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HomeMy WebLinkAbout04-21-21 agenda packetIMPORTANT COVID-19 NOTICE In an effort to protect public health and prevent the spread of COVID-19 and to enable appropriate social distancing , the Mayor and City Council meeting is not open f or public attendance at this time. All meeting s will be held via tele-conf erence. To view the live meeting: Select the link to view the live-stream on the City’s website: https://sbcity.tiny.us/MCC042121 or Spectrum & Frontier customers may view the broadcast on Channel 3. You may also view the archived video on the City’s website the day after the meeting. To provide public comments: Submit a written comment online via http://sbcity.tiny.us/comments ; Or Email your written comment to publiccomments@sbcity.org by 4:00 p.m. on the day of the scheduled meeting. The subject line of your email should i nclude the meeting date, w hether your comment is for the Special Meeting, Closed Session, or Open Session, and w hether it is for public comment or for a specific agenda item. Example: 04/21/21 – Open Session - Agenda Item No. 5 To provide public comments for a Public Hearing: Send an email to publiccomments@sbcity.org by 4:00 p.m. the day of the scheduled meeting. Include your name, telephone number, and the agenda item number. At the time of the requested agenda item, the city Clerk will call the commenter. Each person will be allowed to speak for up to three minutes. W ritten comments will be provided to the Mayor and City Council prior to the meeting and will be posted online f or public review, but will not be read aloud. Voicemail comments will be played aloud during the appropriate public comment portion of the meeting. Please note that written & recorded comments received after the deadline will not be included in the record until the next regular meeting. Recorded comments received past the deadline will not be played during the meeting. T o view PowerPoint presentations, written comments, or any revised documents for this meeting date select the link below: https://sbcity.tiny.us/agendabackup042121 Or visit the City Clerk’s page: From the City’s homepage www.sbcity.org select the Government category-> City Clerkon the Navigation menu select Search for Records Online-> Council Agendas->Current Year 2021->Meeting Date CITY OF SAN BERNARDINO AGENDA FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY WEDNESDAY, APRIL 21, 2021 5:30 PM – CLOSED SESSION 7:00 PM – OPEN SESSION VIA ZOOM • SAN BERNARDINO, CA 92410 • WWW.SBCITY.ORG Theodore Sanchez John Valdivia Damon L. Alexander COUNCIL MEMBER, W ARD 1 MAYOR COUNCIL MEMBER, WARD 7 Sandra Ibarra Robert D. Field MAYOR PRO TEM, W ARD 2 CITY MANAGER Juan Figueroa Sonia Carvalho COUNCIL MEMBER, W ARD 3 CITY ATTORNEY Fred Shorett Genoveva Rocha COUNCIL MEMBER, W ARD 4 CITY CLERK Ben Reynoso COUNCIL MEMBER, W ARD 5 Kimberly Calvin COUNCIL MEMBER, W ARD 6 Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. o Written comment on any item may also be submitted to the City Clerk to be included in the meeting record. It will not be read aloud by the City Clerk. o Those who wish to speak on public or quasi-judicial hearing items will have three minutes for each item. o Please contact the City Clerk’s Office (909) 384-5002 two working days prior to the meeting for any requests for reasonable accommodation to include interpreters. o All documents for public review are on file with the City Clerk’s Office or may be accessed online by going to www.sbcity.org. Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 4/16/2021 CALL TO ORDER Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez    Mayor Pro-Tem, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Ben Reynoso    Council Member, Ward 6 Kimberly Calvin    Council Member, Ward 7 Damon L Alexander    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    5:30 P.M. CLOSED SESSION PUBLIC COMMENT CLOSED SESSION (A) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4)): (One) Item (B) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representative: City Manager; Employee Organizations: International Union of Operating Engineers, General Unit; San Bernardino Police Management Association; Teamsters - Middle Management Unit; San Bernardino Police Officers Association; and San Bernardino Confidential-Management Association (C) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. Jackie Aboud v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS203562 b. Karen Cervantes v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012538 c. Mirna Cisneros v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012926 d. Donald Smith v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVSB2025375 e. Matthew Brown v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVSB2025900 Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 4/16/2021 (D) PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS Pursuant to Government Code Section 54957 (Discussion of evaluation procedures and preparation for annual evalu ation of Mayor and Council appointees) Title: City Manager Title: City Attorney Title: City Clerk 7:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT CITY MANAGER UPDATE MAYOR AND CITY COUNCIL UPDATES PRESENTATIONS 1. Proclamation for DMV/Donate Life Month - April 2021 2. Proclamation for Child Abuse Prevention Month - April 2021 PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA APPOINTMENTS 3. Downtown Advisory Committee Appointment (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Richard R. Hernandez to the Downtown Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 4. Downtown Advisory Committee Appointment (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Paul Guerrero to the Downtown Adv isory Committee representing Ward 1 with the term ending December 2022. Council Staff has verified that appointee is a registered voter within the City. Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 4/16/2021 5. Measure S Citizens Oversight Committee Appointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Derrick J. Wesson to the Measure S Citizens Oversight Committee representing Ward 7. Mr. Wesson will replace Felicia Alexander with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 6. Downtown Advisory Committee Appointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Lelita (Leta) Amick to the Downtown Advisory Committee representing Ward 7 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. DISCUSSION 7. Reconsider Award of Nuisance Abatement Services Agreement to Cemex Corporation for Removal of Concrete Pile on N. Palm Avenue (Ward 5) Recommendation Reconsideration of Resolution No. 2021-85 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 in an amount not to exceed $1,470,000 to provide abatement services required at private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000 (“Project”); and 2. Amending the FY 2020/21 operating budget to appropriate $2,000,000 from the City’s undesignated General Fund reserve to support the project to include the cost of the abatement services in the amount of $1,470,000, project contingencies in the amount of $330,000, and anticipated project water use in the amount of $200,000; and 3. Authorizing the City Manager to expend contingencies as necessary to complete the Project. 8. Interpreting Services for City Council Meetings and Workshops (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive a report and provide staff direction on interpretation services for City Council meetings, special meetings, and/or workshops. Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 6 Printed 4/16/2021 9. Establishment of Local Campaign Finance Regulations (All Wards) Recommendation Review and Provide Further Direction to Staff Regarding Proposed Ordinance of the Mayor and City Council of the City of San Bernardino, California, Adding Chapter 2.55 to the City of San Bernardino Municipal Code Regarding Local Campaign Finance Regulations. 10. Administrative Policy (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and consider the proposed administrative policy and provide direction for modifications or adopt Resolution No. 2021-86 as presented establishing the Municipal Volunteer Program (MVP) Policy. PUBLIC HEARINGS 11. Accessory Dwelling Unit Ordinance (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Introduce, read by title only, and waive further reading of Ordinance No. MC- 1559 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 21-01 amending Title 19 (Development Code) of the City of San Bernardino Municipal Code to establish standards for Accessory Dwelling Units and finding the statutory exemption under the California Environmental Quality Act; and 2. Schedule the second reading of the above Ordinance to the regularly scheduled meeting of the Mayor and City Council on May 5, 2021. 12. Draft Fiscal Year 2021-2022 Annual Action Plan Associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs (All Wards) Recommendation It is recommended that the Mayor and the City Council for the City of San Bernardino, California, conduct a public hearing on the review of the draft Fiscal Year (FY) 2021-2022 Annual Action Plan (AAP) associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs. 13. Substantial Amendment to Fiscal Year 2019/20 Neighborhood Stabilization Program 1 & 3 Action Plans (Wards 1, 2, 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 7 Printed 4/16/2021 1. Conduct a public hearing and approve a Substantial Amendment to the Neighborhood Stabilization Program (NSP) Action Plans for Fiscal Year 2019/20; and 2. Authorize City Manager or designee to make administrative changes to the NSP Action Plans to meet HUD budgeting and reporting requirements. CONSENT CALENDAR 14. Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes of the Mayor and City Council meetings for the following dates: March 17, 2021 Regular Meeting Minutes March 31, 2021 Special Meeting Minutes April 4, 2021, Regular Meeting Minutes April 8, 2021, Special Meeting Minutes 15. Plan for Holding In-Person Meetings (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the report on the plan for holding in -person meetings of the City Council, Boards, Commissions, and Committees beginning July 1, 2021. 16. Nuisance Abatement Program Update (All Wards) Recommendation It is recommended that the Mayor and the City Council of the City of San Bernardino, California, receive and file the report on the implementation of the Nuisance Abatement Program. 17. Purchase and Sale Agreement with ICO Real Estate Group, Inc. with Respect to the Real Estate Property Located on W. 5Th Street and W. Spruce Street, Between N. G Street and N. H Street - City and Successor Housing Agency Actions (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-87 approving the Purchase and Sale Agreement and Joint Escrow Instructions between the City of San Bernardino and GATEWAY SB, LLC, a limited liability company, with respect to the Real Property located along West Spruce Street between North “G” Street and North “H” Street and along West 5th Street West of North “G” Street, San Bernardino, California (APNs 0134-053-20 to 0134-053-23, 0134-053-025, 0134-053-26; 0134-054-07 to 0134-054-09; and 0134-093-07 to 0134-093-09), and approving certain related actions; and Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 8 Printed 4/16/2021 2. Adopt Resolution No. 2021-89 acting in the capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino approving the Purchase and Sale Agreement and Joint Escrow Instructions between the City of San Bernardino acting in the capacity as the Successor Housing Agency of the Redevelopment Agency of the City of San Bernardino and GATEWAY SB, LLC, a limited liability company, with respect to the Real Property located along West 5th Street, North “G” Street, and North “H” Street in the City of San Bernardino, California, County of San Bernardino (APNs 0134-054-24 to 00134- 054-26; 0134-061-21, 0134-061-22, 0134-061-25, 0134-061-30; 0134-093-05, 0134-093-06; and 0134-101-02 to 0134-101-06, 0134-101-28) and approving certain related actions. 18. Professional Services Agreement with PlaceWorks for Professional Planning Services: Local Hazard Mitigation Plan and Emergency Operations Plan (All Wards) Recommendation Adopt Resolution No. 2021-90 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Services Agreement with PlaceWorks to prepare the Local Hazard Mitigation Plan and Emergency Operations Plan as part of the comprehensive update to the City’s General Plan; and authorize the Finance Director to amend the FY 2020/21 adopted budget accordingly. 19. First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart Recommendation It is recommended that the Mayor and the City Council of the City of San Bernardino, California adopt Resolution No. 2021-91, approving the First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart. 20. Emergency Rental Assistance Program (All Wards) It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-92 authorizing the City Manager to execute the Professional Services Agreement with the Inland SoCal United Way to assist in the administration of the City’s Emergency Rental Assistance Program; and 2. Direct the City Manager to execute a Memorandum of Understanding with the State Department of Housing and Community Development related to Option C of the Emergency Rental Assistance Program. 21. January/March 2020 and February/March 2021 - City Board, Commission, and Citizen Advisory Committee Approved Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City’s board, commission, and citizen advisory committee meetings approved in February and March 2021. Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 9 Printed 4/16/2021 22. Investment Portfolio Report for March 2021 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for March 2021. 23. Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for March and April 2021. 24. Request Purchase Authorization for a Network Refresh for the Feldheym Library and Three Branch Libraries Recommendation Adopt Resolution No. 2021-93 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or designee to authorize and issue a Purchase Order to GovConnection, Inc., in the amount of $36,385.58 to purchase network equipment as outlined in the report. 25. Grant Award for Virtual Youth Programing (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2021-94 accepting grant funding from the California State Library for the Virtual Youths at the Library project and authorize the Director of Finance to amend the FY 2020/21 Budget to appropriate funding . 26. Amendments to the Public Works Vendor Service Agreements with RP Landscape and Irrigation, Quality Light and Electrical, Sierra Pacific Electrical Contracting, C&W Construction Specialties Inc., and Fairview Ford Sales Inc. (All Wards) Recommendation Adopt Resolution No. 2021-95 of the Mayor and City Council of the City of San Bernardino, California, authorizing the First Amendment to the Vendor Service Agreements for (1) RP Landscape and Irrigation, (2) Quality Light and Electrical, (3) Sierra Pacific Electrical Contracting, (4) C&W Construction Specialties Inc., and (5) Fairview Ford Sales Inc. 27. Second Amendment to Professional Service Agreement with Kimley-Horn and Associates, Inc. (All Wards) Recommendation Adopt Resolution No. 2021-96 of the Mayor and City Council of the City of San Bernardino, California 1. Approving the Second Amendment to the Professional Services Agreement with Kimley-Horn and Associates, Inc. (“Second Amendment”) in the amount of $35,000 for additional design and preparation of plans and specifica tions for Capital Improvement Project - Upgrade Various Signal Hardware at 224 Signalized Intersections (TC20-007) (“Project”); Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 10 Printed 4/16/2021 2. Authorizing the Director of Finance to record a budget adjustment for the Project in the amount of $35,000 in the Federal Grant Program Fund 123, and amend the purchase order to Kimley-Horn and Associates, Inc., to a total contract amount of $631,534.25; and 3. Authorizing the City Manager, or designee, to execute the Second Amendment . 28. Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 (All Wards) Recommendation Adopt Resolution No. 2021-97 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with United Storm Water, Inc., of the City of Industry in the amount of $59,877.25 to perform installation work for Connector Pipe Screen (CPS) Total Maximum Daily Loads (TMDLs) - Track 1 ("Project"); 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $68,871 for the Project; and 3. Authorizing the City Manager, or designee, to expend the contingency fund, if necessary, to complete the project. 29. Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1) Recommendation Adopt Resolution No. 2021-98 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with Ortiz Enterprises, Inc. in the amount of $2,604,290 for construction of the 2nd Stree t Bridge Replacement over Warm Creek (“Project”); and 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $3,008,397 the Project; and 3. Authorizing the City Manager or designee to expend the cont ingency fund, if necessary, to complete the project. 30. Authorize Public Works Purchase Order Increases (All Wards) Recommendation Adopt Resolution No. 2021-99 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or designee to execute Public Works purchase order increases for the following: UC Fence, San Bernardino Paint, McCain Inc., Econolite, Inland Body and Paint Center, BHI Plumbing, Heating and Air, and Southern California Gas Company. Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 11 Printed 4/16/2021 ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 31. Authorization to Allow Concrete to be Crushed Onsite in Association with the Property Located on North Palm Avenue - Mayor John Valdivia ITEMS TO BE REFERRED TO COMMITTEE REPORTS ON CONFERENCES/MEETINGS ATTENDED ADJOURNMENT The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, May 5, 2021 via tele-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the April 21, 2021 Regular Meeting of the Mayor and City Council and the Mayor and City Council acting as the Successor Agency to the Redevelopment Agency was posted on the City’s bulletin board located at 201 North “E” Street, San Bernardino, California, at the San Bernardino Public Library located at 555 West 6th Street, San Bernardino, California, and on the City’s website sbcity.org on Friday, April 16, 2021. I declare under the penalty of perjury that the foregoing is true and correct. ___________________________________ Genoveva Rocha, CMC, City Clerk Regular Meeting Agenda April 21, 2021 Mayor and City Council of the City of San Bernardino Page 12 Printed 4/16/2021 NOTICE: Any member of the public may address this meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item appearing on the agenda by approaching the microphone in the Council Chamber when the item about which the member desires to speak is called and by asking to be recognized. Any member of the public desiring to speak to the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency concerning any matter not on the agenda but which is within the subject matter jurisdiction of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may address the body at the end of the meeting, during the period reserved for public comments. Said total period for public comments shall not exceed 60 minutes, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. A three minute limitation shall apply to each member of the public, unless such time limit is extended by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. No member of the public shall be permitted to “share” his/her three minutes with any other member of the public. Speakers who wish to present documents to the governing body may hand the documents to the City Clerk at the time the request to speak is made. The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency may refer any item raised by the public to staff, or to any commission, board, bureau, or committee for appropriate action or have the item placed on the next agenda of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency. However, no other action shall be taken nor discussion held by the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency on any item which does not appear on the agenda unless the action is otherwise authorized in accordance with the provisions of subdivision (b) of Section 54954.2 of the Government Code. Public comments will not be received on any item on the agenda when a public hearing has been conducted and closed. Page 1 Closed Session City of San Bernardino Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Sonia Carvalho, City Attorney Subject: Closed Session (A) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4)): (One) Item (B) CONFERENCE WITH LABOR NEGOTIATOR (Pursuant to Government Code Section 54957.6): Agency Designated Representative: City Manager; Employee Organizations: International Union of Operating Engineers, General Unit; San Bernardino Police Management Association; Teamsters - Middle Management Unit; San Bernardino Police Officers Association; and San Bernardino Confidential-Management Association (C) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. Jackie Aboud v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS203562 b. Karen Cervantes v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012538 c. Mirna Cisneros v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVDS2012926 d. Donald Smith v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVSB2025375 e. Matthew Brown v. John Valdivia, et al., San Bernardino Superior Court Case No. CIVSB2025900 (D) PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS Pursuant to Government Code Section 54957 (Discussion of evaluation procedures and preparation for annual evaluation of Mayor and Council appointees) Title: City Manager Title: City Attorney Title: City Clerk Packet Pg. 13 Page 1 Presentation City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: John Valdivia, Mayor Subject: Proclamation for DMV/Donate Life Month - April 2021 1 Packet Pg. 14 1.aPacket Pg. 15Attachment: Attachment 1 - Donate Life Proclamation (7220 : Proclamation for DMV/Donate Life Month - Page 1 Presentation City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: John Valdivia, Mayor Subject: Proclamation for Child Abuse Prevention Month - April 2021 2 Packet Pg. 16 2.aPacket Pg. 17Attachment: ATTACHMENT 1 - CHILD ABUSE PREVENTION MONTH (7235 : Proclamation for Child Abuse Page 1 Appointment City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Juan Figueroa, Council Member, Ward 3 Subject: Downtown Advisory Committee Appointment (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Richard R. Hernandez to the Downtown Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Background The Downtown Advisory Committee was established by Resolution No. 2021 -88 on February 17, 2021. Discussion The Downtown Advisory Committee (DAC) is an advisory committee e stablished by the Mayor and City Council to advise City staff, participating in public outreach and community forums, and making recommendations to the Planning Commission and the Mayor and City Council on various components of the overall project. Meetin gs of the DAC will be open and public in accordance with the Brown Act. The DAC is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Resolution No. 2021-88, the Mayor shall appoint two (2) members and each City Council member shall nominate one (1) member. In accordance with the City Charter and the City's Municipal Code, appointees must be either a resident of the City of San Bernardino, or a non -resident business or property owner. Appointees should be able to clearly articulate the community perspective and/or the area of the City in which they live or conduct business. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. 3 Packet Pg. 18 7206 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Richard R. Hernandez to the Downtown Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 - Commission application - Mr. Richard R. Hernandez Ward: 3 Synopsis of Previous Council Action: February 17, 2021 Resolution No. 2021-88 establishing the Downtown Advisory Committee was adopted. 3 Packet Pg. 19 3.a Packet Pg. 20 Attachment: Attachment 1 - MCC.Commission Application - Richard R. Hernandez (7206 : Downtown Advisory Committee Appointment (Ward 3.a Packet Pg. 21 Attachment: Attachment 1 - MCC.Commission Application - Richard R. Hernandez (7206 : Downtown Advisory Committee Appointment (Ward 3.a Packet Pg. 22 Attachment: Attachment 1 - MCC.Commission Application - Richard R. Hernandez (7206 : Downtown Advisory Committee Appointment (Ward Page 1 Appointment City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Theodore Sanchez, Council Member, Ward 1 Subject: Downtown Advisory Committee Appointment (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Paul Guerrero to the Downtown Advisory Committee representing Ward 1 with the term ending December 2022. Council Staff h as verified that appointee is a registered voter within the City. Background The Downtown Advisory Committee was established by Resolution No. 2021 -88 on February 17, 2021. Discussion The Downtown Advisory Committee (DAC) is an advisory committee estab lished by the Mayor and City Council to advise City staff, participating in public outreach and community forums, and making recommendations to the Planning Commission and the Mayor and City Council on various components of the overall project. Meetings o f the DAC will be open and public in accordance with the Brown Act. The DAC is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Resolution No. 2021-88, the Mayor shall nominate two (2) members and each City Council member shall nominate one (1) member. In accordance with the City Charter and the City's Municipal Code, appointees must be either a resident of the City of San Bernardino, or a non -resident business or property owner. Appointees should be able to clearly articulate the community perspective and/or the area of the City in which they live or conduct business. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. 4 Packet Pg. 23 7207 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Paul Guerrero to the Downtown Advisory Committee representing Ward 1 with the term ending December 2022. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 - Commission application - Mr. Paul Guerrero Ward: 1 Synopsis of Previous Council Action: February 17, 2021 Resolution No. 2021-88 establishing the Downtown Advisory Committee was adopted. 4 Packet Pg. 24 4.a Packet Pg. 25 Attachment: Attachment 1 - MCC.Commission Application - Paul Guerrero (7207 : Downtown Advisory Committee Appointment (Ward 1)) 4.a Packet Pg. 26 Attachment: Attachment 1 - MCC.Commission Application - Paul Guerrero (7207 : Downtown Advisory Committee Appointment (Ward 1)) 4.a Packet Pg. 27 Attachment: Attachment 1 - MCC.Commission Application - Paul Guerrero (7207 : Downtown Advisory Committee Appointment (Ward 1)) Page 1 Appointment City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Measure S Citizens Oversight Committee Appointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Derrick J. Wesson to the Measure S Citizens Oversight Committee representing Ward 7. Mr. Wesson will replace Felicia Alexander with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Background The Measure “S” Citizens Oversight Committee was established by Resolution No. 2020-248, replacing Measure “Z” Citizens Oversight Committee. The committee is charged with reviewing and reporting on the spending plan for the one percent general district sales tax generated under Measure S passed by voters on November 3, 2020, and verifying that the proposed expenditures are in accordance with the Measure S ballot language and the Mayor and Council’s adopted strategic goals and priorities. The Committee is also charged with reviewing and reporting annually on the results of the annual audit of the Measure S revenues and expenditures completed by an independent certified public accounting firm. The commission is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Chapter 2.17 of the Municipal Code, each City Counci l member shall nominate one member who shall serve during and for the term of the nominating Council member, and the Mayor shall nominate two members who shall serve during and for the term of the Mayor. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. 5 Packet Pg. 28 7269 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Derrick J. Wesson to the Measure S Citizens Oversight Committee with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 Commission Application - Mr. Derrick J. Wesson Ward: 7 5 Packet Pg. 29 5.a Packet Pg. 30 Attachment: Attachment 1 - MCC.Commission Application - Derrick J. Wesson (7269 : Measure S Citizens Oversight Committee Appointment 5.a Packet Pg. 31 Attachment: Attachment 1 - MCC.Commission Application - Derrick J. Wesson (7269 : Measure S Citizens Oversight Committee Appointment 5.a Packet Pg. 32 Attachment: Attachment 1 - MCC.Commission Application - Derrick J. Wesson (7269 : Measure S Citizens Oversight Committee Appointment 5.a Packet Pg. 33 Attachment: Attachment 1 - MCC.Commission Application - Derrick J. Wesson (7269 : Measure S Citizens Oversight Committee Appointment 5.a Packet Pg. 34 Attachment: Attachment 1 - MCC.Commission Application - Derrick J. Wesson (7269 : Measure S Citizens Oversight Committee Appointment 5.a Packet Pg. 35 Attachment: Attachment 1 - MCC.Commission Application - Derrick J. Wesson (7269 : Measure S Citizens Oversight Committee Appointment 5.a Packet Pg. 36 Attachment: Attachment 1 - MCC.Commission Application - Derrick J. Wesson (7269 : Measure S Citizens Oversight Committee Appointment Page 1 Appointment City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Damon L Alexander, Council Member, Ward 7 Subject: Downtown Advisory Committee Appointment (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Lelita (Leta) Amick to the Downtown Advisory Committee representing Ward 7 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Background The Downtown Advisory Committee was established by Resolution No. 2021 -88 on February 17, 2021. Discussion The Downtown Advisory Committee (DAC) is an advisory committee established by the Mayor and City Council to advise City staff, participating in public outreach and community forums, and making recommendations to the Planning Commission and the Mayor and City Council on various components of the overall project. Mee tings of the DAC will be open and public in accordance with the Brown Act. The DAC is comprised of nine (9) members who serve at pleasure of the Mayor and City Council. Pursuant to Resolution No. 2021-88, the Mayor shall appoint two (2) members and each City Council member shall nominate one (1) member. In accordance with the City Charter and the City's Municipal Code, appointees must be either a resident of the City of San Bernardino, or a non -resident business or property owner. Appointees should be ab le to clearly articulate the community perspective and/or the area of the City in which they live or conduct business. 2020-2025 Key Strategic Targets and Goals The proposed commission appointment aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to City. 6 Packet Pg. 37 7270 Page 2 Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, approve the appointment of Ms. Lelita (Leta) Amick to the Downtown Advisory Committee representing Ward 7 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Attachments Attachment 1 Commission application - Ms. Lelita (Leta) Amick Ward: 7 Synopsis of Previous Council Action: February 17, 2021 Resolution No. 2021-88 establishing the Downtown Advisory Committee was adopted. 6 Packet Pg. 38 6.a Packet Pg. 39 Attachment: Attachment 1 - MCC.Commission Application - Lelita (Leta) F. Amick (7270 : Downtown Advisory Committee Appointment (Ward 6.a Packet Pg. 40 Attachment: Attachment 1 - MCC.Commission Application - Lelita (Leta) F. Amick (7270 : Downtown Advisory Committee Appointment (Ward 6.a Packet Pg. 41 Attachment: Attachment 1 - MCC.Commission Application - Lelita (Leta) F. Amick (7270 : Downtown Advisory Committee Appointment (Ward 6.a Packet Pg. 42 Attachment: Attachment 1 - MCC.Commission Application - Lelita (Leta) F. Amick (7270 : Downtown Advisory Committee Appointment (Ward 6.a Packet Pg. 43 Attachment: Attachment 1 - MCC.Commission Application - Lelita (Leta) F. Amick (7270 : Downtown Advisory Committee Appointment (Ward Page 1 Discussion City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager Subject: Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5) Recommendation Reconsideration of Resolution No. 2021-85 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 in an amount not to exceed $1,470,000 to provide abatement services required at private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000 (“Project”); and 2. Amending the FY 2020/21 operating budget to appropriate $2,000,000 from the City’s undesignated General Fund reserve to support the project to include the cost of the abatement services in the amount of $1,470,000, project contingencies in the amount of $330,000, and anticipated project water use in the amount of $200,000; and 3. Authorizing the City Manager to expend contingencies as necessary to complete the Project. Background On January 15, 2021, the City issued a Notice of Revocation of Temporary Use Permit and Notice to Abate (“Notice”) advising the N. Palm Ave property owner that the TUP issued for the development project was being revoked for failing to comply with the Conditions of Approval required as part of the approval of the TUP. The Notice further advised the property owner that the use of the property is in violation of the San Bernardino Municipal Code (SBMC) sections: 8.30.020(a) [existence of any garbage, rubbish, refuse upon the premises], 8.30.020(H)(3) [an item causing an unsightly appearance visible from the public right of way or creates any other potential health hazard or nuisance], 8.30.020(R) [any attractive nuisance - concrete stockpile attracts ATV and dirt bike riders], and 8.30.020(S) [any condit ion contrary to public health and safety - concrete causes dust particles and rock particles impacting the community]. The Notice directed the property owner to begin abatement on or before January 25, 7 Packet Pg. 44 7268 Page 2 2021, with complete removal of concrete to occur on or before February 14, 2021. Because the property owner did not take action to perform the required removal of the concrete stockpile, on March 4, 2021, the City sought a court ordered Abatement Warrant to allow the City to proceed with the abatement of the concrete. The Abatement Warrant was approved and signed by the court and staff immediately notified the property owner by certified mail and on March 5, 2021, posted the Project site as required by the order. On March 17, 2021, staff provided an update to the Mayor and City Council in closed session regarding this project as a matter of anticipated litigation. On April1 7, 2021, the City Council adopted Resolution No. 2021 -85 approving the Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation for the removal of concrete at the North Palm Avenue property (APN: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000) with Mayor Pro Tem Ibarra and Councilmembers Reynoso, Calvin and Alexander supporting and Councilmembers Sanchez, Figueroa and Shorett opposing the motion. On April 8, 2021, the Mayor issued a memo addressed to the members of the City Council, the City Manager, and the City Attorney advising that pursuant to Municipal Code Section 1.08.010 and 1.08.030, and Charter Section 303 (b), the Mayor was vetoing the adoption of Resolution No. 2021-85 approved by fewer than five votes of the City Council. Discussion In keeping with Municipal Code Section 1.08.040, Resolution No. 2021 -85 has been placed on the City Council agenda for reconsideration. In accordance with section 302 of the City Charter and section 1.08.040 of the City’s Municipal Code, five or more affirmative votes are required to override any veto of the Mayor and validly readopt the resolution. If a contract is not awarded to a qualified vendor the City will be unable to remove the concrete from the property. In such event, the City Council may wish to consider other options to address the situation. 2020-2025 Key Strategic Targets and Goals Authorization of this agreement aligns with Key Target No. 3: Improved Quality of Life. Fiscal Impact The financial impact to the City is estimated in the amount of $2,000,000 to support the abatement action. A supplemental appropriation in the above am ount will be required from undesignated General Fund Reserve Fund to support the Project. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, reconsider the adoption of Resolution No. 2021 -85: 1. Approving the Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 7 Packet Pg. 45 7268 Page 3 in an amount not to exceed $1,470,000 to provide abatement services required at private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000 (“Project”); and 2. Amending the FY 2020/21 operating budget to appropriate $2,000,000 from the City’s undesignated General Fund reserve to support the project to include the cost of the abatement services in the amount of $1,470,000, project contingencies in the amount of $330,000, and anticipated project water use in the amount of $200,000; and 3. Authorizing the City Manager to expend continge ncies as necessary to complete the Project. Attachments Attachment 1 Resolution 2021-85; Attachment 2 Resolution 2021-85; Exhibit “A” - Nuisance Abatement Services Agreement Ward: 5 Synopsis of Previous Council Actions: October 21, 2020 The Mayor and City Council adopted Resolution No. 2020-265 establishing guidance relating to the issuance of Temporary Use Permits allowing on-site and off-site contractors’ construction yards for approved development projects. April 7, 2021 The Mayor and City Council adopted Resolution No. 2021-85 approving the Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation for the removal of concrete at the North Palm Avenue property (APN: 0261 -011-08- 0000, 0261-011-13-0000, 0261-011-14-0000). The Resolution was subsequently vetoed by the Mayor pursuant to Municipal Code Section 1.08.010 and 1.08.030, and Charter Section 303 (b). 7 Packet Pg. 46 RESOLUTION NO. 2021-85 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE NUISANCE ABATEMENT SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CEMEX CORPORATION OF ONTARIO, CALIFORNIA, DATED MARCH 31, 2021, IN AN AMOUNT NOT TO EXCEED $1,470,000 TO PROVIDE ABATEMENT SERVICES REQUIRED AT PRIVATE PROPERTY LOCATED ON N. PALM AVENUE, SAN BERNARDINO, CALIFORNIA 92407; APNS: 0261-011-08- 0000, 0261-011-13-0000, 0261-011-14-0000 (“PROJECT”); AND AMENDING THE FY 2020/21 OPERATING BUDGET TO APPROPRIATE $2,000,000 FROM THE CITY’S UNDESIGNATED GENERAL FUND RESERVE TO SUPPORT THE PROJECT TO INCLUDE THE COST OF THE ABATEMENT SERVICES IN THE AMOUNT OF $1,470,000, PROJECT CONTINGENCIES IN THE AMOUNT OF $330,000, AND ANTICIPATED PROJECT WATER USE IN THE AMOUNT OF $200,000; AND AUTHORIZING THE CITY MANAGER TO EXPEND CONTINGENCIES AS NECESSARY TO COMPLETE THE PROJECT WHEREAS, the City has determined that a public nuisance exists creating potential health and safety issues related to the stockpiling of concrete material on private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261- 011-13-0000, 0261-011-14-0000; and WHEREAS, on January 15, 2021, the City issued a Notice of Revocation of Temporary Use Permit and Notice to Abate (“Notice”) advising the N. Palm Ave property owner that the TUP issued for the development project was being revoked for failing to comply with the Conditions of Approval required as part of the approval of the TUP; and WHEREAS, the property owner has not taken action to perform the required removal of the concrete stockpile, and on March 4, 2021, the City sought and was awarded a court ordered Abatement Warrant to allow the City to proceed with the abatement of the concrete; and WHEREAS, the City is proceeding with the abatement of this nuisance as an emergency circumstance due to the current conditions of the stockpile and dust from the material posing a potential health hazard to the neighboring community; and WHEREAS, the City has entered in to a Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation of Ontario, California, dat ed March 31, 2021, in an amount not to exceed $1,470,000 to provide the removal and disposal of the concrete material; and 7.a Packet Pg. 47 Attachment: Attachment 1 - Resolution 2021-85 (7268 : Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5)) Resolution No. ___ WHEREAS, additional costs may be incurred for project contingencies and water use, resulting in an estimated total abatement project cost of $2,000,000. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The Mayor and City Council hereby ratify the approval of the Nuisance Abatement Services between the City of San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 in an amount not to exceed $1,470,000 to provide abatement services, incorporated herein and attached hereto as Exhibit “A”. SECTION 3. The Director of Finance is hereby authorized to record a supplemental appropriation from undesignated General Fund reserve in the amount of $2,000,000, including abatement services in the amount of $1,470,000 and project contingencies in the amount of $530,000 to support the completion of the abatement project. SECTION 4. The City Manager, or his designee, is hereby authorized to expend contingencies as necessary to complete the Project. SECTION 5. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk 7.a Packet Pg. 48 Attachment: Attachment 1 - Resolution 2021-85 (7268 : Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5)) Resolution No. ___ Approved as to form: Sonia Carvalho, City Attorney 7.a Packet Pg. 49 Attachment: Attachment 1 - Resolution 2021-85 (7268 : Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5)) Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-___, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 7.a Packet Pg. 50 Attachment: Attachment 1 - Resolution 2021-85 (7268 : Award of Nuisance Abatement Services Agreement to Cemex Corporation (Ward 5)) CITY OF SAN BERNARDINO NUISANCE ABATEMENT SERVICES AGREEMENT 1. PARTIES AND DATE. This Agreement is made and entered into this 2 day of April, ("Effective Date") 2021 by and between the City of San Bernardino, a municipal corporation organized under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, California 92401, County of San Bernardino, State of California ("City") and Cemex, a California Corporation with its principal place of business at 4120 E, Jurupa Street Suite 200, Ontario, California 91761 (''Contractor"). City and Contractor are sometimes individually referred to as "Party" and collectively as "Parties" in this Agreement. 2. RECITALS. 2.1 Contractor. Contractor desires to perform and assume responsibility for the provision of certain nuisance abatement services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing construction and aggregate material removal and disposal/processing services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. 2.2 Project. City desires to engage Contractor to render such services for the removal and disposal of all concrete stockpile and associated debris from Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000.("P roject") as set forth in this Agreement. 3.TERMS. 3.1 Scope of Services and Term. 3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the removal, transportation and disposal of all concrete stockpile and associated debris as nuisance abatement services necessary for the Project ("Services"). The Services are more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations. 3.1.2 Term. The term of this Agreement shall be from the Effective Date to completion of the Services, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established - 1 - 7.b Packet Pg. 51 Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 52Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 53Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 54Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 55Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 56Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 57Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 58Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 59Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 60Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 61Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 62Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 63Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 64Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 65Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 66Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 67Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.b Packet Pg. 68 Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 69Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 70Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 71Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 72Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 73Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 74Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 75Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 76Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 77Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 78Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 79Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 80Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement 7.bPacket Pg. 81Attachment: Attachment 2 - Cemex - San Bernardino - Nuisance Abatement Services Agreement -Signed (7268 : Award of Nuisance Abatement Page 1 Discussion City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Genoveva Rocha, City Clerk Subject: Interpreting Services for City Council Meetings and Workshops (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive a report and provide staff direction on interpretation services for City Council meetings, special meetings, and/or workshops. Background At the February 3, 2021, Mayor and City Council Meeting, the City Council requested that staff bring back options for City Council consideration to allow for interpretation services in Spanish, Vietnamese, and American Sign Language (ASL) at May or and City Council meetings. Providing interpretation services would ensure language equity and access and provide additional opportunities to share the City’s message and conduct the business of the City in an open and inclusive manner. Discussion Staff has contacted companies that provide translation and interpretation services, including local businesses that are based out of San Bernardino, and asked for quotes for Spanish, Vietnamese, and ASL interpretation. Two companies have the capacity to provide interpretation services for all three of the requested languages; one company only provides Spanish interpretation; and one company only provides ASL interpretation. Staff also looked into an alternative to ASL interpretation services and determined that live English captioning can be implemented fairly quickly with little to no cost to the City. The quotes received and cost estimates are provided in Attachment 1. These quotes range from $89 to $150 per hour, depending on the language, for simultaneous interpretation. Staff also included an estimate on interpretation services for future Redistricting workshops. The prices are not an accurate reflection, as they may change based on the direction provided by the Mayor and City Council, the length of each meeting, and the amount of meetings in which interpretation services will be provided. The options below for the Mayor and City Council’s consideration details the interpretation costs and provides additional information for each option. Option 1 - Provide interpretation services in Spanish, Vietnamese, and ASL Under this option, simultaneous interpretation services would be provided during virtual meetings, and would continue to be provided when in -person meetings resume. The 8 Packet Pg. 82 7265 Page 2 costs of providing interpretation for all three requested languages would be upwards of $57,024 annually for twenty-four (24) meetings that consist of only four hours in length. The costs could considerably increase dependent on the amount and length of meetings. This cost may increase dependent on the company chosen to provide interpretation services. Staff would also need to determine the feasibility of broadcasting live meetings in three additional languages. This may include purchasing additional encoders to livestream each version simultaneously. Not included in the cost estimate are the headsets the City would need to purchase for interpretation services when in - person meetings resume. Option 2 - Provide Interpretation Services in Spanish and Vietnamese, with live English captioning Simultaneous services would be provided during virtual meetings, and would continue to be provided when in-person meetings resume. The costs of providing interpretation services under this option would significantly decrease from Option 1, as staff would utilize an alternative to ASL interpretation by implementing live English captioning. The costs to provide interpretation services in Spanish and Vietnamese would be upwards of $36,096 annually for twenty-four (24) meetings that consist of only four hours in length. This cost may increase dependent on the company chosen to provide interpretation services. Additional encoders would still need to be purchased to livestream each version simultaneously. Option 3 - Provide Interpretation Services in Spanish, with live English captioning (Staff Recommendation) Under this option, Spanish interpretation services would be provided simultaneously during virtual meetings and would continue to be provided when in -person meetings resume. The costs of providing interpretation services under this option would significantly decrease from Option 1 and 2, as staff would utilize an alternative to ASL interpretation by implementing live English captioning and interpretation would only be provided in one language. The costs to p rovide interpretation services in Spanish would be upwards of $17,088 annually for twenty-four (24) meetings that consist of only four hours in length. This cost may increase dependent on the company chosen to provide interpretation services. An additional encoder may still need to be purchased to livestream the Spanish version simultaneously. Option 3 would follow the language requirements that the City complies with when translating election information for members of the public (Elections Code § 14201). The Secretary of State determines the precincts where 3% or more of the voting-age residents are members of a “single language minority” and lack sufficient skills to vote without assistance. Attachment 2 was provided by the San Bernardino County Registra r of Voters and is the most current list of the amount of limited English proficiency registered voters in the City. While all three options listed enhance community engagement with the residents and businesses of the City of San Bernardino, staff recommends that the Mayor and City Council proceed with Option 3. As illustrated in Attachment B, the only population that exceeds 3% is Spanish, which illustrates that 15% of the City’s residents are registered to vote in Spanish. The number of residents regist ered to vote in Vietnamese is currently 2,490, which is displayed as 0% of the City’s population. There are currently 8 Packet Pg. 83 7265 Page 3 more residents registered in Chinese, Tagalog, and Korean than in Vietnamese; however data also shows these populations at 0%. 2020-2025 Key Strategic Targets and Goals Receiving the report and providing staff with direction on interpretation services for Mayor and City Council meetings, special meetings, and/or workshops is in alignment with Key Target No. 2: Focused, Aligned Leadership and Unified Community; and Key Target No. 3: Improved Quality of Life. Fiscal Impact The cost of interpretation services will vary depending on the direction provided to staff. Additional funding will be required to provide translation services during May or and City Council meetings as this is not a budgeted expenditure. The annual expenditure may be upwards of $57,024 and may increase dependent on the technological purchases staff would need to make to successfully implement interpretation during Mayor an d City Council meetings. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive a report and provide direction to staff regarding interpretation services for the Mayor and City Council meetings, special meetings, and/or workshops. Attachments Attachment 1 Quotes received for Interpretation Services Attachment 2 Precinct Language Requirements provided by ROV Ward: All Synopsis of Previous Council Actions: February 3, 2021 The City Council requested that staff bring back options for City Council consideration to allow for interpretation services in Spanish, Vietnamese, and American Sign Language (ASL) at Mayor and City Council meetings. 8 Packet Pg. 84 Translation Services Mayor and City Countil Meetings: Company Service/Language Cost per Interpreter Total # of interpreters Total cost per hour Total Hours Total per meeting (4 hrs) Total for year (24 meetings) SpotOn Interpreting Spanish $150/hour 2 $300 4 $1,200 $28,800 Vietnamese $150/hour 2 $300 4 $1,200 $28,800 American Sign Language $150/hour 2 $300 4 $1,200 $28,800 GRAND TOTALS 6 $900 $3,600 $86,400 Language Network Spanish $89/hour- SP 2 $178 4 $712 $17,088 Vietnamese $99/hour- VN 2 $198 4 $792 $19,008 American Sign Language $109/hour- ASL 2 $218 4 $872 $20,928 GRAND TOTALS 6 $594 $2,376 $57,024 MHC Interpreting Services Spanish $95/hour- SP 2 $190 4 $760 $18,240 GRAND TOTALS 2 $190 $760 $18,240 Linguabee American Sign Language Up to $90/hour- ASL 2 $180 4 $720 $17,280 GRAND TOTALS 2 $180 $720 $17,280 Redistricting Workshops: Company Service/Language Cost per Interpreter Total # of interpreters Total cost per hour Total Hours Total per meeting (2 hrs) Total for year (21 meetings) SpotOn Interpreting Spanish $150/hour 2 $300 2 $600 $12,600 Vietnamese $150/hour 2 $300 2 $600 $12,600 American Sign Language $150/hour 2 $300 2 $600 $12,600 GRAND TOTALS 6 $900 $1,800 $37,800 Language Network Spanish $89/hour- SP 2 $178 2 $356 $7,476 Vietnamese $99/hour- VN 2 $198 2 $396 $8,316 American Sign Language $109/hour- ASL 2 $218 2 $436 $9,156 GRAND TOTALS 6 $594 $1,188 $24,948 MHC Interpreting Services Spanish $95/hour- SP 2 $190 3 $570 $11,970 GRAND TOTALS 2 $190 (Min. 3 hours)$570 $11,970 Linguabee American Sign Language Up to $90/hour- ASL 2 $180 2 $360 $7,560 GRAND TOTALS 2 $180 $360 $7,560 Alternative to Live ASL Translation Company Service/Language Total Hours per Month Cost per month Rev Live English Captioning 80 $20 GRAND TOTALS $20 *Should we exceed the 80 hour limit per month, we will automatically be given an additional 80 hours at the $20 rate. Price is for one meeting at at time. If we need to run meetings simultaneously, then we would need to pay for an additional host. 8.a Packet Pg. 85 Attachment: Attachment 1 - Interpreting Costs PDF (7265 : Interpreting Services for City Council Meetings and Workshops (All Wards)) San Bernardino County December 2017 Population Estimate+Percentage of 18+ Population # of Precincts with population > 3% of 18+ Population* # of Precincts with population 18+ Population 1,515,010 -1,708 1,708 Spanish LEP 223,640 15%1,325 1,457 Arabic LEP 630 0%11 21 Cantonese LEP 250 0%3 11 Chinese LEP 4,510 0%43 178 Indonesian LEP 560 0%6 27 Korean LEP 3,145 0%70 121 Mandarin LEP 1,730 0%26 54 Persian LEP 265 0%2 14 Tagalog LEP 3,870 0%44 163 Thai LEP 205 0%5 11 Vietnamese LEP 2,490 0%37 109 Formosan LEP 100 0%0 7 French LEP 60 0%0 3 Gujarati LEP 95 0%0 5 Hmong LEP 60 0%0 1 Japanese LEP 35 0%0 3 Mon-Khmer, Cambodian LEP 50 0%0 5 Portuguese LEP 40 0%0 3 +'Estimated totals in the summary table above are derived from summing the county tract level estimates. The totals derived from summing the tracts may vary from the totals derived from summing the precinct level estimates because the precinct level estimates were derived from merging the tract level estimates to the precincts and then rounding the estimates to the nearest whole number. Additionally, some LEP populations can not be merged to precincts such as inmate populations in state and federal correctional facilities as these population do not correspond to a precinct. *Percentages are rounded to the nearest whole number 8.b Packet Pg. 86 Attachment: Attachment 2 - Spreadsheet_PrecinctLanguageRequirements_SanBernardino (7265 : Interpreting Services for City Council Page 1 Discussion City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Rebekah Kramer, Assistant City Manager Subject: Establishment of Local Campaign Finance Regulations (All Wards) Recommendation Review and Provide Further Direction to Staff Regarding Proposed Ordinance of the Mayor and City Council of the City of San Bernardino, California, Adding Chapter 2.55 to the City of San Bernardino Municipal Code Regarding Local Campaign Finance Regulations. Background At the December 16 City Council meeting, the City Council requested that staff bring back an ordinance for Council consideration that provided: (1) a campaign contribution limit; (2) limits on contributions by applicants and their agents during the permitting process; (3) limits on solicitation of contributions by elected officials from applicants and their agents during the permitting process; and (4) disclosure requirements from any contributions for a 12-month period prior to any City Council action involving the contributor. Discussion The Political Reform Act (Gov. Code, § 81000.) includes regulations regulating campaign finance, lobbying activity and conflicts of interest. Government Code section 81013 provides, “[n]othing in this title prevents the Legislature or any other state or local agency from imposing additional requirements on any person if the requirements do not prevent the person from complying with this title. If any act of the Legislature con flicts with the provisions of this title, this title shall prevail.” Accordingly, the City is permitted by state law to impose its own campaign finance regulations. At the City Council meeting on December 16, the Council expressed a desire to impose regulations that would increase trust in City government, increase transparency, and reduce any appearance of impropriety from the City’s decision -making process. Staff has prepared a draft ordinance for consideration by the Council that addresses the following requests from Council: (1) A Campaign Contribution Limit On January 1, 2021, Assembly Bill (AB) 571 went into effect. AB571 set default 9 Packet Pg. 87 7234 Page 2 contribution limits for elective county and city offices aligning with the contribution limits set for elected off icers of the state Assembly and Senate. Under AB 571, the FPPC will have administration and enforcement authority regarding the default contribution limits for cities and counties without their own local contribution limits, and makes violations of default contribution limits within the FPPC’s purview punishable as a misdemeanor. These contribution limits may be adjusted by the FPPC in January of odd -numbered years to reflect increases or decreases in the Consumer Price Index (CPI). AB 571 also extends contribution restrictions for elective county or city offices regarding personal loans and for committees created to oppose recall measures. Under the new law, cities were permitted to adopt local campaign ordinances that contain additional restrictions and requirements that are more precisely tailored to the needs of their communities. On September 16, 2020, after consideration of the matter, the City Council decided to defer to the state’s limit, which is presently set at $4,700 from an individual per election, enforced by the FPPC. The proposed ordinance simply memorializes this decision in the Municipal Code at section 2.55.010. (2) Limits on Contributions from Applicants and their Agents Government Code section 84308 prohibits a party seeking a contract (other than competitively bid), license, permit, or other entitlement for use from making a contribution of more than $250 to appointed members of local boards and commissions, such as planning commissions. This rule applies to parties and their agen ts when they seek to make contributions to elected officials of the City who serve on other local agency boards, e.g., when a council member sits on the board of the local airport authority, applicants before that body are subject to these rules when makin g contributions to that council member. Modelled on Section 84308, the proposed ordinance includes language prohibiting applicants and their agents from making contributions over a certain (to be determined by Council) level while they have a license, p ermit, or other entitlement application in the works and for three months following. In addition, the proposed ordinance includes language requiring applicants to disclose on the record if they have made any contribution over a certain (again, to be determined by Council) level in the 12-months prior to the proceeding. This disclosure requirement ensures the public is informed of contributions that may have been made prior to the submission of an application yet still occurred in the year prior to the determination. This language is included as Section 2.55.020 (G) of the proposed ordinance. (3) Limits on Solicitation and Receipt of Contributions from Applicants and their Agents Government Code section 84308 prohibits appointed officers from solicitin g or receiving contributions over $250 from applicants and their agents while the proceeding is pending and for three months following. In addition, Government Code section 84308 9 Packet Pg. 88 7234 Page 3 requires officials to disclose and disqualify themselves from considering an y applications if they have received a contribution of more than $250 from an applicant or their agent in the 12 months prior to the decision. Modelled on Section 84308, the proposed ordinance includes language prohibiting elected officials from soliciting or receiving contributions over a certain level (to be determined by Council) from an applicant or their agent while they have an application in the works and for three months following. In addition, the proposed ordinance includes language requiring elected officials to disclose any contributions over a certain level (again, to be determined by Council) in the 12 -months prior to the proceeding and to recuse themselves from participating in the decision. This language is included as Sections 2.55.02 0 (B) and 2.55.020 (D) of the proposed ordinance. (4) Disclosure Requirements Government Code section 84308 does not include disclosure requirements beyond the requirement that an official disclose any contribution of more than $250 from an applicant or their agent in the 12 months prior to the decision prior to the official recusing themselves from participation in the decision. In order to accommodate Council’s request for a specific disclosure requirement, staff has drafted a proposed provision that would require simple disclosure of the fact of a contribution prior to action. Because elected officials would be required to disclose and then disqualify themselves at a certain level under proposed Section 2.55.020 (D), it would be logical to set the threshold for simple disclosure (i.e., without disqualification) at a lower level. This language is included as Section 2.55.020 (C) of the proposed ordinance. (5) Additional Provisions Not Specifically Requested by City Council In addition to the foregoing provisions, which were specifically requested by Council, staff included the following in the proposed ordinance: (A) A Safe Harbor Provision - This provision, located in Section 2.55.020 (E) of the proposed ordinance permits elected officials to re turn contributions within 30 days to avoid the effects of Chapter 2.55. This provision is modelled on a similar provision in Government Code section 84308 and provides elected officials with an opportunity to consider the implications of certain contributions on their ability to participate in important decisions before the Council. (B) Application to Candidates - In order to level the playing field in the immediate run-up to elections, the proposed ordinance would impose the disclosure and disqualification requirements on newly elected officials who received campaign contributions from applicants prior to their election to office. This provision is designed to prevent efforts by applicants to 9 Packet Pg. 89 7234 Page 4 attempt to engage in play-to-play schemes with candidates that would not be permitted with an existing elected official. In addition, the proposed provision applies more stringently to those candidates who have received sufficient votes in the elections to take office but have not yet taken office due to the delay in the certification of an election. For example, a candidate who receives sufficient votes in a March/June primary to be eleceted to office would be subject to the prohibitions notwithstanding the fact that they have not yet been seated. This provision is located in Section 2.55.020 (F) of the proposed ordinance. (C) Enforcement - Council did not previously address how enforcement of the proposed ordinance would be handled. Staff recommends Council consider this carefully because allegations relating to the violation of this ordinance will be highly political and sensitive by their very nature. As a result, giving staff the responsibility for enforcement will create a very difficult situation due to the chain of command. Staff recommends either developing a mechanism by which the Council may refer allegations to the City’s independent contract hearing officer or reaching out to the FPPC to determine whether the FPPC can investigate alleged violations. 2020-2025 Goals and Objectives The proposed action would meet Key Strategic Targets and Goals of Financial Stability and Focused, Aligned Leadership and Unified Community. The proposed action would minimize risk and litigation exposure by providing a transparent entitlement process and by increasing trust in City government. Further, the proposed action would build a culture that attracts, retains, and motivates the highest quality talent setting a tone of political transparency. Fiscal Impact There is no direct financial impact related to this discussion. If the City decides to adopt an ordinance imposing local campaign finance regulations, there may be additional costs associated with enforcement. Conclusion Staff recommends that the City Council Review and Provide Further Direction to Staff Regarding Proposed Ordinance of the Mayor and City Council of the City of San Bernardino, California, Adding Chapter 2.55 to the City of San Bernardino Municipal Code Establishing Local Campaign Finance Regulations. Attachments Ordinance No. MC-1558 Ward: All Wards Synopsis of Previous Council Actions: September 2 and 16, 2020 Considered but did not adopt, Ordinance MC-1542, 9 Packet Pg. 90 7234 Page 5 establishing no campaign contribution limit requirements for elected officials within the City of San Bernardino. December 16, 2020 The City Council requested that staff prepare an ordinance establishing local campaign finance regulations including: 1) Election campaign contribution limits; 2) Limits on contributions by applicants and their agents during the permitting process; 3) Limits on solicitation of contributions by elected from applicants and their agents during the permitting process; 4) Disclose requirements for any contributions for a 12-month period prior to any Council action involving the contributor. 9 Packet Pg. 91 Ordinance No. MC-1558 1 ORDINANCE NO. 1558 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADDING CHAPTER 2.55 TO THE CITY OF SAN BERNARDINO MUNICIPAL CODE RELATING TO LOCAL CAMPAIGN FINANCE REGULATIONS WHEREAS, the City desires to eliminate any appearance of impropriety during City permitting processes that come before the City Council; and WHEREAS, in an effort to increase transparency and eliminate any appearance of quid pro quo, thereby increasing trust in the City’s government, the City seeks to establish a limit on campaign contributions by persons or persons acting on their behalf with active applications with the City; and WHEREAS, Government Code section 81013 provides that a local agency may impose additional laws regulating political practices on any person as long as it does not prevent that person from complying with the Political Reform Act; and WHEREAS, Government Code section 84308 already imposes limits on the solicitation and receipt of contributions for appointed officials from active or recent participants in the entitlement process and the City’s elected officials are required to comply with such rules when they are appointed to other legislative bodies; and WHEREAS, at its December 16, 2020 meeting, the City Council directed staff to bring forth an ordinance for consideration that provided: (1) a campaign contribution limit; (2) limits on contributions by applicants and their agents during the permitting process; (3) limits on solicitation of contributions by elected officials from applicants and their agents during the permitting process; and (4) disclosure requirements from any contributions for a 12-month period prior to any City Council action involving the contributor; and WHEREAS, consistent with current federal case law, nothing in this Ordinance is intended to limit or prohibit independent expenditures; and WHEREAS, the purpose of this Ordinance is to establish limits on the amounts of money that may be directly contributed to political campaigns by persons with active applications in the City’s elections; and WHEREAS, it is the City Council’s intent to address the perception that unregulated campaign contributions lead to improper influence over elected officials and to establish realistic, narrowly tailored and enforceable limits on the amounts which may be contributed to political campaigns consistent with the rights of political expression protected under the United States Constitution. NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: 9.a Packet Pg. 92 Attachment: Attachment 1 - Ordinance - Campaign Contribution Limits on Persons with Active Applications-c1 (7234 : Establishment of Local Ordinance No. MC-1558 2 SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein. SECTION 2. Addition of Chapter 2.55. Chapter 2.55 is hereby added to Title 2 of the San Bernardino Municipal Code to read as follows: “ CHAPTER 2.55 LOCAL CAMPAIGN FINANCE REGULATIONS Sections: 2.55.010 Campaign Contribution Limits to Elective City Office Candidates 2.55.020 Pay-to-Play Restrictions 2.55.030 Enforcement 2.55.010 Campaign Contribution Limits to Elective City Office Candidates Candidates for elective city office shall comply with the state campaign contribution limits including, without limitation, Government Code section 85301. 2.55.020 Pay-to-Play Restrictions A. Definitions. The definitions set forth in this subdivision shall govern the interpretation of this Section 2.55.020: (1) “Party” means any person who files an application for, or is the subject of, a proceeding involving a license, permit, or other entitlement for use. (2) “Participant” means any person who is not a party but who actively supports or opposes a particular decision in a proceeding involving a license, permit, or other entitlement for use and who has a financial interest in the decision, as described in Article 1 (commencing with Section 87100) of Chapter 7 of Title 9 of the Government Code. A person actively supports or opposes a particular decision in a proceeding if he or she lobbies in person the officers or employees of the agency, testifies in person before the agency, or otherwise acts to influence officers of the agency. (3) “Elected Official” means any elected official of the City including the Mayor and all City Council Members. (4) “License, permit, or other entitlement for use” means all business, professional, trade and land use licenses and permits and all other entitlements for use, including all entitlements for land use, all contracts (other than competitively bid, labor, or personal employment contracts), and all franchises. 9.a Packet Pg. 93 Attachment: Attachment 1 - Ordinance - Campaign Contribution Limits on Persons with Active Applications-c1 (7234 : Establishment of Local Ordinance No. MC-1558 3 (5) “Contribution” includes contributions to candidates and committees in federal, state, or local elections. B. Prohibition on Soliciting and Accepting Certain Contributions. No Elected Official shall accept, solicit, or direct a contribution of more than ________ dollars ($____.00) from any party, or his or her agent, or from any participant, or his or her agent, while a proceeding involving a license, permit, or other entitlement for use is pending before the City and for three months following the date a final decision is rendered in the proceeding if the Elected Official knows or has reason to know that the participant has a financial interest, as that term is used in Article 1 (commencing with Section 87100) of Chapter 7 of Title 9 of the Government Code. This prohibition shall apply regardless of whether the Elected Official accepts, solicits, or directs the contribution for himself or herself, or on behalf of any other officer, or on behalf of any candidate for office or on behalf of any committee. C. Elected Official Disclosure Requirements. Prior to rendering any decision in a proceeding involving a license, permit or other entitlement for use pending before the City, each Elected Official who received a contribution within the preceding twelve (12) months in an amount of more than ____________ dollars ($____.00) from a party or from any participant shall disclose that fact on the record of the proceeding. D. Elected Official Disqualification. No Elected Official shall make, participate in making, or in any way attempt to use his or her official position to influence the decision in a proceeding involving a license, permit, or other entitlement for use pending before the agency if the Elected Official has received a contribution in an amount of more than _________________ dollars ($______.00) within the preceding twelve (12) months from a party or his or her agent, or from any participant, or his or her agent if the officer knows or has reason to know that the participant has a financial interest in the decision, as that term is described with respect to public officials in Article 1 (commencing with Section 87100) of Chapter 7 of Title 9 of the Government Code. E. Safe Harbor. If an Elected Official receives a contribution, which would either be prohibited or require disclosure or disqualification under this section, and returns the contribution within 30 days from the time he or she knows, or should have known, about the contribution and the proceeding involving a license, permit, or other entitlement for use, he or she shall be permitted to participate in the proceeding. F. Application to Candidates. Contributions made to candidates for elective office shall subject the candidate to the disclosure and disqualification provisions of subdivisions C and D should the candidate be subsequently elected. Candidates who have become the Council Member-Elect or Mayor-Elect, but who have not yet been sworn in, shall be subject to the prohibition of subdivision B. G. Applicant Restrictions. A party to a proceeding before the City involving a license, permit, or other entitlement for use shall disclose on the record of the proceeding any contribution in an amount of more than ____________ dollars ($____.00) made within the preceding twelve (12) months by the party, or his or her agent, to any Elected Official. No party, 9.a Packet Pg. 94 Attachment: Attachment 1 - Ordinance - Campaign Contribution Limits on Persons with Active Applications-c1 (7234 : Establishment of Local Ordinance No. MC-1558 4 or his or her agent, to a proceeding involving a license, permit, or other entitlement for use pending before the City and no participant, or his or her agent, in the proceeding shall make a contribution of more than ____________ dollars ($____.00) to any Elected Official during the proceeding and for three months following the date a final decision is rendered by the City in the proceeding. When a closed corporation is a party to, or a participant in, a proceeding involving a license, permit, or other entitlement for use pending before the City, the majority shareholder is subject to the disclosure and prohibition requirements herein. 2.55.030 Enforcement [*** City Council to discuss and provide direction***] ” SECTION 3. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional , invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective. SECTION 4. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. SECTION 5. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under section 36933 of the Government Code of the State of California. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: 9.a Packet Pg. 95 Attachment: Attachment 1 - Ordinance - Campaign Contribution Limits on Persons with Active Applications-c1 (7234 : Establishment of Local Ordinance No. MC-1558 5 Sonia R. Carvalho, City Attorney 9.a Packet Pg. 96 Attachment: Attachment 1 - Ordinance - Campaign Contribution Limits on Persons with Active Applications-c1 (7234 : Establishment of Local Ordinance No. MC-1558 6 STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO )ss. CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1558, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the __ day of ___________, 2021. Ordinance No. MC- ____ was approved, passed and adopted at a regular meeting held the __ day of __________, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this __ day of __________ 2021. Genoveva Rocha, CMC, City Clerk 9.a Packet Pg. 97 Attachment: Attachment 1 - Ordinance - Campaign Contribution Limits on Persons with Active Applications-c1 (7234 : Establishment of Local Page 1 Discussion City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Edelia Eveland, Director of Human Resources Subject: Administrative Policy (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and consider the proposed administrative policy and provide direction for modifications or adopt Resolution No. 2021-86 as presented establishing the Municipal Volunteer Program (MVP) Policy. Background The City of San Bernardino is a charter city operating under a council-manager form of government. The City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like. In addition to the City Charter and Municipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City. Discussion On February 3, 2021, the Mayor and Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and elected and appointed officials are operating under a clear set of guidelines that govern the City. Discussed below is the proposed policy and procedure for the use of volunteers. Municipal Volunteer Program (MVP) The Municipal Volunteer Program is the perfect opportunity for the community to get involved in civic activities. Volunteers are an important part of any organization and a valuable asset to the City. Volunteers help to increase responsiveness, delivery o f services and information input, and provide new program opportunities. A volunteer is an individual, including an unpaid intern, who performs a service for the City without promise, expectation, or receipt of compensation for services rendered. Accordin gly, a 10 Packet Pg. 98 7229 Page 2 policy establishing a uniform method for the management of City volunteers to ensure consistency is recommended. This policy will not apply to the Police Department's Volunteer Program established under the San Bernardino Police Department Policy Manual or to volunteers working on a one day assignment for a community clean -up, park improvement project, or similar activity that does not extend beyond a single day of service. Recruitment, Selection, and On-Boarding To begin the recruitment process or to request a volunteer position, a Volunteer Requisition Form (VRF) will need to be submitted to the Human Resources Department for processing. The VRF will be submitted by the department head or designee and will list the duties and responsibilities ass igned to the volunteer, the duration of assignment, and the supervising employee responsible for the oversight of the volunteer. A background investigation will be conducted on each volunteer before on-boarding with the City. A volunteer may not begin their assignment without completing the required paperwork including a volunteer release and waiver of liability form and a confidentiality and non-disclosure agreement to protect the City’s interests. Once the volunteer is clear for on-boarding with the City, the department head or designee shall submit to the Human Resources Department, the Volunteer Access List (VAL) form inclusive of the department head’s signature identifying the information technology and phone access levels requested for the volunteer. Tools and equipment including the office space required for the volunteer will need to be included in the department’s existing authorized budget. Supervision of Volunteers Each volunteer who is accepted to a position with the City must have a clearly identified supervisor, a City employee, responsible for direct management and oversight of that volunteer. The supervisor is responsible for scheduling the volunteer’s hours while keeping the safety of the volunteer a top priority. It is important to consider the nature of the work volunteers are performing and how much attention each requires when determining the number of volunteers assigned to each supervisor. The nature of the work being performed and how much attention it requires in conjunction with supervisors existing deliverables and priorities should govern the number of volunteers assigned. Special Considerations In order to ensure that the City is able to provide the necessary oversight and support for volunteers working with the offices of the Mayor and City Council, this policy establishes limits for the number of assigned volunteers supporting each of our elected officials. Under the MVP policy, each Councilmember will be able to have one (1) volunteer at any given time. Given that the Mayor serves in a full-time position under the City Charter, up to two (2) volunteers can be assigned at one time to the office of the Mayor. Additionally, in order to avoid any conflicts with the Political Reform Act and the use of City facilities and resources for political purposes, a City volunteer working in an elected official’s office cannot simultaneously work (or volunteer) on the elected official’s campaign. 10 Packet Pg. 99 7229 Page 3 End of Assignment At the end of the assignment the requesting department will notify the Human Resources Department and submit a VAL form to turn off all access levels to the City’s systems and process any other necessary paperwork such as the Department of Justice forms to end the subsequent notifications of any activity associated with the volunteer. 2020-2025 Key Strategic Targets and Goals Approval of administrative policies aligns with Key Target No. 7: Focused, Aligned Leadership and Unified Community by establishing consistent clear procedures for staff and elected officials to follow that promote a professional environment and contribute toward a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact There is no financial impact associated with the development of an administrative policy manual beyond dedicated staff time. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, review and consider the proposed administrative policy and provide direction for modifications or adopt Resolution No. 2021-86 as presented establishing the Municipal Volunteer Program (MVP) Policy. Attachments Attachment 1 Resolution 2021-86 Attachment 2 Exhibit A - Municipal Volunteer Program (MVP) Policy Ward: All Synopsis of Previous Council Actions: N/A 10 Packet Pg. 100 Resolution No. 2021-86 RESOLUTION NO. 2021-86 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ESTABLISHING THE MUNICIPAL VOLUNTEER PROGRAM (MVP) POLICY WHEREAS, the City of San Bernardino is a charter city operating under a council- manager form of government; and WHEREAS, the City Charter is the document adopted by voters that defines the organization, powers, functions and essential procedures of the city government and the Municipal Code contains the local laws and regulations adopted by the Mayor and City Council that establish zoning and development standards, traffic regulations, administrative standards and the like; WHEREAS, in addition to the City Charter and Municipal Code, it is important for the City to implement policies and procedures that establish the controls needed to ensure that City employees and elected and appointed officials are able to operate under a clear set of guidelines that align with the laws and regulations that govern the City; and WHEREAS, on February 3, 2021, the City Council provided conceptual support for the development of a comprehensive administrative policy manual to ensure that City employees and elected and appointed officials are operating under a clear set of guidelines that govern the City. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City of San Bernardino Administrative Policy – Municipal Volunteer Policy (MVP) Program, attached hereto and incorporated herein as Exhibit A, is hereby approved. SECTION 3. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. 10.a Packet Pg. 101 Attachment: Attachment 1 - Resolution 2021-86 (7229 : Administrative Policy (All Wards)) Resolution No. 2021-86 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 10.a Packet Pg. 102 Attachment: Attachment 1 - Resolution 2021-86 (7229 : Administrative Policy (All Wards)) Resolution No. 2021-86 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-86, adopted at a regular meeting held on the 21st day of April, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 10.a Packet Pg. 103 Attachment: Attachment 1 - Resolution 2021-86 (7229 : Administrative Policy (All Wards)) EXHIBIT A City of San Bernardino - Administrative Policy Manual City of San Bernardino Administrative Policy Manual Subject: Municipal Volunteer Program (MVP) Purpose: To establish a policy and procedure for the use of volunteers. Authority: Resolution No. ______________ Scope: Unless otherwise stipulated herein, this policy applies to all City volunteers. Qualified volunteers are used for specified tasks and duties to create efficiencies and improve services to the community. Volunteers are an important part of any organization and are a valuable asset to the City. Volunteers help to increase responsiveness, delivery of services and information input, and provide new program opportunities. In addition, volunteers bring new skills and expe rtise to the City and prompt new enthusiasm. A volunteer is an individual, including an unpaid intern, who performs a service for the City without promise, expectation, or receipt of compensation for services rendered . Exemption from Scope This policy shall not apply to Police Department’s Volunteer Program, established under the San Bernardino Police Department Policy Manual. One-day volunteers working on a one day assignment for community clean-up, park improvement project or similar activity that does not extend beyond a single day of service are also exempted from the scope of this policy, and will only be required to sign a volunteer release and waiver of liability; however, each volunteer must have a clearly identified supervisor, a City employee, responsible for direct management and oversight of that volunteer. 10.b Packet Pg. 104 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) Procedure for the Municipal Volunteer Program (MVP) City of San Bernardino - Administrative Policy Manual Policy: Recruitment & Equal Opportunity Volunteers may be recruited on a continuous and ongoing basis. To begin the recruitment process a Volunteer Requisition Form (VRF) shall be su bmitted to the Human Resources Department for processing. The VRF form will be signed by a department head or designee and shall include the duties and responsibilities assigned to the volunteer, the anticipated duration of the assignment, and the supervis ing City employee responsible for oversight of the volunteer. Community members are encouraged get involved in civic activities through volunteer opportunities with the City. A primary qualification for participation in the process should be an interest in, and an ability to assist the City in serving the public. All parties should understand that the recruitment of volunteers is enhanced by creative and interesting assignments. The City affords equal opportunity to all qualified volunteers, and prohibits discrimination on the basis of race, religious creed, disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age (40 and over), sexual orientation, or military and veteran status or ot her basis protected by law. Background Investigation A background investigation will be conducted on each volunteer before onboarding with the City. The investigation may include references and background information, including criminal records of individual candidate’s consistent with applicable state and federal laws and regulations. The volunteer will not be privy to any information revealed during the course of the background investigation or receive feedback about the investigation. Any false statement, either written or verbal, will cause the volunteer’s name to be removed from consideration for the volunteer program and will be cause for immediate dismissal if an appointment has been made. Selection and Placement Service as a volunteer with the City will begin with an official notice of acceptance or appointment to a volunteer position. Notice may only be given by an authorized representative of the City. No volunteer will begin any assignment until they have been officially accepted for a position and completed all required screening and paperwork, including but not limited to a volunteer release and waiver of liability. Volunteers should 10.b Packet Pg. 105 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) Procedure for the Municipal Volunteer Program (MVP) City of San Bernardino - Administrative Policy Manual be placed only in assignments or programs that are consistent with their knowledge, skills, abilities and the needs of the City. The department head or designee shall submit to the Human Resources Department, the Volunteer Access List (VAL) form inclusive of the department head’s signature identifying the information technology and phone access levels requested for the volunteer. Tools and equipment including the office space required for the volunteer will need to be included in the department’s existing authorized budget. Confidentiality and Non-Disclosure All volunteers are required to abide by the same standards of confidentiality and non- disclosure required by employees of the City. With appropriate clearance, volunteers may have access to confidential, sensitive, or privileged information or materials. Unless otherwise directed by a supervising City employee, all such information shall be considered confidential. Only that information specifically identified and approved by authorized personnel will be released. The use of any confidential, sensitive, or privileged materials, and removing materials or reproductions is strictly prohibited, except as required in the rightful discharge of the duties performed by the volunteer. Each volunteer will be required to sign a nondisclosure agreement before being given an assignment. Subsequent unauthorized disclosure of any confidential information, verbally, in writing or by any other means, by the volunteer is grounds for immediate removal. Additionally, the City may seek other criminal or civil sanctions or damages allowed by law. Supervision of Volunteers Each volunteer who is accepted to a position with the City must have a clearly identified supervisor, a City employee, responsible for direct management and oversight of that volunteer. The supervisor is responsible for scheduling the volunteer’s hours while keeping the safety of the volunteer a top priority, will be responsible for day-to-day management and guidance of the work of the volunteer, and should be available to the volunteer for consultation and assistance. A volunteer may be assigned and act as a supervisor of other volunteers provided that the supervising volunteer is under the direct supervision of a City employee at all times. Following are some considerations to keep in mind while supervising volunteers: (a) Take the time to introduce volunteers to employees on all levels. (b) Ensure volunteers have work space and necessary office supplies. (c) Make sure the work is challenging. Do not hesitate to give them an 10.b Packet Pg. 106 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) Procedure for the Municipal Volunteer Program (MVP) City of San Bernardino - Administrative Policy Manual assignment or task that will tap these valuable resources. It is important to consider the nature of the work volunteers are performing and how much attention each requires when determining the number of volunteers assigned to each supervisor. For example, assignments with high degrees of collaboration and interaction might productively tolerate no more one or two volunteers. The nature of the work being performed and how much attention it requires in conjunction with supervisors existing deliverables and priorities should govern the number of volunteers assigned. Mayor and City Council Special Considerations In order to ensure that the City is able to provide the necessary oversight and support for volunteers working with the offices of the Mayor and City Council this policy establishes limits for the number of assigned volunteers suppo rting each of our elected officials. Under the MVP policy, each Councilmember will be able to have one (1) volunteer at any given time. Given that the Mayor serves in a full -time position under the City Charter, up to two (2) volunteers can be assigned at one time to the office of the Mayor. Additionally, in order to avoid any conflicts with the Political Reform Act and the use of City facilities and resources for political purposes, a City volunteer working in an elected official’s office cannot simultaneously work (or volunteer) on the elected official’s campaign. Property and Equipment Volunteers will be issued an identification card that must be worn at all times while onsite or performing the duties of their assignment with the City. Volunteers shall not maintain they represent the City in any matters outside the scope of their assignment, and will be identified as City volunteer in all communications. If a working title is used, the title will include the volunteer designation for enhanced transparen cy. For example, if the volunteer is an office worker then title used by the volunteer would be “VOLUNTEER Office Worker.” All property and equipment will need to remain onsite or under the supervision of the City employee. Volunteers shall not be allowed to drive City vehicles or drive their personal vehicle for City business. Fitness for Duty No volunteer shall report to their assignment when their judgment or physical condition has been impaired by alcohol, medication, and other substances. 10.b Packet Pg. 107 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) Procedure for the Municipal Volunteer Program (MVP) City of San Bernardino - Administrative Policy Manual Dress Code Volunteers are responsible for presenting a profe ssional image to the community. Volunteers shall dress appropriately for the conditions and performance of their duties. End of Assignment Any fixed and portable equipment issued by the City is for offi cial and authorized use only. Any property or equipment issued to a volunteer will remain the property of the City and shall be returned at the end of the assignment to the volunteer supervisor. Procedure: Responsibility Action Requesting Department 1. Prepare a Volunteer Requisition Form Human Resources Department 2. Contact requesting department to review volunteer criteria and when appropriate forward qualified candidates for department review Human Resources Department 3. Complete Background Investigation Human Resources Department 4. Onboarding paperwork Requesting Department 5. Complete the Volunteer Access List form Requesting Department 6. On completion of volunteer’s assignment provide notification to the Human Resources Department + submit the Volunteer Access form ATTACHMENTS 1. Volunteer Requisition Form (VRF) 2. Volunteer Access List (VAL) 3. Confidentiality and Non-Disclosure Agreement 4. Volunteer Release and Waiver of Liability 10.b Packet Pg. 108 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) Volunteer Requisition Form CITY OF SAN BERNARDINO PURPOSE: To request a recruitment to appoint a volunteer or to process associated paperwork to appoint a volunteer. INSTRUCTIONS: Forward the completed form (electronic or hard copy) to the Human Resources Department by Wednesday in order for the recruitment to be considered to open on Monday. For assistance call 909-384-5104. Department Name: Assigned Division: Primary Contact: Ext: Alternate Contact: Ext: Request date to open recruitment: Number of volunteers to be appointed: Duration of Assignment: ANTICIPATED TIMEFRAME Volunteer’s Supervisor: PRINT NAME (City Employee) Department Head Signature: Department Head: Date: PRINT NAME Established: 03/17/2021 Justification/Reason for Request: Volunteer’s Assigned Duties & Responsibilities: Desired Knowledge, Skills, & Abilities that will meet the needs of the Department: 10.b Packet Pg. 109 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) Page 1 of 1 Est: 03/17/21 Volunteer Access List (VAL) Action: Appointment Effective Date: Name, Title & Department /Division Assignment Name: Include legal name and, if applicable, preferred/nickname in parentheses New Name if Changed: Department: Division: Limited Term: ☐Yes ☐ No If “Yes” Anticipated End Date: Existing Desk/Landline Phone #: Existing Desk/Landline Phone Extension #: Work Scheduled & Location Employee’s Work Location: Work Days & Hours: Information Technology & Phone Access Requests REQUEST ACCESS ☐ Windows Account (includes Internet Access) ☐ Activate ☐ Modify ☐ Remove ☐ E-Mail Box ☐ Activate ☐ Modify ☐ Remove ☐ U-Drive/ S-Drive/ T-Drive ☐ Activate ☐ Modify ☐ Remove ☐ New Desk/Landline Phone ☐Main#: Ext#: ☐ Activate ☐ Modify ☐ Remove ☐ CRM System - Assign Open Requests to: ☐ Activate ☐ Modify ☐ Remove ☐ Intranet Phonebook Entry ☐ Activate ☐ Modify ☐ Remove ☐ Other: ☐ Activate ☐ Modify ☐ Remove ☐ Other: ☐ Activate ☐ Modify ☐ Remove ☐ Other: ☐ Activate ☐ Modify ☐ Remove Badge ☒ City Badge Card: Card ☐ Activate ☐ Modify ☐ Remove ☐ Replace** Card Access Hours: ☐ PD Access Badge Card: ☐ Activate ☐ Modify ☐ Remove ☐ Replace Department Point of Contact: Department Head Signature: Date: *Please note that supervisors are responsible at the time of separation to ensure all City property items are collected (badge, parking permits, etc). **A $10 replacement fee will be charged to volunteers for lost, stolen or damaged badges. Notes: Please identify permission level for requests. SEPARATIONS: Please list the last date physically worked. Temporarily Disable All Access Delete All Access 10.b Packet Pg. 110 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) CONFIDENTIALITY AND NON-DISCLOSURE AGREEMENT I, _________________________, as a volunteer of the City of San Bernardino (“City”), will abide by the same standards of confidentiality and non-disclosure required by employees of the City. I understand that I may come into contact with confidential, sensitive, or privileged materials. I agree to maintain the confidentiality of such information and will not divulge such materials to anyone for any purpose without the express consent or direction of my supervisor or other City personnel. I agree that I will not use any confidential, sensitive, or privileged materials for myself or others, and that I will not take any materials or reproductions thereof containing confidential, sensitive, or privileged materials from City facilities at any time during or after my volunteer service, except as required in the rightful discharge of my duties for the City. I understand and agree that my failure to comply with the confidentiality requirements set forth in this Agreement is grounds for discipline up to and including termination of the volunteer relationship. Additionally, the City may seek other criminal or civil sanctions or damages allowed by law. I understand that confidential information covered by this Agreement includes: a) Any attorney-client privileged materials, attorney work product, or closed session materials. b) City employee personal identification information, employee work schedules, employee numbers, code combinations to doors, gates, secure areas, etc., and any other private personal, protected or sensitive information that is only disclosed to volunteers by virtue of their service to the City. c) All data and information related to the City computer systems, computer printouts, internal memorandums, briefing notes, e-mails, passwords and any other material, whether written or oral, that relates to the function of the City. d) All personal data and information learned, discovered, overheard, etc., in the course of volunteer’s service related to a private, protected or sensitive nature. The restrictions of this Agreement regarding use and disclosure of information shall continue to apply after termination of the volunteer relationship. I HAVE READ AND UNDERSTAND THIS AGREEMENT AND AGREE TO COMPLY WITH IT IN EVERY RESPECT. VOLUNTEER DATE 10.b Packet Pg. 111 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) City of San Bernardino VOLUNTEER RELEASE & WAIVER OF LIABILITY Required by the City of San Bernardino for all volunteers. Please read carefully! This is a legal document that affects your legal rights. I want to participate in volunteer activities for the City of San Bernardino, henceforth referred to as City. As a City volunteer, I freely, voluntarily, and without duress execute this Release and Waiver under the following terms: 1. Assumption of Risk. I understand that my work for the City may include activities that are hazardous and/or physically strenuous and that I may be exposed to personal injury or damage to my property as a result of my activities, the activities of other persons, or the conditions under which my services are performed while participating in City volunteer activities. Though the City will provide me with support, supervision, training, and supplies to accomplish assigned tasks, I agree to th e following:  □ I will follow all instructions provided by the City, its employees, or volunteer coordinators.  □ I will only use equipment that I know how to operate and use safely.  □ I will not undertake any activity for which I do not feel sufficiently prepared or able and until I have received instructions.  □ I will take all reasonable precautions to avoid injury to myself and to others and damage to property.  □ Finally, I agree to assume the risk of injury or harm and release the City, its officers, directors, employees, and other City volunteers from all liability for injury, illness, death, or property damage arising from my work as a volunteer. 2. Waiver and Release. I hereby release and forever discharge and agree to indemnify, protect, defend and hold the City, its elected officials, boards, commissions, officers, agents and employees free and harmless from any and all claims, liabilities , losses, liens, damages, costs and expenses resulting from injury or death of any person or persons’ property damage or that may arise out of my work as a volunteer. I understand that this release discharges the above entities from any liability that may result from my work whether or not caused by the negligence of the City. 3. Medical Treatment. I release and discharge the City from any claim that arises or may arise due to any first aid, medical treatment, or service rendered to me. 4. Insurance. The City does not have responsibility for providing any health, medical or disability insurance coverage for me. IT IS MY RESPONSIBILITY AS A VOLUNTEER TO ENSURE I HAVE MEDICAL/HEALTH INSURANCE. □ I understand that if I drive my personal vehicle for City business while volunteering, I must have a valid driver’s license and proof of auto insurance. 5. Photographic Release. I grant to the City the right to use photographic images and video or audio recordings of me that are made by the City or others during my volunteer work for the City. 6. Duration of Release. My agreement to the terms in this Release & Waiver applies as long as I volunteer for the City. 7. Other. I agree that this Release and Waiver is intended to be as broad and inclusive as permitted by the laws of California and that this Release and Waiver is governed by and will be interpreted according to the laws of California. I understand that should any part of this Release and Waiver be ruled invalid by a court, the other parts will remain valid and continue to be in effect. I certify that I am at least eighteen (18) years of age or have had this document signed by my parent or guardian. PRINT Adult’s Name If consenting for a minor, print name(s) on lines above and below Street Address City, State, Zip Telephone E-mail Address __ Signature Date Emergency Contact Telephone 10.b Packet Pg. 112 Attachment: Attachment 2 - Exhibit A - Municipal Volunteer Program (MVP) Policy [Revision 3] (7229 : Administrative Policy (All Wards)) Page 1 Public Hearing City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Accessory Dwelling Unit Ordinance (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Introduce, read by title only, and waive further reading of Ordinance No. MC - 1559 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 21-01 amending Title 19 (Development Code) of the City of San Bernardino Municipal Code to establish standards for Accessory Dwelling Units and finding the statutory exemption under the California Environmental Quality Act; and 2. Schedule the second reading of the above Ordinance to the regularly scheduled meeting of the Mayor and City Council on May 5, 2021. Background The State of California has identified an Accessory Dwelling Unit (“ADU”) as providing an important housing option to both renters and homeowners. Due to their limited size, ADUs typically cost less to construct than other types of housing, provide convenient housing for family members, help ease a severe shortage of rental housing in the state, maximize limited land resources, and assist homeowners with supplemental income. Over the course of the past five (5) years, the California Legislature has amended the Government Code to enact legislation whereby local jurisdictions may regulate the construction of Accessory Dwelling Units, as follows: On September 27, 2016, Senate Bill No. 1069 and Assembly Bill No. 2299 were signed into law to amend Government Code §65852.2, effective January 1, 2017, relating to the creation of Accessory Dwelling Units in single -family and multiple- family residential zones. Any local ordinance that was adopted prior to the effective date that was not in compliance with the new law was found to be null and void. 11 Packet Pg. 113 7255 Page 2 Consistent with state law, and commencing on January 1, 2017, the City began permitting Accessory Dwelling Units in compliance with state law until such time that the City adopts an ordinance in compliance with Government Code §65852.2. On October 7, 2017, Senate Bill No. 229 and Assembly Bill No. 494 were signed into law further amending Government Code Section 65852.2, effective January 1, 2018, to revise the standards for the creation of Accessory Dwelling Units. In 2019, the State enacted six (6) statutes pertaining to permitting and regulating Accessory Dwelling Units, including: Senate Bill 13 and Assembly Bills 68, 587, 670, 671, and 881. Senate Bill 13, Assembly Bills 68 and amended some of the same provisions and overlapped, so only c ertain sections in each became law. These statutes created further limitations on local jurisdictions ability to impose regulatory requirements on ADUs. In 2020, the State passed Assembly Bill 3182 providing for the most recent amendments to the standards for the creation of Accessory Dwelling Units. The City’s existing Second Dwelling Unit Standards (Accessory Dwelling Units) contained in Section 19.04.030(2)(P) of the City of San Bernardino Development Code were last updated in December 2013. However, as a result of the abovementioned state legislation, the existing Second Dwelling Unit Standards are no longer in compliance with State law, which rendered them null and void as of January 1, 2017. Since that time, and until the City adopts a compliant ordinance, the City is required to enforce the State regulations for Accessory Dwelling Units. On March 23, 2021, the Planning Commission unanimously adopted Resolution No. 2021-010 forwarding a recommendation that the Mayor and City Council approve Development Code Amendment 21-01 amending Title 19 (Development Code) of the City of San Bernardino Municipal Code to establish new standards for Accessory Dwelling Units (Attachment 2). A notice of the April 21, 2021 public hearing for the Mayor and City Cou ncil's consideration of this proposed Code Amendment was published in The Sun newspaper on April 10, 2021 (Attachment 3). Discussion Under Development Code Amendment 21-01, staff and the City Attorney’s office have prepared the proposed regulations for th e development of Accessory Dwelling Units. These new regulations would replace the previous requirements in Development Code Section 19.04.030(2)(P) (Second Dwelling Units) and have been prepared in compliance with the amended Government Code §65852.2. Significant Changes As a result of the recent legislation, an accessory dwelling unit only requires approval as a ministerial action (i.e. Building Permit) subject to compliance with 11 Packet Pg. 114 7255 Page 3 adopted development standards. In no case can the City restrict a detached Accessory Dwelling Unit of less than 800 square feet. No setbacks may be required for the conversion of an existing structure (e.g., detached garage, accessory building) to an Accessory Dwelling Unit. Converted attached or detached garage parking s hall not be required to be replaced when those spaces are lost as a result of the conversion. Junior Accessory Dwelling Units are permitted. Either the primary dwelling unit or Junior Accessory Dwelling Unit shall be occupied by the property owner as their primary residence when the property contains a Junior Accessory Dwelling Unit. Accessory Dwelling Units are permitted, subject to specific requirements, in any property that is zoned for single-family residential, multiple-family residential or mixed-use development. Proposed Changes The maximum unit size of an attached Accessory Dwelling Unit is limited to 850 square feet for a studio or one-bedroom and 1,000 square feet for a two bedroom ADU. A detached Accessory Dwelling Unit may be located up to a minimum of four (4) feet from the side or rear property line. The maximum height of a detached Accessory Dwelling Unit shall not exceed sixteen (16) feet. Prior to issuance of a building permit for an Accessory Dwelling Unit, the property owner shall record a deed restriction in a form approved by the City to notify subsequent owners of the requirements of Section 19.04.030(2)(P) (Accessory Dwelling Units). General Plan Goals and Policies The City of San Bernardino General Plan includes goals and policies to guide future Accessory Dwelling Units, as follow: Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods. Land Use Element Policy 2.1.1: Actively enforce development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s neighborhoods. The adoption and implementation of Development Code Amendment 21 -01 is consistent with the City’s General Plan by allowing for the development of Accessory Dwelling Units within the residential and mixed-use zones in a manner that will prevent negative impacts to the existing residential neighborhoods and the community at -large. While at the same time, as regulated by Development Code Amendment 21 -01, new Accessory Dwelling Units will serve the City’s housing needs in compliance with California Government Code §65852.2. 11 Packet Pg. 115 7255 Page 4 2020-2025 Key Strategic Targets and Goals Development Code Amendment 21-01 aligns with Key Target No. 3: Improved Quality of Life. Specifically, the proposed Code Amendment will provide additional flexibility for the establishment of Accessory Dwelling Units in the community providing another source of more affordable housing potentially reducing the burden of homelessness. California Environmental Quality Act The Planning Division conducted an environmental evaluation in connection with proposed Development Code Amendment 21-01 and concluded that the Development Code Amendment is exempt from CEQA under Section 15282(h) (Other Statutory Exemptions) of the CEQA Guidelines due to the fact that the activity involves the adoption of an ordinance regulating Accessory Dwelling Units within a single -family or multiple-family residential zone to implement the provisions of §65852.1 and §65852.2 of the California Government Code as set forth in §21080.17 of the Public Resources Code. Fiscal Impact There will be no fiscal impact to the City’s General Fund as a result of this action. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Introduce, read by title only, and waive further reading of Ordinance No. MC - 1559 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment 21-01 amending Title 19 (Development Code) of the City of San Bernardino Municipal Code to establish standards for Accessory Dwelling Units and finding the statutory exemption under the California Environmental Quality Act; and 2. Schedule the second reading of the above Ordinance to the regularly scheduled meeting of the Mayor and City Council on May 5, 2021. Attachments Attachment 1 Ordinance No. MC-1559 (Development Code Amendment 21-01) Attachment 2 Ordinance No. MC-1559; Exhibits Attachment 3 Planning Commission Resolution No. 2021-010 Attachment 4 Public Hearing Notice Attachment 5 ADU PowerPoint Ward: All Synopsis of Previous Council Actions: None 11 Packet Pg. 116 Ordinance No. MC-1559 1 ORDINANCE NO. MC-1559 ORDINANCE OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING DEVELOPMENT CODE AMENDMENT 21-01 AMENDING TITLE 19 (DEVELOPMENT CODE) OF THE CITY OF SAN BERNARDINO MUNICIPAL CODE TO ESTABLISH STANDARDS FOR ACCESSORY DWELLING UNITS; AND FINDING THE STATUTORY EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT WHEREAS, Accessory Dwelling Units have been identified by the State as providing an important housing option to both potential renters and homeowners. They typically cost less than other types of housing, provide convenient housing for family members, help ease a severe rental housing deficit, maximize limited land resources and existing infrastructure, and assist homeowners with supplemental income; WHEREAS, on September 27, 2016, the Governor signed Assembly Bill 2299 and Senate Bill 1069 amending California Government Code Section 65852.2 as it pertained to the development of Accessory Dwelling Units; WHEREAS, on January 1, 2017, amended California Government Code Section 65852.2 came into effect nullifying Section 19.04.030(2)(P) of the City of San Bernardino Development Code regarding Accessory Dwelling Units; WHEREAS, on October 8, 2017, the Governor signed Assembly Bill 494 and Senate Bill 229 further amending California Government Code Section 65852.2 as it pertained to the development of Accessory Dwelling Units; WHEREAS, on October 9, 2019, the Governor signed Assembly Bill 494 and Senate Bill 229 further amending California Government Code Section 65852.2 as it pertained to the development of Accessory Dwelling Units and Junior Accessory Dwelling Units; WHEREAS, on September 28, 2020, the Governor signed Assembly Bill 3182 further amending California Government Code Section 65852.2 as it pertained to the development of Accessory Dwelling Units and Junior Accessory Dwelling Units; WHEREAS, on January 1, 2021, amended California Government Code Section 65852.2 came into effect; WHEREAS, Development Code Amendment 21-01 is a City-initiated amendment to the City of San Bernardino Development Code (Title 19) in order to establish standards for Accessory Dwelling Units in order to comply with California Government Code 65852.2; 11.a Packet Pg. 117 Attachment: Attachment 1 - Ordinance MC-1559 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Ordinance No. MC-1559 2 WHEREAS, the Planning Division of the Community and Economic Development Department of the City of San Bernardino has prepared Development Code Amendment 21-01 for consistency with the City of San Bernardino General Plan and compliance with the City of San Bernardino Development Code; WHEREAS, pursuant to requirements of the California Environmental Quality Act (“CEQA”), the Planning Division of the Community and Economic Development Department evaluated Development Code Amendment 21-01 and determined that it is exempt from CEQA under Section 15282(h) (Other Statutory Exemptions) of the CEQA Guidelines; WHEREAS, on March 23, 2020, the Planning Commission of the City of San Bernardino held a duly noticed public hearing to consider public testimony and the staff report, and adopted Resolution 2021-010 forwarding a recommendation of approval of Development Code Amendment 21-01 to the Mayor and City Council; WHEREAS, notice of the April 21, 2020 public hearing for the Mayor and City Council's consideration of this proposed Ordinance was published in The Sun newspaper on April 10, 2020 in accordance with Development Code Chapter 19.52; and WHEREAS, pursuant to the requirements of Chapters 19.52 (Hearing and Appeals) and Chapter 19.42 (Development Code Amendments) of the City of San Bernardino Development Code, the Mayor and City Council have the authority to take action on Development Code Amendment 21-01. NOW THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DO ORDAIN AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Compliance with the California Environmental Quality Act. As the decision-making body for the project, the Mayor and City Council has reviewed and considered the information contained in the administrative record for Development Code Amendment 21-01. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the Mayor and City Council, the Mayor and City Council hereby finds, as follows: (1) The administrative record has been completed in compliance with the California Environmental Quality Act (“CEQA”), the State CEQA Guidelines, and the City’s Local CEQA Guidelines; (2) The proposed project is exempt from the requirements of the California Environmental Quality Act (“CEQA”) under Section 15282(h) (Other Statutory Exemptions) of the CEQA Guidelines due to the fact that the activity involves adoption of an ordinance regarding accessory dwelling units in a single-family or multiple-family residential zone by a city or county to implement the provisions of Section 65852.2 of the California Government Code as set forth in Section 21080.17 of the Public Resources Code; and 11.a Packet Pg. 118 Attachment: Attachment 1 - Ordinance MC-1559 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Ordinance No. MC-1559 3 (3) The determination of CEQA exemption reflects the independent judgment of the Mayor and City Council. SECTION 3. Finding of Facts – Development Code Amendment 21-01 Finding No. 1: The proposed amendment is consistent with the General Plan. Finding of Fact: Development Code Amendment 20-01 is consistent with the General Plan, as follows: Land Use Goal 2.1: Preserve and enhance San Bernardino’s unique Neighborhoods. Land Use Element Policy 2.1.1: Actively enforce development standards, design guidelines, and policies to preserve and enhance the character of San Bernardino’s neighborhoods. San Bernardino contains a wide range of neighborhoods accommodating an assortment of lifestyles: from the urban downtown multiple-family dwellings, to student housing, to new and older suburban enclaves, to hillside and golf course estates, to rural estates. Each neighborhood has, or can have, its own unique character that is a source of pride for the residents. Neighborhood character is defined by many factors: what the neighborhood looks like, what it feels like, how well it is maintained, etc. But more importantly, it is an image in the minds of those who live and work there and in the perceptions of those who visit. Some neighborhoods in San Bernardino are a source of pride for residents, as reflected by the quality of their homes, the diversity of their residents, the beauty of their streetscapes, and the availability of and access to, open space and recreation opportunities. Other neighborhoods are in need of assistance to help maintain, upgrade, and improve safety and aesthetics. One thing is certain in the Vision for San Bernardino, there is a strong desire to maintain, enhance, and improve the various neighborhoods in the community. The adoption and implementation of Development Code Amendment 21- 01 is consistent with the City’s General Plan by allowing for the development of Accessory Dwelling Units within the single-family residential and multi-family residential zones in a manner that will prevent negative impacts to the existing residential neighborhoods and the community at-large. While at the same time, as regulated by Development Code Amendment 21-01, new Accessory Dwelling Units will serve the City’s housing needs in compliance with California Government Code Section 65852.2. Finding No. 2: The proposed amendment would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. 11.a Packet Pg. 119 Attachment: Attachment 1 - Ordinance MC-1559 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Ordinance No. MC-1559 4 Finding of Fact: The adoption and implementation of Development Code Amendment 21- 01 is necessary and desirable for the development of the community and is in the interests or furtherance of the public health, safety, convenience, and general welfare. In enacting the aforementioned legislation the State Legislature identified Accessory Dwelling Units (ADU) has an important housing option for renters and homeowners, given the undersupply of housing that exists in the State. Development Code Amendment 21-01 will bring the City’s Development Code into compliance with these aforementioned statutes. SECTION 4. Development Code Amendment 21-01 to amend the City of San Bernardino Development Code (SBMC Title 19) attached hereto and incorporated herein by reference as EXHIBIT “A” through “D,” is hereby approved. SECTION 5. Notice of Determination: The Planning Division of the Community and Economic Development Department is hereby directed to file a Notice of Determination with the County Clerk of the County of San Bernardino within five (5) working days of final project approval certifying the City’s compliance with the California Environmental Quality Act in approving the Project. SECTION 6. Severability: If any section, subsection, subdivision, sentence, or clause or phrase in this Ordinance or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional, invalid, or ineffective. SECTION 7. Effective Date. This Ordinance shall become effective thirty (30) days after the date of its adoption. SECTION 8. Notice of Adoption. The City Clerk of the City of San Bernardino shall certify to the adoption of this Ordinance and cause publication to occur in a newspaper of general circulation and published and circulated in the City in a manner permitted under Section 36933 of the Government Code of the State of California. 11.a Packet Pg. 120 Attachment: Attachment 1 - Ordinance MC-1559 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Ordinance No. MC-1559 5 APPROVED and ADOPTED by the City Council and signed by the Mayor and att ested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 11.a Packet Pg. 121 Attachment: Attachment 1 - Ordinance MC-1559 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Ordinance No. MC-1559 6 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Ordinance No. MC-1559, introduced by the City Council of the City of San Bernardino, California, at a regular meeting held the ____ day of _________, 2021. Ordinance No. MC - _______ was adopted by the City Council of the City of San Bernardino, California, at a regular meeting held at the ___ day of _________, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ IBARRA FIGUEROA SHORETT REYNOSO CALVIN ALEXANDER WITNESS my hand and official seal of the City of San Bernardino this ___ day of _________, 2021. Genoveva Rocha, CMC, City Clerk 11.a Packet Pg. 122 Attachment: Attachment 1 - Ordinance MC-1559 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT A Development Code Section 19.02.050 (Definitions) 19.02.050 (Definitions) shall be modified to read as follows: Granny Flat. An additional dwelling unit intended for the sole occupancy of 1 or 2 adult persons who are 62 years of age or over, and the floor area of the attached “granny” flat dwelling unit does not exceed 30 percent of the existing living area of the primary residence or the floor area of the detached “granny” flat dwelling unit does not exceed 1,200 square feet on a lot designated as residential, as defined in Government Code Section 65852.1. Second Dwelling Unit. An additional dwelling unit which may be rented, and the floor area of the attached second dwelling unit does not exceed 30 percent of the existing living area of the primary residence or the floor area of the detached second dwelling unit does not exceed 1,200 square feet on a lot designated as residential, as defined in Government Code Section 65852.2. 11.b Packet Pg. 123 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT B Development Code Section 19.04.020 (Permitted, Development Permitted, and Conditionally Permitted Uses) 19.04.020 (Permitted, Development Permitted, and Conditionally Permitted Uses); Table 04.01 (Residential Zones – Permitted, Development Permitted, and Conditionally Permitted Uses) shall be modified to read as follows: TABLE 04.01 PERMITTED, DEVELOPMENT PERMITTED, AND CONDITIONALLY PERMITTED USES LAND USE ACTIVITY RE RL RS RU RM RMH RH RSH 1. Residential Uses A. Community Care Facility (6 or less) P P P P P P P X B. Condominium or Townhouse D D D D D D D X C. Convalescent Homes X X X C D D D X D. Day Care Center C C C C C C C X E. Day Care Homes, Family 8 or less children P P P P P P P X 9 to 15 children D D D D D D D X F. Dormitories/Fraternity/Sorority X X X X C C C X G. Homeless Facilities X X X X C C C X H. Manufactured Housing D D D D D D D X I. Mobile Home Parks or Subdivisions D D D D D D D X J. Multi-Family Dwellings X X X D D D D X K. Multi-Family Dwellings, Existing X X X P P P P X L. Planned Residential Developments X X X D D D D X M. Second Accessory Dwelling Unit P P P P P P P P N. Senior Citizen/Congregate Care Housing X X X D D D D X O. Single-Family Dwellings D D D D D D D X P. Single-Family Dwellings, Existing P P P P P P P X Q. Small Lot Subdivision X X X D D D D X R. Student Housing Complex X X X X X X X C 11.b Packet Pg. 124 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT C Development Code Section 19.02.030(1) (General Standards) 19.02.030(1) (General Standards) shall be modified to read as follows: 1. GENERAL STANDARDS The standards contained in Table 04.02 (Residential Development Standards) relating to density, lot area and configuration, building setbacks, building lot coverage and height, accessory building and structure height, distance between buildings, and private outdoor living space, apply to all residential zones, and shall be determined to be minimum requirements, unless stated as maximum by this Development Code. A. Single-Family Dwellings located in the RU, RM, RMH, or RH zones shall be constructed in compliance with the development standards for the RS zone. B. Accessory Dwelling Units shall be constructed in compliance with the requirements of Section 19.04.030(2)(P). 11.b Packet Pg. 125 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT D Development Code Section 19.04.030(2) (Residential Zones Specific Standards) 19.04.030(2) (Residential Zones Specific Standards); Table 04.03 (Residential Zones Specific Standards) shall be modified to read as follows: TABLE 04.03 RESIDENTIAL ZONES SPECIFIC STANDARDS Specific Standards RE RL RS RU RM RMH RH RSH CO CG-2 CR-2 A. Accessory Structure + + + + + + + + + + B. Day Care Facility + + + + + + + + + + C. Day Care Home, + + + + + + + Large Family D. Density Bonus/Affordable + + + + + + + + + + Housing or Amenities E. Front/Rear Yard + + + + + Averaging F. Golf Courses & Related + + + + + + + Facilities G. Guest House + + + + H. Minimum Room Size + + + + + + + + + + I. Minimum Dwelling Size + + + + + + + + + + J. Mobile Home & + + + + + + + Manufactured Housing K. Mobile Home Park or + + + + + + + Subdivision L. Multiple Family Housing + + + + + + M. Multi-Family Housing, + + + + Existing N. Planned Residential + Development O. Recreational Vehicle + + + + + + + Storage P. Second Accessory Dwelling Unit + + + + + + + Q. Senior Citizen/ + + + + + + + Congregate Care Housing R. Single-Family Dwellings, + + + + + + + + + + Existing S. Small Lot Subdivisions + T. Social Service Uses/ + + + + + + Centers U. Vocational/Trade Schools + V. Student Housing Complex + Key: “+” applies in the zone. 11.b Packet Pg. 126 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT D 19.04.030(2)(P) (Second Dwelling Unit Housing Design Standards Standards) shall be replaced by the following: P. Accessory Dwelling Units 1. Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code sections 65852.2 and 65852.22. 2. Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be: a. Deemed to be inconsistent with the city’s general plan and zoning designation for the lot on which the ADU or JADU is located. b. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located. c. Considered in the application of any local ordinance, policy, or program to limit residential growth. d. Required to correct a nonconforming zoning condition, as defined in subsection 3.g below. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12. 3. Definitions. As used in this section, terms are defined as follows: a. “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following: i. An efficiency unit, as defined by section 17958.1 of the California Health and Safety Code; and ii. A manufactured home, as defined by section 18007 of the California Health and Safety Code. b. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot. c. “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. d. “Efficiency kitchen” means a kitchen that includes each of the following: i. A cooking facility with appliances. ii. A food preparation counter or counters that total at least 15 square feet in area. iii. Food storage cabinets that total at least 30 square feet of shelf space. e. “Junior accessory dwelling unit” or “JADU” means a residential unit that i. is no more than 500 square feet in size, ii. is contained entirely within an existing or proposed single-family structure, 11.b Packet Pg. 127 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT D iii. includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure, and iv. includes an efficiency kitchen, as defined in subsection 3.d above. f. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure. g. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards. h. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU. i. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting. j. “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public. k. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another. 4. Approvals. The following approvals apply to ADUs and JADUs under this section: a. Statutory Criteria. If an ADU or JADU complies with each of the general requirements in subsection 5 below, it is allowed with only a building permit in the following scenarios established by statute: i. Converted on Single-family Lot: One ADU as described in this subsection 0 and one JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU: a) Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and b) Has exterior access that is independent of that for the single-family dwelling; and c) Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes. ii. Limited Detached on Single-family Lot: One detached, new-construction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under subsection 0 above), if the detached ADU satisfies each of the following limitations: a) The side- and rear-yard setbacks are at least four-feet. b) The total floor area is 800 square feet or smaller. c) The peak height above grade is 16 feet or less. iii. Converted on Multifamily Lot: One or more ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this subsection 0, at least one converted ADU is allowed within an existing multifamily 11.b Packet Pg. 128 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT D dwelling, up to a quantity equal to 25 percent of the existing multifamily dwelling units. iv. Limited Detached on Multifamily Lot: No more than two detached ADUs on a lot that has an existing multifamily dwelling if each detached ADU satisfies both of the following limitations: a) The side- and rear-yard setbacks are at least four-feet. b) The peak height above grade is 16 feet or less. b. Additional Criteria. i. An ADU that does not qualify under the criteria set forth in subsection 4.a above may be created with a building permit if it complies with the standards set forth in subsections 5 and 6 below. c. Process and Timing. i. An ADU application is considered and approved ministerially, without discretionary review or a hearing. ii. The City must act on an application to create an ADU or JADU within 60 days from the date that the City receives a completed application. If the City does not act upon the completed application within 60 days, the application is deemed approved unless either: a) The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or b) When an application to create an ADU or JADU is submitted with a permit application to create a new single-family dwelling on the lot, the City may delay acting on the permit application for the ADU or JADU until the City acts on the permit application to create the new single-family dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing. 5. General ADU and JADU Requirements. The following requirements apply to all ADUs and JADUs that are approved under subsections 4.a or 4.b above: a. Zoning. i. An ADU or JADU subject only to a building permit under subsection 4.a above may be created on a lot in a residential or mixed-use zone. ii. An ADU or JADU subject to an ADU permit under subsection 4.b above may be created on a lot that is zoned to allow single-family dwelling residential use or multifamily dwelling residential use. b. Access. Each ADU and JADU must have direct exterior access that is separate from that of the primary dwelling. c. Fire Sprinklers. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence. d. Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. e. No Separate Conveyance. An ADU or JADU may be rented, but no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the 11.b Packet Pg. 129 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT D case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot). f. Septic System. If the ADU or JADU will connect to an onsite wastewater-treatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years. g. Owner Occupancy. All JADUs are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner-occupancy requirement in this subsection Error! Reference source not found. does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization. h. Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Director. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that: i. The ADU or JADU may not be sold separately from the primary dwelling. ii. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section. iii. The deed restriction runs with the land and may be enforced against future property owners. iv. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Director’s determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically removed, but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code. v. The deed restriction is enforceable by the Director or his or her designee for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit. 6. Specific ADU Requirements. The following requirements apply only to ADUs that are approved under subsection 4.b above. a. Maximum Size. i. The maximum size of a detached or attached ADU subject to this subsection 6 is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms. 11.b Packet Pg. 130 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT D ii. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling. iii. Application of other development standards in this subsection 6, such as FAR or lot coverage, might further limit the size of the ADU, but no application of the percent- based size limit in subsection 0 above or of an FAR or lot coverage limit or open- space requirement may require the ADU to be less than 800 square feet. b. Setbacks. i. An ADU that is subject to this subsection 6 must conform to a 25-foot front-yard setback. ii. An ADU that is subject to this subsection 6 must conform to 4-foot side- and rear- yard setbacks. iii. No setback is required for an ADU that is subject to this subsection 6 if the ADU is constructed in the same location and to the same dimensions as an existing structure. c. Lot Coverage. No ADU subject to this subsection 6 may cause the total lot coverage of the lot to exceed 50 percent, subject to subsection 0 above. d. Height. No ADU subject to this subsection 6 may exceed 16 feet in height above grade, measured to the peak of the structure. e. Passageway. No passageway, as defined by subsection 3.h above, is required for an ADU. f. No Replacement Parking. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced. g. Architectural Requirements. i. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling. ii. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof. iii. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code. iv. The ADU must have an independent exterior entrance, apart from that of the primary dwelling. The ADU entrance must be located on the side or rear building façade, not facing a public-right-of-way. 7. Fees. The following requirements apply to all ADUs and JADUs that are approved under subsections 4.a or 4.b above. a. Impact Fees. i. No impact fee is required for an ADU or JADU that is less than 750 square feet in size. For purposes of this subsection 7.a, “impact fee” means a “fee” under the Mitigation Fee Act (Gov. Code § 66000(b)) and a fee under the Quimby Act (Gov. Code § 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service. ii. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the ADU, divided by the floor area of the primary dwelling, times the typical fee amount charged for a new dwelling.) 11.b Packet Pg. 131 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) EXHIBIT D b. Utility Fees. i. If an ADU or JADU is constructed with a new single-family home, a separate utility connection directly between the ADU or JADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required. ii. Except as described in subsection 0, converted ADUs and JADUs on a single-family lot that are created under subsection 0 above are not required to have a new or separate utility connection directly between the ADU or JADU and the utility. Nor is a connection fee or capacity charge required. iii. Except as described in subsection 0, all ADUs and JADUs that are not covered by subsection 0 require a new, separate utility connection directly between the ADU or JADU and the utility. a) The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU or JADU, based on either the floor area or the number of drainage-fixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system. b) The portion of the fee or charge that is charged by the City may not exceed the reasonable cost of providing this service. 11.b Packet Pg. 132 Attachment: Attachment 2 - Ordinance MC-1559; Exhibits (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 133 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 134 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 135 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 136 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 137 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 138 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 139 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 140 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 141 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 142 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 143 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 144 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 145 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 146 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 147 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) 11.c Packet Pg. 148 Attachment: Attachment 3 - Planning Commission Resolution No. 2021-010 (7255 : Accessory Dwelling Unit Ordinance (All Wards)) CALIFORNIA NEWSPAPER SERVICE BUREAU SBS# D A I L Y J O U R N A L C O R P O R A T I O N To the right is a copy of the notice you sent to us for publication in the SAN BERNARDINO COUNTY SUN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com STEPHANIE SANCHEZ SAN BERNARDINO CITY DEV SERVICE 300 NORTH D ST #300 SAN BERNARDINO, CA 92418 HRGSB NOTICE OF HEARING-SB NOTICE OF PUBLIC HEARING - MCC 4/21/21 04/10/2021 Publication Total $151.80 $151.80 Notice Type: Ad Description COPY OF NOTICE 3459403 !A000005688502! The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. NOTICE OF PUBLIC HEARING Notice is hereby given that the City of San Bernardino Mayor and City Council will hold a public hearing on Wednesday,April 21,2021 at 7:00 p.m.,Web Conference via Zoom,San Bernardino,California 92401,on the following item(s): DEVE LOPMENT CODE AMENDMENT 21-01 ---A City- initiated amendment to the City of San Bernardino Development Code (Title 19)to establish standards for Accessory Dwelling Units. Environmental Determination: Statutorily Exempt under the California Environmental Quality Act ("CEQA"),pursuant to Section 15282(h)(Other Statutory Exemptions)of the State CEQA Guidelines. Owner:N/A Applicant:City of San Bernardino --- Community and Economic Development Department The Mayor and City Council of the City of San Bernardino welcomes your participation in evaluating these items.The Mayor and City Council will review the proposal and will consider the proposed environmental determination in making its decisions.The public is welcome to speak at the public hearing or to submit written comments prior to the hearing.For more information,please contact the Community and Economic Development Department at City Hall,or by phone at (909)384-7272. If you challenge the resultant action of the Mayor and City Council 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 City Planning Division at,or prior to,the public hearing. 4/10/21 SBS-3459403# 11.d Packet Pg. 149 Attachment: Attachment 4 - Public Hearing Notice (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Development Code Amendment 21-01 Accessory Dwelling Units Presented by Travis Martin, Associate Planner Community and Economic Development Department 11.e Packet Pg. 150 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Background: Accessory Dwelling Units have been identified by the State asprovidinganimportanthousingoptiontobothpotentialrentersandhomeowners. §Ty pically cost less than other types of housing §Provide convenient housing for family members §Help ease a severe rental housing deficit §Maximize limited land resources and existing infrastructure §Assist homeowners with supplemental income 11.e Packet Pg. 151 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Background: 2016:Senate Bill No.1069 and Assembly Bill No.2299 2017:Senate Bill No.229 and Assembly Bill No.494 2019:Senate Bill No.13 and Assembly Bills No.68,587,670,671,and 881 2020:Assembly Bill No.3182 §Existing local ordinances not in compliance found null and void 11.e Packet Pg. 152 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) ADU Typologies: 11.e Packet Pg. 153 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Procedural Changes: §Accessory Dwelling Units now permitted as a ministerial action subject to compliance with development standards §Exempt ADUs §Non-Exempt ADUs 11.e Packet Pg. 154 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Significant Changes: §Minimum Unit Size –800 square feet §No setbacks required for the conversion of an existing structures to an ADU §Four (4)foot setbacks from side and rear property lines §Converted parking is not required to be replaced §JADUs permitted §ADUs permitted on Multiple-Family properties 11.e Packet Pg. 155 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Significant Changes: §Owner-occupancy required for JADUs §ADUs/JADUs permitted on property zoned for single-family,multiple- family,and mixed-use development §No separate conveyance §No rental for less than 30 days 11.e Packet Pg. 156 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Proposed Changes: §Maximum Unit Size §Studio/One-Bedroom –850 square feet §Two-Bedroom –1,000 square feet §Maximum Height (detached)–16 feet §Architectural compatibility 11.e Packet Pg. 157 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Proposed Changes: §Additional parking not required §No entitlement required –ADUs/JADUs permitted by-right 11.e Packet Pg. 158 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Recommendation: Introduce for first reading,Ordinance No.MC-XXXX of the Mayor and City Council of the City of San Bernardino, California,approving Development Code Amendment 21-01;and Schedule the second reading of the above Ordinance to the regularly scheduled meeting of the Mayor and City Council on May 5,2021. The Mayor and City Council: 1. 2. 11.e Packet Pg. 159 Attachment: Attachment 5 - ADU.PowerPoint (7255 : Accessory Dwelling Unit Ordinance (All Wards)) Page 1 Public Hearing City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards) Recommendation It is recommended that the Mayor and the City Council for the City of San Bernardino, California, conduct a public hearing on the review of the draft Fiscal Year (FY) 2021 - 2022 Annual Action Plan (AAP) associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs. Background As part of the City of San Bernardino’s (City) Five-Year Consolidated Plan FY 2020/2025, the City must submit to the U.S. Department of Housing and Community Development (HUD) its second-year Annual Action Plan (AAP) for FY 2021 -2022. The AAP details and explains how the City intends to invest these federal funds toward meeting the City’s community development, affordable housing and homeless prevention needs. The City hired a consultant, Michael Baker International Inc. (MBI), to assist the City in the preparation of the Annual Action Plan for FY 2021 -2022. MBI assisted with community engagement efforts and held a virtual community meeting on March 31, 2021 to identify needs, priorities, goals, strategies, and activities for future housing and community development activities. To broadly access and efficiently obtain information from a large number of geographically distributed stakeholders, an online survey was prepared. The survey was available from March 11, 2021 through April 4, 2021. There were a total of 101 people who took the survey, of which 74 were English responses and 27 Spanish responses. The percentage of respondents comprised of residents of the City of San Bernardino was 84%. The remaining 16% are comprised of stakeholders who may operate within the City, but are not residents. Of the response, 58% are homeowners while 41% are renters. The survey included specific and open- ended questions about the public review draft and provided an opportunity to leave additional relevant comments. The survey was announced through City media outlets and disseminated through key community liaisons or stakeholders with access to resident and community groups, business owners, and interest groups (Attachment 4). The Annual Action Plan for FY 2021 -2022 includes three HUD funded programs 12 Packet Pg. 160 7259 Page 2 including: CDBG: The primary objective of the CDBG program is to develop viable urban communities by providing decent housing, a suitable living environment, and expanded economic opportunities, principally for persons of low and moderate income. Jurisdictions receiving CDBG funds must use the funds to meet one of the three national objectives: 1. To benefit low and moderate-income persons; 2. To aid in the prevention or elimination of slums and blight; or 3. To meet community development needs having a particular urgency. HOME: The objectives of the program are: 1. To strengthen the ability of state and local governments to design and implement strategies for achieving adequate supplies of decent, affordable housing; 2. To provide assistance to participating jurisdictions for development of affordable housing; and 3. To strengthen partnerships among all levels of government and the private sector. ESG: The program provides funding for the: 1. Engagement of individuals and families living on the streets; 2. Improvement of homeless shelters and operation of shelters; or 3. Rapid re-housing of homeless persons and homeless prevention. In order to continue receiving an allocation under CDBG, HOME and ESG, the City is required to submit an AAP to HUD. The AAP is due to HUD no later than June 11, 2021. The Action Plan serves as the City’s grant application for the grant programs. The City of San Bernardino’s draft Fiscal Year 2021-2022 Annual Action Plan recommends projects that best meet identified community needs eligible under CDBG, HOME and ESG programs. Discussion The draft AAP covers the second year segment of the HUD approved five year Consolidated Plan for the City of San Bernardino. The City’s FY 2021 -2022 allocation was announced by HUD on February 25, 2021. The City will be receiving $3,259,910 in CDBG funds, $1,395,707 in HOME funds and $290,457 in ESG funds. The FY 2021 - 2022 allocation represents a 4% reduction for CDBG and a 3% reduction for HOME and ESG. The cause of the reduction has to do with the number of new grantees participating and eligible to receive funding. New grantees added to the program means that existing grantees will share a slightly smaller amount of the CDBG appropriation. In an average year, five to ten new communities qualify as new entitlement grantees. In some years this number may be higher. The number of new grantees can result in a reduction in a communities’ allocation. A summary below identifies the recommended activities and funding levels for the FY 2021-2022 AAP. 12 Packet Pg. 161 7259 Page 3 RECOMMENDED ACTIVITIES BY CATEGORY Category Program Category Totals CDBG HOME ESG 2021 Grant Fund Allocation $3,259,910 $1,395,707 $290,457 $4,946,074 Reprogrammed Funds $ 270,000 54,446 324,446 Total - 2021 Available Grant Fund $3,259,910 $1,665,707 $344,903 $5,270,520 Administration (maximum available) 651,982 139,571 21,784 813,337 Section 108 Repayment 772,323 772,323 Micro-Enterprise 35,000 35,000 Fair Housing1 73,000 73,000 Small Business Micro Loan Program 230,979 230,979 Arrowhead Grove - Phase 4 385,870 385,870 Infill Housing 25,000 25,000 Seccombe Park Housing 431,266 431,266 Eastpointe Community - Homeownership 214,000 214,000 Affordable Housing Project 470,000 470,000 Public Facilities 1,496,626 1,496,626 Homeless Services 323,119 323,119 Program Totals $ 3,259,910 $1,665,707 $344,903 $5,270,520 1Required for all jurisdictions receiving CDBG funds. CDBG Committee On February 16, 2021, a meeting of the CDBG Committee was held to review the proposed 2021-22 action plan with only one member of the City Council present. After receiving the staff presentation, Councilmember Juan Figueroa requested that consideration be given to including the paving of K Street from Mill to Hillcrest Streets on the project list. While the K street location is a CDBG eligible area, staff recommends proceeding with the proposed projects as they are each associated with a planned infill housing project providing a greater cumulative positive impact on the identified neighborhoods in alignment with the focus of this source of funding. The pavement of K Street can be considered under the City’s broader FY 2021/22 CIP plan. Three of the activities, Administration, Fair Housing and Section 108 repayment must be funded annually. It is recommended that micro-enterprise continue to be funded as it provides no-cost services to small business owners in the City of San Bernardino, to assist with successful business launches and expansion of existing businesses. Staff recommends funding a Small Business Micro Loan Program. The City met with Uplift San Bernardino and Loma Linda University to discuss their interest in contributing funds to the micro loan program, thus allowing the City to leverage its funds with San Bernardino Uplift and Loma Linda University’s funds making additional dollars available to small businesses. San Bernardino Uplift and Loma Linda University are in support of the establishment of such program for the purpose of fostering the growth of existing small businesses in the City of San Bernardino. Microloans will be between $25,000 12 Packet Pg. 162 7259 Page 4 and $50,000, to help small businesses grow to the next level of development by supporting activities such as renting office or retail space, hiring employees, or buying equipment. The loan term is recommended to be between five to seven years with a competitive interest rate of 5% to 9%. 2020-2025 Key Strategic Targets and Goals The draft Annual Action Plan will meet Key Target No. 3: Improved Quality of Life by providing infrastructure, fair housing and business assistance in the City. Approval of the AAP will allow the City to continue to fund programs that preserve and improve the quality of the housing stock, promote homeownership, assist in small business start-up and expansion, fund infrastructure projects, and maintain a working relationship with the federal government. Fiscal Impact Approval of the draft FY 2021-2022 Annual Action Plan will not impact the General Fund. Conclusion It is recommended that the Mayor and the City Council for the City of San Bernardino, California, conduct public hearing #1 on the review of the draft Fiscal Year (FY) 2021 - 2022 Annual Action Plan (AAP) associated with the Community Development Block Grant, HOME Investment Partnerships and Emergency Solutions Grant Programs. Attachments Attachment 1 Exhibit A - City of San Bernardino Draft FY 2021-22 Action Plan Attachment 2 Exhibit B - Fiscal Year 2021-2022 Draft Action Plan Activity Recommendations Attachment 3 Exhibit C - PowerPoint Presentation Attachment 4 Exhibit D - Annual Action Plan Online Survey Results Online Survey - English and Spanish Attachment 5 Publication Notice Ward: All Synopsis of Previous Council Actions: N/A 12 Packet Pg. 163 Annual Action Plan 2021 1 OMB Control No: 2506-0117 (exp. 09/30/2021) Executive Summary AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) 1. Introduction Each year, the US Department of Housing and Urban Development (HUD) provides funding for housing and community development programs to the City of San Bernardino, specifically Community Development Block Grant (CDBG) and other federal housing funds. To receive these funds, the City must complete a report every five years called the Consolidated Plan. The Consolidated Plan is carried out through Annual Action Plans, which provide a concise summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified by the Consolidated Plans. The City is an entitlement jurisdiction and will receive the following federal grants:  Community Development Block Grant (CDBG)  HOME Investment Partnerships Program (HOME)  Emergency Solutions Grant (ESG) 2. Summarize the objectives and outcomes identified in the Plan The City of San Bernardino has identified a range of housing and community development needs in accordance with the structure presented in HUD regulations 24 CFR 91.215 affordable housing, homelessness, and non-housing community development. Priority is assigned based on the level of need demonstrated by the data collected during the plan preparation, specifically in the Needs Assessment and the Market Analysis, the information gathered during the consultation and citizen participation process, and the availability of resources to address these needs. Based on these components, housing needs are considered a high priority, particularly low-income ownership housing and transitional housing with supportive services for the homeless population. Out of the top ten priority needs, the feedback from citizen participation indicated that the top four pressing concerns of the City are:  Homelessness and homelessness issues (i.e., supportive housing)  Access to affordable housing  Street infrastructure (i.e., road maintenance and street lighting)  Joblessness/job creation The City aims to utilize their grant funds to coordinate services, programs, and projects with the goal of creating a decent and suitable living environment to benefit low- and moderate-income households and those with special needs. Priorities for the 2021-2022 Action Plan have been established in consultation with the residents of San Bernardino and the serving community organizations. 12.a Packet Pg. 164 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 2 OMB Control No: 2506-0117 (exp. 09/30/2021) Priorities Objectives/Goals The following goals outlined in the Consolidated Plan and to be implemented during the FY 21-22 Annual Action Plan are listed below and will go into further detail in section AP-20 Annual Goals: 1. Promote Economic Development: Assist in providing direct loans and loan guarantees, establish revolving loan and/or facilitate peer lending programs for the establishment for stabilization and expansion of microenterprises through the Small Business Micro Loan Program. 2. Promote Economic Development: Debt service repayment for Arden Guthrie Project which will create 214 jobs. 3. Promote Economic Development: Provide no-cost services to residents/business owners in City of San Bernardino to help improve the likelihood of successful business launch and growth of existing businesses through the Micro-Enterprise Program. 4. Fair Housing: Support fair housing services, landlord/tenant mediation, and housing counseling services. 5. Expand Homeownership Opportunities: Infill housing; Fund construction of four (4) single family homes, city-wide. Incomes will range from 50% to 80% of Area Median Income (AMI). 6. Expand Homeownership Opportunities: Eastpointe Community, which assists homebuyers with the purchase of affordable housing: Add four (4) single family units to the Eastpointe neighborhood. Incomes will range from 50% to 80% of Area Median Income (AMI). 7. New Affordable Rental Housing Construction or Rehabilitation: Arrowhead Grove, formerly known as Waterman Gardens Public Housing Community, for phase 4 of the multi-phase Rental Assistance Demonstration (RAD) project. 8. New Affordable Rental Housing Construction or Rehabilitation: Assist 100 households in the new Seccombe rental housing project. 9. Improve Facilities and Infrastructure: Improve selected streets resulting from new Infill Housing projects. The following streets have been selected: 532 Ramona Avenue – Ward 1; 2129 Wall Avenue – Ward 2; 938 N. G Street – Ward 2; 140 W. 13th Street – Ward 2; and 2060 E. 18th Street – Ward 7. A summary of some of the findings used to determine priority needs include:  215,784 persons reside in San Bernardino (US Census Bureau 2019) comprising of 59,295 households.  Approximately 26% live in poverty  San Bernardino County homeless count data have indicated a need to support programs that serve people experiencing homelessness. The 2020 PIT count for the City is 1,056 which accounts for 34% of San Bernardino County’s total count.  City and resident participation in Homelessness and homelessness issues (i.e., supportive housing), access to affordable housing, street infrastructure (i.e., road maintenance and street lighting) and joblessness/job creation 12.a Packet Pg. 165 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 3 OMB Control No: 2506-0117 (exp. 09/30/2021)  The City uses CDBG funds for public services, public facilities and improvements, housing activities, and planning and administrative costs. The CDBG program’s primary objective is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low and moderate income. Funds can be used for a wide array of activities, including housing rehabilitation, homeownership assistance, lead-based paint detection and removal, construction or rehabilitation of public facilities and infrastructure, removal of architectural barriers, public services, rehabilitation of commercial or industrial buildings, and loans or grants to businesses. 3. Evaluation of past performance This is an evaluation of past performance that helped the City of San Bernardino choose its goals or projects. Preserve and rehabilitate existing single-family dwellings – The Owner-Occupied Housing Rehabilitation Program provided financial assistance to income-qualified, San Bernardino homeowners for repairs to their homes. Due to the spread of the Coronavirus 2019 (COVID-19) pandemic, the City came to a halt to various programs in order to preserve the safety of their residents and staff, which hindered the ability to meet the City’s goals and outcomes. Expand Homeownership opportunities and assist homebuyers with the purchase of affordable housing – In FY 2019-20, the City completed two (2) newly built homes on an infill lot. This First Time Homebuyer program (Infill Housing) improves neighborhoods by utilizing vacant and blighted lots for new owner-occupied housing. The City and their CHDO partner, Housing Partners I, are marketing these affordable units for sale to households at 50% to 80% of AMI. Provide Supportive Services - Homeless / Non-Homeless Special Needs - In FY 2019-20, the City utilized HOME program income for the Arrowhead Grove, formerly known as Waterman Gardens Public Housing Community, for phase 2 of the multi-phase Rental Assistance Demonstration (RAD) project. For this project, approximately 4,600 persons will benefit from the mixed-income family apartments with 147 affordable units available for households at 30% to 60% of AMI. Promote Economic Development - In partnership with the Inland Empire Small Business Development Center, the City promoted and hosted small business/entrepreneur workshops. 12 San Bernardino small businesses were assisted. Due to the COVID-19 pandemic, workshops had to be postponed. Improve Public Facilities and Infrastructure - In FY 2019-2020, the City completed: Lytle Creek Park roof replacement, Jerry Lewis Swim Center facility upgrades and replacement of playground equipment at five parks: Meadowbrook Fields, Lytle Creek, Wildwood, Harrison Canyon, and Speicher. 12.a Packet Pg. 166 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 4 OMB Control No: 2506-0117 (exp. 09/30/2021) Fair Housing - The Inland Fair Housing and Mediation Board provided landlord-tenant counseling and other fair housing services to eliminate identified impediments to fair housing through education, enforcement, and testing to approximately 3,300 persons in the City. Planning and Administration: Provided funds for planning and administration of CDBG, HOME and ESG. Provide rental assistance and preserve existing affordable rental housing - In FY 2019-2020, two (2) assisted rental projects were inspected to ensure units remained affordable and habitable. Expand the affordable housing inventory through new construction - In 2019-2020, the third phase of construction commenced on the site of the former Waterman Gardens Public Housing community (now called Arrowhead Grove), which resulted in a total of 184 mixed-income family apartments. Arrowhead Grove will provide 147 affordable one- to four-bedroom family units with an additional 35 market-rate units interspersed across the site and two units for property managers. In addition to the new units constructed, a new traffic signal and bus shelter were installed. Improve Neighborhood Conditions – Demolition Program - Funding for this project has been eliminated due to the program’s inability to spend down its CDBG budgeted amounts during two consecutive years. 4. Summary of Citizen Participation Process and consultation process Summary from citizen participation section of plan. To solicit public input during the development of the Consolidated Plan and the Annual Action Plan, the City conducted the following meetings:  Virtual Community Workshop;  Stakeholder Interviews; and  Online Survey. To solicit public input during the development of the Annual Action Plan, the City conducted a virtual Community Workshop through online platform Zoom on Wednesday, March 31, 2021 at 5:30 PM to 7:30 PM. There were 13 people in attendance. This virtual meeting was held in pursuant to Governor Newsom’s Executive Order N-29-20 and conducted in accordance with state and local health regulations as a response to the Coronavirus 2019 (COVID-19) pandemic. The following organizations attended and were interviewed during the virtual Workshop:  Arts Connection, the Arts Council of San Bernardino County  Congregations Organized for Prophetic Engagement (COPE)  Dignity Health  Making Hope Happen Foundation 12.a Packet Pg. 167 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 5 OMB Control No: 2506-0117 (exp. 09/30/2021)  Mary Erickson Community Housing/Valon Consulting  Uplift San Bernardino The City has also conducted stakeholder interviews to obtain feedback. The feedback was especially helpful in identifying gaps in services, trends in the local community, and needs relating to specific services and populations. The following organizations participated in the stakeholder interviews:  Dignity Health  Lutheran Social Services Southern California  Neighborhood Partnership Housing Services  San Bernardino Housing Authority Residents and service providers for the City of San Bernardino were encouraged to participate in the Annual Action Plan process and review. Newspaper ads were published in the El Chicano and the San Bernardino Sun to notify the public about the first public hearing and 30-day public review was published on March 15, 2021 and March 18, 2021 respectively. The Annual Action Plan was available for public review beginning April 28, 2021 to May 27, 2021. The report was available at on the City website for review and commenting Public comments received will be incorporated into the final Annual Action Plan. The first public hearing for the draft FY 21-22 Annual Action Plan to City Council was held on April 21, 2021. Newspaper ads were published to the San Bernardino Sun and the El Chicano to notify the public about the second public hearing was published on April 23, 2021 and April 26, 2021 respectively. The second public hearing was held on June 2, 2021. Lastly, an online survey for FY21-22 Annual Action Plan input was available in both English and Spanish to gain input from the residents of San Bernardino. This survey utilized the platform, SurveyMonkey, and was made available to residents from March 11, 2021 to April 3, 2021. The City received a total of 101 responses to the online survey (74 in English and 27 in Spanish). 5. Summary of public comments The feedback from the Community Workshop and Stakeholder interviews indicated that the top four pressing concerns of the City are: 1. Homelessness and homelessness issues (i.e., supportive housing) 2. Access to affordable housing 3. Street infrastructure (i.e., road maintenance and street lighting) 4. Joblessness/job creation Suggestions from the community to overcome these issues include additional public education/workshops, more communication from the City to the public, and more opportunities for 12.a Packet Pg. 168 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 6 OMB Control No: 2506-0117 (exp. 09/30/2021) public/private partnerships with community-based organizations. There is support for funds to be spent on affordable housing development, economic development for the City, and homeless services. The City also conducted an online survey in both English and Spanish from March 11, 2021 to April 3, 2021. There was a total of 101 responses to the online survey. A little over half of the respondents were homeowners (54%) with the remaining respondents being renters (39%) or in other types of living situations (7%). The response came from residents living in the City for 10 years or over. The top four areas of need identified in the online surveys were: 1. Economic Development (job creation) 2. Infrastructure (i.e., sidewalks/streets) 3. Services for the homeless 4. Affordable housing The top three infrastructure needs that were identified were street improvements, street lighting, and tree planting/urban greenery. City-facility needs identified were community centers, park and recreational facilities, and youth centers. For housing needs, the top three identified were: 1. First-time home buyer assistance 2. Owner-occupied rehabilitation 3. Renter-occupied housing rehabilitation Respondents also identified two primary homeless needs: 1. Permanent supportive housing with social services 2. Transitional housing (short-term up to 6 months) 6. Summary of comments or views not accepted and the reasons for not accepting them All comments were accepted. 7. Summary The City has taken diligent and good faith efforts to reach all segments of the community that may benefit from the City’s CDBG, HOME, and ESG programs. PR-05 Lead & Responsible Agencies – 91.200(b) 12.a Packet Pg. 169 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 7 OMB Control No: 2506-0117 (exp. 09/30/2021) PR-05 Lead & Responsible Agencies – 91.200(b) 1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Agency Role Name Department/Agency Lead Agency SAN BERNARDINO Community and Economic Development Department CDBG Administrator SAN BERNARDINO Community and Economic Development Department HOME Administrator SAN BERNARDINO Community and Economic Development Department ESG Administrator SAN BERNARDINO Community and Economic Development Department Table 1 – Responsible Agencies Narrative (optional) The City’s Community and Economic Development Department administers, implements, and monitors activities and projects funded through the federal grants. The Community and Economic Development Department is responsible for developing and carrying out the priorities and goals established in the Consolidated Plan. In addition, the Department works collaboratively with the Public Works Department, City Parks and Recreation Department, City Manager’s Office, City Council, and the CDBG Ad Hoc Committee to develop goals and priorities for the current year that is aligned with the Consolidated Plan and address the needs of the residents of San Bernardino. Consolidated Plan Public Contact Information For matters concerning the City of San Bernardino’s CDBG, HOME, and ESG programs, please contact: the Community and Economic Development Department, Gretel Noble, Housing Manager at 201 N E Street, 3rd Floor, San Bernardino, CA 92418, telephone: (909) 384-7270 or via email at noble_gr@sbcity.org. 12.a Packet Pg. 170 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 8 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-10 Consultation – 91.100,91.200(b), 91.215(I) 1. Introduction The City views the Consolidated Plan and Annual Action Plan as an opportunity to engage the community in the CDBG, HOME, and ESG investment process. The City encourages their residents to voice their needs and concerns regarding homelessness, affordable housing, and community development. All members of the public, especially those living in low- and moderate-income neighborhoods, are encouraged to participate in the planning stages. The goal of the consultation process was to gather data to help determine the priority needs. The City also coordinates and collaborates with various service providers to identify specific needs or certain vulnerable populations. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(l))  The City has been working in partnership with the Housing Authority of the County of San Bernardino (HACSB) and County Community Development and Housing Agency to redevelop 251 units of public housing at the former Waterman Gardens public housing project (now known as Arrowhead Grove). The City is also working in partnership with National CORE, an Inland Empire CHDO, and the Housing Authority of the County of San Bernardino in the development of Arrowhead Grove.  The City partners with Neighborhood Partnership Housing Services (NPHS), a CHDO, for the administration of an owner-occupied, single family rehabilitation program.  Housing Partners I, also a CHDO, and NPHS partners with the City to build new single family, ownership housing on vacant and blighted lots throughout the city, in order to increase homeownership among households at and below 80% of Area Median Income.  The City coordinates with the County Department of Behavioral Health (DBH) in an ongoing exchange of information and resources available to persons who are experiencing homelessness and mental health crises. The City has also partnered with DBH in the Golden Apartments project where DBH provides the case management services for the formerly homeless residents who live with mental illness.  The City has also been working on investment strategies for housing and health with Dignity Health. Dignity Health’s Community Investment program provided a $1.2 million dollar loan for the construction (which is currently underway) of Arrowhead Grove Phase 3, which will result in the construction of a 184 mixed income development, with 147 units reserved for low -income households.  The City has been consulting with the Housing Authority of the County of San Bernardino and the Community Development and Housing Agency of the County of San Bernardino concerning lead-based paint hazards as it relates to rehabilitation of owner-occupied single-family homes. 12.a Packet Pg. 171 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 9 OMB Control No: 2506-0117 (exp. 09/30/2021) The City has also consulted with HUD’s environmental office regarding lead-based paint and staff attended the most recent lead-based paint training provided onsite at the HUD Los Angeles office.  The City has been in coordination with the San Bernardino Unified School District with their Uplift San Bernardino initiative. Uplift San Bernardino is focused on the future of the youth community, such as launching the future workforce into local jobs; ignite Upward Mobility in the community; convene leadership work groups to change systems & policies; effectively inspire community voice & engagement to inform better decisions & increase access to opportunities especially for youth; create shared understanding of issues & opportunities based on research & data; mobilize people and resources to fill in gaps identified between systems and promote accountability through a transparent history of Uplift’s decisions, progress, & learning.  The City has been working in partnership with Inland Empire Small Businesses Development Center (IESBDC) to deliver small business startup workshops to existing small business owners and aspiring entrepreneurs within the City of San Bernardino. Small business startup workshops are offered in both English and Spanish to accommodate the San Bernardino population. Spanish workshops are offered in collaboration with the Mexican consulate, who host their space for Spanish speaking participants.  The City is working with lead partners National Community Renaissance (CORE), an affordable housing developer; Nonprofit Finance Fund (NFF), a national CDFI; and Build Healthy Place Network (BHPN), the national center at the intersection of community development and health to advance equity, on the UPLIFT SB Equitable Development Plan. The UPLIFT SB Equitable Development Plan attains two overarching goals: 1) encourage health investors to advance comprehensive solutions and 2) spark collaborative problem-solving to address persistent community development challenges in the Waterman Baseline neighborhood and the City of San Bernardino, which include increasing the level of activity and improving the economic and health equity outcomes for residents and the community. UPLIFT Equitable Development Plan will strengthen the existing Waterman and Baseline Specific Plan (Specific Plan) and leverage other community-led collective impact efforts. The City is in collaboration with mentioned lead partners to increase investments in housing, health and safety, job creation. The goal is to bring business service providers along to determine how to best deploy resources to residents in the City of San Bernardino. These efforts will address some of the biggest barriers to opportunity, high crime rates, homelessness, and lack of good paying jobs, namely through affordable housing, job creation, and economic development.  For the past year the City has been working with an initiative headed by the Center for Community Investment and seven health providers, including Dignity Health in an initiative to Accelerate Investments in Healthy Communities (AIHC).  The City has also interviewed Dignity Health; Lutheran Social Services Southern California; Neighborhood Partnership Housing Services; and San Bernardino Housing Authority to receive input on potential gaps in services and identification of needs for residents. 12.a Packet Pg. 172 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 10 OMB Control No: 2506-0117 (exp. 09/30/2021) Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The City recognizes the needs to address people experiencing homelessness, particularly the chronically homeless populations. The City collaboratively works with four entities throughout the County of San Bernardino. The following entities are: 1) Interagency Council on Homelessness 2) Homeless Provider Network 3) Central Valley Steering Committee 4) San Bernardino County Behavioral Health Administration, Office of Homeless Services These entities comprise of policy-making bodies, advisory groups of faith-based and non-profit housing organizations, collaborative organization among City jurisdictions, and committees established specifically to assist those experiencing homelessness. The “10-Year Strategy to End Homelessness in San Bernardino County” guides the actions and serves as a blueprint to end homelessness in the County of San Bernardino. Concurrently, the City of San Bernardino also actively participates in the Continuum of Care (CoC) and is fully supportive of the objectives of the 10-Year Strategy to End Homelessness in San Bernardino County plan. Bessine Richard represents the City on the board of the Interagency Council on Homelessness. The City’s Police Department support and participates in the Point-in-Time (PIT) Homeless County. The Community & Economic Department requires their ESG subrecipients to participate in the CoC’s Homeless Management Information System (HMIS). This software application is designed to collect client-level data and data on the provision of housing and services to homeless individuals, families, and person at-risk of homelessness. Lastly, the City funds four organizations through the ESG programs that provide street outreach, emergency shelter, homeless prevention services, rapid rehousing and HMIS. Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS The City closely works with the CoC and attends its regularly scheduled meetings and trainings in the area of homelessness. The City consults with the Interagency Council on Homelessness (ICH), which has not less than one former homeless member, in regard to funding recommendations. The discussions at the ICH meetings are comprised of updates on HMIS and a monthly data quality report is provided illustrating the number of clients enrolled in the non-profit organizations using HMIS. The updates are helpful in evaluating the outcomes of projects and activities assisted with ESG. Other topics of discussion include presentations to the Office of Homeless Services on activities from the San Bernardino County Reentry Collaborative regarding workshop meetings to discuss updating their strategic plan, and a Community Recidivism Reduction Program. A Veterans Initiative from the Housing Authority of the 12.a Packet Pg. 173 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 11 OMB Control No: 2506-0117 (exp. 09/30/2021) County of San Bernardino (HACSB) has continued to develop creative and effective ways to address the needs of the County’s homeless veterans. Over the past year, HASCB, along with the support and efforts of our affiliate non-profits, KEYS and HP1 Inc., has created housing opportunities for homeless veterans. 2. Describe Agencies, groups, organizations and others who participated in the process and describe the jurisdiction’s consultations with housing, social service agencies and other entities. 1 Agency/Group/Organization Dignity Health St Bernardine Medical Center Agency/Group/Organization Type Health Agency Major Employer What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The organization was interviewed by the City of City of San Bernardino and participated in a community workshop. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community. 2 Agency/Group/Organization Neighborhood Partnership Housing Services (NPHS) Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Housing Need Assessment Non-Homeless Special Needs Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing and infrastructure investment in the community. 3 Agency/Group/Organization Lutheran Social Services Southern California Agency/Group/Organization Type Services – Housing What section of the Plan was addressed by Consultation? Homeless Needs – Chronically Homeless, Families with Children, Veterans, Unaccompanied Youth Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community 12.a Packet Pg. 174 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 12 OMB Control No: 2506-0117 (exp. 09/30/2021) 4 Agency/Group/Organization Housing Authority of County of San Bernardino Agency/Group/Organization Type Health Agency – Health What section of the Plan was addressed by Consultation? Homeless Needs – Chronically Homeless, Families with Children, Veterans, Unaccompanied Youth Briefly describe how the Agency/Group/Organization was consulted. What are the anticipated outcomes of the consultation or areas for improved coordination? The organization was interviewed by the City of San Bernardino. The anticipated outcomes are increased commitment to affordable housing/economic investment in the community. Table 2 – Agencies, groups, organizations who participated 12.a Packet Pg. 175 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 13 OMB Control No: 2506-0117 (exp. 09/30/2021) Identify any Agency Types not consulted and provide rationale for not consulting No agency types were excluded from engagement. For future planning processes, the City will make a special effort to include specified organizations that provide a wide range of services to the residents of San Bernardino. Other local/regional/state/federal planning efforts considered when preparing the Plan Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan? Continuum of Care Continuum of Care Alliance Potential funding allocations to address homeless needs will complement the COC Strategy. 10-Year Strategy to End Homelessness Continuum of Care Alliance Funding allocations to address homeless needs will be consistent with the 10-Year Strategy to End Homelessness. City of San Bernardino 2013-2021 Housing Element City of San Bernardino Department of Community Development Potential funding allocations to address housing needs that will complement the 2013-2021 Housing Element Housing Authority County of San Bernardino (HACSB) Housing Authority County of San Bernardino (HACSB) The City will support HACSB's efforts on public housing and the ongoing partnership on Waterman Gardens Table 3 – Other local / regional / federal planning efforts Narrative (optional) City staff, along with assistance from their consultant, worked to engage a wide array of residents and stakeholder for the community outreach process. The City engaged residents and stakeholders through a community survey, stakeholder interviews, and community meetings. Various service providers, such as Health Agencies and Homeless Service providers, were included. Stakeholders and residents provided feedback on priorities, housing problems and possible solutions. They were asked to provide input on how the City should spend their CDBG, HOME and ESG funding. 12.a Packet Pg. 176 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 14 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-12 Participation – 91.105, 91.200(c) 1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting The City published notices for public hearings and 30-day public review of the FY 2021-2022 Annual Action Plan in El Chicano and the San Bernardino Sun on March 15, 2021 and March 18, 2021 respectively in accordance with its citizen participation plan. The report was made available on the City’s website at the Community and Economic Development Department. In addition, notification of the Virtual Community Workshop was posted to the City’s social media account. Add online survey information Citizen Participation Outreach Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comme nts not accepted and reasons URL (If applicable) 1 Newspaper Ad Minorities Non-English Speaking - Specify other language: Spanish Persons with disabilities Residents of Public and Assisted Housing Low Income persons No responses were received. No comments were received. Because comments were not received there is no summary of comments not accepted. http:iecn.com/newpaper s/el-chicano/ https://www.sbsun.com 12.a Packet Pg. 177 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 15 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comme nts not accepted and reasons URL (If applicable) 2 Online Survey Minorities Non-English Speaking - Specify other language: Spanish Persons with disabilities Non- targeted/broad community Residents of Public and Assisted Housing Low Income persons 101 responses received 82% Residents of the City of San Bernardino 75% English speakers 25% Spanish speakers 54% Homeowners 39% Renters Summary of top four concerns: 1. Homelessness and homelessness issues (i.e., supportive housing) 2. Access to affordable housing 3. Street infrastructure (i.e., road maintenance and street lighting) 4. Joblessness/job creation All comments were accepted. www.sbcity.org/housing 12.a Packet Pg. 178 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 16 OMB Control No: 2506-0117 (exp. 09/30/2021) Sort Order Mode of Outreach Target of Outreach Summary of response/attendance Summary of comments received Summary of comme nts not accepted and reasons URL (If applicable) 3 Virtual Community Workshop Minorities Non-English Speaking - Specify other language: Spanish Persons with disabilities Non- targeted/broad community Residents of Public and Assisted Housing Low Income persons 13 people were in attendance. Top four concerns identified via comments were: 1. Homelessness and homelessness issues (i.e., supportive housing) 2. Access to affordable housing 3. Street infrastructure (i.e., road maintenance and street lighting) 4. Joblessness/job creation All comments were accepted https://mbakermeet.we bex.com/mbakermeet/j. php?MTID=mf7c8897fb3 48d5924b7bcc39d4f6bf b4 12.a Packet Pg. 179 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 17 OMB Control No: 2506-0117 (exp. 09/30/2021) Table 4 – Citizen Participation Outreach 4 Public Hearing Minorities Non-English Speaking - Specify other language: Spanish Persons with disabilities Non- targeted/broad community Residents of Public and Assisted Housing Attendance will be added Comments will be added Comments will be added www.sbcity.org/housing 12.a Packet Pg. 180 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 18 OMB Control No: 2506-0117 (exp. 09/30/2021) Expected Resources AP-15 Expected Resources – 91.220(c)(1,2) Introduction San Bernardino, like many other jurisdictions is faced with the challenging task of meeting increasing needs with fluctuating and/or decreasing federal and state resources. The figures shown in the Anticipated Resources table below reflect HUD's current allocation. The figure for "Expected Amount Available for Remainder of Con Plan" anticipates the level of funding using the current year allocations and projecting those allocations over the remaining years covered by the Consolidated Plan. If there are any cuts to the City's allocation over the coming years, the City will adjust this figure accordingly and prepare the Annual Action Plans reflective of the funding reality. Anticipated Resources Program Source of Funds Uses of Funds Expected Amount Available Year 2021-2022 Expected Amount Available Remainder of ConPlan $ Narrative Description Annual Allocation: $ Program Income: $ Prior Year Resources: $ Total: $ CDBG public - federal Acquisition and Admin and Planning Economic Development Housing Public Improvements Public Services $3,259,910 $0 $0 $3,259,910 10,335,306 Funding for program year 2021 includes the City’s HUD allocation, estimated program income, and prior year resources. 12.a Packet Pg. 181 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 19 OMB Control No: 2506-0117 (exp. 09/30/2021) HOME public - federal Acquisition Homebuyer assistance Homeowner rehab Multifamily Rental new construction Multifamily rental rehab New Construction for ownership TBRA $1,395,707 $270,000 $0 $1,665,707 4,648,065 The City plans to invest its HOME dollars in the rehabilitation of a rental housing project; Infill Housing Program (homeownership); New construction of affordable rental housing (Seccombe Park); Eastpointe Community (homeownership); Arrowhead Grove Phase 4 (rental housing); and Owner-Occupied Rehabilitation. ESG public - federal Conversion and rehab for transitional housing Financial Assistance Overnight shelter Rapid re-housing (rental assistance) Rental Assistance Services Transitional housing $290,457 $54,446 $0 $344,903 0 ESG monies will fund subrecipients to assist people experiencing homelessness with Emergency Shelter, Motel Vouchers, Rapid Re-Housing, Rental Assistance, Homelessness Prevention and Financial Assistance Table 5 - Expected Resources – Priority Table 12.a Packet Pg. 182 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 20 OMB Control No: 2506-0117 (exp. 09/30/2021) Explain how federal funds will leverage those additional resources (private, state, and local funds), including a description of how matching requirements will be satisfied The City will focus on leveraging its federal resources with state, local, and private capital in order to develop quality and decent affordable housing for San Bernardino residents. Additional funds to serve the needs of lower- and moderate-income residents were derived from a variety of other sources, including: Federal Resources  Section 8 Housing Choice Voucher Program  Federal Low-Income Housing Tax Credit Program  Tax Exempt Bond Financing  Community Investment Funds from Dignity Health State Resources  Tax Exempt bonds  State Low-Income Housing Tax Credit Program  No Place Like Home  Community Reinvestments Funds  Permanent Local Housing Allocation (PLHA) from California State Department of Housing  Veteran Housing and Homeless Prevention Program Local Resources  San Bernardino County Continuum of Care  Housing Authority of San Bernardino County (HACSB) Private Resources  Dignity Health  San Manuel Band of Mission Indians  San Bernardino Unified School District  City of San Bernardino Successor Housing Agency Per HUD regulations, ESG recipients must match 100 percent of their ESG annual allocation. For those organizations that received ESG funds, agencies met the match requirement through utilization of volunteerism, in-kind contributions, and funds from other local, state, and federal programs. In addition, HUD requires HOME recipients to match 25 percent of their HOME annual allocation. In 12.a Packet Pg. 183 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 21 OMB Control No: 2506-0117 (exp. 09/30/2021) accordance with 24 CFR 92.222, when a local jurisdiction meets one of the distress criteria, it is determined to be in fiscal distress and receives a 50 percent reduction of match. The FY 2020-2021 match reductions are not available as of date of this writing. However, in FY 2020-2021, the City received a 100 percent match reduction due to severe fiscal distress. The City of San Bernardino will continue to leverage its HOME funds with other housing resources as required. Any funds that are used in a HOME activity in excess of the required match will be documented by the City and reported to HUD as part of the Consolidated Annual Performance and Evaluation Report each year. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan With the dissolution of the redevelopment agency, successor agencies with real property assets are required to dispose of the properties pursuant to the City’s Long-Range Property Management Plan or Housing Asset Transfer (HAT) Plan. The Successor Agency has transferred all property listed on the Housing Asset Transfer list to the City as the Successor Housing Agency. The City will determine the development and/or disposition of these properties in the following months. Discussion The Housing Successor Agency has a disposition plan for the parcels and the City will retain some for economic development purposes, sell a number of the parcels and retain others for housing. The majority of the properties are single family parcels that the city intends to utilize for the construction of single-family ownership housing. 12.a Packet Pg. 184 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 22 OMB Control No: 2506-0117 (exp. 09/30/2021) Annual Goals and Objectives AP-20 Annual Goals and Objectives Goals Summary Information Sort Order Goal Name Start Year End Year Category Geographic Area Needs Addressed Funding Goal Outcome Indicator 1 Promote Economic Development 2021 2022 Non-Housing Community Development Citywide Promote Economic Development CDBG: $230,979 Businesses assisted: 10 (Micro-loan Program) 2 Promote Economic Development 2021 2022 Non-Housing Community Development Citywide Promote Economic Development CDBG: $35,000 Businesses assisted: 10 (Micro- enterprise) 3 Promote Economic Development 2021 2022 Non-Housing Community Development (Section 108 Repayment) Citywide Promote Economic Development CDBG: $772,323 Section 108 Repayment Program Debt payment on Section 108 for Arden Guthrie Project, which will create 214 jobs 12.a Packet Pg. 185 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 23 OMB Control No: 2506-0117 (exp. 09/30/2021) 4 Fair Housing 2021 2022 Affordable Housing Citywide Fair Housing CDBG: $73,000 Public service activities for Low/Moderate income persons. Approximately 2,700 households to be assisted 5 Expand Homeowner-ship Opportunities 2021 2022 Affordable Housing Citywide Expand Homeowner-ship Opportunities HOME: $25,000 Infill Housing Project: construct 4 new houses 6 Expand Homeowner-ship Opportunities 2021 2022 Affordable Housing Eastpointe Community Expand Homeowner-ship Opportunities HOME: $214,000 Add 4 housing units in the Eastpointe Community 7 New Affordable Rental Housing 2021 2022 Affordable Housing Seccombe Park Affordable Rental Housing HOME: New Affordable Rental Units in Seccombe Park. $431,266 Persons assisted: 100 households 8 New Affordable Rental Housing 2021 2022 Affordable Housing Arrowhead Grove – Phase 4 Provide Homeless and Homeless Prevention Services HOME: $385,870 Mixed-income family apartments Persons assisted: 10 households 12.a Packet Pg. 186 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 24 OMB Control No: 2506-0117 (exp. 09/30/2021) 9 Improve Public Facilities and Infrastructure 2021 2022 Non-Housing Community Development Citywide Improve Facilities and Infrastructure CDBG: $1,496,626 Street improvements for: 532 Ramona Avenue - Ward 1 2129 Wall Avenue - Ward 2 938 N. G Street - Ward 2 140 W. 13th Street - Ward 2 2060 E. 18th Street - Ward 7 Grape Street (Walnut to Chestnut) – Ward 3 Davidson Avenue (Baseline to 14th) – Ward 6 10 Provide Supportive Services 2021 2022 Non-Housing Community Development Citywide Provide Supportive Services ESG: $290,457 Lutheran Social Services (Emergency Shelter) Step Up On Second (Street Outreach) Salvation Army – Hospitality House (Emergency Shelter) Mary’s Mercy Village (Homeless Prevention) 11 Planning and Administration 2021 2022 Administration Citywide Planning and Administration CDBG: $ 651,982 N/A HOME: $211,227 ESG : $21,784 Table 2 – Goals Summary 12.a Packet Pg. 187 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 25 OMB Control No: 2506-0117 (exp. 09/30/2021) Goal Descriptions 1 Goal Name Promote Economic Development Goal Description Micro-Loan Program: To assist in providing direct loans and loan guarantees, establishing revolving loan and/or facilitating peer lending programs for the establishment, stabilization, and expansion of microenterprises. Micro-Enterprise Program: To provide no-cost services to residents/business owners in the City of San Bernardino to help improve the likelihood of successful business launch, and growth of existing businesses. Section 108 Loan Repayment: Debt service repayment for Arden Guthrie Project. The project will create 214 jobs. Debt service repayment for Arden Guthrie Project 2 Goal Name Fair Housing Goal Description Eliminate identified impediments to fair housing through education, enforcement, and testing. Households Assisted: 2,700 3 Goal Name Expand Homeownership Opportunities Goal Description Infill Housing Project to create a total of four (4) new houses Eastpointe Community: Add 4 additional housing units to the community 12.a Packet Pg. 188 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 26 OMB Control No: 2506-0117 (exp. 09/30/2021) 4 Goal Name New Affordable Rental Housing Goal Description Seccombe Park: New affordable rental units Arrowhead Grove: Start Phase 4 of mixed-income family apartments 5 Goal Name Improve Public Facilities and Infrastructure Goal Description Five street improvements will be improved and renovated. The following streets are: 532 Ramona Avenue (Ward 1); 2129 Wall Avenue (Ward 2); 938 N. G Street (Ward 2); 140 W. 13th Street (Ward 2); 2060 E. 18th Street (Ward 7); Grape Street (Walnut and Chestnut) (Ward 3); and Davidson Avenue (Baseline to 14th) (Ward-6). The improvement of the streets as well as the Infill Housing development will have a greater impact in the neighborhoods. 6 Goal Name Provide Supportive Services Goal Description Provide funding to assist homeless individuals and those with special needs with supportive services; includes funding for emergency shelters, rapid rehousing, homelessness prevention, street outreach, and HMIS costs. 7 Goal Name Planning and Administration Goal Description The City will implement the goals and objectives of the Consolidated Plan by delivering a variety of housing and community development programs and activities. The City will also continue to comply with the planning and reporting requirements of the Consolidated Plan regulations and CDBG, HOME and ESG regulations. Annually, the City will monitor its use of CDBG, HOME and ESG funds to ensure effective and appropriate use of funds. 12.a Packet Pg. 189 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year Annual Action Plan 2021 27 OMB Control No: 2506-0117 (exp. 09/30/2021) Projects AP-35 Projects – 91.220(d) Introduction Projects # Project Name 1 Micro-Enterprise Program 2 Small Business Micro-Loan Program 3 Section 108 Repayment Program 4 Improve Public Facilities and Infrastructure 5 Fair Housing 6 Infill Housing 7 Seccombe Park Housing Project 8 Eastpointe Community – Homeownership 9 Arrowhead Grove Phase 4 10 Homeless Services 11 Planning and Administration – CDBG, HOME, ESG Table 5 - Project Information Describe the reasons for allocation priorities and any obstacles to addressing underserved needs These project and activity priorities have been created from the community input received and based on the identified needs of the City. The primary obstacle in addressing the underserved needs is the insufficient resources to meet the ongoing needs of individuals, especially those with special needs such as individuals experiencing homelessness. 12.a Packet Pg. 190 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 28 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-38 Project Summary Project Summary Information 1 Project Name Micro-Enterprise Program Target Area Citywide Goals Supported Promote Economic Development Needs Addressed Promote Economic Development Funding CDBG: $35,000 Description To provide no-cost services to residents/business owners in the City of San Bernardino to help improve the likelihood of successful business launch, and growth of existing businesses. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 125 participants who either own their business or are potential business owners. There will be 5 cohorts with a total of 25 participants in each cohort. Location Description Citywide - Available to all existing or potential business owners. Workshops are held at City Hall located at 201 North E Street, San Bernardino, CA and at the Mexican Consulate located at 293 North D Street, San Bernardino, CA. Planned Activities The program will partner with the Small Business Administration to provide Spanish language training for persons interested in launching a small business or expanding an existing small business. Through the City’s partnership with the “Emprendedoras” program, the City will cross promote the services available through Workforce Development. 12.a Packet Pg. 191 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 29 OMB Control No: 2506-0117 (exp. 09/30/2021) 2 Project Name Small Business Micro-Loan Program Target Area Citywide Goals Supported Promote Economic Development Needs Addressed Promote Economic Development Funding CDBG: $230,979 Description To assist in providing direct loans and loan guarantees, establishing revolving loan and/or facilitating peer lending programs for the establishment, stabilization and expansion of microenterprises. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 5 businesses will benefit from this proposed activity. Location Description Citywide Planned Activities This program focuses on the establishment, stabilization, and expansion of microenterprises within the City of San Bernardino. 3 Project Name Section 108 Repayment Program - Promote Economic Development Target Area Highland Avenue between Arden Street and Guthrie Street in the City of San Bernardino Goals Supported Promote Economic Development Needs Addressed Address joblessness in the City Funding CDBG: $ 772,323 Description Section 108 Repayment Program Debt payment on Section 108, which will create 214 jobs, in order to pursue physical and economic revitalization that will provide jobs. 12.a Packet Pg. 192 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 30 OMB Control No: 2506-0117 (exp. 09/30/2021) Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 214 individuals will benefit from this proposed activity. Location Description 17.43 acre commercial property located along Highland Avenue between Arden Street and Guthrie Street in the City of San Bernardino. Planned Activities The City has moved forward with the sale of the property and using Section 108 loan for the repayment of the Arden Guthrie Project. 4 Project Name Street Improvements Target Area Citywide Goals Supported Improve Facilities and Infrastructure Needs Addressed These streets will support Infill Housing Projects Funding CDBG: $ 1,496,626 Description Five (5) streets have been identified for sidewalk replacement and ADA accessibility. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Persons with an income level of 30% to 50% of AMI will benefit of the improvements made to these streets. Location Description The City has proposed to fund the following five (5) street improvements: 1. 532 Ramona Avenue – Ward 1 2. 2129 Wall Avenue – Ward 2 3. 938 N. G Street – Ward 2 12.a Packet Pg. 193 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 31 OMB Control No: 2506-0117 (exp. 09/30/2021) 4. 140 W. 13th Street – Ward 2 5. 2060 E. 18th Street – Ward 7 6. Grape Street (Walnut to Chestnut) – Ward 3 7. Davidson Avenue (Baseline to 14th) – Ward 6 Planned Activities Street improvements for concrete repairs and ADA compliance. 5 Project Name Fair Housing Target Area Citywide Goals Supported Fair Housing Needs Addressed Fair Housing Funding CDBG: $73,000 Description Inland Fair Housing Mediation Board will provide activities that will assist the City in furthering fair housing. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities This program will benefit approximately 2,700 Low/Moderate Income Households/Tenants. Location Description Citywide Planned Activities IFHMB will provide investigation, education, reconciliation, and/or referral of housing discrimination complaints free of charge in the City of San Bernardino. IFHMB offers workshops to educate housing providers, tenants, homeowners, and financial and lending institutions on fair housing laws. 6 Project Name Infill Housing Project 12.a Packet Pg. 194 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 32 OMB Control No: 2506-0117 (exp. 09/30/2021) Target Area Citywide Goals Supported Expand Homeownership Opportunities Needs Addressed Affordable Housing Funding HOME: $25,000 Description Infill Housing Project construction of new houses Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities The program will create 4 new houses Location Description Citywide Planned Activities Construction 7 Project Name Eastpointe Community Target Area Eastpointe Community Goals Supported Expand Homeownership Opportunities Needs Addressed Affordable Housing Funding HOME: $214,000 Description Add additional housing units to the Eastpointe Community Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Creation of 4 new housing units 12.a Packet Pg. 195 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 33 OMB Control No: 2506-0117 (exp. 09/30/2021) Location Description 2205 Sunrise Ln. location in the 92404 neighborhood of San Bernardino Planned Activities Construction 8 Project Name Seccombe Park Target Area Seccombe Park Goals Supported New Affordable Rental Units Needs Addressed Affordable Housing Funding HOME: $431,266 Description New affordable rental units in Seccombe Park; approximately 100 households assisted. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Creation of new affordable rental units Location Description 160 E 5th St, San Bernardino, CA 92415 Planned Activities Construction 9 Project Name Arrowhead Grove - Phase 4 Target Area Arrowhead Grove Master Plan Community Goals Supported New Affordable Rental Housing Needs Addressed Affordable Housing Funding HOME: $385,870 12.a Packet Pg. 196 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 34 OMB Control No: 2506-0117 (exp. 09/30/2021) Description Phase 4 of the Arrowhead Grove Master Plan Community to build additional mixed-income family apartments Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities Creation of new affordable rental units Location Description 1151 N Crestview Ave, San Bernardino, CA 92410 Planned Activities Construction 10 Project Name Homeless Services Target Area Citywide Goals Supported Provide Supportive Services Needs Addressed Homeless Funding ESG: $290,457 Description Provide funding to assist homeless individuals and those with special needs with supportive services; includes funding for emergency shelters, rapid rehousing, homelessness prevention, street outreach, and HMIS costs. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities 600 persons and/or families Location Description Planned Activities 11 Project Name Planning and Administration – CDBG, HOME, ESG 12.a Packet Pg. 197 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 35 OMB Control No: 2506-0117 (exp. 09/30/2021) Target Area N/A Goals Supported Planning and Administration; Expand Home Ownership Opportunities; Provide Supportive Services Needs Addressed Planning and Administration; Expand Home Ownership Opportunities; Provide Supportive Services Funding CDBG: $651,982 HOME: $211,227.20 ESG: $21,784 Description The City will implement the goals and objectives of the Action Plan by delivering a variety of housing and community development programs and activities. The City will also continue to comply with the planning and reporting requirements of the Action Plan regulations and CDBG, HOME and ESG regulations. Assist homeless and special needs populations with supportive services. Funding for various Emergency Solutions Grant Program Projects to include Emergency Shelter, Rapid Rehousing, Homelessness Prevention, Street Outreach and HMIS costs. Annually, the City will monitor its use of CDBG, HOME and ESG funds to ensure effective and appropriate use of funds. Target Date 6/30/2022 Estimate the number and type of families that will benefit from the proposed activities N/A Location Description 201 North E Street, San Bernardino, CA 92401 12.a Packet Pg. 198 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 36 OMB Control No: 2506-0117 (exp. 09/30/2021) Planned Activities Grant and Project Management 12.a Packet Pg. 199 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 37 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-50 Geographic Distribution – 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City will use its funding for FY 2021-2022 to fund a variety of housing, community development, economic development, and capital improvement projects. The majority of federal funds will be used to finance projects targeting low- to moderate-income individuals and families throughout the City. CDBG Benefit Service Areas are defined as geographic locations within the City of San Bernardino where 51 percent or more of the households in those areas are low- to moderate-income. The 2010 U.S. Census identified approximately 68.9 percent of the City consisted of households with low or moderate incomes. A map of the Low / Moderate Income Target Areas is attached to this document. (Appendix A) The City of San Bernardino has become increasingly diverse in its racial and ethnic makeup. Over the past decades the City has seen a shift from a non-Hispanic, White majority to a Hispanic Origin majority. According to the U.S. 2010 Census, approximately 60 percent of the population is of Hispanic Origin, 19 percent is Non-Hispanic, White, 14.2 percent is Black, 3.8 percent is Asian, and 2.9 percent is comprised of some “Other” race or ethnicity. See attached maps in the Action Plan document as a reference to the geographic distribution. Geographic Distribution Target Area Percentage of Funds Citywide 100% CDBG Eligible Census Tract and Block Group 100% Table 6 - Geographic Distribution 12.a Packet Pg. 200 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 38 OMB Control No: 2506-0117 (exp. 09/30/2021) Rationale for the priorities for allocating investments geographically The funding available under the 2021-2022 Action Plan may be used to meet a variety of community development and housing needs. As part of the development of the 2021-2022 Action Plan, the City established priority needs based on an in-depth analysis of the several factors housing, homelessness, poverty, special needs, lead hazards, institutional structure, etc. The City will utilize its federal funding to pursue goals and objectives listed in the section “AP-20 Annual Goals and Objectives” of this document. The City’s primary intent is to spend its CDBG funds in predominantly low-income neighborhoods where residents have the greatest need for housing/services. The City will focus on low to moderate income neighborhoods where there is a greatest need in the parks, such as having the playground equipment replaced, because those are the areas of greatest need. Discussion As noted previously, the City does not allocate funds on a geographic basis, instead, funds are allocated to organizations that provide low-income households with housing and supportive services. On an annual basis, the City prioritizes the use of its CDBG funding for housing and community development activities, including preservation and conservation of affordable housing and activities that serve low- and moderate-income households. Public improvements and public facilities are qualified as benefitting low- and moderate-income persons. Activities identified under the public service category and targeted to special needs populations are offered on a citywide basis and/or where resources can be coordinated with existing facilities or services. The City of San Bernardino does not have any Neighborhood Revitalization Strategy Areas (NRSA) within its City’s boundaries. 12.a Packet Pg. 201 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 39 OMB Control No: 2506-0117 (exp. 09/30/2021) Affordable Housing AP-55 Affordable Housing – 91.220(g) Introduction As a reflection of the Housing Needs Assessment of the 2020-2024 Consolidated Plan, housing problems within the City of San Bernardino include: 1) Units with physical defects; 2) overcrowded conditions; and 3) housing cost burden. The City will use CDBG and HOME funds to pursue three affordable housing goals: 1) Preserve and Rehabilitation Housing, 2) Expand Home Ownership Opportunities and 3) Provide Assistance to Renter Households. Preserve and Rehabilitate Housing Approximately 67 percent of both owner-occupied housing (18,125) and rental units (20,735) were built prior to 1980. In general, housing begins to require major repairs after 30 or 40 years of age. Those repairs could include important health and safety repairs such as for heating/air systems, roof, kitchen appliances, bathroom or kitchen plumbing, and insulation. Many low- to moderate-income households may be unable to afford these needed repairs. In the City of San Bernardino, substandard housing conditions may consist of the following: structural hazards, poor construction, inadequate maintenance, faulty wiring, plumbing, fire hazards, and inadequate sanitation. Substandard units suitable for rehabilitation are those units where the total rehabilitation costs do not exceed 25 percent of the after- rehabilitation value (Data Source: 2011-2015 ACS). Expand Home Ownership Opportunities There is a need for affordable housing in San Bernardino. The most prevalent housing problems within the City is cost burden and overcrowded conditions. San Bernardino has a population of 214,115 persons and a total of 57,547 households. Nearly 59 percent of households in San Bernardino (33,760 total) qualify as low- to moderate-income, earning up to 80 percent of HUD Area Median Family Income (HAMFI). Families who pay more than 30 percent of their income for housing are considered cost burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care. Overcrowded conditions exist when more people are living within a single dwelling than there is space for, so that movement is restricted, privacy is compromised and levels of stress increase. Low-moderate income (LMI) renter households experience housing problems at a higher rate (60 percent) than LMI owner households (44 percent). Many of San Bernardino’s extremely low-income households (42 percent) are small families (four persons or less), which shows a need for smaller (one, two, or three bedroom) affordable housing units. 12.a Packet Pg. 202 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 40 OMB Control No: 2506-0117 (exp. 09/30/2021) The City’s housing market has fluctuated greatly over the last ten years. During the 2000 Census, the median home value (MHV) in the City was $94,000; it then saw a steep increase during the housing boom of the 2000s, increasing 115 percent by 2009 to an MHV of $270,200. In 2000, the median income in the City was $31,140, which would have allowed an average household to purchase a home without becoming cost burdened (less than 30 percent of their income). In 2015, the median income in the City was $37,047, a 16 percent increase, with an MHV of $159,800, which would make most homeowners cost burdened. Based on the 2011-2015 ACS, the median income would be sufficient for a renter to afford $1,029 in housing costs per month, which includes rent and utilities, and not be cost burdened; 72 percent of the City’s renter population pays $999 or less per month Provide Assistance to Renter Households The City has a significant inventory of publicly assisted rental housing affordable to low-income households. Eighteen affordable rental housing developments in the City offer income/rent restricted housing for approximately 2,205 very low-income households. A total of 15 projects, with a combined total of 1,627 affordable units, are at risk of losing their affordability status. HACSB does not anticipate losing affordable housing units due to expiration of contracts in the next five years. These projects are technically considered at risk of converting to market-rate housing. However, most of these projects are non-profit owned senior housing which will receive priority for rental of subsidy contracts with HUD. Therefore, it is unlikely that the projects will convert to market-rate housing. Nonetheless, the City will periodically reach out to owners of assisted projects to understand their intentions for opting out of the Housing Choice Voucher Program or pursuing financial restructuring in order to extend the terms of affordability. The City also will continue to work with qualified Community Housing Development Organizations (CHDO) to acquire and construct or rehabilitate multifamily housing as long-term affordable housing for lower-income households. One Year Goals for the Number of Households to be Supported Homeless 600 Non-Homeless 349 Special-Needs 0 Total 949 Table 7 - One Year Goals for Affordable Housing by Support Requirement 12.a Packet Pg. 203 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 41 OMB Control No: 2506-0117 (exp. 09/30/2021) One Year Goals for the Number of Households Supported Through Rental Assistance 0 The Production of New Units 108 Rehab of Existing Units 0 Acquisition of Existing Units 0 Total 108 Table 8 - One Year Goals for Affordable Housing by Support Type Discussion The table “One Year Goals for the Number of Households to be Supported” consists of 349 non- homeless households to be supported. Homeownership of four (4) housing units added in Eastpointe neighborhood. Incomes will range from 50% to 80% of Area Median Income (AMI). New Infill Housing construction of four (4) for-sale single family homes, incomes will range from 50% to 80% of Area Median Income (AMI). 100 affordable rental units to be built at Seccombe Park. 12.a Packet Pg. 204 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 42 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-60 Public Housing – 91.220(h) Introduction Public housing and other assisted housing programs are crucial elements of the City’s efforts to address affordable housing needs of low- and moderate-income families, senior citizens, disabled individuals, and other individuals. The City falls within the jurisdiction of the Housing Authority of the County of San Bernardino (HACSB). This agency administers the Housing Choice Voucher Program, which provides rental assistance to eligible residents of San Bernardino by providing monthly rental assistance to participants who want to rent from a private landlord but cannot afford the full monthly rental payment. The Housing Choice Voucher program is funded by the U.S. Department of Housing and Urban Development (HUD). In 2019, the latest year for which data is available, HACSB provided 10,798 housing choice vouchers throughout San Bernardino County, assisting 25,331 individuals. Of those 10,798 housing choice vouchers, 2,694 were issued to San Bernardino City residents. The City will continue to support the efforts of HACSB in the administration of the Housing Choice Voucher and maximize the use of those funds and other resources in San Bernardino. Actions planned during the next year to address the needs to public housing To assist HACSB in addressing public housing needs, the City will do the following: Monitor At-Risk Units The City will maintain contact with the owners of at-risk units, encourage the owner to keep the at-risk units affordable and utilize, if feasible, local incentives to preserve any at-risk units. Support and Assist Local Non-Profit Organizations In order to develop or preserve the City’s affordable housing stock, the City will provide technical and/or financial assistance to local non-profit organizations that provide affordable housing. Actions to encourage public housing residents to become more involved in management and participate in homeownership Because the City does not own any public housing units, the City has not taken efforts to encourage public housing residents to become more involved in management and participate in homeownership. However, the City collaborates with the Housing authority of the County of San Bernardino to encourage public housing residents to contribute and participate in the management and HACSB has a 12.a Packet Pg. 205 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 43 OMB Control No: 2506-0117 (exp. 09/30/2021) homeownership program for residents of public housing. As for homeownership opportunities, the City has initiated an Infill Housing Program that will acquire distressed properties within San Bernardino, rehabilitate them and sell them to income qualified homebuyers. The City will work with HACSB, to identify any households who may be eligible for the Housing Choice Voucher Program. If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance The Housing Authority of the County of San Bernardino has not been designated as troubled. Actually, it has a moving to work designation which is a designation that a limited number of PHAs across the country have. Discussion There is no discussion relative to the designation of the county PHA. 12.a Packet Pg. 206 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 44 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-65 Homeless and Other Special Needs Activities – 91.220(i) Introduction According to the San Bernardino County 2020 Homeless PIT Count, there were 1,056 homeless persons in the City. A total of 183 individuals were sheltered, 50 in transitional housing, and 823 were unsheltered. To address this issue, the City will allocate approximately $290,457 in ESG funds to homeless service providers who are skilled at transitioning homeless individuals and families from homelessness to permanent housing through a variety of activities including street outreach, homeless prevention, rapid re-housing, emergency shelter and essential services. Describe the jurisdictions one-year goals and actions for reducing and ending homelessness including: Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs The City is an active member of the San Bernardino CoC and fully supports the goals and objectives of the San Bernardino County 10-Year Strategy to End Homelessness. To reach out to homeless persons and assess their individual needs, the City will continue to support the CoC’s coordinated entry system, 2-1-1 San Bernardino County. The Coordinated Entry System will provide people who are at imminent risk of becoming homeless (HUD Homeless definition (Category 2) with problem solving support to retain current housing or to locate get housing placement. The City is continuing its contract in FY 2021-2022 with Step Up On Second, with the goal of reaching 78 homeless persons through street outreach, providing social service referrals to 49 of those 78 persons and facilitating the placement of 13 homeless persons into permanent housing. Addressing the emergency shelter and transitional housing needs of homeless persons The City will continue to fund Lutheran Social Services Southern California (LSSC) to provide an emergency men’s shelter. LSSSC has submitted plans to the City for a preliminary review of a new men’s shelter with a 75-bed capacity. Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becomi ng homeless again The City of San Bernardino recognizes that homelessness is a regional issue that impacts every community in the region. As the largest community in the County, the City also serves as a hub for service providers. The City supports the efforts of the network of agencies working to end homelessness through the Regional Continuum of Care Strategy. The Continuum of Care Strategy involves four key 12.a Packet Pg. 207 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 45 OMB Control No: 2506-0117 (exp. 09/30/2021) components, one of which is homeless prevention. The provision of preventative services will decrease the number of households and individuals who will become homeless and require emergency shelters and assistance. The City is working to prevent persons from becoming homeless by funding emergency rental assistance for households at-risk of homelessness. Utilizing its HOME dollars, the City funded the acquisition of the Golden Apartments a 21-unit apartment complex that has been rehabilitated and converted into 38 one-bedroom apartments of supportive housing for homeless persons. Residents moved into their new one-bedroom flats in December 2019. Golden has onsite health and mental health services available through the Department of Behavioral Health and Molina Health. The City has partnered with Step Up on Second to provide street outreach services to homeless persons and assist them with obtaining their vital documents, housing navigation, transportation to appointments and placement in permanent housing. To date, in FY 2019-2020, Step Up has housed 13 individuals and provided linkage to services to 78 persons. San Bernardino County’s 10-Year Strategy for Ending Homelessness was recalibrated in 2013 to focus on a rapid re-housing approach that is also consistent with a Housing First Model. This approach is intended to minimize the amount a time an individual or family remains homeless or in shelters. The Housing First Model also focuses on homeless prevention by emphasizing the need to keep individuals and families in their current housing if appropriate. Helping low-income individuals and families avoid becoming homeless, especially extremely low- income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other yo uth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs. The City will continue to support the regional CoC’s efforts to implement the San Bernardino County 10- Year Strategy for Ending Homelessness. This plan includes a recommendation to focus on discharge planning in order to prevent people from becoming homeless when they are discharged from correctional, foster care, health care, or mental health care systems. The McKinney-Vento Act requires that State and local governments have policies and protocols in place to ensure that persons being discharged from a publicly funded institution or system of care are not discharged immediately into homelessness. In order to meet HUD’s requirements, the 10-Year Strategy has established a Discharge Planning Committee to focus on improving coordination between discharge planning agencies, local government, and homeless service providers in order to implement a “zero tolerance” plan that will prevent persons being discharged into homelessness. Discussion 12.a Packet Pg. 208 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 46 OMB Control No: 2506-0117 (exp. 09/30/2021) In 2018, the City declared a shelter crisis which allowed agencies to apply for the State’s Homeless Emergency Aid Program (HEAP) funding. Four agencies serving homeless persons in the City of San Bernardino received $2.1 million in HEAP funds that can be used over four years. The CoC’s coordinated entry system provides a single point of entry for people who are homeless to be screened and assessed for a range of CoC and City funded homeless programs, including emergency shelters, transitional housing, permanent supportive housing, and rapid rehousing services. All contracted service providers report outcomes based on the countywide outcome standards developed by the County Office of Homeless Services, in order to inform future adjustments to the service system. In FY 18-19, the City facilitated the purchase of two (2) multi-family properties by Foothill Aides Project. In FY 19-20 those properties were rehabilitated and leased to low-income persons with HIV/Aids. 12.a Packet Pg. 209 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 47 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-75 Barriers to affordable housing – 91.220(j) Introduction: The City recognizes that barriers to affordable housing exist and continues to employ strategies to overcome them. Policies can create barriers to the production of affordable housing and residential investment because such factors increase costs. The high cost of affordable housing and residential investment can be contributed to the following: Lack of Affordable Housing Funds: The availability of funding for affordable housing has been severely affected by the dissolution of redevelopment agencies. Prior to 2012, redevelopment activities and funding were the City’s primary tool for assisting with neighborhood revitalization efforts and production of affordable housing. The loss of this funding represents a constraint for the City of San Bernardino’s efforts to continue to support neighborhood revitalization. Now the City relies on private resources, federal grant programs, state resources, and philanthropy to fund affordable housing projects. Environmental Protection: State law (California Environmental Quality Act and California Endangered Species Act) and federal law (National Environmental Policy Act and Federal Endangered Species Act) regulations require environmental review of proposed discretionary projects (e.g., subdivision maps, use permits, etc.). Costs and time delay resulting from the environmental review process are also added to the cost of housing. Site Improvements: Many parts of San Bernardino are undeveloped and lack adequate pedestrian and automobile infrastructure to support new residential subdivisions. All new residential development is required to provide sidewalk with curbs and gutters and must be served by appropriate roadways consistent with the General Plan Circulation Element and adopted road development standards. The cost of these improvements increases the cost of development but is necessary to facilitate pedestrian and vehicular access and movement in the City. Planning and Development Fees: Planning and development impact fees, such as for transportation, water, and sewer infrastructure improvements, often add to the overall cost of development. The City’s fees reflect the fair share of the costs of providing permitting, infrastructure, and services for new residences. Permit and Processing Procedures: Builders and developers frequently cite the cost of holding land during the evaluation and review process as a significant factor in the cost of housing. The City of San Bernardino’s development review process is designed to accommodate growth without compromising quality. Project quality is of critical concern, as the City faces challenges in securing foreclosed single- family homes and poorly maintained multifamily complexes. State and Federal Davis-Bacon Prevailing Wages: The State Department of Industrial Relations (DIR) expanded the kinds of projects that require the payment of prevailing wages. Prevailing wage adds to 12.a Packet Pg. 210 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 48 OMB Control No: 2506-0117 (exp. 09/30/2021) the overall cost of development. A prevailing wage must also be paid to laborers when federal funds are used to pay labor costs for any project over $2,000 or on any multi-family project over eight units. Based on discussions with developers, various prevailing wage requirements typically inflate the development costs by 35 percent. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment The City undertook a major effort to eliminate constraints, with respect to land use regulations, by developing and adopting a new Development Code that unified and simplified the City’s development regulations and processes. That effort was followed by a reorganization of the City to unify the various development-related departments into a single Community Development Department and a one-stop permit counter. The City has made the following additional amendments to the Municipal Code in order to further reduce barriers to affordable housing: 1. General Lot Consolidation Incentive - Small, individual lots offer limited development potential, and generally cannot support onsite property management. Development opportunities could be increased through a small-lot consolidation program that offers a 15 percent density bonus for projects with a residential component that are committing to a maintenance plan and having on-site management. The City is anticipating amending the Development Code to incentivize lot Consolidation. 2. Density Bonus Provisions - Density bonus projects can be an important source of housing for lower-and moderate-income households. The City anticipates amending the Development Code to reflect the latest amendments to State density bonus law. 3. Transitional and Supportive Housing - The City plans to amend the Development Code to adequately define transitional and permanent supportive housing and permit these uses based on unit type, in accordance with Senate Bill 2. 4. Streamlined Processing - The City is committed to continuing the streamlining of development activities and regulations and will continue to analyze potential programs that seek to eliminate land use constraints, particularly as related to the provision of new housing and rehabilitation of existing housing. The City amended its Development Code in 2012 to make it more user -friendly and to minimize confusion for staff and the development community. As part of the Development Code update, the City also introduced a new streamlined type of Conditional Use Permit: the Minor Use Permit (MUP). The MUP is reviewed by the Development/Environmental Review Committee rather than the Planning Commission, which requires less staff time (and a relatively shorter process for developers), lower fees, and can be used in lieu of a CUP for certain qualified projects. 5. The City will update its General Plan. 12.a Packet Pg. 211 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 49 OMB Control No: 2506-0117 (exp. 09/30/2021) Discussion: To address housing affordability and the lack of monetary resources for affordable housing, the Consolidated Plan calls for the investment of CDBG and/or HOME funds to preserve and rehabilitate housing units and provide homeownership opportunities to low and moderate-income households. For FY 2021-2022, the City will continue to fund its Infill Housing Program and its Owner-Occupied Residential Rehabilitation Program (OORP). The OORP will be funded with carryover funds from last year that were not fully expended. Through the City’s Infill Housing Program, the City will acquire, rehabilitate vacant and/or underutilized parcels of land and create housing affordable to low- and moderate-income households. The Owner-Occupied Residential Rehabilitation Program will provide deferred loans for the rehabilitation of single family units owned by low and moderate income households. Although the City no longer has access to redevelopment funds, the City will continue to leverage its CDBG and HOME funds to attract private and other available public resources, including land conveyed to the City for the purpose of creating affordable housing for low- and moderate- income households. 12.a Packet Pg. 212 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 50 OMB Control No: 2506-0117 (exp. 09/30/2021) AP-85 Other Actions – 91.220(k) Introduction: Priority Needs established in the FY 2020-2024 Five-Year Consolidated Plan, which forms the basis for establishing objectives and outcomes in the FY 2021-2022 One-Year Action Plan, are as follows: High Priority  Preserve and Rehabilitate Housing  Expand Homeownership Opportunities  Provide Homeless and Homeless Prevention Services  Promote Economic Development and Employment Opportunities for low- and moderate-income persons/micro-enterprises Low Priority  New Affordable Rental Housing  Improve and Expand existing Community Facilities and Infrastructure to meet current and future needs  Eliminate identified impediments to fair housing through education, enforcement, and testing  Planning and Administration – CDBG, HOME, ESG  New Affordable Housing Construction or Rehabilitation  Expand Homeownership opportunities – Infill Housing  First-Time Homeownership – CHDO 15% set-aside Actions planned to address obstacles to meeting underserved needs To address obstacles to meeting underserved needs, the City will allocate CDBG, uncommitted HOME and ESG funds through the Action plan in projects that provide financing for the affordable housing development, housing rehabilitation, job creation, public facility/infrastructure improvements and homeless prevention. Lack of resources is the primary obstacle to meeting underserved needs. In order to leverage additional ongoing resources for housing and homeless services, the City is applying for the Permanent Local Housing Allocation (PLHA) funds which are administered by the State Department of Housing and Community Development to It anticipated that in the 2021 the City can receive up to $1.6 million in PLHA funds. The City will also support HACSB’s efforts to obtain additional rental assistance funding, especially for seniors and lower-income households. Actions planned to foster and maintain affordable housing The City will continue to invest HOME funds to expand the supply of affordable housing and will use HOME funds to preserve and maintain existing affordable housing through the City of San Bernardino’s 12.a Packet Pg. 213 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 51 OMB Control No: 2506-0117 (exp. 09/30/2021) Owner-Occupied Rehabilitation Loan Program. Actions planned to reduce lead-based paint hazards To reduce lead-based paint hazards, housing constructed prior to 1978 and assisted through the City of San Bernardino’s Owner-Occupied Residential Rehabilitation Program will be tested for lead based paint hazards. If lead based-paint hazards are found, safe work practices or abatement procedures will be included in the scope of work for the rehabilitation of the housing unit. All procedures will be in compliance with 24 CFR Part 35. Actions planned to reduce the number of poverty-level families For FY 2021-2022, the City will support:  An Infill Housing Program that will acquire and rehabilitate/construct underutilized properties within the City and when complete sell these homes to low- and moderate-income households  Micro Enterprise Program that will provide no-cost services to residents/business owners in the City of San Bernardino to help improve the likelihood of a successful business launch, and growth of existing mico-businesses.  Service providers who can provide street outreach, rapid-rehousing, homeless prevention, emergency shelter, and other essential services to homeless and near-homeless persons and families.  The improvement of streets, along with the Infill Housing that will be taking place. These improvements will have a greater impact in the neighborhoods.  The efforts of HACSB, who provides rental assistance and conventional housing to low-income households.  The efforts of the CoC, San Bernardino County Behavioral Health Administration, Office of Homeless Services and various Homeless Service Agencies to provider public and social services to residents living in poverty, including health services, counseling, educational programs, food distribution, academic and vocational training, youth services, and senior services.  The goals and objectives of San Bernardino County 10-Year Strategy to End Homelessness.  The CoC’s coordinated entry system, 2-1-1 San Bernardino County that provides persons who are at imminent risk of becoming homeless with problem solving support to retain current housing or to locate another housing placement. Actions planned to develop institutional structure During the next year, the San Bernardino Community & Economic Development Department will continue consulting with and inviting a wide variety of agencies and organizations (i.e. CoC, HACSB, National CORE, County of San Bernardino Community Development and Housing Agency, etc.) involved with the delivery of housing and social services to low- and moderate-income San Bernardino residents. This will allow to coordinate the City's activities by not duplicating efforts and to know what 12.a Packet Pg. 214 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 52 OMB Control No: 2506-0117 (exp. 09/30/2021) other agencies are doing. Currently, the City is working with the Center for Community Investment and Dignity Health (Accelerating investments for Healthy Communities). The City's collaboration with CCI and Dignity Health has resulted in the investment of $1.2 million in permanently affordable rental housing in the City. These types of collaborations build the capacity for the City to continue providing affordable housing. Actions planned to enhance coordination between public and private housing and social service agencies During the next year, the San Bernardino Community & Economic Development Department will continue consulting with a wide variety of agencies and organizations such as HACSB, County Workforce Development, County Department of Behavioral Health and County Office on Aging and Adult Services involved with the delivery of housing, supportive services and economic development to low- and moderate- income San Bernardino residents. Workforce Development, for example, provides job placement services for person in the County and also provides up to three months of paid on the job training and any equipment that an employee may require to carry their new job. In the realm of economic development, the City recently established a partnership with the Mexican Consulate’s “Emprendedoras” program. The program partners with the Small Business Administration and the City’s Micro Enterprise program to provide Spanish language training for persons interested in launching a small business or expanding an existing small business. Through the City’s partnership with the “Emprendedoras” program, the City will cross promote the service s available through Workforce Development. Discussion: The implementation of the FY 2021-2022 Action Plan will invest federal resources to address obstacles to meeting underserved needs, foster and maintain affordable housing, reduce lead-based paint hazards, inspection of HOME units, reduce the number of families living in poverty, develop institutional structure, and enhance coordination between public and private housing and social service agencies. 12.a Packet Pg. 215 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 53 OMB Control No: 2506-0117 (exp. 09/30/2021) Program Specific Requirements AP-90 Program Specific Requirements – 91.220(l)(1,2,4) Introduction: In the implementation of programs and activities under the 2021-2022 Action Plan, the City of San Bernardino will follow all HUD regulations concerning the use of program income, forms of investment, overall low-and moderate-income benefit for the CDBG program and recapture requirements for the HOME program. The years 2020, 2021 and 2022 are used to determine that an overall benefit of 80% of CDBG funds is used to benefit persons of low and moderate income. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. 1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed 0 2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan 0 3. The amount of surplus funds from urban renewal settlements 0 4. The amount of any grant funds returned to the line of credit for which the planned use has not been included in a prior statement or plan. 0 5. The amount of income from float-funded activities 0 Total Program Income 0 Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. Specify the years covered that include this Annual Action Plan. 80.00% 12.a Packet Pg. 216 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 54 OMB Control No: 2506-0117 (exp. 09/30/2021) HOME Investment Partnership Program (HOME) Reference 24 CFR 91.220(l)(2) 1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows: The City does not anticipate using other forms of investment beyond those identified in Section 92.205. 2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows: HOME Recapture Provision If Buyer at any time during the Period of Affordability sells or transfers the Eligible Property, whether voluntarily or involuntarily due to foreclosure or other circumstance, the following provisions shall apply, pursuant to 24 C.F.R. Part 92.254: (a) If Buyer sells or transfers the Eligible Property within the first two years of the Period of Affordability, City shall recover from the Net Proceeds, if any, the entire amount of the HOME Subsidy, or such lesser amount as the Net Proceeds may permit to be recovered. The Net Proceeds are the sales price paid to Buyer minus repayment of loans that are superior in priority to this Affordable Housing Covenant and the Deed of Trust securing it, and any closing costs. (b) If Buyer sells or transfers the Eligible Property after occupying the Eligible Property for at least two years (24 months from the Delivery Date), City’s recovery from the Net Proceeds shall equal the amount of the HOME Subsidy, reduced by a percentage determined by dividing the number of Buyer’s full years of occupation of the Eligible Property by the number of years of the Period of Affordability, and multiplying the result by 100. In calculating recapture of the HOME subsidy only full 12-month periods of occupancy will be utilized in the calculation. For example, if Buyer sells or transfers the Eligible Property during the third year, before the completion of the full third year of a ten-year Period of Affordability, the percentage reduction of the amount of the HOME Subsidy to be recovered by City shall equal 20 percent: (2 years ÷ 10 years) × 100 = 20. Assuming sufficient Net Proceeds, City would recover 80 percent of the HOME Subsidy. If there were not sufficient Net Proceeds, City would recover 80 percent of Net Proceeds, whatever the amount. (c) In no event shall City’s recovery exceed the amount of the Net Proceeds. The City requires that its CHDO/subrecipients, who carry out HOME funded ownership programs, utilize the noted recapture provisions, which are part of the affordability covenant executed by the homeowner and recorded against the property. 12.a Packet Pg. 217 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 55 OMB Control No: 2506-0117 (exp. 09/30/2021) In its homeownership and single-family rehabilitation programs the City utilizes the homeownership limits for the San Bernardino Metropolitan/FMR Area provided by HUD. 3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows: Measured from the Delivery Date and determined based on the amount of the HOME Subsidy, as follows: Amount of HOME Subsidy Period of Affordability Less than $15,000 5 years $15,000 to $40,000 10 years More than $40,000 15 years The City's affordability covenant requires that HOME units acquired with HOME funds remain affordable for the period noted based on the amount of HOME subsidy. The City requires that its CHDO/subrecipients who carry out HOME funded ownership programs utilize the noted recapture provisions, which are part of the affordability covenant executed by the homeowner and recorded against the property. In its homeownership and single-family rehabilitation programs the City utilizes the homeownership limits for the San Bernardino Metropolitan/FMR Area provided by HUD. 12.a Packet Pg. 218 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 56 OMB Control No: 2506-0117 (exp. 09/30/2021) 4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows: The City will not be undertaking any refinancing of existing debt secured by multifamily housing that is rehabilitated with HOME funds. The City will not undertake the refinancing of single-family units rehabilitated with HOME funds. With regard to eligible beneficiaries, the City will adhere to the requirements under 24 CFR 2.203 with regard to income determinations; 92.216 with respect to incomes of applicants; 92.253 with regard to tenant protections and selection and other HOME regulatory requirements that ensure beneficiaries are not precluded from participating in HOME funded programs. The City utilizes Notice of Funding Availability and Requests for Proposals to solicit applications for funding under the HOME program. Solicitations for applications are conducted as funds are available for various programs and/or when contracts and renewal periods with applicants expire and new NOFAs and RPS are released. Emergency Solutions Grant (ESG) Reference 91.220(l)(4) 1. Include written standards for providing ESG assistance (may include as attachment) See Attachment under Admin (AD-26). 2. If the Continuum of Care has established centralized or coordinated assessment system that meets HUD requirements, describe that centralized or coordinated assessment system. The Continuum of Care (CoC) is led by the County of San Bernardino, Department of Behavioral Services. The Coordinated Entry System, referred to as 211 San Bernardino County, is operated by the United Way of San Bernardino County and provides free and confidential information and referral service to persons in need of help connecting with various free or low cost health and human service providers. 211 San Bernardino County, is available 24 hours a day, 7 days a week by dialing 2 -1-1 in San Bernardino County or by dialing the toll-free number at 1-888-435-7565. Bilingual staff is available to assist English and/or Spanish speaking callers. However, if another language is need, 211 San Bernardino County, utilizes a translation line that can assist in disseminating information in over 150 languages. 211 San Bernardino County is also available by going to http://211sb.org. Within the City’s ESG written agreement, the Subrecipient must agree to coordinate and integrate, to the maximum extent practicable, ESG-funded activities with other programs targeted to homeless 12.a Packet Pg. 219 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 57 OMB Control No: 2506-0117 (exp. 09/30/2021) people in the area covered by the Continuum of Care or area over which the services are coordinated to provide a strategic, community-wide system to prevent and end homelessness. 3. Identify the process for making sub-awards and describe how the ESG allocation available to private nonprofit organizations (including community and faith-based organizations). The City of San Bernardino will competitively procure for services that will meet the goals and objectives of the City’s Consolidated Plan and San Bernardino Continuum of Care’s (CoC) 10 -Year Plan to End Homelessness. The application review process has three phases. In the first phase, all applications are reviewed by the Community and Economic Development Department staff for completeness and eligibility under the Federal program guidelines. Eligible programs and projects are then reviewed according to their contribution to the goals and objectives of the City’s approved Consolidated Plan and CoC’s 10-Year Plan to End Homelessness. Preference is given if a program has the ability to help the City meet federal program objectives and local priorities. Organizational capacity, experience, and past performance are also considered. Based on this review, Community and Economic Development Department staff prepares general funding recommendations. Lastly, a public hearing before City Council will be held to consider the 2021-2022 Draft Annual Action Plan. The City Council adopts the Annual Action Plan, which acts as the CDBG, HOME and ESG program annual budget. Upon completion of this process, the City forwards the adopted Annual Action Plan to the U.S. Department of Housing and Urban Development for approval. 4. If the jurisdiction is unable to meet the homeless participation requirement in 24 CFR 576.405(a), the jurisdiction must specify its plan for reaching out to and consulting with homeless or formerly homeless individuals in considering policies and funding decisions regarding facilities and services funded under ESG. The City of San Bernardino attends and participates, on a quarterly basis, the Interagency Council on Homelessness (ICH). The ICH is a vital component of the San Bernardino County Homeless Partnership. The ICH serves as the policy making body of the Partnership and oversees the implementation of the 10-Year Strategy to End Homelessness in San Bernardino County. The ICH will focus on resource development to insure the funding of homeless projects and 10-Year Strategy recommendations. In addition, ICH serves as the HUD-designated primary decision-making group and oversight board of the City of San Bernardino & County (hereinafter referred to as the “geographic area”) Continuum of Care for the Homeless (CA-609) funding process, (hereinafter referred to as the “CoC”). There are currently former homeless individuals that participate in the policy making decisions of the CoC, regarding facilities or services that receive ESG funding from the City. 12.a Packet Pg. 220 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 58 OMB Control No: 2506-0117 (exp. 09/30/2021) The ICH is charged with directing, coordinating, and evaluating all of the activities related to implementation of the 10-Year Strategy to End Homelessness. The ICH members are directed to report progress on the implementation of the 10-Year Strategy to their colleagues and constituents following each meeting of the ICH. The ICH will promote collaborative partnerships among homeless providers and stakeholders throughout San Bernardino County in order to carry out implementation activities and will develop resources to insure the funding of homeless projects and 10-Year Strategy recommendations. As the oversight board of the CoC, the ICH duties are: 1. To ensure that the CoC is meeting all of the responsibilities assigned to it by the United States Department of Housing and Urban Development (HUD) regulations including: a. The operation and oversight of the local CoC; b. Designation and operation of a Homeless Management Information System (HMIS); i. Designate a single HMIS for the geographic area; ii. Designate an eligible applicant to manage the CoC’s HMIS, which will be known as the HMIS Lead; iii. Ensure consistent participation of recipients and sub-recipients of CoC and Emergency Solutions Grant (ESG) funding in the HMIS. iv. Ensure the HMIS is administered in compliance with all requirements prescribed by HUD. c. The development of a CoC plan that includes outreach, engagement, assessment, annual gap analysis of the homeless needs and services available, prevention strategies, shelter and housing supportive services, and HUD CoC annual and biennial requirements; 2. To represent the relevant organizations and projects serving homeless subpopulations; 3. To support homeless persons in their movement from homelessness to economic stability and affordable permanent housing within a supportive community; 4. To be inclusive of all the needs of all of geographic area’s homeless population, including the special service and housing needs of homeless sub-populations; 5. To facilitate responses to issues and concerns that affect the agencies funded by the CoC that is beyond those addressed in the annual CoC application process; 6. To consult with recipients and sub-recipients of CoC funding to establish performance targets appropriate for population and program type, monitor recipient and sub- recipient performance, evaluate outcomes, and take action against poor performers; and 7. To evaluate outcomes of projects funded under the County of San Bernardino CoC program including the ESG. 5. Describe performance standards for evaluating ESG. ESG Subrecipients must demonstrate the financial management and programmatic expertise to successfully develop, design, implement, and monitor the ESG-funded activities. ESG Subrecipients must participate in HMIS and be able to meet all federal, State of California, and City of San Bernardino requirements relative to the ESG program, specifically those concerning equal opportunity and fair housing, affirmative marketing, environmental review, displacement, relocation, acquisition, labor, lead-based paint, conflict of interest, debarment and suspension, and flood insurance. 12.a Packet Pg. 221 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 59 OMB Control No: 2506-0117 (exp. 09/30/2021) Under the City ESG agreement, ESG Subrecipient are required to conduct an initial evaluation to determine the eligibility of each individual or family’s eligibility for ESG assistance and the amount and types of assistance the individual or family needs to regain stability in permanent housing. All subrecipient providers should meet or exceed project quality goals established by HUD and CoC guidelines which include the following: At least 80 percent of project participants either remained in permanent housing or exited to permanent housing; At least 20 percent or more of project participants have employment income (or other sources such as SSI and/or SSDI, for those who are not employable); At least 54 percent of project participants increased their income from sources other than employment in a given operating year; At least 56 percent of project participants obtained mainstream benefits; and 100 percent of the project participants came from the street or other locations not meant for human habitation, emergency shelters, or safe havens. In addition, PSH providers must: Implement a housing first approach. Fill vacant beds with only chronically homeless persons. 12.a Packet Pg. 222 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Annual Action Plan 2021 60 OMB Control No: 2506-0117 (exp. 09/30/2021) APPENDIX A: Low-Moderate Income Map 12.a Packet Pg. 223 Attachment: 1. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment1 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All EXHIBIT B FISCAL YEAR 2021-2022 DRAFT ACTION PLAN ACTIVITY RECOMMENDATIONS Activity CDBG Requested ESG HOME 2021 Grant Fund Allocation 3,259,910$ 290,457$ 1,395,707$ Program Income and Reprogrammed Fund -$ 54,446$ 270,000$ Administration (maximum available)651,982$ 21,784$ 139,571$ Section 108 Repayment 772,323$ Micro-enterprise 35,000$ Fair Housing (IFHMB)1 73,000$ Small Business Micro Loan Program 230,979$ CDBG Program Total 1,763,284$ Public Facilities Projects Street Improvements2 1,496,626$ Public Facilities Projects Total 1,496,626$ -$ -$ Housing Programs/Projects Infill Housing 25,000$ Seccombe Park Housing Project 431,266$ Eastpointe Community - Homeownership 214,000$ Arrowhead Grove Phase 4 385,870$ Affordable Housing Project 470,000$ Housing Programs/Projects Total -$ -$ 1,526,136$ Homeless Assistance Lutheran Social Services (LSS)55,000$ Step Up on Second 75,000$ -$ Salvation Army -Hospitality House 75,000$ Mary's Mercy Village 63,673$ Homeless Assistance Program 54,446$ Homeless Assistance Total Total Requested 3,259,910$ 344,903$ 1,665,707$ 1Required for all jurisdictions receiving CDBG funds. 2Below are the streets to be improved: 532 Ramona Avenue - Ward 1 Grape Street (Walnut to Chestnut) - Ward 3 2129 W all Street - Ward 2 Davidson Avenue (Baseline to 14th) - Ward 6 938 N. G Street - Ward 2 2060 E. 18th Street - Ward 7 140 W. 13th Street - Ward 2 12.b Packet Pg. 224 Attachment: 2. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment2 (7259 : Draft Fiscal Year EXHIBIT B FISCAL YEAR 2021-2022 DRAFT ACTION PLAN ACTIVITY RECOMMENDATIONS 12.b Packet Pg. 225 Attachment: 2. CED.HUD Annual Action Plan.Draft FY2021-2022.Attachment2 (7259 : Draft Fiscal Year Overview of What is Community Development Block Grant (CDBG) Funding and Draft #1 FY 2021-2022 Action Plan Community & Economic Development Department City Council Meeting April 21, 2021 12.c Packet Pg. 226 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Introduction to Community Development Block Grant (CDBG) ØCDBG was enacted by President Gerald Ford and authorized by Ti tle 1 of the Housing and Community Development Act of 1974. ØIt is one of HUD’s longest running programs. 2 12.c Packet Pg. 227 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual CDBG Program Goals ØThe goals of the program is the development of viable communities which are achieved by assisting persons of moderate and low income attain: o Decent housing; o A s uitable living environment; and o Expanded economic opportunities. 3 12.c Packet Pg. 228 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual CDBG Program Goals ØTo achieve the goals of the program the regulations establish eligible activities and national objectives that each activity must meet in order to be funded. The City as a grantee is required to ensure that each activity meets the national objective and is an eligible CDBG activity. 4 12.c Packet Pg. 229 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Entitlement Program ØCDBG consists primarily of an entitlement program that provides formula grants to metropolitan cities and urban counties. o The entitlement program is the largest component of the program, receiving 70% of CDBG appropriations. o Under the entitlement program, a city in a metropolitan area with a population of 50,000 or more, or an urban county with a population of 200,000 or more is eligible to receive an annual allocation of CDBG funds directly from HUD. 5 12.c Packet Pg. 230 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Entitlement Program (continued) ØThe grant amounts to cities and counties are determined by the higher of two formulas: §Data based on overcrowded housing, population and poverty (benefits rapidly growing cities wi th high poverty and lack of affordable housing); or §Data based on age of housing, population growth lag and poverty (benefits older cities with large amounts of old and deteriorating housing). o The City of San Bernardino began receiving an annual allocation in 1994. o In FY 2020-21 the City received $3,405,297 in CDBG 6 12.c Packet Pg. 231 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Federal Grants Received by the City Besides the CDBG grant, the City also receives: •HOME Investment Partnerships Program (HOME) funds for the provision of affordable housing for low-income households; and •Emergency Solutions Grant (ESG) funds for homeless prevention, emergency shelter, and rapid re-housing of homeless persons. 7 12.c Packet Pg. 232 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Consolidated Plan/Annual Action Plan Ø In order to receive its annual allocation the City must complete a five year Consolidated Plan. The Con Plan reports on data specific to the community and is developed through community input and collaboration: surveys, public hearings, stakeholder interviews, housing summit and community meetings. The Con Plan outlines the community’s priorities and goals for a 5- year planning period. The City completed its most recent con plan in June of 2020. 8 12.c Packet Pg. 233 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Consolidated Plan/Annual Action Plan (continued) o Each year of the Con Plan, the City must develop an Annual Action Plan which specifies how the City will use that year ’s allocation of CDBG funds. The AP is basically the City’s application to HUD for use of CDBG funds. It is the AP that contains the various activities that the Ad Hoc Committee reviews. 9Jerry Lewis Family Swim Center 12.c Packet Pg. 234 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Activities ØWith the exception of three ongoing activities, the CDBG activities proposed are public facilities managed through Public Works and typically part of the Capital Improvement Plan for any given year. o The activities that are funded should correlate with a larger City Council goal. o For example, in the past 3 years we have funded replacement of playground equipment at parks in CDBG eligible census tracts. The overall goal was to provide safe equipment for the public but additionally to address the liability exposure of the City to injury claims from the public. 10 12.c Packet Pg. 235 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Activities (continued) ØThe three activities we consistently fund are: o The Section 108 loan repayment ($760,000) o Fair housing ($70,000); and o Microenterprise ($35,00-40,000) 11 12.c Packet Pg. 236 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual FY 2021-2022 Activity Recommendations 12 12.c Packet Pg. 237 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual This concludes my presentation. Thank you. 13 12.c Packet Pg. 238 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual Questions 14 12.c Packet Pg. 239 Attachment: 3. CED. PowerPoint Presentation.Attachment3 (7259 : Draft Fiscal Year 2021-2022 Annual 1 2021-2022 Annual Action Plan Online Survey Results April 3, 2021 City of San Bernardino 12.d Packet Pg. 240 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : 2 Overview For this meeting101 people took the survey •74 English responses •27 Spanish responses Of those who responded •75%indicated that their primary language was English •25%indicated that their primary language was Spanish 84% of respondents are residents from the City of San Bernardino. The remaining 16% are comprised of stakeholders who may operate within the City but are not residents. A little over half of the responses, 58%, are homeowners, while 41% are renters. 12.d Packet Pg. 241 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : 3 Where are respondents from? 20% 18% 18% 92410 14% 0% 4% 0% 3% 2% 1% 4% 12.d Packet Pg. 242 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : 4 How long have you lived in San Bernardino? 2% 13% 11% 58% 16%Less than one year 1 to 4 years 5 to 10 years Over 10 years I do not live in San Bernardino 12.d Packet Pg. 243 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : 5 Areas of Need 70%66%62% 54% 46% 33% 27% 4%72.46%72.46%68.12%53.62%44.93%36.23%30.43%2.90%63.64%45.45%40.91%54.55%50.00%22.73%18.18%9.09%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Economic development (jobs/businesses) Infrastructure (e.g., sidewalks and streets) Services for the homelessness Affordable housing Youth issues Senior issues Other HIV/AIDS housing Choose the areas of need that are most important to you English Spanish Total 12.d Packet Pg. 244 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : 6 Economic Development 80.88%63.24%48.53%38.24%27.94%11.76%81.82%36.36%63.64%31.82%59.09%9.09%81% 57% 52% 37%36% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Job creation/job- generating businesses Job readiness programs Grants/loans to small businesses College readiness programs Counseling/training for entrepreneurs Other Choose up to three (3) of the most critical Economic Development needs in your community English Spanish Total 12.d Packet Pg. 245 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : 7 Community Facilities 56.52%53.62%44.93%31.88%21.74%26.09%27.54%18.84%17.39%68.18%50.00%54.55%18.18%45.45%18.18%9.09%13.64%9.09%59% 53% 47% 29%27%24%23% 18%15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Community centers Park and recreational facilities Youth centers Libraries Healthcare facilities Childcare centers Other Fire stations and equipment Senior centers Choose up to three (3) of the most critical Community Facilities needs in your community English Spanish Total 12.d Packet Pg. 246 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : 8 Housing Needs 66.18%52.94%36.76%44.12%36.76%10.29%10.29%16.18%14.71%77.27%27.27%45.45%22.73%40.91%36.36%31.82%9.09%9.09%69% 47% 39%39%38% 17%16%14%13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% First-time homebuyer assistance Owner-occupied housing rehabilitation Renter-occupied housing rehabilitation Senior housing Construction of new affordable rental housing Accessibility improvements Housing for large families Housing for those with disabilities Other Choose up to three (3) of the most critical Housing Needs in your community English Spanish Total 12.d Packet Pg. 247 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : 9 Community Services 60.29%48.53%44.12%26.47%23.53%4.41%54.55%68.18%45.45%22.73%27.27%9.09%59% 53% 44% 26%24% 6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Programs for at-risk youth Children after school/summer camp program or services Youth activities Childcare services Senior activities Other Choose up to two (2) of the most critical Community Services needs in your community. English Spanish Total 12.d Packet Pg. 248 Attachment: 4. CED.HUD Annual Action Plan.Online Survey Results.Attachment4 (7259 : CITY OF SAN BERNARDINO 2021-2022 ANNUAL ACTION PLAN Please complete this survey and help us identify issues and priority needs for housing, parks and recreation, community facilities, social services, and fair housing. Thank you for participating! Haga clic en el enlace para español: Encuesta en español 1 12.e Packet Pg. 249 Attachment: 4a. CED.HUD Annual Action Plan.English Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) CITY OF SAN BERNARDINO 2021-2022 ANNUAL ACTION PLAN GENERAL QUESTIONS 1. What is your zip code? 2. What is the primary language you speak at home? English Spanish Other (please specify) 3. Are you a resident of San Bernardino? Yes No 4. Are you a [select all that apply] Homeowner Renter Other (please specify) 5. How long have you lived in San Bernardino? Less than one year 1 to 4 years 5 to 10 years Over 10 years I do not live in San Bernardino 2 12.e Packet Pg. 250 Attachment: 4a. CED.HUD Annual Action Plan.English Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) CITY OF SAN BERNARDINO 2021-2022 ANNUAL ACTION PLAN NEEDS ASSESSMENT Thinking about your neighborhood and the facilities and services currently available, please choose the areas of need for improvements below. 6. Choose the areas of need that are most important to you. Affordable housing Services for the homelessness Infrastructure (e.g., sidewalks and streets) Economic development (jobs/businesses) Youth issues Senior issues HIV/AIDS housing Other (please specify) 7. Choose up to three (3) of the most critical Community Facilities needs in your community. Community centers Childcare centers Park and recreational facilities Healthcare facilities Fire stations and equipment Libraries Senior centers Youth centers Other (please specify) 3 12.e Packet Pg. 251 Attachment: 4a. CED.HUD Annual Action Plan.English Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) 8. Choose up to three (3) of the most Critical Infrastructure needs in your community. Water/sewage improvements Street/alley improvements/sidewalks Street lighting Tree planting and urban greenery Accessibility improvements (ADA) to public roads and facilities Broadband internet access Electric vehicle charging station Graffiti removal Safe routes to school Other (please specify) 9. Choose up to three (3) of the most critical Housing Needs in your community. Accessibility improvements Owner-occupied housing rehabilitation Renter-occupied housing rehabilitation First-time homebuyer assistance Construction of new affordable rental housing Housing for those with disabilities Senior housing Housing for large families Other (please specify) 10. Choose up to two (2) of the most critical Homelessness Needs in your community. Permanent supportive housing with social services Transitional housing (short term up to 6 months) Emergency/overnight shelters One-time rent/utility payments Other (please specify) 11. Choose up to two (2) of the most critical Community Services needs in your community. Senior activities Youth activities Programs for at-risk youth Children after school/summer camp program or services Childcare services Other (please specify) 4 12.e Packet Pg. 252 Attachment: 4a. CED.HUD Annual Action Plan.English Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) 12. Choose up to three (3) of the most critical Economic Development needs in your community. Job creation/job-generating businesses Job readiness programs College readiness programs Grants/loans to small businesses Counseling/training for entrepreneurs Other (please specify) Thank you for your participation! 5 12.e Packet Pg. 253 Attachment: 4a. CED.HUD Annual Action Plan.English Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) CIUDAD DE SAN BERNARDINO 2021-2022 PLAN DE ACCION ANUAL Por favor tome la encuesta y ayúdenos a identificar problemas y necesidades de prioridad, particularmente en áreas de vivienda, parques y recreación, infraestructura, instalaciones públicas, servicios sociales y vivienda justa. ¡Gracias por participar! 1 12.f Packet Pg. 254 Attachment: 4b. CED.HUD Annual Action Plan.Spanish Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) CIUDAD DE SAN BERNARDINO 2021-2022 PLAN DE ACCION ANUAL PREGUNTAS GENERALES 1. ¿Cuál es su código postal? 2. ¿Cuál es el idioma principal que habla en casa? Inglés Español Otro (por favor especifique) 3. ¿Es usted residente de San Bernardino? Sí No 4. ¿Es usted: [Por favor seleccione todas las respuestas que apliquen] Dueño/a de Vivienda Inquilino/a Otro (por favor especifique) 5. ¿Cuánto tiempo ha vivido en la ciudad de San Bernardino? Menos de un año 1-4 años 5-10 años Más de 10 años No vivo en San Bernardino 2 12.f Packet Pg. 255 Attachment: 4b. CED.HUD Annual Action Plan.Spanish Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) CIUDAD DE SAN BERNARDINO 2021-2022 PLAN DE ACCION ANUAL EVALUACIONES DE NECESIDADES Tomando en cuenta su vecindario, los servicios, proyectos comunitarios y proyectos de vivienda disponibles actualmente, escoja las áreas que necesitan más atención dentro de la Ciudad. 6. Elija las áreas de necesidad que sean más importantes para usted. Viviendas Asequibles Servicios para personas sin hogar Infraestructura (por ejemplo, banquetas y calles) Desarrollo Económico: La Creación de Empleo Temas Juveniles Temas de personas mayores Viviendas para personas con VIH / SIDA Otra (por favor especifique) 7. Escoja hasta tres (3) de las necesidades más críticas de Lugares Públicos dentro de su comunidad. Centros comunitarios Centros de cuidado infantil Parques y lugares de recreación Centros de salud Estaciones de bomberos Bibliotecas Centros para personas mayores Centros juveniles Otra (por favor especifique) 3 12.f Packet Pg. 256 Attachment: 4b. CED.HUD Annual Action Plan.Spanish Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) 8. Escoja hasta tres (3) de las necesidades más críticas de Infraestructura dentro de su comunidad. Rehabilitación de alcantarillado / drenaje Mejoramiento de callejones / calles / banquetas Más luz en las calles Más árboles y vegetación urbana Mejoras de accesibilidad (ADA) a carreteras y lugares públicos Acceso al internet de alta velocidad Estación para cargar vehículos eléctricos Eliminación de grafiti Rutas seguras a la escuela Otra (por favor especifique) 9. Escoja hasta tres (3) de las necesidades más críticas de Vivienda dentro de su comunidad. Mejorar la accesibilidad Rehabilitación de viviendas ocupadas por los dueños Rehabilitación de viviendas ocupadas por inquilinos Asistencia para comprar vivienda por primera vez Construcción de nuevas viviendas de renta asequible Viviendas para personas con discapacidad Viviendas para personas mayores Viviendas para familias grandes Otra (por favor especifique) 10. Escoja hasta dos (2) de las necesidades más críticas de Personas sin Hogar dentro de su comunidad. Viviendas permanentes con servicios sociales Viviendas de transición (corto plazo hasta 6 meses) Refugios de emergencia / una noche Asistencia con el pago de utilidades y/o de renta Otra (por favor especifique) 4 12.f Packet Pg. 257 Attachment: 4b. CED.HUD Annual Action Plan.Spanish Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) 11. Escoja hasta dos (2) de las necesidades más críticas de Servicios Comunitarios dentro de su comunidad. Actividades para personas mayores Actividades para jóvenes Programas para jóvenes en riesgo Programas o servicios para niños después de la escuela / de verano Servicios de cuidado infantil Otra (por favor especifique) 12. 1. Escoja hasta tres (3) de las necesidades más críticas de Desarrollo Económico dentro de su comunidad. Expansión de negocios y la creación de trabajos Programas de entrenamiento laboral Programas que preparan estudiantes para ir al colegio Préstamos para empresas pequeñas Consejos/entrenamiento para emprendedores Otra (por favor especifique) ¡Gracias por su participación! 5 12.f Packet Pg. 258 Attachment: 4b. CED.HUD Annual Action Plan.Spanish Survey.Attachment4 (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) CALIFORNIA NEWSPAPER SERVICE BUREAU SBS# D A I L Y J O U R N A L C O R P O R A T I O N To the right is a copy of the notice you sent to us for publication in the SAN BERNARDINO COUNTY SUN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com Maria A. Gallegos SAN BERNARDINO CITY/COMM DEV 290 NORTH D ST SAN BERNARDINO, CA 92401 HRGSB NOTICE OF HEARING-SB NOTICE OF PUBLIC HEARING #1_03-15-21- 03/21/2021 Publication Total $259.60 $259.60 Notice Type: Ad Description COPY OF NOTICE 3452741 !A000005670659! The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. NOTICE OF PUBLIC HEARING #1, APRIL 21, 2021 FOR THE DRAFT FY 2021-2022 ANNUAL ACTION PLAN The City of San Bernardino is an entitlement jurisdiction that receives Community Development Block Grant (CDBG), HOME Investment Partnerships, and Emergency Solutions Grant (ESG) funds directly from the U.S. Department of Housing and Urban Development (HUD). The City anticipates receiving approximately $3,259,910 in CDBG, $1,395,707 in HOME and $290,457 in ESG funds. NOTICE IS HEREBY GIVEN that the City of San Bernardino has prepared a draft FISCAL YEAR 2021-2022 Annual Action Plan as required by the U.S. Department of Housing and Urban Development (HUD). Copies of the first draft FISCAL YEAR 2021-2022 Annual Action Plan will be available to the public for public review, beginning Sunday March 21, 2021 and up to and including Monday April 19, 2021 on the City's website at www.ci.san- bernardino.ca.us and at the following location: - City of San Bernardino - 290 N. ‘‘D’’ Street, 1 st Floor San Bernardino, CA 92401 from 7:30AM to 4:30PM In an effort to protect public health and prevent the spread of COVID-19 and to enable appropriate social distancing, the public hearing will be a virtual hearing in lieu of an in- person public hearing. The City of San Bernardino encourages the public to view the City Council meeting on television or online. The meeting will be broadcast live on Time Warner Channel 3 or Charter Spectrum Channel 3 and live streamed online April 21, 2021, at 7:00 p.m. SPECIAL ACCOMODATIONS: For persons needing special accommodations to access the virtual meetings, please contact the City Clerk at 909-384-5002. IF YOU HAVE ANY QUESTIONS PLEASE CALL THE CITY CLERK’S OFFICE AT 909-384-5002. Questions regarding the draft FY 2021-2022 ANNUAL ACTION PLAN may be addressed to Gretel Noble, Housing Manager, with the City of 12.g Packet Pg. 259 Attachment: Attachment 5 - Publication Notice (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) San Bernardino Community and Economic Development Department located at 201 N. ‘‘E’’ Street, 3 rd Floor, San Bernardino, CA 92401 or by email at Noble_gr@sbcity.org You may also call (909) 384-7270 with any questions. The City is also conducting an online survey for the 2021-2022 Annual Action Plan. Please take a moment to let your voice be heard. Survey in English: https://www.surveymonkey.com/r/2 021-2022ANNUALACTIONPLAN Survey in Spanish: https://es.surveymonkey.com/r/2021- 2022PLANDEACCIONANUAL 3/21/21 SBS-3452741# 12.g Packet Pg. 260 Attachment: Attachment 5 - Publication Notice (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) 12.g Packet Pg. 261 Attachment: Attachment 5 - Publication Notice (7259 : Draft Fiscal Year 2021-2022 Annual Action Plan (All Wards)) Page 1 Public Hearing City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Substantial Amendment to FY 2019/20 Neighborhood Stabilization Program (Wards 1, 2, 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a public hearing and approve a Substantial Amendment to the Neighborhood Stabilization Program (NSP) Action Plans for Fiscal Year 2019/20; and 2. Authorize City Manager or designee to make administrative changes to the NSP Action Plans to meet HUD budgeting and reporting requirements. Background The United States Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP) provides assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008. In 2009, the City of San Bernardino received $8,408,558 in NSP 1 funds. In 2011, the City received $3,277,401 in NSP 3 funds. In 2012, when redevelopment agencies in California were dissolved and the City filed for Chapter 12 bankruptcy, the use of NSP 1 and NSP 3 funds were suspended. In 2018, the Mayor and City Manager met with HUD’s Deputy Assistant Secretary for Grant Programs and committed to invest the remaining NSP funds in eligible activities. NSP funds may be used for activities, which include, but are not limited to: Eligible Use A: Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties; Eligible Use B: Purchase and rehabilitate homes and residential properties abandoned or foreclosed; 13 Packet Pg. 262 7257 Page 2 Eligible Use C: Establish land banks for foreclosed homes; Eligible Use D: Demolish blighted structures; and Eligible Use E: Redevelop demolished or vacant properties. On May 2, 2016, the Mayor and City Council authored a Substantial Amendment to the Neighborhood Stabilization Program (NSP) Action Plan. The amendment was for the purpose of allocating funds to eligible uses and modifying the program budget. The current NSP Action Plans include Eligible Uses A-D as proposed uses of the NSP funds. The purpose of this Substantial Amendment is to add Eligible Use E to the City NSP Action Plans and to add the following projects: Arrowhead Grove multi-family housing project for $1,500,000 Eastpointe single-family residential housing project for $300,000 Seccombe Park multi-family residential housing project for an amount not to exceed $550,000 of NSP 1 funds and an amount not to exceed $790,000 in NSP 3 funds These projects will exhaust NSP 1 and NSP 3 project funding. Discussion The addition of Eligible Use E allows for the construction of new housing units designated as affordable and market rate units in areas identified as blighted or having a considerable number of abandoned houses. The Arrowhead Grove housing development includes a total of 184 units consisting of 147 affordable units, 35 market rate units and 2 manager units. In 2019, the Mayor and City Council approved Resolution No. 2019-177, committing $1,500,000 in NSP 1 funds to Arrowhead Grove. The funding of Arrowhead Grove will allow the City to meet its 25 percent low income set-aside requirement for NSP funds. The $1,500,000 is for construction costs. The Eastpointe Village Intentional Community project is a single -family housing project that includes the development of an estimated 30-36 single-family residences covering 18 lots. The development is called an intentional community because the City would launch a community engagement process early on in order to identify owners before the houses are built. The owners then would work with the developer to incorporate their design needs and also participate in community improvement projects to create a sense of community among the future owners. The target population for the project is 80%- 120% of the area median income (AMI). The proposed project will utilize $300,000 of NSP 1 funds for pre-development costs. Lakeshore at Seccombe is a proposed multi-family housing development on four acres, of the 12.5 acres at Seccombe Lake Park designated for housing (northwest corner of 13 Packet Pg. 263 7257 Page 3 7th Street and Sierra Way, bounded by Belle Street on the east and extending to the edge of the lake on the west). T he project could consist of up to 70 apartment homes with a mix of 2-4 bedroom units. The proposed project will complement the efforts by Parks, Recreation, and Community Services to redevelop Seccombe Lake Park. The income mix would be from 50% up to 120% of AMI, with approximately 19 units designated at 50% of AMI. The proposed project will utilize up to $550,000 of NSP 1 funds for pre -development costs and up to $790,000 in NSP 3 funds for land acquisition and/or construction costs. 2020-2025 Key Strategic Targets and Goals Amending the Neighborhood Stabilization Program (NSP) Action Plans aligns with Key Goal No. 3 Improved Quality of Life through the addition of the Arrowhead Grove, Eastpointe Village and Lakeshore at Seccombe projects to the NSP A ction Plans. These projects are designed to enhance existing low to moderate income neighborhoods in the City. Fiscal Impact There is no fiscal impact to the City’s General Fund since all of the funding comes from Neighborhood Stabilization Program funds. There is sufficient funding in the existing NSP 1 and NSP 3 program funds to cover the administrative costs of the plan amendments. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Conduct a public hearing and approve a Substantial Amendment to the Neighborhood Stabilization Program (NSP) Action Plans for Fiscal Year 2019/20; and 2. Authorize City Manager or designee to make administrative changes to the NSP Action Plans to meet HUD budgeting and reporting requirements. Attachments Attachment 1 Draft 2019-2020 Neighborhood Stabilization Program (NSP1) Action Plan Attachment 2 Draft 2019-2020 Neighborhood Stabilization Program (NSP3) Action Plan Attachment 3 Publication Notice Wards: 1, 2, 7 Synopsis of Previous Council Action: August 7, 2019 The Mayor and City Council adopted Resolution No. 2017-177, committing NSP 1 funds to the Arrowhead Grove project. 13 Packet Pg. 264 7257 Page 4 May 6, 2016 Mayor and City Council adopted Resolution No. 2016-92 approving a substantial amendment to the NSP Action Plan. 13 Packet Pg. 265 13.a Packet Pg. 266 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 267 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 268 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 269 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 270 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 271 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 272 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 273 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 274 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 275 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 276 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 277 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 278 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 279 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 280 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 281 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 282 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 283 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 284 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 285 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 286 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 287 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 288 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 289 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 290 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 291 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 292 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.a Packet Pg. 293 Attachment: Attachment 1 Draft 2019-2020 NSP 1 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 294 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 295 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 296 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 297 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 298 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 299 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 300 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 301 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 302 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 303 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization 13.b Packet Pg. 304 Attachment: Attachment 2 Draft 2019-2020 NSP 3 Action Plan (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization CALIFORNIA NEWSPAPER SERVICE BUREAU SBS# D A I L Y J O U R N A L C O R P O R A T I O N To the right is a copy of the notice you sent to us for publication in the SAN BERNARDINO COUNTY SUN. Please read this notice carefully and call us with any corrections. The Proof of Publication will be filed with the County Clerk, if required, and mailed to you after the last date below. Publication date(s) for this notice is (are): Mailing Address : 915 E FIRST ST, LOS ANGELES, CA 90012 Telephone (800) 788-7840 / Fax (800) 464-2839 Visit us @ www.LegalAdstore.com Maria A. Gallegos SAN BERNARDINO CITY/COMM DEV 290 NORTH D ST SAN BERNARDINO, CA 92401 HRG NOTICE OF HEARING Public Notice AMENDED FY 2019-20 NSP AP English - 15 DAY NOTICE DK 03-17-2021 04/05/2021 Publication Total $457.60 $457.60 Notice Type: Ad Description COPY OF NOTICE 3457290 !A000005682436! The charge(s) for this order is as follows. An invoice will be sent after the last date of publication. If you prepaid this order in full, you will not receive an invoice. NOTICE OF PUBLIC HEARING AND NOTI CE OF 15-DAY COMME NT PERIOD FOR THE DRA FT SUBSTA NTIAL AMENDMENT TO FISCAL YEAR 201 9-2020 N EIGHBO RHOOD STABI LIZATION P RO GRAM ACTION P LANS The City of San Bernardino is an entitlement jurisdiction that received Neighborhood Stabilization Program (NSP)funds through the Housing and Economic Recovery Act of 2008 directly from the U.S. Department of Housing and Urban Development (HUD).The City received approximately $11,685,000 from two rounds of funding. As a condition to receiving these funds,the City must provide notification of how the City intends to invest these federal funds to stabilize the City's neighborhoods and stem the decline of property values.The amendments are for the inclusion of Eligible Use E for both Neighborhood Stabilization Program 1(NSP1)and Neighborhood Stabilization Program 3 (NSP 3)which allows funding for projects involving new construction. The amendment of the NSP1 plan adds the Eastpointe Village Intentional Community project for $300,000 in predevelopment costs. The end use for this project is the development of approximately 30 single family owner occupied units on vacant lots located in the general area of Arden/Guthrie.A second proposed project for the NSP1 plan is up to $550,000 in predevelopment costs for the development of approximately 75 multi-family units on 4 acres of park land currently part of Seccombe Lake Park. NOTICE IS HEREBY GIVENthat the City of San Bernardino has prepared a draft Substantial Amendment to the FISCAL YEAR (FY)2019-2020 NSP Action Plan as required by the U.S.Department of Housing and Urban Development. Copies of the draft 2019-2020 NSP Action Plan will be available to the public for review and comment at 290 North D St.1st Floor beginning Monday April 5,2021 and up to and including Tuesday April 21,2021 on the City’s website at www.ci.san- bernardino.ca.us and at the following location: 13.c Packet Pg. 305 Attachment: Attachment 3 - Publication Notice (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization Program (Wards 1, 2, -City of San Bernardino Community and Economic Development Department 201 N.‘‘E’’Street,3rd Floor,San Bernardino,CA 92401 In addition,the City of San Bernardino will hold a public hearing on the following to receive public comments on the proposed Substantial Amendment to FY 2019- 2020 NSP Action Plan.In an effort to protect public health and prevent the spread of COVID-19 and to enable appropriate social distancing,the public hearing will be a virtual hearing in lieu of an in- person public hearing.The City of San Bernardino encourages the public to view the City Council meeting on television or online.The meeting will be broadcast live on Time Warner Channel 3 or Charter Spectrum Channel 3 and live streamed online April 21,2021 at 7:00 P.M. All comments relative to the AMENDED FY 2019-2020 NSP Action Plans should be submitted to the City of San Bernardino, Community and Economic Development Department no later than 4:00 P.M.April 21,2021 to Kamrani_De@sbcity.org. SPECIAL ACCOMO DA TIONS For persons needing special accommodations to access the virtual meetings,please contact the City Clerk at 909-384-5002 PUBLIC COM MENT OP TIONS: COMMENTS AND CONTACT INFORMATION CAN BE EMAILED TO publiccomments@SBCity.Org by 4:00 P.M.April 21,2021 to be included in the WRITTEN RECORD;OR (2)CALL (909)384-5208 (NEW NUMBER),LEAVE A RECORDED MESSAGE,BY 4:00 P.M.April 21, 2021 (NOT TO EXCEED THREE MINUTES),WHICH WILL BE PLAYED DURING THE PUBLIC COMMENT SECTION OF THE AGENDA. ***ITEMS THAT ARE SUBMITTED TO BE PART OF THE MEETING RECORD CAN BE FOUND USING THE LINK BELOW: htt p://edocs.sbcit y.org /Web Link/B rowse.aspx ?id=407 7961&dbid=0&r epo=SB IF YOU HAVE ANY QUESTIONS PLEASE CALL THE CITY CLERK’S OFFICE AT 909-384-5002. Questions regarding the draft Substantial Amendment to Fiscal Year 2019-2020 Neighborhood Stabilization Program Action Plans may be addressed to Debbie Kamrani,Housing Consultant,with the City of San Bernardino Community and Economic Development Department located at 201 N.‘‘E’’Street,3rd Floor,San Bernardino,CA 92401 or by email at Kamrani_De@sbcity.org. Genoveva Rocha City Clerk 4/5/21 SBS-3457290# 13.c Packet Pg. 306 Attachment: Attachment 3 - Publication Notice (7257 : Substantial Amendment to FY 2019/20 Neighborhood Stabilization Program (Wards 1, 2, Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Genoveva Rocha, City Clerk Subject: Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes of the Mayor and City Council meetings for the following dates: March 17, 2021 Regular Meeting Minutes March 31, 2021 Special Meeting Minutes April 4, 2021, Regular Meeting Minutes April 8, 2021, Special Meeting Minutes Attachments: Attachment 1- March 17, 2021 Regular Meeting Minutes Attachment 2- March 31, 2021 Special Meeting Minutes Attachment 3- April 4, 2021 Regular Meeting Minutes Attachment 4- April 8, 2021, Special Meeting Minutes 14 Packet Pg. 307 City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander DRAFT MINUTES FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, MARCH 17, 2021 5:30 PM CALL TO ORDER Attendee Name Title Status Arrived Theodore Sanchez Council Member, Ward 1 Present Sandra Ibarra Mayor Pro-Tem, Ward 2 Present Juan Figueroa Council Member, Ward 3 Present Fred Shorett Council Member, Ward 4 Present Ben Reynoso Council Member, Ward 5 Present Kimberly Calvin Council Member, Ward 6 Present Damon L. Alexander Council Member, Ward 7 Present John Valdivia Mayor Present Genoveva Rocha City Clerk Present Sonia Carvalho City Attorney Present Robert D. Field City Manager Present 14.a Packet Pg. 308 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 2 Printed 3/18/2021 5:30 P.M. The closed session meeting was called to order at 5:3 2 p.m. CLOSED SESSION PUBLIC COMMENT There were no public comments submitted for the Closed Session Meetin g of the Mayor and City Council. CLOSED SESSION (A) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1): a. M.H., a minor by and through his guardian ad litem, Nakitta Young v. City of San Bernardino, et al., United States District Court Case No.5:20 -cv-00242 JGB (KKx) (B) CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Initiation of litigation (Pursuant to Government Code Section 54956.9(d)(4)): Two cases 7:00 P.M. Mayor Valdivia called the regular meeting to order at 7:00 p.m. INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia asked Council Member Shorett to lead the Pledge of Allegiance to the Flag. CLOSED SESSION REPORT City Attorney Carvalho reported that there was no reportable action. PRESENTATION FROM CONGRESSMAN AGUILAR 1. Presentation from Congressman Aguilar - City-Specific Funding Details from the American Rescue Plan Congressman Aguilar provided a report on the American Rescue Plan. The Mayor and City Council commented and asked questions. CITY MANAGER UPDATE City Manager Field spoke on Black History Month events in the City and commented on various improvements throughout the City. APPOINTMENTS Mayor Valdivia stated that a request was received from a Council Member to pull Item No. 7 for discussion. 14.a Packet Pg. 309 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 3/18/2021 2. General Plan Advisory Committee Appointment (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Reuben J. Arceo to the General Plan Advisory Committee representing Ward 1 with the term ending December 2022. Council Staff has verified that appointee is a registered voter within the City. 3. General Plan Advisory Committee Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Daniel E. Peeden to the General Plan Advisory Committee representing Ward 6 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 4. Arts and Historical Preservation Commission Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Lucy J. Sunga to the Arts and Historical Preservation Commission representing Ward 6 with the term ending December 2024. Ms. Sunga will replace Rick Moss with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 5. Elected Official Compensation Advisory Board (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Michael J. Guillory to the Elected Official Compensation Advisory Board representing Ward 6 with the term ending December 2024. Mr. Guillory will replace Charlene M. Dixon with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 6. Planning Commission Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Dolores Armstead to the Planning Commission representing Ward 6. Ms. Armstead will replace Anthony Jones with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER REYNOSO, to approve the appointments listed in Item Nos. 2 through 6. 14.a Packet Pg. 310 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 3/18/2021 RESULT: APPROVED THE APPOINTMENTS OF MR. REUBEN J. ARCEO, MR. DANIEL E. PEEDEN, MR. DANIEL E. PEEDEN, MR. MICHAEL J. GUILLORY, AND MS. DOLORES ARMSTEAD, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: Ibarra 7. Public Safety and Human Relations Commission Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Treasure Ortiz to the Public Safety and Human Relations Commission representing Ward 6. Ms. Ortiz will replace Walter A. Jarman with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Council Member Sanchez stated that City Council should try to ensure that appointments do not give political advantage and that the candidate for this appointment has filed paperwork to run for political office in the City. Council Member Sanchez advised that he will be voting no on this item. Mayor Pro Tem Ibarra commented that, even though it is not stated in the Municipal Code, City Council should appoint from their ward because the appointees would understand what the needs are within their ward. Council Member Shorett stated that he is in agreeance with the comments made. Council Member Calvin commented that she feels the City has done a poor job of making commissioners feel valued, and stated that she asked several members of the sixth ward to serve on a Commission and they advised her that they felt the City does not take their advisement into consideration. Council Member Calvin advised she chose appointees based off of community commitment. Mayor Valdivia asked the City Attorney to clarify that the Mayor has the ability to cast a vote. City Attorney Carvalho advised that per section 2.17.040 of the Municipal Code, it states that each member of such board, commission or citizen advisory committee, after having been nominated, shall be appointed by at least five affirmative votes of the Mayor and City Council. Mayor Valdivia stated that he would be exercising his right to vote on this item. 14.a Packet Pg. 311 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 3/18/2021 MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER CALVIN, to approve the appointment of Ms. Treasure Ortiz to the Public Safety and Human Relations Commission. Motion failed 2-6 (Mayor Valdivia, Mayor Pro Tem Ibarra, Council Members Sanchez, Figueroa, Shorett, and Alexander opposed) RESULT: MOTION TO APPROVE THE APPOINTMENT OF MS. TREASURE ORTIZ FAIL PRESENTATIONS 8. Proclamation for Red Cross Month Mayor Valdivia read the proclamation, proclaiming March as Red Cross Month. PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA Ken Sawa, Dr. Anne Viricel, David Freedman, Victoria Seitz, David Hahn, Victor Velasco, Yvette Baysinger, Maureen Daniels, Dan Murphy, Alex Zamora, Rich Ocereo, Mike Burrows, Felicia, San Bernardino, spoke in support of the San Manuel Landing Project. Nick, San Bernardino, commented on the Carousel Mall project and thanked City Council moving forward with ICO Real Estate Group. Laurie, Lessy, Ellen Reese, Yvette Ramirez, Cheng, Anne, Alicia Aguayo, Jorge Baldiveria, Arturo, Christian Flores, Douglas Howie, Amy Vasquez, Andrea Vidaurre, Savina Walburg, Bernard, Yassie Calasaras, Norman, Stacey Lopez, San Bernardino, spoke against the San Manuel Landing Project. Mike Mitchell, Tanya Johnson, San Bernardino, spoke on the lack of ward representation on Board, Committees, and Commissions. Manny, San Bernardino, spoke on City Council Members with an agenda and the lack of support provided to the police in the City. Sanchez, San Bernardino, spoke on the lack of support provided to the police in the City. Robert Porter, San Bernardino, commented on the Carousel Mall project and spoke in support of the San Manuel Landing Project. Aaron, San Bernardino, commented on tents and motorhomes parked on vacant land. Paul Sanborn, Harry Hatch, San Bernardino, commented on the explosion in Ontario and spoke on fireworks in the City. 14.a Packet Pg. 312 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 6 Printed 3/18/2021 Anonymous, San Bernardino, commented on the nomination of Treasure Ortiz and asked the Mayor to resign. Hardy Brown, San Bernardino, spoke on a prior lawsuit in Ward 6, Community Development Grant Funds, and the lack of diversity amongst City staff. Cheryl Brown, San Bernardino, spoke on the public comment process and City employees residing in other cities. Randolph Riley, San Bernardino, commented on debris at a bakery on Milliken Center Drive. Paige Miller, San Bernardino, commented on banning all fireworks and homelessness issues in the City. Treasure Ortiz, San Bernardino, spoke against the San Manuel Landing Project and commented on the Tow Contract Agreements. Leticia Garcia, San Bernardino, spoke on the City Charter allowing voting residents of the City to serve on all commissions and spoke against the San Manuel Landing Project. Maribel Nunez, San Bernardino, spoke in support of the appointment of Daniel Peeden and asked about upcoming workshops for the General Plan. Anonymous, San Bernardino, commented on the lack of road maintenance, graffiti in the City, and the increased in crime rate. STAFF REPORTS 9. Ad Hoc and Standing City Council Sub-Committee Review (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive a report and provide staff direction regarding the establishment, purpose and scope of City Council sub-committees. Assistant City Manager Kramer provided an overview of th e staff report. Council Member Reynoso stated that it is his understanding that the Community Development Block Grant Committee currently only has two Council Members and asked the Mayor to appoint another Council Member so recommendations can be made. Mayor Pro Tem Ibarra asked why staff is recommending to disband certain committees. Ms. Kramer stated that it is up to the City Council to decide which subcommittees they would like and the item is presented to obtain direction from City Council and formally bring back resolutions to ensure clarity. 14.a Packet Pg. 313 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 7 Printed 3/18/2021 Council Member Sanchez stated he does not think that staff is recommending to remove any programs and would like to ensure the long term success of the Military Banner Program. Council Member Sanchez commented that all of City Council should have an equal say in how Community Development Block Grant money is spent and feels that the Community Development Block Grant Ad Hoc Committee gives advantage to three individuals would like it to be the entire Council. Mayor Pro Tem Ibarra stated that before it became the Community Development Block Grant Ad Hoc Committee, it was a community advisory committee that oversaw various funds and was composed of commissioners. Mayor Valdivia advised that the previous committee was advisory and they provided recommendations to City Council. Council Member Shorett stated that he recalls the advisory committee and that it became Community Development Block Grant Subcommittee. Council Member Shorett added that he agrees with the comments made by Council Member Sanchez. Mayor Valdivia stated that committees are designed to study specific issues for a specific amount of time, spoke on funds for the police department, and fundraising for military banners is a leadership opportunity for City Council. Reynoso stated that money for recruitment for police has nothing to do with honor and respect for armed services. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, directed staff to come back with a report to dismantle the Community Development Block Grant Committee, Legislative Review Committee and Hometown Military Banner Committee and find ways that the responsibilities are allocated to staff with either zero cost or a program that incorporates a funding solution. RESULT: DIRECTED STAFF TO COME BACK WITH A REPORT TO DISMANTLE THE COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE, LEGISLATIVE REVIEW COMMITTEE AND HOMETOWN MILITARY BANNER COMMITTEE AND FIND W AYS THAT THE RESPONSIBILITIES ARE ALLOCATED TO STAFF WITH EITHER ZERO COST OR A PROGRAM THAT INCORPORATES A FUNDING SOLUTION, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 10. Successor Agency Action: 2010A and 2010B Series Tax Allocation Bond Refunding (All Wards) Recommendation Adopt Resolution No. 2021-56 of the Mayor and City Council of the City of San 14.a Packet Pg. 314 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 8 Printed 3/18/2021 Bernardino, California, acting in the capacity as the Successor Agency to the Redevelopment Agency of the City of San Bernardino , authorizing the issuance of its refunding bonds; approving a form of indenture, a form of bond purchase agreement, a form of irrevocable refunding instructions, and a form of continuing disclosure agreement; making certain determinations relating thereto; and authorizing certain other action in connection therewith. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve staff’s recommendation. RESULT: ADOPTED RESOLUTION NO. 2021-56 AUTHORIZING THE ISSUANCE OF ITS REFUNDING BONDS; APPROVING A FORM OF INDENTURE, A FORM OF BOND PURCHASE AGREEMENT, A FORM OF IRREVOCABLE REFUNDING INSTRUCTIONS, AND A FORM OF CONTINUING DISCLOSURE AGREEMENT; MAKING CERTAIN DETERMINATIONS RELATING THERETO; AND AUTHORIZING CERTAIN OTHER ACTION IN CONNECTION THEREWITH, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None City Manager Field informed the Mayor and City Council that Item No. 22 was intended to be placed under Staff Reports. Mayor Valdivia moved Item No. 22 out of agenda order. 22. Resolution Authorizing the City Manager to Execute Contracts for Tow Rotation Services (All Wards) Recommendation Adopt Resolution No. 2021-63 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute tow service agreements with various tow service carriers and reaffirming tow carrier requirements. Captain Pellis provided a presentation to the Mayor and City Council. Council Member Sanchez clarified that staff is offering an alternate recommendation, which would be to place category 3 and 4 and category 2 as they work towards compliance. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER ALEXANDER, to approve the alternative staff recommendation Council Member Shorett seconded with an amendment that all tow companies that are given a contract have until June 30, 2021 to meet all the requirements set by the City and staff must complete a physical inspection that is signed by both parties to 14.a Packet Pg. 315 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 9 Printed 3/18/2021 ensure compliance. Captain Pellis advised it would take staff time to complete inspections; however it is their intention to perform thorough inspections for all tow carriers and the service agreements provide an option for the City to remove a tow carrier for failure to meet those requirements. Council Member Alexander asked if this would include California Highway Patrol and heavy lifting vehicle inspections. Captain Pellis advised that tow vehicle inspection are performed by the California Highway Patrol and the police department would utilize the Highway Patrol’s process. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER ALEXANDER, to approve the alternative staff recommendation with an amendment. RESULT: ALLOW FOR TOW CARRIERS IN CATEGORIES 3 AND 4 TO OPERATE IN CATEGORY 2 WHILE THEY WORK TOWARDS COMPLIANCE; ENTER INTO CONTRACTS PERMITTING THE TOW CARRIERS TO BE ON THE TOW ROTATION BETWEEN NOW AND JULY 1, 2021 WHILE THEY MAKE IMPROVEMENTS TO MEET CITY REQUIREMENTS; AND DIRECT CITY STAFF TO CONDUCT PHYSICAL INSPECTIONS ENSURING REQUIREMENTS ARE MET BY THE TOW CARRIERS THAT MUST BE SIGNED BY BOTH PARTIES, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Damon L. Alexander, Ward 7 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None PUBLIC HEARINGS 11. Final Environmental Impact Report, General Plan Amendment 20-02, Development Code Amendment (Zoning Map Amendment) 20-03, Specific Plan Amendment 20-01 and Development Permit Type-D 20-02 – the Landing by San Manuel (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1) Adopt Resolution No. 2021-57 of the Mayor and City Council of the City of San Bernardino, California, certifying the Final Environmental Impact Report (State Clearinghouse No. 2020100067), adopting the F acts, Findings, and Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Program, and approving General Plan Amendment 20 -02 changing the General Plan Land 14.a Packet Pg. 316 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 10 Printed 3/18/2021 Use Designation from Public/Quasi Public to Specific Plan of a parcel (AP N: 0136-371-33) containing approximately 12.89 acres (Attachment 1); 2) Introduce, read by title only, and waive further reading of Ordinance No. MC - 1557 of the Mayor and City Council of the City of San Bernardino, California, approving Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01 changing the Zoning District Classification from Public Facilities (PF) to Specific Plan - Alliance California (SP-AC) Third Street Land Use District of a parcel (APN: 0136-371-33) containing approximately 12.89 acres, consistent with a certified Final Environmental Impact Report (State Clearinghouse No. 2020100067) (Attachment 3); 3) Adopt Resolution No. 2021-58 of the Mayor and City Council of the City of San Bernardino, California, approving Development Permit Type-D20-02 allowing the consolidation of four (4) parcels containing a total of approximately 52.97 acres and the development of an industrial warehouse containing approximately 1,153,644 square feet on a project site located on the south side of East 3rd Street, between North Victoria Avenue and North Central Avenue (APN: 0136 - 371-18, 33, 36 and 37), consistent with a certified Final Environmental Impact Report (State Clearinghouse No. 2020100067) (Attachment 5); and 4) Schedule the adoption of the above Ordinance for the regularly scheduled meeting of the Mayor and City Council on April 7, 2021. Mayor Valdivia opened the public hearing item at 9:57 p.m. Associate Planner Mora-Rodriguez provided a presentation of the staff report. At this time, City Clerk Rocha played the Public Comments for the Mayor and City Council. Lowell King, Regional Operations Officer for the Inland Empire Goodwill, spoke in support of the San Manuel Landing Project. Tomas Morales, President of Cal State University of San Bernardino, spoke in support of the San Manuel Landing Project. Jayson Baiz, Labors International Union of North America, spoke in support of the San Manuel Landing Project. Thomas Ruiz, Labors Local 793, spoke in support of the San Manuel Landing Project. Jose Garcia, Laborers Pacific Southwest Regional Organizing Coalition, spoke in support of the San Manuel Landing Project. Dan Flores, Executive Director of Mary’s Mercy Center, spoke in support of the San Manuel Landing Project. Diana Rodriguez, President of San Bernardino Valley College, spoke in support of the San Manuel Landing Project. 14.a Packet Pg. 317 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 11 Printed 3/18/2021 Peter Mateo, Director of Planning and Development of San Manuel, provided a presentation of the project and thanked the Mayor, City Council, and City staff. MOTION BY COUNCIL MEMBER FIGUEROA, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff recommendation. Council Member Figueroa asked if the site located within the property of the airport and has direct connection to the airport. Council Member Figueroa also extended an apology to the San Manuel Tribe on a comment that was previously made that San Manual is an outsider. Planning Division Manager Mujica advised that it is located within the property of the airport and has direct access. Mayor Valdivia stated that this is an employment opportunity for the community. Council Member Reynoso thanked the San Manuel Tribe for the interaction with the community and their engagement; however he will not be able to support the project due to air pollution and health risks impacts. Council Member Shorett commented that he is excited about the project and the San Manuel Tribe has been an excellent partner to the community. Council Member Sanchez clarified that Mr. Mateo is the Project Manager and stated he would like to impose the requirements that all off road diesel powered equipment used during the construction be final tier four engines, and all off-road equipment with a power rating below 19 kilowatts used during construction be battery powered and asked if this is possible. Mr. Mateo stated that they are committed to using final tier four engines and the standard technology used is battery powered and that he will accept the requirements a Conditions of Approval. Mr. Mujica stated that staff can modify the mitigation monitoring program to include the requirements. Council Member Alexander asked about large trucks on roads around the facility and asked if the roads will be repaved Mr. Mateo advised they will pay their allocated fair share for any and all development impact fees associated with the project, which includes sewer, water, storm drains, and streets. Mr. Mateo added that they are working with the City of H ighland and the San Bernardino Airport to make improvements on arterial streets and will be rebuilding all roads that are directly impacted by the construction. MOTION BY COUNCIL MEMBER FIGUEROA, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff’s recommendation. Mayor Valdivia closed the public hearing at 11:02 p.m. 14.a Packet Pg. 318 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 12 Printed 3/18/2021 RESULT: ADOPTED RESOLUTION NO. 2021-57, INTRODUCED, READ BY TITLE ONLY, AND WAIVED FURTHER READING OF ORDINANCE NO. MC-1557, ADOPTED RESOLUTION NO. 2021-58, AND SCHEDULED THE ADOPTION OF THE ABOVE ORDINANCE FOR THE REGULARLY SCHEDULED MEETING OF THE MAYOR AND CITY COUNCIL ON APRIL 7, 2021, CARRIED (5-2) MOVER: Juan Figueroa, Ward 3 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Alexander NOES: Reynoso, Calvin 12. Substantial Amendment to FY 2020-2021 Action Plan Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California hold a public hearing, and 1) Adopt a Substantial Amendment to the FY 2020-2021 Action Plan; 2) Direct the Finance Director to amend the Fiscal Year 2020-2021 Budget pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; 3) Direct the Finance Director to establish a new fund and associated accounts for the Community Development Block Grant (CDBG-CV3) pursuant to the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan; and 4) Authorize the City Manager or designee to take any further actions and execute any further documents and certifications as may be necessary to effectuate the submittal of the Substantial Amendment to the Fiscal Year 2020-2021 Action Plan. Mayor Valdivia opened the public hearing at 11:04 p.m. City Clerk Rocha informed the Mayor and City Council that there were no Public Comments received for this item. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve staff’s recommendation. Council Member Sanchez asked the actions requested are substantial amendments to the 2021 CDBG allocations. Administrative Analyst Gallegos advised that this is only for the current Fiscal Year 2021 Action Plan. Council Member Calvin commented that in the staff report, it is mentioned that there was only one voting member present at the last CDBG Committee meeting and it did not mention that they Mayor appointed himself as chair and asked why the informat ion 14.a Packet Pg. 319 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 13 Printed 3/18/2021 is left out. Assistant Manager Kramer stated that the Mayor was not mentioned because he was not one of the Council Members present and did not have any voting power and added that no action was taken and it was a work study that did not change the recommendations. Council Member Figueroa commented that the Family Services of Redlands is included in the report and stated that the City is giving funds to this agency that does not provide services in the City of San Bernardino. Council Member Figueroa stated that he would like the Family Services of Redlands to be removed and give the funds to Step Up on Second. Ms. Gallegos advised that the City is currently funding the organizations listed and it was approved by City Council previously and advised th at the Family Services of Redlands assists the homeless population in San Bernardino. Council Member Figueroa stated that they do not provide services in San Bernardino. Council Member Shorett advised that he will not change his motion and that City Council already agreed to fund the organization. Council Member Figueroa asked for locations of motels that have been identified in the staff report and how they were chosen. Housing Division Manager Noble advised the locations and stated that these projects were County initiated and were not selected by the City. Ms. Kramer advised that the only item before City Council is the amendment the addresses the COVID relief fund, not the annual action plan that was adopted at the beginning of the year. MOTION BY MAYOR PRO TEM IBARRA, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff’s recommendation. Mayor Valdivia closed the public hearing at 11:15 p.m. 14.a Packet Pg. 320 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 14 Printed 3/18/2021 RESULT: ADOPTED A SUBSTANTIAL AMENDMENT TO THE FY 2020-2021 ACTION PLAN, DIRECTED THE FINANCE DIRECTOR TO AMEND THE FISCAL YEAR 2020-2021 BUDGET AND ESTABLISH A NEW FUND AND ASSOCIATED ACCOUNTS FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT, AND AUTHORIZED THE CITY MANAGER OR DESIGNEE TO TAKE ANY FURTHER ACTIONS AND EXECUTE ANY FURTHER DOCUMENTS AND CERTIFICATIONS AS MAY BE NECESSARY TO EFFECTUATE THE SUBMITTAL OF THE SUBSTANTIAL AMENDMENT TO THE FISCAL YEAR 2020-2021 ACTION PLAN, CARRIED (4-3) MOVER: Sandra Ibarra, Ward 2 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Shorett, Calvin NOES: Figueroa, Reynoso, Alexander 13. Street Vacation of Portion of 4Th Street (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, take the following actions: 1) Conduct a Public Hearing, per Street and Highway Code 8322-8325, to consider comments on the proposed street vacation; and 2) Adopt Resolution 2021-59 of the Mayor and City Council of the City of San Bernardino, California, approving the vacation of a portion of 4 th Street and rescinding and repealing Resolution No. 2020-216 Mayor Valdivia opened the public hearing at 11:15 p.m. City Clerk Rocha informed the Mayor and City Council that there were no Public Comments received for this item. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve staff’s recommendation. Mayor Valdivia closed the public hearing at 11:16 p.m. RESULT: ADOPTED RESOLUTION 2021-59 OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE VACATION OF A PORTION OF 4TH STREET AND RESCINDING AND REPEALING RESOLUTION NO. 2020- 216, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 3 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 14.a Packet Pg. 321 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 15 Printed 3/18/2021 Mayor Valdivia left the meeting at 11:16 p.m. CONSENT CALENDAR Items on the Consent Calendar are considered routine and are voted on in a single motion, unless a Council or staff member has pulled the item for more discussion. Council Member Reynoso pulled Item No. 14. Council Member Calvin pulled Item No. 18. Council Member Alexander pulled Item Nos. 14 and 24. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY REYNOSO, to approve the Consent Calendar and pull item Nos. 14, 18, and 24. RESULT: APPROVED THE CONSENT CALENDAR AND PULL ITEM NOS. 14, 18, and 24, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 14. Resolution of the Mayor and City Council of the City of San Bernardino, California, Authorizing the City Manager to Execute the Third Amendment to the Legal Service Agreement with Carpenter, Rothans & Dumont, LLP Recommendation Adopted Resolution No. 2021-60, approving third amendment to the agreement with Carpenter Rothans & Dumont, LLP Council Member Reynoso and Alexander pulled item No. 14 for discussion. Council Member Reynoso stated that this is an excessive force case regarding the death of a man with mental disabilities and the approved amount was initially $50,000 and has since increased to $500,000 for litigation expenses. Council Member Reynoso commented that he finds this concerning. Council Member Alexander asked if this is a local and minority law firm, and if not why are we not reaching out to these types of law firms in the City. City Attorney Carvalho advised that representation in most cities is done in conjunction with the Risk Management Department and there are several firms in California that specialize in use of force cases. Ms. Carvalho advised that if it City Council’s direction to staff look for local representation that have this expertise, they can work with staff to issue a Request for Proposal. 14.a Packet Pg. 322 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 16 Printed 3/18/2021 City Manager Field advised that the City does not currently have a Risk Manager to handle this process. Council Member Alexander stated that the City is not utilizing the talent in San Bernardino. Mayor Pro Tem Ibarra commented that it is troubling that the amount of money is so high. MOTION BY MAYOR PRO TEM IBARRA, to direct staff to issue a Request for Proposals for another law firm to represent the City. There was no second. Council Member Sanchez stated that would be a grave mistake. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff recommendation. Motion failed 3-4 (Mayor Pro Tem Ibarra, Council Members Reynoso, Calvin, and Alexander opposed) Council Member Sanchez stated that this needs to be handled delicately and asked for caution from City Council. Council Member Shorett stated that he is in support of approving this item. Council Member Alexander and Council Member Calvin advised they will reconsider their vote. Mayor Pro Tem Ibarra asked for an update on outstanding receipts and will also reconsider her vote. MOTION MADE BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER ALEXANDER, to reconsider vote. Motion passes 6-1 (Council Member Reynoso opposed) MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve Staff’s recommendation. RESULT: ADOPTED RESOLUTION NO. 2021-60, APPROVING THIRD AMENDMENT TO THE AGREEMENT WITH CARPENTER ROTHANS & DUMONT, LLP, CARRIED (6-1) MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Calvin, Alexander NOES: Reynoso 15. Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes for the following meetings: 14.a Packet Pg. 323 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 17 Printed 3/18/2021 1) May 21, 2020, Special Meeting 2) September 16, 2020, Special Meeting; and 3) March 3, 2021, Regular Meeting 16. April, October, December 2020 and January, February 2021 City Board, Commission, and Citizen Advisory Committee Approved Minutes Recommendation Receive and file the minutes from the City board, commission, and citizen advisory committee meetings approved in January, February, and March 2021. 17. Harris Building Parking Option Extension (Ward 1) Recommendation Adopt Resolution No. 2021-61 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Agency to the Redevelopment Agency, approving the extension to the reciprocal easement agreement (REA) with El Corte Ingles, S.A., a Spanish Corporation (“ECI”) for parking. 18. Code Amendment - Downtown Advisory Committee Final Reading (Wards 1 & 3) Recommendation Accept the final reading and adopt Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendment to Section 2.17.040 related to Appointment-Registered voters requirement- Compensation-Oath, with the amendments identified by the Mayor and City Council motion to approve the ordinance. Council Member Calvin pulled Item No. 18 for discussion and stated that City Council voted and agreed that the members would have to be residents of the City or they can be active business owners but they may not just be a commercial property owner and would the language to be included in the Resolution. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to continue the item. RESULT: ITEM CONTINUED, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 19. General Plan Webpage (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file this report on the launching of the City’s General Plan webpage - FutureSB2050.com. 14.a Packet Pg. 324 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 18 Printed 3/18/2021 20. Local Early Action Planning Grant Program Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-62 authorizing the City Manager to submit an application for the Local Government Planning Support Grant Program. 21. Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for February and March 2021. 23. Construction Contract Award – Playground Equipment Replacement - Phase 3 (Wards 1, 4, 5, 6) Recommendation Adopt Resolution No. 2021-64 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with Pacific Play Systems, Inc. in the amount of $879,950 for the construction of Playground Equipment Replacement-Phase 3 (CIP PR21-001) (“Project”); and 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $1,012,270 for the Project; and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. 24. Construction Contract Award – Citywide Concrete Repairs (Wards 1,2 & 6) Recommendation Adopt Resolution No. 2021-65 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with Martinez Concrete, In c. in the amount of $412,550 to provide Citywide annual concrete repairs; and 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $483,032 for Citywide Annual Concrete Repairs Project (CIP SS-D); and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Council Member Alexander pulled Item No. 24 for discussion and asked if local vendor preference was used when awarding this contract. Finance Director Whitehorn advised that the City is not allowed to utilize local vendor preference for construction projects, per the State of California. 14.a Packet Pg. 325 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 19 Printed 3/18/2021 Public Works Director Jensen advised that the City must award the contract to the lowest responsive bidder. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to continue the item. RESULT: ITEM CONTINUED, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 25. Final Reading and Adoption of Ordinance MC-1554 (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading and adoption of Ordinance MC-1554 amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of the maintenance and servicing of landscaping, lighting, water quality improvements, graffiti, streets, street sweeping, parks and trail maintenance, a reserve fund for capital replacement, and administrative expenses with respect to City of San Bernardino Community Facilities District No. 2019 -1 (Maintenance Services). 26. Final Reading and Adoption of Ordinance MC-1556 (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct final reading and adoption of Ordinance MC-1556 amending Ordinance MC-1522 and levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of the maintenance and servicing of Landscaping, Lighting, Water Quality Improvements, Graffiti, Streets, Street Sweeping, Parks and Trail Maintenance, A Reserve Fund for Capital Replacement, and Administrative Expenses With Respect to City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services). ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 27. Restricted Truck Routes- Council Member Alexander Council Member Alexander requested an item to be brought back to City Council regarding restricted truck routes and how they might benefit the City. MOTION BY COUNCIL MEMBER REYNOSO, SECOND BY COUNCIL MEMBER SANCHEZ, to bring back a report on restricted truck routes. CARRIED 7 -0 – Passed Unanimously 14.a Packet Pg. 326 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes March 17, 2021 Mayor and City Council of the City of San Bernardino Page 20 Printed 3/18/2021 Council Member Shorett asked staff to bring back an item within 30 days regarding how Council Members can amend the City Charter and how they can place a measure on the ballot in 2022 to eliminate the Mayor’s position as a full-time paid position. Council Member Alexander asked staff to bring back an item to activate the Charter Review Committee. Council Member Reynoso asked staff to bring back an item regarding a citywide warehouse moratorium. Council Member Calvin asked staff to bring back an item regarding an automated system that will allow residents can see when streets will be repaved or repairs completed and would like staff to determine the cost for the system. ITEMS TO BE REFERRED TO COMMITTEE None REPORTS ON CONFERENCES/MEETINGS ATTENDED None ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 12:00 a.m. The Mayor and City Council will adjourn to a special meeting that will be held on Wednesday, March 31, 2021 via tele-conference. Open Session will begin at 5:30 p.m. BY: Genoveva Rocha, CMC City Clerk 14.a Packet Pg. 327 Attachment: Attachment 1 - 03-17-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org DRAFT MINUTES FOR THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, MARCH 31, 2021 5:30 PM CALL TO ORDER The Special Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 5:33 PM by Mayor Pro Tem Sandra Ibarra on Wednesday, March 31, 2021, via Web-Conference. Attendee Name Present Absent Late Arrived Council Member, Ward 1 Theodore Sanchez    Mayor Pro-Tem, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Ben Reynoso    Council Member, Ward 6 Kimberly Calvin    Council Member, Ward 7 Damon L. Alexander    Mayor John Valdivia    City Manager Robert D. Field    City Attorney Sonia Carvalho    City Clerk Genoveva Rocha    Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander 14.b Packet Pg. 328 Attachment: Attachment 2 - 03-31-2021 Draft Special Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes March 31, 2021 Mayor and City Council of the City of San Bernardino Page 2 Printed 4/1/2021 INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Pro Tem Ibarra asked Council Member Calvin to lead the Pledge of Allegiance. PUBLIC COMMENTS FOR ITEMS LISTED ON THE AGENDA Treasure Ortiz, San Bernardino, expressed her excitement about a potential plan for City Hall, asked City Council to formulate questions that residents ma y have in response to the presentation, especially in forms of cost, and spoke in favor of a lease- to-buy-back option. PRESENTATION 1. City Hall Discussion City Manager Field and Public Works Director Jensen provided a presen tation on options for City Hall and informed City Council that there is no action requested from the discussion. Council Member Reynoso asked if staff has a specific dollar amount for each option and asked if Option 3 presented by staff would be applicable in retrofitting City Hall. City Manager Field advised that the amounts are very general numbers and professional help would be needed to determine the amount and advised that Option 3 is applicable in the retrofitting of City Hall. Council Member Calvin asked if staff has reviewed the seismic performance assessment completed in 2016 and asked if the amount of $14 million provided in the report was accurate. Council Member Calvin also requested that State engineers come and assess the building. Mr. Field advised that staff has reviewed the report and it needs to be revisited and amounts need to be confirmed. Council Member Shorett commented on a presentation by the previous Public Works Director regarding the 201 building and City Hall and stated that an assessment was performed and both buildings were in the red zone. Council Member Shorett asked if the 201 building is included in the presentation and if the parking structure is structurally sound. Council Member Shorett stated that the presentation was very limited and he does not feel comfortable giving recommendations. Council Member Calvin asked if it would be possible to receive the reports to determine what has changed. Mayor Pro Tem Ibarra asked how soon the City could reach out to State engineers to find out when a report can be completed on City Hall and the parking structure. Mr. Field advised the City will reach out to the State and provide any reports to City Council. Mayor Pro Tem Ibarra commented that she would like to see the recurring costs associated with building 201 and per month utility costs for City Hall. 14.b Packet Pg. 329 Attachment: Attachment 2 - 03-31-2021 Draft Special Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes March 31, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 4/1/2021 Mr. Field stated that if a seismic assessment is performed, the parking structure will be included and advised that a data driven analysis needs to be performed so that a data driven decision can be made. Mr. Field advised that staff is looking for permission to pursue the analysis. Mayor Pro Tem Ibarra commented on space that the City is utilizing and advised that the City needs to look at how much staff they currently have and the space necessary, adding that an independent engineer from the State would be beneficial in assessing City Hall. Council Member Shorett commented on the number of employees the City has and ensuring there is enough space for current and future staff. Ms. Jensen provided estimates on the space that staff is currently utilizing. Mayor Pro Tem Ibarra commented that an additional report is needed with estimates and have the State engineers provide a report on City Hall before City Council can direct staff. Council Member Alexander asked if a motion is needed. Mr. Field advised that no motion is needed, and he will bring back a report to City Council. Council Member Calvin asked how much a space assessment typically costs. Mr. Field advised that it depends, and if the amount exceeds his signing authority, it will be brought to City Council for approval and that staff needs to determine how much space is needed to house current and future staff. ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 6:44 p.m. The next joint regular meeting of the Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will be held on Wednesday, April 7, 2021 via tele-conference. Closed Session will begin at 5:30 p.m. and Open Session will begin at 7:00 p.m. BY: Genoveva Rocha, CMC City Clerk 14.b Packet Pg. 330 Attachment: Attachment 2 - 03-31-2021 Draft Special Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander MINUTES FOR THE REGULAR MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY WEDNESDAY, APRIL 7, 2021 5:30 PM CALL TO ORDER The Closed Session Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 5:32 PM by Mayor John Valdivia on Wednesday, April 7, 2021, via Web-Conference. Attendee Name Title Status Arrived Theodore Sanchez Council Member, Ward 1 Present Sandra Ibarra Mayor Pro-Tem, Ward 2 Present Juan Figueroa Council Member, Ward 3 Present Fred Shorett Council Member, Ward 4 Present Ben Reynoso Council Member, Ward 5 Present Kimberly Calvin Council Member, Ward 6 Present Damon L. Alexander Council Member, Ward 7 Present 5:39 p.m. John Valdivia Mayor Present Genoveva Rocha City Clerk Present Sonia Carvalho City Attorney Present Robert D. Field City Manager Present 14.c Packet Pg. 331 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 2 Printed 4/9/2021 5:30 P.M. The closed session meeting was called to order at 5:3 2 p.m. CLOSED SESSION PUBLIC COMMENT There were no public comments submitted for the Closed Session Meeting of the Mayor and City Council. CLOSED SESSION A. PUBLIC EMPLOYEE PERFORMANCE EVALUATIONS Pursuant to Government Code Section 54957 (Discussion of evaluation procedures and preparation for annual evaluation of Mayor and Council appointees) Title: City Manager Title: City Attorney Title: City Clerk B. POTENTIAL THREAT TO PUBLIC SERVICES OR FACILITIES Pursuant to Government Code Section 54957 Consultation with Chief of Police 7:00 P.M. Mayor Valdivia called the regular meeting to order at 7 :04 p.m. INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia asked Council Member Shorett to lead the Pledge of Allegiance to the Flag. CLOSED SESSION REPORT City attorney Carvalho reported that there is no reportable action . CITY MANAGER UPDATE City Manager Field commented on the reopening of public facilities and the City’s public counter, various events in the City, illegal firework activities, and commented on the grant that the Water Department received to install smart meters and water conservation measures. Mayor Valdivia expressed his appreciation of Public W orks staff and public employees. APPOINTMENTS 1. General Plan Advisory Committee Appointment (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Ms. Angela M. Torres to the G eneral Plan Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 14.c Packet Pg. 332 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 4/9/2021 2. Parks, Recreation and Community Services Commission Appointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Micah E. Lee to the Parks, Recreation and Community Services Commission representing Ward 6. Mr. Lee will replace Charlè Jacobs with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 3. General Plan Advisory Committee Appointment (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of Sa n Bernardino, California, approve the appointment of Mr. Anthony R. Aguirre to the General Plan Advisory Committee representing Ward 3 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 4. Measure S Citizens Oversight Committee Appointment (Ward 5) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the appointment of Mr. Anthony J. Roberson to the Measure S Citizens Oversight Committee representing Ward 5. Mr. Roberson will replace Eric Roark with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 5. Measure S Citizens Oversight Committee Reappointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Ms. Bronica L. Martindale to the Measure S Citizens Oversight Committee representing Ward 6 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. 6. Charter Review Commission Reappointment (Ward 6) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the reappointment of Ms. Vicki Lee to the Charter Review Commission representing Ward 6 with the term ending December 2024. Council Staff has verified that appointee is a registered voter within the City. Mayor Pro Tem Ibarra asked if City Council can vote separately on Appointment Item No. 2. MOTION BY COUNCIL MEMBER FIGUEROA, SECONDED BY COUNCIL MEMBER REYNOSO, to approve the appointments listed in Item Nos. 1, 3, 4, 5, and 6. 14.c Packet Pg. 333 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 4/9/2021 RESULT: APPROVED THE APPOINTMENTS OF MS. ANGELA M. TORRES, MR. ANTHONY R. AGUIRRE, MR. ANTHONY J. ROBERSON, MS. BRONICA L. MARTINDALE, AND MS. VICKI LEE, CARRIED 7-0 – Passed Unanimously MOVER: Juan Figueroa, Ward 3 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None Mayor Pro Tem Ibarra voiced concerns that Mr. Micah E. Lee does not reside in the sixth ward. Council Member Reynoso spoke on Mr. Lee’s character, stating that his experience with Parks and Recreation is not contingent on where he lives. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER REYNOSO, to approve the appointment. RESULT: APPROVED THE APPOINTMENT OF MR. MICAH E. LEE TO THE PARKS, RECREATION AND COMMUNITY SERVICES COMMISSION, CARRIED (6-1) MOVER: Theodore Sanchez, Ward 1 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: Ibarra PRESENTATIONS 7. Proclamation for National Library Week - April 4-10, 2021 Mayor Valdivia proclaimed the week of April 4-10, 2021 as National Library Week. PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA Ana, San Bernardino, commented on the Mayor and City Council arguing during meetings and asked that City Council perform their job. Sonjanetha Scott, San Bernardino, commented on large amounts of debris at an old bakery on Medical Center Drive. Janette Seppie, San Bernardino, spoke in support of Item No. 30 and the removal of the concrete pile at Oxbow Project location. Victor Velasco, Roxanna Barrera, Andrew Thompson, Cathie Destefano, Olga Flores, Abe Vasquez, Andres Garcia, Augustin Ledesma, Rayleen Baregos, Mrs. Bill, Arturo, Araceli, Alejandra Avila, Naomi, Teyes, Nikkie Amtare, Atina Tan, Lulu Aldan, Michael Segura, Janet Haro, Tina Avosmorgan, Daniel Rodriguez, 14.c Packet Pg. 334 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 5 Printed 4/9/2021 Christian Flores, Sharon Williams, Sunny Ivy, Jody Isenberg, Nick, Miriam Neito, Jack Cruit, Carol Baez, Amber Vasquez, San Bernardino, spoke in support of a warehouse moratorium. Henry Nickel, San Bernardino, commented on Item No. 30 and asked City Council to consider a policy change that would require a bonding surety for all temporary use stock piling permits and spoke on returning to in-person meetings. Peggy Haslett, San Bernardino, spoke in support of Item No. 30 and expressed her gratitude to former Council Member Nickel and current sixth ward Council Member Reynoso. Gabriel Jaramillo, San Bernardino, commented on the Mayor’s statements regarding Ward 1. Harry Hatch, San Bernardino, spoke on placing at item on the agenda regarding fireworks. Robert porter, San Bernardino, informed the public of his radio show, spoke on attendance at Council meetings, retrofitting City Hall, and stated he is looking forward to the campaign finances item. Hardy Brown, San Bernardino, commented on the committee and commission appointees by Council Member Calvin and Council Member Reynoso and the lack of representation of various wards. Treasure Ortiz, San Bernardino, commented on the status of a Community Benefits Agreement with ICO Real Estate Group, community outreach for the general plan, spoke in support of Item No. 9 and of a warehouse moratorium. Ms. Ortiz also asked who will be held accountable regarding the Oxbow project and commented on the Mayor’s statements. Elma Marquez, San Bernardino, spoke in support of the approval of Item No. 14 and the importance of a Community Benefits Agreement. Faraz, San Bernardino, commented on Item No. 14 and spoke on the importance of having environmental impact mitigation and ensuring a Community Benefits Agreement is in place. Linda Magallanez, San Bernardino, asked who will be held accountable for the concrete pile at the Oxbow project and spoke in support of a warehouse moratorium. Eloise Gallarza, San Bernardino, spoke in support of the approval of Item No. 14 and the importance of a Community Benefits Agreement. Marvin Norman, San Bernardino, spoke against the approval of Item No. 14. 14.c Packet Pg. 335 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 6 Printed 4/9/2021 STAFF REPORTS 8. Animal Services Update (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and file a staff report on the status of improvements to the Animal Shelter; 2. Adopt Resolution No. 2021-87, accepting a grant award in the amount of $1,500,000 from the San Manuel Band of Mission Indians for Animal Shelter Programs and Services allocated over a three year period (FY 2020/21 through FY 2022/23) and delegating authority to the City Manager to conduct all negotiations and sign and submit all necessary documents to receive the grant award; and 3. Authorize the Director of Finance to amend the FY 2020/21 Budget to appropriate $500,000 of the grant funding for animal shelter programs and services; and 4. Authorize the Director of Finance to amend the FY 2020/21 budget to transfer $31,160 from the Animal Services Fund (accou nt 124 230 0001 5704) to Public Works Facilities and Maintenance Operations budget for the emergency removal and replacement of the modular trailer required to mitigate an immediate risk to the health and safety of City employees. Animal Services Director Watson provided an update on the Animal Services Department. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER FIGUEROA, to approve staff recommendations. RESULT: RECEIVED AND FILED A STAFF REPORT ON THE STATUS OF IMPROVEMENTS TO THE ANIMAL SHELTER, ADOPTED RESOLUTION NO. 2021-87, AUTHORIZED THE DIRECTOR OF FINANCE TO AMEND THE FY 2020/21 BUDGET TO APPROPRIATE $500,000 OF THE GRANT FUNDING FOR ANIMAL SHELTER PROGRAMS AND SERVICES AND $31,160 FROM THE ANIMAL SERVICES FUND TO PUBLIC WORKS FACILITIES AND MAINTENANCE OPERATIONS BUDGET, CARRIED 7-0 – Passed Unanimously MOVER: Ben Reynoso, Ward 5 SECONDER: Juan Figueroa, Ward 3 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 14.c Packet Pg. 336 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 7 Printed 4/9/2021 9. Administrative Policies (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino , California, review and consider the following proposed administrative policies and provide direction for modifications or adopt the resolutions as presented: 1. Use of the City Seal (Resolution No.2021-67); and 2. Procedure for Elected Officials to Place Items on the City Council Agenda (Resolution No.2021-68); and 3. Elected Officials’ Interaction with City Staff and Involvement in Administrative Affairs (Resolution No. 2021-69). City Manager Field provided an overview of the policies brought forward for City Council approval. Council Member Reynoso commented on Item No. 3, Letter D, which states the Mayor, City Council, and City staff will not blindside each other in public. MOTION BY COUNCIL MEMBER REYNOSO to approve with the exclusion of Letter D in Item No. 3. There was no second. Assistant City Manager Kramer stated that the verbiage that is stated in Item No. 3, Letter D, is currently included in the municipal code. Council Member Shorett commented on the definition of “blindside”, stating that it means coming out of nowhere with a concern or criticism. He expressed that he agrees with Reynoso, however feels it is appropriate to be included. Council Member Shorett commented that he has an issue with the use of the City Seal and it should be used only in one form, and does support the seal being edited or customized. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to continue with staff recommendations and approve items 2 and 3 as stated. SUBSTITUTE MOTION BY MAYOR PRO TEM IBARRA, SECONDED BY COUNCIL MEMBER ALEXANDER, to vote for items 1, 2 and 3 separately. Council Member Figueroa commented on Item No. 3 and asked for clarification in terms of elected officials interacting with City Council staff. Council Member Figueroa asked why Council members still need to go through the City Manager’s Office to obtain assistance from City Council staff. City Manager Field advised that the primary intention is not to limit interaction with staff; it is to ensure that Council Members are not giving direction to staff as it does not align with the City Charter. Council Member Shorett commented that the intent benefits staff and provides them with recourse if asked to perform tasks that are not appropriate. 14.c Packet Pg. 337 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 8 Printed 4/9/2021 Council Member Alexander stated that this makes it more difficult for City Council Members to enact change on behalf of the public. Council Member Calvin asked for clarity on 4F, which states the Mayor and City Council will refer citizen complaints to staff. Council Member Calvin stated all of Council Members receive emails forwarded to them and asked if they are not allowed to respond to constituents. Council Member Calvin also inquired about the response timelines from staff. Ms. Kramer stated that the policy is a reiteration of what is currently in the municipal code and stated that City Council is encouraged to respond to constituents. Ms. Kramer stated that staff should be responsible for responding to the work to the work that needs to be completed of identifying what it would take to address the issues and communicating detailed information to the residents. Mr. Field advised that the response depends on the nature of the issue, and provided the example of an issue relating to Public Works, stating that the issue would be referred to the Public Works Director. He also commented on a future policy to establish response times. Mayor Pro Tem Ibarra commented on Item No. 3, Letter D, which states the Mayor, City Council, and City staff will not blindside each other in public, stating that she has always had an issue with this. Mayor Pro Tem Ibarra stated that there should not be an excuse for staff not having answers and expects staff members to know what they are talking about, adding that she would like to remove that section from the Municipal Code. Council Member Reynoso stated that the public has been educated on how stringent City Council’s position is, adding that when something is not completed the City Manager is responsible. Council Member Reynoso commented that there is a lot of work to do in the city and there are literal and legal barriers due to the way the City is set up. Council Member Figueroa asked if commissioners fall under the description as appointed in terms of Item No. 1 in relation to the City Seal. Ms. Kramer advised that the Municipal Code stipulates how the City Seal can be used, stating that staff received a request from Council Members to allow f or an elected official City Seal, which would permit a modified version of the City Seal that would provide for Council Member’s names to be included in the seal. Ms. Kramer added that this would only apply for current officeholders of Mayor or City Council. Council Member Shorett stated that he would like to know if other cities allow for modification. Council Member Shorett commented that the City has a seal and a process of how to use it, and this modification is about ego and it makes no sense to individualize the seal. MOTION BY COUNCIL MEMBER ALEXANDER, SECONDED BY COUNCIL MEMBER REYNOSO, to approve staff recommendation for Item No. 1. (Council Members Sanchez, Figueroa, Shorett and Calvin voting in opposition) 14.c Packet Pg. 338 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 9 Printed 4/9/2021 RESULT: RESOLUTION NO. 2021-67, POLICY REGARDING USE OF THE CITY SEAL, WAS NOT APPROVED MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff recommendation for Item No. 2. RESULT: APPROVED THE PROCEDURE FOR ELECTED OFFICIALS TO PLACE ITEMS ON THE CITY COUNCIL AGENDA (RESOLUTION NO.2021-68), CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff recommendation for Item No. 3. RESULT: APPROVED ELECTED OFFICIALS’ INTERACTION WITH CITY STAFF AND INVOLVEMENT IN ADMINISTRATIVE AFFAIRS (RESOLUTION NO. 2021-69), CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 10. Amendment to the 2021 Legislative and Regulatory Platform (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve an amendment to the 2021 Legislative and Regulatory Platform to include access to higher education. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff recommendation. RESULT: APPROVED AN AMENDMENT TO THE 2021 LEGISLATIVE AND REGULATORY PLATFORM TO INCLUDE ACCESS TO HIGHER EDUCATION, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 14.c Packet Pg. 339 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 10 Printed 4/9/2021 CONSENT CALENDAR Items on the Consent Calendar are considered routine and are voted on in a single motion, unless a Council or staff member has pulled the item for more discussion. Council Member Sanchez pulled Item No. 30. Council Member Reynoso pulled Item Nos. 22 and 28. Mayor Valdivia pulled Item No. 12. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve the Consent Calendar and pull item Nos. 12, 22, 28, and 30. RESULT: APPROVED THE CONSENT CALENDAR AND PULLED ITEM NOS. 12, 22, 28, and 30, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexand er NOES: None 11. Approval of the Mayor and City Council Meeting Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, approve the meeting minutes for the February 17, 2021, Regular Meeting of the Mayor and City Council. 12. Electoral Redistricting Advisory Committee Recommendation Adopt Resolution No. 2021-70 of the Mayor and City Council of the City of San Bernardino, California, establishing the Electoral Redistricting Advisory Committee. Mayor Valdivia pulled Item No. 12 for discussion and commented that he disagreed with the recommendation of seven appointed officials of one from each Council district, and is requesting that one or two are Mayor Appointees. Mayor Valdivia advised that he is the elected official serving at large that reflects all seven wards, and expressed that the fact that he does not have an appointment on the advisory committee is an oversight. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to approve staff recommendation. Shorett stated that staff should be given an opportunity to respond to the Mayor’s statement that the recommendation of only seven appointees is an oversight, and commented that the City has seven wards and seven Council Members and redistricting has everything to do with individual Council wards, not the entire City. City Clerk Rocha advised that the discussion regarding the discussion establishing the committee took place shortly after the Mayor excused himself from the February 17, 14.c Packet Pg. 340 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 11 Printed 4/9/2021 2021 Regular Mayor and City Council Meeting and the recommendation was brought forward by Council Member Reynoso and Sanchez. RESULT: ADOPTED RESOLUTION NO. 2021-70 ESTABLISHING THE ELECTORAL REDISTRICTING ADVISORY COMMITTEE, CARRIED 7-0 – Passed Unanimously MOVER: Theodore Sanchez, Ward 1 SECONDER: Fred Shorett, Ward 4 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 13. Third Amendment to Neighborhood Stabilization Program Developer Master Agreement (Ward 7) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: Adopt Resolution No. 2021-71 approving the Third Amendment to Neighborhood Stabilization Program Developer Master Agreement and Exclusive Negotiation Agreement with Mary Erickson Community Housing, a Non Profit Corporation, and Authorizing the City Manager or Designee to take any further actions and execute additional documents as necessary to effectuate the agreements. 14. Development Code Amendment (Zoning Map Amendment) 20-03 and Specific Plan Amendment 20-01 (The Landing by San Manuel) - Second Reading Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept the final reading and adopt Ordinance No. MC-1557 adopting Development Code Amendment (Zoning Map Amendment) 20 -03 and Specific Plan Amendment 20-01 changing the Zoning District Classification from Public Facilities (PF) to Specific Plan - Alliance California (SP-AC) Third Street Land Use District of a parcel (APN: 0136-371-33) containing approximately 12.89 acres, pursuant to a certified Final Environmental Impact Report (California State Clearinghouse Schedule No. 2020100067). 15. Code Amendment - Downtown Advisory Committee Final Reading (Wards 1 & 3) Recommendation Accept the final reading and adopt Ordinance MC-1552 of the Mayor and City Council of the City of San Bernardino, California, adopting a Code Amendment to Section 2.17.040 related to Appointment-Registered voters requirement- Compensation-Oath, with the amendments identified by the Mayor and City Council incorporated. 14.c Packet Pg. 341 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 12 Printed 4/9/2021 16. Professional Services Agreement for Grant Financial Management Services with Annie Clark (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-72 authorizing the execution of a two-year Professional Services Agreement for grant financial management consultant services between the City of San Bernardino and Annie Clark, in an amount not to exceed $182,400; and 2. Authorize the City Manager or designee to take any further actions necessary to effectuate the agreement. 17. Approval of Resolutions to Execute Agreements for Revenue Audit and Recovery Services (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-73 authorizing the execution of an agreement between the City of San Bernardino and Eide Bailly LLP for the provision of Transient Occupancy Tax (ToT)/Hotel Tax audit services; and 2. Adopt Resolution No. 2021-74 authorizing the execution of an agreement between the City of San Bernardino and Davis Farr LLP for the provision of Utility Users Tax and Franchise Fee audit services; and 3. Adopt Resolution No. 2021-75 authorizing the execution of an agreement between the City of San Bernardino and Hinderliter, de Llamas & Associates for the provision of Sales Tax analysis and audit services; and 4. Adopt Resolution No. 2021-76, authorizing the examination of Transactions and Use Tax Records of the CDTFA. 18. Investment Portfolio Report for February 2021 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for February 2021. 19. Final Reading and Adoption of Ordinance MC-1555 (Ward 3) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, conduct a final reading and adopt Ordinance MC-1555 levying special taxes to be collected during Fiscal Year 2020/21 to pay the annual costs of certain public improvements and costs of administration with respect to City of San Bernardino Community Facilities District No. 2021-1 (Ferree Street). 14.c Packet Pg. 342 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 13 Printed 4/9/2021 20. Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for March 2021. 21. Authorization to Issue Purchase Orders to GovConnection, Inc. for the Purchase of Workstations, Laptops and Monitors (All Wards) Recommendation Adopt Resolution No. 2021-77 of the Mayor and City Council of the City of San Bernardino, California authorizing the City Manager or designee to authorize and issue Purchase Orders to GovConnection, Inc., in an amount not to exceed $150,000.00, for the purchase of workstations, laptops and monitors as outlined in the report. 22. Accept the FY 2020/21 Power Resiliency Allocation (All Wards) Recommendation Adopt Resolution No. 2021-78 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to accept the FY 2020/21 Community Power Resiliency Allocations to Cities Program, and authorize the Director of Finance to amend the FY 2020/21 Adopted Budget appropriating $300,000 in both revenue and expenditures. Council Member Reynoso pulled Item No. 22 for discussion and inquired how many generators the Police Department is looking to purchase, if they are in need of a new generator, and inquired if there were plans to have generators available to the public. Acting Police Chief McBride advised that the Police Department and the Emergency Operations Center is in need of a new generator, stating that it may take up a good portion of the grant. McBride stated that if money is left over, they will look into how to allocate funds for additional generators. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER SANCHEZ, to approve staff recommendation. Council Member Figueroa asked about the generator that will be replaced and inquired who is writing the grants for the Police Department. McBride stated that the generator is reaching end of life and the grant was written by a member of their executive staff. 14.c Packet Pg. 343 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 14 Printed 4/9/2021 RESULT: ADOPTED RESOLUTION NO. 2021-78 AUTHORIZING THE CITY MANAGER TO ACCEPT THE FY 2020/21 COMMUNITY POWER RESILIENCY ALLOCATIONS TO CITIES PROGRAM, AND AUTHORIZE THE DIRECTOR OF FINANCE TO AMEND THE FY 2020/21 ADOPTED BUDGET APPROPRIATING $300,000 IN BOTH REVENUE AND EXPENDITURES, CARRIED 7-0 – Passed Unanimously MOVER: Ben Reynoso, Ward 5 SECONDER: Theodore Sanchez, Ward 1 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 23. First Amendment to Professional Services Agreement with Bio-Tox Laboratories, Inc. (All Wards) Recommendation Adopt Resolution No. 2021-79 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the First Amendment to the Professional Services Agreement with Bio -Tox Laboratories, Inc. 24. Update Regarding Trespassing and Other Illegal Activities in County Flood Control Areas (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file this staff report regarding trespassing and other illegal activities in County flood control areas. 25. Construction Contract Award – Citywide Pavement Rehabilitation (SB1) (All Wards) Recommendation Adopt Resolution No. 2021-80 of the Mayor and City Council of the City of San Bernardino, California: 1. Authorizing the Director of Finance to amend the FY 2020/21 Capital Improvement Plan, and record a supplemental appropriation in the amount of $922,227 in SB-1 Fund No. 125-160-8769 for Citywide Pavement Rehabilitation (SB1) Project; and 2. Approving the award of a Construction Contract with Matich Corporation in the amount of $4,050,000 to provide Citywide Pavement Rehabilitation; and 3. Authorizing project construction, construction contingencies and inspections costs in the total amount of $4,622,227 for Citywide Pavement Rehabilitation (SB1) Project (CIP SS-21-001); and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. 14.c Packet Pg. 344 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 15 Printed 4/9/2021 26. Stop Sign Installation at Various Locations (Wards 5, 7) Recommendation Adopt Resolution No. 2021-81 of the Mayor and City Council of the City of San Bernardino, California, amending Resolution No. 655 entitled, in part, “A Resolution… designating certain streets or portions thereof as through highways…” and authorizing the establishment of an all-way stop control at the intersections of 28th Street and Sierra Way (4-way) and State Street and Sheridan Road (4-way). 27. Construction Contract Award – Citywide Pavement Rehabilitation (Slurry / Crack Seal) (Ward 3) Recommendation Adopt Resolution No. 2021-82 of the Mayor and City Council of the City of San Bernardino, California: 1. Authorizing the Director of Finance to amend the FY 2020/21 Capital Improvement Plan (CIP), recording a supplemental appropriation in the amount of $209,650 in Measure I Fund No. 129 -160-7306 for CIP Project SS-D - Citywide Pavement Rehabilitation Slurry/Crack Seal (“Project”); and 2. Approving the award of a Construction Contract with All American Asphalt of Corona, California in the amount of $549,395 to provide Citywide slurry and crack seal repairs; and 3. Authorizing project construction, construction contingencies and inspections costs in the total amount of $631,860 for the Project; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the Project. 28. First Amendment to Consultant Services Agreement with Paragon Partners, Ltd. (Wards 4) Recommendation Adopt Resolution No. 2021-83 of the Mayor and City Council of the City of San Bernardino, California approving the First Amendment to Consultant Services Agreement ("First Amendment") with Paragon Partners, Ltd., extending the contract term through June 30, 2022, for right-of-way acquisition services related to H Street widening project between 40th Street and Kendall Drive ("Project"). Council Member Reynoso pulled Item No. 28 for discussion and asked that staff bring back a report within a 30 days detailing where the City’s impact fees are spent. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER REYNOSO, to approve staff recommendation. 14.c Packet Pg. 345 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 16 Printed 4/9/2021 RESULT: ADOPTED RESOLUTION NO. 2021-83 APPROVING THE FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT WITH PARAGON PARTNERS, LTD., EXTENDING THE CONTRACT TERM THROUGH JUNE 30, 2022, FOR RIGHT-OF-WAY ACQUISITION SERVICES RELATED TO H STREET WIDENING PROJECT BETWEEN 40TH STREET AND KENDALL DRIVE, CARRIED 7-0 – Passed Unanimously MOVER: Fred Shorett, Ward 4 SECONDER: Ben Reynoso, Ward 5 AYES: Sanchez, Ibarra, Figueroa, Shorett, Reynoso, Calvin, Alexander NOES: None 29. Public Works Equipment Purchases (All Wards) Recommendation Adopt Resolution No. 2021-84 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the purchase of the following Public Works equipment approved for funding through the FY 20 20/21 Mid-Year Budget Report: 1. One new Caterpillar Model 262D3 Skid Steer Loader with grinder attachment from Quinn Company in the amount of $74,000; and 2. One new Envirosight Rovver X Pipeline Inspection System from Haaker Equipment Company in the amount of $97,977.13; and 3. One new FORD Super Duty F-550 with aerial Versa-lift from National Auto Fleet Group in the amount of $129,544.94. 30. Award of Nuisance Abatement Services Agreement to Cemex Corporation for Removal of Concrete Pile on N. Palm Avenue (Ward 5) Recommendation Adopt Resolution No. 2021-85 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the Nuisance Abatement Services Agreement between the City of San Bernardino and Cemex Corporation of Ontario, California, dated March 31, 2021 in an amount not to exceed $1,470,000 to provide abatement services required at private property located on N. Palm Avenue, San Bernardino, California 92407; APNs: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000 (“Project”); and 2. Amending the FY 2020/21 operating budget to appropriate $2,000,000 from the City’s undesignated General Fund reserve to support the project to include the cost of the abatement services in the amount of $1,470,000, project contingencies in the amount of $330,000, and anticipated project water use in the amount of $200,000; and 3. Authorizing the City Manager to expend contingencies as necessary to complete 14.c Packet Pg. 346 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 17 Printed 4/9/2021 the Project. Council Member Sanchez and Council Member Reynoso pulled Item No. 30 for discussion. Council Member Sanchez stated that approving this would be a s erious mistake by the City. Council Member Sanchez inquired how many truckloads are needed to remove the concrete and expressed concerns over diesel particulate matter, expressin g that concrete crushing should be performed on site. Public Works Director Jensen stated that the City estimates about 2,800 truckloads of concrete need to be removed, however the number could increase or decrease. Council Member Reynoso stated that residents do not want grinding on site and that this is an error that was caused by staff and the fraudulent issue of a temporary use permit. Council Member Reynoso commented that he has seen videos of dirt coming into people’s homes and the debris is pelting people’s cars and homes, adding that the debris is contributing to asthma and health issues. MOTION BY COUNCIL MEMBER REYNOSO to approve staff recommendation. Council Member Shorett commented that he would like to see evidence that dirt is entering people’s homes and debris hitting vehicles, stating that he is not in support of staff’s recommendation. Council Member Alexander spoke in support of staff’s recommendations and stated he spoke with residents in the fifth ward and City Council needs to re ctify this issue. Council Member Sanchez commented that it would be a better option to crush the concrete on site. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to direct staff to bring back at item by resolution/ordinance/development code to allow for the developer to immediately begin crushing and burying the hazard onsite. Council Member Calvin commented that the fifth ward residents’ concerns over the concrete pile are being overlooked and that staff needs to take responsibility, asking how this situation occurred and how concrete came to be delivered to the site . Huntley provided information on the process of how concrete came to be at the location and City Council adopted a resolution on October 21, 2020 to change the City’s process that prevented any additional grinding on site. Council Member Calvin expressed that it is appalling that this decision will cost the City an enormous amount of money and asked the Mayor if he received donations from the developer. Council Member Figueroa commented on other areas of the City that are also experiencing dumping of concrete that has led to rodent infestation and other issues 14.c Packet Pg. 347 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 18 Printed 4/9/2021 and informed residents that the areas that are experiencing these issues are just as important. Council Member Reynoso commented on Council Member Figueroa’s comment, stating that he is correct and that he will support any rectification of poor development by any means. Council Member Calvin thanked Council Member Figueroa for his comments and added that there is a large debris area in the sixth ward as well and feels that all wards should be looked at the same. Council Member Shorett commented that he is in agreement and that all wards experience illegal dumping; however this item that City Council is discussing is not illegal dumping. Mayor Valdivia inquired where the money to fund this item is coming from. City Manager Field advised that it will be funded from Undesignated Reserves. Council Member Shorett stated that Undesignated Reserves is still money that goes to the City, is designated towards the quality of life towards the City, and is still taxpayer’s money. Mayor Pro Tem Ibarra asked Public Works Director Jensen how staff estimated the 2,800 trips of concrete. Ms. Jensen advised that the information was based off of the property owner placing the concrete at the site. Mayor Pro Tem Ibarra stated that the trucks going uphill with the concrete was much more damaging than it will be when they travel downhill with the c oncrete and stated that giving another opportunity to the developer who has continuously disregarded the City is not something she can consider. Mayor Pro Tem Ibarra commented on the discussion in October, stating that she believes the topic was related to a permit to grind concrete, not to take the concrete to the site. Mr. Huntley stated that Mayor Pro Tem Ibarra is correct, adding that former Council Member Nickel brought up concerns with grinding on site. Mr. Huntley stated that City Council directed staff to modify temporary u se permit standards to not allow grinding on residential properties, and if it was allowed, it would have to be 1,000 feet from a residential property. Council Member Sanchez reiterated that the fastest and safest way to remove the concrete is to crush on site. Council Member Calvin asked if there was a resolution created stating grinding on site is not allowed. City Attorney Carvalho advised that the item on the agenda is to approve the contract. Ms. Carvalho stated City Council can give direction to staff to reverse a previously 14.c Packet Pg. 348 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 19 Printed 4/9/2021 adopted resolution; however that is not the item on the agenda tonight and the item would need to be properly placed on a future agenda. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY MAYOR PRO TEM IBARRA, to approve staff recommendation. Council Member Sanchez asked the City Attorney if he can make a motion to make an exception for crushing on site once. Ms. Carvalho advised that a motion can be made to bring that item back for discussion; however the noticed action on this agenda was to adopt a contract. MOTION BY COUNCIL MEMBER SANCHEZ, SECONDED BY COUNCIL MEMBER SHORETT, to direct staff to bring back at item to modify resolution No. 2020-265 to allow for the developer to immediately begin crushing and burying the hazard onsite (Mayor Pro Tem Ibarra, Council Members Reynoso, Calvin, and Alexander opposed). RESULT: MOTION FAILED MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY MAYOR PRO TEM IBARRA, to approve staff recommendation. RESULT: ADOPTED RESOLUTION NO. 2021-85 APPROVING THE NUISANCE ABATEMENT SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CEMEX CORPORATION OF ONTARIO, CALIFORNIA, DATED MARCH 31, 2021 IN AN AMOUNT NOT TO EXCEED $1,470,000 TO PROVIDE ABATEMENT SERVICES REQUIRED AT PRIVATE PROPERTY LOCATED ON N. PALM AVENUE, SAN BERNARDINO, CALIFORNIA 92407; APNS: 0261-011-08-0000, 0261-011-13-0000, 0261-011-14-0000 (“PROJECT”); AMENDING THE FY 2020/21 OPERATING BUDGET TO APPROPRIATE $2,000,000 FROM THE CITY’S UNDESIGNATED GENERAL FUND RESERVE TO SUPPORT THE PROJECT TO INCLUDE THE COST OF THE ABATEMENT SERVICES IN THE AMOUNT OF $1,470,000, PROJECT CONTINGENCIES IN THE AMOUNT OF $330,000, AND ANTICIPATED PROJECT WATER USE IN THE AMOUNT OF $200,000; AND AUTHORIZING THE CITY MANAGER TO EXPEND CONTINGENCIES AS NECESSARY TO COMPLETE THE PROJECT, CARRIED (4-3) MOVER: Ben Reynoso, Ward 5 SECONDER: Sandra Ibarra, Ward 2 AYES: Ibarra, Reynoso, Calvin, Alexander NOES: Sanchez, Figueroa, Shorett 14.c Packet Pg. 349 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 20 Printed 4/9/2021 31. Resolution Declaring Glen Helen Road Property as Surplus Land Recommendation Adopt Resolution No. 2021-86 of the Mayor and City Council of the City of San Bernardino, California, declaring City-owned property located on Glen Helen Road, west of the I-215 and I-15 interchange, and parallel to the Southern Pacific Railroad, as surplus land, and direct the General Manager to comply with the requirements of the Surplus Land Act, Government Code, Section 54220 et seq., for the disposition of surplus land. ITEMS TO BE CONSIDERED FOR FUTURE MEETINGS 32. Request Full Report (Within 30 Days) on the Process to Restrict Truck Routes (Council Member Alexander) MOTION BY COUNCIL MEMBER REYNOSO, SECOND BY MAYOR PRO TEM IBARRA, to bring back a report on the process to restrict truck routes. CARRIED 7-0 – Passed Unanimously 33. Direction to Develop a Policy Regarding Appointments to Boards and Commissions (Council Member Alexander) Assistant City Manager Kramer asked for clarification on the item with the details of the request. Council Member Alexander asked for the Cha rter Review Committee to be activated so the City can move forward with working on the City Charter. Ms. Kramer advised that the Committee already exists and the next scheduled meeting will occur in June. Mayor Valdivia pulled the item. No action was taken since the Committee already exists. 34. Amend the Charter to Remove the Position of the Mayor as a Full -Time Elected Official (Council Member Shorett) Council Member Shorett stated that he would like to have a discussion regarding this item and that he believes this is necessary and would provide cost savings to the City. Council Member Shorett stated that there should be discussion regarding amending the Charter to eliminate the position of the Mayor and place it on the 2022 ballot, allowing the public to decide. Council Member Figueroa supports the review of the role of Mayor and the veto power that the position has. Council Member Figueroa also cautioned that Council Members should not broadcast to the Charter Review Committee their opinions on the matter, and allow the Committee to have an unbiased discussion on the role of the Mayor. 14.c Packet Pg. 350 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 21 Printed 4/9/2021 Mayor Valdivia asked Council Member Shorett what his recommendation is. Council Member Shorett stated that he is recommending that the discussion be with City Council and he would like staff to come back with recommendations on how other cities have moved forward and how this can placed on 2022 ballot after the community and Committee provide input. MOTION BY COUNCIL MEMBER SHORETT, SECONDED BY COUNCIL MEMBER CALVIN, to bring back an item to discuss amending the Charter to remove the position of the Mayo as a full-time elected official. CARRIED 7-0 – Passed Unanimously 35. Public Comments and Comments by Council Members from the Dais at Council Meetings (Council Member Shorett) Council Member Shorett expressed that City Council should be voting after public comments are heard and commented that Commission appointments are before public comments. Council Member Shorett stated that the Public C omments should be heard before all agenda items. Council Member Shorett also commented that Council Members used to have the opportunity to make announcements. He would like to allow each Council Member up to three minutes at the beginning of the meeting to make announcements again. Council Member Alexander expressed that he is in agreement with Council Shorett and would also like to reinstitute invocation at the beginning of the meeting. Council Member Shorett advised he will add reinstituting invocation to his motion. Council Member Reynoso commented on providing invocation and would like to be mindful of other beliefs in the community. MOTION BY COUNCIL MEMBER REYNOSO, SECONDED BY COUNCIL MEMBER SANCHEZ, to bring back an item regarding public comments, announcements by Council Members, and invocation. CARRIED 7-0 – Passed Unanimously 36. Citywide Warehouse Moratorium (Council Member Reynoso) Council Member Reynoso expressed that he would like staff to bring back an item regarding a citywide warehouse moratorium in the next 30 days to discuss the action of ending all warehouse development and look into what has already been built in the City. Council Member Sanchez expressed that for the moratorium to pass, he believes it would require five votes from City Council. Council Member Sanchez stated that he would like this to be part of the larger General Plan Update and for City Council to be provided an assessment of the impact these warehouses have had. He would prefer to direct staff to come back with an assessment of the hazards of these warehouses, adding that a decision should not be made without the information. Council Member 14.c Packet Pg. 351 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Regular Meeting Minutes April 7, 2021 Mayor and City Council of the City of San Bernardino Page 22 Printed 4/9/2021 Sanchez would like to direct staff to come back with a comprehensive assessment regarding the hazards associated with the warehouses in the City. Council Member Reynoso stated that the data already exists. Council Member Shorett expressed that he does not support a moratorium and it is the wrong message to send to the development community. MOTION BY MAYOR PRO TEM IBARRA, SECONDED BY COUNCIL MEMBER REYNOSO, to bring back an item for discussion on a citywide warehouse moratorium. CARRIED 5-2 (Council Members Sanchez and Shorett voting in opposition) ITEMS TO BE REFERRED TO COMMITTEE There were no items referred to the Committee. REPORTS ON CONFERENCES/MEETINGS ATTENDED There were no reports on conferences/meetings attended from the Mayor or City Council. ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 10:16 P.M. The Mayor and City Council will adjourn to a special meeting that will be held on Thursday, April 8, 2021 via tele-conference. Open Session will begin at 5:30 p.m. BY: Genoveva Rocha, CMC City Clerk 14.c Packet Pg. 352 Attachment: Attachment 3 - 04-07-2021 Draft Regular Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All City of San Bernardino 201 North E Street San Bernardino, CA 92401 http://www.sbcity.org Mayor John Valdivia Council Members Theodore Sanchez Sandra Ibarra Juan Figueroa Fred Shorett Ben Reynoso Kimberly Calvin Damon L. Alexander DRAFT MINUTES FOR THE SPECIAL MEETING OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY, MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE HOUSING AUTHORITY, AND MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING AS THE SAN BERNARDINO JOIN POWERS FINANCING AUTHORITY THURSDAY, APRIL 8, 2021 5:30 PM CALL TO ORDER The Special Meeting of the Mayor and City Council of the City of San Bernardino was called to order at 5:34 PM by Mayor John Valdivia on Thursday, April 8, 2021, via Web- Conference. Attendee Name Title Status Arrived Theodore Sanchez Council Member, Ward 1 Present Sandra Ibarra Mayor Pro-Tem, Ward 2 Present Juan Figueroa Council Member, Ward 3 Present Fred Shorett Council Member, Ward 4 Present Ben Reynoso Council Member, Ward 5 Present Kimberly Calvin Council Member, Ward 6 Present Damon L. Alexander Council Member, Ward 7 Present John Valdivia Mayor Present Genoveva Rocha City Clerk Present Sonia Carvalho City Attorney Present Robert D. Field City Manager Present 14.d Packet Pg. 353 Attachment: Attachment 4 - 04-08-2021 Draft Special Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes April 8, 2021 Mayor and City Council of the City of San Bernardino Page 2 Printed 4/9/2021 INVOCATION AND PLEDGE OF ALLEGIANCE Mayor Valdivia asked Council Member Reynoso to lead the Pledge of Allegiance to the Flag. PUBLIC COMMENTS FOR ITEMS LISTED ON THE AGENDA Jeanette McKay, San Bernardino, commented on an increase in crime and the need for Measure S funds to be distributed to new programs that will assist the police. PRESENTATION 1. Fiscal Year 2021/22 Preliminary Budget Overview City Manager Field provided an overview the Preliminary Budget. Finance Director Whitehorn provided a presentation to the Mayor and City Council, advising that tonight is a policy view and that the details of the budget will be discussed on May 19, 2021. Council Member Alexander commented that the inclusion of vision, mission, and strategic objectives were included as they are the values of the community. Council Member Alexander would like small business grants to be included as the City should help the small businesses in our community that have been affected by COVID. Council Member Alexander commented on responsiveness to the public and that it should not be limited to the City Manager’s Office, but implemented city wide and also stated that the City should be prepared to adjust in case revenue is lost from the for the Utility User Tax measure in 2022. Council Member Shorett commented that the budget is scheduled to be presented during a normal City Council meeting and stated that in the past budget adoption workshops are held two to three meetings prior to the adoption. Council Member Shorett also commented that budget allocations were not presented and would like to know when City Council will receive information on the expenditures and how the City is going to allocate funds. City Manager Field advised that a budget calendar will be provided for City Council and that the next step in the budget process is working with all departments to provide expenditure information. Mr. Field stated that the budget is better than the City anticipated, commented on possible additional meetings regarding the budget, and added that a calendar will be provided so that City Council can understand the timeline of the budget adoption Ms. Whitehorn stated that multi-year budgeting will provide stability to staff and City Council and provide understanding of what is happenin g at all times. Ms. Whitehorn added that because of COVID, revenue projections have been challenging. Mayor Pro Tem Ibarra commented on deferred maintenance and asked if it includes street maintenance. Ms. Whitehorn clarified that street maintenance are included and are under a different maintenance category. 14.d Packet Pg. 354 Attachment: Attachment 4 - 04-08-2021 Draft Special Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes April 8, 2021 Mayor and City Council of the City of San Bernardino Page 3 Printed 4/9/2021 Mayor Pro Tem Ibarra commented on the City being short-staffed and stated it would be a great opportunity to look into a larger contract with the Center for Employment Opportunities which will provide opportunities for internships, apprenticeships, and contractors to work in various departments. Mayor Pro Tem Ibarra commented on quicker response to calls from the Police Department, spoke on lack of maintenance at bus stops, and proposed entering into an agreement with Omnitrans so that City staff can clean up the bus stops for free bus passes that will be given to residents. Mayor Pro Tem Ibarra stated that her main focus would be the Capital Improvement Projects and fixing the streets and lights, adding if possible for staff to look into solar lights. Council Member Calvin commented that City Council needs adequate time to discuss the budget before approve and asked when additional meetings will be held. Council Member Calvin stated that homelessness needs to be addressed in the budget and funds need to be allocated to ensure the City is assisting in everyway possible. Mayor Valdivia recommended that staff provide a calendar outlining the budget process so they can be prepared. City Manager advised that a calendar will be distributed next week. Council member Reynoso emphasized that the City needs to be energy efficient with their purchases in terms of power sources and that he is looking forward to the impact fees report that staff will be providing. Mayor Valdivia asked questions regarding the economic contingency reserves and clarified that staff stated it should be 15% of the budget and emergency reserves should be 10% of budget. Mayor Valdivia commented that this is a great opportunity to invest in the backlog and deferred maintenance, the importance in investing in the City’s infrastructure and it is imperative that we serve the community with responsiveness and attention to detail. Mayor Valdivia stated the Capital Improvement Program is extremely important and asked staff to explain issuing long term debt and the tools necessary to complete this process and added that he would like to see if the City has the capacity to present bonding opportunities as part of the budget discussion. Ms. Whitehorn explained that this process would enable the City to pay for larger assets over the course of a longer period of time. Council Member Alexander commented that Omnitrans has a department for maintaining the bus stops, adding that he does not agree with City staff picking up trash at the bus stops. ADJOURNMENT The meeting of the Mayor and City Council was adjourned at 6:39 P.M. 14.d Packet Pg. 355 Attachment: Attachment 4 - 04-08-2021 Draft Special Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Special Meeting Minutes April 8, 2021 Mayor and City Council of the City of San Bernardino Page 4 Printed 4/9/2021 The Mayor and City Council and the Mayor and City Council Acting as the Successor Agency to the Redevelopment Agency will adjourn to a Special Meeting to be held on Thursday, April 15, 2021, via tele-conference. The Special Meeting will begin at 5:30 p.m. BY: Genoveva Rocha, CMC City Clerk 14.d Packet Pg. 356 Attachment: Attachment 4 - 04-08-2021 Draft Special Meeting Minutes (7276 : Approval of the Mayor and City Council Meeting Minutes (All Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager Subject: Plan for Holding In-Person Meetings (All Wards Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the report on the plan for holding in -person meetings of the City Council, Boards, Commissions, and Committees beginning July 1, 2021. Background In March 2020 Governor Newsom proclaimed a State of Emergency in response to the COVID-19 pandemic and issued Executive Orders N -25-20 and N-29-20. Both executive orders relaxed to varying levels of specificity for certain provisions of the Brown Act, most notably allowing “a local legislative body or state body is authorized to hold public meetings via teleconferencing and to make public meetings accessible telephonically or otherwise electronically to all members of the public seeking to observe and to address the local legislative body.” Essentially, during the time the Governor’s State of Emergency remains in effect, the members of a board of directors are permitted to each teleconference (or web-conference) from a remote location without the requirement to include the board members’ remote location on the agenda, or open that location to the public, or post an agenda at that location. Further, local government were urged to “use sound discretion and to make reasonable efforts to adhere as closely as reasonably possible to the provisions of the Brown Act, and other applicable local laws regulating the conduct of public meetings, in order to maximize transparency and provide the public access to their meetings.” On March 18, 2020, Mayor and City Council adopted Resolution 2020-51, ratifying Proclamation 2020-01 declaring the existence of a local emergency. At the outset of the COVID-19 pandemic, and on the heels of the Governors executive orders authorizing the widespread use of teleconferencing, the City made a difficult decision to close its in - person meetings to the public. At the time a change in meeting policy was needed in order to protect public health, safety, and welfare in compliance with federal, state and local guidance. The Mayor and City Council continued to meet using teleconferencing software, with the meetings streamed live on Channel 3 and from the City’s website. The public continued to have the ability to participate by providing the City Clerk pre - recorded or written comments prior to each meeting. The City’s decision-making Boards, Commissions, and Committees continued to meet in accordance with similar rules on social distancing protocols. 15 Packet Pg. 357 7275 Page 2 Current State Rules and Guidance California currently operates under social distancing and capacity regulations that are outlined in the California Department of Health’s “Blueprint for a Safer Economy” Activity and Business Tier framework. The tier-based color coded system is adhered to by all 58 counties in the state, tracks individual counties COVID-19 transmission rate. The purple tier corresponds to widespread transmission, the red tier is substantial, the orange tier is moderate, and the yellow tier is minimal. Once a county enters the yellow tier indicating minimal transmission, nearly all businesses can reopen indoor operations with some limitations. On April 7, San Bernardino County moved into the orange tier which allowed certain indoor activities to resume with a maximum capacity of fifty percent (50%). However, according to the Activity and Business Tier chart updated by the California Department of Public Health (CDPH) on April 2, 2021, indoor gatherings with no defined guest lists continue to be strongly discouraged. Current Federal Guidance On March 7, 2021, the Centers for Disease Control and Prevention (CDC) provided updates to its ‘Events & Gatherings’ advice. The CDC continues to discourage large events and gatherings when possible, ask citizens to consider the level of risk when deciding to host an event, continues to promo te healthy behaviors to reduce risk when large events are held, and encourages organizers to make preparations to if someone gets sick during or after an event such as contract tracing. The CDC guidance on this topic has not been updated since March 7, 2021. Discussion The City of San Bernardino has been slowly reopening the City’s operations to in person activities while continuing to provide services remotely in accordance with federal, state, and county public health guidelines. Given that Governor Gavi n Newsom has recently announced that on June 15, 2021, he intends to begin the process of fully reopening the state’s economy it is important to prepare a plan for returning to in -person meetings of the City Council, Boards, Commissions, and Committees. In light of continued restrictions on indoor group gatherings and the operational challenges associated with adhering to the federal, state and county public health guidelines for these types of activities, staff recommends waiting to resume in person meetings until after the State’s boarder reopening which is currently set to take place on June 15th. This will allow additional time for the County to make progress in increasing the numbers of people that have access to a COVID -19 vaccination and ensure that both infection and hospitalization rates resulting from COVID -19 infections continue to decline. With this in mind staff recommends having in-person meetings resume beginning July 1, 2021, with the beginning of the fiscal year . It is important to note that even after a July 1, risk reduction measures will likely continue to be required for in - person meetings. These measures will probably include mask mandates, adequate ventilation, and social distancing for indoor activities. 15 Packet Pg. 358 7275 Page 3 2020-2025 Key Strategic Targets and Goals The development of a plan to resume holding in -person meetings in keeping with federal, state, and county public health guidelines in association with the COVID -19 Pandemic aligns with Key Target No. 2: Focused, Aligned Leadership and Unif ied Community. Fiscal Impact There is no fiscal impact associated with the implementation of the recommended plan to resume in person meetings beyond staff time and the equipment and supplies that have been purchased to allow the City to follow federal, s tate and county public health guidelines to slow the spread of COVID-19. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the report on the plan for holding in -person meetings of the City Council, Boards, Commissions, and Committees beginning July 1, 2021. Attachments Attachment 1 Blueprint for a Safer Economy Ward: All Synopsis of Previous Council Actions: March 12, 2020 City Manager issued Proclamation No. 2020-01 proclaiming the existence of a local emergency. March 18, 2020 Mayor and City Council adopted Resolution 2020 -51, ratifying Proclamation 2020-01 and declaring the existence of a local emergency. 15 Packet Pg. 359 1SECTORSTier 1Widespread(Case Rate >7 and Test Positivity >8%)Tier 2Substantial(Case Rate 4-7 and Test Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 and Test Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 and Test Positivity <2%)Post 2milliondosesadministered in first Healthy Places Index quartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Critical InfrastructureOpen with modificationsOpen with modificationsOpen with modificationsOpen with modificationsGatherings*- Social, informalgatherings- No defined guest listrequired- No testing orvaccination requiredCurrent:Outdoor gatherings only with modificationsMax 3 householdsEffective April 15, 2021Outdoor onlyMax 3 householdsCurrent:Indoor gatherings strongly discouraged, allowed with modificationsMax 3 households Effective April 15, 2021Outdoor • Max 25 peopleIndoorIndoor gatherings strongly discouraged, allowed with modifications (no food/drink except when following the standards in the guidance)Current:Indoor gatherings strongly discouraged, allowed with modificationsMax 3 householdsEffective April 15, 2021Outdoor Max 50 peopleIndoorIndoor gatherings strongly discouraged, allowed with modifications (no food/drink except when following the standards in the guidance)Current:Indoor gatherings strongly discouraged, allowed with modificationsMax 3 householdsEffective April 15, 2021Outdoor • Max 100 peopleIndoorIndoor gatherings strongly discouraged, allowed with modifications (no food/drink except when following the standards in the guidance)15.aPacket Pg. 360Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings 2SECTORSTier 1Widespread(Case Rate >7 andTest Positivity >8%)Tier 2Substantial(Case Rate 4-7 andTest Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 andTest Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 andTest Positivity <2%)Post 2milliondosesadministered in first Healthy Places IndexquartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Max 25% capacity in settings where capacity limits exist and up to 3 households or 10 peopleMax 25% capacity in settings where capacity limits exists or 25 people or whichever is fewerMax 50% capacity in settings where capacity limits exist or 50 people or whichever is fewerPrivate Events**(meetings/receptions/conferences)Requiredmitigation measures:-Purchased ticketsor defined guest list-Seating chart/Assigned seating-Testing and vaccination can increase capacity-No intermingling of multiple private eventsEffective April 15, 2021Outdoor onlyMaximum 25 peopleIf all guests are tested or show proof of full vaccination: Max100Effective April 15, 2021OutdoorMaximum of 50 peopleIf all guests are tested or show proof of full vaccination: Max 200 IndoorIf all guests are tested or show proof of full vaccination: Max 100 people Effective April 15, 2021OutdoorMaximum of 100 peopleIf all guests are tested or show proof of full vaccination: Max 300 IndoorIf all guests are tested or show proof of full vaccination: Max 150 people Effective April 15, 2021OutdoorMaximum of 200 peopleIf all guests are tested or show proof of full vaccination: Max 400 IndoorIf all guests are tested or show proof of full vaccination: Max 200 people15.aPacket Pg. 361Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings 3SECTORSTier 1Widespread(Case Rate >7 andTest Positivity >8%)Tier 2Substantial(Case Rate 4-7 andTest Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 andTest Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 andTest Positivity <2%)Post 2milliondosesadministered in first Healthy Places IndexquartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Indoor Seated Live Events and Performances**Closed Effective April 15, 2021: All venues:In-state visitors only, check for current CDPH Travel Advisoryin effectWeekly worker testing program All tickets delivered digital, advanced purchase only Pre-designated eating area (no eating/drinking allowed in seats) – 6 feet of distance. Suites 25% capacity, max three households. Venues: 0-1,500 Maximum 10% or 100 people25% if all guests are tested or show proof of full vaccinationEffective April 15, 2021All venues:In-state visitors only, check for current CDPH Travel Advisoryin effectWeekly worker testing program All tickets delivered digital, advanced purchase only Pre-designated eating area (no eating/drinking allowed in seats) – 6 feet of distance. Suites 25% capacity, max three households. Venues: 0-1,500Maximum 15% or 200 people35% if all guests are tested or show proof of full vaccinationEffective April 15, 2021All venues:In-state visitors only, check for current CDPH Travel Advisoryin effectWeekly worker testing program All tickets delivered digital, advanced purchase only Pre-designated eating area (no eating/drinking allowed in seats) – 6 feet of distance. Suites 25% capacity, max three households. Venues: 0-1,500Maximum 25% or 300 people 50% if all guests are tested or show proof of full vaccination15.aPacket Pg. 362Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings 4SECTORSTier 1Widespread(Case Rate >7 andTest Positivity >8%)Tier 2Substantial(Case Rate 4-7 andTest Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 andTest Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 andTest Positivity <2%)Post 2milliondosesadministered in first Healthy Places IndexquartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Venues: 1,501 and above20% ifall guests are tested or show proof of full vaccinationVenues: 1,501 and above10% capacity or 2000, whatever is fewer; with modifications, and no eating/drinking 35% if all guests are tested or show proof of full vaccinationVenues: 1,501 and above10% capacity or 2000, whatever is fewer; with modifications, and no eating/drinking 50%if all guests are tested or show proof of full vaccinationLimited ServicesOpen with modificationsOpen with modificationsOpen with modificationsOpen with modificationsOutdoor Playgrounds & Outdoor Recreational FacilitiesOpen with modificationsOpen with modificationsOpen with modificationsOpen with modificationsHair Salons & BarbershopsOpen indoors with modificationsOpen indoors with modificationsOpen indoors with modificationsOpen indoors with modificationsAll Retail(including critical infrastructure, except standalone grocers)Open indoors with modificationsMax 25%capacityOpen indoors with modificationsMax 50%capacityOpen indoors with modificationsOpen indoors with modifications15.aPacket Pg. 363Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings 5SECTORSTier 1Widespread(Case Rate >7 andTest Positivity >8%)Tier 2Substantial(Case Rate 4-7 andTest Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 andTest Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 andTest Positivity <2%)Post 2milliondosesadministered in first Healthy Places IndexquartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Shopping Centers (Malls, Destination Centers, Swap Meets)Open indoorswith modificationsMax 25%capacityClosed commonareasClosed food courtsOpen indoorswith modificationsMax 50%capacityClosed common areasReduced capacity food courts (see restaurants)Open indoorswith modificationsClosed commonareasReduced capacity food courts (see restaurants)Open indoorswith modificationsReduced capacity food courts (see restaurants)Personal Care ServicesOpen indoorswith modificationsOpen indoorswith modificationsOpen indoorswith modificationsOpen indoorswith modificationsMuseums, Zoos, and AquariumsOutdoor only withmodificationsOpen indoors with modificationsIndoor activities max 25%capacityOpen indoors with modificationsIndoor activities max 50%capacityOpen indoors with modificationsPlaces of WorshipOutdoor encouragedIndoor strongly discouraged, allowed with modifications Max 25% capacityOpen indoorswith modificationsMax 25% capacityOpen indoorswith modificationsMax 50% capacityOpen indoorswith modificationsMax 50%capacityMovie TheatersOutdoor only withmodificationsOpen indoors withmodifications Max 25% capacity or 100 people, whichever is fewerOpen indoorswith modifications Max 50% capacity or 200 people, whichever is fewerOpen indoorswith modificationsMax 50%capacity15.aPacket Pg. 364Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings 6SECTORSTier 1Widespread(Case Rate >7 andTest Positivity >8%)Tier 2Substantial(Case Rate 4-7 andTest Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 andTest Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 andTest Positivity <2%)Post 2milliondosesadministered in first Healthy Places IndexquartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Hotels and LodgingOpenwith modificationsOpenwith modifications+Fitness centers (+10%)Openwith modifications+Fitness centers(+25%) +Indoor poolsOpenwith modifications+Fitness Centers(50%)+Spa facilitiesetc.Gyms and Fitness CentersOutdoor only withmodificationsOpen indoorswith modificationsMax 10% capacity +ClimbingwallsOpen indoorswith modificationsMax 25% capacity +IndoorpoolsOpen indoorswith modificationsMax 50% capacity +Saunas+SteamroomsRestaurantsOutdooronly withmodificationsOpen indoorswith modificationsMax 25% capacity or 100 people, whichever is fewer Open indoorswith modificationsMax 50% capacity or 200 people, whichever is fewerOpen indoorswith modificationsMax 50%capacityWineries, Breweries and DistilleriesOutdoor only with modificationsReservations90-minute time limitSeating/tables onlyLimited hours (service for on-site consumption closed by 8pm)Outdoor only with modificationsReservations90-minute time limitSeating/tables onlyLimited hours (service for on-site consumption closed by 8pm)Open indoors with modificationsMax 25% capacity indoors, or 100 people, whichever is fewerOpen indoors with modificationsMax 50% capacity or 200 people indoors, whichever is fewer15.aPacket Pg. 365Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings 7SECTORSTier 1Widespread(Case Rate >7 andTest Positivity >8%)Tier 2Substantial(Case Rate 4-7 andTest Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 andTest Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 andTest Positivity <2%)Post 2milliondosesadministered in first Healthy Places IndexquartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Bars(where no meal provided; follow restaurant guidance where meal is provided)ClosedClosedOpen outdoorswith modificationsOpen indoorswith modificationsMax 25% capacity indoors, or 100 people, whichever is fewerFamily Entertainment Centers***Outdoor onlywithmodificationsOutdoor onlywithmodificationsIndoorMax 25% capacity50% if all guests are tested orshow proof of full vaccination With modifications100% masking except for food and beverage serviceFood/beverage consumption must be restricted to designated areas separated from activity areaService of alcohol without meals must follow bar guidance (outdoor only)IndoorMax 50% capacity 75% if all guests are testedorshow proof of full vaccinationWith modifications100% masking except for food and beverage serviceFood/beverage consumption must be restricted to designated areas separated from activity area15.aPacket Pg. 366Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings 8SECTORSTier 1Widespread(Case Rate >7 andTest Positivity >8%)Tier 2Substantial(Case Rate 4-7 andTest Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 andTest Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 andTest Positivity <2%)Post 2milliondosesadministered in first Healthy Places IndexquartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Cardrooms, Satellite WageringOutdoor only withmodificationsOutdoor only withmodificationsOpen indoorswith modifications Max 25%capacityOpen indoorswith modificationsMax 50%capacityOfficesRemoteRemoteOpen indoorswith modificationsEncourageteleworkOpen indoorswith modificationsEncourageteleworkOutdoor Live Eventswith Assigned Seats and Controlled Mixing (e.g., sports and live performances) 100 people or fewer Regional visitors (120 miles)Advanced reservations onlyNo concessions or concourse salesMax20%, includes suites with 25% occupancy per suite and suites no more than 3 householdsWeekly worker testing programIn-state visitors only, check for current CDPH Travel Advisoryin effect Advanced reservations only Primarily in-seat concessions (no concourse sales)Max 33%, includes suites with 25% occupancy per suiteWeekly worker testing program In-state visitors only, check for current CDPH Travel Advisoryin effect Primarily in-seat concessions (no concourse sales)Max 67% if all guests are tested or show proof of full vaccinationMax 67%, includes suites with 25% occupancy per suite In-state visitors only, check for current CDPH Travel Advisoryin effect Primarily in-seat concessions (no concourse sales)15.aPacket Pg. 367Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings 9SECTORSTier 1Widespread(Case Rate >7 andTest Positivity >8%)Tier 2Substantial(Case Rate 4-7 andTest Positivity 5-8%)Tier 3Moderate(Case Rate 1-3.9 andTest Positivity 2-4.9%)Tier 4Minimal(Case Rate <1 andTest Positivity <2%)Post 2milliondosesadministered in first Healthy Places IndexquartileCR >10CR 4-10CR 1-3.9CR <1Post 4milliondosesadministered in first Healthy Places Index quartileCR >10CR 6-10CR 2-5.9CR <2Amusement Parks/Fairs****ClosedMax 15%Small Groups - Max 10 people or 3 household groups with no intergroup mixingIndoor capacity max 15% with time restrictionsNo indoor diningWeekly worker testing program In-state visitors only, check for current CDPH Travel Advisoryin effect Online ticket purchases onlyMax 25%Indoor capacity max 25% with time restrictionsWeekly worker testing program With other modificationsIn-state visitors only, check for current CDPH Travel Advisoryin effect Max 35%Indoor capacity max 25% with time restrictionsWeekly worker testing program With other modificationsIn-state visitors only, check for current CDPH Travel Advisoryin effect Overnight Sleepaway Camps *****Closed Effective June 1, 2021:Open with modificationsEffective June 1, 2021:Open with modificationsEffective June 1, 2021:Open with modificationsUpdated on April 2, 2021: *Updated Gatherings effective April 15, 2021**Added private eventsandindoor seated live events and performanceseffective April 15, 2021 ***Updated Family Entertainment Centers ****Added Fairs to Amusement ParksUpdated on March 11, 2021:*****Regardless of trigger being met, these activities (overnight sleepaway camps) cannot begin any sooner than June 1, 2021.15.aPacket Pg. 368Attachment: Attachment 1 - Blueprint for a Safer Economy (7275 : Plan for Holding In-Person Meetings Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Nuisance Abatement Program Update (All Wards) Recommendation It is recommended that the Mayor and the City Council of the City of San Bernardino, California, receive and file the report on the implementation of the Nuisance Abatement Program. Background There is a widespread need throughout the City to abate dilapidated and abandon structures and to remediate other issues such as illegal dumping, which collectively represent a threat to public health, safety and welfare. Such conditions als o diminish general quality of life for residents. The Mayor and City Council have directed staff to devise mechanisms for addressing this pressing need. In response, staff will be implementing a city-wide Nuisance Abatement Program which will be led by the City’s Code Enforcement Division. The establishment of a specialized team of Code Enforcement Officers to focus on the more significant public nuisance issues city -wide will begin to improve the quality of life in San Bernardino. As the City’s revenues begin to rebound, there is now an opportunity to consider strategically increasing service levels in critically underfunded programs in the organization including the City’s code enforcement and abatement efforts. On December 16, 2020, staff presented the idea of establishing a Nuisance Abatement Program to address the most significant public nuisance issues in the City and requested that the City Council set aside $1 million in one-time funding to support the program. As part of this process staff committed to returning with a more detailed program operations plan outlining how the City will identify and prioritize the properties that should be abated as part of the program. Discussion The Nuisance Abatement Program will be run by a specialized team of two officers within the Code Enforcement Division who will be devoted to aggressively enforcing significant public nuisances and land use related issues city-wide. The objective of the program will be to proactively preserve and enhance the quality of l ife in our community. Examples of nuisance abatement criteria for selecting cases for abatement include: 16 Packet Pg. 369 7077 Page 2 Unsecured vacant and abandoned buildings and structures that are not maintained from transitory entry that increase criminal activity, deterioration, and instability in neighborhoods; Fire damaged buildings and structures; Structures with sustained structural damage and/or collapse hazard; Dilapidated or deteriorated structure creating a public health hazard; Unpermitted buildings and structures; Unreinforced masonry buildings or structures that are abandoned; and Nuisance cases that have a significant impact on the surrounding neighborhood (e.g., hoarding, health and safety hazards, attracting transients and/or criminal activity, excessive trash and debris, illegal dumping). There are a variety of open and pending Code Enforcement cases that are categorized as either Hazardous Conditions or Sub-Standard Housing that need to be addressed. These cases are located throughout the City and fall into the category of requiring public nuisance abatement (Attachment 1 - Flowchart). Since additional staffing has been approved by City Council, Code Enforcement will begin prioritizing the existing cases beginning with the most severe and egregious. Attachment 2 provides pictures of some of the more severe nuisances that have been abated. Cases will be prioritized based on the ranking system below. Priority I will include those cases needing to follow the more arduous public nuisance abatement process. These will, in most cases, be managed by the Nuisance Abatement Program. Priority II and III are less critical and will be managed by the remaining Code Enforcement Officers. Priority I - Imminent threat to public health and safety o Unsecured vacant and abandoned buildings and structures that are not maintained from transitory entry that increase criminal activity, deterioration, and instability in neighborhoods o Fire damaged buildings and structures o Structures with sustained structural damage and/or collapse hazard o Dilapidated or deteriorated structure creating a public health hazard o Unpermitted buildings and structures o Unreinforced masonry buildings or structures that are abandoned o Nuisance cases that have a significant impact on the surrounding neighborhood (e.g., hoarding, health and safety hazards, attracting transients and/or criminal activity, excessive trash and debris, illegal dumping) Priority II - Serious Code Violations o Non-permitted electrical, mechanical and plumbing work o Substandard housing conditions o Illegal garage conversions o Overgrown weeds - hillside areas Priority III - Standard Code Violations o Inoperable vehicles o Auto repair or dismantling o Parking in the front yard 16 Packet Pg. 370 7077 Page 3 o Unsightly and deteriorating buildings o Outdoor storage visible from a public street o Vacant lots o Removal of required landscaping in the front yard o Graffiti o Operating without a business license 2020-2025 Key Strategic Targets and Goals The establishment of a Nuisance Abatement Program aligns with Key Target No. 3: Improve Quality of Life. Specifically, the objective of this team would be to proactively preserve and enhance the quality of life in our community. Fiscal Impact The amended FY2020/21 budget includes two additional Code Enforcement Officers dedicated to the nuisance abatement program in addition to $1 million in one -time funding to abatement nuisance properties city wide. The abatement funding will be used on professional contractual services, and associated legal fees, to clean/or abate properties as needed following the established program selection protocols. Once the abatement is complete, a lien will be recorded against the property to recover the cost of the abatement including administrative costs and associated l egal fees. In the future when the property is sold, the City’s costs will be paid back to the City and can be applied to the nuisance abatement program. Conclusion It is recommended that the Mayor and the City Council of the City of San Bernardino, California, receive and file the report on the implementation of the Nuisance Abatement Program. Attachments Attachment 1 Public Nuisance Abatement Flowchart Attachment 2 Pictures of successful nuisance abatement Ward: Citywide Synopsis of Previous Council Action: December 2, 2020 Mayor and City Council recommended that the City consider funding a nuisance abatement program. 16 Packet Pg. 371 Nuisance Abatement Flow Chart Issuance of Notice to Abate (Compliance due in 10 days) Property Owner Complied Case Closed Reinspection Property Non-Compliant: Obtain Inspection Abatement Warrant (Valid for 14 Days) City Contractors Abate Violations Notice of Abatement Costs (Property Owner May Appeal or Pay Fees) OR Administrative Hearing (Hearing Order Will Set Time Frame from 30 - 60 Days) Non-Compliant Preparation of Demolition Warrant 30 - 45 Days Hearing Order Expired Non-Compliant Owner Submit for Receivership Notice of Abatement Costs 45 Days Complaint or Proactive Inspection Hazardous Condition Notice of Abatement Costs (Property Owner May Appeal or Pay Fees) OR Administrative Hearing (Hearing Order Will Set Time Frame from 30 - 60 Days) Fire Damaged Structures (After Hearing Order Expires) Preparation & Execution of Asbestos Warrant 30 - 40 Days Abatement Costs Liened if not Paid per Municipal Code 16.a Packet Pg. 372 Attachment: Attachment 1 - Nuisance Abatement Program.Flow Chart (7077 : Nuisance Abatement Program Update (All Wards)) 555 W. Virginia Street Residential single family vacant structure (Residential Medium zoned) was seriously fire damaged on 04/26/2019. Because it was a collapse hazard, the Fire Department requested an emergency knock-down. The knock down was completed and fenced. Code personnel worked with the property owners who voluntarily completed the asbestos survey and demolition clean-up. BEFORE AFTER 16.b Packet Pg. 373 Attachment: Attachment 2 - Nuisance Abatement Progra Pictures 4.21.21 (7077 : Nuisance Abatement Program Update (All Wards)) 1446 N. Mt. Vernon Avenue Property was a vacant commercial building (Commercial-General1 zoned) with code violations dating to 03/2019. The Fire Department responded numerous times with the final fire occurring on 09/24/2020. Code responded approximately 15 times based on complaints and to re-secure the structure. Due to the severity of the burn on 09/24/2020, the Fire Department ordered an emergency knock-down. BEFORE AFTER 16.b Packet Pg. 374 Attachment: Attachment 2 - Nuisance Abatement Progra Pictures 4.21.21 (7077 : Nuisance Abatement Program Update (All Wards)) 1751 Garner Avenue Property is a single family residence (Residential suburban zoned) with code violations dating to 07/2017. Severe hoarding conditions and the owner walked away from the property after foreclosure leaving the debris behind. Due to the impact on the neighboring properties a warrant abatement was completed. Property has since sold and was rehabbed by the buyer. AFTER BEFORE 16.b Packet Pg. 375 Attachment: Attachment 2 - Nuisance Abatement Progra Pictures 4.21.21 (7077 : Nuisance Abatement Program Update (All Wards)) 4436 4th Avenue Property was a vacant single family residence on an acre parcel (Residential Suburban zoned) with code violations dating to 11/2018. Structure was severely fire damaged and the Fire De- partment ordered an emergency knock down on 03/16/2019. There were also multiple inop- erable vehicles on the parcel. Warrant abatements and demolition completed. All vehicles were towed from the parcel. BEFORE AFTER 16.b Packet Pg. 376 Attachment: Attachment 2 - Nuisance Abatement Progra Pictures 4.21.21 (7077 : Nuisance Abatement Program Update (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: 5TH Street Gateway Purchase and Sale Agreetment (Ward 1) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-87 approving the Purchase and Sale Agreement and Joint Escrow Instructions between the City of San Bernardino and GATEWAY SB, LLC, a limited liability company, with respect to the Real Property located along West Spruce Street between North “G” Street and North “H” Street and along West 5th Street West of North “G” Street, San Bernardino, California (APNs 0134-053-20 to 0134-053-23, 0134-053-025, 0134-053-26; 0134-054-07 to 0134-054-09; and 0134-093-07 to 0134-093-09), and approving certain related actions; and 2. Adopt Resolution No. 2021-89 acting in the capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino approving the Purchase and Sale Agreement and Joint Escrow Instructions between the City of San Bernardino acting in the capacity as the Successor Housin g Agency of the Redevelopment Agency of the City of San Bernardino and GATEWAY SB, LLC, a limited liability company, with respect to the Real Property located along West 5th Street, North “G” Street, and North “H” Street in the City of San Bernardino, California, County of San Bernardino (APNs 0134-054-24 to 00134- 054-26; 0134-061-21, 0134-061-22, 0134-061-25, 0134-061-30; 0134-093-05, 0134-093-06; and 0134-101-02 to 0134-101-06, 0134-101-28) and approving certain related actions. Background Pursuant to Health and Safety Code (“HSC”) section 34172 (a) (1), the Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012. Consistent with the provisions of the HSC, the Mayor and City Council of the City of San Bernardino (“City”) elected to serve in the capacity of the Successor Agency to the Redevelopment Agency of the City of San Bernardino (“Successor Agency”) and elected to serve in the capacity of the Successor Housing Agency to the 17 Packet Pg. 377 7176 Page 2 Redevelopment Agency of the City of San Bernardino (“Successor Housing Agency”). The City and the Successor Housing Agency are owners of approximately 6.52 acres of vacant commercially zoned real property located along West 5th Street, between North “G” Street and North “H” Street, and along West Spruce Street, between North “G” Street and North “H” Street. The City owns approximately 2.21 acres, (APNs 0134 - 053-20 to 0134-053-23, 0134-053-025, 0134-053-26; 0134-054-07 to 0134-054-09; and 0134-093-07 to 0134-093-09) and the Successor Housing Agency owns approximately 4.31 acres, (APNs 0134-054-24 to 0134-054-26; 0134-061-21, 0134-061-22, 0134-061- 25, 0134-061-30; 0134-093-05 and 0134-093-06; and 0134-101-02 to 0134-101-06, and 0134-101-28) (separately known as the “City-owned Property” and the “Successor Housing Agency-owned Property,” respectively, and together known as the “5th Street Gateway Property”). The City acquired the City-owned Property through the implementation of the Successor Agency’s Long Range Property Management Plan (“LRPMP”) and consistent with the provisions of the HSC, the Successor Housing Agency acquired the Successor Housing Agency-owned Property from the former Redevelopment Agency’s housing stock. On December 6, 2017, the City issued an Invitation for Letters of Interest (“LOI”) that were to include detailed proposals from developers concerning the development of the 5th Street Gateway Property and subsequently, the City received eight (8) proposals by the January 31, 2018. At the conclusion of the review process, staff de termined that ICO’s submittal was the most responsive to the LOI, whereupon City staff recommended that the City engage ICO in negotiations pursuant to an Exclusive Right to Negotiate agreement (“ERN”). On September 19, 2018, the City and ICO entered into an ERN. On April 5, 2019, the City engaged Colliers International Valuation & Advisory Services, LLC (“Colliers”) to appraise the 5th Street Gateway Property. On May 29, 2019, Colliers submitted its appraisal with a Fair Market Value (“FMV”) for the 5 th Street Gateway Property of $2,130,000, a copy of which is attached to the City Resolution as Exhibit “C” and Successor Housing Agency Resolution as Exhibit “B.” If ICO desired to purchase the 5th Street Gateway Property in bulk, as opposed to purchasin g it in development phases, then the FMV of the 5th Street Gateway Property is $1,700,000. In discussion with ICO, they agreed to purchase the properties in bulk and requested to proceed with the purchase and development of 5th Street Gateway Property. In fall of 2019, staff presented the City’s appraisal and offer by ICO to the City Council in closed session. The Mayor and the City Council directed staff to proceed with real property negotiations that included allowing ICO to obtain entitlements for Ph ase I of the 5th Street Gateway Project before the execution of the PSA. Moreover, this would allow staff time to complete the Phase I and II environmental studies, a critical component before escrow can close on the property. It is ICO’s intention to be gin with the development of Phase I that includes the commercial development of the properties on the north side of 5th Street between G and H Street. Once Phase I is completed and 17 Packet Pg. 378 7176 Page 3 occupied, ICO would proceed with the development of remainder of the comme rcial properties. Discussion Entitlements: On October 13, 2020, the Planning Commission approved Conditional Use Permit 20-12, Public Convenience or Necessity Letter 20 -02 and Subdivision 20-04 (Tentative Parcel Map 20216) to allow the lot line adjustment of eleven (11) parcels This would allow the development of a restaurant with drive -thru (Starbucks) containing approximately 2,200 square feet (Parcel 1), restaurant with drive -thru (Del Taco) containing approximately 2,800 square feet (Parcel 2), and a 7/11 gas station with six (6) fueling pump islands and twelve (12) fueling pump stations and 24 -hour convenience store with an Alcoholic Beverage Control Type-20 (Off-Sale Beer and Wine) License (Parcel 3), and restaurant with drive -thru (Not Identified) containing approximately 2,400 square feet (For Future Development) to the north of Parcel 1. Since the approval of the entitlements, ICO and the City have received interest from a variety of regional and national tenants. In-N-Out has voiced interest in purchasing property to the east of their existing facility to increase the queuing capacity and Sonic Drive-In is in negotiations with ICO. Environmental Studies: The 5th Street Gateway Property has a history of former land uses that contained and/or supported gasoline stations and auto repair shops, which may have resulted in unintentional environmental contamination of the soil by Hazardous Waste. Therefore, as a part of the purchase and sale negotiations with ICO, the City commissioned the following environmental assessments for the 5th Street Gateway Property, conducted by Ninyo and Moore: Phase I Environmental Site Assessment Report dated July 11, 2019; Limited Phase II Environmental Site Assessment dated August 26, 2020 and Additional Limited P hase II Environmental Site Assessment dated February 9, 2021. As a result of the above referenced commissioned environmental reports, several areas of recognized environmental concerns were identified that now require environmental remediation. While in negotiations with the City, ICO estimated the cost for the environmental remediation to be approximately $171,420, which includes a 20% contingency line item (cost estimate $142,850 plus 20% contingency of $28,570), a copy of ICO’s estimate, as prepared by KCE Matrix, Consulting Engineers, is attached to the Successor Housing Agency Resolution as Exhibit D. The Successor Housing Agency has thoroughly reviewed ICO’s estimated environmental remediation cost and finds it to be fair and reasonable. In exchange for ICO completing the environmental remediation, the Successor Housing Agency has opted to credit the FMV of the Successor Housing Agency-owned Property by the estimated remediation cost $171,420, for a revised FMV of $1,088,580. Together with the FMV of the City-owned Property of $440,000, the FMV of the 5th Street Gateway Property is revised to $1,528,580. ICO has agreed to purchase the 5th Street Gateway Property parcels in bulk for 17 Packet Pg. 379 7176 Page 4 $1,528,580 (“Purchase Price”) and has formed GATEWAY SB, LLC, a limited liability company (“GSB”) to purchase and develop the 5th Street Gateway Property. Since ICO has agreed to pay the Purchase Price of the 5th Street Gateway Property, and ICO has successfully performed certain actions and responsibilities under its ERN, the City has concluded that the Purchase Price for the 5 th Street Gateway Property is fair and reasonable. Pursuant to the Government Code Section 54234 (a) (1), the disposition of the 5 th Street Gateway Property is not subject to the changes instituted to the Surplus Land Act by AB 1486 because the ERN was entered into prior to September 30, 2019. The Purchase and Sale Agreements and Joint Escrow Instructions (“Purchase and Sale Agreements”) between the City and GSB and the Successor Housing Agency and GSB, with respect to the 5th Street Gateway Property, are attached to the Resolutions as Exhibit “D” and Exhibit “C,” and to this Staff Report as Attachment “2” and Attachment “4,”. 2020-2025 Key Strategic Targets and Goals Approval of these Purchase and Sale Agreements for the 5th Street Gateway Property aligns with Key Target No. 1: Financial Stability. The sale of the 5th Street Gateway Property will secure a long-term revenue source in the form of new sales tax revenue. Fiscal Impact While there is no negative fiscal impact to the City, consistent with the provisions of the HSC, the sale proceeds from the City-owned Property will be distributed among the former Redevelopment Agency’s Taxing Entities and the sale proceeds from the sale of the Successor Housing Agency-owned Property will be retained by the City for housing purposes. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-87 approving the Purchase and Sale Agreement and Joint Escrow Instructions between the City of San Bernardino and GATEWAY SB, LLC, a limited liability company, with respect to the Real Property located along West Spruce Street between North “G” Street and North “H” Street and along West 5th Street West of North “G” Street, San Bernardino, California (APNs 0134-053-20 to 0134-053-23, 0134-053-025, 0134-053-26; 0134-054-07 to 0134-054-09; and 0134-093-07 to 0134-093-09), and approving certain related actions; and 2. Adopt Resolution No. 2021-89 acting in the capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino approving the Purchase and Sale Agreement and Joint Escrow Instructions between the City of San Bernardino acting in the capacity as the Successor Housing Agency of the Redevelopment Agency of the City of San Bernardino and GATEWAY SB, 17 Packet Pg. 380 7176 Page 5 LLC, a limited liability company, with respect to the Real Property located along West 5th Street, North “G” Street, and North “H” Street in the City of San Bernardino, California, County of San Bernardino (APNs 0134-054-24 to 00134- 054-26; 0134-061-21, 0134-061-22, 0134-061-25, 0134-061-30; 0134-093-05, 0134-093-06; and 0134-101-02 to 0134-101-06, 0134-101-28) and approving certain related actions. Attachment Attachment 1 Resolution 2021-87 Attachment 2 Resolution 2021-87; Exhibits A-D Attachment 3 Resolution 2021-89 Attachment 4 Resolution 2021-89; Exhibits A-C Ward: 1 Synopsis of Previous Council Actions: September 19, 2018 The Mayor and City Council adopted Resolution No. 2018- 251 approving an exclusive right to negotiate agreement with ICO Real Estate Group, Inc. 17 Packet Pg. 381 Resolution No. 2021-87 RESOLUTION NO. 2021-87 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPROVING THE PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN THE CITY OF SAN BERNARDINO AND GATEWAY SB, LLC, A LIMITED LIABILITY COMPANY, WITH RESPECT TO THE REAL PROPERTY LOCATED ALONG WEST SPRUCE STREET BETWEEN NORTH “G” STREET AND NORTH “H” STREET AND ALONG WEST 5TH STREET WEST OF NORTH “G” STREET, SAN BERNARDINO, CALIFORNIA (APNS 0134-053-20 TO 0134-053-23, 0134-053- 025, 0134-053-26; 0134-054-07 TO 0134-054-09; AND 0134- 093-07 TO 0134-093-09), AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, pursuant to Health and Safety Code (“HSC”) Section 34172 (a) (1), the Redevelopment Agency of the City of San Bernardino (“Redevelopment Agency”) was dissolved on February 1, 2012; and WHEREAS, consistent with the provisions of the HSC, on January 9, 2012, the Mayor and City Council of the City of San Bernardino (”City”) elected to serve in the capacity of the Successor Agency to the Redevelopment Agency of the City of San Bernardino (“Successor Agency”); and WHEREAS, pursuant to HSC section 34179, the Successor Agency previously established the San Bernardino Oversight Board (“Oversight Board”) to assist in the wind-down of the former Redevelopment Agency; and WHEREAS, pursuant to HSC § 34176 (a) (2), the Successor Housing Agency was required to submit a Housing Asset Transfer form (“HAT”) to the California Department of Finance (“DOF”) that lists, among other things, all of the low- and moderate-income housing fund real property assets, as more specifically defined in HSC § 34176 (e), to be retained by the Successor Housing Agency; and WHEREAS, consistent with the foregoing, the Successor Housing Agency submitted its HAT to DOF for review and thereafter provided DOF with pertinent supplemental and back- up information that resulted in DOF’s August 11, 2016 approval of the HAT, as amended (“Amended Hat”); and WHEREAS, the Amended HAT, consists of 56 parcels, which were transferred to the Successor Housing Agency on January 3, 2017 (“SHA Parcels”); and WHEREAS, on September 15, 2015, the Successor Agency submitted its Oversight Board-approved Long-Range Property Management Plan (“LRPMP”) to DOF; and 17.a Packet Pg. 382 Attachment: Attachment 1 - Resolution 2021-87 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-87 WHEREAS, on December 31, 2015, DOF approved the Successor Agency’s LRPMP; and WHEREAS, the LRPMP includes, among other designated sites, seven (7) sites which are designated for future development use by the City, which were transferred to the City on August 16, 2016; and WHEREAS, two (2) of the seven (7) LRPMP-designated future development use are comprised of approximately 2.21 acres of vacant land and generally located along West Spruce Street between North “G” Street and North “H” Street (APNs 0134-053-20 to 0134-053-23; 0134-053-25; 0134-053-26; 0134-054-07 to 0134-054-09; 0134-093-07 to 0134-093-09), are identified within the LRPMP as Site Nos. 22 and 23 (“Future Development Property”), and are more fully described in Exhibit A attached hereto, which is an excerpt from the LRPMP; and WHEREAS, the Future Development Property, in combination with certain SHA Parcels, which are generally located along 5th Street between North “G” Street and North “H” Street and along North “G” Street north of 5th Street (APNs 0134-054-24 to 0134-054-26; 0134- 061-21; 0134-061-22; 0134-061-25; 0134-061-30; 0134-093-05; 0134-093-06; 0134-101-02 to 0134-101-06; 0134-101-28) (“SHA Property”), are the subject of the 5th Street Gateway Property (both the Future Development Property and the SHA Property are known as the “5th Street Gateway Property”), a map of the 5th Street Gateway Property is attached hereto as Exhibit “B”; and WHEREAS, on December 6, 2017, the City issued an Invitation for Letters of Interest (“LOI”) that were to include detailed proposals from developers concerning the development of the 5th Street Gateway Property; and WHEREAS, subsequently, the City received eight (8) proposals by the January 31, 2018 submittal deadline, including a proposal submitted by ICO Real Estate Group, Inc. (“ICO”); and WHEREAS, at the conclusion of a thorough review process, City staff determined that ICO’s submittal was the most responsive to the LOI, whereupon City staff recommended that the City engage ICO in negotiations pursuant to an exclusive right to negotiate (“ERN”) agreement with the intent that such negotiations will include the negotiation of a purchase and sale agreement for the 5th Street Gateway Property; and WHEREAS, on September 19, 2018, the City entered into an ERN with ICO; and WHEREAS, on April 5, 2019, the City engaged Colliers International Valuation & Advisory Services, LLC (“Colliers”) to appraise the 5th Street Gateway Property; and WHEREAS, on May 29, 2019, Colliers submitted its appraisal with a Fair Market Value (“FMV”) for the Future Development Property of $550,000, with a total FMV for the 5th Street Gateway Property of $2,130,000, a copy of which is attached to this Resolution as Exhibit C; and 17.a Packet Pg. 383 Attachment: Attachment 1 - Resolution 2021-87 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-87 WHEREAS, if ICO desires to purchase the 5th Street Gateway Property in bulk, as opposed to purchasing it in development phases, then the FMV of the Future Development Property is $440,000, with the total bulk FMV of the 5th Street Gateway Property being $1,700,000; and WHEREAS, as a part of the purchase and sale negotiations, ICO has agreed to purchase the 5th Street Gateway Property in bulk and to purchase the Future Development Property for $440,000 (“Purchase Price”); and WHEREAS, since ICO has agreed to pay the FMV of the Future Development Property, and ICO has successfully performed certain actions and responsibilities under the ERN, the City has concluded that the Purchase Price for the Future Development Property is fair and reasonable; and WHEREAS, ICO formed GATEWAY SB, LLC, a limited liability company (“GSB”) to purchase and develop the 5th Street Gateway Property; and WHEREAS, pursuant to the Section 54234(a)(1) of the Government Code, the disposition of the Future Development Property is not subject to the changes instituted to the Surplus Land Act by AB 1486 because the ERN was entered into prior to September 30, 2019; and WHEREAS, this Resolution will approve the Purchase and Sale Agreement and Joint Escrow Instructions (“Purchase and Sale Agreement”) between the City and GSB with respect to the Future Development Property, a copy of which is attached to this Resolution as Exhibit D, and authorize certain related actions; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The Purchase Price for the Future Development Property is determined to be fair and reasonable based on the May 29, 2019, FMV appraisal conducted by Colliers International Valuation & Advisory Services, LLC of the 5th Street Gateway Property. SECTION 3. The Purchase and Sale Agreement between the City and GATEWAY SB, LLC, for the purchase and sale of the Future Development Property, attached hereto as Exhibit “D” is approved and may be executed. SECTION 4. The City Manager, or designee, is authorized and directed to execute the Purchase and Sale Agreement and the grant deed, the form of which is attached to the Purchase 17.a Packet Pg. 384 Attachment: Attachment 1 - Resolution 2021-87 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-87 and Sale Agreement in substantially final form, and to take such other actions and execute such other documents as are necessary to effectuate the intent of this Resolution including concluding the sale of the Future Development Property. SECTION 5. The City determines that this Resolution and the actions authorized hereunder are not subject to environmental review under the California Environmental Quality Act (“CEQA”). Specifically, the Resolution does not authorize or approve any development or construction projects, but is limited to a mere transfer of title. Thus, it can be seen with certainty that the Resolution will not result in any direct or reasonably foreseeable indirect environmental impacts. The approval of this Resolution, therefore, is not a CEQA “project” within the meaning of State CEQA Guidelines Section 1537, which might otherwise be subject to environmental review. Alternatively, the approval of this Resolution is exempt from environmental review, pursuant to the common-sense exemption codified at State CEQA Guidelines Section 15061 (c) (3). SECTION 6. The City directs staff to prepare and have filed and posted with the County Clerk a CEQA Notice of Exemption within five (5) working days of the approval of this Resolution. SECTION 7. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 8. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by The City Council and signed by the Mayor and attested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 17.a Packet Pg. 385 Attachment: Attachment 1 - Resolution 2021-87 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-87 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-87, adopted at a regular meeting held on the _____ day of April ______ by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ______ day of _______2021. Genoveva Rocha, CMC, City Clerk 17.a Packet Pg. 386 Attachment: Attachment 1 - Resolution 2021-87 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 22: W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property   107  IV. Property to be Transferred for Future Development Site 22 – W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property Address: APNs: 746 W. 5th Street 0134-054-07 0134-054-08 0134-054-09 W. Spruce Street 0134-053-25 0134-053-26 N. “H” Street 0134-053-20 0134-053-21 0134-053-22 0134-053-23             N. “H” Street W. 6th Street  W. Spruce Street  W. 5th Street N. “G” Street 17.b Packet Pg. 387 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 22: W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property   108  IV. Property to be Transferred for Future Development Site 22 – W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property A. Permissible Use (HSC § 34191.5 (c) (2)): Site No. 22 is the W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property (the “Commercial Property”) and is proposed to be transferred to the City of San Bernardino for future development pursuant to HSC § 34191.5 (c) (2). B. Acquisition of Property (HSC § 34191.5 (c) (1) (A) and § 34191.5 (c) (1) (B)): Property records indicate that the Commercial Property was acquired by the Agency on June 28, 2011, and carries a total Book Value of $2,678,819. The Agreement for Purchase and Sale was executed May 31, 2011. The Vacant Commercial Property was acquired by the Agency in order to meet the revitalization goals of the City and the Agency to alleviate the existence and spread of physical and economic blight by assembling land and preparing property for future development. The estimated current value (the “ECV”) of the Vacant Commercial Property is approximately $282,000. C. Site Information (HSC § 34191.5 (c) (1) (C)): The Vacant Commercial Property consists of nine (9) parcels (APNs 0134-053-20, -21, -22, -23, - 25, -26 and 0134-054-07, -08, -09) totaling 1.65 acres located on W. 5th Street, N. “H” Street, and W. Spruce Street. The following table describes the improvements located on the Commercial Property: W. 5th Street Commercial Property Improvements APN Address Current (c) or Former (f) Use Type of Structure / Improvement Year Constructed Square Footage 0134-053-20 W. Spruce Street Vacant --- --- --- 0134-053-21 0134-053-22 0134-053-23 0134-053-25 N. “H” Street 0134-053-26 0134-054-07 746 W. 5th Street Salvation Army Center (f) 2-Story Concrete 1949 / 1950 10,578 0134-054-08 Parking Lot (f) Asphalt N/A N/A 0134-054-09 Playground (f) Dirt The Commercial Property is zoned Commercial Regional-Downtown (CR-2) in the City’s General Plan. The purpose of the CR-2 zone is to permit a diversity of regional-serving uses in the Downtown area including local, county, and state governmental/administrative uses, professional offices, cultural/historical and entertainment uses, convention facilities, hotels/motels, financial establishments, restaurants, supporting retail and services, educational institutions, public open spaces, and residential and senior housing. 17.b Packet Pg. 388 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 22: W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property   109  IV. Property to be Transferred for Future Development Site 22 – W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property D. Estimated Current Value (HSC § 34191.5 (c) (1) (D)): To determine an ECV for the Commercial Property, in January 2015, the Agency conducted a comparable sales analysis through the National Data Collective. The ECV was determined to be approximately $282,000. Local factors were not taken into consideration in determining the ECV of this site. Therefore, the actual value of the property may vary significantly from the ECV. The ECV is only a rough estimate planning number and should not be relied upon as a basis for actual value. The real value of the property cannot be determined without an appraisal. E. Site Revenues (HSC § 34191.5 (c) (1) (E)): There are no site revenues generated from the Commercial Property. F. History of Environmental Contamination (HSC § 34191.5 (c) (1) (F)): There is no known history of environmental contamination.31 G. Potential for Transit Oriented Development (TOD) and the Advancement of Planning Objectives of the Successor Agency (HSC § 34191.5 (c) (1) (G)): There is no potential for a TOD in conjunction with Commercial Property. The Downtown area plays a pivotal role in the City. It is the symbolic center as well as the social and economic heart of San Bernardino. Within its boundaries are the City Hall, City Police Headquarters, County Administrative Center, Law Library and Court House, Carousel Mall, Federal building, State offices, California Theatre of the Performing Arts, Caltrans, Seccombe Lake Recreation Area, Pioneer Memorial Cemetery, Sturges Auditorium, Radisson Hotel, and Meadowbrook Park. There is an opportunity to capitalize and improve upon this role. According to the Existing Economic Conditions and Trends Study prepared for the General Plan Update, “the large cluster of existing multi-government offices in the City, particularly in the downtown area, provide a sustained demand for business, retail, and professional services in the City.” The study also indicates that some of the office demand in San Bernardino is likely to be met by infill development in the Downtown area (approximately 170,000 square feet annually over the next five years) and with the City’s long-term Downtown Revitalization strategy and possible expansion of the government center. The increased employment in the Downtown area will then provide additional support for retail and pedestrian oriented retail development. Opportunities for downtown revitalization in the downtown area are new mixed-use residential and office development projects, which will help support the addition of new retail space. The transfer of the Commercial Property for future development to the City of San Bernardino advances the planning objectives of the Successor Agency in accordance with the City’s General Plan, 2009-Downtown Core Vision & Action Plan, the Agency’s Five-Year Implementation Plan 2009/2010 through 2013/2014, and the March 2008-SCAG Region: Compass Blueprint Case Study, Downtown San Bernardino Plan to:                                                              31 http://geotracker.waterboards.ca.gov/map/?CMD=runreport&myaddress=h+st+and+spruce+st+san+bernardino 17.b Packet Pg. 389 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 22: W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property   110  IV. Property to be Transferred for Future Development Site 22 – W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property 1. Reduce crime by acquiring and clearing several blocks for development near the intersection of 5th and “G” Streets in order to replace underutilized and vacant areas with uses that catalyze investment; 2. Enter into an agreement with a developer to construct mixed use housing/retail units on Agency-owned land near 5th and “G” Streets; 3. Recycle and/or develop underutilized parcels to eliminate blight and accommodate higher and better economic uses while enhancing the City's financial resources; 4. Protect large parcels that front onto freeways and commercial corridors from subdivision into smaller parcels; 5. Establish and maintain an on-going relationship with Caltrans; 6. Capture appropriate demand that meets the community’s needs and takes full advantage of emerging development and economic opportunities; 7. Provide opportunities for private investment in the City; 8. Provide opportunities for retail and other non-residential commercial and office uses; 9. Encourage pedestrian friendly uses; 10. Focus on creating distinct, discernible “places” of varied sizes, functions, and complexity; 11. Expand opportunities by encouraging an appropriate mix of revenue-generating land uses to maintain a competitive edge and a strong sales tax base; 12. Maximize opportunities that generate taxable sales in targeted growth areas; and 13. Develop combined urban street retail that will leverage and complement the existing retail uses. H. History of Previous Development Proposals and Activity (HSC § 34191.5 (c) (1) (H)): APN’s 0134-054-07, -08, and -09 is the former location of the City’s Salvation Army shelter. The other six (6) parcels have been vacant since at least 1994 according to Google Earth®. I. Disposition of Property: The City’s policies and procedures for property disposition, located in Exhibit “A” Section II, will guide the disposition of the Property. The ECV of the Commercial Property is approximately $282,000. The following process was used in determining the ECV of the Commercial Property: 17.b Packet Pg. 390 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 22: W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property   111  IV. Property to be Transferred for Future Development Site 22 – W. 5th Street/W. Spruce Street/N. “H” Street Commercial Property Date of estimated current value – January 2015 Value Basis – The ECV was determined by a comparable sales analysis using the National Data Collective subscription service. The ECV is approximately $282,000. Local factors that may affect land value were not taken into consideration. Therefore, the actual value of the property may vary greatly from the ECV. The ECV is only a planning number and should not be relied upon as a basis for actual value. J. Implementation of the Long-Range Property Management Plan: The Commercial Property will be transferred to the City of San Bernardino for future development subsequent to securing an HSC § 34180 (f) (1) compensation agreement (the “Compensation Agreement”) with the affected taxing entities, or as may otherwise may be provided by the HSC. 17.b Packet Pg. 391 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 23: Vacant W. 5th Street Commercial Property   112  IV. Property to be Transferred for Future Development Site 23 – Vacant W. 5th Street Commercial Property Address: APN: 575 W. 5th Street 0134-093-07 701 W. 5th Street 0134-093-08 490 N. “G” Street 0134-093-09                W. 5th Street N. “G” Street 17.b Packet Pg. 392 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 23: Vacant W. 5th Street Commercial Property   113  IV. Property to be Transferred for Future Development Site 23 – Vacant W. 5th Street Commercial Property A. Permissible Use (HSC § 34191.5 (c) (2)): Site No. 23 is the Vacant W. 5th Street Commercial Property (the “Vacant Commercial Property”) and is proposed to be transferred to the City of San Bernardino for future development pursuant to HSC § 34191.5 (c) (2). B. Acquisition of Property (HSC § 34191.5 (c) (1) (A) and § 34191.5 (c) (1) (B)): Property records indicate that the Vacant Commercial Property was acquired by the Agency in two separate transactions and carries a total Book Value of $1,729,486. The following table details the property records: Acquisition Details of the Vacant Commercial Property APN Acquisition Date Book Value 0134-093-07 November 2007 $1,089,000 0134-093-08 January 2009 $640,486 0134-093-09 The Vacant Commercial Property was acquired by the Agency in order to meet the revitalization goals of the City and the Agency to alleviate the existence and spread of physical and economic blight by assembling land and preparing property for future development. The estimated current value (the “ECV”) of the Vacant Commercial Property is approximately $97,000. C. Site Information (HSC § 34191.5 (c) (1) (C)): The Vacant Commercial Property consists of three (3) parcels (APNs 0134-093-07, -08, -09) totaling 0.52 acres located at 575 and 701 W. 5th Street and 490 N. “G” Street. The Vacant Commercial Property is zoned Commercial Regional-Downtown (CR-2) in the City’s General Plan. The purpose of the CR-2 zone is to permit a diversity of regional-serving uses in the Downtown area including local, county, and state governmental/administrative uses, professional offices, cultural/historical and entertainment uses, convention facilities, hotels/motels, financial establishments, restaurants, supporting retail and services, educational institutions, public open spaces, and residential and senior housing. D. Estimated Current Value (HSC § 34191.5 (c) (1) (D)): To determine an ECV for the Vacant Commercial Property, in January 2015, the Agency conducted a comparable sales analysis through the National Data Collective. The ECV was determined to be approximately $97,000. Local factors were not taken into consideration in determining the ECV of this site. Therefore, the actual value of the property may vary significantly from the ECV. The ECV is only a rough estimate planning number and should not be relied upon as a basis for actual value. The real value of the property cannot be determined without an appraisal. E. Site Revenues (HSC § 34191.5 (c) (1) (E)): There are no site revenues generated from the Vacant Commercial Property. 17.b Packet Pg. 393 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 23: Vacant W. 5th Street Commercial Property   114  IV. Property to be Transferred for Future Development Site 23 – Vacant W. 5th Street Commercial Property F. History of Environmental Contamination (HSC § 34191.5 (c) (1) (F)): APN 0134-093-07: In August 2006, Advanced GeoEnvironmental, Inc. (“AGE”) conducted and submitted a Phase I Environmental Assessment 723 - 739 West 5th Street, San Bernardino, California at the request of the Agency. AGE’s recommendation: “Based on AGE’s findings from this Phase I Environmental Assessment, AGE does not recommend any additional environmental investigation at this time.” The Agency accepted AGE’s 2006 recommendation. APN 0134-093-08: In August 2006, AGE conducted and submitted a Phase I Environmental Assessment Former Greyhound Bus Station 701 - 705 West 5th Street, and 490 North G Street, San Bernardino, California at the request of the Agency. AGE’s recommendations: “Based upon AGE’s findings from this Phase I Environmental Assessment, AGE recommends that a geophysical of the property be conducted to determine whether underground storage tanks still exist on the property. Following the geophysical survey, soil borings should be drilled in order to rule out any possibility of soil contamination from the former fueling facility as well as from the operation of the automobile repair facility.” In May 2008, AGE conducted and submitted a Phase II Environmental Assessment - 701 - 705 W. 5th Street, San Bernardino, California at the request of the Agency. AGE’s recommendation: “Based on the findings of this investigation…AGE does not believe that the trace concentrations of hydrocarbons detected is significant or warrants further investigation.” The Agency accepted AGE’s 2008 recommendation. G. Potential for Transit Oriented Development (TOD) and the Advancement of Planning Objectives of the Successor Agency (HSC § 34191.5 (c) (1) (G)): There is no potential for a TOD in conjunction with Vacant Commercial Property. The Downtown area plays a pivotal role in the City. It is the symbolic center as well as the social and economic heart of San Bernardino. Within its boundaries are the City Hall, City Police Headquarters, County Administrative Center, Law Library and Court House, Carousel Mall, Federal building, State offices, California Theatre of the Performing Arts, Caltrans, Seccombe Lake Recreation Area, Pioneer Memorial Cemetery, Sturges Auditorium, Radisson Hotel, and Meadowbrook Park. There is an opportunity to capitalize and improve upon this role. According to the Existing Economic Conditions and Trends Study prepared for the General Plan Update, “the large cluster of existing multi-government offices in the City, particularly in the downtown area, provide a sustained demand for business, retail, and professional services in the City.” The study 17.b Packet Pg. 394 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 23: Vacant W. 5th Street Commercial Property   115  IV. Property to be Transferred for Future Development Site 23 – Vacant W. 5th Street Commercial Property also indicates that some of the office demand in San Bernardino is likely to be met by infill development in the Downtown area (approximately 170,000 square feet annually over the next five years) and with the City’s long-term Downtown Revitalization strategy and possible expansion of the government center. The increased employment in the Downtown area will then provide additional support for retail and pedestrian oriented retail development. Opportunities for revitalization in the downtown area are new mixed-use residential and office development projects, which will help support the addition of new retail space. The transfer of the Commercial Property for future development to the City of San Bernardino advances the planning objectives of the Successor Agency in accordance with the City’s General Plan, 2009-Downtown Core Vision & Action Plan, the Agency’s Five-Year Implementation Plan 2009/2010 through 2013/2014, and the March 2008-SCAG Region: Compass Blueprint Case Study, Downtown San Bernardino Plan to: 1. Reduce crime by acquiring and clearing several blocks for development near the intersection of 5th and “G” Streets in order to replace underutilized and vacant areas with uses that catalyze investment; 2. Enter into an agreement with a developer to construct mixed use housing/retail units on Agency-owned land near 5th and “G” Streets; 3. Recycle and/or develop underutilized parcels to eliminate blight and accommodate higher and better economic uses while enhancing the City's financial resources; 4. Protect large parcels that front onto freeways and commercial corridors from subdivision into smaller parcels; 5. Establish and maintain an on-going relationship with Caltrans; 6. Capture appropriate demand that meets the community’s needs and takes full advantage of emerging development and economic opportunities; 7. Provide opportunities for private investment in the City; 8. Provide opportunities for retail and other non-residential commercial and office uses; 9. Encourage pedestrian friendly uses; 10. Focus on creating distinct, discernible “places” of varied sizes, functions, and complexity; 11. Expand opportunities by encouraging an appropriate mix of revenue-generating land uses to maintain a competitive edge and a strong sales tax base; 12. Maximize opportunities that generate taxable sales in targeted growth areas; and 17.b Packet Pg. 395 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Successor Agency to the Redevelopment Agency of the City of San Bernardino Long-Range Property Management Plan September 2015 Amended December 2015 Site No. 23: Vacant W. 5th Street Commercial Property   116  IV. Property to be Transferred for Future Development Site 23 – Vacant W. 5th Street Commercial Property 13. Develop combined urban street retail that will leverage and complement the existing retail uses. H. History of Previous Development Proposals and Activity (HSC § 34191.5 (c) (1) (H)): There is no history of previous development proposals or activities in conjunction with the Vacant Commercial Property. Previously, the Property now vacant, contained a bus transit center, automobile repair shop, and a gas station. I. Disposition of Property: The City’s policies and procedures for property disposition, located in Exhibit “A” Section II, will guide the disposition of the Property. The ECV of the Vacant Commercial Property is approximately $97,000. The following process was used in determining the ECV of the Vacant Commercial Property #2: Date of estimated current value – January 2015 Value Basis – The ECV was determined by a comparable sales analysis using the National Data Collective subscription service. The ECV is approximately $97,000. Local factors that may affect land value were not taken into consideration. Therefore, the actual value of the property may vary greatly from the ECV. The ECV is only a planning number and should not be relied upon as a basis for actual value. J. Implementation of the Long-Range Property Management Plan: The Vacant Commercial Property will be transferred to the City of San Bernardino for future development subsequent to securing an HSC § 34180 (f) (1) compensation agreement (the “Compensation Agreement”) with the affected taxing entities, or as may otherwise may be provided by the HSC. 17.b Packet Pg. 396 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 5thStreet Gateway Property33Site No. 22Site No. 23SHASHASHASHASHACity-owned LRPMP Site Nos. 22 and 23 and Successor Housing Agency (“SHA”) Properties17.bPacket Pg. 397Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 5TH STREET GATEWAY PROJECT 745 W. Spruce St., W. 5th St., N. H St., & N. G. St. San Bernardino, California 92410 APPRAISAL REPORT Date of Report: May 29, 2019 Colliers File #: LAX190060 PREPARED FOR Lisa Connor Project Manager City of San Bernardino 290 North D Street San Bernardino, CA 92401 PREPARED BY COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Exhibit C 17.b Packet Pg. 398 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LETTER OF TRANSMITTAL Colliers International Valuation & Advisory Services, and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 500+ offices throughout more than 68 countries worldwide. COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 865 South Figueroa Street, Suite 3500 Los Angeles, CA 90017 USA MAIN +1 213 627 1214 FAX +1 213 327 3266 WEB www.colliers.com/valuationadvisory May 29, 2019 Ms. Lisa Connor Project Manager City of San Bernardino 290 North D Street San Bernardino, CA 92401 RE: 5th Street Gateway Project 745 W. Spruce St., W. 5th St., N. H St., & N. G. St. San Bernardino, California 92410 Colliers File #: LAX190060 Ms. Connor: This appraisal report satisfies the scope of work and requirements agreed upon by City of San Bernardino and Colliers International Valuation & Advisory Services. The date of this report is May 29, 2019. At the request of the client, this appraisal is presented in an Appraisal Report format as defined by USPAP Standards Rule 2- 2(a). Our appraisal format provides a summary description of the appraisal process, subject and market data and valuation analyses. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. There are 27 parcels of vacant land, which are grouped into five development sites. We have identified them as sites 1 through 5 and they are shown on an aerial map on the following page. At the client's request, we have opined individual values for the five sites of land that are contiguous sites, which we identified as Sites 1 thru 5, as shown in the aerial map on the following page. The client has requested separate valuations for each development site. We have also included Aggregate Retail and Bulk values. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: 17.b Packet Pg. 399 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUE TYPE INTEREST APPRAISED DATE OF VALUE VALUE Site Value 1 Fee Simple March 20, 2019 $180,000 Site Value 2 Fee Simple March 20, 2019 $810,000 Site Value 3 Fee Simple March 20, 2019 $260,000 Site Value 4 Fee Simple March 20, 2019 $520,000 Site Value 5 Fee Simple March 20, 2019 $340,000 Aggregate Retail Value Fee Simple March 20, 2019 $2,110,000 Bulk Value Fee Simple March 20, 2019 $1,690,000 We interviewed Oliver Mujica, a planning division manager with the City of San Bernardino. Mr. Mujica informed us that the total site was offered for development in December 2017 and a confidential developer was selected by the city for exclusive development rights in July 2018. He was unable disclose the transaction price in the agreement. As of March 2019, there are several proposed developments for the subject that include supermarket, convenience store, gas station, and fast-food uses. Furthermore, there are no entitlements or soil issues with the subject property. We have taken the proposed uses by the developer as factors to consider in developing our conclusions for highest and best use for the subject. The following aerial map illustrates the size, shape and location of each of the five sites: The following table shows the size for each site. We have relied upon the assessor's measurements in our calculations. SITE SIZE CALCULATION NAME ADDRESS SQUARE FEET Site 1 42,689 Site 2 107,593 Site 3 22,651 Site 4 56,627 Site 5 54,450 TOTAL SIZE 284,010 NEC H St. & Spuce St. N/s 5th St. between G & H Streets NEC 5th St. & G St. SEC 5th St. & G St. SWC 5th St. & G St. 17.b Packet Pg. 400 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The analyses, opinions and conclusions communicated within this appraisal report were developed based upon the requirements and guidelines of the current Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The report is intended to conform to the appraisal guidelines of City of San Bernardino. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. USPAP defines an Extraordinary Assumption as, “an assignment specific- assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions”. USPAP defines a Hypothetical Condition as, “that which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis”. The Extraordinary Assumptions and/or Hypothetical Conditions that were made during the appraisal process to arrive at our opinion of value are fully discussed below. We advise the client to consider these issues carefully given the intended use of this appraisal, as their use might have affected the assignment results. EXTRAORDINARY ASSUMPTIONS No Extraordinary Assumptions were made for this assignment. HYPOTHETICAL CONDITIONS No Hypothetical Conditions were made for this assignment. RELIANCE LANGUAGE The Appraisal is for the sole use of the Client; however, Client may provide only complete, final copies of the Appraisal report in its entirety (but not component parts) to third parties who shall review such reports in connection with loan underwriting or securitization efforts. Colliers International Valuation & Advisory Services is not required to explain or testify as to appraisal results other than to respond to the Client for routine and customary questions. Please note that our consent to allow the Appraisal prepared by Colliers International Valuation & Advisory Services or portions of such Appraisal, to become part of or be refere nced in any public offering, the granting of such consent will be at our sole and absolute discretion and, if given, will be on condition that Colliers International Valuation & Advisory Services will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to Colliers International Valuation & Advisory Services, by a party satisfactory to Colliers International Valuation & Advisory Services. Colliers International Valuation & Advisory Services does consent to your submission of the reports to rating agencies, loan participants or your auditors in its entirety (but not component parts) without the need to provide Colliers International Valuation & Advisory Services with an Indemnification Agreement and/or Non-Reliance letter. Colliers International Valuation & Advisory Services hereby expressly grants to Client the right to copy the Appraisal and distribute it to other parties in the transaction for which the Appraisal has been prepared, including employees of Client, other lenders in the transaction, and the borrower, if any. Our opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. 17.b Packet Pg. 401 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The signatures below indicate our assurance to the client that the development process and extent of analysis for this assignment adhere to the scope requirements and intended use of the appraisal. If you have any specific questions or concerns regarding the attached appraisal report, or if Colliers International Valuation & Advisory Services can be of additional assistance, please contact the individuals listed below. Sincerely, COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES David A. Williams, MAI Valuation Services Director Certified General Real Estate Appraiser State of California License #AG035639 +1 213 417 3319 dave.a.williams@colliers.com Casey Merrill, MAI, ASA, FRICS Executive Managing Director | Southwest Region Certified General Real Estate Appraiser State of California License #AG003330 +1 213 417 3315 casey.merrill@colliers.com 17.b Packet Pg. 402 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) TABLE OF CONTENTS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LETTER OF TRANSMITTAL INTRODUCTION _________________________________________________________________________ 1 Executive Summary _____________________________________________________________________ 1 Aerial Photograph ______________________________________________________________________ 2 Subject Property Photographs _____________________________________________________________ 3 Identification of Appraisal Assignment _______________________________________________________ 5 Scope of Work _________________________________________________________________________ 7 DESCRIPTIONS & EXHIBITS _______________________________________________________________ 9 Regional Map __________________________________________________________________________ 9 Regional Analysis ______________________________________________________________________ 10 Local Area Map _______________________________________________________________________ 15 Local Area Analysis ____________________________________________________________________ 16 Site Description _______________________________________________________________________ 20 Assessment & Taxation _________________________________________________________________ 30 Zoning Analysis _______________________________________________________________________ 31 Market Analysis _______________________________________________________________________ 32 Highest & Best Use ____________________________________________________________________ 37 VALUATION ___________________________________________________________________________ 41 Valuation Methods _____________________________________________________________________ 41 Land Valuation ________________________________________________________________________ 41 Calculation of Land Value – Sites 1 and 5 ___________________________________________________ 51 Calculation of Land Value – Sites 2, 3 and 4 _________________________________________________ 64 CERTIFICATION OF APPRAISAL ASSUMPTIONS & LIMITING CONDITIONS ADDENDA Valuation Glossary Qualifications of Appraisers Qualifications of Colliers International Valuation & Advisory Services 17.b Packet Pg. 403 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXECUTIVE SUMMARY TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City San Bernardino State California Zip Code 92410 County San Bernardino Core Based Statistical Area (CBSA)Riverside-San Bernardino-Ontario, CA Market Inland Empire Submarket Eastern San Bernardino Latitude 34.108043 Longitude -117.299123 Number Of Parcels 27 Assessor Parcels Total Taxable Value $0 (Publicly-Owned) Census Tract Number 57.01 SITE INFORMATION Land Area Acres Square Feet Usable 6.52 284,010 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 6.52 284,010 Topography Level at street grade Shape Irregular Access Average Exposure Average/Good Current Zoning Flood Zone Zone X (Shaded) Seismic Zone Highest Risk, not in an Alquist-Priolo special study zone 5th Street Gateway Project Regional Downtown (CR-2) 0134-053-20-0000, 0134-053-21-0000, 0134-053-22-0000, 0134-053-23-0000, 0134-053-25-0000, 0134-053-26-0000, 0134-054-07-0000, 0134-054-08-0000, 0134-054-09-0000, 0134-054-24-0000, 0134-054-25-0000, 0134-054-26-0000, 0134-061-21-0000, 0134-061-22-0000, 0134-061-25-0000, 0134-061-30-0000, 0134-093-05-0000, 0134-093-06-0000, 0134-093-07-0000, 0134-093-08-0000, 0134-093-09-0000, 0134-101-02-0000, 0134-101-03-0000, 0134-101-04-0000, 0134-101-05-0000, 0134-101-06-0000, 0134-101-28-0000 745 W. Spruce St., W. 5th St., N. H St., & N. G. St. Land - Commercial Land VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE MARCH 20, 2019 FINAL VALUE CONCLUSION Site Value 1 $180,000 Value/SF $4.15 Site Value 2 $810,000 Value/SF $7.50 Site Value 3 $260,000 Value/SF $11.50 Site Value 4 $520,000 Value/SF $9.60 Site Value 5 $340,000 Value/SF $6.30 Aggregate Retail Value $2,110,000 Value/SF $7.43/SF Bulk Value $1,690,000 Value/SF $5.95/SF 17.b Packet Pg. 404 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) AERIAL PHOTOGRAPH TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 2 COMPARABLE KEY The red lines are intended to identify the property and not serve as actual parcel lines from a plat map. 17.b Packet Pg. 405 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SUBJECT PROPERTY PHOTOGRAPHS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 3 SITE 1 LOOKING NORTHWEST FROM SPRUCE ST. SITE 1 LOOKING EAST FROM H ST. SITE 2 LOOKING SOUTH FROM SPRUCE ST. SITE 2 LOOKING EAST FROM H ST. SITE 3 LOOKING NORTHEAST FROM N. G ST. SITE 3 LOOKING NORTH FROM W. 5TH ST. 17.b Packet Pg. 406 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SUBJECT PROPERTY PHOTOGRAPHS CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 4 SITE 4 LOOKING EAST FROM N. G ST. SITE 4 LOOKING SOUTHEAST FROM W. 5TH ST. SITE 5 LOOKING WEST FROM N. G ST. SITE 5 LOOKING SOUTH FROM W. 5TH ST. W. 5TH ST LOOKING EAST W. 5TH ST. LOOKING WEST 17.b Packet Pg. 407 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) IDENTIFICATION OF APPRAISAL ASSIGNMENT TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 5 PROPERTY IDENTIFICATION The subject is comprised of 27 assessor parcels totaling 284,010 SF or 6.52-acre site at 745 W. Spruce St., the northeast corner of W. 5th St. and N. H St, and all four corners of the intersection of W. 5th St. and N. G St . They are grouped into five development sites, as shown below. We interviewed Oliver Mujica, a planning division manager with the City of San Bernardino. Mr. Mujica informed us that the total site was offered for development in December 2017 and a confidential developer was selected by the city for exclusive development rights in July 2018. He was unable disclose the transaction price in the agreement. As of March 2019, there are several proposed developments for the subject that include supermarket, convenience store, gas station, and fast-food uses. Furthermore, there are no entitlements or soil issues with the subject property. We have taken the proposed uses by the developer as factors to consider in developing our conclusions for highest and best use for the subject. The assessor’s parcel numbers are: 0134-053-20-0000, 0134-053-21-0000, 0134-053-22-0000, 0134-053-23- 0000, 0134-053-25-0000, 0134-053-26-0000, 0134-054-07-0000, 0134-054-08-0000, 0134-054-09-0000, 0134-054-24-0000, 0134-054-25-0000, 0134-054-26-0000, 0134-061-21-0000, 0134-061-22-0000, 0134-061- 25-0000, 0134-061-30-0000, 0134-093-05-0000, 0134-093-06-0000, 0134-093-07-0000, 0134-093-08-0000, 0134-093-09-0000, 0134-101-02-0000, 0134-101-03-0000, 0134-101-04-0000, 0134-101-05-0000, 0134-101- 06-0000, and 0134-101-28-0000. CLIENT IDENTIFICATION The client of this specific assignment is City of San Bernardino. PURPOSE The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. INTENDED USE The intended use of this appraisal is to assist the client in the disposition of this asset. INTENDED USERS City of San Bernardino is the only intended user of this report. Use of this report by third parties and other unintended users is not permitted. This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. ASSIGNMENT DATES Date of Report May 29, 2019 Date of Inspection March 20, 2019 Valuation Date - As-Is March 20, 2019 PERSONAL INTANGIBLE PROPERTY No personal property or intangible items are included in this valuation. PROPERTY AND SALES HISTORY Current Owner The multiple parcels that comprise the subject property was acquired by the City of San Bernardino separate dates as summarized below: 17.b Packet Pg. 408 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) IDENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 6 The above information was provided by the City of San Bernardino and verified via public data services. Three-Year Sales History Other than the above, the subject has not been transferred during the past three years. Subject Sale Status The subject property is under contract to sell to a developer. However, the details of the transaction such as asking price, terms, or conditions were not provided or disclosed. DEFINITIONS OF VALUE Given the scope and intended use of this assignment, the definition of Market Value is applicable. The definition of Market Value, along with all other applicable definitions for this assignment, is located in the Valuation Glossary section of the Addenda. PROPERTY RIGHTS APPRAISED The property rights appraised constitute the fee simple interest. VALUE SCENARIO The valuation scenario developed in this appraisal report is the As-Is Market Value of the subject property’s fee simple interest. Owner APN Address Site No.City-Owned Doc # Aug 2016 and Jan 2017 Zoning City 0134-053-20 N “H” St 1 CR-2 City 0134-053-21 N “H” St 1 CR-2 City 0134-053-22 N “H” St 1 CR-2 City 0134-053-23 N “H” St 1 CR-2 City 0134-053-25 W Spruce St 1 CR-2 City 0134-053-26 W Spruce St 1 CR-2 City 0134-054-07 746 W 5th St 2 CR-2 City 0134-054-08 W Spruce St 2 CR-2 City 0134-054-09 W Spruce St 2 CR-2 City 0134-054-24 W 5th St 2 2017-0001218 CR-2 City 0134-054-25 796 W 5th St 2 2017-0001262 CR-2 City 0134-054-26 770 W 5th St 2 2017-0001261 CR-2 City 0134-061-21 5th St 3 CR-2 City 0134-061-22 5th St 3 CR-2 City 0134-061-25 5th St 3 CR-2 City 0134-061-30 696 W 5th St 3 CR-2 City 0134-101-02 673 W 5th St 4 2017-0001259 CR-2 City 0134-101-03 673 W 5th St 4 2017-0001258 CR-2 City 0134-101-04 W 5th St 4 CR-2 City 0134-101-05 W 5th St 4 CR-2 City 0134-101-06 W 5th St 4 CR-2 City 0134-101-28 495 N "G" St 4 2017-0001219 CR-2 City 0134-093-05 745 W 5th St 5 CR-2 City 0134-093-06 W 5th St 5 CR-2 City 0134-093-07 575 W 5th St 5 CR-2 City 0134-093-08 701 W 5th St 5 CR-2 City 0134-093-09 490 N “G” St 5 CR-2 5th St Gateway 2017-0001257 2016-0331259 2016-0331260 2016-0331261 2017-0001260 2017-0001229 17.b Packet Pg. 409 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SCOPE OF WORK TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 7 INTRODUCTION The appraisal development and reporting processes requires gathering and analyzing information about those assignment elements necessary to properly identify the appraisal problem to be solved. The scope of work decision must include the research and analyses that are necessary to develop credible assignment results given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. The scope of work for this appraisal assignment is outlined below: • The appraisers analyzed the regional and local area economic profiles including employment, population, household income, and real estate trends. The local area was further studied to assess the general quality and condition, and emerging development trends for the real estate market. The immediate market area was inspected and examined to consider external influences on the subject. • The appraisers confirmed and analyzed legal and physical features of the subject property including sizes of the site, flood plain data, seismic zone, zoning, easements and encumbrances, access and exposure of the site. • The appraisers completed a land market analysis that included market and sub-market overviews. The Inland Empire market and Eastern San Bernardino sub-market overviews analyzed supply/demand conditions using vacancy, absorption, supply change and rent change statistics. Conclusions were drawn regarding the subject property’s competitive position given its physical and locational characteristics, the prevailing economic conditions and external influences. • The appraisers conducted Highest and Best Use analysis and conclusions were drawn for the highest and best use of the subject property As-Vacant. The analysis considered legal, locational, physical and financial feasibility characteristics of the subject site. • Selection of the valuation methods was based on the identifications required in USPAP relating to the intended use, intended users, definition and date of value, relevant property characteristics and assignment conditions. This appraisal developed the Sales Comparison Approach to value, which was adjusted and reconciled as appropriate. The appraisal develops an opinion of the As-Is Market Value of the subject property’s fee simple interest. • Reporting of this appraisal is in an Appraisal Report format as required in USPAP Standard 2. The appraiser’s analysis and conclusions are summarized within this document. • We understand the Competency Rule of USPAP and the authors of this report meet the standards. • Eric Allchorn provided significant real property appraisal assistance to the appraisers signing the certification. Assistance included gathering, analyzing and reporting regional, local area, zoning, and tax information, confirming some of the comparable data, and assisting with portions of the valuation analysis. 17.b Packet Pg. 410 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SCOPE OF WORK EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 8 SOURCES OF INFORMATION The following sources were contacted to obtain relevant information: SOURCES OF INFORMATION ITEM SOURCE Tax Information San Bernardino County Tax Assessor Zoning Information City of San Bernardino Zoning Code Site Size Information Parcel Map Building Size Information San Bernardino County Tax Assessor New Construction Costar Flood Map InterFlood Demographics Pitney Bowes/Gadberry Group - GroundView® Comparable Information See Comparable Datasheets for details Legal Description Grant Deed from RealQuest Other Property Data San Bernardino County Property Records SUBJECT PROPERTY INSPECTION SUBJECT PROPERTY INSPECTION APPRAISER INSPECTED EXTENT DATE OF INSPECTION David A. Williams, MAI Yes Site Only March 20, 2019 Eric Allchorn Yes Site Only March 20, 2019 Casey Merrill, MAI, ASA, FRICS No - 17.b Packet Pg. 411 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL MAP TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 9 COMPARABLE KEY 17.b Packet Pg. 412 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 10 INTRODUCTION The Riverside-San Bernardino-Ontario, CA MSA is in the southern portion of the state. The MSA is comprised of Riverside and San Bernardino counties, and is often referred to as the "Inland Empire". The area is bordered by Los Angeles and Orange counties to the west, and by the states of Nevada and Arizona to the east. As of 2011, Riverside County had a population of 2,239,620 and San Bernardino County had a population of 2,065,377 for a total population of 4,304,997 for the MSA, as estimated by the United States Census Bureau. There is a diverse economic base in the MSA, based on the concept of industry clusters. The two-county area has a diverse portfolio of “quality of life” elements. These include desert resorts with championship golf courses, including Oak Quarry in Riverside, and mountain resorts that offer skiing in the winter. There are also fine and performing arts such as theater and concerts performed by Riverside County Philharmonic and the San Bernardino Symphony. The Auto Club Speedway in Fontana is the largest auto racetrack in Southern California. DEMOGRAPHIC ANALYSIS The following is a demographic study of the region sourced by Pitney Bowes/Gadberry Group - GroundView®, an on-line resource center that provides information used to analyze and compare the past, present, and future trends of geographical areas. Demographic changes are often highly correlated to changes in the underlying economic climate. Periods of economic uncertainty necessarily make demographic projections somewhat less reliable than projections in more stable periods. These projections are used as a starting point, but we also consider current and localized market knowledge in interpreting them within this analysis. Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures. 17.b Packet Pg. 413 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 11 REGIONAL AREA DEMOGRAPHICS YEAR US CA CBSA YEAR US CA CBSA POPULATION NUMBER OF HOUSEHOLDS 2010 Total Population 308,745,538 37,253,956 4,224,851 2018 122,929,625 13,049,105 1,371,611 2018 Total Population 328,062,672 39,857,821 4,627,621 2023 126,604,011 13,333,173 1,415,018 2023 Total Population 339,788,898 41,463,447 4,861,523 CAGR 0.6% 0.4% 0.6% 2010 - 2018 CAGR 0.8% 0.8% 1.1%AVERAGE HOUSEHOLD SIZE 2018 - 2023 CAGR 0.7% 0.8% 1.0%2018 2.60 2.99 3.32 POPULATION DENSITY 2023 2.62 3.05 3.39 2018 Per Square Mile 91 252 169 CAGR 0.13% 0.38% 0.39% 2023 Per Square Mile 94 262 177 HOUSING UNITS MEDIAN AGE Owner Occupied 80,041,309 7,290,968 889,236 2018 37.35 35.40 33.15 Renter Occupied 42,888,316 5,758,137 482,375 2023 38.09 36.21 34.02 AVERAGE HOUSEHOLD INCOME CAGR 0.39% 0.46% 0.52%2018 $84,367 $98,603 $81,514 MEDIAN HOME VALUE 2023 $100,862 $117,101 $99,894 2018 $183,983 $405,009 $266,617 CAGR 3.6% 3.5% 4.2% PER CAPITA INCOME MEDIAN HOUSEHOLD INCOME 2018 $32,413 $32,958 $24,537 2018 $58,828 $68,209 $59,870 2023 $38,504 $38,413 $29,485 2023 $70,600 $81,780 $72,597 CAGR 3.5% 3.1% 3.7% CAGR 3.7% 3.7% 3.9% Source: Pitney Bowes/Gadberry Group - GroundView® Population According to Pitney Bowes/Gadberry Group - GroundView®, a Geographic Information System (GIS) Company, the Riverside-San Bernardino-Ontario metropolitan area had a 2018 total population of 4,627,621 and experienced an annual growth rate of 1.1%, which was higher than the California annual growth rate of 0.8%. The metropolitan area accounted for 11.6% of the total California population (39,857,821). Within the metropolitan area the population density was 169 people per square mile compared to the higher California population density of 252 people per square mile and the lower United States population density of 91 people per square mile. The 2018 median age for the metropolitan area was 33.15, which was 12.66% younger than the United States median age of 37.35 for 2018. The median age in the metropolitan area is anticipated to grow by 0.52% annually, increasing the median age to 34.02 by 2023. Education The Riverside-San Bernardino-Ontario MSA has an impressive array of higher education facilities, including the University of California-Riverside, California State University San Bernardino, The University of Redlands, and the Loma Linda School of Medicine. West of the county line in Los Angeles are The Claremont Colleges and California State Polytechnic University, Pomona. There are also several community colleges. Household Trends The 2018 number of households in the metropolitan area was 1,371,611. The number of households in the metropolitan area is projected to grow by 0.6% annually, increasing the number of households to 1,415,018 by 2023. The 2018 average household size for the metropolitan area was 3.32, which was 27.63% larger than the United States average household size of 2.6 for 2018. The average household size in the metropolitan area is anticipated to grow by 0.39% annually, raising the average household size to 3.39 by 2023. The Riverside-San Bernardino-Ontario metropolitan area had 35.17% renter occupied units, compared to the higher 44.13% in California and the lower 34.89% in the United States. Income Trends The 2018 median household income for the metropolitan area was $59,870, which was 1.8% higher than the United States median household income of $58,828. The median household income for the metropolitan area 17.b Packet Pg. 414 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 12 is projected to grow by 3.9% annually, increasing the median household income to $72,597 by 2023. As is often the case when the median household income levels are higher than the national average, the cost of living index is also higher. According to the American Chamber of Commerce Researchers Association (ACCRA) Cost of Living Index, the Riverside-San Bernardino-Ontario, CA MSA’s cost of living is 147.9 compared to the national average score of 100. The ACCRA Cost of Living Index compares groceries, housing, utilities, transportation, health care and miscellaneous goods and services for over 300 urban areas. Consumer Spending Comparison Apparel, 9.08% Computers , 2.15% Education, 6.51%Entertainment, 14.40% Food at Home, 20.27% Eating Out, 15.81% Health Care, 22.15% Hsld Furnishings , 9.22% Auto Maint., 0.41% Consumer Spending Riverside -San Bernardino-Ontario $0 $1,000 $2,000 $3,000 $4,000 $5,000 Consumer Spending Comparison Average Household United States California Riverside-San Bernardino-Ontario EMPLOYMENT Total employment has increased annually over the past decade in the state of California by 0.9% and increased annually by 1.9% in the area. From 2016 to 2017 unemployment decreased in California by 0.7% and decreased by 0.9% in the area. In the state of California unemployment has increased over the previous month by 0.2% and increased by 0.1% in the area. 17.b Packet Pg. 415 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 13 EMPLOYMENT & UNEMPLOYMENT STATISTICS 2008 - 2017 TOTAL EMPLOYMENT UNEMPLOYMENT RATE California Year Total % ∆ Yr Ago Total % ∆ Yr Ago 2008 16,854,482 (0.5%)1,626,145 (2.1%)5.8% 7.3%8.3% 2009 16,182,572 (4.0%)1,544,955 (5.0%)9.3% 11.2%12.9% 2010 16,091,945 (0.6%)1,611,176 4.3%9.6% 12.2%13.7% 2011 16,258,133 1.0%1,623,801 0.8%8.9% 11.7%13.0% 2012 16,602,672 2.1%1,662,671 2.4%8.1% 10.4%11.5% 2013 16,958,403 2.1%1,706,779 2.7%7.4% 8.9%9.8% 2014 17,310,937 2.1%1,765,313 3.4%6.2% 7.5%8.1% 2015 17,681,849 2.1%1,828,231 3.6%5.3% 6.2%6.6% 2016 18,002,773 1.8%1,866,559 2.1%4.9% 5.5%6.0% 2017 18,285,492 1.6%1,921,774 3.0%4.4% 4.8%5.1% CAGR 0.9%-1.9%---- Source: U.S. Bureau of Labor Statistics *Unadjusted Non-Seasonal Rate United States* Riverside-San Bernardino-Ontario, CA Metropolitan Statistical Area California Riverside-San Bernardino-Ontario, CA Metropolitan Statistical Area 3.0% 3.5% 4.0% 4.5% 5.0% UNEMPLOYMENT RATES Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2018 Oct 2018 Nov 2018 Dec 2018 USA 4.5%4.4%4.1%3.7%3.6%4.2%4.1%3.9%3.6%3.5%3.5%3.7% California 4.7%4.6%4.4%4.0%3.7%4.4%4.5%4.3%3.9%4.0%3.9%4.1% Area 4.6%4.4%4.1%3.7%3.7%4.7%4.6%4.5%4.1%4.1%3.9%4.0% The preceding chart depicts unemployment trends in the region, California and the U.S. Overall levels of unemployment in the region experienced a general decline throughout 2018. By the end of December 2018, unemployment in the region was 0.1% lower than California but 0.3% higher than the country’s overall unemployment rate. 17.b Packet Pg. 416 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 14 The preceding chart depicts the top employers in San Bernardino County. Principal employers are spread throughout the wholesale/retail trade, healthcare and information sectors. Starter Bros Holdings Inc. is the largest employer with 6,902 workers. It is privately held supermarket discount chain, based in the city of San Bernardino. The supermarket chain consists of 168 stores throughout Southern California. The second largest employer is Prime Healthcare Services. The private company operates 45 acute care hospitals serving communities in several areas of California, including San Diego, San Bernardino, Shasta County, Los Angeles and Orange County. Esri, Environmental Systems Research Institute is the third largest employer in the county with over 1,900 employees. The company is headquartered in Redlands, California. It is an international supplier of geographic information system software, web GIS and geodatabase management applications. AIRPORT STATISTICS The following chart summarizes the local airport statistics. LOS ANGELES INTERNATIONAL AIRPORT (LAX) YEAR ENPLANED PASSENGERS % CHG 2007 30,113,985 - 2008 28,861,477 (4.2%) 2009 27,439,897 (4.9%) 2010 28,857,755 5.2% 2011 30,528,737 5.8% 2012 31,326,268 2.6% 2013 32,425,892 3.5% 2014 34,314,197 5.8% 2015 36,351,226 5.9% 2016 39,636,042 9.0% 2017 41,232,432 4.0% Source: U.S. Department of Transportation SUMMARY The Riverside-San Bernardino-Ontario region has a diverse and strong economy with dynamic sectors such as healthcare, tourism, and clean energy technologies. Over the longer term, the region’s strengths are its concentration of high-technology manufacturing industries, renewable energy, and strong education research. These factors should have a positive impact and will benefit the regional economy for years to come. TOP EMPLOYERS EMPLOYER NAME EMPLOYEES INDUSTRY Stater Bros Holdings Inc.6,902 Wholesale/Retail Trade Prime Healthcare Services 2,500 Healthcare/Social Assistance Esri (Environmental Systems Research Institute)1,950 Information Epic Management, L.P.1,183 Professional/Scientific/Technical Services Riverside Medical Clinic 840 Healthcare/Social Assistance Classic Containers Inc.406 Manufacturing Lewis Operating Corp.330 Real Estate Beaver Medical Group 224 Healthcare/Social Assistance HMC Architects 224 Professional/Scientific/Technical Services Best Best & Krieger LLP 189 Professional/Scientific/Technical Services Source: http://www.bizjournals.com 17.b Packet Pg. 417 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA MAP TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 15 17.b Packet Pg. 418 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 16 INTRODUCTION In this section of the report, we provide details about the local area and describe the influences that bear on the real estate market as well as the subject property. A map of the local area is presented on the prior page. Below are insights into the local area based on fieldwork, interviews, demographic data and experience working in this market. LOCAL AREA PROFILE The subject property is located in San Bernardino, California, within San Bernardino County. San Bernardino is the county seat of San Bernardino County. It is within the Inland Empire, typically defined as the region east of Los Angeles and Orange counties, encompassing San Bernardino and Riverside counties. According to the 2010 census, the population was 209,924. The city is approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs. The state highways include State Route 18 and State Route 66. The city is traversed by Interstate 215, from north to south and SR-210, from east to west towards the city’s northerly border. Interstate 10 intersects the city across its southern border. Other freeways include State Route 259 and State Route 330. San Bernardino is served by the San Bernardino International Airport, a public airport less than two miles southeast of the city center. DEMOGRAPHIC PROFILE Below is a demographic study of the area, sourced by Pitney Bowes/Gadberry Group - GroundView®, an on- line resource center that provides information used to analyze and compare the past, present, and future trends of properties and geographical areas. Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures. 17.b Packet Pg. 419 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 17 LOCAL AREA DEMOGRAPHICS DESCRIPTION 1 MILE 3 MILES 5 MILES DESCRIPTION 1 MILE 3 MILES 5 MILES POPULATION AVERAGE HOUSEHOLD INCOME 2000 Population 15,460 132,465 328,141 2018 $33,146 $44,904 $52,516 2010 Population 16,751 148,685 361,585 2023 $39,105 $53,673 $63,255 2018 Population 17,033 152,218 374,986 Change 2018-2023 17.98%19.53%20.45% 2023 Population 17,367 155,520 384,437 MEDIAN HOUSEHOLD INCOME Change 2000-2010 8.35%12.24%10.19%2018 $22,887 $33,972 $40,140 Change 2010-2018 1.68%2.38%3.71%2023 $27,161 $39,846 $47,967 Change 2018-2023 1.96%2.17%2.52%Change 2018-2023 18.68%17.29%19.50% POPULATION 65+PER CAPITA INCOME 2010 Population 1,307 11,148 28,178 2018 $9,296 $12,135 $14,880 2018 Population 1,477 13,121 32,468 2023 $10,870 $14,380 $17,759 2023 Population 1,706 15,469 38,459 Change 2018-2023 16.94%18.50%19.35% Change 2010-2018 13.01%17.70%15.22%2018 HOUSEHOLDS BY INCOME Change 2018-2023 15.50%17.89%18.45%<$15,000 32.7%21.7%17.3% NUMBER OF HOUSEHOLDS $15,000-$24,999 20.5%15.9%13.9% 2000 Households 4,351 37,242 98,608 $25,000-$34,999 13.7%13.8%13.2% 2010 Households 4,582 38,916 101,208 $35,000-$49,999 12.2%15.2%15.4% 2018 Households 4,698 40,130 104,591 $50,000-$74,999 12.5%17.1%17.7% 2023 Households 4,756 40,721 106,375 $75,000-$99,999 4.9%8.2%10.6% Change 2000-2010 5.31%4.49%2.64%$100,000-$149,999 2.4%5.9%8.3% Change 2010-2018 2.53%3.12%3.34%$150,000-$199,999 0.8%1.7%2.7% Change 2018-2023 1.23%1.47%1.71%$200,000 or greater 0.2%0.4%0.8% HOUSING UNITS (2018)MEDIAN HOME VALUE $126,816 $143,293 $177,225 Owner Occupied 1,229 18,598 50,233 AVERAGE HOME VALUE $147,186 $165,353 $198,939 Renter Occupied 3,482 21,495 54,399 HOUSING UNITS BY UNITS IN STRUCTURE HOUSING UNITS BY YEAR BUILT 1, detached 2,577 26,158 64,295 Built 2010 or later 64 225 724 1, attached 340 2,313 4,803 Built 2000 to 2009 349 2,093 5,011 2 122 1,004 2,085 Built 1990 to 1999 264 2,581 9,292 3 or 4 392 2,227 7,081 Built 1980 to 1989 527 4,548 18,209 5 to 9 234 1,572 6,335 Built 1970 to 1979 465 4,481 15,581 10 to 19 146 1,106 5,201 Built 1960 to 1969 541 4,782 14,962 20 to 49 241 984 3,432 Built 1950 to 1959 837 9,868 23,854 50 or more 633 1,883 5,335 Built 1940 to 1949 406 5,573 8,912 Mobile home 25 2,821 6,032 Built 1939 or earlier 1,245 5,978 8,045 Boat, RV, van, etc.0 26 34 Source: Pitney Bowes/Gadberry Group - GroundView® Transportation Routes Major traffic arteries are shown in the chart below: MAJOR ROADWAYS & THOROUGHFARES HIGHWAY DIRECTION FUNCTION DISTANCE FROM SUBJECT I-215 north-south State Route 210 east-west I-10 east-west SURFACE STREETS DIRECTION FUNCTION DISTANCE FROM SUBJECT W. 5th St.east-west N. H St.north-south Spruce St.north-south W. 6th St.east-west Interstate Highway Local Highway Interstate Highway Secondary Arterial The subject property fronts this street. The subject property fronts this street. Local The subject property fronts this street. Secondary Arterial This is half a block north of subject property. This is half a block west of subject property. Primary Arterial This is 2.50 miles north of the subject property. This is 3 miles south of the subject property. Public Transportation is within one mile south of the subject property in the form of the San Bernardino Downtown Metrolink. Furthermore, at the northwest corner of W. 5th St. and H St. is a bus stop serviced by bus route 14. Also, further east along W. 5th St. at the southeast corner of W. 5th St. and N. G St. is another bus stop that is also serviced bus route 14. 17.b Packet Pg. 420 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 18 Economic Factors Government, retail, and services are the dominant industries within San Bernardino’s economy. The city's location close to the Cajon and San Gorgonio passes, and at the junctions of the Interstate 10, Interstate 215, and State Route 210 freeways, places it as an intermodal logistics hub. San Bernardino is home to the Burlington Northern and Santa Fe Railway's intermodal freight transport yard, the Yellow Freight Systems' cross-docking trucking center, and Pacific Motor Trucking. This freight transport yard makes San Bernardino a hub for transportation and creates demand for industrial warehouse and distribution for the area. Important warehouses for Kohl's, Mattel, Pep Boys, and Stater Bros. have been developed near the San Bernardino International Airport. The city's riverfront district along Hospitality Lane has drawn much of the regional economic development. This area now hosts a full complement of office buildings, big-box retailers, restaurants, and hotels situated around the Santa Ana River. Amazon.com built a new 950,000-square-foot fulfillment warehouse on the south side of the airport, promising to create 1,000 new jobs, which will make it one of the city's largest employers. Education is a main component of the local economy. San Bernardino hosts the California State University, San Bernardino. The Community Hospital of San Bernardino is also a prominent employer in the city. Local Area The subject property itself has frontage on W. 5th St. and is directly east of the I-215 with numerous commercial properties surrounding the subject. The most prominent of these commercial properties is the vacant Carousel Mall (240,000 SF) one block south of the subject property. The center was once a prominent regional shopping center; however, it saw a substantial decline during the 2000s, leading to its closure. In January 2008, LNR Corp sold the Carousel Mall property. The adjoining movie theater, Cinema Star, also closed its doors in 2008, further reducing foot traffic to the property. The Mall property has been vacant since August 2017 after the remaining tenants had been evicted. From our discussion with Oliver Mujica, Planning Division Manager with the City of San Bernardino, there are currently no plans filed with officials to change or improve Carousel Mall at this time. As of 2019, the property is owned by the city and there are discussions to revamp it as a mixed-use center that will incorporate housing, office space and more restaurants. But, a full rollout of that plan is expected to take 5 to 10 years, according to Mr. Mujica. Furthermore, there is a neighborhood center known as Central City Plaza one block south of the subject property. The center has a vacant anchor space and most of the inline and pad space tenants have vacated the premises as well. Attempts to reach out to the leasing agents for the property were not returned. However, there are some revitalized retail areas near the subject property. Two blocks south of the subject are two neighborhood centers anchored by Food 4 Less, Ross Dress For Less, and dd’s Discount. According to the listing agent for the centers, Fara Raban, Manager at Opics Properties, the center has been doing very well, due to the new Rapid Transit Center and Metrolink station one block south of the center. One block southeast of the subject is the Regal Cinemas San Bernardino 14. In November 2011, the city of San Bernardino approved a negotiation with Regal to rehabilitate the failed Cinema Star theater. Regal Cinemas opened in Cinema Stars place on June 29, 2012 with RPX under the name of Regal San Bernardino Theatre Square Stadium 14 & RPX. Lastly, on May 11, 2014 the county of San Bernardino opened a 12-story, 200-foot-tall courthouse known as the San Bernardino Justice Center. The county has been consolidating many county-wide court functions in the new structure, which is the tallest building in San Bernardino and the Inland Empire. In conclusion, while the immediate area has seen substantial declines in recent years there is evidence of successful revitalization efforts of commercial properties in the area. This will inform our conclusions of highest and best use. 17.b Packet Pg. 421 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 19 Community Services Community services and facilities are readily available in the surrounding area. These include public services such as fire stations, hospitals, police stations, and schools (all ages). The subject property is located in the San Bernardino City Unified School District. IMMEDIATE AREA PROFILE This section discusses uses and development trends in the immediate area that directly im pact the performance and appeal of the subject property. Predominant Land Uses Significant development in the immediate area consists of office and retail uses along major arterials that are interspersed with multi-family complexes and single-family residential development removed from arterials. There are also a number of motels located along H St., N. G. St. and W. 5th St. SUBJECT PROPERTY ANALYSIS The following discussion draws context and analysis on how the subject property is influenced by the local and immediate areas. Subject Property Analysis The uses adjacent to the property as a whole are noted below: › North - North of the subject is Juanita Blakely Jones Elementary School and single-family homes. Further north is Sturges Center of Fine Arts. › South - South of the subject is the San Bernardino County Child Services and San Bernardino City Hall. Further south is neighborhood center, Carousel Mall, and a Metrolink Station. › East - East of the subject is a Regal Cinemas and California Theater of Performing Arts. Further east is Workers Compensation Appeals Board, the Consulate of Mexico, and San Bernardino Superior Court Civil Division. › West - West of the subject is In-N-Out Burger and I-215. Further west is the San Bernardino Train Depot and single-family homes. Access The subject site has frontage on three arterials. Based on our field work, the subject’s access is rated average compared to other properties with which it competes. The property as a whole is one block east of on/offramps for I-215. Visibility The subject is clearly visible in both directions along 5th street, a primary thoroughfare. There is also average visibility along G & H streets and the property is not hampered by adjacent properties, trees or other obstructions. In comparison to competitive properties, the subject property has good visibility. The subject is not visible from I-215 as the freeway is above grade and the subject is below grade from the freeway and visibility is obscured by a sound wall. Subject Conclusion The immediate area has declined since the 1990s and is in the early stages of revitalization. SUMMARY San Bernardino continues to be part of a growing and influential industrial hub in southern California. The city’s strategic location and broad transportation advantages are responsible for its economic diversity and potential growth. The subject benefits from its strategic location in proximity to three well-traveled arterials and benefits from freeway access to the I-215. Overall the condition and appeal of the market area is generally good. 17.b Packet Pg. 422 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SITE DESCRIPTION TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 20 General Description The subject consists of 27 parcels grouped into five development sites. SITE SIZE CALCULATION NAME ADDRESS SQUARE FEET Site 1 42,689 Site 2 107,593 Site 3 22,651 Site 4 56,627 Site 5 54,450 TOTAL SIZE 284,010 NEC H St. & Spuce St. N/s 5th St. between G & H Streets NEC 5th St. & G St. SEC 5th St. & G St. SWC 5th St. & G St. The total land area is 284,010 SF (6.52 AC) of land. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Assessor Parcels Number Of Parcels 27 Land Area Acres Square Feet Usable Land 6.52 284,010 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 6.52 284,010 Shape See Multiple Parcel Chart For Breakdown Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site See Multiple Parcel Chart For Breakdown Street Improvements Street Direction No. Lanes Street Type CurbsSidewalksStreetlightsCenter LaneGuttersW. 5th St.Primary Street two-way four-lane major arterial ✓✓✓✓✓ N. H St.Primary Street two-way four-lane minor arterial ✓✓✓✓ Spruce St.Secondary Street two-way two-lane connector street ✓✓✓ N. G. St.Primary Street two-way four-lane minor arterial ✓✓✓✓ Frontage Traffic Counts LOCATION DATE SOURCE COUNT W. 5th St.Bet. G & H str.2004 City of SB N. G. St.Bet. 5th & 6th str.2004 City of SB TOTAL 33,166 The subject has frontage on both the north and south sides of W. 5th St. and Spruce St., the subject has frontage on the east and west sides of N.G St. The east side of N. H. St., and the subject has good access to I-215 west of the subject. 22,938 10,228 I have used the city-provided data as it is the most accurate for the subject’s location. Given that it was issued 15 years ago in inferior economic conditions, I conclude that the counts would be higher today. 17.b Packet Pg. 423 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SITE DESCRIPTION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 21 MULTIPLE PARCEL DESCRIPTIONS USABLE TOTAL PARCEL SF AC SF AC ADDRESS SHAPE Site 1 0134-053-20-0000 6,970 0.16 6,970 0.16 742 W. Spruce St.Rectangular 0134-053-21-0000 6,970 0.16 6,970 0.16 W. Spruce St.Rectangular 0134-053-22-0000 6,970 0.16 6,970 0.16 W. Spruce St.Rectangular 0134-053-23-0000 6,970 0.16 6,970 0.16 W. Spruce St.Rectangular 0134-053-25-0000 7,405 0.17 7,405 0.17 555 N. H St.Rectangular 0134-053-26-0000 7,405 0.17 7,405 0.17 N H St.Rectangular Site 1 Total 42,689 0.98 42,689 0.98 Site 2 0134-054-07-0000 20,473 0.47 20,473 0.47 746 W. 5th St.Rectangular 0134-054-08-0000 5,663 0.13 5,663 0.13 W. Spruce St.Rectangular 0134-054-09-0000 4,792 0.11 4,792 0.11 723 W. Spruce St.Rectangular 0134-054-24-0000 33,541 0.77 33,541 0.77 W. 5th St.Rectangular 0134-054-25-0000 18,731 0.43 18,731 0.43 796 W. 5th St.L-Shaped 0134-054-26-0000 24,394 0.56 24,394 0.56 770 W. 5th St.L-Shaped Site 2 Total 107,593 2.47 107,593 2.47 Site 3 0134-061-21-0000 6,098 0.14 6,098 0.14 696 W. 5th St.Rectangular 0134-061-22-0000 4,356 0.10 4,356 0.10 696 W. 5th St.Rectangular 0134-061-25-0000 3,920 0.09 3,920 0.09 696 W. 5th St.Rectangular 0134-061-30-0000 8,276 0.19 8,276 0.19 696 W. 5th St.Rectangular Site 3 Total 22,651 0.52 22,651 0.52 Site 4 0134-101-02-0000 7,405 0.17 7,405 0.17 673 W. 5th St.Rectangular 0134-101-03-0000 6,098 0.14 6,098 0.14 673 W. 5th St.Rectangular 0134-101-04-0000 7,405 0.17 7,405 0.17 W. 5th St.Rectangular 0134-101-05-0000 10,454 0.24 10,454 0.24 W. 5th St.Rectangular 0134-101-06-0000 7,405 0.17 7,405 0.17 W. 5th St.Rectangular 0134-101-28-0000 17,860 0.41 17,860 0.41 495 N. G St.Rectangular Total Site 4 56,627 1.30 56,627 1.30 Site 5 0134-093-05-0000 28,750 0.66 28,750 0.66 745 W. 5th St.Rectangular 0134-093-06-0000 3,049 0.07 3,049 0.07 W. 5th St.Rectangular 0134-093-07-0000 5,663 0.13 5,663 0.13 575 W. 5th St.Rectangular 0134-093-08-0000 7,841 0.18 7,841 0.18 701 W. 5th St.Rectangular 0134-093-09-0000 9,148 0.21 9,148 0.21 N. G St.Rectangular Total Site 5 54,450 1.25 54,450 1.25 N. G St.Rectangular TOTAL 284,010 6.52 284,010 6.52 Accessibility Average - The subject has frontage on both the north and south sides of W. 5th St. and Spruce St., the subject has frontage on the east and west sides of N. G St. The east side of N. H. St., and the subject has access to I-215 west of the subject. We will comment specifically on each development parcel in the Highest and Best Use section of this report. Exposure Average/Good - The subject has frontage on both the north and south sides of W. 5th St. and Spruce St., the subject has frontage on east and west side of N. G 17.b Packet Pg. 424 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SITE DESCRIPTION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 22 St. The east side of N. H. St. While the subject has no visual exposure from the I- 215 Freeway, which has an AADT of 175,000, it nevertheless benefits from freeway traffic, as the on/off ramps are located ±50 yards to the west. We will comment specifically on each development parcel in the Highest and Best Use section of this report. Seismic Highest Risk, not in an Alquist-Priolo special study zone. Flood Zone Zone X (Shaded). This is referenced by Community Number 060281, Panel Number 06071C8681J, dated September 02, 2016. Zone X (shaded) is a Non - Special Flood Hazard Area (NSFHA) of moderate flood hazard, usually the area between the limits of the 100-year and 500-year floods. Are also used to designate base floodplains of lesser hazards, such as areas protected by levees from 100-year flood, or shallow flooding areas with average depths of less than one foot or drainage areas less than 1 square mile. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualif ied professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to the Interstate freeway system via the I-215 half a block west of the western edge of the subject property. 17.b Packet Pg. 425 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 23 PLAT MAP A – SITE 1 & 2 17.b Packet Pg. 426 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 24 PLAT MAP B – SITE 3 17.b Packet Pg. 427 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 25 PLAT MAP C – SITE 4 17.b Packet Pg. 428 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 26 PLAT MAP D – SITE 5 17.b Packet Pg. 429 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 27 ZONING MAP 17.b Packet Pg. 430 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 28 FLOOD MAP 17.b Packet Pg. 431 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 29 CONCEPT SITE PLAN IDENTIFICATION Please note the site outlined in red is owned by In-N-Out and not part of the subject property. 17.b Packet Pg. 432 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ASSESSMENT & TAXATION TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 30 ASSESSMENT & TAXATION Assessment of real property is established by an assessor that is an appointed or elected official charged with determining the value of each property. The assessment is used to determine the necessary rate of taxation required to support the municipal budget. A property tax is a levy on the value of property that the owner is required to pay to the municipality in which it is situated. Multiple jurisdictions may tax the same property. The 27-parcel property is owned by the City of San Bernardino. As a result, none of the parcels pay property taxes. Tax records indicate that the parcels lie within tax rate area 7006 with a base tax rate of 1.013058. The subject parcels have no current assessment. Further, a developer would likely create an assemblage. Accordingly, estimating taxes for the parcels is outside scope of our assignment. 17.b Packet Pg. 433 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ZONING ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 31 INTRODUCTION Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING SUMMARY Municipality Governing Zoning City of San Bernardino Planning & Zoning Department Current Zoning Regional Downtown (CR-2) Permitted Uses Prohibited Uses Industrial Current Use Vacant Land Is Current Use Legally Permitted?Yes Zoning Change Not Likely Commercial & Residential ZONING REQUIREMENTS Minimum Site Area (SF)10,000 SF Minimum Yard Setbacks Front (Feet)10 Rear (Feet)0 Side (Feet)10 Maximum Site Coverage 50% Maximum Building Height 30 Feet Parking Requirement Spaces Per 1,000 SF 4 Spaces Required 0 Spaces Provided 0 Source: City of San Bernardino Planning & Zoning Department ZONING CONCLUSIONS Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of our analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through our due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. 17.b Packet Pg. 434 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 32 INTRODUCTION As concluded ahead, the highest and best use of the subject site as-vacant is development of retail uses. Therefore, this section provides a brief study of retail supply/demand conditions for the Inland Empire Market and East Inland Empire Submarket, market participant interviews and transaction trends. These findings are used to support our conclusions for the competitive position, and exposure period of the subject site. INLAND EMPIRE RETAIL MARKET The following is an analysis of supply/demand trends in the Inland Empire Retail market using information provided by CoStar, widely recognized as a credible source for tracking market statistics. The table below presents historical data for key market indicators. INLAND EMPIRE HISTORICAL STATISTICS (LAST TEN YEARS) PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2009 188,048,927 SF 1,393,861 SF (882,442) SF 6.9%$14.46/SF 2010 188,343,983 SF 562,348 SF 751,344 SF 9.4%$17.56/SF 2011 188,203,532 SF 421,581 SF (442,643) SF 9.6%$17.03/SF 2012 188,772,070 SF 1,066,548 SF 1,055,197 SF 9.1%$16.08/SF 2013 189,289,761 SF 1,021,413 SF 1,416,308 SF 8.9%$15.67/SF 2014 190,486,022 SF 1,710,084 SF 1,954,111 SF 8.4%$15.59/SF 2015 191,052,932 SF 974,945 SF 574,006 SF 8.2%$15.59/SF 2016 191,753,476 SF 994,949 SF 2,186,881 SF 7.8%$15.91/SF 2017 193,190,207 SF 1,604,051 SF 1,242,248 SF 7.6%$16.62/SF 2018 194,630,379 SF 1,715,100 SF 1,922,611 SF 7.4%$17.55/SF CAGR 0.3%---2.0% *Supply numbers based on information which is amended/updated on an on-going basis by Costar. Source: Costar® The following table summarizes the trailing four quarter performance of the Inland Empire market. INLAND EMPIRE TRAILING FOUR QUARTER PERFORMANCE PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2018 Q1 193,454,212 SF 363,277 SF (152,776) SF 7.7%$16.64/SF 2018 Q2 193,746,430 SF 468,911 SF 729,866 SF 7.4%$17.60/SF 2018 Q3 194,113,350 SF 364,887 SF 624,901 SF 7.3%$17.92/SF 2018 Q4 194,630,379 SF 518,025 SF 720,620 SF 7.2%$18.03/SF Source: Costar® Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below. INLAND EMPIRE MARKET TREND ANALYSIS TRAILING FOUR QUARTERS TREND ANALYSIS Q4 2018 2018 Last 10 Total SF 194,630,379 194,630,379 190,377,129 Vacant SF 13,916,598 14,402,648 15,864,126 Market Vacancy 7.2%7.4%8.3% Construction Growth Rate 0.3%0.9%0.3% Absorption Rate 0.4%1.0%0.5% Average Asking Rent/SF $18.03 $17.55 $16.21 Source: Costar® 17.b Packet Pg. 435 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 33 Inland Empire Market Conclusion Based on the preceding analysis, the Inland Empire Retail market demonstrates sound fundamentals. Analysis of supply and demand factors indicate the market is currently stable with no evidence to prove this will change any time soon. There are no observed weaknesses of the market that stand out. EAST INLAND EMPIRE RETAIL SUBMARKET OVERVIEW The following is an analysis of supply/demand trends in the East Inland Empire Retail submarket using information provided by CoStar. The table below presents historical data for key market indicators. EAST INLAND EMPIRE HISTORICAL STATISTICS (LAST TEN YEARS) PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2009 28,974,379 SF 303,012 SF (242,738) SF 7.9%$10.51/SF 2010 28,989,668 SF 16,213 SF 31,318 SF 11.4%$12.84/SF 2011 29,007,026 SF 67,868 SF (29,477) SF 11.5%$12.81/SF 2012 29,057,637 SF 75,144 SF 491,759 SF 10.3%$12.91/SF 2013 29,152,411 SF 119,328 SF (120,986) SF 10.7%$13.48/SF 2014 29,309,188 SF 167,841 SF 133,705 SF 10.6%$13.85/SF 2015 29,639,477 SF 338,345 SF 451,319 SF 10.5%$13.36/SF 2016 29,752,675 SF 163,617 SF 341,327 SF 9.6%$13.58/SF 2017 30,164,439 SF 458,011 SF 315,580 SF 9.8%$14.41/SF 2018 30,617,816 SF 479,502 SF 198,384 SF 9.8%$15.09/SF CAGR 0.6%---3.7% *Supply numbers based on information which is amended/updated on an on-going basis by Costar. Source: Costar® The following table summarizes the trailing four quarter performance of the East Inland Empire submarket. EAST INLAND EMPIRE TRAILING FOUR QUARTER PERFORMANCE PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2018 Q1 30,198,814 SF 36,600 SF (38,267) SF 9.6%$14.92/SF 2018 Q2 30,191,950 SF 17,036 SF 9,571 SF 9.6%$14.70/SF 2018 Q3 30,293,271 SF 101,321 SF (13,239) SF 9.9%$15.40/SF 2018 Q4 30,617,816 SF 324,545 SF 240,319 SF 10.1%$15.33/SF Source: Costar® Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below. EAST INLAND EMPIRE MARKET TREND ANALYSIS TRAILING FOUR QUARTERS TREND ANALYSIS Q4 2018 2018 Last 10 Total SF 30,617,816 30,617,816 29,466,472 Vacant SF 3,084,998 3,000,546 3,004,107 Market Vacancy 10.1%9.8%10.2% Construction Growth Rate 1.1%1.6%0.6% Absorption Rate 0.8%0.6%0.5% Average Asking Rent/SF $15.33 $15.09 $13.28 Source: Costar® 17.b Packet Pg. 436 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 34 East Inland Empire Submarket Conclusion Based on the preceding analysis, the East Inland Empire Retail market demonstrates sound fundamentals. Analysis of supply and demand factors indicate the market is currently stable with no evidence to prove this will change any time soon. There are no observed weaknesses of the market that stand out. BROKER / MARKET PARTICIPANT INTERVIEWS Interviews with brokers and other market participants were conducted to put previously discussed trends and data into better context of what is really occurring in the marketplace. Ryan Gast, Senior Associate, CBRE Mr. Gast opines that the subjects highest and best use is for commercial development and that pad space or gas stations would make the most sense to develop. Furthermore, he opined that corner lots would be valued at $10 per square foot while inline lots would be $6 per square foot. However, he indicated that he did not have any sales to support the higher end of values. Mel Wagstaff, Vice President, Keller Williams Mr. Wagstaff opines that the subjects highest and best use is for commercial development and that dollar stores and gas stations would make the most sense to develop. Furthermore, he opined that the site would be valued at $6 to $7 per square foot for commercial land. Fara Raban, Manager, Opics Properties Mr. Faban is the listing broker for a twin anchor center at 555 W. 2nd St. in San Bernardino. The center is anchored by a Food 4 Less and Ross Dress For Less. According to Mr. Faban, the center has been doing very well by providing discounted products to lower middle class clients. Food 4 Less has seen an increase in their revenue from 2017 to 2018 by $300,000. He opined that the subject property could benefit by developing for lower middle-class clientele. Juan D. Gutierrez, Senior Vice President, Voit Real Estate Services Mr. Gutierrez is an industrial land broker who has been involved in many industrial land sales in the Inland Empire. He opined that the subject would be valued at $15 per square foot. However, he opined that the subjects highest and best use would be for commercial use even if it does not have the same value as comparable industrial land. Larry Lynch, President, Korek Land Company Mr. Lynch opines that the subject would be valued at $2.00 to $3.00 per square foot for commercial land. Tony Guglielmo, Broker, Allied Mr. Gugliemo opines that the subject would be valued at $2.00 to $4.00 per square foot for commercial land. TRANSACTION TRENDS In the open market, the subject property type would command most interest from national and regional buyers that are actively pursuing similar large investment properties. Refining the buyer profile a bit further, specific buyers known to be active for this property type primarily include Developers. There is currently steady buyer demand for substitute properties of the subject based on the volume of sale transactions and reports by buyers, sellers and other market participants during confirmation of market transactions. The most probable buyer is a national and regional investor. 17.b Packet Pg. 437 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 35 Sales volume of retail buildings in the Inland Empire were inconsistently rising and falling from 2009 to 2012. Sales volume increased rapidly from 2013 to 2015 before stabilizing from 2016 to 2018. Sales volume in 2019 only represents the first two months of 2019. Based on the preceding analysis, there is an established sales market for the subject property. As previously discussed, the velocity of sale transactions has been steady over the past six months. Currently there is steady buyer demand, while there is general availability for this property type on the supply side. Based on these factors, conditions are in equilibrium in regard to negotiating sale terms. SUBJECT PROPERTY ANALYSIS Based on our analysis of the subject property and investigation of substitute properties in the marketplace, the subject is considered to have Average overall buyer appeal with an Average competitive position if the asset was exposed to the open market. EXPOSURE TIME & MARKETING PERIOD Exposure time is defined as "The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based on an analysis of past events assuming a competitive and open market" (The Dictionary of Real Estate Appraisal, Appraisal Institute, 2015). Reasonable exposure time is impacted by the aggressiveness and effectiveness of a property’s exposure to market participants, availability and cost of financing, and demand for similar investments. Exposure time is best established based the recent history of marketing periods for comparable sales, discussions with market participants and information from published surveys. The availability of acquisition financing factors into exposure time. In recent quarters, financing has been available for well-positioned commercial real estate, particularly for stabilized assets within core MSAs and 17.b Packet Pg. 438 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 36 owner/user deals. For second tier or marginal properties, financing has been available but subject to more stringent requirements. Based on review of the local capital market, we conclude that adequate financing options would have been available to consummate a sale of the property on the date of value. Exposure Time Conclusion The preceding information generally supports an exposure time range from 9 to 12 months for sites similar to the subject. Based on its overall physical and locational characteristics, the subject site has average overall appeal to developers. Considering these factors, a reasonable estimate of exposure time for the subject property is six months. Marketing Period Conclusion Marketing period is very similar to exposure time, but reflects a projected time period to sell the property, rather than a retrospective estimate. Having reviewed open listings and discussed the market with local participants, and given the nature of this site, we feel that a time period of six months is supported for the subject's marketing period. 17.b Packet Pg. 439 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) HIGHEST & BEST USE ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 37 INTRODUCTION The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. We will present five separate highest and best uses of the subject property for the five contiguous sites we are valuing. We have concluded to this since each site has physical and location factors that make the highest and best use not congruent between the five contiguous sites. SITE 1 AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s Regional Downtown (CR-2) zoning were listed in the Zoning Analysis section. Overall, legal factors support a broad range of office, retail, mixed- use, and public uses for the subject site. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average/good exposure. The subject site has frontage on the north side of Spruce Street, a secondary street and the east side of N. H St. a primary arterial. The site has a N. H St. frontage of 90 feet and extends 350 feet, making for a high depth-to-frontage ratio. The site has significant frontage on W. Spruce St ., but limited exposure. The immediate area is developed with residential, retail, and motel use along nearby arterials. Specifically, the presence of motels next door and across the street show that hospitality use in the area is an appropriate and feasible use for lots with high depth to frontage ratios. Of the outright permitted uses, physical and locational features best support hospitality development, such as motel or hotel use, for the site’s highest and best use as-vacant. Feasibility Factors Regarding financial feasibility of retail properties in the submarket, the East Inland Empire Submarket are experiencing a high level of retail construction compared to historical norms. This is due to increasing asking 17.b Packet Pg. 440 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) HIGHEST & BEST USE ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 38 rent and decreasing vacancy. Within the San Bernardino city limits, there are 21 retail properties either proposed or under construction. Proximate to the subject, there are two 540 N. Arrowhead Ave. (Storefront Retail/Office): This represents the proposed construction of a 22,140 SF retail store with second story office space to be developed near the downtown area of San Bernardino. There is no established delivery date or construction date. This is three blocks east of the subject property along W. 5th St. 500 W 4th St. (Freestanding Retail): This represents the proposed construction of a 3,800 SF free standing retail building to be developed near the downtown area of San Bernardino. There is no established delivery date or construction date. This is one block southeast of the subject property and on the same block as Regal Cinemas. The subject’s high depth to frontage ratio, exposure from N. H St. and motel buildings nearby support hospitality developments, such as motel or hotel use, for the site’s highest and best use as-vacant. In addition, should hospitality use be over-built in the area an alternative highest and best use for the site would be restaurant space that would complement nearby motel buildings. Accordingly, we conclude that a hospitality or restaurant development at the subject is financially feasible. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of hospitality or retail uses. SITE 2 AS-VACANT ANALYSIS Legal Factors The legal uses are the same as previously written in Site 1. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with good access and good exposure. The subject site has frontage on the east side of N. H St., the north side of W. 5th St. and the west side of N. G St. The N. H St. and N. G. St. are secondary arterials while W. 5th St. is primary arterial. The subject also has some exposure from the south side of Spruce St., a local, or connector street. The site also has access to I-215. The immediate area is developed with residential, retail, and motel use along nearby arterials. Specifically, there are motels to the north and the In-N-Out Of the outright permitted uses, physical and locational features best support a neighborhood center, large discount store, service station, and/or buffet style restaurant development for the site’s highest and best use as-vacant. Feasibility Factors The same feasibility factors apply as for Site 1. The subject’s good exposure (a full city block of frontage along a major arterial. The subject’s larger size suggests a large retail strip center, discount store or a buffet-style restaurant, along with two corner pad sites. We note that there are neighborhood centers two blocks south of the subject, which are occupied by long term food and discount stores, such as Food 4 Less and Ross Dress For Less, which are reportedly doing well, according to property managers. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of a single-or multi-tenant retail building and two pad buildings on the hard corners. 17.b Packet Pg. 441 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) HIGHEST & BEST USE ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 39 SITE 3 AS-VACANT ANALYSIS Legal Factors The legal uses are the same as previously written in Site 1. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular and has level topography with good access and good exposure. The subject site has frontage at the northeast corner of W. 5th St. and N. G St. The site has good exposure from both arterials. The immediate area is developed with commercial buildings to the east residential to the north and vacant land (other portions of the subject to the west and south. Of the outright permitted uses, physical and locational features best support a service station and/or convenience store for the site’s highest and best use as-vacant. Feasibility Factors The same feasibility factors apply as for Site 1. The maximally productive use is a service station and/or convenience store. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of a service station and/or a convenience store. SITE 4 AS-VACANT ANALYSIS Legal Factors The legal uses are the same as previously written in Site 1. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular and has level topography with good access and good exposure. The subject site has frontage at the southeast corner of W. 5th St. and N. G St. The site has good exposure from both arterials. The immediate area is developed with government offices to the south, commercial uses to the east, with vacant land (other portions of the subject) to the west and north. Of the outright permitted uses, physical and locational features best support a strip center or convenience store for the site’s highest and best use as-vacant. Feasibility Factors The same feasibility factors apply as for Site 1. The subject site has frontage at the southeast corner of W. 5th St. and N. G St. The site has good exposure from both arterials and access to I-215. Based on this and considering the size, we conclude that a strip center or a convenience store development at the subject is financially feasible. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of a retail strip center or a convenience store. 17.b Packet Pg. 442 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) HIGHEST & BEST USE ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 40 SITE 5 AS-VACANT ANALYSIS Legal Factors The legal uses are the same as previously written in Site 1. Physical & Locational Factors The same feasibility factors apply as for Site 1. The site has good exposure at the southwest corner of W. 5th St. and N. G St. with easy access to I-215. However, the site has a high depth to frontage ratio on a portion of the property that may limit development choices. These physical and location factors support an automotive carwash or service station provider developments, as the site’s highest and best use as-vacant. In addition, should a service station or automotive use not be feasible, an alternative highest and best use for the subject might be a drive thru restaurant that could be complement the In-N-Out directly west of the site. Accordingly, I conclude that an automotive use or drive-thru restaurant development at the subject is financially feasible. Feasibility Factors The same feasibility factors apply as for Site 1. Taking into account the subject’s favorable corner location and interior parcel with a high depth to frontage ratio, we conclude the maximally productive use would be a service station or convenience store on the hard corner and another commercial use on the remainder of the property. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be commercial development in the manner described above. 17.b Packet Pg. 443 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 41 INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. We have segmented the valuation into seven separate values in this report. SALES COMPARISON APPROACH The Sales Comparison Approach is based on the principle of substitution, which asserts that no one would pay more for a property than the value of similar properties in the market. This approach analyzes comparable sales by applying transactional and property adjustments in order to bracket the subject property on an appropriate unit value comparison. The sales comparison approach is applicable when sufficient data on recent market transactions is available. Alternatively, this approach may offer limited reliability because many properties have unique characteristics that cannot be accounted for in the adjustment process. LAND VALUATION We have opined five individual values for the parcels of land that are contiguous sites. The final two values are the aggregate retail value that is the sum of all five sites valuations and a bulk value. We have provided two separate Land Sale Comparable charts and based our values of Sites 1 and 5 on the first set of Land Sale Comparables. The second set of Land Sale Comparables was used to base our values of Sites 2, 3, and 4. UNIT OF COMPARISON The most relevant unit of comparison is the price per square foot. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. 17.b Packet Pg. 444 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 42 Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of environmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on our research, the following table summarizes the market conditions adjustment applied in this analysis. MARKET CONDITIONS ADJUSTMENT Per Year As Of March 2019 (As-Is)3% The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate our logic in deriving a value opinion for the subject site. LAND VALUATION PRESENTATION SITES 1 AND 5 The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. We grouped both sites together due to their high depth to frontage ratio. LAND SALES SUMMATION TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address 745 W. Spruce St., W. 5th St., N. H St., & N. G. St. 1500 W. Highland Ave. 7775 Sierra Ave.781 E. Santa Fe St. 108 N. Waterman Ave. 2010 W. Foothill Blvd. 1077 E. Baseline St. City San Bernardino San Bernardino Fontana San Bernardino San Bernardino San Bernardino San Bernardino State CA CA CA CA CA CA CA Zip 92410 92411 92336 92408 92410 92410 92410 County San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Los Angeles APN Multiple 0148-174-13 0190-171-69, 71, 70 0280-073-08 0135-302-43 0269-291-06, 07, 09 0278-041-22, 23, 41, and 44 PHYSICAL INFORMATION SF 56,627 124,582 123,275 30,840 24,951 58,806 118,919 Shape Irregular Rectangular Rectangular Irregular Rectangular Irregular Irregular Zoning CR-2 CG1 C1 C1 C1 CH CH & RM Topography Level Level Level Level Level Level Level SALE INFORMATION Date 2/11/2019 1/30/2019 5/15/2018 10/13/2017 8/3/2017 Status Listing Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $750,000 $850,000 $164,000 $150,000 $190,000 $345,000 $/SF Land $6.02 $6.90 $5.32 $6.01 $3.23 $2.90 17.b Packet Pg. 445 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 43 LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/SF SUBJECT -745 W. Spruce St., W. 5th St., N. H St., & N. G. St. , San Bernardino, CA No. 1 2.3 Miles 1500 W. Highland Ave., San Bernardino, CA 3/4/2019 2.9 124,582 $6.02 No. 2 7.8 Miles 7775 Sierra Ave., Fontana, CA 2/11/2019 2.8 123,275 $6.90 No. 3 2.2 Miles 781 E. Santa Fe St., San Bernardino, CA 1/30/2019 0.7 30,840 $5.32 No. 4 1.2 Miles 108 N. Waterman Ave., San Bernardino, CA 5/15/2018 2.4 24,951 $6.01 No. 5 1.9 Miles 2010 W. Foothill Blvd., San Bernardino, CA 10/13/2017 1.4 58,806 $3.23 No. 6 2.2 Miles 1077 E. Baseline St., San Bernardino, CA 8/3/2017 2.7 118,919 $2.90 17.b Packet Pg. 446 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 44 COMPARABLE 1 LOCATION INFORMATION Name Commercial Land Address 1500 W. Highland Ave. City, State, Zip Code San Bernardino, CA, 92411 County San Bernardino APN 0148-174-13 SALE INFORMATION Buyer Listing Seller SHELTON HENRY W Transaction Date 03/4/2019 Transaction Status Listing Transaction Price $750,000 Analysis Price $750,000 Rights Transferred Fee Simple COMMERCIAL LAND Conditions of Sale Listing ANALYSIS INFORMATION PHYSICAL INFORMATION Price $/Acre $/SF Intended Use Commercial Gross $262,238 $6.02 Location Average Net $262,238 $6.02 Frontage Average CONFIRMATION Site Size Acres SF Name Ron Kemper Net 2.86 124,582 Company Kemper Realtors Gross 2.86 124,582 Source Seller's Broker Zoning CG1 Date / Phone Number 03/4/2019 +1 909 744 7504 Shape Rectangular REMARKS Topography Level Access Average Exposure Average This represents the listing of a commercial site as of March,2019 in the city of San Bernardino. The site consists of a single parcel - APN0148-174-13. The site totals 124,582 SF,or 2.86 acres. The site is zoned CG-1 for commercial uses and fronts a major arterial.It is rectangular shaped. The site was not entitled at the time of sale. The listing price was $750,000. 17.b Packet Pg. 447 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 45 COMPARABLE 2 LOCATION INFORMATION Name Commercial Land Address 7775 Sierra Ave. City, State, Zip Code Fontana, CA, 92336 County San Bernardino APN 0190-171-69, 71, 70 SALE INFORMATION Buyer Funline Inc. Seller Sedayesh LLC Transaction Date 02/11/2019 Transaction Status Recorded Transaction Price $850,000 Analysis Price $850,000 Recording Number 43825 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $300,353 $6.90 Intended Use Commercial Net $300,353 $6.90 Location Average CONFIRMATION Frontage Average Name Deanne Boublis Site Size Acres SF Company Korek Land Company Net 2.83 123,275 Source Seller's Broker Gross 2.83 123,275 Date / Phone Number 03/4/2019 +1 818 787 3077 Zoning C1 REMARKS Shape Rectangular Topography Level Access Average Exposure Fair/Average This represents the February 2019 sale of a commercial site located in the city of San Bernardino. The site consists of three contiguous parcels - APN 0190-171- 69, 70, and 71. The site totals 123,275 SF, or 2.83 acres. The site is zoned C-1 for commercial uses.It is rectangular shaped. The subject property was vacant land when sold. The site will be developed into commercial buildings. The site was not entitled at the time of sale. The purchase price was $850,000. 17.b Packet Pg. 448 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 46 COMPARABLE 3 LOCATION INFORMATION Name Commercial Land Address 781 E. Santa Fe St. City, State, Zip Code San Bernardino, CA, 92408 County San Bernardino APN 0280-073-08 SALE INFORMATION Buyer Ricardo/Hinojosa Seller Jerje & Eva Saliba Transaction Date 01/30/2019 Transaction Status Recorded Transaction Price $164,000 Analysis Price $164,000 Recording Number 31161 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $230,986 $5.32 Intended Use Commercial Net $230,986 $5.32 Location Average CONFIRMATION Frontage Average Name Bud Reynolds Site Size Acres SF Company Coldwell Banker Commercial Net 0.71 30,840 Source Offering Memorandum Gross 0.71 30,840 Date / Phone Number 03/5/2019 +1 909 980 6868 Zoning C1 REMARKS Shape Irregular Topography Level Access Average Exposure Good This represents the January 2019 sale of a commercial site, located in the southeasterly portion of San Bernardino. The site is zoned C1 for commercial uses.It is irregularly shaped. The site was not entitled at the time of sale. The purchase price was $164,000. The property is currently used as a construction yard. It is removed from a commercial district and adjacent to an industrial area. 17.b Packet Pg. 449 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 47 COMPARABLE 4 LOCATION INFORMATION Name Commercial Land Address 108 N. Waterman Ave. City, State, Zip Code San Bernardino, CA, 92410 County San Bernardino APN 0135-302-43 SALE INFORMATION Transaction Date 05/15/2018 Transaction Status Recorded Transaction Price $150,000 Analysis Price $150,000 Recording Number 176024 Rights Transferred Fee Simple Conditions of Sale Arms-Length COMMERCIAL LAND PHYSICAL INFORMATION ANALYSIS INFORMATION Intended Use Commercial Price $/Acre $/SF Location Average Gross $263,158 $6.01 Frontage Average Net $263,158 $6.01 Site Size Acres SF CONFIRMATION Net 0.57 24,951 Name Confidential Gross 0.57 24,951 Company Confidential Zoning C1 Source Knowledgeable Third Party Shape Rectangular Date / Phone Number 03/15/2019 Confidential Topography Level REMARKS Access Average Exposure Average This represents the May 2018 sale of a commercial site . The site consists of a single parcel parcels - APN0135-302-43. The site totals 24,951 SF,or 0.57 acres. The site is zoned C1 for commercial uses.It is rectangular shaped. The site was not entitled at the time of sale. The purchase price was $150,000. 17.b Packet Pg. 450 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 48 COMPARABLE 5 LOCATION INFORMATION Name Commercial Land Address 2010 W. Foothill Blvd. City, State, Zip Code San Bernardino, CA, 92410 County San Bernardino APN 0269-291-06, 07, 09 SALE INFORMATION Buyer Transportation Development LLC Seller Willemsen Ronald C Transaction Date 10/13/2017 Transaction Status Recorded Transaction Price $190,000 Analysis Price $190,000 Rights Transferred Fee Simple COMMERCIAL LAND Conditions of Sale Arms-Length ANALYSIS INFORMATION PHYSICAL INFORMATION Price $/Acre $/SF Intended Use Commercial Gross $140,741 $3.23 Location Average Net $140,741 $3.23 Frontage Average CONFIRMATION Site Size Acres SF Name John Morrissey Net 1.35 58,806 Company MGR Real Estate Gross 1.35 58,806 Source Offering Memorandum Zoning CH Date / Phone Number 03/5/2019 +1 909 608 2165 Shape Irregular REMARKS Topography Level Access Average Exposure Average This represents the October 2017 sale of a commercial site located in the city of San Bernardino. The site consists of three contiguous parcels - APN 0269-291- 06, 07,&09.The site totals 297,515 SF,or 6.83 acres. The site is zoned CH for commercial uses.It is irregularly shaped. The site was not entitled at the time of sale. The purchase price was $675,493. 17.b Packet Pg. 451 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 49 COMPARABLE 6 LOCATION INFORMATION Name Commercial Land Address 1077 E. Baseline St. City, State, Zip Code San Bernardino, CA, 92410 County Los Angeles APN 0278-041-22, 23, 41, and 44 SALE INFORMATION Buyer De Diocese of San Bernardino Land Seller Holland Dorothy G Trust Transaction Date 08/3/2017 Transaction Status Recorded Transaction Price $345,000 Analysis Price $345,000 Recording Number 317327 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $126,374 $2.90 Intended Use Commercial Net $126,374 $2.90 Location Average CONFIRMATION Frontage Average Name Tony Guglielmo Site Size Acres SF Company Allied Commercial Real Estate Net 2.73 118,919 Source Seller's Broker Gross 2.73 118,919 Date / Phone Number 03/4/2019 +1 909 786 4300 Zoning CH & RM REMARKS Shape Irregular Topography Level Access Average Exposure Average This represents the August 2017 sale of a commercial site located in the city of San Bernardino. The site consists of four contiguous parcels - APN0279-041-22, 23, 41, and 44.The site totals 118,919 SF,or 2.73 acres. The site is zoned CH & RM for commercial and residential uses.It is irregular shaped. The site was not entitled at the time of sale. The purchase price was $345,000. 17.b Packet Pg. 452 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 50 LAND SALES ANALYSIS – SITES 1 AND 5 Introduction This analysis pertains to Sites 1 and 5, which are similar in size and have shape configurations that result in higher than average frontage to depth ratios. The analysis commences with Site 1, with its location at the southeast corner of H Street and Spruce Street, a secondary arterial proximate to the 215 Freeway and a secondary street. We consider this a secondary retail location. The comparable land sales indicate an adjusted value range from $3.81 to $4.79/SF, with a median of $4.17/SF and an average of $4.11/SF. The range of total net adjustment applied to the comparables was from -40% to 31%. The level of total adjustment applied to the comparables is considered moderate for development land, an indication that the dataset is applicable to the subj ect and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs. LAND SALES ADJUSTMENT TABLE - SITE 1 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address 745 W. Spruce St., W. 5th St., N. 1500 W. Highland Ave. 7775 Sierra Ave.781 E. Santa Fe St.108 N. Waterman Ave. 2010 W. Foothill Blvd.1077 E. Baseline St. City San Bernardino San Bernardino Fontana San Bernardino San Bernardino San Bernardino San Bernardino APN Multiple 0148-174-13 0190-171-69, 71, 70 0280-073-08 0135-302-43 0269-291-06, 07, 09 0278-041-22, 23, 41, and 44 SF 42,689 124,582 123,275 30,840 24,951 58,806 118,919 Shape Irregular Rectangular Rectangular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Average Zoning CR-2 CG1 C1 C1 C1 CH CH & RM Entitled No No No No No No No SALE INFORMATION Date 2/11/2019 1/30/2019 5/15/2018 10/13/2017 8/3/2017 Status Listing Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $750,000 $850,000 $164,000 $150,000 $190,000 $345,000 Price/SF $6.02 $6.90 $5.32 $6.01 $3.23 $2.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0%0% Conditions of Sale -10%0%0%0%0%0% Financing 0%0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0%0% Market Conditions¹0%0%0%3%4%5% Subtotal Transactional Adj Price $5.42 $6.90 $5.32 $6.19 $3.36 $3.05 PROPERTY ADJUSTMENTS Location -5%-20%5%0%10%10% Size 10%10%-5%-10%0%10% Exposure -20%-20%0%-10%5%5% Access 0%0%0%0%0%0% Shape -10%-10%-10%-10%0%0% Zoning 0%0%0%0%0%0% Envrmtl Issues 0%0%0%0%0%0% Entitled 0%0%0%0%0%0% Subtotal Property Adjustment -25%-40%-10%-30%15%25% TOTAL ADJUSTED PRICE $4.07 $4.14 $4.79 $4.33 $3.86 $3.81 STATISTICS UNADJUSTED ADJUSTED LOW $2.90 $3.81 HIGH $6.90 $4.79 MEDIAN $5.67 $4.11 AVERAGE $5.06 $4.17 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 17.b Packet Pg. 453 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 51 Discussion of Adjustments The following adjustments were made: Conditions of Sale – A downward adjustment was made to Comparable 1 due to its status as a listing. Market Conditions – Upward adjustments were made to Comparables 4, 5, and 6 due to improvements in market conditions. Location – Downward adjustments were made to Comparables 1 and 2 for their superior neighborhoods. Upward adjustments were warranted for Comparables 3, 5 and 6 as their locations were removed from a commercial district. Size – Upward adjustments were made to Comparables 1, 2 and 6, as larger sites typically result in a lower $/SF. Downward adjustments were made to Comparables 3 and 4 as smaller sites typically result in a higher $/SF. Exposure – Downward adjustments were made to Comparables 1, 2 and 4, due to the higher traffic counts on primary arterials. Upward adjustments were applied to Comparables 5 and 6 for inferior exposure. Shape – Downward adjustments were made to Comparables 1 through 4 due to their generally rectangular shapes. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $3.81 to $4.79/SF, with a median of $4.17/SF and an average of $4.11/SF. Based on the results of the preceding analysis, Comparable 1 ($4.07/SF adjusted), Comparable 4 ($4.33/SF adjusted), and Comparable 5 ($3.86/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 4 and 5 establish the applicable value range, from $3.86 to $4.33/SF. Comparable 4 was adjusted for its superior exposure in that it has a wider street frontage, for shape as it has a lower frontage to depth ratio and for size as it is consistent with a retail pad site. Overall, this comparable is considered to be superior to the subject after adjustments. Comparable 5 has a very limited access and exposure from the east. It is has a relatively high frontage to depth ratio and its San Bernardino location is inferior to the subject. Overall, this comparable is considered to be inferior to the subject after adjustments. Comparable 1 is a listing and yet it given primary weight, due to its overall similarity to the subject. Its superior, rectangular shape is offset by its inferior, non-corner location. Further, its inferior, larger size and high frontage to depth ratio is offset by superior exposure along a primary thoroughfare. Overall, this comparable is considered to be similar to the subject after adjustments. These three comparables provide a relatively tight value range on a $/SF basis, with an average of $4.09/SF. Based on our analysis, we conclude to $4.15/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.b Packet Pg. 454 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 52 NOTES ON THE PRECEDING ADJUSTMENTS The net adjustment is calculated by diving the final by the analysis price and subtracting 1, which is the correct methodology. The variance between this figure and the sum of the transactional and property adjustments is correct because transactional adjustments are made against the sale price, while property adjustments are made against the transactional adjustment price. For example, Comparable 1 has a net adjustment of -32% ($4.07 ÷ $6.02)-1. This is different than the -35% (- 10% + -25%) addition that would be made if we sampling added the transactional and property adjustments. This is because the transactional adjustment is made against the sale price ($6.02), while the property adjustments are made against the subtotal transactional adjustment price ($5.42). The following table is taken from the adjustment grid on Page 50: This methodology is consistent with appraisal theory and has been used in the remainder of this valuation. CALCULATION OF LAND VALUE - SITE 1 ANALYSIS ADJUSTMENT NET OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %COMPARISON 1 $6.02 -10%$5.42 -25%$4.07 -32%PRIMARY 2 $6.90 0%$6.90 -40%$4.14 -40%SECONDARY 3 $5.32 0%$5.32 -10%$4.79 -10%SECONDARY 4 $6.01 3%$6.19 -30%$4.33 -28%PRIMARY 5 $3.23 4%$3.36 15%$3.86 20%PRIMARY 6 $2.90 5%$3.05 25%$3.81 31%SECONDARY LOW $3.81 AVERAGE $4.17 HIGH $4.79 MEDIAN $4.11 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 1 42,689 x $4.15 =$180,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.b Packet Pg. 455 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 53 Site 5 The analysis focuses on Site 5, with its location at the southwest corner of 5th Street and G Street, primary and secondary arterials, respectively. LAND SALES ADJUSTMENT TABLE - SITE 5 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address 745 W. Spruce St., W. 5th St., N. 1500 W. Highland Ave. 7775 Sierra Ave.781 E. Santa Fe St.108 N. Waterman Ave. 2010 W. Foothill Blvd.1077 E. Baseline St. City San Bernardino San Bernardino Fontana San Bernardino San Bernardino San Bernardino San Bernardino APN Multiple 0148-174-13 0190-171-69, 71, 70 0280-073-08 0135-302-43 0269-291-06, 07, 09 0278-041-22, 23, 41, and 44 SF 56,627 124,582 123,275 30,840 24,951 58,806 118,919 Shape Irregular Rectangular Rectangular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Average Zoning CR-2 CG1 C1 C1 C1 CH CH & RM Entitled No No No No No No No SALE INFORMATION Date 2/11/2019 1/30/2019 5/15/2018 10/13/2017 8/3/2017 Status Listing Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $750,000 $850,000 $164,000 $150,000 $190,000 $345,000 Price/SF $6.02 $6.90 $5.32 $6.01 $3.23 $2.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0%0% Conditions of Sale -10%0%0%0%0%0% Financing 0%0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0%0% Market Conditions¹0%0%0%3%4%5% Subtotal Transactional Adj Price $5.42 $6.90 $5.32 $6.19 $3.36 $3.05 PROPERTY ADJUSTMENTS Location -5%-20%5%0%10%10% Size 10%10%-5%-10%0%10% Exposure 10%10%20%10%30%30% Access 0%0%0%0%0%0% Shape -5%-10%0%0%10%10% Zoning 0%0%0%0%0%0% Envrmtl Issues 0%0%0%0%0%0% Entitled 0%0%0%0%0%0% Subtotal Property Adjustment 10%-10%20%0%50%60% TOTAL ADJUSTED PRICE $5.96 $6.21 $6.38 $6.19 $5.04 $4.88 STATISTICS UNADJUSTED ADJUSTED LOW $2.90 $4.88 HIGH $6.90 $6.38 MEDIAN $5.67 $6.08 AVERAGE $5.06 $5.78 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 The comparable land sales indicate an adjusted value range from $4.88 to $6.38/SF, with a median of $6.08/SF and an average of $5.78/SF. The range of total net adjustment applied to the comparab les was from -10% to 68%, with an average net adjustment across all comparables of 23%. The level of total adjustment applied to the comparables is considered moderate for development land, an indication that the dataset is applicable to the subject and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs. Discussion of Adjustments The following adjustments were made: Conditions of Sale – A downward adjustment was made to Comparable 1 due to its status as a listing. Market Conditions – Upward adjustments were made to Comparables 3, 4, 5, and 6 due to improvements in market conditions. 17.b Packet Pg. 456 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 54 Location – Downward adjustments were made to Comparables 1 and 2 for their superior neighborhoods. Upward adjustments were warranted for Comparables 3, 5 and 6 as their locations are removed from a commercial district. Size – Upward adjustments were made to Comparables 1, 2 and 6, as larger sites typically result in a lower $/SF. Downward adjustments were made to Comparables 3 and 4 as smaller sites typically result in a higher $/SF. Exposure – Upward adjustments were made to all comparables due to the lower traffic and non-corner locations, which have inferior visibility. Shape – Downward adjustments were made to Comparables 1 and 2, due to their generally rectangular shapes. Upward adjustments were made to Comparables 5 and 6. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $4.88 to $6.38/SF, with a median of $6.08/SF and an average of $5.78/SF. Based on the results of the preceding analysis, Comparable 2 ($6.21/SF adjusted), Comparable 3 ($6.38/SF adjusted) and Comparable 4 ($6.19/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 2, 3 and 4 establish the applicable value range, from $6.19 to $6.38/SF. As adjusted, these comparables are most similar to the subject. Comparable 2 was adjusted for its superior Fontana location and for its superior, rectangular shape. It also required adjustments for inferior (larger) size, which typically results in a lower $/SF, all other factors being equal, and for its inferior, non-corner exposure. Overall, this comparable is considered to be slightly inferior to the subject after adjustments. Comparable 3 was adjusted for its superior size, which typically results in a higher $/SF, all other factors being equal. It also required adjustments for inferior location in a more industrial location and inferior, non-corner exposure. Overall, this comparable is considered to be slightly superior to the subject after adjustments. Comparable 4 was adjusted for its superior size, which typically results in a higher $/SF, all other factors being equal. This adjustment is offset by its inferior, non-corner exposure. These adjustments effectively cancel out one another, resulting in no net adjustment. Overall, this comparable is considered to be slightly inferior to the subject after adjustments These three comparables provide a relatively tight value range on a $/SF basis, with an average of $6.26/SF. Based on our analysis, we conclude to $6.30/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.b Packet Pg. 457 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 55 CALCULATION OF LAND VALUE - SITE 5 ANALYSIS ADJUSTMENT NET OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %COMPARISON 1 $6.02 -10%$5.42 10%$5.96 -1%SECONDARY 2 $6.90 0%$6.90 -10%$6.21 -10%PRIMARY 3 $5.32 0%$5.32 20%$6.38 20%PRIMARY 4 $6.01 3%$6.19 0%$6.19 3%PRIMARY 5 $3.23 4%$3.36 50%$5.04 56%SECONDARY 6 $2.90 5%$3.05 60%$4.88 68%SECONDARY LOW $4.88 AVERAGE $5.78 HIGH $6.38 MEDIAN $6.08 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 5 54,450 x $6.30 =$340,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.b Packet Pg. 458 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 56 LAND VALUATION TWO PRESENTATION – SITES 2, 3, AND 4 The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. We grouped all three sites due to their similar qualities of location on a primary corridor, good frontage to depth ratio, and easy access to the I- 215. LAND SALES SUMMATION TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address N/s 5th St. Between G and H Streets 1400 W. Baseline Rd. 108 E. 3rd St.108 N. Waterman Ave. 3003 N. E. St.7775 Sierra Ave. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Fontana Zip 92410 92411 92410 92410 92405 92336 County San Bernardino San Bernardino San Bernardino San Bernardino Los Angeles San Bernardino APN Multiple 0143-181-56 0135-181-58 0135-302-43 0152-193-29 0190-171-69, 71, 70 PHYSICAL INFORMATION Acres 2.47 0.57 0.32 0.57 0.41 2.83 SF 107,593 24,829 13,752 24,951 17,677 123,275 Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Zoning CR-2 CG1 C1 C1 CR1 C1 Entitled No No No No No No SALE INFORMATION Date 2/8/2019 1/17/2019 5/15/2018 12/19/2017 2/11/2019 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $230,000 $190,000 $150,000 $250,000 $850,000 $/SF Land $9.26 $13.82 $6.01 $14.14 $6.90 17.b Packet Pg. 459 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 57 LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/SF SUBJECT -745 W. Spruce St., W. 5th St., N. H St., & N. G. St. , San Bernardino, CA No. 1 1.4 Miles 1400 W. Baseline Rd., San Bernardino, CA 2/8/2019 0.6 24,829 $9.26 No. 2 0.8 Miles 108 E. 3rd St., San Bernardino, CA 1/17/2019 0.3 13,752 $13.82 No. 3 1.2 Miles 108 N. Waterman Ave., San Bernardino, CA 5/15/2018 0.6 24,951 $6.01 No. 4 2.7 Miles 3003 N. E. St., San Bernardino, CA 12/19/2017 0.4 17,677 $14.14 No. 5 7.8 Miles 7775 Sierra Ave., Fontana, CA 2/11/2019 2.8 123,275 $6.90 17.b Packet Pg. 460 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 58 COMPARABLE 1 LOCATION INFORMATION Name Commercial Land Address 1400 W. Baseline Rd. City, State, Zip Code San Bernardino, CA, 92411 County San Bernardino APN 0143-181-56 SALE INFORMATION Buyer Alferedo Torres Seller Sevilla Gilbert Z Trust Transaction Date 02/8/2019 Transaction Status Recorded Transaction Price $230,000 Analysis Price $230,000 Recording Number 43204 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $403,509 $9.26 Intended Use Commercial Net $403,509 $9.26 Location Average CONFIRMATION Frontage Average Name Robert Villa Site Size Acres SF Company GMAC Park Place Realty Net 0.57 24,829 Source Knowledgeable Third Party Gross 0.57 24,829 Date / Phone Number 03/15/2019 +1 909 980 2244 Zoning CG1 REMARKS Shape Rectangular Topography Level Access Average Exposure Average This represents the February 2019 sale of a commercial site located in the city of San Bernardino. The site consists of a single parcel - APN0143-181-56. The site totals 24,829 SF,or 0.57 acres. The site is zoned CG1 for commercial uses.It is rectangular shaped. The site was not entitled at the time of sale. The purchase price was $230,000. 17.b Packet Pg. 461 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 59 COMPARABLE 2 LOCATION INFORMATION Name Commercial Land Address 108 E. 3rd St. City, State, Zip Code San Bernardino, CA, 92410 County San Bernardino APN 0135-181-58 SALE INFORMATION Buyer Liang S & Lin 2006 F & Tr Seller Singer Susan L H Transaction Date 01/17/2019 Transaction Status Recorded Transaction Price $190,000 Analysis Price $190,000 Recording Number 147092 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $593,750 $13.82 Intended Use Commercial Net $593,750 $13.82 Location Average CONFIRMATION Frontage Average Name Violet Sinclaire Site Size Acres SF Company Marker SF Net 0.32 13,752 Source Knowledgeable Third Party Gross 0.32 13,752 Date / Phone Number 01/17/2019 +1 415 713 9420 Zoning C1 REMARKS Shape Rectangular Topography Level Access Average Exposure Average This represents the January 2019 sale of a commercial site located in the city of San Bernardino. The site consists of a single parcel, two contiguous parcels - APN 0135-181-58. The site totals 13,752 SF,or 0.32 acres. The site is zoned C1 for commercial uses.It is rectangular shaped. The site was not entitled at the time of sale. The purchase price was $190,000. The property is proximate to San Bernardino Superior Court in a more revitalized area of downtown. 17.b Packet Pg. 462 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 60 COMPARABLE 3 LOCATION INFORMATION Name Commercial Land Address 108 N. Waterman Ave. City, State, Zip Code San Bernardino, CA, 92410 County San Bernardino APN 0135-302-43 SALE INFORMATION Transaction Date 05/15/2018 Transaction Status Recorded Transaction Price $150,000 Analysis Price $150,000 Recording Number 176024 Rights Transferred Fee Simple Conditions of Sale Arms-Length COMMERCIAL LAND PHYSICAL INFORMATION ANALYSIS INFORMATION Intended Use Commercial Price $/Acre $/SF Location Average Gross $263,158 $6.01 Frontage Average Net $263,158 $6.01 Site Size Acres SF CONFIRMATION Net 0.57 24,951 Name Confidential Gross 0.57 24,951 Company Confidential Zoning C1 Source Knowledgeable Third Party Shape Rectangular Date / Phone Number 03/15/2019 Confidential Topography Level REMARKS Access Average Exposure Fair This represents the May 2018 sale of a commercial site . The site consists of a single parcel parcels - APN0135-302-43. The site totals 24,951 SF,or 0.57 acres. The site is zoned C1 for commercial uses.It is rectangular shaped. The site was not entitled at the time of sale. The purchase price was $150,000. The site is on a secondary corner with limited visibility for northbound traffic. 17.b Packet Pg. 463 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 61 COMPARABLE 4 LOCATION INFORMATION Name Commercial Land Address 3003 N. E. St. City, State, Zip Code San Bernardino, CA, 92405 County Los Angeles APN 0152-193-29 SALE INFORMATION Buyer Yum Yum Donut Shops Inc Seller Schneider R/e Assoc Inc Transaction Date 12/19/2017 Transaction Status Recorded Transaction Price $250,000 Analysis Price $250,000 Recording Number 536259 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $609,756 $14.14 Intended Use Commercial Net $609,756 $14.14 Location Average CONFIRMATION Frontage Average Name Confidential Site Size Acres SF Company Confidential Net 0.41 17,677 Source Knowledgeable Third Party Gross 0.41 17,677 Date / Phone Number 03/15/2019 Confidential Zoning CR1 REMARKS Shape Rectangular Topography Flat Access Average Exposure Good This represents the December 2017 sale of a commercial site located in the city of San Bernardino. The site consists of, two contiguous parcels - APN0152-193-29, 30.The site totals 17,677 SF,or 0.41 acres. The site is zoned CR-1 for commercial uses.It is rectangular shaped and on a prime corner next to the I-210 Freeway. The site was not entitled at the time of sale. The purchase price was $250,000. 17.b Packet Pg. 464 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 62 COMPARABLE 5 LOCATION INFORMATION Name Commercial Land Address 7775 Sierra Ave. City, State, Zip Code Fontana, CA, 92336 County San Bernardino APN 0190-171-69, 71, 70 SALE INFORMATION Buyer Funline Inc. Seller Sedayesh LLC Transaction Date 02/11/2019 Transaction Status Recorded Transaction Price $850,000 Analysis Price $850,000 Recording Number 43825 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $300,353 $6.90 Intended Use Commercial Net $300,353 $6.90 Location Average CONFIRMATION Frontage Average Name Deanne Boublis Site Size Acres SF Company Korek Land Company Net 2.83 123,275 Source Seller's Broker Gross 2.83 123,275 Date / Phone Number 03/4/2019 +1 818 787 3077 Zoning C1 REMARKS Shape Rectangular Topography Level Access Average Exposure Average This represents the February 2019 sale of a commercial site located in the city of San Bernardino. The site consists of three contiguous parcels - APN 0190-171- 69, 70, and 71. The site totals 123,275 SF, or 2.83 acres. The site is zoned C-1 for commercial uses.It is rectangular shaped. The subject property was vacant land when sold. The site will be developed into commercial buildings. The site was not entitled at the time of sale. The purchase price was $850,000. 17.b Packet Pg. 465 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 63 Site 2 This analysis focuses on Site 2, with its location along the north side of 5th St. with two hard corners at G and H streets. This is considered to be a primary retail location. LAND SALES ADJUSTMENT TABLE - SITE 2 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address N/s 5th St. Between G and H Streets 1400 W. Baseline Rd. 108 E. 3rd St.108 N. Waterman Ave. 3003 N. E. St.7775 Sierra Ave. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Fontana APN Multiple 0143-181-56 0135-181-58 0135-302-43 0152-193-29 0190-171-69, 71, 70Acres2.47 0.57 0.32 0.57 0.41 2.83 SF 107,593 24,829 13,752 24,951 17,677 123,275 Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Zoning CR-2 CG1 C1 C1 CR1 C1 Entitled No No No No No No SALE INFORMATION Date 2/8/2019 1/17/2019 5/15/2018 12/19/2017 2/11/2019 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $230,000 $190,000 $150,000 $250,000 $850,000 Price/SF $9.26 $13.82 $6.01 $14.14 $6.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Financing 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%1%3%4%0% Subtotal Transactional Adj Price $9.26 $13.96 $6.19 $14.71 $6.90 PROPERTY ADJUSTMENTS Location 0%-10%0%-20%-20% Size -20%-30%-20%-25%0% Exposure 10%0%20%0%10% Access 0%0%10%0%10% Shape 0%0%0%0%0% Zoning 0%0%0%0%0% Topography 0%0%0%0%0% Easements 0%0%0%0%0% Envrmtl Issues 0%0%0%0%0% Entitled 0%0%0%0%0% Subtotal Property Adjustment -10%-40%10%-45%0% TOTAL ADJUSTED PRICE $8.33 $8.38 $6.81 $8.09 $6.90 STATISTICS UNADJUSTED ADJUSTED LOW $6.01 $6.81 HIGH $14.14 $8.38 MEDIAN $9.26 $8.09 AVERAGE $10.03 $7.70 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 The comparable land sales indicate an adjusted value range from $6.81 to $8.38/SF, with a median of $8.09/SF and an average of $7.70/SF. The range of total net adjustment applied to the comparables was from -43% to 13%, with an average net adjustment across all comparables of -16%. The level of total adjustment applied to the comparables is considered minimal for development land, an indication that the dataset is applicable to the subject and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs. 17.b Packet Pg. 466 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 64 Discussion of Adjustments The following adjustments were made: Market Conditions – Upward adjustments were made to Comparables 2, 3 and 4 due to improvements in market conditions. Location – Downward adjustments were made to Comparables 2, 4 and 5 for their superior neighborhoods. Size – Downward adjustments were made to Comparables 1 through 4 as smaller sites typically result in a higher $/SF. Exposure – Upward adjustments were made to Comparables 1, 3 and 5, due to the lower traffic and non- corner locations. Access – Upward adjustments were made to Comparables 3 and 5, due fewer points of access per SF of site size. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $6.81 to $8.38/SF, with a median of $8.09/SF and an average of $7.70/SF. Based on the results of the preceding analysis, Comparable 3 ($6.81/SF adjusted), Comparable 4 ($8.09/SF adjusted) and Comparable 5 ($6.90/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 3, 4 and 5 establish the applicable value range, from $6.81 to $8.09/SF. As adjusted, these comparables are most similar to the subject. Comparable 3 was adjusted for its superior size, which typically results in a higher $/SF, all other factors being equal. This adjustment is offset by its inferior, non-corner exposure and for inferior access as the subject extends along an entire city block, allowing for multiple points of access. Overall, this comparable is considered to be inferior to the subject after adjustments. Comparable 4 was adjusted for its superior location proximate to the Superior Court Building and superior size, which typically results in a higher $/SF, all other factors being equal. Overall, this comparable is considered to be superior inferior to the subject after adjustments. Comparable 5 was adjusted for its superior Fontana location. This adjustment is offset by its inferior, non- corner exposure and for inferior access as the subject extends along an entire city block, allowing for multiple points of access. Overall, this comparable is considered to be inferior to the subject after adjustments. These three comparables provide a relatively tight value range on a $/SF basis, with an average of $7.27/SF. Based on our analysis, we conclude to $7.50/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.b Packet Pg. 467 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 65 CALCULATION OF LAND VALUE - SITE 2 ANALYSIS ADJUSTMENT NET OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %COMPARISON 1 $9.26 0%$9.26 -10%$8.33 -10%SECONDARY 2 $13.82 1%$13.96 -40%$8.38 -39%SECONDARY 3 $6.01 3%$6.19 10%$6.81 13%PRIMARY 4 $14.14 4%$14.71 -45%$8.09 -43%PRIMARY 5 $6.90 0%$6.90 0%$6.90 0%PRIMARY LOW $6.81 AVERAGE $7.70 HIGH $8.38 MEDIAN $8.09 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 2 107,593 x $7.50 =$810,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.b Packet Pg. 468 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 66 Site 3 This analysis focuses on Site 2, with its location at the northeast corner of 5th and G and H streets. The comparable land sales indicate an adjusted value range from $8.67 to $11.87/SF, with a median of $10.19/SF and an average of $10.29/SF. The range of total net adjustment applied to the comparables was from -17% to 44%. The level of total adjustment applied to the comparables is considered moderate for LAND SALES ADJUSTMENT TABLE - SITE 3 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address NEC 5th St. & G St. 1400 W. Baseline Rd. 108 E. 3rd St.108 N. Waterman Ave. 3003 N. E. St.7775 Sierra Ave. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Fontana APN Multiple 0143-181-56 0135-181-58 0135-302-43 0152-193-29 0190-171-69, 71, 70 Acres 0.52 0.57 0.32 0.57 0.41 2.83 SF 22,651 24,829 13,752 24,951 17,677 123,275 Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Zoning CR-2 CG1 C1 C1 CR1 C1 Entitled No No No No No No SALE INFORMATION Date 2/8/2019 1/17/2019 5/15/2018 12/19/2017 2/11/2019 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $230,000 $190,000 $150,000 $250,000 $850,000 Price/SF $9.26 $13.82 $6.01 $14.14 $6.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Financing 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%1%3%4%0% Subtotal Transactional Adj Price $9.26 $13.96 $6.19 $14.71 $6.90 PROPERTY ADJUSTMENTS Location 0%-10%0%-20%-20% Size 0%-5%0%0%30% Exposure 10%0%30%0%10% Access 0%0%10%0%10% Shape 0%0%0%0%0% Zoning 0%0%0%0%0% Topography 0%0%0%0%0% Easements 0%0%0%0%0% Envrmtl Issues 0%0%0%0%0% Entitled 0%0%0%0%0% Subtotal Property Adjustment 10%-15%40%-20%30% TOTAL ADJUSTED PRICE $10.19 $11.87 $8.67 $11.77 $8.97 STATISTICS UNADJUSTED ADJUSTED LOW $6.01 $8.67 HIGH $14.14 $11.87 MEDIAN $9.26 $10.19 AVERAGE $10.03 $10.29 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 17.b Packet Pg. 469 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 67 development land, an indication that the dataset is applicable to the subject and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs. Discussion of Adjustments The following adjustments were made: Market Conditions – Upward adjustments were made to Comparables 2, 3 and 4 due to improvements in market conditions. Location – Downward adjustments were made to Comparables 2, 4 and 5 for their superior neighborhoods. Size – A downward adjustment was made to Comparables 2 as smaller sites typically result in a higher $/SF. A considerably higher upward adjustment was made to Comparable 5 as larger sites typically result in a lower $/SF. Exposure – Upward adjustments were made to Comparables 1, 3 and 5, due to the lower traffic and non- corner locations. Access – Upward adjustments were made to Comparables 3 and 5, due fewer points of access per SF of site size. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $8.67 to $11.87/SF, with a median of $10.19/SF and an average of $10.29/SF. Based on the results of the preceding analysis, Comparable 1 ($10.19/SF adjusted), Comparable 2 ($11.87/SF adjusted) and Comparable 4 ($11.77/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 1, 2 and 4 establish the applicable value range, from $10.19 to $11.87/SF. Comparable 1 was adjusted for its inferior exposure based on traffic count. Overall, this comparable is considered to be inferior to the subject after adjustments. Comparable 2 was adjusted for its superior location proximate to the Superior Court building and for superior (smaller) size. Overall, this comparable is considered to be superior to the subject after adjustments. Comparable 4 was adjusted for its superior location north of I-210. Overall, this comparable is considered to be superior to the subject after adjustments. These three comparables provide a relatively tight value range on a $/SF basis, with an average of $11.28/SF. Based on our analysis, we conclude to $11.50/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.b Packet Pg. 470 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 68 CALCULATION OF LAND VALUE - SITE 3 ANALYSIS ADJUSTMENT NET OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %COMPARISON 1 $9.26 0%$9.26 10%$10.19 10%PRIMARY 2 $13.82 1%$13.96 -15%$11.87 -14%PRIMARY 3 $6.01 3%$6.19 40%$8.67 44%SECONDARY 4 $14.14 4%$14.71 -20%$11.77 -17%PRIMARY 5 $6.90 0%$6.90 30%$8.97 30%SECONDARY LOW $8.67 AVERAGE $10.29 HIGH $11.87 MEDIAN $10.19 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 3 22,651 x $11.50 =$260,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.b Packet Pg. 471 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 69 Site 4 This analysis focuses on Site 4, with its location at the southeast corner of 5th & G streets. The comparable land sales indicate an adjusted value range from $7.94 to $9.77/SF, with a median of $9.26/SF and an average of $8.92/SF. The range of total net adjustment applied to the comparables was from -32% to 34%. The level of total adjustment applied to the comparables is considered moderate for LAND SALES ADJUSTMENT TABLE - SITE 4 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address SEC 5th St. & G St. 1400 W. Baseline Rd. 108 E. 3rd St.108 N. Waterman Ave. 3003 N. E. St.7775 Sierra Ave. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Fontana APN Multiple 0143-181-56 0135-181-58 0135-302-43 0152-193-29 0190-171-69, 71, 70 Acres 1.25 0.57 0.32 0.57 0.41 2.83 SF 54,450 24,829 13,752 24,951 17,677 123,275 Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Zoning CR-2 CG1 C1 C1 CR1 C1 Entitled No No No No No No SALE INFORMATION Date 2/8/2019 1/17/2019 5/15/2018 12/19/2017 2/11/2019 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $230,000 $190,000 $150,000 $250,000 $850,000 Price/SF $9.26 $13.82 $6.01 $14.14 $6.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Financing 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%1%3%4%0% Subtotal Transactional Adj Price $9.26 $13.96 $6.19 $14.71 $6.90 PROPERTY ADJUSTMENTS Location 0%-10%0%-20%-20% Size -10%-20%-10%-15%15% Exposure 10%0%30%0%10% Access 0%0%10%0%10% Shape 0%0%0%0%0% Zoning 0%0%0%0%0% Topography 0%0%0%0%0% Easements 0%0%0%0%0% Envrmtl Issues 0%0%0%0%0% Entitled 0%0%0%0%0% Subtotal Property Adjustment 0%-30%30%-35%15% TOTAL ADJUSTED PRICE $9.26 $9.77 $8.05 $9.56 $7.94 STATISTICS UNADJUSTED ADJUSTED LOW $6.01 $7.94 HIGH $14.14 $9.77 MEDIAN $9.26 $9.26 AVERAGE $10.03 $8.92 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 17.b Packet Pg. 472 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 70 development land, an indication that the dataset is applicable to the subject and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs.. Discussion of Adjustments The following adjustments were made: Market Conditions – Upward adjustments were made to Comparables 2, 3 and 4, due to improvements in market conditions. Location – Downward adjustments were made to Comparables 2, 4 and 5 for their superior neighborhoods. Size – Downward adjustments were made to Comparables 1 through 4 as smaller sites typically result in a higher $/SF. An upward adjustment was made to Comparable 5 as larger sites typically result in a lower $/SF. Exposure – Upward adjustments were made to Comparables 1, 3 and 5, due to the lower traffic and non- corner locations. Access – Upward adjustments were made to Comparables 3 and 5, due to inferior access on a SF basis. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $7.94 to $9.77/SF, with a median of $9.26/SF and an average of $8.92/SF. Based on the results of the pr eceding analysis, Comparable 1 ($9.26/SF adjusted), Comparable 2 ($9.77/SF adjusted) and Comparable 4 ($9.56/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 1, 2 and 4 establish the applicable value range, from $9.26 to $9.77/SF. All have similar sizes to subject and generally comparable corner location exposure.. Comparable 1 was adjusted for its superior (smaller) size. It was offset by adjustment for its inferior exposure due to lower traffic count, resulting in a zero net adjustment. Overall, this comparable is considered to be slightly inferior to the subject after adjustments. Comparable 2 was adjusted for its superior location proximate to the Superior Court building and superior (smaller) size. Overall, this comparable is considered to be superior to the subject after adjustments. Comparable 4 was adjusted for its superior location proximate to the Superior Court building and superior (smaller) size. Overall, this comparable is considered to be slightly superior to the subject after adjustments. These three comparables provide a relatively tight value range on a $/SF basis, with an average of $9.53/SF. Based on our analysis, we conclude to $9.60/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.b Packet Pg. 473 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 71 CALCULATION OF LAND VALUE - SITE 4 ANALYSIS ADJUSTMENT NET GROSS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %ADJ %COMPARISON 1 $9.26 0%$9.26 0%$9.26 0%20%PRIMARY 2 $13.82 1%$13.96 -30%$9.77 -29%31%PRIMARY 3 $6.01 3%$6.19 30%$8.05 34%53%SECONDARY 4 $14.14 4%$14.71 -35%$9.56 -32%39%PRIMARY 5 $6.90 0%$6.90 15%$7.94 15%55%SECONDARY LOW $7.94 AVERAGE $8.92 HIGH $9.77 MEDIAN $9.26 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 4 54,450 x $9.60 =$520,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.b Packet Pg. 474 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 72 AGGREGATE RETAIL VALUE The aggregate retail value is the sum of all five sites as marketed and sold separately, as shown in the table below: AGGREGATE RETAIL VALUE NAME ADDRESS VALUE Site 1 $180,000 Site 2 $810,000 Site 3 $260,000 Site 4 $520,000 Site 5 $340,000 AGGREGATE RETAIL VALUE $2,110,000 NEC H St. & Spuce St. N/s 5th St. between G & H Streets NEC 5th St. & G St. SEC 5th St. & G St. SWC 5th St. & G St. BULK VALUE A Bulk Value assumes that all five development sites are sold to a single buyer. This value is typically 10% to 30% lower than the aggregate retail value. Typically, the lower end of the range applies when economic conditions are good, while the upper end of the range applies when economic conditions are unfavorable. The Inland Empire overall is rapidly expanding its retail base, as can be seen in City of San Bernardino. However, the subject sites are located in a redevelopment area, which increases risk. Accounting for these factors, we conclude to the middle of the range, or 20%. This discount is considered reasonable given the larger aggregate size and higher total capital investment and likely longer development time line associated with a larger project. BULK VALUE CATEGORY VALUE Aggregate Retail Value $2,110,000 20% Bulk Discount $422,000 Bulk Discount Value $1,690,000 17.b Packet Pg. 475 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 73 LAND VALUE CONCLUSIONS The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: Our opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. ANALYSIS OF VALUE CONCLUSIONS VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE ADDRESS SIZE $/SF MARCH 20, 2019 Site Value 1 NEC H St. & Spuce St.42,689 SF $4.15 $180,000 Site Value 2 N/s 5th St. between G & H Streets 107,593 SF $7.50 $810,000 Site Value 3 NEC 5th St. & G St.22,651 SF $11.50 $260,000 Site Value 4 SEC 5th St. & G St.54,450 SF $9.60 $520,000 Site Value 5 SWC 5th St. & G St.56,627 SF $6.30 $340,000 Aggregate Retail Value 284,010 $7.43/SF $2,110,000 Bulk Value (20% Discount)284,010 $5.95/SF $1,690,000 Exposure Time Six Months Marketing Period Six Months 17.b Packet Pg. 476 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) CERTIFICATION OF APPRAISAL TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 74 We certify that, to the best of our knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions of the signers are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • The signers of this report has no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • David A. Williams, MAI has performed no services, as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Casey Merrill, MAI, ASA, FRICS has performed no services, as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • The signers are not biased with respect to the property that is the subject of this report or to the parties involved with this assignment. • The engagement in this assignment was not contingent upon developing or reporting predetermined results. • The compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • Casey Merrill, MAI, ASA, FRICS did not inspect the property that is the subject of this report. David A. Williams, MAI inspected the property that is the subject of this report. Eric Allchorn inspected the property that is the subject of this report. • Eric Allchorn provided significant real property appraisal assistance to the appraisers signing the certification. Assistance included gathering, analyzing and reporting regional, local area, zoning, and tax information, confirming some of the comparable data, and assisting with portions of the valuation analysis. 17.b Packet Pg. 477 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) CERTIFICATION OF APPRAISAL EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 75 • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report Casey Merrill, MAI, ASA, FRICS and David A. Williams, MAI completed the continuing education program for Designated Members of the Appraisal Institute. May 29, 2019 David A. Williams, MAI Valuation Services Director Certified General Real Estate Appraiser State of California License #AG035639 +1 213 417 3319 dave.a.williams@colliers.com Date May 29, 2019 Casey Merrill, MAI, ASA, FRICS Executive Managing Director | Southwest Region Certified General Real Estate Appraiser State of California License #AG003330 +1 213 417 3315 casey.merrill@colliers.com Date 17.b Packet Pg. 478 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ASSUMPTIONS & LIMITING CONDITIONS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 76 This appraisal is subject to the following assumptions and limiting conditions: • The appraisers may or may not have been provided with a survey of the subject property. If further verification is required, a survey by a registered surveyor is advised. • We assume no responsibility for matters legal in character, nor do we render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management. • The exhibits in this report are included to assist the reader in visualizing the property. We have made no survey of the property and assume no responsibility in connection with such matters. • Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property. • The appraisers assume no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. • Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate. • This report shall be used for its intended purpose only, and by the party to whom it is addressed. Possession of this report does not include the right of publication. • The appraisers may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made therefore. • The statements of value and all conclusions shall apply as of the dates shown herein. • There is no present or contemplated future interest in the property by the appraisers which is not specifically disclosed in this report. • Without the written consent or approval of the authors neither all, nor any part of, the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the appraisers and the firm with which the appraisers are connected. • This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. • The valuation stated herein assumes professional management and operation of the buildings throughout the lifetime of the improvements, with an adequate maintenance and repair program. • The liability of Colliers International Valuation & Advisory Services, its principals, agents, and employees is limited to the client. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraisers are in no way responsible for any costs incurred to discover or correct any deficiency in the property. • The appraisers are not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims any duty to note the degree of fault. Colliers International Valuation & Advisory Services and its principals, agents, employees, shall not be liable for any costs, expenses, assessments, or penalties, or diminution in value, property 17.b Packet Pg. 479 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ASSUMPTIONS & LIMITING CONDITIONS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 77 damage, or personal injury (including death) resulting from or otherwise attributable to toxic or hazardous substances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or pollutants. • The appraisers assume no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA). Colliers International Valuation & Advisory Services, its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting from non-compliance. This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost were known today, they would be reduced from the reported value conclusion. • An on-site inspection of the subject property was conducted. No evidence of asbestos materials on-site was noted. A Phase 1 Environmental Assessment was not provided for this analysis. This analysis assumes that no asbestos or other hazardous materials are stored or found in or on the subject property. If evidence of hazardous materials of any kind occurs, the reader should seek qualified professional assistance. If hazardous materials are discovered and if f uture market conditions indicate an impact on value and increased perceived risk, a revision of the concluded values may be necessary. • A detailed soils study was not provided for this analysis. The subject's soils and sub-soil conditions are assumed to be suitable based upon a visual inspection, which did not indicate evidence of excessive settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub -soil conditions. • This analysis assumes that the financial information provided for this appraisal, including rent rolls and historical income and expense statements; accurately reflect the current and historical operations of the subject property. 17.b Packet Pg. 480 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ADDENDA TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 78 Valuation Glossary Qualifications of Appraisers Qualifications of Colliers International Valuation & Advisory Services 17.b Packet Pg. 481 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Unless specified otherwise, these definitions were extracted from the following sources or publications: The Dictionary of Real Estate Appraisal, Sixth Edition, Appraisal Institute, Chicago, Illinois, 2015 (Dictionary). Uniform Standards of Professional Appraisal Practice, 2018-2019 Edition (USPAP). The Appraisal of Real Estate, Fourteenth Edition, Appraisal Institute, Chicago, Illinois, 2013 (14th Edition). Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant. (Dictionary) Ad Valorem Tax A real estate tax based on the assessed value of the property, which is not necessarily equivalent to its market value. (14th Edition) Aggregate of Retail Values (ARV) The sum of the separate and distinct market value opinions for each of the units in a condominium; subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as sold together in a single transaction; it is simply the total of the individual market value conclusions. Also called sum of the retail values. (Dictionary) Arm’s-length Transaction A transaction between unrelated parties who are each acting in his or her own best interest. (Dictionary) As-Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Dictionary) Assessed Value The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value. (14th Edition) Average Daily Room Rate (ADR) In the lodging industry, the net rooms revenue derived from the sale of guest rooms divided by the number of paid occupied rooms. (Dictionary) Band of Investment A technique in which the capitalization rates attributable to components of an investment are weighted and combined to derive a weighted-average rate attributable to the total investment. (Dictionary) Cash-Equivalent Price The price of a property with nonmarket financing expressed as the price that would have been paid in an all-cash sale. (Dictionary) Common Area The total area within a property that is not designed for sale or rental but is available for common use by all owners, tenants, or their invitees, e.g., parking and its appurtenances, malls, sidewalks, landscaped areas, recreation areas, public toilets, truck and service facilities. (Dictionary) 17.b Packet Pg. 482 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Contract Rent The actual rental income specified in a lease. (14th Edition) Cost Approach A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive; deducting depreciation from the total cost; and adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised. (14th Edition) Curable Functional Obsolescence An element of depreciation; a curable defect caused by a flaw in the structure, materials, or design, which can be practically and economically corrected. (Dictionary) Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service, which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). (Dictionary) Deferred Maintenance Items of wear and tear on a property that should be fixed now to protect the value or income-producing ability of a property. (Dictionary) Depreciation In appraisal, a loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. (Dictionary) Direct Costs Expenditures for the labor and materials used in the construction of improvements; also called hard costs. (Dictionary) Discounted Cash Flow (DCF) Analysis The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. (Dictionary) Discount Rate A rate of return on capital used to convert future payments or receipts into present value; usually considered to be a synonym for yield rate. (Dictionary) Disposition Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider their best interests. 7. An adequate marketing effort will be made during the exposure time. 17.b Packet Pg. 483 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com . 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Easement The right to use another’s land for a stated purpose. Access or right-of-way easements may be acquired by private parties or public utilities. Governments may be the beneficiaries of easements placed on privately owned land that is dedicated to conservation, open space, or preservation. (14th Edition) Economic Life The period over which improvements to real property contribute to property value. (Dictionary) Effective Age The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. (Dictionary) Effective Date The date on which the appraisal or review opinion applies (SVP) (Dictionary) Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary) Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property and its effective gross income. (Dictionary) Effective Rent The rental rate net of financial concessions such as periods of free rent during the lease term and above or below-market tenant improvements (TIs). (14th Edition) Eminent Domain The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property. (Dictionary) Entrepreneurial Incentive The amount an entrepreneur expects to receive for his or her contribution to a project. Entrepreneurial incentive may be distinguished from entrepreneurial profit (often called developer’s profit) in that it is the expectation of future profit as opposed to the profit actually earned on a development or improvement. (Dictionary) 17.b Packet Pg. 484 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Entrepreneurial Profit A market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. (Dictionary) Excess Land Land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. (Dictionary) Excess Rent The amount by which contract rent exceeds market rent at the time of the appraisal; created by a lease favorable to the landlord (lessor) and may reflect unusual management, unknowledgeable or unusually motivated parties, a lease execution in an earlier, stronger rental market, or an agreement of the parties. Due to the higher risk inherent in the receipt of excess rent, it may be calculated separately and capitalized or discounted at a higher rate in the income capitalization approach. (14th Edition) Expense Stop A clause in a lease that limits the landlord's expense obligation, which results in the lessee paying any operating expenses above a stated level or amount. (Dictionary) Exposure Time The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. (Dictionary) External Obsolescence A type of depreciation; a diminution in value caused by negative external influences and generally incurable on the part of the owner, landlord, or tenant. The external influence may be temporary or permanent. (Dictionary) Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. (USPAP) 17.b Packet Pg. 485 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Fair Market Value In nontechnical usage, a term that is equivalent to the contemporary usage of market value. As used in condemnation, litigation, income tax, and property tax situations, a term that is similar in concept to market value but may be defined explicitly by the relevant agency. (Dictionary) Feasibility Analysis A study of the cost-benefit relationship of an economic endeavor. (USPAP) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. (Dictionary) Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. (Dictionary) Functional Obsolescence The impairment of functional capacity of improvements according to market tastes and standards. (Dictionary) Functional Utility The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms. (Dictionary) Furniture, Fixtures, and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory. (Dictionary) Going-concern An established and operating business having an indefinite future life. (Dictionary) Going-concern Value An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business. (Dictionary) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. (Dictionary) Gross Leasable Area (GLA) - Commercial Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces. (Dictionary) 17.b Packet Pg. 486 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Gross Living Area (GLA) - Residential Total area of finished, above-grade residential area; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. (Finished basements and attic areas are not generally included in total gross living area. Local practices, however, may differ.) (Dictionary) Highest & Best Use The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for that asset when formulating the price that it would be willing to bid (IVS). (Dictionary) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP) Income Capitalization Approach In the income capitalization approach, an appraiser analyzes a property’s capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to this approach. Techniques and procedures from this approach are used to analyze comparable sales data and to measure obsolescence in the cost approach. (14th Edition) Incurable Functional Obsolescence An element of depreciation; a defect caused by a deficiency or superadequacy in the structure, materials, or design that cannot be practically or economically corrected as of the effective date of the appraisal. (Dictionary) Indirect Costs Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract. Indirect costs may include administrative costs, professional fees, financing costs and the interest paid on construction loans, taxes and the builder's or developer's all-risk insurance during construction, and marketing, sales, and lease-up costs incurred to achieve occupancy or sale. Also called soft costs. (Dictionary) Insurable Replacement Cost The cost estimate, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design and layout for insurance coverage purposes guaranteeing that damaged property is replaced with a new property (i.e., depreciation is not deducted). (Dictionary) 17.b Packet Pg. 487 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Interim Use The temporary use to which a site or improved property is put until a different use becomes maximally productive. (Dictionary) Investment Value The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary) Liquidation Value The most probable price that a specified interest in real property should bring under the following conditions: 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversion right when the lease expires. (Dictionary) Leasehold Interest The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (Dictionary) Legally Nonconforming Use A use that was lawfully established and maintained, but no longer conforms to the use regulations of its current zoning; also known as a grandfathered use. (Dictionary) Market Area The geographic region from which a majority of demand comes and in which the majority of competition is located. Depending on the market, a market area may be further subdivided into components such as primary, secondary, and tertiary market areas. (Dictionary) Market Rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs). (14th Edition) 17.b Packet Pg. 488 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Market Study An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area. (Dictionary) Market Value (Interagency Guidelines) The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472) Marketability Analysis The study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by addressing a specific property.(Dictionary) Neighborhood Analysis The objective analysis of observable or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values; focuses on four sets of considerations that influence value: social, economic, governmental, and environmental factors. (Dictionary) Net Operating Income (NOI) The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted. Note: This definition mirrors the convention used in corporate finance and business valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). (14th Edition) Obsolescence One cause of depreciation; an impairment of desirability and usefulness caused by new inventions, changes in design, improved processes for production, or external factors that make a property less desirable and valuable for a continued use; may be either functional or external. (Dictionary) 17.b Packet Pg. 489 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Off-site Costs Costs incurred in the development of a project, excluding on-site costs such as grading and construction of the building and other improvements; also called common costs or off- site improvement costs. (Dictionary) On-site Costs Costs incurred for the actual construction of buildings and improvements on a particular site. (Dictionary) Overage Rent The percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of a specified breakeven sales volume. (14th Edition) Overall Capitalization Rate (OAR) The relationship between a single year’s net operating income expectancy and the total property price or value. (Dictionary) Parking Ratio The ratio of parking area or parking spaces to an economic or physical unit of comparison. Minimum required parking ratios for various land uses are often stated in zoning ordinances.(Dictionary) Potential Gross Income (PGI) The total income attributable to property at full occupancy before vacancy and operating expenses are deducted. (Dictionary) Potential Gross Income Multiplier (PGIM) The ratio between the sale price (or value) of a property and its annual potential gross income. (Dictionary) Present Value (PV) The value of a future payment or series of future payments discounted to the current date or to time period zero. (Dictionary) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long-term occupancy. (Dictionary) Qualitative Adjustment An indication that one property is superior, inferior, or the same as another property. Note that the common usage of the term is a misnomer in that an adjustment to the sale price of a comparable property is not made. Rather, the indication of a property’s superiority or inferiority to another is used in relative comparison analysis, bracketing, and other forms of qualitative analysis. (Dictionary) Quantitative Adjustment A numerical (dollar or percentage) adjustment to the indicated value of the comparable property to account for the effect of a difference between two properties on value. (Dictionary) Rentable Area The amount of space on which the rent is based; calculated according to local practice. (Dictionary) 17.b Packet Pg. 490 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. (Dictionary) Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. (Dictionary) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” (Dictionary) Sales Comparison Approach The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered vacant when an adequate supply of comparable sales is available. (Dictionary) Scope of Work The type and extent of research and analysis in an appraisal or appraisal review assignment. Scope of work includes, but is not limited to: The extent to which the property is identified; The extent to which tangible property is inspected; The type and extent of data researched; and The type and extent of analysis applied to arrive at opinions or conclusions. (USPAP) Shopping Center Types Neighborhood Shopping Center: The smallest type of shopping center, generally with a gross leasable area of between 30,000 and 100,000 square feet. Typical anchors include supermarkets. Neighborhood shopping centers offer convenience goods and personal services and usually depend on a market population support of 3,000 to 40,000 people. Community Shopping Center: A shopping center of 100,000 to 400,000 square feet that usually contains one junior department store, a variety store, discount or department store. A community shopping center generally has between 20 and 70 retail tenants and a market population support of 40,000 to 150,000 people. Regional Shopping Center: A shopping center of 300,000 to 900,000 square feet that is built around one or two full-line department stores of approximately 200,000 square feet each plus small tenant spaces. This type of center is typically supported by a minimum population of 150,000 people. 17.b Packet Pg. 491 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Shopping Center Types (cont.) Super-Regional Center: A large center of 600,000 to 2.0 million square feet anchored by three or more full-line department stores. This type of center is typically supported by a population area of 300,000 people. (14th Edition) Superadequacy An excess in the capacity or quality of a structure or structural component; determined by market standards. (Dictionary) Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. (Dictionary) Tenant Improvements (TIs) 1. Fixed improvements to the land or structures installed for use by a lessee. 2. The original installation of finished tenant space in a construction project; subject to periodic change for succeeding tenants. (Dictionary) Triple Net Lease An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management. Also called NNN, triple net lease, or fully net lease. (Dictionary) Usable Area The area that is actually used by the tenants measured from the inside of the exterior walls to the inside of walls separating the space from hallways and common areas. (Dictionary) Useful Life The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed. (Dictionary) Vacancy and Collection Loss A deduction from potential gross income (PGI) made to reflect income deductions due to vacancies, tenant turnover, and non-payment of rent; also called vacancy and credit loss or vacancy and contingency loss. (Dictionary) Yield Capitalization A method used to convert future benefits into present value by 1) discounting each future benefit at an appropriate yield rate, or 2) developing an overall rate that explicitly reflects the investment's income pattern, holding period, value change, and yield rate. (Dictionary) 17.b Packet Pg. 492 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) David A. Williams, MAI, AI-GRS VALUATION SERVICES DIRECTOR Valuation & Advisory Services dave.a.williams@colliers.com EDUCATION AND QUALIFICATIONS Member, Appraisal Institute Board Member, IRWA Chapter 1 B.Sc. Boston University STATE CERTIFICATIONS California Hawaii CONTACT DETAILS MOB +1 818 915 3791 DIR +1 818 417 3319 FAX +1 661 631 3829 Colliers International Los Angeles: 865 S. Figueroa St. Suite 3500 Los Angeles, CA 90017 Bakersfield: 10000 Stockdale Hwy. Suite 102 Bakersfield, CA 93311 www.colliers.com David A. Williams is a Valuation Services Director with Colliers International Valuation & Advisory Services, located in the Los Angeles and Bakersfield offices. Mr. Williams has performed appraisals for a wide variety of property types throughout California, New Mexico, Oregon and Hawaii. Projects include regional malls, high-rise office buildings, business parks, proposed apartments and residential subdivisions. Core competencies are highest and best use analysis, right of way/condemnation and litigation support. Assignments have included the valuation of water rights, environmental contamination and agriculture (orchards/cropland). He has been in multiple arbitrations for market rent resets, for both buildings and land. Mr. Williams has been deposed and has testified as an expert witness in jury trials. EXPERIENCE Valuation Services Director, Colliers January 2014 – present Senior Analyst, Overland, Pacific & Cutler October 2012 – December 2013 Senior Analyst, Integra Realty Resources, Los Angeles – February 2010-August 2012 Senior Analyst, CB Richard Ellis, Los Angeles – February 2005-December 2010 PROFESSIONAL AFFILIATIONS AND ACCREDITATIONS Member – Appraisal Institute, August 2014 Reviewer Designation (AI-GRS) – Appraisal Institute 2019 Board Member – International Right of Way Association (IRWA), Chapter 1 since 2016 APPRAISAL INSTITUTE COURSES Valuation of Conservation Easements Appraising the Appraisal: Appraisal Review – General USPAP 15-Hour USPAP 7-Hour Basic Income Capitalization Advanced Income Capitalization Advanced Sales Comparison & Cost Approaches Appraisal of Nursing Facilities General Appraiser Market Analysis and Highest & Best Use Report Writing and Valuation Analysis Advanced Applications Business Practices and Ethics General Demonstration Appraisal Report Writing Seminar OTHER RELATED COURSES Appraisal Principles & Procedures Appraising Estates Subject to IRS Regulations 48th-50th Annual Litigation Seminars Appraisal Institute Litigation Workshop PROFESSIONAL SERVICE Chair, Appraisal Institute Hearing Committee Chair, IRWA Chapter 1 Newsletter 17.b Packet Pg. 493 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REPRESENTATIVE CLIENTS AND PROJECTS Client: Google, Inc. – Ground lease arbitration with NASA (Federal Government) – market rent reset in a flood zone. Considerations include anticipated construction finishing costs and water retention ponds. Client: Honolulu Area Rapid Transit (HART) – Leading valuation team for the acquisition of real property for the construction of an overhead rail line in Honolulu. Client: BNSF Railroad – Valuation of multiple parcels to expand existing right-of-way in Belen, New Mexico. Client: California Department of Transportation (CALTRANS) – Widening of US Highway 395 -- subcontracted by Epic Land Solutions to value 49 parcels along US Highway 395 in Adelanto and Victorville. Primary issues were highway access and landlocked remainder parcels. Client: Greenberg, Glusker/Starpoint Capital – Ground rent reset contingent upon the highest value of the following: value as-is, current highest & best use and highest & best use as of lease commencement. Predominant issue was understanding why the punitive lease escalations were written and agreed to by the lessee. Client: High Speed Rail/Epic Land Solutions – Approximately two dozen agricultural properties in Wasco, Kern County. Appraisal problems included re-routing of irrigation and harvesting lanes, well estimates, crop yields, and allocation to the leased fee/leasehold positions per the Caltrans Right of Way Manual, Chapter 7. Client: State of Qatar – Client was looking to acquire a single-tenant building in Beverly Hills. Appraisal problems included valuing the premium, if any, of the Richard Meier re- design and the impacts of the Metro Purple Line extension, which identified the subject as a full take for a construction yard. Client: City of Murrieta/Epic Land Solutions – Valued three agricultural properties impacted by a right of way project. Appraisal problems included assessing the impact of Riverside County’s Multiple Species Habitation Conservation Plan (MSHCP). Client: Rutan & Tucker, LP – Valued damages on a 200-acre agricultural property in Hinkley, CA posed by the re-routing of Highway 58. Appraisal problems included valuation of arable versus non-arable land, and warranted research of water rights and its market per acre foot. Client: Fox, Rothchild, LP – Valued a 62-acre Superfund site in Rialto, CA. Appraisal problems included determining a range of value for the property as remediated and in its as- is condition giving that the final EPA report had yet to be issued. David A. Williams, MAI, AI-GRS VALUATION SERVICES DIRECTOR Valuation & Advisory Services dave.a.williams@colliers.com CONTACT DETAILS MOB +1 818 915 3791 DIR +1 213 417 3319 FAX +1 213 327 3419 Colliers International 865 S. Figueroa St. Suite 3500 Los Angeles, CA 90017 Bakersfield: 10000 Stockdale Hwy. Suite 102 Bakersfield, CA 93311 www.colliers.com 17.b Packet Pg. 494 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REPRESENTATIVE CLIENTS AND PROJECTS Client: Demitriou, Del Guercio, Springer & Francis, LP -- Analyzed damages to a 40,000 SF industrial property posed by the expansion of a primary arterial in Walnut, CA. Appraisal problems included an analysis of lost rent, diminished access, security and utility and the leaseability of the space during the construction period. Client: Bank of the West – Valued a proposed surgical center for a construction loan. Appraisal problem related to the high cost of construction that could only be supported via an analysis of the surgery center market and the anticipated effects of the Affordable Care Act. Client: C-III Asset Management -- Performed leasehold valuation with possessory interest. Appraisal problems included city-held land and tenant construction loans based on the value of the tenant’s lease payment schedule. Client: SANBAG -- I-15 & I-215 Devore Freeway Interchange Project. Provided appraisal for acquisition of an aerial easement utilized by a freeway billboard sign. Client: LADWP -- Provided appraisal to value the acquisition of 2,300 acres of Kern County desert land with full entitlements for the construction of a 230 mW utility-scale, photovoltaic solar generating facility. Subsequently, developed a market rent analysis for a regional utility company to evaluate leasing a portion of the site to a private energy consortium. Involved extensive analysis on the viability of utility-scale solar power projects. Client: City of Covina – Valuation of two development sites subject to the city purchasing a portion of each for public use. Client: City of Bellflower -- Appraised the vacation of a portion of a city street with a cul- de-sac for a lot tie with an adjacent city-owned parcel for possible sale to a mixed-use developer. Also appraised a right of way acquisition for road widening that included an automobile dealership. Multiple scenarios included demolishing the building and using a cut- and-face technique to save the building. Client: Mountains, Recreation & Conservation Authority (MRCA) -- Appraised 400 acres of Simi Hills land with an extensive highest and best use analysis on subdivisions versus luxury estate development. Client: U.S. Government -- Performed complex highest and best use analyses for fee acquisitions by public agencies. Appraisal problems included multiple zonings on site, functional and external obsolescence, growth corridors and federally-owned (unzoned) areas, e.g., Vandenberg AFB and March ARB. David A. Williams, MAI, AI-GRS VALUATION SERVICES DIRECTOR Valuation & Advisory Services dave.a.williams@colliers.com CONTACT DETAILS MOB +1 818 915 3791 DIR +1 213 417 3319 FAX +1 213 327 3419 Colliers International 865 S. Figueroa St. Suite 3500 Los Angeles, CA 90017 Bakersfield: 10000 Stockdale Hwy. Suite 102 Bakersfield, CA 93311 www.colliers.com 17.b Packet Pg. 495 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 17.bPacket Pg. 496Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Casey Merrill, MAI, ASA, FRICS EXECUTIVE MANAGING DIRECTOR | SOUTHWEST REGION Valuation & Advisory Services casey.merrill@colliers.com EDUCATION AND QUALIFICATIONS B.A., University of California, Davis STATE CERTIFICATION Arizona California Colorado Hawaii Nevada New Mexico Oregon Texas Utah Washington CONTACT DETAILS MOB +1 760 333 1838 DIR +1 213 417 3315 Colliers International 865 South Figueroa Street Suite 3500 Los Angeles, CA 90017 Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92614 www.colliers.com Casey Merrill is the Executive Managing Director of the Southwest Region for Colliers International Valuation & Advisory Services. After a long and successful football career in the NFL, playing for the Green Bay Packers and New York Giants, Mr. Merrill started his appraisal career in 1987 and has served as a leader and manager for more than 25 years. He has performed valuations and consulting services on a wide variety of property types and property rights. He previously worked for Wells Fargo Bank. Mr. Merrill has valuation expertise in a variety of assignments including mortgage lending, public agency and right of way appraisal services. Public agency services include temporary construction easements, pipeline easements, subway easements, aerial guideway easements. The public agency appraisals are prepared in accordance with the Uniform Standards of Federal Land Acquisitions (Yellow Book). Mr. Merrill and Colliers International are currently working under a multiple year contract for preparation and full oversight on appraisals being prepared for the High Speed Rail project for the Honolulu Authority for Rapid Transit ("HART"). Other services include the valuation of land leases, sandwich leaseholds, minority and fractional ownership interests, agricultural land, date groves. Mr. Merrill was the Chief Appraiser for the Agua Caliente Band of Cahuilla Indians for 5 years under a 93-638 U.S. Department of the Interior Contract and has specialized expertise in the valuation of Tribal and Allotted Land on Indian Reservations. Mr. Merrill has extensive experience in the appraisal and appraisal review of offices, industrial parks, multifamily residential, resort hotels, shopping centers, auto dealerships, marinas, campgrounds, C- stores, gas stations, car washes, going concerns, manufactured housing communities, and self-storage properties. Mr. Merrill has testified as an Expert Witness in the following jurisdictions: Superior Courts of Riverside County and San Bernardino County, Federal Bankruptcy Court, and the Riverside County Assessment Appeals Board. EXPERIENCE Executive Managing Director, Southwest Region, Colliers International Valuation & Advisory Services 2016 to present Managing Director, Southern California, Colliers International Valuation & Advisory Services 2014 to 2016 Managing Director, Los Angeles, Ontario and Hawaii, CBRE 2013 to 2014 Vice President, Appraisal Manager, Wells Fargo Bank 2009 to 2013 Owner, Manager, Chief Appraiser, Merrill Appraisal 1994 to 2009 Appraisal Officer, Wells Fargo Bank 1992 to 1994 Staff Appraiser, MacKenzie & Associates 1987 to 1992 National Football League, Player, Team Leader, Green Bay Packers, New York Giants 1979 to 1987 17.b Packet Pg. 497 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) PROFESSIONAL MEMBERSHIPS AND ACCREDITATIONS MAI, Designated Member of the Appraisal Institute ASA, Accredited Senior Appraiser, American Society of Appraisers FRICS, Fellow, Royal Institution of Chartered Surveyors Royal Institution of Chartered Surveyors – Former Board Member, Board of Directors, Southern California Chapter Appraisal Institute - Member of the Regional Ethics and Counseling Committee 1993 to present Appraisal Institute - Current Vice President, Southern California Chapter Appraisal Institute - Treasurer, Southern California Chapter 2018 Appraisal Institute - Secretary, Southern California Chapter 2017 Appraisal Institute – Admissions Committee, Vice Chairman 1994 to 1997 EXAMPLES OF ASSIGNMENTS The Port of Los Angeles Kona Kai Marina, San Diego The Bloc, Los Angeles Ala Moana Center, Honolulu The Esplanade Mall, Phoenix U.S. Bank Tower, Los Angeles Two California Plaza, Los Angeles TCW Building, Los Angeles Original Farmer's Market, Los Angeles Warner Center, Woodland Hills Circa Apartments, Los Angeles CBRE Building, Los Angeles Michelson Building, Irvine Hewlett Packard Campus, San Diego (Rancho Bernardo) U.S. Bank Center, Phoenix Hadley Date Orchards, Inc., Thermal Indian Wells Tennis Garden Palm Springs Art Museum NAFTA Highway (State Highway 86) right-of-way California High Speed Rail Corridor Honolulu Authority for Rapid Transit ("HART") High Speed Rail, Honolulu CA State Highway 395 expansion right-of-way Alameda Corridor right-of -way Ontario Mills Mall Westfield Palm Desert Shopping Mall Q-West Tower, Phoenix Skechers Warehouse, Moreno Valley Hanesbrands West Coast Distribution Center, Perris Casey Merrill, MAI, ASA, FRICS EXECUTIVE MANAGING DIRECTOR | SOUTHWEST REGION Valuation & Advisory Services casey.merrill@colliers.com CONTACT DETAILS MOB +1 760 333 1838 DIR +1 213 417 3315 Colliers International 865 South Figueroa Street Suite 3500 Los Angeles, CA 90017 Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92614 www.colliers.com 17.b Packet Pg. 498 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 17.bPacket Pg. 499Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Real estate valuations play a pivotal role in today’s business climate. An accurate and well supported opinion of property value can mean the difference between reaching a critical goal—securing a loan, closing a sale, reporting to investors, choosing the best asset—or failing to achieve it altogether. Colliers Valuation & Advisory Services’ reports are designed to deliver insight into a property’s fundamentals, its competition and the overall market dynamics affecting value. A solid valuation report can be a strategic asset for investors, lenders and owners, provided that it addresses both a property’s unique characteristics and the most current market conditions. Commitment to high-end client service, coupled with Colliers International’s unparalleled market intelligence and resources, differentiates us as the firm of choice in the real estate industry. PROFESSIONALS Our professionals share a commitment to deliver the highest level of service and consistent results. We go the extra mile for our clients, whether this means meeting a tight deadline or working with a complex and challenging property. TECHNOLOGY Our unmatched report creation technology speeds appraisals through the pipeline. This secure, centralized production system generates a wide range of reports and high volume portfolio orders without delays. INFORMATION Today’s business climate places valuation in a more pivotal position than ever before. All our appraisals are evaluated and approved by an experienced review team to ensure our clients receive concise and timely appraisals. With clear, prompt reporting and a comprehensive, big picture approach, Colliers International’s Valuation and Advisory reports give our clients the information they need to make better business decisions. This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2011. All rights reserved. 102011 VALUATION & ADVISORY SERVICES Colliers International Services Offered Single Asset Valuation Portfolio Valuation Institutional Asset Valuation Loan Pool Valuation Appraisal Review Appraisal Management Lease and Cost Analysis Insurance Valuation Arbitration & Consulting Feasibility Studies Investment Analysis Highest and Best Use Studies Tax Appeals Litigation Support Segregated-Cost Analysis Experience That Counts Office Industrial Retail Multifamily Mixed-Use Properties Senior Housing Land Self-Storage Manufactured Housing Net Lease Hospitality Health Care Subdivisions Embassies & Consulates GSA Properties Special Use Properties Telecommunications Colliers International Valuation & Advisory Services 17.b Packet Pg. 500 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ALBUQUERQUEConner Marshall MAI Sr. Valuation Services DirectorConner.Marshall@colliers.com +1 505 880 7053 AUSTINBrian Biggs CPA, MAI Valuation Service DirectorBrian.Biggs@colliers.com+1 512 539 3007 ATLANTALeamon Holliday MAIManaging Director Leamon.Holliday@colliers.com+1 404 892 3526 BALTIMORE Zachary Smith MAI Associate Managing Director Zachary.Smith@colliers.com+1 443 602 8985 BOISEAndrew Boespflug MAISr. Valuation Services DirectorAndrew.Boespflug@colliers.com+1 208 472 2853 BOSTONCorey Gustafson MAIManaging DirectorCorey.Gustafson@colliers.com +1 617 330 8070 BUFFALOJames Murrett MAI, SRA Executive Managing DirectorJim.Murrett@colliers.com +1 716 312 7790 CHARLOTTEChris Johnson MAI, SRA, ASA Managing Director Christopher.Johnson@colliers.com+1 704 409 2374 CHICAGO Nancy Myers MAIManaging Director Nancy.Myers@colliers.com+1 312 602 6159 CINCINNATI Steven Hodge MAI Managing Director Steven.Hodge@colliers.com+1 513 562 2214 COLUMBUSBruce Nell MAI, AI-GRS, MRICSEMD | National PracticesBruce.Nell@colliers.com+1 614 437 4687 DALLASThomas Bogdon MAI, R/W-AC, MRICSEMD | Southcentral RegionThomas.Bogdon@colliers.com +1 214 217 9338 DENVERJonathan Fletcher MAI Managing DirectorJon.Fletcher@colliers.com +1 303 779 5500 DESTIN Kevin Branton Senior Valuation SpecialistKevin.Branton@colliers.com+1 904 861 1150 DETROITDavid Abraham MAI, SRAManaging Director David.Abraham@colliers.com+1 248 226 1872 FAYETTEVILLECurt Smith MAI Valuation Services DirectorCurt.Smith@colliers.com +1 479 202 5932 FRESNOJohn Larson MAI Sr. Valuation Services DirectorJohn.Larson@colliers.com+1 559 221 1271 GRAND RAPIDSWilliam LokerManaging Director William.Loker@colliers.com+1 616 988 5843 HAWAIIAN ISLANDSBobby Hastings MAI, MRICSManaging Director Bobby.Hastings@colliers.com+1 808 200 5603 HOUSTON Chris Stallings MAI, CCIM, MRICS Managing DirectorChris.Stallings@colliers.com +1 713 835 0088 INDIANAPOLIS Nancy Myers MAIManaging DirectorNancy.Myers@colliers.com +1 312 602 6159 IRVINEJohn Park MAI Sr. Valuation Services DirectorJohm.Park@colliers.com +1 213 532 3249 JACKSONVILLE Patrick Phipps MAI Managing DirectorPatrick.Phipps@colliers.com+1 904 861 1114 KANSAS CITYAlex Hoenig MAIValuation Services Director Alex.Hoenig@colliers.com +1 816 419 3561 LAS VEGASEvan Ranes MAI, ASAManaging Director Evan.Ranes@colliers.com+1 702 836 3749 LITTLE ROCKJoshua Smith MAI, MRICSManaging DirectorJoshua.Smith@colliers.com +1 501 219 8546 LOS ANGELES Casey Merrill MAI, ASA, FRICSEMD | Southwest RegionCasey.Merrill@colliers.com +1 213 417 3315 MIAMI Ralph Peña, III MAI Managing Director Ralph.Pena@colliers.com +1 786 517 4855 MILWAUKEE Ryan Sikorski MAI, CFAValuation Services Director Ryan.Sikorski@colliers.com+1 414 727 9800 MINNEAPOLIS Karen Dabek MAISr. Valuation Services DirectorKaren.Dabek@colliers.com +1 312 602 6158 NASHVILLE Patrick Gibson MAI, CCIMManaging Director Patrick.Gibson@colliers.com+1 615 610 4728 NEW ORLEANS Jason Lindsey MAIValuation Services Director Jason.Lindsey@colliers.com+1 504 717 1926 NEW YORKTony O’Sullivan MAI, MRICSManaging DirectorTony.OSullivan@colliers.com +1 212 207 8057 NEW YORK (UPSTATE) Anthony Palma MRICS Sr. Valuation Services DirectorAnthony.Palma@colliers.com +1 518 788 8108 ONTARIOCasey Merrill MAI, ASA, FRICS EMD | Southwest RegionCasey.Merrill@colliers.com+1 213 417 3315 ORLANDOPJ Cusmano MAI, MRICS EMD | Florida RegionPJ.Cusmano@colliers.com+1 813 229 1599 PHILADELPHIAAlbert Crosby MAIAssociate Managing Director Albert.Crosby@colliers.com+1 215 928 7526 PHOENIXMichael Brown Associate Managing Director Michael.Brown@colliers.com+1 602 222 5166 PITTSBURGHBruce Nell MAI, AI-GRS, MRICSEMD | National PracticesBruce.Nell@colliers.com +1 614 437 4687 PORTLAND/VANCOUVERJeremy Snow MAI Managing DirectorJeremy.Snow@colliers.com +1 503 542 5409 RALEIGHMatthew Mashburn MAIValuation Services Director Matt.Mashburn@colliers.com+1 919 500 4812 RENOJeffrey Shouse MAI, CREEMD | National Practices Jeff.Shouse@colliers.com+1 916 724 5531 RICHMONDMichael Miller MAI, FRICSEMD | Mid-Atlantic RegionMichael.G.Miller@colliers.com +1 804 289 2168 SACRAMENTOJeffrey Shouse MAI, CRE EMD | National PracticesJeff.Shouse@colliers.com +1 916 724 5531 SALT LAKE CITYJohn Blaser MAI Valuation Services DirectorJohn.Blaser@colliers.com+1 385 249 5440 SAN DIEGORob Detling MAI Managing DirectorRob.Detling@colliers.com+1 858 860 3852 SAN FRANCISCOVathana Duong MAIManaging Director Vathana.Duong@colliers.com+1 415 788 3100 SAN JOSEJeffrey Shouse MAI, CREEMD | National Practices Jeff.Shouse@colliers.com+1 916 724 5531 SARASOTA Justin Butler MAIMD | Healthcare ValuationJustin.Butler@colliers.com +1 941 923 8588 SEATTLEReid Erickson MAI EMD | Northwest RegionReid.Erickson@colliers.com +1 206 965 1106 ST. LOUISJeremy R. Walling MAI, MRICSExecutive Vice President Jeremy.Walling@colliers.com+1 312 371 4920 TAMPAPJ Cusmano MAI, MRICSEMD | Florida Region PJ.Cusmano@colliers.com+1 813 229 1599 WASHINGTON DC David Wilk CRE, MAI, FRICSManaging DirectorDavid.Wilk@colliers.com +1 202 534 3603 NATIONAL CLIENT SERVICESJerry P. Gisclair MAI, MRICS EMD | National Client ServicesJerry.Gisclair@colliers.com +1 813 871 8531 NATIONAL OPERATIONSMorgan Turnbow MAI, MRICS EMD | National OperationsMorgan.Turnbow@colliers.com+1 212 355 1029 US LEADERSHIPJeremy R. Walling MAI, MRICS Executive Vice PresidentJeremy.Walling@colliers.com+1 312 371 4920 AMERICAS LEADERSHIPEduardo Alegre MAI, MRICSPresident | Americas Ed.Alegre@colliers.com+1 714 496 9400 Updated January 2019 colliers.com/valuationadvisory VALUATION & ADVISORY KEY CONTACTS & OFFICES Accelerating success. 17.b Packet Pg. 501 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (5th Street Gateway Property) This AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (5th Street Gateway Property) (“Agreement”) is entered into by and between the CITY OF SAN BERNARDINO, a public body, corporate and politic (“Seller”), and GATEWAY SB, LLC, a limited liability company (“Buyer”). Buyer and Seller are sometimes individually referred to herein as “Party” and collectively as “Parties.” The Parties have executed this Agreement on the dates set forth below next to their respective signatures. This Agreement shall be effective on the date that is the later of the date that this Agreement has been approved by Seller’s governing body or its delegated representative and signed by all Parties (“Effective Date”). RECITALS A. Seller is the owner of that certain vacant real property consisting of approximately 96,270 square feet, or two and 21/100 (2.21) net acres, of land located long W. 5th Street, N. “G” Street, N. “H” Street, and W. Spruce Street in the City of San Bernardino, California, County of San Bernardino and referred to as Assessor’s Parcel Numbers 0134-053-20, 0134-053-21, 0134- 053-22, 0134-053-23, 0134-053-025, 0134-053-26; 0134-054-07, 0134-054-08, 0134-054-09; and 0134-093-07, 0134-093-08, 0134-093-09 (the “Site”). B. Buyer will purchase the Site as more particularly described in Exhibit “A” attached hereto, together with (i) all rights, privileges, easements, rights of way and appurtenances, if any, that belong or appertain to the Site and are owned by Seller, including, without limitation, rights to all minerals, oil, gas and other hydrocarbon substances on and under the Site, as well as all development rights, air rights, water, water rights and water stock, if any, that pertain to the Site (collectively, “Appurtenances”), (ii) improvements, if any, located on the Site (collectively, “Improvements”), (iii) all maps, surveys, reports, studies and plans, if any, owned or held by Seller that pertain to the Site or the use thereof (collectively, “Tangible Property”) and (iv) all intangible property, if any, owned or held by Seller that pertains to the Site or to the development and use thereof, including, without limitation, all permits, authorizations, approvals, developer impact fee credits and utility connection fee credits (collectively, “Intangible Property”). C. The Site, Appurtenances, Improvements, Tangible Property, and Intangible Property in connection with the Site are hereinafter collectively referred to as the “Property.” D. Buyer desires to purchase the Property from Seller, and Seller desires to sell the Property to Buyer, upon the terms and conditions hereinafter set forth. E. Subject to the terms and conditions of an Agreement for Purchase and Sale and Joint Escrow Instructions dated concurrently herewith (the “SHA Purchase Agreement”) between Buyer and the City of San Bernardino Acting in the Capacity as the Successor Housing Agency of the Redevelopment Agency of the City Of San Bernardino (the “SHA”), Buyer intends to purchase certain property located adjacent to the Property (the “SHA Property”) concurrently with its purchase of the Property. 17.b Packet Pg. 502 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -2- F. The Purchase Price for the Property is based on its assessed Fair Market Value. TERMS NOW THEREFORE, in consideration of the above facts and for the covenants and agreements contained herein, the Buyer and Seller agree as follows: 1. PURCHASE AND SALE. 1.1 Property. Buyer agrees to purchase the Seller’s fee interest in the Property, and Seller agrees to sell its fee interests in the Property to Buyer, upon the terms and provisions set forth in this Agreement. 1.2 Purchase Price. The total purchase price for the Seller’s interest in the Property is the sum of Four Hundred Forty Thousand Dollars ($440,000) (“Purchase Price”), which includes, without limitation, full payment of just compensation, relocation benefits, leasehold bonus value, attorneys’ fees, costs, interest, and damages in complete settlement of all claims (known and unknown), causes of action and demands of Seller against Buyer because of Buyer’s purchase of the Property or ownership of an interest in the Property, and for any and all claims (known and unknown) arising from or relating to the purchase and sale which is the subject of this Agreement. 1.3 Payment of Purchase Price. At the Close of Escrow (defined below), Buyer shall pay to Seller through escrow the Purchase Price, payable in cash, by cashier’s or certified check or by wire transfer. 2. ESCROW. 2.1 Opening of Escrow. Within five (5) business days following the Effective Date, Buyer and Seller shall open an escrow (“Escrow”) with Commonwealth Land Title Company (“Escrow Holder”), for the purpose of consummating the transaction contemplated by this Agreement, and Buyer shall deliver an earnest money deposit of Five Thousand Dollars ($5,000) (“Earnest Money”) into Escrow. For purposes of this Agreement, the Escrow shall be deemed open on the date Escrow Holder shall have received a copy of this Agreement, showing it to be fully executed by Buyer and Seller (“Opening of Escrow” or “Opening Date”). Escrow Holder shall notify Buyer and Seller, in writing, of the Opening Date. 2.2 Buyer may, at its option, direct Escrow Holder to invest the Earnest Money in an interest bearing account designated by Buyer. All interest accruing on the Earnest Money shall become and be a part of the Earnest Money. The Earnest Money shall be held in Escrow to be applied to the Purchase Price, retained by the Seller, or return to the Buyer as provided in this Agreement. 2.3 If Buyer elects, in its sole discretion, to terminate this Agreement by giving written notice of such termination (a “Termination Notice”) to Seller in writing prior to the expiration of the period commencing on the Effective Date and terminating on the 60th day thereafter (“Inspection Period”), this Agreement shall terminate and the Earnest Money shall be 17.b Packet Pg. 503 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -3- returned to Buyer. If Buyer doesn’t give a Termination Notice prior to the expiration of the Inspection Period, the Earnest Money shall be nonrefundable to Buyer. 2.4 Escrow Instructions. This Agreement constitutes the joint basic escrow instructions of Buyer and Seller for the conveyance of the Property. Buyer and Seller shall execute, deliver and be bound by any reasonable or customary supplemental or additional escrow instructions (“Additional Instructions”) of Escrow Holder or other instruments as may be reasonably required by Escrow Holder in order to consummate the transaction contemplated by this Agreement. Any such Additional Instructions shall not conflict with, amend or supersede any portions of this Agreement unless expressly consented or agreed to in writing by Buyer and Seller. In the event of any conflict or any inconsistency between this Agreement and such Additional Instructions, this Agreement shall govern unless otherwise expressly consented or agreed to in writing by the Parties. 2.5 Close of Escrow. For purposes of this Agreement, “Close of Escrow” or “Closing” means the recordation in Official Records of San Bernardino County, California of a Grant Deed in form reasonably acceptable to Buyer and Title Company conveying fee title to the Property to Buyer (“Grant Deed”), which is attached hereto as Exhibit “B” and the disbursement of funds and distribution of other documents by Escrow Holder, all as described herein. The Closing shall occur on or before the date which is sixty (60) business days following the opening of escrow pursuant to Section 2.1 of this Agreement(“Closing Date”), or on such earlier date as may be designated by Buyer by notice to Seller specifying the earlier date, given not less than ten (10) days prior to the earlier Closing Date and evidencing compliance with Section 2.9, Buyer’s Conditions Precedent to Close of Escrow. Parties may agree in writing to administratively extend Close of Escrow in order to complete all required conditions precedent to close of escrow as set forth herein. 2.6 Buyer and Seller may mutually agree to change the Closing Date by joint written notice to Escrow Holder. The Closing shall be conditioned upon satisfaction, or written waiver by the Party for whose benefit the condition exists, of all conditions precedent thereto. In the event the Escrow is not in a condition to close by the Closing Date for any reason other than the uncured breach of either Buyer or Seller, then any Party who is not then in default of the terms of this Agreement may terminate this Agreement and the Escrow as provided in Section 6.1. If no notice of termination as provided in Section 6.1 is received by Escrow Holder, Escrow Holder is instructed to proceed with the Close of Escrow as soon as possible. 2.7 Costs of Escrow and Title Policy. Seller shall pay the premium for the issuance to Buyer of a Standard ALTA Owner’s Policy of Title Insurance (Form 2016), without creditors' rights exclusion (“Title Policy”), for the Property in the amount of the Purchase Price and any applicable documentary transfer taxes. Buyer shall pay its own attorneys’ fees, the cost of the Survey, the cost of any endorsements to the Title Policy as well as additional premiums charged for any amount of title insurance desired by Buyer in excess of the Purchase Price or in excess of Standard ALTA. If allowed by applicable law, the amount of documentary transfer taxes shall not be posted on the Deed but shall be supplied by separate affidavit. Any closing costs not otherwise provided for herein shall be paid by the party legally responsible therefor or, if no law applies, according to prevailing custom for commercial transactions in the County and State. 17.b Packet Pg. 504 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -4- 2.8 Deposit of Funds and Documents. 2.8.1 Deposits by Seller. Prior to the Closing, Seller shall deposit or cause to be deposited with Escrow Holder the following documents and instruments: (a) Grant Deed. The Grant Deed, duly executed by Seller, acknowledged and in recordable form attached hereto as Exhibit “B.” (b) Seller's Certificate. A non-foreign affidavit satisfying Federal requirements (“Seller's Certificate”), duly executed by Seller, in the form attached hereto as Exhibit “C.” (c) Franchise Tax Form. Form 593, Real Estate Withholding Certificate, or such other form as required by the State Franchise Tax Board. (d) Such other documents and funds required of Seller under this Agreement and by Escrow Holder in the performance of its contractual or statutory obligations. 2.8.2 Deposits by Buyer. Prior to Closing, Buyer shall deposit or cause to be deposited with Escrow Holder funds that are to be applied towards the payment of the Purchase Price in the amounts and at the times designated in this Agreement, and any such other documents and funds as may be required of Buyer under this Agreement and by Escrow Holder in the performance of its contractual or statutory obligations. 2.9 Buyer’s Conditions Precedent to Close of Escrow. The Close of Escrow and Buyer’s obligation to accept title to the Property and pay the Purchase Price are subject to the satisfaction of the following-described conditions for Buyer’s benefit (or Buyer’s written waiver thereof, it being agreed that Buyer may waive any or all of such conditions) on or prior to the Closing Date: 2.9.1 All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the Close of Escrow. 2.9.2 Seller shall have timely performed all obligations required to be performed by Seller prior to the Close of Escrow by the terms of this Agreement. 2.9.3 Escrow Holder shall have received an irrevocable commitment from the Title Company (defined below) to issue the Title Policy (defined below) required pursuant to this Agreement, as set forth in more detail in Article 3 of this Agreement. 2.9.4 Buyer shall have approved Escrow Holder’s estimated closing costs statement. 2.9.5 The SHA Purchase Agreement escrow shall be in a position to close concurrently with the Closing hereunder. 17.b Packet Pg. 505 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -5- 2.10 Seller’s Conditions Precedent to Close of Escrow. The Close of Escrow and Seller’s obligation to convey the Property are subject to the satisfaction of the following- described condition for Seller’s benefit (or Seller’s written waiver thereof, it being agreed that Seller may waive any or all of such conditions) on or prior to the Closing Date: 2.10.1 Buyer shall have tendered into Escrow all payments and documents required of it pursuant to this Agreement. 2.10.2 All representations and warranties of Buyer shall be true as of the Effective Date and as of Close of Escrow and shall continue for the full statutory period. 2.10.3 Seller shall have approved Escrow Holder’s estimated closing statement. 2.10.4 Buyer shall have timely performed all obligations to be performed by Buyer prior to Close of Escrow by the terms of this Agreement. 2.11 Notices. All communications from Escrow Holder to either Buyer or Seller shall be directed to the addresses and in the manner established in Section 7.1 for notices, demands and communications between the Buyer and Seller. 2.12 Facsimile/Counterpart Documents. In the event Buyer or Seller utilizes “facsimile,” “pdf” or electronically transmitted signed documents, the Parties hereby agree to accept and instruct Escrow Holder to rely upon such documents as if they bore original signatures. Buyer and Seller hereby acknowledge and agree to provide to Escrow Holder, within seventy-two (72) hours after transmission, such documents bearing the original signatures. Buyer and Seller further acknowledge and agree that facsimile documents bearing non-original signatures will not be accepted for recording and that the Parties will provide originally executed documents to Escrow Holder for such purpose. Escrow Holder is authorized to utilize documents which have been signed by Buyer and Seller in counterparts. 3. TITLE. 3.1 Title Report. Within five (5) calendar days following the Opening Date, Seller shall obtain from the Title Company a preliminary report for the Property from Commonwealth Land Title, 888 S. Figueroa St., Ste. 2100, Los Angeles, CA 90017 (“Title Company”), together with the underlying documents relating to any exceptions set forth in such report (collectively, the “Title Report”). 3.2 Title Policy; Permitted Exceptions. It is a condition to the Close of Escrow for Buyer’s benefit that title to the Property and the right to possession to any portion of the Property shall be subject only to the Permitted Exceptions (defined below), as evidenced by the receipt by Escrow Holder prior to the Closing Date of an irrevocable commitment from Title Company to issue to Buyer upon Close of Escrow the Title Policy (defined above) in an amount equal to the Purchase Price, showing title to the Property vested in Buyer, subject only to: (i) a lien to secure payment of general and special real property taxes and assessments, not delinquent; and (ii) other exceptions to title disclosed by the Title Report that have been approved in writing by Buyer prior to the Close of Escrow (collectively, the “Permitted 17.b Packet Pg. 506 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -6- Exceptions”), and containing such endorsements and affirmative coverage as Buyer may require. In the event Escrow Holder has not received such irrevocable commitment prior to the Closing Date, then Buyer may terminate this Agreement as provided in Section 6.1. 3.3 Inspections. During the Inspection Period, with reasonable advance written notice (no less than forty-eight (48) hours) to Seller, which written notice shall describe in reasonable detail the nature and scope of Buyer’s proposed inspections, Buyer, its agents, representatives and consultants may enter onto the Property during reasonable business hours to perform inspections and tests of the Property. All such tests and inspections will be at Buyer’s sole cost. Buyer will defend, indemnify and hold Seller free and harmless from and against any and all claims, damages and liabilities with respect to Buyer’s exercise of this right of entry (but excluding the mere discovery of hazardous materials or other adverse conditions relating to the Property) and will keep the Property free from mechanics lien claims. Buyer’s indemnity obligations as set forth herein will survive termination of this Agreement. 3.4 Casualty and Condemnation. If, at any time between the Effective Date and Closing (inclusive), all or any substantial portion of the Property is damaged by casualty or condemned by any legally constituted authority for any public use or purpose, then either party may terminate this Agreement, in which event Escrow Holder shall immediately refund to Buyer all Earnest Money, minus any reasonable escrow expenses or other expenses that have been performed and designated to be paid through escrow, and neither Buyer nor Seller shall have any further liabilities, obligations or rights with regard to this Agreement (except for matters that by the express terms hereof survive termination). 3.5 Assignment. Seller shall not assign its interest hereunder without the prior written consent of Buyer, except that Seller may assign its interest in this Agreement in connection with a conveyance of the Property to any entity owned and controlled by Seller, provided and so long as (i) the transfer of the Property is expressly subject to this Agreement and any such transferee assumes in writing the obligations of Seller hereunder and acknowledges and agrees that it is bound by and subject to this Agreement with respect to the Property, and (ii) no such transfer shall release Seller of its primary liability hereunder. 4. SELLER’S REPRESENTATIONS AND WARRANTIES. Seller hereby represents and warrants to Buyer that the following statements are true and correct as of the Effective Date, and shall be true and correct as of the Close of Escrow, and the truth and accuracy of such statements shall constitute a condition precedent to all of Buyer’s obligations under this Agreement: 4.1 Seller’s Authority. Seller has full legal right, power and authority to enter into this Agreement and the instruments and documents referenced herein and to consummate the transaction contemplated hereby, subject to successful conveyance of the Property to the Seller. For purposes of this Agreement, the term “to the best of Seller’s knowledge” or “to the Seller’s knowledge” shall mean the actual knowledge of the City Manager of the City of San Bernardino. 4.2 No Breach. The execution and delivery of this Agreement by Seller, Seller’s performance hereunder, and the consummation of the transaction contemplated hereby 17.b Packet Pg. 507 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -7- will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound. 4.3 No Litigation. To Seller’s knowledge, no litigation or condemnation, and no governmental, administrative or regulatory act or proceeding regarding the Property is pending, proposed or threatened. 4.4 No Possessory Interests; No Further Agreements or Undertakings. Other than what is shown in the Title Report, to Seller’s current actual knowledge, there are no agreements for occupancy in effect with respect to the Property and no unrecorded possessory interests or unrecorded agreements that would adversely affect Buyer’s title to or use of the Property. Seller shall not enter into any agreements nor undertake any obligations prior to Close of Escrow that would in any way burden, encumber or otherwise affect the Property, including, without limitation, any agreements for occupancy with respect to the Property or any portion thereof. 4.5 Hazardous Materials and/or Hazardous Substances. Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any information it may have regarding any release of “Hazardous Materials and/or Hazardous Substances” (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller is not aware of any Hazardous Materials and/or Hazardous Substances that have been used, generated, manufactured, stored, transported to or from, or disposed of on, under or about the Property or any other adjoining property owned by Seller. 4.6 Survival of Covenants, Representations and Warranties. The covenants, representations and warranties contained in this Section 4 shall survive recordation of the Grant Deed and the Close of Escrow. 5. ACKNOWLEDGMENT OF FULL SATISFACTION AND RELEASE. 5.1 Waiver and Release. By execution of this Agreement, Buyer, on behalf of itself and its successors and assigns, and except for any breach by Seller of its express covenants, representations and warranties herein, waives and releases Seller and its successors and assigns from any and all costs or expenses whatsoever (including, without limitation, attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, arising from or relating to the physical condition of the Property, the condition of the soils, the suitability of the soils for the intended improvement or use of the Property by Buyer, or any law or regulation applicable thereto, including the presence or alleged presence of harmful or hazardous substances in, at, on, above, under, from or about the Property including, without limitation, any claims under or on account of (i) CERCLA and similar statutes and any regulations promulgated thereunder or (ii) any other environmental laws. 5.2 Buyer expressly waives any rights or benefits available to it with respect to the foregoing release under any provision of applicable law which generally provides that a general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time the release is agreed to, which, if known to such creditor, would materially affect a settlement. By execution of this Agreement, Buyer acknowledges that it fully 17.b Packet Pg. 508 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -8- understands the foregoing, and with this understanding, nonetheless elects to and does assume all risk for claims known or unknown, without limiting the generality of the foregoing: 5.2.1 The undersigned on behalf of Buyer acknowledges that it has been advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASING PARTY.” The undersigned, being aware of this Code Section, hereby expressly waives any rights it may have thereunder, as well as under any other statutes or common law principles of similar effect. Initials of Buyer: 5.3 Survival of Acknowledgments, Releases and Waiver. The acknowledgments, releases and waivers of Seller in this Article 5 shall survive recordation of the Grant Deed and the Close of Escrow. 6. TERMINATION, DEFAULTS, REMEDIES. 6.1 Exercise of Rights to Terminate. In the event Buyer or Seller elects to exercise its rights to terminate this Agreement and the Escrow as provided in this Agreement, then Buyer or Seller, as applicable, may so terminate by giving notice, in writing, prior to the Close of Escrow, of such termination to the other Party and Escrow Holder. In such event, the Party so terminating shall pay all Escrow Holder and Title Company termination fees and charges (collectively, “Termination Costs”). Upon such termination, all obligations and liabilities of the Parties under this Agreement, except for the obligation of the Party so terminating to pay Termination Costs as provided herein, and excepting for the obligations under this Agreement that expressly survive any termination of this Agreement, shall cease and terminate. 6.2 Buyer’s Breach. In the event Buyer breaches any obligation hereunder which Buyer is to perform prior to the Close of Escrow, and fails to cure such breach within a reasonable period of time following written notice from Seller, then Seller, as remedy, may either a) terminate this Agreement and the Escrow by giving notice, in writing, or b) initiate action of specific performance prior to the Close of Escrow, of such termination to Buyer and Escrow Holder. In such event, Buyer shall pay all Termination Costs. Upon such termination, all obligations and liabilities of the Parties under this Agreement, excepting for the obligation of the Buyer to pay Termination Costs as provided herein, and excepting for the obligations under this Agreement that expressly survive any termination of this Agreement, shall cease and terminate. 17.b Packet Pg. 509 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -9- 6.3 Seller’s Breach. In the event Seller breaches any obligation hereunder which Seller is to perform prior to the Close of Escrow, and fails to cure such breach within a reasonable period of time following written notice from Buyer, then Buyer may, at Buyer’s option, (i) terminate this Agreement and the Escrow by giving notice, in writing, prior to Close of Escrow, of such termination to Seller and Escrow Holder; or (ii) initiate an action for specific performance of this Agreement. Should Buyer elect to terminate this Agreement and the Escrow as provided herein, then Seller shall pay all Termination Costs. Upon such termination, all obligations and liabilities of the Parties under this Agreement, except for the obligation of the Seller to pay Termination Costs as provided herein, and except for the obligations under this Agreement that expressly survive any termination of this Agreement, shall cease and terminate. 6.4 Return of Funds and Documents; Release of Liability as to Escrow Holder In the event Escrow Holder terminates the Escrow as a result of having received notice, in writing, from Buyer or Seller of its election to terminate the Escrow as provided in this Article 6, then Escrow Holder shall terminate the Escrow and return all funds, less Termination Costs, as appropriate, and documents to the Party depositing the same. Further, the Parties shall hereby release Escrow Holder, and shall hold Escrow Holder free and harmless, from all liabilities associated with such termination except for Escrow Holder’s obligations to return funds and documents as provided herein. It is expressly agreed that the provisions of this Section 6.4 shall survive any termination of this Agreement. 7. OTHER 7.1 Notices and Demands. All notices or other communications required or permitted between the Parties hereunder shall be in writing, and shall be (i) personally delivered, (ii) sent by United States registered or certified mail, postage prepaid, return receipt requested, (iii) sent by facsimile transmission with confirmation of receipt, (iv) sent by electronic mail with confirmation of receipt or (iv) sent by nationally recognized overnight courier service (e.g., Federal Express or United Parcel Service), addressed to the Party to whom the notice is given at the addresses provided below, subject to the right of any Party to designate a different address for itself by notice similarly given. Any Party who gives notice by facsimile or electronic mail, shall send a hard copy of the notice by first class mail (not certified) within 24 hours following sending the facsimile. Any notice so given by registered or certified United States mail shall be deemed to have been given on the third business day after the same is deposited in the United States mail. Any notice not so given by registered or certified mail, such as notices delivered by personal delivery, facsimile transmission, electronic mail or courier service, shall be deemed given upon receipt, rejection or refusal of the same by the Party to whom the notice is given. Rejection or other refusal to accept notice, or the inability to deliver notice because of a changed address of which no notice was given, shall be deemed to constitute receipt of the notice or other communication sent. To Seller: City of San Bernardino Attention: City Manager 290 N. “D” Street, Third Floor San Bernardino, California 92401 Email: Ledoux_te@sbcity.org (T) 909-384-5122 17.b Packet Pg. 510 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -10- (F) 909-384-5138 With a copy to: Best Best & Krieger, LLP 18101 Von Karman Ave., Suite 1000 Irvine, CA 92614 Attention: Elizabeth Hull Email: Elizabeth.Hull@bbklaw.com (T) 949-263-2600 (F) 949-260-0972 To Buyer: With a copy to: GATEWAY SB, LLC Attention: Jian Torkan 4221 Wilshire Blvd., Ste. 380 Los Angeles, CA 90010 Email: jtorkan@icoreg.com Telephone: (323) 932-7777 Steven C. Wellington, Esq. 3005 Corte Baldre Carlsbad, CA 92009 Email: swellington@wellington-law.com Telephone: (760) 487-5211 If to Escrow Holder: Commonwealth Land Title Attn: Crystal Leyvas 888 S. Figueroa St, Suite 2100 Los Angeles, CA 90017 Email: cleyvas@cltic.com (T) 909-921-2622 (F) 213-947-4324 7.2 Indemnity by Buyer. Buyer shall, at Buyer’s sole cost and expense, indemnify, protect and defend (with counsel reasonably agreeable to Seller) and hold Seller, its officers and/or directors and its successors and assigns, harmless from and against any and all claims, liabilities, obligations, losses, damages, costs and expenses of any kind or nature whatsoever, including, without limitation, reasonable attorney’s fees, court costs and litigation expenses, that Buyer may reasonably incur or sustain by reason of or in connection with (i) Buyer’s ownership or operation of the Property after the Close of Escrow, (ii) the use after the Close of Escrow of the Property by Buyer or any third party, including, without limitation, any tenant, invitee or licensee of Buyer, (iii) any breach of any covenant, agreement, representation or warranty of Buyer contained in this Agreement; (iv) the presence, use, handling, storage, disposal or release after the Close of Escrow of Hazardous Materials and/or Hazardous Substances on, under or about the Property caused by Buyer; and (v) the Buyer’s violation of any federal, state or local law, ordinance or regulation, occurring or allegedly occurring with respect to the Property after the Close of Escrow. This indemnity by Buyer herein contained shall survive recordation of the Grand Deed and the Close of Escrow. 17.b Packet Pg. 511 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -11- 7.3 Possession; Risk of Loss. Buyer shall be entitled to sole possession of the Property immediately upon Close of Escrow. All risk of loss or damage to the Property will pass from the Seller to the Buyer at the Close of Escrow. In the event that material loss or damage occurs to the Property, or any portion thereof, prior to the Close of Escrow, Buyer may elect to terminate this Agreement as provided in Section 6.1. 7.4 Brokers and Sales Commissions. Buyer represents and warrants to the Seller that no broker, agent or finder has been engaged by them in connection with the transaction described in this Agreement. Buyer and Seller agree to indemnify one another against any claim, suits, damages and costs incurred or resulting from the claims of any person for any fee or compensation due in connection with this transaction pursuant to a written agreement made with said claimant. 8. MISCELLANEOUS 8.1 Required Actions of Buyer and Seller. Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be required in order to consummate the transaction herein contemplated and shall use their best efforts to accomplish the Close of Escrow in accordance with the provisions hereof. 8.2 Time of Essence. Time is of the essence of each and every term, condition, obligation and provision hereof. 8.3 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. 8.4 Captions. Any captions to, or headings of, the paragraphs or subparagraphs of this Agreement are solely for the convenience of the Parties, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. 8.5 No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the Parties to, any person or entity other than the Parties. 8.6 Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. 8.7 Applicable Law. All questions with respect to this Agreement, and the rights and liabilities of the Parties and venue hereto, shall be governed by the laws of the State of California, without application of conflicts of law principles. Any and all legal actions sought to enforce the terms and provisions of the Agreement shall be brought in the courts of the County of San Bernardino. 8.8 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the voluntary and involuntary successors and assigns of the Parties hereto. 17.b Packet Pg. 512 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -12- 8.9 Severability. If any term or provision of this Agreement shall be held invalid or unenforceable, the remainder of this Agreement shall not be affected. 8.10 Construction. This Agreement will be liberally construed to effectuate the intention of the Parties with respect to the transaction described herein. In determining the meaning of, or resolving any ambiguity with respect to, any word, phrase or provision of this Agreement, neither this Agreement nor any uncertainty or ambiguity herein will be construed or resolved against either Party (including the Party primarily responsible for drafting and preparation of this Agreement), under any rule of construction or otherwise, it being expressly understood and agreed that the Parties have participated equally or have had equal opportunity to participate in the drafting thereof. 8.11 Legal Fees. Each Party shall be responsible for payment of its own attorney’s fees and expenses with respect to negotiation and preparation of this Agreement and processing of the Escrow. In the event any action is brought to enforce or interpret any of the provisions of this Agreement, the prevailing Party in such action or proceeding, shall be entitled to have and recover its reasonable attorney’s fees and expenses. 8.12 Exhibits. The exhibits attached hereto are hereby incorporated herein by this reference. 8.13 Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, and contains the entire agreement between Buyer and Seller as to the subject matter hereof. No subsequent agreement, representation, or promise made by either Party hereto, shall be of any effect unless it is in writing and executed by the Party to be bound thereby. 8.14 Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the Parties hereto. [Signatures on following page] 17.b Packet Pg. 513 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 -13- SELLER: City of San Bernardino By: Name: Robert D. Field Title: City Manager Date of Execution by Seller: _______________ BUYER: GATEWAY SB, LLC, , a limited liability company By: Name: Title: Date of Execution by Buyer: _______________ Acceptance by Escrow Holder: Commonwealth Land Title hereby acknowledges that it has received a fully executed counterpart of the foregoing Real Property Purchase and Joint Escrow Instructions and agrees to act as Escrow Holder hereunder and to be bound by and perform the terms thereof as such terms apply to Escrow Holder. Dated:___________________ COMMONWEALTH LAND TITLE By: Name: Its: 17.b Packet Pg. 514 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 EXHIBIT “A” LEGAL DESCRIPTION AND DEPICTION OF PROPERTY ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL A LOTS 16, 17, 18, AND 19 OF KINGMAN AND HAMPSON SUBDIVISION, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 3, PAGE 81, RECORDS OF SAID COUNTY. TOGETHER WITH THE SOUTHERLY ONE HALF OF THE ALLEY ABUTTING SAID LAND TO THE NORTH AS VACATED PURSUANT TO RESOLUTION NO. 90-116, RECORDED APRIL 16, 1990, AS INSTRUMENT NO. 1990-143897, OFFICIAL RECORDS, RECORDS OF SAID COUNTY. (APNs 0134-053-20, -21, -22, and -23) PARCEL B THAT PORTION OF LOTS 13, 14, AND 15 OF KINGMAN AND HAMPSON SUBDIVISION, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA. AS PER PLAT RECORDED IN BOOK 3 PAGE 81, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 40 FEET NORTH OF THE SOUTHWEST CORNER OF SAID LOT 13; THENCE RUNNING EAST AND PARALLEL WITH THE SOUTH LINE OF SAID LOTS TO THE EAST LINE OF SAID LOT 15; THENCE NORTH 50 FEET; THENCE WEST TO THE WEST LINE OF SAID LOT 13; THENCE SOUTH 50 FEET TO THE POINT OF BEGINNING. (APN: 134-053-25) PARCEL C THE NORTH 40 FEET OF LOTS 13, 14, AND 15, KINGMAN AND HAMPSON SUBDIVISION, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 3, PAGE 81, RECORDS OF SAID COUNTY. TOGETHER WITH THE SOUTHERLY ONE HALF OF THE ALLEY ABUTTING SAID LAND TO THE NORTH AS VACATED PURSUANT TO RESOLUTION NO. 90-116, RECORDED APRIL 16, 1990 AS INSTRUMENT NO. 1990-143897, OFFICIAL RECORDS, RECORDS OF SAID COUNTY. (APN: 134-053-26) 17.b Packet Pg. 515 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 PARCEL D THAT PORTION OF LOT 2, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 2, BLOCK 39; THENCE EAST 75 FEET; THENCE NORTH 275 FEET, MORE OR LESS, TO THE SOUTH LINE OF SPRUCE STREET AS IT NOW EXISTS; THENCE WEST 75 FEET; THENCE SOUTH 275 FEET TO THE POINT OF BEGINNING. (APN: 134-054-07) PARCEL E THAT PORTION OF LOT 2, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 150 FEET NORTH AND 75 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH 125 FEET, MORE OR LESS, TO A POINT 25 FEET SOUTH OF THE NORTH LINE OF SAID LOT 2; THENCE EAST 47 FEET; THENCE SOUTH 125 FEET, MORE OR LESS, TO A POINT 250 FEET NORTH OF THE SOUTH LINE OF SAID LOT 2; THENCE WEST 47 FEET TO THE POINT OF BEGINNING. (APN: 134-054-08) PARCEL F ALL THOSE PORTIONS OF LOTS 1 AND 2 IN BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 150 FEET NORTH AND 122 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH 125 FEET, MORE OR LESS, TO A POINT 25 FEET SOUTH OF THE NORTH LINE OF SAID LOT 2; THENCE EAST 37 FEET, MORE OR LESS, TO A POINT 140 FEET WEST OF THE EAST LINE OF LOT 1 OF SAID BLOCK; THENCE SOUTH 125 FEET, MORE OR LESS, TO A POINT 150 FEET NORTH OF THE SOUTH LINE OF SAID LOT 1; THENCE WEST 37 FEET TO THE POINT OF BEGINNING. (APN: 134-054-09) 17.b Packet Pg. 516 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 PARCEL G ALL THAT PORTION OF LOT 6, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, PAGE 1, OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTH LINE OF SAID LOT 6, 118 FEET WEST OF THE NORTHEAST CORNER OF SAID LOT; THENCE SOUTH 68.8 FEET; THENCE WEST 84.45 FEET; THENCE NORTH 68.8 FEET; THENCE EAST 84.45 FEET TO THE POINT OF BEGINNING. (APN 0134-093-07) PARCEL H THE EAST 118 FEET OF THE NORTH 68 FEET OF LOT 6, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, PAGE 1, OF MAPS, RECORDS OF SAID COUNTY. (APN 0134-093-08) PARCEL I ALL THAT PORTION OF LOT 6, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, PAGE 1, OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 68 FEET SOUTH OF THE NORTHEAST CORNER OF SAID LOT 6; THENCE SOUTH 63 FEET, MORE OR LESS, TO A POINT 20 FEET NORTH OF THE SOUTH LINE OF SAID LOT 6; THENCE WEST 146.45 FEET; THENCE NORTH 62.20 FEET TO A POINT 68.8 FEET SOUTH OF THE NORTH LINE SAID LOT 6; THENCE EAST 28.45 FEET; THENCE NORTH .8 FEET; THENCE EAST 118 FEET TO THE POINT OF BEGINNING. (APN 0134-093-09) 17.b Packet Pg. 517 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 EXHIBIT “B” GRANT DEED NOT FOR SIGNATURE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: GATEWAY SB, LLC, a limited liability company Attention: Jian Torkan, CEO 4221 Wilshire Blvd., Ste. 380 Los Angeles, CA 90010 APNs: 0134-053-20, -21, -22, -23, -25, -26 0134-054-07, -08, -09 0134-093-07, -08, -09 [Space above for recorder.] DOCUMENTARY TRANSFER TAX $ computed on the consideration or value of property conveyed; OR computed on the consideration or value less liens or encumbrances remaining at time of sale. Signature of Declarant or Agent determining tax - Firm Name GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF SAN BERNARDINO, a public entity, corporate and politic (“Grantor”), hereby grants to GATEWAY SB, LLC, a limited liability company (“Grantee”), all right, title and interest in and to that certain real property located in the County of San Bernardino, State of California, more particularly described on Attachment No. 1 attached hereto and incorporated herein by this reference (the “Property”), subject to existing easements, restrictions and covenants of record. IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of , 2020. CITY OF SAN BERNARDINO By: NOT FOR SIGNATURE Robert D. Field City Manager 17.b Packet Pg. 518 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 ATTACHMENT NO. 1 TO GRANT DEED LEGAL DESCRIPTION ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL A LOTS 16, 17, 18, AND 19 OF KINGMAN AND HAMPSON SUBDIVISION, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 3, PAGE 81, RECORDS OF SAID COUNTY. TOGETHER WITH THE SOUTHERLY ONE HALF OF THE ALLEY ABUTTING SAID LAND TO THE NORTH AS VACATED PURSUANT TO RESOLUTION NO. 90-116, RECORDED APRIL 16, 1990, AS INSTRUMENT NO. 1990-143897, OFFICIAL RECORDS, RECORDS OF SAID COUNTY. (APNs 0134-053-20, -21, -22, and -23) PARCEL B THAT PORTION OF LOTS 13, 14, AND 15 OF KINGMAN AND HAMPSON SUBDIVISION, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA. AS PER PLAT RECORDED IN BOOK 3 PAGE 81, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 40 FEET NORTH OF THE SOUTHWEST CORNER OF SAID LOT 13; THENCE RUNNING EAST AND PARALLEL WITH THE SOUTH LINE OF SAID LOTS TO THE EAST LINE OF SAID LOT 15; THENCE NORTH 50 FEET; THENCE WEST TO THE WEST LINE OF SAID LOT 13; THENCE SOUTH 50 FEET TO THE POINT OF BEGINNING. (APN: 134-053-25) PARCEL C THE NORTH 40 FEET OF LOTS 13, 14, AND 15, KINGMAN AND HAMPSON SUBDIVISION, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 3, PAGE 81, RECORDS OF SAID COUNTY. TOGETHER WITH THE SOUTHERLY ONE HALF OF THE ALLEY ABUTTING SAID LAND TO THE NORTH AS VACATED PURSUANT TO RESOLUTION NO. 90-116, RECORDED APRIL 16, 1990 AS INSTRUMENT NO. 1990-143897, OFFICIAL RECORDS, RECORDS OF SAID COUNTY. (APN: 134-053-26) 17.b Packet Pg. 519 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 PARCEL D THAT PORTION OF LOT 2, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 2, BLOCK 39; THENCE EAST 75 FEET; THENCE NORTH 275 FEET, MORE OR LESS, TO THE SOUTH LINE OF SPRUCE STREET AS IT NOW EXISTS; THENCE WEST 75 FEET; THENCE SOUTH 275 FEET TO THE POINT OF BEGINNING. (APN: 134-054-07) PARCEL E THAT PORTION OF LOT 2, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7 OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 150 FEET NORTH AND 75 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH 125 FEET, MORE OR LESS, TO A POINT 25 FEET SOUTH OF THE NORTH LINE OF SAID LOT 2; THENCE EAST 47 FEET; THENCE SOUTH 125 FEET, MORE OR LESS, TO A POINT 250 FEET NORTH OF THE SOUTH LINE OF SAID LOT 2; THENCE WEST 47 FEET TO THE POINT OF BEGINNING. (APN: 134-054-08) PARCEL F ALL THOSE PORTIONS OF LOTS 1 AND 2 IN BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 150 FEET NORTH AND 122 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH 125 FEET, MORE OR LESS, TO A POINT 25 FEET SOUTH OF THE NORTH LINE OF SAID LOT 2; THENCE EAST 37 FEET, MORE OR LESS, TO A POINT 140 FEET WEST OF THE EAST LINE OF LOT 1 OF SAID BLOCK; THENCE SOUTH 125 FEET, MORE OR LESS, TO A POINT 150 FEET NORTH OF THE SOUTH LINE OF SAID LOT 1; THENCE WEST 37 FEET TO THE POINT OF BEGINNING. (APN: 134-054-09) 17.b Packet Pg. 520 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 PARCEL G ALL THAT PORTION OF LOT 6, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, PAGE 1, OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTH LINE OF SAID LOT 6, 118 FEET WEST OF THE NORTHEAST CORNER OF SAID LOT; THENCE SOUTH 68.8 FEET; THENCE WEST 84.45 FEET; THENCE NORTH 68.8 FEET; THENCE EAST 84.45 FEET TO THE POINT OF BEGINNING. (APN 0134-093-07) PARCEL H THE EAST 118 FEET OF THE NORTH 68 FEET OF LOT 6, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, PAGE 1, OF MAPS, RECORDS OF SAID COUNTY. (APN 0134-093-08) PARCEL I ALL THAT PORTION OF LOT 6, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, PAGE 1, OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 68 FEET SOUTH OF THE NORTHEAST CORNER OF SAID LOT 6; THENCE SOUTH 63 FEET, MORE OR LESS, TO A POINT 20 FEET NORTH OF THE SOUTH LINE OF SAID LOT 6; THENCE WEST 146.45 FEET; THENCE NORTH 62.20 FEET TO A POINT 68.8 FEET SOUTH OF THE NORTH LINE SAID LOT 6; THENCE EAST 28.45 FEET; THENCE NORTH .8 FEET; THENCE EAST 118 FEET TO THE POINT OF BEGINNING. (APN 0134-093-09) 17.b Packet Pg. 521 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 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. STATE OF CALIFORNIA ) ) ss. COUNTY OF ____________ ) On _____________________________ , before me, __________________________________ , Notary Public, (Print Name of Notary Public) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual Corporate Officer ___________________________________________ Title(s) ___________________________________________ Title Or Type Of Document Partner(s) Limited General Attorney-In-Fact Trustee(s) Guardian/Conservator Other: _________________________________ Signer is representing: Name Of Person(s) Or Entity(ies) ___________________________________________ ___________________________________________ ___________________________________________ Number Of Pages ___________________________________________ Date Of Documents ___________________________________________ Signer(s) Other Than Named Above 17.b Packet Pg. 522 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766606.17 EXHIBIT “C” SELLER’S CERTIFICATE CERTIFICATE OF NON-FOREIGN STATUS To inform GATEWAY SB, LLC, a limited liability company (“Transferee”), that withholding of tax under Section 1445 of the Internal Revenue Code of 1986, as amended (“Code”) will not be required by City of San Bernardino, a public entity corporate and politic (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor: 1. Transferor is not a foreign corporation, foreign partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder); 2. Transferor's U.S. employer or tax (social security) identification number is _____________________. 3. Transferor’s address is: City of San Bernardino City Manager’s Office 290 N. “D” Street – 3rd Floor San Bernardino, CA 92401 [4. Transferor is not a disregarded entity as defined in Section 1.1445- 2(b)(2)(iii) of the Code.] Transferor understands that this Certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both. Under penalty of perjury I declare that I have examined this Certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of Transferor. City of San Bernardino By: Name: Robert D. Field Title: City Manager 17.b Packet Pg. 523 Attachment: Attachment 2 - Resolution 2021-87; Exhibits A-D (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-89 RESOLUTION NO. 2021-89 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING IN THE CAPACITY AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN THE CITY OF SAN BERNARDINO ACTING IN THE CAPACITY AS THE SUCCESSOR HOUSING AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND GATEWAY SB, LLC, A LIMITED LIABILITY COMPANY, WITH RESPECT TO THE REAL PROPERTY LOCATED ALONG WEST 5TH STREET, NORTH “G” STREET, AND NORTH “H” STREET IN THE CITY OF SAN BERNARDINO, CALIFORNIA, COUNTY OF SAN BERNARDINO (APNS 0134-054-24 to 0134-054-26; 0134-061-21, 0134-061-22, 0134-061-25, 0134-061-30; 0134-093- 05, 0134-093-06; AND 0134-101-02 TO 0134-101-06, 0134-101- 28) AND APPROVING CERTAIN RELATED ACTIONS WHEREAS, pursuant to Health and Safety Code (the “HSC”) § 34172 (a) (1), the Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012; and WHEREAS, consistent with the provisions of the HSC, the Mayor and City Council of the City of San Bernardino (“City”) previously elected to serve in the capacity of the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino (“Successor Housing Agency”); and WHEREAS, pursuant to HSC § 34176 (a) (2), the Successor Housing Agency was required to submit a Housing Asset Transfer form (“HAT”) to the California Department of Finance (“DOF”) that lists, among other things, all of the low- and moderate-income housing fund real property assets, as more specifically defined in HSC § 34176 (e), to be retained by the Successor Housing Agency; and WHEREAS, consistent with the foregoing, the Successor Housing Agency submitted its HAT to DOF for review and thereafter provided DOF with pertinent supplemental and back - up information that resulted in DOF’s August 11, 2016 approval of the HAT, as amended (“Amended HAT”); and WHEREAS, the Amended HAT, consists of 56 parcels which were transferred to the Successor Housing Agency on January 3, 2017 (“SHA Parcels”); and WHEREAS, certain SHA Parcels described as being approximately 4.31 acres of vacant land generally located along West 5th Street, North “G” Street, and North “H” Street (APNs 17.c Packet Pg. 524 Attachment: Attachment 3 - SHA Resolution 2021-89 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-89 0134-054-24 to 0134-054-26; 0134-061-21, 0134-061-22, 0134-061-25, 0134-061-30; 0134-093- 05, 0134-093-06; 0134-101-02, to 0134-101-06, 0134-101-28) (“SHA Property”) are the subject of the 5th Street Gateway Property; and WHEREAS, the SHA Property, in combination with certain parcels owned by the City, which are generally located along West Spruce Street between North “G” Street and North “H” Street (APNs 0134-053-20 to 0134-053-23; 0134-053-25; 0134-053-26; 0134-054-07 to 0134- 054-09; 0134-093-07 to 0134-093-09) (“City-owned Property”), are the subject of the 5th Street Gateway Property (both the SHA Property and the City-owned Property are known as the “5th Street Gateway Property”), a map of which is attached hereto as Exhibit “A”; and WHEREAS, on December 6, 2017, the City issued an Invitation for Letters of Interest (“LOI”) that were to include detailed proposals from developers concerning the development of the 5th Street Gateway Property; and WHEREAS, subsequently, the City received eight (8) proposals by the January 31, 2018 submittal deadline, including a proposal submitted by ICO Real Estate Group, Inc. (“ICO”); and WHEREAS, at the conclusion of a thorough review process, City staff determined that ICO’s submittal was the most responsive to the LOI, whereupon City staff recommended that the City engage ICO in negotiations pursuant to an exclusive right to negotiate (“ERN”) agreement with the intent that such negotiations will include the negotiation of a purchase and sale agreement for the 5th Street Gateway Property; and WHEREAS, on September 19, 2018, the City entered into an ERN with ICO; and WHEREAS, on April 5, 2019, the City engaged Colliers International Valuation & Advisory Services, LLC (“Colliers”) to appraise all of the 5th Street Gateway Property; and WHEREAS, on May 29, 2019, Colliers submitted its appraisal with a Fair Market Value (“FMV”) for the SHA Property of $1,580,000, with a total FMV for the 5th Street Gateway Property of $2,130,000, a copy of which is attached to this Resolution as Exhibit B; and WHEREAS, if ICO desires to purchase the 5th Street Gateway Property parcels in bulk, as opposed to purchasing it in development phases, then the FMV of the SHA Property is $1,260,000, with the total bulk FMV of the 5th Street Gateway Property being $1,700,000; and WHEREAS, as a part of the purchase and sale negotiations, the City commissioned the following environmental assessments for the 5th Street Gateway Property, which included both the SHA Property and the City-owned portion of the 5th Street Gateway Property (together known as the “5th Street Gateway Parcels”), conducted by Ninyo and Moore: Phase I Environmental Site Assessment Report dated July 11, 2019; Limited Phase II Environmental Site Assessment dated August 26, 2020 and Additional Limited Phase II Environmental Site Assessment dated February 9, 2021; and 17.c Packet Pg. 525 Attachment: Attachment 3 - SHA Resolution 2021-89 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-89 WHEREAS, as a result of the above referenced commissioned environmental reports, several areas of recognized environmental concerns were identified that now require environmental remediation; and WHEREAS, ICO estimates the cost for the required environmental remediation to be $142,850, and with an accompanying 20% contingency of $28,570, a total remediation estimate of $171,420, a copy of ICO’s estimate, as prepared by KCE Matrix, Consulting Engineers, is attached to this Resolution as Exhibit D; and WHEREAS, the SHA has thoroughly reviewed ICO’s estimated environmental remediation cost and find it to be fair and reasonable; and WHEREAS, in exchange for ICO completing the required environmental remediation, the SHA shall reduce the FMV price from $1,260,000 by $171,420, for a Purchase Price of $1,088,580; and WHEREAS, ICO has agreed to purchase the 5th Street Gateway Property parcels in bulk and to purchase the SHA Property for $1,088,580 (“Purchase Price”); and WHEREAS, since ICO has agreed to pay the Purchase Price of the SHA Property, and ICO has successfully performed certain actions and responsibilities under the ERN, the City has concluded that the Purchase Price for the SHA Property is fair and reasonable; and WHEREAS, ICO formed GATEWAY SB, LLC, a limited liability company (“GSB”) to purchase and develop the 5th Street Gateway Property; and WHEREAS, pursuant to the Section 54234(a)(1) of the Government Code, the disposition of the SHA Property is not subject to the changes instituted to the Surplus Land Act by AB 1486 because the ERN was entered into prior to September 30, 2019; and WHEREAS, this Resolution will approve the Purchase and Sale Agreement and Joint Escrow Instructions (“Purchase and Sale Agreement”) between the Successor Housing Agency and GSB with respect to the SHA Property, a copy of which is attached to this Resolution as Exhibit C, and authorize certain related actions; and WHEREAS, all of the prerequisites with respect to the approval of this Resolution have been met. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO ACTING IN THE CAPACITY AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. 17.c Packet Pg. 526 Attachment: Attachment 3 - SHA Resolution 2021-89 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-89 SECTION 2. The Purchase Price for the SHA Property is determined to be fair and reasonable based on the May 29, 2019, FMV appraisal conducted by Colliers International Valuation & Advisory Services, LLC and the environmental estimate for site remediation. SECTION 3. The Purchase and Sale Agreement between the City acting in the capacity as the Successor Housing Agency and GATEWAY SB, LLC for the purchase and sale of the SHA Property, attached hereto as Exhibit “C” is approved and may be executed. SECTION 4. The City Manager, or designee, is authorized and directed to execute the Purchase and Sale Agreement and the grant deed, the form of which is attached to the Purchase and Sale Agreement in substantially final form, and to take such other actions and execute such other documents as are necessary to effectuate the intent of this Resolution including concluding the sale of the SHA Property. SECTION 5. The City as Successor Housing Agency determines that this Resolution and the actions authorized hereunder are not subject to environmental review under the California Environmental Quality Act (“CEQA”). Specifically, the Resolution does not authorize or approve any development or construction projects, but is limited to a mere transfer of title. Thus, it can be seen with certainty that the Resolution will not result in any direct or reasonably foreseeable indirect environmental impacts. The approval of this Resolution, therefore, is not a CEQA “project” within the meaning of State CEQA Guidelines Section 1537, which might otherwise be subject to environmental review. Alternatively, the approval of this Resolution is exempt from environmental review, pursuant to the common-sense exemption codified at State CEQA Guidelines Section 15061 (c) (3). SECTION 6. The City as Successor Housing Agency directs staff to prepare and have filed and posted with the County Clerk a CEQA Notice of Exemption within five (5) working days of the approval of this Resolution. SECTION 7. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 8. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by The City Council and signed by the Mayor acting in the capacity as Successor Housing Agency and attested by the Acting City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino 17.c Packet Pg. 527 Attachment: Attachment 3 - SHA Resolution 2021-89 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-89 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 17.c Packet Pg. 528 Attachment: Attachment 3 - SHA Resolution 2021-89 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-89 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-89, adopted at a regular meeting held on the _______ day of ________ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this _______ day of ________ 2021. Genoveva Rocha, CMC, City Clerk 17.c Packet Pg. 529 Attachment: Attachment 3 - SHA Resolution 2021-89 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Resolution No. 2021-89 25, 2021 17.c Packet Pg. 530 Attachment: Attachment 3 - SHA Resolution 2021-89 (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 5thStreet Gateway Property3City -ownedCity-ownedSHASHASHASHASHASuccessor Housing Agency (“SHA”)Properties and City-owned Properties Exhibit A17.dPacket Pg. 531Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 5TH STREET GATEWAY PROJECT 745 W. Spruce St., W. 5th St., N. H St., & N. G. St. San Bernardino, California 92410 APPRAISAL REPORT Date of Report: May 29, 2019 Colliers File #: LAX190060 PREPARED FOR Lisa Connor Project Manager City of San Bernardino 290 North D Street San Bernardino, CA 92401 PREPARED BY COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES Exhibit B 17.d Packet Pg. 532 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LETTER OF TRANSMITTAL Colliers International Valuation & Advisory Services, and certain of its subsidiaries, is an independently owned and operated business and a member firm of Colliers International Property Consultants, an affiliation of independent companies with over 500+ offices throughout more than 68 countries worldwide. COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 865 South Figueroa Street, Suite 3500 Los Angeles, CA 90017 USA MAIN +1 213 627 1214 FAX +1 213 327 3266 WEB www.colliers.com/valuationadvisory May 29, 2019 Ms. Lisa Connor Project Manager City of San Bernardino 290 North D Street San Bernardino, CA 92401 RE: 5th Street Gateway Project 745 W. Spruce St., W. 5th St., N. H St., & N. G. St. San Bernardino, California 92410 Colliers File #: LAX190060 Ms. Connor: This appraisal report satisfies the scope of work and requirements agreed upon by City of San Bernardino and Colliers International Valuation & Advisory Services. The date of this report is May 29, 2019. At the request of the client, this appraisal is presented in an Appraisal Report format as defined by USPAP Standards Rule 2- 2(a). Our appraisal format provides a summary description of the appraisal process, subject and market data and valuation analyses. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. There are 27 parcels of vacant land, which are grouped into five development sites. We have identified them as sites 1 through 5 and they are shown on an aerial map on the following page. At the client's request, we have opined individual values for the five sites of land that are contiguous sites, which we identified as Sites 1 thru 5, as shown in the aerial map on the following page. The client has requested separate valuations for each development site. We have also included Aggregate Retail and Bulk values. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: 17.d Packet Pg. 533 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES VALUE TYPE INTEREST APPRAISED DATE OF VALUE VALUE Site Value 1 Fee Simple March 20, 2019 $180,000 Site Value 2 Fee Simple March 20, 2019 $810,000 Site Value 3 Fee Simple March 20, 2019 $260,000 Site Value 4 Fee Simple March 20, 2019 $520,000 Site Value 5 Fee Simple March 20, 2019 $340,000 Aggregate Retail Value Fee Simple March 20, 2019 $2,110,000 Bulk Value Fee Simple March 20, 2019 $1,690,000 We interviewed Oliver Mujica, a planning division manager with the City of San Bernardino. Mr. Mujica informed us that the total site was offered for development in December 2017 and a confidential developer was selected by the city for exclusive development rights in July 2018. He was unable disclose the transaction price in the agreement. As of March 2019, there are several proposed developments for the subject that include supermarket, convenience store, gas station, and fast-food uses. Furthermore, there are no entitlements or soil issues with the subject property. We have taken the proposed uses by the developer as factors to consider in developing our conclusions for highest and best use for the subject. The following aerial map illustrates the size, shape and location of each of the five sites: The following table shows the size for each site. We have relied upon the assessor's measurements in our calculations. SITE SIZE CALCULATION NAME ADDRESS SQUARE FEET Site 1 42,689 Site 2 107,593 Site 3 22,651 Site 4 56,627 Site 5 54,450 TOTAL SIZE 284,010 NEC H St. & Spuce St. N/s 5th St. between G & H Streets NEC 5th St. & G St. SEC 5th St. & G St. SWC 5th St. & G St. 17.d Packet Pg. 534 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The analyses, opinions and conclusions communicated within this appraisal report were developed based upon the requirements and guidelines of the current Uniform Standards of Professional Appraisal Practice (USPAP), the requirements of the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute. The report is intended to conform to the appraisal guidelines of City of San Bernardino. The report, in its entirety, including all assumptions and limiting conditions, is an integral part of, and inseparable from, this letter. USPAP defines an Extraordinary Assumption as, “an assignment specific- assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions”. USPAP defines a Hypothetical Condition as, “that which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis”. The Extraordinary Assumptions and/or Hypothetical Conditions that were made during the appraisal process to arrive at our opinion of value are fully discussed below. We advise the client to consider these issues carefully given the intended use of this appraisal, as their use might have affected the assignment results. EXTRAORDINARY ASSUMPTIONS No Extraordinary Assumptions were made for this assignment. HYPOTHETICAL CONDITIONS No Hypothetical Conditions were made for this assignment. RELIANCE LANGUAGE The Appraisal is for the sole use of the Client; however, Client may provide only complete, final copies of the Appraisal report in its entirety (but not component parts) to third parties who shall review such reports in connection with loan underwriting or securitization efforts. Colliers International Valuation & Advisory Services is not required to explain or testify as to appraisal results other than to respond to the Client for routine and customary questions. Please note that our consent to allow the Appraisal prepared by Colliers International Valuation & Advisory Services or portions of such Appraisal, to become part of or be refere nced in any public offering, the granting of such consent will be at our sole and absolute discretion and, if given, will be on condition that Colliers International Valuation & Advisory Services will be provided with an Indemnification Agreement and/or Non-Reliance letter, in a form and content satisfactory to Colliers International Valuation & Advisory Services, by a party satisfactory to Colliers International Valuation & Advisory Services. Colliers International Valuation & Advisory Services does consent to your submission of the reports to rating agencies, loan participants or your auditors in its entirety (but not component parts) without the need to provide Colliers International Valuation & Advisory Services with an Indemnification Agreement and/or Non-Reliance letter. Colliers International Valuation & Advisory Services hereby expressly grants to Client the right to copy the Appraisal and distribute it to other parties in the transaction for which the Appraisal has been prepared, including employees of Client, other lenders in the transaction, and the borrower, if any. Our opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. 17.d Packet Pg. 535 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LETTER OF TRANSMITTAL LETTER OF TRANSMITTAL CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES The signatures below indicate our assurance to the client that the development process and extent of analysis for this assignment adhere to the scope requirements and intended use of the appraisal. If you have any specific questions or concerns regarding the attached appraisal report, or if Colliers International Valuation & Advisory Services can be of additional assistance, please contact the individuals listed below. Sincerely, COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES David A. Williams, MAI Valuation Services Director Certified General Real Estate Appraiser State of California License #AG035639 +1 213 417 3319 dave.a.williams@colliers.com Casey Merrill, MAI, ASA, FRICS Executive Managing Director | Southwest Region Certified General Real Estate Appraiser State of California License #AG003330 +1 213 417 3315 casey.merrill@colliers.com 17.d Packet Pg. 536 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) TABLE OF CONTENTS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES LETTER OF TRANSMITTAL INTRODUCTION _________________________________________________________________________ 1 Executive Summary _____________________________________________________________________ 1 Aerial Photograph ______________________________________________________________________ 2 Subject Property Photographs _____________________________________________________________ 3 Identification of Appraisal Assignment _______________________________________________________ 5 Scope of Work _________________________________________________________________________ 7 DESCRIPTIONS & EXHIBITS _______________________________________________________________ 9 Regional Map __________________________________________________________________________ 9 Regional Analysis ______________________________________________________________________ 10 Local Area Map _______________________________________________________________________ 15 Local Area Analysis ____________________________________________________________________ 16 Site Description _______________________________________________________________________ 20 Assessment & Taxation _________________________________________________________________ 30 Zoning Analysis _______________________________________________________________________ 31 Market Analysis _______________________________________________________________________ 32 Highest & Best Use ____________________________________________________________________ 37 VALUATION ___________________________________________________________________________ 41 Valuation Methods _____________________________________________________________________ 41 Land Valuation ________________________________________________________________________ 41 Calculation of Land Value – Sites 1 and 5 ___________________________________________________ 51 Calculation of Land Value – Sites 2, 3 and 4 _________________________________________________ 64 CERTIFICATION OF APPRAISAL ASSUMPTIONS & LIMITING CONDITIONS ADDENDA Valuation Glossary Qualifications of Appraisers Qualifications of Colliers International Valuation & Advisory Services 17.d Packet Pg. 537 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXECUTIVE SUMMARY TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 1 GENERAL INFORMATION Property Name Property Type Address City San Bernardino State California Zip Code 92410 County San Bernardino Core Based Statistical Area (CBSA)Riverside-San Bernardino-Ontario, CA Market Inland Empire Submarket Eastern San Bernardino Latitude 34.108043 Longitude -117.299123 Number Of Parcels 27 Assessor Parcels Total Taxable Value $0 (Publicly-Owned) Census Tract Number 57.01 SITE INFORMATION Land Area Acres Square Feet Usable 6.52 284,010 Unusable 0.00 0 Excess 0.00 0 Surplus 0.00 0 Total 6.52 284,010 Topography Level at street grade Shape Irregular Access Average Exposure Average/Good Current Zoning Flood Zone Zone X (Shaded) Seismic Zone Highest Risk, not in an Alquist-Priolo special study zone 5th Street Gateway Project Regional Downtown (CR-2) 0134-053-20-0000, 0134-053-21-0000, 0134-053-22-0000, 0134-053-23-0000, 0134-053-25-0000, 0134-053-26-0000, 0134-054-07-0000, 0134-054-08-0000, 0134-054-09-0000, 0134-054-24-0000, 0134-054-25-0000, 0134-054-26-0000, 0134-061-21-0000, 0134-061-22-0000, 0134-061-25-0000, 0134-061-30-0000, 0134-093-05-0000, 0134-093-06-0000, 0134-093-07-0000, 0134-093-08-0000, 0134-093-09-0000, 0134-101-02-0000, 0134-101-03-0000, 0134-101-04-0000, 0134-101-05-0000, 0134-101-06-0000, 0134-101-28-0000 745 W. Spruce St., W. 5th St., N. H St., & N. G. St. Land - Commercial Land VALUATION SUMMARY VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE MARCH 20, 2019 FINAL VALUE CONCLUSION Site Value 1 $180,000 Value/SF $4.15 Site Value 2 $810,000 Value/SF $7.50 Site Value 3 $260,000 Value/SF $11.50 Site Value 4 $520,000 Value/SF $9.60 Site Value 5 $340,000 Value/SF $6.30 Aggregate Retail Value $2,110,000 Value/SF $7.43/SF Bulk Value $1,690,000 Value/SF $5.95/SF 17.d Packet Pg. 538 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) AERIAL PHOTOGRAPH TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 2 COMPARABLE KEY The red lines are intended to identify the property and not serve as actual parcel lines from a plat map. 17.d Packet Pg. 539 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SUBJECT PROPERTY PHOTOGRAPHS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 3 SITE 1 LOOKING NORTHWEST FROM SPRUCE ST. SITE 1 LOOKING EAST FROM H ST. SITE 2 LOOKING SOUTH FROM SPRUCE ST. SITE 2 LOOKING EAST FROM H ST. SITE 3 LOOKING NORTHEAST FROM N. G ST. SITE 3 LOOKING NORTH FROM W. 5TH ST. 17.d Packet Pg. 540 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SUBJECT PROPERTY PHOTOGRAPHS CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 4 SITE 4 LOOKING EAST FROM N. G ST. SITE 4 LOOKING SOUTHEAST FROM W. 5TH ST. SITE 5 LOOKING WEST FROM N. G ST. SITE 5 LOOKING SOUTH FROM W. 5TH ST. W. 5TH ST LOOKING EAST W. 5TH ST. LOOKING WEST 17.d Packet Pg. 541 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) IDENTIFICATION OF APPRAISAL ASSIGNMENT TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 5 PROPERTY IDENTIFICATION The subject is comprised of 27 assessor parcels totaling 284,010 SF or 6.52-acre site at 745 W. Spruce St., the northeast corner of W. 5th St. and N. H St, and all four corners of the intersection of W. 5th St. and N. G St . They are grouped into five development sites, as shown below. We interviewed Oliver Mujica, a planning division manager with the City of San Bernardino. Mr. Mujica informed us that the total site was offered for development in December 2017 and a confidential developer was selected by the city for exclusive development rights in July 2018. He was unable disclose the transaction price in the agreement. As of March 2019, there are several proposed developments for the subject that include supermarket, convenience store, gas station, and fast-food uses. Furthermore, there are no entitlements or soil issues with the subject property. We have taken the proposed uses by the developer as factors to consider in developing our conclusions for highest and best use for the subject. The assessor’s parcel numbers are: 0134-053-20-0000, 0134-053-21-0000, 0134-053-22-0000, 0134-053-23- 0000, 0134-053-25-0000, 0134-053-26-0000, 0134-054-07-0000, 0134-054-08-0000, 0134-054-09-0000, 0134-054-24-0000, 0134-054-25-0000, 0134-054-26-0000, 0134-061-21-0000, 0134-061-22-0000, 0134-061- 25-0000, 0134-061-30-0000, 0134-093-05-0000, 0134-093-06-0000, 0134-093-07-0000, 0134-093-08-0000, 0134-093-09-0000, 0134-101-02-0000, 0134-101-03-0000, 0134-101-04-0000, 0134-101-05-0000, 0134-101- 06-0000, and 0134-101-28-0000. CLIENT IDENTIFICATION The client of this specific assignment is City of San Bernardino. PURPOSE The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. INTENDED USE The intended use of this appraisal is to assist the client in the disposition of this asset. INTENDED USERS City of San Bernardino is the only intended user of this report. Use of this report by third parties and other unintended users is not permitted. This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. ASSIGNMENT DATES Date of Report May 29, 2019 Date of Inspection March 20, 2019 Valuation Date - As-Is March 20, 2019 PERSONAL INTANGIBLE PROPERTY No personal property or intangible items are included in this valuation. PROPERTY AND SALES HISTORY Current Owner The multiple parcels that comprise the subject property was acquired by the City of San Bernardino separate dates as summarized below: 17.d Packet Pg. 542 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) IDENTIFICATION OF APPRAISAL ASSIGNMENT EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 6 The above information was provided by the City of San Bernardino and verified via public data services. Three-Year Sales History Other than the above, the subject has not been transferred during the past three years. Subject Sale Status The subject property is under contract to sell to a developer. However, the details of the transaction such as asking price, terms, or conditions were not provided or disclosed. DEFINITIONS OF VALUE Given the scope and intended use of this assignment, the definition of Market Value is applicable. The definition of Market Value, along with all other applicable definitions for this assignment, is located in the Valuation Glossary section of the Addenda. PROPERTY RIGHTS APPRAISED The property rights appraised constitute the fee simple interest. VALUE SCENARIO The valuation scenario developed in this appraisal report is the As-Is Market Value of the subject property’s fee simple interest. Owner APN Address Site No.City-Owned Doc # Aug 2016 and Jan 2017 Zoning City 0134-053-20 N “H” St 1 CR-2 City 0134-053-21 N “H” St 1 CR-2 City 0134-053-22 N “H” St 1 CR-2 City 0134-053-23 N “H” St 1 CR-2 City 0134-053-25 W Spruce St 1 CR-2 City 0134-053-26 W Spruce St 1 CR-2 City 0134-054-07 746 W 5th St 2 CR-2 City 0134-054-08 W Spruce St 2 CR-2 City 0134-054-09 W Spruce St 2 CR-2 City 0134-054-24 W 5th St 2 2017-0001218 CR-2 City 0134-054-25 796 W 5th St 2 2017-0001262 CR-2 City 0134-054-26 770 W 5th St 2 2017-0001261 CR-2 City 0134-061-21 5th St 3 CR-2 City 0134-061-22 5th St 3 CR-2 City 0134-061-25 5th St 3 CR-2 City 0134-061-30 696 W 5th St 3 CR-2 City 0134-101-02 673 W 5th St 4 2017-0001259 CR-2 City 0134-101-03 673 W 5th St 4 2017-0001258 CR-2 City 0134-101-04 W 5th St 4 CR-2 City 0134-101-05 W 5th St 4 CR-2 City 0134-101-06 W 5th St 4 CR-2 City 0134-101-28 495 N "G" St 4 2017-0001219 CR-2 City 0134-093-05 745 W 5th St 5 CR-2 City 0134-093-06 W 5th St 5 CR-2 City 0134-093-07 575 W 5th St 5 CR-2 City 0134-093-08 701 W 5th St 5 CR-2 City 0134-093-09 490 N “G” St 5 CR-2 5th St Gateway 2017-0001257 2016-0331259 2016-0331260 2016-0331261 2017-0001260 2017-0001229 17.d Packet Pg. 543 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SCOPE OF WORK TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 7 INTRODUCTION The appraisal development and reporting processes requires gathering and analyzing information about those assignment elements necessary to properly identify the appraisal problem to be solved. The scope of work decision must include the research and analyses that are necessary to develop credible assignment results given the intended use of the appraisal. Sufficient information includes disclosure of research and analyses performed and might also include disclosure of research and analyses not performed. The scope of work for this appraisal assignment is outlined below: • The appraisers analyzed the regional and local area economic profiles including employment, population, household income, and real estate trends. The local area was further studied to assess the general quality and condition, and emerging development trends for the real estate market. The immediate market area was inspected and examined to consider external influences on the subject. • The appraisers confirmed and analyzed legal and physical features of the subject property including sizes of the site, flood plain data, seismic zone, zoning, easements and encumbrances, access and exposure of the site. • The appraisers completed a land market analysis that included market and sub-market overviews. The Inland Empire market and Eastern San Bernardino sub-market overviews analyzed supply/demand conditions using vacancy, absorption, supply change and rent change statistics. Conclusions were drawn regarding the subject property’s competitive position given its physical and locational characteristics, the prevailing economic conditions and external influences. • The appraisers conducted Highest and Best Use analysis and conclusions were drawn for the highest and best use of the subject property As-Vacant. The analysis considered legal, locational, physical and financial feasibility characteristics of the subject site. • Selection of the valuation methods was based on the identifications required in USPAP relating to the intended use, intended users, definition and date of value, relevant property characteristics and assignment conditions. This appraisal developed the Sales Comparison Approach to value, which was adjusted and reconciled as appropriate. The appraisal develops an opinion of the As-Is Market Value of the subject property’s fee simple interest. • Reporting of this appraisal is in an Appraisal Report format as required in USPAP Standard 2. The appraiser’s analysis and conclusions are summarized within this document. • We understand the Competency Rule of USPAP and the authors of this report meet the standards. • Eric Allchorn provided significant real property appraisal assistance to the appraisers signing the certification. Assistance included gathering, analyzing and reporting regional, local area, zoning, and tax information, confirming some of the comparable data, and assisting with portions of the valuation analysis. 17.d Packet Pg. 544 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SCOPE OF WORK EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 8 SOURCES OF INFORMATION The following sources were contacted to obtain relevant information: SOURCES OF INFORMATION ITEM SOURCE Tax Information San Bernardino County Tax Assessor Zoning Information City of San Bernardino Zoning Code Site Size Information Parcel Map Building Size Information San Bernardino County Tax Assessor New Construction Costar Flood Map InterFlood Demographics Pitney Bowes/Gadberry Group - GroundView® Comparable Information See Comparable Datasheets for details Legal Description Grant Deed from RealQuest Other Property Data San Bernardino County Property Records SUBJECT PROPERTY INSPECTION SUBJECT PROPERTY INSPECTION APPRAISER INSPECTED EXTENT DATE OF INSPECTION David A. Williams, MAI Yes Site Only March 20, 2019 Eric Allchorn Yes Site Only March 20, 2019 Casey Merrill, MAI, ASA, FRICS No - 17.d Packet Pg. 545 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL MAP TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 9 COMPARABLE KEY 17.d Packet Pg. 546 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 10 INTRODUCTION The Riverside-San Bernardino-Ontario, CA MSA is in the southern portion of the state. The MSA is comprised of Riverside and San Bernardino counties, and is often referred to as the "Inland Empire". The area is bordered by Los Angeles and Orange counties to the west, and by the states of Nevada and Arizona to the east. As of 2011, Riverside County had a population of 2,239,620 and San Bernardino County had a population of 2,065,377 for a total population of 4,304,997 for the MSA, as estimated by the United States Census Bureau. There is a diverse economic base in the MSA, based on the concept of industry clusters. The two-county area has a diverse portfolio of “quality of life” elements. These include desert resorts with championship golf courses, including Oak Quarry in Riverside, and mountain resorts that offer skiing in the winter. There are also fine and performing arts such as theater and concerts performed by Riverside County Philharmonic and the San Bernardino Symphony. The Auto Club Speedway in Fontana is the largest auto racetrack in Southern California. DEMOGRAPHIC ANALYSIS The following is a demographic study of the region sourced by Pitney Bowes/Gadberry Group - GroundView®, an on-line resource center that provides information used to analyze and compare the past, present, and future trends of geographical areas. Demographic changes are often highly correlated to changes in the underlying economic climate. Periods of economic uncertainty necessarily make demographic projections somewhat less reliable than projections in more stable periods. These projections are used as a starting point, but we also consider current and localized market knowledge in interpreting them within this analysis. Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures. 17.d Packet Pg. 547 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 11 REGIONAL AREA DEMOGRAPHICS YEAR US CA CBSA YEAR US CA CBSA POPULATION NUMBER OF HOUSEHOLDS 2010 Total Population 308,745,538 37,253,956 4,224,851 2018 122,929,625 13,049,105 1,371,611 2018 Total Population 328,062,672 39,857,821 4,627,621 2023 126,604,011 13,333,173 1,415,018 2023 Total Population 339,788,898 41,463,447 4,861,523 CAGR 0.6% 0.4% 0.6% 2010 - 2018 CAGR 0.8% 0.8% 1.1%AVERAGE HOUSEHOLD SIZE 2018 - 2023 CAGR 0.7% 0.8% 1.0%2018 2.60 2.99 3.32 POPULATION DENSITY 2023 2.62 3.05 3.39 2018 Per Square Mile 91 252 169 CAGR 0.13% 0.38% 0.39% 2023 Per Square Mile 94 262 177 HOUSING UNITS MEDIAN AGE Owner Occupied 80,041,309 7,290,968 889,236 2018 37.35 35.40 33.15 Renter Occupied 42,888,316 5,758,137 482,375 2023 38.09 36.21 34.02 AVERAGE HOUSEHOLD INCOME CAGR 0.39% 0.46% 0.52%2018 $84,367 $98,603 $81,514 MEDIAN HOME VALUE 2023 $100,862 $117,101 $99,894 2018 $183,983 $405,009 $266,617 CAGR 3.6% 3.5% 4.2% PER CAPITA INCOME MEDIAN HOUSEHOLD INCOME 2018 $32,413 $32,958 $24,537 2018 $58,828 $68,209 $59,870 2023 $38,504 $38,413 $29,485 2023 $70,600 $81,780 $72,597 CAGR 3.5% 3.1% 3.7% CAGR 3.7% 3.7% 3.9% Source: Pitney Bowes/Gadberry Group - GroundView® Population According to Pitney Bowes/Gadberry Group - GroundView®, a Geographic Information System (GIS) Company, the Riverside-San Bernardino-Ontario metropolitan area had a 2018 total population of 4,627,621 and experienced an annual growth rate of 1.1%, which was higher than the California annual growth rate of 0.8%. The metropolitan area accounted for 11.6% of the total California population (39,857,821). Within the metropolitan area the population density was 169 people per square mile compared to the higher California population density of 252 people per square mile and the lower United States population density of 91 people per square mile. The 2018 median age for the metropolitan area was 33.15, which was 12.66% younger than the United States median age of 37.35 for 2018. The median age in the metropolitan area is anticipated to grow by 0.52% annually, increasing the median age to 34.02 by 2023. Education The Riverside-San Bernardino-Ontario MSA has an impressive array of higher education facilities, including the University of California-Riverside, California State University San Bernardino, The University of Redlands, and the Loma Linda School of Medicine. West of the county line in Los Angeles are The Claremont Colleges and California State Polytechnic University, Pomona. There are also several community colleges. Household Trends The 2018 number of households in the metropolitan area was 1,371,611. The number of households in the metropolitan area is projected to grow by 0.6% annually, increasing the number of households to 1,415,018 by 2023. The 2018 average household size for the metropolitan area was 3.32, which was 27.63% larger than the United States average household size of 2.6 for 2018. The average household size in the metropolitan area is anticipated to grow by 0.39% annually, raising the average household size to 3.39 by 2023. The Riverside-San Bernardino-Ontario metropolitan area had 35.17% renter occupied units, compared to the higher 44.13% in California and the lower 34.89% in the United States. Income Trends The 2018 median household income for the metropolitan area was $59,870, which was 1.8% higher than the United States median household income of $58,828. The median household income for the metropolitan area 17.d Packet Pg. 548 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 12 is projected to grow by 3.9% annually, increasing the median household income to $72,597 by 2023. As is often the case when the median household income levels are higher than the national average, the cost of living index is also higher. According to the American Chamber of Commerce Researchers Association (ACCRA) Cost of Living Index, the Riverside-San Bernardino-Ontario, CA MSA’s cost of living is 147.9 compared to the national average score of 100. The ACCRA Cost of Living Index compares groceries, housing, utilities, transportation, health care and miscellaneous goods and services for over 300 urban areas. Consumer Spending Comparison Apparel, 9.08% Computers , 2.15% Education, 6.51%Entertainment, 14.40% Food at Home, 20.27% Eating Out, 15.81% Health Care, 22.15% Hsld Furnishings , 9.22% Auto Maint., 0.41% Consumer Spending Riverside -San Bernardino-Ontario $0 $1,000 $2,000 $3,000 $4,000 $5,000 Consumer Spending Comparison Average Household United States California Riverside-San Bernardino-Ontario EMPLOYMENT Total employment has increased annually over the past decade in the state of California by 0.9% and increased annually by 1.9% in the area. From 2016 to 2017 unemployment decreased in California by 0.7% and decreased by 0.9% in the area. In the state of California unemployment has increased over the previous month by 0.2% and increased by 0.1% in the area. 17.d Packet Pg. 549 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 13 EMPLOYMENT & UNEMPLOYMENT STATISTICS 2008 - 2017 TOTAL EMPLOYMENT UNEMPLOYMENT RATE California Year Total % ∆ Yr Ago Total % ∆ Yr Ago 2008 16,854,482 (0.5%)1,626,145 (2.1%)5.8% 7.3%8.3% 2009 16,182,572 (4.0%)1,544,955 (5.0%)9.3% 11.2%12.9% 2010 16,091,945 (0.6%)1,611,176 4.3%9.6% 12.2%13.7% 2011 16,258,133 1.0%1,623,801 0.8%8.9% 11.7%13.0% 2012 16,602,672 2.1%1,662,671 2.4%8.1% 10.4%11.5% 2013 16,958,403 2.1%1,706,779 2.7%7.4% 8.9%9.8% 2014 17,310,937 2.1%1,765,313 3.4%6.2% 7.5%8.1% 2015 17,681,849 2.1%1,828,231 3.6%5.3% 6.2%6.6% 2016 18,002,773 1.8%1,866,559 2.1%4.9% 5.5%6.0% 2017 18,285,492 1.6%1,921,774 3.0%4.4% 4.8%5.1% CAGR 0.9%-1.9%---- Source: U.S. Bureau of Labor Statistics *Unadjusted Non-Seasonal Rate United States* Riverside-San Bernardino-Ontario, CA Metropolitan Statistical Area California Riverside-San Bernardino-Ontario, CA Metropolitan Statistical Area 3.0% 3.5% 4.0% 4.5% 5.0% UNEMPLOYMENT RATES Jan 2018 Feb 2018 Mar 2018 Apr 2018 May 2018 Jun 2018 Jul 2018 Aug 2018 Sep 2018 Oct 2018 Nov 2018 Dec 2018 USA 4.5%4.4%4.1%3.7%3.6%4.2%4.1%3.9%3.6%3.5%3.5%3.7% California 4.7%4.6%4.4%4.0%3.7%4.4%4.5%4.3%3.9%4.0%3.9%4.1% Area 4.6%4.4%4.1%3.7%3.7%4.7%4.6%4.5%4.1%4.1%3.9%4.0% The preceding chart depicts unemployment trends in the region, California and the U.S. Overall levels of unemployment in the region experienced a general decline throughout 2018. By the end of December 2018, unemployment in the region was 0.1% lower than California but 0.3% higher than the country’s overall unemployment rate. 17.d Packet Pg. 550 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REGIONAL ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 14 The preceding chart depicts the top employers in San Bernardino County. Principal employers are spread throughout the wholesale/retail trade, healthcare and information sectors. Starter Bros Holdings Inc. is the largest employer with 6,902 workers. It is privately held supermarket discount chain, based in the city of San Bernardino. The supermarket chain consists of 168 stores throughout Southern California. The second largest employer is Prime Healthcare Services. The private company operates 45 acute care hospitals serving communities in several areas of California, including San Diego, San Bernardino, Shasta County, Los Angeles and Orange County. Esri, Environmental Systems Research Institute is the third largest employer in the county with over 1,900 employees. The company is headquartered in Redlands, California. It is an international supplier of geographic information system software, web GIS and geodatabase management applications. AIRPORT STATISTICS The following chart summarizes the local airport statistics. LOS ANGELES INTERNATIONAL AIRPORT (LAX) YEAR ENPLANED PASSENGERS % CHG 2007 30,113,985 - 2008 28,861,477 (4.2%) 2009 27,439,897 (4.9%) 2010 28,857,755 5.2% 2011 30,528,737 5.8% 2012 31,326,268 2.6% 2013 32,425,892 3.5% 2014 34,314,197 5.8% 2015 36,351,226 5.9% 2016 39,636,042 9.0% 2017 41,232,432 4.0% Source: U.S. Department of Transportation SUMMARY The Riverside-San Bernardino-Ontario region has a diverse and strong economy with dynamic sectors such as healthcare, tourism, and clean energy technologies. Over the longer term, the region’s strengths are its concentration of high-technology manufacturing industries, renewable energy, and strong education research. These factors should have a positive impact and will benefit the regional economy for years to come. TOP EMPLOYERS EMPLOYER NAME EMPLOYEES INDUSTRY Stater Bros Holdings Inc.6,902 Wholesale/Retail Trade Prime Healthcare Services 2,500 Healthcare/Social Assistance Esri (Environmental Systems Research Institute)1,950 Information Epic Management, L.P.1,183 Professional/Scientific/Technical Services Riverside Medical Clinic 840 Healthcare/Social Assistance Classic Containers Inc.406 Manufacturing Lewis Operating Corp.330 Real Estate Beaver Medical Group 224 Healthcare/Social Assistance HMC Architects 224 Professional/Scientific/Technical Services Best Best & Krieger LLP 189 Professional/Scientific/Technical Services Source: http://www.bizjournals.com 17.d Packet Pg. 551 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA MAP TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 15 17.d Packet Pg. 552 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 16 INTRODUCTION In this section of the report, we provide details about the local area and describe the influences that bear on the real estate market as well as the subject property. A map of the local area is presented on the prior page. Below are insights into the local area based on fieldwork, interviews, demographic data and experience working in this market. LOCAL AREA PROFILE The subject property is located in San Bernardino, California, within San Bernardino County. San Bernardino is the county seat of San Bernardino County. It is within the Inland Empire, typically defined as the region east of Los Angeles and Orange counties, encompassing San Bernardino and Riverside counties. According to the 2010 census, the population was 209,924. The city is approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs. The state highways include State Route 18 and State Route 66. The city is traversed by Interstate 215, from north to south and SR-210, from east to west towards the city’s northerly border. Interstate 10 intersects the city across its southern border. Other freeways include State Route 259 and State Route 330. San Bernardino is served by the San Bernardino International Airport, a public airport less than two miles southeast of the city center. DEMOGRAPHIC PROFILE Below is a demographic study of the area, sourced by Pitney Bowes/Gadberry Group - GroundView®, an on- line resource center that provides information used to analyze and compare the past, present, and future trends of properties and geographical areas. Please note that our demographics provider sets forth income projections in constant dollars which, by definition, reflect projections after adjustment for inflation. We are aware of other prominent demographic data providers that project income in current dollars, which do not account for inflation. A simple comparison of projections for a similar market area made under the constant and current dollar methodologies can and likely will produce data points that vary, in some cases, widely. Further, all forecasts, regardless of demographer methodology(ies), are subjective in the sense that the reliability of the forecast is subject to modeling and definitional assumptions and procedures. 17.d Packet Pg. 553 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 17 LOCAL AREA DEMOGRAPHICS DESCRIPTION 1 MILE 3 MILES 5 MILES DESCRIPTION 1 MILE 3 MILES 5 MILES POPULATION AVERAGE HOUSEHOLD INCOME 2000 Population 15,460 132,465 328,141 2018 $33,146 $44,904 $52,516 2010 Population 16,751 148,685 361,585 2023 $39,105 $53,673 $63,255 2018 Population 17,033 152,218 374,986 Change 2018-2023 17.98%19.53%20.45% 2023 Population 17,367 155,520 384,437 MEDIAN HOUSEHOLD INCOME Change 2000-2010 8.35%12.24%10.19%2018 $22,887 $33,972 $40,140 Change 2010-2018 1.68%2.38%3.71%2023 $27,161 $39,846 $47,967 Change 2018-2023 1.96%2.17%2.52%Change 2018-2023 18.68%17.29%19.50% POPULATION 65+PER CAPITA INCOME 2010 Population 1,307 11,148 28,178 2018 $9,296 $12,135 $14,880 2018 Population 1,477 13,121 32,468 2023 $10,870 $14,380 $17,759 2023 Population 1,706 15,469 38,459 Change 2018-2023 16.94%18.50%19.35% Change 2010-2018 13.01%17.70%15.22%2018 HOUSEHOLDS BY INCOME Change 2018-2023 15.50%17.89%18.45%<$15,000 32.7%21.7%17.3% NUMBER OF HOUSEHOLDS $15,000-$24,999 20.5%15.9%13.9% 2000 Households 4,351 37,242 98,608 $25,000-$34,999 13.7%13.8%13.2% 2010 Households 4,582 38,916 101,208 $35,000-$49,999 12.2%15.2%15.4% 2018 Households 4,698 40,130 104,591 $50,000-$74,999 12.5%17.1%17.7% 2023 Households 4,756 40,721 106,375 $75,000-$99,999 4.9%8.2%10.6% Change 2000-2010 5.31%4.49%2.64%$100,000-$149,999 2.4%5.9%8.3% Change 2010-2018 2.53%3.12%3.34%$150,000-$199,999 0.8%1.7%2.7% Change 2018-2023 1.23%1.47%1.71%$200,000 or greater 0.2%0.4%0.8% HOUSING UNITS (2018)MEDIAN HOME VALUE $126,816 $143,293 $177,225 Owner Occupied 1,229 18,598 50,233 AVERAGE HOME VALUE $147,186 $165,353 $198,939 Renter Occupied 3,482 21,495 54,399 HOUSING UNITS BY UNITS IN STRUCTURE HOUSING UNITS BY YEAR BUILT 1, detached 2,577 26,158 64,295 Built 2010 or later 64 225 724 1, attached 340 2,313 4,803 Built 2000 to 2009 349 2,093 5,011 2 122 1,004 2,085 Built 1990 to 1999 264 2,581 9,292 3 or 4 392 2,227 7,081 Built 1980 to 1989 527 4,548 18,209 5 to 9 234 1,572 6,335 Built 1970 to 1979 465 4,481 15,581 10 to 19 146 1,106 5,201 Built 1960 to 1969 541 4,782 14,962 20 to 49 241 984 3,432 Built 1950 to 1959 837 9,868 23,854 50 or more 633 1,883 5,335 Built 1940 to 1949 406 5,573 8,912 Mobile home 25 2,821 6,032 Built 1939 or earlier 1,245 5,978 8,045 Boat, RV, van, etc.0 26 34 Source: Pitney Bowes/Gadberry Group - GroundView® Transportation Routes Major traffic arteries are shown in the chart below: MAJOR ROADWAYS & THOROUGHFARES HIGHWAY DIRECTION FUNCTION DISTANCE FROM SUBJECT I-215 north-south State Route 210 east-west I-10 east-west SURFACE STREETS DIRECTION FUNCTION DISTANCE FROM SUBJECT W. 5th St.east-west N. H St.north-south Spruce St.north-south W. 6th St.east-west Interstate Highway Local Highway Interstate Highway Secondary Arterial The subject property fronts this street. The subject property fronts this street. Local The subject property fronts this street. Secondary Arterial This is half a block north of subject property. This is half a block west of subject property. Primary Arterial This is 2.50 miles north of the subject property. This is 3 miles south of the subject property. Public Transportation is within one mile south of the subject property in the form of the San Bernardino Downtown Metrolink. Furthermore, at the northwest corner of W. 5th St. and H St. is a bus stop serviced by bus route 14. Also, further east along W. 5th St. at the southeast corner of W. 5th St. and N. G St. is another bus stop that is also serviced bus route 14. 17.d Packet Pg. 554 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 18 Economic Factors Government, retail, and services are the dominant industries within San Bernardino’s economy. The city's location close to the Cajon and San Gorgonio passes, and at the junctions of the Interstate 10, Interstate 215, and State Route 210 freeways, places it as an intermodal logistics hub. San Bernardino is home to the Burlington Northern and Santa Fe Railway's intermodal freight transport yard, the Yellow Freight Systems' cross-docking trucking center, and Pacific Motor Trucking. This freight transport yard makes San Bernardino a hub for transportation and creates demand for industrial warehouse and distribution for the area. Important warehouses for Kohl's, Mattel, Pep Boys, and Stater Bros. have been developed near the San Bernardino International Airport. The city's riverfront district along Hospitality Lane has drawn much of the regional economic development. This area now hosts a full complement of office buildings, big-box retailers, restaurants, and hotels situated around the Santa Ana River. Amazon.com built a new 950,000-square-foot fulfillment warehouse on the south side of the airport, promising to create 1,000 new jobs, which will make it one of the city's largest employers. Education is a main component of the local economy. San Bernardino hosts the California State University, San Bernardino. The Community Hospital of San Bernardino is also a prominent employer in the city. Local Area The subject property itself has frontage on W. 5th St. and is directly east of the I-215 with numerous commercial properties surrounding the subject. The most prominent of these commercial properties is the vacant Carousel Mall (240,000 SF) one block south of the subject property. The center was once a prominent regional shopping center; however, it saw a substantial decline during the 2000s, leading to its closure. In January 2008, LNR Corp sold the Carousel Mall property. The adjoining movie theater, Cinema Star, also closed its doors in 2008, further reducing foot traffic to the property. The Mall property has been vacant since August 2017 after the remaining tenants had been evicted. From our discussion with Oliver Mujica, Planning Division Manager with the City of San Bernardino, there are currently no plans filed with officials to change or improve Carousel Mall at this time. As of 2019, the property is owned by the city and there are discussions to revamp it as a mixed-use center that will incorporate housing, office space and more restaurants. But, a full rollout of that plan is expected to take 5 to 10 years, according to Mr. Mujica. Furthermore, there is a neighborhood center known as Central City Plaza one block south of the subject property. The center has a vacant anchor space and most of the inline and pad space tenants have vacated the premises as well. Attempts to reach out to the leasing agents for the property were not returned. However, there are some revitalized retail areas near the subject property. Two blocks south of the subject are two neighborhood centers anchored by Food 4 Less, Ross Dress For Less, and dd’s Discount. According to the listing agent for the centers, Fara Raban, Manager at Opics Properties, the center has been doing very well, due to the new Rapid Transit Center and Metrolink station one block south of the center. One block southeast of the subject is the Regal Cinemas San Bernardino 14. In November 2011, the city of San Bernardino approved a negotiation with Regal to rehabilitate the failed Cinema Star theater. Regal Cinemas opened in Cinema Stars place on June 29, 2012 with RPX under the name of Regal San Bernardino Theatre Square Stadium 14 & RPX. Lastly, on May 11, 2014 the county of San Bernardino opened a 12-story, 200-foot-tall courthouse known as the San Bernardino Justice Center. The county has been consolidating many county-wide court functions in the new structure, which is the tallest building in San Bernardino and the Inland Empire. In conclusion, while the immediate area has seen substantial declines in recent years there is evidence of successful revitalization efforts of commercial properties in the area. This will inform our conclusions of highest and best use. 17.d Packet Pg. 555 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LOCAL AREA ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 19 Community Services Community services and facilities are readily available in the surrounding area. These include public services such as fire stations, hospitals, police stations, and schools (all ages). The subject property is located in the San Bernardino City Unified School District. IMMEDIATE AREA PROFILE This section discusses uses and development trends in the immediate area that directly im pact the performance and appeal of the subject property. Predominant Land Uses Significant development in the immediate area consists of office and retail uses along major arterials that are interspersed with multi-family complexes and single-family residential development removed from arterials. There are also a number of motels located along H St., N. G. St. and W. 5th St. SUBJECT PROPERTY ANALYSIS The following discussion draws context and analysis on how the subject property is influenced by the local and immediate areas. Subject Property Analysis The uses adjacent to the property as a whole are noted below: › North - North of the subject is Juanita Blakely Jones Elementary School and single-family homes. Further north is Sturges Center of Fine Arts. › South - South of the subject is the San Bernardino County Child Services and San Bernardino City Hall. Further south is neighborhood center, Carousel Mall, and a Metrolink Station. › East - East of the subject is a Regal Cinemas and California Theater of Performing Arts. Further east is Workers Compensation Appeals Board, the Consulate of Mexico, and San Bernardino Superior Court Civil Division. › West - West of the subject is In-N-Out Burger and I-215. Further west is the San Bernardino Train Depot and single-family homes. Access The subject site has frontage on three arterials. Based on our field work, the subject’s access is rated average compared to other properties with which it competes. The property as a whole is one block east of on/offramps for I-215. Visibility The subject is clearly visible in both directions along 5th street, a primary thoroughfare. There is also average visibility along G & H streets and the property is not hampered by adjacent properties, trees or other obstructions. In comparison to competitive properties, the subject property has good visibility. The subject is not visible from I-215 as the freeway is above grade and the subject is below grade from the freeway and visibility is obscured by a sound wall. Subject Conclusion The immediate area has declined since the 1990s and is in the early stages of revitalization. SUMMARY San Bernardino continues to be part of a growing and influential industrial hub in southern California. The city’s strategic location and broad transportation advantages are responsible for its economic diversity and potential growth. The subject benefits from its strategic location in proximity to three well-traveled arterials and benefits from freeway access to the I-215. Overall the condition and appeal of the market area is generally good. 17.d Packet Pg. 556 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SITE DESCRIPTION TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 20 General Description The subject consists of 27 parcels grouped into five development sites. SITE SIZE CALCULATION NAME ADDRESS SQUARE FEET Site 1 42,689 Site 2 107,593 Site 3 22,651 Site 4 56,627 Site 5 54,450 TOTAL SIZE 284,010 NEC H St. & Spuce St. N/s 5th St. between G & H Streets NEC 5th St. & G St. SEC 5th St. & G St. SWC 5th St. & G St. The total land area is 284,010 SF (6.52 AC) of land. The area is estimated based on the assessor's parcel map, and may change if a professional survey determines more precise measurements. Going forward, our valuation analyses will utilize the usable site area. The following discussion summarizes the subject site size and characteristics. Assessor Parcels Number Of Parcels 27 Land Area Acres Square Feet Usable Land 6.52 284,010 Unusable Land 0.00 0 Excess Land 0.00 0 Surplus Land 0.00 0 Total Land Area 6.52 284,010 Shape See Multiple Parcel Chart For Breakdown Topography Level at street grade Drainage Assumed Adequate Utilities All available to the site See Multiple Parcel Chart For Breakdown Street Improvements Street Direction No. Lanes Street Type CurbsSidewalksStreetlightsCenter LaneGuttersW. 5th St.Primary Street two-way four-lane major arterial ✓✓✓✓✓ N. H St.Primary Street two-way four-lane minor arterial ✓✓✓✓ Spruce St.Secondary Street two-way two-lane connector street ✓✓✓ N. G. St.Primary Street two-way four-lane minor arterial ✓✓✓✓ Frontage Traffic Counts LOCATION DATE SOURCE COUNT W. 5th St.Bet. G & H str.2004 City of SB N. G. St.Bet. 5th & 6th str.2004 City of SB TOTAL 33,166 The subject has frontage on both the north and south sides of W. 5th St. and Spruce St., the subject has frontage on the east and west sides of N.G St. The east side of N. H. St., and the subject has good access to I-215 west of the subject. 22,938 10,228 I have used the city-provided data as it is the most accurate for the subject’s location. Given that it was issued 15 years ago in inferior economic conditions, I conclude that the counts would be higher today. 17.d Packet Pg. 557 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SITE DESCRIPTION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 21 MULTIPLE PARCEL DESCRIPTIONS USABLE TOTAL PARCEL SF AC SF AC ADDRESS SHAPE Site 1 0134-053-20-0000 6,970 0.16 6,970 0.16 742 W. Spruce St.Rectangular 0134-053-21-0000 6,970 0.16 6,970 0.16 W. Spruce St.Rectangular 0134-053-22-0000 6,970 0.16 6,970 0.16 W. Spruce St.Rectangular 0134-053-23-0000 6,970 0.16 6,970 0.16 W. Spruce St.Rectangular 0134-053-25-0000 7,405 0.17 7,405 0.17 555 N. H St.Rectangular 0134-053-26-0000 7,405 0.17 7,405 0.17 N H St.Rectangular Site 1 Total 42,689 0.98 42,689 0.98 Site 2 0134-054-07-0000 20,473 0.47 20,473 0.47 746 W. 5th St.Rectangular 0134-054-08-0000 5,663 0.13 5,663 0.13 W. Spruce St.Rectangular 0134-054-09-0000 4,792 0.11 4,792 0.11 723 W. Spruce St.Rectangular 0134-054-24-0000 33,541 0.77 33,541 0.77 W. 5th St.Rectangular 0134-054-25-0000 18,731 0.43 18,731 0.43 796 W. 5th St.L-Shaped 0134-054-26-0000 24,394 0.56 24,394 0.56 770 W. 5th St.L-Shaped Site 2 Total 107,593 2.47 107,593 2.47 Site 3 0134-061-21-0000 6,098 0.14 6,098 0.14 696 W. 5th St.Rectangular 0134-061-22-0000 4,356 0.10 4,356 0.10 696 W. 5th St.Rectangular 0134-061-25-0000 3,920 0.09 3,920 0.09 696 W. 5th St.Rectangular 0134-061-30-0000 8,276 0.19 8,276 0.19 696 W. 5th St.Rectangular Site 3 Total 22,651 0.52 22,651 0.52 Site 4 0134-101-02-0000 7,405 0.17 7,405 0.17 673 W. 5th St.Rectangular 0134-101-03-0000 6,098 0.14 6,098 0.14 673 W. 5th St.Rectangular 0134-101-04-0000 7,405 0.17 7,405 0.17 W. 5th St.Rectangular 0134-101-05-0000 10,454 0.24 10,454 0.24 W. 5th St.Rectangular 0134-101-06-0000 7,405 0.17 7,405 0.17 W. 5th St.Rectangular 0134-101-28-0000 17,860 0.41 17,860 0.41 495 N. G St.Rectangular Total Site 4 56,627 1.30 56,627 1.30 Site 5 0134-093-05-0000 28,750 0.66 28,750 0.66 745 W. 5th St.Rectangular 0134-093-06-0000 3,049 0.07 3,049 0.07 W. 5th St.Rectangular 0134-093-07-0000 5,663 0.13 5,663 0.13 575 W. 5th St.Rectangular 0134-093-08-0000 7,841 0.18 7,841 0.18 701 W. 5th St.Rectangular 0134-093-09-0000 9,148 0.21 9,148 0.21 N. G St.Rectangular Total Site 5 54,450 1.25 54,450 1.25 N. G St.Rectangular TOTAL 284,010 6.52 284,010 6.52 Accessibility Average - The subject has frontage on both the north and south sides of W. 5th St. and Spruce St., the subject has frontage on the east and west sides of N. G St. The east side of N. H. St., and the subject has access to I-215 west of the subject. We will comment specifically on each development parcel in the Highest and Best Use section of this report. Exposure Average/Good - The subject has frontage on both the north and south sides of W. 5th St. and Spruce St., the subject has frontage on east and west side of N. G 17.d Packet Pg. 558 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SITE DESCRIPTION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 22 St. The east side of N. H. St. While the subject has no visual exposure from the I- 215 Freeway, which has an AADT of 175,000, it nevertheless benefits from freeway traffic, as the on/off ramps are located ±50 yards to the west. We will comment specifically on each development parcel in the Highest and Best Use section of this report. Seismic Highest Risk, not in an Alquist-Priolo special study zone. Flood Zone Zone X (Shaded). This is referenced by Community Number 060281, Panel Number 06071C8681J, dated September 02, 2016. Zone X (shaded) is a Non - Special Flood Hazard Area (NSFHA) of moderate flood hazard, usually the area between the limits of the 100-year and 500-year floods. Are also used to designate base floodplains of lesser hazards, such as areas protected by levees from 100-year flood, or shallow flooding areas with average depths of less than one foot or drainage areas less than 1 square mile. This is an area in a low to moderate risk flood zone that is not in any immediate danger from flooding caused by overflowing rivers or hard rains. In communities that participate in the National Flood Insurance Program (NFIP), flood insurance is available to all property owners and renters in this zone. Easements A preliminary title report was not available for review. During the on-site inspection, no adverse easements or encumbrances were noted. This appraisal assumes that there is no negative value impact on the subject improvements. If questions arise regarding easements, encroachments, or other encumbrances, further research is advised. Soils A soils analysis was not available for review. Based on the development of the subject, it appears the soils are stable and suitable for the existing improvements. Hazardous Waste We have not conducted an independent investigation to determine the presence or absence of toxins on the subject property. If questions arise, the reader is strongly cautioned to seek qualif ied professional assistance in this matter. Please see the Assumptions and Limiting Conditions for a full disclaimer. Site Rating Overall, the subject site is considered a good land site in terms of its location, exposure, and access to the Interstate freeway system via the I-215 half a block west of the western edge of the subject property. 17.d Packet Pg. 559 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 23 PLAT MAP A – SITE 1 & 2 17.d Packet Pg. 560 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 24 PLAT MAP B – SITE 3 17.d Packet Pg. 561 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 25 PLAT MAP C – SITE 4 17.d Packet Pg. 562 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 26 PLAT MAP D – SITE 5 17.d Packet Pg. 563 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 27 ZONING MAP 17.d Packet Pg. 564 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 28 FLOOD MAP 17.d Packet Pg. 565 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) EXHIBITS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 29 CONCEPT SITE PLAN IDENTIFICATION Please note the site outlined in red is owned by In-N-Out and not part of the subject property. 17.d Packet Pg. 566 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ASSESSMENT & TAXATION TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 30 ASSESSMENT & TAXATION Assessment of real property is established by an assessor that is an appointed or elected official charged with determining the value of each property. The assessment is used to determine the necessary rate of taxation required to support the municipal budget. A property tax is a levy on the value of property that the owner is required to pay to the municipality in which it is situated. Multiple jurisdictions may tax the same property. The 27-parcel property is owned by the City of San Bernardino. As a result, none of the parcels pay property taxes. Tax records indicate that the parcels lie within tax rate area 7006 with a base tax rate of 1.013058. The subject parcels have no current assessment. Further, a developer would likely create an assemblage. Accordingly, estimating taxes for the parcels is outside scope of our assignment. 17.d Packet Pg. 567 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ZONING ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 31 INTRODUCTION Zoning requirements typically establish permitted and prohibited uses, building height, lot coverage, setbacks, parking and other factors that control the size and location of improvements on a site. The zoning characteristics for the subject property are summarized below: ZONING SUMMARY Municipality Governing Zoning City of San Bernardino Planning & Zoning Department Current Zoning Regional Downtown (CR-2) Permitted Uses Prohibited Uses Industrial Current Use Vacant Land Is Current Use Legally Permitted?Yes Zoning Change Not Likely Commercial & Residential ZONING REQUIREMENTS Minimum Site Area (SF)10,000 SF Minimum Yard Setbacks Front (Feet)10 Rear (Feet)0 Side (Feet)10 Maximum Site Coverage 50% Maximum Building Height 30 Feet Parking Requirement Spaces Per 1,000 SF 4 Spaces Required 0 Spaces Provided 0 Source: City of San Bernardino Planning & Zoning Department ZONING CONCLUSIONS Detailed zoning studies are typically performed by a zoning or land use expert, including attorneys, land use planners, or architects. The depth of our analysis correlates directly with the scope of this assignment, and it considers all pertinent issues that have been discovered through our due diligence. Please note that this appraisal is not intended to be a detailed determination of compliance, as that determination is beyond the scope of this real estate appraisal assignment. 17.d Packet Pg. 568 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 32 INTRODUCTION As concluded ahead, the highest and best use of the subject site as-vacant is development of retail uses. Therefore, this section provides a brief study of retail supply/demand conditions for the Inland Empire Market and East Inland Empire Submarket, market participant interviews and transaction trends. These findings are used to support our conclusions for the competitive position, and exposure period of the subject site. INLAND EMPIRE RETAIL MARKET The following is an analysis of supply/demand trends in the Inland Empire Retail market using information provided by CoStar, widely recognized as a credible source for tracking market statistics. The table below presents historical data for key market indicators. INLAND EMPIRE HISTORICAL STATISTICS (LAST TEN YEARS) PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2009 188,048,927 SF 1,393,861 SF (882,442) SF 6.9%$14.46/SF 2010 188,343,983 SF 562,348 SF 751,344 SF 9.4%$17.56/SF 2011 188,203,532 SF 421,581 SF (442,643) SF 9.6%$17.03/SF 2012 188,772,070 SF 1,066,548 SF 1,055,197 SF 9.1%$16.08/SF 2013 189,289,761 SF 1,021,413 SF 1,416,308 SF 8.9%$15.67/SF 2014 190,486,022 SF 1,710,084 SF 1,954,111 SF 8.4%$15.59/SF 2015 191,052,932 SF 974,945 SF 574,006 SF 8.2%$15.59/SF 2016 191,753,476 SF 994,949 SF 2,186,881 SF 7.8%$15.91/SF 2017 193,190,207 SF 1,604,051 SF 1,242,248 SF 7.6%$16.62/SF 2018 194,630,379 SF 1,715,100 SF 1,922,611 SF 7.4%$17.55/SF CAGR 0.3%---2.0% *Supply numbers based on information which is amended/updated on an on-going basis by Costar. Source: Costar® The following table summarizes the trailing four quarter performance of the Inland Empire market. INLAND EMPIRE TRAILING FOUR QUARTER PERFORMANCE PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2018 Q1 193,454,212 SF 363,277 SF (152,776) SF 7.7%$16.64/SF 2018 Q2 193,746,430 SF 468,911 SF 729,866 SF 7.4%$17.60/SF 2018 Q3 194,113,350 SF 364,887 SF 624,901 SF 7.3%$17.92/SF 2018 Q4 194,630,379 SF 518,025 SF 720,620 SF 7.2%$18.03/SF Source: Costar® Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below. INLAND EMPIRE MARKET TREND ANALYSIS TRAILING FOUR QUARTERS TREND ANALYSIS Q4 2018 2018 Last 10 Total SF 194,630,379 194,630,379 190,377,129 Vacant SF 13,916,598 14,402,648 15,864,126 Market Vacancy 7.2%7.4%8.3% Construction Growth Rate 0.3%0.9%0.3% Absorption Rate 0.4%1.0%0.5% Average Asking Rent/SF $18.03 $17.55 $16.21 Source: Costar® 17.d Packet Pg. 569 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 33 Inland Empire Market Conclusion Based on the preceding analysis, the Inland Empire Retail market demonstrates sound fundamentals. Analysis of supply and demand factors indicate the market is currently stable with no evidence to prove this will change any time soon. There are no observed weaknesses of the market that stand out. EAST INLAND EMPIRE RETAIL SUBMARKET OVERVIEW The following is an analysis of supply/demand trends in the East Inland Empire Retail submarket using information provided by CoStar. The table below presents historical data for key market indicators. EAST INLAND EMPIRE HISTORICAL STATISTICS (LAST TEN YEARS) PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2009 28,974,379 SF 303,012 SF (242,738) SF 7.9%$10.51/SF 2010 28,989,668 SF 16,213 SF 31,318 SF 11.4%$12.84/SF 2011 29,007,026 SF 67,868 SF (29,477) SF 11.5%$12.81/SF 2012 29,057,637 SF 75,144 SF 491,759 SF 10.3%$12.91/SF 2013 29,152,411 SF 119,328 SF (120,986) SF 10.7%$13.48/SF 2014 29,309,188 SF 167,841 SF 133,705 SF 10.6%$13.85/SF 2015 29,639,477 SF 338,345 SF 451,319 SF 10.5%$13.36/SF 2016 29,752,675 SF 163,617 SF 341,327 SF 9.6%$13.58/SF 2017 30,164,439 SF 458,011 SF 315,580 SF 9.8%$14.41/SF 2018 30,617,816 SF 479,502 SF 198,384 SF 9.8%$15.09/SF CAGR 0.6%---3.7% *Supply numbers based on information which is amended/updated on an on-going basis by Costar. Source: Costar® The following table summarizes the trailing four quarter performance of the East Inland Empire submarket. EAST INLAND EMPIRE TRAILING FOUR QUARTER PERFORMANCE PERIOD SUPPLY NEW CONSTRUCTION NET ABSORPTION VACANCY ASKING RENT 2018 Q1 30,198,814 SF 36,600 SF (38,267) SF 9.6%$14.92/SF 2018 Q2 30,191,950 SF 17,036 SF 9,571 SF 9.6%$14.70/SF 2018 Q3 30,293,271 SF 101,321 SF (13,239) SF 9.9%$15.40/SF 2018 Q4 30,617,816 SF 324,545 SF 240,319 SF 10.1%$15.33/SF Source: Costar® Key supply/demand statistics for the most recent quarter, last year and historical averages are summarized below. EAST INLAND EMPIRE MARKET TREND ANALYSIS TRAILING FOUR QUARTERS TREND ANALYSIS Q4 2018 2018 Last 10 Total SF 30,617,816 30,617,816 29,466,472 Vacant SF 3,084,998 3,000,546 3,004,107 Market Vacancy 10.1%9.8%10.2% Construction Growth Rate 1.1%1.6%0.6% Absorption Rate 0.8%0.6%0.5% Average Asking Rent/SF $15.33 $15.09 $13.28 Source: Costar® 17.d Packet Pg. 570 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 34 East Inland Empire Submarket Conclusion Based on the preceding analysis, the East Inland Empire Retail market demonstrates sound fundamentals. Analysis of supply and demand factors indicate the market is currently stable with no evidence to prove this will change any time soon. There are no observed weaknesses of the market that stand out. BROKER / MARKET PARTICIPANT INTERVIEWS Interviews with brokers and other market participants were conducted to put previously discussed trends and data into better context of what is really occurring in the marketplace. Ryan Gast, Senior Associate, CBRE Mr. Gast opines that the subjects highest and best use is for commercial development and that pad space or gas stations would make the most sense to develop. Furthermore, he opined that corner lots would be valued at $10 per square foot while inline lots would be $6 per square foot. However, he indicated that he did not have any sales to support the higher end of values. Mel Wagstaff, Vice President, Keller Williams Mr. Wagstaff opines that the subjects highest and best use is for commercial development and that dollar stores and gas stations would make the most sense to develop. Furthermore, he opined that the site would be valued at $6 to $7 per square foot for commercial land. Fara Raban, Manager, Opics Properties Mr. Faban is the listing broker for a twin anchor center at 555 W. 2nd St. in San Bernardino. The center is anchored by a Food 4 Less and Ross Dress For Less. According to Mr. Faban, the center has been doing very well by providing discounted products to lower middle class clients. Food 4 Less has seen an increase in their revenue from 2017 to 2018 by $300,000. He opined that the subject property could benefit by developing for lower middle-class clientele. Juan D. Gutierrez, Senior Vice President, Voit Real Estate Services Mr. Gutierrez is an industrial land broker who has been involved in many industrial land sales in the Inland Empire. He opined that the subject would be valued at $15 per square foot. However, he opined that the subjects highest and best use would be for commercial use even if it does not have the same value as comparable industrial land. Larry Lynch, President, Korek Land Company Mr. Lynch opines that the subject would be valued at $2.00 to $3.00 per square foot for commercial land. Tony Guglielmo, Broker, Allied Mr. Gugliemo opines that the subject would be valued at $2.00 to $4.00 per square foot for commercial land. TRANSACTION TRENDS In the open market, the subject property type would command most interest from national and regional buyers that are actively pursuing similar large investment properties. Refining the buyer profile a bit further, specific buyers known to be active for this property type primarily include Developers. There is currently steady buyer demand for substitute properties of the subject based on the volume of sale transactions and reports by buyers, sellers and other market participants during confirmation of market transactions. The most probable buyer is a national and regional investor. 17.d Packet Pg. 571 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 35 Sales volume of retail buildings in the Inland Empire were inconsistently rising and falling from 2009 to 2012. Sales volume increased rapidly from 2013 to 2015 before stabilizing from 2016 to 2018. Sales volume in 2019 only represents the first two months of 2019. Based on the preceding analysis, there is an established sales market for the subject property. As previously discussed, the velocity of sale transactions has been steady over the past six months. Currently there is steady buyer demand, while there is general availability for this property type on the supply side. Based on these factors, conditions are in equilibrium in regard to negotiating sale terms. SUBJECT PROPERTY ANALYSIS Based on our analysis of the subject property and investigation of substitute properties in the marketplace, the subject is considered to have Average overall buyer appeal with an Average competitive position if the asset was exposed to the open market. EXPOSURE TIME & MARKETING PERIOD Exposure time is defined as "The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based on an analysis of past events assuming a competitive and open market" (The Dictionary of Real Estate Appraisal, Appraisal Institute, 2015). Reasonable exposure time is impacted by the aggressiveness and effectiveness of a property’s exposure to market participants, availability and cost of financing, and demand for similar investments. Exposure time is best established based the recent history of marketing periods for comparable sales, discussions with market participants and information from published surveys. The availability of acquisition financing factors into exposure time. In recent quarters, financing has been available for well-positioned commercial real estate, particularly for stabilized assets within core MSAs and 17.d Packet Pg. 572 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) MARKET ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 36 owner/user deals. For second tier or marginal properties, financing has been available but subject to more stringent requirements. Based on review of the local capital market, we conclude that adequate financing options would have been available to consummate a sale of the property on the date of value. Exposure Time Conclusion The preceding information generally supports an exposure time range from 9 to 12 months for sites similar to the subject. Based on its overall physical and locational characteristics, the subject site has average overall appeal to developers. Considering these factors, a reasonable estimate of exposure time for the subject property is six months. Marketing Period Conclusion Marketing period is very similar to exposure time, but reflects a projected time period to sell the property, rather than a retrospective estimate. Having reviewed open listings and discussed the market with local participants, and given the nature of this site, we feel that a time period of six months is supported for the subject's marketing period. 17.d Packet Pg. 573 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) HIGHEST & BEST USE ANALYSIS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 37 INTRODUCTION The highest and best use of an improved property is defined as that reasonable and most probable use that will support its highest present value. The highest and best use, or most probable use, must be legally permissible, physically possible, financially feasible, and maximally productive. This section develops the highest and best use of the subject property As-Vacant. We will present five separate highest and best uses of the subject property for the five contiguous sites we are valuing. We have concluded to this since each site has physical and location factors that make the highest and best use not congruent between the five contiguous sites. SITE 1 AS-VACANT ANALYSIS Legal Factors The legal factors that possibly influence the highest and best use of the subject site are discussed in this section. Private restrictions, zoning, building codes, historic district controls, and environmental regulations are considered, if applicable to the subject site. Permitted uses of the subject’s Regional Downtown (CR-2) zoning were listed in the Zoning Analysis section. Overall, legal factors support a broad range of office, retail, mixed- use, and public uses for the subject site. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with average access and average/good exposure. The subject site has frontage on the north side of Spruce Street, a secondary street and the east side of N. H St. a primary arterial. The site has a N. H St. frontage of 90 feet and extends 350 feet, making for a high depth-to-frontage ratio. The site has significant frontage on W. Spruce St ., but limited exposure. The immediate area is developed with residential, retail, and motel use along nearby arterials. Specifically, the presence of motels next door and across the street show that hospitality use in the area is an appropriate and feasible use for lots with high depth to frontage ratios. Of the outright permitted uses, physical and locational features best support hospitality development, such as motel or hotel use, for the site’s highest and best use as-vacant. Feasibility Factors Regarding financial feasibility of retail properties in the submarket, the East Inland Empire Submarket are experiencing a high level of retail construction compared to historical norms. This is due to increasing asking 17.d Packet Pg. 574 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) HIGHEST & BEST USE ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 38 rent and decreasing vacancy. Within the San Bernardino city limits, there are 21 retail properties either proposed or under construction. Proximate to the subject, there are two 540 N. Arrowhead Ave. (Storefront Retail/Office): This represents the proposed construction of a 22,140 SF retail store with second story office space to be developed near the downtown area of San Bernardino. There is no established delivery date or construction date. This is three blocks east of the subject property along W. 5th St. 500 W 4th St. (Freestanding Retail): This represents the proposed construction of a 3,800 SF free standing retail building to be developed near the downtown area of San Bernardino. There is no established delivery date or construction date. This is one block southeast of the subject property and on the same block as Regal Cinemas. The subject’s high depth to frontage ratio, exposure from N. H St. and motel buildings nearby support hospitality developments, such as motel or hotel use, for the site’s highest and best use as-vacant. In addition, should hospitality use be over-built in the area an alternative highest and best use for the site would be restaurant space that would complement nearby motel buildings. Accordingly, we conclude that a hospitality or restaurant development at the subject is financially feasible. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of hospitality or retail uses. SITE 2 AS-VACANT ANALYSIS Legal Factors The legal uses are the same as previously written in Site 1. Physical & Locational Factors Regarding physical characteristics, the subject site is irregular in shape and has level topography with good access and good exposure. The subject site has frontage on the east side of N. H St., the north side of W. 5th St. and the west side of N. G St. The N. H St. and N. G. St. are secondary arterials while W. 5th St. is primary arterial. The subject also has some exposure from the south side of Spruce St., a local, or connector street. The site also has access to I-215. The immediate area is developed with residential, retail, and motel use along nearby arterials. Specifically, there are motels to the north and the In-N-Out Of the outright permitted uses, physical and locational features best support a neighborhood center, large discount store, service station, and/or buffet style restaurant development for the site’s highest and best use as-vacant. Feasibility Factors The same feasibility factors apply as for Site 1. The subject’s good exposure (a full city block of frontage along a major arterial. The subject’s larger size suggests a large retail strip center, discount store or a buffet-style restaurant, along with two corner pad sites. We note that there are neighborhood centers two blocks south of the subject, which are occupied by long term food and discount stores, such as Food 4 Less and Ross Dress For Less, which are reportedly doing well, according to property managers. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of a single-or multi-tenant retail building and two pad buildings on the hard corners. 17.d Packet Pg. 575 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) HIGHEST & BEST USE ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 39 SITE 3 AS-VACANT ANALYSIS Legal Factors The legal uses are the same as previously written in Site 1. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular and has level topography with good access and good exposure. The subject site has frontage at the northeast corner of W. 5th St. and N. G St. The site has good exposure from both arterials. The immediate area is developed with commercial buildings to the east residential to the north and vacant land (other portions of the subject to the west and south. Of the outright permitted uses, physical and locational features best support a service station and/or convenience store for the site’s highest and best use as-vacant. Feasibility Factors The same feasibility factors apply as for Site 1. The maximally productive use is a service station and/or convenience store. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of a service station and/or a convenience store. SITE 4 AS-VACANT ANALYSIS Legal Factors The legal uses are the same as previously written in Site 1. Physical & Locational Factors Regarding physical characteristics, the subject site is rectangular and has level topography with good access and good exposure. The subject site has frontage at the southeast corner of W. 5th St. and N. G St. The site has good exposure from both arterials. The immediate area is developed with government offices to the south, commercial uses to the east, with vacant land (other portions of the subject) to the west and north. Of the outright permitted uses, physical and locational features best support a strip center or convenience store for the site’s highest and best use as-vacant. Feasibility Factors The same feasibility factors apply as for Site 1. The subject site has frontage at the southeast corner of W. 5th St. and N. G St. The site has good exposure from both arterials and access to I-215. Based on this and considering the size, we conclude that a strip center or a convenience store development at the subject is financially feasible. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be development of a retail strip center or a convenience store. 17.d Packet Pg. 576 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) HIGHEST & BEST USE ANALYSIS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 40 SITE 5 AS-VACANT ANALYSIS Legal Factors The legal uses are the same as previously written in Site 1. Physical & Locational Factors The same feasibility factors apply as for Site 1. The site has good exposure at the southwest corner of W. 5th St. and N. G St. with easy access to I-215. However, the site has a high depth to frontage ratio on a portion of the property that may limit development choices. These physical and location factors support an automotive carwash or service station provider developments, as the site’s highest and best use as-vacant. In addition, should a service station or automotive use not be feasible, an alternative highest and best use for the subject might be a drive thru restaurant that could be complement the In-N-Out directly west of the site. Accordingly, I conclude that an automotive use or drive-thru restaurant development at the subject is financially feasible. Feasibility Factors The same feasibility factors apply as for Site 1. Taking into account the subject’s favorable corner location and interior parcel with a high depth to frontage ratio, we conclude the maximally productive use would be a service station or convenience store on the hard corner and another commercial use on the remainder of the property. As-Vacant Conclusion Based on the previous discussion, the subject’s highest and best use as-vacant is concluded to be commercial development in the manner described above. 17.d Packet Pg. 577 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 41 INTRODUCTION The following presentation of the appraisal process deals directly with the valuation of the subject property. The As-Is Market Value of the subject’s fee simple interest is estimated using the Sales Comparison Approach, which is recognized as the standard appraisal technique for commercial land. The Cost and Income Capitalization Approaches are not applicable when valuing unimproved commercial land and are therefore excluded. Their exclusion is not detrimental to the reliability or credibility of the final value conclusion. We have segmented the valuation into seven separate values in this report. SALES COMPARISON APPROACH The Sales Comparison Approach is based on the principle of substitution, which asserts that no one would pay more for a property than the value of similar properties in the market. This approach analyzes comparable sales by applying transactional and property adjustments in order to bracket the subject property on an appropriate unit value comparison. The sales comparison approach is applicable when sufficient data on recent market transactions is available. Alternatively, this approach may offer limited reliability because many properties have unique characteristics that cannot be accounted for in the adjustment process. LAND VALUATION We have opined five individual values for the parcels of land that are contiguous sites. The final two values are the aggregate retail value that is the sum of all five sites valuations and a bulk value. We have provided two separate Land Sale Comparable charts and based our values of Sites 1 and 5 on the first set of Land Sale Comparables. The second set of Land Sale Comparables was used to base our values of Sites 2, 3, and 4. UNIT OF COMPARISON The most relevant unit of comparison is the price per square foot. This indicator best reflects the analysis used by buyers and sellers in this market for land with similar utility and zoning in this marketplace. COMPARABLE SELECTION A thorough search was made for similar land sales in terms of proximity to the subject, size, location, development potential, and date of sale. In selecting comparables, emphasis was placed on confirming recent sales of commercial sites that are similar to the subject property in terms of location and physical characteristics. Overall, the sales selected represent the best comparables available for this analysis. ADJUSTMENT PROCESS Quantitative adjustments are made to the comparable sales. The following adjustments or general market trends were considered for the basis of valuation. Transactional Adjustments Dollar adjustments to the comparable sales were considered and made when warranted for transactional adjustments in the sequence shown below: Property Rights Transferred The valuation of the subject site was completed on a fee simple basis. If warranted, leased fee, leasehold and/or partial interest land sales were adjusted accordingly. Financing Terms The subject site was valued on a cash equivalent basis. Adjustments were made to the comparables involving financing terms atypical of the marketplace. Conditions of Sale This adjustment accounts for extraordinary motivation on the part of the buyer or seller often associated with distressed sales and/or assemblages. 17.d Packet Pg. 578 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 42 Expenditures After Purchase Adjustments were applied if site conditions warranted expenditures on the part of the buyer to create a buildable site. Examples include costs for razing pre- existing structures, general site clearing and/or mitigation of environmental issues. Market Conditions Market conditions adjustments were based on a review of historical sale data, market participant interviews and review of current versus historical pricing. Based on our research, the following table summarizes the market conditions adjustment applied in this analysis. MARKET CONDITIONS ADJUSTMENT Per Year As Of March 2019 (As-Is)3% The analysis applies an upward market conditions adjustment of 3% annually reflecting the conditions between the oldest comparable sale date up through the effective valuation date. Property Adjustments Quantitative percentage adjustments are also made for location and physical characteristics such as size, shape, access, exposure, topography, zoning and overall utility. Where possible the adjustments applied are based on paired data or other statistical analysis. For example, location adjustments are based primarily on review of land values in the market areas for the comparables relative to the subject. It should be stressed that the adjustments are subjective in nature and are meant to illustrate our logic in deriving a value opinion for the subject site. LAND VALUATION PRESENTATION SITES 1 AND 5 The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. We grouped both sites together due to their high depth to frontage ratio. LAND SALES SUMMATION TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address 745 W. Spruce St., W. 5th St., N. H St., & N. G. St. 1500 W. Highland Ave. 7775 Sierra Ave.781 E. Santa Fe St. 108 N. Waterman Ave. 2010 W. Foothill Blvd. 1077 E. Baseline St. City San Bernardino San Bernardino Fontana San Bernardino San Bernardino San Bernardino San Bernardino State CA CA CA CA CA CA CA Zip 92410 92411 92336 92408 92410 92410 92410 County San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Los Angeles APN Multiple 0148-174-13 0190-171-69, 71, 70 0280-073-08 0135-302-43 0269-291-06, 07, 09 0278-041-22, 23, 41, and 44 PHYSICAL INFORMATION SF 56,627 124,582 123,275 30,840 24,951 58,806 118,919 Shape Irregular Rectangular Rectangular Irregular Rectangular Irregular Irregular Zoning CR-2 CG1 C1 C1 C1 CH CH & RM Topography Level Level Level Level Level Level Level SALE INFORMATION Date 2/11/2019 1/30/2019 5/15/2018 10/13/2017 8/3/2017 Status Listing Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $750,000 $850,000 $164,000 $150,000 $190,000 $345,000 $/SF Land $6.02 $6.90 $5.32 $6.01 $3.23 $2.90 17.d Packet Pg. 579 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 43 LAND SALES LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/SF SUBJECT -745 W. Spruce St., W. 5th St., N. H St., & N. G. St. , San Bernardino, CA No. 1 2.3 Miles 1500 W. Highland Ave., San Bernardino, CA 3/4/2019 2.9 124,582 $6.02 No. 2 7.8 Miles 7775 Sierra Ave., Fontana, CA 2/11/2019 2.8 123,275 $6.90 No. 3 2.2 Miles 781 E. Santa Fe St., San Bernardino, CA 1/30/2019 0.7 30,840 $5.32 No. 4 1.2 Miles 108 N. Waterman Ave., San Bernardino, CA 5/15/2018 2.4 24,951 $6.01 No. 5 1.9 Miles 2010 W. Foothill Blvd., San Bernardino, CA 10/13/2017 1.4 58,806 $3.23 No. 6 2.2 Miles 1077 E. Baseline St., San Bernardino, CA 8/3/2017 2.7 118,919 $2.90 17.d Packet Pg. 580 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 44 COMPARABLE 1 LOCATION INFORMATION Name Commercial Land Address 1500 W. Highland Ave. City, State, Zip Code San Bernardino, CA, 92411 County San Bernardino APN 0148-174-13 SALE INFORMATION Buyer Listing Seller SHELTON HENRY W Transaction Date 03/4/2019 Transaction Status Listing Transaction Price $750,000 Analysis Price $750,000 Rights Transferred Fee Simple COMMERCIAL LAND Conditions of Sale Listing ANALYSIS INFORMATION PHYSICAL INFORMATION Price $/Acre $/SF Intended Use Commercial Gross $262,238 $6.02 Location Average Net $262,238 $6.02 Frontage Average CONFIRMATION Site Size Acres SF Name Ron Kemper Net 2.86 124,582 Company Kemper Realtors Gross 2.86 124,582 Source Seller's Broker Zoning CG1 Date / Phone Number 03/4/2019 +1 909 744 7504 Shape Rectangular REMARKS Topography Level Access Average Exposure Average This represents the listing of a commercial site as of March,2019 in the city of San Bernardino. The site consists of a single parcel - APN0148-174-13. The site totals 124,582 SF,or 2.86 acres. The site is zoned CG-1 for commercial uses and fronts a major arterial.It is rectangular shaped. The site was not entitled at the time of sale. The listing price was $750,000. 17.d Packet Pg. 581 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 45 COMPARABLE 2 LOCATION INFORMATION Name Commercial Land Address 7775 Sierra Ave. City, State, Zip Code Fontana, CA, 92336 County San Bernardino APN 0190-171-69, 71, 70 SALE INFORMATION Buyer Funline Inc. Seller Sedayesh LLC Transaction Date 02/11/2019 Transaction Status Recorded Transaction Price $850,000 Analysis Price $850,000 Recording Number 43825 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $300,353 $6.90 Intended Use Commercial Net $300,353 $6.90 Location Average CONFIRMATION Frontage Average Name Deanne Boublis Site Size Acres SF Company Korek Land Company Net 2.83 123,275 Source Seller's Broker Gross 2.83 123,275 Date / Phone Number 03/4/2019 +1 818 787 3077 Zoning C1 REMARKS Shape Rectangular Topography Level Access Average Exposure Fair/Average This represents the February 2019 sale of a commercial site located in the city of San Bernardino. The site consists of three contiguous parcels - APN 0190-171- 69, 70, and 71. The site totals 123,275 SF, or 2.83 acres. The site is zoned C-1 for commercial uses.It is rectangular shaped. The subject property was vacant land when sold. The site will be developed into commercial buildings. The site was not entitled at the time of sale. The purchase price was $850,000. 17.d Packet Pg. 582 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 46 COMPARABLE 3 LOCATION INFORMATION Name Commercial Land Address 781 E. Santa Fe St. City, State, Zip Code San Bernardino, CA, 92408 County San Bernardino APN 0280-073-08 SALE INFORMATION Buyer Ricardo/Hinojosa Seller Jerje & Eva Saliba Transaction Date 01/30/2019 Transaction Status Recorded Transaction Price $164,000 Analysis Price $164,000 Recording Number 31161 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $230,986 $5.32 Intended Use Commercial Net $230,986 $5.32 Location Average CONFIRMATION Frontage Average Name Bud Reynolds Site Size Acres SF Company Coldwell Banker Commercial Net 0.71 30,840 Source Offering Memorandum Gross 0.71 30,840 Date / Phone Number 03/5/2019 +1 909 980 6868 Zoning C1 REMARKS Shape Irregular Topography Level Access Average Exposure Good This represents the January 2019 sale of a commercial site, located in the southeasterly portion of San Bernardino. The site is zoned C1 for commercial uses.It is irregularly shaped. The site was not entitled at the time of sale. The purchase price was $164,000. The property is currently used as a construction yard. It is removed from a commercial district and adjacent to an industrial area. 17.d Packet Pg. 583 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 47 COMPARABLE 4 LOCATION INFORMATION Name Commercial Land Address 108 N. Waterman Ave. City, State, Zip Code San Bernardino, CA, 92410 County San Bernardino APN 0135-302-43 SALE INFORMATION Transaction Date 05/15/2018 Transaction Status Recorded Transaction Price $150,000 Analysis Price $150,000 Recording Number 176024 Rights Transferred Fee Simple Conditions of Sale Arms-Length COMMERCIAL LAND PHYSICAL INFORMATION ANALYSIS INFORMATION Intended Use Commercial Price $/Acre $/SF Location Average Gross $263,158 $6.01 Frontage Average Net $263,158 $6.01 Site Size Acres SF CONFIRMATION Net 0.57 24,951 Name Confidential Gross 0.57 24,951 Company Confidential Zoning C1 Source Knowledgeable Third Party Shape Rectangular Date / Phone Number 03/15/2019 Confidential Topography Level REMARKS Access Average Exposure Average This represents the May 2018 sale of a commercial site . The site consists of a single parcel parcels - APN0135-302-43. The site totals 24,951 SF,or 0.57 acres. The site is zoned C1 for commercial uses.It is rectangular shaped. The site was not entitled at the time of sale. The purchase price was $150,000. 17.d Packet Pg. 584 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 48 COMPARABLE 5 LOCATION INFORMATION Name Commercial Land Address 2010 W. Foothill Blvd. City, State, Zip Code San Bernardino, CA, 92410 County San Bernardino APN 0269-291-06, 07, 09 SALE INFORMATION Buyer Transportation Development LLC Seller Willemsen Ronald C Transaction Date 10/13/2017 Transaction Status Recorded Transaction Price $190,000 Analysis Price $190,000 Rights Transferred Fee Simple COMMERCIAL LAND Conditions of Sale Arms-Length ANALYSIS INFORMATION PHYSICAL INFORMATION Price $/Acre $/SF Intended Use Commercial Gross $140,741 $3.23 Location Average Net $140,741 $3.23 Frontage Average CONFIRMATION Site Size Acres SF Name John Morrissey Net 1.35 58,806 Company MGR Real Estate Gross 1.35 58,806 Source Offering Memorandum Zoning CH Date / Phone Number 03/5/2019 +1 909 608 2165 Shape Irregular REMARKS Topography Level Access Average Exposure Average This represents the October 2017 sale of a commercial site located in the city of San Bernardino. The site consists of three contiguous parcels - APN 0269-291- 06, 07,&09.The site totals 297,515 SF,or 6.83 acres. The site is zoned CH for commercial uses.It is irregularly shaped. The site was not entitled at the time of sale. The purchase price was $675,493. 17.d Packet Pg. 585 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 49 COMPARABLE 6 LOCATION INFORMATION Name Commercial Land Address 1077 E. Baseline St. City, State, Zip Code San Bernardino, CA, 92410 County Los Angeles APN 0278-041-22, 23, 41, and 44 SALE INFORMATION Buyer De Diocese of San Bernardino Land Seller Holland Dorothy G Trust Transaction Date 08/3/2017 Transaction Status Recorded Transaction Price $345,000 Analysis Price $345,000 Recording Number 317327 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $126,374 $2.90 Intended Use Commercial Net $126,374 $2.90 Location Average CONFIRMATION Frontage Average Name Tony Guglielmo Site Size Acres SF Company Allied Commercial Real Estate Net 2.73 118,919 Source Seller's Broker Gross 2.73 118,919 Date / Phone Number 03/4/2019 +1 909 786 4300 Zoning CH & RM REMARKS Shape Irregular Topography Level Access Average Exposure Average This represents the August 2017 sale of a commercial site located in the city of San Bernardino. The site consists of four contiguous parcels - APN0279-041-22, 23, 41, and 44.The site totals 118,919 SF,or 2.73 acres. The site is zoned CH & RM for commercial and residential uses.It is irregular shaped. The site was not entitled at the time of sale. The purchase price was $345,000. 17.d Packet Pg. 586 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 50 LAND SALES ANALYSIS – SITES 1 AND 5 Introduction This analysis pertains to Sites 1 and 5, which are similar in size and have shape configurations that result in higher than average frontage to depth ratios. The analysis commences with Site 1, with its location at the southeast corner of H Street and Spruce Street, a secondary arterial proximate to the 215 Freeway and a secondary street. We consider this a secondary retail location. The comparable land sales indicate an adjusted value range from $3.81 to $4.79/SF, with a median of $4.17/SF and an average of $4.11/SF. The range of total net adjustment applied to the comparables was from -40% to 31%. The level of total adjustment applied to the comparables is considered moderate for development land, an indication that the dataset is applicable to the subj ect and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs. LAND SALES ADJUSTMENT TABLE - SITE 1 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address 745 W. Spruce St., W. 5th St., N. 1500 W. Highland Ave. 7775 Sierra Ave.781 E. Santa Fe St.108 N. Waterman Ave. 2010 W. Foothill Blvd.1077 E. Baseline St. City San Bernardino San Bernardino Fontana San Bernardino San Bernardino San Bernardino San Bernardino APN Multiple 0148-174-13 0190-171-69, 71, 70 0280-073-08 0135-302-43 0269-291-06, 07, 09 0278-041-22, 23, 41, and 44 SF 42,689 124,582 123,275 30,840 24,951 58,806 118,919 Shape Irregular Rectangular Rectangular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Average Zoning CR-2 CG1 C1 C1 C1 CH CH & RM Entitled No No No No No No No SALE INFORMATION Date 2/11/2019 1/30/2019 5/15/2018 10/13/2017 8/3/2017 Status Listing Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $750,000 $850,000 $164,000 $150,000 $190,000 $345,000 Price/SF $6.02 $6.90 $5.32 $6.01 $3.23 $2.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0%0% Conditions of Sale -10%0%0%0%0%0% Financing 0%0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0%0% Market Conditions¹0%0%0%3%4%5% Subtotal Transactional Adj Price $5.42 $6.90 $5.32 $6.19 $3.36 $3.05 PROPERTY ADJUSTMENTS Location -5%-20%5%0%10%10% Size 10%10%-5%-10%0%10% Exposure -20%-20%0%-10%5%5% Access 0%0%0%0%0%0% Shape -10%-10%-10%-10%0%0% Zoning 0%0%0%0%0%0% Envrmtl Issues 0%0%0%0%0%0% Entitled 0%0%0%0%0%0% Subtotal Property Adjustment -25%-40%-10%-30%15%25% TOTAL ADJUSTED PRICE $4.07 $4.14 $4.79 $4.33 $3.86 $3.81 STATISTICS UNADJUSTED ADJUSTED LOW $2.90 $3.81 HIGH $6.90 $4.79 MEDIAN $5.67 $4.11 AVERAGE $5.06 $4.17 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 17.d Packet Pg. 587 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 51 Discussion of Adjustments The following adjustments were made: Conditions of Sale – A downward adjustment was made to Comparable 1 due to its status as a listing. Market Conditions – Upward adjustments were made to Comparables 4, 5, and 6 due to improvements in market conditions. Location – Downward adjustments were made to Comparables 1 and 2 for their superior neighborhoods. Upward adjustments were warranted for Comparables 3, 5 and 6 as their locations were removed from a commercial district. Size – Upward adjustments were made to Comparables 1, 2 and 6, as larger sites typically result in a lower $/SF. Downward adjustments were made to Comparables 3 and 4 as smaller sites typically result in a higher $/SF. Exposure – Downward adjustments were made to Comparables 1, 2 and 4, due to the higher traffic counts on primary arterials. Upward adjustments were applied to Comparables 5 and 6 for inferior exposure. Shape – Downward adjustments were made to Comparables 1 through 4 due to their generally rectangular shapes. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $3.81 to $4.79/SF, with a median of $4.17/SF and an average of $4.11/SF. Based on the results of the preceding analysis, Comparable 1 ($4.07/SF adjusted), Comparable 4 ($4.33/SF adjusted), and Comparable 5 ($3.86/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 4 and 5 establish the applicable value range, from $3.86 to $4.33/SF. Comparable 4 was adjusted for its superior exposure in that it has a wider street frontage, for shape as it has a lower frontage to depth ratio and for size as it is consistent with a retail pad site. Overall, this comparable is considered to be superior to the subject after adjustments. Comparable 5 has a very limited access and exposure from the east. It is has a relatively high frontage to depth ratio and its San Bernardino location is inferior to the subject. Overall, this comparable is considered to be inferior to the subject after adjustments. Comparable 1 is a listing and yet it given primary weight, due to its overall similarity to the subject. Its superior, rectangular shape is offset by its inferior, non-corner location. Further, its inferior, larger size and high frontage to depth ratio is offset by superior exposure along a primary thoroughfare. Overall, this comparable is considered to be similar to the subject after adjustments. These three comparables provide a relatively tight value range on a $/SF basis, with an average of $4.09/SF. Based on our analysis, we conclude to $4.15/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.d Packet Pg. 588 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 52 NOTES ON THE PRECEDING ADJUSTMENTS The net adjustment is calculated by diving the final by the analysis price and subtracting 1, which is the correct methodology. The variance between this figure and the sum of the transactional and property adjustments is correct because transactional adjustments are made against the sale price, while property adjustments are made against the transactional adjustment price. For example, Comparable 1 has a net adjustment of -32% ($4.07 ÷ $6.02)-1. This is different than the -35% (- 10% + -25%) addition that would be made if we sampling added the transactional and property adjustments. This is because the transactional adjustment is made against the sale price ($6.02), while the property adjustments are made against the subtotal transactional adjustment price ($5.42). The following table is taken from the adjustment grid on Page 50: This methodology is consistent with appraisal theory and has been used in the remainder of this valuation. CALCULATION OF LAND VALUE - SITE 1 ANALYSIS ADJUSTMENT NET OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %COMPARISON 1 $6.02 -10%$5.42 -25%$4.07 -32%PRIMARY 2 $6.90 0%$6.90 -40%$4.14 -40%SECONDARY 3 $5.32 0%$5.32 -10%$4.79 -10%SECONDARY 4 $6.01 3%$6.19 -30%$4.33 -28%PRIMARY 5 $3.23 4%$3.36 15%$3.86 20%PRIMARY 6 $2.90 5%$3.05 25%$3.81 31%SECONDARY LOW $3.81 AVERAGE $4.17 HIGH $4.79 MEDIAN $4.11 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 1 42,689 x $4.15 =$180,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.d Packet Pg. 589 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 53 Site 5 The analysis focuses on Site 5, with its location at the southwest corner of 5th Street and G Street, primary and secondary arterials, respectively. LAND SALES ADJUSTMENT TABLE - SITE 5 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 COMPARABLE 6 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address 745 W. Spruce St., W. 5th St., N. 1500 W. Highland Ave. 7775 Sierra Ave.781 E. Santa Fe St.108 N. Waterman Ave. 2010 W. Foothill Blvd.1077 E. Baseline St. City San Bernardino San Bernardino Fontana San Bernardino San Bernardino San Bernardino San Bernardino APN Multiple 0148-174-13 0190-171-69, 71, 70 0280-073-08 0135-302-43 0269-291-06, 07, 09 0278-041-22, 23, 41, and 44 SF 56,627 124,582 123,275 30,840 24,951 58,806 118,919 Shape Irregular Rectangular Rectangular Irregular Rectangular Irregular Irregular Site Utility Rating Average Average Average Average Average Average Average Zoning CR-2 CG1 C1 C1 C1 CH CH & RM Entitled No No No No No No No SALE INFORMATION Date 2/11/2019 1/30/2019 5/15/2018 10/13/2017 8/3/2017 Status Listing Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $750,000 $850,000 $164,000 $150,000 $190,000 $345,000 Price/SF $6.02 $6.90 $5.32 $6.01 $3.23 $2.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0%0% Conditions of Sale -10%0%0%0%0%0% Financing 0%0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0%0% Market Conditions¹0%0%0%3%4%5% Subtotal Transactional Adj Price $5.42 $6.90 $5.32 $6.19 $3.36 $3.05 PROPERTY ADJUSTMENTS Location -5%-20%5%0%10%10% Size 10%10%-5%-10%0%10% Exposure 10%10%20%10%30%30% Access 0%0%0%0%0%0% Shape -5%-10%0%0%10%10% Zoning 0%0%0%0%0%0% Envrmtl Issues 0%0%0%0%0%0% Entitled 0%0%0%0%0%0% Subtotal Property Adjustment 10%-10%20%0%50%60% TOTAL ADJUSTED PRICE $5.96 $6.21 $6.38 $6.19 $5.04 $4.88 STATISTICS UNADJUSTED ADJUSTED LOW $2.90 $4.88 HIGH $6.90 $6.38 MEDIAN $5.67 $6.08 AVERAGE $5.06 $5.78 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 The comparable land sales indicate an adjusted value range from $4.88 to $6.38/SF, with a median of $6.08/SF and an average of $5.78/SF. The range of total net adjustment applied to the comparab les was from -10% to 68%, with an average net adjustment across all comparables of 23%. The level of total adjustment applied to the comparables is considered moderate for development land, an indication that the dataset is applicable to the subject and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs. Discussion of Adjustments The following adjustments were made: Conditions of Sale – A downward adjustment was made to Comparable 1 due to its status as a listing. Market Conditions – Upward adjustments were made to Comparables 3, 4, 5, and 6 due to improvements in market conditions. 17.d Packet Pg. 590 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 54 Location – Downward adjustments were made to Comparables 1 and 2 for their superior neighborhoods. Upward adjustments were warranted for Comparables 3, 5 and 6 as their locations are removed from a commercial district. Size – Upward adjustments were made to Comparables 1, 2 and 6, as larger sites typically result in a lower $/SF. Downward adjustments were made to Comparables 3 and 4 as smaller sites typically result in a higher $/SF. Exposure – Upward adjustments were made to all comparables due to the lower traffic and non-corner locations, which have inferior visibility. Shape – Downward adjustments were made to Comparables 1 and 2, due to their generally rectangular shapes. Upward adjustments were made to Comparables 5 and 6. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $4.88 to $6.38/SF, with a median of $6.08/SF and an average of $5.78/SF. Based on the results of the preceding analysis, Comparable 2 ($6.21/SF adjusted), Comparable 3 ($6.38/SF adjusted) and Comparable 4 ($6.19/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 2, 3 and 4 establish the applicable value range, from $6.19 to $6.38/SF. As adjusted, these comparables are most similar to the subject. Comparable 2 was adjusted for its superior Fontana location and for its superior, rectangular shape. It also required adjustments for inferior (larger) size, which typically results in a lower $/SF, all other factors being equal, and for its inferior, non-corner exposure. Overall, this comparable is considered to be slightly inferior to the subject after adjustments. Comparable 3 was adjusted for its superior size, which typically results in a higher $/SF, all other factors being equal. It also required adjustments for inferior location in a more industrial location and inferior, non-corner exposure. Overall, this comparable is considered to be slightly superior to the subject after adjustments. Comparable 4 was adjusted for its superior size, which typically results in a higher $/SF, all other factors being equal. This adjustment is offset by its inferior, non-corner exposure. These adjustments effectively cancel out one another, resulting in no net adjustment. Overall, this comparable is considered to be slightly inferior to the subject after adjustments These three comparables provide a relatively tight value range on a $/SF basis, with an average of $6.26/SF. Based on our analysis, we conclude to $6.30/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.d Packet Pg. 591 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 55 CALCULATION OF LAND VALUE - SITE 5 ANALYSIS ADJUSTMENT NET OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %COMPARISON 1 $6.02 -10%$5.42 10%$5.96 -1%SECONDARY 2 $6.90 0%$6.90 -10%$6.21 -10%PRIMARY 3 $5.32 0%$5.32 20%$6.38 20%PRIMARY 4 $6.01 3%$6.19 0%$6.19 3%PRIMARY 5 $3.23 4%$3.36 50%$5.04 56%SECONDARY 6 $2.90 5%$3.05 60%$4.88 68%SECONDARY LOW $4.88 AVERAGE $5.78 HIGH $6.38 MEDIAN $6.08 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 5 54,450 x $6.30 =$340,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.d Packet Pg. 592 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 56 LAND VALUATION TWO PRESENTATION – SITES 2, 3, AND 4 The following Land Sales Summation Table, Location Map and datasheets summarize the sales data used in this second land sales valuation analysis. Following these items, the comparable land sales are adjusted for applicable elements of comparison and the opinion of site value is concluded. We grouped all three sites due to their similar qualities of location on a primary corridor, good frontage to depth ratio, and easy access to the I- 215. LAND SALES SUMMATION TABLE COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address N/s 5th St. Between G and H Streets 1400 W. Baseline Rd. 108 E. 3rd St.108 N. Waterman Ave. 3003 N. E. St.7775 Sierra Ave. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Fontana Zip 92410 92411 92410 92410 92405 92336 County San Bernardino San Bernardino San Bernardino San Bernardino Los Angeles San Bernardino APN Multiple 0143-181-56 0135-181-58 0135-302-43 0152-193-29 0190-171-69, 71, 70 PHYSICAL INFORMATION Acres 2.47 0.57 0.32 0.57 0.41 2.83 SF 107,593 24,829 13,752 24,951 17,677 123,275 Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Zoning CR-2 CG1 C1 C1 CR1 C1 Entitled No No No No No No SALE INFORMATION Date 2/8/2019 1/17/2019 5/15/2018 12/19/2017 2/11/2019 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Transaction Price $230,000 $190,000 $150,000 $250,000 $850,000 $/SF Land $9.26 $13.82 $6.01 $14.14 $6.90 17.d Packet Pg. 593 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 57 LAND SALES TWO LOCATION MAP COMPARABLE KEY COMP DISTANCE ADDRESS SALE DATE ACRES SF $/SF SUBJECT -745 W. Spruce St., W. 5th St., N. H St., & N. G. St. , San Bernardino, CA No. 1 1.4 Miles 1400 W. Baseline Rd., San Bernardino, CA 2/8/2019 0.6 24,829 $9.26 No. 2 0.8 Miles 108 E. 3rd St., San Bernardino, CA 1/17/2019 0.3 13,752 $13.82 No. 3 1.2 Miles 108 N. Waterman Ave., San Bernardino, CA 5/15/2018 0.6 24,951 $6.01 No. 4 2.7 Miles 3003 N. E. St., San Bernardino, CA 12/19/2017 0.4 17,677 $14.14 No. 5 7.8 Miles 7775 Sierra Ave., Fontana, CA 2/11/2019 2.8 123,275 $6.90 17.d Packet Pg. 594 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 58 COMPARABLE 1 LOCATION INFORMATION Name Commercial Land Address 1400 W. Baseline Rd. City, State, Zip Code San Bernardino, CA, 92411 County San Bernardino APN 0143-181-56 SALE INFORMATION Buyer Alferedo Torres Seller Sevilla Gilbert Z Trust Transaction Date 02/8/2019 Transaction Status Recorded Transaction Price $230,000 Analysis Price $230,000 Recording Number 43204 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $403,509 $9.26 Intended Use Commercial Net $403,509 $9.26 Location Average CONFIRMATION Frontage Average Name Robert Villa Site Size Acres SF Company GMAC Park Place Realty Net 0.57 24,829 Source Knowledgeable Third Party Gross 0.57 24,829 Date / Phone Number 03/15/2019 +1 909 980 2244 Zoning CG1 REMARKS Shape Rectangular Topography Level Access Average Exposure Average This represents the February 2019 sale of a commercial site located in the city of San Bernardino. The site consists of a single parcel - APN0143-181-56. The site totals 24,829 SF,or 0.57 acres. The site is zoned CG1 for commercial uses.It is rectangular shaped. The site was not entitled at the time of sale. The purchase price was $230,000. 17.d Packet Pg. 595 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 59 COMPARABLE 2 LOCATION INFORMATION Name Commercial Land Address 108 E. 3rd St. City, State, Zip Code San Bernardino, CA, 92410 County San Bernardino APN 0135-181-58 SALE INFORMATION Buyer Liang S & Lin 2006 F & Tr Seller Singer Susan L H Transaction Date 01/17/2019 Transaction Status Recorded Transaction Price $190,000 Analysis Price $190,000 Recording Number 147092 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $593,750 $13.82 Intended Use Commercial Net $593,750 $13.82 Location Average CONFIRMATION Frontage Average Name Violet Sinclaire Site Size Acres SF Company Marker SF Net 0.32 13,752 Source Knowledgeable Third Party Gross 0.32 13,752 Date / Phone Number 01/17/2019 +1 415 713 9420 Zoning C1 REMARKS Shape Rectangular Topography Level Access Average Exposure Average This represents the January 2019 sale of a commercial site located in the city of San Bernardino. The site consists of a single parcel, two contiguous parcels - APN 0135-181-58. The site totals 13,752 SF,or 0.32 acres. The site is zoned C1 for commercial uses.It is rectangular shaped. The site was not entitled at the time of sale. The purchase price was $190,000. The property is proximate to San Bernardino Superior Court in a more revitalized area of downtown. 17.d Packet Pg. 596 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 60 COMPARABLE 3 LOCATION INFORMATION Name Commercial Land Address 108 N. Waterman Ave. City, State, Zip Code San Bernardino, CA, 92410 County San Bernardino APN 0135-302-43 SALE INFORMATION Transaction Date 05/15/2018 Transaction Status Recorded Transaction Price $150,000 Analysis Price $150,000 Recording Number 176024 Rights Transferred Fee Simple Conditions of Sale Arms-Length COMMERCIAL LAND PHYSICAL INFORMATION ANALYSIS INFORMATION Intended Use Commercial Price $/Acre $/SF Location Average Gross $263,158 $6.01 Frontage Average Net $263,158 $6.01 Site Size Acres SF CONFIRMATION Net 0.57 24,951 Name Confidential Gross 0.57 24,951 Company Confidential Zoning C1 Source Knowledgeable Third Party Shape Rectangular Date / Phone Number 03/15/2019 Confidential Topography Level REMARKS Access Average Exposure Fair This represents the May 2018 sale of a commercial site . The site consists of a single parcel parcels - APN0135-302-43. The site totals 24,951 SF,or 0.57 acres. The site is zoned C1 for commercial uses.It is rectangular shaped. The site was not entitled at the time of sale. The purchase price was $150,000. The site is on a secondary corner with limited visibility for northbound traffic. 17.d Packet Pg. 597 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 61 COMPARABLE 4 LOCATION INFORMATION Name Commercial Land Address 3003 N. E. St. City, State, Zip Code San Bernardino, CA, 92405 County Los Angeles APN 0152-193-29 SALE INFORMATION Buyer Yum Yum Donut Shops Inc Seller Schneider R/e Assoc Inc Transaction Date 12/19/2017 Transaction Status Recorded Transaction Price $250,000 Analysis Price $250,000 Recording Number 536259 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $609,756 $14.14 Intended Use Commercial Net $609,756 $14.14 Location Average CONFIRMATION Frontage Average Name Confidential Site Size Acres SF Company Confidential Net 0.41 17,677 Source Knowledgeable Third Party Gross 0.41 17,677 Date / Phone Number 03/15/2019 Confidential Zoning CR1 REMARKS Shape Rectangular Topography Flat Access Average Exposure Good This represents the December 2017 sale of a commercial site located in the city of San Bernardino. The site consists of, two contiguous parcels - APN0152-193-29, 30.The site totals 17,677 SF,or 0.41 acres. The site is zoned CR-1 for commercial uses.It is rectangular shaped and on a prime corner next to the I-210 Freeway. The site was not entitled at the time of sale. The purchase price was $250,000. 17.d Packet Pg. 598 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 62 COMPARABLE 5 LOCATION INFORMATION Name Commercial Land Address 7775 Sierra Ave. City, State, Zip Code Fontana, CA, 92336 County San Bernardino APN 0190-171-69, 71, 70 SALE INFORMATION Buyer Funline Inc. Seller Sedayesh LLC Transaction Date 02/11/2019 Transaction Status Recorded Transaction Price $850,000 Analysis Price $850,000 Recording Number 43825 COMMERCIAL LAND Rights Transferred Fee Simple ANALYSIS INFORMATION Conditions of Sale Arms-Length Price $/Acre $/SF PHYSICAL INFORMATION Gross $300,353 $6.90 Intended Use Commercial Net $300,353 $6.90 Location Average CONFIRMATION Frontage Average Name Deanne Boublis Site Size Acres SF Company Korek Land Company Net 2.83 123,275 Source Seller's Broker Gross 2.83 123,275 Date / Phone Number 03/4/2019 +1 818 787 3077 Zoning C1 REMARKS Shape Rectangular Topography Level Access Average Exposure Average This represents the February 2019 sale of a commercial site located in the city of San Bernardino. The site consists of three contiguous parcels - APN 0190-171- 69, 70, and 71. The site totals 123,275 SF, or 2.83 acres. The site is zoned C-1 for commercial uses.It is rectangular shaped. The subject property was vacant land when sold. The site will be developed into commercial buildings. The site was not entitled at the time of sale. The purchase price was $850,000. 17.d Packet Pg. 599 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 63 Site 2 This analysis focuses on Site 2, with its location along the north side of 5th St. with two hard corners at G and H streets. This is considered to be a primary retail location. LAND SALES ADJUSTMENT TABLE - SITE 2 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address N/s 5th St. Between G and H Streets 1400 W. Baseline Rd. 108 E. 3rd St.108 N. Waterman Ave. 3003 N. E. St.7775 Sierra Ave. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Fontana APN Multiple 0143-181-56 0135-181-58 0135-302-43 0152-193-29 0190-171-69, 71, 70Acres2.47 0.57 0.32 0.57 0.41 2.83 SF 107,593 24,829 13,752 24,951 17,677 123,275 Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Zoning CR-2 CG1 C1 C1 CR1 C1 Entitled No No No No No No SALE INFORMATION Date 2/8/2019 1/17/2019 5/15/2018 12/19/2017 2/11/2019 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $230,000 $190,000 $150,000 $250,000 $850,000 Price/SF $9.26 $13.82 $6.01 $14.14 $6.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Financing 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%1%3%4%0% Subtotal Transactional Adj Price $9.26 $13.96 $6.19 $14.71 $6.90 PROPERTY ADJUSTMENTS Location 0%-10%0%-20%-20% Size -20%-30%-20%-25%0% Exposure 10%0%20%0%10% Access 0%0%10%0%10% Shape 0%0%0%0%0% Zoning 0%0%0%0%0% Topography 0%0%0%0%0% Easements 0%0%0%0%0% Envrmtl Issues 0%0%0%0%0% Entitled 0%0%0%0%0% Subtotal Property Adjustment -10%-40%10%-45%0% TOTAL ADJUSTED PRICE $8.33 $8.38 $6.81 $8.09 $6.90 STATISTICS UNADJUSTED ADJUSTED LOW $6.01 $6.81 HIGH $14.14 $8.38 MEDIAN $9.26 $8.09 AVERAGE $10.03 $7.70 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 The comparable land sales indicate an adjusted value range from $6.81 to $8.38/SF, with a median of $8.09/SF and an average of $7.70/SF. The range of total net adjustment applied to the comparables was from -43% to 13%, with an average net adjustment across all comparables of -16%. The level of total adjustment applied to the comparables is considered minimal for development land, an indication that the dataset is applicable to the subject and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs. 17.d Packet Pg. 600 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 64 Discussion of Adjustments The following adjustments were made: Market Conditions – Upward adjustments were made to Comparables 2, 3 and 4 due to improvements in market conditions. Location – Downward adjustments were made to Comparables 2, 4 and 5 for their superior neighborhoods. Size – Downward adjustments were made to Comparables 1 through 4 as smaller sites typically result in a higher $/SF. Exposure – Upward adjustments were made to Comparables 1, 3 and 5, due to the lower traffic and non- corner locations. Access – Upward adjustments were made to Comparables 3 and 5, due fewer points of access per SF of site size. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $6.81 to $8.38/SF, with a median of $8.09/SF and an average of $7.70/SF. Based on the results of the preceding analysis, Comparable 3 ($6.81/SF adjusted), Comparable 4 ($8.09/SF adjusted) and Comparable 5 ($6.90/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 3, 4 and 5 establish the applicable value range, from $6.81 to $8.09/SF. As adjusted, these comparables are most similar to the subject. Comparable 3 was adjusted for its superior size, which typically results in a higher $/SF, all other factors being equal. This adjustment is offset by its inferior, non-corner exposure and for inferior access as the subject extends along an entire city block, allowing for multiple points of access. Overall, this comparable is considered to be inferior to the subject after adjustments. Comparable 4 was adjusted for its superior location proximate to the Superior Court Building and superior size, which typically results in a higher $/SF, all other factors being equal. Overall, this comparable is considered to be superior inferior to the subject after adjustments. Comparable 5 was adjusted for its superior Fontana location. This adjustment is offset by its inferior, non- corner exposure and for inferior access as the subject extends along an entire city block, allowing for multiple points of access. Overall, this comparable is considered to be inferior to the subject after adjustments. These three comparables provide a relatively tight value range on a $/SF basis, with an average of $7.27/SF. Based on our analysis, we conclude to $7.50/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.d Packet Pg. 601 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 65 CALCULATION OF LAND VALUE - SITE 2 ANALYSIS ADJUSTMENT NET OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %COMPARISON 1 $9.26 0%$9.26 -10%$8.33 -10%SECONDARY 2 $13.82 1%$13.96 -40%$8.38 -39%SECONDARY 3 $6.01 3%$6.19 10%$6.81 13%PRIMARY 4 $14.14 4%$14.71 -45%$8.09 -43%PRIMARY 5 $6.90 0%$6.90 0%$6.90 0%PRIMARY LOW $6.81 AVERAGE $7.70 HIGH $8.38 MEDIAN $8.09 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 2 107,593 x $7.50 =$810,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.d Packet Pg. 602 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 66 Site 3 This analysis focuses on Site 2, with its location at the northeast corner of 5th and G and H streets. The comparable land sales indicate an adjusted value range from $8.67 to $11.87/SF, with a median of $10.19/SF and an average of $10.29/SF. The range of total net adjustment applied to the comparables was from -17% to 44%. The level of total adjustment applied to the comparables is considered moderate for LAND SALES ADJUSTMENT TABLE - SITE 3 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address NEC 5th St. & G St. 1400 W. Baseline Rd. 108 E. 3rd St.108 N. Waterman Ave. 3003 N. E. St.7775 Sierra Ave. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Fontana APN Multiple 0143-181-56 0135-181-58 0135-302-43 0152-193-29 0190-171-69, 71, 70 Acres 0.52 0.57 0.32 0.57 0.41 2.83 SF 22,651 24,829 13,752 24,951 17,677 123,275 Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Zoning CR-2 CG1 C1 C1 CR1 C1 Entitled No No No No No No SALE INFORMATION Date 2/8/2019 1/17/2019 5/15/2018 12/19/2017 2/11/2019 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $230,000 $190,000 $150,000 $250,000 $850,000 Price/SF $9.26 $13.82 $6.01 $14.14 $6.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Financing 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%1%3%4%0% Subtotal Transactional Adj Price $9.26 $13.96 $6.19 $14.71 $6.90 PROPERTY ADJUSTMENTS Location 0%-10%0%-20%-20% Size 0%-5%0%0%30% Exposure 10%0%30%0%10% Access 0%0%10%0%10% Shape 0%0%0%0%0% Zoning 0%0%0%0%0% Topography 0%0%0%0%0% Easements 0%0%0%0%0% Envrmtl Issues 0%0%0%0%0% Entitled 0%0%0%0%0% Subtotal Property Adjustment 10%-15%40%-20%30% TOTAL ADJUSTED PRICE $10.19 $11.87 $8.67 $11.77 $8.97 STATISTICS UNADJUSTED ADJUSTED LOW $6.01 $8.67 HIGH $14.14 $11.87 MEDIAN $9.26 $10.19 AVERAGE $10.03 $10.29 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 17.d Packet Pg. 603 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 67 development land, an indication that the dataset is applicable to the subject and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs. Discussion of Adjustments The following adjustments were made: Market Conditions – Upward adjustments were made to Comparables 2, 3 and 4 due to improvements in market conditions. Location – Downward adjustments were made to Comparables 2, 4 and 5 for their superior neighborhoods. Size – A downward adjustment was made to Comparables 2 as smaller sites typically result in a higher $/SF. A considerably higher upward adjustment was made to Comparable 5 as larger sites typically result in a lower $/SF. Exposure – Upward adjustments were made to Comparables 1, 3 and 5, due to the lower traffic and non- corner locations. Access – Upward adjustments were made to Comparables 3 and 5, due fewer points of access per SF of site size. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $8.67 to $11.87/SF, with a median of $10.19/SF and an average of $10.29/SF. Based on the results of the preceding analysis, Comparable 1 ($10.19/SF adjusted), Comparable 2 ($11.87/SF adjusted) and Comparable 4 ($11.77/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 1, 2 and 4 establish the applicable value range, from $10.19 to $11.87/SF. Comparable 1 was adjusted for its inferior exposure based on traffic count. Overall, this comparable is considered to be inferior to the subject after adjustments. Comparable 2 was adjusted for its superior location proximate to the Superior Court building and for superior (smaller) size. Overall, this comparable is considered to be superior to the subject after adjustments. Comparable 4 was adjusted for its superior location north of I-210. Overall, this comparable is considered to be superior to the subject after adjustments. These three comparables provide a relatively tight value range on a $/SF basis, with an average of $11.28/SF. Based on our analysis, we conclude to $11.50/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.d Packet Pg. 604 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 68 CALCULATION OF LAND VALUE - SITE 3 ANALYSIS ADJUSTMENT NET OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %COMPARISON 1 $9.26 0%$9.26 10%$10.19 10%PRIMARY 2 $13.82 1%$13.96 -15%$11.87 -14%PRIMARY 3 $6.01 3%$6.19 40%$8.67 44%SECONDARY 4 $14.14 4%$14.71 -20%$11.77 -17%PRIMARY 5 $6.90 0%$6.90 30%$8.97 30%SECONDARY LOW $8.67 AVERAGE $10.29 HIGH $11.87 MEDIAN $10.19 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 3 22,651 x $11.50 =$260,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.d Packet Pg. 605 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 69 Site 4 This analysis focuses on Site 4, with its location at the southeast corner of 5th & G streets. The comparable land sales indicate an adjusted value range from $7.94 to $9.77/SF, with a median of $9.26/SF and an average of $8.92/SF. The range of total net adjustment applied to the comparables was from -32% to 34%. The level of total adjustment applied to the comparables is considered moderate for LAND SALES ADJUSTMENT TABLE - SITE 4 COMPARABLE SUBJECT COMPARABLE 1 COMPARABLE 2 COMPARABLE 3 COMPARABLE 4 COMPARABLE 5 Name 5th Street Gateway Project Commercial Land Commercial Land Commercial Land Commercial Land Commercial Land Address SEC 5th St. & G St. 1400 W. Baseline Rd. 108 E. 3rd St.108 N. Waterman Ave. 3003 N. E. St.7775 Sierra Ave. City San Bernardino San Bernardino San Bernardino San Bernardino San Bernardino Fontana APN Multiple 0143-181-56 0135-181-58 0135-302-43 0152-193-29 0190-171-69, 71, 70 Acres 1.25 0.57 0.32 0.57 0.41 2.83 SF 54,450 24,829 13,752 24,951 17,677 123,275 Shape Irregular Rectangular Rectangular Rectangular Rectangular Rectangular Zoning CR-2 CG1 C1 C1 CR1 C1 Entitled No No No No No No SALE INFORMATION Date 2/8/2019 1/17/2019 5/15/2018 12/19/2017 2/11/2019 Status Recorded Recorded Recorded Recorded Recorded Rights Transferred Fee Simple Fee Simple Fee Simple Fee Simple Fee Simple Analysis Price $230,000 $190,000 $150,000 $250,000 $850,000 Price/SF $9.26 $13.82 $6.01 $14.14 $6.90 TRANSACTIONAL ADJUSTMENTS Property Rights 0%0%0%0%0% Conditions of Sale 0%0%0%0%0% Financing 0%0%0%0%0% Expenditures After the Sale 0%0%0%0%0% Market Conditions¹0%1%3%4%0% Subtotal Transactional Adj Price $9.26 $13.96 $6.19 $14.71 $6.90 PROPERTY ADJUSTMENTS Location 0%-10%0%-20%-20% Size -10%-20%-10%-15%15% Exposure 10%0%30%0%10% Access 0%0%10%0%10% Shape 0%0%0%0%0% Zoning 0%0%0%0%0% Topography 0%0%0%0%0% Easements 0%0%0%0%0% Envrmtl Issues 0%0%0%0%0% Entitled 0%0%0%0%0% Subtotal Property Adjustment 0%-30%30%-35%15% TOTAL ADJUSTED PRICE $9.26 $9.77 $8.05 $9.56 $7.94 STATISTICS UNADJUSTED ADJUSTED LOW $6.01 $7.94 HIGH $14.14 $9.77 MEDIAN $9.26 $9.26 AVERAGE $10.03 $8.92 ¹ Market Conditions Adjustment: 3% Date of Value (for adjustment calculations): 3/20/19 17.d Packet Pg. 606 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 70 development land, an indication that the dataset is applicable to the subject and increases the credibility of the analysis. The adjustment process for each comparable land sale is discussed in the following paragraphs.. Discussion of Adjustments The following adjustments were made: Market Conditions – Upward adjustments were made to Comparables 2, 3 and 4, due to improvements in market conditions. Location – Downward adjustments were made to Comparables 2, 4 and 5 for their superior neighborhoods. Size – Downward adjustments were made to Comparables 1 through 4 as smaller sites typically result in a higher $/SF. An upward adjustment was made to Comparable 5 as larger sites typically result in a lower $/SF. Exposure – Upward adjustments were made to Comparables 1, 3 and 5, due to the lower traffic and non- corner locations. Access – Upward adjustments were made to Comparables 3 and 5, due to inferior access on a SF basis. CALCULATION OF VALUE The comparable land sales indicate an adjusted value range from $7.94 to $9.77/SF, with a median of $9.26/SF and an average of $8.92/SF. Based on the results of the pr eceding analysis, Comparable 1 ($9.26/SF adjusted), Comparable 2 ($9.77/SF adjusted) and Comparable 4 ($9.56/SF adjusted) are given primary consideration for the subject’s opinion of land value. Comparables 1, 2 and 4 establish the applicable value range, from $9.26 to $9.77/SF. All have similar sizes to subject and generally comparable corner location exposure.. Comparable 1 was adjusted for its superior (smaller) size. It was offset by adjustment for its inferior exposure due to lower traffic count, resulting in a zero net adjustment. Overall, this comparable is considered to be slightly inferior to the subject after adjustments. Comparable 2 was adjusted for its superior location proximate to the Superior Court building and superior (smaller) size. Overall, this comparable is considered to be superior to the subject after adjustments. Comparable 4 was adjusted for its superior location proximate to the Superior Court building and superior (smaller) size. Overall, this comparable is considered to be slightly superior to the subject after adjustments. These three comparables provide a relatively tight value range on a $/SF basis, with an average of $9.53/SF. Based on our analysis, we conclude to $9.60/SF, leaning towards the upper end of the range due to the subject’s location proximate to a freeway and its position within a redevelopment growth corridor. This conclusion is based upon our appraisal experience and appears reasonable. The results of this analysis are shown in the following table. 17.d Packet Pg. 607 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 71 CALCULATION OF LAND VALUE - SITE 4 ANALYSIS ADJUSTMENT NET GROSS OVERALL COMP PRICE TRANSACTIONAL¹ADJUSTED PROPERTY²FINAL ADJ %ADJ %COMPARISON 1 $9.26 0%$9.26 0%$9.26 0%20%PRIMARY 2 $13.82 1%$13.96 -30%$9.77 -29%31%PRIMARY 3 $6.01 3%$6.19 30%$8.05 34%53%SECONDARY 4 $14.14 4%$14.71 -35%$9.56 -32%39%PRIMARY 5 $6.90 0%$6.90 15%$7.94 15%55%SECONDARY LOW $7.94 AVERAGE $8.92 HIGH $9.77 MEDIAN $9.26 COMPONENT SUBJECT SF $/SF CONCLUSION VALUE Site 4 54,450 x $9.60 =$520,000 ¹Cumulative ²Additive Rounded to nearest $10,000 17.d Packet Pg. 608 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 72 AGGREGATE RETAIL VALUE The aggregate retail value is the sum of all five sites as marketed and sold separately, as shown in the table below: AGGREGATE RETAIL VALUE NAME ADDRESS VALUE Site 1 $180,000 Site 2 $810,000 Site 3 $260,000 Site 4 $520,000 Site 5 $340,000 AGGREGATE RETAIL VALUE $2,110,000 NEC H St. & Spuce St. N/s 5th St. between G & H Streets NEC 5th St. & G St. SEC 5th St. & G St. SWC 5th St. & G St. BULK VALUE A Bulk Value assumes that all five development sites are sold to a single buyer. This value is typically 10% to 30% lower than the aggregate retail value. Typically, the lower end of the range applies when economic conditions are good, while the upper end of the range applies when economic conditions are unfavorable. The Inland Empire overall is rapidly expanding its retail base, as can be seen in City of San Bernardino. However, the subject sites are located in a redevelopment area, which increases risk. Accounting for these factors, we conclude to the middle of the range, or 20%. This discount is considered reasonable given the larger aggregate size and higher total capital investment and likely longer development time line associated with a larger project. BULK VALUE CATEGORY VALUE Aggregate Retail Value $2,110,000 20% Bulk Discount $422,000 Bulk Discount Value $1,690,000 17.d Packet Pg. 609 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) LAND VALUATION EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 73 LAND VALUE CONCLUSIONS The Sales Comparison Approach was utilized for valuation of the subject site, as it best reflects the decision- making of buyers and sellers of development land in the local marketplace. The purpose of this appraisal is to develop an opinion of the As-Is Market Value of the subject property’s fee simple interest. The following table conveys the final opinion of market value of the subject property that is developed within this appraisal report: Our opinion of value reflects current conditions and the likely actions of market participants as of the date of value. It is based on the available information gathered and provided to us, as presented in this report, and does not predict future performance. Changing market or property conditions can and likely will have an effect on the subject's value. ANALYSIS OF VALUE CONCLUSIONS VALUATION INDICES AS-IS MARKET VALUE INTEREST APPRAISED FEE SIMPLE DATE OF VALUE ADDRESS SIZE $/SF MARCH 20, 2019 Site Value 1 NEC H St. & Spuce St.42,689 SF $4.15 $180,000 Site Value 2 N/s 5th St. between G & H Streets 107,593 SF $7.50 $810,000 Site Value 3 NEC 5th St. & G St.22,651 SF $11.50 $260,000 Site Value 4 SEC 5th St. & G St.54,450 SF $9.60 $520,000 Site Value 5 SWC 5th St. & G St.56,627 SF $6.30 $340,000 Aggregate Retail Value 284,010 $7.43/SF $2,110,000 Bulk Value (20% Discount)284,010 $5.95/SF $1,690,000 Exposure Time Six Months Marketing Period Six Months 17.d Packet Pg. 610 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) CERTIFICATION OF APPRAISAL TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 74 We certify that, to the best of our knowledge and belief: • The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions of the signers are limited only by the reported assumptions and limiting conditions, and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • The signers of this report has no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved. • David A. Williams, MAI has performed no services, as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. Casey Merrill, MAI, ASA, FRICS has performed no services, as an appraiser or in any other capacity regarding the property that is the subject of this report within the three-year period immediately preceding acceptance of this assignment. • The signers are not biased with respect to the property that is the subject of this report or to the parties involved with this assignment. • The engagement in this assignment was not contingent upon developing or reporting predetermined results. • The compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • The reported analysis, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice and the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. • Casey Merrill, MAI, ASA, FRICS did not inspect the property that is the subject of this report. David A. Williams, MAI inspected the property that is the subject of this report. Eric Allchorn inspected the property that is the subject of this report. • Eric Allchorn provided significant real property appraisal assistance to the appraisers signing the certification. Assistance included gathering, analyzing and reporting regional, local area, zoning, and tax information, confirming some of the comparable data, and assisting with portions of the valuation analysis. 17.d Packet Pg. 611 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) CERTIFICATION OF APPRAISAL EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 75 • The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. • As of the date of this report Casey Merrill, MAI, ASA, FRICS and David A. Williams, MAI completed the continuing education program for Designated Members of the Appraisal Institute. May 29, 2019 David A. Williams, MAI Valuation Services Director Certified General Real Estate Appraiser State of California License #AG035639 +1 213 417 3319 dave.a.williams@colliers.com Date May 29, 2019 Casey Merrill, MAI, ASA, FRICS Executive Managing Director | Southwest Region Certified General Real Estate Appraiser State of California License #AG003330 +1 213 417 3315 casey.merrill@colliers.com Date 17.d Packet Pg. 612 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ASSUMPTIONS & LIMITING CONDITIONS TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 76 This appraisal is subject to the following assumptions and limiting conditions: • The appraisers may or may not have been provided with a survey of the subject property. If further verification is required, a survey by a registered surveyor is advised. • We assume no responsibility for matters legal in character, nor do we render any opinion as to title, which is assumed to be marketable. All existing liens, encumbrances, and assessments have been disregarded, unless otherwise noted, and the property is appraised as though free and clear, under responsible ownership, and competent management. • The exhibits in this report are included to assist the reader in visualizing the property. We have made no survey of the property and assume no responsibility in connection with such matters. • Unless otherwise noted herein, it is assumed that there are no encroachments, zoning, or restrictive violations existing in the subject property. • The appraisers assume no responsibility for determining if the property requires environmental approval by the appropriate governing agencies, nor if it is in violation thereof, unless otherwise noted herein. • Information presented in this report has been obtained from reliable sources, and it is assumed that the information is accurate. • This report shall be used for its intended purpose only, and by the party to whom it is addressed. Possession of this report does not include the right of publication. • The appraisers may not be required to give testimony or to appear in court by reason of this appraisal, with reference to the property in question, unless prior arrangements have been made therefore. • The statements of value and all conclusions shall apply as of the dates shown herein. • There is no present or contemplated future interest in the property by the appraisers which is not specifically disclosed in this report. • Without the written consent or approval of the authors neither all, nor any part of, the contents of this report shall be conveyed to the public through advertising, public relations, news, sales, or other media. This applies particularly to value conclusions and to the identity of the appraisers and the firm with which the appraisers are connected. • This report must be used in its entirety. Reliance on any portion of the report independent of others, may lead the reader to erroneous conclusions regarding the property values. Unless approval is provided by the authors no portion of the report stands alone. • The valuation stated herein assumes professional management and operation of the buildings throughout the lifetime of the improvements, with an adequate maintenance and repair program. • The liability of Colliers International Valuation & Advisory Services, its principals, agents, and employees is limited to the client. Further, there is no accountability, obligation, or liability to any third party. If this report is placed in the hands of anyone other than the client, the client shall make such party aware of all limiting conditions and assumptions of the assignment and related discussions. The appraisers are in no way responsible for any costs incurred to discover or correct any deficiency in the property. • The appraisers are not qualified to detect the presence of toxic or hazardous substances or materials which may influence or be associated with the property or any adjacent properties, has made no investigation or analysis as to the presence of such materials, and expressly disclaims any duty to note the degree of fault. Colliers International Valuation & Advisory Services and its principals, agents, employees, shall not be liable for any costs, expenses, assessments, or penalties, or diminution in value, property 17.d Packet Pg. 613 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ASSUMPTIONS & LIMITING CONDITIONS EXECUTIVE SUMMARY CONTINUED LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 77 damage, or personal injury (including death) resulting from or otherwise attributable to toxic or hazardous substances or materials, including without limitation hazardous waste, asbestos material, formaldehyde, or any smoke, vapors, soot, fumes, acids, alkalis, toxic chemicals, liquids, solids or gasses, waste materials or other irritants, contaminants or pollutants. • The appraisers assume no responsibility for determining if the subject property complies with the Americans with Disabilities Act (ADA). Colliers International Valuation & Advisory Services, its principals, agents, and employees, shall not be liable for any costs, expenses, assessments, penalties or diminution in value resulting from non-compliance. This appraisal assumes that the subject meets an acceptable level of compliance with ADA standards; if the subject is not in compliance, the eventual renovation costs and/or penalties would negatively impact the present value of the subject. If the magnitude and time of the cost were known today, they would be reduced from the reported value conclusion. • An on-site inspection of the subject property was conducted. No evidence of asbestos materials on-site was noted. A Phase 1 Environmental Assessment was not provided for this analysis. This analysis assumes that no asbestos or other hazardous materials are stored or found in or on the subject property. If evidence of hazardous materials of any kind occurs, the reader should seek qualified professional assistance. If hazardous materials are discovered and if f uture market conditions indicate an impact on value and increased perceived risk, a revision of the concluded values may be necessary. • A detailed soils study was not provided for this analysis. The subject's soils and sub-soil conditions are assumed to be suitable based upon a visual inspection, which did not indicate evidence of excessive settling or unstable soils. No certification is made regarding the stability or suitability of the soil or sub -soil conditions. • This analysis assumes that the financial information provided for this appraisal, including rent rolls and historical income and expense statements; accurately reflect the current and historical operations of the subject property. 17.d Packet Pg. 614 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ADDENDA TABLE OF CONTENTS LAX190060 © 2019 COLLIERS INTERNATIONAL VALUATION & ADVISORY SERVICES 78 Valuation Glossary Qualifications of Appraisers Qualifications of Colliers International Valuation & Advisory Services 17.d Packet Pg. 615 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Unless specified otherwise, these definitions were extracted from the following sources or publications: The Dictionary of Real Estate Appraisal, Sixth Edition, Appraisal Institute, Chicago, Illinois, 2015 (Dictionary). Uniform Standards of Professional Appraisal Practice, 2018-2019 Edition (USPAP). The Appraisal of Real Estate, Fourteenth Edition, Appraisal Institute, Chicago, Illinois, 2013 (14th Edition). Absolute Net Lease A lease in which the tenant pays all expenses including structural maintenance, building reserves, and management; often a long-term lease to a credit tenant. (Dictionary) Ad Valorem Tax A real estate tax based on the assessed value of the property, which is not necessarily equivalent to its market value. (14th Edition) Aggregate of Retail Values (ARV) The sum of the separate and distinct market value opinions for each of the units in a condominium; subdivision development, or portfolio of properties, as of the date of valuation. The aggregate of retail values does not represent the value of all the units as sold together in a single transaction; it is simply the total of the individual market value conclusions. Also called sum of the retail values. (Dictionary) Arm’s-length Transaction A transaction between unrelated parties who are each acting in his or her own best interest. (Dictionary) As-Is Market Value The estimate of the market value of real property in its current physical condition, use, and zoning as of the appraisal date. (Dictionary) Assessed Value The value of a property according to the tax rolls in ad valorem taxation; may be higher or lower than market value, or based on an assessment ratio that is a percentage of market value. (14th Edition) Average Daily Room Rate (ADR) In the lodging industry, the net rooms revenue derived from the sale of guest rooms divided by the number of paid occupied rooms. (Dictionary) Band of Investment A technique in which the capitalization rates attributable to components of an investment are weighted and combined to derive a weighted-average rate attributable to the total investment. (Dictionary) Cash-Equivalent Price The price of a property with nonmarket financing expressed as the price that would have been paid in an all-cash sale. (Dictionary) Common Area The total area within a property that is not designed for sale or rental but is available for common use by all owners, tenants, or their invitees, e.g., parking and its appurtenances, malls, sidewalks, landscaped areas, recreation areas, public toilets, truck and service facilities. (Dictionary) 17.d Packet Pg. 616 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Contract Rent The actual rental income specified in a lease. (14th Edition) Cost Approach A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive; deducting depreciation from the total cost; and adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised. (14th Edition) Curable Functional Obsolescence An element of depreciation; a curable defect caused by a flaw in the structure, materials, or design, which can be practically and economically corrected. (Dictionary) Debt Coverage Ratio (DCR) The ratio of net operating income to annual debt service, which measures the relative ability of a property to meet its debt service out of net operating income; also called debt service coverage ratio (DSCR). (Dictionary) Deferred Maintenance Items of wear and tear on a property that should be fixed now to protect the value or income-producing ability of a property. (Dictionary) Depreciation In appraisal, a loss in property value from any cause; the difference between the cost of an improvement on the effective date of the appraisal and the market value of the improvement on the same date. (Dictionary) Direct Costs Expenditures for the labor and materials used in the construction of improvements; also called hard costs. (Dictionary) Discounted Cash Flow (DCF) Analysis The procedure in which a discount rate is applied to a set of projected income streams and a reversion. The analyst specifies the quantity, variability, timing, and duration of the income streams and the quantity and timing of the reversion, and discounts each to its present value at a specified yield rate. (Dictionary) Discount Rate A rate of return on capital used to convert future payments or receipts into present value; usually considered to be a synonym for yield rate. (Dictionary) Disposition Value The most probable price that a specified interest in property should bring under the following conditions: 1. Consummation of a sale within a specified time, which is shorter than the typical exposure time for such a property in that market. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider their best interests. 7. An adequate marketing effort will be made during the exposure time. 17.d Packet Pg. 617 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com . 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Easement The right to use another’s land for a stated purpose. Access or right-of-way easements may be acquired by private parties or public utilities. Governments may be the beneficiaries of easements placed on privately owned land that is dedicated to conservation, open space, or preservation. (14th Edition) Economic Life The period over which improvements to real property contribute to property value. (Dictionary) Effective Age The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. (Dictionary) Effective Date The date on which the appraisal or review opinion applies (SVP) (Dictionary) Effective Gross Income (EGI) The anticipated income from all operations of the real estate after an allowance is made for vacancy and collection losses and an addition is made for any other income. (Dictionary) Effective Gross Income Multiplier (EGIM) The ratio between the sale price (or value) of a property and its effective gross income. (Dictionary) Effective Rent The rental rate net of financial concessions such as periods of free rent during the lease term and above or below-market tenant improvements (TIs). (14th Edition) Eminent Domain The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property. (Dictionary) Entrepreneurial Incentive The amount an entrepreneur expects to receive for his or her contribution to a project. Entrepreneurial incentive may be distinguished from entrepreneurial profit (often called developer’s profit) in that it is the expectation of future profit as opposed to the profit actually earned on a development or improvement. (Dictionary) 17.d Packet Pg. 618 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Entrepreneurial Profit A market-derived figure that represents the amount an entrepreneur receives for his or her contribution to a project and risk; the difference between the total cost of a property (cost of development) and its market value (property value after completion), which represents the entrepreneur's compensation for the risk and expertise associated with development. An entrepreneur is motivated by the prospect of future value enhancement (i.e., the entrepreneurial incentive). An entrepreneur who successfully creates value through new development, expansion, renovation, or an innovative change of use is rewarded by entrepreneurial profit. Entrepreneurs may also fail and suffer losses. (Dictionary) Excess Land Land that is not needed to serve or support the existing improvement. The highest and best use of the excess land may or may not be the same as the highest and best use of the improved parcel. Excess land has the potential to be sold separately and is valued separately. (Dictionary) Excess Rent The amount by which contract rent exceeds market rent at the time of the appraisal; created by a lease favorable to the landlord (lessor) and may reflect unusual management, unknowledgeable or unusually motivated parties, a lease execution in an earlier, stronger rental market, or an agreement of the parties. Due to the higher risk inherent in the receipt of excess rent, it may be calculated separately and capitalized or discounted at a higher rate in the income capitalization approach. (14th Edition) Expense Stop A clause in a lease that limits the landlord's expense obligation, which results in the lessee paying any operating expenses above a stated level or amount. (Dictionary) Exposure Time The estimated length of time that the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; Comment: Exposure time is a retrospective opinion based on an analysis of past events assuming a competitive and open market. (Dictionary) External Obsolescence A type of depreciation; a diminution in value caused by negative external influences and generally incurable on the part of the owner, landlord, or tenant. The external influence may be temporary or permanent. (Dictionary) Extraordinary Assumption An assignment-specific assumption as of the effective date regarding uncertain information used in an analysis which, if found to be false, could alter the appraiser's opinions or conclusions. Uncertain information might include physical, legal, or economic characteristics of the subject property; or conditions external to the property, such as market conditions or trends; or the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if: • It is required to properly develop credible opinions and conclusions; • The appraiser has a reasonable basis for the extraordinary assumption; • Use of the extraordinary assumption results in a credible analysis; and • The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. (USPAP) 17.d Packet Pg. 619 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Fair Market Value In nontechnical usage, a term that is equivalent to the contemporary usage of market value. As used in condemnation, litigation, income tax, and property tax situations, a term that is similar in concept to market value but may be defined explicitly by the relevant agency. (Dictionary) Feasibility Analysis A study of the cost-benefit relationship of an economic endeavor. (USPAP) Fee Simple Estate Absolute ownership unencumbered by any other interest or estate, subject only to the limitations imposed by the governmental powers of taxation, eminent domain, police power and escheat. (Dictionary) Floor Area Ratio (FAR) The relationship between the above-ground floor area of a building, as described by the zoning or building code, and the area of the plot on which it stands; in planning and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor area of a building is twice the total land area. (Dictionary) Functional Obsolescence The impairment of functional capacity of improvements according to market tastes and standards. (Dictionary) Functional Utility The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards; the efficiency of a building’s use in terms of architectural style, design and layout, traffic patterns, and the size and type of rooms. (Dictionary) Furniture, Fixtures, and Equipment (FF&E) Business trade fixtures and personal property, exclusive of inventory. (Dictionary) Going-concern An established and operating business having an indefinite future life. (Dictionary) Going-concern Value An outdated label for the market value of all the tangible and intangible assets of an established and operating business with an indefinite life, as if sold in aggregate; more accurately termed the market value of the going concern or market value of the total assets of the business. (Dictionary) Gross Building Area (GBA) Total floor area of a building, excluding unenclosed areas, measured from the exterior of the walls of the above-grade area. This includes mezzanines and basements if and when typically included in the market area of the type of property involved. (Dictionary) Gross Leasable Area (GLA) - Commercial Total floor area designed for the occupancy and exclusive use of tenants, including basements and mezzanines; measured from the center of joint partitioning to the outside wall surfaces. (Dictionary) 17.d Packet Pg. 620 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Gross Living Area (GLA) - Residential Total area of finished, above-grade residential area; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space. (Finished basements and attic areas are not generally included in total gross living area. Local practices, however, may differ.) (Dictionary) Highest & Best Use The reasonably probable use of property that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. The use of an asset that maximizes its potential and that is possible, legally permissible, and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for that asset when formulating the price that it would be willing to bid (IVS). (Dictionary) Hypothetical Condition A condition, directly related to a specific assignment, which is contrary to what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of analysis. Hypothetical conditions are contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. (USPAP) Income Capitalization Approach In the income capitalization approach, an appraiser analyzes a property’s capacity to generate future benefits and capitalizes the income into an indication of present value. The principle of anticipation is fundamental to this approach. Techniques and procedures from this approach are used to analyze comparable sales data and to measure obsolescence in the cost approach. (14th Edition) Incurable Functional Obsolescence An element of depreciation; a defect caused by a deficiency or superadequacy in the structure, materials, or design that cannot be practically or economically corrected as of the effective date of the appraisal. (Dictionary) Indirect Costs Expenditures or allowances for items other than labor and materials that are necessary for construction, but are not typically part of the construction contract. Indirect costs may include administrative costs, professional fees, financing costs and the interest paid on construction loans, taxes and the builder's or developer's all-risk insurance during construction, and marketing, sales, and lease-up costs incurred to achieve occupancy or sale. Also called soft costs. (Dictionary) Insurable Replacement Cost The cost estimate, at current prices as of the effective date of valuation, of a substitute for the building being valued, using modern materials and current standards, design and layout for insurance coverage purposes guaranteeing that damaged property is replaced with a new property (i.e., depreciation is not deducted). (Dictionary) 17.d Packet Pg. 621 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Interim Use The temporary use to which a site or improved property is put until a different use becomes maximally productive. (Dictionary) Investment Value The value of a property to a particular investor or class of investors based on the investor’s specific requirements. Investment value may be different from market value because it depends on a set of investment criteria that are not necessarily typical of the market. (Dictionary) Liquidation Value The most probable price that a specified interest in real property should bring under the following conditions: 1. Consummation of a sale within a short time period. 2. The property is subjected to market conditions prevailing as of the date of valuation. 3. Both the buyer and seller are acting prudently and knowledgeably. 4. The seller is under extreme compulsion to sell. 5. The buyer is typically motivated. 6. Both parties are acting in what they consider to be their best interests. 7. A normal marketing effort is not possible due to the brief exposure time. 8. Payment will be made in cash in U.S. dollars (or the local currency) or in terms of financial arrangements comparable thereto. 9. The price represents the normal consideration for the property sold, unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. This definition can also be modified to provide for valuation with specified financing terms. (Dictionary) Leased Fee Interest The ownership interest held by the lessor, which includes the right to receive the contract rent specified in the lease plus the reversion right when the lease expires. (Dictionary) Leasehold Interest The right held by the lessee to use and occupy real estate for a stated term and under the conditions specified in the lease. (Dictionary) Legally Nonconforming Use A use that was lawfully established and maintained, but no longer conforms to the use regulations of its current zoning; also known as a grandfathered use. (Dictionary) Market Area The geographic region from which a majority of demand comes and in which the majority of competition is located. Depending on the market, a market area may be further subdivided into components such as primary, secondary, and tertiary market areas. (Dictionary) Market Rent The most probable rent that a property should bring in a competitive and open market reflecting all conditions and restrictions of the lease agreement, including permitted uses, use restrictions, expense obligations, term, concessions, renewal and purchase options, and tenant improvements (TIs). (14th Edition) 17.d Packet Pg. 622 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Market Study An analysis of the market conditions of supply, demand, and pricing for a specific property type in a specific area. (Dictionary) Market Value (Interagency Guidelines) The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: 1. buyer and seller are typically motivated; 2. both parties are well informed or well advised, and acting in what they consider their own best interests; 3. a reasonable time is allowed for exposure in the open market; 4. payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale. (Interagency Appraisal and Evaluation Guidelines, December 10, 2010, Federal Register, Volume 75 Number 237, Page 77472) Marketability Analysis The study of how a specific property is expected to perform in a specific market. A marketability analysis expands on a market analysis by addressing a specific property.(Dictionary) Neighborhood Analysis The objective analysis of observable or quantifiable data indicating discernible patterns of urban growth, structure, and change that may detract from or enhance property values; focuses on four sets of considerations that influence value: social, economic, governmental, and environmental factors. (Dictionary) Net Operating Income (NOI) The actual or anticipated net income that remains after all operating expenses are deducted from effective gross income but before mortgage debt service and book depreciation are deducted. Note: This definition mirrors the convention used in corporate finance and business valuation for EBITDA (earnings before interest, taxes, depreciation, and amortization). (14th Edition) Obsolescence One cause of depreciation; an impairment of desirability and usefulness caused by new inventions, changes in design, improved processes for production, or external factors that make a property less desirable and valuable for a continued use; may be either functional or external. (Dictionary) 17.d Packet Pg. 623 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Off-site Costs Costs incurred in the development of a project, excluding on-site costs such as grading and construction of the building and other improvements; also called common costs or off- site improvement costs. (Dictionary) On-site Costs Costs incurred for the actual construction of buildings and improvements on a particular site. (Dictionary) Overage Rent The percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of a specified breakeven sales volume. (14th Edition) Overall Capitalization Rate (OAR) The relationship between a single year’s net operating income expectancy and the total property price or value. (Dictionary) Parking Ratio The ratio of parking area or parking spaces to an economic or physical unit of comparison. Minimum required parking ratios for various land uses are often stated in zoning ordinances.(Dictionary) Potential Gross Income (PGI) The total income attributable to property at full occupancy before vacancy and operating expenses are deducted. (Dictionary) Potential Gross Income Multiplier (PGIM) The ratio between the sale price (or value) of a property and its annual potential gross income. (Dictionary) Present Value (PV) The value of a future payment or series of future payments discounted to the current date or to time period zero. (Dictionary) Prospective Opinion of Value A value opinion effective as of a specified future date. The term does not define a type of value. Instead, it identifies a value opinion as effective at some specific future date. An opinion of value as of a prospective date is frequently sought in connection with projects that are proposed, under construction, or under conversion to a new use, or those that have not achieved sellout or a stabilized level of long-term occupancy. (Dictionary) Qualitative Adjustment An indication that one property is superior, inferior, or the same as another property. Note that the common usage of the term is a misnomer in that an adjustment to the sale price of a comparable property is not made. Rather, the indication of a property’s superiority or inferiority to another is used in relative comparison analysis, bracketing, and other forms of qualitative analysis. (Dictionary) Quantitative Adjustment A numerical (dollar or percentage) adjustment to the indicated value of the comparable property to account for the effect of a difference between two properties on value. (Dictionary) Rentable Area The amount of space on which the rent is based; calculated according to local practice. (Dictionary) 17.d Packet Pg. 624 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Replacement Cost The estimated cost to construct, at current prices as of a specific date, a substitute for a building or other improvements, using modern materials and current standards, design, and layout. (Dictionary) Reproduction Cost The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, layout, and quality of workmanship and embodying all the deficiencies, superadequacies, and obsolescence of the subject building. (Dictionary) Retrospective Value Opinion A value opinion effective as of a specified historical date. The term retrospective does not define a type of value. Instead, it identifies a value opinion as being effective at some specific prior date. Value as of a historical date is frequently sought in connection with property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective market value opinion.” (Dictionary) Sales Comparison Approach The process of deriving a value indication for the subject property by comparing sales of similar properties to the property being appraised, identifying appropriate units of comparison, and making adjustments to the sale prices (or unit prices, as appropriate) of the comparable properties based on relevant, market-derived elements of comparison. The sales comparison approach may be used to value improved properties, vacant land, or land being considered vacant when an adequate supply of comparable sales is available. (Dictionary) Scope of Work The type and extent of research and analysis in an appraisal or appraisal review assignment. Scope of work includes, but is not limited to: The extent to which the property is identified; The extent to which tangible property is inspected; The type and extent of data researched; and The type and extent of analysis applied to arrive at opinions or conclusions. (USPAP) Shopping Center Types Neighborhood Shopping Center: The smallest type of shopping center, generally with a gross leasable area of between 30,000 and 100,000 square feet. Typical anchors include supermarkets. Neighborhood shopping centers offer convenience goods and personal services and usually depend on a market population support of 3,000 to 40,000 people. Community Shopping Center: A shopping center of 100,000 to 400,000 square feet that usually contains one junior department store, a variety store, discount or department store. A community shopping center generally has between 20 and 70 retail tenants and a market population support of 40,000 to 150,000 people. Regional Shopping Center: A shopping center of 300,000 to 900,000 square feet that is built around one or two full-line department stores of approximately 200,000 square feet each plus small tenant spaces. This type of center is typically supported by a minimum population of 150,000 people. 17.d Packet Pg. 625 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Valuation Glossary Valuation & Advisory Services CONTACT DETAILS DIR +1 206 695 4200 FAX +1 206 682 7938 Colliers International 601 Union Street Suite 4800 Seattle, WA 98101 www.colliers.com Shopping Center Types (cont.) Super-Regional Center: A large center of 600,000 to 2.0 million square feet anchored by three or more full-line department stores. This type of center is typically supported by a population area of 300,000 people. (14th Edition) Superadequacy An excess in the capacity or quality of a structure or structural component; determined by market standards. (Dictionary) Surplus Land Land that is not currently needed to support the existing use but cannot be separated from the property and sold off for another use. Surplus land does not have an independent highest and best use and may or may not contribute value to the improved parcel. (Dictionary) Tenant Improvements (TIs) 1. Fixed improvements to the land or structures installed for use by a lessee. 2. The original installation of finished tenant space in a construction project; subject to periodic change for succeeding tenants. (Dictionary) Triple Net Lease An alternative term for a type of net lease. In some markets, a net net net lease is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a property except that the landlord is responsible for structural maintenance, building reserves, and management. Also called NNN, triple net lease, or fully net lease. (Dictionary) Usable Area The area that is actually used by the tenants measured from the inside of the exterior walls to the inside of walls separating the space from hallways and common areas. (Dictionary) Useful Life The period of time over which a structure or a component of a property may reasonably be expected to perform the function for which it was designed. (Dictionary) Vacancy and Collection Loss A deduction from potential gross income (PGI) made to reflect income deductions due to vacancies, tenant turnover, and non-payment of rent; also called vacancy and credit loss or vacancy and contingency loss. (Dictionary) Yield Capitalization A method used to convert future benefits into present value by 1) discounting each future benefit at an appropriate yield rate, or 2) developing an overall rate that explicitly reflects the investment's income pattern, holding period, value change, and yield rate. (Dictionary) 17.d Packet Pg. 626 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) David A. Williams, MAI, AI-GRS VALUATION SERVICES DIRECTOR Valuation & Advisory Services dave.a.williams@colliers.com EDUCATION AND QUALIFICATIONS Member, Appraisal Institute Board Member, IRWA Chapter 1 B.Sc. Boston University STATE CERTIFICATIONS California Hawaii CONTACT DETAILS MOB +1 818 915 3791 DIR +1 818 417 3319 FAX +1 661 631 3829 Colliers International Los Angeles: 865 S. Figueroa St. Suite 3500 Los Angeles, CA 90017 Bakersfield: 10000 Stockdale Hwy. Suite 102 Bakersfield, CA 93311 www.colliers.com David A. Williams is a Valuation Services Director with Colliers International Valuation & Advisory Services, located in the Los Angeles and Bakersfield offices. Mr. Williams has performed appraisals for a wide variety of property types throughout California, New Mexico, Oregon and Hawaii. Projects include regional malls, high-rise office buildings, business parks, proposed apartments and residential subdivisions. Core competencies are highest and best use analysis, right of way/condemnation and litigation support. Assignments have included the valuation of water rights, environmental contamination and agriculture (orchards/cropland). He has been in multiple arbitrations for market rent resets, for both buildings and land. Mr. Williams has been deposed and has testified as an expert witness in jury trials. EXPERIENCE Valuation Services Director, Colliers January 2014 – present Senior Analyst, Overland, Pacific & Cutler October 2012 – December 2013 Senior Analyst, Integra Realty Resources, Los Angeles – February 2010-August 2012 Senior Analyst, CB Richard Ellis, Los Angeles – February 2005-December 2010 PROFESSIONAL AFFILIATIONS AND ACCREDITATIONS Member – Appraisal Institute, August 2014 Reviewer Designation (AI-GRS) – Appraisal Institute 2019 Board Member – International Right of Way Association (IRWA), Chapter 1 since 2016 APPRAISAL INSTITUTE COURSES Valuation of Conservation Easements Appraising the Appraisal: Appraisal Review – General USPAP 15-Hour USPAP 7-Hour Basic Income Capitalization Advanced Income Capitalization Advanced Sales Comparison & Cost Approaches Appraisal of Nursing Facilities General Appraiser Market Analysis and Highest & Best Use Report Writing and Valuation Analysis Advanced Applications Business Practices and Ethics General Demonstration Appraisal Report Writing Seminar OTHER RELATED COURSES Appraisal Principles & Procedures Appraising Estates Subject to IRS Regulations 48th-50th Annual Litigation Seminars Appraisal Institute Litigation Workshop PROFESSIONAL SERVICE Chair, Appraisal Institute Hearing Committee Chair, IRWA Chapter 1 Newsletter 17.d Packet Pg. 627 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REPRESENTATIVE CLIENTS AND PROJECTS Client: Google, Inc. – Ground lease arbitration with NASA (Federal Government) – market rent reset in a flood zone. Considerations include anticipated construction finishing costs and water retention ponds. Client: Honolulu Area Rapid Transit (HART) – Leading valuation team for the acquisition of real property for the construction of an overhead rail line in Honolulu. Client: BNSF Railroad – Valuation of multiple parcels to expand existing right-of-way in Belen, New Mexico. Client: California Department of Transportation (CALTRANS) – Widening of US Highway 395 -- subcontracted by Epic Land Solutions to value 49 parcels along US Highway 395 in Adelanto and Victorville. Primary issues were highway access and landlocked remainder parcels. Client: Greenberg, Glusker/Starpoint Capital – Ground rent reset contingent upon the highest value of the following: value as-is, current highest & best use and highest & best use as of lease commencement. Predominant issue was understanding why the punitive lease escalations were written and agreed to by the lessee. Client: High Speed Rail/Epic Land Solutions – Approximately two dozen agricultural properties in Wasco, Kern County. Appraisal problems included re-routing of irrigation and harvesting lanes, well estimates, crop yields, and allocation to the leased fee/leasehold positions per the Caltrans Right of Way Manual, Chapter 7. Client: State of Qatar – Client was looking to acquire a single-tenant building in Beverly Hills. Appraisal problems included valuing the premium, if any, of the Richard Meier re- design and the impacts of the Metro Purple Line extension, which identified the subject as a full take for a construction yard. Client: City of Murrieta/Epic Land Solutions – Valued three agricultural properties impacted by a right of way project. Appraisal problems included assessing the impact of Riverside County’s Multiple Species Habitation Conservation Plan (MSHCP). Client: Rutan & Tucker, LP – Valued damages on a 200-acre agricultural property in Hinkley, CA posed by the re-routing of Highway 58. Appraisal problems included valuation of arable versus non-arable land, and warranted research of water rights and its market per acre foot. Client: Fox, Rothchild, LP – Valued a 62-acre Superfund site in Rialto, CA. Appraisal problems included determining a range of value for the property as remediated and in its as- is condition giving that the final EPA report had yet to be issued. David A. Williams, MAI, AI-GRS VALUATION SERVICES DIRECTOR Valuation & Advisory Services dave.a.williams@colliers.com CONTACT DETAILS MOB +1 818 915 3791 DIR +1 213 417 3319 FAX +1 213 327 3419 Colliers International 865 S. Figueroa St. Suite 3500 Los Angeles, CA 90017 Bakersfield: 10000 Stockdale Hwy. Suite 102 Bakersfield, CA 93311 www.colliers.com 17.d Packet Pg. 628 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) REPRESENTATIVE CLIENTS AND PROJECTS Client: Demitriou, Del Guercio, Springer & Francis, LP -- Analyzed damages to a 40,000 SF industrial property posed by the expansion of a primary arterial in Walnut, CA. Appraisal problems included an analysis of lost rent, diminished access, security and utility and the leaseability of the space during the construction period. Client: Bank of the West – Valued a proposed surgical center for a construction loan. Appraisal problem related to the high cost of construction that could only be supported via an analysis of the surgery center market and the anticipated effects of the Affordable Care Act. Client: C-III Asset Management -- Performed leasehold valuation with possessory interest. Appraisal problems included city-held land and tenant construction loans based on the value of the tenant’s lease payment schedule. Client: SANBAG -- I-15 & I-215 Devore Freeway Interchange Project. Provided appraisal for acquisition of an aerial easement utilized by a freeway billboard sign. Client: LADWP -- Provided appraisal to value the acquisition of 2,300 acres of Kern County desert land with full entitlements for the construction of a 230 mW utility-scale, photovoltaic solar generating facility. Subsequently, developed a market rent analysis for a regional utility company to evaluate leasing a portion of the site to a private energy consortium. Involved extensive analysis on the viability of utility-scale solar power projects. Client: City of Covina – Valuation of two development sites subject to the city purchasing a portion of each for public use. Client: City of Bellflower -- Appraised the vacation of a portion of a city street with a cul- de-sac for a lot tie with an adjacent city-owned parcel for possible sale to a mixed-use developer. Also appraised a right of way acquisition for road widening that included an automobile dealership. Multiple scenarios included demolishing the building and using a cut- and-face technique to save the building. Client: Mountains, Recreation & Conservation Authority (MRCA) -- Appraised 400 acres of Simi Hills land with an extensive highest and best use analysis on subdivisions versus luxury estate development. Client: U.S. Government -- Performed complex highest and best use analyses for fee acquisitions by public agencies. Appraisal problems included multiple zonings on site, functional and external obsolescence, growth corridors and federally-owned (unzoned) areas, e.g., Vandenberg AFB and March ARB. David A. Williams, MAI, AI-GRS VALUATION SERVICES DIRECTOR Valuation & Advisory Services dave.a.williams@colliers.com CONTACT DETAILS MOB +1 818 915 3791 DIR +1 213 417 3319 FAX +1 213 327 3419 Colliers International 865 S. Figueroa St. Suite 3500 Los Angeles, CA 90017 Bakersfield: 10000 Stockdale Hwy. Suite 102 Bakersfield, CA 93311 www.colliers.com 17.d Packet Pg. 629 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 17.dPacket Pg. 630Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Casey Merrill, MAI, ASA, FRICS EXECUTIVE MANAGING DIRECTOR | SOUTHWEST REGION Valuation & Advisory Services casey.merrill@colliers.com EDUCATION AND QUALIFICATIONS B.A., University of California, Davis STATE CERTIFICATION Arizona California Colorado Hawaii Nevada New Mexico Oregon Texas Utah Washington CONTACT DETAILS MOB +1 760 333 1838 DIR +1 213 417 3315 Colliers International 865 South Figueroa Street Suite 3500 Los Angeles, CA 90017 Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92614 www.colliers.com Casey Merrill is the Executive Managing Director of the Southwest Region for Colliers International Valuation & Advisory Services. After a long and successful football career in the NFL, playing for the Green Bay Packers and New York Giants, Mr. Merrill started his appraisal career in 1987 and has served as a leader and manager for more than 25 years. He has performed valuations and consulting services on a wide variety of property types and property rights. He previously worked for Wells Fargo Bank. Mr. Merrill has valuation expertise in a variety of assignments including mortgage lending, public agency and right of way appraisal services. Public agency services include temporary construction easements, pipeline easements, subway easements, aerial guideway easements. The public agency appraisals are prepared in accordance with the Uniform Standards of Federal Land Acquisitions (Yellow Book). Mr. Merrill and Colliers International are currently working under a multiple year contract for preparation and full oversight on appraisals being prepared for the High Speed Rail project for the Honolulu Authority for Rapid Transit ("HART"). Other services include the valuation of land leases, sandwich leaseholds, minority and fractional ownership interests, agricultural land, date groves. Mr. Merrill was the Chief Appraiser for the Agua Caliente Band of Cahuilla Indians for 5 years under a 93-638 U.S. Department of the Interior Contract and has specialized expertise in the valuation of Tribal and Allotted Land on Indian Reservations. Mr. Merrill has extensive experience in the appraisal and appraisal review of offices, industrial parks, multifamily residential, resort hotels, shopping centers, auto dealerships, marinas, campgrounds, C- stores, gas stations, car washes, going concerns, manufactured housing communities, and self-storage properties. Mr. Merrill has testified as an Expert Witness in the following jurisdictions: Superior Courts of Riverside County and San Bernardino County, Federal Bankruptcy Court, and the Riverside County Assessment Appeals Board. EXPERIENCE Executive Managing Director, Southwest Region, Colliers International Valuation & Advisory Services 2016 to present Managing Director, Southern California, Colliers International Valuation & Advisory Services 2014 to 2016 Managing Director, Los Angeles, Ontario and Hawaii, CBRE 2013 to 2014 Vice President, Appraisal Manager, Wells Fargo Bank 2009 to 2013 Owner, Manager, Chief Appraiser, Merrill Appraisal 1994 to 2009 Appraisal Officer, Wells Fargo Bank 1992 to 1994 Staff Appraiser, MacKenzie & Associates 1987 to 1992 National Football League, Player, Team Leader, Green Bay Packers, New York Giants 1979 to 1987 17.d Packet Pg. 631 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) PROFESSIONAL MEMBERSHIPS AND ACCREDITATIONS MAI, Designated Member of the Appraisal Institute ASA, Accredited Senior Appraiser, American Society of Appraisers FRICS, Fellow, Royal Institution of Chartered Surveyors Royal Institution of Chartered Surveyors – Former Board Member, Board of Directors, Southern California Chapter Appraisal Institute - Member of the Regional Ethics and Counseling Committee 1993 to present Appraisal Institute - Current Vice President, Southern California Chapter Appraisal Institute - Treasurer, Southern California Chapter 2018 Appraisal Institute - Secretary, Southern California Chapter 2017 Appraisal Institute – Admissions Committee, Vice Chairman 1994 to 1997 EXAMPLES OF ASSIGNMENTS The Port of Los Angeles Kona Kai Marina, San Diego The Bloc, Los Angeles Ala Moana Center, Honolulu The Esplanade Mall, Phoenix U.S. Bank Tower, Los Angeles Two California Plaza, Los Angeles TCW Building, Los Angeles Original Farmer's Market, Los Angeles Warner Center, Woodland Hills Circa Apartments, Los Angeles CBRE Building, Los Angeles Michelson Building, Irvine Hewlett Packard Campus, San Diego (Rancho Bernardo) U.S. Bank Center, Phoenix Hadley Date Orchards, Inc., Thermal Indian Wells Tennis Garden Palm Springs Art Museum NAFTA Highway (State Highway 86) right-of-way California High Speed Rail Corridor Honolulu Authority for Rapid Transit ("HART") High Speed Rail, Honolulu CA State Highway 395 expansion right-of-way Alameda Corridor right-of -way Ontario Mills Mall Westfield Palm Desert Shopping Mall Q-West Tower, Phoenix Skechers Warehouse, Moreno Valley Hanesbrands West Coast Distribution Center, Perris Casey Merrill, MAI, ASA, FRICS EXECUTIVE MANAGING DIRECTOR | SOUTHWEST REGION Valuation & Advisory Services casey.merrill@colliers.com CONTACT DETAILS MOB +1 760 333 1838 DIR +1 213 417 3315 Colliers International 865 South Figueroa Street Suite 3500 Los Angeles, CA 90017 Colliers International 3 Park Plaza, Suite 1200 Irvine, CA 92614 www.colliers.com 17.d Packet Pg. 632 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 17.dPacket Pg. 633Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase Real estate valuations play a pivotal role in today’s business climate. An accurate and well supported opinion of property value can mean the difference between reaching a critical goal—securing a loan, closing a sale, reporting to investors, choosing the best asset—or failing to achieve it altogether. Colliers Valuation & Advisory Services’ reports are designed to deliver insight into a property’s fundamentals, its competition and the overall market dynamics affecting value. A solid valuation report can be a strategic asset for investors, lenders and owners, provided that it addresses both a property’s unique characteristics and the most current market conditions. Commitment to high-end client service, coupled with Colliers International’s unparalleled market intelligence and resources, differentiates us as the firm of choice in the real estate industry. PROFESSIONALS Our professionals share a commitment to deliver the highest level of service and consistent results. We go the extra mile for our clients, whether this means meeting a tight deadline or working with a complex and challenging property. TECHNOLOGY Our unmatched report creation technology speeds appraisals through the pipeline. This secure, centralized production system generates a wide range of reports and high volume portfolio orders without delays. INFORMATION Today’s business climate places valuation in a more pivotal position than ever before. All our appraisals are evaluated and approved by an experienced review team to ensure our clients receive concise and timely appraisals. With clear, prompt reporting and a comprehensive, big picture approach, Colliers International’s Valuation and Advisory reports give our clients the information they need to make better business decisions. This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2011. All rights reserved. 102011 VALUATION & ADVISORY SERVICES Colliers International Services Offered Single Asset Valuation Portfolio Valuation Institutional Asset Valuation Loan Pool Valuation Appraisal Review Appraisal Management Lease and Cost Analysis Insurance Valuation Arbitration & Consulting Feasibility Studies Investment Analysis Highest and Best Use Studies Tax Appeals Litigation Support Segregated-Cost Analysis Experience That Counts Office Industrial Retail Multifamily Mixed-Use Properties Senior Housing Land Self-Storage Manufactured Housing Net Lease Hospitality Health Care Subdivisions Embassies & Consulates GSA Properties Special Use Properties Telecommunications Colliers International Valuation & Advisory Services 17.d Packet Pg. 634 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) ALBUQUERQUEConner Marshall MAI Sr. Valuation Services DirectorConner.Marshall@colliers.com +1 505 880 7053 AUSTINBrian Biggs CPA, MAI Valuation Service DirectorBrian.Biggs@colliers.com+1 512 539 3007 ATLANTALeamon Holliday MAIManaging Director Leamon.Holliday@colliers.com+1 404 892 3526 BALTIMORE Zachary Smith MAI Associate Managing Director Zachary.Smith@colliers.com+1 443 602 8985 BOISEAndrew Boespflug MAISr. Valuation Services DirectorAndrew.Boespflug@colliers.com+1 208 472 2853 BOSTONCorey Gustafson MAIManaging DirectorCorey.Gustafson@colliers.com +1 617 330 8070 BUFFALOJames Murrett MAI, SRA Executive Managing DirectorJim.Murrett@colliers.com +1 716 312 7790 CHARLOTTEChris Johnson MAI, SRA, ASA Managing Director Christopher.Johnson@colliers.com+1 704 409 2374 CHICAGO Nancy Myers MAIManaging Director Nancy.Myers@colliers.com+1 312 602 6159 CINCINNATI Steven Hodge MAI Managing Director Steven.Hodge@colliers.com+1 513 562 2214 COLUMBUSBruce Nell MAI, AI-GRS, MRICSEMD | National PracticesBruce.Nell@colliers.com+1 614 437 4687 DALLASThomas Bogdon MAI, R/W-AC, MRICSEMD | Southcentral RegionThomas.Bogdon@colliers.com +1 214 217 9338 DENVERJonathan Fletcher MAI Managing DirectorJon.Fletcher@colliers.com +1 303 779 5500 DESTIN Kevin Branton Senior Valuation SpecialistKevin.Branton@colliers.com+1 904 861 1150 DETROITDavid Abraham MAI, SRAManaging Director David.Abraham@colliers.com+1 248 226 1872 FAYETTEVILLECurt Smith MAI Valuation Services DirectorCurt.Smith@colliers.com +1 479 202 5932 FRESNOJohn Larson MAI Sr. Valuation Services DirectorJohn.Larson@colliers.com+1 559 221 1271 GRAND RAPIDSWilliam LokerManaging Director William.Loker@colliers.com+1 616 988 5843 HAWAIIAN ISLANDSBobby Hastings MAI, MRICSManaging Director Bobby.Hastings@colliers.com+1 808 200 5603 HOUSTON Chris Stallings MAI, CCIM, MRICS Managing DirectorChris.Stallings@colliers.com +1 713 835 0088 INDIANAPOLIS Nancy Myers MAIManaging DirectorNancy.Myers@colliers.com +1 312 602 6159 IRVINEJohn Park MAI Sr. Valuation Services DirectorJohm.Park@colliers.com +1 213 532 3249 JACKSONVILLE Patrick Phipps MAI Managing DirectorPatrick.Phipps@colliers.com+1 904 861 1114 KANSAS CITYAlex Hoenig MAIValuation Services Director Alex.Hoenig@colliers.com +1 816 419 3561 LAS VEGASEvan Ranes MAI, ASAManaging Director Evan.Ranes@colliers.com+1 702 836 3749 LITTLE ROCKJoshua Smith MAI, MRICSManaging DirectorJoshua.Smith@colliers.com +1 501 219 8546 LOS ANGELES Casey Merrill MAI, ASA, FRICSEMD | Southwest RegionCasey.Merrill@colliers.com +1 213 417 3315 MIAMI Ralph Peña, III MAI Managing Director Ralph.Pena@colliers.com +1 786 517 4855 MILWAUKEE Ryan Sikorski MAI, CFAValuation Services Director Ryan.Sikorski@colliers.com+1 414 727 9800 MINNEAPOLIS Karen Dabek MAISr. Valuation Services DirectorKaren.Dabek@colliers.com +1 312 602 6158 NASHVILLE Patrick Gibson MAI, CCIMManaging Director Patrick.Gibson@colliers.com+1 615 610 4728 NEW ORLEANS Jason Lindsey MAIValuation Services Director Jason.Lindsey@colliers.com+1 504 717 1926 NEW YORKTony O’Sullivan MAI, MRICSManaging DirectorTony.OSullivan@colliers.com +1 212 207 8057 NEW YORK (UPSTATE) Anthony Palma MRICS Sr. Valuation Services DirectorAnthony.Palma@colliers.com +1 518 788 8108 ONTARIOCasey Merrill MAI, ASA, FRICS EMD | Southwest RegionCasey.Merrill@colliers.com+1 213 417 3315 ORLANDOPJ Cusmano MAI, MRICS EMD | Florida RegionPJ.Cusmano@colliers.com+1 813 229 1599 PHILADELPHIAAlbert Crosby MAIAssociate Managing Director Albert.Crosby@colliers.com+1 215 928 7526 PHOENIXMichael Brown Associate Managing Director Michael.Brown@colliers.com+1 602 222 5166 PITTSBURGHBruce Nell MAI, AI-GRS, MRICSEMD | National PracticesBruce.Nell@colliers.com +1 614 437 4687 PORTLAND/VANCOUVERJeremy Snow MAI Managing DirectorJeremy.Snow@colliers.com +1 503 542 5409 RALEIGHMatthew Mashburn MAIValuation Services Director Matt.Mashburn@colliers.com+1 919 500 4812 RENOJeffrey Shouse MAI, CREEMD | National Practices Jeff.Shouse@colliers.com+1 916 724 5531 RICHMONDMichael Miller MAI, FRICSEMD | Mid-Atlantic RegionMichael.G.Miller@colliers.com +1 804 289 2168 SACRAMENTOJeffrey Shouse MAI, CRE EMD | National PracticesJeff.Shouse@colliers.com +1 916 724 5531 SALT LAKE CITYJohn Blaser MAI Valuation Services DirectorJohn.Blaser@colliers.com+1 385 249 5440 SAN DIEGORob Detling MAI Managing DirectorRob.Detling@colliers.com+1 858 860 3852 SAN FRANCISCOVathana Duong MAIManaging Director Vathana.Duong@colliers.com+1 415 788 3100 SAN JOSEJeffrey Shouse MAI, CREEMD | National Practices Jeff.Shouse@colliers.com+1 916 724 5531 SARASOTA Justin Butler MAIMD | Healthcare ValuationJustin.Butler@colliers.com +1 941 923 8588 SEATTLEReid Erickson MAI EMD | Northwest RegionReid.Erickson@colliers.com +1 206 965 1106 ST. LOUISJeremy R. Walling MAI, MRICSExecutive Vice President Jeremy.Walling@colliers.com+1 312 371 4920 TAMPAPJ Cusmano MAI, MRICSEMD | Florida Region PJ.Cusmano@colliers.com+1 813 229 1599 WASHINGTON DC David Wilk CRE, MAI, FRICSManaging DirectorDavid.Wilk@colliers.com +1 202 534 3603 NATIONAL CLIENT SERVICESJerry P. Gisclair MAI, MRICS EMD | National Client ServicesJerry.Gisclair@colliers.com +1 813 871 8531 NATIONAL OPERATIONSMorgan Turnbow MAI, MRICS EMD | National OperationsMorgan.Turnbow@colliers.com+1 212 355 1029 US LEADERSHIPJeremy R. Walling MAI, MRICS Executive Vice PresidentJeremy.Walling@colliers.com+1 312 371 4920 AMERICAS LEADERSHIPEduardo Alegre MAI, MRICSPresident | Americas Ed.Alegre@colliers.com+1 714 496 9400 Updated January 2019 colliers.com/valuationadvisory VALUATION & ADVISORY KEY CONTACTS & OFFICES Accelerating success. 17.d Packet Pg. 635 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (5th Street Gateway Property) This AGREEMENT FOR PURCHASE AND SALE AND JOINT ESCROW INSTRUCTIONS (5th Street Gateway Property) (“Agreement”) is entered into by and between the CITY OF SAN BERNARDINO ACTING IN THE CAPACITY AS THE SUCCESSOR HOUSING AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic (“Seller”), and GATEWAY SB, LLC, a limited liability company (“Buyer”). Buyer and Seller are sometimes individually referred to herein as “Party” and collectively as “Parties.” The Parties have executed this Agreement on the dates set forth below next to their respective signatures. This Agreement shall be effective on the date that is the later of the date that this Agreement has been approved by Seller’s governing body or its delegated representative and signed by all Parties (“Effective Date”). RECITALS A.Seller is the owner of that certain vacant real property consisting of approximately 187,742 square feet, or four and 31/100 (4.31) net acres, of land located long W. 5th Street, N. “G” Street, and N. “H” Street in the City of San Bernardino, California, County of San Bernardino and referred to as Assessor’s Parcel Numbers 0134-054-24, 0134-054-25, 0134-054- 26; 0134-061-21, 0134-061-22, 0134-061-25, 0134-061-30; 0134-093-05, 0134-093-06; and 0134-101-02, 0134-101-03, 0134-101-04, 0134-101-05, 0134-101-06, 0134-101-28 (the “Site”). B.Buyer will purchase the Site as more particularly described in Exhibit “A” attached hereto, together with (i) all rights, privileges, easements, rights of way and appurtenances, if any, that belong or appertain to the Site and are owned by Seller, including, without limitation, rights to all minerals, oil, gas and other hydrocarbon substances on and under the Site, as well as all development rights, air rights, water, water rights and water stock, if any, that pertain to the Site (collectively, “Appurtenances”), (ii) improvements, if any, located on the Site (collectively, “Improvements”), (iii) all maps, surveys, reports, studies and plans, if any, owned or held by Seller that pertain to the Site or the use thereof (collectively, “Tangible Property”) and (iv) all intangible property, if any, owned or held by Seller that pertains to the Site or to the development and use thereof, including, without limitation, all permits, authorizations, approvals, developer impact fee credits and utility connection fee credits (collectively, “Intangible Property”). C.The Site, Appurtenances, Improvements, Tangible Property, and Intangible Property in connection with the Site are hereinafter collectively referred to as the “Property.” D.Buyer desires to purchase the Property from Seller, and Seller desires to sell the Property to Buyer, upon the terms and conditions hereinafter set forth. E.The Purchase Price for the Property is based on its assessed Fair Market Value, less the estimated, required environmental remediation cost necessary, which will be completed by Buyer. By entering into this Agreement, Seller is furthering the public purposes associated Exhibit C 17.d Packet Pg. 636 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -2- with the development on the Property, which is in the best interests of the City of San Bernardino and the health, safety and welfare of the City’s taxpayers and residents and is in accordance with the public purposes set forth in the City’s General Plan for new development, including Goal 10.1, protecting the environment, public health, safety and welfare from hazardous wastes. Both Parties agree that environmental remediation, to be completed by Buyer after Close of Escrow, furthers these public purposes with a private benefit to any person, association, or corporation that is only incidental to that public purpose. F. Subject to the terms and conditions of an Agreement for Purchase and Sale and Joint Escrow Instructions dated concurrently herewith (the “City Purchase Agreement”) between Buyer and the City of San Bernardino (the “City”), Buyer intends to purchase certain property located adjacent to the Property (the “City Property”) concurrently with its purchase of the Property. TERMS NOW THEREFORE, in consideration of the above facts and for the covenants and agreements contained herein, the Buyer and Seller agree as follows: 1. PURCHASE AND SALE. 1.1 Property. Buyer agrees to purchase the Seller’s fee interest in the Property, and Seller agrees to sell its fee interests in the Property to Buyer, upon the terms and provisions set forth in this Agreement. 1.2 Purchase Price. The apprised Fair Market Value (“FMV”), based on the Seller’s interest in the Property, is the sum of One Million Two Hundred Sixty Thousand Dollars ($1,260,000). The FMV has been reduced by the estimated, environmental remediation costs of One Hundred Forty-Two Thousand Eight Hundred and Fifty Dollars ($142,850.00), see Exhibit D, with an accompanying 20% contingency of Twenty Eight Thousand Five Hundred and Seventy Dollars ($28,570.00) for a total remediation cost of One Hundred Seventy-One Thousand Four Hundred and Twenty Dollars ($171,420.00) and a resulting total purchase price of One Million Eighty-Eight Thousand Five Hundred and Eighty Dollars ($1,088,580.00) (“Purchase Price”). Purchase Price includes, without limitation, full payment of just compensation with an estimated environmental remediation cost and accompanying contingency, relocation benefits, leasehold bonus value, attorneys’ fees, costs, interest, and damages in complete settlement of all claims (known and unknown), causes of action and demands of Seller against Buyer because of Buyer’s purchase of the Property or ownership of an interest in the Property, and for any and all claims (known and unknown) arising from or relating to the purchase and sale which is the subject of this Agreement. 1.3 Payment of Purchase Price. At the Close of Escrow (defined below), Buyer shall pay to Seller through escrow the Purchase Price, payable in cash, by cashier’s or certified check or by wire transfer. 17.d Packet Pg. 637 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -3- 2. ESCROW. 2.1 Opening of Escrow. Within five (5) business days following the Effective Date, Buyer and Seller shall open an escrow (“Escrow”) with Commonwealth Land Title Company (“Escrow Holder”), for the purpose of consummating the transaction contemplated by this Agreement, and Buyer shall deliver an earnest money deposit of Five Thousand Dollars ($5,000) (“Earnest Money”) into Escrow. For purposes of this Agreement, the Escrow shall be deemed open on the date Escrow Holder shall have received a copy of this Agreement, showing it to be fully executed by Buyer and Seller (“Opening of Escrow” or “Opening Date”). Escrow Holder shall notify Buyer and Seller, in writing, of the Opening Date. 2.2 Buyer may, at its option, direct Escrow Holder to invest the Earnest Money in an interest bearing account designated by Buyer. All interest accruing on the Earnest Money shall become and be a part of the Earnest Money. The Earnest Money shall be held in Escrow to be applied to the Purchase Price, retained by the Seller, or return to the Buyer as provided in this Agreement. 2.3 If Buyer has not elected or been deemed to have elected to terminate this Agreement prior to the expiration of the period commencing on the Effective Date and terminating on the 60th day thereafter (“Inspection Period”), the Earnest Money shall be nonrefundable to Buyer, unless the consummation of the transaction contemplated in this Agreement fails to occur by reason of (i) the non-satisfaction of a condition to the Closing for Buyer's benefit or (ii) Seller’s default in any of its obligations under this Agreement in which event Escrow Holder shall refund the Earnest Money to Buyer. 2.4 Escrow Instructions. This Agreement constitutes the joint basic escrow instructions of Buyer and Seller for the conveyance of the Property. Buyer and Seller shall execute, deliver and be bound by any reasonable or customary supplemental or additional escrow instructions (“Additional Instructions”) of Escrow Holder or other instruments as may be reasonably required by Escrow Holder in order to consummate the transaction contemplated by this Agreement. Any such Additional Instructions shall not conflict with, amend or supersede any portions of this Agreement unless expressly consented or agreed to in writing by Buyer and Seller. In the event of any conflict or any inconsistency between this Agreement and such Additional Instructions, this Agreement shall govern unless otherwise expressly consented or agreed to in writing by the Parties. 2.5 Close of Escrow. For purposes of this Agreement, “Close of Escrow” or “Closing” means the recordation in Official Records of San Bernardino County, California of a Grant Deed in form reasonably acceptable to Buyer and Title Company conveying fee title to the Property to Buyer (“Grant Deed”), which is attached hereto as Exhibit “B” and the disbursement of funds and distribution of other documents by Escrow Holder, all as described herein. The Closing shall occur on or before the date which is sixty (60) business days following the opening of escrow pursuant to Section 2.1 of this Agreement (“Closing Date”), or on such earlier date as may be designated by Buyer by notice to Seller specifying the earlier date, given not less than ten (10) days prior to the earlier Closing Date and evidencing compliance with Section 2.9, Buyer’s Conditions Precedent to Close of Escrow. Parties may agree in writing to 17.d Packet Pg. 638 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -4- administratively extend Close of Escrow in order to complete all required conditions precedent to close of escrow as set forth herein. 2.6 Buyer and Seller may mutually agree to change the Closing Date by joint written notice to Escrow Holder. The Closing shall be conditioned upon satisfaction, or written waiver by the Party for whose benefit the condition exists, of all conditions precedent thereto. In the event the Escrow is not in a condition to close by the Closing Date for any reason other than the uncured breach of either Buyer or Seller, then any Party who is not then in default of the terms of this Agreement may terminate this Agreement and the Escrow as provided in Section 6.1. If no notice of termination as provided in Section 6.1 is received by Escrow Holder, Escrow Holder is instructed to proceed with the Close of Escrow as soon as possible. 2.7 Costs of Escrow and Title Policy. Seller shall pay the premium for the issuance to Buyer of a Standard ALTA Owner’s Policy of Title Insurance (Form 2016), without creditors' rights exclusion (“Title Policy”), for the Property in the amount of the Purchase Price and any applicable documentary transfer taxes. Buyer shall pay its own attorneys’ fees, the cost of the Survey, the cost of any endorsements to the Title Policy as well as additional premiums charged for any amount of title insurance desired by Buyer in excess of the Purchase Price or in excess of Standard ALTA. If allowed by applicable law, the amount of documentary transfer taxes shall not be posted on the Deed but shall be supplied by separate affidavit. Any closing costs not otherwise provided for herein shall be paid by the party legally responsible therefor or, if no law applies, according to prevailing custom for commercial transactions in the County and State. 2.8 Deposit of Funds and Documents. 2.8.1 Deposits by Seller. Prior to the Closing, Seller shall deposit or cause to be deposited with Escrow Holder the following documents and instruments: (a) Grant Deed. The Grant Deed, duly executed by Seller, acknowledged and in recordable form attached hereto as Exhibit “B.” (b) Seller's Certificate. A non-foreign affidavit satisfying Federal requirements (“Seller's Certificate”), duly executed by Seller, in the form attached hereto as Exhibit “C.” (c) Franchise Tax Form. Form 593, Real Estate Withholding Certificate, or such other form as required by the State Franchise Tax Board. (d) Such other documents and funds required of Seller under this Agreement and by Escrow Holder in the performance of its contractual or statutory obligations. 2.8.2 Deposits by Buyer. Prior to Closing, Buyer shall deposit or cause to be deposited with Escrow Holder funds that are to be applied towards the payment of the Purchase Price in the amounts and at the times designated in this Agreement, and any such other 17.d Packet Pg. 639 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -5- documents and funds as may be required of Buyer under this Agreement and by Escrow Holder in the performance of its contractual or statutory obligations. 2.9 Buyer’s Conditions Precedent to Close of Escrow. The Close of Escrow and Buyer’s obligation to accept title to the Property and pay the Purchase Price are subject to the satisfaction of the following-described conditions for Buyer’s benefit (or Buyer’s written waiver thereof, it being agreed that Buyer may waive any or all of such conditions) on or prior to the Closing Date: 2.9.1 All representations and warranties of Seller set forth in this Agreement shall be true and correct as of the Close of Escrow. 2.9.2 Seller shall have timely performed all obligations required to be performed by Seller prior to the Close of Escrow by the terms of this Agreement. 2.9.3 Escrow Holder shall have received an irrevocable commitment from the Title Company (defined below) to issue the Title Policy (defined below) required pursuant to this Agreement, as set forth in more detail in Article 3 of this Agreement. 2.9.4 Buyer shall have approved Escrow Holder’s estimated closing costs statement. 2.9.5 The City Purchase Agreement escrow shall be in a position to close concurrently with the Closing hereunder. 2.10 Seller’s Conditions Precedent to Close of Escrow. The Close of Escrow and Seller’s obligation to convey the Property are subject to the satisfaction of the following- described condition for Seller’s benefit (or Seller’s written waiver thereof, it being agreed that Seller may waive any or all of such conditions) on or prior to the Closing Date: 2.10.1 Buyer shall have tendered into Escrow all payments and documents required of it pursuant to this Agreement. 2.10.2 All representations and warranties of Buyer shall be true as of the Effective Date and as of Close of Escrow and shall continue for the full statutory period. 2.10.3 Seller shall have approved Escrow Holder’s estimated closing statement. 2.10.4 Buyer shall have timely performed all obligations to be performed by Buyer prior to Close of Escrow by the terms of this Agreement. 2.11 Environmental Remediation. If “Hazardous Substances,” as defined herein, are discovered on the Property, Buyer shall be responsible for the actual reasonable costs to handle and manage (and if required, remove and lawfully dispose of) such Hazardous Substances, as defined, in the manner approved by Government authorities with jurisdiction over the Site. Buyer shall be responsible for all associated costs, including insurance costs, that may 17.d Packet Pg. 640 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -6- be associated with any required environmental remediation described herein, that must be completed before City will issue building permits for the Property. 2.11.1 Seller commissioned the following environmental assessments for the Site, which included the City-owned portion of the 5th Street Gateway Property (together known as the “5th Street Gateway Parcels”), conducted by Ninyo and Moore: Phase I Environmental Site Assessment Report dated July 11, 2019; Limited Phase II Environmental Site Assessment dated August 26, 2020 and Additional Limited Phase II Environmental Site Assessment dated February 9, 2021. In response to those environmental assessments, Buyer estimated that the total cost for required environmental remediation and any removal of Hazardous Substances from the 5th Street Gateway Parcels would be One Hundred Forty-Two Thousand Eight Hundred and Fifty Dollars ($142,850.00) with an accompanying 20% contingency of Twenty Eight Thousand Five Hundred and Seventy Dollars ($28,570.00). Thus, the total estimated figure for environmental remediation is expected to be One Hundred Seventy- One Thousand Four Hundred and Twenty Dollars ($171,420.00) (“Total Estimated Remediation Cost”). In exchange for Buyer completing the required environmental remediation for the 5th Street Gateway Parcels, Seller shall reduce the Purchase Price by the Total Estimated Remediation Cost. 2.11.2 Buyer is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., and California Code of Regulations, Title 8, Section 16000, et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). Buyer acknowledges that Buyer alone shall assume any and all responsibility relating to, and be solely responsible for, determining whether or not Prevailing Wage Laws must be compiled with for purposes of any environmental remediation required by this Section 2.11. Buyer shall defend, indemnify and hold the Seller, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws for purposes of any environmental remediation required by this Section 2.11. 2.11.3 “Hazardous Substances” for purposes of this Section 2.11 shall mean any flammable substance, explosive, radioactive material, asbestos, asbestos-containing material, polychlorinated biphenyl, chemical known to cause cancer or reproductive toxicity, pollutant, contaminant, hazardous waste, medical wastes, toxic substance or related material, explosive, petroleum, petroleum product or any “hazardous” or “toxic” material, substance or waste that is defined by those or similar terms or is regulated as such under any law, including any material, substance or waste that is: (a) defined as a “hazardous substance” under Section 311 of the Water Pollution Control Act (33 U.S.C. § 1317), as amended; (b) designated as “hazardous substances” pursuant to 33 U.S.C. § 1321; (c) defined as a “hazardous waste” under Section 1004 of the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901, et seq., as amended; (d) defined as a “hazardous substance” or “hazardous waste” under Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Reauthorization Act of 1986, 42 U.S.C. § 9601, et seq., or any so- called “superfund” or “superlien” law; (e) defined as a “pollutant” or “contaminant” under 42 U.S.C. § 9601(33); (f) defined as “hazardous waste” under 40 C.F.R. Part 260; (g) defined as a “hazardous chemical” under 29 C.F.R. Part 1910; (h) any matter within the definition of 17.d Packet Pg. 641 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -7- “hazardous substance” set forth in 15 U.S.C. § 1262; (i) any matter, waste or substance regulated under the Toxic Substances Control Act (“TSCA”) [15 U.S.C. Sections 2601, et seq.]; (j) any matter, waste or substance regulated under the Hazardous Materials Transportation Act, 49 U.S.C. Sections 1801, et seq.; (k) those substances listed in the United States Department of Transportation (DOT)Table [49 C.F.R. 172.101]; (l) any matter, waste or substances designated by the EPA, or any successor authority, as a hazardous substance [40 C.F.R. Part 302]; (m) defined as “hazardous waste” in Section 25117 of the California Health and Safety Code; (n) defined as a “hazardous substance” in Section 25316 of the California Health and Safety Code; (o) that is subject to any other Law regulating or imposing obligations, liability or standards of conduct concerning protection of human health, plant life, animal life, natural resources, property or the enjoyment of life or property free from the presence in the environment of any solid, liquid, gas, odor or any form of energy from whatever source; or (p) that is or becomes regulated or classified as hazardous or toxic under law or in the regulations adopted pursuant to law. 2.12 Notices. All communications from Escrow Holder to either Buyer or Seller shall be directed to the addresses and in the manner established in Section 7.1 for notices, demands and communications between the Buyer and Seller. 2.13 Facsimile/Counterpart Documents. In the event Buyer or Seller utilizes “facsimile,” “pdf” or electronically transmitted signed documents, the Parties hereby agree to accept and instruct Escrow Holder to rely upon such documents as if they bore original signatures. Buyer and Seller hereby acknowledge and agree to provide to Escrow Holder, within seventy-two (72) hours after transmission, such documents bearing the original signatures. Buyer and Seller further acknowledge and agree that facsimile documents bearing non-original signatures will not be accepted for recording and that the Parties will provide originally executed documents to Escrow Holder for such purpose. Escrow Holder is authorized to utilize documents which have been signed by Buyer and Seller in counterparts. 3. TITLE. 3.1 Title Report. Within five (5) calendar days following the Opening Date, Seller shall obtain from Title Company a preliminary report for the Property from Commonwealth Land Title, 888 S. Figueroa St., Ste. 2100, Los Angeles, CA 90017 (“Title Company”), together with the underlying documents relating to any exceptions set forth in such report (collectively, the “Title Report”). 3.2 Title Policy; Permitted Exceptions. It is a condition to the Close of Escrow for Buyer’s benefit that title to the Property and the right to possession to any portion of the Property shall be subject only to the Permitted Exceptions (defined below), as evidenced by the receipt by Escrow Holder prior to the Closing Date of an irrevocable commitment from Title Company to issue to Buyer upon Close of Escrow the Title Policy (defined above) in an amount equal to the Purchase Price, showing title to the Property vested in Buyer, subject only to: (i) a lien to secure payment of general and special real property taxes and assessments, not delinquent; and (ii) other exceptions to title disclosed by the Title Report that have been approved in writing by Buyer prior to the Close of Escrow (collectively, the “Permitted Exceptions”), and containing such endorsements and affirmative coverage as Buyer may 17.d Packet Pg. 642 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -8- require. In the event Escrow Holder has not received such irrevocable commitment prior to the Closing Date, then Buyer may terminate this Agreement as provided in Section 6.1. 3.3 Inspections. During the Inspection Period, with reasonable advance written notice (no less than forty-eight (48) hours) to Seller, which written notice shall describe in reasonable detail the nature and scope of Buyer’s proposed inspections, Buyer, its agents, representatives and consultants may enter onto the Property during reasonable business hours to perform inspections and tests of the Property. All such tests and inspections will be at Buyer’s sole cost. Buyer will defend, indemnify and hold Seller free and harmless from and against any and all claims, damages and liabilities with respect to Buyer’s exercise of this right of entry (but excluding the mere discovery of hazardous materials or other adverse conditions relating to the Property) and will keep the Property free from mechanics lien claims. Buyer’s indemnity obligations as set forth herein will survive termination of this Agreement. 3.4 Casualty and Condemnation. If, at any time between the Effective Date and Closing (inclusive), all or any substantial portion of the Property is damaged by casualty or condemned by any legally constituted authority for any public use or purpose, then either party may terminate this Agreement, in which event Escrow Holder shall immediately refund to Buyer all Earnest Money, minus any reasonable escrow expenses or other expenses that have been performed and designated to be paid through escrow, and neither Buyer nor Seller shall have any further liabilities, obligations or rights with regard to this Agreement (except for matters that by the express terms hereof survive termination). 3.5 Assignment. Seller shall not assign its interest hereunder without the prior written consent of Buyer, except that Seller may assign its interest in this Agreement in connection with a conveyance of the Property to any entity owned and controlled by Seller, provided and so long as (i) the transfer of the Property is expressly subject to this Agreement and any such transferee assumes in writing the obligations of Seller hereunder and acknowledges and agrees that it is bound by and subject to this Agreement with respect to the Property, and (ii) no such transfer shall release Seller of its primary liability hereunder. 4. SELLER’S REPRESENTATIONS AND WARRANTIES. Seller hereby represents and warrants to Buyer that the following statements are true and correct as of the Effective Date, and shall be true and correct as of the Close of Escrow, and the truth and accuracy of such statements shall constitute a condition precedent to all of Buyer’s obligations under this Agreement: 4.1 Seller’s Authority. Seller has full legal right, power and authority to enter into this Agreement and the instruments and documents referenced herein and to consummate the transaction contemplated hereby, subject to successful conveyance of the Property to the Seller. For purposes of this Agreement, the term “to the best of Seller’s knowledge” or “to the Seller’s knowledge” shall mean the actual knowledge of the City Manager of the City of San Bernardino. 4.2 No Breach. The execution and delivery of this Agreement by Seller, Seller’s performance hereunder, and the consummation of the transaction contemplated hereby 17.d Packet Pg. 643 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -9- will not constitute a violation of any order or decree or result in the breach of any contract or agreement to which Seller is at present a party or by which Seller is bound. 4.3 No Litigation. To Seller’s knowledge, no litigation or condemnation and no governmental, administrative or regulatory act or proceeding regarding the Property is pending, proposed or threatened. 4.4 No Possessory Interests; No Further Agreements or Undertakings. Other than what is shown in the Title Report, to Seller’s current actual knowledge, there are no agreements for occupancy in effect with respect to the Property and no unrecorded possessory interests or unrecorded agreements that would adversely affect Buyer’s title to or use of the Property. Seller shall not enter into any agreements nor undertake any obligations prior to Close of Escrow that would in any way burden, encumber or otherwise affect the Property, including, without limitation, any agreements for occupancy with respect to the Property or any portion thereof. 4.5 Hazardous Materials and/or Hazardous Substances. Seller is aware of its obligation under California Health and Safety Code Section 25359.7 to disclose any information it may have regarding any release of “Hazardous Materials and/or Hazardous Substances” (as defined by applicable federal, state and local statutes, rules and regulations) upon or under the Property. Seller is not aware of any Hazardous Materials and/or Hazardous Substances that have been used, generated, manufactured, stored, transported to or from, or disposed of on, under or about the Property or any other adjoining property owned by Seller. 4.6 Survival of Covenants, Representations and Warranties. The covenants, representations and warranties contained in this Section 4 shall survive recordation of the Grant Deed and the Close of Escrow. 5. ACKNOWLEDGMENT OF FULL SATISFACTION AND RELEASE. 5.1 Waiver and Release. By execution of this Agreement, Buyer, on behalf of itself and its successors and assigns, and except for any breach by Seller of its express covenants, representations and warranties herein, waives and releases Seller and its successors and assigns from any and all costs or expenses whatsoever (including, without limitation, attorneys’ fees and costs), whether direct or indirect, known or unknown, foreseen or unforeseen, arising from or relating to the physical condition of the Property, the condition of the soils, the suitability of the soils for the intended improvement or use of the Property by Buyer, or any law or regulation applicable thereto, including the presence or alleged presence of harmful or hazardous substances in, at, on, above, under, from or about the Property including, without limitation, any claims under or on account of (i) CERCLA and similar statutes and any regulations promulgated thereunder or (ii) any other environmental laws. 5.2 Buyer expressly waives any rights or benefits available to it with respect to the foregoing release under any provision of applicable law which generally provides that a general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time the release is agreed to, which, if known to such creditor, would materially affect a settlement. By execution of this Agreement, Buyer acknowledges that it fully 17.d Packet Pg. 644 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -10- understands the foregoing, and with this understanding, nonetheless elects to and does assume all risk for claims known or unknown, without limiting the generality of the foregoing: 5.2.1 The undersigned on behalf of Buyer acknowledges that it has been advised by legal counsel and is familiar with the provisions of California Civil Code Section 1542, which provides as follows: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASING PARTY.” The undersigned, being aware of this Code Section, hereby expressly waives any rights it may have thereunder, as well as under any other statutes or common law principles of similar effect. Initials of Buyer: 5.3 Survival of Acknowledgments, Releases and Waiver. The acknowledgments, releases and waivers of Seller in this Article 5 shall survive recordation of the Grant Deed and the Close of Escrow. 6. TERMINATION, DEFAULTS, REMEDIES. 6.1 Exercise of Rights to Terminate. In the event Buyer or Seller elects to exercise its rights to terminate this Agreement and the Escrow as provided in this Agreement, then Buyer or Seller, as applicable, may so terminate by giving notice, in writing, prior to the Close of Escrow, of such termination to the other Party and Escrow Holder. In such event, the Party so terminating shall pay all Escrow Holder and Title Company termination fees and charges (collectively, “Termination Costs”). Upon such termination, all obligations and liabilities of the Parties under this Agreement, except for the obligation of the Party so terminating to pay Termination Costs as provided herein, and excepting for the obligations under this Agreement that expressly survive any termination of this Agreement, shall cease and terminate. 6.2 Buyer’s Breach. In the event Buyer breaches any obligation hereunder which Buyer is to perform prior to the Close of Escrow, and fails to cure such breach within a reasonable period of time following written notice from Seller, then Seller, as remedy, may either a) terminate this Agreement and the Escrow by giving notice, in writing, or b) initiate action of specific performance prior to the Close of Escrow, of such termination to Buyer and Escrow Holder. In such event, Buyer shall pay all Termination Costs. Upon such termination, all obligations and liabilities of the Parties under this Agreement, excepting for the obligation of the Buyer to pay Termination Costs as provided herein, and excepting for the obligations under this Agreement that expressly survive any termination of this Agreement, shall cease and terminate. 17.d Packet Pg. 645 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -11- 6.3 Seller’s Breach. In the event Seller breaches any obligation hereunder which Seller is to perform prior to the Close of Escrow, and fails to cure such breach within a reasonable period of time following written notice from Buyer, then Buyer may, at Buyer’s option, (i) terminate this Agreement and the Escrow by giving notice, in writing, prior to Close of Escrow, of such termination to Seller and Escrow Holder; or (ii) initiate an action for specific performance of this Agreement. Should Buyer elect to terminate this Agreement and the Escrow as provided herein, then Seller shall pay all Termination Costs. Upon such termination, all obligations and liabilities of the Parties under this Agreement, except for the obligation of the Seller to pay Termination Costs as provided herein, and except for the obligations under this Agreement that expressly survive any termination of this Agreement, shall cease and terminate. 6.4 Return of Funds and Documents; Release of Liability as to Escrow Holder In the event Escrow Holder terminates the Escrow as a result of having received notice, in writing, from Buyer or Seller of its election to terminate the Escrow as provided in this Article 6, then Escrow Holder shall terminate the Escrow and return all funds, less Termination Costs, as appropriate, and documents to the Party depositing the same. Further, the Parties shall hereby release Escrow Holder, and shall hold Escrow Holder free and harmless, from all liabilities associated with such termination except for Escrow Holder’s obligations to return funds and documents as provided herein. It is expressly agreed that the provisions of this Section 6.4 shall survive any termination of this Agreement. 7. OTHER 7.1 Notices and Demands. All notices or other communications required or permitted between the Parties hereunder shall be in writing, and shall be (i) personally delivered, (ii) sent by United States registered or certified mail, postage prepaid, return receipt requested, (iii) sent by facsimile transmission with confirmation of receipt, (iv) sent by electronic mail with confirmation of receipt or (v) sent by nationally recognized overnight courier service (e.g., Federal Express or United Parcel Service), addressed to the Party to whom the notice is given at the addresses provided below, subject to the right of any Party to designate a different address for itself by notice similarly given. Any Party who gives notice by facsimile or electronic mail, shall send a hard copy of the notice by first class mail (not certified) within 24 hours following sending the facsimile. Any notice so given by registered or certified United States mail shall be deemed to have been given on the third business day after the same is deposited in the United States mail. Any notice not so given by registered or certified mail, such as notices delivered by personal delivery, facsimile transmission or courier service, shall be deemed given upon receipt, rejection or refusal of the same by the Party to whom the notice is given. Rejection or other refusal to accept notice, or the inability to deliver notice because of a changed address of which no notice was given, shall be deemed to constitute receipt of the notice or other communication sent. To Seller: City of San Bernardino Attention: City Manager 290 N. “D” Street, Third Floor San Bernardino, California 92401 (T) 909-384-5122 (F) 909-384-5138 17.d Packet Pg. 646 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -12- With a copy to: Best Best & Krieger, LLP 18101 Von Karman Ave., Suite 1000 Irvine, CA 92614 Attention: Elizabeth Hull (T) 949-263-2600 (F) 949-260-0972 To Buyer: GATEWAY SB, LLC, a limited liability company. Attention: Jian Torkan 4221 Wilshire Blvd., Ste. 380 Los Angeles, CA 90010 Email: jtorkan@icoreg.com Telephone: (323) 932-7777 With a copy to: Steven C. Wellington, Esq. 3005 Corte Baldre Carlsbad, CA 92009 Email: swellington@wellington-law.com Telephone: (760) 487-5211 If to Escrow Holder: Commonwealth Land Title Attn: Crystal Leyvas 888 S. Figueroa St, Suite 2100 Los Angeles, CA 90017 (T) 909-921-2622 (F) 213-947-4324 7.2 Indemnity by Buyer. Buyer shall, at Buyer’s sole cost and expense, indemnify, protect and defend (with counsel reasonably agreeable to Seller) and hold Seller, its officers and/or directors and its successors and assigns, harmless from and against any and all claims, liabilities, obligations, losses, damages, costs and expenses of any kind or nature whatsoever, including, without limitation, reasonable attorney’s fees, court costs and litigation expenses, that Buyer may reasonably incur or sustain by reason of or in connection with (i) Buyer’s ownership or operation of the Property after the Close of Escrow, (ii) the use after the Close of Escrow of the Property by Buyer or any third party, including, without limitation, any tenant, invitee or licensee of Buyer, (iii) any breach of any covenant, agreement, representation or warranty of Buyer contained in this Agreement; (iv) the presence, use, handling, storage, disposal or release after the Close of Escrow of Hazardous Materials and/or Hazardous Substances on, under or about the Property caused by Buyer; and (v) the Buyer’s violation of any federal, state or local law, ordinance or regulation, occurring or allegedly occurring with respect to the Property after the Close of Escrow. This indemnity by Buyer herein contained shall survive recordation of the Grand Deed and the Close of Escrow. 7.3 Possession; Risk of Loss. Buyer shall be entitled to sole possession of the Property immediately upon Close of Escrow. All risk of loss or damage to the Property will pass from the Seller to the Buyer at the Close of Escrow. In the event that material loss or damage occurs to the Property, or any portion thereof, prior to the Close of Escrow, Buyer may elect to terminate this Agreement as provided in Section 6.1. 17.d Packet Pg. 647 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -13- 7.4 Brokers and Sales Commissions. Buyer represents and warrants to the Seller that no broker, agent or finder has been engaged by them in connection with the transaction described in this Agreement. Buyer and Seller agree to indemnify one another against any claim, suits, damages and costs incurred or resulting from the claims of any person for any fee or compensation due in connection with this transaction pursuant to a written agreement made with said claimant. 8. MISCELLANEOUS 8.1 Required Actions of Buyer and Seller. Buyer and Seller agree to execute such instruments and documents and to diligently undertake such actions as may be required in order to consummate the transaction herein contemplated and shall use their best efforts to accomplish the Close of Escrow in accordance with the provisions hereof. 8.2 Time of Essence. Time is of the essence of each and every term, condition, obligation and provision hereof. 8.3 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument. 8.4 Captions. Any captions to, or headings of, the paragraphs or subparagraphs of this Agreement are solely for the convenience of the Parties, are not a part of this Agreement, and shall not be used for the interpretation or determination of the validity of this Agreement or any provision hereof. 8.5 No Obligations to Third Parties. Except as otherwise expressly provided herein, the execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate any of the Parties to, any person or entity other than the Parties. 8.6 Waiver. The waiver or failure to enforce any provision of this Agreement shall not operate as a waiver of any future breach of any such provision or any other provision hereof. 8.7 Applicable Law. All questions with respect to this Agreement, and the rights and liabilities of the Parties and venue hereto, shall be governed by the laws of the State of California, without application of conflicts of law principles. Any and all legal actions sought to enforce the terms and provisions of the Agreement shall be brought in the courts of the County of San Bernardino. 8.8 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the voluntary and involuntary successors and assigns of the Parties hereto. 8.9 Severability. If any term or provision of this Agreement shall be held invalid or unenforceable, the remainder of this Agreement shall not be affected. 8.10 Construction. This Agreement will be liberally construed to effectuate the intention of the Parties with respect to the transaction described herein. In determining the 17.d Packet Pg. 648 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -14- meaning of, or resolving any ambiguity with respect to, any word, phrase or provision of this Agreement, neither this Agreement nor any uncertainty or ambiguity herein will be construed or resolved against either Party (including the Party primarily responsible for drafting and preparation of this Agreement), under any rule of construction or otherwise, it being expressly understood and agreed that the Parties have participated equally or have had equal opportunity to participate in the drafting thereof. 8.11 Legal Fees. Each Party shall be responsible for payment of its own attorney’s fees and expenses with respect to negotiation and preparation of this Agreement and processing of the Escrow. In the event any action is brought to enforce or interpret any of the provisions of this Agreement, the prevailing Party in such action or proceeding, shall be entitled to have and recover its reasonable attorney’s fees and expenses. 8.12 Exhibits. The exhibits attached hereto are hereby incorporated herein by this reference. 8.13 Entire Agreement. This Agreement supersedes any prior agreements, negotiations and communications, and contains the entire agreement between Buyer and Seller as to the subject matter hereof. No subsequent agreement, representation, or promise made by either Party hereto, shall be of any effect unless it is in writing and executed by the Party to be bound thereby. 8.14 Amendment to this Agreement. The terms of this Agreement may not be modified or amended except by an instrument in writing executed by each of the Parties hereto. [Signatures on following page] 17.d Packet Pg. 649 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 -15- SELLER: City of San Bernardino acting in the capacity as the Successor Housing Agency of the Redevelopment Agency of the City of San Bernardino . By: Name: Robert D. Field Title: City Manager Date of Execution by Seller: _______________ BUYER: GATEWAY SB, LLC, a limited liability company By: Name: Title: Date of Execution by Buyer: _______________ Acceptance by Escrow Holder: Commonwealth Land Title hereby acknowledges that it has received a fully executed counterpart of the foregoing Real Property Purchase and Joint Escrow Instructions and agrees to act as Escrow Holder hereunder and to be bound by and perform the terms thereof as such terms apply to Escrow Holder. Dated:___________________ COMMONWEALTH LAND TITLE By: Name: Its: 17.d Packet Pg. 650 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 EXHIBIT “A” LEGAL DESCRIPTION AND DEPICTION OF PROPERTY ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL A Parcel No. 1: THAT PORTION OF LOT 2, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 75 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE EAST 70 FEET; THENCE NORTH 150 FEET; THENCE WEST 70 FEET; THENCE SOUTH 150 FEET TO THE POINT OF BEGINNING. PARCEL NO. 2: A PORTION OF LOTS 1 AND 2, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 70 FEET WEST OF THE SOUTHEAST CORNER OF LOT 1; THENCE WEST ON THE SOUTH LINE OF SAID BLOCK 85 FEET, MORE OR LESS, TO A POINT 145 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH 150 FEET; THENCE EAST 85 FEET, MORE OR LESS, TO A POINT 70 FEET WEST OF THE EAST LINE OF SAID LOT 1; THENCE SOUTH 150 FEET TO THE POINT OF BEGINNING. EXCEPTING ANY PORTION LYING WITHIN THE EAST 140 FEET TO THE NORTH 150 FEET OF SAID LOT 1. PARCEL NO. 3: THAT PORTION OF LOT 1, BLOCK 39, ACCORDING TO MAP OF THE IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF LOT 1; THENCE WEST 70 FEET; THENCE NORTH 150 FEET, MORE OR LESS, TO THE LAND CONVEYED TO AUG WEINMAN, BY DEED RECORDED IN BOOK 52 OF DEEDS, PAGE 278, RECORDS OF SAID COUNTY; THENCE EAST ALONG THE SOUTH LINE OF SAID LAND SO CONVEYED TO SAID WEINMAN, 70 FEET TO THE EAST LINE OF SAID LOT; THENCE SOUTH 150 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. (APNs 0134-054-24) 17.d Packet Pg. 651 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 PARCEL B Parcel No 1: THAT PORTION OF LOT 4, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID LOT 4; THENCE NORTH 136 FEET; THENCE WEST 50 FEET; THENCE SOUTH 136 FEET; THENCE EAST 50 FEET TO THE POINT OF BEGINNING. Parcel No 2: ALL THAT PORTION OF LOT 4, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 4; THENCE NORTH ALONG THE WEST LINE OF SAID LOT, 167 FEET, MORE OR LESS, TO A POINT 131 FEET SOUTH OF THE NORTH LINE OF SAID LOT; THENCE EAST 100 FEET, MORE OR LESS, TO A POINT 48 FEET WEST OF THE EAST LINE OF SAID LOT 4; THENCE SOUTH TO A POINT 136 FEET NORTH OF THE SOUTH LINE OF SAID LOT; THENCE WEST 2 FEET; THENCE SOUTH 136 FEET TO THE SOUTH LINE OF SAID LOT 4; THENCE WEST TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THE NORTH 50 FEET THEREOF (APN: 134-054-25) PARCEL C Parcel 1: All that portion of the East half of Lot 3, Block 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 3; THENCE NORTH ALONG THE EAST LINE OF SAID LOT, 180 FEET, MORE OR LESS, TO A POINT 120 FEET SOUTH OF THE NORTHEAST CORNER OF SAID LOT; THENCE WEST AT RIGHT ANGLES A DISTANCE OF 75 FEET, MORE OR LESS, TO THE WEST LINE OF THE EAST HALF OF SAID LOT 3; THENCE SOUTH ALONG SAID LAST NAMED LINE, A DISTANCE OF 180 FEET, MORE OR LESS, TO A POINT IN THE SOUTH LINE OF SAID LOT 3; THENCE EAST 75 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. Parcel 2: 17.d Packet Pg. 652 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 ALL THAT PORTION OF LOT 3, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 3; THENCE NORTH 145 FEET; THENCE EAST 75 FEET, MORE OR LESS, TO A POINT MIDWAY BETWEEN THE EAST AND WEST LINE OF SAID LOT 3; THENCE SOUTH 145 FEET TO THE SOUTH OF SAID LAND; THENCE WEST 75 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. (APN: 134-054-26) PARCEL D THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 139 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE RUNNING WEST 41-1/2 FEET; THENCE NORTH 150 FEET TO THE NORTH LINE OF SAID LOT 2; THENCE EAST 41-1/2 FEET; THENCE SOUTH 150 FEET TO THE POINT OF BEGINNING. (APN: 134-061-21) PARCEL E Parcel 1: THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 180-1/2 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE NORTH TO THE NORTH LINE OF SAID LOT; THENCE WEST 39 FEET; THENCE SOUTH TO THE SOUTH LINE OF SAID LOT; THENCE EAST 39 FEET TO THE POINT OF BEGINNING. Parcel 2: THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 219-1/2 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE NORTH 100 FEET; THENCE WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE NORTH 100 FEET; THENCE WEST 39 FEET, MORE OR LESS, TO A POINT 42 FEET EAST OF THE WEST LINE OF SAID LOT; 17.d Packet Pg. 653 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 THENCE SOUTH 100 FEET TO THE SOUTH LINE OF SAID LOT; THENCE EAST 39 FEET TO THE POINT OF BEGINNING. Parcel 3: THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH ALONG THE WEST LINE OF SAID LOT, 100 FEET; THENCE EAST 42 FEET; THENCE SOUTH AND PARALLEL WITH THE WEST LINE OF SAID LOT 2 A DISTANCE OF 100 FEET, TO THE SOUTH LINE OF SAID LOT; THENCE WEST ALONG THE SOUTH LINE TO THE POINT OF BEGINNING. (APN: 134-061-22, -30) PARCEL F THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID LOT 2; THENCE RUNNING SOUTH ALONG “G” STREET, 50 FEET TO A POINT 100 FEET NORTH OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE EAST 81 FEET, MORE OR LESS, TO A POINT 219-1/2 FEET WEST OF THE EAST LINE OF SAID LOT; THENCE NORTH TO THE NORTH LINE OF SAID LOT; THENCE WEST ALONG THE NORTH LINE OF SAID LOT TO PLACE OF BEGINNING. (APN: 134-061-25) PARCEL G Parcel 1: THAT PORTION OF LOTS 6 AND 7, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 6; THENCE SOUTH 0˚ 2-½’ WEST ALONG THE WEST LINE OF SAID LOTS 6 AND 7, 299.78 FEET, TO THE SOUTHWEST CORNER OF SAID LOT 7; THENCE SOUTH 89˚ 44-½’ EAST, ALONG THE SOUTH LINE OF SAID LOT 7, 97.32 FEET, MORE OR LESS TO A POINT ON THE SOUTH LINE WHICH IS 201 FEET FROM THE SOUTHEAST CORNER OF SAID LOT 7; THENCE NORTH AND PARALLEL WITH THE EAST LINE OF LOTS 7 AND 6, 170 FEET; MORE OR LESS, TO A POINT 20 FEET NORTH OF THE SOUTH LINE OF SAID LOT 6; THENCE SOUTH 89˚42-½’ EAST, 1 FOOT TO A POINT WHICH IS 200 FEET WEST OF THE EAST LINE OF LOT 6; THENCE NORTH AND PARALLEL WITH THE EAST LINE OF SAID LOT 6, 60.34 FEET; THENCE NORTH 89˚ 41’ WEST 2.45 FEET; 17.d Packet Pg. 654 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 THENCE NORTH AND PARALLEL WITH THE EAST LINE OF SAID LOT 6, 69.30 FEET, TO THE NORTH LINE OF SAID LOT 6; THENCE NORTH 89˚ 41’ WEST, ALONG THE NORTH LINE OF SAID LOT 6, 95.63 FEET, MORE OR LESS TO THE POINT OF BEGINNING. Parcel 2: THAT PORTION OF LOT 6, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT WHICH IS NORTH 89˚ 41’ WEST 200 FEET AND SOUTH 69.30 FEET FROM THE NORTHEAST CORNER OF SAID LOT 6; THENCE SOUTH 89˚ 41’ EAST, 53.55 FEET; THENCE SOUTH 60.10 FEET, MORE OR LESS, TO A POINT WHICH IS 20 FEET NORTH OF THE SOUTH LINE AND 146.45 FEET WEST OF THE EAST LINE OF SAID LOT 6; THENCE NORTH 89˚ 42’ WEST 53.55 FEET; THENCE NORTH 60.34 FEET, TO THE POINT OF BEGINNING. (APN: 0134-093-05, -06) PARCEL H THAT PORTION OF LOTS 5 AND 6, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE NORTH LINE OF LOT 6, 20 FEET EAST OF THE NORTHWEST CORNER THEREOF; THENCE WEST 50 FEET; THENCE SOUTH 148 FEET 8 INCHES; THENCE EAST 50 FEET; THENCE NORTH TO THE POINT OF BEGINNING. (APN: 0134-101-02) PARCEL I PORTION OF LOT 6, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTH LINE OF SAID LOT 6, 20 FEET EAST OF THE NORTHWEST CORNER THEREOF; THENCE EAST 40 FEET; THENCE SOUTH 148 FEET 8 INCHES TO A POINT 150 FEET NORTH OF THE SOUTH LINE OF SAID LOT; THENCE WEST 40 FEET; THENCE NORTH 148 FEET 8 INCHES TO THE POINT OF BEGINNING. (APN 0134-101-03) 17.d Packet Pg. 655 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 PARCEL J PORTION OF LOT 6, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTH LINE OF SAID LOT 6, 60 FEET EAST OF THE NORTHWEST CORNER THEREOF; THENCE EAST 50 FEET; THENCE SOUTH 148 FEET 8 INCHES, MORE OR LESS, TO A POINT 150 FEET SOUTH OF THE NORTH LINE OF SAID LOT; THENCE WEST 50 FEET; THENCE NORTH 148 FEET 8 INCHES, MORE OR LESS, TO THE POINT OF BEGINNING. (APN 0134-101-04) PARCEL K PORTIONS OF LOTS 6 AND 7, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT IN THE NORTH LINE OF SAID BLOCK, 270 FEET WEST OF THE NORTHEAST CORNER OF SAID BLOCK; THENCE WEST ALONG THE NORTH LINE OF SAID BLOCK, 70 FEET, MORE OR LESS TO A POINT 110 FEET EAST OF THE NORTHWEST CORNER OF LOT 6, IN SAID BLOCK; THENCE SOUTH 150 FEET, MORE OR LESS, TO A POINT 135 FEET NORTH OF THE NORTH LINE OF AN ALLEY RUNNING EAST AND WEST THROUGH SAID BLOCK FORMERLY KNOWN AS PEARL ALLEY AND NOW CALLED KINGMAN STREET; THENCE EAST 70 FEET, MORE OR LESS, TO A POINT 270 FEET WEST OF THE EAST LINE OF SAID BLOCK; THENCE NORTH 150 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. (APN 0134-101-05) PARCEL L THAT PORTION OF LOT 7, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE SOUTH SIDE OF FIFTH STREET, IN THE CITY OF SAN BERNARDINO, 220 FEET WEST OF THE NORTHEAST CORNER OF LOT 8, IN SAID BLOCK 27 THENCE WEST 50 FEET; THENCE 148 FEET; THENCE EAST 50 FEET; THENCE NORTH 148 FEET TO THE POINT OF BEGINNING; (APN 0134-101-06) 17.d Packet Pg. 656 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 PARCEL M THAT PORTION OF LOTS 5, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID LOT; THENCE SOUTH 150 FEET; THENCE EAST 120 FEET; THENCE NORTH 150 FEET; THENCE WEST 120 FEET TO THE TRUE POINT OF BEGINNING. (APN 0134-101-28) 17.d Packet Pg. 657 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 EXHIBIT “B” GRANT DEED - NOT FOR SIGNATURE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: GATEWAY SB, LLC, a limited liability company Attention: Jian Torkan, CEO 4221 Wilshire Blvd., Ste. 380 Los Angeles, CA 90010 APNs: 0134-054-24, -25, -26 0134-061-21, -22, -25, -30 0134-093-05, -06 0134-101-02, -03, -04, -05, 06, -28 [Space above for recorder.] DOCUMENTARY TRANSFER TAX $ computed on the consideration or value of property conveyed; OR computed on the consideration or value less liens or encumbrances remaining at time of sale. Signature of Declarant or Agent determining tax - Firm Name GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, the CITY OF SAN BERNARDINO ACTING IN THE CAPACITY AS THE SUCCESSOR HOUSING AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public entity, corporate and politic (“Grantor”), hereby grants to GATEWAY SB, LLC, a limited liability company (“Grantee”), all right, title and interest in and to that certain real property located in the City of San Bernardino, County of San Bernardino, State of California, more particularly described on Attachment No. 1 attached hereto and incorporated herein by this reference (the “Property”), subject to existing easements, restrictions and covenants of record. IN WITNESS WHEREOF, Grantor has executed this Grant Deed as of , 2020. CITY OF SAN BERNARDINO ACTING IN THE CAPACITY AS THE SUCCESSOR HOUSING AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: NOT FOR SIGNATURE Robert D. Field City Manager 17.d Packet Pg. 658 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 ATTACHMENT NO. 1 TO GRANT DEED LEGAL DESCRIPTION PARCEL A Parcel No. 1: THAT PORTION OF LOT 2, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 75 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE EAST 70 FEET; THENCE NORTH 150 FEET; THENCE WEST 70 FEET; THENCE SOUTH 150 FEET TO THE POINT OF BEGINNING. PARCEL NO. 2: A PORTION OF LOTS 1 AND 2, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 70 FEET WEST OF THE SOUTHEAST CORNER OF LOT 1; THENCE WEST ON THE SOUTH LINE OF SAID BLOCK 85 FEET, MORE OR LESS, TO A POINT 145 FEET EAST OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH 150 FEET; THENCE EAST 85 FEET, MORE OR LESS, TO A POINT 70 FEET WEST OF THE EAST LINE OF SAID LOT 1; THENCE SOUTH 150 FEET TO THE POINT OF BEGINNING. EXCEPTING ANY PORTION LYING WITHIN THE EAST 140 FEET TO THE NORTH 150 FEET OF SAID LOT 1. PARCEL NO. 3: THAT PORTION OF LOT 1, BLOCK 39, ACCORDING TO MAP OF THE IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF LOT 1; THENCE WEST 70 FEET; THENCE NORTH 150 FEET, MORE OR LESS, TO THE LAND CONVEYED TO AUG WEINMAN, BY DEED RECORDED IN BOOK 52 OF DEEDS, PAGE 278, RECORDS OF SAID COUNTY; THENCE EAST ALONG THE SOUTH LINE OF SAID LAND SO CONVEYED TO SAID WEINMAN, 70 FEET TO THE EAST LINE OF SAID LOT; THENCE SOUTH 150 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. (APNs 0134-054-24) 17.d Packet Pg. 659 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 PARCEL B Parcel No 1: THAT PORTION OF LOT 4, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID LOT 4; THENCE NORTH 136 FEET; THENCE WEST 50 FEET; THENCE SOUTH 136 FEET; THENCE EAST 50 FEET TO THE POINT OF BEGINNING. Parcel No 2: ALL THAT PORTION OF LOT 4, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 4; THENCE NORTH ALONG THE WEST LINE OF SAID LOT, 167 FEET, MORE OR LESS, TO A POINT 131 FEET SOUTH OF THE NORTH LINE OF SAID LOT; THENCE EAST 100 FEET, MORE OR LESS, TO A POINT 48 FEET WEST OF THE EAST LINE OF SAID LOT 4; THENCE SOUTH TO A POINT 136 FEET NORTH OF THE SOUTH LINE OF SAID LOT; THENCE WEST 2 FEET; THENCE SOUTH 136 FEET TO THE SOUTH LINE OF SAID LOT 4; THENCE WEST TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THE NORTH 50 FEET THEREOF (APN: 134-054-25) PARCEL C Parcel 1: All that portion of the East half of Lot 3, Block 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT 3; THENCE NORTH ALONG THE EAST LINE OF SAID LOT, 180 FEET, MORE OR LESS, TO A POINT 120 FEET SOUTH OF THE NORTHEAST CORNER OF SAID LOT; THENCE WEST AT RIGHT ANGLES A DISTANCE OF 75 FEET, MORE OR LESS, TO THE WEST LINE OF THE EAST HALF OF SAID LOT 3; THENCE SOUTH ALONG SAID LAST NAMED LINE, A DISTANCE OF 180 FEET, MORE OR LESS, TO A POINT IN THE SOUTH LINE OF SAID LOT 3; THENCE EAST 75 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. 17.d Packet Pg. 660 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 Parcel 2: ALL THAT PORTION OF LOT 3, BLOCK 39, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID LOT 3; THENCE NORTH 145 FEET; THENCE EAST 75 FEET, MORE OR LESS, TO A POINT MIDWAY BETWEEN THE EAST AND WEST LINE OF SAID LOT 3; THENCE SOUTH 145 FEET TO THE SOUTH OF SAID LAND; THENCE WEST 75 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. (APN: 134-054-26) PARCEL D THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT 139 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE RUNNING WEST 41-1/2 FEET; THENCE NORTH 150 FEET TO THE NORTH LINE OF SAID LOT 2; THENCE EAST 41-1/2 FEET; THENCE SOUTH 150 FEET TO THE POINT OF BEGINNING. (APN: 134-061-21) PARCEL E Parcel 1: THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 180-1/2 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE NORTH TO THE NORTH LINE OF SAID LOT; THENCE WEST 39 FEET; THENCE SOUTH TO THE SOUTH LINE OF SAID LOT; THENCE EAST 39 FEET TO THE POINT OF BEGINNING. Parcel 2: THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT 219-1/2 FEET WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; THENCE NORTH 100 FEET; THENCE WEST OF THE SOUTHEAST CORNER OF SAID LOT 2; 17.d Packet Pg. 661 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 THENCE NORTH 100 FEET; THENCE WEST 39 FEET, MORE OR LESS, TO A POINT 42 FEET EAST OF THE WEST LINE OF SAID LOT; THENCE SOUTH 100 FEET TO THE SOUTH LINE OF SAID LOT; THENCE EAST 39 FEET TO THE POINT OF BEGINNING. Parcel 3: THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT 2; THENCE NORTH ALONG THE WEST LINE OF SAID LOT, 100 FEET; THENCE EAST 42 FEET; THENCE SOUTH AND PARALLEL WITH THE WEST LINE OF SAID LOT 2 A DISTANCE OF 100 FEET, TO THE SOUTH LINE OF SAID LOT; THENCE WEST ALONG THE SOUTH LINE TO THE POINT OF BEGINNING. (APN: 134-061-22, -30) PARCEL F THAT PORTION OF LOT 2, BLOCK 38, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID LOT 2; THENCE RUNNING SOUTH ALONG “G” STREET, 50 FEET TO A POINT 100 FEET NORTH OF THE SOUTHWEST CORNER OF SAID LOT 2; THENCE EAST 81 FEET, MORE OR LESS, TO A POINT 219-1/2 FEET WEST OF THE EAST LINE OF SAID LOT; THENCE NORTH TO THE NORTH LINE OF SAID LOT; THENCE WEST ALONG THE NORTH LINE OF SAID LOT TO PLACE OF BEGINNING. (APN: 134-061-25) PARCEL G Parcel 1: THAT PORTION OF LOTS 6 AND 7, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 6; THENCE SOUTH 0˚ 2-½’ WEST ALONG THE WEST LINE OF SAID LOTS 6 AND 7, 299.78 FEET, TO THE SOUTHWEST CORNER OF SAID LOT 7; THENCE SOUTH 89˚ 44-½’ EAST, ALONG THE SOUTH LINE OF SAID LOT 7, 97.32 FEET, MORE OR LESS TO A POINT ON THE SOUTH LINE WHICH IS 201 FEET FROM THE SOUTHEAST CORNER OF SAID LOT 7; THENCE NORTH AND PARALLEL WITH THE EAST LINE OF LOTS 7 AND 6, 170 FEET; MORE OR LESS, TO A POINT 20 FEET NORTH OF THE SOUTH LINE OF SAID LOT 6; 17.d Packet Pg. 662 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 THENCE SOUTH 89˚42-½’ EAST, 1 FOOT TO A POINT WHICH IS 200 FEET WEST OF THE EAST LINE OF LOT 6; THENCE NORTH AND PARALLEL WITH THE EAST LINE OF SAID LOT 6, 60.34 FEET; THENCE NORTH 89˚ 41’ WEST 2.45 FEET; THENCE NORTH AND PARALLEL WITH THE EAST LINE OF SAID LOT 6, 69.30 FEET, TO THE NORTH LINE OF SAID LOT 6; THENCE NORTH 89˚ 41’ WEST, ALONG THE NORTH LINE OF SAID LOT 6, 95.63 FEET, MORE OR LESS TO THE POINT OF BEGINNING. Parcel 2: THAT PORTION OF LOT 6, BLOCK 26, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT WHICH IS NORTH 89˚ 41’ WEST 200 FEET AND SOUTH 69.30 FEET FROM THE NORTHEAST CORNER OF SAID LOT 6; THENCE SOUTH 89˚ 41’ EAST, 53.55 FEET; THENCE SOUTH 60.10 FEET, MORE OR LESS, TO A POINT WHICH IS 20 FEET NORTH OF THE SOUTH LINE AND 146.45 FEET WEST OF THE EAST LINE OF SAID LOT 6; THENCE NORTH 89˚ 42’ WEST 53.55 FEET; THENCE NORTH 60.34 FEET, TO THE POINT OF BEGINNING. (APN: 0134-093-05, -06) PARCEL H THAT PORTION OF LOTS 5 AND 6, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE NORTH LINE OF LOT 6, 20 FEET EAST OF THE NORTHWEST CORNER THEREOF; THENCE WEST 50 FEET; THENCE SOUTH 148 FEET 8 INCHES; THENCE EAST 50 FEET; THENCE NORTH TO THE POINT OF BEGINNING. (APN: 0134-101-02) PARCEL I PORTION OF LOT 6, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTH LINE OF SAID LOT 6, 20 FEET EAST OF THE NORTHWEST CORNER THEREOF; THENCE EAST 40 FEET; THENCE SOUTH 148 FEET 8 INCHES TO A POINT 150 FEET NORTH OF THE SOUTH LINE OF SAID LOT; THENCE WEST 40 FEET; 17.d Packet Pg. 663 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 THENCE NORTH 148 FEET 8 INCHES TO THE POINT OF BEGINNING. (APN 0134-101-03) PARCEL J PORTION OF LOT 6, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTH LINE OF SAID LOT 6, 60 FEET EAST OF THE NORTHWEST CORNER THEREOF; THENCE EAST 50 FEET; THENCE SOUTH 148 FEET 8 INCHES, MORE OR LESS, TO A POINT 150 FEET SOUTH OF THE NORTH LINE OF SAID LOT; THENCE WEST 50 FEET; THENCE NORTH 148 FEET 8 INCHES, MORE OR LESS, TO THE POINT OF BEGINNING. (APN 0134-101-04) PARCEL K PORTIONS OF LOTS 6 AND 7, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT IN THE NORTH LINE OF SAID BLOCK, 270 FEET WEST OF THE NORTHEAST CORNER OF SAID BLOCK; THENCE WEST ALONG THE NORTH LINE OF SAID BLOCK, 70 FEET, MORE OR LESS TO A POINT 110 FEET EAST OF THE NORTHWEST CORNER OF LOT 6, IN SAID BLOCK; THENCE SOUTH 150 FEET, MORE OR LESS, TO A POINT 135 FEET NORTH OF THE NORTH LINE OF AN ALLEY RUNNING EAST AND WEST THROUGH SAID BLOCK FORMERLY KNOWN AS PEARL ALLEY AND NOW CALLED KINGMAN STREET; THENCE EAST 70 FEET, MORE OR LESS, TO A POINT 270 FEET WEST OF THE EAST LINE OF SAID BLOCK; THENCE NORTH 150 FEET, MORE OR LESS, TO THE POINT OF BEGINNING. (APN 0134-101-05) PARCEL L THAT PORTION OF LOT 7, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE SOUTH SIDE OF FIFTH STREET, IN THE CITY OF SAN BERNARDINO, 220 FEET WEST OF THE NORTHEAST CORNER OF LOT 8, IN SAID BLOCK 27 THENCE WEST 50 FEET; THENCE 148 FEET; 17.d Packet Pg. 664 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 THENCE EAST 50 FEET; THENCE NORTH 148 FEET TO THE POINT OF BEGINNING; (APN 0134-101-06) PARCEL M THAT PORTION OF LOTS 5, BLOCK 27, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 7, OF MAPS, PAGE 1, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID LOT; THENCE SOUTH 150 FEET; THENCE EAST 120 FEET; THENCE NORTH 150 FEET; THENCE WEST 120 FEET TO THE TRUE POINT OF BEGINNING. (APN 0134-101-28) 17.d Packet Pg. 665 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 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. STATE OF CALIFORNIA ) ) ss. COUNTY OF ____________ ) On _____________________________ , before me, __________________________________ , Notary Public, (Print Name of Notary Public) personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT Individual Corporate Officer ___________________________________________ Title(s) ___________________________________________ Title Or Type Of Document Partner(s) Limited General Attorney-In-Fact Trustee(s) Guardian/Conservator Other: _________________________________ Signer is representing: Name Of Person(s) Or Entity(ies) ___________________________________________ ___________________________________________ ___________________________________________ Number Of Pages ___________________________________________ Date Of Documents ___________________________________________ Signer(s) Other Than Named Above 17.d Packet Pg. 666 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) 55600.00801\32766607.9 EXHIBIT “C” SELLER’S CERTIFICATE CERTIFICATE OF NON-FOREIGN STATUS To inform GATEWAY SB, LLC, a limited liability company (“Transferee”), that withholding of tax under Section 1445 of the Internal Revenue Code of 1986, as amended (“Code”) will not be required by City of San Bernardino acting in the capacity as the Successor Housing Agency of the Redevelopment Agency of the City of San Bernardino, a public entity corporate and politic (“Transferor”), the undersigned hereby certifies the following on behalf of Transferor: 1. Transferor is not a foreign corporation, foreign partnership, foreign trust, foreign estate or foreign person (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder); 2. Transferor's U.S. employer or tax (social security) identification number is _____________________. 3. Transferor’s address is: City of San Bernardino City Manager’s Office 290 N. “D” Street – 3rd Floor San Bernardino, CA 92401 [4. Transferor is not a disregarded entity as defined in Section 1.1445- 2(b)(2)(iii) of the Code.] Transferor understands that this Certification may be disclosed to the Internal Revenue Service by Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both. Under penalty of perjury I declare that I have examined this Certification and to the best of my knowledge and belief it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of Transferor. City of San Bernardino By: Name: Robert D. Field Title: City Manager 17.d Packet Pg. 667 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) SUBSURFACE ENVIRONMENTAL SITE ASSESSMENT AND REMEDIATION PROPOSAL Commercial/Retail Property 5th Street Gateway Project - Sites D and E Southwest Corner of West 5th Street and North G Street Southeast Corner of West 5th Street and North G Street San Bernardino, California 92410 Prepared For: ICO Real Estate Group, Inc. 4221 Wilshire Boulevard, Suite #380 Los Angeles, California 90010 February 25, 2021 KCE-2019-200E-P3 Exhibit D 17.d Packet Pg. 668 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) KCE-2019-200E-P3 February 25, 2021 Page 1 of 4 I. INTRODUCTION This proposal has been prepared by KCE Matrix, Inc. (KCE Matrix) to perform subsurface environmental soil remediation work for the subject site via soil excavation and disposal. The subject property is located in a commercial/retail area in San Bernardino, California, on the southwest and southeast corners of the intersection of West 5th Street and North G Street. The client has provided KCE Matrix with the following reports prepared by Ninyo and Moore (NM) for the property: • Phase I Environmental Site Assessment (ESA) Report dated July 11, 2019 • Limited Phase II ESA report dated August 26, 2020 • Additional Limited Phase II ESA report dated February 9, 2021 The proposed scope of work is designed to perform subsurface soil remediation in the immediate vicinity of three exploratory boring/vapor probe locations (designated as B11, B14 and B17) at the subject property. The proposed scope of work is based on information provided by the client to KCE Matrix as presented above. II. PROPOSED WORK Based on the results of subsurface environmental site assessment and/or remediation work performed to date by NM, KCE Matrix proposes to excavate and dispose subsurface soil material in the vicinity of exploratory boring/vapor probe locations B11, B14 and B17 at the subject property as follows: • B11 Location – Approximately 15 feet by 15 feet by five feet in depth • B14 Location – Approximately 20 feet by 20 feet by 15 feet in depth • B17 Location – Approximately 20 feet by 20 feet by 15 feet in depth Soil samples will be collected from the excavated areas in an effort to define the extent of subsurface soil contamination. Soil samples will be collected and analyzed in a manner so as to define the extent of subsurface soil contamination and confirm completion of soil remediation in the immediate vicinity of the excavated areas. Soil samples will be collected for lithologic logging purposes, laboratory analysis and to be field-tested for Volatile Organic Compounds (VOC's) using a Photo Ionization Detector (PID) or a Flame Ionization Detector (FID). Classification of soil will be done using the Unified Soils Classification System (USCS) by KCE Matrix's field engineer or geologist. The excavated soil material will be stockpiled on site and sampled for proper characterization in preparation for profiling and disposal at an approved facility. The samples to be designated for analysis will be labeled and stored on ice for delivery to a State certified laboratory and analyzed as follows: 17.d Packet Pg. 669 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) KCE-2019-200E-P3 February 25, 2021 Page 2 of 4 • Up to 34 soil samples for VOC’s and Total Petroleum Hydrocarbons – Gasoline Range Organics (GRO) by EPA method 8260B. Based on the proposed areas and depths to be excavated, it is estimated that approximately 725 tons of soil will be excavated and disposed during implementation of remedial action. More specifically, to facilitate implementation of the soil remediation work as described above, the following work will also be performed by KCE Matrix prior to, during and/or after soil excavation and disposal activities: • Prepare and implement Health and Safety Plan (HSP), • Prepare for site field work, • Coordination for site access, • Delivery and installation of temporary fencing, and other barriers to clearly mark the construction and remediation work areas on site, as necessary, • Excavate and remove subsurface contaminated soil, • Perform environmental assessment work and soil sampling work, • Project coordination for removal of contaminated soil from the subject property, • Transport and dispose of the contaminated soil (NOTE: Assume that soil material will consists of non-RCRA non-hazardous waste and will not be profiled as RCRA hazardous waste), estimated amount of 725 tons, • Laboratory analyses as necessary, • Import soil, backfill and compact, estimated amount of 725 tons, • Provide geotechnical engineering for soil compaction, and • Project coordination and management All soil sampling, environmental assessment, excavation and soil disposal work to be performed will be conducted by and/or under the supervision of KCE Matrix’s California State Professional Civil Engineer or Certified Engineering Geologist. A summary report describing the soil remediation activities performed will be prepared and will be signed and certified by a California State licensed Professional Civil Engineer or Certified Engineering Geologist. III. ASSUMPTIONS 1. This proposal and associated cost estimates are based on the scope of work described herein. Any work in addition to the scope of work described in this proposal will require changes and additions to the cost estimates listed. 2. KCE Matrix assumes that the depth to groundwater for the subject site is in excess of 17 feet bgs. There are no provisions in this proposal to perform any exploratory or remediation work beyond a depth of approximately 15 feet bgs. Such assessment or remediation of subsurface areas greater than seven feet in depth will require changes and/or additions to the cost estimates listed in this proposal. 17.d Packet Pg. 670 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) KCE-2019-200E-P3 February 25, 2021 Page 3 of 4 3. KCE Matrix assumes that free access will be provided to and from the project site and work areas, that areas of concern will be accessible to all equipment needed to perform the work on site, and that access to all areas of concern will be provided for as many days as needed to complete the scope of work. 4. KCE Matrix has not included the costs for obtaining regulatory permits for the proposed scope of work. Should such permits be required by regulatory agencies, the costs incurred for obtaining such permits (including the permit fees and the time required to obtain the permits) will be in addition to the costs listed in this proposal. 5. This proposal does not include any provisions for additional assessment; or excavation, remediation, or disposal of subsurface contamination and/or hazardous materials in excess of the proposed scope of work should any such materials be discovered or encountered. KCE Matrix assumes that the waste soil material will consist of non-RCRA waste and will not be profiled as RCRA hazardous waste. If the excavated soil is profiled as RCRA hazardous waste, additional costs will be incurred. 6. KCE Matrix estimates that the soil sampling protocol and analyses described in this proposal will be sufficient to define the extent of soil contamination, if any. If additional samples and analyses are required, additional costs will be incurred. 7. Any changes to this scope of work or assumptions required by regulatory agencies, changes resulting from detection of elevated levels of contamination, or deviations from the above listed scope of work or assumptions will require a change in this cost estimate. However, no additional work will be conducted without prior notification to and written approval by the client. IV. FEES The proposed scope of work and fee is comprised of the following: • Prepare and implement Health and Safety Plan (HSP), • Prepare for site field work, • Coordination for site access, • Delivery and installation of temporary fencing, and other barriers to clearly mark the construction and remediation work areas on site • Excavate and remove subsurface contaminated soil, • Perform environmental assessment work and soil sampling work, • Project coordination for removal of contaminated soil from the subject property, • Transport and dispose of the contaminated soil (NOTE: Assume that soil material will consists of non-RCRA waste and will not be profiled as RCRA hazardous waste), estimated 725 tons, • Laboratory analyses as necessary, • Import soil, backfill and compact, estimated 725 tons, 17.d Packet Pg. 671 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) KCE-2019-200E-P3 February 25, 2021 Page 4 of 4 • Provide geotechnical engineering for soil compaction, • Project coordination and management, and • Preparation of a site assessment and remediation summary report certified by a licensed California State Professional Civil Engineer PROPOSAL FEE: $142,850 V. SIGNATURE KCE Matrix appreciates the opportunity to prepare and submit this proposal. Should you have any questions or require additional information, please contact our office at 818-559-5500. Sincerely, KCE Matrix, Inc. Aram B. Kaloustian, P.E. Project Manager 17.d Packet Pg. 672 Attachment: Attachment 4 - SHA Resolution 2021-89; Exhibits A-C (7176 : 5TH Street Gateway Purchase and Sale Agreetment (Ward 1)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: PSA with PlaceWorks for Professional Planning Services (All Wards) Recommendation Adopt Resolution No. 2021-90 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Professional Serv ices Agreement with PlaceWorks to prepare the Local Hazard Mitigation Plan and Emergency Operations Plan as part of the comprehensive update to the City’s General Plan; and authorize the Finance Director to amend the FY 2020/21 adopted budget accordingly. Background The City’s Local Hazard Mitigation Plan (LHMP) must be updated every five (5) years to comply with regulations and Federal mitigation grant conditions. The current plan is set to expire on February 14, 2022. The purpose of the LHMP is to identi fy and mitigate risk to human life and property due to natural hazards. The Federal Emergency Management Agency (FEMA) defines hazard mitigation as "any action taken to reduce or eliminate the long-term risk to human life and property from natural hazards." Hazards are defined as "any event or condition with the potential to cause fatalities, injuries, property damage, infrastructure damage, agricultural loss, environmental damage, business interruption, or other loss." The City's Emergency Operations Plan (EOP) addresses the City of San Bernardino's planned response to extraordinary emergency situations associated with natural disasters, technological incidents, and national security emergencies. Both the LHMP and EOP are vital to assist City leaders and personnel in responding to hazards and disasters. Both plans are set to expire and require extensive research and community participation prior to requesting the appropriate organizations' approval. It is important that updating these plans begins this yea r to receive approval and adoption before their expiration date. The Cares Act provides funding that may be used to cover the following costs: 18 Packet Pg. 673 7251 Page 2 Expenditures incurred due to the public health emergency with respect to the COVID-19 pandemic. Expenditures that were not accounted for in the most recently adopted budget. Expenditures that were incurred during the period that begins on March 1, 2020, and ends on December 30, 2020. The Coronavirus pandemic has had far-reaching disaster and hazard implications beyond the health crisis it poses. While it was initially believed to be a short -term hazard, it appears the duration of the threat is unknown, and the impact of the virus on City services and emergency response may be long lasting and possibly permane nt. City services and community infrastructure have all suffered from the effects the Coronavirus has had on the community. As a result, both the EOP and the LHMP require immediate updates to help city leaders, staff, and the community to navigate hazards and disasters in the Coronavirus environment and beyond. Discussion On September 4, 2020, Request for Proposals (RFP F -21-08) for the preparation of the Local Hazard Mitigation Plan and Emergency Operations Plan was released and posted on Planet Bids through the City’s procurement process by the Finance Department (Attachment 3). Proposals were submitted by the following consulting firms: Natural 20. LLC: $ 30,000.00 Link Operations: $ 88,800.00 EPC Emergency Planning Consultants: $100,000.00 PlaceWorks/Atlas Planning Solutions: $168,120.00 Innovative Emergency Management: $197,666.54 AARC Consultants: $220,970.00 The Police Department has completed a comprehensive review of the proposals and has provided the following comments: 1) PlaceWorks/Atlas Planning Solutions: Good understanding of City history (both disaster/emergency events and history of financial instability) along with an excellent understanding of local hazards. They gave a thorough proposal that demonstrated consideration for issues that we had not requested consideration of ourselves, but should be included. Their project manager and staff are well qualified (in a wide variety of related disciplines) for this project and they have a plan to use technological aids not only for the project itself, but also to more easily allow for community input into the planning and review process. Additionally they had a good training plan and were experienced in hazard planning for multiple cities adjacent to ours. This is a local co mpany based in Riverside. 2) AARC Consultants: Thorough proposal that demonstrated a good understanding of local hazards. This proposal included consideration for issues we had not 18 Packet Pg. 674 7251 Page 3 requested consideration of ourselves, but should be included. The project manager and associated staff are well qualified (in a wide variety of related disciplines) for the project and they will use appropriate technology to complete the project itself. There is a thorough training plan and they are experienced in hazard planning for one other adjacent city. This is a Southern California based company from Century City. 3) Innovative Emergency Management: Thorough proposal with a good understanding of potential hazards for the area. There was consideration for the standard issues included in the previous plans with some mention of potential future needs. They will use appropriate technology as aids for developing new plans. Their project manager and staff are well qualified for the project (in a wide variety of related disciplines). Their training plan will meet the needs as stated in the RFP. They do have experience with larger local agencies such as San Bernardino County. This is a company based in North Carolina. 4) Link Management: Proposal covered the requested services made in the RFP and demonstrated an understanding of local hazards. There was consideration for planning of emerging threats and hazards. They will use appropriate technology for developing new plans. Their staff and project manager are qualified for the project and their primary experience comes from emergency services (specifically fire and medical). Their training plan meets the requirements stated in the RFP. They have experience primarily in other states and their company is based in Tennessee. 5) Carolyn J. Harshman: Proposal covered the requested services made in the RFP and demonstrated an understanding of the local hazards. There was consideration for the standard issues considered in previous plans and they will use appropriate technological aids for developing new plans. The project manager and support staff are well qualified for the project (in a wide variety of related disciplines) and their training plans will meet the needs as stated in the RFP. They have experience with multiple Southern California governmental agencies. This is a company based in San Diego. 6) Natural 20: Proposal included the requested services as stated in the RFP. The project manager is qualified in hazard mitigation and large scale civil operations. This company has experience concentrated in the military and related industries. This company is based in Upland. The top three (3) proposals are from PlaceWorks/Atlas, AARC and Innovative Emergency Management. Each of these proposals demonstrated a higher level of understanding regarding local hazards, the City’s needs, and contained a clear explanation of the methods and technology that would be used to complete the project. These proposals also indicated that staff involved would be well qualified, have knowledge of FEMA and state regulations, and the capability of interacting with those agencies to ensure the plans received approval. Of those three proposals, PlaceWorks/Atlas Planning was the lowest cost at $168,120 and they are the vendor 18 Packet Pg. 675 7251 Page 4 recommended for selection. PlaceWorks/Atlas Planning demonstrated the most through grasp of the history of our City, the current needs, and potential future needs. Their staff is well qualified and has experience with multiple adjacent cities, so it is likely that their prior work with those cities will complement their work for us. They appear better informed than some of their competitors about local needs, hazards, and available resources as well. In the event of a major disaster, this consistency between ours and other plans could prove to be important. They also have a superior plan for communicating with the public and City Council along with other city leaders during the planning process. The remaining three (3) proposals indicated that they could do the work requested and meet the requirements stated in the RFP. This does make those proposals acceptable, but it reveals some inadequacies as well. While some hazards are already known and can be planned for, there are many that are not. Current financial conditions, the aging infrastructure (ex: power grid), and climate change have the potential to reveal some of those hazards that have not yet been identified but will need to be addressed as they are exposed in the future. Any company selected to create hazard and emergency plans for the City cannot simply concern itself with previously known hazards, but must also actively look for potential new issues that will need to be addressed. For this reason, the bottom three (3) proposals are not recommended. 2020-2025 Key Strategic Targets and Goals The proposed Professional Services Agreement with PlaceWorks aligns with Key Target No. 3: Improve Quality of Life. Specifically, updating the Local Hazard Mitigation Plan and Emergency Operations Plan will allow the City to take actions necessar y to reduce or eliminate the long-term risk to human life and property from natural hazards. The Emergency Management Plan will allow the City to plan its response to extraordinary emergency situations associated with natural disasters, technological incidents, and national security emergencies. Fiscal Impact With the adoption of the Substantial Amendment to the FY 2020 -2021 Action Plan $168,120 of the allocated $300,000 CDBG-CV3 Funds, entails an amendment to the FY 2020-21 adopted budget to increase the Community & Economic Development budget - (Account No. 139-180-8818*5502 - Professional Contractual Services) in the amount of $168,120. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt the Resolution No. 2021-90 authorizing the City Manager to execute the Professional Services Agreement with PlaceWorks to prepare the Local Hazard Mitigation Plan and Emergency Operations Plan as part of the comprehensive update to the City’s General Plan; and authorizing the Finance Director to amend the FY 2020/21 adopted budget. Attachments Attachment 1 Resolution 2021-90 18 Packet Pg. 676 7251 Page 5 Attachment 2 Professional Services Agreement Attachment 3 Request for Proposals Ward: All Synopsis of Previous Council Actions: March 17, 2021 Mayor and City Council adopted a Substantial Amendment to the FY 2020-2021 Action Plan allocating $300,000 of CDBG-CV3 funds for the preparation of the City’s Local Hazard Mitigation Plan and Emergency Operations Plan. 18 Packet Pg. 677 Resolution No. 2021-90 1 RESOLUTION NO. 2021-90 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE PROFESSIONAL SERVICES AGREEMENT WITH PLACEWORKS TO PREPARE THE LOCAL HAZARD MITIGATION PLAN AND EMERGENCY OPERATIONS PLAN AS PART OF THE COMPREHENSIVE UPDATE TO THE CITY’S GENERAL PLAN; AND AUTHORIZING THE FINANCE DIRECTOR TO AMEND THE FY 2020/21 ADOPTED BUDGET ACCORDINGLY WHEREAS, the Federal Emergency Management Agency (FEMA) defines hazard mitigation as "any action taken to reduce or eliminate the long-term risk to human life and property from natural hazards." Hazards are defined as "any event or condition with the potential to cause fatalities, injuries, property damage, infrastructure damage, agricultural loss, environmental damage, business interruption, or other loss." The City’s Local Hazard Mitigation Plan (LHMP) must be updated every five (5) years to comply with regulations and Federal mitigation grant conditions. The current plan is set to expire on February 14, 2022. The purpose of the LHMP is to identify and mitigate risk to human life and property du e to natural hazards. FEMA defines hazard mitigation as "any action taken to reduce or eliminate the long-term risk to human life and property from natural hazards." Hazards are defined as "any event or condition with the potential to cause fatalities, injuries, property damage, infrastructure damage, agricultural loss, environmental damage, business interruption, or other loss;" and WHEREAS, the City’s Emergency Operations Plan (EOP) addresses the City of San Bernardino's planned response to extraordinary emergency situations associated with natural disasters, technological incidents, and national security emergencies; and WHEREAS, the both the LHMP and EOP are vital to assist City leaders and personnel in responding to hazards and disasters. Both plans are set to expire and require extensive research and community participation prior to requesting the appropriate organizations' approval. It is important that updating these plans begins this year to receive approval and adoption before their expiration date; and WHEREAS, on September 4, 2020, Request for Proposals (RFP F-21-08) for the preparation of the Local Hazard Mitigation Plan (LHMP) and Emergency Operations Plan (EOP) was released and posted on Planet Bids through the City’s procurement process by the Finance Department; and WHEREAS, PlaceWorks has been selected because of their knowledge of the environs within San Bernardino based upon their past and current working experience. Additionally, PlaceWorks is known for their responsiveness and attention to detail as it relates to serving local municipalities. 18.a Packet Pg. 678 Attachment: Attachment 1 - Resolution 2021-90 (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) Resolution No. 2021-90 2 BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager or designee is hereby authorized and directed to execute the Professional Services Agreement with PlaceWorks attached hereto as Exhibit “A”, in an amount not to exceed $168,120. SECTION 3. The Finance Director is hereby authorized to amend the FY 2020-21 adopted budget accordingly, as follows: appropriation of $168,120.00 to the Community & Economic Development – Other Professional Services Account (001-180-8742*5505) from the CDBG–CV3 Funds (139-180-8818*5502). SECTION 4. The authorization to execute the above-referenced Agreement is rescinded if the Agreement is not executed and returned to the Office of the City Clerk within sixty (60) days following the effective date of this Resolution. SECTION 5. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino 18.a Packet Pg. 679 Attachment: Attachment 1 - Resolution 2021-90 (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) Resolution No. 2021-90 3 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 18.a Packet Pg. 680 Attachment: Attachment 1 - Resolution 2021-90 (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) Resolution No. 2021-90 4 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-90, adopted at a regular meeting held at the ___ day of _______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino t his ___ day of ____________ 2021. _____________________________________ Genoveva Rocha, CMC, City Clerk 18.a Packet Pg. 681 Attachment: Attachment 1 - Resolution 2021-90 (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND PLACEWORKS This Agreement is made and entered into as of this 21st day of April, 2021 by and between the City of San Bernardino, a charter city and municipal corporation organized and operating under the laws of the State of California with its principal place of business at Vanir Tower, 290 North D Street, San Bernardino, CA 92401 (“City”), and PlaceWorks, a corporation with its principal place of business at 3 MacArthur Place, Suite 1100, Santa Ana, CA 92707 (hereinafter referred to as “Consultant”). City and Consultant are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” RECITALS A. City is a public agency of the State of California and is in need of professional services for the following project: (i) To prepare the City’s Local Hazard Mitigation Plan and Emergency Operations Plan (hereinafter referred to as “the Project”). B. Consultant is duly licensed and has the necessary qualifications to provide such services. C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein. AGREEMENT NOW, THEREFORE, IT IS AGREED AS FOLLOWS: 1. Incorporation of Recitals. The recitals above are true and correct and are hereby incorporated herein by this reference. 2. Services. Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.” 3. Professional Practices. All professional services to be provided by Consultant pursuant to this Agreement shall be provided by personnel identified in their proposal. Consultant warrants that Consultant is familiar with all laws that may affect its performance of this Agreement and shall advise City of any changes in any laws that may affect Consultant’s performance of this Agreement. Consultant further represents that no City employee will provide any services under this Agreement. 4. Compensation. a. Subject to paragraph 4(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” 18.b Packet Pg. 682 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 2 b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of One Hundred Sixty-Eight Thousand One Hundred Twenty Dollars ($168,120.00). This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices to City for approval. Said invoice shall be based on the total of all Consultant’s services which have been completed to City’s sole satisfaction. City shall pay Consultant’s invoice within forty-five (45) days from the date City receives said invoice. The invoice shall describe in detail the services performed and the associated time for completion. Any additional services approved and performed pursuant to this Agreement shall be designated as “Additional Services” and shall identify the number of the authorized change order, where applicable, on all invoices. 5. Additional Work. If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement. 6. Term. This Agreement shall commence on the Effective Date and continue through the completion of services as set forth in Exhibit “A,” unless the Agreement is previously terminated as provided for herein (“Term”). 7. Maintenance of Records; Audits. a. Records of Consultant’s services relating to this Agreement shall be maintained in accordance with generally recognized accounting principles and shall be made available to City for inspection and/or audit at mutually convenient times for a period of four (4) years from the Effective Date. b. Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City. 8. Time of Performance. Consultant shall perform its services in a prompt and timely manner and shall commence performance upon receipt of written notice from the City to proceed. Consultant shall complete the services required hereunder within Term. 9. Delays in Performance. a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non-performing Party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. 18.b Packet Pg. 683 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 3 b. Should such circumstances occur, the non-performing Party shall, within a reasonable time of being prevented from performing, give written notice to the other Party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement. 10. Compliance with Law. a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement. 11. Standard of Care. Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 12. Conflicts of Interest. During the term of this Agreement, Consultant shall at all times maintain a duty of loyalty and a fiduciary duty to the City and shall not accept payment from or employment with any person or entity which will constitute a conflict of interest with the City. 13. City Business Certificate. Consultant shall, prior to execution of this Agreement, obtain and maintain during the term of this Agreement a valid business registration certificate from the City pursuant to Title 5 of the City’s Municipal Code and any and all other licenses, permits, qualifications, insurance, and approvals of whatever nature that are legally required of Consultant to practice his/her profession, skill, or business. 14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder. 15. Independent Consultant. Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided. 18.b Packet Pg. 684 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 4 16. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Additional Insured The City of San Bernardino, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on Consultant’s and its subconsultants’ policies of commercial general liability and automobile liability insurance using the endorsements and forms specified herein or exact equivalents. b. Commercial General Liability (i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following: Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following: (1) Bodily Injury and Property Damage (2) Personal Injury/Advertising Injury (3) Premises/Operations Liability (4) Products/Completed Operations Liability (5) Aggregate Limits that Apply per Project (6) Explosion, Collapse and Underground (UCX) exclusion deleted (7) Contractual Liability with respect to this Contract (8) Broad Form Property Damage (9) Independent Consultants Coverage (iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement. (v) The policy shall give City, its elected and appointed officials, officers, employees, agents, and City-designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. 18.b Packet Pg. 685 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 5 (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. c. Automobile Liability (i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City. (ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto). (iii) The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention. d. Workers’ Compensation/Employer’s Liability (i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement. (ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section. e. Professional Liability (Errors and Omissions) At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The 18.b Packet Pg. 686 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 6 policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. f. Minimum Policy Limits Required (i) The following insurance limits are required for the Agreement: Combined Single Limit Commercial General Liability $1,000,000 per occurrence/$2,000,000 aggregate for bodily injury, personal injury, and property damage Automobile Liability $1,000,000 per occurrence for bodily injury and property damage Employer’s Liability $1,000,000 per occurrence Professional Liability $1,000,000 per claim and aggregate (errors and omissions) (ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. g. Evidence Required Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25- S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance. h. Policy Provisions Required (i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of the premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. 18.b Packet Pg. 687 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 7 (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss. (iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement. (iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law. i. Qualifying Insurers (i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law. j. Additional Insurance Provisions (i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. 18.b Packet Pg. 688 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 8 (ii) If at any time during the life of the Agreement, 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 Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement. (iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor the City Council, nor any member of the City Council, nor any of the officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement. k. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section. Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 17. Indemnification. a. To the fullest extent permitted by law, Consultant shall defend (with counsel reasonably approved by the City), indemnify and hold the City, its elected and appointed officials, officers, employees, agents, and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any alleged acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project, or this Agreement, including without limitation the payment of all consequential damages, expert witness fees and attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent Consultant’s services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, the City Council, members of the City Council, its employees, or authorized volunteers. b. Additional Indemnity Obligations. Consultant shall defend, with counsel of City’s choosing and at Consultant’s own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against the City, its elected and appointed officials, employees, agents, or authorized volunteers. Consultant shall pay and satisfy any judgment, award or decree that may be rendered against the City, its elected and appointed officials, employees, agents, or authorized volunteers as part of any such claim, suit, action or other 18.b Packet Pg. 689 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 9 proceeding. Consultant shall also reimburse City for the cost of any settlement paid by the City, its elected and appointed officials, employees, agents, or authorized volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for the City’s attorney's fees and costs, including expert witness fees. Consultant shall reimburse the City, its elected and appointed officials, employees, agents, or authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Consultant’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its elected and appointed officials, employees, agents, or authorized volunteers. 18. California Labor Code Requirements. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., ("Prevailing Wage Laws"), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, Consultant agrees to fully comply with such Prevailing Wage Laws, if applicable. Consultant shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which include but are not limited to prevailing wages, employment of apprentices, hours of labor and debarment of contractors and subcontractors. 19. Verification of Employment Eligibility. By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same. 20. Laws and Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 21. Termination or Abandonment a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days’ written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be 18.b Packet Pg. 690 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 10 entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work. b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant. 22. Attorneys’ Fees. In the event that litigation is brought by any Party in connection with this Agreement, the prevailing Party shall be entitled to recover from the opposing Party all costs and expenses, including reasonable attorneys’ fees, incurred by the prevailing Party in the exercise of any of its rights or remedies hereunder or the enforcement of any of the terms, conditions, or provisions hereof. The costs, salary, and expenses of the City Attorney’s Office in enforcing this Agreement on behalf of the City shall be considered as “attorneys’ fees” for the purposes of this Agreement. 23. Responsibility for Errors. Consultant shall be responsible for its work and results under this Agreement. Consultant, when requested, shall furnish clarification and/or explanation as may be required by the City’s representative, regarding any services rendered under this Agreement at no additional cost to City. In the event that an error or omission attributable to Consultant’s professional services occurs, Consultant shall, at no cost to City, provide all other services necessary to rectify and correct the matter to the sole satisfaction of the City and to participate in any meeting required with regard to the correction. 24. Prohibited Employment. Consultant shall not employ any current employee of City to perform the work under this Agreement while this Agreement is in effect. 25. Costs. Each Party shall bear its own costs and fees incurred in the preparation and negotiation of this Agreement and in the performance of its obligations hereunder except as expressly provided herein. 26. Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City. 27. Organization. Consultant shall assign Mark Teague, AICP as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City. 28. Limitation of Agreement. This Agreement is limited to and includes only the work included in the Project described above. 29. Notice. Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to the following addresses and shall be effective upon receipt thereof: 18.b Packet Pg. 691 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 11 CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Michael Huntley, Director of Community & Economic Development With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney CONSULTANT: PlaceWorks 3 MacArthur Place, Suite 1100 Santa Ana, CA 92707 Attn: Kara Kosel, Contracts Manager 30. Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant. 31. Equal Opportunity Employment. Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. 32. Entire Agreement. This Agreement, including Exhibit “A,” represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises, or agreements have been made by any person which is not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement. 33. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, such determination shall not affect the validity or enforceability of the remaining terms and provisions hereof or of the offending provision in any other circumstance, and the remaining provisions of this Agreement shall remain in full force and effect. 34. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consen t of City. Any attempted assignment without such consent shall be invalid and void. 35. Non-Waiver. The delay or failure of either Party at any time to require performance or compliance by the other Party of any of its obligations or agreements shall in no way be deemed a waiver of those rights to require such performance or compliance. No waiver 18.b Packet Pg. 692 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 12 of any provision of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the Party against whom enforcement of a waiver is sought. The waiver of any right or remedy with respect to any occurrence or event shall not be deemed a waiver of any right or remedy with respect to any other occurrence or event, nor shall any waiver constitute a continuing waiver. 36. Time of Essence. Time is of the essence for each and every provision of this Agreement. 37. Headings. Paragraphs and subparagraph headings contained in this Agreement are included solely for convenience and are not intended to modify, explain, or to be a full or accurate description of the content thereof and shall not in any way affect the meaning or interpretation of this Agreement. 38. Amendments. Only a written executed by all of the Parties hereto or their respective successors and assigns may amend this Agreement. 39. City’s Right to Employ Other Consultants. City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects. 40. Prohibited Interests. Consultant maintains and warrants that it has neither employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom. 41. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original. All counterparts shall be construed together and shall constitute one single Agreement. 42. Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that they are duly authorized to execute this Agreement on behalf of said Parties and that by doing so, the Parties hereto are formally bound to the provisions of this Agreement. [SIGNATURES ON FOLLOWING PAGE] 18.b Packet Pg. 693 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND PLACEWORKS IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Robert D. Field City Manager Approved as to Form: _____________________________________ Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC City Clerk CONSULTANT Signature Name Title 18.b Packet Pg. 694 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 14 EXHIBIT A 18.b Packet Pg. 695 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 696 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 697 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 698 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 699 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 700 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 701 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 702 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 703 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 704 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 705 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.b Packet Pg. 706 Attachment: Attachment 2 - Professional Services Agreement (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 707 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 708 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 709 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 710 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 711 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 712 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 713 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 714 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 715 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 716 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 717 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 718 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 719 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 720 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 721 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 722 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 723 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 724 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 725 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 726 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) 18.c Packet Pg. 727 Attachment: Attachment 3 - Request for Proposals (7251 : PSA with PlaceWorks for Professional Planning Services (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart Recommendation It is recommended that the Mayor and the City Council of the City of San Bernardino, California adopt Resolution No. 2021-91, approving the First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart. Background On January 13, 2021, the City entered into an agreement with Woodruff, Spradlin & Smart to provide legal services in relation to the San Bernardino Superior Court case captioned RIVSA, SB, LLC v. City of San Bernardino, et al. (CIVSB2025767). In accordance with the City's Municipal Code, the agreement was for an initial not to exceed amount of $49,999. This case remains active. Discussion From time-to-time, the Community and Economic Development Department utilize qualified outside counsel to address litigation against the City. Outside counsel has represented the City capably and efficiently. At this time, it is necessary to increase the cap under the agreement to permit continued representation of the City on this matter. The proposed increase to the Legal Services Agreement with Woodruff, Spradlin & Smart would be an additional $100,000. This would increase the total contract amount to $150,000 when rounded up. The funding to pay for the contract services rendered will comes from the project applicant, who is obligated to indemnify the City in connection with the project approvals. Accordingly, the City requires Reimbursement Agreements for such projects to ensure the City’s costs are covered by the applicants and not by City taxpayers. Continued representation is essential to protect the City's interests and avoid unnecessary liability. In addition, utilizing the same attorney provides efficiency that would be lost should the case need to be transferred to a different firm. 2020-2025 Key Strategic Targets and Goals The request to execute the First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart aligns with Key Target No. 1d: Financial Stability. 19 Packet Pg. 728 7256 Page 2 Specifically, providing continued representation will minimize the City’s risk and exposure to litigation. Fiscal Impact The First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart will include an addition of $100,000 to cover the cost of representing the City. The cost for additional legal services will be covered by the project applicant pursuant to a Reimbursement Agreement between the Applicant and the City of San Bernardino. There will be no impact to the City’s General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-91 authorizing the City Manager to Execute a First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart with a proposed cap of $150,000. Attachments Attachment 1 Resolution No. 2021-91 Attachment 2 First Amendment Agreement Attachment 3 Original Agreement with Woodruff, Spradlin & Smart dated January 13, 2020 Ward: n/a Synopsis of Previous Council Actions: None 19 Packet Pg. 729 Resolution No.2021-91 RESOLUTION NO. 2021-91 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE LEGAL SERVICES AGREEMENT WITH WOODRUFF, SPRADLIN & SMART WHEREAS, the City of San Bernardino (“City”) has entered into a legal services agreement with Woodruff, Spradlin & Smart (“Agreement”) dated January 13, 2021 to handle litigation to defend the City in the RIVSA SB LLC v. City of San Bernardino et al. case, San Bernardino County Superior Court Case No. CIVSB2025767; and WHEREAS, the Agreement now requires an amendment to provide for continued representation of the City in the litigation and to ensure that Woodruff, Spradlin & Smart is appropriately compensated for the work performed and for ongoing work. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to execute the First Amendment to the Agreement in the form attached hereto as Exhibit “A” to increase the not-to-exceed cap to $150,000.00. This is an increase of $100,000 to the existing contract amount. SECTION 3. The City Council finds this Resolution not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, th e activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and att ested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino 19.a Packet Pg. 730 Attachment: Attachement 1 - Resolution 2021-91 (7256 : First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart) Resolution No.2021-91 Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia R. Carvalho, City Attorney 19.a Packet Pg. 731 Attachment: Attachement 1 - Resolution 2021-91 (7256 : First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart) Resolution No.2021-91 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-91, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 19.a Packet Pg. 732 Attachment: Attachement 1 - Resolution 2021-91 (7256 : First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Smart) FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND WOODRUFF, SPRADLIN & SMART FOR LEGAL SERVICES This First Amendment (“First Amendment”) is entered into by and between the City of San Bernardino, a charter city organized under the laws of the State of California (hereinafter the “City”), and Woodruff, Spradlin & Smart (hereinafter the “Firm”) as of _________, 2021. City and Firm are sometimes referred to herein individually as a “Party” and collectively as the “Parties.” WHEREAS, City and Firm entered into a Professional Services Agreement dated January 13, 2021 for the provision of legal services in connection with the San Bernardino Superior Court case RIVSA SB, LLC v. City of San Bernardino, et al. (CIVSB2025767) (“Original Agreement”); and WHEREAS, the City and Firm now wish to amend the Original Agreement to increase the not-to-exceed cap for legal fees; and NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows: 1. Not-To-Exceed Cap. The $49,999.00 not-to-exceed cap identified in Section 4.b. of the Original Agreement, as amended by the First Amendment, is hereby increased to $150,000.00. 2. Effect on Other Provisions. All other provisions of the Agreement, shall remain in full force and effect. IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed the day and year first above written. CITY FIRM __________________________ ______________________________ Robert D. Field, City Manager M. Lois Bobak, President 19.b Packet Pg. 733 Attachment: Attachment 2 - First Amendment Agreement (7256 : First Amendment to the Legal Services Agreement with Woodruff, Spradlin & 19.c Packet Pg. 734 Attachment: CED.Retainer Agreement.Attachment 3 (7256 : First Amendment to the Legal Services Agreement with Woodruff, Spradlin & BARBARA RAILEANU, Executive Committee Member 19.c Packet Pg. 735 Attachment: CED.Retainer Agreement.Attachment 3 (7256 : First Amendment to the Legal Services Agreement with Woodruff, Spradlin & 19.c Packet Pg. 736 Attachment: CED.Retainer Agreement.Attachment 3 (7256 : First Amendment to the Legal Services Agreement with Woodruff, Spradlin & Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Michael Huntley, Director of Community & Economic Development Subject: Emergency Rental Assistance Program (All Wards) It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Adopt Resolution No. 2021-92 authorizing the City Manager to execute the Professional Services Agreement with the Inland SoCal United Way to assist in the administration of the City’s Emergency Rental Assistance Program; and 2. Direct the City Manager to execute a Memorandum of Understanding with the State Department of Housing and Community Development related to Option C of the Emergency Rental Assistance Program. Background On September 16, 2020, the Mayor and City Council approved a Substantial Amendment to the FY 2020-201 Action Plan that included $1,060,000 in CDBG-CV funding for a local eviction prevention program. The program was launched in October 2020, and is administered by the Housing Authority of the County of San Bernardino. On December 27, 2020, President Biden signed into law the Consolidated Appropriations Act of 2021. The legislation includes $25 billion in emergency rental assistance to assist households that are unable to pay rent or utilities, due to impacts of the COVID-19 pandemic. Tribal communities, U.S. territories, states, and local governments with populations over 200,000 are eligible to receive funding. The City of San Bernardino has received an allocation of $6.4 million from the United States Treasury (U.S. Treasury) for the implementation of an Emergency Rental Assistance Program (ERAP). The ERAP program allows for the payment of rental arrears, utility arrears, and up to three months of prospective rent. On February 11, 2021, staff presented an item on emergency rental assistance program funding options for Mayor and City Council consideration. The discussi on included the funding being provided by the U.S. Treasury Department as part of the ERAP program and the State of California administered Emergency Rental Assistance Program 20 Packet Pg. 737 7264 Page 2 options. Subsequent to City Council discussion, Option C was selected along wit h an amendment to establish an advisory Committee made up of three Council members and two staff members. The City is one of only two jurisdictions in the County of San Bernardino to receive its own allocation, the other being the City of Fontana. The County of San Bernardino received an allocation of $52 million and the State of California received $1.5 billion. The County of San Bernardino launched their rental assistance program on April 12, 2021. The County program will only assist households with 50% of area median income (AMI) with only rent and utility arrears dating back to March 2020, for up to 12 months at 100% of what is owed. The County program does not offer prospective rent assistance at this time, but may make it available in the future. The State of California Emergency Rental Assistance Program will administer a program in the County for households above 50% of AMI, with reimbursement at 80% of what is owed. In order to achieve City Council preference, as communicated at the February 12th Mayor and City Council meeting, of reimbursing landlords 100% for rent arrears, staff recommends that the City institute a program whereby: The City only pays rent and utility arrears; and The State only pays prospective rent. By bifurcating the program in the above noted manner, there would be no duplication of services, since a household who has received assistance with arrears, could also receive assistance with prospective rent. Discussion On March 9, 2021, the Request for Proposal (RFP# F-21-21) related to the Emergency Rental Assistance Program was released and posted on Planet Bids through the City’s procurement process by the Finance Department. In addition to the standard posting of the RFP on Planet Bids, copies of the RFP were e-mailed to other interested local non- profit organizations. Of the $6.4 million allocated by the U.S. Treasury, ten percent can be used for administrative costs. The City will retain three percent for administration and the vendor will be allocated seven percent for administration, with the balance dedicated to direct assistance, as noted below. Activity Amount Direct Assistance rent and utility arrears and prospective rent $5,774,070 Program Administration (includes staffing, case management, housing stability services, call center operations, etc.) $449,094 Total (net 3% City Admin)1 $6,223,164 1 $192,469 for City Admin. 20 Packet Pg. 738 7264 Page 3 The following two bidders submitted proposals: 1. Inland SoCal United Way - $448,410 2. Yardi - $341,158 On March 12, 2021, the advisory Committee met to discuss the submittals and discuss the qualifications of each of the two bidders. Although both bidders were qualified to provide the service to the City, it was the Committee’s opinion that Inland SoCal United Way was the most responsive and capable of assisting the City in the rolling out the Emergency Rental Assistance Program. Specifically, the United Way is an organization that better understands the needs of the residents of the Inland Empire. Moreover, although their bid is higher than Yardi, they will provide six (6) Case Managers with boots on the ground versus what appears to be one from Yardi. Lastly, the County of San Bernardino has also retained the Inland SoCal United Way. This will allow for the City and County to more easily coordinate efforts and identify instances of duplication in funding distribution between both agencies. The advisory Committee also recommended that staff to seek cooperation with Inland SoCal United Way to: Work closely with local non-profits and community stakeholders to ensure that all in need are reached; Consider prioritizing the City of San Bernardino; Respond within 24 hours to the submittal of applications; Consider a separate Call Center number for the City since the existing 211 line is already overburdened; and Provide ways to reach senior citizens who do not have the ability to access the application on-line. Provided the Mayor and City Council support these recommendations, these requests will be worked into the final Professional Services Agreement between the City and the Inland SoCal United Way. 2020-2025 Key Strategic Targets and Goals The execution of a Professional Services Agreement with the Inland SoCal United Way for the coordination and distribution of Emergency Rental Assistance funding aligns with Key Target No. 3: Improved Quality of Life. Specifically, the distribution of Emergency Rental Assistance funding will ensure that residents continue to be housed. Fiscal Impact The City of San Bernardino has received an allocation of $6.4 million from the United States Treasury for the implementation of an Emergency Rental Assistance Program . The Finance Department established account 123 -180-8815*4695 for the ERAP funds. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 20 Packet Pg. 739 7264 Page 4 1. Adopt Resolution No. 2021-92 authorizing the City Manager to execute the Professional Services Agreement with the Inland SoCal United Way to assist in the administration of the City’s Emergency Rental Assistance Program; and 2. Direct the City Manager to execute a Memorandum of Understanding with the State Department of Housing and Community Development related to Option C of the Emergency Rental Assistance Program. Attachments Attachment 1 Resolution 2021-92 Attachment 2 Requests for Proposals Ward: All Synopsis of Previous Council Actions: February 11, 2021 Mayor and City Council selected Option C of the Emergency Rental Assistance Program and approved the establishment of a Council Committee to oversee the program. 20 Packet Pg. 740 Resolution No. 2021-92 1 RESOLUTION NO. 2021-92 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE PROFESSIONAL SERVICES AGREEMENT WITH INLAND SOCAL UNITED WAY TO ADMINISTER THE EMERGENCY RENTAL ASSISTANCE PROGRAM WHEREAS, on December 27, 2020, President Biden signed into law the Consolidated Appropriations Act of 2021. The legislation includes $25 billion in emergency rental assistance to assist households that are unable to pay rent or utilities, due to impacts of the COVID -19 pandemic. Tribal communities, U.S. territories, states and local governments with populations over 200,000 are eligible to receive funding; and WHEREAS, the City of San Bernardino has received an allocation of $6.4 million from the United States Treasury (U.S. Treasury) for the implementation of an Emergency Rental Assistance Program (ERAP); and WHEREAS, The ERAP program allows for the payment of rental arrears, utility arrears, and up to three months of prospective rent; and WHEREAS, the City is one of only two jurisdictions in the County of San Bernardino to receive its own allocation, the other being the City of Fontana. The County of San Bernardino received an allocation of $52 million and the State of California received $1.5 billion; and WHEREAS, The Finance Department has established account 123-180-8815*4695 for the ERAP funds received from the U.S. Treasury; and WHEREAS, on March 9, 2021, Request for Proposal (RFP# F-21-21) for the administration of the Emergency Rental Assistance Program was released; and WHEREAS, the Inland SoCal United Way has been selected because they have a track record of successfully administering similar programs in the Inland Empire. Additionally, their staffing levels will ensure that the funds get out to the residents who need it. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager or designee is hereby authorized and directed to execute the Professional Services Agreement with Inland SoCal United Way attached hereto as Exhibit “A”, in an amount not to exceed $448,410. 20.a Packet Pg. 741 Attachment: Attachment 1 - Resolution 2021-92 (7264 : Emergency Rental Assistance Program (All Wards)) Resolution No. 2021-92 2 SECTION 3. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, th e activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 20.a Packet Pg. 742 Attachment: Attachment 1 - Resolution 2021-92 (7264 : Emergency Rental Assistance Program (All Wards)) Resolution No. 2021-92 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-92, adopted at a regular meeting held at the ___ day of _______, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino t his ___ day of ____________ 2021. _____________________________________ Genoveva Rocha, CMC, City Clerk 20.a Packet Pg. 743 Attachment: Attachment 1 - Resolution 2021-92 (7264 : Emergency Rental Assistance Program (All Wards)) 20.bPacket Pg. 744Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All Wards)) 20.b Packet Pg. 745 Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All 20.b Packet Pg. 746 Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All 20.b Packet Pg. 747 Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All 20.b Packet Pg. 748 Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All 20.b Packet Pg. 749 Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All 20.b Packet Pg. 750 Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All 20.b Packet Pg. 751 Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All 20.b Packet Pg. 752 Attachment: Attachment 2 - 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Request for Proposals (7264 : Emergency Rental Assistance Program (All 20.bPacket Pg. 861Attachment: Attachment 2 - Request for Proposals (7264 : Emergency Rental Assistance Program (All Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Cheryl Weeks, Council Administrative Supervisor Subject: Jan/March 2020 and Feb/March 2021 Board, Commission & Citizen Advisory Approved Minutes (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City’s board, commission, and citizen advisory committee meetings approved in February and March 2021. Background On February 7, 2018, the Mayor and City Council adopted general provisions for the City’s boards, commissions and citizen advisory committees under Municipal Code Chapter 2.17 requiring meeting minutes to be provided to the Mayor and City Council. Discussion In keeping with the reporting requirements established in Municipal Code Chapter 2.17.080, the minutes for the board, commission and citizen advisory committee meetings, approved in February and March 2021, are presented for review by the Mayor and City Council including the: 1. Parks, Recreation and Community Services Commission - January 16, 2020 2. Planning Commission - February 9, 2021 3. Public Safety and Human Relations Commission - March 9, 2020 4. Water Board - February 23, 2021; March 9, 2021 2020-2025 Key Strategic Targets and Goals Providing the agendas and minutes from each of the City’s boards, commissions and citizen advisory committees to the Mayor and City Council is in alignment with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact No fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City’s board, commission, and citizen 21 Packet Pg. 862 7253 Page 2 advisory committee meetings approved in February and March 2021. Attachments Attachment 1 City’s board, commission and citizen advisory committee meeting minutes approved in February and March 2021. Wards: All 21 Packet Pg. 863 21.a Packet Pg. 864 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 865 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 866 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 867 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 868 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 869 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 870 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 871 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 872 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 873 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 874 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 875 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 876 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 877 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 878 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 879 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 880 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 881 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 882 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 883 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 884 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 885 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 886 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 887 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx 21.a Packet Pg. 888 Attachment: Attachment 1 - MCC.January.March 2020 and February.March 2021 BCCAC Approved Minutes.Attachment.(Exhibits A-D).docx Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Investment Portfolio Report for March 2021 (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Report for March 2021. Background The City’s Statement of Investment Policy requires that a monthly Investment Portfolio Report be prepared and submitted to the Mayor and City Council. The Director of Finance will prepare, review, and present the City’s Investment Portfolio Report and confirm that the portfolio is in compliance with the City’s Investment Policy. Discussion The Investment Portfolio Report provides a synopsis of investment activity for the City’s investment portfolio for the month ended March 31, 2021. The City’s Investment Portfolio is in full compliance with the City’s current Investment Policy and California Government Code section 53601, and there is sufficient cash flow from a combination of liquid and maturing securities, bank deposits, and income to meet the City’s expenditure requirements. 2020-2025 Key Strategic Targets and Goals The acceptance and filing of the attached Investment Portfolio Report aligns with Key Target No. 1: Financial Stability by implementing, maintaining, and updating a fiscal accountability plan. Fiscal Impact There is no fiscal impact associated with receiving and filing the monthly investment report. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, accept and file the Monthly Investment Portfolio Repo rt for March 2021. 22 Packet Pg. 889 7254 Page 2 Attachments Attachment 1 Investment Portfolio Management Summary Report Ward: All Synopsis of Previous Council Actions: N/A 22 Packet Pg. 890 22.aPacket Pg. 891Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value March 31, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date State Local Agency Investment Fund 0.355LOCAL AGENCY INVESTMENT FUND10001 57,559,921.94 57,559,921.94 0.36057,559,921.94SYS 1 57,559,921.9457,559,921.9457,559,921.9458,656,696.13Subtotal and Average 0.355 1 Managed Pool Accounts 0.316CALTRUST GOVT INVESTMENT FUND20008 1,781.66 1,781.66 0.3201,781.6620008 1 1,781.661,781.661,781.661,781.21Subtotal and Average 0.316 1 Corporate Notes 1.908AMERICAN HONDA FINANCE CORP30559 1,000,000.00 1,000,316.25 05/10/20231.95001/10/2020 1,029,080.00 A02665WDH1 769 1.732APPLE INC30554 1,000,000.00 999,207.67 09/11/20221.70012/10/2019 1,021,490.00 Aaa037833DL1 528 1.800APPLE INC30561 1,000,000.00 999,174.33 09/11/20241.80001/24/2020 1,039,430.00 Aa037833DM9 1,259 2.152BANK OF AMERICA CORPORATION30549 1,000,000.00 1,000,000.00 10/30/20222.10010/30/2019 999,990.00 Aa06048WD72 577 0.842BANK OF AMERICA CORPORATION30603 2,000,000.00 1,995,186.65 12/23/20250.65001/25/2021 1,965,120.00 Aa06048WK66 1,727 0.529BANK OF AMERICA CORPORATION30619 636,000.00 634,093.80 03/11/20240.40003/30/2021 631,955.0406048WL73 1,075 1.904BANK OF NEW YORK MELLON CORP30547C 2,000,000.00 2,012,267.39 08/16/20232.20010/16/2019 2,079,920.00 Aaa06406FAD5 867 2.268J.P. MORGAN CHASE & CO30551 1,000,000.00 1,000,000.00 12/23/20242.30012/23/2019 998,740.00 Aaa48128GN97 1,362 1.036J.P. MORGAN CHASE & CO30582 1,000,000.00 1,000,000.00 06/23/20251.05006/23/2020 973,150.00 Aaa48128GU40 1,544 0.789J.P. MORGAN CHASE & CO30595 1,000,000.00 1,000,000.00 08/18/20250.80008/18/2020 966,480.00 Aaa48128GV56 1,600 1.731CHARLES SCHWAB CORP30563 1,064,000.00 1,080,789.62 01/25/20232.65001/27/2020 1,106,059.92 Aa808513AT2 664 2.096TOYOTA MOTOR CREDIT CORP30548 1,000,000.00 1,000,000.00 10/22/20242.12510/22/2019 1,002,210.00 Aaa89236TGN9 1,300 0.796TOYOTA MOTOR CREDIT CORP30607 1,000,000.00 999,687.08 10/16/20250.80002/24/2021 982,160.00 A89236THP3 1,659 0.608TOYOTA MOTOR CREDIT CORP30612 1,000,000.00 1,001,909.33 03/25/20240.68103/25/2021 999,230.00 A892331AL3 1,089 0.595TOYOTA MOTOR CREDIT CORP30618 500,000.00 501,153.93 03/25/20240.68103/30/2021 499,615.00 A892331AL3 1,089 16,223,786.0516,294,629.9616,200,000.0014,386,603.56Subtotal and Average 1.430 1,160 Federal Agency Issues - Coupon 1.567FEDERAL FARM CREDIT BANK30555 2,000,000.00 2,007,150.77 12/13/20212.11012/31/2019 2,028,420.00 Aaa3133EH2T9 256 0.572FEDERAL FARM CREDIT BANK30573 1,000,000.00 1,000,000.00 06/03/20240.58006/03/2020 1,000,650.00 Aaa3133ELE67 1,159 0.278FEDERAL FARM CREDIT BANK30596 1,000,000.00 999,707.04 10/05/20230.27010/05/2020 998,570.00 Aaa3133EMBQ4 917 0.158FEDERAL FARM CREDIT BANK30597 1,000,000.00 1,000,000.00 10/13/20220.16010/13/2020 999,700.00 Aaa3133EMCH3 560 0.138FEDERAL FARM CREDIT BANK30598 1,000,000.00 1,000,000.00 04/08/20220.14010/08/2020 1,000,000.00 Aaa3133EMCJ9 372 0.128FEDERAL FARM CREDIT BANK30604 1,000,000.00 999,628.33 02/10/20230.11002/10/2021 998,310.00 Aaa3133EMQH8 680 0.334FEDERAL FARM CREDIT BANK30605 1,000,000.00 999,276.56 02/10/20250.32002/10/2021 984,520.00 Aaa3133EMQG0 1,411 0.473FEDERAL FARM CREDIT BANK30608 2,000,000.00 2,000,000.00 03/03/20250.48003/03/2021 1,987,240.003133EMSC7 1,432 0.740FEDERAL FARM CREDIT BANK30611 1,000,000.00 1,000,000.00 03/17/20250.75003/17/2021 997,330.003133EMTT9 1,446 1.913FEDERAL HOME LOAN BANK30523 1,000,000.00 999,561.80 11/29/20211.87501/19/2017 1,011,910.00 Aaa3130AABG2 242 Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.3b 22.a Packet Pg. 892 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment YTM 360 Page 2 Par Value Book Value Maturity Date Stated RateMarket Value March 31, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Federal Agency Issues - Coupon 1.926FEDERAL HOME LOAN BANK30528 1,000,000.00 999,512.65 11/29/20211.87502/14/2017 1,011,910.00 Aaa3130AABG2 242 1.672FEDERAL HOME LOAN BANK30534 1,000,000.00 1,000,008.78 04/07/20211.75006/14/2017 1,000,280.00 Aaa3130AB5A0 6 1.687FEDERAL HOME LOAN BANK30535 1,000,000.00 1,000,308.61 06/11/20211.87506/22/2017 1,003,590.00 Aaa313379RB7 71 0.615FEDERAL HOME LOAN BANK30606 2,000,000.00 2,000,000.00 02/26/20260.50002/26/2021 1,971,980.003130AL6L3 1,792 0.690FEDERAL HOME LOAN BANK30610 1,000,000.00 1,000,000.00 06/24/20250.70003/24/2021 994,210.003130ALLA0 1,545 0.592FEDERAL HOME LOAN BANK30614 1,000,000.00 1,000,000.00 11/29/20240.60003/29/2021 997,350.00 Aaa3130ALRM8 1,338 1.026FEDERAL HOME LOAN BANK30616 1,000,000.00 1,000,000.00 03/30/20261.04003/30/2021 993,910.003130ALTG9 1,824 0.654FEDERAL HOME LOAN BANK30617 1,000,000.00 999,501.75 03/17/20250.65003/26/2021 997,300.00 Aaa3130ALLP7 1,446 1.016FEDERAL HOME LOAN BANK30620 1,000,000.00 1,000,000.00 03/30/20261.03003/30/2021 998,010.003130ALV68 1,824 1.341FEDERAL HOME LOAN MORTGAGE CRP30518 1,000,000.00 999,174.28 08/12/20211.12511/07/2016 1,003,900.00 Aaa3137EAEC9 133 1.978FEDERAL HOME LOAN MORTGAGE CRP30525C 425,000.00 424,982.55 01/26/20222.00001/30/2017 431,638.50 Aaa3134GAU44 300 2.096FEDERAL HOME LOAN MORTGAGE CRP30529C 1,000,000.00 1,000,000.00 02/28/20222.12502/28/2017 1,018,290.00 Aaa3134GA5T7 333 1.973FEDERAL HOME LOAN MORTGAGE CRP30530C 1,000,000.00 1,000,000.00 09/16/20212.00003/16/2017 1,008,760.00 Aaa3134GA5C4 168 1.933FEDERAL HOME LOAN MORTGAGE CRP30531 1,000,000.00 999,739.43 07/26/20211.87503/06/2017 1,005,710.00 Aaa3134G9M20 116 2.042FEDERAL HOME LOAN MORTGAGE CRP30537C 1,000,000.00 999,282.61 04/26/20222.00011/06/2017 1,020,380.00 Aaa3134GBP55 390 0.444FEDERAL HOME LOAN MORTGAGE CRP30578 1,000,000.00 1,000,000.00 12/29/20230.45006/29/2020 999,080.00 Aaa3134GVS82 1,002 0.641FEDERAL HOME LOAN MORTGAGE CRP30581 1,000,000.00 1,000,000.00 06/30/20250.65006/30/2020 994,150.00 Aaa3134GVT99 1,551 0.493FEDERAL HOME LOAN MORTGAGE CRP30583 1,000,000.00 1,000,000.00 03/28/20240.50006/29/2020 1,000,200.00 Aaa3134GV3T3 1,092 0.444FEDERAL HOME LOAN MORTGAGE CRP30584 1,000,000.00 1,000,000.00 07/22/20240.45007/22/2020 999,780.00 Aaa3134GWCB0 1,208 0.395FEDERAL HOME LOAN MORTGAGE CRP30586 1,000,000.00 1,000,000.00 10/23/20230.40007/23/2020 1,000,170.00 Aaa3134GV6D5 935 0.493FEDERAL HOME LOAN MORTGAGE CRP30587 1,000,000.00 1,000,000.00 10/30/20240.50007/30/2020 1,000,280.00 Aaa3134GWDX1 1,308 0.247FEDERAL HOME LOAN MORTGAGE CRP30590 1,000,000.00 1,000,000.00 11/03/20220.25008/03/2020 999,720.00 Aaa3134GWHD1 581 0.360FEDERAL HOME LOAN MORTGAGE CRP30592 1,000,000.00 1,000,242.64 07/28/20230.37507/30/2020 1,000,570.00 Aaa3134GWDL7 848 0.335FEDERAL HOME LOAN MORTGAGE CRP30593 1,000,000.00 1,000,000.00 04/21/20230.34007/30/2020 1,000,430.00 Aaa3134GV7M4 750 0.404FEDERAL HOME LOAN MORTGAGE CRP30594 1,000,000.00 1,000,000.00 05/13/20240.41008/13/2020 993,620.00 Aaa3134GWHR0 1,138 0.247FEDERAL HOME LOAN MORTGAGE CRP30599 1,000,000.00 1,000,000.00 07/07/20230.25010/26/2020 999,170.00 Aaa3134GWVF0 827 0.263FEDERAL HOME LOAN MORTGAGE CRP30601 1,000,000.00 1,000,000.00 11/02/20230.32011/02/2020 999,120.00 Aaa3134GW6E1 945 0.839FEDERAL HOME LOAN MORTGAGE CRP30615 1,000,000.00 993,028.67 12/23/20250.70003/24/2021 990,240.00 Aaa3134GXHD9 1,727 1.411FEDERAL NATIONAL MORTGAGE ASSO30513 1,000,000.00 999,702.73 10/07/20211.37510/13/2016 1,006,710.00 Aaa3135GOQ89 189 1.401FEDERAL NATIONAL MORTGAGE ASSO30515 1,000,000.00 999,774.83 10/07/20211.37510/31/2016 1,006,710.00 Aaa3135G0Q89 189 1.341FEDERAL NATIONAL MORTGAGE ASSO30517 1,000,000.00 1,000,055.29 10/07/20211.37511/03/2016 1,006,710.00 Aaa3135GOQ89 189 1.716FEDERAL NATIONAL MORTGAGE ASSO30519 1,000,000.00 998,199.00 10/07/20211.37511/18/2016 1,006,710.00 Aaa3135G0Q89 189 1.946FEDERAL NATIONAL MORTGAGE ASSO30524 1,000,000.00 1,000,193.74 01/05/20222.00001/23/2017 1,014,360.00 Aaa3135G0S38 279 1.994FEDERAL NATIONAL MORTGAGE ASSO30526 1,000,000.00 999,845.46 01/05/20222.00002/02/2017 1,014,360.00 Aaa3135G0S38 279 2.014FEDERAL NATIONAL MORTGAGE ASSO30532 1,000,000.00 999,695.83 01/05/20222.00003/02/2017 1,014,360.00 Aaa3135G0S38 279 2.140FEDERAL NATIONAL MORTGAGE ASSO30533C 1,000,000.00 1,000,000.00 03/29/20222.17003/29/2017 1,020,420.00 Aaa3136G4MQ3 362 Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM2) 7.3.0 22.a Packet Pg. 893 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment YTM 360 Page 3 Par Value Book Value Maturity Date Stated RateMarket Value March 31, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Federal Agency Issues - Coupon 0.513FEDERAL NATIONAL MORTGAGE ASSO30580 1,000,000.00 1,000,000.00 12/22/20230.52006/22/2020 1,000,570.00 Aaa3136G4XE8 995 0.592FEDERAL NATIONAL MORTGAGE ASSO30585 1,000,000.00 1,000,000.00 07/22/20250.60007/22/2020 988,070.00 Aaa3136G4ZF3 1,573 0.641FEDERAL NATIONAL MORTGAGE ASSO30588 1,000,000.00 1,000,000.00 08/14/20250.65008/14/2020 989,620.00 Aaa3136G4C43 1,596 0.335FEDERAL NATIONAL MORTGAGE ASSO30589 1,000,000.00 1,000,000.00 08/18/20230.34008/18/2020 1,001,320.00 Aaa3136G4F99 869 0.533FEDERAL NATIONAL MORTGAGE ASSO30600 1,000,000.00 1,000,000.00 10/27/20250.54010/27/2020 982,840.00 Aaa3136G45C3 1,670 0.542FEDERAL NATIONAL MORTGAGE ASSO30602 1,000,000.00 1,000,000.00 11/04/20250.55011/04/2020 982,900.00 Aaa3135GA2N0 1,678 54,418,573.3554,476,058.5054,425,000.0050,908,094.06Subtotal and Average 0.952 874 Supranationals 0.434INTL BK RECON & DEVELOPMENT30609 1,500,000.00 1,566,775.74 01/15/20251.62502/26/2021 1,554,690.00 Aaa459058HT3 1,385 1,566,775.741,554,690.001,500,000.001,567,498.94Subtotal and Average 0.434 1,385 Treasury Securities - Coupon 1.919U.S. TREASURY40001C 1,000,000.00 1,000,215.30 08/31/20212.00002/21/2017 1,008,050.00 Aaa912828D72 152 2.348U.S. TREASURY40002 1,000,000.00 999,587.74 07/31/20212.25002/12/2018 1,007,340.00 Aaa912828WY2 121 2.510U.S. TREASURY40003 1,000,000.00 999,064.95 07/31/20212.25006/04/2018 1,007,340.00 Aaa912828WY2 121 2,998,867.993,022,730.003,000,000.003,450,316.16Subtotal and Average 2.259 131 Certificates of Deposit 1.7261ST TECHNOLOGY FEDERAL CREDIT80034 248,000.00 248,000.00 06/30/20211.75006/30/2016 249,021.1933715LAD2 90 2.022AMERICAN EXPRESS CENTURION BK80038 247,000.00 247,000.00 12/01/20212.05012/01/2016 250,088.8102587DM70 244 2.170BMW BANK80041 247,000.00 247,000.00 02/24/20222.20002/24/2017 251,427.6205580AGK4 329 2.614CAPITAL ONE NATIONAL ASSOC80054 247,000.00 247,000.00 05/30/20242.65005/30/2019 263,583.7314042RLW9 1,155 2.860CITI BANK SALT LAKE CITY UTAH80043 246,000.00 246,000.00 05/24/20212.90005/23/2018 247,032.6617312QM22 53 2.712COMENITY CAPITAL BANK80052 249,000.00 249,000.00 04/15/20242.75004/29/2019 266,035.1920033AU61 1,110 2.416EAGLE BANK80053 249,000.00 249,000.00 05/24/20222.45005/24/2019 255,266.1127002YEP7 418 3.107GOLDMAN SACHS GROUP INC.80046 245,000.00 245,000.00 01/17/20233.15001/16/2019 257,739.2938148P4B0 656 2.910MEDALLION BANK80044 249,000.00 249,000.00 06/04/20212.95006/04/2018 250,272.1258404DCA7 64 2.860MORGAN STANLEY BANK80042 246,000.00 246,000.00 05/10/20212.90005/10/2018 246,764.9461747MX63 39 3.008MORGAN STANLEY PRIVATE BANK80048 246,000.00 246,000.00 01/31/20243.05001/31/2019 264,060.4861760AVF3 1,035 2.564MORGAN STANLEY PRIVATE BANK80055 247,000.00 247,000.00 06/13/20242.60006/13/2019 263,195.5761760AG52 1,169 2.712NORTHWESTERN BANK80049 245,000.00 245,000.00 02/13/20232.75002/13/2019 256,408.89668015AL4 683 2.712OXFORD BANK & TRUST80051 245,000.00 245,000.00 06/28/20222.75002/28/2019 252,601.5769140WAS4 453 2.022STEARNS BANK80039 249,000.00 249,000.00 01/13/20222.05001/13/2017 252,641.80857894SK6 287 1.677SYNCHRONY BANK80036 247,000.00 247,000.00 10/21/20211.70010/21/2016 249,111.2387165FNC4 203 2.959TIAA FSB80050 245,000.00 245,000.00 02/22/20243.00002/22/2019 263,009.6387270LBU6 1,057 Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM2) 7.3.0 22.a Packet Pg. 894 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment YTM 360 Page 4 Par Value Book Value Maturity Date Stated RateMarket Value March 31, 2021 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Certificates of Deposit 2.959UBS FINANCE COMMERCIAL PAPER80045 249,000.00 249,000.00 06/14/20213.00006/13/2018 250,493.7390348JCU2 74 2.022WASHINGTON FIRST BK RESTON80040 247,000.00 247,000.00 02/23/20222.05002/23/2017 251,076.22940727AH3 328 3.156WELLS FARGO BK NA80047 500,000.00 500,000.00 01/18/20243.20001/18/2019 538,669.95949763WU6 1,022 1.726WELLS FARGO BANK80033 249,000.00 249,000.00 06/17/20211.75006/17/2016 249,879.229497485W3 77 5,442,000.005,628,379.955,442,000.005,442,000.00Subtotal and Average 2.548 526 Money Market Funds 0.010WELLS FARGO GOVT MONEY MARKET20002 0.00 0.00 0.0100.00SYS20002 1 0.000.000.000.00Subtotal and Average 0.000 0 134,974,981.04 138,128,703.60 0.845 520138,538,192.01 138,211,706.73Total and Average Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM2) 7.3.0 22.a Packet Pg. 895 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment YTM 360 Page 5 Par Value Book Value Stated RateMarket Value March 31, 2021 Portfolio Details - Cash Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Passbook/Checking Accounts 0.000WELLS FARGO BANK10002 540,956.84 540,956.8403/22/2021 540,956.84SYS10002 1 0.00 134,974,981.04 138,669,660.44 0.845 520 1 552,138.64 11,181.80 552,138.64 11,181.80 Subtotal Accrued Interest at PurchaseAverage Balance 139,090,330.65 138,763,845.37Total Cash and Investments Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM2) 7.3.0 22.a Packet Pg. 896 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment Page 1 Stated Rate Transaction Date March 1, 2021 through March 31, 2021 Activity By Type Balance Portfolio Management CITY OF SAN BERNARDINO CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals State Local Agency Investment Fund (Monthly Summary) LOCAL AGENCY INVESTMENT FUND10001 0.000.360 3,000,000.00SYS 3,000,000.00 57,559,921.94Subtotal0.00 Managed Pool Accounts (Monthly Summary) CALTRUST GOVT INVESTMENT FUND20008 0.460.320 0.0020008 0.00 1,781.66Subtotal0.46 Corporate Notes BANK OF AMERICA CORPORATION30619 634,092.000.400 03/30/2021 0.0006048WL73 JOHNSON & JOHNSON30570 0.001.650 03/01/2021 1,000,000.00478160BS2 TOYOTA MOTOR CREDIT CORP30612 1,001,920.000.681 03/25/2021 0.00892331AL3 TOYOTA MOTOR CREDIT CORP30618 501,155.000.681 03/30/2021 0.00892331AL3 1,000,000.00 16,223,786.05Subtotal2,137,167.00 Federal Agency Issues - Coupon FEDERAL FARM CREDIT BANK30608 2,000,000.000.480 03/03/2021 0.003133EMSC7 FEDERAL FARM CREDIT BANK30611 1,000,000.000.750 03/17/2021 0.003133EMTT9 FEDERAL HOME LOAN BANK30566 0.001.550 03/25/2021 1,000,000.003130AJAX7 FEDERAL HOME LOAN BANK30610 1,000,000.000.700 03/24/2021 0.003130ALLA0 FEDERAL HOME LOAN BANK30614 1,000,000.000.600 03/29/2021 0.003130ALRM8 FEDERAL HOME LOAN BANK30616 1,000,000.001.040 03/30/2021 0.003130ALTG9 FEDERAL HOME LOAN BANK30617 999,500.000.650 03/26/2021 0.003130ALLP7 FEDERAL HOME LOAN BANK30620 1,000,000.001.030 03/30/2021 0.003130ALV68 FEDERAL HOME LOAN MORTGAGE CRP30576 0.000.450 03/01/2021 1,000,000.003134GVB72 FEDERAL HOME LOAN MORTGAGE CRP30577 0.000.420 03/17/2021 1,000,000.003134GVQ50 FEDERAL HOME LOAN MORTGAGE CRP30615 993,000.000.700 03/24/2021 0.003134GXHD9 FEDERAL NATIONAL MORTGAGE ASSO30512C 0.001.350 03/29/2021 1,000,000.003136G4BD4 4,000,000.00 54,418,573.35Subtotal8,992,500.00 Supranationals 1,566,775.74Subtotal Treasury Securities - Coupon U.S. TREASURY40004 0.002.375 03/15/2021 1,000,000.009128284B3 1,000,000.00 2,998,867.99Subtotal0.00 Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.3b 22.a Packet Pg. 897 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment Page 2 Stated Rate Transaction Date March 1, 2021 through March 31, 2021 Activity By Type Balance Portfolio Management CITY OF SAN BERNARDINO CUSIP Investment #Issuer Purchases or Deposits Redemptions or Withdrawals Certificates of Deposit 5,442,000.00Subtotal Money Market Funds (Monthly Summary) 0.00Subtotal Passbook/Checking Accounts (Monthly Summary) WELLS FARGO BANK10002 1,875,640.36 1,334,683.52SYS10002 1,334,683.52 0.00Subtotal1,875,640.36 138,211,706.73Total10,334,683.5213,005,307.82 Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM3) 7.3.0 22.a Packet Pg. 898 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment Page 1 March 2020 through March 2021 Activity Summary Month Portfolio Management End Year Number of Securities Total Invested 360 Equivalent 365 Equivalent Managed Pool Rate Average Term Average Days to Maturity CITY OF SAN BERNARDINO Number of Investments Purchased Number of Investments Redeemed Yield to Maturity 117,383,961.74March202092 898 5271.760 1.784 1.730 6 2 116,849,030.14April202084 799 4311.720 1.744 1.648 0 8 138,861,091.34May202081 650 3401.523 1.544 1.363 0 3 136,635,240.56June202083 712 4051.432 1.452 1.217 11 9 114,967,808.06July202087 905 5251.310 1.328 0.920 6 2 109,430,118.52August202091 994 5871.247 1.265 0.860 6 2 103,596,103.88September202086 986 5731.214 1.231 0.685 0 5 106,022,285.66October202090 1,002 5871.162 1.178 0.620 5 1 110,769,958.19November202092 986 5681.118 1.133 0.560 2 0 113,728,761.06December202090 932 5191.075 1.090 0.540 0 2 128,018,030.40January202188 819 4460.962 0.975 0.458 1 3 136,084,346.44February202190 801 4440.884 0.897 0.407 5 3 138,211,706.73March202196 860 5200.845 0.856 0.360 12 6 Average 120,812,187.90 1.250%1.267%0.874 4 4 873 49888 Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM4) 7.3.0 Report Ver. 7.3.3b 22.a Packet Pg. 899 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment Page 1 March 31, 2021 Interest Earnings Summary Month EndingMarch 31 Fiscal Year To Date Portfolio Management CITY OF SAN BERNARDINO CD/Coupon/Discount Investments: 82,183.79Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 209,252.51 ( 209,508.76) 894,269.41 202,065.01 ( 289,879.23) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 81,927.54 -2,307.17 0.00 806,455.19 -12,247.47 -3,049.12 79,620.37 791,158.60 Pass Through Securities: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 0.00 ( 0.00) 0.00 0.00 ( 0.00) Less Accrued Interest at Purchase During Period ( 0.00)( 0.00) Interest Earned during Period Adjusted by Premiums and Discounts Adjusted by Capital Gains or Losses Earnings during Periods 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Cash/Checking Accounts: 0.00Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 491,028.75 ( 470,826.49) 329,311.64 491,028.75 ( 630,233.71) Interest Earned during Period 20,202.26 190,106.68 Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period 102,129.80 -2,307.17 0.00 996,561.87 -12,247.47 -3,049.12 99,822.63 981,265.28 Portfolio CITY AP Run Date: 04/07/2021 - 09:20 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b 22.a Packet Pg. 900 Attachment: Attachment 1 - Investment Portfolio Management Summary Report (7254 : Investment Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Barbara Whitehorn, Director of Finance Subject: Approval of Commercial and Payroll Disbursements (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California approve the commercial and payroll disbursements for March and April 2021. Background Completed commercial and payroll disbursement registers are submitted to the Mayor and City Council for approval. This happens on a regular basis, typically every meeting for the most recently completed disbursement registers. The detailed warrant registers are available on the City Website, and are updated weekly by the Finance Department. The registers may be accessed by copying the following link into an internet browser: <http://sbcity.org/cityhall/finance/warrant_register.asp> Discussion Gross Payroll Bi-Weekly for March 21, 2021 $2,179,367.83 Total Payroll Demands: $2,179,367.83 The following check registers are being presented for approval: March 25, 2021 2020/21 (Register #39)$790,977.04 April 1, 2021 2020/21 (Register #40)1,082,716.26 Total commercial check demands:$1,873,693.30 The following Electronic Funds Transfer (EFT) registers presented for approval: March 16 to March 19, 2021 2020/21 (Register #1073-#1074)$549,866.95 March 25 to March 29, 2021 2020/21 (Register #1075-#1077)35,953.73 Total commercial EFT demands:$585,820.68 2020-2025 Key Strategic Targets and Goals Approval of the noted check and EFT registers for commercial and payroll disbursements align with Key Target No. 1: Financial Stability by creating a framework for spending decisions. 23 Packet Pg. 901 7260 Page 2 Fiscal Impact Amounts noted in the disbursement registers have no further fiscal impact. Amounts were paid consistent with existing budget authorization and no further budgetary impact is required. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino approve the commercial and payroll disbursements for March and April 2021. Attachments Attachment 1 Payroll Summary Report for March 2021 Attachment 2 Commercial checks & Payroll Register #39 Attachment 3 Commercial checks & Payroll Register #40 Attachment 4 Commercial EFT Registers #1073-1074 Attachment 5 Commercial EFT Registers #1075-1077 Ward: All 23 Packet Pg. 902 23.a Packet Pg. 903 Attachment: Attachment 1 - Payroll Summary Report March 2021 (7260 : Approval of Commercial and Payroll Disbursements (All Wards)) 23.b Packet Pg. 904 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 905 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 906 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 907 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 908 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 909 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 910 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 911 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 912 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 913 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 914 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 915 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 916 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 917 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 918 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 919 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 920 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 921 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.b Packet Pg. 922 Attachment: Attachment 2 - Commercial Checks & Payroll Register #39 (7260 : Approval of Commercial 23.c Packet Pg. 923 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 924 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 925 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 926 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 927 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 928 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 929 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 930 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 931 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 932 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 933 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 934 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 935 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 936 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 937 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 938 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 939 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.c Packet Pg. 940 Attachment: Attachment 3 - Commercial Checks & Payroll Register #40 (7260 : Approval of Commercial 23.d Packet Pg. 941 Attachment: Attachment 4 - Commercial EFT Registers #1073-1074 (7260 : Approval of Commercial and 23.d Packet Pg. 942 Attachment: Attachment 4 - Commercial EFT Registers #1073-1074 (7260 : Approval of Commercial and 23.e Packet Pg. 943 Attachment: Attachment 5 - Commercial EFT Registers #1075-1077 (7260 : Approval of Commercial and 23.e Packet Pg. 944 Attachment: Attachment 5 - Commercial EFT Registers #1075-1077 (7260 : Approval of Commercial and Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Mitch Cochran, IT Director Subject: Request Purchase Authorization for Library Network Refresh (All Wards) Recommendation Adopt Resolution No. 2021-93 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or designee to authorize and issue a Purchase Order to GovConnection, Inc., in the amount of $36,385.58 to purchase network equipment as outlined in the report. Background The Library has developed a network infrastructure to support the computers at the main library and three branch libraries. The Library has bee n able to use eRate funding to provide high speed connectivity to the Internet and among all of the branches. The Internet connection speed is provided at 10Gb through Spectrum Communications. However, the current consumer grade firewall limits the conn ection to 1Gb. The infrastructure is aging. The network switches are over ten years old and are unsupported. Typically, the lifespan for network equipment is approximately ten years. Discussion Staff is proposing to upgrade the Library network infrastructure to include new network switches, new Wifi radio access points and an enterprise grade firewall consistent with other City locations. The new firewall will allow the Library network to take full advantage of the 10Gb Internet connection where today it is limited to 1Gb. The proposed project would include 16 network switches, the enterprise level firewall and 11 Wifi access points (radios). GovConnection was able to work with the manufacturers to develop a special bid which provides additional discounts to lower the cost to the City: GovConnection GovConnection CDWG NewEgg Special Bid Traditional $33,077.80 $42,881.26 $41,989.32 $44,350.51 24 Packet Pg. 945 7261 Page 2 There are no local vendors in the City that would provide competitive pricing. The City purchasing policy requires purchases that exceed $50,000 with a single vendor need to be approved by the Mayor and City Council. This requirement also holds if there are multiple small purchases which total over $50,000 during a fiscal year. The City typically purchases many of the small quantities of systems or spare parts through GovConnection during the year. The proposed purchase and the annual ongoing purchases would exceed the $50,000 purchasing authorization so Mayor and City Council authorization is being requested for this project. 2020-2025 Key Strategic Targets and Goals The purchase of advanced technology aligns with Key Target No. 1: Financial Stability. The services and agreements help to support the creation and management of an asset management plan. The replacement of obsolete technology allows for a lower cost, more robust infrastructure which supports the asset management plan. Fiscal Impact The funds are budgeted in the existing FY 2020/21 Information Technology Network Services Equipment Maintenance account #679-250-0060*5172. City staff is requesting an authorization amount of $36,385.58 which includes the expected cost of $33,077.80 plus a 10% contingency amount. Conclusion It is recommended that the Mayor and City Council of the City o f San Bernardino, California adopt Resolution No. 2021-93 authorizing the City Manager or designee to authorize and issue a Purchase Order to GovConnection, Inc., in the amount of $33,077.80 to purchase network equipment as outlined in the report. Attachments Attachment 1 Resolution No. 2021-93 Attachment 2 GovConnection Price Quotes Ward: All Synopsis of Previous Council Actions: NA 24 Packet Pg. 946 Resolution No. 2021-93 RESOLUTION NO. 2021-93 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZAING THE PURCHASE OF NETWORK EQUIPMENT FROM GOVCONNECTION INC. IN THE AMOUNT OF $36,385.58 WHEREAS, the City of San Bernardino, in an effort to keep the network infrastructure current, purchases network firewalls, switches, and Wi-Fi equipment to provide connectivity for City and public workstations (“Equipment”); and WHEREAS, the City Council provides purchasing authorization for annual purchases that total over $50,000; and WHEREAS, the City desires to purchase new equipment at this time; and WHEREAS, the City has received a favorable quote from GovConnection, Inc. for Equipment. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2, The City Manager is hereby authorized to execute any necessary documents for the purchase of network equipment from GovConnection, Inc. in an amount of not to exceed $36,385.58. SECTION 3. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. 24.a Packet Pg. 947 Attachment: Attachment 1: Resolution No. 2021-93 IT.Authorization to Purchase Network (7261 : Request Purchase Authorization for Library Resolution No. 2021-93 APPROVED and ADOPTED by the City Council and signed by the Mayor and att ested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 24.a Packet Pg. 948 Attachment: Attachment 1: Resolution No. 2021-93 IT.Authorization to Purchase Network (7261 : Request Purchase Authorization for Library Resolution No. 2021-93 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-93, adopted at a regular meeting held on the 21st day of April, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 24.a Packet Pg. 949 Attachment: Attachment 1: Resolution No. 2021-93 IT.Authorization to Purchase Network (7261 : Request Purchase Authorization for Library Account Executive:Joshua Richiron Phone:(800) 800-0019 ext. 33628 Fax:(603) 683-1210 Email:joshua.richiron@connection.com Date:4/9/2021 Valid Through:5/9/2021 Account Manager:Account #:S04834 Phone: Fax: Email: Customer Contact:Mitch Cochran Phone:(909) 384-5947 x3017 Email:cochran_mi@sbcity.org Fax: DELIVERY FOB SHIP VIA SHIP WEIGHT TERMS CONTRACT ID# Destination Small Pkg Ground Service Level 39.00 lbs Net 30 *Line #Qty Item #Mfg. Part #Description Mfg.Price Ext 1 1 37348107 FG-100F-BDL-950 -12 FortiGate 100F w / 24x7 FC & FG (1 Year) Fortinet Fortinet 2,623.50$ 2,623.50$ 2 11 41180067 FAP-231F-A INDOOR WIRELESS AP - TRI RADIO Fortinet Fortinet 312.32$ 3,435.52$ Subtotal 6,059.02$ Fee 0.00$ Shipping and Handling 0.00$ Tax 530.17$ Total 6,589.19$ CITY OF SAN BERNARDINO SAN BERNARDINO, CA 92418 INFORMATION SYSTEMS QUOTE PROVIDED TO:SHIP TO: AB#: 14808932 AB#: 14680677 CITY OF SAN BERNARDINO ACCOUNTS PAYABLE MITCH COCHRAN 290 N D ST INFO SYSTEMS - CITY HALL 290 N D ST SALES QUOTE GovConnection, Inc.# 25177536.01 732 Milford Road PLEASE REFER TO THE ABOVE QUOTE # WHEN ORDERINGMerrimack, NH 03054 SAN BERNARDINO, CA 92401 (909) 384-5947 (909) 384-5947 x3017 5-30 Days A/R/O Important Notice: --- THIS QUOTATION IS SUBJECT TO THE FOLLOWING Terms of Sale: All purchases from GovConnection, Inc. are subject to the Company's Standard Terms of Sale, which describe important legal rights and obligations. You may review the Company's Standard Terms of Sale on the Company's website: www.govconnection.com, or you may request a copy via fax, e-mail, or mail by calling your account representative. The only exception to this policy is if your order is being placed under any one of our many national, state, educational or cooperative Agreements, in which case the Terms and Conditions of your Purchase Order are already pre-negotiated and stated in that Agreement. No other Terms and Conditions shall apply and any other terms and conditions referenced or appearing in your Purchase Order are considered null and void. Please refer to our Quote Number in your order. Page 1 of 2 4/9/2021 24.b Packet Pg. 950 Attachment: Attachment 2: GovConnection Price Quotes (7261 : Request Purchase Authorization for Library Network Refresh (All Wards)) ORDERING INFORMATION GovConnection, Inc. DBA Connection Please contact your account manager with any questions. Ordering Address GovConnection, Inc. 732 Milford Road Merrimack, NH 03054 Remittance Address GovConnection, Inc. Box 536477 Pittsburgh, PA 15253-5906 Please reference the Contract # on all purchase orders. TERMS & CONDITIONS Payment Terms: NET 30 (subject to approved credit) FOB Point: DESTINATION (within Continental US) Maximum Order Limitation: NONE FEIN: 52-1837891 DUNS Number: 80-967-8782 CEC: 80-068888K Cage Code: OGTJ3 Business Size: LARGE Erate Spin Number: 143026005 WARRANTY: Manufacturer’s Standard Commercial Warranty NOTE: It is the end user's responsibility to review, understand and agree to the terms of any End User License Agreement (EULA). Important Notice: --- THIS QUOTATION IS SUBJECT TO THE FOLLOWING Terms of Sale: All purchases from GovConnection, Inc. are subject to the Company’s Standard Terms of Sale, which describe import ant legal rights and obligations. You may review the Company’s Standard Terms of Sale on the Company’s website: www.govconnection.com or you may request a copy via fax, e-mail, or mail by calling your account representative. The only exception to this policy is if your order is being placed under any one of our many national, state, educational or cooperative Agreements, in which case the Terms and Conditions of your Purchase Order are already pre - negotiated and stated in that Agreement. No other Terms and Conditions shall apply and any other terms and conditions referenced or appearing in your Purchase Order are considered null and void. Please refer to our Quote Number in your order. If you require a hard copy invoice for your credit card order, please visit the link below and click on the Proof of Purchase/Invoice link on the left side of the page to print one:https://www.govconnection.com/web/Shopping/ProofOfPurchase.htm Please forward your Contract or Purchase Order to: SLEDOPS@connection.com QUESTIONS: Call 800-800-0019 FAX: 603.683.0374 24.b Packet Pg. 951 Attachment: Attachment 2: GovConnection Price Quotes (7261 : Request Purchase Authorization for Library Network Refresh (All Wards)) Account Executive:Joshua Richiron Phone:(800) 800-0019 ext. 33628 Fax:(603) 683-1210 Email:joshua.richiron@connection.com Date:4/6/2021 Valid Through:5/6/2021 Account Manager:Account #:S04834 Phone: Fax: Email: Customer Contact:Mitch Cochran Phone:(909) 384-5947 x3017 Email:cochran_mi@sbcity.org Fax: DELIVERY FOB SHIP VIA SHIP WEIGHT TERMS CONTRACT ID# Destination Small Pkg Ground Service Level 127.00 lbs Net 30 *Line #Qty Item #Mfg. Part #Description Mfg.Price Ext 1 10 32141991 JL260A#ABA Aruba 2930F 1U RM L3 Managed Switch ARM Cortex-A9 1.0GHz / 1GB RAM / 4GB Flash / 48xGbE / 4xGbE SFP / 1xPSU Aruba HPE Aruba HPE 1,848.24$ 18,482.40$ 2 4 32141924 JL259A#ABA Aruba 2930F 1U RM L3 Managed Switch ARM Cortex-A9 1.0GHz / 1GB RAM / 4GB Flash / 24xGbE / 4xGbE SFP / 1xPSU Aruba HPE Aruba HPE 1,054.73$ 4,218.92$ 3 2 32141916 JL258A#ABA 2930F 1U RM L3 Managed Switch ARM Cortex-A9 1.0GHz / 1GB RAM / 4GB Flash / 8xGbE PoE+ / 2x10GbE / 1xPSU (US) Aruba HPE Aruba HPE 828.01$ 1,656.02$ Subtotal 24,357.34$ Fee 0.00$ Shipping and Handling 0.00$ Tax 2,131.27$ Total 26,488.61$ CITY OF SAN BERNARDINO SAN BERNARDINO, CA 92418 INFORMATION SYSTEMS QUOTE PROVIDED TO:SHIP TO: AB#: 14808932 AB#: 14680677 CITY OF SAN BERNARDINO ACCOUNTS PAYABLE MITCH COCHRAN 290 N D ST INFO SYSTEMS - CITY HALL 290 N D ST SALES QUOTE GovConnection, Inc.# 25176014.01 732 Milford Road PLEASE REFER TO THE ABOVE QUOTE # WHEN ORDERINGMerrimack, NH 03054 SAN BERNARDINO, CA 92401 (909) 384-5947 (909) 384-5947 x3017 5-30 Days A/R/O Important Notice: --- THIS QUOTATION IS SUBJECT TO THE FOLLOWING Terms of Sale: All purchases from GovConnection, Inc. are subject to the Company's Standard Terms of Sale, which describe important legal rights and obligations. You may review the Company's Standard Terms of Sale on the Company's website: www.govconnection.com, or you may request a copy via fax, e-mail, or mail by calling your account representative. The only exception to this policy is if your order is being placed under any one of our many national, state, educational or cooperative Agreements, in which case the Terms and Conditions of your Purchase Order are already pre-negotiated and stated in that Agreement. No other Terms and Conditions shall apply and any other terms and conditions referenced or appearing in your Purchase Order are considered null and void. Please refer to our Quote Number in your order. Page 1 of 2 4/6/2021 24.b Packet Pg. 952 Attachment: Attachment 2: GovConnection Price Quotes (7261 : Request Purchase Authorization for Library Network Refresh (All Wards)) ORDERING INFORMATION GovConnection, Inc. DBA Connection Please contact your account manager with any questions. Ordering Address GovConnection, Inc. 732 Milford Road Merrimack, NH 03054 Remittance Address GovConnection, Inc. Box 536477 Pittsburgh, PA 15253-5906 Please reference the Contract # on all purchase orders. TERMS & CONDITIONS Payment Terms: NET 30 (subject to approved credit) FOB Point: DESTINATION (within Continental US) Maximum Order Limitation: NONE FEIN: 52-1837891 DUNS Number: 80-967-8782 CEC: 80-068888K Cage Code: OGTJ3 Business Size: LARGE Erate Spin Number: 143026005 WARRANTY: Manufacturer’s Standard Commercial Warranty NOTE: It is the end user's responsibility to review, understand and agree to the terms of any End User License Agreement (EULA). Important Notice: --- THIS QUOTATION IS SUBJECT TO THE FOLLOWING Terms of Sale: All purchases from GovConnection, Inc. are subject to the Company’s Standard Terms of Sale, which describe important legal rights and obligations. You may review the Company’s Standard Terms of Sale on the Company’s website: www.govconnection.com or you may request a copy via fax, e-mail, or mail by calling your account representative. The only exception to this policy is if your order is being placed under any one of our many national, state, educational or cooperative Agreements, in which case the Terms and Conditions of your Purchase Order are already pre - negotiated and stated in that Agreement. No other Terms and Conditions shall apply and any other terms and conditions referenced or appearing in your Purchase Order are considered null and void. Please refer to our Quote Number in your order. If you require a hard copy invoice for your credit card order, please vi sit the link below and click on the Proof of Purchase/Invoice link on the left side of the page to print one:https://www.govconnection.com/web/Shopping/ProofOfPurchase.htm Please forward your Contract or Purchase Order to: SLEDOPS@connection.com QUESTIONS: Call 800-800-0019 FAX: 603.683.0374 24.b Packet Pg. 953 Attachment: Attachment 2: GovConnection Price Quotes (7261 : Request Purchase Authorization for Library Network Refresh (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Edward Erjavek, Library Director Subject: Grant Award for Virtual Youth Programming (All Wards) Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2021-94 accepting grant funding from the California State Library for the Virtual Youths at the Library project and authoriz e the Director of Finance to amend the FY 2020/21 Budget to appropriate funding . Background The California State Library (CSL) awards and administers grants of federal Library Services and Technology Act (LSTA) funds and the Library seeks to obtain fundin g to supplement annual funding from the City's General Fund. Discussion This funding is to be used for four Virtual Youth Programs between now and August 31, 2021. Funding will cover supplies and materials, as well as program leaders to “teach” the various topics of each event. Recordings of the events will also be available to provide additional community outreach beyond the 50 participant limit for the “live” virtual programs. 2020-2025 Key Strategic Targets and Goals The acceptance and administration of this funding aligns with Key Target No. 1: Financial Stability and Key Target No. 3: Improved Quality of Life, with customer service. Fiscal Impact No fiscal impact to the City's General Fund. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, Adopt Resolution No. 2021-94 accepting grant funding from the California State Library for the Virtual Youths at the Library project and authorize the Director of Finance to amend the FY 2020/21 Budget to appropriate funding. 25 Packet Pg. 954 7250 Page 2 Attachments Attachment 1 Resolution 2021-94 Attachment 2 Virtual Youths Grant Award Packet Attachment 3 Virtual Youths Grant Award Letter Ward: All Synopsis of Previous Council Actions: None 25 Packet Pg. 955 Resolution No. 2021-94 RESOLUTION NO. 2021-94 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACCEPTING GRANT FUNDING FROM THE CALIFORNIA STATE LIBRARY FOR THE VIRTUAL YOUTHS AT THE LIBRARY PROJECT AND AUTHORIZE THE DIRECTOR OF FINANCE TO AMEND THE FY 2020/21 BUDGET TO APPROPRIATE FUNDING WHEREAS, City of San Bernardino Public Library has been awarded a Virtual Youths at the Library project award in the amount of $12,000; and WHEREAS, The California State Library (CSL) awards and administers grants of federal Library Services and Technology Act (LSTA) funds and the Library seeks to obtain funding to supplement annual funding from the City's General Fund. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager, or the City Manager’s designee, is hereby authorized to execute the grant agreement between the City of San Bernardino and the California State Library and accept the FY2020-21 Virtual Youths at the Library project award in the amount of $12,000, attached hereto and incorporated herein as Exhibit A. SECTION 3. The Director of Finance is hereby authorized to amend the FY2020/21 Adopted Budget appropriating $12,000 for Virtual Youth Services. SECTION 4. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidit y shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. 25.a Packet Pg. 956 Attachment: Attachment 1: Resolution 2021-94 Library Virtual Grants Reso [Revision 1] (7250 : Grant Award for Virtual Youth Programming (All Resolution No. 2021-94 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 25.a Packet Pg. 957 Attachment: Attachment 1: Resolution 2021-94 Library Virtual Grants Reso [Revision 1] (7250 : Grant Award for Virtual Youth Programming (All Resolution No. 2021-94 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-94, adopted at a regular meeting held on the 21st day of April, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 25.a Packet Pg. 958 Attachment: Attachment 1: Resolution 2021-94 Library Virtual Grants Reso [Revision 1] (7250 : Grant Award for Virtual Youth Programming (All California State Library LSTA GA PAGE 1 Fiscal Office LSTA GRANT AWARD # 40-9150 P.O. 942837 Sacramento, CA 94237-0001 Project Title: Virtual Youths at the Library System/Agency: San Bernardino Public Library CONSOLIDATED APPLICATION NOTIFICATION OF GRANT AWARD I. The subrecipient designated above hereby certifies to the California State Library, for a grant of funds in the amount $12,000 . This block grant will provide library services as set forth in the LSTA Service Project Application as approved and/or as amended by the California State Librarian. TERMS AND CONDITIONS The subrecipient agency and its named or designated fiscal agent hereby assures the California State Library that: 1. It is mutually understood between the parties that this grant award may have been written before ascertaining the availability of congressional appropriation of funds, for the mutual benefit of both parties in order to avoid program and fiscal delays which would occur if the grant award were executed after that determination was made. 2. This grant award is valid and enforceable only if sufficient funds are made available to the State by the United States government for the Fiscal Year 2020/21 for the purposes of this program. In addition, this grant award is subject to any additional restrictions, limitations, or conditions enacted by the Congress or any statute enacted by the Congress which may affect the provisions, terms or funding of this grant award in any manner. 3. It is mutually agreed that if the Congress does not appropriate sufficient funds for the program, this grant award shall be amended to reflect any reduction in funds. 4. The California State Library has the option to amend the grant award to reflect any reduction of funds. 5. Upon the grant award approval by the State Librarian, one (1) completed set of this CONSOLIDATED APPLICATION NOTIFICATION OF GRANT AWARD will be sent to the subgrantee. Such copy shall be the officially approved agreement for the conduct of the appro ved project. 6. “Subrecipient” means the government or other legal entity to which a subaward is awarded and which is accountable to the grantee for the use of the funds provided. 7. The subrecipient will make reports to the State Librarian in such form and containing such information as may be required to enable the California State Library to perform its duties. The subrecipient will keep such records and afford such access as the California State Librarian, California State Library may find necessary to assure the correctness and verification of such reports. 25.b Packet Pg. 959 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) California State Library LSTA GA PAGE 2 Fiscal Office LSTA GRANT AWARD # 40-9150 P.O. 942837 Sacramento, CA 94237-0001 Project Title: Virtual Youths at the Library System/Agency: San Bernardino Public Library CONSOLIDATED APPLICATION NOTIFICATION OF GRANT AWARD, LSTA (continued) 8. The control of funds and title to property derived there from shall be in a subrecipient agency for the uses and purposes provided; a subrecipient agency will administer such property and funds and shall apply funds only for the purposes for which they were granted. 9. The expenditure under this program will not be used to supplant subrecipient effort. 10. This agreement is entered into under provisions of the Library Services and Technology Act, Public Law 104-208 on September 30, 1996; and Congressional Record – House, H11644- H11728 on September 28, 1996, H12266-H12267 on October 3, 1996; and 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, December 26, 2013. Congress enacted the Museum and Library Services Act of 2010 (Pub. L. 111-340, codified at 20 U.S.C. § 9101 et seq.), which also incorporates Library Services and Technology Act (LSTA). 11. Performance of the provisions of this agreement is subject to the conditions and availability of funds as awarded by the State Librarian under said Act. 12. The terms of this agreement shall be from upon execution until the end of the grant period, but shall be subject to termination by either party by giving written notice to the other party at least thirty (30) days prior to the effective date of termination. In the event this agreement is so terminated, the subrecipient shall deliver to the State Librarian copies of all reports and/or materials prepared up to the date of termination, and the State Librarian shall determine, and pay the subrecipient for the necessary and appropriate expenditures and obligations to the date of termination which have not been covered by prior inst allments heretofore paid to the subrecipient. If funding has been advanced to the subrecipient, any unobligated balances, as determined by the State Librarian, shall be returned to the State Library within 60 days of the notice of termination. 13. The State Librarian is empowered to review, audit, and inspect the project for compliance with this agreement. LIMITATION OF EXPENDITURE Expenditure for all projects must conform to the approved budget, as amended, and with applicable Federal and State laws and regulations. 25.b Packet Pg. 960 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) California State Library LSTA GA PAGE 3 Fiscal Office LSTA GRANT AWARD # 40-9150 P.O. 942837 Sacramento, CA 94237-0001 Project Title: Virtual Youths at the Library System/Agency: San Bernardino Public Library CONSOLIDATED APPLICATION NOTIFICATION OF GRANT AWARD, LSTA (continued) During the grant period, the subrecipient may find that the awarded budget may need to be modified. Budget changes, requests for additional funds, or requests for reductions in the grant funding award must be discussed with the assigned State Library Grant Monitor and a Grant Award Modification (LSTA Form 4) may be required to be submitted according to the instructions. Approval is by the State Librarian. Adjustments should be reported on the next financial report. Any adjustments in approved budgets must be documented and documentation retained in project accounts. The total amount paid by the California State Library to the subrecipient under this agreement shall not exceed $12,000 and shall be expended/encumbered in the designated grant period. REPORTS AND CLAIMS It is the responsibility of the recipient of these instructions to see that the proper individual to supply the required reports and claims receives the instructions and makes the required reports and claims to the California State Library. I. The subrecipient shall be responsible for the submission of two Narrative Reports, unless otherwise noted in the Grant Guide for the project located on the CSL’s website, on the progress and activities of the project to the State Library within 30 days following the end of the designated quarter. II. The subrecipient shall submit quarterly Financial Reports to the State Library, unless otherwise noted in the Grant Guide for the project located on the CSL’s website. These reports are to reflect the expenditures made by the subrecipient under the agreement. The financial reports are to be submitted within 30 days following the end of the designated quarter. III. To obtain payment hereunder the subrecipient shall submit authorized claims provided by the State Library for that purpose, on each of the following mentioned dates for payment, and the California State Library agrees to reimburse the Library as soon thereafter as State fiscal procedures will permit. IV. The final 10% of the grant award (if applicable) is payable only if the subrecipient fulfills all project reporting requirements and returns all unspent funds by the time specified in the Grant Guide. Failure to provide timely reports is a serious breach of a grant recipient’s administrative duty under the award, which may result in federal audit exceptions against the State and the loss of LSTA funds. The State Librarian may extend the final deadline for good cause. Request for extension beyond the final deadline of the grant period must be received at least 30 days prior to that deadline. Payment will be provided to cover the expenditures incurred by the subrecipient for the project in the following manner: $12,000 upon execution of the agreement and submission of claim by fiscal agent If the amount of payment made by the California State Library shall exceed the actual expenses during the term of this agreement, as reflected in the financial reports to be filed by the subrecipient, the subrecipient shall refund to the California State Library the amount of such excess payment. 25.b Packet Pg. 961 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) LSTA PAGE 4 LSTA GRANT AWARD # 40-9150 Project Title: Virtual Youths at the Library System/Agency: San Bernardino Public Library CERTIFIC ATIONS REGARDING: NONDISCRIMINATION; DEB ARMENT AND SUSPENSION; AND OTHER ASSU RANCES The authorized representative certifies that the Subrecipient or its Fiscal Agent will comply with the following: Nondiscrimination (a) Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. § 2000 et seq.), which prohibits discrimination on the basis of race, color, or national origin; (b) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 701 et seq.), which prohibits discrimination on the basis of disability (note: IMLS applies the regulations in 45 C.F.R part 1170 in determining compliance with § 504 as it applies to recipients of Federal assistance); (c) Title IX of the Education Amendments of 1972, as amended (20 U.S.C. § 1681–83, 1685-86), which prohibits discrimination on the basis of sex in education programs; (d) T he Age Discrimination in Employment Act of 1975, as amended (42 U.S.C. § 6101 et seq.), which prohibits discrimination on the basis of age; and (e) The requirements of any other nondiscrimination statute(s) which may apply. The authorized representative certifies to the best of his or her knowledge and belief that neither the Subrecipient nor its Fiscal Agent: Debarment and Suspension (a) Are presently excluded or disqualified; (b) Have been convicted within the preceding three years of any of the offenses listed in 2 C.F.R. part 180.800(a) or had a civil judgment rendered against it or them for one of those offenses within that time period; fraud, antitrust, embezzlement, forgery, bribery, tax evasion, making false statements, receiving stolen property, or similar offenses so serious as to affect the integrity of the subrecipient or its fiscal agent. (c) Are presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses listed in 2 C.F.R. part 180.800(a) and enumerated above. (d) Have had one or more public transactions (Federal, State, or local) terminated within the preceding three years for cause or default. Trafficking in Persons  engages in trafficking in persons, procures a commercial sex act, or uses forced labor  procures a commercial sex act during the period of time that the award is in effect  uses forced labor in the performance of the grant Federal Debt Status Representative certifies to the best of his or her knowledge and belief that the Subrecipient is not delinquent in the repayment of any Federal debt. 25.b Packet Pg. 962 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) LSTA PAGE 5 LSTA GRANT AWARD # 40-9150 Project Title: Virtual Youths at the Library System/Agency: San Bernardino Public Library CERTIFIC ATIONS REGARDING: NONDISCRIMINATION; DEB ARMENT AND SUSPENSION; AND OTHER ASSURANCES (continued) Certification Regarding Lobbying Activities (Applies to Applicants Requesting Funds in Excess of $100,000) (31 U.S.C. § 1352) (a) No Library Services and Technology Act funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an emplo yee of a Member of Congress in connection with the awarding of a Federal contract, the making of a Federal grant, the making of a Federal loan, the entering into of a cooperative agreement, or the extension, continuation, renewal, amendment, or modification of a Federal contract, grant, loan, or cooperative agreement. (b) No Library Services and Technology Act funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any State agency, Member of the Legislature, an officer or employee of the Legislature, or an employee of a Member of the Legislature in connection with legislative action through oral or written communication with State legislative officials, or solicitation of others to influence or attempt to influence legislative action. (c) No Library Services and Technology Act or other federal funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence any officer or employee of any count y, district, or city agency, in connection with legislative action through oral or written communication with officials, or solicitation of others to influence or attempt to influence legislative action. LSTA funds will not be used for costs to:  draft legislation or resolutions  travel to meetings of governmental bodies urge passage of legislation or resolutions  surve y voters regarding passage and drafting of legislation or resolutions  pay governmental fees (use fees, ballot filing fees, permits, etc.) Drug-Free Workplace (a) Continue to provide a drug-free workplace by complying with the requirements in 2 C.F.R. part 3186 (Requirements for Drug-Free Workplace (Financial Assistance)). In particular, the recipient must comply with drug- free workplace requirements in subpart B of 2 C.F.R. part 3186, which adopts the Government-wide implementation (2 C.F.R. part 182) of sections 5152-5158 of the Drug-Free Workplace Act of 1988 (P. L. 100-690, Title V, Subtitle D; 41 U.S.C. §§ 701-707). (b) This includes, but is not limited to: making a good faith effort, on a continuing basis, to maintain a drug-free workplace; publishing a drug-free workplace statement; establishing a drug-free awareness program for the employees; taking actions concerning employees who are convicted of violating drug statutes in the workplace. 25.b Packet Pg. 963 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) LSTA PAGE 6 LSTA GRANT AWARD # 40-9150 Project Title: Virtual Youths at the Library System/Agency: San Bernardino Public Library The authorized representative also certifies that the Subrecipient or its Fiscal Agent will comply with the following:  will comply with all requirements by the Federal -sponsoring agency concerning special requirements of law, program requirements, and other administrative requirements.  will insure that the facilities under its ownership, lease or supervision which shall be utilized in the accomplishment of the project are not listed on the Environmental Protection Agency's (EPA) list of violating facilities and that it will notify the Federa l grantor agency of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be used in the project is under consideration for listing by the EPA.  will comply with the flood insurance purchase requirements of Section 102(a) requires, on or after March 2, 1975, the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any Federal financial assistance for construction or acquisition purposes for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. The phrase "Federal financial assistance" includes any form of loan, grant, guaranty, insurance payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance.  will assist the Federal grantor agency in its compliance with Section 106 of the National Historic Preservation Act of 1966 as amended (16 U.S.C. 470), Executive Order 11593, and the Archeological and Historic Preservation Act of 1966 (16 U.S.C. 469a -1 et seq.) by (a) consulting with the State Historic Preservation Officer on the conduct of investigations, as necessary to identify properties listed in or eligible for inclusion in the National Register of Historic Places that are subject to adverse effects (see 36 CFR Part 800.8) by the activity, and notifying the Federal grantor agency of the existence of any such properties, and by (b) complying with all requirements established by the Federal grantor agen cy to avoid or mitigate adverse effects upon such properties. 25.b Packet Pg. 964 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) ATTENTION ATTACHED IS THE CLAIM FOR PAYMENT AND THE LSTA CERTIFICATION. THESE TWO FORMS MUST BE COMPLETED, SIGNED (WITH ORIGINAL SIGNATURES), AND RETURNED TO: CALIFORNIA STATE LIBRARY FISCAL OFFICE – LSTA P.O. BOX 942837 SACRAMENTO, CA 94237-0001 THESE FORMS MUST BE SUBMITTED AS SOON AS POSSIBLE TO AVOID DELAY IN RECEIVING FUNDS. YOU SHOULD RETAIN COPIES OF THE CLAIM AND THE CERTIFICATION FOR YOUR FILES. THESE ARE THE ONLY DOCUMENTS THAT NEED TO BE RETURNED AT THIS TIME. THANK YOU. Attachments 25.b Packet Pg. 965 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) 25.b Packet Pg. 966 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) 25.b Packet Pg. 967 Attachment: Attachment 2: Virtual Youths Grant Award Packet (7250 : Grant Award for Virtual Youth Programming (All Wards)) 25.c Packet Pg. 968 Attachment: Attachment 3: Virtual Youths Grant Award Letter (7250 : Grant Award for Virtual Youth Programming (All Wards)) Library – Courts Building 916-323-9759 P.O. Box 942837 csl-adm@library.ca.gov Sacramento, CA 94237-0001 www.library.ca.gov THE BASICS – YOUR LSTA GRANT AWARD The following provides all of the basic information about your grant and managing your grant. Award #: 40-9150 File #: V-31 IMLS #: LS-246140-OLS-20 Library: San Bernardino Public Library Project Title: Virtual Youths at the Library Award Amount: $12000 2019/2020 LSTA APPROVED BUDGET Salaries/Wages/Benefits $0 Consultant Fees $0 Travel $0 Supplies/Materials $9,750 Equipment ($5,000 or more per unit) $0 Services $2,250 Project Total $12,000 Indirect Cost Grant Total $12,000 Start Date: March 17, 2021 End Date: August 31, 2021 This project will be officially closed as of the end date listed above and no new expenditures may be generated, nor may any additional funded project activities occur. Unexpended or unencumbered funds must be returned within 30 days of the end date. However, if funds were encumbered prior to the end date, this project is allowed 45 days to liquidate those encumbrances. Any funds not liquidated are to be returned with the liquidation report within 60 days of the end date. REPORTING Financial and program narrative reports are required. All required reporting materials will be located on the California State Library’s website at http://www.library.ca.gov/grants/library-services-technology-act/ . The forms, along with instructions, will be on the website under the heading “Manage Your LSTA Grant.” The Grant Guide for this project will list specific reporting due dates. This letter and the enclosed list of LSTA procedural requirements amend the Consolidated Application/Grant Award Certification document and must remain a part of all your existing copies. Failure to provide timely reports is a serious breach of a grant recipient’s administrative duty under the grant program, which may result in federal audit exceptions against the state and the loss of LSTA funds. PAYMENTS Please note this clarification regarding payments. If your full grant amount is $20,000 or more, ten percent (10%) of the grant award is withheld until the end of the project period. It is payable only if the grant recipient fulfills all project reporting requirements and expends all funds, or returns all unspent grant funds, by the time specified in the grant program. 25.c Packet Pg. 969 Attachment: Attachment 3: Virtual Youths Grant Award Letter (7250 : Grant Award for Virtual Youth Programming (All Wards)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Amendments to the Public Works Vendor Service Agreements (All Wards) Recommendation Adopt Resolution No. 2021-95 of the Mayor and City Council of the City of San Bernardino, California, authorizing the First Amendment to the Vendor Service Agreements for (1) RP Landscape and Irrigation, (2) Quality Light and Electrical, (3) Sierra Pacific Electrical Contracting, (4) C&W Construction Specialties Inc., and (5) Fairview Ford Sales Inc. Background On March 3, 2021, the Mayor and the City Council approved the Public Works Department mid-year budget increases to continue and restore multiple operations and maintenance services within the City. The increase in service levels will require Council approval to amend the City’s existing vendor agreements with the following: (1) RP Landscape and Irrigation, (2) Quality Light and Electrical, (3) Sierra Pacific Electrical Contracting, (4) C&W Construction Specialties Inc., and (5) Fairview Ford Sales Inc. These increases will positively affect City services to street lights, traf fic signals, parks irrigation smart controllers, guard rails, fleet, and other related work. Discussion The vendor service agreements in place with (1) RP Landscape and Irrigation, (2) Quality Light and Electrical, (3) Sierra Pacific Electrical Contracting, (4) C&W Construction Specialties Inc., and (5) Fairview Ford Sales Inc. were approved with the City’s procurement process and currently assist the Public Works Department with addressing critical repairs and services. The table below outlines each vendo r’s established purchase order levels for FY 2020/21, and the increases approved by the City Council as part of the Mid-Year Budget amendment approved by the Mayor and City Council on March 3, 2021. 26 Packet Pg. 970 7192 Page 2 REF VENDOR ACCOUNT NUMBER PRODUCT/SERVICE SERVICE AGREEMENT AMOUNT SERVICE AGREEMENT INCREASE NEW SRVC. AGREEMENT AMOUNT (1) RP Landscape and Irrigation 001-400-0072-5506 Install smart irrigation controllers, related materials $1,299,751 $25,000 $1,324,751 (2) Quality Light and Electrical 126-400-0092-5502 Street lighting repairs 525,900 100,000 625,900 (3) Sierra Pacific Electrical 128-400-0093-5502 Signal pole replacements, related repairs 136,500 113,500 250,000 (4) C&W Guard Rail Specialties Inc. 126-400-0152-5502 Replace or repair guardrails 90,000 60,000 150,000 (5) Fairview Ford Sales Inc. 635-400-0100-5173 Service and parts 120,000 20,000 140,000 TOTAL $2,172,151 $318,000 $2,490,651 *Please note, the original C&W Construction Specialties Inc. agreement was up to $100,000. However, due to previo us internal budget reductions the purchase order was capped at $90,000. **The Mid-Year Budget Amendment approved the total amount of $318,000. (1) RP Landscape and Irrigation maintains the landscape and irrigation for approximately 500 acres of City parks. The vendor services amendment will initiate essential smart irrigation controller installations and related repairs. Such technology is vital to quickly alert staff regarding water leaks while automatically shutting off the master valve system to prevent costly expenses. (2) Quality Light and Electrical provides street light repairs and replacement services related to hardware and electrical issues, as well as, emergency knockdown replacements for approximately 7,000 City-owned street lights. (3) C&W Construction Specialties Inc. repairs and installs guardrail systems that maintain the safety of vehicle and pedestrian travel. Due to on -going vehicle accidents, this account is currently exhausted. (4) Sierra Pacific Electrical Contracting provides critical responses to traffic signal knockdowns from vehicle accidents. In addition, the vendor assists with maintenance and relocation upgrades that are needed within the City's aging infrastructure. (5) Fairview Ford Sales Inc. is a local Ford dealer providin g required vehicle parts and repair services to the City's extensive fleet inventory. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1b: Financial Stability - Implement, maintain, and update a fiscal accountability plan and create a framework for spending decisions. Fiscal Impact There is no additional General Fund impact associated with this action. Additional funding in the amount of $318,000 to support the identified service agreement amendments with (1) RP Landscape and Irrigation, (2) Quality Light and Electrical, (3) Sierra Pacific Electrical Contracting, (4) C&W Construction Specialties, Inc., and (5) 26 Packet Pg. 971 7192 Page 3 Fairview Ford Sales Inc. was included in the FY 2020/21 Mid -Year Budget amendment adopted on March 3, 2021. If necessary, on-going funding related to these amendments will be included in future operating budgets. Conclusion Adopt Resolution No. 2021-95 of the Mayor and City Council of the City of San Bernardino, California, authorizing the First Amendment to the Vendor Service Agreements for (1) RP Landscape and Irrigation, (2) Quality Light and Electrical, (3) Sierra Pacific Electrical Contracting, (4) C&W Construction Specialties Inc., and (5) Fairview Ford Sales Inc. Attachments Attachment 1 Resolution No. 2021-95 Attachment 2 Exhibit “A” - RP Landscape and Irrigation Vendor Services Agreement - First Amendment Attachment 3 Exhibit “B” - Quality Light and Electrical Contractual Services Agreement - First Amendment Attachment 4 Exhibit “C” - Sierra Pacific Contractual Services Agreement - First Amendment Attachment 5 Exhibit “D”- C&W Construction Specialties Inc. Vendor Services Agreement - First Amendment Attachment 6 Exhibit “E” - Fairview Ford Sales Inc. Vendor Services Agreement - First Amendment Attachment 7 RP Landscape and Irrigation Vendor Services Agreement Attachment 8 Quality Light and Electrical Contractual Services Agreement Attachment 9 Sierra Pacific Contractual Services Agreement Attachment 10 C&W Construction Specialties Inc. Vendor Services Agreement Attachment 11 Fairview Ford Sales Inc. Vendor Services Agreement Ward: All Synopsis of Previous Council Actions: March 3, 2021 The Mayor and City Council approved the FY2020/21Mid-Year Budget Report as amended June 20, 2018 The Mayor and City Council adopted Resolution No. 2018-173, approving an agreement with RP Landscape and Irrigation April 18, 2018 The Mayor and City Council adopted Resolution No. 2018-112, approving an agreement with Quality Light and Electrical October 21, 2020 The Mayor and City Council adopted Resolution No. 2020-255, approving an agreement with Sierra Pacific Electrical Contracting October 17, 2018 The Mayor and City Council adopted Resolution No. 2018 -282, approving an agreement with C&W Construction Specialties Inc. 26 Packet Pg. 972 7192 Page 4 September 6, 2017 The Mayor and City Council adopted Resolution No. 2017-168, approving an agreement with Fairview Ford Sales Inc. 26 Packet Pg. 973 Resolution No. 2021-95 RESOLUTION NO. 2021-95 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE FIRST AMENDMENTS TO THE VENDOR SERVICE AGREEMENTS FOR RP LANDSCAPE AND IRRIGATION, QUALITY LIGHT AND ELECTRICAL, SIERRA PACIFIC ELECTRICAL CONTRACTING, C&W CONSTRUCTION SPECIALTIES, INC., AND FAIRVIEW FORD SALES, INC. WHEREAS, the Public Works Department oversees the operations and maintenance of City infrastructure; and WHEREAS, the City currently contracts with a number of vendors to assist the Public Works Department with critical repairs and services; and WHEREAS, Vendor Service Agreements have been approved through the City’s procurement process; and WHEREAS, On March 3, 2021, the Mayor and the City Council approved the Public Works Department FY2020/21 Mid-Year budget increases in an effort to restore various operations and maintenance services within the City including street lights, traffic signals, parks irrigation smart controllers, guardrails, fleet, and other related work; and WHEREAS, the City Council now wishes to amend the existing Vendor Service Agreements with RP Landscape and Irrigation, Quality Light and Electrical, Sierra Pacific Electrical Contracting, C&W Construction Specialties, Inc. and Fairview Ford Sales, Inc. to reflect approved increases to these services. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager or designee is hereby authorized to execute the following First Amendments to the Vendor Services Agreements, attached hereto and incorporated herein as Exhibit “A” with RP Landscape and Irrigation for landscape maintenance of the City’s North, Central, and South Park sites, Exhibit “B” with Quality Light and Electrical for streetlight repair services, Exhibit “C” with C&W Construction Specialties, Inc. for guardrail maintenance, repair, and installation, Exhibit “D” Sierra Pacific Electrical Contracting for replacement of traffic signal and streetlight facilities, Exhibit “E” with Fairview Ford Sales, Inc. for parts and services. SECTION 3. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions, and to this end the provisions of this Resolution are declared to be severable. 26.a Packet Pg. 974 Attachment: Attachment 1 - Resolution No. 2021-95 [Revision 2] (7192 : Amendments to the Public Works Vendor Service Agreements (All Resolution No. 2021-95 SECTION 4. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 5. Effective Date. This Resolution shall become effective for the Fiscal Year 2020-2021 based on approval of the 2020-2021 Fiscal Year budgets. APPROVED and ADOPTED by the City Council and signed by the Mayor and att ested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 26.a Packet Pg. 975 Attachment: Attachment 1 - Resolution No. 2021-95 [Revision 2] (7192 : Amendments to the Public Works Vendor Service Agreements (All Resolution No. 2021-95 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-95, adopted at a regular meeting held on the 21st day of April, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 26.a Packet Pg. 976 Attachment: Attachment 1 - Resolution No. 2021-95 [Revision 2] (7192 : Amendments to the Public Works Vendor Service Agreements (All EXHIBIT A FIRST AMENDMENT TO THE VENDOR SERVICES AGREEMENT CITY OF SAN BERNARDINO and RP LANDSCAPE AND IRRIGATION CITY: CITY OF SAN BERNARDINO 290 North “D” Street, 3rd Floor San Bernardino, CA 92401 CONSULTANT: RP Landscape and Irrigation 1905 W. Rialto Avenue P.O. Box 1200 San Bernardino, CA 92402 SERVICES: Landscape Maintenance of the City’s North, Central, and South Park Sites AMOUNT: $1,324,751 (as amended) MANAGING DEPARTMENT: Public Works 26.b Packet Pg. 977 Attachment: Attachment 2 - Exhibit “A” - RP Landscape and Irrigation Vendor Services Agreement - First Amendment (7192 : Amendments to EXHIBIT A FIRST AMENDMENT TO VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND RP LANDSCAPE AND IRRIGATION This First Amendment to the Vendor Services Agreement (“Agreement”), dated as of April 21, 2021 (the "Amendment"), is made and entered into by and between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California ("City"), and RP Landscape and Irrigation, a sole proprietorship ("Contractor," and together with City, the "Parties," and each, a "Party''). WHEREAS, the Parties have entered into an Agreement, dated as of June 20, 2018 to perform Landscape Maintenance of the City's North, Central and South Park Sites (the "Existing Agreement"); and WHEREAS, pursuant to Section 3 of the Existing Agreement, the City Manager is authorized to renew the term of the Existing Agreement for two additional one-year periods; and WHEREAS, the City Manager exercised the two renewal options for FY 2019- 2020 and FY 2020/21 respectively; and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the contract amount on the terms and subject to the conditions set forth herein; and WHEREAS, pursuant to Section 21 of the Existing Agreement, the amendment contemplated by the Parties must be contained in a written agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: SECTION 2 COMPENSATION AND EXPENSES (Verbatim) "2.1" is amended to replace the term For the services delineated above, the City, upon presentation of an invoice, shall pay the VENDOR up to the amount of $1,299,751 for park maintenance, restroom maintenance and trash services at the City's North, Central and South park sites for Fiscal Year 2018/19. The total price for each subsequent option year, if exercised, may not increase more than FIVE PERCENT (5%) over the previous year's price without written authorization of the Mayor and City Council. with 26.b Packet Pg. 978 Attachment: Attachment 2 - Exhibit “A” - RP Landscape and Irrigation Vendor Services Agreement - First Amendment (7192 : Amendments to EXHIBIT A For the services delineated above, the City, upon presentation of an invoice, shall pay the VENDOR up to the amount of $1,324,751 for park maintenance, restroom maintenance and trash services at the City’s North, Central, and South park sites for Fiscal Year 2018/19. The total price for each subsequent option year, if exercised, may not increase more than FIVE PERCENT (5%) over the previous year's price without written authorization of the Mayor and City Council. 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the "Effective Date"). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to "this Agreement," "the Agreement," "hereunder," "hereof," ''herein," or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment . IN WITNESS WHEREOF, this Agreement is executed by City and Contractor acting by and through their authorized officers. CITY OF SAN BERNARDINO RP Landscape and Irrigation Date:___/___/2021 Date:___/___/2021 By:_________________________ By:_________________________ Robert D. Field, City Manager Its:_________________________ APPROVED AS TO FORM: By:_________________________ Best Best & Krieger LLP City Attorney 26.b Packet Pg. 979 Attachment: Attachment 2 - Exhibit “A” - RP Landscape and Irrigation Vendor Services Agreement - First Amendment (7192 : Amendments to EXHIBIT B FIRST AMENDMENT TO THE CONTRACTOR SERVICES AGREEMENT CITY OF SAN BERNARDINO and QUALITY LIGHT AND ELECTRICAL CITY: CITY OF SAN BERNARDINO 290 North “D” Street, 3rd Floor San Bernardino, California 92401 CONSULTANT: Espinoza Electric d/b/a Quality Light and Electrical 11055 Alder Avenue Bloomington, CA 92316 SERVICES: Streetlight repair services AMOUNT: $625,900 (as amended) EXPIRATION DATE: Until completion of the Scope of Services or June 30, 2021, whichever is the earliest MANAGING DEPARTMENT: Public Works 26.c Packet Pg. 980 Attachment: Attachment 3 - Exhibit “B” - Quality Light and Electrical Contractual Services Agreement - First Amendment (7192 : Amendments EXHIBIT B FIRST AMENDMENT TO CONTRACTOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND QUALITY LIGHT AND ELECTRICAL This First Amendment to the Contractor Services Agreement, dated as of April 21, 2021 (the "Amendment"), is made by and between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California ("City''), and Espinoza Electric, a California corporation d/b/a Quality Light and Electrical. ("Contractor," and together with City, the "Parties," and each, a "Party''). WHEREAS, the Parties have entered into a Contractor Services Agreement, dated as of April 18, 2018, to perform annual Citywide streetlight repair services (the "Existing Agreement''); and WHEREAS, pursuant to Resolution No. 2018-112, the total not to exceed amount under the Existing Agreement is $555,000.00; and WHEREAS, pursuant to Resolution No. 2018-112, the Director of Finance or his designee, is authorized to enter into four (4) one-year extensions; and WHEREAS, the City has exercised two of its four one-year extensions, with the term of this second extension period expiring on June 30, 2021; and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the total not to exceed amount subject to the conditions set forth herein. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: The total not to exceed amount payable by City shall be $625,900.00. 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the "Effective Date"). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained 26.c Packet Pg. 981 Attachment: Attachment 3 - Exhibit “B” - Quality Light and Electrical Contractual Services Agreement - First Amendment (7192 : Amendments EXHIBIT B herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to "this Agreement," "the Agreement," "hereunder," "hereof," "herein," or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. IN WITNESS WHEREOF, this Agreement is executed by City and Contractor acting by and through their authorized officers. CITY OF SAN BERNARDINO Espinoza Electric d/b/a Quality Light and Electrical Date:___/___/2021 Date:___/___/2021 By:_________________________ By:_________________________ Robert D. Field, City Manager Its:_________________________ APPROVED AS TO FORM: By:_________________________ Best Best & Krieger LLP City Attorney 26.c Packet Pg. 982 Attachment: Attachment 3 - Exhibit “B” - Quality Light and Electrical Contractual Services Agreement - First Amendment (7192 : Amendments FIRST AMENDMENT TO THE CONTRACTOR SERVICES AGREEMENT CITY OF SAN BERNARDINO and SIERRA PACIFIC ELECTRICAL CONTRACTING CITY: CITY OF SAN BERNARDINO 290 North “D” Street, 3rd Floor San Bernardino, California 92401 CONSULTANT: Sierra Pacific Electrical Contracting 2542 Avalon Street Riverside, CA 92509 SERVICES: Street light pole knock down replacement AMOUNT: $250,000 (as amended) EXPIRATION DATE: Until completion of the Scope of Services or June 30, 2021, whichever is the earliest MANAGING DEPARTMENT: Public Works 26.d Packet Pg. 983 Attachment: Attachment 4 - Exhibit “C” - Sierra Pacific Electrical Contractual Services Agreement - First Amendment (7192 : Amendments to FIRST AMENDMENT TO CONTRACTOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SIERRA PACIFIC ELECTRICAL CONTRACTING This First Amendment to the Contractor Services Agreement, dated as of April 21, 2021 (the "Amendment''), is made by and between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California ("City"), and Sierra Pacific Electrical Contracting. ("Contractor," and together with City, the "Parties," and each, a "Party''). WHEREAS, the Parties have entered into a Contractor Services Agreement, dated as of June 20, 2018, to perform annual Citywide streetlight repair services (the "Existing Agreement"); and WHEREAS, pursuant to Resolution No. 2020-255, the total not to exceed amount under the Existing Agreement was increased from $49,999 to $136,500; and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the total not to exceed amount subject to the conditions set forth herein; and NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: The total not to exceed amount payable by City shall be $250,000. 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the "Effective Date"). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to "this Agreement," "the Agreement," "hereunder," ''hereof," "herein," or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. [Signatures on Following Page] 26.d Packet Pg. 984 Attachment: Attachment 4 - Exhibit “C” - Sierra Pacific Electrical Contractual Services Agreement - First Amendment (7192 : Amendments to IN WITNESS WHEREOF, this Agreement is executed by City and Contractor acting by and through their authorized officers. CITY OF SAN BERNARDINO Sierra Pacific Electrical Contracting Date:___/___/2021 Date:___/___/2021 By:_________________________ By:_________________________ Robert D. Field, City Manager Its:_________________________ APPROVED AS TO FORM: By:_________________________ Best Best & Krieger LLP City Attorney 26.d Packet Pg. 985 Attachment: Attachment 4 - Exhibit “C” - Sierra Pacific Electrical Contractual Services Agreement - First Amendment (7192 : Amendments to EXHIBIT D FIRST AMENDMENT TO THE VENDOR SERVICES AGREEMENT CITY OF SAN BERNARDINO and C&W CONSTRUCTION SPECIALTIES INC. CITY: CITY OF SAN BERNARDINO 290 North "D" Street, 3rd Floor San Bernardino, California 92401 CONSULTANT: C&W Construction Specialties, Inc. 2419 Palma Drive Ventura, CA 93003 SERVICES: Guardrail Maintenance, Repair, and Installation AMOUNT: $150,000 (as amended) EXPIRATION DATE: Until completion of the Scope of Services or June 30, 2021, whichever is the earliest MANAGING DEPARTMENT: Public Works 26.e Packet Pg. 986 Attachment: Attachment 5 - Exhibit “D”- C&W Construction Specialties Inc. Vendor Services Agreement - First Amendment (7192 : EXHIBIT D FIRST AMENDMENT TO VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND C&W CONSTRUCTION SPECIALTIES INC. This First Amendment to the Vendor Services Agreement, dated as of April 21, 2021 (the "Amendment';), is made by and between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California ("City"), and C&W Construction Specialties Inc. ("Vendor," and together with City, the "Parties," and each, a "Party''). WHEREAS, the Parties have entered into a Vendor Services Agreement, dated as of October 17, 2018 to perform Guardrail Maintenance, Repair, and Installation (the "Existing Agreement"); and WHEREAS, pursuant to Section 3 of the Existing Agreement, the City may exercise four (4) one-year extensions; and WHEREAS, the City has exercised two of its four one-year extensions, with the term of this second extension period expiring on June 30, 2021; and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the contract amount on the terms and subject to the conditions set forth herein; and WHEREAS, pursuant to Section 16 of the Existing Agreement, the amendment contemplated by the Parties must be contained in a written agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: SECTION 2 COMPENSATION (Verbatim) "a" is amended to replace the term For the services delineated above, the City, upon presentation of an invoice, shall pay the VENDOR up to the amount of $100,000 for the purchase of services related to guardrail maintenance, repair, and installation. 26.e Packet Pg. 987 Attachment: Attachment 5 - Exhibit “D”- C&W Construction Specialties Inc. Vendor Services Agreement - First Amendment (7192 : EXHIBIT D with For the services delineated above, the City, upon presentation of an invoice, shall pay the VENDOR up to the amount of $150,000 for the purchase of services related to guardrail maintenance, repair, and installation. 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the "Effective Date"). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to "this Agreement," "the Agreement," "hereunder," "hereof," "herein," or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. IN WITNESS WHEREOF, this Agreement is executed by City and Vendor acting by and through their authorized officers. CITY OF SAN BERNARDINO C&W Construction Specialties, Inc. Date:___/___/2021 Date:___/___/2021 By:_________________________ By:_________________________ Robert D. Field, City Manager Its:_________________________ APPROVED AS TO FORM: By:_________________________ Best Best & Krieger LLP City Attorney 26.e Packet Pg. 988 Attachment: Attachment 5 - Exhibit “D”- C&W Construction Specialties Inc. Vendor Services Agreement - First Amendment (7192 : EXHIBIT E FIRST AMENDMENT TO THE VENDOR SERVICES AGREEMENT CITY OF SAN BERNARDINO and FAIRVIEW FORD SALES INC. CITY: CITY OF SAN BERNARDINO 290 North "D" Street, 3rd Floor San Bernardino, California 92401 CONSULTANT: Fairview Ford Sales Inc. 292 No. “G” Street San Bernardino, CA 92412 SERVICES: Part Supplier and Repair Services for City-Owned Vehicles AMOUNT: $140,000 (as amended) EXPIRATION DATE: Until completion of the Scope of Services or June 30, 2021, whichever is the earliest MANAGING DEPARTMENT: Public Works 26.f Packet Pg. 989 Attachment: Attachment 6 - Exhibit “E” - Fairview Ford Sales Inc. Vendor Services Agreement - First Amendment (7192 : Amendments to the EXHIBIT E FIRST AMENDMENT TO VENDOR SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND FAIRVIEW FORD SALES INCORPORATED. This First Amendment to the Vendor Services Agreement, dated as of April 21, 2021 (the "Amendment';), is made by and between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California ("City"), and Fairview Ford Sales, Inc. ("Vendor," and together with City, the "Parties," and each, a "Party''). WHEREAS, the Parties have entered into a Vendor Services Agreement, dated as of September 6, 2018 to supply vehicle parts and repairs to city-owned vehicles (the "Existing Agreement"); and WHEREAS, pursuant to Section 3 of the Existing Agreement, the City may exercise three (3) one-year extensions; and WHEREAS, the City has exercised all of the three (3) one-year extensions, with the term of this third extension period expiring on June 30, 2021; and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the contract amount on the terms and subject to the conditions set forth herein; and WHEREAS, pursuant to Section 18 of the Existing Agreement, the Amendment contemplated by the Parties must be contained in a written agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: SECTION 2 COMPENSATION (Verbatim) "a" is amended to replace the term For the services delineated above, the City, upon presentation of an invoice, shall pay the VENDOR up to the amount of $12 0,000 for specific Ford manufactured parts and service for the City’s light and heavy vehicles. 26.f Packet Pg. 990 Attachment: Attachment 6 - Exhibit “E” - Fairview Ford Sales Inc. Vendor Services Agreement - First Amendment (7192 : Amendments to the EXHIBIT E with For the services delineated above, the City, upon presentation of an invoice, shall pay the VENDOR up to the amount of $140,000 for specific Ford manufactured parts and service for the City’s light and heavy vehicles. 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the "Effective Date"). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to "this Agreement," "the Agreement," "hereunder," "hereof," "herein," or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. IN WITNESS WHEREOF, this Agreement is executed by City and Vendor acting by and through their authorized officers. CITY OF SAN BERNARDINO Fairview Ford Sales, Inc. Date:___/___/2021 Date:___/___/2021 By:_________________________ By:_________________________ Robert D. Field, City Manager Its:_________________________ APPROVED AS TO FORM: By:_________________________ Best Best & Krieger LLP City Attorney 26.f Packet Pg. 991 Attachment: Attachment 6 - Exhibit “E” - Fairview Ford Sales Inc. Vendor Services Agreement - First Amendment (7192 : Amendments to the EXHIBIT A 26.g Packet Pg. 992 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT A 26.g Packet Pg. 993 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT A 26.g Packet Pg. 994 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT A 26.g Packet Pg. 995 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT A 26.g Packet Pg. 996 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT A 26.g Packet Pg. 997 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT A 26.g Packet Pg. 998 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT A 26.g Packet Pg. 999 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT A 26.g Packet Pg. 1000 Attachment: Attachment 7 - RP Landscape and Irrigation Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT B 26.h Packet Pg. 1001 Attachment: Attachment 8 - Quality Light and Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT B 26.h Packet Pg. 1002 Attachment: Attachment 8 - Quality Light and Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT B 26.h Packet Pg. 1003 Attachment: Attachment 8 - Quality Light and Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT B 26.h Packet Pg. 1004 Attachment: Attachment 8 - Quality Light and Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT B 26.h Packet Pg. 1005 Attachment: Attachment 8 - Quality Light and Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT B 26.h Packet Pg. 1006 Attachment: Attachment 8 - Quality Light and Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT B 26.h Packet Pg. 1007 Attachment: Attachment 8 - Quality Light and Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor 26.i Packet Pg. 1008 Attachment: Attachment 9 - Sierra Pacific Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor Service 26.i Packet Pg. 1009 Attachment: Attachment 9 - Sierra Pacific Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor Service 26.i Packet Pg. 1010 Attachment: Attachment 9 - Sierra Pacific Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor Service 26.i Packet Pg. 1011 Attachment: Attachment 9 - Sierra Pacific Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor Service 26.i Packet Pg. 1012 Attachment: Attachment 9 - Sierra Pacific Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor Service 26.i Packet Pg. 1013 Attachment: Attachment 9 - Sierra Pacific Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor Service 26.i Packet Pg. 1014 Attachment: Attachment 9 - Sierra Pacific Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor Service 26.i Packet Pg. 1015 Attachment: Attachment 9 - Sierra Pacific Electrical Contractual Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT D 26.j Packet Pg. 1016 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1017 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1018 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1019 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1020 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1021 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1022 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1023 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1024 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT D 26.j Packet Pg. 1025 Attachment: Attachment 10 - C&W Construction Specialties Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor EXHIBIT E 26.k Packet Pg. 1026 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1027 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1028 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1029 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1030 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1031 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1032 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1033 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1034 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service EXHIBIT E 26.k Packet Pg. 1035 Attachment: Attachment 11 - Fairview Ford Sales Inc. Vendor Services Agreement (7192 : Amendments to the Public Works Vendor Service Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Second Amendment to Professional Service Agreement with Kimley-Horn and Associates, Inc. (All Wards) Recommendation Adopt Resolution No. 2021-96 of the Mayor and City Council of the City of San Bernardino, California 1. Approving the Second Amendment to the Professional Services Agreement with Kimley-Horn and Associates, Inc. (“Second Amendment”) in the amount of $35,000 for additional design and preparation of plans and specifications for Capital Improvement Project - Upgrade Various Signal Hardware at 224 Signalized Intersections (TC20-007) (“Project”); 2. Authorizing the Director of Finance to record a budget adjustment for the Project in the amount of $35,000 in the Federal Grant Program Fund 123, and amend the purchase order to Kimley-Horn and Associates, Inc., to a total contract amount of $631,534.25; and 3. Authorizing the City Manager, or designee, to execute the Second Amendment . Background The Highway Safety Improvement Program (HSIP) is a core Federal-aid program with the purpose to achieve a significant reduction in traffic fatalities and serious injuries on all public roads, including non-State owned roads and roads on tribal land. The HSIP requires a data-driven strategic approach to improving highway safety on all public roads with a focus on performance. A HSIP Cycle 9 call for projects was announced in May 2018. In August 2018, the City submitted an application to upgrade signal hardware at 224 City-owned signalized intersections. On December 27, 2018, City received a notice of award of HSIP gran t funding in the amount of $5,490,800 to design and construct the project. These funds are administered by the California Department of Transportation (CalTrans). CalTrans has since approved federal funding in the amount of $732,000 to start the environmental process, prepare plans, specifications, and estimates (PS&E) and issued the City an E-76 authorizing expenditure of these funds. 27 Packet Pg. 1036 7199 Page 2 On June 19, 2019, the Mayor and City Council approved Resolution No. 2019 -168 adopting the City’s Annual Operating Budget for Fiscal Year 2019/20. The budget included Capital Improvement Plan (CIP) TC20 -007 - Upgrade Various Signal Hardware at 224 Signalized Intersections on Various Arterials (Project), and established $5,490,800 in HSIP grant funds to support the project. On March 18, 2020, the Mayor and City Council approved Resolution No. 2020 -048 approving the award of a Professional Services Agreement (Agreement) with Kimley- Horn and Associates Inc. in the amount of $596,534.25 to perform design work related to the to the Project. On January 25, 2021 the Agreement was administratively amended to extend the contract term through June 30, 2021 (First Amendment). Discussion The City currently has two CIP projects in design that are related to traffic signal improvements; Upgrade Various Signal Hardware at 224 Signalized Intersections on Various Arterials (CIP TC20-007) and Advanced Dilemma Zone Detection at 49 Signalized Intersections (CIP TC TC20-008). Both projects were originally designed and developed in coordination with each other as there are a number of intersections locations shared by both projects. Due to budget constraints, the dilemma zone project (CIP TC20 -008) was changed to scale back the scope of improvements to fit within the available project funding . This resulted in the need for additional redesign work to be performed on the 224 signalized intersections project (CIP TC20-007) to reflect the changes at the intersection locations shared by both projects. Staff requested and received a proposal from Kimley-Horn and Associates, Inc. in the amount of $35,000 for additional redesign work required for the 224 signalized intersection project. This change order is supported by the existing budgets established through the HSIP grant and staff has obtained approval from Caltrans to move forward with the change order. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1d: Financial Stability: Minimize risk and litigation exposure. Fiscal Impact There is no General Fund impact associated with this action. HSIP Federal funding in the amount of $5,490,800 was previously approved and is available to support the Upgrade Various Signal Hardware at 224 Signalized Intersections on Various Arterials project in Federal Grant Program Fund No 123-160-8700-5504. A summary of the full project design budget is provided below. Design Wt Cost Original Contract Amount $ 596,534.25 Second Amendment $ 35,000.00 27 Packet Pg. 1037 7199 Page 3 Total Contract Costs $ 631,534.25 The funding approved by CalTrans for the preparation of the PS&E is in the amount $732,000 and is available for this project as follows: PS&E $ 672,000.00 Environmental $ 60,000.00 Total Preliminary Engineering (PE) $ 732,000.00 The recommended change order cost will be supported through grant funding reimbursements in the amount of $35,000. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2021-96: 1. Approving the Second Amendment to the Professional Services Agreement with Kimley-Horn and Associates, Inc. (“Second Amendment”) in the amount of $35,000 for additional design and preparation of plans and specifications for Capital Improvement Project - Upgrade Various Signal Hardware at 224 Signalized Intersections (TC20-007) (“Project”); 2. Authorizing the Director of Finance to record a budget adjustment for the Project in the amount of $35,000 in the Federal Grant Program Fund 123, and amend the purchase order to Kimley-Horn and Associates, Inc., to a total contract amount of $631,534.25; and 3. Authorizing the City Manager, or designee, to execute the Second Amendment . Attachments Attachment 1 Resolution No. 2021-96; Attachment 2 Resolution No. 2021-96; Exhibit A - Second Amendment Attachment 3 Consultant Additional Fee Proposal (Change Order) Ward: All Synopsis of Previous Council Actions: March 18, 2020 Resolution No. 2020-048 adopted approving Agreement with Kimley-Horn and Associates, Inc. for design to Upgrade Various Signal Hardware at 224 Signalized Intersections on Various Arterials. 27 Packet Pg. 1038 Resolution No. 2021-96 RESOLUTION NO. 2021-96 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING SECOND AMENDMENT TO THE CONSULTANT SERVICES AGREEMENT WITH KIMLEY- HORN AND ASSOCIATES INC., IN THE AMOUNT OF $35,000 FOR ADDITIONAL DESIGN PREPERATION OF THE PLANS, SPECIFICATIONS DESIGN TO UPGRADE VARIOUS SIGNAL HARDWARE AT 224 SIGNALIZED INTERSECTIONS ON VARIOUS ARTERIALS (TC20-007) (“PROJECT”); AUTHORIZING THE DIRECTOR OF FINANCE TO RECORD A BUDGET ADJUSTMENT FOR THE DESIGN TO UPGRADE VARIOUS SIGNAL HARDWARE AT 224 INTERSECTIONS (TC20-007) (“PROJECT”) IN AN AMOUNT NOT TO EXCEED $35,000 IN FEDERAL GRANT PROGRAM FUND NO. 123, AND AMENDING THE PURCHASE ORDER TO KIMLEY- HORN AND ASSOCIATES INC.; AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE PROJECT AGREEMENTS WHEREAS, on March 18, 2020, the Mayor and City Council adopted Resolution No. 2020-048 approving a Professional Services Agreement (“Agreement”) with Kimley-Horn and Associates Inc., in the amount of $596,534.25 for the design to Upgrade Various Signal Hardware at 224 intersections (“Project”); and WHEREAS, the Parties previously entered into a First Amendment, administratively extending the contract term through June 30, 2021; and WHEREAS, on February 12, 2021, Kimley-Horn and Associates Inc. submitted a proposal for additional design services in response to the City’s need to update the Project plans; and WHEREAS, the City now wishes to further amend the Professional Services Agreement with Kimley-Horn and Associates Inc. to provide for additional design work required for the Project. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager or her designee is hereby authorized to approve the Second Amendment to Professional Services Agreement with Kimley-Horn and Associates Inc., 27.a Packet Pg. 1039 Attachment: Attachment 1 - Resolution No. 2021-96 [Revision 1] (7199 : Second Amendment to Professional Service Agreement with Kimley- Resolution No. 2021-96 (“Second Amendment”) in the increased amount of $35,000 for a total agreement amount of $631,534.25, attached hereto and incorporated herein as Exhibit “A”. SECTION 3. The Director of Finance is authorized and directed to record a budget adjustment for the Project work in an amount not to exceed $35,000.00 in the Federal Grant Program Fund No. 123, and amend the Purchase Order to Kimley-Horn and Associates Inc for this work. SECTION 4. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and att ested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 27.a Packet Pg. 1040 Attachment: Attachment 1 - Resolution No. 2021-96 [Revision 1] (7199 : Second Amendment to Professional Service Agreement with Kimley- Resolution No. 2021-96 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-96, adopted at a regular meeting held on the 21st day of April, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 27.a Packet Pg. 1041 Attachment: Attachment 1 - Resolution No. 2021-96 [Revision 1] (7199 : Second Amendment to Professional Service Agreement with Kimley- Exhibit ‘A’ SECOND AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT City of San Bernardino and Kimley-Horn and Associates, Inc. CITY: CITY OF SAN BERNARDINO 290 North “D” Street, 3rd Floor San Bernardino, California 92401 CONSULTANT: Kimley-Horn and Associates, Inc. 3880 Lemon Street, Suite 420 Riverside, CA 92501 SERVICES: Professional Engineering Services for the Design to Upgrade Various Signal Hardware at 224 Signalized Intersections (TC20-007) AMOUNT: $631,534.25 (as amended) EXPIRATION DATE: Until completion of the Scope of Services or June 30, 2021, Whichever is the earliest MANAGING DEPARTMENT: Public Works 27.b Packet Pg. 1042 Attachment: Attachment 2 - Resolution No. 2021-96; Exhibit A - Second Amendment (7199 : Second Amendment to Professional Service Exhibit ‘A’ SECOND AMENDMENT TO CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND KIMLEY-HORN AND ASSOCIATES, INC. Second Amendment to the Consultant Services, dated as of April 21, 2021 (the “Amendment”), between the City of San Bernardino, a charter city and municipal corporation organized under the Constitution of the State of California (“City”), and Kimley-Horn and Associates, Inc, (“Contractor,” and together with City, the “Parties,” and each, a “Party”). WHEREAS, the Parties have entered into an Agreement, dated as of March 18, 2020, to design Various Signal Hardware at 224 Signalized Intersections on Various Arterials to enhance safety. (the “Existing Agreement”); and WHEREAS, the Parties have entered into an Agreement with an expiration dated December 31, 2020; and WHEREAS, the Parties have entered into a contract extension with an expiration dated June 30, 2021; and WHEREAS, the Parties hereto desire to amend the Existing Agreement to increase the contract amount on the terms and subject to the conditions set forth herein; and WHEREAS, pursuant to Section 12.12 of the Existing Agreement, the amendment contemplated by the Parties must be contained in a written agreement. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Definitions. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement. 2. Amendments to the Existing Agreement. As of the Effective Date (defined below), the Existing Agreement is hereby amended or modified as follows: ARTICLE IV PERFORMANCE PERIOD (Verbatim) “E” is amended to replace the term The total amount payable by LOCAL AGENCY shall not exceed $596,534.25 with the term The total amount payable by LOCAL AGENCY shall not exceed $631,534.25 27.b Packet Pg. 1043 Attachment: Attachment 2 - Resolution No. 2021-96; Exhibit A - Second Amendment (7199 : Second Amendment to Professional Service Exhibit ‘A’ 3. Date of Effectiveness; Limited Effect. This Amendment will become effective as of the date fully executed by the Parties (the “Effective Date”). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to “this Agreement,” “the Agreement,” “hereunder,” “hereof,” “herein,” or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment. IN WITNESS WHEREOF, this Agreement is executed by City and Contractor acting by and through their authorized officers. CITY OF SAN BERNARDINO: Kimley-Horn and Associates, Inc.: Date: _____ / _____ / 2021 Date: _____ / _____ / 2021 _________________________________ By: ________________________________ Robert D. Field, City Manager Its: ________________________________ APPROVED AS TO FORM: Sonia Carvalho , City Attorney By: ______________________________ 27.b Packet Pg. 1044 Attachment: Attachment 2 - Resolution No. 2021-96; Exhibit A - Second Amendment (7199 : Second Amendment to Professional Service 27.c Packet Pg. 1045 Attachment: Attachment 3 - Consultant Additional Fee Proposal [Revision 1] (7199 : Second Amendment to Professional Service Agreement 27.c Packet Pg. 1046 Attachment: Attachment 3 - Consultant Additional Fee Proposal [Revision 1] (7199 : Second Amendment to Professional Service Agreement 27.c Packet Pg. 1047 Attachment: Attachment 3 - Consultant Additional Fee Proposal [Revision 1] (7199 : Second Amendment to Professional Service Agreement 27.c Packet Pg. 1048 Attachment: Attachment 3 - Consultant Additional Fee Proposal [Revision 1] (7199 : Second Amendment to Professional Service Agreement Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards) Recommendation Adopt Resolution No. 2021-97 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with United Storm Water, Inc., of the City of Industry in the amount of $59,877.25 to perform installation work for Connector Pipe Screen (CPS) Total Maximum Daily Loads (TMDLs) - Track 1 ("Project"); 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $68,871 for the Project; and 3. Authorizing the City Manager, or designee, to expend the contingency fund, if necessary, to complete the project. Background In April 2015, the State Water Resources Control Board (State Water Board) adopted an amendment to the Water Quality Control Plan for Ocean Waters of California (Ocean Plan) as well as the Water Quality Control Plan for Inland Surface Waters, Enclosed Bays, and Estuaries- collectively referred to as the “T rash Amendments.” The Trash Amendments specify installation of full capture systems like screens, nets, or hydrodynamic separators to storm drain systems to remove trash. The term “full capture system” is used to describe structural controls (i.e., best m anagement practices (BMPs)) that have screen or net openings designed to trap debris and prevent it from entering storm water facilities. Connector Pipe Screens (CPS) are fastened to a storm drain pipe and have removable front screens which allow access to the pipe for maintenance. The CPS installation also includes stenciling on the side of the catch basin to assist in determining when maintenance is required. Connector pipe screens are expected to be the most cost effective full capture BMP to prevent the catch basin from filling up with sediment and vegetative debris with low capital costs and relatively infrequent maintenance. 28 Packet Pg. 1049 7239 Page 2 In anticipation of this work, Connector Pipe Screen (CPS) Total Maximum Daily Loads (TMDLs) - Track 1 ("Project") was included in the FY 2020/21 Capital Improvement Plan (CIP) adopted on June 24, 2020 by the Mayor and City Council. The CIP established Storm Drain Development Impact Fee (DIF) funding in the amount of $150,000 for the Project (CIP SD21-001). The Project is a first of multiple phases to install full capture devices Citywide in storm drain infrastructure to comply with State Water Code Section 13383 and TMDLs which prohibit trash from entering storm water systems . Discussion Project 13444, to install CPS, was advertised for public bidding on March 12, 2021 and March 19, 2021, in the San Bernardino County Sun Newspaper, F. W. Dodge, Construction Bid Board, High Desert Plan Room, San Diego Daily Transcript, Sub -Hub Online Plan Room, Reed Construction Data, Bid America Online, Construction Bid Source, Bid Ocean, the City’s website, and the San Bernardino Area Chamber of Commerce. Sealed bids were received and opened on April 1, 2021. The City received four bids as follows: Bidder City Base Bid United Storm Water, Inc. City of Industry $ 59,877.25 Downstream Services, Inc. Escondido $ 74,666.00 Hemet Manufacturing Company, DBA Genesis Construction Hemet $132,444.00 **G2 Construction, Inc. Santa Ana - ** G2 Construction, Inc. did not provide bid bond at bid opening, City rejected bid as non-responsive The City has reviewed the bid package and confirmed that United Storm Water, Inc. of City of Industry, California, is the lowest responsible and responsive bidder, with a total bid amount of $59,877.25. If awarded by the Mayor and City Council, construction work is anticipated to begin in June 2021 and be completed by August 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1d: Financial Stability - Minimize risk and litigation exposure. Approval of this resolution will result in public improvements being constructed that minimize risk and litigation exposure ensuring compliance with State mandates related to storm water collection. Fiscal Impact There is no General Fund impact associated with this action. Project budget for the proposed work was previously established through the adopted FY 2020/21 Capital Improvement Plan in the Storm Drain DIF (248) fund as follows: Connector Pipe Screen (CPS) TMDLS - Track 1 Storm Drain DIF Fund No, 248-160-8772 $150,000 28 Packet Pg. 1050 7239 Page 3 Total FY2020/21 Available Project Funding $150,000 The overall cost for implementation of Phase 1 of this project is as follows: Construction Bid Amount $ 59,877.25 Construction Contingency $ 6,000.00 Engineering and Inspections $ 2,993.75 Total Phase 1 Project Cost $68,871.00 Conclusion Adopt Resolution No. 2021-97 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with United Storm Water, Inc., of City of Industry in the amount of $59,877.25 to perform installation work for Connector Pipe Screen (CPS) Total Maximum Daily Loads (TMDLs) - Track 1 ("Project"); 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $68,871 for the Project; and 3. Authorizing the City Manager, or his designee, to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution No. 2021-97; Attachment 2 Resolution No. 2021-97; Exhibit A - Contract Agreement Attachment 3 Bid Tabulation Attachment 4 Bid Proposal Attachment 5 Locations Ward: All Synopsis of Previous Council Actions: June 24, 2020 Mayor and City Council adopted Resolution No. 2020-128 approving Capital Improvement Program FY 2020/21 28 Packet Pg. 1051 Resolution No. 2021-97 RESOLUTION NO. 2021-97 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPROVING THE AWARD OF A CONSTRUCTION CONTRACT WITH UNITED STORM WATER, INC., OF CITY OF INDUSTRY IN THE AMOUNT OF $59,877.25 TO PERFORM INSTALLATION WORK FOR CONNECTOR PIPE SCREEN (CPS) TOTAL MAXIMUM DAILY LOADS (TMDLS) - TRACK 1 ("PROJECT"); AND AUTHORIZING PROJECT CONSTRUCTION, CONSTRUCTION CONTINGENCIES AND INSPECTIONS COSTS IN THE TOTAL AMOUNT OF $68,871 FOR THE PROJECT; AND AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT WHEREAS, In April 2015, the State Water Resources Control Board (State Water Board) adopted an amendment to the Water Quality Control Plan for Ocean Waters of California (Ocean Plan) as well as the Water Quality Control Plan for Inland Surface Waters, Enclosed Bays, and Estuaries– collectively referred to as the “Trash Amendments.”; and WHEREAS, The Trash Amendments specify installation of full capture systems like screens, nets, or h ydrodynamic separators to storm drain systems to remove trash in compliance with State Water Code; and WHEREAS, on June 24, 2020 the Mayor and City Council adopted the FY2020/21 Capital Improvement Plan (CIP), establishing Storm Drain DIF (248) Funding in the amount of $150,000 for Connector Pipe Screen (Cps) Total Maximum Daily Loads (Tmdls) - Track 1 ("Project") (CIP SD21-001); and WHEREAS, in April, 2021 staff administered a competitive bid process for CPS TMDLS – Track 1 Project (“Project”) resulting in four construction cost submittals; and WHEREAS, United Storm Water, Inc., of City of Industry, California, has been determined to be the lowest responsive and responsible bidder; and WHEREAS, the City now wishes to enter into a Construction Agreement with United Storm Water, Inc., of City of Industry, California in the amount of $59,877.25 to complete the Project. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. 28.a Packet Pg. 1052 Attachment: Attachment 1 - Resolution No. 2021-97 (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Resolution No. 2021-97 SECTION 2. The City Manager, or his designee, is hereby authorized to execute a Contract Agreement with United Storm Water, Inc., of City of Industry for Project 13444 on behalf of the City, attached hereto and incorporated herein as Exhibit “A”, and to expend contingency funds, if necessary, to complete the project. SECTION 3. The Director of Finance is hereby authorized to issue a purchase order in the amount of $59,877.25 to United Storm Water, Inc., of City of Industry, in support of the Construction Agreement. SECTION 4. As the decision-making body for the project, the City Council has reviewed and considered the information contained in the administrative record for the proposed project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds, as follows: (1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City’s Local CEQA Guidelines; (2) The proposed project is exempt from the requirements of the California Environmental Quality Act pursuant to Section 15301 (Class 1 – Existing Facilities) of the CEQA Guidelines because it involves the installation of captive devices on existing storm drain facilities. Additionally, the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. (3) The application of the Class 1 categorical exemption is not barred by one of the exceptions set forth in the CEQA Guidelines Section 15300.2 because installation of screens at catch basins does not present any unusual circumstances; would not damage scenic resources, including any resources in the area of a Scenic Highway; would not be utilized on a hazardous waste site; and would not impact historic resources of any kind; and (4) The determination of CEQA exemption reflects the independent judgment of the City Council. SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. 28.a Packet Pg. 1053 Attachment: Attachment 1 - Resolution No. 2021-97 (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Resolution No. 2021-97 APPROVED and ADOPTED by the City Council and signed by the Mayor and att ested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 28.a Packet Pg. 1054 Attachment: Attachment 1 - Resolution No. 2021-97 (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Resolution No. 2021-97 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-97, adopted at a regular meeting held on the 21st day of April, 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 28.a Packet Pg. 1055 Attachment: Attachment 1 - Resolution No. 2021-97 (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All A G R E EM E N T CITY OF SAN BERNARDINO THIS AGREEMENT is made and concluded this _____ day of _______________, 20___, between the City of San Bernardino (owner and hereinafter "CITY"), and ____________________________________________________ (hereinafter "CONTRACTOR"). 1. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the CITY, and under the conditions expressed in the bond as deposited with the CITY, receipt of which is hereby acknowledged, the CONTRACTOR agrees with the CITY, at the CONTRACTOR's own proper cost and expense in the Special Provisions to be furnished by the CITY, to furnish all materials, tools and equipment and perform all the work necessary to complete in good workmanlike and substantial manner the CONNECTOR PIPE SCREEN (CPS) TMDLS – TRACK 1 PROJECT NO. 13444 in strict conformity with Plans and Special Provisions Project No. 13444, and also in accordance with Standard Specifications for Public Works/Construction, latest edition in effect on the first day of the advertised “Notice Inviting Sealed Bids” for this project, on file in the Office of the City Engineer, Public Works Department, City of San Bernardino, which said Plans and Special Provisions and Standard Specifications are hereby especially referred to and by such reference made a part hereof. 2. The CONTRACTOR agrees to receive and accept the prices as set forth in the Bid Schedule as full compensation for furnishing all materials and doing all the work contemplated and embraced in this agreement; also for all loss or damage arising out of the nature of the work aforesaid or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work, and for well and faithfully completing the work and the whole thereof, in the manner and according to the Plans and Special Provisions, and requirements of the Engineer under them. 3. The CONTRACTOR herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on the basis of race, color, national origin, religion, sex, marital status, or ancestry in the performance of this contract, nor shall the CONTRACTOR or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection of subcontractors, vendees, or employees in the performance of this contract. Failure by the CONTRACTOR to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as recipient deems appropriate. A-1 28.b Packet Pg. 1056 Attachment: Attachment 2 - Resolution No. 2021-97; Exhibit A - Contract Agreement (7239 : Construction Contract Award – Connector Pipe CONNECTOR PIPE SCREEN (CPS) TMDLS – TRACK 1 Project No. 13444 4. CITY hereby promises and agrees with the said CONTRACTOR to employ, and does hereby employ the said CONTRACTOR to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner, and upon the conditions above set forth; and the same parties for themselves, their heirs, executors, administrators, and assigns, do hereby agree to the full performance of the covenants herein contained. 5. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said CONTRACTOR, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties of these presents have executed this contract in four (4) counterparts, each of which shall be deemed an original in the year and day first above mentioned. CONTRACTOR CITY OF SAN BERNARDINO NAME OF FIRM: United Storm Water, Inc. BY: ________________________________ ROBERT D. FIELD City Manager BY: _______________________________ TITLE: ATTEST: MAILING ADDRESS: 14,000 E. Valley Blvd Genoveva Rocha, CMC City of Industry, CA 91746 City Clerk PHONE NO.: (626) 961-9326__________ APPROVED AS TO FORM: ATTEST: _______________________________ SONIA CARVALHO, City Attorney ____________________________________ Secretary NOTE: Secretary of the Owner should attest. If Contractor is a corporation, Secretary should attest. A-2 28.b Packet Pg. 1057 Attachment: Attachment 2 - Resolution No. 2021-97; Exhibit A - Contract Agreement (7239 : Construction Contract Award – Connector Pipe 28.cPacket Pg. 1058Attachment: Attachment 3 - Bid Tabulation (7239 : Construction Contract Award – Connector Pipe Screen 28.d Packet Pg. 1059 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1060 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1061 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1062 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1063 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1064 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1065 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1066 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1067 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1068 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1069 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1070 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1071 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1072 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1073 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1074 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1075 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1076 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1077 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1078 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1079 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1080 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1081 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1082 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1083 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1084 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1085 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1086 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1087 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1088 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1089 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1090 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) 28.d Packet Pg. 1091 Attachment: Attachment 4 - Bid Proposal (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Wards)) CATCH BASIN LOCATIONS FOR TMDL COMPLIANCE WITH 5MM MESH SCREENS CATCH BASIN LOCATIONS FOR TMDL COMPLIANCE WITH 5MM NUMBER ADDRESS NEAREST CROSS STREET CORNER LOCATION (N,S, E,W) 1 100 EAST CENTRAL ARROWHEAD NEAR RAILROAD TRACK 2 101 EAST CENTRAL ARROWHEAD NEAR RAILROAD TRACK 3 1105 SOUTH WATERMAN AVENUE ORANGESHOW ROAD WEST SIDE OF STREET ON WATERMAN AVENUE 4 1105 SOUTH WATERMAN AVENUE ORANGESHOW ROAD WEST SIDE OF STREET ON WATERMAN AVENUE 5 1800 NORTH D STREET 18TH STREET EAST SIDE OF STREET 6 1800 NORTH D STREET 18TH STREET EAST SIDE OF STREET 7 1800 NORTH D STREET 18TH STREET WEST SIDE OF STREET 8 1504 SOUTH TIPPECANOE AVENUE HARDT STREET WEST SIDE OF STREET ON TIPPECANOE AVENUE 9 686 SOUTH ALLEN STREET CENTRAL AVENUE END OF CULDESAC 10 122 EAST HIGHLAND SIERRA WAY 1 OF 2 ON NORTH SIDE OF STREET E/O SIERRA WAY 11 122 EAST HIGHLAND SIERRA WAY 2 OF 2 ON NORTH SIDE OF STREET E/O SIERRA WAY 12 930 SOUTH ARROWHEAD HILLCREST AVENUE 1 OF 2 ON WEST SIDE OF STREET ON ARROWHEAD 13 930 SOUTH ARROWHEAD HILLCREST AVENUE 2 OF 2 ON EAST SIDE OF STREET ON ARROWHEAD 14 249 WEST ORANGE SHOW ROAD WASHINGTON AVENUE 1 OF 2 ON NORTH SIDE OF STREET ON ORANGESHOW ROAD 15 250 WEST ORANGE SHOW ROAD WASHINGTON AVENUE 2 OF 2 ON SOUTH SIDE OF STREET ON ORANGESHOW ROAD 16 474 WEST ORANGE SHOW ROAD E STREET 1 OF 2 ON NORTH SIDE OF STREET ON ORANGESHOW ROAD 17 475 WEST ORANGE SHOW ROAD E STREET 2 OF 2 ON SOUTH SIDE OF STREET ON ORANGESHOW ROAD 18 271 SOUTH I STREET NORTH OF MILL STREET 2 OF 2 ON SOUTH SIDE OF STREET ON I STREET 19 158 NORTH I STREET CONGRESS STREET ON EAST SIDE OF STREET 20 158 NORTH I STREET CONGRESS STREET ON WEST SIDE OF STREET 21 785 EAST CENTRAL AVENUE E/O GIFFORD STREET 1 OF 2 ON NORTSIDE OF STREET ON CENTRAL AVENUE 22 786 EAST CENTRAL AVENUE E/O GIFFORD STREET 2 OF 2 ON SOUTH SIDE OF STREET ON CENTRAL AVENUE 23 500 EAST CARNEGIE AVENUE VANDERBILT WAY 1 OF 2 ON NORTH SIDE OF STREET ON CARNEGIE DRIVE 24 501 EAST CARNEGIE AVENUE VANDERBILT WAY 2 OF 2 ON SOUTH SIDE OF STREET ON CARNEGIE DRIVE 25 785 SOUTH GIFFORD STREET CENTRAL AVENUE ON THE EAST SIDE OF STREET 26 786 SOUTH GIFFORD STREET CENTRAL AVENUE ON THE WEST SIDE OF STREET 27 N/W CORNER OF E STREET AND 4TH STREETE STREET 1 OF 2 ON WEST SIDE OF STREET (IN FRONT OF ROSA PARKS BLDG.) 28 N/W CORNER OF E STREET AND 4TH STREETE STREET 2 OF 2 ON WEST SIDE OF STREET (IN FRONT OF ROSA PARKS BLDG.) 28.e Packet Pg. 1092 Attachment: Attachment 5 - Locations [Revision 1] (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All CATCH BASIN LOCATIONS FOR TMDL COMPLIANCE WITH 5MM MESH SCREENS 29 500 NORTH SIERRA AVE 5TH STREET 1 OF 2 ON THE NORTHEAST CORNER 30 500 NORTH SIERRA AVE 5TH STREET 2 OF 2 ON THE NORTHWEST CORNER 31 400 NORTH SEPULVEDA 5TH STREET ON WEST SIDE OF SEPULVEDA 32 400 NORTH SEPULVEDA 5TH STREET ON EAST SIDE OF SEPULVEDA 33 500 NORTH WATERMAN AVENUE 5TH STREET ON WEST SIDE OF WATERMAN AVENUE/IN FRONT OF 7-ELEVEN 34 500 NORTH WATERMAN AVENUE 5TH STREET ON THE EAST SIDE OF WATERMAN AVENUE 35 354 NORTH WATERMAN AVENUE 3RD STREET AND 4TH STREET ON WEST SIDE OF STREET IN FRONT OF COUNTY BUILDING PARKING LOT 36 354 NORTH WATERMAN AVENUE 3RD STREET AND 4TH STREET ON EAST SIDE OF STREET ON WATERMAN AVENUE 37 100 NORTH WATERMAN AVENUE RIALTO AVENUE ON THE EAST SIDE OF STREET ON WATERMAN AVENUE 38 300 EAST RIALTO AVENUE WATERMAN AVENUE ON THE NORTH SIDE OF RIALTO AVENUE 39 300 EAST RIALTO AVENUE WATERMAN AVENUE ON THE SOUTH SIDE OF RIALTO AVENUE 40 295 SOUTH WATERMAN AVENUE RIALTO AVENUE ON EAST SIDE OF STREET ON WATERMAN AVENUE 41 336 SOUTH WATERMAN AVENUE RIALTO AND MILL STREET ON WEST SIDE OF STREET ON WATERMAN AVENUE 42 361 SOUTH WATERMAN AVENUE RIALTO AND MILL STREET ON EAST SIDE OF STREET ON WATERMAN AVENUE 43 500 SOUTH WATERMAN AVENUE MILL STREET ON NORTHEAST CORNER IN FRONT OF AM-PM STORE 44 500 SOUTH WATERMAN AVENUE MILL STREET ON NORTHEAST CORNER IN FRONT OF 7-ELEVEN 45 631 SOUTH WATERMAN AVENUE MILL STREET ON EAST SIDE OF STREET IN FRONT OF 631 WATERMAN WAREHOUSE 46 791 SOUTH WATERMAN AVENUE CENTRAL AVENUE ON NORTHEAST CORNER AT BCR AND ECR 47 791 SOUTH WATERMAN AVENUE CENTRAL AVENUE ON SOUTHEAST CORNER AT BCR AND ECR 48 791 SOUTH WATERMAN AVENUE CENTRAL AVENUE ON SOUTHWEST CORNER ON CENTRAL 49 200 WEST RIALTO AVENUE ARROWHEAD AVENUE ON SOUTHEASTCORNER 50 200 WEST RIALTO AVENUE ARROWHEAD AVENUE ON NORTHWEST CORNER 51 326 WEST RAILTO AVENUE ARROW HEAD AND D STREET ON THE NORTH SIDE NEAR WARM CREEK CHANNEL 52 326 WEST RAILTO AVENUE ARROW HEAD AND D STREET ON THE SOUTH SIDE NEAR WARM CREEK CHANNEL 28.e Packet Pg. 1093 Attachment: Attachment 5 - Locations [Revision 1] (7239 : Construction Contract Award – Connector Pipe Screen (CPS) TMDLS – Track 1 - (All Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1) Recommendation Adopt Resolution No. 2021-98 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with Ortiz Enterprises, Inc. in the amount of $2,604,290 for construction of the 2nd Street Bridge Replacement over Warm Creek (“Project”); and 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $3,008,397 the Project; and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Background In 2005, an inspection by the California Department of Transportation’s (Caltrans) Structures Inspection Division revealed that the 2nd Street Bridge over Warm Creek was deteriorating, and that the condition of its structure reduced the ability of the bridge to resist earthquake loads. After the inspection, the bridge remained opened to vehicular traffic. Caltrans inspected the bridge again in early 2020 and concluded that it needed to be closed to vehicular traffic due to the advanced state of its structural deficiencies. The bridge has been closed to traffic since March 17, 2020. In January 2012, the City requested that Caltrans allocate funds from the State’s Highway Bridge Program (HBP) to fund a project that would replace the 2 nd Street Bridge. In response, Caltrans allocated $488,360 for environmental analysis and design services. In March 2018, Caltrans allocat ed $200,000 for acquiring right-of-way for temporary construction easements that are needed to facilitate construction. In December 2020, after acquiring the required right -of-way, the City approached Caltrans to request allocation of construction funding in the amount of $3,913,750, but was informed that the HBP was overextended at that juncture. However, due to the 29 Packet Pg. 1094 7240 Page 2 urgency of the project, Caltrans did approve the project for Advanced Construction status, which allows the City to fund the construction work and seek reimbursement from Caltrans. In anticipation of initiating construction, the 2nd Street Bridge Replacement Project was included in the City’s FY 2020/21 Capital Improvement Plan (CIP No. SS13 -001), which was adopted on June 24, 2020 by the Mayor and City Council. The CIP allocated $3,938,364 in Developer Impact Fee (DIF) Regional Circulation Funding for the project, the final plans and specifications were then prepared. Discussion The project was advertised for public bidding on March 2, 2021 and March 9, 2021, in the following: San Bernardino County Sun Newspaper, F.W. Dodge Plan Room, Construction Bid Board, High Desert Plan Room, San Diego Daily Transcript, Sub -Hub Online Plan Room, Reed Construction Data Plan Room, Bid America Online, Construction Bid Source, Bid Ocean, the City’s website, and the San Bernardino Area Chamber of Commerce. Sealed bids were received and opened on March 25, 2021. The City received five bids as follows: Bidder City Base Bid Ortiz Enterprises, Inc. Irvine $2,604,290 KEC Engineering Corona $2,709,597 Ames Construction, Inc. Corona $2,776,530 MCM Construction, Inc. North Highlands $3,064,768 Los Angeles Engineering, Inc. Covina $3,715,770 City staff has reviewed the bid package and confirmed that Ortiz Enterprises, Inc. of Irvine, California is the lowest responsible and responsive bidder, with a total bid amount of $2,604,290. If awarded by the Mayor and City Council, construction is expected to begin in May 2021 and be completed by October 2021. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No.1d: Financial Stability - Minimize risk and litigation exposure. Approval of this resolution will result in public improvements being constructed that minimize risk and litigation exposure by replacing a structurally deficient bridge and restoring safe and effective traffic flow in the area . Fiscal Impact There is no General Fund impact associated with this action. Project budget for the proposed work was previously established through the adopted FY 2020/21 Capital Improvement Plan in the Regional Circulation DIF (264) fund as follows: 2nd street Bridge replacement at Warm Creek (264-160-7841) $ 3,948,364 29 Packet Pg. 1095 7240 Page 3 Total Available Project Funding $ 3,948,364 The overall cost for the construction of the 2nd Street Bridge project is as follows: Construction Bid Amount $ 2,604,290 Construction Contingency $ 260,710 Engineering and Inspections $ 143,397 Total Project Construction Costs $ 3,008,397 Conclusion Adopt Resolution No. 2021-98 of the Mayor and City Council of the City of San Bernardino, California: 1. Approving the award of a Construction Contract with Ortiz Enterprises, Inc. in the amount of $2,604,290 for construction of the 2nd Street Bridge Replacement over Warm Creek (“Project”); and 2. Authorizing project construction, construction contingencies and inspections costs in the total amount of $3,008,397 the Project; and 3. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution No. 2021-98; Attachment 2 Resolution No. 2021-98; Exhibit A - Contract Agreement Attachment 3 Bid Tabulation Attachment 4 Bid Proposal Attachment 5 Location Map Ward: 1 Synopsis of Previous Council Actions: June 24, 2020 Mayor and City Council adopted Resolution No. 2020-128 approving Capital Improvement Program FY 2020/21 29 Packet Pg. 1096 Resolution No. 2021-98 RESOLUTION NO. 2021-98 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPROVING THE AWARD OF A CONSTRUCTION CONTRACT WITH ORTIZ ENTERPRISES, INC. IN THE AMOUNT OF $2,604,290 FOR CONSTRUCTION OF THE 2ND STREET BRIDGE REPLACEMENT OVER WARM CREEK (“PROJECT”); AND AUTHORIZING PROJECT CONSTRUCTION, CONSTRUCTION CONTINGENCIES AND INSPECTIONS COSTS IN THE TOTAL AMOUNT OF $3,008,397 THE PROJECT; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT WHEREAS, in 2005, an inspection by the California Department of Transportation (“Caltrans”) Structures Inspection Division revealed that one of the 20 wo od columns supporting the 2nd Street Bridge over Warm Creek was decayed and is no longer providing support for the structure; and WHEREAS, as a result of the Caltrans inspection, the City, in cooperation with Caltrans, proposed to replace the existing 2nd Street Bridge over Warm Creek between Arrowhead Avenue and Mountain View Avenue; and WHEREAS, pursuant to the California Environmental Quality Act (Pub. Res. Code, § 21000 et seq.), the State CEQA Guidelines (Cal. Code Regs., tit. 14, § 15000 et seq.), (collectively, “CEQA”) the City of San Bernardino (“City”) is the lead agency for the 2nd Street Bridge replacement; and WHEREAS, pursuant to State CEQA Guidelines section 15063, an initial study (“Initial Study”) was prepared for the 2nd Street Bridge Replacement Project (“Project”) to analyze whether the approval of the Project would cause a potentially significant effect on the environment; and WHEREAS, the City, as lead agency, determined that a Mitigated Negative Declaration (“MND”) should be prepared in order to analyze the Project’s potential environmental effects and circulated the MND for a 30-day public review period from June 28, 2016 to July 27, 2016, pursuant to Public Resources Code section 21091(b); and WHEREAS, pursuant to State CEQA Guidelines section 15097, the City prepared a Mitigation Monitoring and Reporting Program; and WHEREAS, the Mayor and City Council carefully reviewed the Project in connection with the MND, considered all other relevant information contained in the record regarding the 29.a Packet Pg. 1097 Attachment: Attachment 1 - Resolution No. 2021-98 [Revision 1] (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Resolution No. 2021-98 Project, and adopted a resolution adopting the MND and approving the Project on December 5, 2016; and WHEREAS, Caltrans inspected the bridge in 2020 and concluded to close the bridge for vehicular traffic due to the structural deficiency declaring bridge unstable and unsafe. The bridge has been closed to traffic since March 17, 2020; and WHEREAS, on June 24, 2020 the Mayor and City Council adopted the FY2020/21 Capital Improvement Plan (CIP), establishing Regional Circulation DIF (264) Funding in the amount of $3,948,364 for 2nd Street Bridge replacement at Warm Creek (CIP SS-13-001); and WHEREAS, in March, 2021 staff administered a competitive bid process for 2nd Street Bridge replacement at Warm Creek Project resulting in five construction cost submittals; and WHEREAS, Ortiz Enterprises, Inc., of Irvine, California, has been determined to be the lowest responsive and responsible bidder; and WHEREAS, the City now wishes to enter into a Construction Agreement with Ortiz Enterprises, Inc., of Irvine, California in the amount of $2,604,290 to complete the Project; and WHEREAS, pursuant to State CEQA Guidelines section 15162, once a negative declaration has been adopted for a project, no subsequent environmental documents shall be prepared for that project unless substantial changes are proposed in the project which would require major revisions of the previous document due to the involvement of new significant environmental effects or if new information of substantial importance is available which shows that the project will have a significant impact on the environment has been made available; and WHEREAS, the award of Construction Agreement is necessary to further the Project as approved; and WHEREAS, the Mayor and City Council has reviewed and considered the Project MND, the Mayor and City Council’s written finding, the adopted Mitigation Monitoring and Reporting Program, a supplemental CEQA analysis of whether the Project would result in impacts different or worse than those previously disclosed, and other Project-related documents; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager, or his designee, is hereby authorized to execute all documents in support of 2nd Street Bridge Replacement at Warm Creek Project 13146 including 29.a Packet Pg. 1098 Attachment: Attachment 1 - Resolution No. 2021-98 [Revision 1] (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Resolution No. 2021-98 a Construction Agreement with Ortiz Enterprises, Inc. in the amount of $2,604,290 on behalf of the City and to expend contingency funds, if necessary, to complete the project. SECTION 3. The Director of Finance is hereby authorized to issue a purchase order in the amount of $2,604,290 to Ortiz Enterprises, Inc., of Irvine, in support of the Construction Agreement. SECTION 4. As the decision-making body for the project, the City Council has reviewed and considered the information contained in the administrative record for the proposed project. Based upon the facts and information contained in the administrative record, including all written and oral evidence presented to the City Council, the City Council finds, as follows: (1) The administrative record has been completed in compliance with CEQA, the State CEQA Guidelines, and the City’s Local CEQA Guidelines; (2) Based on the substantial evidence set forth in the record, including but not limited to the MND, the Mayor and City Council finds that, based on the whole record before it, none of the conditions under State CEQA Guidelines section 15162 requiring subsequent environmental review have occurred because the Construction Agreement: a) will not result in substantial changes that would require major revisions of the MND due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; and b) will not result in substantial changes with respect to the circumstances under which the Project is developed that would require major revisions of the MND due to the involvement of new significant environmental effects or a substantial increase in the severity of the previously identified significant effects; and c) does not present new information of substantial importance that was not known and could not have been known with the exercise of reasonable diligence at the time the MND was adopted, showing any of the following: (i) that the modifications would have one or more significant effects not discussed in the earlier environmental documentation; (ii) that significant effects previously examined would be substantially more severe than shown in the earlier environmental documentation; (iii) that mitigation measures or alternatives previously found not to be feasible would in fact be feasible and would substantially reduce one or more significant effects, but the applicant declined to adopt such measures; or (iv) that mitigation measures or alternatives considerably different from those analyzed previously would substantially reduce one or more significant effects on the environment, but which the applicant declined to adopt. (3) Based on the substantial evidence set forth in the record, including but not limited to the MND, the Mayor and City Council finds that the applicable mitigation measures identified in the MND have been incorporated into a specific mitigation monitoring program for the Project and would ensure that any potential environmental impacts would be reduced to less than significant levels. 29.a Packet Pg. 1099 Attachment: Attachment 1 - Resolution No. 2021-98 [Revision 1] (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Resolution No. 2021-98 SECTION 5. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 6. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 29.a Packet Pg. 1100 Attachment: Attachment 1 - Resolution No. 2021-98 [Revision 1] (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Resolution No. 2021-98 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-98, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 29.a Packet Pg. 1101 Attachment: Attachment 1 - Resolution No. 2021-98 [Revision 1] (7240 : Construction Contract Award – 2ND Street Bridge Replacement at A G R E EM E N T CITY OF SAN BERNARDINO THIS AGREEMENT is made and concluded this _____ day of _______________, 20___, between the City of San Bernardino (owner and hereinafter "CITY"), and ____________________________________________________ (hereinafter "CONTRACTOR"). 1. For and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the CITY, and under the conditions expressed in the bond as deposited with the CITY, receipt of which is hereby acknowledged, the CONTRACTOR agrees with the CITY, at the CONTRACTOR's own proper cost and expense in the Special Provisions to be furnished by the CITY, to furnish all materials, tools and equipment and perform all the work necessary to complete in good workmanlike and substantial manner the 2ND STREET BRIDGE REPLACEMENT AT WARM CREEK Project No. 13146 in strict conformity with Plans and Special Provisions Project No. 13146, and also in accordance with Standard Specifications for Public Works/Construction, latest edition in effect on the first day of the advertised “Notice Inviting Sealed Bids” for this project, on file in the Office of the City Engineer, Public Works Department, City of San Bernardino, which said Plans and Special Provisions and Standard Specifications are hereby especially referred to and by such reference made a part hereof. 2. The CONTRACTOR agrees to receive and accept the prices as set forth in the Bid Schedule as full compensation for furnishing all materials and doing all the work contemplated and embraced in this agreement; also for all loss or damage arising out of the nature of the work aforesaid or from any unforeseen difficulties or obstructions which may arise or be encountered in the prosecution of the work and for all risks of every description connected with the work; also for all expenses incurred by or in consequence of the suspension or discontinuance of work, and for well and faithfully completing the work and the whole thereof, in the manner and according to the Plans and Special Provisions, and requirements of the Engineer under them. 3. The CONTRACTOR herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on the basis of race, color, national origin, religion, sex, marital status, or ancestry in the performance of this contract, nor shall the CONTRACTOR or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection of subcontractors, vendees, or employees in the performance of this contract. Failure by the CONTRACTOR to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as recipient deems appropriate. A-1 29.b Packet Pg. 1102 Attachment: Attachment 2 - Resolution No. 2021-98; Exhibit A - Contract Agreement (7240 : Construction Contract Award – 2ND Street Bridge 2ND STREET BRIDGE REPLACEMENT AT WARM CREEK Project No. 13146 4. CITY hereby promises and agrees with the said CONTRACTOR to employ, and does hereby employ the said CONTRACTOR to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner, and upon the conditions above set forth; and the same parties for themselves, their heirs, executors, administrators, and assigns, do hereby agree to the full performance of the covenants herein contained. 5. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid of said CONTRACTOR, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said bid conflicting herewith. IN WITNESS WHEREOF, the parties of these presents have executed this contract in four (4) counterparts, each of which shall be deemed an original in the year and day first above mentioned. CONTRACTOR CITY OF SAN BERNARDINO NAME OF FIRM: Ortiz Enterprises, Inc. BY: ________________________________ ROBERT D. FIELD City Manager BY: _______________________________ TITLE: ATTEST: MAILING ADDRESS: 6 Cushing Genoveva Rocha, CMC Irvine, CA 92618 City Clerk PHONE NO.: (949) 753-1414__________ APPROVED AS TO FORM: ATTEST: _______________________________ SONIA CARVALHO, City Attorney ____________________________________ Secretary NOTE: Secretary of the Owner should attest. If Contractor is a corporation, Secretary should attest. A-2 29.b Packet Pg. 1103 Attachment: Attachment 2 - Resolution No. 2021-98; Exhibit A - Contract Agreement (7240 : Construction Contract Award – 2ND Street Bridge 29.cPacket Pg. 1104Attachment: Attachment 3 - Bid Tabulation (7240 : Construction Contract Award – 2ND Street Bridge 29.c Packet Pg. 1105 Attachment: Attachment 3 - Bid Tabulation (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1106 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1107 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1108 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1109 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1110 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1111 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1112 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1113 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1114 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1115 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1116 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1117 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1118 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1119 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1120 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1121 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1122 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1123 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1124 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1125 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1126 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1127 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1128 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1129 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1130 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1131 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1132 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1133 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1134 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1135 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1136 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1137 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1138 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1139 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1140 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1141 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1142 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1143 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1144 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1145 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1146 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1147 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1148 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) 29.d Packet Pg. 1149 Attachment: Attachment 4 - Bid Proposal (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) ATTACHMENT 5 PROJECT LOCATION MAP 2ND STREET BRIDGE REPLACEMENT AT WARM CREEK 29.e Packet Pg. 1150 Attachment: Attachment 5 - Location Map (7240 : Construction Contract Award – 2ND Street Bridge Replacement at Warm Creek (Ward 1)) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: Kris Jensen, Director of Public Works Subject: Authorize Public Works Purchase Order Increases (All Wards) Recommendation Adopt Resolution No. 2021-99 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or designee to execute Public Works purchase order increases for the following: UC Fence, San Bernardino Paint, McCain Inc., Econolite, Inland Body and Paint Center, BHI Plumbing, Heating and Air, and Southern California Gas Company. Background On March 3, 2021, the Mayor and the City Council approved the FY 2020/2 1 Mid-Year Budget report which included Public Works Department budget increases to continue and restore highly critical operations and maintenance services. These increases positively affect the City's ability to protect the safety and welfare of the publ ic as they provide funding for traffic signal controller replacements, security fence installations and repair, paint for graffiti removal, fleet repairs, utility billing for the compressed natural gas station, plumbing, heating, and air conditioning repairs. With supporting budgets in place, vendor purchase order increases are needed to proceed with the continued and additional work with the following vendors: (1) UC Fence - This local vendor currently provides the Department with security fencing installations and repairs. (2) San Bernardino Paint - This local vendor currently provides the Department with paint materials used in the removal of graffiti. (3) McCain Inc. - This vendor supplies the Department with required traffic signal controllers. These highly technical supplies effectively operate pedestrian and vehicular activity 24 hours a day. (4) Econolite - This vendor supplies the Department with essential cabinets and other hardware components needed to house traffic signal controllers and related technology. 30 Packet Pg. 1151 7252 Page 2 (5) Inland Body and Paint Center - This vendor provides auto body and painting services for the City's truck and vehicle fleet. (6) BHI Plumbing, Heating and Air - This local vendor service the City with various plumbing, heating, and air conditioning installations and repairs. (7) Southern California Gas Company - As the local gas utility, this is the sole source vendor providing compressed natural gas (CNG) to the City’s CNG fueling station. Staff previously obtained the lowest bid for each of these vendor services at the beginning of the current fiscal year. For FY 2021/22, staff will be working with Finance to implement vendor service agreements as appropriate. Discussion Mayor and City Council action is required to approve th e above purchase order increases as the adjusted purchase order amount for each vendor exceeds the City Manager’s purchasing authority. The table below summarizes each vendor's established purchase order for FY 2020/21, the amount of the approved increase , and the adjusted purchase order amount for each vendor. VENDOR ACCOUNT NUMBER PRODUCT or SERVICE ORIGINAL FY 20-21 PURCHASE ORDERS PURCHAS E ORDER INCREASE ADJUSTED PURCHAS E ORDER AMOUNTS 1 . UC FENCE 126-400- 0152-5502 Park fence & related repairs $49,999 $75,000 $124,999 2 . SAN BERNARDINO PAINT 126-400- 0089-5111 Paint for graffiti abatement $49,999 $30,000 $79,999 3 . MCCAIN INC. 126-400- 0093-5111 Signal controller replacements $49,999 $50,000 $99,999 4 . ECONOLITE 126-400- 0093-5111 Signal hardware, cabinets $49,999 $26,000 $75,999 5 . INLAND BODY AND PAINT CENTER 635-400- 0100-7153 Auto body services $40,000 $20,000 $60,000 6 . BHI PLUMBING, HEATING AND AIR 001-400- 0037-5502 Plumbing, Heating, and Air services $40,000 $20,000 $60,000 7 . SOUTHERN CALIFORNIA 635-400- 0100-5113 Utility Gas billing for the $219,000 $104,390 $323,390 30 Packet Pg. 1152 7252 Page 3 GAS COMPANY CNG station 2020-2025 Key Strategic Targets and Goals Approval of vendor purchase orders is consistent with Key Target No.1b: Financial Stability - Implement, maintain, and update a fiscal accountability plan and create a framework for spending decisions. Fiscal Impact The FY 2020/21 Mid-Year Budget amendment adopted on March 3, 2021, included a total of $325,390 to support the vendor purchase orders for the following: UC Fence, San Bernardino Paint, McCain Inc., Econolite, Inland Body and Paint Center, BHI Plumbing, Heating and Air, Southern California Gas Company. On -going funding will be included in future operating budgets. Conclusion Adopt Resolution No. 2021-99 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or his designee to execute Public Works purchase order increases for the following: UC Fence, San Bernardino Paint, McCain Inc., Econolite, Inland Body and Paint Center, BHI Plumbing, Heating and Air, Southern California Gas Company. Attachments Attachment 1 Resolution No. 2021-99 Ward: All Synopsis of Previous Council Actions: March 3, 2021 The Mayor and City Council approved the FY2020/21 Mid-Year Budget Report as amended 30 Packet Pg. 1153 Resolution No. 2021-99 RESOLUTION NO. 2021-99 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE PUBLIC WORKS PURCHASE ORDER INCREASES FOR UC FENCE, SAN BERNARDINO PAINT, MCCAIN INC., ECONOLITE, INLAND BODY AND PAINT CENTER, BHI PLUMBING, HEATING AND AIR, AND SOUTHERN CALIFORNIA GAS COMPANY WHEREAS, the Public Works Department oversees the operations and maintenance of City infrastructure; and WHEREAS, the City currently contracts with a number of vendors to assist the Public Works Department with critical repairs and services; and WHEREAS, purchase orders have been approved through the City’s procurement process; and WHEREAS, On March 3, 2021, the Mayor and the City Council approved th e Public Works Department FY2020/21 Mid-Year budget increases in an effort to restore various operations and maintenance services within the City including security fencing, graffiti removal supplies, traffic signal controller systems and hardware, auto body repairs, plumbing and air conditioning services, and compressed natural gas (CNG) for the City’s CNG fueling station; and WHEREAS, the City Council now wishes to amend existing FY 2020/21purchase orders to reflect the approved increases to these services. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager or designee is hereby authorized to execute the following purchase order increases in the amounts indicated: UC Fence ($75,000), San Bernardino Paint ($30,000), McCain Inc.($50,000), Econolite ($26,000), Inland Body and Paint Center ($20,00), BHI Plumbing, Heating and Air ($20,000), and Southern California Gas Company ($104,390). SECTION 3. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions, and to this end the provisions of this Resolution are declared to be severable. SECTION 4. CEQA. The City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule 30.a Packet Pg. 1154 Attachment: Attachment 1 - Resolution 2021-99 Public Works Purchase Order Increases (7252 : Authorize Public Works Purchase Order Resolution No. 2021-99 that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 5. Effective Date. This Resolution shall become effective for the Fiscal Year 2020-2021 based on approval of the 2020-2021 Fiscal Year budgets. On-going funding will be included in future operating budgets. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this 21st day of April, 2021. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, City Clerk Approved as to form: Sonia Carvalho, City Attorney 30.a Packet Pg. 1155 Attachment: Attachment 1 - Resolution 2021-99 Public Works Purchase Order Increases (7252 : Authorize Public Works Purchase Order Resolution No. 2021-99 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, City Clerk, hereby certify that the attached is a true copy of Resolution No. 2021-99, adopted at a regular meeting held on the ___ day of _______ 2021 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ REYNOSO _____ _____ _______ _______ CALVIN _____ _____ _______ _______ ALEXANDER _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2021. Genoveva Rocha, CMC, City Clerk 30.a Packet Pg. 1156 Attachment: Attachment 1 - Resolution 2021-99 Public Works Purchase Order Increases (7252 : Authorize Public Works Purchase Order Page 1 Request for Future Meeting City of San Bernardino Date: April 21, 2021 To: Honorable Mayor and City Council Members From: Robert D. Field, City Manager By: John Valdivia, Mayor Subject: Authorization to Allow Concrete to be Crushed Onsite - North Palm Avenue 31 Packet Pg. 1157