transactions. Approximately 20% of the remaining taxes are sales from restaurants and eating establishments. We do not have accurate economic models that tell us what percent of the total related to resident dining. Most of the restaurants in the City are either fast food or fast casual. Fast food restaurants earn approximately 65% of their revenue through their drive throughs between 11:30am and 1:30pm. This is the lunch crowd. We assume that most residents are at work and their children are in school; a significant portion of this is driven by non-resident activities. Fast casual dining establishments are a smaller percentage of the total sales tax revenues, and we assume that a larger share of their revenues are derived from resident activity. With these two factors in mind, we estimate that the restaurant sector has approximately 30% non-resident sales. Total restaurant taxes are $244,000. 30% of that is paid by non-residents reducing the sales tax burden by $73,200. This leaves $838,800 in sales taxes potentially generated by resident transactions. G.13 Packet Pg. 470 Approximately 20% of the remaining taxes are sales from fuel and service stations. We do not have accurate economic models that tell us what percent of the total related to fuel and service stations. Our fuel stations are located along major thoroughfares and are convenient for Highgrove residents. Additionally, individuals who work in the City frequently fuel as it is convenient for them to do so and not fuel in the early morning or late evening in their home city. With these factors in mind, we estimate that the fuel and service station sector has approximately 30% non-resident sales. Total fuel and service sales are $105,000. 30% of that is paid by non-residents reducing the sales tax burden by $31,500. This leaves $807,300 in sales taxes potentially generated by resident transactions. The City has approximately 13,000 residents. If we divide $807,300 by the number of residents, we find that each resident has an additional annual burden of $62.10. Dividing by 12 produces $5.18 which is the monthly additional sales tax burden per resident. Yield from 1% sales and transaction tax 1,965,000.00 Reallocated transaction revenue (825,000.00) New total $1,140,000.00 Business to Business Sales (228,000.00) New total $912,000.00 Total Restaurant taxes 244,000.00 30% non-resident contribution (73,200.00) New total $838,800.00 Total fuel taxes 105,000.00 30% non-resident contribution (31,500.00) New total $807,300.00 Number of residents 13,000 New annual sales tax burden per resident $62.10 New monthly sales tax burden per resident $5.18 G.13 Packet Pg. 471 Cost for City Sponsored Ordinance In 2022, the City of Grand Terrace placed an initiative on the ballot by ordinance to impose a Transit Occupancy Tax relating to tax on short term rentals. The City engaged a consultant for polling and public engagement at a cost of $55,000. The services provided were adequate to have the measure pass by a small majority. It is staff’s opinion that the same level of services would not be adequate for a Transaction and use tax initiative. In 2023, the City of Colton passed a 1.00% transaction and use tax initiative. Colton staff engaged consulting service to manage public outreach, education, social media interactions, and polling. Colton staff has indicated that the cost was approximately $200,000. Currently the City of Chino has an emergency ordinance in place to place a transaction and use tax on the March ballot. Chino has engaged multiple consultants to manage each portion of their campaign, public outreach, community engagement, social messaging, and polling. Chino staff has indicated that they have spent approximately $200,000 to date on their campaign and expect some additional costs to be incurred. Given the complex nature of educating the public on such a venture and the resources necessary to engage in a professional manner, Staff feels that an approach similar to that of Colton and Chino is warranted. This would require Grand Terrace to expend approximately $200,000 for consulting services related to the measure. In light of the fact that revenues from additional taxes are expected to be in the range of $2,000,000 per year in perpetuity, staff feels that this is a reasonable investment with solid rate of return for the investment. Funds are available from General Fund Reserves, uncommitted funding from the Fire Station sale, reallocation of funds from the 2011 Bond proceeds, or any combination of these sources. RECOMMENDATION: City staff recommends that the City Council: Direct staff to prepare necessary resolutions and an ordinance to establish a general Transactions and Use Tax; Provide direction to utilize a rate of 1.00% or some other rate. FISCAL IMPACT: Approximately $28,000 in City Attorney’s fees to prepare the necessary resolutions and ordinance and costs for public outreach and education on the measure. Approximately $200,000 for consulting services related to the measure. G.13 Packet Pg. 472 APPROVALS: Konrad Bolowich Completed 02/08/2024 8:13 AM Finance Completed 02/08/2024 8:45 AM City Manager Completed 02/08/2024 3:16 PM City Council Pending 02/13/2024 6:00 PM G.13 Packet Pg. 473 AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: City Council to Submit Its Opposition to the Public Utilities Code Tax Provision, Section 739.9 Embeddded into Assembly Bill 205 (2022) PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: That the City Council Submit its Opposition to Public Utilities Code Tax Provision, Section 739.9 Embedded into Assembly Bill 205 (2022) 2030 VISION STATEMENT: This staff report supports our 2030 Mission: To preserve and protect our community and its exceptional quality of life through thoughtful planning, within the constraints of fiscally responsible government. BACKGROUND/DISCUSSION: At the City Council’s January 9, 2024, regular meeting, Council Member Kenneth Henderson requested that opposition to high fixed charges on investor-owned utility bills be brought back for discussion under future agenda items and the City Council voted unanimously to do so. Last year, the Legislature passed AB 205, a budget trailer bill that contained a little-noticed provision to mandate a fixed charge on all ratepayers. The provision removed the previous fixed charge cap of $10 per month, making the potential fixed charge unlimited. The bill was passed in three days with no public discussion. Many state lawmakers now admit they did not even know this provision as in AB 205. Now, the state’s three Investor-Owned Utilities and some organizations have proposed the highest fixed charges in the country – between $30 and $70 per month, or three to seven times the national average. Supporters of a high fixed charge argue that it is necessary to pay for wildfire preparedness, updates to the electrical grid, and the cost of electrification throughout the state. While we support the goal of electrifying vehicles and buildings, imposing high fixed charges is a false solution. Analysis from the Clean Coalition (Attachment 1) and several utility experts (Attachment 2) demonstrates that high fixed charges improve the economics of electrification marginally at best. G.14 Packet Pg. 474 Instead, high fixed charges could end up punishing households that use less energy and encouraging high consumption. As demonstrated in an article by CALPIRG and Environment California (Attachment 3), the higher fixed charges and lower volumetric charges proposed for customers could end up reducing bills for high electricity users and increasing bills for lower electricity users. That means bills will go up for millions of working- and middle-class people who live in apartments, condominiums, and smaller homes - especially those who have tried to use less energy, by investing in more energy efficient appliances. High fixed charges incentivize energy waste and discourage energy conservation, efficiency, and rooftop solar. This is a reversal of the state’s long tradition of incentivizing behavior that benefits society and helps us hit our climate and energy policy goals. The data shows these negative impacts occur even with a $30 per month fixed charge. This has a critical economic impact beyond the individual consumer. When a household uses less energy, not only does that household save, but it also contributes to lower costs for the entire system, which benefits all customers. Incentivizing higher consumption on the other hand could consequently drive-up costs overall and in doing so could make high electricity bills even worse. If the goal is really to bring down electricity bills, rather than just rearrange who pays what, what we need to do is get at solutions that bring overall costs down, like lowering utility profit levels, which are higher than profits rates across the country. In the meantime, the Legislature should immediately correct their mistake and put a cap back on the fixed charge that is in line with the national average of around $11/month. A coalition of over 200 organizations have signed on opposing the high fixed charge, including the California Environmental Justice Coalition, Western Center on Law & Poverty, Tenants Together, California Interfaith Power and Light, Center for Biological Diversity, and more (Attachment 4). In addition, this month, 22 Assemblymembers sent a strong letter (Attachment 5) to the CPUC sharply criticizing the proposed high fixed charge. Senator Josh Becker and Assemblymember Marc Berman authored a strong op/ed with a similar message. If the City Council desires to oppose this high fixed charge, then staff will sign on to the letter identified in Attachment 4 as the City of Grand Terrace’s opposition to the high fixed charge requesting that the utility tax identified in AB 205 (2022) be repealed. FISCAL IMPACT: There is no fiscal impact to the General Fund by opposing Assembly Bill 205. ATTACHMENTS: • Attachment 1 - R.-22-07-005-Clean-Coalition-Rebuttal-Testimony(PDF) • Attachment 2 - ex_parte_comments_to_the_cpuc_on_igfc_5-30-23(PDF) • Attachment 3 - New proposed income-based fixed charges (PDF) • Attachment 4 - Letter to California state legislators_ Repeal Utility Tax (PDF) G.14 Packet Pg. 475 • Attachment 5 - CPUC Fixed Charge 10.27 Letter (PDF) APPROVALS: Konrad Bolowich Completed 01/25/2024 10:14 AM City Manager Completed 02/08/2024 3:16 PM City Council Pending 02/13/2024 6:00 PM G.14 Packet Pg. 476 G.14.a Packet Pg. 477 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 478 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 479 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 480 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 481 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 482 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 483 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 484 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 485 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 486 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 487 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 488 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 489 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 490 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 491 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 492 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 493 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 494 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 495 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 496 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 497 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 498 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 499 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 500 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 501 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 502 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 503 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 504 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 505 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 506 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 507 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 508 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 509 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 510 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 511 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 512 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 513 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 514 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 515 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 516 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 517 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 518 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 519 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 520 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 521 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 522 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 523 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 524 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 525 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 526 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 527 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 528 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 529 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 530 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 531 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 532 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 533 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 534 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 535 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 536 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 537 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 538 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 539 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 540 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 541 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 542 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 543 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 544 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.a Packet Pg. 545 At t a c h m e n t : A t t a c h m e n t 1 - R . - 2 2 - 0 7 - 0 0 5 - C l e a n - C o a l i t i o n - R e b u t t a l - T e s t i m o n y ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.b Packet Pg. 546 At t a c h m e n t : A t t a c h m e n t 2 - e x _ p a r t e _ c o m m e n t s _ t o _ t h e _ c p u c _ o n _ i g f c _ 5 - 3 0 - 2 3 ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.b Packet Pg. 547 At t a c h m e n t : A t t a c h m e n t 2 - e x _ p a r t e _ c o m m e n t s _ t o _ t h e _ c p u c _ o n _ i g f c _ 5 - 3 0 - 2 3 ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.b Packet Pg. 548 At t a c h m e n t : A t t a c h m e n t 2 - e x _ p a r t e _ c o m m e n t s _ t o _ t h e _ c p u c _ o n _ i g f c _ 5 - 3 0 - 2 3 ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.b Packet Pg. 549 At t a c h m e n t : A t t a c h m e n t 2 - e x _ p a r t e _ c o m m e n t s _ t o _ t h e _ c p u c _ o n _ i g f c _ 5 - 3 0 - 2 3 ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.b Packet Pg. 550 At t a c h m e n t : A t t a c h m e n t 2 - e x _ p a r t e _ c o m m e n t s _ t o _ t h e _ c p u c _ o n _ i g f c _ 5 - 3 0 - 2 3 ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.b Packet Pg. 551 At t a c h m e n t : A t t a c h m e n t 2 - e x _ p a r t e _ c o m m e n t s _ t o _ t h e _ c p u c _ o n _ i g f c _ 5 - 3 0 - 2 3 ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 552 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 553 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 554 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 555 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 556 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 557 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 558 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 559 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.c Packet Pg. 560 At t a c h m e n t : A t t a c h m e n t 3 - N e w p r o p o s e d i n c o m e - b a s e d f i x e d c h a r g e s ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) RE: Repeal “Utility Tax” provision NOW before it increases utility bills on millions of working and middle class families and undermines conservation efforts across California Complete this form to sign on to this letter Fact Sheet Scroll past logos to read the full letter G.14.d Packet Pg. 561 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.d Packet Pg. 562 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.d Packet Pg. 563 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.d Packet Pg. 564 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.d Packet Pg. 565 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.d Packet Pg. 566 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) G.14.d Packet Pg. 567 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Complete this form to sign on to this letter Fact Sheet RE: Repeal “Utility Tax” provision NOW before it increases utility bills on millions of working and middle class families and undermines conservation efforts across California To: California State Legislature and Gov. Gavin Newsom We, the undersigned organizations and community leaders, are writing in strong opposition to the “Utility Tax” provision embedded into Budget Trailer Bill AB 205 (2022). We object to the un- democratic and opaque way in which the Utility Tax was enacted, passed in three days without any public hearings or discussion. The people of California deserve a voice in any major policy change with such wide-ranging consequences. The legislature needs to immediately repeal Public Utilities Code Section 739.9, through a current Budget Trailer or other bill. G.14.d Packet Pg. 568 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Section 739.9 requires the California Public Utilities Commission (CPUC) to add a fixed charge to electricity bills based on household income. Because of this provision, the utilities and other organizations (NRDC, TURN, and Public Advocate) have proposed the highest fixed charges in the country, between $30 to $70 per month. That would be three to seven times the national average for such a fixed charge. These proposals would function as a Utility Tax that would apply to all residential customers of PG&E, SCE, SDG&E, and CCAs. In contrast to the claims made by Utility Tax proponents, the Utility Tax will hurt working families. An in-depth analysis of these Utility Tax proposals found that they would have the following negative consequences: ● Millions of Californians who live in apartments, condos, and small homes that use less energy would see their utility bills increase. Californians already suffer under the highest electricity bills in the country. This would have devastating consequences for working families. ● High fixed charges discourage all forms of energy conservation, such as turning off the lights, energy efficiency, or installing new windows, rooftop solar, and batteries. For years, working families have practiced energy conservation as a way to lower their monthly bills. The Utility Tax proposals will take control away from these households, degrading their ability to manage their energy bill. ● The Utility Tax proposals will NOT incentivize electrification as proponents claim. In fact, it will still be cheaper for most consumers to stick with natural gas under any of the proposals. Utility rates and fees only ever go up, not down. The fixed charge provision of AB 205 completely lifted the cap on the size of the Utility Tax and says nothing about freezing or lowering electricity rates. Thus, the promise of lower volumetric rates in exchange for the Utility Tax will be temporary. Both rates and the Utility Tax will continue to increase over time, wiping out any initial benefit for CARE and FERA customers, and keeping ratepayers trapped in unsustainable electricity bills. The Utility Tax entrenches the problem of high electricity prices, rather than solving it. Electricity prices are too high mainly due to the increasing costs of unnecessary long distance power lines, liability when those lines create wildfire risks, and generous utility profits that drive this spending. A Utility Tax does not fix that underlying problem because it just rearranges who pays what—harming millions of working class people in the process. The true solution to stabilizing the high cost of electricity is to reduce our overdependence on long distance power lines through greater conservation and local clean energy. Finally, the income verification of all customers raises big privacy and data security issues that have not been thoroughly aired. Utility Tax proponents claim that the Utility Tax will lower bills on low income households. This does not tell the whole story. While CARE and FERA customers will see relatively small and temporary bill decreases, households above the cutoff for those programs who live in apartments, condos and smaller homes, will see bill increases. This includes millions of low income Californians, as well as moderate income households, and is unacceptable. We call on the state Legislature to address the problems outlined in this letter by immediately repealing Public Utilities Code Section 739.9. We are watching and intend to hold state lawmakers accountable for the outcome of this matter. Thank you, G.14.d Packet Pg. 569 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Center for Biological Diversity Environmental Justice Coalition for Water Central Coast Climate Justice Network (C3JN) Western Center on Law and Poverty Green the Church COFEM (Federation of Clubs and Associations of Michoacanos in North America) California Latino Environmental Advocacy Network Indivisible CA Green Team California Environmental Justice Coalition San Joaquin Urban Native Council California Interfaith Power & Light California Alliance for Retired Americans Howard Jarvis Taxpayers Association Lutherans Restoring Creation Todos Unidos Monterey County Renters United Oakland Education Association Tenants Together East Bay Housing Organizations (EBHO) Madera Coalition for Community Justice Gallaher Community Housing CADEM Renters Council Long Beach Gray Panthers Environmental Working Group Bridge Housing Clean Coalition Elders Climate Action, SoCal Chapter Third Act Sacramento Social Eco Education Federación de Guanajuatenses Cafe Coop Greater Harvest Church of God in Christ Anahuak Youth Soccer Association Federación de Clubes y Asociaciones Federación Duranguenese USA Organización Regional de Oaxaca Por El Respeto y La Defensa De Nuestra Cultura Federación de Nayaritas en Estados Unidos Federación de Clubes Colima Sonora USA SanDiego350 350 Bay Area Action Solar Rights Alliance Indivisible Alta Pasadena Indivisible Resistance Northridge G.14.d Packet Pg. 570 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Rooted in Resistance (Indivisible) Ban SUP (Ban Single use plastic) Citizens' Climate Lobby, Santa Clarita chapter Indivisible Ventura Indivisible Santa Cruz County Indivisible Stanislaus Indivisible Sacramento Progressive Democrats of the Santa Monica Mountains PDA-CA (Progressive Democrats of America-California Livermore Indivisible Electric Vehicle Association California Central Coast Chapter So Cal 350 Stand Strong LA Indivisible Indivisible Sonoma County Indivisible Westside LA 350 Conejo Indivisible CA-34 Feminists in Action, Los Angeles Environmental and Political Action Alerts Valley Women’s Club of San Lorenzo Valley Indivisible Ross Valley Indivisible San Pedro Basin and Range Watch Democratic Club of West Orange County San Francisco Bay Physicians for Social Responsibility Neighbors for Progressive Action SAVE THE FROGS! Indivisible San Jose Center for Community Energy Climate Action Mendocino California Climate Voters Californians for Western Wilderness Albany Climate Action Coalition Bay Area Clean Air Coalition San Joaquin Valley Dems Club Resource Renewal Institute Santa Cruz Climate Action Network CBFD Indivisible Stand.earth Coalition for Environmental Equity and Economics 350 Ventura County Climate Hub Alliance of Nurses for Healthy Environments Climate First: Replacing Oil & Gas (CFROG) UU Church of Palo Alto CleanEarth4Kids.org G.14.d Packet Pg. 571 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Sunflower Alliance Grassroots Institute - Climate Crisis Workgroup Designing Accessible Communities Sonoma County Climate Activist Network (SoCoCAN!) Courageous Resistance and Indivisible of the Desert Climate Hawks Vote 350 Santa Barbara Eco Chicos Wellstone Democratic Renewal Club Equity Transit Long Beach Alliance for Clean Energy Hammond Climate Solutions Foundation Redwood Energy Morongo Basin Conservation Association Long Beach Community Table Extinction Rebellion San Francisco Bay Area Solar United Neighbors North County Climate Change Alliance Samuel Lawrence Foundation 350 Sacramento The Climate Reality Project San Diego Chapter Sustainable Claremont Endangered Habitats League Tubb Canyon Desert Conservancy Glendale Environmental Coalition Public Power San Diego Greening Committee of Kehilla Community Synagogue Climate Reality Project Orange County Chapter Hang Out Do Good (HODG) 350 Contra Costa Action Mother’s For Peace Climate Reality Project Ventura County Invisible Resisters Walnut Creek Santa Cruz for Bernie Californians for Energy Choice Silicon Valley Youth Climate Action RootsAction ZEV2030 Pacific Energy Policy Center Humboldt Progressive Democrats WEHANA (West Harmon Area Neighborhood Association) Ballona Institute Defend Ballona Wetlands Coastal Lands Action Network Our City San Francisco G.14.d Packet Pg. 572 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) California Alliance for Community Energy Reform & Sustain Change Begins With ME The Climate Justice Team of First UU of San Diego San Luis Obispo Mothers for Peace Pink Panthers SLO Climate Coalition Eagle Architects San Joaquin Valley Democratic Club Green New Deal at UC San Diego Democratic Socialists of America - San Diego Business for Good San Diego Better APC Elected Officials to Protect America (EOPA) - Code Blue Fossil Free California Citizens' Climate Lobby Santa Cruz Chapter Palos Verdes Democrats San Diego Veterans For Peace Youth Will Extinction Rebellion Los Angeles Congregational Community Church of Sunnyvale (UCC) BQuest Foundation Climate Action Campaign Indivisible East Bay Indivisible San Francisco San Francisco Climate Emergency Coalition 350 Southland Legislative Alliance Project Green Home In Good Company East Los Angeles Boyle Heights Coalition LIFT Economy First Church Berkeley UCC Activist San Diego Food & Water Watch Elders Climate Action, NorCal Chapter Orinda Community Church NSI Services, Inc Davis United Methodist Church Service & Justice Ministry Rachel Carson Returns Carlsbad Sustainability Coalition Eagle Architects Citizens Climate Lobby San Diego Central Martin Luther King Jr. Freedom Center Comité Pro Uno Peace Action G.14.d Packet Pg. 573 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Inland Equity Community Land Trust Friends of the Climate Action Plan QuitCarbon AjO Verdani Partners Berkeley Electrification Working Group Ecology Center Napa Climate NOW! South Bay Sustainable Communities Network Acterra: Action for a Healthy Planet Sunrise Movement LA The Society of Fearless Grandmothers-SB Placer People of Faith Together Placer Earth Care Action Urban Habitat CHN, Sacramento Climate Coalition, SacAct SFUU Social Justice Committee SocioEnergetics Foundation Saddles That Fit! Extinction Rebellion America - Sacramento The Community Action League (TCAL) Peralta Federation of Teachers Mercy Housing California East Area Progressive Democrats UU Fellowship of Sunnyvale – Social Justice Team Stop OAK Expansion Coalition West Berkeley Alliance for Clean Air and Safe Jobs Catholic Charities of the Diocese of Stockton, Environmental Justice Program API Equality-LA Americans for Democratic Action of Southern California Siskiyou Habitat for Humanity Comite Civico del Valle Greenpeace Climate Resilient Communities Tri-Valley CAREs Plastic Pollution Coalition The Last Plastic Straw LaPlaca and Associates LLC Showing Up for Racial Justice Ventura County East Valley Indivisibles PowerCA Action 100 Black Men of Long Beach Social Compassion in Legislation Ashby Village Californians for Disability Rights Inc G.14.d Packet Pg. 574 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Cool OC 350 Silicon Valley G.14.d Packet Pg. 575 At t a c h m e n t : A t t a c h m e n t 4 - L e t t e r t o C a l i f o r n i a s t a t e l e g i s l a t o r s _ R e p e a l U t i l i t y T a x ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Letter to President Reynolds October 27, 2023 Page 1 October 27, 2023 Alice Busching Reynolds, President California Public Utilities Commission 505 Van Ness Avenue San Francisco, CA 94102 RE: Income Graduated Fixed Charge Rate Design President Reynolds: We are writing in response to the California Public Utilities Commission’s (CPUC) income graduated fixed charge rate designs proposed in regulatory proceeding (R.) 22-07-005 following a provision in Assembly Bill (AB) 205 (Budget, Chapter 61, Statutes of 2022) that authorizes regulated utilities to charge residential energy customers a fixed, income-graduated rate. We have significant concerns about the direction of the CPUC’s implementation of AB 205 and its potential negative impacts on our constituents and believe that, at a minimum, more time will be needed to consider such a significant and far reaching change in policy that will significantly impact rate payers with only a theoretical benefit. First, the CPUC has rejected a request to hold public participation hearings regarding major changes to the state’s electric rate structure. Given the breadth of impact to rate payers, it is only fair, in the name of transparency and disclosure, that a full, public process be conducted to hear from all parties that will be affected, not just those who are party to the proceeding. Further, given that the CPUC has had authorization to implement a fixed rate charge since 2013, with the passage of AB 327 (Perea, Chapter 611, Statutes of 2013), but has felt no urgency to do so for the past ten years, we believe there is ample time to open this proceeding to the public. Second, we are concerned that this proceeding, and its subsequent decision, could ultimately steer the state away from a conservation focus to that of increased electrical consumption, by sending the wrong signal to rate payers. With these proposals, there would be a decoupling of electricity policy from the volumetric and conservation-based model that the CPUC has long been promoting. For instance, even under some of the lower proposed flat rates, analyses show that those who consume more electricity, such as a single family home with pool, will receive a discount at the expense of a low electricity user, such as an apartment renter. There is a very real possibility that these proposals could discourage the kind of conservation that is needed in order to avoid rolling blackouts that have threatened the state too often over the past several years. Building on this departure from volumetric rates, a significant amount of analysis has been conducted on the impact of these proposals on both California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance Program (FERA) rate payers, as is appropriate. Lower income Californians were meant to benefit from an income graduated fixed charge, however analysis shows that rate payers just outside of the CARE and G.14.e Packet Pg. 576 At t a c h m e n t : A t t a c h m e n t 5 - C P U C F i x e d C h a r g e 1 0 . 2 7 L e t t e r ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Letter to President Reynolds October 27, 2023 Page 2 FERA income levels who consume less electricity will ultimately pay more for their electricity than a large electricity user. It’s important to consider the real impacts of these theoretical discussions on rate payers that may already be living paycheck to paycheck. A $30 fixed rate fee for these rate payers would result in their electrical bill costing an extra $360 per year, to which that rate payer would see no direct benefit and would have no ability to lower through conservation or “time of use” adjustments. Additionally, we are concerned about this proceeding’s potential impact to both current and future rooftop solar and battery users. The Legislature has voted repeatedly to encourage rooftop solar and the CEC is now requiring rooftop solar on new homes. These distributed solar energy systems combined make up the largest clean energy market in California, generating 24 million megawatt-hours of electricity every year. The proceeding must carefully contemplate the impact on this distributed, renewable energy resource and whether a fixed rate fee would impact existing policies in this area. We are still waiting to understand the impacts of the CPUC’s Net Billing Tariff on roof-top solar and battery market which went into effect this past April. While we understand that a fixed charge may be needed, we do not believe a policy shift of this magnitude should happen without sufficient time for a wide array of public input. Instead, we request that the CPUC, at a minimum, extend the timeline for the proceeding, allowing for the Commission to hold public participation hearings on this proceeding. Further, the majority of the current proposals are unreasonable and the Commission must ensure that any fixed rate being considered be in line with national rates. We appreciate your consideration of this request and look forward to engaging with the CPUC on this crucial decision. Sincerely, __________________________ ____ ______________________ JACQUI IRWIN DAWN ADDIS Assemblymember, 42nd District Assemblymember, 30th District __________________________ __________________________ CECILIA AGUIAR- CURRY DAVID ALVAREZ Assemblymember, 4th District Assemblymember, 80th District G.14.e Packet Pg. 577 At t a c h m e n t : A t t a c h m e n t 5 - C P U C F i x e d C h a r g e 1 0 . 2 7 L e t t e r ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Letter to President Reynolds October 27, 2023 Page 3 ________________________ __________________________ REBECCA BAUER- KAHAN MARC BERMAN Assemblymember, 16th District Assemblymember, 23rd District __ ________________________ ____ ______________________ TASHA BOERNER MIA BONTA Assemblymember, 77th District Assemblymember, 18th District ____ ______________________ __________________________ DAMON CONNOLLY LAURA FRIEDMAN Assemblymember, 12th District Assemblymember, 44th District __________________________ __________________________ TIM GRAYSON GREGG HART Assemblymember, 15th District Assemblymember, 37th District __________________________ __________________________ EVAN LOW BRIAN MAIENSCHEIN Assemblymember, 26th District Assemblymember, 76th District G.14.e Packet Pg. 578 At t a c h m e n t : A t t a c h m e n t 5 - C P U C F i x e d C h a r g e 1 0 . 2 7 L e t t e r ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) Letter to President Reynolds October 27, 2023 Page 4 __________________________ __________________________ AL MURATSUCHI BLANCA PACHECO Assemblymember, 66th District Assemblymember, 64th District _ _________________________ __________________________ DIANE PAPAN GAIL PELLERIN Assemblymember, 21st District Assemblymember, 28th District __________________________ __________________________ PILAR SCHIAVO PHIL TING Assemblymember, 40th District Assemblymember, 19th District __________________________ __________________________ CHRIS WARD AKILAH WEBER Assemblymember, 78th District Assemblymember, 79th District G.14.e Packet Pg. 579 At t a c h m e n t : A t t a c h m e n t 5 - C P U C F i x e d C h a r g e 1 0 . 2 7 L e t t e r ( R e p e a l P u b l i c U t i l i t i e s C o d e S e c t i o n 7 3 9 . 9 ) AGENDA REPORT MEETING DATE: February 13, 2024 Council Item TITLE: Priority Projects FY 2023-2024_FY2024-2025 Review PRESENTED BY: Konrad Bolowich, City Manager RECOMMENDATION: That the City Council review and provide feedback and direction as appropriate. 2030 VISION STATEMENT: This staff report supports Goal #1, Ensure our Fiscal Viability and supports Goal #5, Develop and Implement Cost Effective Proactive Communication Program BACKGROUND: As part of the FY 2023-24 budget discussion, the City Council reviewed its priority projects and recommendations were provided to staff. Subsequently, the Council engaged in multiple workshops to develop a list of priorities to provide guidance on allocation of resources. DISCUSSION: The FY 2023-24 mid-year budget review is in progress, as well as preliminary work on the FY 2024-25 budget. This is an opportunity to review the priorities and allow Council to reorder those priorities, remove specific items, or add new items to the list. ENVIRONMENTAL IMPACT None FISCAL IMPACT: None ATTACHMENTS: • 2-13-24 Priority Projects (PDF) G.15 Packet Pg. 580 APPROVALS: Konrad Bolowich Completed 02/06/2024 1:29 PM City Manager Completed 02/07/2024 2:36 PM City Council Pending 02/13/2024 6:00 PM G.15 Packet Pg. 581 PRIORITY PROJECT LIST Priority Project 1 Storm Drain Master Plan 2 Mt. Vernon Slope 3 Housing Element Update 4 Street and Sidewalk Repair 5 Automated License Plate Reader Cameras (ALPRs) 6 Blue Mountain Trail Land Acquisition 7 Barton Rd Guardrail Replacement 8 Establish Youth Programs 9 Street Sign Replacement 10 Barton/Mt. Vernon Landscape Update 11 Neighborhood Watch Program 12 West Barton Bridge Replacement 13 General Plan (safety, EOP, Haz Mitigation, Land Use) Update 14 La Cadena Median G.15.a Packet Pg. 582 At t a c h m e n t : 2 - 1 3 - 2 4 P r i o r i t y P r o j e c t s ( P r i o r i t y P r o j e c t s F Y 2 0 2 3 - 2 0 2 4 _ F Y 2 0 2 4 - 2 0 2 5 )