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HomeMy WebLinkAbout06-17-2020 Agenda PacketCITY 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, JUNE 17, 2020 5:30 PM – CLOSED SESSION 7:00 PM – OPEN SESSION W EB-CONFERENCE • VIA ZOOM • WWW.SBCITY.ORG IMPORTANT COVID-19 NOTICE IN AN EFFORT TO PROTECT PUBLIC HEALTH AND PREVENT THE SPREAD OF COVID-19 (CORONAVIRUS) AND TO ENABLE APPROPRIATE SOCIAL DISTANCING, THE MAYOR & CITY COUNCIL MEETING WILL NOT BE OPEN TO PUBLIC ATTENDANCE. THE CITY OF SAN BERNARDINO ENCOURAGES THE PUBLIC TO VIEW THIS MAYOR & CITY COUNCIL MEETING ON TELEVISION OR ONLINE. 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IF YOU HAVE ANY QUESTIONS PLEASE CALL THE CITY CLERK’S OFFICE AT 909 -384-5002. http://edocs.sbcity.org/WebLink/Browse.aspx?id=4077578&dbid=0&repo=SB John Valdivia James Mulvihill Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 2 Printed 6/12/2020 Theodore Sanchez John Valdivia James Mulvihill MAYOR PRO-TEM, WARD 1 MAYOR COUNCIL MEMBER, WARD 7 Sandra Ibarra Teri Ledoux COUNCIL MEMBER, 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 ACTING CITY CLERK Henry Nickel COUNCIL MEMBER, W ARD 5 Bessine L. Richard COUNCIL MEMBER, W ARD 6 CITY ATTORNEY Welcome to a meeting of the Mayor and City Council of the City of San Bernardino. 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. Call to Order Attendee Name Present Absent Late Arrived Mayor Pro-Tem, Ward 1 Theodore Sanchez    Council Member, Ward 2 Sandra Ibarra    Council Member, Ward 3 Juan Figueroa    Council Member, Ward 4 Fred Shorett    Council Member, Ward 5 Henry Nickel    Council Member, Ward 6 Bessine L. Richard    Council Member, Ward 7 James Mulvihill    Mayor John Valdivia    Acting City Clerk Genoveva Rocha    City Attorney Sonia Carvalho    City Manager Teri Ledoux    Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 3 Printed 6/12/2020 5:30 P.M. CLOSED SESSION PUBLIC COMMENT CLOSED SESSION (A) CONFERENCE WITH REAL PROPERTY NEGOTIATORS - Pursuant to Government Code Section 54956.8: Property Address: Bryce Hanes Park, 534 W. 9th Street (APN 01040-143-54) Agency Negotiator: Teri Ledoux, City Manager Negotiating Party: San Bernardino Valley Municipal Water District Under Negotiation: Price and Terms of Purchase (B) CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Pursuant to Government Code Section 54956.9(a) and (d)(1)): a. Pepe’s Inc. dba Pepe’s Towing v. City of San Bernardino, et al., United States District Court Case No. 5:18-cv-02277 SVW (SPx) b. Pepe’s Inc., a California Corporation, dba Pepe’s Towing v. City of San Bernardino, Virginia Marquez, et al., 9th Circuit Court of Appeal, Case No. 19-56501 c. Pepe’s Inc. v. City of San Bernardino, et al., California Court of Appeal, 4th Appellate District, Division 2, Case No. E0741745 (Underlying SBCSC Case No. CIVDS1827968) 7:00 P.M. INVOCATION AND PLEDGE OF ALLEGIANCE CLOSED SESSION REPORT PUBLIC COMMENTS FOR ITEMS LISTED AND NOT LISTED ON THE AGENDA STAFF REPORTS 1. Update on Cannabis Permits and Litigation; Review of Permit Categories and Numbers; Review of Application Criteria; and Adoption of Resolution to Establish Microbusiness Permits Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Accept the annual commercial cannabis business permit update and litigation update; and Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 4 Printed 6/12/2020 2. Discuss and provide direction to staff on whether to increase or modify permit categories and the number of permits, and direct staff to prepare a possible ordinance to increase the total number of permits and/or prepare a resolution to either adjust the distribution of permits by type or to eliminate the restriction altogether; and 3. Discuss and provide feedback on recommended amendments to the proposed commercial cannabis business permit application review criteria, procedures and fees; and 4. Adopt Resolution 2020-148 authorizing the transition of two current open and operating commercial cannabis businesses to alter their existing permits to transition to two commercial cannabis microbusiness permits. 2. Award of a Construction Agreement for the Palm Medians Landscape Improvement Project Recommendation Adopt Resolution No. 2020-116 of the Mayor and City Council of the City of San Bernardino, California: 1. Authorizing expenditures in a total amount of $735,000 for the construction of the Palm Avenue Median Landscape Project (“Project”) to include a Construction Agreement in the amount of $668,000 and contingencies in the amount of $67,000; and 2. Approving the award of a Construction Agreement with KASA Construction, Inc. of Chino, California, in the amount of $668,000 to perform the median improvements; and 3. Amending the FY 2019/20 CIP SS20-011 - Citywide Medians Rehabilitation Project to include Palm Avenue Median as project location; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 3. Setting the 2020 Regulatory Fee Rate for the Sale of "Safe and Sane" Fireworks Recommendation Adopt Resolution No. 2020-130 of the Mayor and City Council of the City of San Bernardino, California, setting the 2020 Regulatory Fee for the sale of "safe and sane" fireworks in the City of San Bernardino. 4. Lease Extension Agreement Options - Vanir Tower Building, Inc. Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, consider Vanir Tower lease options and provide direction to staff. Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 5 Printed 6/12/2020 CONSENT CALENDAR 5. January, February, March, April, and May 2020 City Board, Commission, and Citizen Advisory Committee Approved Minutes Recommendation That the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City Board, Commission, and Citizen Advisory Committee meetings approved in March, April, and May 2020. 6. Notice and Calling of a General Municipal Run-Off Election Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt the following resolutions required in order to conduct a General Municipal Run-Off Election on Tuesday, November 3, 2020: 1) Adopt Resolution No. 2020-146 of the Mayor and City Council of the City of San Bernardino, California, calling and giving notice of the holding of a General Municipal Run-Off Election to be held on Tuesday, November 3, 2020, requesting the Board of Supervisors of the County of San Bernardino to consolidate said Election with the November 3, 2020, Statewide General Election and permit the San Bernardino County Registrar of Voters to render Election services to the City of San Bernardino for said Election, and authorizing the City Manager to pay the invoice for the costs of the Election; and 2) Adopt Resolution No. 2020-147 of the Mayor and City Council of the City of San Bernardino, California, adopting regulations for candidates for elective office pertaining to Candidate Statements submitted to the voters at an Election to be held on Tuesday, November 3, 2020. 7. Approval of Commercial and Payroll Disbursements Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino approve the commercial and payroll disbursements for May 2020. 8. Approve City Investment Policy for FY 2020/21 Recommendation Adopt Resolution No. 2020-124 of the Mayor and City Council of the City of San Bernardino, California, approving the City Investment Policy for FY 2020/21. 9. Monthly Investment Portfolio Report for May 2020 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 May 2020. Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 6 Printed 6/12/2020 10. Agreement with R.T. Desai & Associates for Accounting Consultant Services Recommendation Adopt Resolution No. 2020-125 of the Mayor and City Council of the City of San Bernardino, California, approving the Professional Services Agreement between the City of San Bernardino and consultant R.T. Desai & Associates for accounting services in the amount of $150,000 and authorizing the City Manager, or designee, to execute the agreement. 11. First Amendment to the Professional Services Agreement Between the City of San Bernardino and Barboza & Associates for Investigation Services Recommendation Adopt Resolution 2020-126 of the Mayor and City Council of the City of San Bernardino, California, approving the First Amendment to the Professional Services Agreement between the City of San Bernardino and Barboza & Associates for workplace investigation services. 12. Risk Management Insurance Program Fiscal Year 2020/21 Recommendation Adopt Resolution No. 2020-131 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to purchase both a 30 -day extension to the current excess liability policies for the extended term of coverage through July 31, 2020 for the premium amount of $47,509 and excess workers’ compensation insurance through Public Risk Innovation, Solutions, and Management (PRISM) formerly California State Associate of Counties Excess Insurance Authority (CSAC-EIA) premium quote in the amount of $384,275. 13. Side Letter Agreement Between the City and the San Bernardino Police Officers Association (SBPOA) Recommendation Adopt Resolution No. 2020-132 of the Mayor and City Council of the City of San Bernardino, California, approving a Side Letter Agreement to the Mem orandum of Understanding (MOU) between the City of San Bernardino and the San Bernardino Police Officers Association (SBPOA), amending Article VI-Working Conditions, Section 1: Work Schedules and Article III-Compensation, Section 3: Overtime, effective the first full 28-day work period following Mayor and City Council approval. 14. Addendum to Amend the Performance Period Deadline for the Visual and Performing Art Grant Award Agreements Recommendation Adopt Resolution No. 2020-133 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or designee to execute an addendum to the Visual and Performing Art Grant Award Agreements amending the performance period deadline to December 31, 2020. Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 7 Printed 6/12/2020 15. First Amendment to Memorandum of Understanding Between the Public Safety Academy of San Bernardino Inc. (PSA) and the San Bernardino Police Department Recommendation Adopt Resolution No. 2020-134 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the First Amendment to the Memorandum of Understanding between the Public Safety Academy of San Bernardino Inc. (PSA) and the San Bernardino Police Department. 16. Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding Recommendation Adopt Resolution 2020-135 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to accept the BJA Fiscal Year 2020 Coronavirus Emergency Supplemental Funding Program Grant in the amount of $632,422; and authorizing the Director of Finance to amend the Fiscal Year 2020/21 budget, appropriating $632,422 in both revenue and expenditures. 17. Authorize Replacement Professional Services Agreement with Axon Enterprise, Inc. Recommendation Adopt Resolution No. 2020-129 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a replacement Professional Services Agreement with Axon Enterprise, Inc., decreasing costs for the remaining two years of an existing five-year agreement by $139,426.56. 18. Adopt a Resolution to Authorize the Issuance of FY 2020/21 Purchase Orders for Annual Usage Fees, Software and Hardware Maintenance Service Agreements Recommendation Adopt Resolution 2020-139 of the Mayor and City Council of the City of San Bernardino, California, authorizing the issuance of Fiscal Year 2020/2021 Purchase Orders for the annual usage fees, software and or hardware support with Accela Corporation, CelPlan, Earth Science Research Institute (ESRI), Konica Minolta, NPA Computers, TPX, Tyler Technologies, and Verizon Cellular as outlined in the report. Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 8 Printed 6/12/2020 19. Amendment No. 2 to Professional Services Agreement with Annie Clark for Accounting Services Recommendation Adopt Resolution 2020-138 of the Mayor and City Council of the City of San Bernardino, California, authorizing the execution of Amendment No. 2 to Professional Services Agreement for accounting consultant services between the City of San Bernardino and Annie Clark, in a n amount not to exceed $92,200; and authorize the City Manager or designee to take any further actions as necessary to effectuate the agreement. 20. Subordination of a Deed of Trust in Connection with 275 East 49Th Street, San Bernardino, California Recommendation Adopt a Resolution No. 2020-141 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino , approving a Subordination of a Deed of Trust in connection with refinancing the Senior Mortgage relating to real property located at 275 East 49th Street, San Bernardino, California. 21. Ratify and Accept the San Bernardino County Fire Protection District’s (“District”) Ordinance No. FPD 20-01 Recommendation Adopt Resolution No. 2020-140 of the Mayor and City Council of the City of San Bernardino, California, to ratify and accept the San Bernardino County Fire Protection District’s (“District”) Ordinance No. FPD 20-01, which amends and adopts the 2019 Edition of the California Fire Code, known as California Code of Regulations, Title 24, Part 9, based on the 2018 Edition of the International Fire Code. 22. Award of a Construction Contract for City Yard Roof Replacement Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-122: 1. Amending the FY 2019/20 Capital Improvement Plan (CIP) to include City Yard Roof Replacement (“Project’); and 2. Approving a total project budget in the amount of $308,017 for the construction contract in the amount of $279,517 and project contingencies in the amount of $28,500; and 3. Approving the award of a Construction Contract with Bligh Roof Co. DBA Bligh Pacific of Santa Fe Springs, California in the amount of $279,517; and 4. Authorizing the Director of Finance to amend the FY 2019/20 adopted budget to transfer a total of $308,017 from Public Works Building Maintenance accounts 001-400-0037-5172 (Equipment Maintenance) and 001 -400-0037-5502 (Professional Contractual services) to Capital Improvement Project Fund 001- 160-8774 in support of the Project; and Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 9 Printed 6/12/2020 5. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. 23. Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for Measure I Local Expenditures Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution No. 2020-143, approving the Measure I Five-Year Capital Improvement Plan for FY 2020/21 through FY 2024/25 and Measure I Expenditure Strategy. 24. Resolution Declaring Intent to Annex Territory: Community Facilities District No. 2019-1 (Maintenance Services): Annexation No. 4, Tax Zone No. 5 (TR 20006) APN 0261-181-16 and 0261-181-17 Recommendation Adopt Resolution No. 2020-144 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 4) and authorizing the levy of a special taxes therein. 25. Resolution Approving Cooperative Agreement with the City of Highland and San Bernardino County for Submission of a Grant Application to the Active Transportation Cycle 5 Grant Program Recommendation Adopt Resolution No. 2020-113 of the Mayor and City Council of the City of San Bernardino, California, approving a Cooperative Agreement with the City of Highland and San Bernardino County for the submission of a Grant Application to the Active Transportation Cycle 5 Grant Program for the Highland/San Bernardino Bi-City Bikeway and Walkway Connector (Project) and authorizing the Director of Finance to record a budget adjustment in Local Circulation Development Impact Fee (DIF) Fund No. 263 in the amount of $23,000 in support of the application preparation. 26. Purchase and Sale Agreement and Joint Escrow Instructions for the Partial Acquisition for Assessor’s Parcel 0271-051-11 and 0271-051-12 for the Widening of West 40TH Street from Johnson Street to Electric Avenue Recommendation Adopt Resolution No. 2020-117 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Partial Purchase and Sale Agreement with Bryan Henley and Sharland L. Henley for the property located at 337 & 339 West 40th Street. Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 10 Printed 6/12/2020 ITEMS TO BE REFERRED TO COMMITTEE REPORTS ON CONFERENCES/MEETINGS ATTENDED ADJOURNMENT 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 will be held on Wednesday, June 24, 2020 via web-conference. Closed Session will begin at 5:00 p.m. and Open Session will begin at 5:30 p.m. CERTIFICATION OF POSTING AGENDA I, Genoveva Rocha, CMC, Acting City Clerk for the City of San Bernardino, California, hereby certify that the agenda for the June 17, 2020 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, June 12, 2020 . I declare under the penalty of perjury that the foregoing is true and correct. ___________________________________ Genoveva Rocha, CMC, Acting City Clerk Regular Meeting Agenda June 17, 2020 Mayor and City Council of the City of San Bernardino Page 11 Printed 6/12/2020 NOTICE: 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 Staff Report City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Community & Economic Development Director Subject: Required Annual Commercial Cannabis Business Permit Update Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Accept the annual commercial cannabis business permit update and litigation update; and 2. Discuss and provide direction to staff on whether to increase or modify permit categories and the number of permits, and direct staff to prepare a possible ordinance to increase the total number of permits and/or prepare a resolution to either adjust the distribution of permits by type or to eliminate the restriction altogether; and 3. Discuss and provide feedback on recommended amendments to the proposed commercial cannabis business permit application review criteria, procedures and fees; and 4. Adopt Resolution 2020-148 authorizing the transition of two current open and operating commercial cannabis businesses to alter their existing permits to transition to two commercial cannabis microbusiness permits. Discussion Annual Commercial Cannabis Business Permit Update San Bernardino Municipal Code Chapter 5.10 establishes the regulations and standards for Commercial Cannabis Business (CCB) activities in the City. The Mayor and City Council initially adopted Chapter 5.10 through Ordinance MC-1464 in March 2018. In October 2018, the Mayor and City Council amended Chapter 5.10 with Ordinance MC - 1503. The Mayor and City Council then adopted Resolution 2018 -227 to place Ordinance MC-1503 on the November 2018 ballot for voter approval. In November 2018, the voters approved Ordinance MC-1503 as Measure X. Chapter 5.10 requires the Mayor and City Council to set forth procedures to govern the 1 Packet Pg. 12 6776 Page 2 application process for CCB permits (SBMC, § 5.10.090 (a)). In April 2018, the Mayor and City Council adopted Resolution 2018-102, establishing the review criteria for CCB applications and authorizing the City Manager to prepare the necessary forms, establish the application process, solicit applications, conduct the initial evaluation, and ultimately provide a recommendation to the Mayor and City Council. The current Procedures and Guidelines, issued by the City Manager, are attached hereto (Attachment 1). Regulations and Process Under Chapter 5.10, to operate a commercial cannabis business in the City, a person must obtain a valid CCB Permit from the City and a valid license for the cannabis operation from the State (SBMC, § 5.10.060). The City offers six types of permits: cultivation, distribution, manufacturing, microbusiness, retail, and testing (SBMC, § 5.10.060). Chapter 5.10 currently initially caps the number of commercial cannabis business permits that the City may issue to one permit for every 12,500 residents based on population reports from the State Department of Finance (SBMC, § 5.10.080). The total cap is presently 17 permits, based on a January 2017 population report. This cap may be increased by Ordinance of the Mayor and City Council (SBMC, § 5.10.080). History and Current Status of Permits The application period for commercial cannabis business permits was open from May 2018 to June 2018. The City processed the applications and awarded sixteen permits in February 2019. As of the time this report was written, the status of the awarded permits is as follows: Currently the City has two open and operati ng commercial cannabis businesses, one retail business, and one distribution business, with a second retail business close to 1 Packet Pg. 13 6776 Page 3 opening. Additionally, there are 9 businesses in various categories in the plan check process and two preparing to submit by the e nd of July. Staff has communicated with the last two applicants who have indicated that they are not ready to proceed to the next step and have not submitted for plan check. Various Recommendations: Permit Processing, Microbusinesses, and Relocations Under Chapter 5.10, the application process may be changed from time -to-time. Staff is recommending amending the application process to address modifications, changes or additions to existing license types and the expansion of an existing business footprint and preparations. This proposed expansion will allow for the two current operators (distribution and retail) to consider a transition to Microbusiness (Attachment 2). This will also allow for awarded but not yet operating and future cannabis businesses to m odify their awarded permits to expand their operations and generate additional revenue. Staff is also recommending these amendments be processed administratively as part of the overall application process streamlining. As referenced in Section 5.10.200, awarded cannabis businesses may apply for relocation within the City using the established application process set forth in Section 5.10.090. The application process is currently set up in four phases consisting of an application submittal, review of the ap plication, applicant interviews, and Mayor and City Council consideration. There are set fees established for each phase. Staff is recommending streamlining this process by combining Phase 1 and 2, eliminating Phase 3, and keeping Phase 4. As outlined in the proposed guidelines (see Attachment 4), the proposed process will consist of three steps: (1) application submittal; (2) staff review; and (3) Mayor and City Council consideration. By streamlining the process, an applicant wanting to relocate will be able to move forward in a simplified manner to the Mayor and City Council for consideration. Pursuant to Section 5.10.320 (Other Operational Requirements), as part of the Mayor and City Council’s consideration, the City Manager, or his/her designee, has the ability to develop other commercial cannabis business operational requirements or regulations as are determined to be necessary to protect the health, safety, and welfare of the public. Staff would like direction from the Mayor and City Council on whethe r to require applicants to provide a Lease Agreement or Purchase Agreement as an additional operational requirement during the application process. If this is desired, staff will request a “Notice of Intent to Lease or Purchase the Property” as part of the application. If, instead, it is preferred that such evidence be provided upon approval, staff will require the applicant to provide such documentation within 60 days as a condition of approval. Permit Processing Deadlines As illustrated in the Current Status table above, staff believes that it is in the best interest of the City and other perspective applicants to establish and impose deadlines on applicants who were awarded a permit, but who have been slow to establish their 1 Packet Pg. 14 6776 Page 4 business. There may be various reasons why some of the permittees have been slow to proceed; however, staff contends that a performance provision should have been included in the original ordinance or guidelines. Staff is therefore recommending a “use it or lose it” deadline for current applicants that were awarded a CCB in February 2019 of three (3) months from the time any ordinance expanding the number of permits goes into effect. If the awarded applicant is not able to secure a location and submit tenant improvement plans to the City for review within the allotted time frame, the applicant will forfeit their permit. The intent of this proposed provision is to move stalled applicants along, and if they cannot proceed in a reasonable time frame, open the available permits up to other prospective applicants who have the ability to secure a location and establish a commercial cannabis business. Additionally, staff is also proposing a new 12-month deadline for new applicants awarded a permit by Mayor and City Council. The 12-month deadline begins from the date the permit is awarded. This is intended to provide ample time for a permittee to proceed with securing a location and submitting for their tenant improvements as outlined in the proposed guidelines (see Attachment 4). Moreover, the timeframe emphasizes to applicants that they must diligently pursue the establishment of their commercial cannabis business, or risk losing their permit. The lack of a performance provision has impacted the projected cannabis tax revenue that the Cit y was expecting to receive as a result by permitting commercial cannabis businesses in the City. Award Existing Operators the Opportunity to Operate as Microbusinesses The City awarded five microbusiness permits in February 2019. To date, not a single microbusiness is in operation. One microbusiness applicant experienced a delay due to relocation and is now in plan check. The two operators who are open for business and generating tax revenue (distribution & retail) have demonstrated the ability to open, operate, and do business. The City can further its goals by offering each of the two businesses the opportunity to operate as microbusinesses. The City has awarded a total of 16 commercial cannabis business permits in various categories so expanding this one category will require the adoption of a Resolution pursuant to Chapter 5.10 of the Municipal Code. The Mayor and City Council will also need to adopt an administrative process to facilitate the changes should the operators desire to take advantage of the opportunity. The operators would be required to pay a $4,618 Application Submittal and Review Fee, but will not go through an entirely new the full formal review process. Should the Mayor and City Council desire to move forward with the variou s policy recommendations set forth in this report, it will need to adopt a resolution updating the Procedures and Guidelines. Some of those policy amendments are set forth in the attached draft Guidelines (Attachment 4). The City can further the goal of implementing the voters desire to see cannabis businesses operating in the City by providing greater flexibility to make changes to the various categories and for the maximum number of permits. Under Chapter 5.10, some of these changes must be adopted by resolution and others by ordinance. The voter 1 Packet Pg. 15 6776 Page 5 approved Chapter 5.10 provides that the City will start with one cannabis permit for every 12,500 in population, but it also authorizes the City to increase the number of permits by ordinance. For various rea sons, it can take many months for operators to open for business. The City may want to consider increasing the number of permits, realizing that ultimately there will be fewer operators than the number of awarded permits. Increasing the number of permits will also be essential to resolving litigation as discussed in the litigation section below. Commercial Cannabis Litigation Update and Recommendations Below is a brief summary with expenses, to date, of each of the cases involving San Bernardino’s permitting of commercial cannabis businesses: A. Washington, et al. (CIVDS 1905710, filed 2/25/2019) Opposing Counsel: Ben Eilenberg (Please note: though the court has not been so advised, Mr. Eilenberg’s license to practice law has been suspended) Plaintiffs: Washington, LLC (microbusiness applicant, denied); MTV Holdings, LLC (affiliation unknown); Bubba Likes Tortillas, LLC (affiliation unknown) Defendants: City; Andrea Miller Format of Complaint: Complaint and Petition for Writ of Mandate (Government Waste/Government Corruption) Allegations: Issuance of permits to groups without approved Zoning Verification Letters and to groups whose projects conflict with the SB General Plan was illegal; all permits were issued illegally because Phase III interviews constitute meetings in violation of the Brown Act; all permits were issued illegally because of SB’s failure to set forth a scoring rubric and its failure to follow its procedures; all permits were issued illegally because the process was tainted by illegal campaign contributions. Application Problems/Score: Phase 2: 67.07% (15th out of 17 for microbusiness); Phase 3: 77.92% (17/17); Combined: 73.85% (16/17). Attorney’s Fees and Costs to Date: $141,704.35 (Please note: all work applicable to all cases jointly-including creation of the administrative record-has been billed to this matter) B. EEL Holdings, LLC (CIVDS 1906467, filed 3/1/2019) Opposing Counsel: Jeff Augustini Plaintiff: EEL Holdings, LLC (Elliot Lewis with Connected Cannabis Co., 1 Packet Pg. 16 6776 Page 6 retail applicant, denied) Defendants: City; Andrea Miller Format of Complaint: Verified Petition for Writ of Mandamus and Complaint for Peremptory Writ of Mandate and Injunctive Relief Allegations: The City violated 5.10.090, 180, 250(c), and Resolution 2018-102 by permitting applicants whose application did not comply with the General Plan, by altering adopted application procedures of May 2018 without a Resolution as required by 5.10.090(a) and 5.10.180(a), by failing to apply and assess objective review criteria as required by 5.10.090(a) and Resolution 2018- 102 and by abusing discretion under 5.10.090(a) to formulate and implement criteria, and by permitting a late-filed application to proceed and ultimately to award that applicant a license in violation of 5.10.090(d). The City also cost Plaintiff at least $100,000 in failing to permit the Connected Cannabis Co. Application Problems/Score: Phase 2: 82.73% (Tied 8th out of 18 for retail); Phase 3: 82.32% (13/18); Combined: 82.48% (12/18). Attorney’s Fees and Costs to Date: $92,186.17 C. Ashe Society SB LLC (CIVDS 1911952, filed 4/19/2019) Opposing Counsel: Tin Westen of Westen Law Plaintiff: Ashe Society SB LLC (two permit applications: 590 S. E St (retail) and 785 S. Lugo Ave (retail), both denied) Defendants: City; Andrea Miller Format of Complaint: Verified Petition for Peremptory Writ of Mandate and Complaint for Declaratory Relief Allegations: The City violated 5.10.180, among other sections, in failing to adhere to requirements to select applicants who would move forward with the permitting process at a public hearing. The City published the May 21, 2018 guidelines without adoption by Resolution as required. Scoring was inconsistent, with three businesses at the same location receiving different “location” scores. Approving permits on February 21, 2019 represents a misinterpretation and failure to comply with the mandates of 5.10. Application Problems/Score: S. E Street: Phase 2: 81.07% (11th out of 18 for retail); Phase 3: 83.52% (16/18); Combined: 82.60% (11/18) Attorney’s Fees and Costs to Date: $6,077.04 1 Packet Pg. 17 6776 Page 7 D. SB Pharma Holdings, Inc. (CIVDS 1914576, filed 5/14/2019) Opposing Counsel: Nancy Minkler of Ad Astra Law Group Plaintiff: SB Pharma Holdings, Inc. dba The Row House (retail applicant, denied) Defendant: City Format of Complaint: Petition for Writ of Mandate (CCP §§ 1085, 1094.5) and Complaint for Injunctive Relief Allegations: The City violated 5.10 and the Application Procedure Guidelines by allowing applicants who did not comply with the cannabis Ordinance, comply with the General Plan, pay the required fees, submit required materials, or obtain the required Zoning Verification Letter to proceed through the process. Selection was inconsistent with scoring, with the highest scoring applicants not selected for permits. Application Problems/Score: Phase 2: 82.73% (Tied 8th out of 18 for retail); Phase 3: 83.56% (7/18); Combined: 83.25% (9/18). Attorney’s Fees and Costs to Date: $32,445.86 E. Kahros, et al. (CIVDS 1830325, filed 11/20/2018) Opposing Counsel: John Jay Lebron Plaintiffs: Kostadinos Kahros, Athina Kahros, Leonard Paul Alba Defendants: City; Jarrod Burguan (Chief of Police); Jeffrey Bloom (Interim Director of the Community Development Department) Format of Complaint: Complaint for Declaratory Relief, Inverse Condemnation, Petition for Writ of Mandate and Injunctive Relief Allegations: Between the court’s ruling that Measure O was invalidated (1/18/18) and signing the judgment repealing Measure O (2/28/18), Defendants obtained and served search warrants against all 50 operating marijuana businesses in San Bernardino. During these “raids,” officials with the Department of Building and Safety accompanied police and entered the premises of cannabis businesses and inspected for compliance with building and saf ety codes. Notices of Violation were issued during the “raids” for such violations and “red tags” were issued. Due process rights were violated by the execution of illegal “raids.” The order that buildings be closed and “locked out” without hearing is a taking. What the Plaintiff Wants: Money damages and an order enjoining SB 1 Packet Pg. 18 6776 Page 8 from using criminal search warrants and “red tags” and orders to disconnect electrical service to close down marijuana businesses. Attorney’s Fees and Costs to Date: $2,132.87 F. KP Investment Group, LLC (CIVDS 1909577, filed 3/29/2019) Opposing Counsel: Robert Freeman Plaintiffs: KP Investment Group, LLC (microbusiness applicant, denied) Defendants: City; Andrea Miller Format of Complaint: Complaint and Petition for Writ of Mandate Allegations: Businesses which did not receive approved Zoning Verification Letters improperly received permits (Luke, LLC [Organtix Orchards]; AM-PM MGMT, Inc. [Cold Creek Organics]; Ashe Society SB, LLC; Red Brick Industries, LLC). SB failed to provide a full scoring rubric, and certain scores seem nonsensical; for example, AM-PM was denied a Zoning Verification Letter and had eight sensitive uses within 600 feet, but received a 165/200 Neighborhood Compatibility score and a 160/200 Location score. Appli cants who were noncompliant with the General Plan received scores higher than those who were compliant; e.g., Orange Show Cultivators was deemed noncompliant but received a Neighborhood Compatibility score of 178.75/200 and a Location score of 167.5/200. Further, SB violated its own procedures and the Municipal Code. Application Problems/Score: Phase 2: 73.67% (11th out of 17 for microbusiness); Phase 3: 82.48% (8/17); Combined: 79.18% (11/17). Attorney’s Fees and Costs to Date: $1,659.95 G. Washington II (CIVDS 1922151, filed 7/26/2019) Opposing Counsel: Ben Eilenberg (Please note: though the court has not been so advised, Mr. Eilenberg’s license to practice law has been suspended) Plaintiffs: Washington, LLC (microbusiness applicant, denied) Defendants: City Format of Complaint: Complaint and Petition for Writ of Mandate (Government Waste/Government Corruption) Allegations: The City Council of the City of San Bernardino lacked the authority to reduce the setback requirement in Section 5.10.250 of the San 1 Packet Pg. 19 6776 Page 9 Bernardino Municipal Code. Application Problems/Score: Phase 2: 67.07% (15th out of 17 for microbusiness); Phase 3: 77.92% (17/17); Combined: 73.85% (16/17). Attorney’s Fees and Costs to Date: $16,770.78 H. Interveners in Open Litigation These are businesses which either received a commercial cannabis business permit or participated in the process, but were not awarded, and are concerned that the outcome of the lawsuits may adversely impact them. Name Type Phase 3 Score Status Counsel 4th Street Dispensary†† Microbusiness 2018/2500 (80.72%) Not awarded Unknown Blunt Brothers, Inc. Distribution 2080/2500 (83.20%) Awarded; Open Dana Cisneros Central Avenue Nursery, LLC Microbusiness 2067/2500 (82.68%) Awarded; In plan check James Penman ECS Labs, Inc. Microbusiness 2051/2500 (82.04%) Not awarded Matt Harrison Nibble This, LLC Microbusiness (S. E St.) 2119/2500 (84.76%) Awarded; Permits pulled, under construction Jacqueline Vinaccia Microbusiness (S. H St.) 2121/2500 (84.84%) Awarded; In plan check Orange Show Cultivators, Inc. Microbusiness 2223/2500 (88.92%) Awarded; Not submitted for plan check Jason Thompson I. Captain Jacks - Yi v. City of San Bernardino (Measure O Related Litigation) Opposing Counsel: Roger Diamond The City recently prevailed on an appeal. The Court found the issue of the validity of Measure O to be moot and ordered the case dismissed. The issue of the validity of the Measure O permits has not been decided and the attorney has indicated a willingness to continue to litigate. 1 Packet Pg. 20 6776 Page 10 J. Recommendation Should these lawsuits proceed to trial (seven trials total as cases have been consolidated for discovery purposes only), Plaintiffs have expressed great desire to aggressively pursue discovery, including but not limited to depositions of council members. We can also anticipate dispositive motions on just about every case, though as always, summary judgment is a very difficult bar to clear. Without any settlement, we would estimate each trial to cost approximately $75,000, for a total of somewhere in the neighborhood of $500,000. Given the preliminary nature of the cases, however, it is important to remember that this figure is subject to revision upon learning new information. Given that all but one applicant (Washington) exceeded the 80% score threshold, we would recommend engaging in settlement discussions with each viable applicant/plaintiff to move in the direction of issuing permits where possible. Regulation of Cannabis Deliveries Chapter 5.10 that regulates cannabis businesses was ad opted by the voters as Measure X. If the Mayor and City Council desire to formally amend Chapter 5.10 , it will have to propose a new measure to the voters. The City Council does not have the authority to amend the Ordinance without voter approval. By way of example only, some cities have enacted cannabis delivery ordinances containing the following provisions related to cannabis deliveries: A City Business License is required (and an associated $293 fee); A Cannabis Delivery Service Permit is required; Delivery is permitted to residential addresses only; Delivery is permitted only during the hours of 9:00 a.m. and 9:00 p.m. Cannabis or cannabis goods delivered to residential properties located within 600 feet of a public or private K -12 school cannot occur during school hours (8:00 a.m. to 3:00 p.m. weekdays); "Dash Cams" are required in delivery vehicles; Delivery service business must include public education materials (i.e., negative health impacts to youth and DUI prevention) Background checks are required by the City. If the Mayor and City Council wants to enact similar regulations on cannabis delivery businesses, staff can prepare a report guiding the Mayor and City Council on the steps to do so. In the meantime, staff plans to ensure that the Guidelines make clear that deliveries are subject to the permitting scheme (all CCBs are) and no delivery service to locations within the City is permitted absent a permit. Of course, deliveries that simply go through the City may continue so long as they are not picked up or dropped off within City limits. 1 Packet Pg. 21 6776 Page 11 Financial Impact Commercial cannabis business permit applicants were required to pay an application fee to recover the City’s costs in processing the permits. Staff reported in 2019 t hat once commercial cannabis business permits are issued and businesses are operating, it is anticipated the City will receive revenues related to the business activities, however, maximum revenues have not been achieved , and the City has incurred and will continue to incur litigation related costs. If the City were to continue with the litigation, costs may be as high as half a million dollars or more. The City may be able to resolve certain cases without any monetary payments. 2020-2025 Key Strategic Targets and Goals The annual commercial cannabis update and proposed changes to the existing guidelines is consistent with Key Target No 1: Financial Stability. Specifically, improving the commercial cannabis business procedures and the code provisions tha t regulate commercial cannabis, should improve the process thereby allowing the City to capture cannabis revenue. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and file the annual commercial cannabis business permit update and litigation update; and 2. Discuss and provide direction to staff on whether to increase or modify permit categories and the number of permits, and direct staff to prepare a possible ordinance to increase the total number of permits and/or prepare a resolution to either adjust the distribution of permits by type or to eliminate the restriction altogether; and 3. Discuss and provide feedback on recommended amendments to the proposed commercial cannabis business permit application review criteria, procedures and fees; and 4. Adopt Resolution 2020-148 authorizing the transition of two current open and operating commercial cannabis businesses to alter their existing permits to transition to two commercial cannabis microbusiness permits. Attachments Attachment 1 Guidelines (Issued by City Manager per Resolution 2018-102) Attachment 2 Resolution 2020-148 Attachment 3 Draft Resolution to Amend Established Commercial Cannabis Permit Application Review Criteria, Procedures and Fees Attachment 4 Draft New Procedures & Guidelines, Application Review Criteria and Proposed Fees Ward: All 1 Packet Pg. 22 6776 Page 12 Synopsis of Previous Council Actions: March 7, 2018 Mayor and City Council Ordinance-1464 Adopting Chapter 5.10 of the San Bernardino Municipal Code related to the Regulation of Commercial Cannabis Activities. April 4, 2018 Mayor and City Council Adopted Resolution 2018-101 Establishing the Maximum Number of Commercial Cannabis Business Types. April 4, 2018 Mayor and City Council Adopted Resolution 2018-102 Establishing Commercial Cannabis Permit Application Review Criteria and Procedures. April 4, 2018 Mayor and City Council Adopted Resolution 2018-103 Establishing Commercial Cannabis Application Review and Appeal Fees. September 5, 2018 Mayor and City Council Adopted Ordinance-1503 Amending Chapter 5.10 of the San Bernardino Municipal Code related to the Regulation of Commercial Cannabis Activities. 1 Packet Pg. 23 Commercial Cannabis Business – Guidelines Revised 01/31/19 - 1 – C o m m u n i t y D e v e l o p m e n t D e p a r t m e n t -P l a n n i n g D i v i s i o n O f f i c e : 2 0 1 N o r t h E S t r e e t , 3 r d F l o o r M a i l : 2 9 0 N o r t h D S t r e e t S a n B e r n a r d i n o , C A 9 2 4 0 1 P : ( 9 0 9 ) 3 8 4 - 7 2 7 2 F : ( 9 0 9 ) 3 8 4 -5 1 5 5 w w w . s b c i t y . o r g APPLICATION PROCEDURE GUIDELINES FOR A COMMERCIAL CANNABIS BUSINESS (CCB) Information regarding the commercial cannabis business application process can be found on the City’s website at www.sbcity.org and may include the following: · A Commercial Cannabis Business (CCB) Permit Application Form · Local regulations governing the CCBs: City of San Bernardino Municipal Code (SBMC) Chapter 5.10 · Live Scan form · Additional application information: Ordinance No. MC-1464. · Local Development Code – Title 19 The application process to operate a Commercial Cannabis Business (CCB) in the City of San Bernardino will open on April 23, 2018 and will close at 4:00PM on June 25, 2018. However, if all seventeen (17) licenses allowed under Chapter 5.10 (Commercial Cannabis Activity) are not issued during the first round of review, the City will open a second round of applications at a date to be determined. Applications are available at the Community Development Department located at 201 North E Street, San Bernardino, CA, 92401. For additional questions or information please contact the City Community Development Department at (909) 384 - 7272. CITY’S RESERVATION OF RIGHTS The City reserves the right to reject any and/or all applications, with or without cause or reason. The City may also modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any candidate submitting an application. Late or incomplete applications MAY BE REJECTED. Furthermore, an application RISKS BEING REJECTED for the following reasons: 1. It is considered not fully responsive to this reques t for a permit application. 2. It contains excess or extraneous material not called for in the request for CCB permit application. AMENDMENTS TO THE APPLICATION Applicants may not be allowed to make amendments to their application or to supplement their application, except as otherwise specifically permitted in these procedures or authorized in writing by the City. During Phase 1, applicants will be notified if any of the Owners are ineligible and/or if their application is incomplete and may not move forward in the application process. However, in some cases the City may move forward in the application process to other phases should it anticipate that the Live Scan will take a significant amount of time to be returned to the City. In this case, Applicants wishing to move forward in the process acknowledge by signing the application that they agree to these terms and should they be disqualified as a result of a background or a Live Scan, they will not be eligible for a refund of any fees collected resulting from the modification of this procedure. PLEASE READ CAREFULLY BEFORE COMPLETING THE APPLICATION. FAILURE TO SUBMIT A COMPLETE APPLICATION COULD RESULT IN DISQUALIFICATION. 1.a Packet Pg. 24 Attachment: CED.Cannabis Update.Current Application Procedure Guidelines.Attachment 1 (6776 : Required Annual Commercial Cannabis Commercial Cannabis Business – Guidelines Revised 01/31/19 - 2 – The following procedures outline the application evaluation and selection process, required materials, and other information necessary to apply for a business permit to participate in the selection process to operate a CCB in San Bernardino: Prior to submitting a CCB application: · Zoning Verification Letter (ZVL) application o The Business Owner must obtain an approved Zoning Verification Letter (ZVL) from the Community Development Department, located at 201 North E Street, prior to submitting a CCB application, to ensure that the proposed CCB location meets the City’s locational requirements. The City’s review process for the ZVL takes approximately ten (10) working days. The ZVL requires a written request to the Community Development Department and will not be completed over the counter since it may require additional research and review. o The issuance of a ZVL does not imply written evidence of permission given by City or any of its officials to operate a CCB, nor does it not mean “PERMIT” within the meaning of the Permit Streamlining Act, nor does it constitute an entitlement under the Zoning or Building Code. A regulatory permit for the purpose of regulating a CCB does not constitute a permit that runs with the land on which the CCB is established. All fees below shall become effective on June 4, 2018 Phase 1: Application Submittal and Determination of Eligibility (Fee: $2,647 + $300 Background Check per Business Owner + $132 LiveScan per Business Owner) · An approved Zoning Verification Letter from the Community Development Department stating that the property where the CCB is proposed to operate complies with the locational requirements of SBMC Chapter 5.10. · Indemnification Agreement o Applicant executes an agreement indemnifying the City from liability. · Live Scan/Criminal History Check (The Live Scan/Background fee must be submitted along with the Phase 1 application fees) o Each Business Owner as described in SBMC Section 5.10.050 (an) must undergo a Live Scan and criminal history check demonstrating compliance with the eligibility requirements of SBMC Section 5.10.310 (m) for background checks. The Live Scan process involves submitting fingerprints to the DOJ/FBI to review for criminal offender record info rmation (CORI). CORI reports will be provided to City for the sole purpose of determining eligibility for operating a CCB. Owners/Principals who do not meet criminal history eligibility requirements will be disqualified. o Please note the Live Scan process may be delayed due to the pending of the approval of the DOJ/FBI authorization. Once the City has received authorization they will post the Live Scan submittal due date on the City website. Furthermore, the Live Scan must be conducted by the San Bernardino Police Department (SBPD). Applicants will be required to make an appointment in advance to ensure the proper SBPD staff is available. Due to limited staff resources, you are encouraged to schedule your appointment as early as possible once the due date has been posted on the City website. The City cannot guarantee that it will be able to accommodate applicants who do not submit for LiveScan and Background after the application period opens on April 23, 2018. Failure to pass the LiveScan or Background Check in a timely manner may result in the application being disqualified. · Applications and Background Check Form(s) (Applications must be complete to be considered. Applications will be considered complete only if they include all information required above): 1.a Packet Pg. 25 Attachment: CED.Cannabis Update.Current Application Procedure Guidelines.Attachment 1 (6776 : Required Annual Commercial Cannabis Commercial Cannabis Business – Guidelines Revised 01/31/19 - 3 – o A complete application will consist of the following: 1. Complete, signed copy of the Commercial Cannabis Business Permit Application Form; 2. Proof of Live Scan fee payment for each of the Owners/Principals; 3. Zoning Verification Letter 4. All supplemental information to be evaluated in Phases 1, 2 and 3, as described in APPENDIX A. o Applicants must submit two (2) original copies of the complete application, each in a three-ring binder; one (1) copy of the complete application in PDF format on an electronic device (i.e. flash drive or cd) with the associated Phase 1 fee. Payment must be made by credit card or certified check, cashier’s check, or money order made payable to “City of San Bernardino”. The City will not accept cash and application fees are non-refundable . o Only the following information may be submitted after the initial application is received: · Proof of property ownership or lease agreement. · Should the Business Owner change locations after the application binder is submitted, a new ZVL is required and must be submitted with the application binder prior to Phase 3 of the selection process. Business Owners may only submit a different location if the initial proposed site was eligible. o International background check info: ITIN or US issued Social Security Number and Driver’s License. o Fill out background waiver form. Phase 2: Application Evaluation and Initial Ranking (1,500 Points) (Fee: $2,034) · Applications will be evaluated and ranked by HdL Companies based on the below criteria. · Please see APPENDIX A for a description of the eval uation criteria. o Location (200 Points) o Business Plan (400 Points) o Neighborhood Compatibility Plan (300 Points) o Safety Plan (300 Points) o Security Plan (300 Points) Those applicants which successfully complete Phase 2 with a passing score of at least 80% will move on to Phase 3 of the application process. Phase 3: Interviews and Second Ranking (2,500 Points) (Fee: $1,708) Those applicants which meet the requirements to move on to Phase 3 will be interviewed and evaluated by the City’s Selection Committee. Prior to the scheduling of interviews: · Each of the Applicants may be required to have their proposed site inspected by the assigned City designee, if there is an existing building structure, to ascertain current conditions of the facility. · At the City’s sole discretion, one Owner/Principal from each application may be required to pass a Cannabis Expertise Examination that demonstrates a working knowledge of state and local compliance standards as well as the Attorney General’s Guidelines on Medicinal Cannabis. 1.a Packet Pg. 26 Attachment: CED.Cannabis Update.Current Application Procedure Guidelines.Attachment 1 (6776 : Required Annual Commercial Cannabis Commercial Cannabis Business – Guidelines Revised 01/31/19 - 4 – · Please see APPENDIX A for a description of the eval uation criteria. o Applicant will be interviewed and evaluated based on the below criteria · Qualifications of Principals (300 Points) · Location (proof of ownership or a signed and notarized statement of intent from the Property Owner) (200 Points) · Neighborhood Compatibility Plan (200 Points) · Environmental Impact Mitigation (300 Points) · Local Enterprise (400 Points) · Business Plan (300 Points) · Enhanced Product Safety (200 Points) · Safety Plan (150 Points) · Security Plan (150 Points) · Community Benefits (300 Points) All applicants interviewed as part of Phase 3 shall be ranked based on the above criteria and all applications will move on to Phase 4. Phase 4: Public Meeting and City Council Final Selection (Fee: $1,237) · Selection Committee Recommendation to City Council o A notice of public meeting must be provided pursuant to 5.10.180 (c). Notices shall be sent to all property owners located within six hundred (600) feet of the proposed business locations of each of the applicants in Phase 4. The cost of providing this notification will be paid by the applicants as part of the Phase 4 fee. o Following the objective ranking of the application materials and interview process, which together constitute Phase 3, the City Manager shall prepare a report bringing forward to the Mayor and City Council the Selection Committee’s recommendations for the final ranking of the applications. · Mayor and City Council Final Selection o Mayor and City Council will meet to review every application and the Selection Committee’s recommendations. o The City Council will select up to 17 applicants for permits, depending on the number of permits provided for in each category or as those permit number may be changed by Resolution. Being awarded a CCB permit does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for any and all construction including electrical, plumbing, fire, planning permits or reviews, and any other permits, licenses, or reviews as may be necessary by the relevant departments or governmental entities in charge of said permits. Nor does it guarantee that the plans submitted via the CCB application process meet the standards or requirements of those permitting departments. All permit awardees will still be required to complete all the permitting processes for the proposed construction or occupation of the facility. 1.a Packet Pg. 27 Attachment: CED.Cannabis Update.Current Application Procedure Guidelines.Attachment 1 (6776 : Required Annual Commercial Cannabis Commercial Cannabis Business – Guidelines Revised 01/31/19 - 5 – APPENDIX A DESCRIPTION OF EVALUATION CRITERIA Qualifications of Owners/Principals: Describe any special business or professional qualifications or licenses of the Owners/Principals that would add to the number or quality of services, such as scientific or health care fields. Location: The application should include the following: · Physical address and detailed description of the proposed/final location. · Proof of ownership, or a notarized letter of the owner’s willingness to lease. · Description of all known nearby sensitive use areas. Neighborhood Compatibility Plan: The application should include the following: Describe how the business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. · Additional factors for consideration are religious institutions or libraries located within a six-hundred (600) foot radius of the proposed CCB. Environmental Impact Mitigation: Describe any proposed “green” business practices relating to energy and climate, water conservation, and materials and waste management. Local Enterprise: Describe to what extent the CCB will adhere to heightened pay and benefits standards and practices. Specific practices that are subject to consideration include the following: · Providing compensation to and opportunities for continuing education and training of employees/staff; · The application should state the extent to which the CCB will be a locally managed enterprise whose Owners/Principals reside within the City and/or within San Bernardino County. Business Plan: The Business Plan shall be as detailed as necessary to fully describe the operations, including: · Description of day-to-day operations. SBMC Section 5.10.310. · How the CCB will conform to local and state laws per SBMC Section 5.10.280 and SBMC Section 5.10.420 and the Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medicinal Use. · How cannabis inventory will be tracked and monitored to prevent diversion. · A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion. · A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation costs. The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of funds. · Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets. · A pro forma for at least three years of operation. Enhanced Product Safety: Describe how the CCB will ensure enhanced consumer safety as required by State or local law. 1.a Packet Pg. 28 Attachment: CED.Cannabis Update.Current Application Procedure Guidelines.Attachment 1 (6776 : Required Annual Commercial Cannabis Commercial Cannabis Business – Guidelines Revised 01/31/19 - 6 – Safety Plan: The application should include the following: · A detailed safety plan. This plan should describe the fire prevention, suppression, HVAC and alarm systems the facility will have in place. It should include an assessment of the facility’s fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. Security Plan: The application should include the following: · A detailed security plan. This plan should include a description and detailed schematic of the overall facility security. It should have details on operational security, including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, vi sitor security, 3rd party contractor security, and delivery security. In particular, applications should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (al arms and cameras), and security personnel to be employed. The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public. · A floor plan showing existing building conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale (minimum scale of 1/4”). The scale maybe smaller if it exceeds more than a 1/2 acre parcel but must be printed on not larger than an 11 X 17 sheet of paper. Community Benefits: Describe the benefits that the CCB would provide to the local community, such as employment for local residents of the City, community contributions, or economic incentives to the City. Specific items that are subject to consideration include the following: · How does the type of license requested benefit the community and assure an appropriate mix of license types Citywide? · Does the applicant provide an effective community outreach plan for nearby owners and operators? · Does the applicant describe credible benefits to the overall community, local economy, and any community or non-profit contributions or affiliations? · Does the applicant propose to include one or more of the following business types: o Coffee Shop o Art Studio o Museum 1.a Packet Pg. 29 Attachment: CED.Cannabis Update.Current Application Procedure Guidelines.Attachment 1 (6776 : Required Annual Commercial Cannabis RESOLUTION NO. 2020-148 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING TWO CURRENT OPEN AND OPERATING COMMERCIAL CANNABIS BUSINESSES TO ALTER THEIR EXISTING PERMITS TO TRANSITION TO TWO COMMERCIAL CANNABIS MICROBUSINESS PERMITS WHEREAS, Chapter 5.10 (Commercial Cannabis Activities) of the San Bernardino Municipal Code provides that the various categories of cannabis business types may be set by Resolution; and WHEREAS, the Mayor and City Council previously authorized five (5) cannabis Microbusiness business license types; and WHEREAS, the Mayor and City Council awarded sixteen (16) commercial cannabis business (CCB) permits on February 21, 2019 and to date only two (2) of the sixteen (16) are open and operating; and WHEREAS, the Mayor and City Council desires to increase revenue from cannabis operations, as the City had anticipated more cannabis businesses that had been awarded permits would be operating and generating revenue; and WHEREAS, the two (2) businesses that are open and operating have demonstrated that they can professionally manage and operate their businesses and it may be beneficial to the City to authorize these two (2) operators to alter their existing permits to transition to Microbusinesses; and WHEREAS, by allowing the two (2) businesses that are open and operating to alter their existing permits to provide for Microbusiness, would not allow for the replacement of their currently held license types; and WHEREAS, the City Council desires for staff to take all additional actions necessary, such as amending the cannabis Application Review Criteria and Procedure Guidelines to provide for a permit fee and processing to accommodate a transition to a Microbusiness should the two (2) current cannabis business operators desire to apply. 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 permit two (2) additional cannabis Microbusiness categories and to prepare all necessary amendments to the cannabis Application Review Criteria and Procedure Guidelines to be adopted by Resolution. 1.b Packet Pg. 30 Attachment: CED. Cannabus Update.Resolution Increasing Cannabis Business Categories.Attachement 2 (6776 : Required Annual Commercial Resolution No. 2020-148 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 gener al 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. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 1.b Packet Pg. 31 Attachment: CED. Cannabus Update.Resolution Increasing Cannabis Business Categories.Attachement 2 (6776 : Required Annual Commercial Resolution No. 2020-148 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 1.b Packet Pg. 32 Attachment: CED. Cannabus Update.Resolution Increasing Cannabis Business Categories.Attachement 2 (6776 : Required Annual Commercial Resolution No. ___ RESOLUTION NO.______ RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ESTABLISHED COMMERCIAL CANNABIS PERMIT APPLICATION REVIEW CRITERIA, PROCEDURES, AND FEES PURSUANT TO SAN BERNARDINO MUNICIPAL CODE SECTIONS 5.10.090 5.10.180, AND 5.10.300. WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance MC- 1503, thereby adopting Chapter 5.10 (Commercial Cannabis Activities) to the Municipal Code; and WHEREAS, on April 4, 2018, the Mayor and City Council adopted Resolution No. 2018-102 and Resolution 2018-103 establishing Application Review Criteria, Procedures, and Fees for the implementation of Chapter 5.10 (Commercial Cannabis Activities) of the Municipal Code; WHEREAS, on February 21, 2018, the Mayor and City Council made a final selection and awarded sixteen (16) Commercial Cannabis Business (CCB) Permits, pursuant to section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the Municipal Code; and WHEREAS, on June 4, 2020, the Mayor and City Council further reviewed the Application Review Criteria, Procedures, and Fees and directed City staff to modify the Application Review Criteria, Procedures, and Fees in order to streamline the application evaluation, review, selection and determination procedure s; and WHEREAS, pursuant to Section 5.10.090 (Initial Application Procedure) 5.10.180 (Commercial Cannabis Business Permittee Selection Process ), and 5.10.300 (Fees and Charges) the Mayor and City Council may amend by Resolution the Application Review Criteria, Procedures, and Fees; WHEREAS, the Mayor and City Council desire to establish modified Application Review Criteria and Procedures from a policy perspective, and fees reflective the modified Application Review Criteria and Procedures based upon the best information available such that the City fully recovers the cost of service. 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 authorize the City Manager to amend the necessary forms, application process and fees, solicit applications, conduct initial review of FOR REVIEW ONLY 1.c Packet Pg. 33 Attachment: CED.Cannabis Update.A.Revised Application Review Criteria Resolution.Attachment 3 (6776 : Required Annual Commercial Resolution No. ___ applications for completeness, and to ultimately provide a complete, signed application to the Mayor and City Council for final consideration, as set forth in the attached Exhibit A. SECTION 3. The Commercial Cannabis Business Application Review Criteria to be amended as follows: A. Qualifications of Owners/Principals: Describe any special business or professional qualifications or licenses of the Owners/Principals that would add to the number or quality of services, such as scientific or health care fields. B. Location: The application should include the following:  Physical address and detailed description of the proposed/final location.  Proof of ownership, or a notarized letter of the owner’s willingness to lease.  Description of all known nearby sensitive use areas. C. Neighborhood Compatibility Plan: The application should include the following:  Describe how the business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.  Additional factors for consideration are religious institutions or libraries located within a six-hundred (600) foot radius of the proposed CCB. D. Environmental Impact Mitigation: Describe any proposed “green” business practices relating to energy and climate, water conservation, and materials and waste management. E. Local Enterprise: Describe to what extent the CCB will adhere to heightened pay and benefits standards and practices. Specific practices that are subject to consideration include the following:  Providing compensation to and opportunities for continuing education and training of employees/staff;  The application should state the extent to which the CCB will be a locally managed enterprise whose Owners/Principals reside within the City and/or within San Bernardino County. F. Business Plan: The Business Plan shall be as detailed as necessary to fully describe the operations, including:  Description of day-to-day operations. SBMC Section 5.10.310.  How the CCB will conform to local and state laws per SBMC Section 5.10.280 and SBMC Section 5.10.420 and the Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medicinal Use. FOR REVIEW ONLY 1.c Packet Pg. 34 Attachment: CED.Cannabis Update.A.Revised Application Review Criteria Resolution.Attachment 3 (6776 : Required Annual Commercial Resolution No. ___  How cannabis inventory will be tracked and monitored to prevent diversion.  A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.  A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation costs. The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of funds.  Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets.  A pro forma for at least three years of operation.  Business Purpose Statement G. Enhanced Product Safety: Describe how the CCB will ensure enhanced consumer safety as required by State or local law. H. Safety Plan: The application should include the following:  A detailed safety plan. This plan should describe the fire prevention, suppression, HVAC and alarm systems the facility will have in place. It should include an assessment of the facility’s fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. I. Security Plan: The application should include the following:  A detailed security plan. This plan should include a description and detailed schematic of the overall facility security. It should have details on operational security, including but not limited to general security policies for the facility, employee specific policies, tr aining, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, applications should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed. The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public. A floor plan showing existing building conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale FOR REVIEW ONLY 1.c Packet Pg. 35 Attachment: CED.Cannabis Update.A.Revised Application Review Criteria Resolution.Attachment 3 (6776 : Required Annual Commercial Resolution No. ___ (minimum scale of 1/4”). The scale maybe smaller if it exceeds more than a 1/2 acre parcel but must be printed on not larger than an 11 X 17 sheet of paper. J. Community Benefits: Describe the benefits that the CCB would provide to the local community, such as employment for local residents of the City, community contributions, or economic incentives to the City. Specific items that are subject to consideration include the following:  How does the type of license requested benefit the community and assure an appropriate mix of license types Citywide?  Does the applicant provide an effective community outreach plan for nearby owners and operators?  Does the applicant describe credible benefits to the overall community, local economy, and any community or non-profit contributions or affiliations?  Does the applicant propose to include one or more of the following business types: i. Coffee Shop ii. Art Studio iii. Museum SECTION 3. The amended fees providing services related to the review, evaluation and final disposition of the Commercial Cannabis Applications, as set forth in the attached Exhibit B. SECTION 4. The establishment of Application Review Criteria, Procedures, and Fees related to the provision of City services under the Commercial Cannabis Ordinance MC- 1503 is exempt under the California Environmental Quality Act (CEQA) and the CEQA Guidelines Section 15061 (b)(3) , 15378, and 15273(a)(1) (Rates, Tolls, Fares and Charges. CEQA onl y applies to an activity that there is no possibility for causing a significant effect on the environment. It can be seen that there is no possibility that this activity will have a significant effect on the environment and it is therefore exempt from 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. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: FOR REVIEW ONLY 1.c Packet Pg. 36 Attachment: CED.Cannabis Update.A.Revised Application Review Criteria Resolution.Attachment 3 (6776 : Required Annual Commercial Resolution No. ___ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney FOR REVIEW ONLY 1.c Packet Pg. 37 Attachment: CED.Cannabis Update.A.Revised Application Review Criteria Resolution.Attachment 3 (6776 : Required Annual Commercial Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk FOR REVIEW ONLY 1.c Packet Pg. 38 Attachment: CED.Cannabis Update.A.Revised Application Review Criteria Resolution.Attachment 3 (6776 : Required Annual Commercial Exhibit A Draft Application Procedure Guidelines Draft Application with Appendix A 1.d Packet Pg. 39 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business Permit Application 1 06/2020 Community & Economic Development Department • Planning Division Office: 201 North E Street, 3rd Floor Mail: 290 North D Street San Bernardino, CA 92401 P: (909) 384-5357 F: (909) 384-5155 www.sbcity.org COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION Applications may be filed Monday through Thursday between the hours of 7:30 a.m. and 5:00 p.m. and Friday between the hours of 7:30 a.m. and 4:00 p.m. Project Address / Location: Assessor’s Parcel Number [APN]: Zoning District: General Plan Designation: APPLICANT NAME: Address: Phone: City: State: Zip Code: Email: PROPERTY OWNER NAME: Address: Phone: City: State: Zip Code: Email: (Note: If the applicant or property owner is a trust, partnership, corporation, or LLC, on a separate sheet, provide a list of all persons that make up the trust, partnership, corporation, or LLC) APPLICATION TYPE:  New Business  Amended Application  Business Renewal  Change of Location  Change of Ownership COMMERCIAL CANNABIS BUSINESS PERMIT TYPE (Please select from one of the following categories):  Cultivation  Distribution  Manufacturer  Retailer  Retailer – Non-Storefront  Testing  Microbusiness (Please identify all business activities): DESCRIPTION OF PROJECT: FOR REVIEW ONLY 1.d Packet Pg. 40 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business Permit Application 2 06/2020 PROJECT INFORMATION FORM Property Information: Square footage of subject property: Square footage of building/tenant space: Hours of operation (proposed): Total number of employees (proposed): Business Information: Business Name: Business Address: Website Address (if applicable): Business E-mail Address (if applicable): Community Relations Contact: Name: Phone: Title: Email: Environmental Information (Attach additional sheets as necessary): Business’s Environmental Impact Mitigation Plan (Describe and proposed “green” business practices relating to energy and climate, water conservation, and materials and waste management): Will the project use, store, or dispose of potentially hazardous chemicals, materials, toxic substances, flammables or explosives: OFFICE USE ONLY Date Filed: Previous Case: Case Number: Receipt Number: Fees Paid: Submitted To: FOR REVIEW ONLY 1.d Packet Pg. 41 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business Permit Application 3 06/2020 PROJECT INFORMATION FORM (Continued) Other Required Information (Attach additional sheets as necessary): List any person(s) who will be engaging in the proposed commercial cannabis business that have been convicted of a felony or have engaged in misconduct that is substantially related to the qualifications, functions or duties of a commercial cannabis business activity. Please keep in mind that a conviction within this section means a plea or verdict of guilty, or a conviction following a plea of no contest: List whether, the applicant(s) has other licenses and/or permits issued to and/or revoked from the applicant, in the three years prior to the year of the permit application, such other licenses and or permits relating to similar business activities as in the permit application. If yes, please list the type, current status, issuing/denying for each license/permit: Provide the name and address of the closest school(s) to proposed business location: Provide the name and address of the closest existing alcohol related establishment(s) to proposed business location: Description of neighborhood around the proposed location (surrounding uses, nearby sensitive uses (such as schools, youth centers churches, parks, daycare centers, or libraries), transit access to site, etc.): FOR REVIEW ONLY 1.d Packet Pg. 42 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business Permit Application 4 06/2020 APPLICATION SUBMITTAL REQUIREMENTS The following items shall be submitted with all applications (1 physical copy and 1 electronic copy):  Copy of the completed Verification of Proposed Cannabis Site (VPC) Form issued by the City  Completed Application Form  Filing Fee  Notice of Intent to Lease / Purchase Property  Site Plan (see below for requirements)  Floor Plan (see below for requirements)  Elevations (photographs may be provided)  Photographs of existing site  Area Map (see below for requirements)  Live Scan Payment  Business Owner(s) Background Information Forms  Supplemental Evaluation Criteria (see below for requirements and Appendix A)  Mailing list identifying all owners of property located within 600 feet of the proposed business location  Mailing labels identifying all owners of property located within 600 feet of the proposed business location  Community Relations submittal requirement: Mailing Labels identifying all businesses and owners of property located within 100 feet of the proposed business location (Note: Incomplete applications will not be accepted) Supplemental Evaluation Criteria (See Appendix A): (All information shall be provided as required in Application Procedure Guidelines for Commercial Cannabis Businesses)  Business Plan  Location  Neighborhood Compatibility Plan  Safety Plan  Security Plan  Cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities (indoor, mixed-light) and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting (indoor, mixed-light)  Description of a legal water source, irrigation plan, and projected water use  Identification of the source of electrical power and plan for compliance with applicable Building Codes and other related codes  Plan for addressing odor and other public nuisances that may derive from the cultivation site FOR REVIEW ONLY 1.d Packet Pg. 43 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business Permit Application 5 06/2020 APPLICATION SUBMITTAL REQUIREMENTS (Continued) Site Plan [1/4” = 1’ minimum] (shall contain a minimum of the following information):  North arrow, drawing scale, date of preparation and name of plan preparer  Dimensions of subject property – including square footage  Dimensions and names of all adjacent streets and public rights-of way  Location and dimensions of all buildings and structures – including square-footage  Location and dimensions of landscaped areas  Location of all parking areas and driveways and means of ingress and egress  Location and dimensions of all handicap parking spaces, ramps, curb ramps and signs  Location and dimensions of handicap-accessible Path of Travel to building entrance, sidewalks and interior walks  Uses for all buildings and structures indicated on the site plan Floor Plan [1/4” = 1’ minimum] (shall contain a minimum of the following information):  North arrow, drawing scale, date of preparation and name of plan preparer  Location and dimensions for means of ingress and egress  Square footage of all interior spaces  Proposed uses of all interior spaces Area Map (shall contain a minimum of the following information):  Location of subject property  Location of all highways, streets and alleys within a distance of 600 feet from the exterior boundaries of the subject property  Location of all lots and parcels of land within a distance of 600 feet from the exterior boundaries of the subject property  The Area Map shall identify the existing uses of all lots and parcels of land within a distance of 600 feet from the exterior boundaries of the subject property on the map All sets of plans must be collated and no larger than 11” x 17” FOR REVIEW ONLY 1.d Packet Pg. 44 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business Permit Application 6 06/2020 AUTHORIZATION FORM APPLICANT CERTIFICATION I hereby certify, under penalty of perjury, on behalf of myself and all persons identified in this application that the statements and information furnished in this application and in the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the permit, or revocation of a permit issued. In addition, I understand that the filing of this application grants the City of San Bernardino permission to reproduce submitted materials, including but not limited to, plans, exhibits, and photographs, for distribution to staff, Commission, Board, and City Council Members, and other Agencies in order to process the application. Nothing in this consent, however, shall entitle any person to make use of the intellectual property in plans, exhibits and photographs for any purpose unrelated to the City's consideration of this application. Furthermore, by submitting this application I understand that agree that any business resulting from an approval shall be maintained and operated in accordance with requirements of the City of San Bernardino Municipal Code and state law. Name Signature Title Date FOR REVIEW ONLY 1.d Packet Pg. 45 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business Permit Application 7 06/2020 AUTHORIZATION FORM (Continued) PROPERTY OWNER CONSENT If applicant is other than the property owner(s), the owner(s) must provide a signed and notarized statement consenting to filing pursuant to Section 5.10.240 of the City of San Bernardino Municipal Code. Additional sheets may be attached if necessary. Original signatures only. I/We, as the owner(s) of the subject property, consent to the filing of this application and use of the property for the purposes described herein. We further consent and hereby authorize City representative(s) to enter upon my property for the purpose of examining and inspecting the property in preparation of any reports and/or required environmental review for the processing of the application(s) being filed. Name Signature Title Date A notary public or other officer completing this certificate verifies only the identity of the induvial who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. Subscribed and Sworn to Before Me This ______ Day of ____________, 20____, proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me. Notary Public 1.d Packet Pg. 46 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business – Guidelines Revised 01/31/19 - 1 – APPENDIX A DESCRIPTION OF EVALUATION CRITERIA Location: The application should include the following:  Physical address and detailed description of the proposed/final location.  Proof of ownership, or a notarized letter of the owner’s willingness to lease.  Description of all known nearby sensitive use areas. Neighborhood Compatibility Plan: The application should include the following: Describe how the business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.  Additional factors for consideration are religious institutions or libraries located within a six-hundred (600) foot radius of the proposed CCB. Business Plan: The Business Plan shall be as detailed as necessary to fully describe the operations, including:  Description of day-to-day operations. SBMC Section 5.10.310.  How the CCB will conform to local and state laws per SBMC Section 5.10.280 and SBMC Section 5.10.420 and the Attorney General’s Guidelines for the Security and Non-Diversion of Marijuana Grown for Medicinal Use.  How cannabis inventory will be tracked and monitored to prevent diversion.  A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.  A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation costs. The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of funds.  Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets.  A pro forma for at least three years of operation.  Business Purpose Statement Safety Plan: The application should include the following:  A detailed safety plan. This plan should describe the fire prevention, suppression, HVAC and alarm systems the facility will have in place. It should include an assessment of the facility’s fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. FOR REVIEW ONLY 1.d Packet Pg. 47 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business – Guidelines Revised 01/31/19 - 2 – Security Plan: The application should include the following:  A detailed security plan. This plan should include a description and detailed schematic of the overall facility security. It should have details on operational security, including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, applications should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed. The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public.  A floor plan showing existing building conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale (minimum scale of 1/4”). The scale maybe smaller if it exceeds more than a 1/2 acre parcel but must be printed on not larger than an 11 X 17 sheet of paper. FOR REVIEW ONLY 1.d Packet Pg. 48 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business – Guidelines Revised 06/2020 - 1 – Community Development Department - Planning Division Office: 201 North E Street, 3rd Floor Mail: 290 North D Street San Bernardino, CA 92401 P: (909) 384-7272 F: (909) 384-5155 www.sbcity.org APPLICATION PROCEDURE COMMERCIAL CANNABIS BUSINESS (CCB) CITY’S RESERVATION OF RIGHTS The City reserves the right to reject any and/or all applications, with or without cause or reason. The City may also modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any candidate submitting an application. Late or incomplete applications MAY BE REJECTED. Furthermore, an application RISKS BEING REJECTED for the following reasons: 1. It is considered not fully responsive to this request for a permit application. 2. It contains excess or extraneous material not called for in the request for CCB permit application. 3. Being awarded a CCB permit does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for any and all construction including electrical, plumbing, fire, planning permits or reviews, and any other permits, licenses, or reviews as may be necessary by the relevant departments or governmental entities in charge of said permits. Nor does it guarantee that the plans submitted via the CCB application process meet the standards or requirements of those permitting departments. All permit awardees will still be required to complete all the permitting processes for the proposed construction or occupation of the facility. Prior to submitting a CCB application:  Verification of Proposed Commercial Cannabis Site (VPC), or MCC Prefer: Cannabis Zoning Verification Letter (ZVL) o The Business Owner must obtain an approved Verification of Proposed Commercial Cannabis Site (VPC) from the Community & Economic Development Department, located at 201 North E Street, prior to submitting a CCB application, to ensure that the proposed CCB location meets the City’s locational requirements pursuant to Section 5.10.025 of the Municipal Code. The City’s review process for the VPC takes approximately ten (10) working days and will not be completed over the counter since it may require additional research and review. Application Submittal and Evaluation (Fee: $5,915 + $600 Background Check per Business Owner + $132 LiveScan per Business Owner) ($2,647 + $2,034 + $1,237 = Application Fee including evaluation and Mayor and City Council (MCC) selection and determination.)  An Application shall be required for a new business, business renewal, and new location (i.e. relocation to a new property/site/address) o The Application has an outline of all the submittal requirements, review the application to include Appendix A and submit a complete, signed application. o Application will be evaluate based on completeness of Application and the identified items in Appendix A. o Those applicants that submit a complete, signed application and meet all the submittal requirements as identified in the Application and Appendix A, will move to the Mayor and City Council for Consideration.  MCC Selection and Consideration o Mayor and City Council will consider every application and determine which applicants will be awarded CCB permit. FOR REVIEW ONLY 1.d Packet Pg. 49 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Commercial Cannabis Business – Guidelines Revised 06/2020 - 2 – o Prior to MCC meeting or immediately after MCC determination (if awarded), the applicant shall submit the following (What does MCC Prefer?): Proof of property ownership or lease agreement. o Pursuant to Section 5.10.080 of the Municipal Code and as established by Resolution, MCC may select applicants for permits, depending on the number of permits provided for in each category. o If awarded a CCB Permit by MCC, the applicant shall complete and submit the Indemnification Agreement as provided. Deadline to Complete Commercial Cannabis Businesses awarded February 21, 2019 Any Commercial Cannabis Business that has been granted approval pursuant to (Section 5.10.180), but is not in operation prior to the effective date of adopted Resolution 20-XXX, shall be granted a period not to exceed three months from the effective date of the Resolution to secure a final business location and submit plans to the City for improvements. These Improvements may include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as may be necessary by the relevant departments or government entities in charge of said permits. New Commercial Cannabis Business Applicants For all business granted approval after the effective date of Resolution 20-XXX, a final business location shall be secured and submittal of improvement plans shall occur within a period not to exceed twelve months from the date of approval. These Improvements may include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as may be necessary by the relevant departments or government entities in charge of said permits. Amendments to Applications (Fees: 4,681) ($2,647 + $2,034 = Amendment Fee) Amendments to applications must be submitted using the application submittal process and will be reviewed administratively by city staff. Amendments to applications may include but are not limited to a Modification, Change or Addition to a License Type or Expansion of Existing Business Footprint & Operations. FOR REVIEW ONLY 1.d Packet Pg. 50 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Exhibit B Application Fees 1.d Packet Pg. 51 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) EXHIBIT B COMMERCIAL CANNABIS APPLICATION REVIEW AND APPEAL FEES PURSUANT TO SBMC CHAPTER 5.10 Service Provided: Required Fee: 1. Zoning Verification Letter $183.00 2. Live Scan $132.00/Owner (SBMC 5.10.050) 3. Background Review $600.00/Owner (SBMC 5.10.050) 4. Commercial Cannabis Application a. Application Submittal Fee $2,647.00 b. Application Review Fee $2,034.00 c. Mayor and City Council Consideration $1,237.00 5. Appeal Fee $3,217.00 All fees are non-refundable and are due and payable at the time the application or similar request is submitted to the City FOR REVIEW ONLY 1.d Packet Pg. 52 Attachment: CED.Cannabis Update.Attachment 4 (6776 : Required Annual Commercial Cannabis Business Permit Update) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Resolution Awarding a Construction Agreement for Palm Median Landscape Improvements Recommendation Adopt Resolution No. 2020-116 of the Mayor and City Council of the City of San Bernardino, California: 1. Authorizing expenditures in a total amount of $735,000 for the construction of the Palm Avenue Median Landscape Project (“Project”) to include a Construction Agreement in the amount of $668,000 and contingencies in the amount of $67,000; and 2. Approving the award of a Construction Agreement with KASA Construction, Inc. of Chino, California, in the amount of $668,000 to perform the median improvements; and 3. Amending the FY 2019/20 CIP SS20-011 - Citywide Medians Rehabilitation Project to include Palm Avenue Median as project location; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Background The San Bernardino Municipal Water Department (SBMWD), East Valley Water District (EVWD), and the San Bernardino Valley Municipal Water District (SBVMWD) entered into a Settlement Agreement to resolve all disputes related to East Valley Water District Sterling Natural Resources Center and the SBMWD Clean Water Factory. Through settlement negotiations, the parties recognized that both recycled water project s benefit the region and are critical for water supply sustainability in the Bunker Hill Groundwater Basin. Pursuant to the Settlement Agreement, SBMWD, SBVMWD and EVWD each agreed to contribute $500,000, for a total of $1,500,000 , for the installation of water efficient landscape improvements in areas of the City, at locations determined by the City of San Bernardino and SBMWD. A conservation plan was developed to identify areas within 2 Packet Pg. 53 6728 Page 2 the City were in need of water efficient landscape and that would provide the most benefit from conservation and aesthetic perspectives. 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 Program (CIP) project titled Citywide Median Rehabilitation to install landscape median improvements in the City. Project locations identified for use of the funding included the Feldheym Library, Broadmoor Boulevard medians, Muscupiabe Drive medians and Mountain View Avenue medians. As of the date of this report, projects have been completed at both the Feldheym Library and Broadmoor medians. Discussion Following the completion of the Feldheym Library and Broadmoor medians, settlement funding in the amount of approximately $996,362 remained available for improvements at the remaining project locations. It was not anticipated that both Muscupiabe and Mountain View Avenue medians would be able to be improved within the remaining funding capacity. In project planning discussions between Public Works and SVMWD staff, the median on Palm Drive between 40th and Parkdale was suggested to be added as a possible location for installation of drought tolerant landscape. The Palm Drive location offered an opportunity to install hardscape and drought tolerant planting improvements in the median while retaining the well-established trees in the project area. On November 19, 2019, the City conducted a town hall meeting to collect community input on the landscape design concepts for both Muscupiabe and Palm Drive medians. In reference to the Muscupiabe median plans, residents in attendance expressed concerns about the lack of large grass areas in the plans, as well as , made requests for additional items to be added to the project including installation of a monument sign . In contrast, when the Palm Median project design was presented, it was well received by the residents, and no concerns were expressed or additional changes requested to the Palm Drive median proposed plans. Following the town hall meeting, staff requested engineering estimates for the Muscupiabe and Palm Drive median projects. The estimates received indicated that the Muscupiabe median project, revised to include community requests, would likely exceed the remaining project funding. The estimates also indicated that construction of the Palm Drive median would likely fall within the available funding amounts. Based on the engineering estimate information, staff proceeded to administer a competitive bid process. The project was advertised as Palm Drive Median as a base bid with Muscupiabe Drive median as an alternate bid item. Project 13389, to provide landscape medians along Palm Drive and Muscupiabe Drive , was advertised for public bidding on April 8, 2020, and April 15, 2020 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 2 Packet Pg. 54 6728 Page 3 Construction Data, Bid America Online, Construction Bid Source, Bid Ocean, the City’s websites, and the San Bernardino Area Chamber of Commerce. Sealed bids were received and opened on May 7, 2020. The City received six (6) bids as follows: Bidder City Base Bid - Palm Drive Alternate Bid- Muscupiabe Total Bid KASA Construction, Inc. Chino $ 668,000 $834,000 $1,502,000 Marina Landscape, Inc. Orange $ 771,200 $741,200 $1,512,400 Conserve Landcare Thousand Palms $ 853,700 $764,700 $1,618,400 Brightview Landscape Development, Inc. San Diego $ 896,828 $922,306 $1,819,134 Environmental Construction, Inc. Woodland Hills $ 924,099 $838,365 $1,762,464 ARAMEXX Group, Inc. Riverside $1,014,200 $659,200 $1,673,400 Determination of the lowest responsible bidder was based on the total base bid (Palm Drive median) only. The alternate bid item was not considered in determining the lowest responsible bidder. Staff has reviewed all bid packages and confirmed that KASA Construction, Inc. of Chino, California, is the lowest responsible and responsive bidder, with a base bid amount of $668,000. The alternate bid item is not being recommended at this time due to lack of project funding. In addition to construction costs, staff anticipates the need for a construction contingency to provide for any unforeseen work that is related to the project. At this time, the estimated full project cost is at $735,000, which includes the lowest responsive construction bid and project contingencies. The breakdown of the total project costs are as follows: Cost Items Amount Bid $ 668,000 Construction Contingency $ 67,000 Estimated Total Project Cost $ 735,000 If awarded by the Mayor and City Council, construction work to provide landscape medians is anticipated to begin in July 2020 and is anticipated to be completed by October 2020. 2020-2025 Key Strategic Targets and Goals This project is consistent with Key Target No. 1e: Create an asset management plan 2 Packet Pg. 55 6728 Page 4 and as improving the medians to include hardscape and water tolerant plans will improve this City median and reduce mainten ance and utility costs required to manage the asset. Fiscal Impact There is no General Fund impact. Funding for this project is held and administered by the SBMWD. $996,362 is available for implementation of this project. Progress Payments will be reviewed by Public Works Engineering Division and forwarded to SBWMD for payment processing. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-116: 1. Authorizing expenditures in a total amount of $735,000 for the construction of the Palm Avenue Median Landscape Project (“Project”) to include a Construction Agreement in the amount of $668,000 and contingencies in the amount of $67,000; and 2. Approving the award of a Construction Agreement with KASA Construction, Inc. of Chino, California, in the amount of $668,000 to perform the median improvements; and 3. Amending the FY 2019/20 CIP SS20-011 - Citywide Medians Rehabilitation Project to include Palm Avenue Median as project location; and 4. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution No. 2020-116; Exhibit “A” - Agreement Attachment 2 Bid Tabulation for Citywide Median Rehabilitation Attachment 3 Low Bid Form for Citywide Median Rehabilitation Attachment 4 Location Map Wards: 4, 7 Synopsis of Previous Council Actions: June 19, 2019 Resolution No. 2019-168 was adopted approving Capital Improvement Program FY 2019/2020 2 Packet Pg. 56 RESOLUTION NO. 2020-116 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING EXPENDITURES IN A TOTAL AMOUNT OF $735,000 FOR THE CONSTRUCTION OF THE PALM AVENUE MEDIAN LANDSCAPE PROJECT (“PROJECT”) TO INCLUDE A CONSTRUCTION AGREEMENT IN THE AMOUNT OF $668,000 AND CONTINGENCIES IN THE AMOUNT OF $67,000; APPROVING THE AWARD OF A CONSTRUCTION AGREEMENT WITH KASA CONSTRUCTION, INC. OF CHINO, CALIFORNIA IN THE AMOUNT OF $668,000 TO PERFORM THE MEDIAN IMPROVEMENTS; AMENDING THE 2019/2020 CIP CITYWIDE MEDIANS REHABILITATION PROJECT TO INCLUDE PALM AVENUE MEDIAN AS A PROJECT LOCATION AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT WHEREAS, the City of San Bernardino owns, operates, and is responsible for the maintenance of landscaped medians, including along Palm Drive, throughout the City; and WHEREAS, the provision of irrigation to turf at the median along Palm Drive between Parkdale Drive and 40th Street was previously eliminated to meet conservation requirements of the State of California Water Conservation Order; and WHEREAS, the Mayor and City Council approved Resolution No. 2019-168 adopting the City’s Annual Operating Budget for Fiscal Year 2019/20, which included Capital Improvement Plan (CIP) SS 20-001 project for the Citywide Median Rehabilitation (“Project”); and WHEREAS, funding for drought tolerant landscaping is available as the result of a Settlement Agreement between the San Bernardino Municipal Water District (SBMWD), San Bernardino Valley Water District (SBVWD) and East Valley Water District (EVWD) for drought tolerant landscape improvements; and WHEREAS, the Palm Drive median was not previously identified as a location for landscape rehabilitation in the Project description, however it is an eligible alternative to the locations previously identified for use of settlement funds; and WHEREAS, the City has administered a competitive bid process to secure a construction contract to perform landscape improvements at the Palm Drive Median location; and 2.a Packet Pg. 57 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.01.Attachment 1-Resolution [Revision 3] (6728 : Resolution Awarding a Resolution No. 2020-116 WHEREAS, the City received six (6) bids on May 07, 2020, and KASA Construction, Inc., of Chino, California, has been determined to be the lowest responsive, responsible base bid bidder; and WHEREAS, the City now wishes to enter into a construction agreement with KASA Construction, Inc., to install drought tolerant landscape at the Palm Drive median location. 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 authorized and directed to execute a Construction Agreement following the City’s standard terms approved by the City Attorney with KASA Construction, Inc., attached herein and incorporated as Exhibit A, in the amount of $668,000 with a contingency in the amount of $67,000 for the Palm Drive Median Landscape Improvement. SECTION 3. The Director of Finance is hereby authorized to amend the FY2019/20 CIP to add Palm Avenue Median Improvements as an identified project location under the Citywide Medians Rehabilitation Project. SECTION 4. The City Manager or designee is hereby authorized to execute all documents in support of Palm Drive Median Landscape Improvement Project 13389 on behalf of the City. 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 Acting City Clerk this ___ day of __________, 2020. John Valdivia, Mayor City of San Bernardino 2.a Packet Pg. 58 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.01.Attachment 1-Resolution [Revision 3] (6728 : Resolution Awarding a Resolution No. 2020-116 Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 2.a Packet Pg. 59 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.01.Attachment 1-Resolution [Revision 3] (6728 : Resolution Awarding a Resolution No. 2020-116 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk 2.a Packet Pg. 60 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.01.Attachment 1-Resolution [Revision 3] (6728 : Resolution Awarding a 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 KASA Construction, Inc. (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 PALM AND MUSCUPIABE DRIVE MEDIANS LANDSCAPE IMPROVEMENT Project No. 13389 in strict conformity with Plans and Special Provisions No. 13389 , 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. 1. 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. 2. 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 A-1 2.b Packet Pg. 61 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.02- Attachment 2-.Agreement (6728 : Resolution Awarding a AGREEMENT: PALM AND MUSCUPIABE DRIVE MEDIANS LANDSCAPE IMPROVEMENT- Project No. 13389 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. 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: KASA Construction, Inc BY: _______________ Teri Ledoux, City Manager BY: _______________________________ TITLE: ATTEST: MAILING ADDRESS: 15148 Sierra Bonita Lane _______________________________ Genoveva Rocha, CMC, Acting City Clerk Chino, California, 91710____________ PHONE NO.: (909) 457-8260_________ 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 2.b Packet Pg. 62 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.02- Attachment 2-.Agreement (6728 : Resolution Awarding a 2.cPacket Pg. 63Attachment: PW.KASA Contract Award Citywide Median Rehabil;itation.03.Attachment 3-Bid Tabulation (6728 : Resolution Awarding a 2.d Packet Pg. 64 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 65 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 66 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 67 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 68 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 69 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 70 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 71 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 72 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 73 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 74 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 75 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 76 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 77 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 78 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 79 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 80 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 81 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 82 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 83 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 84 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 85 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 86 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 87 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 88 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 89 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 90 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 91 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 92 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 93 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 94 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 95 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 96 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 97 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.d Packet Pg. 98 Attachment: PW.KASA Contract Award Citywide Median Rehabilitation.04.Attachment 4-Low Bid Form (6728 : Resolution Awarding a 2.e Packet Pg. 99 Attachment: PW.KASA Contract Award Citywide Median Rehabil;itation.05.Attachment 4-Location Map (6728 : Resolution Awarding a Page 1 Staff Report City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager Subject: Setting the 2020 Regulatory Fee Rate for the Sale of Fireworks Recommendation Adopt Resolution No. 2020-130 of the Mayor and City Council of the City of San Bernardino, California, setting the 2020 Regulatory Fee for the sale of "safe and sane" fireworks in the City of San Bernardino. Background The City of San Bernardino is one (1) of nine (9) municipalities in the County of San Bernardino that allow for the sale, possession, and discharge of fireworks designated as “safe and sane.” Under the current provisions of the Municipal Code “safe and sane” fireworks are permitted in all areas south of the 210 Freeway in the City of San Bernardino (Exhibit A) during the prescribed time frames of July 1 st through July 4th. On September 11, 2019, the Legislative Review Committee (LRC) convened to consider the regulation, sale, possession, and discharge of fireworks in the City. Following public comment and discussion, a majority of the members of the LRC voted to direct staff to place an item on the agenda for a future meeting of the Mayor and City Council to consider amending the Municipal Code to: Adopt an enhanced penalty structure for fireworks; and Establish a fund consisting of fines collected from fireworks violations to be used to pay a reward in the amount of $250 to any individual providing information leading to the identification and successful criminal or civil prosecution of any person violating the City of San Bernardino Municipal Code related to the unlawful possession, sale, or discharge of fireworks. The recommendations of the LRC were presented to the Mayor and City Council on November 4, 2019. Following review and discussion , the Mayor and City Council gave direction to move forward the LRC’s recommendations with no changes to the sale and use of “safe and sane” fireworks. Ordinance No. MC -1535, amending Chapters 8.60 and 8.61 and Chapter 9.93 of the San Bernardino Municipal Code, pertaining to the use of fireworks within city limits was presented for first reading on April 15, 2020, and adopted on May 6, 2020. The ordinance became effective 30 days thereafter. The City currently allows up to 35 licenses to nonprofit agencies for the sale of “safe 3 Packet Pg. 100 6771 Page 2 and sane” fireworks each year. In 2019, thirty (30) temporary use permits were issued for fireworks stands. A regulatory fee for the sale of “safe and san e” fireworks is established annually by the Mayor and City Council based on the gross sales of all fireworks sold in the City. The purpose of the regulatory fee is to raise funds to cover the reasonable regulatory costs of issuing the permits and enforcing the provisions of the Municipal Code, including extra personnel time for inspection and enforcement duties. Discussion The proposed amount of the regulatory fee is based on the licensee’s fireworks sales financial statements from the prior year. Each licensee is required to submit fireworks sales financial statements to the City Clerk’s Office no later than August 31 of every year. One half of the regulatory fee is to be paid by the licensee and the remaining half is to be paid by the fireworks supplier. In accordance with Section 8.60.095(B) of the Municipal Code, the regulatory fee rate shall not exceed more than ten (10) percent of the total gross sales of fireworks sold in the City during the prescribed timeframes (July 1st through July 4th). Each year, prior to imposing a fee, staff prepares a study (Exhibit B) of the anticipated costs associated with the reasonable regulatory costs of issuing the permits and enforcing the provisions of the Municipal Code, including extra personnel time for inspection and enforcement duties. Exhibit B provides an assessment, itemized by department, of the costs associated with fireworks sales; including the staff time incurred by the Police Department, Finance Department for Business Registration and other related costs. This regulatory fee rate must be adopted by the Mayor and City Council no later than 7:00 p.m. on July 1, as provided for in Section 8.60.095(B) of the Municipal Code. 2020-2025 Key Strategic Targets and Goals Revenue received from the 2020 Regulatory Fee Rate of 10% for the sale of fireworks aligns with Key Target No. 1: Financial Stability, by implementing, maintaining, and updating a fiscal accountability plan. Fiscal Impact The total estimated cost associated with the regulation and enforceme nt of the sale of "safe and sane" fireworks in the City this year is $68 ,916.83. The regulatory fee based upon 10% of the gross sales of all fireworks sold in the City in 2019 in accordance with Section 8.60.095(B) of the Municipal Code is $68,700.83. Conclusion It is recommended that Resolution No. 2020-130 of the Mayor and City Council of the City of San Bernardino, California, setting the 2020 Regulatory Fee for the sale of "safe and sane" fireworks in the City of San Bernardino be adopted. Attachments Attachment 1 Resolution; Exhibit “A” - Location Map; Exhibit “B” - Estimate of Expenditures for 2020 3 Packet Pg. 101 6771 Page 3 Ward: All Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019 -86 setting the regulatory fee at 10%. 3 Packet Pg. 102 RESOLUTION NO. 2020-130 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, SETTING THE 2020 REGULATORY FEE FOR THE SALE OF SAFE AND SANE FIREWORKS IN THE CITY OF SAN BERNARDINO WHEREAS, on June 15, 2009, the Mayor and Common Council adopted an urgency ordinance amending Section 8.60.095 of the San Bernardino Municipal Code, requiring half of the fireworks regulatory fee to be paid by the licensee (the non-profit) and half to be paid by the fireworks company that supplies the product; and WHEREAS, On July 1, 2013, the Mayor and City Council adopted an urgency ordinance amending Section 8.60.095 of the San Bernardino Municipal Code, requiring the regulatory fee be set no later than 7:00 p.m. on July 1 of each year; and WHEREAS, prior to imposing the fee, the City is required to prepare a study of the anticipated costs associated with fireworks education, awareness, and enforcement. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That the Mayor and City Council of the City of San Bernardino, California, have determined that the total anticipated costs for the City to cover the reasonable regulatory costs of issuing the permits and enforcing the provisions of the Municipal Code, including extra personnel time for inspection and enforcement duties, for the 2020 season has been calculated at $68,916.27. SECTION 2. Section 8.60.095 (B) of the City’s Municipal Code provides that the regulatory fee rate not exceed more than 10% of the gross sales of fireworks sold in the City during the prior year. SECTION 3. In the 2019 fireworks season, 10% of the total gross sales of fireworks as reported by the licensees amounted to $68,700.83. SECTION 4. The Mayor and City Council hereby set a regulatory fee rate of 10%. 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. 3.a Packet Pg. 103 Attachment: CM.Fireworks Setting 2020 Regulatory Fee.Resolution [Revision 1] (6771 : Setting the 2020 Regulatory Fee Rate for the Sale of Resolution No. 2020-130 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 17th day of June 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 3.a Packet Pg. 104 Attachment: CM.Fireworks Setting 2020 Regulatory Fee.Resolution [Revision 1] (6771 : Setting the 2020 Regulatory Fee Rate for the Sale of Resolution No. 2020-130 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-130, adopted at a regular meeting held on the 17th day of June 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 17th day of June 2020. Genoveva Rocha, CMC, Acting City Clerk 3.a Packet Pg. 105 Attachment: CM.Fireworks Setting 2020 Regulatory Fee.Resolution [Revision 1] (6771 : Setting the 2020 Regulatory Fee Rate for the Sale of Fireworks 2020 Expenditure Estimates Number of personnel Labor Cost Total Police Department June 30 personnel 6 2,954.88$ July 1 personnel 6 2,954.88 July 2 personnel 6 2,954.88 July 3 personnel 34 15,696.36 July 4 personnel 34 15,696.36 July 5 personnel 9 4,446.00 Total 44,703.36$ $44,703.36 Finance Department Business Registration Representative 1 3,403.21$ Business Registration Manager 1 2,309.70 Total 5,712.91$ $5,712.91 $18,500.00 $68,916.27Total Expenditure Estimates Public Education & Awareness Related to Regulatory Enforcement Public education and awareness through advertising, social media and community contact in relation to the regulation. Funding includes postage, printing, materials and supplies for public education on permitting and enforcement of the regulatory scheme. 3.b Packet Pg. 106 Attachment: San Bernardino - Attachment to Firework Item-c1 [Revision 1] (6771 : Setting the 2020 Regulatory Fee Rate for the Sale of 3.cPacket Pg. 107Attachment: CM.Fireworks 2020 MAP [Revision 1] (6771 : Setting the 2020 Regulatory Fee Rate for the Page 1 Staff Report City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Lease Extension Agreement Options - Vanir Tower Building, Inc. Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, consider Vanir Tower lease options and provide direction to staff. Background On November 21, 2016, the Mayor and City Council approved Resolution 2016-240 directing the City Manager to execute a Lease Agreement for office space at Vanir Tower, Inc. (290 North D Street, San Bernardino, California - APN 0134-311-42-0000) to house City staff. The agreement was amended on March 6, 2017 by Resolution 2017-039, resetting the lease period to commence on April 15, 2017 for a two year period with the option of two six-month extension periods. On April 3, 2019 , the Mayor and City Council authorized the City Manager to e xercise both of the six-month extension options, extending the Lease Agreement term through April 15, 2020. The original Lease Agreement and Amendment No. 1 to the Lease Agreement are included as attachments to this report. The City’s current lease agreement, including all term extensions, expired on April 15, 2020. On May 20, 2020, staff proposed that the Mayor and City Council consider a lease amendment to extend the term of the Lease Agreement through June 30, 2021. Following Mayor and City Council discussion of the item, staff was directed to explore options for reducing the rentable office space square footage, reducing lease term periods, and to continue to negotiate per square foot pricing. Staff has since met with Vanir Tower Building, Inc. Multiple options for moving forward with a lease extension are provided below for Mayor and City Council review and discussion. Discussion The office space leased by the City at the Vanir Tower on the 3 rd and 8th Floors are currently occupied by the Offices of the Mayor, City Council, City Attorney, City Manager, City Treasurer, Finance and Human Resource Departments. The ground level space leased by the City is occupied by the City’s Public Information Counter and the 4 Packet Pg. 108 6783 Page 2 SB Direct Call Center staff. The current square footage occupied of 24,538 breaks down as follows: 1st Floor 2,668 Sq. Ft. 3rd Floor 14,004 Sq. Ft. 8th Floor 7,865 Sq. Ft. On May 20, 2020, staff originally proposed a lease agreement extension that would extend the term of the lease throu gh June 30, 2021, incorporate minor adjustments to true-up the square footage (“rentable space”) and include a downward adjustment of the price per square foot price from the current $1.91/Sq. Ft. to $1.88/Sq. Ft. All other terms of the original agreement were to remain in effect per the proposed lease extension agreement. Following discussion of the proposed lease extension, the Mayor and City Council gave direction to staff to return to negotiations with the Vanir Tower representative to discuss alternate terms and office area reductions. Based on that direction staff has negotiated the following options with Vanir Tower Building, Inc: 1. One-year Lease retaining all current office areas (previously proposed) 2. One-year Lease removing all office space from the 8th floor 3. Six-month lease removing all office space from the 8th floor 4. Six-month lease removing Suite 803 (Council Offices) 5. Six-month lease removing Suite 808 (Mayor's Office) A cost analysis for each of these options is included as Attachment 1 to this report. Staff will also provide a presentation on these options. Options above that reduce overall square footage usage result in an increase in price per square foot, however this pricing remains at the lower end of lease rates discuss ed with Vanir Tower Building, Inc. It is important to note, that in the event a six-month term is chosen, budgets will still be required for leasing office space in this or another facility through the end of FY 2020/21. Pending direction on this item, the City will have the opportunity to continue occupying the existing office space until through the term of the lease extension. In the event direction is given to reduce all or partial office space on the 8 th floor, staff will require a minimum of 30 days to relocate employees and vacate the space and may incur additional costs associated with relocating City personnel to other areas. As the City continues to work towards reestablishing a permanent City Hall location, staff will continue to evaluate the City's office space needs and present the Mayor and City Council with a longer term option prior to the expiration of any extended lease term. Staff is scheduling a review of the City Hall Building Facility Assessment to be brought before the Mayor and City Council in July 2020. 4 Packet Pg. 109 6783 Page 3 2020-2025 Key Strategic Targets and Goals The provision of multiple lease options for consideration supports Key Target No. 1.c: Create a framework for spending decisions by allowing the Mayor and City Council to evaluate the fiscal and operational impacts of each option prior to providing extending the lease through June 30, 2021, provides cost stability related to the lease for budgeting purposes through FY 2020/21. Fiscal Impact No additional fiscal impact to the City in FY 2019/20 as the City is currently in a month to month hold over lease at the current rate of $1.91 per sq. ft. per month. Budget impacts for FY2020/21 will be determined and planned for pending staff direction from Mayor and City Council on this item. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino consider Vanir Tower lease options and provide direction to staff. Attachments Attachment 1 Vanir Tower Lease Option Cost Analysis Ward: 1 Synopsis of Previous Council Actions: November 21, 2016 Resolution 2016-240 of the Mayor and Common Council of the City of San Bernardino was adopted, authorizing the City Manager to execute a Lease Agreement between the City of San Bernardino and Vanir Tower Building Incorporated for the Lease of Office Space (#4737). March 6, 2017 Resolution No. 2017-039 of the Mayor and City Council of the City of San Bernardino was adopted, directing the City Manager to execute the Amendment Number One to the Lease with Vanir Tower Inc. April 3, 2019 The Mayor and City Council authorized the City Manager to execute two, six month lease extensions to the lease agreement between Vanir Tower Building, Inc., and the City of San Bernardino extending the Lease agreement through April 15, 2020. May 20, 2020 The Mayor and City Council directed staff to explore additional lease options for extending the Vanir Tower lease. 4 Packet Pg. 110 Attachment 1 Term (in Months) Price per square foot 1st Floor Sq Ft 3rd Floor Sq Ft 8th Floor Ste 803 8th Floor Ste 808 Monthly Lease Payment Full Term Lease Cost 8th Floor Redution - Monthly Savings * 1 One Year Lease - All Areas (Previously Proposed)12 1.88$ 2,668 14,004 5,428 2,437 46,129.56$ 553,554.72$ N/A 2 One Year Lease - Remove 8th Floor 12 1.95$ 2,668 14,004 0 0 32,510.40$ 390,124.80$ 15,336.75$ 3 Six-month Lease - Remove 8th Floor 6 1.95$ 2,668 14,004 0 0 32,510.40$ 195,062.40$ 15,336.75$ 4 Six-month Lease - Remove 8th Floor Ste 803 6 1.95$ 2,668 14,004 0 2,437 37,262.55$ 223,575.30$ 10,584.60$ 5 Six-month Lease - Remove 8th Floor Ste 808 6 1.95$ 2,668 14,004 5,428 0 43,095.00$ 258,570.00$ 4,752.15$ Options Vanir Tower Lease Options - Cost Analysis City of San Bernardino * Savings will be not be realized for the month of July 2020 as staff will need to use this time to relocate personnel and vacate the respective 8th floor areas . 4.a Packet Pg. 111 Attachment: PW.Vanir Tower Lease Options Cost Analysis.Attachment 1 (6783 : Lease Extension Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Cheryl Weeks, Council Administrative Supervisor Subject: 2020 City Board, Commission & Citizen Advisory Commission Approved Minutes Recommendation That the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City Board, Commission, and Citizen Advisory Committee meetings approved in March, April, and May 2020. 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 the months of March, April, and May 2020 are presented for review by the Mayor and City Council including the: 1. Personnel Commission - January 28, 2020; February 24, 2020; February 25, 2020 2. Planning Commission - January 14, 2020; March 10, 2020 3. Water Board - April 14, 2020; April 28, 2020; May 12, 2020 2020-2025 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 That the Mayor and City Council of the City of San Bernardino, California, receive and file the minutes from the City Board, Commission, and Citizen Advisory Committee 5 Packet Pg. 112 6769 Page 2 meetings approved in March, April, and May 2020. Attachments Attachment 1 City Board, Commission and Citizen Advisory Committee Meeting minutes approved in March, April, and May 2020; Exhibit “A” Personnel Commission-January 28, 2020; February 24, 2020; February 25, 2020; Exhibit “B” Planning Commission - January 14, 2020; March 10, 2020; Exhibit “C” Water Board - April 14, 2020; April 28, 2020; May 12, 2020 Ward: All 5 Packet Pg. 113 5.a Packet Pg. 114 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 115 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 116 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 117 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 118 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 119 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 120 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 121 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 122 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 123 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 124 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 125 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 126 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 127 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 128 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 129 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 130 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 131 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 132 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 133 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 134 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 135 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 136 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 137 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 138 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 139 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 140 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 141 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 142 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 143 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 144 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 145 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 146 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 147 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 148 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 149 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 150 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 151 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 152 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 153 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 154 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 155 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, 5.a Packet Pg. 156 Attachment: MCC.January.February.March.April.May 2020 BCCAC Approved Minutes.Attachment.(Exhibits A-C).docx (6769 : 2020 City Board, Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Genoveva Rocha, CMC, Acting City Clerk Subject: Notice and Calling of a General Municipal Run-Off Election Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt the following resolutions required in order to conduct a General Municipal Run-Off Election on Tuesday, November 3, 2020: 1) Adopt Resolution No. 2020-146 of the Mayor and City Council of the City of San Bernardino, California, calling and giving notice of the holding of a General Municipal Run-Off Election to be held on Tuesday, November 3, 2020, requesting the Board of Supervisors of the County of San Bernardino to consolidate said Election with the November 3, 2020, Statewide General Election and permit the San Bernardino County Registrar of Voters to render Election services to the City of San Bernardino for said Election, and authorizing the City Manager to pay the invoice for the costs of the Election; and 2) Adopt Resolution No. 2020-147 of the Mayor and City Council of the City of San Bernardino, California, adopting regulations for candidates fo r elective office pertaining to Candidate Statements submitted to the voters at an Election to be held on Tuesday, November 3, 2020. Background Pursuant to Article 8, Section 800, of the City Charter, the primary and general Election shall be held in said City in consolidation with the State Primary Election and the State General Election and every two (2) years thereafter. City elections shall follow the provisions and procedures of the State Elections Code as applicable to general law cities. On March 3, 2020, the City of San Bernardino held a Primary Municipal election. The results were certified by the San Bernardino County Registrar of Voters on April 1, 2020. Based on the certified results, the Ward 5 and Ward 7 council races resulted in run-off elections, which will be consolidated with the Statewide General Election in November. 6 Packet Pg. 157 6779 Page 2 Discussion The Election will be conducted on Tuesday, November 3, 2020, to elect members of the City Council, Ward 5 and Ward 7. As a matter of process, the San Bernardino County Board of Supervisors requires that each City requesting election services submit an executed resolution requesting such services. This year, the Registrar of Voters has placed a Friday, June 26, 2020 deadline for these resolutions. The City Council must adopt Resolutions calling and consolidating the Election and setting candidate statement regulations. 2020-2025 Key Strategic Targets and Goals Noticing and Calling the Election aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community. Fiscal Impact The cost of the Election is dependent on the number of races and measures on the ballot. In 2018, the cost for the general municipal election was approximately $104,000. Due to the impacts of COVID-19, the State has changed how elections will be conducted statewide. At present, the San Bernardino County Registrar of Voters anticipates an increase in the cost of the elections throughout the County but has not provided an estimate to the City. City staff estimated the cost to be approximately $122,000 in the 2020/21 Fiscal Year proposed budget; however, this estimate is uncertain. The placement of measures on the ballot by Council or through the petition process may result in additional costs. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt the following resolutions required in order to conduct a General Municipal Run-Off Election on Tuesday, November 3, 2020: 1) Adopt Resolution No. 2020-146 of the Mayor and City Council of the City of San Bernardino, California, calling and giving notice of the holding of a General Municipal Run-Off Election to be held on Tuesday, November 3, 2020, requesting the Board of Supervisors of the County of San Bernardino to consolidate said Election with the November 3, 2020, Statewide General Election and permit the San Bernardino County Registrar of Voters to render Election services to the City of San Bernardino for said Election, and authorizing the City Manager to pay the invoice for the costs of the Election; and 2) Adopt Resolution No. 2020-147 of the Mayor and City Council of the City of San Bernardino, California, Adopting Regulations for Candidates for Elective Office Pertaining to Candidate Statements Submitted to the Voters a t an Election to be Held on Tuesday, November 3, 2020. 6 Packet Pg. 158 6779 Page 3 Attachments Attachment 1 Resolution No. 2020-146 Attachment 2 Resolution No. 2020-147 Wards: 5, 7 Synopsis of Previous Council Actions: September 18, 2019 Mayor and City Council adopted Resolution No. 2019-299, approving the Notice and Calling of the March 3, 2020, Primary Municipal Election. April 15, 2020 Mayor and City Council adopted Resolution No. 2020-62, declaring the results of the Primary Municipal Election held on March 3, 2020. 6 Packet Pg. 159 RESOLUTION NO.2020-146 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, CALLING AND GIVING NOTICE OF THE HOLDING OF A GENERAL MUNICIPAL RUN-OFF ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2020, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN BERNARDINO TO CONSOLIDATE SAID ELECTION WITH THE NOVEMBER 3, 2020, STATEWIDE GENERAL ELECTION AND PERMIT THE SAN BERNARDINO COUNTY REGISTRAR OF VOTERS TO RENDER ELECTION SERVICES TO THE CITY OF SAN BERNARDINO FOR SAID ELECTION, AND AUTHORIZING THE CITY MANAGER TO PAY THE INVOICE FOR THE COSTS OF THE ELECTION WHEREAS, under the provisions of the laws relating to Charter Cities in the State of California, a General Municipal Election shall be held on November 3, 2020, for the election of Municipal Officers; and WHEREAS, in the course of conduct of the election it is necessary for the City to request services of the County; and WHEREAS, it is desirable that the General municipal election be consolidated with the Statewide General election to be held on the same date and within the city precincts, pollin g places and election officers of the two elections be the same, and that the county election department of the County of San Bernardino canvass the returns of the General Municipal Election and that the election be held in all respects as if there only one election; and WHEREAS, the City Clerk is authorized, instructed, and directed to give further or additional notice of the election, in time, form and manner as required by law; and WHEREAS, all necessary expenses in performing these services shall be paid by the City of San Bernardino. NOW, THEREFORE, THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Call of Election. A General Municipal Run-Off Election for Council Wards 5 and 7 is called and will be held in the City of San Bernardino on Tuesday, November 3, 2020. SECTION 2. Request for County Services. As authorized by Section 10002 of the Elections Code of the State of California, the Mayor and City Council request that the Board of Supervisors of the County of San Bernardino permit the San Bernardino County Registrar of 6.a Packet Pg. 160 Attachment: RES. 2020-146 Notice and Calling Election (6779 : Notice and Calling of a General Municipal Run-Off Election) Voters to render services to the City of San Bernardino for the General Municipal Election to be held on November 3, 2020. SECTION 3. Conduct of Election. The Board of Supervisors of the County of San Bernardino is hereby requested to issue instructions to the San Bernardino County Registrar of Voters to take all steps necessary for t he holding of the General Municipal Election. The polls for said election shall be open at 7:00 a.m. of the day of said election and shall remain open continuously from that time until 8:00 p.m. of the same day when said polls shall be closed, except as provided in Section 14401 of the California Elections Code. SECTION 4. Notice of Election. The City Clerk is hereby directed to publish a Notice of the General Municipal Election., which shall contain the following: A. The date of the election. B. The offices to be filled, specifying full or short term. C. The hours the polls will be open. SECTION 5. Cost of Election. The City of San Bernardino recognizes that additional costs will be incurred by the County by reasons of this election and agrees to reimburse the County for such costs. SECTION 6. Payment of Invoice to County of San Bernardino. The City Manager is hereby authorized to pay the invoice received from the County of San Bernardino for the services necessary for conducting the General Municipal Election. SECTION 7. Filing of Resolution. The Acting City Clerk of the City of San Bernardino is directed to file a certified copy of this Resolution with the Board of Supervisors of the County of San Bernardino and to file a copy of this Resolution with the Registrar of Voters. APPROVED and ADOPTED by The City Council and signed by the Mayor and attested by the Acting City Clerk this 17th day of June, 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 6.a Packet Pg. 161 Attachment: RES. 2020-146 Notice and Calling Election (6779 : Notice and Calling of a General Municipal Run-Off Election) CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-146, adopted at a regular meeting held on the 17th day of June 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 18th day of June, 2020. Genoveva Rocha, CMC, Acting City Clerk 6.a Packet Pg. 162 Attachment: RES. 2020-146 Notice and Calling Election (6779 : Notice and Calling of a General Municipal Run-Off Election) Resolution No. 2020-147 June 17, 2020 Page 1 of 5 RESOLUTION NO.2020-147 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2020 WHEREAS, §13307 of the Elections Code of the State of California provides that the governing body of any local agency adopt regulations pertaining to mat erials prepared by any candidate for a municipal election, including costs of the optional candidate statement; and WHEREAS, Section 13307(b) of the California Elections Code states that the Statement of each candidate shall be printed in type of uniform size and darkness, and with uniform spacing; and WHEREAS, the City Clerk is responsible for enforcing formatting requirements that exceed those acceptable by the County and wishes to streamline the review process by imposing limits relating to the format of candidate statements to block format, and prohibit Bolding, Capitalized Words, Italics, and Underlining. The City Clerk has final sign-off and approval of all candidate statements for elected city offices in accordance with state and local law. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. General Provisions. That pursuant to §13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of San Bernardino on Tuesday, November 3, 2020, may prepare a candidate’s statement on an appropriate form provided by the City Clerk. The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the office of the City Clerk at the time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period. The City Clerk shall require each candidate filing a statement to pay a deposit in advance, as a condition of having his or her statement included in the voters' pamphlet. SECTION 2. Foreign Language Policy. A. Pursuant to the Federal Voting Rights Act, candidate statements will be translated into all languages required by the County of San Bernardino. The County is required to translate candidate’s statements into the following languages: Spanish. 6.b Packet Pg. 163 Attachment: RES. 2020-147 Candidate Statements (6779 : Notice and Calling of a General Municipal Run-Off Election) Resolution No. 2020-147 June 17, 2020 Page 2 of 5 B. The County will print and mail sample ballots and candidate statements to all voters in English and Spanish. The County will make the sample ballots and candidates statements in the required languages available at all polling places, on the County’s website, and in the City Clerk’s Department for the City of San Bernardino. SECTION 3 Endorsements It is the policy of the San Bernardino County Registrar of Voters that any named individual or specific organization listed as an endorsement in a candidate statement must be verified as endorsing the candidate prior to printing in the Voter Information Guide and Sample Ballot. Verification of the endorsement must be in the form of a copy of a letter of endorsement, or in a direct communication from the endorser to the Registrar of Voters in the form of email or facsimile correspondence. All endorsements or verification of endorsements from an individual or organization of a candidate must be submitted no later than five days after the end of the filing period. SECTION 4. Payment. A. Translations: 1. The candidate shall be required to pay for the cost of translating the candidate’s statement into any required foreign language as specified in (A) and/or (B) of Section 2 above pursuant to Federal and\or State law. 2. The candidate shall be required to pay for the cost of translating the candidate’s statement into any foreign language that is not required as specified in (A) and/or (B) of Section 2 above, pursuant to Federal and\or State law, but is requested as an option by the candidate. B. Printing: 1. The candidate shall be required to pay for the cost of printing the candidate’s statement in English in the main voter pamphlet. 2. The candidate shall be required to pay for the cost of printing the candidate’s statement in a foreign language required in (A) of Section 2 above, in the main voter pamphlet. 3. The candidate shall be required to pay for the cost of printing the candidate’s statement in a foreign language requested by the candidate per (B) of Section 2 above, in the main voter pamphlet. 4. The candidate shall be required to pay for the cost of printing the candidate’s statement in a foreign language required by (A) of Section 2 above, in the facsimile voter pamphlet. 6.b Packet Pg. 164 Attachment: RES. 2020-147 Candidate Statements (6779 : Notice and Calling of a General Municipal Run-Off Election) Resolution No. 2020-147 June 17, 2020 Page 3 of 5 The City Clerk shall estimate the total cost of printing, handling, translating, and mailing the candidate’s statements filed pursuant to this section, including costs incurred as a result of complying with the Voting Rights Act of 1965 (as amended), and require each candidate filing a statement to pay in advance to the local agency his or her estimated pro rata share as a condition of having his or her statement included in the voter’s pamphlet. An estimated payment is required and the estimate is just an approximation of the actual cost that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the City Clerk is not bound by the estimate and may, on a pro rata basis, bill the candidate for additional actual expense or refund any excess paid depending on the final actual cost. In the event of underpayment, the City Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the City Clerk shall prorate the excess amount among the candidates and refund the excess amount paid within 30 days of the election. SECTION 5. Miscellaneous. A) All translations shall be provided by professionally-certified translators. B) The City Clerk shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections. SECTION 6 . Additional Materials. No candidate will be permitted to include additional materials in the sample ballot package. SECTION 7. That the City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued. SECTION 8. That all previous resolutions establishing council policy on pa yment for candidate statements are repealed. SECTION 9. That this Resolution shall apply only to the election to be held on November 3, 2020. SECTION 10. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. APPROVED and ADOPTED by The City Council and signed by the Mayor and attested by the Acting City Clerk this 17th day of June, 2020. John Valdivia, Mayor City of San Bernardino 6.b Packet Pg. 165 Attachment: RES. 2020-147 Candidate Statements (6779 : Notice and Calling of a General Municipal Run-Off Election) Resolution No. 2020-147 June 17, 2020 Page 4 of 5 Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 6.b Packet Pg. 166 Attachment: RES. 2020-147 Candidate Statements (6779 : Notice and Calling of a General Municipal Run-Off Election) Resolution No. 2020-147 June 17, 2020 Page 5 of 5 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-147, adopted at a regular meeting held on the 17th day of June 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 18th day of June, 2020. Genoveva Rocha, CMC, Acting City Clerk 6.b Packet Pg. 167 Attachment: RES. 2020-147 Candidate Statements (6779 : Notice and Calling of a General Municipal Run-Off Election) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Paul Espinoza, Finance Director Subject: Approval of Commercial and Payroll Disbursements Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino approve the commercial and payroll disbursements for May 2020. Background Completed commercial and payroll disbursement registers are s ubmitted 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 May 28, 2020 $2,059,238.07 Total Payroll Demands: $2,059,238.07 The following check registers are being presented for approval: May 14, 2020 2019/20 (Register #48)$598,173.52 May 21, 2020 2019/20 (Register #49)927,949.93 Total commercial check demands:$1,526,123.45 The following Electronic Funds Transfer (EFT) registers presented for approval: April 17, 2020 2019/20 (Register #906)$480,514.81 April 21, 2020 2019/20 (Register #907- #909)618,410.68 April 24, 2020 2019/20 (Register #910)804.18 April 27, 2020 2019/20 (Register #911)45,288.54 April 30, 2020 2019/20 (Register #912- #913)585,818.32 May 5, 2020 2019/20 (Register #914)487,846.96 Total commercial EFT demands:$2,218,683.49 7 Packet Pg. 168 6752 Page 2 2020-2025 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. 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 May 2020. Attachments Attachment 1 Payroll checks for May 2020 Attachment 2 Commercial checks for Register #48 Attachment 3 Commercial checks for Register #49 Attachment 4 Commercial EFT Registers #906 Attachment 5 Commercial EFT Registers #907-909 Attachment 6 Commercial EFT Registers #910 Attachment 7 Commercial EFT Registers #911 Attachment 8 Commercial EFT Registers #912-913 Attachment 9 Commercial EFT Registers #914 7 Packet Pg. 169 7.a Packet Pg. 170 Attachment: FN. Payroll Summary Report ATTACHMENT#1 (6752 : Approval of Commercial and Payroll Disbursements) 7.b Packet Pg. 171 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 172 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 173 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 174 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 175 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 176 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 177 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 178 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 179 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 180 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 181 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 182 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 183 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 184 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 185 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 186 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.b Packet Pg. 187 Attachment: FN. Commercial Checks & Payroll. Register #48 ATTACHMENT#2 (6752 : Approval of 7.c Packet Pg. 188 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 189 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 190 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 191 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 192 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 193 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 194 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 195 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 196 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 197 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 198 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 199 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 200 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 201 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 202 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 203 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 204 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 205 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 206 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 207 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 208 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.c Packet Pg. 209 Attachment: FN. Commercial Checks & Payroll. Register #49 ATTACHMENT#3 (6752 : Approval of 7.d Packet Pg. 210 Attachment: FN. EFT Register #906. ATTACHMENT#4 (6752 : Approval of Commercial and Payroll 7.d Packet Pg. 211 Attachment: FN. EFT Register #906. ATTACHMENT#4 (6752 : Approval of Commercial and Payroll 7.e Packet Pg. 212 Attachment: FN. EFT Register #907-#909. ATTACHMENT#5 (6752 : Approval of Commercial and Payroll 7.e Packet Pg. 213 Attachment: FN. EFT Register #907-#909. ATTACHMENT#5 (6752 : Approval of Commercial and Payroll 7.f Packet Pg. 214 Attachment: FN. EFT Register #910. ATTACHMENT#6 (6752 : Approval of Commercial and Payroll 7.f Packet Pg. 215 Attachment: FN. EFT Register #910. ATTACHMENT#6 (6752 : Approval of Commercial and Payroll 7.g Packet Pg. 216 Attachment: FN. EFT Register #911. ATTACHMENT#7 (6752 : Approval of Commercial and Payroll 7.g Packet Pg. 217 Attachment: FN. EFT Register #911. ATTACHMENT#7 (6752 : Approval of Commercial and Payroll 7.h Packet Pg. 218 Attachment: FN. EFT Register #912-#913. ATTACHMENT#8 (6752 : Approval of Commercial and Payroll 7.h Packet Pg. 219 Attachment: FN. EFT Register #912-#913. ATTACHMENT#8 (6752 : Approval of Commercial and Payroll 7.i Packet Pg. 220 Attachment: FN. EFT Register #914. ATTACHMENT#9 (6752 : Approval of Commercial and Payroll 7.i Packet Pg. 221 Attachment: FN. EFT Register #914. ATTACHMENT#9 (6752 : Approval of Commercial and Payroll Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Paul Espinoza, Finance Director Subject: Approve City Investment Policy for FY 2020/21 Recommendation Adopt Resolution No. 2020-124 of the Mayor and City Council of the City of San Bernardino, California, approving the City Investment Policy for FY 2020/21. Background State law requires that all municipalities have an investment policy approved by its governing board and that it reapprove that policy on an annual basis. On November 6, 2019, the Mayor and City Council adopted Resolution No. 2019-317 approving the current investment policy for FY 2019/20. Discussion The Finance Department is responsible for submitting the annual Investment Policy for adoption by the Mayor and City Council. The City’s Investment Policy for FY 2019/20 was recently awarded with a California Municipal Treasurer’s Association Investment Policy Certification designation. This certification recognizes that the City of San Bernardino’s investment policy adheres to the State of California government code and meets the program requirements within 18 different topic areas deemed to be best practices for investment policies. The policy for FY 2020/21 continues to focus on the items of paramount importance for the safety of principal, sufficient liquidity of the investment pool to ensure that cash is readily available as needed to meet the Cit y’s anticipated obligations, and a competitive market rate of return is obtained after the requirements of safety and liquidity have been met. The purpose of the Investment Policy is to establish cash management and investment guidelines for the investment of the City’s idle cash balances. This policy applies to each investment transaction and the entire portfolio, which must comply with Sections 53600 through 53683 of the Government Code and all other applicable laws and regulations. The changes to the Investment Policy proposed for Fiscal Year 2020/21 involve clean - up language for clarification purposes only. There is no new legislation that would 8 Packet Pg. 222 6751 Page 2 require substantive changes to our policy. The City’s investment policy provides continued compliance with state law. 2020-2025 Strategic Targets and Goals Approval of the City’s Investment Policy for Fiscal Year 2020/2021 aligns with Key Strategic Target No. 1: Financial Stability by Implementing, maintaining and updating a fiscal accountability plan. The annual approval is a requirement of state law as it pertains to managing the investment of City funds and provides guidance to the Finance Director to execute this Charter-designated responsibility. Fiscal Impact The proposed action has no specific fiscal impact. It authorizes continued investment of the City’s $120 million investment portfolio which generates approximately $1.8 million in annual investment income given the current interest rate environment. Interest earnings have been anticipated in the adopted FY 2020/21 Operating Budget. Conclusion Adopt Resolution No. 2020-124 of the Mayor and City Council of the City of San Bernardino, California, approving the City Investment Policy for FY 2020/21. Attachments Attachment 1 Resolution 2020-124; Exhibit “A” - Investment Policy Ward: N/A Synopsis of Previous Council Actions: November 6, 2019 Resolution 2019-317 was adopted approving the 2019/20 Investment Policy. 8 Packet Pg. 223 RESOLUTION NO. 2020-124 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA APPROVING AN INVESTMENT POLICY FOR FY 2020/21 WHEREAS, the City of San Bernardino has an existing investment policy consistent with state law and sound financial management practices; and WHEREAS, state law requires that the managing board of any municipality within the state review and reapprove the investment policy on an annual basis; and WHEREAS the Director of Finance has reviewed the 2019/20 investment policy adopted November 6, 2019, and is recommending minor changes to the proposed policy attached hereto as Exhibit “A”; and WHEREAS, such policy is presented to the Mayor and City Council for its review and approval for Fiscal Year 2020/21 and is consistent with state law. 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 adopts the "Investment Policy for Fiscal Year 2020/21," attached hereto as Exhibit "A" and incorporated herein by this reference. 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. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this 17th day of June 2020. John Valdivia, Mayor City of San Bernardino 8.a Packet Pg. 224 Attachment: FN.City Investment Policy Approval 2020-21. RESOLUTION (6751 : Approve City Investment Policy for FY 2020/21) Resolution No. 2020-124 Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 8.a Packet Pg. 225 Attachment: FN.City Investment Policy Approval 2020-21. RESOLUTION (6751 : Approve City Investment Policy for FY 2020/21) Resolution No. 2020-124 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 8.a Packet Pg. 226 Attachment: FN.City Investment Policy Approval 2020-21. RESOLUTION (6751 : Approve City Investment Policy for FY 2020/21) CITY OF SAN BERNARDINO Investment Policy Fiscal Year 2020-2021 Adopted June 17, 2020 Paul Espinoza Director of Finance 8.b Packet Pg. 227 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 2 - I. PURPOSE To establish guidelines for the prudent investment of public funds in a manner that will protect City funds, meet daily cash flow expenditures, and comply with all federal, state, and local laws and ordinances governing the investment of public funds. II. POLICY & ADOPTION It shall be the policy of the City of San Bernardino to annually review and adopt an Investment Policy by resolution of the City Council. This Policy applies to all financial assets and funds held by the City of San Bernardino and the Successor Agency to the San Bernardino Redevelopment Agency. The funds covered by this policy include: *General Fund *Special Revenue Funds *Capital Project Funds *Proprietary Funds *Other funds that may be created Any modifications to the Policy must be approved by the City Council. III. PROCEDURES The Director of Finance shall annually review the City’s Investment Policy, and incorporate any changes in state law, recommendations from the City’s Investment Advisor, recommendations from the various national and state organizations of municipal finance officers, or other changes recommended by City staff. The revised Investment Policy shall be presented to the City Council for review and approval. (A) Responsibilities No person may engage in investment activities except as provided under the terms of this Policy and the procedures established by the Director of Finance. 1. Responsibilities of the City Council The City Council shall annually consider and adopt a written Investment Policy. As provided in this Policy, the Council shall receive quarterly Investment Reports. 8.b Packet Pg. 228 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 3 - 2. Responsibilities of the Director of Finance The Director of Finance is appointed by and serves at the pleasure of the City Manager and is subject to his/her direction and supervision. The Director of Finance is charged with responsibility for the conduct of all Finance Department operations. The City Charter places the “City Treasurer” responsibilities amongst the duties of the Director of Finance. That individual is charged with responsibility for carrying out all investment actions. He/she may delegate the day-to-day investment activities to their designee(s) but not the responsibility for the overall investment program. If authorized by the City Council, the Director of Finance may also utilize the services of an external investment advisor to assist with the investment program. The Director of Finance, through supporting staff members, is responsible to manage all public funds and securities belonging to or under the control of the City and the Successor Agency, including the deposit and investment of those funds in accordance with principles of sound treasury management and applicable laws and ordinances. Appropriate internal controls designed to ensure that assets of the City are protected from loss, theft, or misuse, including but not limited to separation of duties and multiple approvers for transactions, shall be maintained at all times in order to safeguard the City’s assets. 3. Responsibilities of the City’s Investment Advisor (if applicable) The City may engage in the services of outside professionals for evaluation and advice regarding the City’s investment program. An authorized Investment Advisor may provide investment management services, which may also include facilitating trade executions under the direction of the Director of Finance or designee. Any Investment Advisor shall be registered by the Securities and Exchange Commission and licensed to do business in the State of California. An authorized Investment Advisor shall invest the City’s funds in investments that are in compliance with this policy and provide accurate and timely reports of its investment activities to City staff. The Investment Advisor shall never take possession of the City’s funds or assets. 8.b Packet Pg. 229 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 4 - 4. Internal Controls The Director of Finance is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft, fraud or misuse. The City’s external independent auditing firm shall perform an annual analysis and review of internal controls, account activity and compliance with policies and procedures. (B) Prudent Investor Rule The standard of prudence to be used by the Director of Finance shall be the “prudent investor” standard. This shall be applied in the context of managing an overall portfolio. The “Prudent Investor Rule” provides, pursuant to California Government Code Section 53600.3, that investments shall be made with judgment and care—under circumstances then prevailing—which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. The Director of Finance and any designee of the Director of Finance, as investment officers acting in accordance with written procedures and the investment policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. (C) Ethics and Conflicts of Interest In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that conflicts with proper execution of the investment program or impairs their ability to make impartial investment decisions. Employees and investment officers are required to annually file applicable financial disclosures as required for “public officials who manage public investments” by the Fair Political Practices Commission (FPPC) and are subject to California law relative to conflicts of interest. 8.b Packet Pg. 230 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 5 - (D) Level of Investment The City strives to maintain the level of investment of all investable cash as near to 100 percent as possible through current and projected cash flow management. The Director of Finance shall maintain a system to monitor and forecast revenues and expenditures so that City funds can be invested to the fullest extent possible while providing sufficient liquidity to meet the City’s reasonably anticipated cash flow requirements. Maturities of investments will be selected to provide necessary liquidity, manage interest rate risk, and optimize earnings. Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds. (E) Investment Objectives The City seeks safety and liquidity in all of its investments followed by yield. Safety, liquidity, and yield are defined as follows: 1. Safety. Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. 2. Liquidity. The investment portfolio shall remain sufficiently liquid to meet operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands. 3. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. (F) Allowable Investments The investments listed in this Policy are authorized investments pursuant to Sections 53601 and 53635 of the California Government Code and are authorized investments for the City subject, however, to the restrictions set forth in Section “K” of this Investment Policy. In the event that an apparent discrepancy is found between this Policy and the Government Code, the more restrictive parameters will take precedence. 8.b Packet Pg. 231 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 6 - (G) Collateralization If collateral is required for a particular investment type, it will be provided in compliance with California Government Code requirements. (H) Investment Pools/Mutual Funds Prior to investing in any pooled investment program (e.g., LAIF, money market funds), the Director of Finance will review the program’s documentation (e.g., investment policy, policies for participation, fees) to determine the appropriateness of the pool for City funds. Whenever the City has funds invested in a pooled investment program, the Director of Finance should periodically review the pool’s investment holdings. The review shall, at a minimum, obtain the following information: • A description of eligible investment securities, and a written statement of investment policy and objectives. • A description of interest calculations and how it is distributed, and how gains and losses are treated. • A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited. • A description of who may invest in the program, how often, and what size of deposits and withdrawals are allowed. • A schedule for receiving statements and portfolio listings. • A description of how the pool/fund utilizes reserves, retained earnings, etc. • A fee schedule, including when and how fees are assessed. • The eligibility of the pool/fund to invest in bond proceeds and special district funds, and a description of its practices (I) Diversification The City shall diversify the investments within the portfolio to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions, or maturities. To promote diversification, no more than 5% of the portfolio may be invested in the securities of any one issuer, regardless of security type; excluding U.S. Treasuries, federal agencies, supranationals, and pooled investments such as LAIF, money market funds, or local government investment pools. 8.b Packet Pg. 232 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 7 - (J) Maximum Maturities For those investment types for which this Policy does not specify a maturity limit, no individual investment shall exceed a maturity of five years from the date of purchase unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment. The weighted average duration of the investment portfolio shall not exceed 3.0 years. (K) Authorized Investments of the City The following types of investments are authorized by this Policy: 1. U.S. Treasury Instruments. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category. The maximum maturity for this investment is five years from the time of purchase. 2. State of California’s Local Agency Investment Fund (LAIF). A State of California-managed investment pool. The maximum amount invested in this category may not exceed the limit set by LAIF for operating accounts. For 2020 that deposit limit is $75 million. 3. Local Government Investment Pools (“LGIP”). Shares of beneficial interest issued by joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in Government Code (e.g. Cal Trust). The City will limit investments to LGIPs that seek to maintain a stable net asset value. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category. 4. Municipal Bonds. Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency, or authority of the state. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. 8.b Packet Pg. 233 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 8 - Bonds, notes, warrants, or other evidences of indebtedness of a local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the local agency, or by a department, board, agency, or authority of the local agency. Purchases are limited to securities rated in a rating category of “A” (long- term) or “A-1” (short-term) or their equivalents or better by a Nationally Recognized Statistical Rating Organization (NRSRO). A maximum of 30% the City’s portfolio may be invested in this category. The maximum maturity for this investment is five years from the time of purchase. 5. Federal Agency Securities. Federal agency or United States government- sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limitation as to the percentage of the City’s portfolio that may be invested in this category. The maximum maturity for this investment is five years from the time of purchase. 6. Negotiable Certificates of Deposit. Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Securities in this category shall be limited to the maximum amount covered by federal deposit insurance currently set at $250,000 for 2019. A maximum of 30% the City’s portfolio may be invested in this category. The maximum maturity for this investment is five years from the time of purchase. 7. Commercial Paper. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or (2): (1) The entity meets the following criteria: (A) Is organized and operating in the United States as a general corporation; (B) Has total assets in excess of five hundred million dollars ($500,000,000), and (C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or better by an NRSRO. (2) The entity meets the following criteria: (A) Is organized within the United States as a special purpose corporation, trust, or limited 8.b Packet Pg. 234 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 9 - liability company, (B) Has program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond, and (C) Has commercial paper that is rated “A-1” or better, or the equivalent, by an NRSRO. Purchases are limited to securities that have a maximum maturity of 270 days. A maximum of 25% the City’s portfolio may be invested in this category with a maximum of 5% per issuer. 8. Corporate or Medium-Term Notes. Corporate or medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Purchases are limited to securities rated in a rating category of “A” or its equivalent or better by an NRSRO. A maximum of 30% the City’s portfolio may be invested in this category with a maximum of 5% per issuer. 9. Money Market Funds (“MMF”). Purchases are restricted to Government Money Market Funds. Furthermore, these Money Market Funds must have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two NRSROs, or (B) Retained an investment advisor with not less than five years’ experience and registered or exempt from registration with the SEC, with assets under management in excess of five hundred million dollars ($500,000,000). A maximum of 20% of the City’s portfolio may be invested in this category. 10. Supranational Obligations. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by a NRSRO. A maximum of 10% the City’s portfolio may be invested in this category with a maximum of 5% per issuer. State law limits the percentage to 30% of the portfolio. 8.b Packet Pg. 235 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 10 - 11. Bankers Acceptances. Bankers’ acceptances are short-term debt instruments issued by a company that is guaranteed by a commercial bank. Bankers Acceptances are limited to institutions with short-term debt obligations of A-1 or higher and have long term debt obligations rated “A” or higher, or the equivalent by a NRSRO. The maturity shall not exceed 180 days and no more than 30 percent of the total portfolio may be invested in banker’s acceptances and no more than 5% per issuer. City of San Bernardino Authorized Investment Policy Table Investment Type Maximum Term Maximum % of Portfolio Maximum per Issuer Minimum Rating US Treasury Obligations 5 Years NONE NONE NONE Local Agency Investment Fund (LAIF) N/A The City may invest up to the maximum amount permitted by California state law. N/A NONE Joint Powers/Local Government Investment Pool N/A NONE N/A NONE Municipal Debt 5 Years 30% A1, A Federal Agency Obligations 5 Years NONE NONE NONE Certificate of Deposits 5 Years 30% NONE Securities in this category shall be limited to the maximum amount covered by federal deposit insurance. Commercial Paper 270 Days 25% 5% A1/P1 , A Medium Term/Corporate Notes 5 Years 30% 5% A Money Market Mutual Funds N/A 20% NONE AAA Supranational Obligations (IBRD, IFC, IDB) 5 Years 10% 5% AA Banker’s Acceptances 180 Days 30% 5% A1, A (L) Prohibited Investments 8.b Packet Pg. 236 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 11 - Furthermore, the City will not invest in inverse floaters, range notes, mortgage- derived, interest-only strips, or any security that could result in zero interest accrual if held to maturity. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will 100% of market value for Certificate of Deposits and 102% for reverse purchase agreements or principal and accrued interest. Collateral will always be held by an independent third party with whom the entity has a current custodial relationship (M) Performance Standards The investment portfolio shall be managed with the objective of obtaining a market-average rate of return during budgetary and economic cycles, considering the City’s investment risk constraints and the cash flow needs. Investment return is a consideration only after the core investment portfolio tenets of safety and liquidity have been met. The Director of Finance will adopt a benchmark which best approximates the composition and weighted average maturity of the City’s portfolio. The City will monitor the City’s portfolio yield against the US Treasury Constant Maturity and the performance yield presented by LAIF. However, the benchmark will be used only as a reference tool and does not infer that the portfolio will be managed in an attempt to attain or exceed the stated benchmark. Benchmarks may change over time based on changes in market conditions or cash flow requirements. The selected performance benchmarks shall be representative of the City’s overall investment objectives and liquidity requirements. (N) Investment Reporting The Director of Finance shall submit to the City Council, on a monthly basis, a report summarizing the individual transactions executed within the month. The Director of Finance shall submit to the City Council on a quarterly basis a report summarizing the status of the current investment portfolio and the individual transactions executed over the last quarter. The report shall be prepared in a manner which shall allow the City Council to ascertain whether investment activities during the reporting period have conformed to the Investment Policy. The report will include the following elements: • Type of investment • Institution/Issuer • Purchase Date 8.b Packet Pg. 237 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 12 - • Date of maturity • Amount of deposit or cost of the investment • Face value of the investment • Current market value of securities and source of valuation • Rate of interest • Interest earnings • Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance • Statement on availability of funds to meet the next six month’s obligations • Percentage of Portfolio by Investment Type • Days to Maturity for all Investments • Comparative report on Monthly Investment Balances & Interest Yields • Monthly transactions (O) Portfolio Review The Director of Finance shall continually monitor portfolio performance to ensure that the securities in the portfolio are in compliance with this Policy. The Director of Finance shall report any issues of material non-compliance in the next quarterly Investment Report. Percentage holding limits and diversification requirements listed in this Policy apply at the time a security is purchased. If a percentage holding limit or diversification requirement is exceeded due to a subsequent change in the portfolio, it is not a compliance violation, but no additional securities may be purchased in that category or for that issuer until the holdings are back under the Policy limits. Credit ratings, where shown, specify the minimum credit rating category required at purchase. In the event a security held by the City is subject to a credit rating change that brings it below the minimum credit ratings specified in this Policy, the Director of Finance will notify the City Council of the change in the next quarterly Investment Report. The course of action to be followed will then be decided on a case-by-case basis, considering such factors as the reason for the change, prognosis for recovery or further rating downgrades, and the market price of the security. If a security is determined to be out of compliance with this Policy due to a subsequent change in this Policy or the Government Code, it may be held to maturity unless there is a requirement that the security be sold. (P) Debt Proceeds Debt proceeds and bond reserve funds are to be invested in accordance with their respective bond indenture. If the indenture is silent as to the permitted 8.b Packet Pg. 238 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 13 - investments, the bond proceeds will be invested in the securities permitted by this Policy. Notwithstanding the other provisions of this Policy, the percentage limitations listed elsewhere in this Policy do not apply to bond proceeds and bond proceeds may be invested beyond five years if the maturities of such investments do not exceed the expected use of the funds, the investments are deemed prudent in the opinion of the Director of Finance, and the investments are not prohibited by the applicable bond documents. Tax and Revenue Anticipation Notes or other temporary financing proceeds shall not be invested for a term that exceeds the term of the debt. (Q) Safekeeping To protect against potential losses by collapse of individual securities dealers, all deliverable securities owned by the City, including collateral on repurchase agreements, shall be held in safekeeping by a third party bank trust department acting as agent for the City under the terms of a custody agreement executed by the bank and by the City. All deliverable securities will be received and delivered using standard delivery-versus-payment procedures. (R) Qualified Financial Institutions and Broker/Dealers The Director of Finance shall maintain a list of approved financial institutions authorized to provide investment related services to the City. In addition, the City shall maintain a list of approved security broker/dealers selected by conducting a process of due diligence. These may include ‘primary’ dealers or regional dealers that qualify under Securities and Exchange Commission (“SEC”) Rule 15C3-1 (uniform net capital rule). A copy of this Investment Policy shall be sent annually to all firms with which the City executes investments. Additionally, all financial institutions and broker/dealers who desire to become qualified bidders of investment transactions must provide the Director of Finance with the following: • Audited Financial Statements • Proof of State Registration • Copy of most recently filed Financial Industry Regulated Authority (FINRA) documentation • Certification of having read the Investment Policy and depository contracts of the City of San Bernardino The Director of Finance will review the existing list of either qualified broker/dealers or qualified bidders for investment transactions on an annual basis. At the discretion of the Director of Finance, and with the due diligence noted above, add or delete either broker/dealers or qualified bidders. 8.b Packet Pg. 239 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 14 - (S) Continuing Education and Training To ensure the highest level of professional standards for the execution of the investment program, investment staff responsible for the day-to-day management of the portfolio are encouraged to engage in continuing education in the areas of cash and investment management. 8.b Packet Pg. 240 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 15 - GLOSSARY AGENCIES: Federal agency securities. BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high grade negotiable instrument. BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investments. BROKER: A broker brings buyers and sellers together for a commission. He/she does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation (including limited liability companies) to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc. COUPON: a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. b) A certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions; buying and selling for his/her own account. 8.b Packet Pg. 241 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 16 - DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL CREDIT AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g. S&L’s, Small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and a reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (bills, commercial paper, bankers’ acceptances, etc.) are issued and traded. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (“NRSRO”): Firms that review and assess the creditworthiness of an obligor as an entity or with respect to specific securities or money market instruments and express their opinion in the form of a letter rating. A credit rating agency may apply to the SEC for registration as a nationally recognized statistical rating organization (“NRSRO”). The primary rating agencies are Standard & Poor’s Corporation, Moody’s Investor Services, Inc. and Fitch, Inc. 8.b Packet Pg. 242 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 17 - Negotiable Certificates of Deposit: Generally, short-term debt instrument that usually pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). Negotiable CDs are insured by FDIC up to $250,000, but they are not collateralized beyond that amount. Non-Negotiable Certificates of Deposit: CDs that carry a penalty if redeemed prior to maturity. Non-negotiable CDs issued by banks and savings and loans are insured by the Federal Deposit Insurance Corporation up to the amount of $250,000, including principal and interest. Amounts deposited above this amount may be secured with other forms of collateral through an agreement between the investor and the issuer. Collateral may include other securities including Treasuries or agency securities such as those issued by the Federal National Mortgage Association. PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. PRUDENT PERSON RULE: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state—the so-called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity; on a bond, the current income return. SAFEKEEPING: The service provided by banks and trust companies for clients when the bank or trust company stores the securities, takes in coupon payments, and redeems issues at maturity. 8.b Packet Pg. 243 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Exhibit A - 18 - SECURITIES & EXCHANGE COMMISSION: Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See “Uniform Net Capital Rule”. SUPRANATIONAL SECURITIES: United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter- American Development Bank (IDB), with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated “AA” or better by an NRSRO and shall not exceed 10 percent of the agency’s moneys that may be invested pursuant to this section. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of from one year to ten years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 8.b Packet Pg. 244 Attachment: FN- City Investment Policy FY20-21. EXHIBIT A (6751 : Approve City Investment Policy for FY 2020/21) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Paul Espinoza, Finance Director Subject: Monthly Investment Portfolio Report for May 2020 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 May 2020. 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 May 31, 2020. As of November 6, 2019, the City’s Investment Portfolio is in full compliance with the 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 and maintaining and updating a fiscal accountability plan. Fiscal Impact None Conclusion 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 May 2020. Attachments Attachment 1 Investment Portfolio Management Summary Report 9 Packet Pg. 245 6778 Page 2 Ward: All Synopsis of Previous Council Actions: None 9 Packet Pg. 246 CITY OF SAN BERNARDINO Portfolio Management May 31, 2020 CITY OF SAN BERNARDINO FINANCE DEPARTMENT 290 N D. ST SAN BERNARDINO, CA 92401 (909)384-5242Portfolio Summary % of Portfolio Book ValueInvestmentsMarket Value Par Value Days to MaturityTerm YTM 360 Equiv. YTM 365 Equiv. State Local Agency Investment Fund 68,780,949.29 149.53 1.344168,780,949.2968,780,949.29 1.363 Managed Pool Accounts 1,774.21 10.00 1.02611,774.211,774.21 1.040 Corporate Notes 11,106,516.06 1,3398.00 1.8951,17411,289,804.5911,062,890.00 1.921 Federal Agency Issues - Coupon 39,427,750.04 1,43928.39 1.73664039,956,897.0039,425,000.00 1.760 Supranationals 2,004,853.36 1,4451.44 1.8201,3372,016,470.002,000,000.00 1.845 Treasury Securities - Coupon 4,994,139.44 1,2753.60 2.1723245,088,680.005,000,000.00 2.202 Certificates of Deposit 5,940,000.00 1,5724.28 2.4667616,233,442.195,940,000.00 2.500 Money Market Funds 6,605,108.94 14.76 0.05916,605,108.946,605,108.94 0.060 138,861,091.34 100.00%Investments 139,973,126.22138,815,722.44 650 340 1.523 1.544 Cash and Accrued Interest 138,882,976.06Total Cash and Investments 21,884.72Subtotal 21,884.72 139,995,010.94138,815,722.44 21,884.72 21,884.72 650 340 1.523 1.544 Accrued Interest at Purchase Current Year May 31 176,930.90 Fiscal Year To Date 1,834,241.94 Average Daily Balance Effective Rate of Return 121,989,860.63 107,516,785.34 1.85%1.71% Total Earnings Month Ending "I certify that this report accurately reflects all pooled investments and is in conformity with the Investment Policy Statement approved by the Mayor and City Council on November 6, 2019. *Book Value is amortized Cost Basis **Market Values provided by BNY Western Trust. __________________________________________________ ____________________ PAUL ESPINOZA, DIRECTOR OF FINANCE Portfolio CITY AP Reporting period 05/01/2020-05/31/2020 Run Date: 06/05/2020 - 15:28 PM (PRF_PM1) 7.3.0 Report Ver. 7.3.3b 9.a Packet Pg. 247 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly YTM 360 Page 1 Par Value Book Value Maturity Date Stated RateMarket Value May 31, 2020 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date State Local Agency Investment Fund 1.344LOCAL AGENCY INVESTMENT FUND10001 68,780,949.29 68,780,949.29 1.36368,780,949.29SYS 1 68,780,949.2968,780,949.2968,780,949.2954,159,981.55Subtotal and Average 1.344 1 Managed Pool Accounts 1.026CALTRUST GOVT INVESTMENT FUND20008 1,774.21 1,774.21 1.0401,774.2120008 1 1,774.211,774.211,774.211,769.26Subtotal and Average 1.026 1 Corporate Notes 1.908AMERICAN HONDA FINANCE CORP30559 1,000,000.00 1,000,441.25 05/10/20231.95001/10/2020 1,016,190.00 A02665WDH1 1,073 1.732APPLE INC30554 1,000,000.00 998,750.55 09/11/20221.70012/10/2019 1,031,030.00 Aaa037833DL1 832 1.778APPLE INC30561 998,890.00 998,890.00 09/11/20241.80001/24/2020 1,049,693.55 Aaa037833DM9 1,563 2.152BANK OF AMERICA CORPORATION30549 1,000,000.00 1,000,000.00 10/30/20222.10010/30/2019 1,003,760.00 Aa06048WD72 881 2.201BANK OF AMERICA CORPORATION30568 1,000,000.00 1,000,000.00 02/28/20252.05002/28/2020 988,980.0006048WH94 1,733 1.904BANK OF NEW YORK MELLON CORP30547C 2,000,000.00 2,016,571.74 08/16/20232.20010/16/2019 2,082,940.00 Aaa06406FAD5 1,171 1.180JOHNSON & JOHNSON30570 1,000,000.00 1,003,371.23 03/01/20211.65003/03/2020 1,009,230.00 Aaa478160BS2 273 2.271J.P. MORGAN CHASE & CO30551 1,000,000.00 1,000,000.00 12/23/20242.30012/23/2019 984,160.00 Aaa48128GN97 1,666 1.731CHARLES SCHWAB CORP30563 1,064,000.00 1,088,491.29 01/25/20232.65001/27/2020 1,119,711.04 Aa808513AT2 968 2.096TOYOTA MOTOR CREDIT CORP30548 1,000,000.00 1,000,000.00 10/22/20242.12510/22/2019 1,004,110.00 Aaa89236TGN9 1,604 11,106,516.0611,289,804.5911,062,890.0011,107,237.30Subtotal and Average 1.895 1,174 Federal Agency Issues - Coupon 1.726FEDERAL FARM CREDIT BANK30536 1,000,000.00 1,000,000.00 10/26/20201.75010/26/2017 1,006,400.00 Aaa3133EHJ95 147 1.567FEDERAL FARM CREDIT BANK30555 2,000,000.00 2,015,663.59 12/13/20212.11012/31/2019 2,057,940.00 Aaa3133EH2T9 560 1.618FEDERAL FARM CREDIT BANK30557 1,000,000.00 1,000,000.00 04/09/20211.64001/09/2020 1,001,200.00 Aaa3133ELGK4 312 1.612FEDERAL FARM CREDIT BANK30564 1,000,000.00 999,101.95 02/10/20231.60002/11/2020 1,006,430.003133ELMD3 984 1.647FEDERAL FARM CREDIT BANK30567 1,000,000.00 1,000,000.00 06/03/20241.67003/03/2020 1,000,040.003133ELQU1 1,463 0.819FEDERAL FARM CREDIT BANK30571 1,000,000.00 1,000,000.00 12/16/20210.83003/16/2020 1,000,020.003133ELTM6 563 0.773FEDERAL FARM CREDIT BANK30572 1,000,000.00 999,569.44 09/16/20210.75003/16/2020 1,000,020.003133ELTL8 472 1.164FEDERAL HOME LOAN BANK30516 1,000,000.00 1,000,527.00 09/11/20201.37511/02/2016 1,003,470.00 Aaa313380WG8 102 1.781FEDERAL HOME LOAN BANK30522 1,000,000.00 998,613.90 12/24/20201.55001/09/2017 1,008,060.00 Aaa313381P25 206 1.913FEDERAL HOME LOAN BANK30523 1,000,000.00 999,009.45 11/29/20211.87501/19/2017 1,025,720.00 Aaa3130AABG2 546 1.926FEDERAL HOME LOAN BANK30528 1,000,000.00 998,898.34 11/29/20211.87502/14/2017 1,025,720.00 Aaa3130AABG2 546 1.672FEDERAL HOME LOAN BANK30534 1,000,000.00 1,000,447.97 04/07/20211.75006/14/2017 1,013,840.00 Aaa3130AB5A0 310 1.687FEDERAL HOME LOAN BANK30535 1,000,000.00 1,001,631.21 06/11/20211.87506/22/2017 1,017,120.00 Aaa313379RB7 375 2.541FEDERAL HOME LOAN BANK30539 1,000,000.00 1,000,798.77 09/11/20202.87506/11/2018 1,007,430.00 Aaa313370US5 102 2.836FEDERAL HOME LOAN BANK30540C 1,000,000.00 1,000,000.00 01/29/20242.87501/29/2019 1,014,260.00 Aaa3130AFRQ2 1,337 Portfolio CITY AP Run Date: 06/05/2020 - 15:28 PM (PRF_PM2) 7.3.0 Report Ver. 7.3.3b 9.a Packet Pg. 248 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly YTM 360 Page 2 Par Value Book Value Maturity Date Stated RateMarket Value May 31, 2020 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date Federal Agency Issues - Coupon 1.775FEDERAL HOME LOAN BANK30552 1,000,000.00 1,000,000.00 12/19/20221.80012/19/2019 1,000,630.00 Aaa3130AHPB3 931 1.795FEDERAL HOME LOAN BANK30556 1,000,000.00 1,000,000.00 12/23/20221.82012/31/2019 1,000,870.00 Aaa3130AHRV7 935 1.726FEDERAL HOME LOAN BANK30565 2,000,000.00 2,000,000.00 02/12/20251.75002/12/2020 2,001,460.003130AJ5F2 1,717 1.529FEDERAL HOME LOAN BANK30566 1,000,000.00 1,000,000.00 03/25/20241.55003/25/2020 1,005,340.003130AJAX7 1,393 1.341FEDERAL HOME LOAN MORTGAGE CRP30518 1,000,000.00 997,283.32 08/12/20211.12511/07/2016 1,011,070.00 Aaa3137EAEC9 437 1.978FEDERAL HOME LOAN MORTGAGE CRP30525C 425,000.00 424,964.80 01/26/20222.00001/30/2017 436,577.00 Aaa3134GAU44 604 2.096FEDERAL HOME LOAN MORTGAGE CRP30529C 1,000,000.00 1,000,000.00 02/28/20222.12502/28/2017 1,033,380.00 Aaa3134GA5T7 637 1.973FEDERAL HOME LOAN MORTGAGE CRP30530C 1,000,000.00 1,000,000.00 09/16/20212.00003/16/2017 1,023,260.00 Aaa3134GA5C4 472 1.933FEDERAL HOME LOAN MORTGAGE CRP30531 1,000,000.00 999,059.68 07/26/20211.87503/06/2017 1,020,280.00 Aaa3134G9M20 420 2.042FEDERAL HOME LOAN MORTGAGE CRP30537C 1,000,000.00 998,723.60 04/26/20222.00011/06/2017 1,034,230.00 Aaa3134GBP55 694 2.841FEDERAL HOME LOAN MORTGAGE CRP30541C 1,000,000.00 1,000,000.00 03/20/20242.88003/20/2019 1,001,360.00 Aaa3134GS5Q4 1,388 1.627FEDERAL HOME LOAN MORTGAGE CRP30558 1,000,000.00 1,000,000.00 07/13/20221.65001/13/2020 1,001,540.00 Aaa3134GUW55 772 1.272FEDERAL NATIONAL MORTGAGE ASSO30510C 1,000,000.00 999,938.54 09/29/20201.27009/29/2016 1,001,900.00 Aaa3136G37C3 120 1.332FEDERAL NATIONAL MORTGAGE ASSO30512C 1,000,000.00 1,000,000.00 03/29/20211.35009/29/2016 1,008,510.00 Aaa3136G4BD4 301 1.411FEDERAL NATIONAL MORTGAGE ASSO30513 1,000,000.00 999,223.26 10/07/20211.37510/13/2016 1,015,890.00 Aaa3135GOQ89 493 1.401FEDERAL NATIONAL MORTGAGE ASSO30515 1,000,000.00 999,411.66 10/07/20211.37510/31/2016 1,015,890.00 Aaa3135G0Q89 493 1.341FEDERAL NATIONAL MORTGAGE ASSO30517 1,000,000.00 1,000,144.47 10/07/20211.37511/03/2016 1,015,890.00 Aaa3135GOQ89 493 1.716FEDERAL NATIONAL MORTGAGE ASSO30519 1,000,000.00 995,294.17 10/07/20211.37511/18/2016 1,015,890.00 Aaa3135G0Q89 493 1.946FEDERAL NATIONAL MORTGAGE ASSO30524 1,000,000.00 1,000,405.86 01/05/20222.00001/23/2017 1,028,550.00 Aaa3135G0S38 583 1.994FEDERAL NATIONAL MORTGAGE ASSO30526 1,000,000.00 999,676.25 01/05/20222.00002/02/2017 1,028,550.00 Aaa3135G0S38 583 1.775FEDERAL NATIONAL MORTGAGE ASSO30527C 1,000,000.00 1,000,000.00 08/21/20201.80002/21/2017 1,003,590.00 Aaa3136G4LA9 81 2.014FEDERAL NATIONAL MORTGAGE ASSO30532 1,000,000.00 999,362.81 01/05/20222.00003/02/2017 1,028,550.00 Aaa3135G0S38 583 2.140FEDERAL NATIONAL MORTGAGE ASSO30533C 1,000,000.00 1,000,000.00 03/29/20222.17003/29/2017 1,036,020.00 Aaa3136G4MQ3 666 39,427,750.0439,956,897.0039,425,000.0040,105,814.75Subtotal and Average 1.736 640 Supranationals 1.726INTL BK RECON & DEVELOPMENT30562 1,000,000.00 1,000,000.00 01/27/20231.75001/27/2020 1,007,950.00 Aaa45905U5U4 970 1.913INTL BK RECON & DEVELOPMENT30569 1,000,000.00 1,004,853.36 01/28/20252.05003/03/2020 1,008,520.00 Aaa459058HV8 1,702 2,004,853.362,016,470.002,000,000.002,004,896.13Subtotal and Average 1.820 1,337 Treasury Securities - Coupon 1.501U.S. TREASURY40000 1,000,000.00 1,000,079.47 06/30/20201.62511/28/2016 1,001,210.00 Aaa912828XH8 29 1.919U.S. TREASURY40001C 1,000,000.00 1,000,645.91 08/31/20212.00002/21/2017 1,022,540.00 Aaa912828D72 456 2.348U.S. TREASURY40002 1,000,000.00 998,551.98 07/31/20212.25002/12/2018 1,023,870.00 Aaa912828WY2 425 2.510U.S. TREASURY40003 1,000,000.00 996,715.74 07/31/20212.25006/04/2018 1,023,870.00 Aaa912828WY2 425 2.584U.S. TREASURY40004 1,000,000.00 998,146.34 03/15/20212.37506/25/2018 1,017,190.00 Aaa9128284B3 287 Portfolio CITY AP Run Date: 06/05/2020 - 15:28 PM (PRF_PM2) 7.3.0 9.a Packet Pg. 249 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly YTM 360 Page 3 Par Value Book Value Maturity Date Stated RateMarket Value May 31, 2020 Portfolio Details - Investments Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date 4,994,139.445,088,680.005,000,000.004,993,937.89Subtotal and Average 2.172 324 Certificates of Deposit 1.7261ST TECHNOLOGY FEDERAL CREDIT80034 248,000.00 248,000.00 06/30/20211.75006/30/2016 251,118.3533715LAD2 394 2.022AMERICAN EXPRESS CENTURION BK80038 247,000.00 247,000.00 12/01/20212.05012/01/2016 252,967.5202587DM70 548 2.170BMW BANK80041 247,000.00 247,000.00 02/24/20222.20002/24/2017 254,840.3505580AGK4 633 2.614CAPITAL ONE NATIONAL ASSOC80054 247,000.00 247,000.00 05/30/20242.65005/30/2019 270,275.5814042RLW9 1,459 2.860CITI BANK SALT LAKE CITY UTAH80043 246,000.00 246,000.00 05/24/20212.90005/23/2018 251,617.3917312QM22 357 2.712COMENITY CAPITAL BANK80052 249,000.00 249,000.00 04/15/20242.75004/29/2019 272,847.5520033AU61 1,414 2.416EAGLE BANK80053 249,000.00 249,000.00 05/24/20222.45005/24/2019 259,798.6127002YEP7 722 1.825CAPITAL ONE BANK USA NATL80026 248,000.00 248,000.00 06/03/20201.85006/03/2015 248,058.16140420RT9 2 3.107GOLDMAN SACHS GROUP INC.80046 245,000.00 245,000.00 01/17/20233.15001/16/2019 263,841.1938148P4B0 960 2.910MEDALLION BANK80044 249,000.00 249,000.00 06/04/20212.95006/04/2018 254,821.0758404DCA7 368 2.860MORGAN STANLEY BANK80042 246,000.00 246,000.00 05/10/20212.90005/10/2018 251,399.1161747MX63 343 3.008MORGAN STANLEY PRIVATE BANK80048 246,000.00 246,000.00 01/31/20243.05001/31/2019 271,077.5461760AVF3 1,339 2.564MORGAN STANLEY PRIVATE BANK80055 247,000.00 247,000.00 06/13/20242.60006/13/2019 270,047.0561760AG52 1,473 2.712NORTHWESTERN BANK80049 245,000.00 245,000.00 02/13/20232.75002/13/2019 261,686.90668015AL4 987 2.712OXFORD BANK & TRUST80051 245,000.00 245,000.00 06/28/20222.75002/28/2019 257,868.6369140WAS4 757 2.022STEARNS BANK80039 249,000.00 249,000.00 01/13/20222.05001/13/2017 255,630.99857894SK6 591 1.677SYNCHRONY BANK80036 247,000.00 247,000.00 10/21/20211.70010/21/2016 251,058.5387165FNC4 507 2.959TIAA FSB80050 245,000.00 245,000.00 02/22/20243.00002/22/2019 269,950.7887270LBU6 1,361 2.959UBS FINANCE COMMERCIAL PAPER80045 249,000.00 249,000.00 06/14/20213.00006/13/2018 255,108.6490348JCU2 378 2.022WASHINGTON FIRST BK RESTON80040 247,000.00 247,000.00 02/23/20222.05002/23/2017 254,177.52940727AH3 632 3.156WELLS FARGO BK NA80047 500,000.00 500,000.00 01/18/20243.20001/18/2019 553,401.30949763WU6 1,326 1.301WELLS FARGO BANK20033 250,000.00 250,000.00 06/28/20201.30106/28/2018 250,000.001611507847 27 1.726WELLS FARGO BANK80033 249,000.00 249,000.00 06/17/20211.75006/17/2016 251,849.439497485W3 381 5,940,000.006,233,442.195,940,000.006,076,000.00Subtotal and Average 2.466 761 Money Market Funds 0.059WELLS FARGO GOVT MONEY MARKET20002 6,605,108.94 6,605,108.94 0.0606,605,108.94SYS20002 1 6,605,108.946,605,108.946,605,108.943,540,223.75Subtotal and Average 0.059 1 121,989,860.63 138,815,722.44 1.523 340139,973,126.22 138,861,091.34Total and Average Portfolio CITY AP Run Date: 06/05/2020 - 15:28 PM (PRF_PM2) 7.3.0 9.a Packet Pg. 250 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly YTM 360 Page 4 Par Value Book Value Stated RateMarket Value May 31, 2020 Portfolio Details - Cash Average BalanceIssuer Portfolio Management CITY OF SAN BERNARDINO Days to MaturityMoody'sCUSIPInvestment # Purchase Date 0.00 121,989,860.63 138,815,722.44 1.523 340 0 21,884.72 21,884.72 21,884.72 21,884.72 Subtotal Accrued Interest at PurchaseAverage Balance 139,995,010.94 138,882,976.06Total Cash and Investments Portfolio CITY AP Run Date: 06/05/2020 - 15:28 PM (PRF_PM2) 7.3.0 9.a Packet Pg. 251 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly Page 1 Stated Rate Transaction Date May 1, 2020 through May 31, 2020 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 21,750,000.001.363 750,000.00SYS 750,000.00 68,780,949.29Subtotal21,750,000.00 Managed Pool Accounts (Monthly Summary) CALTRUST GOVT INVESTMENT FUND20008 5.111.040 0.0020008 0.00 1,774.21Subtotal5.11 Corporate Notes 11,106,516.06Subtotal Federal Agency Issues - Coupon FEDERAL HOME LOAN MORTGAGE CRP30520 0.001.375 05/01/2020 1,000,000.003137EADR7 FEDERAL HOME LOAN MORTGAGE CRP30543C 0.002.500 05/22/2020 1,000,723.013134GTNN9 2,000,723.01 39,427,750.04Subtotal0.00 Supranationals 2,004,853.36Subtotal Treasury Securities - Coupon 4,994,139.44Subtotal Certificates of Deposit J.P. MORGAN CHASE & CO80037 0.001.800 05/18/2020 248,000.0048126XLB9 248,000.00 5,940,000.00Subtotal0.00 Money Market Funds (Monthly Summary) WELLS FARGO GOVT MONEY MARKET20002 11,675,402.620.060 8,413,072.74SYS20002 8,413,072.74 6,605,108.94Subtotal11,675,402.62 138,861,091.34Total11,411,795.7533,425,407.73 Portfolio CITY AP Run Date: 06/05/2020 - 15:28 PM (PRF_PM3) 7.3.0 Report Ver. 7.3.3b 9.a Packet Pg. 252 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly Page 1 May 2019 through May 2020 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 128,886,141.21May201985 745 3021.353 1.372 2.450 3 5 124,896,967.11June201977 669 3021.301 1.319 2.449 1 9 102,169,953.51July201976 792 3482.076 2.105 2.379 0 2 100,006,961.73August201973 782 3401.984 2.012 2.341 0 3 94,603,560.06September201969 795 3441.971 1.998 2.280 0 4 91,198,209.04October201976 960 4741.957 1.985 2.190 7 0 96,737,190.19November201974 869 4301.945 1.972 2.103 0 2 104,414,539.79December201978 846 4521.942 1.969 2.043 6 2 116,512,135.33January202085 826 4561.903 1.929 1.967 7 0 123,735,583.62February202088 831 4671.870 1.896 1.912 3 0 117,383,961.74March202092 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 Average 112,019,640.37 1.793%1.818%2.066 3 3 805 40180 Portfolio CITY AP Run Date: 06/05/2020 - 15:28 PM (PRF_PM4) 7.3.0 Report Ver. 7.3.3b 9.a Packet Pg. 253 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly Page 1 May 2019 through May 2020 Distribution of Investments By Type Portfolio Management CITY OF SAN BERNARDINO AverageJuneMayJuly 2019 2019 by Period SeptemberAugust October 2019 2019 DecemberNovember January 2019 2020 February April 2020 2020 May 2020Security Type March 2020201920192019 0.3 0.40.3State Local Agency Investment Fund 23.7 24.60.4 35.8 34.832.5 32.4 40.935.2 49.5 23.9% 57.3 49.552.4Managed Pool Accounts 25.7 13.049.9 6.7 4.210.7 1.5 20.8% 0.20.2Negotiable CD's - Bank Corporate Notes 4.4 5.8 7.84.2 9.5 9.58.2 8.0 4.4% 32.6 37.937.8Federal Agency Issues - Coupon 38.9 45.837.8 41.0 39.341.1 42.9 35.539.4 28.4 38.3% Supranationals 0.9 1.7 1.70.8 1.4 0.5% 4.0 4.93.9Treasury Securities - Coupon 5.3 5.55.0 4.8 4.35.2 4.3 4.34.0 3.6 4.5% 5.4 7.05.2Certificates of Deposit 6.5 6.86.7 5.9 5.36.4 5.3 5.35.0 4.3 5.8% Treasury Discounts -Amortizing Money Market Funds 3.4 3.9 2.95.8 4.8 1.6% 0.2 0.20.2Certificate Deposit-2 0.3 0.1% Negotiable CDs -3 Portfolio CITY AP Run Date: 06/05/2020 - 15:28 PM (PRF_PM5) 7.3.0 Report Ver. 7.3.3b 9.a Packet Pg. 254 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly Page 1 May 31, 2020 Interest Earnings Summary Month EndingMay 31 Fiscal Year To Date Portfolio Management CITY OF SAN BERNARDINO CD/Coupon/Discount Investments: 64,395.86Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 289,135.44 ( 249,826.90) 1,018,588.49 296,954.62 ( 251,377.34) 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 103,704.40 -1,550.78 -723.01 1,064,165.77 -4,326.09 5,688.21 101,430.61 1,065,527.89 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: 1.60Interest Collected Plus Accrued Interest at End of Period Less Accrued Interest at Beginning of Period 581,205.95 ( 505,707.26) 768,000.21 581,205.95 ( 580,492.11) Interest Earned during Period 75,500.29 768,714.05 Total Interest Earned during Period Total Adjustments from Premiums and Discounts Total Capital Gains or Losses Total Earnings during Period 179,204.69 -1,550.78 -723.01 1,832,879.82 -4,326.09 5,688.21 176,930.90 1,834,241.94 Portfolio CITY AP Run Date: 06/05/2020 - 15:28 PM (PRF_PM6) 7.3.0 Report Ver. 7.3.3b 9.a Packet Pg. 255 Attachment: FN. Investment Portfolio Summary Report May 2020- ATTACHMENT #1 (6778 : Monthly Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Paul Espinoza, Finance Director Subject: Agreement with R.T. Desai & Associates for Accounting Consultant Services Recommendation Adopt Resolution No. 2020-125 of the Mayor and City Council of the City of San Bernardino, California, approving the Professional Services Agreement between the City of San Bernardino and consultant R.T. Desai & Associates for accounting services in the amount of $150,000 and authorizing the City Manager, or designee, to execute the agreement. Background R.T. Desai & Associates has assisted the City of San Bernardino for four years with its accounting responsibilities due to a number of vacancies within the department. Employee turnover within the Finance department has caused a backlog of tasks required to be completed by a professional accountant. Recent staff departures of the Senior Finance Specialist and the Accountant III in the Finance Department necessitate the continuation of the agreement with R.T. Desai & Associates. In addition to the professional accounting assistance that R.T. Desai & Associates will provide to Finance, the consultant will also provide accounting and analytical services to both Public Works and Community Development. Finance Department related tasks include preparation of financial records for audits, financial statement preparation, bank reconciliation and other general high level accounting duties. On February 1, 2016 the Mayor and City Council authorized a Professional Services Agreement between the City of San Bernardino and R.T. Desai & Associates in an amount not to exceed $80,850 for accounting consulting services. That agreement expired June 30, 2016. On June 20, 2016 the Mayor and City Council authorized a new 12-month Professional Services Agreement, effective July 1, 2016, between the City of San Bernardino and R.T. Desai & Associates in an amount not to exceed $90,000 for accounting consulting services. Also approved previously by the Mayor and City Council were the following contract amendments: not to exceed $100,000 on May 15, 2017, not to exceed $150,000 on April 18, 2018 and a 15 -month contract not to exceed $175,000 on April 3, 2019. It is also important to note that the contractor has not raised rates since the original contract approval in 2016. The agreement under consideration provides an update of the terms and conditions of the original agreement and the prior 3 10 Packet Pg. 256 6765 Page 2 amendments. It should be noted that this agreement will bring the compensation total for the consultant to $665,000 since February 2016. Discussion Since 2014, the Finance Department has seen the turnover of twenty-two employees. The Accounting Division has seen some of the highest turnover in recent years and has prevented the City from making improvements in it processes and procedures. The City recently hired a new Accounting Manager, and along with the Account III and R.T. Desai & Associates, was able to successfully implement a methodology in reviewing the collectability of notes receivable and receive an unmodified opinion on the City’s FY2019 financial statements. This represents a significant step forward in the Cit y’s financial reporting. With the recent departures of the Senior Finance Specialist and Account III, the department requires the professional level resources that can be successfully filled by the consultant R.T. Desai & Associates though their nearly 5 year relationship with the City. During its time with the City, R.T. Desai & Associates was able to assist the City in correcting the four areas where modified audit opinions were previously rendered: Governmental Activities, Major Federal & State Grants Special Revenue Fund, Major Low and Moderate Income Housing Special Revenue Fund, and Aggregate Remaining Fund Information. The reasoning for the modified opinions was the fact that the City had not adopted a methodology for reviewing the collectability of notes receivable, primarily related to the former Redevelopment Agency (RDA) and Housing Division. R.T. Desai & Associates has been performing the duties of an Independent Contractor for the Finance Department under its existing contract since February 2016. During that time it has been instrumental in providing the required accounting assistance that has enabled the City to become current on all of its financial reporting obligations. That additional assistance remains necessary at this time as key vacancies continue in the Accounting Division. Over the past several years the City’s auditors have expressed concern at the City’s ability to retain qualified staff. Being able to retain the services of a high performing accounting professional is extremely important to the City during the current economic climate. The Finance Department has significant needs in the Accounting Division in order to complete annual audits and ensure compliance with Generally Accepted Accounting Principles (GAAP) and the Governmental Accounting Standards Board (GASB). Additionally, there is substantial work to be completed to implement the process changes required in accordance with the City’s audit findings and to help implement other best practices that need to occur wit hin the Finance Department. The Finance Department requests a twelve (12) month agreement effective July 1, 2020 - June 30, 2021. The consultant agreement will provide an update between the city and consultant on a large number of terms and conditions to reflect the updated liability requirements for all of the City’s professional service consultants. 2020-2025 Strategic Targets and Goals Approval of the proposed agreement aligns with Key Target No. 1: Financial Stability by 10 Packet Pg. 257 6765 Page 3 continuing to provide the City with qualified accounting services that will maintain internal controls and ensure compliance with best practices throughout the Finance Department. Fiscal Impact The total cost to the City for the amendment is a not to exceed amount of $150,000. There are sufficient resources in the FY 2020/21 Proposed Budget to fund these charges in account No: 001-120-0039*5502. Additionally, if vacancies remain, salary savings will fund this contract until positions can be filled. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-125, approving the Professional Services Agreement between the City of San Bernardino and consultant R.T. Desai & Associates for accounting services in the amount of $150,000; and authorizing the City Manager, or designee, to execute the agreement. Attachments Attachment 1 Resolution 2020-125; Exhibit “A” - Agreement with RT Desai and Associates Attachment 2 June 20, 2016 Consulting Services Agreement Ward: All Synopsis of Previous Council Actions: April 3, 2019 Mayor and City Council adopted Resolution No. 2019-53 10 Packet Pg. 258 RESOLUTION NO. 2020-125 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND R.T. DESAI AND ASSOCIATES FOR PROFESSIONAL ACCOUNTING SERVICES; AND AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AGREEMENT WHEREAS, on April 3, 2019, the Mayor and City Council authorized a Professional Services Agreement Amendment No. 3 between the City of San Bernardino and R.T. Desai & Associates in an amount not to exceed $515,000 for accounting consulting services; and WHEREAS, the City of San Bernardino has determined that significant needs remain in the Accounting section of the Finance Department and professional accounting consulting services from R.T. Desai & Associates are required and in the best interest of 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 Manager is hereby authorized to execute the professional services agreement with R.T. Desai & Associates to continue to provide assistance to the Finance Department, as well as Public Works, and Community Development, in a not to exceed amount of $150,000 for the period of July 1, 2020 through June 30, 2021. SECTION 3. The Director of Finance or designee is hereby authorized to increase the purchase order issued to R.T. Desai & Associates by $150,000. 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 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. 10.a Packet Pg. 259 Attachment: Ronak Desai Contract 2020- RESOLUTION. ATTACHMENT #1 [Revision 1] (6765 : Agreement with R.T. Desai & Associates for Resolution No. 2020-125 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this 17th day of June 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 10.a Packet Pg. 260 Attachment: Ronak Desai Contract 2020- RESOLUTION. ATTACHMENT #1 [Revision 1] (6765 : Agreement with R.T. Desai & Associates for Resolution No. 2020-125 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 10.a Packet Pg. 261 Attachment: Ronak Desai Contract 2020- RESOLUTION. ATTACHMENT #1 [Revision 1] (6765 : Agreement with R.T. Desai & Associates for 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND R.T. DESAI & ASSOCIATES This Agreement is made and entered into as of June 17, 2020 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 R.T. DESAI & ASSOCIATES, A SOLE PROPRIETORSHIP with its principal place of business at 1913 E 17th Street, Unit 116, Santa Ana, CA 92705 (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: As needed professional accounting services (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 “A.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $150,000. This amount is to cover all related costs, and the City will not pay any additional fees for printing expenses. Consultant may submit invoices 10.b Packet Pg. 262 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 2 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. 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.b Packet Pg. 263 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 3 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. 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 10.b Packet Pg. 264 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 4 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. (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 10.b Packet Pg. 265 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 5 (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 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: 10.b Packet Pg. 266 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 6 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. (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. 10.b Packet Pg. 267 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 7 (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. (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. 10.b Packet Pg. 268 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 8 (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 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 10.b Packet Pg. 269 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 9 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. If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. 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 10.b Packet Pg. 270 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 10 other than the charges or portions thereof which are specified herein. Consultant shall not be 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 Ronak Desai 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: 10.b Packet Pg. 271 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 11 CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: Paul Espinoza, Finance Director With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney CONSULTANT: R.T. Desai and Associates 1913 E 17th Street, Unit 116 Santa Ana, CA 92705 Attn: Ronak Desai 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 are 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 consent 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 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 10.b Packet Pg. 272 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 12 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 writing 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] 10.b Packet Pg. 273 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 13 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND R.T. DESAI & ASSOCIATES IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Teri Ledoux City Manager Approved as to Form: Sonia Carvalho City Attorney Attested By: Genevieve Rocha, CMC, Acting City Clerk CONSULTANT Signature Name Title 10.b Packet Pg. 274 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant 14 EXHIBIT A SCHEDULE OF CHARGES: Consultant shall be compensated at a rate of $120 per hour, with a not to exceed amount of $150,000 under this 12 month term agreement. SCOPE OF WORK: The tasks assigned include preparation of financial records for audits, financial statement preparation and general high level accounting duties as needed. 10.b Packet Pg. 275 Attachment: F.N. Ronak Desai Agreement 2020. ATTACHMENT #2 (6765 : Agreement with R.T. Desai & Associates for Accounting Consultant Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Rebekah Kramer, Assistant City Manager Subject: First Amendment to the Professional Services Agreement with Barboza & Associates Recommendation Adopt Resolution 2020-126 of the Mayor and City Council of the City of San Bernardino, California, approving the First Amendment to the Professional Services Agreement between the City of San Bernardino and Barboza & Associates for workplace investigation services. Background On February 20, 2020, the City entered into a Professional Services Agreement with Barboza & Associates (B&A) in the amount of $50,000 pursuant to Section 3.04.085(A) of the Municipal Code. B&A is investigating allegations made by former employees against Mayor John Valdivia for harassment and other misconduct. Since the investigation began, additional complainants have come forward, requiring the City to expand the original scope of work. Discussion Allegations of harassment and other misconduct against Mayor John Valdivia and the City of San Bernardino were brought forward in January 2020. When allegations are made, conducting a thorough investigation is critical. The California Fair Employment and Housing Act (“FEHA”) imposes an affirmative legal obligation on employers to take all reasonable steps necessary to prevent discrimination and harassment from occurring in the workplace. Satisfying this obligation requires employers to investigate complaints of discrimination or harassment. Additionally, the Equal Employment Opportunity Commission (“EEOC”) imposes a duty to investigate complaints of harassment. Finally, the City’s Policy on Non-Discrimination, Retaliation, Workplace Harassment, and Sexual Harassment also requires an investigation to be conducted. Given that the allegations that have been made involve an elected official, this case was assigned to Liebert, Cassidy and Whitmore (LCW), one of the City’s outside providers of specialized legal services pertaining to employment relations and personnel matters. The determination was made to retain an outside independent investigator and five potential investigators with experience handling thes e types of investigations were contacted. Upon review of qualifications and availability of the responsive investigators, 11 Packet Pg. 276 6754 Page 2 Carla Barboza of B&A was selected to conduct the investigation. She is based in Southern California and brings with her thirty (30) years of experience handling employment matters. When B&A was retained, only two former employees had come forward with allegations. It was estimated at the time, $50,000 would be sufficient to complete a thorough and impartial investigation. During a press conference held on February 27, 2020, three additional individuals came forward with allegations against the Mayor. The proposed amendment is required to ensure all complaints are investigated thoroughly as required by the law and City policy. Fiscal Impact Approval of the first amendment to the agreement with Barboza & Associates in the amount of $18,000 for a total contractual allowance not to exceed $68,000 will have no impact to the General Fund as professional contractual services for investiga tions were included in the adopted FY 2019/20 operating budget split between Administration (account number 001-110-0001-5502) and the Liability Fund (account number 629 -110- 0056-5502). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2020-95, approving the First Amendment to the Professional Services Agreement between the City of San Bernardino and Barboza & Associates for workplace investigation services. Attachments Attachment 1 Resolution 2020-126; Exhibit “A” - First Amendment Attachment 2 Original Agreement dated February 20, 2020 Ward: All Synopsis of Previous Council Actions: N/A 11 Packet Pg. 277 RESOLUTION NO. 2020-126 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CIY OF SAN BERNARDINO AND BARBOZA AND ASSOCIATES FOR WORKPLACE INVESTIGATION SERVICES WHEREAS, on February 20, 2020, the City entered into a Professional Services Agreement with Barboza and Associates in the amount of $50,000; and WHEREAS, Barboza & Associates is investigating allegations made against Mayor John Valdivia of harassment and other misconduct; and WHEREAS, when allegations are made, conducting a thorough investigation is critical and the City must take all reasonable necessary steps to prevent discrimination and harassment from occurring in the workplace; and WHEREAS, when Barboza & Associates was retained, it was estimated that $50,000 would be sufficient to complete a thorough and impartial investigation; and WHEREAS, three additional individuals have come forward with allegations against the Mayor; and WHEREAS, this amendment is required to ensure all complaints are investigated thoroughly as required by law and City policy; and WHEREAS, the Human Resources Department budget includes funds for investigative 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 is hereby authorized and directed to execute the First Amendment to the agreement for workplace investigative services between Barboza & Associates and the City of San Bernardino, a copy of which is attached hereto marked Exhibit A and incorporated herein. SECTION 3. The Director of Finance or designee is hereby authorized to amend the Purchase Order to Barboza and Associates for a total amount not to exceed $68,000 for FY 2019/20. 11.a Packet Pg. 278 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.RESOLUTION (6754 : First Amendment Resolution No. 2020-126 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 attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 11.a Packet Pg. 279 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.RESOLUTION (6754 : First Amendment Resolution No. 2020-126 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 11.a Packet Pg. 280 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.RESOLUTION (6754 : First Amendment EXHIBIT A FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH BARBOZA & ASSOCIATES This First Amendment (“First Amendment”) to the Professional Services Agreement dated February 20, 2020 is made and entered into by and between the CITY OF SAN BERNARDINO (“CITY”) and Barboza & Associates (“Consultant”) as of the last date set forth below. 1. Consultant is performing workplace investigation services under the Agreement. Now, the CITY and Consultant wish to amend the Agreement to increase the purchase order by $18,000. 2. Section 4(b) of the Agreement is hereby amended in its entirety to read as follows: “In no event shall the total amount paid for services rendered by Consultant under this First Amendment exceed the sum of $68,000. 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 (45) days from the date the 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.” 3. Except as modified by this First Amendment, all provisions of the Agreement shall remain in full force and effect for the term thereof. 4. This First Amendment may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. [SIGANTURES ON FOLLOWING PAGE] 11.b Packet Pg. 281 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.EXHIBIT A (6754 : First Amendment to EXHIBIT A SIGNATURE PAGE FOR FIRST AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH BARBOZA & ASSOCIATES Dated: _____, 2020 BARBOZA & ASSOCIATE By: Carla D. Barboza Its: President Dated: _____, 2020 CITY OF SAN BERNARDINO By: Teri Ledoux Its: City Manager 11.b Packet Pg. 282 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.EXHIBIT A (6754 : First Amendment to 11.c Packet Pg. 283 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 284 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 285 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 286 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 287 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 288 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 289 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 290 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 291 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 292 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 293 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 294 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First 11.c Packet Pg. 295 Attachment: HR.First Amendment to the Professional Services Agreement with Barboza & Associates.ATTACHMENT #2 (6754 : First Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Rebekah Kramer, Assistant City Manager Subject: Risk Management Insurance Program Fiscal Year 2020/21 Recommendation Adopt Resolution No. 2020-131 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to purchase both a 30 -day extension to the current excess liability policies for the extended term of coverage through July 31, 2020 for the premium amount of $47,509 and excess workers’ compensation insurance through Public Risk Innovation, Solutions, and Management (PRISM) formerly California State Associate of Counties Excess Insurance Authority (CSAC-EIA) premium quote in the amount of $384,275. Background On June 19, 2019, the Mayor and City Council adopted Resolution 2019 -68 authorizing the City Manager to purchase excess workers’ compensation (EWC) insurance with California State Association of Counties Excess Insurance Authority (CSAC -EIA) insurance pool and purchase stand-alone commercial coverage for excess liability insurance for Fiscal Year (FY) 2019/20. On July 17, 2019, the Mayor and City Council adopted Resolut ion 2019-176 authorizing the City Manager to purchase the City’s property, difference in conditions, and cyber security insurance for Fiscal Year (FY) 2019/20. Excess Workers’ Compensation Insurance The City purchases excess workers’ compensation insurance to protect against catastrophic injury to City employees. Excess workers’ compensation insurance was purchased through CSAC-EIA, which uses pool purchasing power to achieve broad coverage for the lowest rates available. CSAC-EIA’s program is the largest pool in the nation and their excess workers’ compensation program provides services to 95 percent of the counties and 70 percent of the cities in California. The City’s current excess workers’ compensation coverage has a $1 million SIR with a limit remaining at statutory coverage. Statutory coverage provides payment for claims up to the amount required by law, without limits. The program has a $5 million pooled limit and statutory reinsurance coverage for each accident. FY 2019/20 premium for coverage was a total of $364,881. 12 Packet Pg. 296 6763 Page 2 Excess Liability Insurance The City purchases excess liability insurance to protect against catastrophic incidents: bodily injury, property damage, personal injury, public officials’ errors and omissions liability, and employment practices liability. The City’s current excess liability insurance is stand-alone commercial coverage with the following carriers Allied, Arch, Berkeley and Hallmark, the coverage is layered to provide the City a larger limit of coverage. Coverage was negotiated and secured by the City’s property and liability broker Aon, a leading global professional services firm providing a broad range of insurance solutions that has been in business for over 30 years. The City’s current excess liability insurance coverage has a $5 million SIR with a limit of $35 million. The FY 2019/20 premium for coverage was a total of $581,275. Commercial Property The City purchases commercial property insurance to cover for direct physical loss or damage to City property. The current commercial property insurance is with Travelers Insurance. The policy coverage provides a $50 million dollar limit per occurrence with a $100,000 dollar deductible for all risks with the exception of DIC deductibles ranging from $100,000 to $250,000, total premium for coverage was $621,097 for FY 2019/20. Difference in Conditions (Earthquake and Flood) The City purchases difference in conditions (DIC) insurance to protect against direct physical loss of or damage to City property caused by or resulte d from a covered cause of loss such as earthquakes and flooding. The City’s current difference in conditions coverage is through the following carriers Westchester Specialty, Endurance Insurance Company, Evanston Insurance Company and Arch, the coverage is layered to provide a $20 million dollars limit. Coverage was negotiated and secured by the City’s property and liability broker Aon, FY 2019/20 premium for coverage was a total of $328,640. Cyber Liability The City purchases cyber liability insurance for reimbursement coverage in response to data privacy security incidents, business interruption, system failure, digital access protection, network security, cyber extortion, and media liability. The current cyber liability carrier is Chubb; the policy provides a $2 million dollar limit. Total premium for coverage was $47,974 for FY 2019/20. Discussion Staff is working with the City’s current liability insurance broker Aon to evaluate various policy limits and self-insured retention options to find excess liability coverage in the current insurance marketplace on behalf of the City. The current market presently has faced many obstacles such as capacity restrictions meaning there are fewer firms 12 Packet Pg. 297 6763 Page 3 writing policies for public agencies and those that are writing are doing so for less coverage, perceived jury verdicts for police-related claims, and the current uncertainty that COVID-19 has created worldwide exacerbated insurance market conditions. The City’s broker Aon and staff have submitted requests for quo tes to our current insurance carriers and a variety of other carriers to explore and review available options for excess liability, commercial property, and cyber liability. Allied the City’s current excess liability insurance carrier has made the determination that it will not renew coverage for the City in FY 2020/21. Allied provides the City excess liability insurance coverage in the amount of $5 million for the first layer of insurance available to the City beyond the current self -insured retention rate of $5 million. Instead, what Allied has offered is a 30-day extension of our existing policy to allow the City an opportunity to secure other coverage. The City’s three additional excess carriers have followed Allied’s lead and have also agreed to provide the City a 30-day extension of the existing policies. The total cost for the 30 -day extensions is $47,509. The following is a breakdown of the pro-rata fee to extend our existing policies through July 31, 2020, which will allow the City to secure excess liability insurance coverage. Allied Excess Liability Insurance Carrier - 1st Layer ($5 - $10 million): $21,985 Hallmark Excess Liability Insurance Carrier - 2nd Layer ($10 - $15 million): $8,463 Berkley Excess Liability Insurance Carrier - 3rd Layer ($15 - $25 million): $12,300 Arch Excess Liability Insurance Carrier - 4th Layer ($25 - $35 million): $4,761 Staff has conducted thorough research and analyses on workers’ compensation coverage for the City and the San Bernardino Municipal Water Departm ent (SBMWD). It should be noted SBMWD will only be included in excess workers’ compensation coverage at this time as they have alternative excess liability coverage. The City has directly worked with the pooled carrier PRISM, formerly CSAC-EIA, to secure excess workers’ compensation insurance coverage for both the City of San Bernardino and SBMWD. The premium quote for excess workers’ compensation insurance with PRISM is $384,275 for FY 2020/21. In July, staff will bring back renewal options and costs fo r excess liability insurance, commercial property insurance, and cyber liability options for consideration. At this time, after the stay-at home orders associated with COVID-19, we have received the indication that excess liability insurance coverage could cost upwards of $1.5 million in FY 2020/21. Preliminary estimates have not been received for the commercial property insurance and cyber liability insurance coverage; however, these policies do not renew until August 1, 2020. A re-evaluation of various self-insured retention rates, levels of excess liability insurance, and difference in conditions insurance options is necessary to ensure the City’s risk insurance programs continues to meet the City’s needs both from a cost-containment standpoint and so that appropriate levels of coverage are secured for the City. 2020-2025 Key Strategic Targets and Goals The resolution authorizes the City Manager to purchase both a 30-day extension with the current excess liability policies and excess workers’ compensation insurance 12 Packet Pg. 298 6763 Page 4 through Public Risk Innovation, Solutions, and Management (PRISM) aligns with Goal No. 1: Financial Stability. Fiscal Impact The cost for a 30-day extension through July 31, 2020 for excess liability coverage and excess workers’ compensation premiums is $431,784 for Fiscal Year (FY) 2020/21. Sufficient funding is included in the proposed FY 2020/21 Operating Budget for the cost of the premiums in accounts 629-110-0056*5161 (liability) and 678-110-0057*5161 (workers’ compensation). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-131 authorizing the City Manager to purchase both a 30-day extension to the current excess liability policies for the extended term of coverage through July 31, 2020 for the premium amount of $47,509 and excess workers’ compensation insurance through Public Risk Innovation, Solutions, and Management (PRISM) formerly California State Associate of Counties Excess Insurance Authority (CSAC-EIA) for the premium quote amount of $384,275. Attachments Attachment 1 Resolution 2020-131 Attachment 2 PRISM Excess Workers’ Compensation Quote Attachment 3 EWC Memorandum of Understanding Attachment 4 Aon 30-Day Extension Letter Ward: n/a Synopsis of Previous Council Actions: June 20, 2019 Mayor and City Council adopted Resolution 2019 -68 authorizing the City Manager enter into California State Association of Counties Excess Insurance Authority (CSAC-EIA) insurance pool for excess workers’ compensation insurances and to purchase stand-alone commercial coverage for excess liability insurance with Aon. July 17, 2019 Mayor and City Council adopted Resolution 2019-176 authorizing the City Manager to purchase the City’s property, auto, terrorism, difference in conditions, and cyber security insurance policy term July 31, 2019 to July 31, 2020 for Fiscal Year (FY) 2019-2020. 12 Packet Pg. 299 RESOLUTION NO. 2020-131 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO PURCHASE BOTH A 30-DAY EXTENSION TO THE CURRENT EXCESS LIABILITY POLICIES FOR THE EXTENDED TERM OF COVERAGE THROUGH JULY 31, 2020 FOR THE PREMIUM AMOUNT OF $47,509 AND EXCESS WORKERS’ COMPENSATION INSURANCE THROUGH THE PUBLIC RISK INNOVATION, SOLUTIONS AND MANAGEMENT (PRISM) FORMERLY CALIFORNIA STATE ASSOCATION OF COUNTIES EXCESS INSURANCE AUTHORITY (CSAC-EIA) FOR THE PREMIUM QUOTE IN THE AMOUNT OF $384,275 WHEREAS, on June 19, 2019 the Mayor and City Council adopted Resolution No. 2019-68, authorizing the City Manager to purchase excess workers’ compensation (EWC) insurance with California State Association of Counties Excess Insurance Authority (CSAC- EIA) and stand-alone commercial coverage for excess liability insurance for Fiscal Year 2019/20; and WHEREAS, the City’s current excess liability insurance carrier has made the determination that it will not renew coverage for the City; and WHEREAS, the City’s liability insurance carriers have agreed to provide the City a 30- day extension of the existing policies; and WHEREAS, staff has conducted thorough research and analyses on workers’ compensation coverage for the City; and WHEREAS, staff will bring back renewal options and costs for excess liability insurance, commercial property insurance, cyber liability options for consideration. 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 purchase a 30-day extension to the current excess liability policies for the extended term coverage through July 31, 2020 for the premium amount of $47,509. SECTION 3. The City Manager is hereby authorized to purchase excess workers’ compensation insurance through Public Risk Innovation, Solutions, and Management (PRISM) for the premium quote in the amount of $384,275. 12.a Packet Pg. 300 Attachment: HR.Risk Management Insurance Program.Resolution.doc (6763 : Risk Management Insurance Program Fiscal Year 2020/21) Resolution No. 2020-131 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 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 Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 12.a Packet Pg. 301 Attachment: HR.Risk Management Insurance Program.Resolution.doc (6763 : Risk Management Insurance Program Fiscal Year 2020/21) Resolution No. 2020-131 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 12.a Packet Pg. 302 Attachment: HR.Risk Management Insurance Program.Resolution.doc (6763 : Risk Management Insurance Program Fiscal Year 2020/21) SBERC City of San Bernardino CSAC Excess Insurance Authority 2020/21 Early Budget Estimates, March 2020 0 This third round of early estimates have been prepared to further aid you in budgeting for the 2020/21 fiscal year. At this time, updated estimates are being provided for all major programs. Since the December version: (1) The budget estimates have been updated with actuarial rates for the pooled layers; (2) The reinsurance rates were updated where we have proposals; and (3) We have incorporated more accurate administrative budget numbers. While the estimates provided are more refined from the previous version, they contain a range if there are still outstanding items specific to the program. The estimates are intended to be conservative; however, there may be a chance that final numbers will come in higher than the assumptions currently in place. For this reason we recommend continuing to budget toward the high end of the estimate range if one is provided. If you are aware that you have had any substantial changes over the past 12 months, please contact Brian Kelley and a better estimate will be developed for you $70,332,997 $70,522,976 The EWC premium projections have been updated to reflect your entity’s estimated 2020/21 exposure, as provided on your renewal application, as well as losses based on the June 30, 2019 data collection. Since the December estimate, we have updated the projected program administrative costs and received and updated the pool and reinsurance rates. Pool rates have changed from last year as follows: • County rates are flat on average • Low Safety rates are down 7.25% on average • High Safety rates are up 1% on average • School rates are up 3.5% on average Reinsurance Premiums changed from last year as follows: • Ace layer ($45m x $5M - Core Tower) - pending proposals, estimated 17.5% increase • Liberty Mutual layer ($50M to Statutory - Core Tower) - pending proposals, estimated 11% increase • Safety National layer ($2.5M to Statutory - Ed Tower) - No rate change The estimates have become more accurate; however, we are still pending the finalization of some miscellaneous fees. To remain somewhat conservative at this point, the estimates were rounded up to the nearest $1,000. We will distribute final premium numbers in June once the nominal fees are finalized. If you have directed us to apply the 2018/19 payroll audit to your 2020/21 premium, it has been included in the total collection shown. If you have decided to handle the payroll audit outside of your renewal premium, the estimated premium shown is the estimated total collection. Premium $373,000 Excess Workers' Compensation Program 2018/19 Estimated Payroll: 2019/20 Estimated Payroll: $291,570 $305,68619/20 Premium: 18/19 Premium: 20/21 Estimated Premium:2020/21 Estimated Payroll: $76,815,625 Payroll Audit: $11,275 Estimated Collectible:$384,275 12.b Packet Pg. 303 Attachment: HR.Risk Management Insurance Program.ATTACHMENT 2 (6763 : Risk Management Insurance Program Fiscal Year 2020/21) SBERC City of San Bernardino CSAC Excess Insurance Authority 2020/21 Early Budget Estimates, March 2020 0 The program is in the first year of a 2 year agreement with AIG. Premium estimates provided assume a 10-15% increase over the expiring premium and do not contemplate any exposure changes. Premium $13,000 Master Crime Program to $11,079 $12,18719/20 Premium: 18/19 Premium: 20/21 Estimated Premium:$14,000 12.b Packet Pg. 304 Attachment: HR.Risk Management Insurance Program.ATTACHMENT 2 (6763 : Risk Management Insurance Program Fiscal Year 2020/21) 12.c Packet Pg. 305 Attachment: HR.Risk Management Insurance Program.ATTACHMENT 3 (6763 : Risk Management Insurance Program Fiscal Year 2020/21) 12.c Packet Pg. 306 Attachment: HR.Risk Management Insurance Program.ATTACHMENT 3 (6763 : Risk Management Insurance Program Fiscal Year 2020/21) 12.c Packet Pg. 307 Attachment: HR.Risk Management Insurance Program.ATTACHMENT 3 (6763 : Risk Management Insurance Program Fiscal Year 2020/21) 12.c Packet Pg. 308 Attachment: HR.Risk Management Insurance Program.ATTACHMENT 3 (6763 : Risk Management Insurance Program Fiscal Year 2020/21) Aon Risk Insurance Services West, Inc. | Public Entities Practice Group 707 Wilshire Blvd., Suite 2500 | Los Angeles CA 90017 t +1.213.630.3210 | m +1.213.200.0080 | o +1.213.630.3200 | f +1.213.996.1783 | aon.com CA Corp. Lic. No. 0363334 June 4, 2020 City of San Bernardino Edelia Eveland, Director of Human Resources 290 North D St San Bernardino, CA 92401 Dear Edelia: Here is our proposal for the extension of your policies. We have confirmations from all the carriers for a 30-day extension at the following costs: Allied has agreed to extend Pro-rata. A/P $21,985 Hallmark has agreed to extend Pro-rata as per APR/AWAC. A/P $8,463 Berkley has agreed to extend Pro-rata as per APR/AWAC. A/P $12,300 Arch has agreed to extend Pro-rata as per APR/AWAC. A/P $4,761. Total is $47,509 for the 30-day extension. Let me know if I should have the carriers process this change. If you have any further questions, please feel free to contact me. Regards, William S. Deeb. Ed.D. Director of Public Entities Aon Risk Insurance Services West, Inc. 12.d Packet Pg. 309 Attachment: HR.Risk Management Insurance Program.ATTACHMENT 4 (6763 : Risk Management Insurance Program Fiscal Year 2020/21) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Rebekah Kramer, Assistant City Manager Subject: Side Letter Agreement Between the City and the San Bernardino Police Officers Association (SBPOA) Recommendation Adopt Resolution No. 2020-132 of the Mayor and City Council of the City of San Bernardino, California, approving a Side Letter Agreement to the Memorandum of Understanding (MOU) between the City of San Bernardino and the San Bernardino Police Officers Association (SBPOA), amending Article VI-Working Conditions, Section 1: Work Schedules and Article III-Compensation, Section 3: Overtime, effective the first full 28-day work period following Mayor and City Council approval. Background On August 7, 2015, the Mayor and City Council adopted Resolution No. 2015 -173, settlement agreement with the San Bernardino Police Officers Association (SBPOA), approving the Police Safety Memorandum of Understanding (MOU) effective July 1, 2015 through June 30, 2020. To provide for greater work-life balance to employees assigned to patrol, instead of the existing 3/12 work schedule, SBPOA requested consideration for a 3/12.5 work schedule consisting of twelve (12), twelve and one -half (12.5) hour workdays with one (1) ten (10) hour workday over a 28 -day period. Under the requested 3/12.5 work schedule, employees would be scheduled for 160 hours in a 28 -day period, which is consistent with the number of scheduled work hours under the existing work schedules. Police safety employees are currently assigned to one of the following schedules: A. 5/40 work schedule consisting of five (5), eight (8) hour workdays for a total of 40-hours in a seven (7) day workweek. B. 9/80 work schedule consisting of eight (8), nine (9) hour workdays, and one (1) eight (8) hour workday split in two (2) four (4) hour periods for a total of 40 -hours in a seven (7) day workweek. C. 4/10 work schedule consisting of four (4), ten (10) hour workdays for a total of 40-hours in a seven (7) day workweek. 13 Packet Pg. 310 6764 Page 2 D. 3/12 work schedule consisting of three (3), twelve (12) hour workdays, and one (1) ten (10) hour workday split in two (2) five (5) hour periods, for a total of 40- hours in a seven (7) day workweek. Additionally, so the City does not incur overtime costs as a result of this side letter agreement, amendments to the overtime definition in Article III, Section 3 are recommended. Discussion The California Meyers-Milias-Brown-Act (MMBA) requires the City to meet and confer in good faith on all matters relating to employment conditions and employer -employee relations, including, but not limited to: wages, hours, and other terms and conditions of employment with its bargaining groups. Pursuant to the MMBA, the City began negotiations with the SBPOA for amendments to the work schedule provisions under the MOU. After meeting and conferring in good faith, the City and the SBPOA have reached an agreement to amend the MOU f or a 3/12.5 work schedule. With a “blended schedule” some employees will be assigned to a 3/12.5 weekly work schedule instead of the current 3/12 weekly work schedule, while others will be assigned to a 4/10 weekly work schedule. Under a blended schedule , two work schedules are available for use in patrol. Also, to ensure overtime is not incurred as a result of the 3/12.5 weekly work schedule transition, the overtime definition in the MOU will require updates. All existing work schedule options, regardless of the number of hours scheduled each day, provide 40-hours in one workweek defined by the Fair Labor Standards Act (FLSA) as any consecutive period of 168 hours (seven (7) consecutive 24 -hour periods). With the implementation of a 3/12.5 work schedule, one (1) workweek will consist of 47.5 hours and three (3) workweeks will consist of 37.5 hours for a total of 160 hours in a 28 - day period, the same number of scheduled hours as with the existing schedule options. The workweek consisting of 47.5 hours includes one (1) 10-hour shift and the three (3) 12.5-hour shifts. The 12.5-hour shifts will be scheduled for Friday, Saturday and Sunday of each week. The 10-hour shift will generally be scheduled on the Thursday adjacent to a 12.5-hour shift. Employees assigned to work a 4/10 weekly work schedule, work four (4) consecutive days of 10-hours each, either Monday through Thursday or Tuesday through Friday. The current MOU defines overtime, as all compensable hours in excess of the regular scheduled workday or 40 hours per week. The existing language does not contemplate overtime implications from the implementation of a 3/12.5 hour weekly work schedule in the workweek employees are scheduled a total of 47.5 hours. As a general rule, an employer must pay overtime for hours worked in excess of 40 hours per week. Under Section 207(k) of the FLSA, commonly known as the 7(k) exemption, for employees engaged in fire protection or law enforcement activities assigned to a 28-consecutive- day work period are not entitled to overtime for hours in excess of 40 per week. To neutralize the overtime impact of the new work schedule, it is necessary to implement 7(k) exemption of the FLSA with a 28-consecutive-day work period so that the 7.5 hours are not paid at the higher overtime rate when employees are scheduled a total of 47.5 hours in one workweek. Additionally, under the 7(k) exemption, overtime will be 13 Packet Pg. 311 6764 Page 3 compensated for hours in excess of 160 during the 28 -day work period. Consistent with the current provisions of the MOU, employees will continue to receive overtime for all compensable hours in excess of their regularly scheduled workday. The 3/12.5 schedule provides an opportunity for an enhancement of work -life balance with one less day of commuting for police safety employees. 2020-2025 Key Strategic Targets and Goals The proposed Side Letter Agreement to the Police Safety MOU approving a 3/12.5 work schedule aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community: Build a culture that attracts, retains, and motivates the highest quality talent. Fiscal Impact There is no fiscal impact associated with the transition to a 3/12.5 work schedule. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-132, approving a Side Letter Agreement to the Memorandum of Understanding (MOU) between the City of San Bernardino and the San Bernardino Police Officers Association (SBPOA), amending Article VI-Working Conditions, Section 1: Work Schedules and Article III-Compensation, Section 3: Overtime, effective the first full 28-day work period following Mayor and City Council approval. Attachments Attachment 1 Resolution 2020-132; Exhibit “A” - Side Letter Attachment 2 San Bernardino Police Officers Association (SBPOA) Memorandum of Understanding (2015 - 2020) Ward: All Synopsis of Previous Council Actions: August 7, 2015 Mayor and City Council adopted Resolution No. 2015-173, adopting the Memorandum of Understanding (MOU) between the City of San Bernardino and Employees in the Police Safety Employees’ Bargaining Unit of the City of San Bernardino Represented by San Bernardino Police Officers Association (SBPOA). 13 Packet Pg. 312 RESOLUTION NO. 2020-132 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING A SIDE LETTER AGREEMENT TO THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF SAN BERNARDINO AND THE SAN BERNARDINO POLICE OFFICERS ASSOCIATION (SBPOA) AMENDING ARTICLE VI WORKING CONDITIONS, SECTION 1 WORK SCHEDULES AND ARTICLE III COMPENSATION, SECTION 3 OVERTIME, EFFECTIVE THE FIRST 28-DAY WORK PERIOD FOLLOWING CITY COUNCIL APPROVAL WHEREAS, on August 7, 2015, the Mayor and City Council adopted Resolution No. 2015-173, approving a settlement agreement with the San Bernardino Police Officers Association (SBPOA); and WHEREAS, to provide for a greater work-life balance to employees assigned to patrol, the SBPOA requested consideration for a 3/12.5 work schedule; and WHEREAS, the City and the SBPOA met and conferred in good faith and reached a tentative agreement to amend the Memorandum of Understanding. 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 Side Letter Agreement attached hereto and incorporated herein, marked as Exhibit A. 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 the first full 28-day work period following adoption. 13.a Packet Pg. 313 Attachment: Side Letter Agreement Between the City and the SBPOA.Resolution (6764 : Side Letter Agreement Between the City and the San Resolution No. 2020-132 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 13.a Packet Pg. 314 Attachment: Side Letter Agreement Between the City and the SBPOA.Resolution (6764 : Side Letter Agreement Between the City and the San Resolution No. 2020-132 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 13.a Packet Pg. 315 Attachment: Side Letter Agreement Between the City and the SBPOA.Resolution (6764 : Side Letter Agreement Between the City and the San EXHIBIT A SIDE LETTER TO THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF SAN BERNARDINO (“CITY”) AND THE SAN BERNARDINO POLICE OFFICERS’ ASSOCIATION (“ASSOCIATION”) The City and the Association hereby agree to a modification of the terms and conditions set forth in the Memorandum of Understanding (2015-2020) between the City and the Association (hereinafter referred to as “MOU”) as follows: 1. Article VI, Section 1, Subsection C of the MOU shall be revised to read as follows:: 3/12.5 and 4/10 Work Schedules: The Parties have agreed to implement a “blended schedule” for employees assigned to patrol whereby some employees will work a 3/12.5 weekly work schedule and others will work a 4/10 weekly work schedule. • Those employees assigned to work a 3/12.5 weekly work schedule shall work three consecutive days of 12.5 hours each, inclusive of rest breaks and a paid 30- minute meal period. During each 28-day work period, employees assigned to work the 3/12.5 weekly work schedule shall also be scheduled to work one 10- hour work shift, inclusive of rest breaks and a paid 30-minute meal period. The 12.5-hour shifts shall be scheduled for Friday, Saturday, and Sunday of each week. The 10-hour shift will generally be scheduled for a Thursday so that it will be adjacent to a 12.5-hour shift, but exceptions may be made to schedule the 10-hour shift for other days in order to accomplish Department-wide training or due to special assignments. The Parties agree to develop policies governing the interaction between the 3/12.5 weekly work schedule and extended training of three days or more, and other issues that may arise. • Those employees assigned to work a 4/10 weekly work schedule will work four consecutive days of 10 hours each, inclusive of rest breaks and a paid 30-minute meal period. The weekly schedule for employees assigned to work this shift shall be either Monday through Thursday or Tuesday through Friday. 2. Article III, Section 3, Subsection B of the MOU shall be revised to read as follows: Definition: Overtime is defined as all compensable hours in excess of the regularly scheduled workday or 40 hours per week. All overtime shall be reported in increments of 15 minutes and is non-accumulative and non-payable when incurred in units of less than 15 minutes. Notwithstanding the above, for those employees assigned to work a 3/12.5 weekly work schedule, overtime shall be defined as: 13.b Packet Pg. 316 Attachment: Side Letter Agreement Between the City and the SBPOA.Exhibit A [Revision 1] (6764 : Side Letter Agreement Between the City and EXHIBIT A • All compensable hours in excess of 160 hours in a 28-day work period, hereby adopted in accordance with Section 7(k) of the Fair Labor Standards Act, or • All compensable hours in excess of an employee’s regularly scheduled workday except that in those weeks in which the employee is scheduled to work the 10- hour shift, overtime shall be paid for compensable hours in excess of 47.5 hours. For payroll purposes, employees assigned to work a 3/12.5 weekly work schedule will be paid bi-weekly, with the 28-day work period will being divided into two 14-calendar day pay periods: one pay period shall include 75 scheduled hours and the other 14-day calendar day pay period shall include 85 scheduled hours. 3. This Side Letter Agreement shall become effective the first full 28-day work period following City Council approval. 4. All other terms and conditions of the MOU will remain the same. ___________________________________ San Bernardino Police Officers’ Association Date: ____________________________ ___________________________________ City of San Bernardino Date: ____________________________ 13.b Packet Pg. 317 Attachment: Side Letter Agreement Between the City and the SBPOA.Exhibit A [Revision 1] (6764 : Side Letter Agreement Between the City and July 1, 2015 TO June 30, 2020 CITY OF SAN BERNARDINO 13.c Packet Pg. 318 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Article/Section ARTICLE I Section 1 Section 2 Section 3 Section 4 Section 5 ARTICLE II Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Section 11 ARTICLE Ill Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 ARTICLE IV Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 TABLE OF CONTENTS Section ADMINISTRATION Definition of Terms ........................................................... 1 Management Rights ......................................................... 2 Mutual Aid ........................................................................ 3 Agency Personnel Rights ................................................ 3 Employees' Rights ........................................................... 3 EMPLOYER-EMPLOYEE RELATIONS Recognition ..................................................................... .4 No Strike .......................................................................... 4 Payroll Deductions .......................................................... .4 Grievance Procedure ....................................................... 5 Employee Representative ................................................ ? Investigation Rights ......................................................... 8 Non-Discrimination .......................................................... 9 Personnel Files ................................................................ 9 Political Activity ................................................................ 9 Use of City Resources ................................................... 1 0 Employer-Employee Relations Committee .................... 1 0 COMPENSATION Salaries .......................................................................... 11 PERS/Retirement Plan .................................................. 11 Overtime ........................................................................ 12 Assignment to Higher Position ....................................... 13 On-Caii/Caii-Back!Standby ............................................ 13 Educationallncentive ..................................................... 14 Court Fines .................................................................... 15 Bilingual Pay .................................................................. 15 FRINGE BENEFITS Health/Life Insurance -Active Employees .................... 15 Rain Gear/Utility Uniforms ............................................. 17 Books and Tuition Allowance ......................................... 17 Deferred Compensation ................................................. 18 Safety Equipment .......................................................... 18 Replacing/Repairing Personal Property ......................... 18 Service Pins ................................................................... 18 ii 13.c Packet Pg. 319 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Article/Section ARTICLE V Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 ARTICLE VI Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 ARTICLE VII Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Section 8 Section 9 Section 10 Appendix A Section LEAVES Pre-Petition Leave Banks .............................................. 19 Vacations ....................................................................... 19 Holidays ......................................................................... 21 Sick Leave ..................................................................... 22 Payment for Unused Sick Leave .................................... 24 Injury Leave ................................................................... 25 Leave of Absence Without Pay ...................................... 25 Military Leave ................................................................. 27 WORKING CONDITIONS Work Schedules ............................................................. 27 Shift Change .................................................................. 29 Probationary Period ....................................................... 29 Seniority ......................................................................... 29 Reemployment. .............................................................. 29 Physical Examinations ................................................... 30 GENERAL PROVISIONS Term ............................................................ : ................. 30 Notice of Intent to Reopen ............................................. 30 Housing Incentives ........................................................ 30 Recruitment Obligations ................................................ 30 Per Diem/Reimbursement Policy ................................... 31 Release of Claims .......................................................... 31 Severability .......................................................... 31 Waiver Clause ....................................................... 32 Prevailing Benefits ................................................ 32 Dispute Resolution .................................................... 32 Bankruptcy Provisions and Release of Claims ........ 33 Signature Page .............................................................. 34 lndex .............................................................................. 35 iii 13.c Packet Pg. 320 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Attachments for Reference: Exhibit 1 Exhibit 2 Exhibit 3 Exhibit 4 Department Director Letter (DOL) No, 48, Educational Reimbursement Processing Resolution No. 2002-388, Side Letter Amending Article V, Leaves, Section 7, Military Leave Department Director Letter (DOL) No, 32, Travel Authority and Expense Request Procedures Department Director Letter (DOL) No, 33 Reimbursement or repair of lost or damaged items of personal property of City employees. iv 13.c Packet Pg. 321 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Administration: Appointing Authority: Appropriate Unit: Association: Continuous Service: Department: Division: Employee: Employee Organization: Employer: Gender: Mandatory and Permissive: ARTICLE 1-ADMINISTRATION Section 1 -Definition of Terms Any elected or appointed official of the City and any employee of the City whose job classification is Management or Confidential employee. The Chief of the San Bernardino Police Department. In the Chiefs absence, the Assistant Chief will be the appointing authority. Those positions recognized as belonging to the unit covered by the terms of this MOU. The San Bernardino Police Officers' Association (SBPOA). The Chief of Police of the City of San Bernardino. The City of San Bernardino. Five-sixths (5/6) of the available compensable days within the 12-month period immediately preceding the date of the employee's return to service: 217 days for employees working 8-hour shifts and 173 days for employees working 1 0-hour shifts. The San Bernardino Police Department. Any one of the major Divisions of the Department. All Safety Personnel within the classifications in this appropriate unit. The San Bernardino Police Officers' Association (SBPOA). Shall include the City of San Bernardino, and the City of San Bernardino Police Department. The masculine gender also includes the feminine. "Shall" is mandatory, "may" is permissive. 1 13.c Packet Pg. 322 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Years of Employment: Memorandum of Understanding (MOU): Singular and Plural: Tense: Working Day: Shall include all full-time services for the City of San Bernardino unless otherwise stated. Shall mean the contractual obligation between the City and the employees of the Unit. The singular also includes the plural. The present tense shall also include the past and the future. Eight (8) hours, unless otherwise stated. Section 2 -Management Rights This Resolution shall not be deemed to limit or curtail the City in any way in the exercise of the rights, powers and authority which the City has prior to entering into this MOU, except to the extent that the provisions of the MOU specifically curtail or limit such rights, powers and authority. Furthermore, the City retains all rights, powers and authority under City Charter, Ordinances, Resolutions, State and Federal law, and expressly and exclusively to: determine the mission of its constituent departments, commissions and boards; set standards of selection for employment and promotion; direct its employees; establish and enforce dress and grooming standards; maintain the efficiency of governmental operations; determine the methods, means, numbers and kinds of personnel by which government operations are to be conducted; determine the content and intent of job classifications; determine methods of financing; determine style and/or types of City issued wearing apparel, equipment or technology to be used, provided that no such measures which threaten the safety of employees shall be adopted; determine and change the facilities, methods, technology, means, organizational structure, size and composition of the work force and allocate and assign work by which the City operations are to be conducted, provided however, that no such measures which threaten the safety of employees shall be adopted; determine and change the number of work locations, relocations and types of operations, processes and materials to be used in carrying out all City functions, including but not limited to, the right to contract for or subcontract any work or operations of the City; assign work to and schedule employees in accordance with requirements as determined by the City; and establish and change work schedules and assignments as set forth in the MOU; establish and modify productivity and performance programs and standards; discharge, suspend, demote, reprimand, withhold salary increases and benefits, except such as are mandated by City Charter, or otherwise discipline employees in accordance with the applicable law; establish employee performance standards, including but not limited to, quality and quantity standards; carry out its mission in emergencies; and, exercise complete control and discretion over its organization and the technology of performing its work. 2 13.c Packet Pg. 323 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 3 -Mutual Aid Nothing herein shall in any way be construed to limit the use of any public safety agency or any member in the fulfilling of mutual aid agreements with other jurisdictions or agencies, nor shall this article be construed in any way to limit any jurisdictional or interagency cooperation under any circumstances where such activity is indeed necessary or desirable by the jurisdictions or the agencies involved. Section 4 -Agency Personnel Rules It is understood and agreed that there exists within the City the "Civil Service Rules and Regulations for the Classified Service"; Resolution No. 10584, Establishing Uniform and Orderly methods of Communications Between the City and its Employees for the Purpose of Promoting Improved Employer-Employee Relations, as amended, and Resolution No. 10585, Adopting Rules and Regulations Relating to Employer Employee Relations, as amended. These documents will continue in effect, except for those provisions modified by the Common Council in accordance with state or federal laws, orders, regulations, official instructions or policies. In the case of proposed changes by other than agreement, the City shall consult with the Association or meet and confer when required by statute. In cases of emergency, the Association and City will meet as soon as possible after the changes. Section 5 -Employees' Rights Employees shall have all the rights, which may be exercised in accordance with state law, federal law, the Charter and applicable ordinances, resolutions, rules and regulations. A. The right to form, join and participate in the activities of employee organizations of their own choosing for the purpose of representation on all matters of employer-employee relations. B. The right to refuse to join or participate in the activities of employee organizations and the right to represent themselves individually in their employment relations with the City. C. The right to be free from interference, intimidation, restraint, coercion, discrimination or reprisal by other employees, employee organizations, management or supervisors as a result of their exercise of rights indicated in (A) and (B) above. 3 13.c Packet Pg. 324 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San ARTICLE II· EMPLOYER-EMPLOYEE RELATIONS Section 1 • Recognition Formal recognition of the Association is acknowledged for purposes of meeting and conferring on wages, hours, working conditions and other terms and conditions of employment and of general representation of its members. The Association has been recognized formally as the majority representative of the appropriate unit composed of Police Officers and other sworn, non-management positions in the San Bernardino Police Department, including but not limited to, the following classifications: Police Officer; Juvenile Officer; Corporal; Detective; Senior Identification Inspector; and, Sergeant. These positions are recognized regardless of assignment, receipt of incentive pay or acting in a higher position. Section 2 • No Strike It is the purpose of the MOU for the parties hereto, to confirm and maintain the spirit of cooperation, which has heretofore existed between the City of San Bernardino and the employee organization. It is recognized that any work disruptions are unproductive to City operations and services provided its citizens. The Association and City hereby agree that they shall at no time nor in any way jeopardize the public health, welfare and safety of the City's business and residential communities. Thus, the Association and the City will strive to promote a harmonious relationship between the parties of this MOU that will result in benefits to the City and will provide continuous and uninterrupted employee services. It is, therefore, further agreed that the Association shall not, on behalf of itself and its members, individually or collectively, engage in any curtailment or restriction of work, including but not limited to, "blue flu" or strikes, at any time during the term of this MOU. Section 3 • Payroll Deductions It is agreed that the Association membership dues, insurance and premiums for plans sponsored by the Association shall be deducted by the City from the pay warrant of each employee covered hereby who files with the City a written authorization requesting that such deduction be made. Remittance of the aggregate amount of all membership dues and insurance premiums deducted from the pay warrants of employees covered hereby shall be made to the Association within 30 days after the conclusion of the month in which said membership dues and insurance premiums were deducted. The City shall not be liable to the Association, employees or any other persons by reason of the requirements of this section for the remittance of any sum other than that constituting actual deductions made from employee wages earned. The Association shall hold the City harmless from any and all claims, demands, suits, orders, judgments 4 13.c Packet Pg. 325 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San or other forms of liability that may arise out of, or by reason of, action taken by the City under this section. Section 4-Grievance Procedure A. Purpose: The City of San Bernardino and the Association realize the importance of a viable grievance procedure to aid in the resolution of disputes among employees, supervisors and management. It is recognized that to maintain high employee morale and harmonious relations, an orderly method of processing grievances is necessary. This procedure is intended to establish a systematic means to process a grievance and to obtain fair and proper answers and decisions regarding employee complaints. The representative of employees and management at all levels will make continuing efforts to secure prompt disposition of grievances. Every effort should be made to resolve grievances in the informal process. The initiation of a grievance in good faith by an employee shall not cast any adverse reflection on his/her standing with his/her supervisors or his/her loyalty as a City employee, nor be a reflection on the employee's supervisor or the department involved, unless it is determined that such department or supervisor has grossly abused management discretion or the employee has grossly abused the grievance process. B. Definition: A grievance is an alleged violation of the terms of this MOU or of the laws, ordinances, resolutions or regulations concerning or affecting wages, hours or other conditions of employment. The remedy selected by the employee shall be the exclusive remedy pursued, either through the grievance procedure or through appeals to the Civil Service Board. However, nothing herein shall be interpreted as relinquishment of the rights set forth in City of San Bernardino Charter Sections 253, 254, and 255. Additionally, allegations of discrimination and harassment shall be submitted to the Equal Employment Officer. C. Representation: The aggrieved employee shall have the right to be represented. This representation may commence at any step in the grievance procedure. Legal counsel and/or official representatives of the recognized employee organization only can represent the employee. No person hearing a grievance need recognize more than one representative for any employee at any one time, unless he/she so desires. If the employee's legal counsel is not from the formally recognized employee organization, a representative of that formally recognized organization may attend the grievance hearing to insure that the solution reached does not violate the terms of the MOU. 5 13.c Packet Pg. 326 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San D. Consolidation of Grievances: In order to avoid the necessity of processing numerous similar grievances at one time, a single grievance may be filed. E. Time Limits Time limitations are established to settle a grievance quickly. Time limits may be modified by agreements of the parties. If at any stage of the grievance procedures the grievant is dissatisfied with the decision rendered, it shall be the grievant's responsibility to initiate the action, which submits the grievance to the next level of review. The grievant may proceed to the next step if a reviewing official does not respond within the time limits specified. A formal grievance may be entertained in or advanced to any step if the parties jointly so agree. F. Steps in the Grievance Procedure: The procedures outlined herein constitute the informal and formal steps necessary to resolve an employee's grievance. An attempt to settle the grievance in the informal structure at the employee-supervisor level is required. The grievance must be submitted to the informal step within ten (10) working days of the incident causing the grievance, or the grievant's knowledge of the incident occurrence. Note: If the employee chooses to appeal disciplinary action to the Civil Service Board, he/she shall be precluded from filing a grievance. The date and the subject of the incident should be provided with the request for the informal meeting. 1. Informal: Initially, the grieving employee shall on a personal face-to- face basis discuss his/her complaint with his/her immediate supervisor informally. Within ten (10) working days, the supervisor shall give his/her decision to the employee orally. 2. Formal: Step 1. Written Grievance to Supervisor: If a mutually acceptable solution has not been reached in the informal process, the employee shall submit the grievance in writing to his/her immediate supervisor. This must be accomplished within ten (10) working days of being informed of the supervisor's informal decision. Within ten ( 1 0) working days of receiving the written notification of the employee's grievance, the supervisor may meet with the employee and thoroughly discuss the grievance. The employee may appear personally and may be represented by a representative of his/her choice. In any event, the supervisor shall give a written decision to the employee within ten (1 0) working days after receipt of the written grievance. Step 2. Meet with Division Head: If the grievance has not been satisfactorily resolved at this level, it may be appealed within ten (1 0) working days to the division head, who may follow the steps outlined in Step 1 above. In any event, the division head shall give a written decision to the employee within ten (10) working days after receipt of the grievance. 6 13.c Packet Pg. 327 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Step 3. Meet with Chief: If the grievance has not been satisfactorily resolved at this level, it may be appealed within ten (10) working days to the Chief, who may follow the steps outlined in Step 2 above. In any event, the Chief shall give a written decision to the employee within ten (10) working days after receipt of the grievance. If the grievance has not been satisfactorily resolved at this level, it may be appealed within ten (1 0) working days to the Director of Human Resources. Step 4. Review by the Director of Human Resources: If the grievance is still not adjusted, the aggrieved party may file a written appeal with the Director of Human Resources within ten (10) working days from the date of delivery of said answer. The Director of Human Resources or his/her designee shall meet with the employee, and if the employee desires, the designated union representative within ten (10) working days after receipt of the appeal. The designated City representative shall deliver his/her answer in writing to the employee within ten (10) working days after the meeting. Step 5. Final Step: a. If the grievance is still not adjusted, the aggrieved party may file a written appeal with the City Manager or his/her designated representative within ten (1 0) working days from the date of delivery of said answer. State in writing the complaint and the desired result. b. The City Manager or his/her designated representative shall deliver his/her answer in writing within ten (1 0) working days after receipt of the appeal. c. The decision of the City Manager or his/her designated representative is final and binding on all parties, unless reversed by a court decision. d. All grievances shall be treated as confidential and no publicity will be given the final resolution of the grievances. Section 5 -Employee Representatives When requested by an employee, a Job Representative (Job Rep) may investigate any alleged grievance in the department and assist in its presentation. The representative shall be allowed reasonable time therefor during working hours without loss of time or pay, upon notification and approval of his/her immediate supervisor, with the concurrence of the division or department head. The privilege of a Job Rep to leave work during work hours without loss of time or pay is subject to the understanding that the time will be devoted to the proper handling of grievances and will not be abused. Such time shall be excluded in any computation of overtime. Job Reps will perform their regularly assigned work at all times, except when necessary to leave their work to handle grievances as provided herein. A Job Rep will not be granted time off or compensation for the purpose of handling grievances outside this unit. The Association 7 13.c Packet Pg. 328 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San shall notify the City of the names of each Job Rep each January. The City shall recognize a ratio of one (1) Job Rep for every 50 permanent employees in the unit, but not less than five (5). Job Reps shall include: One (1) from Detective Bureau; three (3) from Patrol; one (1) from MET/Traffic; and, one (1) from Narcotics. Section 6 -Investigation Rights When an employee is under investigation and subjected to interrogation by his/her commanding officer or any other member of the department, which could lead to punitive action, such interrogation shall be conducted under the following conditions. For the purpose of this chapter, punitive action is defined as any action which may lead to dismissal, demotion, suspension, reduction in salary, written reprimand or transfer for purposes of punishment. The Police Department will make a good faith effort to conclude within 90 calendar days any investigation that could lead to discipline of a unit member. For disciplinary appeals, the member may request that a neutral hearing officer hear the matter and submit a proposed decision to the City's Civil Service Board ("Board"). The Board shall review the decision and recommended discipline, and either adopt the findings and the disciplinary action in its entirety, modify the recommended disciplinary action, and/or request additional findings from the hearing officer. The Board shall retain jurisdiction of final disposition of the disciplinary action. The Police Department will exclude disciplinary action, which is not final in preparing performance evaluations. However, the Police Department retains the right to consider such disciplinary action, once finalized, in subsequent performance evaluations, ratings for promotions and so forth. If an employee on the graveyard shift wishes to appeal a disciplinary action to the Civil Service Board, the employee's shift may be rescheduled to the day shift on the date of the Civil Service Board meeting, provided that the shift change is for the disciplined employee only and the employee requests the shift change in advance through the chain of command. The City hereby adopts and incorporates herein by reference all provisions of the Public Safety Officers' Procedural Bill of Rights (Government Code Section 3300, et. seq.). Lawful Exercise of Rights: Insubordination: Administrative Appeal: A. No employee shall be subjected to punitive action, or denied promotion, or be threatened with any such treatment because of the lawful exercise of the rights granted herein or the exercise of any rights under any existing administrative grievance. 8 13.c Packet Pg. 329 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Nothing in this section shall preclude a head of an agency from ordering an employee to cooperate with other agencies involved in criminal investigations. If an officer fails to comply with such an order, the agency may officially charge him with insubordination. B. No punitive action, nor denial of promotion on grounds other than merit, shall be undertaken by any public agency without providing the employee with an opportunity for administrative appeal. Section 7 -Non-Discrimination The provisions of this agreement shall be applied equally by the City and the Police Association to all employees covered hereby without favor or discrimination because of race, sex, age, national origin, marital status, sexual orientation, political or religious opinions or affiliations or Association membership. Further, there shall be no discrimination against qualified individuals with disabilities as defined in the Americans With Disabilities Act of 1990 (ADA), when those individuals do not pose a risk to the health or safety of themselves or others. Section 8 -Personnel Files No member shall have any comment adverse to his/her interest entered in his/her personnel file as described in PC 832.8, or any other files used for any personnel purposes by the employer, without the member having first read and signed the instrument containing the adverse comment indicating he/she is aware of such comment, except that such entry may be made if after reading such instrument, the member refuses to sign it. Should a member refuse to sign, that fact shall be noted on the document and signed or initialed by such officer. A member shall have 30 days within which to file a written response to any adverse comment entered in his/her personnel file. Such written response shall be attached to and accompany the adverse comment. In all instances other than a written warning or commendation, the consultation reports will be purged from the supervisor's file in compliance with departmental standard operating procedures. Citizen/internal complaints will be purged from the Internal Affairs files in compliance with the departmental Standard Operating Procedures. Section 9 -Political Activities Except as otherwise provided by law or whenever on duty or in uniform, no employee shall be prohibited from engaging in or be coerced or required to engage in political activity. 9 13.c Packet Pg. 330 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 10-Use of Citv Resources The Association may be granted permission to use department facilities for the purpose of meeting with employees to conduct its internal affairs provided space for such meetings can be made available without interfering with City needs. Permission to use facilities must be obtained by the Association from the Chief or a designated representative. The Association shall be held fully responsible for any damages to and the security of any facility that is used by the Association. The department will furnish adequate bulletin board space where currently available. Only areas designated by the appointing authority may be used for posting of notices. Bulletin boards may be used for the following notices: A. Scheduled Association meetings, agenda and minutes; B. Information on Association elections and results; C. Information regarding Association special, recreational and related bulletins; D. Reports of official business of the Association, including reports of committees or the Board of Directors; E. MOU, pay scales, job announcements, promotion lists, etc. Such other items as may be approved by the department management upon request of the department. Posted notices shall not be obscene or defamatory, nor shall they advocate election or defeat of candidates for public office. All notices to be posted may be dated and signed by an authorized representative of the Association and should have prior written approval of the Chief or an authorized representative. Denial of approval shall not be arbitrary or capricious or discriminatory. Section 11-Employer-Employee Relations Committee Consistent with Section 5, the Association will designate five (5) representatives who will meet with representatives of Police administration on a mutually agreeable basis to discuss matters pertinent to the welfare of the City and the employees. The Association may have additional representatives present when appropriate for the discussion of scheduled matters. Normally, such meeting shall be during regular working hours. 10 13.c Packet Pg. 331 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San ARTICLE Ill· COMPENSATION Section 1 • Salaries For each year that this Agreement is in effect, the monthly salaries of local safety members of the San Bernardino Police Department shall be increased by 3.5%. In addition, salary surveys shall be conducted annually, in accordance with the City Charter, Article X, Section 186 and consistent with the interpretation and methodology currently utilized by the City. In the event the annual salary survey determines that the salary for each classification surveyed exceeds 3.5%, the higher amount shall determine the salary for that classification only. Salary increases shall be effective August 1st in accordance with the City Charter. The provisions of this section shall continue during the term of this Agreement regardless of whether City Charter Section 186 is repealed or otherwise modified. Section 2 • PERS/Retirement Plan A. Retirement Benefits. SBPOA members are provided retirement benefits under the Public Employee's Retirement System (CaiPERS) as follows: Tier 1: Employees hired prior to September 1, 2011 shall receive a 3% @ 50 retirement benefit; Tier II: Employees hired between September 1, 2011 and December 31, 2012 shall receive a 3% @ 55 retirement benefit; Tier Ill: Employees hired between January 1, 2013 and December 31, 2015 shall receive a 2.7%@ 57 retirement benefit in accordance with the Public Employees' Pension Reform Act of 2013 (PEPRA); Tier IV: Employees hired on or after January 1, 2016 shall receive a 2.5% @ 57 retirement benefit in accordance with PEPRA. B. Required Bargaining Unit Member Contributions. As of the effective date of this MOU, bargaining unit employees hired on or before December 31, 2012 (hereinafter referred to as legacy or classic employees), shall contribute through a payroll deduction, 9% toward the CaiPERS retirement costs. Effective July 1, 2016, legacy or classic members shall contribute through a payroll deduction, 9% toward the CaiPERS retirement. Effective July 1, 2017, and for the remaining term of the MOU, legacy or classic employees shall contribute through a payroll deduction of 12% toward their retirement. 11 13.c Packet Pg. 332 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Employees hired on or after January 1, 2013 (PEPRA Employees) shall contribute 50% of the normal costs in accordance with Government Code § 7522.30. C. In accordance with Government Code§ 21624 and§ 21635, the "post survivors retirement" benefit provided under the City's contract with CaiPERS shall be provided to all employees. D. For Tier I and Tier II legacy or classic employees, the final compensation period will be single highest year as provided under the City's contract with CaiPERS. Section 3 -Overtime A. Policy: It is the policy of the City to discourage overtime, except when necessitated by abnormal or unanticipated workload situations. The City has the right to require overtime to be worked as necessary. Consistent with this policy, the Chief will make every effort to assign overtime evenly among the employees with similar skills or assignments. B. Definition: Overtime is defined as all compensable hours in excess of the regularly scheduled workday or 40 hours per week. All overtime shall be reported in increments of 15 minutes and is non-accumulative and non-payable when incurred in units of less than 15 minutes. C. Compensation: An employee who works overtime authorized by the department shall be compensated at time-and-a-half. Payment for overtime shall be made on the first regular payday following the pay period in which overtime is worked, unless overtime compensation cannot be computed until some later date, in which case, overtime will be paid on the next regular payday after such computation can be made. The employee may decide that he/she be paid for the overtime or accumulate such overtime at time-and-a-half. Such determination must be made at the time the employee submits the overtime slip. Overtime compensation for details or assignments outside the normal budgetary process or that are funded through grant funds shall be compensated in cash. Payment for unused accumulated overtime shall be made upon termination, retirement or paid to the survivor upon death of the employee. D. Accumulated overtime shall not exceed 240 hours. Effective July 1, 2015, all compensatory time shall be capped at 240 hours. Any compensatory time in excess of 240 hours shall be placed in a separate bank (Excess Camp Time Bank "ECT") and shall be cashed out as follows: • October 15, 2015 paycheck = 25% • January 15, 2016 paycheck = 25% • April15, 2016 paycheck= 25% • July 15, 2016 paycheck = 25% 12 13.c Packet Pg. 333 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Any SBPOA unit members who separate prior to July 15, 2015, shall be paid for all unused compensatory time in full. For the October 15, 2015 payment, the City Manager has the discretion to cash out more than 25% so long as it does not bring the SBPOA member below the 240 cap. All accumulated compensatory time shall be paid to a unit member upon promotion of the member. Requests for use of accumulated overtime made fourteen (14) days in advance of the time requested, will be granted unless a public safety issue or serious deployment issue arises. E. Daylight Savings Time: Employees required to work during daylight savings time when their shift is extended by one (1) hour (clocks are turned back one (1) hour) will not be compensated for that hour. Employees required to work when their shift is reduced by one (1) hour (clocks are turned forward one (1) hour) will not be deducted one (1) hour of compensation time. If employees are required to work beyond their standard end of shift, employees will be compensated at their normal overtime rate. Section 4 • Assignment to Higher Position An employee of the department temporarily acting in a position in a higher rank during periods of absence of the incumbent or during a vacancy in the position for more than ten (1 0) consecutive days shall receive the same salary for the higher rank to which he/she would be entitled, were he/she promoted to that rank during the period in which the employee is acting in the higher rank. The Chief shall certify monthly as to the assignment and the period of time worked in the higher rank to validate entitlement to the higher salary. This article does not apply to a situation in which there is no vacant higher-level position for which funds have been appropriated. Substantive addition of duties of a higher-level classification to an employee's budgeted position should be considered for a classification study. Section 5 • On-Caii/Caii-Back/Standbv A. On-Gall/Call-Back: An employee placed in an "on-call" status by Police management will receive four (4) hours pay for all or any portion of a 24-hour day. On- call status shall start at the end of the employee's scheduled workday and at 0800 hours for employees on a scheduled day off. 13 13.c Packet Pg. 334 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Four ( 4) personnel will be placed in an on-call status for the purpose of homicide investigations. These personnel, consisting of three (3) investigators and one (1) supervisor, will be compensated with one (1) hour of overtime, equal to timecand-a- half of their current rate of pay. Periods of time for on-call will be established by the department to coincide with the needs of the investigations division. For all unit members (other than homicide investigation personnel noted above), compensation for those called back after the end of their scheduled workday will be a one (1) hour minimum at time-and-a-half, as applicable. Whether or not the time an employee is on-call need be counted as compensable working time depends upon the employee's freedom while on-call, as defined by the Fair Labor Standards Act (FLSA). B. Standby: In the event an employee is placed on standby for a court subpoena, the employee will receive three (3) hours' standby pay. If the employee is called to court and does not go beyond 1200 hours in that day, it will be considered part of the three (3) hours' standby. If the employee has to appear after the noon recess, any additional time will be added to the three (3) hours' standby. In cases where the subpoena is for 1330 hours or another time, the standby will start with the time stated on the subpoena. In those cases where the subpoena is for 1330 or later, the employee's time will be computed at the amount of time between the time of the subpoena and 1700. Employees will receive a half-hour (1/2) travel time for going to court. If an employee works graveyard shift and has an 8:00 a.m. court appearance; the employee will receive overtime pay for a minimum of one (1) hour. For all hours worked in excess of the one (1) hour, employees will receive overtime pay for actual time worked. In the event the employee is required to pay parking fees, the employee will be reimbursed. If employees are required to stay through noon recess, they will be paid for the actual time worked. Section 6 • Educational Incentive All police officers shall be entitled to receive in addition to their regular salary and as may be appropriate, one of the levels of incentive payment as outlined below: A. Two hundred dollars ($200) additional compensation per month shall be paid each police officer who has obtained a Peace Officer Standards Training (POST) Intermediate Certificate; or, B. Two hundred fifty dollars ($250) additional compensation per month shall be paid each police officer who has obtained a POST Advanced Certificate; or, 14 13.c Packet Pg. 335 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San C. Two hundred seventy-five dollars ($275) additional compensation per month shall be paid to each police officer who has obtained a POST Supervisory Certificate. Section 7 -Court Fines The City shall pay for court fines imposed upon each member as a result of his/her conviction of a traffic violation when such employee was directed to operate any faulty vehicle or vehicular equipment, which was the proximate cause of the mechanical or other traffic violation, provided that such violation did not result from improper or negligent operation of the vehicle on the part of the member. Section 8 -Bilingual Pay Each full-time employee who meets the City's certification and eligibility requirements shall be compensated at the rate of $50/month. The City shall reserve the right to determine languages for which testing will be conducted. ARTICLE IV -FRINGE BENEFITS Section 1 -Health/Life Insurance -Active Employees A. During the term of this agreement the City's Contributions for Healthcare benefits shall be as follows: 1. For Plan Year (Calendar Year) 2015, the City shall contribute $855.38 per month toward health premiums for the Employee + One dependent or Family coverage. For calendar year 2015, the City shall contribute $ 508.21 per month toward health premiums for employees with Employee Only coverage. 2. For Plan Year (Calendar Year) 2016, the City's contribution toward healthcare premiums will be paid at 100% for Employee Only; 85% for Employee + One; and 75% for Employee + Family, using the Kaiser premium amount then in effect. B. Thereafter, the City and the SBPOA will share, on a 50-50 basis, the dollar increases to the Kaiser premiums for the next two Plan Years (2017 and 2018). C. During Plan Years four (2019) and five (2020) of this MOU, the 50-50 cost sharing of the increased Kaiser premiums would be continued, however, the City's contribution during the last two (2) Plan Years would be capped at 3% per year. At the 15 13.c Packet Pg. 336 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San end of the MOU, the 3% cap will sunset, unless otherwise modified by the City and the SBPOA. The amount of the City's contribution is based on the selection of the "medical" enrollment category. If an employee elects "employee only" medical coverage, then the "employee only" allowance is given to the employee. Any contribution not utilized by the employee shall revert to the City. D. Insurance benefits available for purchase by employees include: medical, dental, vision, and supplemental life and accidental death and dismemberment insurance. However, City contributions cannot be used for any voluntary benefits offer to members through Colonial Life. E. An employee must purchase insurance offered through the City in order to utilize the contributions described in Section A above. F. Employees may use any of the amounts described in Section A to purchase any/all of the insurance benefits described in Section B. G. Cafeteria monies may be redesigned or a change of plans may be made in accordance with the rules established by the insurance plan selected by the employee. H. Effective January 1, 2007, the City shall provide each employee with $25,000 term life insurance and $25,000 Accidental Disability and Dismemberment (AD&D). I. The City shall pay funeral expenses of up to $10,000 for a police officer killed in the line of duty. J. Enrollment in City insurance plans is subject to the regulations availability established by each plan's provider. K. An employee who does not want to enroll in any health care plan offered by the City must provide evidence of health care insurance coverage, and execute a "Waiver of Benefits and Release Agreement" releasing the City from any responsibility or liability to provide health care insurance coverage on an annual basis. Employees who elect to waive the City's health care insurance may receive a stipend as shall be determined by the City on an annual basis. The parties acknowledge that the stipend for calendar year 2015 is$ 2,000 and the City has set the stipend for calendar year 2016 at $2,500. L. The SBPOA agrees to participate in the City's Joint Labor-Management Health Benefits Committee ("Committee") to evaluate, on an annual basis, City-wide 16 13.c Packet Pg. 337 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San plan designs for health care. All plan designs and City contributions shall be effective on January 1st annually. M. Employees must be in a paid status for fifteen (15) consecutive days, in any given month, to receive the benefits of this Article, unless the employee is on a qualifying approved leave, such as Family Medical Leave, and is eligible for benefit continuation under applicable State or Federal law. Members who have been suspended or discharged pending an administrative appeal shall be eligible for continuation of benefits pending final disposition of the disciplinary matter by the Civil Service Commission. Section 2 • Rain Gear/Utility Uniforms/Uniform Allowance A. Rain Gear: The City shall continue its current method to provide appropriate duty rain gear for personnel. B. Utility Uniforms: Each employee of the bargaining unit shall be furnished one utility uniform. Said uniform shall be maintained in assigned lockers or in the vehicle available for use at all times. C. Uniform Allowance: Once each fiscal year, each employee in the bargaining unit shall receive an annual uniform allowance of $950 to be paid in a lump sum amount during the first pay period of March. New employees must wait until the first pay period of March to receive their annual uniform allowance. Section 3 · Books and Tuition Allowance The City will continue under its formalized procedures to pay tuition costs for members who complete prior-approved, job related courses of instruction, which will increase their value to the City. Grades must be consistent with the City's policy. Courses must be taken at an accredited school. The amount of reimbursement shall be equivalent of tuition costs for up to six (6) units per quarter as charged by the California State University, San Bernardino, or up to one-and-a-half (1-1/2) times that amount, if based on a semester system. The Director of Human Resources will recommend approval or disapproval, based on the availability of budgeted funds for tuition assistance. Reimbursement for books required for the approved course or courses may be authorized by the Chief at the time reimbursement for tuition is requested. See Exhibit 1 -Department of Director Letter (DDL) No. 48, Educational Reimbursement Processing. 17 13.c Packet Pg. 338 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 4 -Deferred Compensation The City shall continue to sponsor a Deferred Compensation Plan, which shall be available to employees on a voluntary basis. Unspent "cafeteria" contributions may not be diverted into a deferred compensation or like plan. Section 5 -Safety Equipment A. New employees who are required to have safety equipment will be furnished same on a one-time basis, including safety equipment hardware, leather and safety vests. B. The City shall furnish regularly-assigned motorcycle officers the following items as initial issue: (1) safety helmet; (1) pair of boots; (2) pair of riding breeches, which are declared to be necessary for the safety of the officer as specified under Labor Code Section 6401 and Government Code Section 5008.1. C. Replacements will be issued upon return of worn-out items. It shall be the duty of each employee to use normal diligence in their use and any willful damage or loss shall obligate the employee to replace the item at his/her expense. Upon reassignment or separation from the department, these items shall be returned to the City. The City Director of Finance shall have direct control over the purchase, issue and replacement of the above-described items. The Chief shall certify in writing to the Director of Finance as to an individual's entitlement. Section 6 • Replacing/Repairing Personal Property The City shall continue to provide for the cost of replacing or repairing personal property of an employee, which is lost or damaged in the performance of duty as provided in Department Director Letter (DOL) No. 33, Reimbursement or Repair of Lost or Damaged Items of Personal Property of City Employees, dated April 17, 1989, and revised August 29, 2003. Section 7 -Service Pins Employees of the City of San Bernardino shall be awarded service pins upon completion of each of the following period of years of continuous loyal service: 5 years 10 years 15 years 18 13.c Packet Pg. 339 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San 20 years 25 years and over Years of service shall be deemed to include all continuous loyal employment for the City of San Bernardino. Award of service pins for the above-designated service shall be made as soon as may be practicable after the employee has completed the required period of employment. Service pins shall be of such design as approved by the Mayor and Common Council of the City of San Bernardino and shall show the number of years of service for which the award is made and the City seal of the City of San Bernardino. ARTICLE V ·LEAVES Section 1 -Pre-Petition Leave Banks The monetary value of all pre-petition leave bank accruals, including without limitation, vacation, sick leave, concession leave, and holiday leave, will be the subject of distribution as part of the bankruptcy unsecured creditors' pool. All leave balances accrued on or before August 1, 2012 (Pre-Petition Leave) shall be placed in the unsecured creditor pool and will not be available for cash-out (or the cash equivalent) by the SBPOA members. This position is consistent with the Recovery Plan adopted by the City Council on May 18, 2015. Under the City's Recovery Plan, all City employees are subject to these restrictions on pre-petition leaves. With the exception of post- petition vacation accrual, all post-petition leave accruals will be deferred pending the final approval and effective date of a Plan of Adjustment by the Bankruptcy Court. Any agreement reached by the parties as to the implementation of this section will be memorialized in a side letter. Section 2 -Vacations A. All employees within the bargaining unit covered by this MOU shall be entitled to annual paid vacations as follows: Completed Years of Continuous Service* 1 year** 5 years 15 years 20 years Rate of Accrual Per Pay Period 3.33 hours 5.0 hours 6.667 hours 8.33 hours 19 Equivalent Hours Per Year 80 hours 120 hours 160 hours 200 hours 13.c Packet Pg. 340 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San *Service year begins on initial date of employment in a full-time regular status. **No vacation granted or accrued, if service is Jess than one year. B. When an employee resigns or otherwise leaves the service of the City and has not used his earned post-petition vacation since his last anniversary date, payment shall be made to the employee for the earned portion of his vacation. Vacation leave will continue to accrue in accordance with Section A (above). Prior to the final approval and the effective date of the City's Plan of Adjustment by the Bankruptcy court, all post-petition vacation accruals shall be paid in accordance with Resolution 2014-158, adopted by the Mayor and Common Council on June 16, 2014. Calculation of payment earned vacation or deduction for unearned vacation upon termination shall be made in accordance with the wage rate in effect on the final day of employment. C. When an employee returns to work after a break in "continuous service," and when such break in continuous service shall have been by leave of absence with approval of the Mayor and Common Council, vacation time shall not accrue during such break in continuous service but shall accrue monthly from the date of return to service from such approved leave of absence, based upon the total length of service of the employee. D. Whenever the terms "years or years of employment" appear herein, it shall be deemed to include all services for the City of San Bernardino. E. If an employee leaves the City service prior to the completion of the year in which he/she used such leave, a deduction will be made from such employee's final paycheck for the unearned portion of such vacation. Employees shall not be allowed to use unearned vacation time. F. Vacation credits may accrue and accumulate for a maximum of two (2) years' total accumulated vacation credits on a carryover basis from year to year. Vacations or portions thereof from any one year so accrued may run consecutively with vacations or portions thereof of the next succeeding year, subject to approval of the Chief. G. Compensation for vacation other than for earned vacation at the time of termination of employment shall be limited to the amount normally earned during regularly assigned working time. H. Once per year, members of the bargaining unit will be granted the option of selling up to one-quarter (1/4) of their post-petition vacation and holidays to the City. The Chief will approve or disapprove a member's request for sellback. An eligible 20 13.c Packet Pg. 341 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San employee shall notify the City by August 1 of his/her request for sellback for the prior fiscal year ending June 30. The City shall compensate eligible employees on the first payday in September. I. In the event that an employee is compensated for less than 50 percent of the total number of work hours in the pay period, he/she shall not accrue vacation hours for that period. J. Approved vacation, sick leave, holiday or compensatory time off shall be considered as time worked for the purpose of Article V, Section (2) I. Section 3-Holidays A. Employees shall be entitled to 10 City-designated holidays, the equivalent of 1 00 holiday hours each year, as listed below: New Year's Day Memorial Day Independence Day Labor Day Veteran's Day (November 11) Thanksgiving Day Day After Thanksgiving Christmas Eve Christmas Day New Year's Eve Additionally, employees shall be entitled to one ten (10) hour floating holiday effective January 1 of each year. Only unit employees who have satisfactorily served in the employ of the City continuously for at least six (6) months in a full-time position shall be eligible to take floating holidays. Employees shall not be allowed to use unearned holiday time. B. The Chief shall consider any request of any employee as to preference for taking floating holidays, provided however, the final right to allot the day to be observed is exclusively reserved to the Chief. C. All full-time employees with the exception of those employees shown in the following paragraphs shall be allowed the above holidays at full pay when such holidays occur within the regular assigned working period, provided they are in a paid status during any portion of the working day immediately preceding or succeeding the holiday. If it becomes necessary for employees to work on any of the City-designated holidays, ten (1 0) hours shall be placed in their holiday account. 21 13.c Packet Pg. 342 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San D. Upon separation from the City, employees shall be paid for 80% of his/her current holiday account balance. E. Holidays as listed above shall be allowed on Monday, if any such holiday falls on Sunday, and shall be allowed on the preceding Friday, if any such holiday falls on Saturday, for all employees except those covered by other provisions herein. If the Christmas and New Year holidays occur on Mondays, these holidays and the holiday eves will be observed on Mondays and Tuesdays. F. Employees may accrue a maximum of 120 hours in their holiday bank. Section 4 • Sick Leave A. Sick leave means absence from duty of an officer or employee because of illness or injury, exposure to contagious disease, attendance upon a member of his immediate family who is seriously ill or requires the care or attendance of an officer or employee, or death in the immediate family of the officer or employee. Immediate family means: husband; wife; grandmother; grandfather; mother; father; sister; brother; son; daughter; mother-in-law; father-in-law; sister-in-law; brother-in-law; daughter-in-law; or son-in-law. B. Not more than one-half (1/2) of an employee's annual sick leave accrual within any calendar year may be granted to an officer or employee for the care of or attendance upon members of his immediate family. Not more than 40 hours of sick leave may be granted to an officer or employee for each absence due to death of a member of his immediate family as defined above. C. No absence due to illness or injury in excess of 40 hours shall be approved except after the presentation of satisfactory evidence of illness or injury; and, a certificate from a practicing physician or an authorized practicing chiropractor approved by the Mayor and Common Council may be required by the Chief and shall be subject to his approval concerning said absence. The Mayor and Common Council shall have the power to require that any person claiming the sick leave benefits of this MOU be examined at any reasonable time or intervals by the County Health Officer or other designated physician, and in the event of an adverse report, to reject such claim for sick leave in whole or in part, and to terminate sick leave compensation. In the event of the refusal of any person to submit to such examination after notification, the Mayor and Common Council may terminate sick leave compensation and reject any claim therefor. The Mayor and Common Council shall have the right to require the presentation of a certificate from a practicing physician or the County Health Officer stating that an officer or employee is physically able to perform his work and duties satisfactorily before permitting an officer or employee who has been on sick leave to return to work. D. In order to receive compensation while absent on sick leave, the employee shall notify his immediate superior or the station commander prior to the time 22 13.c Packet Pg. 343 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San set for beginning his daily duties, or as may be specified by the Chief. When the absence is for more than one work day, the employee may be required to file a physician's certificate or a personal affidavit with the Director of Human Resources stating the cause of the absence. E. Sick leave with pay shall be granted to all regular employees. Sick leave shall not be considered as a right, which an employee may use at his discretion, but shall be allowed only in case of necessity and actual personal sickness or disability, except as otherwise provided herein. F. Whenever an employee is compensated hereunder for sick leave and has not had a vacation at the end of the current calendar year, he shall be allowed to take his vacation in the calendar year he returns to duty. G. Whenever the term "service of City" appears herein, it shall be deemed to include all service of the City of San Bernardino. H. All full-time officers and employees of the City who are actively on duty, have been in the service of said City for six (6) months or more continuously, and who are compelled to be absent from their work on account of illness or injury other than that which is compensable under Article V, Section 6, Injury Leave, of this MOU, shall receive their full salary, wages or compensation for a period of one (1) day for each month of continuous service, provided that such salary, wages or compensation shall cease upon the exhaustion of all accumulated sick leave. I. Sick leave accruals and payouts (Section 5 below) shall only include post- petition sick leave accrued after August 1, 2012. An employee may only accrue a maximum of 1040 hours of sick leave. Time off with pay for sick leave shall be considered as time worked for purposes of the accrual of sick leave only. Sick leave shall not accumulate during periods of leave of absence without pay. Employees will not be allowed to use unearned sick leave. J. The 48 hours of sick leave granted after six (6) calendar months of continuous service as herein provided for all full-time employees shall be computed at the rate of approximately 4.0 hours per pay period. In the event that an employee works less than 50 percent of the total normal work hours in the pay period, he shall receive no sick leave benefit for such pay period and shall not be credited with the 4.0 hours of sick leave. K. Approved vacation, sick leave, holiday or compensatory time off shall be considered as time worked for the purpose of computing sick leave benefits only. 23 13.c Packet Pg. 344 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 5 • Payment for Unused Sick Leave A. All permanent employees or the estate of any such deceased employee who dies during employment shall be entitled to receive payment for unused post- petition sick leave, subject to the restrictions and conditions as set forth below. B. Employees or the estate of any such deceased employee who dies during employment, after the completion of five (5) years of continuous full-time employment with the City, upon retirement, death or termination of employment, except through dismissal or resignation with prejudice, shall receive compensation of 50 percent of accumulated and unused post-petition sick leave. After 20 years of continuous service with the City of San Bernardino, compensation will be seventy-five percent (75 %) of all accumulated and unused post-petition sick leave. C. For the purpose of this section, the "retirement" shall have the meaning ascribed to it and the definition therefore as set forth in Section 20060 of the Government Code. D. Any conversion of sick leave resulting from industrial disability will be provided to an employee in accordance with applicable provisions of the Labor Code. E. Each fiscal year an employee may elect to receive payment in lieu of accrued post-petition sick leave, provided such employee has used 32 hours or less of post-petition sick leave during the fiscal year ending June 30th. 1. An eligible employee shall notify the City by August1 st of his/her desire to receive such payment. The City shall compensate eligible employees on the first payday in September. 2. An employee receiving such pay shall receive at the then current salary rate pay for one-fourth (1/4) of the number of hours of post-petition sick leave accrued; less those hours used for the fiscal year period. The employee's accrued post- petition sick leave shall be reduced by the number of post-petition sick leave hours for which pay is provided. F. At the time of separation from service, any employee having fifteen (15) years of continuous service with the City of San Bernardino, may cash out up to 50% of unused post-petition sick leave. At the time of separation from service, any employee having 20 years of continuous service with the City of San Bernardino, may cash out up to 75% of unused post-petition sick leave. 24 13.c Packet Pg. 345 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 6 -Injury Leave Employees will have a choice of doctor on work-related injury, in accordance with existing State Labor Code. The parties understand that Association may submit the issue of the applicability of California Government Code Section 45010 as it pertains to City Resolution No. 6433, Section 6, for determination by way of an action for declaratory judgment to be filed in the San Bernardino County Superior Court. The City does not waive its defense that this issue has been decided in favor of the City by a binding decision of the Court of Appeal, nor does the City hereunder agree to pay any costs or expenses of the litigation. When injury is sustained in the course and scope of employment with the City, said employee shall be compensated under the provisions of the Workers' Compensation Insurance and Safety Act of California and not under the provisions of the MOU; provided that he/she shall be reimbursed pursuant to the provisions of California Labor Code Section 4850 during the first 365 days of disability, provided further that these payments may be terminated pursuant to the provisions of California Government Code Section 21023.6. Employees who are receiving payments under Labor Code Section 4850 shall accrue vacation, sick leave and holiday credits during such absence from duty. When employees are off duty on injury leave and have not had a vacation at the end of the current year, they shall be allowed to take this vacation in the calendar year they return to duty. Section 7 -Leave of Absence Without Pay A. Leave of absence without pay is a temporary non-pay status and absence from duty granted at the request of the employee. The Mayor and Common Council may grant leave of absence without pay for a period not to exceed six (6) months, upon the positive recommendation of the Chief and the City Manager. Under justifiable conditions, said leave may be extended by the Mayor and Common Council for additional periods. A leave of absence without pay will be considered favorably if it is to be expected that the employee will return to duty and that at least one of the following benefits will result: increased job ability, protection or improvement of the employee's health, retention of a desirable employee or furtherance of a program in the interest of the City. Examples or conditions for which a leave of absence without pay may be granted are: 1. For an employee who is a disabled veteran requiring medical treatment. 25 13.c Packet Pg. 346 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San 2. For an employee who is temporarily mentally or physically unable to perform his duties. 3. For an employee who files for or assumes elected office. 4. For maternity or paternity leave, upon the recommendation of the attending physician. 5. For military leave when the employee has less than one ( 1) year of service to qualify for leave with pay. A, An approved leave of absence without pay for less than 60 days in any calendar year will not be considered a break in service. Leave in excess of 60 days shall result in the advancement of the employee's anniversary date and compensation advancement date to such date as will account for the total period of uncompensated time off. Failure to return to duty at the expiration of the approved leave of absence without pay shall constitute an automatic resignation. B. The City's contribution towards an employee's health and life insurance premiums will not be extended beyond the last day of the month in which the absence without pay begins if the leave of absence without pay becomes effective during the first 15 days of the month, nor beyond the last day of the next succeeding month if the leave of absence without pay becomes effective after the 15th day of the month, unless the employee is returned to work from leave of absence without pay status prior to the date the City's contribution would be discontinued. In the event the employee desires to maintain full health and life insurance coverage while on leave of absence without pay status, he may arrange to pay the insurance premiums for the coverage desired (both the employee and the employer portions). It is the responsibility of the employee to contact the payroll section in this regard. The payment of the amount of the premiums must be made to the payroll section prior to the date on which the City's participation will terminate. Payments must be made monthly thereafter until the employee either returns to work or his employment with the City is terminated. C. Upon an employee's return to work, the City's contribution towards the employee's health and life insurance premiums will begin on the first day of the month following the end of the leave of absence without pay if that leave of absence without pay terminates between the 1st and 15th days of the month, or on the 1st day of the next succeeding month if the leave of absence without pay terminates after the 15th day of the month. D. Notwithstanding any other provision of this section to the contrary, the City will continue its contribution for health and life insurance premiums of an employee on leave of absence due to any injury or illness arising out of and in the course of his or her employment with the City. 26 13.c Packet Pg. 347 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San E. In circumstances in which either the Federal Family Leave Act or the State Medical and Family Leave Act apply, the City shall adhere to the requirements of the Acts. Section 8 • Military Leave A. An employee who shall enter the Armed Forces of the United States during war or national emergency as declared by the President or the Congress of the United States shall be entitled to leave of absence without pay during such service and for a period of 90 days thereafter. Every such employee and/or officer returning to the City within the time herein specified, and who has been honorably discharged from such service shall be reinstated without loss of status or seniority, provided they are not physically or mentally incapacitated from performing the duties of said office or position. B. Compensation of employees on temporary military leave of absence is found in Military & Veterans Code Section 395.01, which currently provides in part as follows: "Any public employee who is on temporary military leave of absence and who has been in the service of the public agency from which the leave is taken for a period of not less than one year immediately prior to the day on which the absence begins shall be entitled to receive his salary or compensation as such public employee for the first 30 calendar days of any such absence. Pay for such purposes shall not exceed 30 days in any one fiscal year. For the purposes of this section in determining the one year of public agency service, all service of said public employee in the recognized military service shall be counted as public agency service." C. All persons appointed to fill such position during war or such national emergency shall be temporary appointees only. D. In the event of circumstances, which require reserve "call-up," the City will meet and confer with the POA over the impact of the call-up on unit members. ARTICLE VI • WORKING CONDITIONS Section 1 ·Work Schedules The standard workday represents the tour of duty for which an employee is regularly scheduled for work during a 24-hour period commencing from the start of the employee's assigned shift. A regularly scheduled tour of duty, which commences before 27 13.c Packet Pg. 348 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San midnight and ends the following day, shall be reported for payroll purposes as time worked for the day in which the tour of duty began. Work schedules shall be as defined herein, except as otherwise provided for: A. 5/40 Work Schedule: The 5/40 work schedule shall consist of a 40-hour workweek consisting of five (5), eight-(8) hour workdays, exclusive of any meal periods assigned by management. B. 9/80 Work Schedule: The 9/80 work schedule shall consist of 80 work hours in a two (2) week period, consisting of eight (8), nine-(9) hour work days and one (1 ), eight (8) hour work day, exclusive of any meal periods assigned by management. C. 4/10 Work Schedule: The 4/10 work schedule shall consist of a 40-hour workweek consisting of four (4), ten-(1 0) hour workdays, exclusive of any meal periods assigned by management. Since the four-day, ten-hours-per-day plan (4/1 0) has been a successful method of operation in the Patrol Division, it shall continue with exceptions of special details within that Division. D. Work Schedule Adjustment: It is recognized that during the term of this agreement, it may be necessary for management to make changes in the work schedule to meet the needs of the service, based on the results of a management audit and/or other circumstances that may arise. Any shift schedule changes are subject to the meet and confer process. Except for emergencies or in case of special needs where management finds it necessary to make such changes, it shall notify the Association indicating the proposed change prior to its implementation. Where such change would significantly affect the working conditions of a significantly large number of employees in the unit and where the Association requests to meet with management, the parties shall expeditiously undertake to consult, as provided by Section 350 et. Seq., of the California Government Code regarding the impact the change would have on the employees of the unit. In cases of special needs where it would be advantageous to make temporary changes to the regularly assigned shift of some personnel, the Department will make a good faith attempt to give one (1) week advance notice to the affected employee(s). The Department will not make special needs changes that result in the disruption of consecutive work days. It is recognized that it may be necessary for management to make unscheduled temporary changes to regularly assigned shifts based on emergencies or matters of public safety. E. Lunch Hours: Only officers in Patrol will be allowed to take paid meal breaks. 28 Police Safety MOU 13.c Packet Pg. 349 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 2 • Shift Change Subject to authorization of the Chief, Assistant Chief, Captain, Area Commander or Station Commander, employees in the unit should be allowed to exchange time with other employees of equal rank on the following basis: A. Time exchanged shall be with equal rank and be agreeable with both parties and shall be requested in a memo signed by both employees. B. The time exchange requested shall be initiated with the immediate supervisor of the employee requesting the exchange. C. Time exchanged may be by one standard workday or by a half (1/2) standard workday. D. Time exchanged shall be repaid by one standard workday or by a half (1/2) standard workday, within a seven-(7) day period. E. Since this is done for the convenience of the employee, in no case shall a shift exchange or repayment of a shift exchange be considered in computation of overtime. Section 3 • Probationary Period The probationary period for positions in this unit shall be 12 months from the date of hire. Section 4 • Seniority Seniority is herein defined to be an employee's length of service with no break in service within the Police Department and/or classification in which the employee is presently assigned. The department may consider seniority in vacation scheduling, shift assignments and transfers within classification. Section 5 · Reemployment An employee who has terminated City employment and who is subsequently rehired in the same classification in a regular position within a 90-day period may receive restoration of salary step. Seniority shall begin anew as of the rehire date. All other authorized benefits shall accrue as of the date of rehire. 29 Police Safety MOU 13.c Packet Pg. 350 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 6 -Physical Examinations The City shall pay medical fees for the physical examination of any police officer when such examination is required and directed by the City. ARTICLE VII -GENERAL PROVISIONS Section 1 -Term The Term of this Agreement shall be five (5) years, commencing on July 1, .2015. The dates of this Agreement shall be fiscal years: 2015-2016; 2016~2017; 2017-2018; 2018- 2019; and 2019-2020. Section 2-Notice of Intent to Reopen Commencing on January 1, 2020, either Party may submit to the other, a written request to bargain for a successor agreement, including a list of proposals on economic or non-economic issues. Section 3 -Housing Incentives During the term of this Agreement, the City shall provide HUD housing incentives to officers wishing to purchase homes within the City of San Bernardino ("Community Revitalization Program"). Such incentives shall represent a 50% discount from the list price of the home. All participants in this program must commit to live in the property for three (3) years. The City shall provide to the SBPOA a summary of the terms of this Community Revitalization Program. Section 4 -Recruitment Obligations The City and the SBPOA acknowledge that there has been significant attrition of police safety members and that coming to an agreement on the essential terms and conditions of employment is the first step in stabilizing the San Bernardino Police Department. In recognition of the need to rebuild the Department, the SBPOA agrees that, as a condition of an agreement to the economic terms, it will actively participate in the formulation and implementation of an aggressive recruitment campaign to attract new hires and lateral police officers. 30 Police Safety MOU 13.c Packet Pg. 351 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 5 -Per Diem/Reimbursement Policy Th.e City shall pay employees per diem rates for authorized travel and lodging related to attendance at schools, training, and other approved work related duties. Per diem rates will include meals and mileage to be determined by location and destination of the school or business attended and in accordance with the guidelines the U.S. General Services Administration. The rates are periodically updated and are set by the destination /location of the school or business location being attended. The current rate information can be found at www.gsa.gov. No receipts will be required for the per diem. And all requests must be submitted within 45 days upon completion of the authorized travel. The City of San Bernardino will arrange for and pay the employee's lodging expenses. Lodging receipts will be submitted to the City by the travelling employee. Additional expenses (such as parking, rental vehicles, ancillary duty costs) will be reimbursed by the City of San Bernardino upon the employee submitting receipts for such job related costs. Requirements for receiving reimbursement for these expenses will be provided in the City of San Bernardino's Department/Director Letter, No. 32. Section 6-Release of Claims CaiPERS 13.989% Cost Sharing Imposition: The SBPOA agrees to release any and all claims regarding the January 28, 2013 imposition of the 13.989% cost sharing amount to the CaiPERS contribution. These claims are incorporated into claims referred to in Appendix A. Section 7 -Severability If any provision of the MOU is held by the proper legislative or judicial authority to be unlawful, unenforceable, unconstitutional or not in accordance with applicable statutes or not applicable to Charter cities, all other provisions of the MOU shall remain in full force and effect for the duration of this MOU. If there is any conflict between the provisions of this MOU and the provisions of federal, state, or local government regulations, the provisions of the federal, state or local government regulations shall be controlling. Upon the issuance of a decision declaring any article, section or portion of this MOU to be unlawful, unenforceable, unconstitutional or not applicable to Charter cities, the parties agree to meet and confer immediately concerning only those articles, sections, and portions. 31 Police Safety MOU 13.c Packet Pg. 352 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Section 8 -Waiver Clause The City and the Association for the life of the MOU each agrees that the other shall not be obligated to meet and confer with respect to any subject or matter referred to or covered by this MOU. Section 9 -Prevailing Benefits All benefits, privileges and working conditions authorized for the employees at the present time, which are not included in this MOU shall remain in full force during the term of this MOU, unless changed by mutual consent. Section 10-Dispute Resolution The Parties acknowledge that there are terms and conditions set forth above which may not be resolved by mutual agreement. The Parties agrees that in the event any disputes cannot be resolved, such disputes shall be submitted to the Honorable Judge Gregg Zive for resolution. 32 Police Safety MOU 13.c Packet Pg. 353 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San APPENDIX A Bankruptcy Provisions and Release of Claims 1. The MOU will become effective upon execution by the parties, provided however that the MOU will become null and void and of no further effect if the City's Plan of Adjustment is not approved by the Bankruptcy Court. 2. The City will append the MOU to its Plan of Adjustment, and the Plan and confirmation order shall provide for Court approval of the MOU. 3. Under the Plan all claims of the SBPOA and its members with respect to wages, pensions (including implementation of cost sharing and elimination of the EPMC benefit), other benefits and other terms and conditions of employment that arose prior to the date of the confirmation of the Plan, including, without limitations, all claims arising from the City's changes to the terms and conditions of employment and/or rejection of the prior MOU (collectively the "Police Claims"), shall be treated as general unsecured claims under the Plan, and the City and its officers shall be discharged from such Police Claims upon confirmation of the Plan; provided, however, that any claims arising under the MOU after it is executed by the City and the SBPOA (e.g. grievances) shall not be discharged as long as (a) the SBPOA complies with the terms of the SBPOA Settlement, and, (b) the Court confirms the Plan. 4. The SBPOA shall support confirmation of the Plan that incorporates the SBPOA Settlement. 5. The City and the SBPOA shall stipulate and agree on the amount of the Police Claims. The SBPOA shall vote the full amount of the Police Claims in favor of the Plan and shall file a brief in support of confirmation of the Plan. 6. The SBPOA Settlement is not a solicitation by the City, and the SBPOA's commitment to vote the Police Claims in favor of the Plan is not effective until the Court approves a Disclosure Statement that incorporated the SBPOA Settlement. 33 Police Safety MOU 13.c Packet Pg. 354 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San INDEX Subject Agency Personnel Rights ........................................................................................... 3 Assignment to Higher Position .................................................................................. 13 Bilingual Pay ............................................................................................................. 15 Books and Tuition Allowance .................................................................................... 17 Court Fines ............................................................................................................... 15 Deferred Compensation ............................................................................................ 18 Definition of Terms ..................................................................................................... 1 Educational Incentive ............................................................................................... 14 Employee Representative ........................................................................................... 7 Employees' Rights ...................................................................................................... 3 Employer-Employee Relations Committee ............................................................... 1 0 Grievance Procedure .................................................................................................. 5 Health/Life Insurance-Active Employees ............................................................... 15 Holidays .................................................................................................................... 21 Housing Incentives ................................................................................................... 30 Injury Leave .............................................................................................................. 23 Investigation Rights .................................................................................................... 8 Leave of Absence Without Pay ................................................................................. 25 Management Rights ................................................................................................... 2 Military Leave ........................................................................................................... 26 Mutual Aid ................................................................................................................... 3 No Strike ..................................................................................................................... 4 Non-Discrimination ..................................................................................................... 9 Notice of Intent to Reopen ........................................................................................ 30 On-Caii/Caii-Back/Standby ....................................................................................... 13 Overtime ................................................................................................................... 12 Payment for Unused Sick Leave .............................................................................. 23 Payroll Deductions ..................................................................................................... .4 Per Diem/Reimbursement Policy .............................................................................. 30 PERS/Retirement Plan ............................................................................................. 11 Personnel Files ........................................................................................................... 9 Physical Examinations .............................................................................................. 29 Political Activity ........................................................................................................... 9 Pre-Petition Leave Banks ......................................................................................... 19 Prevailing Benefits .................................................................................................... 31 Probationary Period .................................................................................................. 29 Rain Gear/Utility Uniforms ........................................................................................ 17 Recognition ................................................................................................................. 4 Recruitment Obligations ........................................................................................... 30 Reemployment ......................................................................................................... 29 Release of Claims .................................................................................................... 31 35 Police Safety MOU 13.c Packet Pg. 355 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Subject. ................................................................................................................ Page Replacing/Repairing Personal Property .................................................................... 18 Safety Equipment ..................................................................................................... 18 Salaries ..................................................................................................................... 11 Seniority .................................................................................................................... 29 Service Pins .............................................................................................................. 18 Severability ............................................................................................................... 31 Shift Change ............................................................................................................. 28 Sick Leave ................................................................................................................ 22 Term ......................................................................................................................... 33 Use of City Resources .............................................................................................. 1 0 Vacations .................................................................................................................. 19 Waiver Clause .......................................................................................................... 31 Work Schedules ....................................................................................................... 27 36 Police Safety MOU 13.c Packet Pg. 356 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San References During the term of this Memorandum of Understanding (MOU), the attached Resolution and Department/Director Letters (DOL) may be modified. Official documents will be located in the City Manager's Office. 13.c Packet Pg. 357 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San ATTEST: POLICE SAFETY EMPLOYEES' MEMORANDUM OF UNDERSTANDING 2015-2020 Georgeann Hanna, City Clerk Approved as to form: Gary D. Saenz, City Attorney 34 Police Safety MOU 13.c Packet Pg. 358 Attachment: Side Letter Agreement Between the City and the SBPOA.Attachment 2 (6764 : Side Letter Agreement Between the City and the San Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Jim Tickemyer, Parks, Recreation, & Community Services Director Subject: Addendum to Amend the Performance Period Deadline for Visual Performing Art Grant Award Agreement Recommendation Adopt Resolution No. 2020-133 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager or designee to execute an addendum to the Visual and Performing Art Grant Award Agreements amending the performance period deadline to December 31, 2020. Background The Visual and Performing Arts Grant was made available to qualifying non -profit arts organizations, Parks and Recreation community centers, and classroom teachers within the San Bernardino City Unified School District (including charter schools), SBVC and CSUSB for the enhancement and support of city-wide art and cultural programs of benefit and interest to a broad segment of the population. The Arts and Historical Preservation Commission recommended 15 recipients that were awarded funding ranged from $900 - $50,000 for visual and performing art programs. The funding consideration for approved programs was for a one-year performance period beginning July 1, 2019 through June 30, 2020 for grant recipients. The restrictions set forth by the COVID-19 pandemic had an immediate effect on the award recipients and their ability to continue to meet the performance period deadline of June 30, 2020 as set forth in the agreement. Due to the impact of the COVID -19 pandemic that resulted in closure of schools, entertainment venues, large gatherings, and other educational facilities, several of the award reci pients have been forced to postpone programming. Discussion In consideration of the unforeseen circumstances affected by the COVID -19 pandemic on the award recipients programming, the City believes that it is befitting to grant the recipients an extended performance period. The extended performance period will allow the award recipients to achieve program 14 Packet Pg. 359 6780 Page 2 goals and objectives and to provide the committed efforts to educate, enhance and benefit the cultural and economic well-being of the community through visual and performing arts. 2020-2025 Key Strategic Targets and Goals The request to extend the performance period aligns with Key Target No. 2: Focused, Aligned Leadership and Unified Community by building a culture that attracts, retains, and motivates the highest quality of talent. Fiscal Impact There is no fiscal impact to the City. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-133, authorizing the City Manager or designee to execute an addendum to the Visual and Performing Art Grant Award Agreements amending the performance period deadline to December 31, 2020. Attachments Attachment 1 Resolution 2020-133; Exhibit “A” - Addendum to Grant Award Agreement; Attachment 2 Exhibit “B” - Addendum to Agreement-Akoma Unity Center Exhibit “C” - Addendum to Agreement-Arts Connection-San Bernardino Exhibit “D” - Addendum to Agreement-Cajon Chamber Choir Booster Club Exhibit “E” - Addendum to Agreement-CSU, San Bernardino Opera Theatre Exhibit “F” - Addendum to Agreement-City of San Bernardino Parks, Recreation and Community Services Exhibit “G” - Addendum to Agreement-Empire Wind Ensemble Exhibit “H” - Addendum to Agreement-Junior University Theater Exhibit “I” - Addendum to Agreement--SBCUSD Visual & Performing Arts K-6 Bucket Percussion Exhibit “J” - Addendum to Agreement-SBCUSD Visual & Performing Arts K-12 Music and Band Percussion Exhibit “K” - Addendum to Agreement-San Bernardino Symphony Orchestra Exhibit “L” - Addendum to Agreement-San Bernardino Valley College Foundation Exhibit “M” - Addendum to Agreement-San Bernardino Valley Concert Association Exhibit “N” - Addendum to Agreement-Sinfonia Mexicana Mariachi Youth Academy Exhibit “O” - Addendum to Agreement-San Bernardino Teen Music Workshop Exhibit “P” - Addendum to Agreement-The Little Gallery of San 14 Packet Pg. 360 6780 Page 3 Bernardino Ward: All Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-84, authorizing the execution of 15 Visual and Performing Art Grant Agreements with recipients recommended by the Arts and Historical Preservation Commission for FY 2018/19. 14 Packet Pg. 361 RESOLUTION NO. 2020-133 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE AN ADDENDUM TO THE VISUAL AND PERFORMING ART GRANT AWARD AGREEMENTS AMENDING THE PERFORMANCE PERIOD DEADLINE TO DECEMBER 31, 2020 WHEREAS, on June 5, 2019 the Mayor and City Council of the City of San Bernardino authorized the City Manager or designee to execute Visual and Performing Art Grant Agreements to 15 recipients recommended by the Arts and Historical Preservation Commission for a performance period of July 1, 2019 to June 30, 2020; and WHEREAS, due to the impact of the restrictions set forth in response to the COVID-19 pandemic resulting in the closure of schools, large gatherings, and entertainment venues, several of the grant award recipients were forced to postpone programming; and WHEREAS, the Mayor and City Council now desire to authorize the City Manager to extend the performance period deadline to December 31, 2020. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and Akoma Unity Center amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 2. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and Arts Connection amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 3. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and Cajon High School Chamber Choir Booster Club amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 4. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and California State University, San Bernardino Opera Theatre amending 14.a Packet Pg. 362 Attachment: PR.Addendum to Agreement Art Grant Award.RESOLUTION [Revision 2] (6780 : Addendum to Amend the Performance Period Resolution No. 2020-133 the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 5. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and City of San Bernardino, Parks, Recreation and Community Services Department amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 6. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and Empire Wind Ensemble amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 7. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and Junior University amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 8. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and San Bernardino City Unified School District Visual and Performing Arts (K-6 Instrumental Music, Bucket Percussion) amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 9. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and San Bernardino City Unified School District Visual and Performing Arts (K-12 Instrumental Music, Band and Percussion amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 10. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and San Bernardino Symphony Orchestra amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 11. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and San Bernardino Valley College Foundation amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. 14.a Packet Pg. 363 Attachment: PR.Addendum to Agreement Art Grant Award.RESOLUTION [Revision 2] (6780 : Addendum to Amend the Performance Period Resolution No. 2020-133 SECTION 12. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and San Bernardino Valley Concert Association (Garcia Center for the Arts) amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 13. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and Mexicana Mariachi Youth Academy amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 14. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and San Bernardino Teen Music Workshop amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 15. That the City Manager of the City of San Bernardino is hereby authorized to execute an addendum to the Visual and Performing Art Grant Award Agreement between the City of San Bernardino and The Little Gallery of San Bernardino amending the performance period deadline to December 31, 2020 attached hereto as Exhibit “B” and incorporated reference herein as if fully set forth. SECTION 16. 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 the re is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 17. 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 18. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino 14.a Packet Pg. 364 Attachment: PR.Addendum to Agreement Art Grant Award.RESOLUTION [Revision 2] (6780 : Addendum to Amend the Performance Period Resolution No. 2020-133 Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 14.a Packet Pg. 365 Attachment: PR.Addendum to Agreement Art Grant Award.RESOLUTION [Revision 2] (6780 : Addendum to Amend the Performance Period Resolution No. 2020-133 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 14.a Packet Pg. 366 Attachment: PR.Addendum to Agreement Art Grant Award.RESOLUTION [Revision 2] (6780 : Addendum to Amend the Performance Period 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org June 22, 2020 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “A” 14.b Packet Pg. 367 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 1.Addendum to Agreements Exhibit A (6780 : Addendum to Amend 290 North D St, San Bernardino, CA 92401 | P: 909-384-7272 | www.SBCity.org June 22, 2020 Akoma Unity Center 1367 North California San Bernardino, CA 92411 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND AKOMA UNITY CENTER This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “B” 14.c Packet Pg. 368 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 Arts Connection - Visual Arts Building Room 308 5500 University Parkway San Bernardino, CA 92407 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ARTS CONNECTION This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “C” 14.c Packet Pg. 369 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 Cajon Chamber Choir Booster Club Attn: Matthew Thomas 1200 West Hill Drive San Bernardino, CA 92407 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CAJON CHAMBER CHOIR BOOSTER CLUB This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “D” 14.c Packet Pg. 370 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 CSUSB Opera Theatre 5500 University Parkway San Bernardino, CA 92407 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CSU SAN BERNARDINO OPERA THEATRE This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” D. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. E. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. F. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “E” 14.c Packet Pg. 371 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 City of San Bernardino Parks, Recreation and Community Services 290 N D Street San Bernardino, CA 92401 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND CITY OF SAN BERNARDINO PARKS, RECREATION & COMMUNITY SERVICES This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “F” 14.c Packet Pg. 372 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 Empire Wind Ensemble 471 Magnolia Avenue San Bernardino, CA 92405 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND EMPIRE WIND ENSEMBLE This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “G” 14.c Packet Pg. 373 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 Junior University Theater 2772 Sterling Avenue San Bernardino, CA 92404 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND JUNIOR UNIVERSITY THEATER This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “H” 14.c Packet Pg. 374 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 SBCUSD Visual and Performing Arts Attn: Jessica Swanson, K-6 Bucket Percussion 777 North F Street San Bernardino, CA 92404 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SBCUSD VISUAL AND PERFORMING ARTS (K-6 BUCKET PERCUSSION) This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “I” 14.c Packet Pg. 375 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 SBCUSD Visual and Performing Arts Attn: Jessica Swanson, K-6 Bucket Percussion 777 North F Street San Bernardino, CA 92404 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SBCUSD VISUAL AND PERFORMING ARTS (K-12 BAND & PERCUSSION) This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “J” 14.c Packet Pg. 376 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 San Bernardino Symphony Orchestra 536 W. 11th Street, Suite 1 San Bernardino, CA 92402 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SAN BERNARDINO SYMPHONY ORCHESTRA This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “K” 14.c Packet Pg. 377 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 San Bernardino Valley College Foundation 701 South Mt Vernon San Bernardino, CA 92410 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SAN BERNARDINO VALLEY COLLEGE FOUNDATION This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “L” 14.c Packet Pg. 378 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 San Bernardino Valley Concert Association Garcia Center for the Arts 536 W. 11th Street San Bernardino, CA 92402 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SAN BERNARDINO VALLEY CONCERT ASSOCIATION (Garcia Center for the Arts) This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “M” 14.c Packet Pg. 379 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 Sinfonia Mexicana Mariachi Youth Academy 562 W. 4th Street San Bernardino, CA 92410 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SINFONIA MEXICANA MARIACHI YOUTH ACADEMY This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “N” 14.c Packet Pg. 380 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 San Bernardino Teen Music Workshop 455 South K Street San Bernardino, CA 92410 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND SAN BERNARDINO TEEN MUSIC WORKSHOP This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “O” 14.c Packet Pg. 381 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to June 22, 2020 The Little Gallery of San Bernardino 459 4TH Street San Bernardino, CA 92401 I, Teri Ledoux, the City of San Bernardino City Manager, hereby authorize the amendment of the performance period deadline to be extended to December 31, 2020 as adopted under Resolution 2020- XX, which states: “…the Mayor and City Council has authorized the City Manager or designee to execute an addendum to the Agreements extending the performance period deadline to December 31, 2020.” ADDENDUM ARTS GRANT RECIPIENT AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND THE LITTLE GALLERY OF SAN BERNARDINO This Addendum is made and entered into this 22nd day of June, 2020 by and between the City of San Bernardino (“City”), and Akoma Unity Center (“Recipient”). City or Recipient are hereinafter sometimes referred to individually as “Party” and collectively as the “Parties.” A. The City agrees to extend the Performance Period deadline of June 30, 2020 as set forth in Section 2. Compensation and Expenses 2.2 Grant Reversion, to the amended deadline date of December 31, 2020. The City and Recipient agree to adhere to the stipulations set forth in the Agreement originally signed by the City and Recipient. All terms, provisions, and conditions of the Agreement adopted under Resolution 2019-84 shall remain in full force and effect. B. The Parties desire by this Agreement is to memorialize the nature of the Project and desire to set forth their rights, duties, and liabilities in connection with the City’s support of the Project. C. No official or employee of the City has a financial interest, within the provision of California Government Code § 1090-1092, in the subject matter of this Agreement. CITY OF SAN BERNARDINO Teri Ledoux City Manager EXHIBIT “P” 14.c Packet Pg. 382 Attachment: PR.Addendum to Agreement Art Grant Award.ATTACHMENT 2.Addendum to Agreements Exhibit B to P (6780 : Addendum to Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Eric McBride, Acting Chief of Police Subject: First Amendment to the MOU Between Public Safety Acadamy and the Police Department Recommendation Adopt Resolution No. 2020-134 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute the First Amendment to the Memorandum of Understanding between the Public Safety Academy of San Bernardino Inc. (PSA) and the San Bernardino Police Department. Background On February 23, 2017, the Mayor and City Council adopted Resolution No. 2017 -18, authorizing the execution of a Memorandum of Understanding (MOU) between the City of San Bernardino and the Public Safety Academy of San Bernardino Inc., and the appropriation of $125,880 in the FY 2016/17 budget. The MOU aims to provide $125,880 for part -time Cadet positions to be filled by pending graduates or graduates of the PSA. Since entering the MOU, the department has hired two cadets that met the required specifications of the agreement. Department staff has communicated with authorized representatives of the PSA. Both parties reco gnize that the specifications of the agreement limit the department's ability to find qualified candidates to fill cadet positions. Both parties have agreed to amend the MOU to allow the department to select from a broader range of candidates. Discussion The PSA's mission is to develop students toward a career in public safety service. Through the California Department of Education's Career Pathways Grant, a portion of the funding provided through this agreement was given to the PSA. The Career Pathways Trust was established in July 2014 with the goal of leading high school students to postsecondary credential or certification aligned with the regional workforce needs. The police cadet program is a transitional program that provides training and insight into the law enforcement organization. Part-time police cadets perform a wide variety of tasks at the police department and are especially valuable at supplementing positions that are short-staffed. Exposure to cadet positions better qualify individuals fo r a police 15 Packet Pg. 383 6759 Page 2 officer position or other positions within the department. The current MOU establishes that the department will only use this funding to select applicants from the PSA for the cadet program. In 2017 , the MOU was signed by the Principal of the PSA, Jennifer Stickel, and then City Manager, Mark Scott. Department staff met with Principal Stickel and explained that the current conditions of the MOU limit the department's ability to fill cadet positions with the grant funding. Expanding the qualifications to include applicants from all schools in the City of San Bernardino would benefit the entire community, allow the department to fill these valuable positions, and still align with the intent of the Career Pathways Grant. Principal Stickel agreed to amend the MOU to include the following language: "...in keeping with the intent of the California Department of Education's Career Pathways Grant, absent a qualified candidate from the Public Safety Academy of San Bernardino Inc., the San Bernardino Police Department may hire a candidate with a nexus to the City of San Bernardino. Without limitation, the nexus requirement is met by any individuals who either graduated from or spent at least one academic year at San Bernardino City Unified School District school or charter school within the City limits, participants in or former graduates of the San Bernardino explorer program, and students of community colleges or universities within the City limits..." The amended agreement will allow the department to hire qualified candidates from the City of San Bernardino community if the PSA does not have a qualified applicant available. 2020-2025 Key Strategic Targets and Goals The request to amend the MOU between the San Bernardino Police Department and the Public Safety Academy of San Bernardino Inc. aligns with Key Target No. 2: Focused, aligned Leadership and Unified Community, by developing and implementing a community engagement plan, and 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, adopt Resolution No. 2020-134, authorizing the City Manager to execute the First Amendment to the Memorandum of Understanding between the Public Safety Academy of San Bernardino Inc. (PSA) and the San Bernardino Police Department. Attachments Attachment 1 Resolution 2020-134 Attachment 2 MOU Attachment 3 Amendment 15 Packet Pg. 384 6759 Page 3 Ward: All Synopsis of Previous Council Actions: February 21, 2017 Mayor and City Council adopted Resolution No. 2017-18, authorizing the execution of a Memorandum of Understanding between the City of San Bernardino and the Public Safety Academy of San Bernardino Inc. and the appropriation of $125,880 into the FY16/17 budget. 15 Packet Pg. 385 RESOLUTION NO. 2020-134 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 MEMORANDUM OF UNDERSTANDING BETWEEN THE PUBLIC SAFETY ACADEMY OF SAN BERNARDINO INC. AND THE SAN BERNARDINO POLICE DEPARTMENT WHEREAS, on February 23, 2017, the Mayor and City Council adopted Resolution No. 2017-18, authorizing the execution of a Memorandum of Understanding (MOU) between the City of San Bernardino and the Public Safety Academy of San Bernardino Inc. and the appropriation of $125,880 in the FY16/17 budget; and WHEREAS, the department has been unable to identify a sufficient number of candidates under the current MOU limitations to fill Cadet positions; and WHEREAS, the authorized PSA representative has agreed to amend the requirements of the MOU to allow the department to select from a broader candidate pool. 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 Memorandum of Understanding between the Public Safety Academy of San Bernardino Inc. (PSA) and the San Bernardino Police Department by adding language allowing the department to select from candidates with a nexus to City of San Bernardino Schools as outlined in the amendment attached hereto as Exhibit “A.” 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 i s 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. 15.a Packet Pg. 386 Attachment: PD-First Amendment to the PSA MOU-Resolution (6759 : First Amendment to the MOU Between Public Safety Acadamy and the Resolution No. 2020-134 APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________, 2020. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 15.a Packet Pg. 387 Attachment: PD-First Amendment to the PSA MOU-Resolution (6759 : First Amendment to the MOU Between Public Safety Acadamy and the Resolution No. 2020-134 CERTIFICATION STATE OF CALIFORNIA) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 15.a Packet Pg. 388 Attachment: PD-First Amendment to the PSA MOU-Resolution (6759 : First Amendment to the MOU Between Public Safety Acadamy and the MEMORANDUM OF UNDERSTANDING Public Safety Academy of San Bernardino Inc. and San Bernardino Police Department THIS AGREEMENT is executed between the Public Safety Academy of San Bernardino Inc. (PSASB Inc), and the San Bernardino Police Department (SBPD). This agreement reflects a collaborative arrangement to expose selected pending/former graduates of the Public Safety Academy of San Bernardino to the San Bernardino Police Department's Police Cadet Program, with the intent of them becoming a future police officer/law enforcement trainee candidate. Scope of Agreement A. The Public Safety Academy of San Bernardino will: 1. Allocate to the San Bernardino Police Department funding in the amount of $125,880.00 in order to provide training to selected candidates in preparation of a career as an officer with the San Bernardino Police Department. Funding for the training incorporates monies obtained by the Public Safety Academy of San Bernardino, as awarded to them by the California Department of Education's Career Pathways Grant, in the amount of $83,880.00. An additional $42,000.00 is provided to the program by the Public Safety Academy of San Bernardino's general operating budget. 2. Selection of candidates will be predicated on successful completion of the application process and required background investigation. B. San Bernardino Police Department will: 1. Identify a point of contact to act within SBPD as a liaison with the Public Safety Academy of San Bernardino. 2. Provide expenditure data on a semi-annual basis in a general ledger format accounting to the Public Safety Academy of San Bernardino of funds used for the training of selected candidates, and of the progress being made by them in preparation of employment as a police officer. 3. There is no specific requirement for continued funding of the Cadet program under the Pathways Grant once grant funds are exhausted, but Cadets hired under the grant may continue in the Cadet positions if City-funded Cadet positions are vacant. 15.b Packet Pg. 389 Attachment: PD-First Amendment to the PSA MOU-MOU (6759 : First Amendment to the MOU Between Public Safety Acadamy and the Police Terms of Agreement A. Agreement shall commence effective immediately following approval of this MOU by the City of San Bernardino. B. The Agreement shall remain in force until such time as the funding provided by the Public Safety Academy is expended and the Police Department continues the training as provided for in this agreement. Jennifer Stickel, Principal Mark Scott, City Manager Public Safety Academy of San Bernardino City of San Bernardino D a t e: Date: Approved as to Form: Gary D. Saenz, City Attorney By:_______________________ 2 15.b Packet Pg. 390 Attachment: PD-First Amendment to the PSA MOU-MOU (6759 : First Amendment to the MOU Between Public Safety Acadamy and the Police FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING This First Amendment (“First Amendment”) to the Memorandum of Understanding Between the Public Safety Academy of San Bernardino, Inc. (“Academy”) and the City of San Bernardino (“City”) dated _______________, 2020 (“ Original Agreement”) is made and entered into by and between the City and the Academy as of the last date set forth below. City and Academy may hereafter be referred to collectively as Parties. RECITALS A. The Parties entered into the Original Agreement to establish a collaborative arrangement to expose pending and future graduates of the Academy to the City’s Police Department Cadet Program. B. The Parties now wish to expand the permitted uses of the funding provided under the Original Agreement to enable the City’s Police Department to utilize the funds more broadly to benefit those with a nexus to the City of San Bernardino. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Agreement is amended as follows: 1. A new Section B.4. is hereby added to the Original Agreement to read as follows: “4. Notwithstanding the foregoing, in keeping with the intent of the California Department of Education's Career Pathways Grant, absent a qualified candidate from the Public Safety Academy of San Bernardino Inc., the San Bernardino Police Department may hire a candidate with a nexus to the City of San Bernardino. Without limitation, the nexus requirement is met by any individuals who either graduated from or spent at least one academic year at San Bernardino City Unified School District school or charter school within the City limits, participants in or former graduates of the San Bernardino explorer program, and students of community colleges or universities within the City limits..” 2. Except as modified by this First Amendment, all provisions of the Original Agreement shall remain in full force and effect for the term thereof. 3. This First Amendment may be executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument. SIGNATURES ON FOLLOWING PAGE 15.c Packet Pg. 391 Attachment: PD-First Amendment to the PSA MOU-Amendment (6759 : First Amendment to the MOU Between Public Safety Acadamy and the SIGNATURE PAGE TO FIRST AMENDMENT TO MEMORANDUM OF UNDERSTANDING Dated: June __, 2020 Public Safety Academy of San Bernardino By: Jennifer Stickel Its: Principal Dated: June __, 2020 City of San Bernardino By: Teri Ledoux Its: City Manager 15.c Packet Pg. 392 Attachment: PD-First Amendment to the PSA MOU-Amendment (6759 : First Amendment to the MOU Between Public Safety Acadamy and the Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Eric McBride, Acting Chief of Police Subject: Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding Recommendation Adopt Resolution 2020-135 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to accept the BJA Fiscal Year 2020 Coronavirus Emergency Supplemental Funding Program Grant in the amount of $632,422; and authorizing the Director of Finance to amend the Fiscal Year 2020/21 budget, appropriating $632,422 in both revenue and expenditures. Background On May 8, 2020, the U.S. Department of Justice released the Coronavirus Emergency Supplemental Funding Program Solicitation Fiscal Year 2020 Formula Grant Solicitation. On May 26, 2020, the San Bernardino Police Department submitted an application requesting $632,422 in grant funding to prevent, prepare for, and respond to the Coronavirus. The Department’s application was approved, and the full amount has been awarded to the Department. There is no cost matching responsibility from the City with this grant. The Coronavirus has harmed law enforcement agencies through several avenues. COVID-19 exposure resulted in the depletion of supplies, temporary removal of equipment, and reduced personnel for quarantine purposes. Additionally, cities have experienced protests, increase in crime, and a high er demand for efficient online services. Discussion On May 30, 2020, the Department was notified that it was awarded $632,422 in grant funding. The Department intends to use this funding to purchase vehicles, equipment, technologies, and to support staffing needs to respond to the COVID-19 environment. 2020-2025 Key Strategic Targets and Goals The request to authorize the receipt, obligation and expenditure of the Coronavirus Grant Funds aligns with Key Target No. 1: Financial Stability by implementing, maintaining, and updating a fiscal accountability plan. 16 Packet Pg. 393 6768 Page 2 Fiscal Impact The fiscal impact to the City is a budget amendment of $632,422 to revenue and expenditures in the FY 2020/21 budget. Due to the timing of the grant award notification , staff was unable to amend the FY 2019/20 adopted budget or include it in the proposed FY 2020/21 budget. No grant expenditures will occur until after July 1, 2020. Grant account numbers will be established after approval of this item. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2020-135, authorizing the City Manager to accept the BJA Fiscal Year 2020 Coronavirus Emergency Supplemental Funding Program Grant in the amount of $632,422; and authorizing the Director of Finance to amend the Fiscal Year 2020/21 budget, appropriating $632,422 in both revenue and expenditures. Attachments Attachment 1 Resolution 2020-135 Attachment 2 Award Document Attachment 3 Budget Summary Ward: All Synopsis of Previous Council Actions: None 16 Packet Pg. 394 RESOLUTION NO. 2020-135 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO ACCEPT THE BUREAU OF JUSTICE ADMINISTRATION FY20 CORONAVIRUS EMERGENCY SUPPLEMENTAL FUNDING PROGRAM GRANT AND AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE FY2020/21 BUDGET APPROPRIATING $632,422 IN BOTH REVENUE AND EXPENDITURES WHEREAS, the City of San Bernardino has been awarded the BJA FY 20 Coronavirus Emergency Supplemental Funding Program Grant in the amount of $632,422; and WHEREAS, the City will use the funding to improve preparedness, prevention, and response to the Coronavirus. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager is hereby authorized to accept the BJA FY 20 Coronavirus Emergency Supplemental Funding Program Grant in the amount of $632,422. The City Manager is further authorized to execute any documents necessary and advisable to effectuate the grant. SECTION 2. The Director of Finance is hereby authorized to amend the FY 2020/21 budget, appropriating $632,422 in both revenue and expenditures 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. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. 16.a Packet Pg. 395 Attachment: PD-Accept Coronavirus FY20 Grant-Reso- (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Resolution No. 2020-135 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho , City Attorney 16.a Packet Pg. 396 Attachment: PD-Accept Coronavirus FY20 Grant-Reso- (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Resolution No. 2020-135 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 16.a Packet Pg. 397 Attachment: PD-Accept Coronavirus FY20 Grant-Reso- (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Department of Justice (DOJ) Office of Justice Programs Washington, D.C. 20531Office of the Assistant Attorney General May 30, 2020 Ms. Teri Ledoux City of San Bernardino 710 North D Street, Post Office Box 1559 San Bernardino, CA 92402-1559 Dear Ms. Ledoux: On behalf of Attorney General William P. Barr, it is my pleasure to inform you that the Office of Justice Programs (OJP), U.S. Department of Justice (DOJ), has approved the application by City of San Bernardino for an award under the OJP funding opportunity entitled "BJA FY 20 Coronavirus Emergency Supplemental Funding Program." The approved award amount is $632,422. These funds are for the project entitled City of San Bernardino COVID-19 Preparation Plan. The award document, including award conditions, is enclosed. The entire document is to be reviewed carefully before any decision to accept the award. Also, the webpage entitled "Legal Notices: Special circumstances as to particular award conditions" (ojp.gov/funding/Explore/LegalNotices-AwardReqts.htm) is to be consulted prior to an acceptance. Through that "Legal Notices" webpage, OJP sets out -- by funding opportunity -- certain special circumstances that may or will affect the applicability of one or more award requirements. Any such legal notice pertaining to award requirements that is posted through that webpage is incorporated by reference into the award. Please note that award requirements include not only award conditions, but also compliance with assurances and certifications that relate to conduct during the period of performance for the award. Because these requirements encompass financial, administrative, and programmatic matters, as well as other important matters (e.g., specific restrictions on use of funds), it is vital that all key staff know the award requirements, and receive the award conditions and the assurances and certifications, as well as the application as approved by OJP. (Information on all pertinent award requirements also must be provided to any subrecipient of the award.) Should City of San Bernardino accept the award and then fail to comply with an award requirement, DOJ will pursue appropriate remedies for non-compliance, which may include termination of the award and/or a requirement to repay award funds. Please direct questions regarding this award as follows: - For program questions, contact Gerardo Velazquez, Program Manager at (202) 598-7412; and - For financial questions, contact the Customer Service Center of OJP's Office of the Chief Financial Officer at (800) 458-0786, or at ask.ocfo@usdoj.gov. We look forward to working with you. Sincerely, Encl. Katharine T. Sullivan Principal Deputy Assistant Attorney General 16.b Packet Pg. 398 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) Director Michael L. Alston Department of Justice (DOJ) Office of Justice Programs May 30, 2020 Ms. Teri Ledoux City of San Bernardino 710 North D Street Post Office Box 1559 San Bernardino, CA 92402-1559 Congratulations on your recent award. The Office for Civil Rights (OCR), Office of Justice Programs (OJP), U.S. Department of Justice (DOJ) has been delegated the responsibility for ensuring that recipients of federal financial assistance from the OJP, the Office of Community Oriented Policing Services (COPS), and the Office on Violence Against Women (OVW) are not engaged in discrimination prohibited by law. Several federal civil rights laws, such as Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, require recipients of federal financial assistance to give assurances that they will comply with those laws. In addition to those civil rights laws, many grant program statutes contain nondiscrimination provisions that require compliance with them as a condition of receiving federal financial assistance. For a complete review of these civil rights laws and nondiscrimination requirements, in connection with OJP and other DOJ awards, see https://ojp.gov/funding/Explore/LegalOverview/CivilRightsRequirements.htm Under the delegation of authority, the OCR investigates allegations of discrimination against recipients from individuals, entities, or groups. In addition, the OCR conducts limited compliance reviews and audits based on regulatory criteria. These reviews and audits permit the OCR to evaluate whether recipients of financial assistance from the Department are providing services in a non- discriminatory manner to their service population or have employment practices that meet equal-opportunity standards. If you are a recipient of grant awards under the Omnibus Crime Control and Safe Streets Act or the Juvenile Justice and Delinquency Prevention Act and your agency is part of a criminal justice system, there are two additional obligations that may apply in connection with the awards: (1) complying with the regulation relating to Equal Employment Opportunity Programs (EEOPs); and (2) submitting findings of discrimination to OCR. For additional information regarding the EEOP requirement, see 28 CFR Part 42, subpart E, and for additional information regarding requirements when there is an adverse finding, see 28 C.F.R. §§ 42.204(c), .205(c)(5). Please submit information about any adverse finding to the OCR at the above address. We at the OCR are available to help you and your organization meet the civil rights requirements that are associated with OJP and other DOJ grant funding. If you would like the OCR to assist you in fulfilling your organization's civil rights or nondiscrimination responsibilities as a recipient of federal financial assistance, please do not hesitate to let us know. Dear Ms. Ledoux: Sincerely, cc:Grant Manager Financial Analyst Washington, DC 20531 Office of Civil Rights 16.b Packet Pg. 399 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) Grant PAGE 1 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance 1. RECIPIENT NAME AND ADDRESS (Including Zip Code) City of San Bernardino 710 North D Street Post Office Box 1559 San Bernardino, CA 92402-1559 8. SUPPLEMENT NUMBER 00 9. PREVIOUS AWARD AMOUNT 10. AMOUNT OF THIS AWARD $ 0 $ 632,422 11. TOTAL AWARD $ 632,422 2a. GRANTEE IRS/VENDOR NO. 956007721 2b. GRANTEE DUNS NO. 805349206 3. PROJECT TITLE City of San Bernardino COVID-19 Preparation Plan 12. SPECIAL CONDITIONS THE ABOVE GRANT PROJECT IS APPROVED SUBJECT TO SUCH CONDITIONS OR LIMITATIONS AS ARE SET FORTH ON THE ATTACHED PAGE(S). 13. STATUTORY AUTHORITY FOR GRANT This project is supported under FY20(BJA - CESF) Pub. L. No. 116-136, Div. B; 28 U.S.C. 530C 14 . CATALOG OF DOMESTIC FEDERAL ASSISTANCE (CFDA Number) 16.034 - Coronavirus Emergency Supplemental Funding Program 15. METHOD OF PAYMENT GPRS AGENCY APPROVAL 16. TYPED NAME AND TITLE OF APPROVING OFFICIAL GRANTEE ACCEPTANCE Katharine T. Sullivan Principal Deputy Assistant Attorney General AGENCY USE ONLY 20. ACCOUNTING CLASSIFICATION CODES 21. FISCAL YEAR FUND CODE BUD. ACT.OFC. DIV. REG.SUB.POMS AMOUNT VDBX 80 00 00 632422 VVDUGT1084 18. TYPED NAME AND TITLE OF AUTHORIZED GRANTEE OFFICIAL Teri Ledoux City Manager 4. AWARD NUMBER:2020-VD-BX-1095 5. PROJECT PERIOD: FROM BUDGET PERIOD: FROM 6. AWARD DATE 7. ACTION Initial 05/30/2020 TO TO 01/20/2020 01/20/2020 01/31/2022 01/31/2022 OJP FORM 4000/2 (REV. 5-87) PREVIOUS EDITIONS ARE OBSOLETE. OJP FORM 4000/2 (REV. 4-88) 19. SIGNATURE OF AUTHORIZED RECIPIENT OFFICIAL 19A. DATE17. SIGNATURE OF APPROVING OFFICIAL 16 16.b Packet Pg. 400 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 2 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Requirements of the award; remedies for non-compliance or for materially false statements The conditions of this award are material requirements of the award. Compliance with any assurances or certifications submitted by or on behalf of the recipient that relate to conduct during the period of performance also is a material requirement of this award. Limited Exceptions. In certain special circumstances, the U.S. Department of Justice ("DOJ") may determine that it will not enforce, or enforce only in part, one or more requirements otherwise applicable to the award. Any such exceptions regarding enforcement, including any such exceptions made during the period of performance, are (or will be during the period of performance) set out through the Office of Justice Programs ("OJP") webpage entitled "Legal Notices: Special circumstances as to particular award conditions" (ojp.gov/funding/Explore/LegalNotices-AwardReqts.htm), and incorporated by reference into the award. By signing and accepting this award on behalf of the recipient, the authorized recipient official accepts all material requirements of the award, and specifically adopts, as if personally executed by the authorized recipient official, all assurances or certifications submitted by or on behalf of the recipient that relate to conduct during the period of performance. Failure to comply with one or more award requirements -- whether a condition set out in full below, a condition incorporated by reference below, or an assurance or certification related to conduct during the award period -- may result in OJP taking appropriate action with respect to the recipient and the award. Among other things, the OJP may withhold award funds, disallow costs, or suspend or terminate the award. DOJ, including OJP, also may take other legal action as appropriate. Any materially false, fictitious, or fraudulent statement to the federal government related to this award (or concealment or omission of a material fact) may be the subject of criminal prosecution (including under 18 U.S.C. 1001 and/or 1621, and/or 34 U.S.C. 10271-10273), and also may lead to imposition of civil penalties and administrative remedies for false claims or otherwise (including under 31 U.S.C. 3729-3730 and 3801-3812). Should any provision of a requirement of this award be held to be invalid or unenforceable by its terms, that provision shall first be applied with a limited construction so as to give it the maximum effect permitted by law. Should it be held, instead, that the provision is utterly invalid or -unenforceable, such provision shall be deemed severable from this award. 1. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 401 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 3 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Applicability of Part 200 Uniform Requirements The Uniform Administrative Requirements, Cost Principles, and Audit Requirements in 2 C.F.R. Part 200, as adopted and supplemented by DOJ in 2 C.F.R. Part 2800 (together, the "Part 200 Uniform Requirements") apply to this FY 2020 award from OJP. The Part 200 Uniform Requirements were first adopted by DOJ on December 26, 2014. If this FY 2020 award supplements funds previously awarded by OJP under the same award number (e.g., funds awarded during or before December 2014), the Part 200 Uniform Requirements apply with respect to all funds under that award number (regardless of the award date, and regardless of whether derived from the initial award or a supplemental award) that are obligated on or after the acceptance date of this FY 2020 award. For more information and resources on the Part 200 Uniform Requirements as they relate to OJP awards and subawards ("subgrants"), see the OJP website at https://ojp.gov/funding/Part200UniformRequirements.htm. Record retention and access: Records pertinent to the award that the recipient (and any subrecipient ("subgrantee") at any tier) must retain -- typically for a period of 3 years from the date of submission of the final expenditure report (SF 425), unless a different retention period applies -- and to which the recipient (and any subrecipient ("subgrantee") at any tier) must provide access, include performance measurement information, in addition to the financial records, supporting documents, statistical records, and other pertinent records indicated at 2 C.F.R. 200.333. In the event that an award-related question arises from documents or other materials prepared or distributed by OJP that may appear to conflict with, or differ in some way from, the provisions of the Part 200 Uniform Requirements, the recipient is to contact OJP promptly for clarification. Compliance with DOJ Grants Financial Guide References to the DOJ Grants Financial Guide are to the DOJ Grants Financial Guide as posted on the OJP website (currently, the "DOJ Grants Financial Guide" available at https://ojp.gov/financialguide/DOJ/index.htm), including any updated version that may be posted during the period of performance. The recipient agrees to comply with the DOJ Grants Financial Guide. Reclassification of various statutory provisions to a new Title 34 of the United States Code On September 1, 2017, various statutory provisions previously codified elsewhere in the U.S. Code were editorially reclassified (that is, moved and renumbered) to a new Title 34, entitled "Crime Control and Law Enforcement." The reclassification encompassed a number of statutory provisions pertinent to OJP awards (that is, OJP grants and cooperative agreements), including many provisions previously codified in Title 42 of the U.S. Code. Effective as of September 1, 2017, any reference in this award document to a statutory provision that has been reclassified to the new Title 34 of the U.S. Code is to be read as a reference to that statutory provision as reclassified to Title 34. This rule of construction specifically includes references set out in award conditions, references set out in material incorporated by reference through award conditions, and references set out in other award requirements. 2. 3. 4. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 402 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 4 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Required training for Point of Contact and all Financial Points of Contact Both the Point of Contact (POC) and all Financial Points of Contact (FPOCs) for this award must have successfully completed an "OJP financial management and grant administration training" by 120 days after the date of the recipient's acceptance of the award. Successful completion of such a training on or after January 1, 2018, will satisfy this condition. In the event that either the POC or an FPOC for this award changes during the period of performance, the new POC or FPOC must have successfully completed an "OJP financial management and grant administration training" by 120 calendar days after -- (1) the date of OJP's approval of the "Change Grantee Contact" GAN (in the case of a new POC), or (2) the date the POC enters information on the new FPOC in GMS (in the case of a new FPOC). Successful completion of such a training on or after January 1, 2018, will satisfy this condition. A list of OJP trainings that OJP will consider "OJP financial management and grant administration training" for purposes of this condition is available at https://www.ojp.gov/training/fmts.htm. All trainings that satisfy this condition include a session on grant fraud prevention and detection. The recipient should anticipate that OJP will immediately withhold ("freeze") award funds if the recipient fails to comply with this condition. The recipient's failure to comply also may lead OJP to impose additional appropriate conditions on this award. Requirements related to "de minimis" indirect cost rate A recipient that is eligible under the Part 200 Uniform Requirements and other applicable law to use the "de minimis" indirect cost rate described in 2 C.F.R. 200.414(f), and that elects to use the "de minimis" indirect cost rate, must advise OJP in writing of both its eligibility and its election, and must comply with all associated requirements in the Part 200 Uniform Requirements. The "de minimis" rate may be applied only to modified total direct costs (MTDC) as defined by the Part 200 Uniform Requirements. Requirement to report potentially duplicative funding If the recipient currently has other active awards of federal funds, or if the recipient receives any other award of federal funds during the period of performance for this award, the recipient promptly must determine whether funds from any of those other federal awards have been, are being, or are to be used (in whole or in part) for one or more of the identical cost items for which funds are provided under this award. If so, the recipient must promptly notify the DOJ awarding agency (OJP or OVW, as appropriate) in writing of the potential duplication, and, if so requested by the DOJ awarding agency, must seek a budget-modification or change-of-project-scope grant adjustment notice (GAN) to eliminate any inappropriate duplication of funding. 5. 6. 7. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 403 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 5 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Requirements related to System for Award Management and Universal Identifier Requirements The recipient must comply with applicable requirements regarding the System for Award Management (SAM), currently accessible at https://www.sam.gov/. This includes applicable requirements regarding registration with SAM, as well as maintaining the currency of information in SAM. The recipient also must comply with applicable restrictions on subawards ("subgrants") to first-tier subrecipients (first-tier "subgrantees"), including restrictions on subawards to entities that do not acquire and provide (to the recipient) the unique entity identifier required for SAM registration. The details of the recipient's obligations related to SAM and to unique entity identifiers are posted on the OJP web site at https://ojp.gov/funding/Explore/SAM.htm (Award condition: System for Award Management (SAM) and Universal Identifier Requirements), and are incorporated by reference here. This condition does not apply to an award to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). 8. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 404 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 6 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Employment eligibility verification for hiring under the award 1. The recipient (and any subrecipient at any tier) must-- A. Ensure that, as part of the hiring process for any position within the United States that is or will be funded (in whole or in part) with award funds, the recipient (or any subrecipient) properly verifies the employment eligibility of the individual who is being hired, consistent with the provisions of 8 U.S.C. 1324a(a)(1) and (2). B. Notify all persons associated with the recipient (or any subrecipient) who are or will be involved in activities under this award of both-- (1) this award requirement for verification of employment eligibility, and (2) the associated provisions in 8 U.S.C. 1324a(a)(1) and (2) that, generally speaking, make it unlawful, in the United States, to hire (or recruit for employment) certain aliens. C. Provide training (to the extent necessary) to those persons required by this condition to be notified of the award requirement for employment eligibility verification and of the associated provisions of 8 U.S.C. 1324a(a)(1) and (2). D. As part of the recordkeeping for the award (including pursuant to the Part 200 Uniform Requirements), maintain records of all employment eligibility verifications pertinent to compliance with this award condition in accordance with Form I-9 record retention requirements, as well as records of all pertinent notifications and trainings. 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions designed to ensure compliance with this condition. 4. Rules of construction A. Staff involved in the hiring process For purposes of this condition, persons "who are or will be involved in activities under this award" specifically includes (without limitation) any and all recipient (or any subrecipient) officials or other staff who are or will be involved in the hiring process with respect to a position that is or will be funded (in whole or in part) with award funds. B. Employment eligibility confirmation with E-Verify For purposes of satisfying the requirement of this condition regarding verification of employment eligibility, the recipient (or any subrecipient) may choose to participate in, and use, E-Verify (www.e-verify.gov), provided an appropriate person authorized to act on behalf of the recipient (or subrecipient) uses E-Verify (and follows the proper E-Verify procedures, including in the event of a "Tentative Nonconfirmation" or a "Final Nonconfirmation") to confirm employment eligibility for each hiring for a position in the United States that is or will be funded (in whole or in part) with award funds. C. "United States" specifically includes the District of Columbia, Puerto Rico, Guam, the Virgin Islands of the United States, and the Commonwealth of the Northern Mariana Islands. D. Nothing in this condition shall be understood to authorize or require any recipient, any subrecipient at any tier, or 9. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 405 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 7 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS any person or other entity, to violate any federal law, including any applicable civil rights or nondiscrimination law. E. Nothing in this condition, including in paragraph 4.B., shall be understood to relieve any recipient, any subrecipient at any tier, or any person or other entity, of any obligation otherwise imposed by law, including 8 U.S.C. 1324a(a)(1) and (2). Questions about E-Verify should be directed to DHS. For more information about E-Verify visit the E-Verify website (https://www.e-verify.gov/) or email E-Verify at E-Verify@dhs.gov. E-Verify employer agents can email E- Verify at E-VerifyEmployerAgent@dhs.gov. Questions about the meaning or scope of this condition should be directed to OJP, before award acceptance. Requirement to report actual or imminent breach of personally identifiable information (PII) The recipient (and any "subrecipient" at any tier) must have written procedures in place to respond in the event of an actual or imminent "breach" (OMB M-17-12) if it (or a subrecipient) -- (1) creates, collects, uses, processes, stores, maintains, disseminates, discloses, or disposes of "personally identifiable information (PII)" (2 CFR 200.79) within the scope of an OJP grant-funded program or activity, or (2) uses or operates a "Federal information system" (OMB Circular A-130). The recipient's breach procedures must include a requirement to report actual or imminent breach of PII to an OJP Program Manager no later than 24 hours after an occurrence of an actual breach, or the detection of an imminent breach. All subawards ("subgrants") must have specific federal authorization The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements for authorization of any subaward. This condition applies to agreements that -- for purposes of federal grants administrative requirements -- OJP considers a "subaward" (and therefore does not consider a procurement "contract"). The details of the requirement for authorization of any subaward are posted on the OJP web site at https://ojp.gov/funding/Explore/SubawardAuthorization.htm (Award condition: All subawards ("subgrants") must have specific federal authorization), and are incorporated by reference here. Specific post-award approval required to use a noncompetitive approach in any procurement contract that would exceed $250,000 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements to obtain specific advance approval to use a noncompetitive approach in any procurement contract that would exceed the Simplified Acquisition Threshold (currently, $250,000). This condition applies to agreements that -- for purposes of federal grants administrative requirements -- OJP considers a procurement "contract" (and therefore does not consider a subaward). The details of the requirement for advance approval to use a noncompetitive approach in a procurement contract under an OJP award are posted on the OJP web site at https://ojp.gov/funding/Explore/NoncompetitiveProcurement.htm (Award condition: Specific post-award approval required to use a noncompetitive approach in a procurement contract (if contract would exceed $250,000)), and are incorporated by reference here. 10. 11. 12. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 406 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 8 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Unreasonable restrictions on competition under the award; association with federal government SCOPE. This condition applies with respect to any procurement of property or services that is funded (in whole or in part) by this award, whether by the recipient or by any subrecipient at any tier, and regardless of the dollar amount of the purchase or acquisition, the method of procurement, or the nature of any legal instrument used. The provisions of this condition must be among those included in any subaward (at any tier). 1. No discrimination, in procurement transactions, against associates of the federal government Consistent with the (DOJ) Part 200 Uniform Requirements -- including as set out at 2 C.F.R. 200.300 (requiring awards to be "manage[d] and administer[ed] in a manner so as to ensure that Federal funding is expended and associated programs are implemented in full accordance with U.S. statutory and public policy requirements") and 200.319(a) (generally requiring "[a]ll procurement transactions [to] be conducted in a manner providing full and open competition" and forbidding practices "restrictive of competition," such as "[p]lacing unreasonable requirements on firms in order for them to qualify to do business" and taking "[a]ny arbitrary action in the procurement process") -- no recipient (or subrecipient, at any tier) may (in any procurement transaction) discriminate against any person or entity on the basis of such person or entity's status as an "associate of the federal government" (or on the basis of such person or entity's status as a parent, affiliate, or subsidiary of such an associate), except as expressly set out in 2 C.F.R. 200.319(a) or as specifically authorized by USDOJ. 2. Monitoring The recipient's monitoring responsibilities include monitoring of subrecipient compliance with this condition. 3. Allowable costs To the extent that such costs are not reimbursed under any other federal program, award funds may be obligated for the reasonable, necessary, and allocable costs (if any) of actions designed to ensure compliance with this condition. 4. Rules of construction A. The term "associate of the federal government" means any person or entity engaged or employed (in the past or at present) by or on behalf of the federal government -- as an employee, contractor or subcontractor (at any tier), grant recipient or -subrecipient (at any tier), agent, or otherwise -- in undertaking any work, project, or activity for or on behalf of (or in providing goods or services to or on behalf of) the federal government, and includes any applicant for such employment or engagement, and any person or entity committed by legal instrument to undertake any such work, project, or activity (or to provide such goods or services) in future. B. Nothing in this condition shall be understood to authorize or require any recipient, any subrecipient at any tier, or any person or other entity, to violate any federal law, including any applicable civil rights or nondiscrimination law. 13. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 407 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 9 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Requirements pertaining to prohibited conduct related to trafficking in persons (including reporting requirements and OJP authority to terminate award) The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements (including requirements to report allegations) pertaining to prohibited conduct related to the trafficking of persons, whether on the part of recipients, subrecipients ("subgrantees"), or individuals defined (for purposes of this condition) as "employees" of the recipient or of any subrecipient. The details of the recipient's obligations related to prohibited conduct related to trafficking in persons are posted on the OJP web site at https://ojp.gov/funding/Explore/ProhibitedConduct-Trafficking.htm (Award condition: Prohibited conduct by recipients and subrecipients related to trafficking in persons (including reporting requirements and OJP authority to terminate award)), and are incorporated by reference here. Determination of suitability to interact with participating minors SCOPE. This condition applies to this award if it is indicated -- in the application for the award (as approved by DOJ)(or in the application for any subaward, at any tier), the DOJ funding announcement (solicitation), or an associated federal statute -- that a purpose of some or all of the activities to be carried out under the award (whether by the recipient, or a subrecipient at any tier) is to benefit a set of individuals under 18 years of age. The recipient, and any subrecipient at any tier, must make determinations of suitability before certain individuals may interact with participating minors. This requirement applies regardless of an individual's employment status. The details of this requirement are posted on the OJP web site at https://ojp.gov/funding/Explore/Interact-Minors.htm (Award condition: Determination of suitability required, in advance, for certain individuals who may interact with participating minors), and are incorporated by reference here. Compliance with applicable rules regarding approval, planning, and reporting of conferences, meetings, trainings, and other events The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable laws, regulations, policies, and official DOJ guidance (including specific cost limits, prior approval and reporting requirements, where applicable) governing the use of federal funds for expenses related to conferences (as that term is defined by DOJ), including the provision of food and/or beverages at such conferences, and costs of attendance at such conferences. Information on the pertinent DOJ definition of conferences and the rules applicable to this award appears in the DOJ Grants Financial Guide (currently, as section 3.10 of "Postaward Requirements" in the "DOJ Grants Financial Guide"). Requirement for data on performance and effectiveness under the award The recipient must collect and maintain data that measure the performance and effectiveness of work under this award. The data must be provided to OJP in the manner (including within the timeframes) specified by OJP in the program solicitation or other applicable written guidance. Data collection supports compliance with the Government Performance and Results Act (GPRA) and the GPRA Modernization Act of 2010, and other applicable laws. OJP Training Guiding Principles Any training or training materials that the recipient -- or any subrecipient ("subgrantee") at any tier -- develops or delivers with OJP award funds must adhere to the OJP Training Guiding Principles for Grantees and Subgrantees, available at https://ojp.gov/funding/Implement/TrainingPrinciplesForGrantees-Subgrantees.htm. 14. 15. 16. 17. 18. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 408 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 10 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Effect of failure to address audit issues The recipient understands and agrees that the DOJ awarding agency (OJP or OVW, as appropriate) may withhold award funds, or may impose other related requirements, if (as determined by the DOJ awarding agency) the recipient does not satisfactorily and promptly address outstanding issues from audits required by the Part 200 Uniform Requirements (or by the terms of this award), or other outstanding issues that arise in connection with audits, investigations, or reviews of DOJ awards. Potential imposition of additional requirements The recipient agrees to comply with any additional requirements that may be imposed by the DOJ awarding agency (OJP or OVW, as appropriate) during the period of performance for this award, if the recipient is designated as "high- risk" for purposes of the DOJ high-risk grantee list. Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 42 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 42, specifically including any applicable requirements in Subpart E of 28 C.F.R. Part 42 that relate to an equal employment opportunity program. Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 54 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 54, which relates to nondiscrimination on the basis of sex in certain "education programs." Compliance with DOJ regulations pertaining to civil rights and nondiscrimination - 28 C.F.R. Part 38 The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable requirements of 28 C.F.R. Part 38 (as may be applicable from time to time), specifically including any applicable requirements regarding written notice to program beneficiaries and prospective program beneficiaries. Currently, among other things, 28 C.F.R. Part 38 includes rules that prohibit specific forms of discrimination on the basis of religion, a religious belief, a refusal to hold a religious belief, or refusal to attend or participate in a religious practice. Part 38, currently, also sets out rules and requirements that pertain to recipient and subrecipient ("subgrantee") organizations that engage in or conduct explicitly religious activities, as well as rules and requirements that pertain to recipients and subrecipients that are faith-based or religious organizations. The text of 28 C.F.R. Part 38 is available via the Electronic Code of Federal Regulations (currently accessible at https://www.ecfr.gov/cgi-bin/ECFR?page=browse), by browsing to Title 28-Judicial Administration, Chapter 1, Part 38, under e-CFR "current" data. 19. 20. 21. 22. 23. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 409 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 11 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Restrictions on "lobbying" In general, as a matter of federal law, federal funds awarded by OJP may not be used by the recipient, or any subrecipient ("subgrantee") at any tier, either directly or indirectly, to support or oppose the enactment, repeal, modification, or adoption of any law, regulation, or policy, at any level of government. See 18 U.S.C. 1913. (There may be exceptions if an applicable federal statute specifically authorizes certain activities that otherwise would be barred by law.) Another federal law generally prohibits federal funds awarded by OJP from being used by the recipient, or any subrecipient at any tier, to pay any person to influence (or attempt to influence) a federal agency, a Member of Congress, or Congress (or an official or employee of any of them) with respect to the awarding of a federal grant or cooperative agreement, subgrant, contract, subcontract, or loan, or with respect to actions such as renewing, extending, or modifying any such award. See 31 U.S.C. 1352. Certain exceptions to this law apply, including an exception that applies to Indian tribes and tribal organizations. Should any question arise as to whether a particular use of federal funds by a recipient (or subrecipient) would or might fall within the scope of these prohibitions, the recipient is to contact OJP for guidance, and may not proceed without the express prior written approval of OJP. Compliance with general appropriations-law restrictions on the use of federal funds (FY 2020) The recipient, and any subrecipient ("subgrantee") at any tier, must comply with all applicable restrictions on the use of federal funds set out in federal appropriations statutes. Pertinent restrictions that may be set out in applicable appropriations acts are indicated at https://ojp.gov/funding/Explore/FY20AppropriationsRestrictions.htm, and are incorporated by reference here. Should a question arise as to whether a particular use of federal funds by a recipient (or a subrecipient) would or might fall within the scope of an appropriations-law restriction, the recipient is to contact OJP for guidance, and may not proceed without the express prior written approval of OJP. Reporting potential fraud, waste, and abuse, and similar misconduct The recipient, and any subrecipients ("subgrantees") at any tier, must promptly refer to the DOJ Office of the Inspector General (OIG) any credible evidence that a principal, employee, agent, subrecipient, contractor, subcontractor, or other person has, in connection with funds under this award-- (1) submitted a claim that violates the False Claims Act; or (2) committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct. Potential fraud, waste, abuse, or misconduct involving or relating to funds under this award should be reported to the OIG by--(1) online submission accessible via the OIG webpage at https://oig.justice.gov/hotline/contact-grants.htm (select "Submit Report Online"); (2) mail directed to: U.S. Department of Justice, Office of the Inspector General, Investigations Division, ATTN: Grantee Reporting, 950 Pennsylvania Ave., NW, Washington, DC 20530; and/or (3) by facsimile directed to the DOJ OIG Investigations Division (Attn: Grantee Reporting) at (202) 616-9881 (fax). Additional information is available from the DOJ OIG website at https://oig.justice.gov/hotline. 24. 25. 26. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 410 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 12 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Restrictions and certifications regarding non-disclosure agreements and related matters No recipient or subrecipient ("subgrantee") under this award, or entity that receives a procurement contract or subcontract with any funds under this award, may require any employee or contractor to sign an internal confidentiality agreement or statement that prohibits or otherwise restricts, or purports to prohibit or restrict, the reporting (in accordance with law) of waste, fraud, or abuse to an investigative or law enforcement representative of a federal department or agency authorized to receive such information. The foregoing is not intended, and shall not be understood by the agency making this award, to contravene requirements applicable to Standard Form 312 (which relates to classified information), Form 4414 (which relates to sensitive compartmented information), or any other form issued by a federal department or agency governing the nondisclosure of classified information. 1. In accepting this award, the recipient-- a. represents that it neither requires nor has required internal confidentiality agreements or statements from employees or contractors that currently prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reporting waste, fraud, or abuse as described above; and b. certifies that, if it learns or is notified that it is or has been requiring its employees or contractors to execute agreements or statements that prohibit or otherwise restrict (or purport to prohibit or restrict), reporting of waste, fraud, or abuse as described above, it will immediately stop any further obligations of award funds, will provide prompt written notification to the federal agency making this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that agency. 2. If the recipient does or is authorized under this award to make subawards ("subgrants"), procurement contracts, or both-- a. it represents that-- (1) it has determined that no other entity that the recipient's application proposes may or will receive award funds (whether through a subaward ("subgrant"), procurement contract, or subcontract under a procurement contract) either requires or has required internal confidentiality agreements or statements from employees or contractors that currently prohibit or otherwise currently restrict (or purport to prohibit or restrict) employees or contractors from reporting waste, fraud, or abuse as described above; and (2) it has made appropriate inquiry, or otherwise has an adequate factual basis, to support this representation; and b. it certifies that, if it learns or is notified that any subrecipient, contractor, or subcontractor entity that receives funds under this award is or has been requiring its employees or contractors to execute agreements or statements that prohibit or otherwise restrict (or purport to prohibit or restrict), reporting of waste, fraud, or abuse as described above, it will immediately stop any further obligations of award funds to or by that entity, will provide prompt written notification to the federal agency making this award, and will resume (or permit resumption of) such obligations only if expressly authorized to do so by that agency. 27. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 411 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 13 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Compliance with 41 U.S.C. 4712 (including prohibitions on reprisal; notice to employees) The recipient (and any subrecipient at any tier) must comply with, and is subject to, all applicable provisions of 41 U.S.C. 4712, including all applicable provisions that prohibit, under specified circumstances, discrimination against an employee as reprisal for the employee's disclosure of information related to gross mismanagement of a federal grant, a gross waste of federal funds, an abuse of authority relating to a federal grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal grant. The recipient also must inform its employees, in writing (and in the predominant native language of the workforce), of employee rights and remedies under 41 U.S.C. 4712. Should a question arise as to the applicability of the provisions of 41 U.S.C. 4712 to this award, the recipient is to contact the DOJ awarding agency (OJP or OVW, as appropriate) for guidance. Encouragement of policies to ban text messaging while driving Pursuant to Executive Order 13513, "Federal Leadership on Reducing Text Messaging While Driving," 74 Fed. Reg. 51225 (October 1, 2009), DOJ encourages recipients and subrecipients ("subgrantees") to adopt and enforce policies banning employees from text messaging while driving any vehicle during the course of performing work funded by this award, and to establish workplace safety policies and conduct education, awareness, and other outreach to decrease crashes caused by distracted drivers. Requirement to disclose whether recipient is designated "high risk" by a federal grant-making agency outside of DOJ If the recipient is designated "high risk" by a federal grant-making agency outside of DOJ, currently or at any time during the course of the period of performance under this award, the recipient must disclose that fact and certain related information to OJP by email at OJP.ComplianceReporting@ojp.usdoj.gov. For purposes of this disclosure, high risk includes any status under which a federal awarding agency provides additional oversight due to the recipient's past performance, or other programmatic or financial concerns with the recipient. The recipient's disclosure must include the following: 1. The federal awarding agency that currently designates the recipient high risk, 2. The date the recipient was designated high risk, 3. The high-risk point of contact at that federal awarding agency (name, phone number, and email address), and 4. The reasons for the high-risk status, as set out by the federal awarding agency. Signing Authority This award must be signed by an authorized official of the applicant State, local, or tribal government, on behalf of that applicant State, unit of local government, or Tribe, unless the applicant designates an organizational unit to apply on its behalf. For example, if designated by a unit of local government, a Police Department or Sheriff’s Office (or similar agency) may apply on behalf of the applicant jurisdiction, as long as the department, office, or agency is listed as the organizational unit on the SF-424. In that case, the head of the designated organizational unit (such as a Police Chief or Sheriff) may sign the award. Documentation of the designation by the appropriate governing body must be retained by the grant recipient. The "Emergency Appropriations for Coronavirus Health Response and Agency Operations" law (Public Law 116-136) includes definitions, reporting requirements, and certain other provisions that apply (whether in whole or in part) to this award. In addition, consistent with the CESF Program's purposes, which involve preparing for, preventing, and responding to the coronavirus national emergency, OJP will provide notice of any additional CESF program-specific grants administrative requirements on an award page, accessible at https://www.ojp.gov/funding/explore/CESF- program-specific-condition, that is incorporated by reference here. 28. 29. 30. 31. 32. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 412 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 14 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS The recipient agrees to comply with OJP grant monitoring guidelines, protocols, and procedures, and to cooperate with BJA and OCFO on all grant monitoring requests, including requests related to desk reviews, enhanced programmatic desk reviews, and/or site visits. The recipient agrees to provide to BJA and OCFO all documentation necessary to complete monitoring tasks, including documentation related to any subawards made under this award. Further, the recipient agrees to abide by reasonable deadlines set by BJA and OCFO for providing the requested documents. Failure to cooperate with BJA's/OCFO's grant monitoring activities may result in sanctions affecting the recipient's DOJ awards, including, but not limited to: withholdings and/or other restrictions on the recipient's access to grant funds; referral to the Office of the Inspector General for audit review; designation of the recipient as a DOJ High Risk grantee; or termination of an award(s). FFATA reporting: Subawards and executive compensation The recipient must comply with applicable requirements to report first-tier subawards ("subgrants") of $25,000 or more and, in certain circumstances, to report the names and total compensation of the five most highly compensated executives of the recipient and first-tier subrecipients (first-tier "subgrantees") of award funds. The details of recipient obligations, which derive from the Federal Funding Accountability and Transparency Act of 2006 (FFATA), are posted on the OJP web site at https://ojp.gov/funding/Explore/FFATA.htm (Award condition: Reporting Subawards and Executive Compensation), and are incorporated by reference here. This condition, including its reporting requirement, does not apply to-- (1) an award of less than $25,000, or (2) an award made to an individual who received the award as a natural person (i.e., unrelated to any business or non-profit organization that he or she may own or operate in his or her name). Required monitoring of subawards The recipient must monitor subawards under this award in accordance with all applicable statutes, regulations, award conditions, and the DOJ Grants Financial Guide, and must include the applicable conditions of this award in any subaward. Among other things, the recipient is responsible for oversight of subrecipient spending and monitoring of specific outcomes and benefits attributable to use of award funds by subrecipients. The recipient agrees to submit, upon request, documentation of its policies and procedures for monitoring of subawards under this award. Use of program income Program income (as defined in the Part 200 Uniform Requirements) must be used in accordance with the provisions of the Part 200 Uniform Requirements. Program income earnings and expenditures both must be reported on the quarterly Federal Financial Report, SF 425. Justice Information Sharing Recipients are encouraged to comply any information-sharing projects funded under this award with DOJ's Global Justice Information Sharing Initiative (Global) guidelines. The recipient (and any subrecipient at any tier) is encouraged to conform to the Global Standards Package (GSP) and all constituent elements, where applicable, as described at: https://it.ojp.gov/ gsp_grantcondition. The recipient (and any subrecipient at any tier) must document planned approaches to information sharing and describe compliance with the GSP and appropriate privacy policy that protects shared information. Avoidance of duplication of networks To avoid duplicating existing networks or IT systems in any initiatives funded by BJA for law enforcement information sharing systems which involve interstate connectivity between jurisdictions, such systems shall employ, to the extent possible, existing networks as the communication backbone to achieve interstate connectivity. 33. 34. 35. 36. 37. 38. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 413 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 15 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Compliance with National Environmental Policy Act and related statutes Upon request, the recipient (and any subrecipient at any tier) must assist BJA in complying with the National Environmental Policy Act (NEPA), the National Historic Preservation Act, and other related federal environmental impact analyses requirements in the use of these award funds, either directly by the recipient or by a subrecipient. Accordingly, the recipient agrees to first determine if any of the following activities will be funded by the grant, prior to obligating funds for any of these purposes. If it is determined that any of the following activities will be funded by the award, the recipient agrees to contact BJA. The recipient understands that this condition applies to new activities as set out below, whether or not they are being specifically funded with these award funds. That is, as long as the activity is being conducted by the recipient, a subrecipient, or any third party, and the activity needs to be undertaken in order to use these award funds, this condition must first be met. The activities covered by this condition are: a. New construction; b. Minor renovation or remodeling of a property located in an environmentally or historically sensitive area, including properties located within a 100-year flood plain, a wetland, or habitat for endangered species, or a property listed on or eligible for listing on the National Register of Historic Places; c. A renovation, lease, or any proposed use of a building or facility that will either (a) result in a change in its basic prior use or (b) significantly change its size; d. Implementation of a new program involving the use of chemicals other than chemicals that are (a) purchased as an incidental component of a funded activity and (b) traditionally used, for example, in office, household, recreational, or education environments; and e. Implementation of a program relating to clandestine methamphetamine laboratory operations, including the identification, seizure, or closure of clandestine methamphetamine laboratories. The recipient understands and agrees that complying with NEPA may require the preparation of an Environmental Assessment and/ or an Environmental Impact Statement, as directed by BJA. The recipient further understands and agrees to the requirements for implementation of a Mitigation Plan, as detailed at https:/ / bja.gov/ Funding/ nepa.html, for programs relating to methamphetamine laboratory operations. Application of This Condition to Recipient's Existing Programs or Activities: For any of the recipient's or its subrecipients' existing programs or activities that will be funded by these award funds, the recipient, upon specific request from BJA, agrees to cooperate with BJA in any preparation by BJA of a national or program environmental assessment of that funded program or activity. Establishment of interest-bearing account If award funds are being drawn down in advance, the recipient (or a subrecipient, with respect to a subaward) is required to establish an interest-bearing account dedicated specifically to this award. Recipients (and subrecipients) must maintain advance payments of federal awards in interest-bearing accounts, unless regulatory exclusions apply (2 C.F.R. 200.305(b)(8)). The award funds, including any interest, may not be used to pay debts or expenses incurred by other activities beyond the scope of the Coronavirus Emergency Supplemental Funding (CESF) program . The recipient also agrees to obligate the award funds in the account(including any interest earned) during the period of performance for the award and expend within 90 days thereafter. Any unobligated or unexpended funds, including interest earned, must be returned to OJP at the time of closeout. Expenditures requiring prior approval No funds under this award may be expended on individual items costing $500,000 or more, or to purchase Unmanned Aerial Systems (UAS), Unmanned Aircraft (UA), and/or Unmanned Aerial Vehicles (UAV) without prior written approval from BJA. Prior approval must be obtained post-award, through the submission and approval of a Grant Adjustment Notice (GAN) through OJP’s Grant Management System (GMS). 39. 40. 41. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 414 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) AWARD CONTINUATION SHEET Grant PAGE 16 OF Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance AWARD DATE 05/30/2020PROJECT NUMBER 2020-VD-BX-1095 SPECIAL CONDITIONS Authorization to obligate (federal) award funds to reimburse certain project costs incurred on or after January 20, 2020 The recipient may obligate (federal) award funds only after the recipient makes a valid acceptance of the award. As of the first day of the period of performance for the award (January 20, 2020), however, the recipient may choose to incur project costs using non-federal funds, but any such project costs are incurred at the recipient's risk until, at a minimum-- (1) the recipient makes a valid acceptance of the award, and (2) all applicable withholding conditions are removed by OJP (via a Grant Adjustment Notice). (A withholding condition is a condition in the award document that precludes the recipient from obligating, expending, or drawing down all or a portion of the award funds until the condition is removed.) Nothing in this condition shall be understood to authorize the recipient (or any subrecipient at any tier) to use award funds to "supplant" State or local funds. Use of funds for DNA testing; upload of DNA profiles If award funds are used for DNA testing of evidentiary materials, any resulting eligible DNA profiles must be uploaded to the Combined DNA Index System ("CODIS," the DNA database operated by the FBI) by a government DNA laboratory with access to CODIS. No profiles generated under this award may be entered or uploaded into any non- governmental DNA database without prior express written approval from BJA. Award funds may not be used for the purchase of DNA equipment and supplies unless the resulting DNA profiles may be accepted for entry into CODIS. Body armor - compliance with NIJ standards and other requirements Ballistic-resistant and stab-resistant body armor purchased with award funds may be purchased at any threat level, make or model, from any distributor or manufacturer, as long as the body armor has been tested and found to comply with applicable National Institute of Justice ballistic or stab standards and is listed on the NIJ Compliant Body Armor Model List (https://nij.gov/topics/technology/body-armor/Pages/compliant-ballistic-armor.aspx). In addition, ballistic- resistant and stab-resistant body armor purchased must be made in the United States and must be uniquely fitted, as set forth in 34 U.S.C. 10202(c)(1)(A). The latest NIJ standard information can be found here: https:/ / nij.gov/ topics/ technology/ body-armor/ pages/ safety-initiative.aspx. Recipient integrity and performance matters: Requirement to report information on certain civil, criminal, and administrative proceedings to SAM and FAPIIS The recipient must comply with any and all applicable requirements regarding reporting of information on civil, criminal, and administrative proceedings connected with (or connected to the performance of) either this OJP award or any other grant, cooperative agreement, or procurement contract from the federal government. Under certain circumstances, recipients of OJP awards are required to report information about such proceedings, through the federal System for Award Management (known as "SAM"), to the designated federal integrity and performance system (currently, "FAPIIS"). The details of recipient obligations regarding the required reporting (and updating) of information on certain civil, criminal, and administrative proceedings to the federal designated integrity and performance system (currently, "FAPIIS") within SAM are posted on the OJP web site at https://ojp.gov/funding/FAPIIS.htm (Award condition: Recipient Integrity and Performance Matters, including Recipient Reporting to FAPIIS), and are incorporated by reference here. 42. 43. 44. 45. OJP FORM 4000/2 (REV. 4-88) 16 16.b Packet Pg. 415 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) Memorandum To: From: Subject: Washington, D.C. 20531 Orbin Terry, NEPA Coordinator Categorical Exclusion for City of San Bernardino The Coronavirus Emergency Supplemental Funding (CESF) Program allows eligible states, local units of government, and tribes to support a broad range of activities including preventing, preparing for, and responding to the coronavirus. All recipients of CESF funding must assist BJA in complying with NEPA and other related federal environmental impact analyses requirements in the use of grant funds, whether the funds are used directly by the grantee or by a sub-grantee or third party. BJA’s expectation is that none of the following activities will be conducted whether under this federal award or a related third party action: (1) New construction (2) Any renovation or remodeling of a property located in an environmentally or historically sensitive area, including property (a) listed on or eligible for listing on the National Register of Historic Places, or (b) located within a 100-year flood plain, a wetland, or habitat for an endangered species (3) A renovation that will change the basic prior use of a facility or significantly change its size (4) Research and technology whose anticipated and future application could be expected to have an effect on the environment (5) Implementation of a program involving the use of chemicals (including the identification, seizure, or closure of clandestine methamphetamine laboratories) other than chemicals that are (a) purchased as an incidental component of a funded activity and (b) traditionally used, for example, in office, household, recreational, or education environments. Consequently, the subject federal action meets the Office of Justice Programs' criteria for a categorical exclusion as contained in paragraph 4(b) of Appendix D to Part 61 of Title 28 of the Code of Federal Regulations. If, however, award funds are proposed to be used for any of the enumerated projects or activities above, grant recipients must contact their grant manager, and receive written approval prior to commencing that project or activity. Questions about this determination may be directed to your grant manager or Orbin Terry, Environmental Coordinator for BJA. Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance Official Grant File 16.b Packet Pg. 416 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) GRANT MANAGER'S MEMORANDUM, PT. I: PROJECT SUMMARY 1. STAFF CONTACT (Name & telephone number) PROJECT NUMBER 6. NAME & ADRESS OF SUBGRANTEE 7. PROGRAM PERIOD 8. BUDGET PERIOD 9. AMOUNT OF AWARD 10. DATE OF AWARD 11. SECOND YEAR'S BUDGET 2020-VD-BX-1095 2. PROJECT DIRECTOR (Name, address & telephone number) 4. TITLE OF PROJECT 12. SECOND YEAR'S BUDGET AMOUNT 13. THIRD YEAR'S BUDGET PERIOD 14. THIRD YEAR'S BUDGET AMOUNT 15. SUMMARY DESCRIPTION OF PROJECT (See instruction on reverse) 5. NAME & ADDRESS OF GRANTEE Grant This project is supported under FY20(BJA - CESF) Pub. L. No. 116-136, Div. B; 28 U.S.C. 530C Francisco Hernandez Captain 710 North D Street San Bernardino, CA 92401-1112 (909) 384-5740 PAGE 11OF The Coronavirus Emergency Supplemental Funding (CESF) Program allows States, U.S. Territories, the District of Columbia, units of local government, and federally recognized tribal governments to support a broad range of activities to prevent, prepare for, and respond to the coronavirus. Funded projects or initiatives may include, but are not limited to, overtime, equipment (including law enforcement and medical personal protective equipment), hiring, supplies (such as gloves, masks, sanitizer), training, travel expenses (particularly related to the distribution of resources to the most impacted areas), and addressing the medical needs of inmates in state, local, and tribal prisons, jails, and detention centers. NCA/NCF Gerardo Velazquez (202) 598-7412 OJP FORM 4000/2 (REV. 4-88) City of San Bernardino COVID-19 Preparation Plan City of San Bernardino 710 North D Street Post Office Box 1559 San Bernardino, CA 92402-1559 TO:01/20/2020 01/31/2022FROM:TO:01/20/2020 01/31/2022FROM: 05/30/2020 $ 632,422 3b. POMS CODE (SEE INSTRUCTIONS ON REVERSE) 3a. TITLE OF THE PROGRAM BJA FY 20 Coronavirus Emergency Supplemental Funding Program Department of Justice (DOJ) Office of Justice Programs Bureau of Justice Assistance 16.b Packet Pg. 417 Attachment: PD-Accept Coronavirus FY20 Grant-Award Report (6768 : Authorization to Accept Department of Justice Coronavirus Emergency Grand Funding) Budget Summary A. Personnel $177,422 $0 $0 $0 $0 $0 $0 $0 $0 $0 $177,422 B. Fringe Benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 C. Travel $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 D. Equipment $345,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $345,000 E. Supplies $30,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $30,000 F. Construction $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 G. Subawards (Subgrants)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 H. Procurement Contracts $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 I. Other $60,000 $0 $20,000 $0 $0 $0 $0 $0 $0 $0 $80,000 Total Direct Costs $612,422 $0 $20,000 $0 $0 $0 $0 $0 $0 $0 $632,422 J. Indirect Costs $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Project Costs $612,422 $0 $20,000 $0 $0 $0 $0 $0 $0 $0 $632,422 Budget Summary Note: Any errors detected on this page should be fixed on the corresponding Budget Detail tab.Non-Federal RequestTotal(s)Federal RequestYear 1 Year 2 (if needed)Federal RequestNon-Federal RequestYear 3 (if needed)Federal RequestNon-Federal RequestYear 4 (if needed)Federal RequestNon-Federal RequestDoes this budget contain conference costs which is defined broadly to include meetings, retreats, seminars, symposia, and training activities? - Y/N No Year 5 (if needed)Federal RequestNon-Federal RequestBudget Category 1 16.c Packet Pg. 418 Attachment: PD-Accept Coronavirus FY20 Grant-Budget Summary (6768 : Authorization to Accept Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Eric McBride, Acting Chief of Police Subject: Authorize Replacement Professional Services Agreement with Axon Enterprise, Inc. Recommendation Adopt Resolution No. 2020-129 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a replacement Professional Services Agreement with Axon Enterprise, Inc., decreasing costs for the remaining two years of an existing five-year agreement by $139,426.56. Background On February 21, 2017, a Professional Services Agreement with Axon Enterprise, Inc. was approved in the amount of $1,078,001.44 for the purchase of 285 body worn camera licenses. On December 6, 2017, the Professional Services Agreement was modified to incorporate the purchase of an additional $529,432.29 in Taser weapons. Discussion As currently structured, the City’s Professional Services Agreement with Axon Enterprise, Inc. obligates our subscription to 285 body worn camera licenses of which 225 are classified as “Unlimited”, 50 classified as “Basic” and 5 are classified as “Unlimited Pro.” With these licenses, the Department receives a physical camera as well as an array of user permissions, dependent on license category, within Axon’s cloud-based data management system known as Evidence.com. Due to the fact that some staff utilizes more features of the database, but do not work in the field, and some staff utilize cameras in the field, but do not work extensively in the database, City staff has negotiated for a replacement agreement that addresses these issues and reduces cost. The replacement agreement will convert 50 existing “Unlimited” licenses to “Basic” licenses without reducing camera use. Additionally, staff has determined that under the current agreement, the Department is obligated to purchase a greater number of Taser weapons than it has use for. Therefore, the replacement agreement will terminate the purchase of additional weapons. 2020-2025 Key Strategic Targets and Goals Executing a replacement Professional Services Agreement with Axon Enterprise, Inc. aligns with Key Target No. 1: Financial Stability. Evaluating operations and performance through investment in the resources, technology and tools are needed to create a 17 Packet Pg. 419 6781 Page 2 framework for spending decisions Fiscal Impact The financial impact to the City is a cost savings of $139,426.56 over two years. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-129, authorizing the City Manager to execute a replacement Professional Services Agreement with Axon Enterprise, Inc. Attachments Attachment 1 Resolution 2020-129 Attachment 2 Professional Services Agreement Ward: All Synopsis of Previous Council Actions: December 6, 2017 Mayor and City Council adopted Resolution 2017 -232, authorizing the execution of a 5-year agreement between the City of San Bernardino and Axon Enterprise, Inc. for body worn cameras and Taser X26P weapons and issuance of a purchase order to Axon Enterprise, Inc. September 6, 2017 Mayor and City Council adopted Resolution 2017 -171, authorizing the Director of Finance to issue purchase orders to Taser International, Inc. and the City of Fontana Police Department for body worn camera data storage. February 21, 2017 Mayor and City Council adopted Resolution 2017 -020, authorizing the City Manager to execute a vendor services agreement with Taser International, Inc., and authorizing the Director of Finance to issue a purchase order to Taser International, Inc. in the amount of $341,230 for body worn cameras. 17 Packet Pg. 420 RESOLUTION NO. 2020-129 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A REPLACEMENT PROFESSIONAL SERVICES AGREEMENT WITH AXON ENTERPRISE, INC., DECREASING COST FOR THE REMAINING TWO YEARS OF AN EXISTING FIVE-YEAR AGREEMENT BY $139,426.56 WHEREAS, on February 21, 2017, an agreement with Axon Enterprise, Inc. was approved in the amount of $1,078,001.44 for the purchase of 285 body worn camera licenses; and WHEREAS, on December 6, 2017, the agreement was modified to incorporate the purchase of an additional $529,432.29 in Taser weapons; and WHEREAS, the City evaluated the terms of the agreement and determined certain subscriptions and purchase obligations are no longer reflective of current Department needs. 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 a replacement Professional Services Agreement with Axon Enterprise, Inc., decreasing cost for the remaining two years of an existing five-year agreement by $139,426.56. 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 si gnificant 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. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. 17.a Packet Pg. 421 Attachment: PD.Axon PSA-Resolution (Attachment 1) (6781 : Authorize Replacement Professional Services Agreement with Axon Enterprise, Resolution No. 2020-129 John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 17.a Packet Pg. 422 Attachment: PD.Axon PSA-Resolution (Attachment 1) (6781 : Authorize Replacement Professional Services Agreement with Axon Enterprise, Resolution No. 2020-129 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 17.a Packet Pg. 423 Attachment: PD.Axon PSA-Resolution (Attachment 1) (6781 : Authorize Replacement Professional Services Agreement with Axon Enterprise, 1 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND AXON ENTERPRISE, INC. This Agreement is made and entered into as of June 17, 2019 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 Axon Enterprise, Inc., a Delaware corporation with its principal place of business at 17800 N 85th Street, Scottsdale, AZ 85255 (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: Body-worn cameras, digital evidence management, and TASER conducted energy weapons (“CEW”) (hereinafter referred to as “the Project”). B. Consultant is duly licensed and has the necessar y 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 wit h the services described in the Scope of Services attached hereto as Exhibit “A” (AXON QUOTE) and incorporated herein by this reference. City’s receipt, and Consultant’s provision, of Services shall be subject to the additional terms and conditions identified in Exhib it “B” (CONSULTANT SALES TERMS AND CONDITIONS), Exhibit “C” (AXON CLOUD SERVICES TERMS OF USE), Exhibit “D” (TECHNOLOGY ASSURANCE PLAN), and Exhibit “E” (AXON AUTO-TAGGING). Exhibits “B,” “C,” “D,” and “E” are incorporated herein by this reference. 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. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 424 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 2 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 “A.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $441,311.04 ($220,655.52 in Payment Year 4 and $220,655.52 in Payment Year 5 as further defined in Exhibit “A”). 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 outlin ing 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 invalidat e 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 circu mstances 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 DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 425 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 3 other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint. 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, o rdinances, 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 co sts 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 o f 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, o r business. 14. Assignment and Subconsultant. Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in t his 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 o f Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 426 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 4 Agreement, subject to such directions and amendment s from City as herein provided. 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 t his 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, dur ing 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) exclu sion deleted (7) Contractual Liability with respect to this Cont ract (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 vo lunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 427 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 5 coverage. (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 t he 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-o wned 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 wit h 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 Emp loyer’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 DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 428 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 6 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 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 fo r 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 Insu red 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 additio nal 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 o f the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 429 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 7 including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration. (ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consult ant’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 t he 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 exp ress waivers and insurance clauses from each of its subconsultants. (v) The limits set forth herein shall apply separat ely 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 co nstrued 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 accept able 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. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 430 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 8 (ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not co mply 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 fro m 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 o f 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 Cit y 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, actio ns, 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 expert witness fees and reasonable attorneys’ fees and other related costs and expenses. Notwithstanding the fo regoing, 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 proceeding. Consultant shall also reimburse City for the cost of any settlement paid by the City, DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 431 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 9 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. c. Limitation of Liability. The remedies provided for in this Agreement are expressly in lieu of any other liability Consultant may have. Consultant’s cumulative liability to any the City for any loss or damage resulting from any claims, demands, or actions arising out of relating to any Consultant product will not exceed $5,000,000.00, except for cases of Consultant’s willful misconduct, recklessness, or gross negligence. 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. If the Services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such Services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. This Project may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. 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 o r federal court situated in the County of San Bernardino, State of California. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 432 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 10 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 thirty (30) calendar days’ written notice to Consultant. In such event, City shall be immediately given title and po ssession 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, as further described in Exhibit B in “Effect of Termination”. If said t ermination 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 po rtion 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 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, salar y, 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. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 433 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 11 27. Organization. Consultant shall assign Evan Kafarakis (ekafarakis@axon.com) 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 t he 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: CITY: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Manager With Copy To: City of San Bernardino Vanir Tower, 290 North D Street San Bernardino, CA 92401 Attn: City Attorney CONSULTANT: Axon Enterprise, Inc. 17800 North 85th Street Scottsdale, AZ 85255 Attn: Legal 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 t ermination. 32. Entire Agreement. This Agreement, including all Exhibits, 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 are not incorporated herein, and that any other agreements shall be void. This is an integrated Agreement. This Agreement replaces all other agreements between the City and Consultant including, without limitation, the Master Services and Purchasing Agreement dated March 31, 2017, the Quotation Q-137034-2 dated November 10, 2017 and executed December 11, 2017, and the Vendor Services Agreement dated February 21, 2017. 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 DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 434 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 12 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 consent 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 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 o ccurrence 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 heading s 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 writing 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 rig ht 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. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 435 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 13 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] DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 436 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services 14 SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND AXON ENTERPRISE, INC. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. CITY OF SAN BERNARDINO Approved By: Teri Ledoux City Manager Approved as to Form: Sonia Carvalho City Attorney Attested By: Genoveva Rocha, CMC Acting City Clerk CONSULTANT Signature Name Title DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 VP, Assoc. General Counsel Robert Driscoll 17.b Packet Pg. 437 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT A EXHIBIT A AXON QUOTE Quote attached on following pages DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 438 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services Payment Terms: Net 30 Delivery Method: Fedex -Ground Contract Number: 00010492 Q-256366-43983.952CM Year 4 (4/15/2020-4/14/2021) Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 85079 TECH ASSURANCE PLAN DOCK ANNUAL PAYMENT 1 36.00 36.00 36.00 85100 AXON AUTO TAGGING SERVICE: ANNUAL PAYMENT 180 180.00 0.00 0.00 85126 EVIDENCE.COM UNLIMITED LICENSE YEAR 4 PAYMENT 180 948.00 948.00 170,640.00 85184 TASER 60 YEAR 4 PAYMENT: X26P BASIC 50 264.00 240.00 12,000.00 87026 TECH ASSURANCE PLAN DOCK 2 ANNUAL PAYMENT 23 216.00 216.00 4,968.00 85110 EVIDENCE.COM INCLUDED STORAGE 7,200 0.00 0.00 0.00 80015 BASIC EVIDENCE.COM LICENSE: YEAR 4 PAYMENT 100 180.00 180.00 18,000.00 85110 EVIDENCE.COM INCLUDED STORAGE 1,000 0.00 0.00 0.00 Subtotal 205,644.00 Estimated Shipping 0.00 Estimated Tax 15,011.52 Total 220,655.52 Issued: 06/01/2020 Quote Expiration: 06/30/2020 Account Number: 106954 Axon Enterprise, Inc. 17800 N 85th St. Scottsdale, Arizona 85255 United States Phone: (800) 978-2737 Protect Life. PRIMARY CONTACT Nelson Carrington Phone: (909) 384-5690 Email: carrington_ne@sbcity.org BILL TO San Bernardino Police Dept. -CA P. O. Box 1559 San Bernardino, CA 92401 US SHIP TO Nelson Carrington San Bernardino Police Dept. -CA 710 North D Street San Bernardino, CA 92401 US SALES REPRESENTATIVE Chris Morton Phone: (206) 310-6165 Email: cmorton@axon.com Fax: Q-256366-43983.952CM 1 DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 439 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services Year 5 (4/15/2021-4/14/2022) Item Description Term (Months)Quantity List Unit Price Net Unit Price Total (USD) Axon Plans & Packages 85127 EVIDENCE.COM UNLIMITED LICENSE YEAR 5 PAYMENT 180 948.00 948.00 170,640.00 85185 TASER 60 YEAR 5 PAYMENT: X26P BASIC 50 264.00 240.00 12,000.00 85110 EVIDENCE.COM INCLUDED STORAGE 7,200 0.00 0.00 0.00 85079 TECH ASSURANCE PLAN DOCK ANNUAL PAYMENT 1 36.00 36.00 36.00 85100 AXON AUTO TAGGING SERVICE: ANNUAL PAYMENT 180 180.00 0.00 0.00 87026 TECH ASSURANCE PLAN DOCK 2 ANNUAL PAYMENT 23 216.00 216.00 4,968.00 80016 BASIC EVIDENCE.COM LICENSE: YEAR 5 PAYMENT 100 180.00 180.00 18,000.00 85110 EVIDENCE.COM INCLUDED STORAGE 1,000 0.00 0.00 0.00 Subtotal 205,644.00 Estimated Tax 15,011.52 Total 220,655.52 Grand Total 441,311.04 Protect Life.Q-256366-43983.952CM 2 DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 440 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services Discounts (USD) Quote Expiration: 06/30/2020 List Amount 478,488.00 Discounts 67,200.00 Total 411,288.00 *Total excludes applicable taxes Protect Life.Q-256366-43983.952CM 3 DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 441 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services Notes This quote is co-termed with quote Q-28932 (executed contract #00010492). Execution of this quote will replace Year 4 of contract #00010492 (Q-28932) and will cancel invoice SI-1655520. The Unlimited licenses in this quote will cover 180 already deployed AB3 cameras and 23 docks. If the Agency chooses to utilize any of the additional AB3 camera and dock hardware from Q-234446, additional unlimited licenses must be purchased, and that additional hardware is no longer covered under the Technology Assurance Plan (TAP) and are not eligible for a TAP refresh. The parties agree the agency will be returning 25 X26P's upon execution of this quote. A Certificate of Intent to Destroy or an RMA will need to be submitted with the quote approval listing all S/Ns of the 25 X26P's being returned. 180 AB3's and 23 docking stations that were previously deployed will be covered under the Technology Assurance Plan (TAP) and will be eligible for 1 replacement at the same time as the equipment originally deployed on this existing contract as determined by quote Q-28932. This will take place at the end of the contract on 4/14/2022. Protect Life.Q-256366-43983.952CM 4 ***Axon Internal Use Only*** Review 1 Review 2 SFDC Contract #: Order Type: RMA #: Address Used: SO #: Comments: DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 442 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT B EXHIBIT B CONSULTANT SALES TERMS AND CONDITIONS These Sales Terms and Conditions govern Agency’s purchase and use of the Axon products and services detailed in Exhibit “A” (“Quote”). 1 Definitions. “Axon Cloud Services” means Axon’s web services for Axon Evidence, Axon Records, Axon Dispatch, and interactions between Evidence.co m and Axon Devices or Axon client software. Axon Cloud Service excludes third-party applications, hardware warranties, and my.evidence.com. “Axon Devices” means all hardware provided by Axon under this Agreement. “Quote” means an offer to sell and is only valid for devices and services on the quote at the specified prices. Any terms within Agency’s purchase order in response to a Quote will be void. Orders are subject to prior credit approval. Changes in the deployment estimated ship date may change charges in the Quote. Shipping dates are estimates only. Axon is not responsible for typographical errors in any offer by Axon, and Axon reserves the right to cancel any orders resulting from such errors. “Services” means all services provided by Axon under this Agreement, including software, Axon Cloud Services, and professional services. 2 Subscription Term. All subscriptions including Axon Evidence, Axon Fleet, Officer Safety Plans, Technology Assurance Plans, and TASER 7 plans begin after shipment of the applicable Axon Device. If Axon ships the Device in the first half of the month, the start date is the 1st of the following month. If Axon ships the Device in the second half of the month, the start date is the 15th of the following month. For purchases solely of Axon Evidence subscriptions, the start date is the Effective Date. Each subscription term ends upon completion of the subscription stated in the Quote (“Subscription Term”). 3 Taxes. Agency is responsible for sales and other taxes associated with the order unless Agency provides Axon a valid tax exemption certificate. 4 Shipping. Axon may make partial shipments and ship Devices from multiple locations. All shipments are FOB shipping point via common carrier. Title and risk of loss pass to Agency upon Axon’s delivery to the common carrier. Agency is responsible for any shipping charges in the Quote. 5 Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by state or federal law. 6 Warranty. 6.1 Hardware Limited Warranty. Axon warrants that Axon-manufactured Devices are free from defects in workmanship and materials for 1 year from the date of Agency’s receipt, except Signal Sidearm, which Axon warrants for 30 months DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 443 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT B from the date of Agency’s receipt. Axon warrants it s Axon-manufactured accessories for 90-days from the date of Agency’s receipt. Used CEW cartridges are deemed to have operated properly. Extended warranties run from the expiration of the 1-year hardware warranty through the extended warranty term. Non-Axon manufactured Devices are not covered by Axon’s warranty. Agency should contact the manufacturer for support of non-Axon manufactured Devices. 6.2 Claims. If Axon receives a valid warranty claim for an Axon manufactured Device during the warranty term, Axon’s sole responsibility is to repair or replace the Device with the same or like Device, at Axon’s option. A replacement Device will be new or like new. Axon will warrant the replacement Device for the longer of: (a) the remaining warranty of the original Device; or (b) 90-days from the date of repair or replacement. If Agency exchanges a device or part, the replacement item becomes Agency’s property, and the replaced item becomes Axon’s property. Before delivering a Device for service, Agency must upload Device data to Axon Evidence or download it and retain a copy. Axon is not responsible for any loss of software, data, or other information contained in storage med ia or any part of the Device sent to Axon for service. 6.3 Spare Devices. Axon may provide Agency a predetermined number of spare Devices as detailed in the Quote (“Spare Devices”). Spare Devices will replace broken or non-functioning units. If Agency utilizes a Spare Device, Agency must return to Axon, through Axon’s warranty return process, any broken or non- functioning units. Axon will repair or replace the unit with a replacement Device. Upon termination, Axon will invoice Agency the MSRP then in effect for all Spare Devices provided. If Agency returns the Spare Devices to Axon within 30 days of the invoice date, Axon will issue a credit and apply it against the invoice. 6.4 Limitations. Axon’s warranty excludes damage related to: (a) failure to follow Device use instructions; (b) Devices used with equipment not manufactured or recommended by Axon; (c) abuse, misuse, or intentio nal damage to Device; (d) force majeure; (e) Devices repaired or modified by persons other than Axon without Axon’s written permission; or (f) Devices with a defaced or removed serial number. 7 Device Warnings. See www.axon.com/legal for the most current Axon device warnings. 8 Design Changes. Axon may make design changes to any Axon Device or Service without notifying Agency or making the same change to Devices and Services previously purchased by Agency. 9 IP Rights. Axon owns and reserves all right, title, and interest in Axon devices and services and suggestions to Axon, including all related intellectual property rights. Agency will not cause any Axon proprietary rights to be violated. Axon through this Agreement is granting City a nonexclusive license in relation to any Axon intellectual property necessary for City to utilize the Services during the Term (and for any period of DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 444 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT B time belong that as may be necessary to effectuate the intent of this Agreement). 10 Agency Responsibilities. Agency is responsible for: (a) Agency’s use of Axon Devices; (b) breach of this Agreement or violation of applic able law by Agency or an Agency end user; and (c) a dispute between Agency and a third-party over Agency’s use of Axon Devices. 11 Confidentiality. “Confidential Information” means nonpublic information designated as confidential or, given the nature of the information or circumstances surrounding disclosure, should reasonably be understood to be confidential. Each Party will take reasonable measures to avoid disclosure, disseminat ion, or unauthorized use of the other Party’s Confidential Information. Unless required by law, neither Party will disclose the other Party’s Confidential Information during the Term and for 5-years thereafter. Axon pricing is Confidential Information and competition sensitive. If Agency is required by law to disclose Axon pricing, to the extent allowed by law, Agency will provide notice to Axon before disclosure. Axon may publicly announce information related to this Agreement. Parties understand and acknowledge that this Agreement and the Exhibits are subject to release under the Public Records Act. 12 Delays. Axon will use commercially reasonable efforts to deliver Products and services as soon as practicable. If delivery is interrupted due to causes beyond Axon’s control, Axon may delay or terminate the delivery with reaso nable notice. 13 Force Majeure. Neither Party will be liable for any delay or failure to perform under the Agreement due to a cause beyond the Parties’ reasonable control, including acts of God, labor disputes, industrial disturbances, utility failures, earthquake, storms, elements of nature, blockages, embargoes, riots, acts or orders of government, terrorism, or war. 14 Effect of Termination. Agency will be invoiced and obligated to pay for the remainder of the MSRP for TASER 60 hardware received before t he termination date. In the case of termination for non-appropriations, Axon will not invoice Agency if Agency returns the CEW, battery, holster, and unused cartridges to Axon within 30 days of the date of termination. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 445 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT C EXHIBIT C AXON CLOUD SERVICES TERMS OF USE 1 Definitions. “Agency Content” is data uploaded into, ingested by, or created in Axon Cloud Services within Agency’s tenant, including media or multimed ia uploaded into Axon Cloud Services by Agency. Agency Content includes Evidence but excludes Non-Content Data. “Evidence” is media or multimedia uploaded into Axon Evidence as 'evidence' by an Agency. Evidence is a subset of Agency Content. “Non-Content Data” is data, configuration, and usage information abo ut Agency’s Axon Cloud Services tenant, Axon Devices and client soft ware, and users that is transmitted or generated when using Axon Devices. Non-Content Data includes data about users captured during account management and customer support activities. Non-Content Data does not include Agency Content. “Personal Data” means any information relating to an identified o r identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or mo re factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person. 2 Access. Upon Axon granting Agency a subscription to Axon Cloud Services, Agency may access and use Axon Cloud Services to store and manage Agency Content. Agency may not exceed more end users than the Quote specifies. Axon Air requires an Axon Evidence subscription for each drone operator. For Axon Evidence Lite, Agency may access and use Axon Evidence only to store and manage TASER CEW and TASER CAM data (“TASER Data”). Agency may not upload non-TASER Data to Axon Evidence Lite. 3 Agency Owns Agency Content. Agency controls and owns all right, title, and interest in Agency Content. Except as outlined herein, Axon obt ains no interest in Agency Content, and Agency Content are not business records of Axon. Agency is solely responsible for uploading, sharing, managing, and deleting Agency Content. Axon will have limited access to Agency Content solely for providing and supporting Axon Cloud Services to Agency and Agency end users. 4 Security. Axon will implement commercially reasonable and appropriate measures to secure Agency Content against accidental or unlawfu l loss, access or disclosure. Axon will maintain a comprehensive information security program to protect Axon Cloud Services and Agency Content including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of uploaded digital evidence; security education; and data prot ection. Axon agrees to the Federal Bureau of Investigation Criminal Justice Informatio n Services Security Addendum. 5 Agency Responsibilities. Agency is responsible for: (a) ensuring Agency owns Agency DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 446 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT C Content; (b) ensuring no Agency Content or Agency end user’s use of Agency Content or Axon Cloud Services violates this Agreement or applicable laws; and (c) maintaining necessary computer equipment and Internet connectio ns for use of Axon Cloud Services. If Agency becomes aware of any violation of this Agreement by an end user, Agency will immediately terminate that end user’s access to Axo n Cloud Services. Agency will also maintain the security of end user names and passwords and security and access by end users to Agency Content. Agency is responsible for ensuring the configuration and utilization of Axon Cloud Services meet applicable Agency regulation and standards. Agency may not sell, transfer, or sublicense access to any other entity or person. Agency shall contact Axon immediately if an unauthorized party may be using Agency’s account or Agency Content, or if account information is lost or stolen. 6 Privacy. Axon will not disclose Agency Content or informatio n about Agency except as compelled by a court or administrative body or required by law or regulation. If Axon receives a disclosure request for Agency Content, Axon will give Agency notice, unless legally prohibited from doing so, to allow Agency t o file an objection with the court or administrative body. Agency agrees to allow Axon access to certain information from Agency to: (a) perform troubleshooting services upo n request or as part of regular diagnostic screening; (b) enforce this Agreement or policies governing the use of Axon Evidence; or (c) perform analytic and diagnostic evaluations of the systems. 7 Axon Body 3 Wi-Fi Positioning. Axon Body 3 cameras offers a feature to enhance location services where GPS/GNSS signals may not be available, for instance, within buildings or underground. Agency administrators can manage their choice to use this service within the administrative features of Axon Cloud Services. If Agency chooses to use this service, Axon must also enable the usage o f the feature for Agency’s Axon Cloud Services tenant. Agency will not see this option with Axon Cloud Services unless Axon has enabled Wi-Fi Positioning for Agency’s Axon Clo ud Services tenant. When Wi-Fi Positioning is enabled by both Axon and Agency, Non-Content and Personal Data will be sent to Skyhook Holdings, Inc. (“Skyhook”) to facilitate the Wi-Fi Positioning functionality. Data controlled by Skyhook is outside the scope of the Axon Cloud Services Privacy Policy and is subject to the Skyhook Services Privacy Policy. 8 Storage. For Axon Unlimited Device Storage subscriptions, Agency may store unlimited data in Agency's Axon Evidence account only if data originates from Axon Capture or the applicable Axon Device. Axon may charge Agency additional fees for exceeding purchased storage amounts. Axon may place Agency Co ntent that Agency has not viewed or accessed for 6 months into archival storage. Agency Content in archival storage will not have immediate availability and may take up to 24 hours to access. 9 Location of Storage. Axon may transfer Agency Content to third-party subcontractors for storage. Axon will determine the locations of data centers for storage of Agency Content. For United States agencies, Axon will ensure all Agency Content stored in Axon Cloud Services remains within the United States. Ownership of Agency Content remains with Agency. 10 Suspension. Axon may temporarily suspend Agency’s or any end user’s right to access DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 447 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT C or use any portion or all of Axon Cloud Services immediately upon notice, if Agency or end user’s use of or registration for Axon Cloud Services may: (a) pose a security risk to Axon Cloud Services or any third-party; (b) adversely impact Axon Cloud Services , the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any third-party to liability; or (d) be fraudulent. Agency remains responsible for all fees incurred through suspension. Axon will not delete Agency Content because of suspension, except as specified in this Agreement. 11 Axon Cloud Services Warranty. Axon disclaims any warranties or responsibility for data corruption or errors before Agency uploads dat a to Axon Cloud Services. 12 Axon Cloud Services Restrictions. Agency and Agency end users (including employees, contractors, agents, officers, volunteers, and directors), may not, or may not attempt to: 12.1 copy, modify, tamper with, repair, or create derivative works of any part of Axon Cloud Services; 12.2 reverse engineer, disassemble, or decompile Axon Cloud Services or apply any process to derive any source code included in Axon Cloud Services, or allow others to do the same; 12.3 access or use Axon Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas; 12.4 use trade secret information contained in Axon Cloud Services, except as expressly permitted in this Agreement; 12.5 access Axon Cloud Services to build a competitive device or service or copy any features, functions, or graphics of Axon Cloud Services; 12.6 remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within Axon Cloud Services; or 12.7 use Axon Cloud Services to store or transmit infringing, libelous, or other unlawful or tortious material; to store or transmit material in violation of third- party privacy rights; or to store or transmit malicious code. 13 After Termination. Axon will not delete Agency Content for 90-days following termination. There will be no functionality of Axon Cloud Services during these 90-days other than the ability to retrieve Agency Content. Agency will not incur additional fees if Agency downloads Agency Content from Axon Cloud Services during this time. Axon has no obligation to maintain or provide Agency Content after these 90-days and will thereafter, unless legally prohibited, delete all Agency Content. Upon request, Axon will provide written proof that Axon successfully deleted and fully removed all Agency Content from Axon Cloud Services. 14 Post-Termination Assistance. Axon will provide Agency with the same post- termination data retrieval assistance that Axon generally makes available to all customers. Requests for Axon to provide additional assistance in downloading or transferring Agency Content, including requests for Axon’s data egress service, will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external system. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 448 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT C 15 U.S. Government Rights. If Agency is a U.S. Federal department or using Axon Cloud Services on behalf of a U.S. Federal department, Axon Cloud Services is provided as a “commercial item,” “commercial computer software,” “commercial computer software documentation,” and “technical data”, as defined in the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement. If Agency is using Axon Cloud Services on behalf of the U.S. Government and these terms fail to meet the U.S. Government’s needs or are inconsistent in any respect with federal law, Agency will immediately discontinue use of Axon Cloud Services. Survival. Upon any termination of this Agreement, the following sections in this Exhibit will survive: Agency Owns Agency Content, Storage, Axon Cloud Services Warranty, and Axon Cloud Services Restrictions. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 449 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT D EXHIBIT D TECHNOLOGY ASSURANCE PLAN 1 TAP Warranty. The TAP warranty is an extended warranty that starts at the end of the 1-year Hardware Limited Warranty. 2 Officer Safety Plan. If Agency purchases an Officer Safety Plan (“OSP”), Agency will receive the deliverables detailed in the Quote. Agency must accept delivery of the TASER CEW and accessories as soon as available from Axon. 3 OSP 7 Term. OSP 7 begins after Axon ships the Axon Body 3 or TASER 7 hardware to Agency. If Axon ships in the first half of the month, OSP 7 starts the 1st of the following month. If Axon ships in the second half of the month, OSP 7 starts the 15th of the following month (“OSP 7 Term”). 4 TAP BWC Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon body-worn camera (“BWC Upgrade”) as scheduled in the Quote. If Agency purchased TAP Axo n will provide a BWC Upgrade that is the same or like Device, at Axon’s option. Axon makes no guarantee the BWC Upgrade will utilize the same accessories or Axon Dock. 5 TAP Dock Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon Dock as scheduled in the Quote (“Dock Upgrade”). Accessories associated with any Dock Upgrades are subject to change at Axon discretion. Dock Upgrades will only include a new Axon Dock bay configuration unless a new Axon Dock core is required for BWC compatibility. If Agency originally purchased a single-bay Axon Dock, the Dock Upgrade will be a single-bay Axon Dock model that is the same or like Device, at Axon’s option. If Agency originally purchased a multi-bay Axon Dock, the Dock Upgrade will be a multi-bay Axon Dock that is the same or like Device, at Axon’s option. 6 Upgrade Delay. Axon may ship the BWC and Dock Upgrades as scheduled in the Quote without prior confirmation from Agency unless the Parties agree in writing otherwise at least 90 days in advance. Axon may ship the final BWC and Dock Upgrade as scheduled in the Quote 60 days before the end of the Subscription Term without prior confirmation from Agency. 7 Upgrade Change. If Agency wants to change Device models for the o ffered BWC or Dock Upgrade, Agency must pay the price difference between the MSRP for the offered BWC or Dock Upgrade and the MSRP for the model desired. If the model Agency desires has an MSRP less than the MSRP of the offered BWC Upgrade or Dock Upgrade, Axon will not provide a refund. The MSRP is the MSRP in effect at the time of the upgrade. 8 Return of Original Device. Within 30 days of receiving a BWC or Dock Upgrade, Agency must return the original Devices to Axon or destroy the Devices and provide a certificate of destruction to Axon including serial numbers for the destroyed Devices. If DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 450 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT D Agency does not return or destroy the Devices, Axon will deactivate the serial numbers for the Devices received by Agency. 9 Termination. If Agency’s payment for TAP, OSP, or Axon Evidence is more than 30 days past due, Axon may terminate TAP or OSP. Once TAP or OSP terminates for any reason: 9.1 TAP and OSP coverage terminate as of the date of termination and no refunds will be given. 9.2 Axon will not and has no obligation to provide the Upgrade Models. 9.3 Agency must make any missed payments due to the termination before Agency may purchase any future TAP or OSP. DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 451 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT E EXHIBIT E AXON AUTO-TAGGING 1 Scope. Axon Auto-Tagging consists of the development of a module to allow Axon Evidence to interact with Agency’s Computer-Aided Dispatch (“CAD”) or Records Management Systems (“RMS”). This allows end users to auto-populate Axon video meta- data with a case ID, category, and location-based on data maintained in Agency’s CAD or RMS. 2 Support. For thirty days after completing Auto-Tagging Ser vices, Axon will provide up to 5 hours of remote support at no additional charge. Axon will provide free support due to a change in Axon Evidence, so long as long as Agency maintains an Axon Evidence and Auto-Tagging subscription. Axon will not provide support if a change is required because Agency changes its CAD or RMS. 3 Changes. Axon is only responsible to perform the Services in this Exhibit. Any additional Services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. 4 Agency Responsibilities. Axon’s performance of Auto-Tagging Services requires Agency to: 4.1 Make available relevant systems, including Agency’s current CAD or RMS, for assessment by Axon (including remote access if possible); 4.2 Make required modifications, upgrades or alterations to Agency’s hardware, facilities, systems and networks related to Axon’s performance of Auto-Tagging Services; 4.3 Provide access to the premises where Axon is performing Auto-Tagging Services, subject to Agency safety and security restrictions, and allow Axon to enter and exit the premises with laptops and materials needed to perform Auto-Tagging Services; 4.4 Provide all infrastructure and software information (TCP/IP addresses, node names, network configuration) necessary for Axon to provide Auto-Tagging Services; 4.5 Promptly install and implement any software updates provided by Axon; 4.6 Ensure that all appropriate data backups are performed; 4.7 Provide assistance, participation, and approvals in testing Auto-Tagging Services; 4.8 Provide Axon with remote access to Agency’s Axon Evidence account when required; 4.9 Notify Axon of any network or machine maintenance t hat may impact the performance of the module at Agency; and 4.10 Ensure reasonable availability of knowledgeable staff and personnel to provide timely, accurate, complete, and up-to-date document ation and information to Axon. 5 Access to Systems. Agency authorizes Axon to access Agency’s relevant computers, network systems, and CAD or RMS solely for performing Auto-Tagging Services. Axon DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 452 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services EXHIBIT E will work diligently to identify as soon as reasonably practicable resources and information Axon expects to use and will provide an initial list to Agency. Agency is responsible for and assumes the risk of any problems, delays, losses, claims, or expenses resulting from the content, accuracy, completeness, and consistency of all data, materials, and information supplied by Agency DocuSign Envelope ID: 582EAC06-FDE7-4143-8CCD-7E0693ED6D27 17.b Packet Pg. 453 Attachment: pd.San Bernardino - Azon PSA - Execution Copy-c1 PDF [Revision 1] (6781 : Authorize Replacement Professional Services Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Mitch Cochran, Information Technology Director Subject: Resolution to Approve the FY 2020/21 Annual Usage, Software, and Hardware Maintenance Agreements Recommendation Adopt Resolution 2020-139 of the Mayor and City Council of the City of San Bernardino, California, authorizing the issuance of Fiscal Year 2020/2021 Purchase Orders for the annual usage fees, software and or hardware support with Accela Corporation, CelPlan, Earth Science Research Institute (ESRI), Konica Minolta, NPA Computers, TPX, Tyler Technologies, and Verizon Cellular as outlined in the report. Background The City purchases annual maintenance and software support for its existing critical systems. The agreements are necessary to provide troubleshooting support, software fixes, and enable the City to take advantage of the latest version of the produc t. Discussion Staff is requesting authorization to issue Purchase Orders for five ongoing annual maintenance agreements. This request for authorization is due to the expected annual payments for each vendor exceeding the $50,000 threshold necessary for C ity Council approval. The majority of the City systems have an annual support cost that is below the purchasing threshold of $50,000 needed for direct City Council authorization. The vendors provide a service rate or annual maintenance cost based on the product mix that the City has for that year. Typically, there is not an individually signed agreement with the City. The vendors refer to their standard service agreements. The cost estimates for Konica Minolta, TPX, and Verizon Cellular are based on ac tual usage during the year. Staff has developed an expected annual cost based on expected usage or an annual fixed amount provided by the vendor. Staff is requesting that a 10% contingency be added to the purchasing authorization amount for slight change s in the products or support functions which might occur during the fiscal year. 18 Packet Pg. 454 6782 Page 2 2020-2025 Key Strategic Targets and Goals The purchase of maintenance agreements support Key Target No. 1: Financial Stability, as the services and agreements help to support the creation and management of an asset management plan. The annual support agreements ensure that critical software applications and hardware are supported and kept up to date. Fiscal Impact The cost of the annual support agreements has been included in the proposed FY 2020/21 budget in the appropriate department accounts: Conclusion It is recommended that the Mayor and City Council adopt Resolution 2020 -139 authorizing the issuance of Fiscal Year 2020/21 Purchase Orders for the annual usage fees, software and or hardware support with Accela Corporation, CelPlan, Earth Science Research Institute (ESRI), Konica Minolta, NPA Computers, TPX, Tyler Technologies and Verizon Cellular. 18 Packet Pg. 455 6782 Page 3 Attachments Attachment 1 Accella support quote for 2020-2021 Attachment 2 ESRI support quote for 2020-2021 Attachment 3 Tyler support quote for 2020-2021 - Police Department CAD Attachment 4 Tyler support quote for 2020-2021 - Financial Ward: n/a Synopsis of Previous Council Actions: July 18, 2018 Mayor and City Council directed the City Manager to authorize annual support agreements for the Fiscal Year 2017-2018 with Accela Corporation, Dell/EMC, and Earth Science Research Institute (ESRI). August 1, 2018 Mayor and City Council directed the City Manager to issue a Vender Services Agreement with NPA Computers. The agreement provided for 3 one year extensions. June 19, 2019 Mayor and City Council directed the City Manager to authorize annual support agreements for the Fiscal Year 2019-2020 with Accela Corporation, Dell/EMC, Earth Science Research Institute (ESRI), Konica Minolta and NPA Computers. 18 Packet Pg. 456 RESOLUTION NO. 2020-139 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, TO PURCHASE ANNUAL SERVICES, SOFTWARE MAINTENANCE, AND HARDWARE MAINTENANCE AGREEMENTS FROM ACCELA, CELPLAN, EARTH SCIENCE RESEARCH INSTITUTE, KONICA MINOLTA, NPA, TPX, TYLER TECHNOLOGIES, AND VERIZON CELLULAR FOR FY 2020/21 WHEREAS, the City of San Bernardino contracts with vendors to provide advanced technology systems and services to support City operations, the usage, service, and support agreements are renewed and approved by the City Council on an annual basis; and WHEREAS, the City Council provides purchasing authorization for annual purchases of an amount over $50,000 for a fiscal year. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The City Manager is hereby authorized to purchase and execute annual maintenance agreements from Accela Corporation (Accela) for the support of the Permits Plus product in an amount not to exceed $111,983 which includes the total quoted price of $101,802.50 plus a $10,108.15 (10%) contingency. SECTION 2. The City Manager is hereby authorized to purchase and execute annual maintenance agreements from Celplan Corporation (Celplan) for the support of City and Police Department cameras in an amount not to exceed $165,000 which includes the expected annual usage fee of $150,000 plus a $15,000 (10%) contingency. SECTION 3. The City Manager is hereby authorized to purchase and execute annual maintenance agreements from Earth Science Research Institute (ESRI) Corporation for the support of ArcGIS software in an amount not to exceed $96,250 which includes the total quoted price of $87,500 plus a $8,750 (10%) contingency. SECTION 4. The City Manager is hereby authorized to purchase annual maintenance services from Konica Minolta Corporation for the hardware support and usage of city copier in an amount not to exceed $110,000 which includes the expected cost of $100,000 plus a $10,000 (10%) contingency. SECTION 5. The City Manager is hereby authorized to purchase annual maintenance services from NPA Corporation for the hardware support of out of warranty equipment in an amount not to exceed $130,350 which includes the expected cost of $118,500 plus a $11,850 (10%) contingency. 18.a Packet Pg. 457 Attachment: IT.annual software renewals FY2020-2021-reso (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Resolution No. 2020-139 SECTION 6. The City Manager is hereby authorized to purchase MPLS, phone and network services from TPX in an amount not to exceed $374,000 which includes the expected cost of $340,000 plus a $34,000 (10%) contingency. SECTION 7. The City Manager is hereby authorized to purchase and execute annual maintenance agreements from Tyler Technologies for support of the Police New World Dispatch system in an amount not to exceed $348,123 which includes the total quoted price of $316,476 plus a $31467 (10%) contingency. SECTION 8. The City Manager is hereby authorized to purchase and execute annual maintenance agreements from Tyler Technologies for support of the Finance New World Financial records system in an amount not to exceed $187,000 which includes the total quoted price of $170,000 plus a $17,000 (10%) contingency. SECTION 9. The City Manager is hereby authorized to purchase cellular phone services from Verizon Cellular in an amount not to exceed $228,800 which includes the expected cost of $208,000 plus a $20,800 (10%) contingency. SECTION 10. 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 11. 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 12. Effective Date. This Resolution shall become effective for the Fiscal Year 2020/21 based on approval of the 2020/21 Fiscal Year budgets. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk 18.a Packet Pg. 458 Attachment: IT.annual software renewals FY2020-2021-reso (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Resolution No. 2020-139 Approved as to form: Sonia Carvalho, City Attorney 18.a Packet Pg. 459 Attachment: IT.annual software renewals FY2020-2021-reso (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Resolution No. 2020-139 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 18.a Packet Pg. 460 Attachment: IT.annual software renewals FY2020-2021-reso (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and - 1 - Accela Order Form opid:O-030017 2633 Camino Ramon, Suite 500 San Ramon, CA 94583 RENEWAL ORDER FORM Address Information Bill To: City of San Bernardino 300 North D. Street - 4th Floor San Bernardino, California 92418 United States Billing Contact: Than Trinooson Billing Phone: 9093845947 Billing Email: trinooson_th@sbcity.org Ship To: City of San Bernardino 300 North D. Street - 4th Floor San Bernardino, California 92418 United States Services Services Start Date End Date Term (Mths) Unit Price Quantity Total Price PERMITS Plus Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $966.92 30.00 $29,007.68 PERMITS Plus Client Server Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $424.42 30.00 $12,732.62 PERMITS Plus Connect Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $138.38 30.00 $4,151.52 PERMITS Plus Workflow Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $182.80 30.00 $5,483.89 PERMITS Plus Scan-it Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $41.57 30.00 $1,247.09 PERMITS Plus Office Link Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $51.50 30.00 $1,544.99 Accela GIS Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $432.68 20.00 $8,653.55 Accela Wireless Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $1,689.20 20.00 $33,783.91 Accela GIS Site License Annual Maintenance and Support Renewal 07/01/2020 06/30/2021 12 $5,197.60 1.00 $5,197.60 Total $101,802.85 Proposed by: Becky O'Brien Contact Phone: (925) 359-3334 Contact Email: robrien@accela.com Quote ID: Q-17729 Valid Through: 07/01/2020 Currency: USD 18.b Packet Pg. 461 Attachment: IT.annual software renewals FY2020-2021 - ap1-accela (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and - 2 - Accela Order Form opid:O-030017 Renewal Terms / Information General Information Governing Agreement(s) This Order Form will be governed by the applicable terms and conditions. If those terms and conditions are non- existent, have expired or have otherwise been terminated, the following terms will govern as applicable, based on the Customer’s purchase: www.accela.com/terms. Order Terms Order Start Date Unless otherwise specified in the Special Order Terms: • Software Licenses & Subscriptions start on the date of delivery by Accela; • Hosting and Support start on Accela’s delivery of the software hosted and/or supported;. Order Duration Unless otherwise specified in the Special Order Terms: • Subscriptions continue from the Order Start Date through the number of months listed in this Order Form (or if not listed, twelve (12) months). Thereafter Subscriptions automatically renew annually as calculated from Order Start Date of Customer’s first Subscription purchase. • Any Software Licenses or Hardware are one-time, non-refundable purchases. • Hosting and Support continue from the Order Start Date through the number of months listed in this Order Form (or if not listed, twelve (12) months). • Professional Services continue for the duration as outlined in the applicable Statement of Work, Exhibit or the Governing Agreement, as applicable. Special Order Terms This Order Form replaces all previous order forms for the terms listed above and will govern the Software, Maintenance, and/or Services items listed on Page 2 of this Order Form. • In the event of an inconsistency between this Order Form, any governing agreement, purchase order, or invoice, the Order Form shall govern as it pertains to this transaction. • For Software Licenses, Accela may terminate this Order Form in the event the Software is phased out across Accela’s customer base. In such event, Accela will provide Customer sufficient advance notice and the parties will mutually agree to a migration plan for converting Customer to another Accela generally-available offering with comparable functionality. Payment Terms Currency USD Invoice Date Unless otherwise stated in the Special Payment Terms, Invoice for the Grand Total $ above will be issued on the Order Start Date. Payment Due Date Unless otherwise stated in the Special Payment Terms or the Governing Agreement(s), all payments are due on the Invoice Date and payable net 30 days. Special Payment Terms None unless otherwise specified in this section. Purchase Order If Customer requires PO number on invoices, it must be provided to the right and Customer must provide copy of the PO prior to invoice issuance. If no PO number provided prior to invoice issuance date, invoices issued on this Order Form will be valid without a PO reference. PO# 18.b Packet Pg. 462 Attachment: IT.annual software renewals FY2020-2021 - ap1-accela (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and - 3 - Accela Order Form opid:O-030017 Accela Customer By: \Signature2\ (Signature) By: \Signature1\ (Signature) \Name2\ (Print Name) \Name1\ (Print Name) Its: \Title2\ (Title) Its: \Title1\ (Title) Dated: \Date2\ (Month, Day, Year) Dated: \Date1\ (Month, Day, Year) 18.b Packet Pg. 463 Attachment: IT.annual software renewals FY2020-2021 - ap1-accela (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and 380 New York Street 909 793 2853 esri.com Redlands, California 92373-8100 USA info@esri.com February 7, 2019 Ms. Ruth Parish City of San Bernardino 290 N D St San Bernardino, CA 92401 -1734 Dear Ruth, The Esri Small Municipal and County Government Enterprise Agreement (EA) is a three-year agreement that will grant your organization access to Esri® term license software on an unlimited basis including maintenance on all software offered through the EA for the term of the agreement. The EA will be effective on the date executed and will require a firm, three-year commitment. Based on Esri's work with several organizations similar to yours, we know there is significant potential to apply geographic information system (GIS) technology in many operational and technical areas within your organization. For this reason, we believe that your organization will greatly benefit from an enterprise agreement. An EA will provide your organization with numerous benefits including:  A lower cost per unit for licensed software  Substantially reduced administrative and procurement expenses  Maintenance on all Esri software deployed under this agreement  Complete flexibility to deploy software products when and where needed The following business terms and conditions will apply:  All current departments, employees, and in-house contractors of the organization will be eligible to use the software and services included in the EA.  If your organization wishes to acquire and/or maintain any Esri software during the term of the agreement that is not included in the EA, it may do so separately at the Esri pricing that is generally available for your organization for software and maintenance.  The organization will establish a single point of contact for orders and deliveries and will be responsible for redistribution to eligible users.  The organization will establish a Tier 1 support center to field calls from internal users of Esri software. The organization may designate individuals as specified in the EA who may directly contact Esri for Tier 2 technical support.  The organization will provide an annual report of installed Esri software to Esri.  Esri software and updates that the organization is licensed to use will be automatically available for downloading. 18.c Packet Pg. 464 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Small Government EA  The fee and benefits offered in this EA proposal are contingent upon your acceptance of Esri’s Small Municipal and County Government EA terms and conditions.  Licenses are valid for the term of the EA. This program offer is valid for 90 days. To complete the agreement within this time frame, please contact me within the next seven days to work through any questions or concerns you may have. To expedite your acceptance of this EA offer: 1. Sign and return the EA contract with a Purchase Order or issue a Purchase Order that references this EA Quotation and includes the following statement on the face of the Purchase Order: "THIS PURCHASE ORDER IS GOVERNED BY THE TERMS AND CONDITIONS OF THE ESRI SMALL MUNICIPAL AND COUNTY GOVERNMENT EA, AND ADDITIONAL TERMS AND CONDITIONS IN THIS PURCHASE ORDER WILL NOT APPLY." Have it signed by an authorized representative of the organization. 2. On the first page of the EA, identify the central point of contact/agreement administrator. The agreement administrator is the party that will be the contact for management of the software, administration issues, and general operations. Information should include name, title (if applicable), address, phone number, and e-mail address. 3. In the purchase order, identify the "Ship to" and "Bill to" information for your organization. 4. Send the purchase order and agreement to the address, email or fax noted below: Esri Attn: Customer Service SG-EA 380 New York Street Redlands, CA 92373-8100 e-mail: service@esri.com fax documents to: 909-307-3083 I appreciate the opportunity to present you with this proposal, and I believe it will bring great benefits to your organization. Thank you very much for your consideration. Best Regards, Jan Cunningham 18.c Packet Pg. 465 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Material Qty Description Unit Price Total 149598 1 Populations of 150,001 to 250,000 Small Government Term Enterprise License Agreement - Year 1 75,000.00 75,000.00 149598 1 Populations of 150,001 to 250,000 Small Government Term Enterprise License Agreement - Year 2 87,500.00 87,500.00 149598 1 Populations of 150,001 to 250,000 Small Government Term Enterprise License Agreement - Year 3 100,000.00 100,000.00 Item Total:262,500.00 Subtotal:262,500.00 Sales Tax:0.00 Estimated Shipping & Handling(2 Day Delivery) :0.00 Contract Pricing Adjust:0.00 This pricing is based off of a special approval by Esri. The program pricing based on the population of the City of San Bernardino would be $150,000 a year. Total:$262,500.00 The items on this quotation are subject to and governed by the terms of this quotation, the most current product specific scope of use document found at https://assets.esri.com/content/dam/esrisites/media/legal/product-specific-terms-of-use/e300.pdf, and your applicable signed agreement with Esri. If no such agreement covers any item quoted, then Esri’s standard terms and conditions found at https://assets.esri.com/content/dam/esrisites/media/legal/ma-full/ma-full.pdf apply to your purchase of that item. Federal government entities and government prime contractors authorized under FAR 51.1 may purchase under the terms of Esri’s GSA Federal Supply Schedule. Supplemental terms and conditions found at https://www.esri.com/en-us/legal/terms/state-supplemental apply to some state and local government purchases. All terms of this quotation will be incorporated into and become part of any additional agreement regarding Esri’s offerings. Acceptance of this quotation is limited to the terms of this quotation. Esri objects to and expressly rejects any different or additional terms contained in any purchase order, offer, or confirmation sent to or to be sent by buyer. Unless prohibited by law, the quotation information is confidential and may not be copied or released other than for the express purpose of system selection and purchase/license. The information may not be given to outside parties or used for any other purpose without consent from Esri. Delivery is FOB Origin. If sending remittance, please address to: Esri, P.O. Box 741076, Los Angeles, CA 90074-1076 This offer is limited to the terms and conditions incorporated and attached herein.CUNNINGHAMJ For questions contact:Jan Cunningham Email:jcunningham@esri.com Phone:(909) 793-2853 x4363 Esri may charge a fee to cover expenses related to any customer requirement to use a proprietary vendor management, procurement, or invoice program. Environmental Systems Research Institute, Inc. 380 New York St Redlands, CA 92373-8100 Phone: 909-793-2853 Fax: 909-307-3049 DUNS Number: 06-313-4175 CAGE Code: 0AMS3 Quotation # 20544943 Date: Customer # 17639 Contract # City of San Bernardino Information Technology Dept 290 N D St San Bernardino, CA 92401-1734 ATTENTION: Ruth Parish PHONE: 909-384-5947 FAX: 909-384-7236 To expedite your order, please attach a copy of this quotation to your purchase order. Quote is valid from: 02/07/2019 To: 05/08/2019 February 7, 2019 18.c Packet Pg. 466 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Esri Use Only: Cust. Name Cust. # PO # Esri Agreement # Page 1 of 6 November 20, 2018 SMALL ENTERPRISE AGREEMENT COUNTY AND MUNICIPALITY GOVERNMENT (E214-6) This Agreement is by and between the organization identified in the Quotation ("Customer") and Environmental Systems Research Institute, Inc. ("Esri"). This Agreement sets forth the terms for Customer's use of Products and incorporates by reference (i) the Quotation and (ii) the Master Agreement. Should there be any conflict between the terms and conditions of the documents that comprise this Agreement, the order of precedence for the documents shall be as follows: (i) the Quotation, (ii) this Agreement, and (iii) the Master Agreement. This Agreement shall be governed by and construed in accordance with the laws of the state in which Customer is located without reference to conflict of laws principles, and the United States of America federal law shall govern in matters of intellectual property. The modifications and additional rights granted in this Agreement apply only to the Products listed in Table A. Table A List of Products Uncapped Quantities Desktop Software and Extensions (Single Use) ArcGIS Desktop Advanced ArcGIS Desktop Standard ArcGIS Desktop Basic ArcGIS Desktop Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Publisher, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager, ArcGIS Data Reviewer Enterprise Software and Extensions ArcGIS Enterprise and Workgroup (Advanced and Standard) ArcGIS Enterprise Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Geostatistical Analyst, ArcGIS Network Analyst, ArcGIS Schematics, ArcGIS Workflow Manager Enterprise Additional Capability Servers ArcGIS Image Server Developer Tools ArcGIS Engine ArcGIS Engine Extensions: ArcGIS 3D Analyst, ArcGIS Spatial Analyst, ArcGIS Engine Geodatabase Update, ArcGIS Network Analyst, ArcGIS Schematics ArcGIS Runtime (Standard) ArcGIS Runtime Analysis Extension Limited Quantities One (1) Professional subscription to ArcGIS Developer* Two (2) Esri CityEngine Advanced Single Use Licenses 1,000 ArcGIS Online Viewers 1,000 ArcGIS Online Creators 110,000 ArcGIS Online Service Credits 1,000 Level 2 ArcGIS Enterprise Named Users 15 Insights for ArcGIS for use with ArcGIS Enterprise 15 Insights for ArcGIS for use with ArcGIS Online OTHER BENEFITS Number of Esri User Conference registrations provided annually 5 Number of Tier 1 Help Desk individuals authorized to call Esri 5 Maximum number of sets of backup media, if requested** 2 Self-Paced e-Learning Uncapped Five percent (5%) discount on all individual commercially available instructor-led training classes at Esri facilities purchased outside this Agreement (Discount does not apply to Small Enterprise Training Package) * Maintenance is not provided for these items **Additional sets of backup media may be purchased for a fee 18.c Packet Pg. 467 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Page 2 of 6 November 20, 2018 Customer may accept this Agreement by signing and returning the whole Agreement with (i) the Quotation attached, (ii) a purchase order, or (iii) another document that matches the Quotation and references this Agreement ("Ordering Document"). ADDITIONAL OR CONFLICTING TERMS IN CUSTOMER'S PURCHASE ORDER OR OTHER DOCUMENT WILL NOT APPLY, AND THE TERMS OF THIS AGREEMENT WILL GOVERN. This Agreement is effective as of the date of Esri's receipt of an Ordering Document, unless otherwise agreed to by the parties ("Effective Date"). Term of Agreement: Three (3) years This Agreement supersedes any previous agreements, proposals, presentations, understandings, and arrangements between the parties relating to the licensing of the Products. Except as provided in Article 4— Product Updates, no modifications can be made to this Agreement. Accepted and Agreed: (Customer) By: Authorized Signature Printed Name: Title: Date: CUSTOMER CONTACT INFORMATION Contact: Telephone: Address: Fax: City, State, Postal Code: E-mail: Country: Quotation Number (if applicable): 18.c Packet Pg. 468 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Page 3 of 6 November 20, 2018 1.0—ADDITIONAL DEFINITIONS In addition to the definitions provided in the Master Agreement, the following definitions apply to this Agreement: "Case" means a failure of the Software or Online Services to operate according to the Documentation where such failure substantially impacts operational or functional performance. "Deploy", "Deployed" and "Deployment" mean to redistribute and install the Products and related Authorization Codes within Customer's organization(s). "Fee" means the fee set forth in the Quotation. "Maintenance" means Tier 2 Support, Product updates, and Product patches provided to Customer during the Term of Agreement. "Master Agreement" means the applicable master agreement for Esri Products incorporated by this reference that is (i) found at http://www.esri.com/legal/software-license and available in the installation process requiring acceptance by electronic acknowledgment or (ii) a signed Esri master agreement or license agreement that supersedes such electronically acknowledged master agreement. "Product(s)" means the products identified in Table A—List of Products and any updates to the list Esri provides in writing. "Quotation" means the offer letter and quotation provided separately to Customer. "Technical Support" means the technical assistance for attempting resolution of a reported Case through error correction, patches, hot fixes, workarounds, replacement deliveries, or any other type of Product corrections or modifications. "Tier 1 Help Desk" means Customer's point of contact(s) to provide all Tier 1 Support within Customer's organization(s). "Tier 1 Support" means the Technical Support provided by the Tier 1 Help Desk. "Tier 2 Support" means the Esri Technical Support provided to the Tier 1 Help Desk when a Case cannot be resolved through Tier 1 Support. 2.0—ADDITIONAL GRANT OF LICENSE 2.1 Grant of License. Subject to the terms and conditions of this Agreement, Esri grants to Customer a personal, nonexclusive, nontransferable license solely to use, copy, and Deploy quantities of the Products listed in Table A—List of Products for the Term of Agreement (i) for the applicable Fee and (ii) in accordance with the Master Agreement. 2.2 Consultant Access. Esri grants Customer the right to permit Customer's consultants or contractors to use the Products exclusively for Customer's benefit. Customer will be solely responsible for compliance by consultants and contractors with this Agreement and will ensure that the consultant or contractor discontinues use of Products upon completion of work for Customer. Access to or use of Products by consultants or contractors not exclusively for Customer's benefit is prohibited. Customer may not permit its consultants or contractors to install Software or Data on consultant, contractor, or third-party computers or remove Software or Data from Customer locations, except for the purpose of hosting the Software or Data on Contractor servers for the benefit of Customer. 3.0—TERM, TERMINATION, AND EXPIRATION 3.1 Term. This Agreement and all licenses hereunder will commence on the Effective Date and continue for the duration identified in the Term of Agreement, unless this Agreement is terminated earlier as provided herein. Customer is only authorized to use Products during the Term of Agreement. For an Agreement with a limited term, Esri does not grant Customer an indefinite or a perpetual license to Products. 3.2 No Use upon Agreement Expiration or Termination. All Product licenses, all Maintenance, and Esri User Conference registrations terminate upon expiration or termination of this Agreement. 3.3 Termination for a Material Breach. Either party may terminate this Agreement for a material breach by the other party. The breaching party will have thirty (30) days from the date of written notice to cure any material breach. 3.4 Termination for Lack of Funds. For an Agreement with government or government- owned entities, either party may terminate this Agreement before any subsequent year if 18.c Packet Pg. 469 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Page 4 of 6 November 20, 2018 Customer is unable to secure funding through the legislative or governing body's approval process. 3.5 Follow-on Term. If the parties enter into another agreement substantially similar to this Agreement for an additional term, the effective date of the follow-on agreement will be the day after the expiration date of this Agreement. 4.0—PRODUCT UPDATES 4.1 Future Updates. Esri reserves the right to update the list of Products in Table A—List of Products by providing written notice to Customer. Customer may continue to use all Products that have been Deployed, but support and upgrades for deleted items may not be available. As new Products are incorporated into the standard program, they will be offered to Customer via written notice for incorporation into the Products schedule at no additional charge. Customer's use of new or updated Products requires Customer to adhere to applicable additional or revised terms and conditions in the Master Agreement. 4.2 Product Life Cycle. During the Term of Agreement, some Products may be retired or may no longer be available to Deploy in the identified quantities. Maintenance will be subject to the individual Product Life Cycle Support Status and Product Life Cycle Support Policy, which can be found at http://support.esri.com/en/content/productlifecycl es. Updates for Products in the mature and retired phases may not be available. Customer may continue to use Products already Deployed, but Customer will not be able to Deploy retired Products. 5.0—MAINTENANCE The Fee includes standard maintenance benefits during the Term of Agreement as specified in the most current applicable Esri Maintenance and Support Program document (found at http://www.esri.com/legal). At Esri's sole discretion, Esri may make patches, hot fixes, or updates available for download. No Software other than the defined Products will receive Maintenance. Customer may acquire maintenance for other Software outside this Agreement. a. Tier 1 Support 1. Customer will provide Tier 1 Support through the Tier 1 Help Desk to all Customer's authorized users. 2. The Tier 1 Help Desk will be fully trained in the Products. 3. At a minimum, Tier 1 Support will include those activities that assist the user in resolving how-to and operational questions as well as questions on installation and troubleshooting procedures. 4. The Tier 1 Help Desk will be the initial point of contact for all questions and reporting of a Case. The Tier 1 Help Desk will obtain a full description of each reported Case and the system configuration from the user. This may include obtaining any customizations, code samples, or data involved in the Case. 5. If the Tier 1 Help Desk cannot resolve the Case, an authorized Tier 1 Help Desk individual may contact Tier 2 Support. The Tier 1 Help Desk will provide support in such a way as to minimize repeat calls and make solutions to problems available to Customer’s organization. 6. Tier 1 Help Desk individuals are the only individuals authorized to contact Tier 2 Support. Customer may change the Tier 1 Help Desk individuals by written notice to Esri. b. Tier 2 Support 1. Tier 2 Support will log the calls received from Tier 1 Help Desk. 2. Tier 2 Support will review all information collected by and received from the Tier 1 Help Desk including preliminary documented troubleshooting provided by the Tier 1 Help Desk when Tier 2 Support is required. 3. Tier 2 Support may request that Tier 1 Help Desk individuals provide verification of information, additional information, or answers to additional questions to supplement any preliminary information gathering or troubleshooting performed by Tier 1 Help Desk. 4. Tier 2 Support will attempt to resolve the Case submitted by Tier 1 Help Desk. 18.c Packet Pg. 470 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Page 5 of 6 November 20, 2018 5. When the Case is resolved, Tier 2 Support will communicate the information to Tier 1 Help Desk, and Tier 1 Help Desk will disseminate the resolution to the user(s). 6.0—ENDORSEMENT AND PUBLICITY This Agreement will not be construed or interpreted as an exclusive dealings agreement or Customer's endorsement of Products. Either party may publicize the existence of this Agreement. 7.0—ADMINISTRATIVE REQUIREMENTS 7.1 OEM Licenses. Under Esri's OEM or Solution OEM programs, OEM partners are authorized to embed or bundle portions of Esri products and services with their application or service. OEM partners' business model, licensing terms and conditions, and pricing are independent of this Agreement. Customer will not seek any discount from the OEM partner or Esri based on the availability of Products under this Agreement. Customer will not decouple Esri products or services from the OEM partners' application or service. 7.2 Annual Report of Deployments. At each anniversary date and ninety (90) calendar days prior to the expiration of this Agreement, Customer will provide Esri with a written report detailing all Deployments. Upon request, Customer will provide records sufficient to verify the accuracy of the annual report. 8.0—ORDERING, ADMINISTRATIVE PROCEDURES, DELIVERY, AND DEPLOYMENT 8.1 Orders, Delivery, and Deployment a. Upon the Effective Date, Esri will invoice Customer and provide Authorization Codes to activate the nondestructive copy protection program that enables Customer to download, operate, or allow access to the Products. If this is a multi-year Agreement, Esri may invoice the Fee before the annual anniversary date for each year. b. Undisputed invoices will be due and payable within thirty (30) calendar days from the date of invoice. Esri's federal ID number is 95-2775-732. c. If requested, Esri will ship backup media to the ship-to address identified on the Ordering Document, FOB Destination, with shipping charges prepaid. Customer acknowledges that should sales or use taxes become due as a result of any shipments of tangible media, Esri has a right to invoice and Customer will pay any such sales or use tax associated with the receipt of tangible media. 8.2 Order Requirements. Esri does not require Customer to issue a purchase order. Customer may submit a purchase order in accordance with its own process requirements, provided that if Customer issues a purchase order, Customer will submit its initial purchase order on the Effective Date. If this is a multi-year Agreement, Customer will submit subsequent purchase orders to Esri at least thirty (30) calendar days before the annual anniversary date for each year. a. All orders pertaining to this Agreement will be processed through Customer's centralized point of contact. b. The following information will be included in each Ordering Document: (1) Customer name; Esri customer number, if known; and bill-to and ship-to addresses (2) Order number (3) Applicable annual payment due 9.0—MERGERS, ACQUISITIONS, OR DIVESTITURES If Customer is a commercial entity, Customer will notify Esri in writing in the event of (i) a consolidation, merger, or reorganization of Customer with or into another corporation or entity; (ii) Customer's acquisition of another entity; or (iii) a transfer or sale of all or part of Customer's organization (subsections i, ii, and iii, collectively referred to as "Ownership Change"). There will be no decrease in Fee as a result of any Ownership Change. 9.1 If an Ownership Change increases the cumulative program count beyond the maximum level for this Agreement, Esri reserves the right to increase the Fee or terminate this Agreement and the parties will negotiate a new agreement. 9.2 If an Ownership Change results in transfer or sale of a portion of Customer's organization, that portion of Customer's organization will transfer 18.c Packet Pg. 471 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Page 6 of 6 November 20, 2018 the Products to Customer or uninstall, remove, and destroy all copies of the Products. 9.3 This Agreement may not be assigned to a successor entity as a result of an Ownership Change unless approved by Esri in writing in advance. If the assignment to the new entity is not approved, Customer will require any successor entity to uninstall, remove, and destroy the Products. This Agreement will terminate upon such Ownership Change. 18.c Packet Pg. 472 Attachment: IT.annual software renewals FY2020-2021 - ap2-Esri (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Support Agreement This Support Agreement is made, as of the date set forth below (the “Effective Date”) by and between Tyler Technologies, Inc. with offices at 840 West Long Lake Road, Troy, MI 48098 (“Tyler”) and the client identified below (“Client”). WHEREAS, New World Systems Corporation (“New World”) and Client are parties to an original agreement (“Agreement”) under which Client licensed the New World software itemized therein; and WHEREAS, Tyler and New World merged effective November 16, 2015, with Tyler as the surviving entity; and WHEREAS, Tyler and Client desire to update the applicable maintenance and support services terms; NOW THEREFORE, in consideration of the mutual promises hereinafter contained, Tyler and Client agree as follows : 1. The New World software Client licensed under the Agreement, and on which Client has paid maintenance and support fees through the Effective Date, shall mean the “Tyler Software” for purposes of this Support Amendment. 2. Tyler shall provide maintenance and support services on the Tyler Software according to the terms of Exhibit 1 to this Support Amendment. 3. For the term specified in the applicable invoice, Client shall remit to Tyler maintenance fees in the amount set forth therein. Payment is due within thirty (30) days of the invoice date. 4. This Support Agreement shall be governed by and construed in accordance with the terms and conditions of the Agreement. 5. All other terms and conditions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Support Agreement as of the dates set forth below. Tyler Technologies, Inc. City of San Bernardino, CA By: By: Name: Name: Title: Title: Date: Date: 18.d Packet Pg. 473 Attachment: IT.annual software renewals FY2020-2021 - ap3-tyler-pd (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Exhibit 1 Maintenance and Support Agreement Tyler (“we”) will provide Client (“you”) with the following maintenance and support services for the Tyler Software set forth in Schedule B, which is a list of all modules and interfaces currently under maintenance and support as of the Amendment Effective Date and does not include previously discontinued or dropped modules and interfaces. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Support Agreement. 1. Term. We provide maintenance and support services on an annual basis. The initial term commences on July 1, 2020 and remains in effect for one (1) year. The term will renew automatically for additional one (1) year terms unless terminated in writing by either party at least ninety (90) days prior to the end of the then-current term. 2. Maintenance and Support Fees. Your maintenance and support fees for the initial term for the Tyler Software will be $316,476.00. Your fees for each subsequent term will be at our then-current rates. We reserve the right to suspend maintenance and support services if you fail to pay undisputed maintenance and support fees within thirty (30) days of our written notice. We will reinstate maintenance and support services only if you pay all past due maintenance and support fees, including all fees for the periods during which services were suspended. 3. Maintenance and Support Services. As long as you are not using the Help Desk as a substitute for our training services on the Tyler Software, and you timely pay your maintenance and support fees, we will, consistent with our then-current Support Call Process: 3.1 perform our maintenance and support obligations in a professional, good, and workmanlike manner, consistent with industry standards, to resolve Defects, as defined in the Agreement, in the Tyler Software (limited to the then-current version and the immediately prior version); provided, however, that if you modify the Tyler Software without our consent, our obligation to provide maintenance and support services on and warrant the Tyler Software will be void; 3.2 a) provide telephone support during our established support hours, currently Monday through Friday from 8:00 a.m. to 9:00 p.m. (Eastern Time Zone). b) emergency 24-hour per day telephone support, for New World CAD only, seven (7) days per week for Licensed Standard Software. Normal service is available from 8:00 a.m. to 9:00 p.m. (Eastern Time Zone). After 8:00 p.m., the New World CAD phone support will be provided via pager and a support representative will respond to CAD service calls within 30 minutes of call initiation. 3.3 maintain personnel that are sufficiently trained to be familiar with the Tyler Software and third party software, if any, in order to provide maintenance and support services; 3.4 provide you with a copy of all major and minor releases to the Tyler Software (including updates and enhancements) that we make generally available without additional charge to customers who have a maintenance and support agreement in effect; and 3.5 provide non-Defect resolution support of prior releases of the Tyler Software in accordance with our then- current release life cycle policy. 18.d Packet Pg. 474 Attachment: IT.annual software renewals FY2020-2021 - ap3-tyler-pd (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and 4. Client Responsibilities. We will use all reasonable efforts to perform any maintenance and support services remotely. Currently, we use a third-party secure unattended connectivity tool called Bomgar, as well as GotoAssist by Citrix. Therefore, you agree to maintain a high-speed internet connection capable of connecting us to your PCs and server(s). You agree to provide us with a login account and local administrative privileges as we may reasonably require to perform remote services. We will, at our option, use the secure connection to assist with proper diagnosis and resolution, subject to any reasonably applicable security protocols. If we cannot resolve a support issue remotely, we may be required to provide onsite services. In such event, we will be responsible for our travel expenses, unless it is determined that the reason onsite support was required was a reason outside our control. Either way, you agree to provide us with full and free access to the Tyler Software, working space, adequate facilities within a reasonable distance from the equipment, and use of machines, attachments, features, or other equipment reasonably necessary for us to provide the maintenance and support services, all at no charge to us. We strongly recommend that you also maintain a VPN for backup connectivity purposes. 5. Hardware and Other Systems. If in the process of diagnosing a software support issue it is discovered that one of your peripheral systems or other software is the cause of the issue, we will notify you so that you may contact the support agency for that peripheral system. We cannot support or maintain third party products except as expressly set forth in the Agreement. In order for us to provide the highest level of software support, you bear the following responsibility related to hardware and software: (a) All infrastructure executing Tyler Software shall be managed by you; (b) You will maintain support contracts for all non-Tyler software associated with Tyler Software (including operating systems and database management systems, but excluding Third-Party Software, if any); and (c) You will perform daily database backups and verify that those backups are successful. 6. Other Excluded Services. Maintenance and support fees do not include fees for the following services: (a) initial installation or implementation of the Tyler Software; (b) onsite maintenance and support (unless Tyler cannot remotely correct a Defect in the Tyler Software, as set forth above); (c) application design; (d) other consulting services; (e) maintenance and support of an operating system or hardware; (f) support outside our established support hours; or (g) installation, training services, or third party product costs related to a new release. Requested maintenance and support services such as those outlined in this section will be billed to you on a time and materials basis at our then current rates. You must request those services with at least one (1) weeks’ advance notice. 7. Current Support Call Process. Our current Support Call Process for the Tyler Software is provided Schedule A to Exhibit 1. 18.d Packet Pg. 475 Attachment: IT.annual software renewals FY2020-2021 - ap3-tyler-pd (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Exhibit 1 Schedule A Support Call Process If, after you have cut over to live production use of the Tyler Software, you believe that the Tyler Software is Defective, as “Defect” is defined in the Agreement, then you will notify us by phone, in writing, by email, or through the support website. Please reference the applicable Customer Support page at www.tylertech.com/client-support for information on how to use these various means of contact. Documented examples of the claimed Defect must accompany each notice. We will review the documented notice and when there is a Defect, we shall resolve it at no additional cost to you beyond your then-current maintenance and support fees. In receiving and responding to Defect notices and other support calls, we will follow the priority categorizations below. These categories are assigned based on your determination of the severity of the Defect and our reasonable analysis. If you believe a priority categorization needs to be updated, you may contact us again, via the same methods outlined above, to request the change. In each instance of a Priority 1 or 2 Defect, prior to final Defect correction, the support team may offer you workaround solutions, including patches, configuration changes, and operational adjustments, or may recommend that you revert back to the prior version the Tyler Software pending Defect correction. (a) Priority 1: A Defect that renders the Tyler Software inoperative; or causes the Tyler Software to fail catastrophically. After initial assessment of the Priority 1 Defect, if required, we shall assign a qualified product technical specialist(s) within one business (1) hour. The technical specialist(s) will then work to diagnose the Defect and to correct the Defect, providing ongoing communication to you concerning the status of the correction until the Tyler Software is operational without Priority 1 defect. The goal for correcting a Priority 1 Defect is 24 hours or less. (b) Priority 2: A Defect that substantially degrades the performance of the Tyler Software, but does not prohibit your use of the Tyler Software. We shall assign a qualified product technical specialist(s) within four (4) business hours of our receipt of your notice. The product technical specialist will then work to diagnose and correct the Defect. We shall work diligently to make the correction, and shall provide ongoing communication to you concerning the status of the correction until the Tyler Software is operational without Priority 2 Defect. The goal for correcting a Priority 2 event is to include a correction in the next Tyler Software release. (c) Priority 3: A Defect which causes only a minor impact on the use of the Tyler Software. We may include a correction in subsequent Tyler Software releases. 18.d Packet Pg. 476 Attachment: IT.annual software renewals FY2020-2021 - ap3-tyler-pd (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Exhibit 1 Schedule B Customer Software Inventory Amount Computer Aided Dispatch (CAD) Combined LE/Fire/EMS CAD Enterprise.NET $31,290.00 E-911 Interface Enterprise.NET $3,600.00 CAD Pager Interface Enterprise.NET $3,600.00 CAD AVL Enterprise.NET $3,400.00 Service Vehicle Rotation Enterprise.NET $3,400.00 On-Line CAD Interface to State/NCIC $8,800.00 Pre-Arrival Questionnaire Interface Enterprise.NET $3,600.00 Law Enforcement Records Software LE Records Single Jurisdiction Base MSP $17,424.00 LE Records Federal & State Compliance MSP $6,000.00 Field Investigations MSP $3,000.00 Case Management MSP $3,000.00 Alarms Tracking and Billing MSP $4,200.00 Property Room Bar Coding MSP $3,000.00 Narcotics Management MSP $4,200.00 Data Analysis Mapping & Management Reporting MSP $6,000.00 State Accidents Compliance MSP $6,000.00 Fire Records Software Fire Records Base Package MSP $12,672.00 Fire NFIRS 5.0 Electronic Reporting MSP $6,800.00 Public Safety Interface Software State/NCIC Interface MSP $16,400.00 VINE Interface MSP $240.00 Livescan Interface MSP $3,600.00 Communications Server to State/NCIC $3,600.00 Ticket Writer Interface MSP $8,000.00 Citizens Reporting Interface MSP $2,300.00 Linx Interface $2,300.00 COPLINK Interface $4,600.00 Photo Imaging Software Public Safety Mug Shots/Line-Ups MSP $600.00 Decision Support Software LE Management Data Mart $2,400.00 CAD Enterprise Data Mart $2,400.00 Corrections Management Software Corrections Management Base MSP $17,688.00 Corrections Compliance Federal & State Reporting $6,800.00 Corrections Barcoding MSP $3,400.00 Inmate Movement Tracking Bar Coding $3,400.00 18.d Packet Pg. 477 Attachment: IT.annual software renewals FY2020-2021 - ap3-tyler-pd (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and Mobile Management Server Software New World Mobile Messaging Server $22,000.00 Field Based Reporting Software Field Reporting Server $12,000.00 LE State/NCIC via Switch $12,480.00 LE Field Reporting $14,080.00 LE Accident Field Reporting $10,560.00 Fire CAD Via Switch (Messaging) $2,800.00 Mugshot Images Download $3,120.00 In Car Mapping $4,680.00 New World AVL $2,865.00 In-Car Routing $3,120.00 State Photo Download $3,120.00 EMS Field Reporting $20.00 ESRI Embedded Applications ArcGIS Runtime CAD Desktop Workstations $3,300.00 ArcGIS Runtime Mobile In-Car $4,680.00 ArcGIS Advanced Enterprise Server Integration $5,900.00 Third Party Scene PD (Maintenance is through ScenePD) N/A Brazos eCitation - BRAZOS REF MDC or Tablet $1,530.00 Brazos Hosting Fee $1,047.00 State Compliant Crash Report Software with $810.00 Field Interview Module $650.00 TOTALS $316,476.00 18.d Packet Pg. 478 Attachment: IT.annual software renewals FY2020-2021 - ap3-tyler-pd (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Software, and 1 LICENSE AND SERVICES AGREEMENT This License and Services Agreement is made between Tyler Technologies, Inc. and Client. WHEREAS, New World Systems Corporation and the City of San Bernardino are parties to a Standard Software License Subscription and Services Agreement dated January 12, 2011 (“Subscription Agreement”); and WHEREAS, Tyler Technologies, Inc. and New World Systems Corporation merged effective November 16, 2015, with Tyler as the surviving entity; and WHEREAS, Client selected Tyler to license the software products and perform the services set forth in the Investment Summary and Tyler desires to perform such actions under the terms of this Agreement; NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and promises set forth in this Agreement, Tyler and Client agree as follows: SECTION A – DEFINITIONS • “Agreement” means this License and Services Agreement. • “Business Travel Policy” means our business travel policy. A copy of our current Business Travel Policy is attached as Schedule 1 to Exhibit B. • “Client” means the City of San Bernardino. • “Defect” means a failure of the Tyler Software to substantially conform to the functional descriptions set forth in our written proposal to you, or their functional equivalent. Future functionality may be updated, modified, or otherwise enhanced through our maintenance and support services, and the governing functional descriptions for such future functionality will be set forth in our then-current Documentation. • “Developer” means a third party who owns the intellectual property rights to Third Party Software. • “Documentation” means any online or written documentation related to the use or functionality of the Tyler Software that we provide or otherwise make available to you, including instructions, user guides, manuals and other training or self-help documentation. • “Effective Date” means the date by which both your and our authorized representatives have signed the Agreement. • “Force Majeure” means an event beyond the reasonable control of you or us, including, without limitation, governmental action, war, riot or civil commotion, fire, natural disaster, or any other cause that could not with reasonable diligence be foreseen or prevented by you or us. • “Investment Summary” means the agreed upon cost proposal for the software, products, and services attached as Exhibit A. • “Invoicing and Payment Policy” means the invoicing and payment policy. A copy of our current Invoicing and Payment Policy is attached as Exhibit B. 18.e Packet Pg. 479 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 2 • “Maintenance and Support Agreement” means the terms and conditions governing the provision of maintenance and support services to all of our customers. A copy of our current Maintenance and Support Agreement is attached as Exhibit C. • “Support Call Process” means the support call process applicable to all of our customers who have licensed the Tyler Software. A copy of our current Support Call Process is attached as Schedule 1 to Exhibit C. • “Third Party Hardware” means the third party hardware, if any, identified in the Investment Summary. • “Third Party Products” means the Third Party Software and Third Party Hardware. • “Third Party Services” means the third party services, if any, identified in the Investment Summary. • “Third Party Software” means the third party software, if any, identified in the Investment Summary. • “Third Party Terms” means, if any, the end user license agreement(s) or similar terms for the Third Party Software, as applicable and attached as Exhibit D. • “Tyler” means Tyler Technologies, Inc., a Delaware corporation. • “Tyler Software” means our proprietary software, including any integrations, custom modifications, and/or other related interfaces identified in the Investment Summary and licensed by us to you through this Agreement. • “we”, “us”, “our” and similar terms mean Tyler. • “you” and similar terms mean Client. SECTION B – SOFTWARE LICENSE 1. License Grant and Restrictions. 1.1 We grant to you a license to use the Tyler Software for your internal business purposes only, in the scope of the internal business purposes disclosed to us as of the Effective Date. You may make copies of the Tyler Software for backup and testing purposes, so long as such copies are not used in production and the testing is for internal use only. Your rights to use the Tyler Software are perpetual but may be revoked if you do not comply with the terms of this Agreement. 1.2 The Documentation is licensed to you and may be used and copied by your employees for internal, non-commercial reference purposes only. 1.3 You may not: (a) transfer or assign the Tyler Software to a third party; (b) reverse engineer, decompile, or disassemble the Tyler Software; (c) rent, lease, lend, or provide commercial hosting services with the Tyler Software; or (d) publish or otherwise disclose the Tyler Software or Documentation to third parties. 1.4 The license terms in this Agreement apply to updates and enhancements we may provide to you or make available to you through your Maintenance and Support Agreement. 1.5 The right to transfer the Tyler Software to a replacement hardware system is included in your license. You will give us advance written notice of any such transfer and will pay us for any required or requested technical assistance from us associated with such transfer. 18.e Packet Pg. 480 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 3 1.6 Where applicable with respect to our applications that take or process card payment data, we are responsible for the security of cardholder data that we possess, including functions relating to storing, processing, and transmitting of the cardholder data and affirm that, as of the Effective Date, we comply with applicable requirements to be considered PCI DSS compliant and have performed the necessary steps to validate compliance with the PCI DSS. We agree to supply the current status of our PCI DSS compliance program in the form of an official Attestation of Compliance, which can be found at https://www.tylertech.com/about- us/compliance, and in the event of any change in our status, will comply with applicable notice requirements. 1.7 We reserve all rights not expressly granted to you in this Agreement. The Tyler Software and Documentation are protected by copyright and other intellectual property laws and treaties. We own the title, copyright, and other intellectual property rights in the Tyler Software and the Documentation. The Tyler Software is licensed, not sold. 2. License Fees. You agree to pay us the license fees in the amounts set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. 3. Escrow. We maintain an escrow agreement with a third party under which we place the source code for each major release of the Tyler Software. You may be added as a beneficiary to the escrow agreement by completing a standard beneficiary enrollment form and paying the applicable annual beneficiary fee. You will be responsible for maintaining your ongoing status as a beneficiary, including payment of the then-current annual beneficiary fees. Release of source code for the Tyler Software is strictly governed by the terms of the escrow agreement. 4. Limited Warranty. We warrant that the Tyler Software will be without Defect(s) as long as you have a Maintenance and Support Agreement in effect. If the Tyler Software does not perform as warranted, we will use all reasonable efforts, consistent with industry standards, to cure the Defect as set forth in the Maintenance and Support Agreement. SECTION C – PROFESSIONAL SERVICES 1. Services. We will provide you the various implementation-related services itemized in the Investment Summary and described in our industry standard implementation plan. We will finalize that documentation with you upon execution of this Agreement. 2. Professional Services Fees. You agree to pay us the professional services fees in the amounts set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. You acknowledge that the fees stated in the Investment Summary are good-faith estimates of the amount of time and materials required for your implementation. We will bill you the actual fees incurred based on the in-scope services provided to you. Any discrepancies in the total values set forth in the Investment Summary will be resolved by multiplying the applicable hourly rate by the quoted hours. 3. Additional Services. The Investment Summary contains the scope of services and related costs (including programming and/or interface estimates) required for the project based on our understanding of the specifications you supplied. If additional work is required, or if you use or 18.e Packet Pg. 481 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 4 request additional services, we will provide you with an addendum or change order, as applicable, outlining the costs for the additional work. The price quotes in the addendum or change order will be valid for thirty (30) days from the date of the quote. 4. Cancellation. We make all reasonable efforts to schedule our personnel for travel, including arranging travel reservations, at least two (2) weeks in advance of commitments. Therefore, if you cancel services less than two (2) weeks in advance (other than for Force Majeure or breach by us), you will be liable for all (a) non-refundable expenses incurred by us on your behalf, and (b) daily fees associated with cancelled professional services if we are unable to reassign our personnel. We will make all reasonable efforts to reassign personnel in the event you cancel within two (2) weeks of scheduled commitments. 5. Services Warranty. We will perform the services in a professional, workmanlike manner, consistent with industry standards. In the event we provide services that do not conform to this warranty, we will re-perform such services at no additional cost to you. 6. Site Access and Requirements. At no cost to us, you agree to provide us with full and free access to your personnel, facilities, and equipment as may be reasonably necessary for us to provide implementation services, subject to any reasonable security protocols or other written policies provided to us as of the Effective Date, and thereafter as mutually agreed to by you and us. You further agree to provide a reasonably suitable environment, location, and space for the installation of the Tyler Software and any Third Party Products, including, without limitation, sufficient electrical circuits, cables, and other reasonably necessary items required for the installation and operation of the Tyler Software and any Third Party Products. 7. Client Assistance. You acknowledge that the implementation of the Tyler Software is a cooperative process requiring the time and resources of your personnel. You agree to use all reasonable efforts to cooperate with and assist us as may be reasonably required to meet the agreed upon project deadlines and other milestones for implementation. This cooperation includes at least working with us to schedule the implementation-related services outlined in this Agreement. We will not be liable for failure to meet any deadlines and milestones when such failure is due to Force Majeure or to the failure by your personnel to provide such cooperation and assistance (either through action or omission). 8. Background Checks. For at least the past twelve (12) years, all of our employees have undergone criminal background checks prior to hire. All employees sign our confidentiality agreement and security policies. SECTION D – MAINTENANCE AND SUPPORT This Agreement includes the period of free maintenance and support services identified in the Invoicing and Payment Policy. If you have purchased ongoing maintenance and support services, and continue to make timely payments for them according to our Invoicing and Payment Policy, we will provide you with maintenance and support services for the Tyler Software under the terms of our standard Maintenance and Support Agreement. If you have opted not to purchase ongoing maintenance and support services for the Tyler Software, the Maintenance and Support Agreement does not apply to you. Instead, you will only receive 18.e Packet Pg. 482 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 5 ongoing maintenance and support on the Tyler Software on a time and materials basis. In addition, you will: (i) receive the lowest priority under our Support Call Process; (ii) be required to purchase new releases of the Tyler Software, including fixes, enhancements and patches; (iii) be charged our then-current rates for support services, or such other rates that we may consider necessary to account for your lack of ongoing training on the Tyler Software; (iv) be charged for a minimum of two (2) hours of support services for every support call; and (v) not be granted access to the support website for the Tyler Software or the Tyler Community Forum. SECTION E – THIRD PARTY PRODUCTS To the extent there are any Third Party Products set forth in the Investment Summary, the following terms and conditions will apply: 1. Third Party Hardware. We will sell, deliver, and install onsite the Third Party Hardware, if you have purchased any, for the price set forth in the Investment Summary. Those amounts are payable in accordance with our Invoicing and Payment Policy. 2. Third Party Software. Upon payment in full of the Third Party Software license fees, you will receive a non-transferable license to use the Third Party Software and related documentation for your internal business purposes only. Your license rights to the Third Party Software will be governed by the Third Party Terms. 2.1 We will install onsite the Third Party Software. The installation cost is included in the installation fee in the Investment Summary. 2.2 If the Developer charges a fee for future updates, releases, or other enhancements to the Third Party Software, you will be required to pay such additional future fee. 2.3 The right to transfer the Third Party Software to a replacement hardware system is governed by the Developer. You will give us advance written notice of any such transfer and will pay us for any required or requested technical assistance from us associated with such transfer. 3. Third Party Products Warranties. 3.1 We are authorized by each Developer to grant or transfer the licenses to the Third Party Software. 3.2 The Third Party Hardware will be new and unused, and upon payment in full, you will receive free and clear title to the Third Party Hardware. 3.3 You acknowledge that we are not the manufacturer of the Third Party Products. We do not warrant or guarantee the performance of the Third Party Products. However, we grant and pass through to you any warranty that we may receive from the Developer or supplier of the Third 18.e Packet Pg. 483 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 6 Party Products. 4. Third Party Services. If you have purchased Third Party Services, those services will be provided independent of Tyler by such third-party at the rates set forth in the Investment Summary and in accordance with our Invoicing and Payment Policy. 5. Maintenance. If you have a Maintenance and Support Agreement in effect, you may report defects and other issues related to the Third Party Software directly to us, and we will (a) directly address the defect or issue, to the extent it relates to our interface with the Third Party Software; and/or (b) facilitate resolution with the Developer, unless that Developer requires that you have a separate, direct maintenance agreement in effect with that Developer. In all events, if you do not have a Maintenance and Support Agreement in effect with us, you will be responsible for resolving defects and other issues related to the Third Party Software directly with the Developer. SECTION F – INVOICING AND PAYMENT; INVOICE DISPUTES 1. Invoicing and Payment. We will invoice you for all fees set forth in the Investment Summary per our Invoicing and Payment Policy, subject to Section F(2). 2. Invoice Disputes. If you believe any delivered software or service does not conform to the warranties in this Agreement, you will provide us with written notice within thirty (30) days of your receipt of the applicable invoice. The written notice must contain reasonable detail of the issues you contend are in dispute so that we can confirm the issue and respond to your notice with either a justification of the invoice, an adjustment to the invoice, or a proposal addressing the issues presented in your notice. We will work with you as may be necessary to develop an action plan that outlines reasonable steps to be taken by each of us to resolve any issues presented in your notice. You may withhold payment of the amount(s) actually in dispute, and only those amounts, until we complete the action items outlined in the plan. If we are unable to complete the action items outlined in the action plan because of your failure to complete the items agreed to be done by you, then you will remit full payment of the invoice. We reserve the right to suspend delivery of all services, including maintenance and support services, if you fail to pay an invoice not disputed as described above within fifteen (15) days of notice of our intent to do so. SECTION G – TERMINATION 1. Termination. This Agreement may be terminated as set forth below. In the event of termination, you will pay us for all undisputed fees and expenses related to the software, products, and/or services you have received, or we have incurred or delivered, prior to the effective date of termination. Disputed fees and expenses in all terminations other than your termination for cause must have been submitted as invoice disputes in accordance with Section F(2). 1.1 For Cause. If you believe we have materially breached this Agreement, you will invoke the Dispute Resolution clause set forth in Section I(3). You may terminate this Agreement for cause in the event we do not cure, or create a mutually agreeable action plan to address, a material breach of this Agreement within the thirty (30) day window set forth in Section I(3). 1.2 Force Majeure. Either party has the right to terminate this Agreement if a Force Majeure event suspends performance of this Agreement for a period of forty-five (45) days or more. 18.e Packet Pg. 484 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 7 1.3 Lack of Appropriations. If you should not appropriate or otherwise receive funds sufficient to purchase, lease, operate, or maintain the software or services set forth in this Agreement, you may unilaterally terminate this Agreement upon thirty (30) days written notice to us. You will not be entitled to a refund or offset of previously paid license and other fees. You agree not to use termination for lack of appropriations as a substitute for termination for convenience. SECTION H – INDEMNIFICATION, LIMITATION OF LIABILITY AND INSURANCE 1. Intellectual Property Infringement Indemnification. 1.1 We will defend you against any third party claim(s) that the Tyler Software or Documentation infringes that third party’s patent, copyright, or trademark, or misappropriates its trade secrets, and will pay the amount of any resulting adverse final judgment (or settlement to which we consent). You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. 1.2 Our obligations under this Section H(1) will not apply to the extent the claim or adverse final judgment is based on your: (a) use of a previous version of the Tyler Software and the claim would have been avoided had you installed and used the current version of the Tyler Software, and we provided notice of that requirement to you; (b) combining the Tyler Software with any product or device not provided, contemplated, or approved by us; (c) altering or modifying the Tyler Software, including any modification by third parties at your direction or otherwise permitted by you; (d) use of the Tyler Software in contradiction of this Agreement, including with non-licensed third parties; or (e) willful infringement, including use of the Tyler Software after we notify you to discontinue use due to such a claim. 1.3 If we receive information concerning an infringement or misappropriation claim related to the Tyler Software, we may, at our expense and without obligation to do so, either: (a) procure for you the right to continue its use; (b) modify it to make it non-infringing; or (c) replace it with a functional equivalent, in which case you will stop running the allegedly infringing Tyler Software immediately. Alternatively, we may decide to litigate the claim to judgment, in which case you may continue to use the Tyler Software consistent with the terms of this Agreement. 1.4 If an infringement or misappropriation claim is fully litigated and your use of the Tyler Software is enjoined by a court of competent jurisdiction, in addition to paying any adverse final judgment (or settlement to which we consent), we will, at our option, either: (a) procure the right to continue its use; (b) modify it to make it non-infringing; (c) replace it with a functional equivalent; or (d) terminate your license and refund the license fees paid for the infringing Tyler Software, as depreciated on a straight-line basis measured over seven (7) years from the Effective Date. We will pursue those options in the order listed herein. This section provides your exclusive remedy for third party copyright, patent, or trademark infringement and trade secret misappropriation claims. 2. General Indemnification. 2.1 We will indemnify and hold harmless you and your agents, officials, and employees from and 18.e Packet Pg. 485 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 8 against any and all third-party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for (a) personal injury or property damage to the extent caused by our negligence or willful misconduct; or (b) our violation of PCI DSS requirements or a law applicable to our performance under this Agreement. You must notify us promptly in writing of the claim and give us sole control over its defense or settlement. You agree to provide us with reasonable assistance, cooperation, and information in defending the claim at our expense. 2.2 To the extent permitted by applicable law, you will indemnify and hold harmless us and our agents, officials, and employees from and against any and all third-party claims, losses, liabilities, damages, costs, and expenses (including reasonable attorney's fees and costs) for personal injury or property damage to the extent caused by your negligence or willful misconduct; or (b) your violation of a law applicable to your performance under this Agreement. We will notify you promptly in writing of the claim and will give you sole control over its defense or settlement. We agree to provide you with reasonable assistance, cooperation, and information in defending the claim at your expense. 3. DISCLAIMER. EXCEPT FOR THE EXPRESS WARRANTIES PROVIDED IN THIS AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, WE HEREBY DISCLAIM ALL OTHER WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED, OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES, DUTIES, OR CONDITIONS OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. 4. LIMITATION OF LIABILITY. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, OUR LIABILITY FOR DAMAGES ARISING OUT OF THIS AGREEMENT, WHETHER BASED ON A THEORY OF CONTRACT OR TORT, INCLUDING NEGLIGENCE AND STRICT LIABILITY, SHALL BE LIMITED TO YOUR ACTUAL DIRECT DAMAGES, NOT TO EXCEED (A) PRIOR TO FORMAL TRANSITION TO MAINTENANCE AND SUPPORT, THE TOTAL ONE-TIME FEES SET FORTH IN THE INVESTMENT SUMMARY; OR (B) AFTER FORMAL TRANSITION TO MAINTENANCE AND SUPPORT, THE THEN- CURRENT ANNUAL MAINTENANCE AND SUPPORT FEE. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PRICES SET FORTH IN THIS AGREEMENT ARE SET IN RELIANCE UPON THIS LIMITATION OF LIABILITY AND TO THE MAXIMUM EXTENT ALLOWED UNDER APPLICABLE LAW, THE EXCLUSION OF CERTAIN DAMAGES, AND EACH SHALL APPLY REGARDLESS OF THE FAILURE OF AN ESSENTIAL PURPOSE OF ANY REMEDY. THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO CLAIMS THAT ARE SUBJECT TO SECTIONS H(1) AND H(2). 5. EXCLUSION OF CERTAIN DAMAGES. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT SHALL WE BE LIABLE FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES WHATSOEVER, EVEN IF WE HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 6. Insurance. During the course of performing services under this Agreement, we agree to maintain the following levels of insurance: (a) Commercial General Liability of at least $1,000,000; (b) Automobile Liability of at least $1,000,000; (c) Professional Liability of at least $1,000,000; (d) Workers Compensation complying with applicable statutory requirements; and (e) Excess/Umbrella Liability of at least $5,000,000. We will add you as an additional insured to our Commercial General Liability and Automobile Liability policies, which will automatically add you as an additional insured to our Excess/Umbrella Liability policy as well. We will provide you with copies of certificates of 18.e Packet Pg. 486 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 9 insurance upon your written request. SECTION I – GENERAL TERMS AND CONDITIONS 1. Additional Products and Services. You may purchase additional products and services at the rates set forth in the Investment Summary for twelve (12) months from the Effective Date, and thereafter at our then-current list price, by executing a mutually agreed addendum. If no rate is provided in the Investment Summary, or those twelve (12) months have expired, you may purchase additional products and services at our then-current list price, also by executing a mutually agreed addendum. The terms of this Agreement will control any such additional purchase(s), unless otherwise specifically provided in the addendum. 2. Optional Items. Pricing for any listed optional products and services in the Investment Summary will be valid for twelve (12) months from the Effective Date. 3. Dispute Resolution. You agree to provide us with written notice within thirty (30) days of becoming aware of a dispute. You agree to cooperate with us in trying to reasonably resolve all disputes, including, if requested by either party, appointing a senior representative to meet and engage in good faith negotiations with our appointed senior representative. Senior representatives will convene within thirty (30) days of the written dispute notice, unless otherwise agreed. All meetings and discussions between senior representatives will be deemed confidential settlement discussions not subject to disclosure under Federal Rule of Evidence 408 or any similar applicable state rule. If we fail to resolve the dispute, then the parties shall participate in non-binding mediation in an effort to resolve the dispute. If the dispute remains unresolved after mediation, then either of us may assert our respective rights and remedies in a court of competent jurisdiction. Nothing in this section shall prevent you or us from seeking necessary injunctive relief during the dispute resolution procedures. 4. Taxes. The fees in the Investment Summary do not include any taxes, including, without limitation, sales, use, or excise tax. If you are a tax-exempt entity, you agree to provide us with a tax-exempt certificate. Otherwise, we will pay all applicable taxes to the proper authorities and you will reimburse us for such taxes. If you have a valid direct-pay permit, you agree to provide us with a copy. For clarity, we are responsible for paying our income taxes, both federal and state, as applicable, arising from our performance of this Agreement. 5. Nondiscrimination. We will not discriminate against any person employed or applying for employment concerning the performance of our responsibilities under this Agreement. This discrimination prohibition will apply to all matters of initial employment, tenure, and terms of employment, or otherwise with respect to any matter directly or indirectly relating to employment concerning race, color, religion, national origin, age, sex, sexual orientation, ancestry, disability that is unrelated to the individual's ability to perform the duties of a particular job or position, height, weight, marital status, or political affiliation. We will post, where appropriate, all notices related to nondiscrimination as may be required by applicable law. 6. E-Verify. We have complied, and will comply, with the E-Verify procedures administered by the U.S. Citizenship and Immigration Services Verification Division for all of our employees assigned to your project. 18.e Packet Pg. 487 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 10 7. Subcontractors. We will not subcontract any services under this Agreement without your prior written consent, not to be unreasonably withheld. 8. Binding Effect; No Assignment. This Agreement shall be binding on, and shall be for the benefit of, either your or our successor(s) or permitted assign(s). Neither party may assign this Agreement without the prior written consent of the other party; provided, however, your consent is not required for an assignment by us as a result of a corporate reorganization, merger, acquisition, or purchase of substantially all of our assets. 9. Force Majeure. Except for your payment obligations, neither party will be liable for delays in performing its obligations under this Agreement to the extent that the delay is caused by Force Majeure; provided, however, that within ten (10) business days of the Force Majeure event, the party whose performance is delayed provides the other party with written notice explaining the cause and extent thereof, as well as a request for a reasonable time extension equal to the estimated duration of the Force Majeure event. 10. No Intended Third Party Beneficiaries. This Agreement is entered into solely for the benefit of you and us. No third party will be deemed a beneficiary of this Agreement, and no third party will have the right to make any claim or assert any right under this Agreement. This provision does not affect the rights of third parties under any Third Party Terms. 11. Entire Agreement; Amendment. This Agreement represents the entire agreement between you and us with respect to the subject matter hereof, and supersedes any prior agreements, understandings, and representations, whether written, oral, expressed, implied, or statutory. Purchase orders submitted by you, if any, are for your internal administrative purposes only, and the terms and conditions contained in those purchase orders will have no force or effect. This Agreement may only be modified by a written amendment signed by an authorized representative of each party. 12. Severability. If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement will be considered valid and enforceable to the fullest extent permitted by law. 13. No Waiver. In the event that the terms and conditions of this Agreement are not strictly enforced by either party, such non-enforcement will not act as or be deemed to act as a waiver or modification of this Agreement, nor will such non-enforcement prevent such party from enforcing each and every term of this Agreement thereafter. 14. Independent Contractor. We are an independent contractor for all purposes under this Agreement. 15. Notices. All notices or communications required or permitted as a part of this Agreement, such as notice of an alleged material breach for a termination for cause or a dispute that must be submitted to dispute resolution, must be in writing and will be deemed delivered upon the earlier of the following: (a) actual receipt by the receiving party; (b) upon receipt by sender of a certified mail, return receipt signed by an employee or agent of the receiving party; (c) upon receipt by sender of proof of email delivery; or (d) if not actually received, five (5) days after deposit with the United States Postal Service authorized mail center with proper postage (certified mail, return receipt requested) affixed and addressed to the other party at the address set forth on the signature page hereto or such other address as the party may have designated by proper notice. The consequences 18.e Packet Pg. 488 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 11 for the failure to receive a notice due to improper notification by the intended receiving party of a change in address will be borne by the intended receiving party. 16. Client Lists. You agree that we may identify you by name in client lists, marketing presentations, and promotional materials. 17. Confidentiality. Both parties recognize that their respective employees and agents, in the course of performance of this Agreement, may be exposed to confidential information and that disclosure of such information could violate rights to private individuals and entities, including the parties. Confidential information is nonpublic information that a reasonable person would believe to be confidential and includes, without limitation, personal identifying information (e.g., social security numbers) and trade secrets, each as defined by applicable state law. Each party agrees that it will not disclose any confidential information of the other party and further agrees to take all reasonable and appropriate action to prevent such disclosure by its employees or agents. The confidentiality covenants contained herein will survive the termination or cancellation of this Agreement. This obligation of confidentiality will not apply to information that: (a) is in the public domain, either at the time of disclosure or afterwards, except by breach of this Agreement by a party or its employees or agents; (b) a party can establish by reasonable proof was in that party's possession at the time of initial disclosure; (c) a party receives from a third party who has a right to disclose it to the receiving party; or (d) is the subject of a legitimate disclosure request under the open records laws or similar applicable public disclosure laws governing this Agreement; provided, however, that in the event you receive an open records or other similar applicable request, you will give us prompt notice and otherwise perform the functions required by applicable law. 18. Business License. In the event a local business license is required for us to perform services hereunder, you will promptly notify us and provide us with the necessary paperwork and/or contact information so that we may timely obtain such license. 19. Governing Law. This Agreement will be governed by and construed in accordance with the laws of your state of domicile, without regard to its rules on conflicts of law. 20. Multiple Originals and Authorized Signatures. This Agreement may be executed in multiple originals, any of which will be independently treated as an original document. Any electronic, faxed, scanned, photocopied, or similarly reproduced signature on this Agreement or any amendment hereto will be deemed an original signature and will be fully enforceable as if an original signature. Each party represents to the other that the signatory set forth below is duly authorized to bind that party to this Agreement. 21. Cooperative Procurement. To the maximum extent permitted by applicable law, we agree that this Agreement may be used as a cooperative procurement vehicle by eligible jurisdictions. We reserve the right to negotiate and customize the terms and conditions set forth herein, including but not limited to pricing, to the scope and circumstances of that cooperative procurement. 22. Contract Documents. This Agreement includes the following exhibits: 18.e Packet Pg. 489 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 12 Exhibit A Investment Summary Exhibit B Invoicing and Payment Policy Schedule 1: Business Travel Policy Exhibit C Maintenance and Support Agreement Schedule 1: Support Call Process IN WITNESS WHEREOF, a duly authorized representative of each party has executed this Agreement as of the date(s) set forth below. Tyler Technologies, Inc. City of San Bernardino By: By: Name: Name: Title: Title: Date: Date: Address for Notices: Address for Notices: Tyler Technologies, Inc. City of San Bernardino One Tyler Drive 300 North D Street Yarmouth, ME 04096 San Bernardino, CA 92418 Attention: Chief Legal Officer Attention: ______________________________ 18.e Packet Pg. 490 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit A 1 Exhibit A Investment Summary The following Investment Summary details the software, products, and services to be delivered by us to you under the Agreement. This Investment Summary is effective as of the Effective Date. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 18.e Packet Pg. 491 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, 137095 4/22/2020 San Bernardino, CA City San Bernardino, CA Attn: June Yotsuya 300 North D Street San Bernardino, CA 92418 United States Attn : June Yotsuya Company Agreement ID : Order No.Date Page San Bernardino, CA City San Bernardino, CA Attn: June Yotsuya 300 North D Street San Bernardino, CA 92418 United States Attn: June Yotsuya Order Type : Sales Order Status : Open Hold Status : N Company : 045 Territory : 031 045 Customer No Customer PO # Payment Terms Ship Via Sales Person 50197 Net 45 MISC HOUSE Ship To :Bill To : Sales Order Acknowledgement 1 of 4 ProcessSeqMntSKU Code/ Description/Comments PSA Linked Status Cancellation Date StatusSSP O/Ride DR User Start Date DR Templ Code DR Hold TotalDisc %RateUsersUnits DR User End Date SSP O/Ride Amt SSP Category Tax NWERPUL2SL-M 1,735.00 1.00New Sale 1 1N 0% 1,735.00 N RATABLE 07/01/2020 06/30/2021 Y $1,735.00 OpenY SUPPORT & UPDATE LICENSING - User License to Site License NWERPFMA-M 43,195.00 1.00New Sale 1 2N 0% 43,195.00 N RATABLE 07/01/2020 06/30/2021 Y $43,195.00 OpenY SUPPORT & UPDATE LICENSING - FM Base Suite NWERPBR-M 5,200.00 1.00New Sale 1 3N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - Bank Rec NWERPMISCBR-M 5,200.00 1.00New Sale 1 4N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - Misc. Billing & Receivables NWERPPURCHASING- M 5,200.00 1.00New Sale 1 5N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - PURCHASING NWERPREQ-M 5,200.00 1.00New Sale 1 6N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - REQUISITIONS NWERPPROJA-M 5,200.00 1.00New Sale 1 7N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - Project Accounting NWERPGA-M 5,200.00 1.00New Sale 1 8N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - Grant Management NWERPBM-M 5,200.00 1.00New Sale 1 9N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - BID & QUOTE MANAGEMENT NWERPINV-M 5,200.00 1.00New Sale 1 10N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - INVENTORY NWERPCM-M 5,200.00 1.00New Sale 1 11N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - CONTRACT ACCOUNTING NWERP3PR-M 5,200.00 1.00New Sale 1 12N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - THIRD PARTY RECEIVABLES NWERPGASB-M 5,200.00 1.00New Sale 1 13N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - GASB Reporting 18.e Packet Pg. 492 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to 137095 4/22/2020 San Bernardino, CA City San Bernardino, CA Attn: June Yotsuya 300 North D Street San Bernardino, CA 92418 United States Attn : June Yotsuya Company Agreement ID : Order No.Date Page San Bernardino, CA City San Bernardino, CA Attn: June Yotsuya 300 North D Street San Bernardino, CA 92418 United States Attn: June Yotsuya Order Type : Sales Order Status : Open Hold Status : N Company : 045 Territory : 031 045 Customer No Customer PO # Payment Terms Ship Via Sales Person 50197 Net 45 MISC HOUSE Ship To :Bill To : Sales Order Acknowledgement 2 of 4 ProcessSeqMntSKU Code/ Description/Comments PSA Linked Status Cancellation Date StatusSSP O/Ride DR User Start Date DR Templ Code DR Hold TotalDisc %RateUsersUnits DR User End Date SSP O/Ride Amt SSP Category Tax NWERPFA-M 5,200.00 1.00New Sale 1 14N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - Asset Management NWERPHRA-M 5,040.00 1.00New Sale 1 15N 0% 5,040.00 N RATABLE 07/01/2020 06/30/2021 Y $5,040.00 OpenY SUPPORT & UPDATE LICENSING - HR Base Suite NWERPSSEBA-M 864.00 1.00New Sale 1 16N 0% 864.00 N RATABLE 07/01/2020 06/30/2021 Y $864.00 OpenY SUPPORT & UPDATE LICENSING - Benefits Admin NWERPEPERS-M 792.00 1.00New Sale 1 17N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - Personnel Action Processing NWERPPB-M 792.00 1.00New Sale 1 18N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - Position Budgeting NWERPTA-M 360.00 1.00New Sale 1 19N 0% 360.00 N RATABLE 07/01/2020 06/30/2021 Y $360.00 OpenY SUPPORT & UPDATE LICENSING - TIME AND ATTENDANCE INTERFACE NWERPAT-M 792.00 1.00New Sale 1 20N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - APPLICANT TRACKING NWERPERT-M 792.00 1.00New Sale 1 21N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - EMPLOYEE RETIREMENT TRACKING NWERPEET-M 792.00 1.00New Sale 1 22N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - EMPLOYEE EVENT TRACKING NWERPCBA-M 792.00 1.00New Sale 1 23N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - COBRA BILLING ADMINISTRATION NWERPWCA-M 792.00 1.00New Sale 1 24N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - WORKERS COMPENSATION ADMIN NWERPBT-M 792.00 1.00New Sale 1 25N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - BENEFITS TRACKING (NON-EMPLOYEE) NWERPPERMIT-M 594.00 1.00New Sale 1 26N 0% 594.00 N RATABLE 07/01/2020 06/30/2021 Y $594.00 OpenY SUPPORT & UPDATE LICENSING - PERMITS NWERPCE-M 396.00 1.00New Sale 1 27N 0% 396.00 N RATABLE 07/01/2020 06/30/2021 Y $396.00 OpenY 18.e Packet Pg. 493 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to 137095 4/22/2020 San Bernardino, CA City San Bernardino, CA Attn: June Yotsuya 300 North D Street San Bernardino, CA 92418 United States Attn : June Yotsuya Company Agreement ID : Order No.Date Page San Bernardino, CA City San Bernardino, CA Attn: June Yotsuya 300 North D Street San Bernardino, CA 92418 United States Attn: June Yotsuya Order Type : Sales Order Status : Open Hold Status : N Company : 045 Territory : 031 045 Customer No Customer PO # Payment Terms Ship Via Sales Person 50197 Net 45 MISC HOUSE Ship To :Bill To : Sales Order Acknowledgement 3 of 4 ProcessSeqMntSKU Code/ Description/Comments PSA Linked Status Cancellation Date StatusSSP O/Ride DR User Start Date DR Templ Code DR Hold TotalDisc %RateUsersUnits DR User End Date SSP O/Ride Amt SSP Category Tax SUPPORT & UPDATE LICENSING - CODE ENFORCEMENT NWERPRST-M 396.00 1.00New Sale 1 28N 0% 396.00 N RATABLE 07/01/2020 06/30/2021 Y $396.00 OpenY SUPPORT & UPDATE LICENSING - REQUEST FOR SERVICES TRACKING NWERPBL-M 792.00 1.00New Sale 1 29N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - Business Licensing NWERPMI-M 792.00 1.00New Sale 1 30N 0% 792.00 N RATABLE 07/01/2020 06/30/2021 Y $792.00 OpenY SUPPORT & UPDATE LICENSING - MUNICIPAL INSPECTIONS NWERPPMS-M 477.00 1.00New Sale 1 31N 0% 477.00 N RATABLE 07/01/2020 06/30/2021 Y $477.00 OpenY SUPPORT & UPDATE LICENSING - PARCEL MANAGEMENT NWERPCGISI-M 180.00 1.00New Sale 1 32N 0% 180.00 N RATABLE 07/01/2020 06/30/2021 Y $180.00 OpenY SUPPORT & UPDATE LICENSING - COMMUNITY GIS INTEGRATION NWERPPP-M 396.00 1.00New Sale 1 33N 0% 396.00 N RATABLE 07/01/2020 06/30/2021 Y $396.00 OpenY SUPPORT & UPDATE LICENSING - PROJECT PLANNING NWERPDSBD-M 5,200.00 1.00New Sale 1 34N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - DECISION SUPPORT BASE DATAMART NWERPFMA-M 5,200.00 1.00New Sale 1 35N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - FM ANALYTICS NWERPFMD-M 5,200.00 1.00New Sale 1 36N 0% 5,200.00 N RATABLE 07/01/2020 06/30/2021 Y $5,200.00 OpenY SUPPORT & UPDATE LICENSING - FM DASHBOARDS NWERPHRA-M 234.00 1.00New Sale 1 37N 0% 234.00 N RATABLE 07/01/2020 06/30/2021 Y $234.00 OpenY SUPPORT & UPDATE LICENSING - HR ANALYTICS NWERPHRD-M 477.00 1.00New Sale 1 38N 0% 477.00 N RATABLE 07/01/2020 06/30/2021 Y $477.00 OpenY SUPPORT & UPDATE LICENSING - HR DASHBOARDS NWERPCDA-M 198.00 1.00New Sale 1 39N 0% 198.00 N RATABLE 07/01/2020 06/30/2021 Y $198.00 OpenY SUPPORT & UPDATE LICENSING - CD ANALYTICS NWERPCDD-M 378.00 1.00New Sale 1 40N 0% 378.00 N RATABLE 07/01/2020 06/30/2021 Y $378.00 OpenY SUPPORT & UPDATE LICENSING - CD DASHBOARD 18.e Packet Pg. 494 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to 137095 4/22/2020 San Bernardino, CA City San Bernardino, CA Attn: June Yotsuya 300 North D Street San Bernardino, CA 92418 United States Attn : June Yotsuya Company Agreement ID : Order No.Date Page San Bernardino, CA City San Bernardino, CA Attn: June Yotsuya 300 North D Street San Bernardino, CA 92418 United States Attn: June Yotsuya Order Type : Sales Order Status : Open Hold Status : N Company : 045 Territory : 031 045 Customer No Customer PO # Payment Terms Ship Via Sales Person 50197 Net 45 MISC HOUSE Ship To :Bill To : Sales Order Acknowledgement 4 of 4 ProcessSeqMntSKU Code/ Description/Comments PSA Linked Status Cancellation Date StatusSSP O/Ride DR User Start Date DR Templ Code DR Hold TotalDisc %RateUsersUnits DR User End Date SSP O/Ride Amt SSP Category Tax NWERPESUITE-M 4,800.00 1.00New Sale 1 41N 0% 4,800.00 N RATABLE 07/01/2020 06/30/2021 Y $4,800.00 OpenY SUPPORT & UPDATE LICENSING - eSUITE BASE (Payments) NWERPSSEP-M 4,800.00 1.00New Sale 1 42N 0% 4,800.00 N RATABLE 07/01/2020 06/30/2021 Y $4,800.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE ePayments NWERPSSES-M 4,800.00 1.00New Sale 1 43N 0% 4,800.00 N RATABLE 07/01/2020 06/30/2021 Y $4,800.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eSupplier NWERPSSEBID-M 4,800.00 1.00New Sale 1 44N 0% 4,800.00 N RATABLE 07/01/2020 06/30/2021 Y $4,800.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eBid NWERPSSEMB-M 4,800.00 1.00New Sale 1 45N 0% 4,800.00 N RATABLE 07/01/2020 06/30/2021 Y $4,800.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eMisc Billing NWERPSSEBA-M 1,224.00 1.00New Sale 1 46N 0% 1,224.00 N RATABLE 07/01/2020 06/30/2021 Y $1,224.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eBenefits Admin NWERPSSET-M 954.00 1.00New Sale 1 47N 0% 954.00 N RATABLE 07/01/2020 06/30/2021 Y $954.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eTimesheets NWERPSSEE-M 720.00 1.00New Sale 1 48N 0% 720.00 N RATABLE 07/01/2020 06/30/2021 Y $720.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eEmployee NWERPSSERECRUIT- M 720.00 1.00New Sale 1 49N 0% 720.00 N RATABLE 07/01/2020 06/30/2021 Y $720.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eRecruit NWERPSSEPERMIT-M 396.00 1.00New Sale 1 50N 0% 396.00 N RATABLE 07/01/2020 06/30/2021 Y $396.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE ePermits NWERPSSELIC-M 558.00 1.00New Sale 1 51N 0% 558.00 N RATABLE 07/01/2020 06/30/2021 Y $558.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eLicense NWERPSSEREQ-M 558.00 1.00New Sale 1 52N 0% 558.00 N RATABLE 07/01/2020 06/30/2021 Y $558.00 OpenY SUPPORT & UPDATE LICENSING - SELF SERVICE eRequests Tax : 0.00 Order Total: 169,970.00Currency Code : USD 18.e Packet Pg. 495 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Exhibit B 1 Exhibit B Invoicing and Payment Policy We will provide you with the software and services set forth in the Investment Summary. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. Invoicing: We will invoice you for the applicable license and services fees in the Investment Summary as set forth below. Your rights to dispute any invoice are set forth in the Agreement. 1. Tyler Software. 1.1 Maintenance and Support Fees: Maintenance and support fees for the period July 1, 2020 through June 30, 2021 are due prior to July 1, 2020. Subsequent maintenance and support fees are invoiced annually in advance of each July 1. Your fees for each subsequent year will be set at our then-current rates. 2. Expenses. The service rates in the Investment Summary do not include travel expenses. Expenses for Tyler delivered services will be billed as incurred and only in accordance with our then-current Business Travel Policy, plus a 10% travel agency processing fee. Our current Business Travel Policy is attached to this Exhibit B at Schedule 1. Copies of receipts will be provided upon request; we reserve the right to charge you an administrative fee depending on the extent of your requests. Receipts for miscellaneous items less than twenty-five dollars and mileage logs are not available. Payment. Payment for undisputed invoices is due within forty-five (45) days of the invoice date. We prefer to receive payments electronically. Our electronic payment information is: Bank: Wells Fargo Bank, N.A. 420 Montgomery San Francisco, CA 94104 ABA: 121000248 Account: 4124302472 Beneficiary: Tyler Technologies, Inc. – Operating 18.e Packet Pg. 496 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit B Schedule 1 1 Exhibit B Schedule 1 Business Travel Policy 1. Air Travel A. Reservations & Tickets The Travel Management Company (TMC) used by Tyler will provide an employee with a direct flight within two hours before or after the requested departure time, assuming that flight does not add more than three hours to the employee’s total trip duration and the fare is within $100 (each way) of the lowest logical fare. If a net savings of $200 or more (each way) is possible through a connecting flight that is within two hours before or after the requested departure time and that does not add more than three hours to the employee’s total trip duration, the connecting flight should be accepted. Employees are encouraged to make advanced reservations to take full advantage of discount opportunities. Employees should use all reasonable efforts to make travel arrangements at least two (2) weeks in advance of commitments. A seven (7) day advance booking requirement is mandatory. When booking less than seven (7) days in advance, management approval will be required. Except in the case of international travel where a segment of continuous air travel is six (6) or more consecutive hours in length, only economy or coach class seating is reimbursable. Employees shall not be reimbursed for “Basic Economy Fares” because these fares are non-refundable and have many restrictions that outweigh the cost-savings. B. Baggage Fees Reimbursement of personal baggage charges are based on trip duration as follows: • Up to five (5) days = one (1) checked bag • Six (6) or more days = two (2) checked bags Baggage fees for sports equipment are not reimbursable. 18.e Packet Pg. 497 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit B Schedule 1 2 2. Ground Transportation A. Private Automobile Mileage Allowance – Business use of an employee’s private automobile will be reimbursed at the current IRS allowable rate, plus out of pocket costs for tolls and parking. Mileage will be calculated by using the employee's office as the starting and ending point, in compliance with IRS regulations. Employees who have been designated a home office should calculate miles from their home. B. Rental Car Employees are authorized to rent cars only in conjunction with air travel when cost, convenience, and the specific situation reasonably require their use. When renting a car for Tyler business, employees should select a “mid-size” or “intermediate” car. “Full” size cars may be rented when three or more employees are traveling together. Tyler carries leased vehicle coverage for business car rentals; except for employees traveling to Alaska and internationally (excluding Canada), additional insurance on the rental agreement should be declined. C. Public Transportation Taxi or airport limousine services may be considered when traveling in and around cities or to and from airports when less expensive means of transportation are unavailable or impractical. The actual fare plus a reasonable tip (15-18%) are reimbursable. In the case of a free hotel shuttle to the airport, tips are included in the per diem rates and will not be reimbursed separately. D. Parking & Tolls When parking at the airport, employees must use longer term parking areas that are measured in days as opposed to hours. Park and fly options located near some airports may also be used. For extended trips that would result in excessive parking charges, public transportation to/from the airport should be considered. Tolls will be reimbursed when receipts are presented. 3. Lodging Tyler’s TMC will select hotel chains that are well established, reasonable in price, and conveniently located in relation to the traveler's work assignment. Typical hotel chains include Courtyard, Fairfield Inn, Hampton Inn, and Holiday Inn Express. If the employee has a discount rate with a local hotel, the hotel reservation should note that discount and the employee should confirm the lower rate with the hotel upon arrival. Employee memberships in travel clubs such as AAA should be noted in their travel profiles so that the employee can take advantage of any lower club rates. “No shows” or cancellation fees are not reimbursable if the employee does not comply with the hotel’s cancellation policy. Tips for maids and other hotel staff are included in the per diem rate and are not reimbursed separately. 18.e Packet Pg. 498 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit B Schedule 1 3 Employees are not authorized to reserve non-traditional short-term lodging, such as Airbnb, VRBO, and HomeAway. Employees who elect to make such reservations shall not be reimbursed. 4. Meals and Incidental Expenses Employee meals and incidental expenses while on travel status within the continental U.S. are in accordance with the federal per diem rates published by the General Services Administration. Incidental expenses include tips to maids, hotel staff, and shuttle drivers and other minor travel expenses. Per diem rates are available at www.gsa.gov/perdiem. Per diem for Alaska, Hawaii, U.S. protectorates and international destinations are provided separately by the Department of State and will be determined as required. A. Overnight Travel For each full day of travel, all three meals are reimbursable. Per diems on the first and last day of a trip are governed as set forth below. Departure Day Depart before 12:00 noon Lunch and dinner Depart after 12:00 noon Return Day Dinner Return before 12:00 noon Breakfast Return between 12:00 noon & 7:00 p.m. Breakfast and lunch Return after 7:00 p.m.* Breakfast, lunch and dinner *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. The reimbursement rates for individual meals are calculated as a percentage of the full day per diem as follows: Breakfast 15% Lunch 25% Dinner 60% B. Same Day Travel Employees traveling at least 100 miles to a site and returning in the same day are eligible to claim lunch on an expense report. Employees on same day travel status are eligible to claim dinner in the event they return home after 7:00 p.m.* *7:00 p.m. is defined as direct travel time and does not include time taken to stop for dinner. 18.e Packet Pg. 499 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit B Schedule 1 4 5. Internet Access – Hotels and Airports Employees who travel may need to access their e-mail at night. Many hotels provide free high speed internet access and Tyler employees are encouraged to use such hotels whenever possible. If an employee’s hotel charges for internet access it is reimbursable up to $10.00 per day. Charges for internet access at airports are not reimbursable. 6. International Travel All international flights with the exception of flights between the U.S. and Canada should be reserved through TMC using the “lowest practical coach fare” with the exception of flights that are six (6) or more consecutive hours in length. In such event, the next available seating class above coach shall be reimbursed. When required to travel internationally for business, employees shall be reimbursed for photo fees, application fees, and execution fees when obtaining a new passport book, but fees related to passport renewals are not reimbursable. Visa application and legal fees, entry taxes and departure taxes are reimbursable. The cost of vaccinations that are either required for travel to specific countries or suggested by the U.S. Department of Health & Human Services for travel to specific countries, is reimbursable. Section 4, Meals & Incidental Expenses, and Section 2.b., Rental Car, shall apply to this section. 18.e Packet Pg. 500 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit C 1 Exhibit C Maintenance and Support Agreement We will provide you with the following maintenance and support services for the Tyler Software. Capitalized terms not otherwise defined will have the meaning assigned to such terms in the Agreement. 1. Term. We provide maintenance and support services on an annual basis. The initial term commences on July 1, 2020, and remains in effect for one (1) year. The term will renew automatically for additional one (1) year terms unless terminated in writing by either party at least thirty (30) days prior to the end of the then-current term. We will adjust the term to match your first use of the Tyler Software in live production if that event precedes the one (1) year anniversary of the Effective Date. 2. Maintenance and Support Fees. Your year 1 maintenance and support fees for the Tyler Software are listed in the Investment Summary, and your payment obligations are set forth in the Invoicing and Payment Policy. We reserve the right to suspend maintenance and support services if you fail to pay undisputed maintenance and support fees within thirty (30) days of our written notice. We will reinstate maintenance and support services only if you pay all past due maintenance and support fees, including all fees for the periods during which services were suspended. 3. Maintenance and Support Services. As long as you are not using the Help Desk as a substitute for our training services on the Tyler Software, and you timely pay your maintenance and support fees, we will, consistent with our then-current Support Call Process: 3.1 perform our maintenance and support obligations in a professional, good, and workmanlike manner, consistent with industry standards, to resolve Defects in the Tyler Software (limited to the then-current version and the immediately prior version); provided, however, that if you modify the Tyler Software without our consent, our obligation to provide maintenance and support services on and warrant the Tyler Software will be void; 3.2 provide telephone support during our established support hours; 3.3 maintain personnel that are sufficiently trained to be familiar with the Tyler Software and Third Party Software, if any, in order to provide maintenance and support services; 3.4 provide you with a copy of all major and minor releases to the Tyler Software (including updates and enhancements) that we make generally available without additional charge to customers who have a maintenance and support agreement in effect; and 3.5 provide non-Defect resolution support of prior releases of the Tyler Software in accordance with our then-current release life cycle policy. 18.e Packet Pg. 501 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit C 2 4. Client Responsibilities. We will use all reasonable efforts to perform any maintenance and support services remotely. Currently, we use a third-party secure unattended connectivity tool called Bomgar, as well as GotoAssist by Citrix. Therefore, you agree to maintain a high-speed internet connection capable of connecting us to your PCs and server(s). You agree to provide us with a login account and local administrative privileges as we may reasonably require to perform remote services. We will, at our option, use the secure connection to assist with proper diagnosis and resolution, subject to any reasonably applicable security protocols. If we cannot resolve a support issue remotely, we may be required to provide onsite services. In such event, we will be responsible for our travel expenses, unless it is determined that the reason onsite support was required was a reason outside our control. Either way, you agree to provide us with full and free access to the Tyler Software, working space, adequate facilities within a reasonable distance from the equipment, and use of machines, attachments, features, or other equipment reasonably necessary for us to provide the maintenance and support services, all at no charge to us. We strongly recommend that you also maintain a VPN for backup connectivity purposes. 5. Hardware and Other Systems. If you are a self-hosted customer and, in the process of diagnosing a software support issue, it is discovered that one of your peripheral systems or other software is the cause of the issue, we will notify you so that you may contact the support agency for that peripheral system. We cannot support or maintain Third Party Products except as expressly set forth in the Agreement. In order for us to provide the highest level of software support, you bear the following responsibility related to hardware and software: (a) All infrastructure executing Tyler Software shall be managed by you; (b) You will maintain support contracts for all non-Tyler software associated with Tyler Software (including operating systems and database management systems, but excluding Third-Party Software, if any); and (c) You will perform daily database backups and verify that those backups are successful. 6. Other Excluded Services. Maintenance and support fees do not include fees for the following services: (a) initial installation or implementation of the Tyler Software; (b) onsite maintenance and support (unless Tyler cannot remotely correct a Defect in the Tyler Software, as set forth above); (c) application design; (d) other consulting services; (e) maintenance and support of an operating system or hardware, unless you are a hosted customer; (f) support outside our normal business hours as listed in our then-current Support Call Process; or (g) installation, training services, or third party product costs related to a new release. Requested maintenance and support services such as those outlined in this section will be billed to you on a time and materials basis at our then current rates. You must request those services with at least one (1) weeks’ advance notice. 7. Current Support Call Process. Our current Support Call Process for the Tyler Software is attached to this Exhibit C at Schedule 1. 18.e Packet Pg. 502 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit C Schedule 1 1 Exhibit C Schedule 1 Support Call Process Support Channels Tyler Technologies, Inc. provides the following channels of software support: (1) Tyler Community – an on-line resource, Tyler Community provides a venue for all Tyler clients with current maintenance agreements to collaborate with one another, share best practices and resources, and access documentation. (2) On-line submission (portal) – for less urgent and functionality-based questions, users may create unlimited support incidents through the customer relationship management portal available at the Tyler Technologies website. (3) Email – for less urgent situations, users may submit unlimited emails directly to the software support group. (4) Telephone – for urgent or complex questions, users receive toll-free, unlimited telephone software support. Support Resources A number of additional resources are available to provide a comprehensive and complete support experience: (1) Tyler Website – www.tylertech.com – for accessing client tools and other information including support contact information. (2) Tyler Community – available through login, Tyler Community provides a venue for clients to support one another and share best practices and resources. (3) Knowledgebase – A fully searchable depository of thousands of documents related to procedures, best practices, release information, and job aides. (4) Program Updates – where development activity is made available for client consumption Support Availability Tyler Technologies support is available during the local business hours of 8 AM to 5 PM (Monday – Friday) across four US time zones (Pacific, Mountain, Central and Eastern). Clients may receive coverage across these time zones. Tyler’s holiday schedule is outlined below. There will be no support coverage on these days. New Year’s Day Thanksgiving Day Memorial Day Day after Thanksgiving Independence Day Christmas Day Labor Day 18.e Packet Pg. 503 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit C Schedule 1 2 Issue Handling Incident Tracking Every support incident is logged into Tyler’s Customer Relationship Management System and given a unique incident number. This system tracks the history of each incident. The incident tracking number is used to track and reference open issues when clients contact support. Clients may track incidents, using the incident number, through the portal at Tyler’s website or by calling software support directly. Incident Priority Each incident is assigned a priority number, which corresponds to the client’s needs and deadlines. The client is responsible for reasonably setting the priority of the incident per the chart below. This chart is not intended to address every type of support incident, and certain “characteristics” may or may not apply depending on whether the Tyler software has been deployed on customer infrastructure or the Tyler cloud. The goal is to help guide the client towards clearly understanding and communicating the importance of the issue and to describe generally expected responses and resolutions. Priority Level Characteristics of Support Incident Resolution Targets 1 Critical Support incident that causes (a) complete application failure or application unavailability; (b) application failure or unavailability in one or more of the client’s remote location; or (c) systemic loss of multiple essential system functions. Tyler shall provide an initial response to Priority Level 1 incidents within one (1) business hour of receipt of the support incident. Tyler shall use commercially reasonable efforts to resolve such support incidents or provide a circumvention procedure within one (1) business day. For non-hosted customers, Tyler’s responsibility for lost or corrupted data is limited to assisting the client in restoring its last available database. 2 High Support incident that causes (a) repeated, consistent failure of essential functionality affecting more than one user or (b) loss or corruption of data. Tyler shall provide an initial response to Priority Level 2 incidents within four (4) business hours of receipt of the support incident. Tyler shall use commercially reasonable efforts to resolve such support incidents or provide a circumvention procedure within ten (10) business days. For non-hosted customers, Tyler’s responsibility for loss or corrupted data is limited to assisting the client in restoring its last available database. 3 Medium Priority Level 1 incident with an existing circumvention procedure, or a Priority Level 2 incident that affects only one user or for which there is an existing circumvention procedure. Tyler shall provide an initial response to Priority Level 3 incidents within one (1) business day of receipt of the support incident. Tyler shall use commercially reasonable efforts to resolve such support incidents without the need for a circumvention procedure with the next published maintenance update or service pack. For non-hosted customers, Tyler’s responsibility for lost or corrupted data is limited to assisting the client in restoring its last available database. 18.e Packet Pg. 504 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Exhibit C Schedule 1 3 Priority Level Characteristics of Support Incident Resolution Targets 4 Non- critical Support incident that causes failure of non-essential functionality or a cosmetic or other issue that does not qualify as any other Priority Level. Tyler shall provide an initial response to Priority Level 4 incidents within two (2) business days. Tyler shall use commercially reasonable efforts to resolve such support incidents, as well as cosmetic issues, with a future version release. Incident Escalation Tyler Technology’s software support consists of four levels of personnel: (1) Level 1: front-line representatives (2) Level 2: more senior in their support role, they assist front-line representatives and take on escalated issues (3) Level 3: assist in incident escalations and specialized client issues (4) Level 4: responsible for the management of support teams for either a single product or a product group If a client feels they are not receiving the service needed, they may contact the appropriate Software Support Manager. After receiving the incident tracking number, the manager will follow up on the open issue and determine the necessary action to meet the client’s needs. On occasion, the priority or immediacy of a software support incident may change after initiation. Tyler encourages clients to communicate the level of urgency or priority of software support issues so that we can respond appropriately. A software support incident can be escalated by any of the following methods: (1) Telephone – for immediate response, call toll-free to either escalate an incident’s priority or to escalate an issue through management channels as described above. (2) Email – clients can send an email to software support in order to escalate the priority of an issue (3) On-line Support Incident Portal – clients can also escalate the priority of an issue by logging into the client incident portal and referencing the appropriate incident tracking number. Remote Support Tool Some support calls require further analysis of the client’s database, process or setup to diagnose a problem or to assist with a question. Tyler will, at its discretion, use an industry-standard remote support tool. Support is able to quickly connect to the client’s desktop and view the site’s setup, diagnose problems, or assist with screen navigation. More information about the remote support tool Tyler uses is available upon request. 18.e Packet Pg. 505 Attachment: IT.annual software renewals FY2020-2021 - ap4-tyler-finance (6782 : Resolution to Approve the FY 2020/21 Annual Usage, Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Community & Economic Development Director Subject: Amendment No. 2 to Professional Services Agreement Recommendation Adopt Resolution 2020-138 of the Mayor and City Council of the City of San Bernardino, California, authorizing the execution of Amendment No. 2 to Professional Services Agreement for accounting consultant services between the City of San Bernardino and Annie Clark, in an amount not to exceed $92,200; and authorize the City Manager or designee to take any further actions as necessary to effectuate the agreement. Background The City’s consultant, Ms. Annie Clark, began consulting with the City of San Bernardino (City) in January 2016. She provides finance services to the Housing Division with a primary focus on fiscal administration of the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), Neighborhood Stabilization Programs (NSG), HOME Investment Partnerships Program and the Low/Mod Housing Fund. The Housing Division has regained fiscal stability with the assistance of Ms. Clark and she has made excellent progress a t clearing many of the audit findings noted by the auditors, relative to various federal grant programs the City receives. Additionally, Ms. Clark acts in the capacity of a grant liaison between the City’s Finance Department, City Manager’s Office, the Library, Parks, Recreation & Community Services, the Police Department and Public Works. The City has a continuing need in its various grant programs that will greatly benefit from Ms. Clark’s expertise. Discussion Ms. Clark has been instrumental in providing the required accounting assistance that has enabled the City to make substantial progress in improving the fiscal administration of the HUD related grant programs noted above. There are also many other grant programs that greatly benefit from her significant experience in working with the myriad of special requirements that grant funds require for their acceptance and ongoing management. Ms. Clark is exceptionally qualified to assist in the accounting, reporting and financial management of HUD-related funding sources, state-funded grants, police grants and social service grants such as the Senior Nutrition Program. Her current contract will conclude on June 30, 2020. Amendment No. 2 will allow both the Community & Economic Development and Finance D epartments to continue to 19 Packet Pg. 506 6739 Page 2 utilize her services. Staff’s proposal is to devote 70% of Ms. Clark’s time to the Housing Division and 30% to the Finance Department, in order to accommodate a broader focus on citywide grants administration. Utilizing Ms. Clark’s expertise during FY 2020/21 will result in continuity of the ongoing work with the audit clean up and the grant programs. 2020-2025 Key Strategic Targets and Goals The proposed consultant services agreement aligns with Key Target No. 1: Financial Stability. Retaining Ms. Clark’s accounting consulting services will allow for continued effective management and reporting of grants received by the City. Fiscal Impact The total cost of Ms. Clark’s services from July 1, 2020 to June 30, 2021 will not exce ed $92,200. Sufficient resources have been included in the FY 2020/21 Proposed Budget to fund the agreement; funding will be allocated 70% from CDBG (Community & Economic Development account 119-180-2002*5502) and 30% from the General Fund (Finance account 001-120-0039*5502). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution 2020-138, authorizing the execution of Amendment No. 2 to Professional Services Agreement for accounting consultant services between the City of San Bernardino and Annie Clark, in an amount not to exceed $92,200; and authorizing the City Manager or designee to take any further actions as necessary to effectuate the agreement. Attachments Attachment 1 Resolution 2020-138; Exhibit “A” - Amendment No. 2 to the PSA between the City of San Bernardino and Annie Clark Dated July 1, 2020 Attachment 2 Executed 2018 Professional Services Agreement Attachment 3 Amendment No. 1 to Professional Services Agreement Ward: All Synopsis of Previous Council Actions: March 7, 2017 Resolution No. 2017-28 Mayor and City Council authorized the first amendment to the Professional Services Agreement with Ms. Clark in an amount not to exceed $84,000. June 21, 2017 Resolution No. 2017-110 Mayor and City Council authorized the second amendment to the Professional Services Agreement with Ms. Clark for accounting consultant services not to exceed $90,000. June 6, 2018 Resolution No. 2018-144 Mayor and City Council authorized a new Professional Services Agreement with Ms. Clark in an amount not to exceed $88,000. 19 Packet Pg. 507 6739 Page 3 May 1, 2019 Mayor and City Council authorized the execution of Amendment No. 1 to Professional Services Agreement with Ms. Clark in an amount to exceed $91,200. 19 Packet Pg. 508 RESOLUTION NO. 2020-138 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ANNIE CLARK FOR ACCOUNTING CONSULTANT SERVICES WHEREAS, on March 7, 2017, at the direction of the Mayor and City Council, the City Manager executed the first amendment to the Professional Services Agreement between the City of San Bernardino and Annie Clark in an amount no to exceed $84,000 for accounting consultant services; and WHEREAS, on June 21, 2017, at the direction of the Mayor and City Council, the City Manager executed the second amendment to the Professional Services Agreement between the City of San Bernardino and Annie Clark in an amount no to exceed $90,000 for accounting consultant services; and WHEREAS, on June 6, 2018, at the direction of the Mayor and City council, the City Manager executed a new Professional Services Agreement with Annie Clark in an amount not to exceed $88,000 ; and WHEREAS, on May 1, 2019, at the direction of the Mayor and City council, the City Manager executed the first amendment to the Professional Services Agreement between the City of San Bernardino and Annie Clark in an amount no to exceed $91,200 for accounting consultant services; and WHEREAS, there is a continued need for accounting consulting services relative to the grans management and accounting functions performed by Annie Clark. 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 Second Amendment to the Professional Services Agreement with Annie Clark and take any further actions as necessary to effectuate the agreement attached to this Resolution as Exhibit A. 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. 19.a Packet Pg. 509 Attachment: CED.PSA with Annie Clark.Attachment 2.Resolution (6739 : Amendment No. 2 to Professional Services Agreement) Resolution No. 2020-138 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 Acting City Clerk this 17th day of June 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: ____________________________________ Sonia Carvalho, City Attorney 19.a Packet Pg. 510 Attachment: CED.PSA with Annie Clark.Attachment 2.Resolution (6739 : Amendment No. 2 to Professional Services Agreement) CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-138, adopted at a regular meeting held on the 17th day of June 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this 17th day of June 2020. Genoveva Rocha, CMC, Acting City Clerk 19.a Packet Pg. 511 Attachment: CED.PSA with Annie Clark.Attachment 2.Resolution (6739 : Amendment No. 2 to Professional Services Agreement) 1 AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF SAN BERNARDINO AND ANNIE CLARK This Amendment No. 2 to the Professional Services Agreement (“Second Amendment”) is made and entered into this ___ day of June 2020, (“Effective Date”) by and between the City of San Bernardino (“City”) and Annie Clark (“Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties.” RECITALS WHEREAS, the City and Consultant entered into a Professional Services Agreement on June 6, 2018, setting forth the terms and conditions under which Consultant would perform professional consulting services for the City (“Agreement”); and WHEREAS, on July 1, 2019 the Parties extended the term of the Agreement to June 30, 2020 and modified the Consultant’s compensation to $87,500 (“First Amendment”); and WHEREAS, now the Parties wish to extend the term of the Agreement, as amended by the First Amendment, to June 30, 2021 to increase Consultant’s total compensation to $91,200. TERMS 1. Section 1.9. A new Section 1.9 is added to the Agreement to read as follows: 1.9 Insurance. Consultant shall not commence work for the City until Consultant has provided evidence satisfactory to the City and has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until subcontractor 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 the 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: 19.b Packet Pg. 512 Attachment: CED.PSA Amendment No. 2 with Annie Clark.Attachment 1 (6739 : Amendment No. 2 to Professional Services Agreement) 2 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 the 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. (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 the 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). 19.b Packet Pg. 513 Attachment: CED.PSA Amendment No. 2 with Annie Clark.Attachment 1 (6739 : Amendment No. 2 to Professional Services Agreement) 3 (iii) The policy shall give the 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 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 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 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 19.b Packet Pg. 514 Attachment: CED.PSA Amendment No. 2 with Annie Clark.Attachment 1 (6739 : Amendment No. 2 to Professional Services Agreement) 4 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, 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 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, 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. (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 19.b Packet Pg. 515 Attachment: CED.PSA Amendment No. 2 with Annie Clark.Attachment 1 (6739 : Amendment No. 2 to Professional Services Agreement) 5 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 her 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 Consultant from liability in excess of such coverage, nor shall it limit 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 (1) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements: (2) 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 Consultant pursuant to this Agreement, including, but not limited to, the provisions concerning indemnification. (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, the 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 the City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, the City may cancel this Agreement. (iii) The City may require Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. 19.b Packet Pg. 516 Attachment: CED.PSA Amendment No. 2 with Annie Clark.Attachment 1 (6739 : Amendment No. 2 to Professional Services Agreement) 6 (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, the City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants. 2. Execution of Amendment. In accordance with Section 4.14 of the Agreement, this Second Amendment shall only be effective upon the execution by the City and Consultant. 3. Counterparts. This Second Amendment may be executed in counterparts. 4. Entire Agreement. This Second Amendment represents the entire understanding of the City and the Consultant as to those matters contained in this Second Amendment, and supersedes and cancels any prior oral or written understanding, promises or representatives with respect to those matters covered in this Second Amendment, and it shall not be amended, altered or changed except by a written agreement signed by the parties hereto. 5. Full Force and Effect. Except as amended by this Second Amendment, all other provisions of the Agreement, as amended by First Amendment, remain in full force and effect. From and after the date of this Second Amendment, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by the First Amendment and this Second Amendment. 6. Severability. If any provision of this Second Amendment shall be held invalid or unenforceable by a court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision of this Second Amendment unless elimination of such provision materially alters the rights and obligations set forth herein. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first written above. CITY ___________________________________ Teri Ledoux, City Manager CONSULTANT ___________________________________ Annie Clark 19.b Packet Pg. 517 Attachment: CED.PSA Amendment No. 2 with Annie Clark.Attachment 1 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 518 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 519 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 520 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 521 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 522 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 523 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 524 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 525 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 526 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 527 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.c Packet Pg. 528 Attachment: CED.Executed 2018 Agreement with Annie Clark.Attachment 3 (6739 : Amendment No. 2 to Professional Services Agreement) 19.d Packet Pg. 529 Attachment: CED.Amendment No.1.Attachment 4 (6739 : Amendment No. 2 to Professional Services Agreement) 19.d Packet Pg. 530 Attachment: CED.Amendment No.1.Attachment 4 (6739 : Amendment No. 2 to Professional Services Agreement) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Community & Economic Development Director Subject: Subordination of a Deed of Trust in Connection with 275 East 49TH Street, San Bernardino, California Recommendation Adopt a Resolution No. 2020-141 of the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino, approving a Subordination of a Deed of Trust in connection with refinancing the Senior Mortgage relating to real property located at 275 East 49th Street, San Bernardino, California. Background On October 17, 1994, the Community Development Commission of the City of San Bernardino (“Commission”) approved Resolution 5409, establishing the Mortgage Assistance Program, subsequently renamed the Homebuyer Assistance Program, which made available a limited number of deferred payment (principal and interest) second mortgages. This Program was designed to provide income -qualified families with down payment/closing cost monies necessary to secure financing towards the purchase of single-family detached homes in the City and provided an additional avenue for the former Redevelopment Agency of the City of San Bernardino (“Agency”) to ensure the availability of affordable housing to income -qualified home buyers in the community. On January 9, 2012, the Mayor and Common Council adopted Resolution 2012-12 confirming that the City of San Bernardino would serve as the “Successor Agency” to the former Agency, in accordance with AB1X 26. On January 23, 2012, the Mayor and City Council adopted Resolution 2012-19 further confirming that the City would serve as the “Successor Housing Agency” to the former Redevelopment Agency and perform the housing functions previously performed by the Agency. Discussion The Homebuyer Assistance Program allows program participants to refinance their mortgage only to lower the interest rate and/or term. Should the homeowner request to “cash out” the property’s equity, the subordination request would be denied and the Agency loan would become due. 20 Packet Pg. 531 6753 Page 2 The owner for the property located at 275 East 49th Street received down payment assistance and is now requesting to refinance their existing first mortgage. The owner of the property listed above has submitted a subordination request to Successor Housing Agency staff and the application has been reviewed and approved. To proceed with the refinancing, the new lender and title company require the Agency’s deed of trust to be expressly subordinated to the new first deed of trust. Therefore, staff requests that the City Manager, or her designee, be authorized to sign and cause to be recorded the subordination agreement and associated documents which will allow the property owner to refinance their first mortgage. 2020-2025 Key Strategic Targets and Goals Adoption of the attached resolution aligns with Key Strategic Target No. 3: Improved Quality of Life. Refinancing supports homeownership and sustains neighborhoods throughout the City. Fiscal Impact There is no fiscal impact to the General Fund since the staff processing the request i s funded by the Recognized Obligation Payment Scheduled (ROPS). Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino California, adopt a Resolution No. 2020-141, approving a Subordination of a Deed of Trust in connection with refinancing the Senior Mortgage relating to real property located at 275 East 49th Street, San Bernardino, California. Attachments Attachment 1 Resolution No. 2020-141 Attachment 2 Subordination Agreement for 275 East 49th Street Ward: 4th Ward Synopsis of Previous Council Actions: January 23, 2012 Mayor and City Council adopted Resolution 2012 -19 further confirming that the City would serve as the “Successor Housing Agency” to the former Redevelopment Agency and perform the housing functions previously performed by the Agency. 20 Packet Pg. 532 RESOLUTION NO. 2020-141 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO APPROVING THE SUBORDINATION OF A DEED OF TRUST IN CONNECTION WITH A REFINANCING OF THE SENIOR MORTGAGE RELATING TO REAL PROPERTY LOCATED AT 275 EAST 49TH STREET, SAN BERNARDINO, CALIFORNIA WHEREAS, on January 9, 2012, the Mayor and Common Council of the City of San Bernardino, California, (“Council”) adopted Resolution No. 2012-12 confirming that the City of San Bernardino would serve as the Successor Agency to the Redevelopment Agency (“Agency”) of the City of San Bernardino (“Successor Agency”) effective February 1, 2012, pursuant to AB1X 26 (The Redevelopment Agency Dissolution Act); and WHEREAS on January 23, 2012, the City Council adopted Resolution No. 2012-19 providing for the City to serve as the Successor Housing Agency and perform the housing functions previously performed by the Agency; and WHEREAS, pursuant to Health & Safety Code Section 34181(c) of AB1X26 the Oversight Board is to direct the transfer of housing responsibilities, including all rights, powers, duties, obligations and assets, to the Successor Housing Agency; and WHEREAS, pursuant to Health & Safety Code Section 34176(e)(1) of AB1484 the restrictions on the use of real property such as affordability covenants entered into by the Agency are considered a housing asset; and WHEREAS, a Deed of Trust affecting real property located at 275 East 49th Street, San Bernardino, California (“Property”) exists as of December 15, 2008, and recorded on January 30, 2009, as Instrument Number 2009-0042498 in the Official Records of the County of San Bernardino (“Deed of Trust”); and WHEREAS, the terms of the Deed of Trust allow the Trustor to obtain the release of the security interest of the First Mortgage Lender in the Property for the purpose of a third-party lender which refinances the purchase money mortgage of the First Mortgage Lender; and WHEREAS, an escrow has been opened on the Property affected by the Deed of Trust on which owner(s) (Curtis W. Philbert) request the subordination so that they can proceed on a refinance and a clear lenders title policy can be provided to the new lender of the Property; and WHEREAS, the Successor Housing Agency desires to confirm that the Deed of Trust is a housing asset and/or housing function, and desires to authorize Successor Housing Agency 20.a Packet Pg. 533 Attachment: CED.Subordination 275 E 49th Street-Resolution (6753 : Subordination of a Deed of Trust in Connection with 275 East 49TH Street, Resolution No. ___ staff to transfer all rights and interest in the Deed of Trust to the City in its capacity as the Successor Housing Agency; and WHEREAS, Successor Housing Agency staff desires to cause to be signed and recorded a subordination agreement for the purposes of causing the new third-party lender to have a security interest in the Property senior to that of the Successor Housing Agency; and BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, ACTING AS THE SUCCESSOR HOUSING AGENCY OF 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. SECTION 2. Pursuant to Health & Safety Code Section 34176, the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino does hereby find and determine that the Deed of Trust is a housing asset and hereby authorizes the City Manager or his/her designee, to execute the Subordination Agreement (attached and incorporated herein as Exhibit “A”) and do all such acts and things necessary to cause it to be recorded with the San Bernardino County Recorder. 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. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk 20.a Packet Pg. 534 Attachment: CED.Subordination 275 E 49th Street-Resolution (6753 : Subordination of a Deed of Trust in Connection with 275 East 49TH Street, Resolution No. ___ Approved as to form: Sonia Carvalho , City Attorney 20.a Packet Pg. 535 Attachment: CED.Subordination 275 E 49th Street-Resolution (6753 : Subordination of a Deed of Trust in Connection with 275 East 49TH Street, Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 20.a Packet Pg. 536 Attachment: CED.Subordination 275 E 49th Street-Resolution (6753 : Subordination of a Deed of Trust in Connection with 275 East 49TH Street, 1 When recorded mail to: City of San Bernardino, acting in its capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino 290 North D Street San Bernardino, CA 92401 Owner Name: Curtis W Philbert 275 East 49th Street San Bernardino, CA 92404 SPACE ABOVE THIS LINE FOR RECORDERS USE. Form of SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. This AGREEMENT, made this day of , 2020, by (Curtis W Philbert), Owner of the land hereinafter described and hereinafter referred to as "Owner," and the City of San Bernardino, acting in its capacity as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino , present owner and holder of the Deed of Trust and Note; WITNESSETH WHEREAS, Owner(s) did on December 15, 2008, execute a Deed of Trust to Fidelity National Title Company, a California Corporation, as trustee, covering: LEGAL DESCRIPTION: The land herein after referred to is situated in the City of San Bernardino, County of San Bernardino, State of California, and is described as follows: LOT 7 IN BLOCK 19 OF TRACT 1834, SAN BERNARDINO HEIGHTS, IN THE CITY OF SAN BERNARDINO, COUNTY, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 26, PAGE(S) 52, OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. to secure a Note in the sum of $67,500 dated December 15, 2008 in favor of the Redevelopment Agency of the City of San Bernardino first hereinafter described and hereinafter referred to as "Beneficiary", which Deed of Trust was recorded January 30, 2009, as Instrument No. 2009-0042498, Official Records of said county; WHEREAS, all rights and obligations of the Beneficiary have since been transferred to the City of San Bernardino as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino (“Successor Beneficiary”) pursuant to Mayor and Common Council Resolution No. 2012-19 dated January 23, 2012; WHEREAS, Owner has executed, or is about to execute, a Deed of Trust and Note in the sum of not to exceed $130,750, dated ________________________, in favor of Quicken Loans, LLC ISAOA , hereinafter referred to as “Lender,” payable with interest and upon the terms and conditions described therein, which Deed of Trust is to be recorded concurrently herewith; and 20.b Packet Pg. 537 Attachment: CED.Subordination 275 East 49th Street-Attachment 2 (6753 : Subordination of a Deed of Trust in Connection with 275 East 49TH 2 WHEREAS, it is a condition precedent to obtaining said loan that said Deed of Trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land herein before described, prior and superior to the lien or charge of the Deed of Trust first above mentioned; and WHEREAS, lender is willing to make said loan provided the Deed of Trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the Deed of Trust first above mentioned and provided that Successor Beneficiary will specifically and unconditionally subordinate the lien or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Successor Beneficiary is willing that the Deed of Trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the Deed of Trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: 1. That said Deed of Trust securing said Note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein d escribed, prior and superior to the lien or charge or the Deed of Trust first above mentioned. 2. That Lender would not make its loan above described without this Subordination Agreement. 3. That this Agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the Deed of Trust first above mentioned to the lien or charge of the Deed of Trust in favor of the lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the Deeds of Trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any, contained in the Deed of Trust first above mentioned, which provide for the subordination of the lien or charge thereof to another Deed or Deeds of Trust or to another mortgage or mortgages. Successor Beneficiary declares, agrees and acknowledges that: (a) Lender in making disbursements pursuant to any such agreement is under no obligation or duty t o, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (b) Successor Beneficiary intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the Deed of Trust first above mentioned in favor of the lien or charge upon said land of the Deed of Trust in favor of Lender above referred to and understands t hat in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be make and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (c) An endorsement has been placed upon the Note secured by the Deed of Trust first above mentioned that said Deed of Trust has by this i nstrument been subordinated to the lien or charge of the Deed of Trust in favor or Lender above referred to. 20.b Packet Pg. 538 Attachment: CED.Subordination 275 East 49th Street-Attachment 2 (6753 : Subordination of a Deed of Trust in Connection with 275 East 49TH 3 NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. City of San Bernardino, acting as the Successor Housing Agency to the Redevelopment Agency of the City of San Bernardino _____________________________________ ____________________________________ Teri Ledoux, City Manager Owner City of San Bernardino Owner (ALL SIGNATURES MUST BE ACKNOWLEDGED) IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO. 20.b Packet Pg. 539 Attachment: CED.Subordination 275 East 49th Street-Attachment 2 (6753 : Subordination of a Deed of Trust in Connection with 275 East 49TH Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Community & Economic Development Director Subject: Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20-01 Recommendation Adopt Resolution No. 2020-140 of the Mayor and City Council of the City of San Bernardino, California, to ratify and accept the San Bernardino County Fire Protection District’s (“District”) Ordinance No. FPD 20-01, which amends and adopts the 2019 Edition of the California Fire Code, known as California Code of Regulations, Title 24, Part 9, based on the 2018 Edition of the International Fire Code. Background As a result of LAFCO annexation proceedings, the District assumed control of the City of San Bernardino’s fire protection services, meaning that the City of San Bernardino (“City”) resides in the District’s jurisdiction. Every three years, the California Building Standards Commission publishes updated regulations in Part 9 of the California Code of Regulations, Title 24, which pertain to fire safe building standards. Local agencies are required to adopt the updated regulations, but may also m ake local amendments as necessary in the ordinance adopting these regulations. On December 4, 2019, the Mayor and City Council adopted the 2019 California Building Codes. The adoption of the California Fire Code by the City Council will complete the adop tion of all of the California Code of Regulations. Discussion The District has adopted the 2019 Edition of the Fire Code, known as the California Code of Regulations, Title 24, Part 9, along with the appendices and amendments thereto. Pursuant to California Health and Safety Code section 13869.7(c), the District’s Fire Code Ordinance cannot take effect until the municipalities in which the Ordinance will apply each ratify the Ordinance. Given that the City is located within the District’s jurisdiction, the City must ratify the District’s Fire Code Ordinance in order for it to take effect. The City Attorney has reviewed the District’s Fire Code Ordinance, and comments from the City Attorney have been received and incorporated into the proposed Resolution. 2020-2025 Key Strategic Targets and Goals Adoption of the attached resolution aligns with Key Target No. 3: Improved Quality of 21 Packet Pg. 540 6770 Page 2 Life. Specifically, the ratification of the County adopted Fire Code helps preserve the public health, safety and welfare. 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 adopt Resolution No. 2020-140, ratifying and accepting the San Bernardino County Fire Protection District’s (“District”) Ordinance No. FPD 20-01, which amends and adopts the 2019 Edition of the California Fire Code, known as California Code of Regulations, Title 24, Part 9, based on the 2018 Edition of the International Fire Code. Attachments Attachment 1 Resolution No. 2020-140 Attachment 2 San Bernardino County Fire Protection District Ordinance No. FPD 20-01 Ward: All Synopsis of Previous Council Action: December 4, 2010 Mayor and City Council of the City of San Bernardino adopted the 2019 California Building Codes as prescribed by the State of California. 21 Packet Pg. 541 RESOLUTION NO. 2020-140 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, RATIFYING THE FIRE CODE ADOPTED BY THE SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT WHEREAS, the San Bernardino County Fire Protection District (“District”) is authorized pursuant to Health and Safety Code section 13869.7 to adopt building standards relating to fire safety that are more stringent than the building standards adopted by the State Fire Marshall and contained in the California Building Standards Code; and WHEREAS, the City of San Bernardino (“City”) resides in the District’s jurisdiction and receives fire protection services from the District; and WHEREAS, on January 28, 2020, the District held a public hearing and adopted Ordinance No. FPD 20-01 (“District Fire Code Ordinance”) adopting and amending the 2019 California Fire Code and appendices thereto; and WHEREAS, the District has transmitted the District Fire Code Ordinance to the City for ratification, pursuant to Health & Safety Code section 13869.7; and WHEREAS, Section 13869.7 provides that the District Fire Code Ordinance will only take effect upon the City’s ratification of the District Fire Code Ordinance; and WHEREAS, the City Council of the City of San Bernardino (“City Council”) has examined the District Fire Code Ordinance and finds that it provides consistency in the application and enforcement of building and housing standards with an emphasis on local needs, and with the goal of protecting lives and property from fire damage; and WHEREAS, the City Council finds and determines that the action of ratifying the District Fire Code Ordinance can be seen with certainty that there is no possibility that the District Fire Code Ordinance may have a significant adverse effect on the environment; thus, the adoption of the District Fire Code Ordinance is exempt from further environmental review under Section 15061(b)(3) of the State CEQA Guidelines; and WHEREAS, the City Council desires to ratify the District Fire Code Ordinance; and WHEREAS, the City Council wishes to delegate the enforcement of the District Fire Code Ordinance to the District’s Chief, or his or her authorized representative. 21.a Packet Pg. 542 Attachment: CED.Ratification of County Fire Code Resolution [Revision 1] (6770 : Ratify and Accept the San Bernardino County Fire Protection NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE AND DECLARE AS FOLLOWS: SECTION 1. Incorporation of Recitals. The recitals set forth above are true and correct and are incorporated herein. SECTION 2. Ratification. The City Council hereby ratifies the District Fire Code Ordinance. A true and correct copy of the District Fire Code Ordinance is attached as Exhibit A and incorporated herein by this reference. SECTION 3. Enforcement. Pursuant to Health and Safety Code section 13869.7(h)(1), the City Council directs that the District Fire Code Ordinance shall be enforced within the District’s service area. The District shall enforce the District’s Code within the City’s corporate limits, and the City’s Building Official shall enforce fire and panic safety and other regulations of the State Fire Marshal as they relate to R-3 dwellings. SECTION 4. Filing. The City Clerk is hereby directed to file a certified copy of this Resolution and the District Fire Code Ordinance with the California Department of Housing and Community Development. 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 take effect upon adoption. APPROVED AND ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this 17th day of June, 2020. ________________________ John Valdivia, Mayor City of San Bernardino Attest: _______________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: 21.a Packet Pg. 543 Attachment: CED.Ratification of County Fire Code Resolution [Revision 1] (6770 : Ratify and Accept the San Bernardino County Fire Protection __________________________________ Sonia Carvalho, City Attorney 21.a Packet Pg. 544 Attachment: CED.Ratification of County Fire Code Resolution [Revision 1] (6770 : Ratify and Accept the San Bernardino County Fire Protection CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the day of , 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this day of , 2020. Genoveva Rocha, CMC, Acting City Clerk 21.a Packet Pg. 545 Attachment: CED.Ratification of County Fire Code Resolution [Revision 1] (6770 : Ratify and Accept the San Bernardino County Fire Protection 21.b Packet Pg. 546 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 547 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 548 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 549 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 550 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 551 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 552 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 553 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 554 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 555 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 556 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 557 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 558 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 559 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 560 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 561 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 562 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 563 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 564 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 565 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 566 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 567 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 568 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 569 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 570 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 571 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 572 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 573 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 574 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 575 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 576 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 577 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 578 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 579 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 580 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 581 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 582 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 583 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 584 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 585 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 586 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 587 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 588 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 589 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 590 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 591 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 592 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 593 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 594 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 595 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 596 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 597 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 598 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 599 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 600 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 601 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 602 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 603 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 604 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 605 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 606 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 607 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 608 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 609 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 610 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 611 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 612 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 613 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 614 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 615 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 616 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 617 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 618 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 619 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 620 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 621 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 622 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 623 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 624 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 625 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 626 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 627 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 628 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 629 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 630 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 631 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 632 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 633 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- 21.b Packet Pg. 634 Attachment: CED.Fire Code.Attachment 2 (6770 : Ratify and Accept the San Bernardino County Fire Protection District Ordinance No. FPD 20- Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Award of a Construction Contract for the CityYards Roof Replacement Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-122: 1. Amending the FY 2019/20 Capital Improvement Plan (CIP) to inclu de City Yard Roof Replacement (“Project’); and 2. Approving a total project budget in the amount of $308,017 for the construction contract in the amount of $279,517 and project contingencies in the amount of $28,500; and 3. Approving the award of a Construction Contract with Bligh Roof Co. DBA Bligh Pacific of Santa Fe Springs, California in the amount of $279,517; and 4. Authorizing the Director of Finance to amend the FY 2019/20 adopted budget to transfer a total of $308,017 from Public Works Building Maintenance accounts 001-400-0037-5172 (Equipment Maintenance) and 001-400-0037-5502 (Professional Contractual services) to Capital Improvement Project Fund 001 - 160-8774 in support of the Project; and 5. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Background The Public Works Department Fleet and Building Maintenance Division is responsible for maintaining the City Yard located at 187 S. Pershing Avenue, San Bernardino. The existing roof of the vehicle maintenance Shop at City Yard is about 30 years old and has exceeded its useful life and is no longer serviceable. The facility roof has been patched numerous times over the last few decades, and the facility has incurred water damage due to this over the years. Additional roof leaks could further damage the buildings’ interior contents and structural deterioration could result if the roof is not replaced. 22 Packet Pg. 635 6743 Page 2 Staff prepared plans and specifications for the roof replacement project. The proposed scope of work includes removing and disposing of the existing roof, installation of adhered thermoplastic (PVC) feltback membrane roof system, installation of polysocyanurate roof insulation, gypsum cover boards, PVC fascia, and other components to comprise a water tight roof system as a base bid. Staff included replacement of existing gutters and downspouts as an alternate bid item. Determination of the lowest responsible bid was based on the total base bid. The alternate bid item was not considered in determining the lowest responsible bidder. This project is proposed to be funded with savings realized in FY 2019/20 Public Works Building Maintenance Division operating budgets. Discussion City Yard Roof Replacement (Project No 13395) to provide roof repairs, was advertised for public bidding on April 17, 2020 and April 24, 2020 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 websites, and the San Bernardino Area Chamber of Commerce. Sealed bids were received and opened on May 14, 2020. The City received five bids as follows: BIDDER CITY BASE BID ALTERNATE BID TOTAL BID Bligh Roof Co. DBA Bligh Pacific Santa Fe Springs $227,810 $51,707 $279,517 Best Contracting Services, Inc. Gardena $285,850 $42,200 $328,050 San Marino Roof Co., Inc. Orange $304,981 $43,438 $348,419 Danny Letner Inc. DBA Letner Roofing Co. Orange $349,200 $37,550 $386,750 Courtney, Inc. Irvine $378,680 $46,840 $425,520 The City has reviewed the bid package and confirmed that Bligh Roof Co. DBA Bligh Pacific of Santa Fe Springs, California, is the lowest responsible and responsive bidder, with a base bid amount of $227,810 and a total bid amount of $279,517. Based on available funding, staff is recommending award of the total bid amount of $279,517 (base bid plus alternate). In addition to construction costs, staff anticipates the need for a construction contingency to provide for any unforeseen work that is related to the project and estimated staff costs required to support engineering inspections of the project. At this 22 Packet Pg. 636 6743 Page 3 time, the estimated full project cost is at $308,017 which includes the lowest responsive construction bid, project contingencies, and engineering inspections. The breakdown of the total project costs are as follows: Cost Items Amount Bid (Including Alternate Bid) $ 279,517 Construction Contingency $ 28,500 Estimated Total Project Cost $ 308,017 If awarded by the Mayor and City Council, construction work on the City Yard Roof Replacement is anticipated to begin in August 2020 and be completed by October 2020. 2020-2025 Key Strategic Targets and Goals This project aligns with Key Target No. 1e: Create an asset management plan as it will address a long deferred maintenance item for a City owned facility and will help preserve the facility asset for use continued use by the Public Works Departme nt for many years into the future. Fiscal Impact Funding in the total amount of $308,017 is available for this project through General Fund savings realized in FY 2019/20 Public Works Building Maintenance Operating Budgets in account 001-400-0037. Savings in an amount of $93,017 is available in 001-400-0037-5172 (Building Equipment Maintenance) and $215,000 in savings is available through 001-400-0037-5502 (Professional Contractual Services). A budget adjustment is required to transfer the total Project budget of $308,017 to City Yard Replacement Project. No 001-160-8774 as shown in the table below. From Account To Account Amount Cost Item 001-400-0037-5172 Professional Services 001-160-8774-5504 CIP Construction $ 93,017 Construction 001-400-0037-5502 Equipment Maint. 001-160-8774-5504 CIP Construction $ 215,000 Construction TOTAL $ 308,017 The Building Maintenance Division operating budgets include budgets for emergency maintenance of equipment such as elevators, fire sprinkler systems, and roll up doors. During FY19/20 fewer than expected equipment maintenance expenditures were incurred, resulting in a savings in this budget category. Additionally, the Division budgets annually for Professional Contractual Services to assist with major con struction repair requests. Because staff was able to address the bulk of these types of repair requests in-house, savings were realized in this budget category in FY2019/20, as well. 22 Packet Pg. 637 6743 Page 4 Conclusion It is recommended that the Mayor and City Council of the Cit y of San Bernardino, California, adopt Resolution No. 2020-122: 1. Amending the FY 2019/20 Capital Improvement Plan (CIP) to include City Yard Roof Replacement (“Project’); and 2. Approving a total project budget in the amount of $308,017 for the constru ction contract in the amount of $279,517 and project contingencies in the amount of $28,500; and 3. Approving the award of a Construction Contract with Bligh Roof Co. DBA Bligh Pacific of Santa Fe Springs, California in the amount of $279,517; and 4. Authorizing the Director of Finance to amend the FY 2019/20 adopted budget to transfer a total of $308,017 from Public Works Building Maintenance accounts 001-400-0037-5172 (Equipment Maintenance) and 001-400-0037-5502 (Professional Contractual services) to Capital Improvement Project Fund 001- 160-8774 in support of the Project; and 5. Authorizing the City Manager or designee to expend the contingency fund, if necessary, to complete the project. Attachments Attachment 1 Resolution No. 2020-122; Exhibit “A” Agreement Attachment 2 Bid Tabulation for City Yard Roof Replacement Attachment 3 Lowest Bid Form for City Yard Roof Replacement Attachment 4 Location Map Ward: 2 Synopsis of Previous Council Actions: None 22 Packet Pg. 638 RESOLUTION NO. 2020-122 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING THE FY 2019/20 CAPITAL IMPROVEMENT PLAN (CIP) TO INCLUDE CITY YARD ROOF REPLACEMENT PROJECT 13395 (“PROJECT’); AND APPROVING A TOTAL PROJECT BUDGET IN THE AMOUNT OF $308,017 FOR THE CONSTRUCTION CONTRACT IN THE AMOUNT OF $279,517 AND PROJECT CONTINGENCIES IN THE AMOUNT OF $28,500; AND APPROVING THE AWARD OF A CONSTRUCTION CONTRACT WITH BLIGH ROOF CO. DBA BLIGH PACIFIC OF SANTA FE SPRINGS, CALIFORNIA IN THE AMOUNT OF $279,517; AND AUTHORIZING THE DIRECTOR OF FINANCE TO AMEND THE FY 2019/20 ADOPTED BUDGET TO TRANSFER A TOTAL OF $308,017 FROM PUBLIC WORKS BUILDING MAINTENANCE ACCOUNTS 001-400- 0037-5172 (EQUIPMENT MAINTENANCE) AND 001-400- 0037-5502 (PROFESSIONAL CONTRACTUAL SERVICES) TO CAPITAL IMPROVEMENT PROJECT FUND 001-160- 8774 IN SUPPORT OF THE PROJECT; AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXPEND THE CONTINGENCY FUND, IF NECESSARY, TO COMPLETE THE PROJECT WHEREAS, the City of San Bernardino Public Works Department is responsible to maintain facilities at the City Yard located at 187 S. Pershing Avenue, San Bernardino; and WHEREAS, staff has administered a competitive bid process to secure a construction contract to perform the City Yard Roof Replacement (“Project”); and WHEREAS, the City received five bids on May 14, 2020, and Bligh Roof Co. DBA Bligh Pacific of Santa Fe Springs, California, has been determined to be the lowest responsive, responsible bidder; and WHEREAS, the total Project budget is estimated at $308,017 including construction costs and contingencies; and WHEREAS, the City now wishes to enter into a construction agreement with Bligh Roof Co. DBA Bligh Pacific to perform the Project work; and WHEREAS, the funding for the project is available through savings realized in previously approved FY 2019/20 Building Maintenance Operating Budgets. 22.a Packet Pg. 639 Attachment: PW.Pacific Bligh Construction Contract Award City Yard Roof Replacement.01.Resolution.Attachment 1 [Revision 2] (6743 : Award Resolution No. 2020-122 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 Director of Finance is authorized to amend the FY 2019/20 CIP to include the City Yard roof Replacement Project 13395 in a total project amount of $308,017. SECTION 3. The City Manager is authorized and directed to execute a construction agreement following the City’s standard terms approved by the City Attorney with Bligh Roof Co. DBA Bligh Pacific in the amount of $279,517 with a contingency in the amount of $28,500 for the City Yard Roof Replacement, attached hereto and incorporated as Exhibit A. SECTION 4. The City Manager or designee is hereby authorized to execute all documents in support of the City Yard Roof Replacement Project 13395 on behalf of the City. SECTION 5. The Director of Finance is authorized to amend the FY 2019/20 adopted budget to transfer funds from General Fund Building Maintenance Account No. 001-400-0037- 5172 ($93,017) and 001-400-0037-5502 ($215,000) to CIP Account No. 001-160-8774. SECTION 6. 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 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 Acting City Clerk this ___ day of __________, 2020. John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: _________________________________ Sonia Carvalho, City Attorney 22.a Packet Pg. 640 Attachment: PW.Pacific Bligh Construction Contract Award City Yard Roof Replacement.01.Resolution.Attachment 1 [Revision 2] (6743 : Award Resolution No. 2020-122 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk 22.a Packet Pg. 641 Attachment: PW.Pacific Bligh Construction Contract Award City Yard Roof Replacement.01.Resolution.Attachment 1 [Revision 2] (6743 : Award A-1 A G R E E M 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 Bligh Roof Co. DBA Bligh Pacific (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 CITY YARD ROOF REPLACEMENT Project No. 13395 in strict conformity with Plans and Special Provisions No. 13395 , 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. 22.b Packet Pg. 642 Attachment: PW.Pacific Bligh Construction Contarct Award City Yard Roof Replacement.01A.Agreement.Attachment 1A [Revision 1] (6743 : A-2 AGREEMENT: CITY YARD ROOF REPLACEMENT Project No. 13395 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: Bligh Roof Co. DBA Bligh Pacific BY: ___________________________________ TERI LEDOUX City Manager BY: _______________________________ Robert Bligh TITLE: President ATTEST: MAILING ADDRESS: 11043 Forest Place _______________________________ Genoveva Rocha, CMC _____Santa Fe Springs, Ca 90670_______ Acting City Clerk PHONE NO.: (562) 944-9753______________ 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. 22.b Packet Pg. 643 Attachment: PW.Pacific Bligh Construction Contarct Award City Yard Roof Replacement.01A.Agreement.Attachment 1A [Revision 1] (6743 : 22.cPacket Pg. 644Attachment: PW.Pacific Bligh Construction contract award City Yard roof Replacement.02- Bid Tabulation.Attachment 2 [Revision 1] (6743 : 22.d Packet Pg. 645 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 646 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 647 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 648 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 649 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 650 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 651 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 652 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 653 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 654 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 655 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 656 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 657 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : 22.d Packet Pg. 658 Attachment: PW.Pacific Bligh Construction Contract award City yard roof Replacement .03.Low Bid Form.Attachment 3 [Revision 1] (6743 : ATTACHMENT NO. 4 LOCATION MAP 187 S Pershing Avenue 22.e Packet Pg. 659 Attachment: PW.Pacific Bligh Construction Contract Award City Yard Roof Replacement..04-Location Map.Attachment 4 (6743 : Award of a Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for Measure I Local Expenditures Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution No. 2020-143, approving the Measure I Five-Year Capital Improvement Plan for FY 2020/21 through FY 2024/25 and Measure I Expenditure Strategy. Background In November 1989, voters approved Measure I authorizing the San Bernardino County Transportation Authority (SBCTA) to impose a one -half of one percent retail transaction and use-tax. This tax was applicable throughout the County for a period of 20 years beginning April 1, 1990 and extending to March 31, 2010, and is commonly known as the 1/2-Cent Sales and Road Tax (Measure 1). In November 2004, voters appro ved an extension of the 1/2-cent sales tax for an additional 30 years from April 1, 2010 through March 31, 2040. To distinguish the two programs, they are being referenced as Measure I 1990-2010 and Measure I 2010-2040. Discussion The City is required to adopt a Measure I Five Year Capital Improvement Program annually. This program must identify projects, the estimated Measure I expenditures on these projects, and a brief description of project and program to be undertaken. This is an administrative requirement for both the original and subsequent voter approved measures. Local street project funds can be used flexibly for any eligible transportation purpose determined to be a local priority, including local streets, major highways, state highway improvements, transit, and other improvements/programs to maximize use of transportation facilities. Expenditure of local street project funds shall be based upon a Five Year Measure I Capital Improvement Plan (MICIP) adopted annually by the governing body of each jurisdiction after being made available for public review and comment. The Five-Year MICIP only relates to the expenditure of Measure I funds and each 23 Packet Pg. 660 6755 Page 2 agency is required to update their program annually. If approved, the City would be committed to expending funds in accordance with the first year of the Five -Year Plan. The second through fifth years are estimates for planning purposes and the Program will be evaluated annually to update projects and estimates identified for future years. In addition to obtaining approval for the proposed Five -Year MICIP for FY 2020 -2025, the proposed Resolution includes language asserting that the City of San Bernardino will meet its base year level Maintenance of Effort for FY 2020/21. Pursuant to Policy VLS-25 of the Measure I Strategic Plan, jurisdictions shall annually provide a statement in the resolution of the governing body adopting the Five Year CIP that acknowledges the jurisdiction will maintain General Fund expenditures for transportation related constru ction and maintenance activities at the required levels to meet base year level in that fiscal year. City staff is recommending approval of the proposed Five -Year MICIP for FY 2020- 2025 (Attachment 2). The projects shown in the five years of the MICIP r eflect the projects and budget amounts included in the City's previously adopted Capital Improvement Program budget. However, only projects in the first year of the budget are actually funded in FY 2020/21. The City is projected to receive $3,198,957 in Measure I pass-thru funds for fiscal year 2020/21 and Exhibit A indicates the way those funds have been allocated in the City’s Capital Improvement Budget. The proposed projects were selected based upon need and importance to the City’s roadway network. Changes to the Program during the year are permitted, subject to approval of plan amendments by resolution of the Mayor and City Council. SBCTA also requires the local agencies to provide an "Expenditure Strategy." Attached is a copy of the proposed strateg y (Attachment 4) for FY 2020/21 . The projects shown in the attached five year Measure I Capital Improvement Program is consistent with the approved Capital Improvement Program and the Public Works Department Work Plan. 2020-2025 Strategic Targets and Goals The Measure I Five-year CIP is consistent with Key Target No 1e: Create a framework for spending decisions as it reflects the most current and highest priority need for use of Measure I Funds in the 2020/21 fiscal year. Fiscal Impact There is no General Fund Impact. The projects listed in the proposed Five -Year MICIP Fiscal Year 2020/21-2024/25 for Measure I Local Expenditures for the City of San Bernardino have previously been identified in the City's Capital Improvement Program. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California adopt Resolution No. 2020-143, approving the Measure I Five-Year Capital Improvement Plan for FY 2020/21 through FY 2024/25 and Measure I Expenditure 23 Packet Pg. 661 6755 Page 3 Strategy and acknowledging that the City will maintain the base year level of expenditures from the General Fund to meet required Maintenance of Effort (MOE) expenditures in FY 2020/21. Attachments Attachment 1 Resolution No. 2020-143 Attachment 2 2020/21-2024/25 MICIP Report San Bernardino Attachment 3 2020/21-2024/25 Measure I Revenue Estimate Attachment 4 Location Map Attachment 5 5-Yr CIP Measure I Expenditure Strategy 2020/21 Ward: All Synopsis of Previous Council Actions: November 15, 2012 Resolution No. 2012-258 adopted the Five-Year Measure I Capital Improvement Program for FY 2012-2017. October 21, 2013 Resolution No. 2013-296 adopted the Five-Year Measure I Capital Improvement Program for FY 2013-2018. October 20, 2014 Resolution No. 2014-374 adopted the Five-Year Measure I Capital Improvement Program for FY 2014-2019. December 7, 2015 Resolution No. 2015-273 adopted the Five-Year Measure I Capital Improvement Program for FY 2015-2020. March 20, 2017 Resolution No. 2017-047 adopted the Five-Year Measure I Capital Improvement Program for FY 2016-2021. February 7, 2018 Resolution No. 2018- 031adopted the Five-Year Measure I Capital Improvement Program for FY 2017-2022. August 15, 2018 Resolution No. 2018- 235 adopted the Five-Year Measure I Capital Improvement Program for FY 2018-2023. June 5, 2019 Resolution No. 2019- 083 adopted the Revised Five-Year Measure I Capital Improvement Program for FY 2018-2023. July 17, 2019 Resolution No. 2019- 172 adopted the Five-Year Measure I Capital Improvement Program for FY 2019-2024. 23 Packet Pg. 662 RESOLUTION NO. 2020-143 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE MEASURE I FIVE-YEAR CAPITAL IMPROVEMENT PLAN FOR FY 2020/2021 THROUGH FY 2024/2025 AND MEASURE I EXPENDITURE STRATEGY AND ACKNOWLEDGING THAT THE CITY WILL MAINTAIN THE BASE YEAR LEVEL OF EXPENDITURES FROM GENERAL FUND TO MEET REQUIRED MAINTENANVE OF EFFORT (MOE) EXPENDITURES IN FY 2020/21 WHEREAS, San Bernardino County voters approved passage of Measure I in November 2004, authorizing the San Bernardino County Transportation Authority to impose a one-half of one percent retail transactions and use tax applicable in the incorporated and unincorporated territory of the County of San Bernardino; and WHEREAS, Revenue from the tax can only be used for transportation improvement and traffic management programs authorized in the Expenditure Plans set forth in Ordinance No. 04- 01 of the Authority; and WHEREAS, the Strategic Plan requires each local jurisdiction applying for revenue from the Local Street Program to annually adopt and update a Five-Year Capital Improvement Plan; and WHEREAS, in compliance with Policy VLS-25 of the Measure I Strategic Plan, the City hereby acknowledges that it will maintain General Fund expenditures for transportation-related construction and maintenance activities at the required Maintenance of Effort (MOE) base year level for FY 2020/21. 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 of the City of San Bernardino hereby approves the Five-Year Capital Improvement Program (FY 2020-2025) for Measure I Local Expenditures (MICIP) attached hereto and incorporated herein as Attachment 2. SECTION 3. The Mayor and City Council of the City of San Bernardino hereby approves the Expenditure Strategy attached hereto and incorporated herein as Attachment 5. 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 23.a Packet Pg. 663 Attachment: PW. 2020-2025 MICIP.01-Attachment 1-Resolution (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for Resolution No. 2020-143 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 attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho , City Attorney 23.a Packet Pg. 664 Attachment: PW. 2020-2025 MICIP.01-Attachment 1-Resolution (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for Resolution No. 2020-143 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 23.a Packet Pg. 665 Attachment: PW. 2020-2025 MICIP.01-Attachment 1-Resolution (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for Resolution Number: Contact Person/Title: Alex Qishta Measure I Local Pass-through Program San Bernardino, City of Phone: (909) 384-5019 Email: Qishta_al@sbcity.org FIVE YEAR CAPITAL IMPROVEMENT PLAN 6/30/2020 Carry Over Balance $2,044,038.00 Fiscal Years 2020/2021 thru 2024/2025 Total Est. Rev. $3,811,011.00 $3,665,431.00 $18,341,957.00 No No 0%100%$700,000.00 700,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $700,000.00 No No 0%100%$3,001,582.00 $159,731.00 $1,493,000.00 $0.00 $533,851.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $2,186,582.00 No No 0%100%$497,163.00 $497,163.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $497,163.00 No No 0%100%$3,199,431.00 $199,431.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $199,431.00 No No 0%100%$84,400.00 $84,400.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $84,400.00 No No 0%100%$2,039,582.00 $403,313.00 $385,940.00 $0.00 $749,272.00 $0.00 $501,057.00 $0.00 $0.00 $0.00 $0.00 $2,039,582.00 $2,044,038.00 $1,878,940.00 $0.00 $1,283,123.00 $0.00 $501,057.00 $0.00 $0.00 $0.00 $0.00 $5,707,158.00 No No 0%100%$3,144,091.00 $644,091.00 $500,000.00 $0.00 $500,000.00 $0.00 $500,000.00 $0.00 $500,000.00 $0.00 $500,000.00 $3,144,091.00 No No $8,250,000.00 $1,650,000.00 $1,650,000.00 $1,650,000.00 $1,650,000.00 $1,650,000.00 $8,250,000.00 $2,150,000.00 $1,650,000.00 $1,650,000.00 $1,650,000.00 $1,650,000.00 $8,250,000.00 67.21%43.30%45.02%43.71%42.40% Total Carryover Programming:$2,044,038.00 Total Estimated Programming:$11,913,120.00 Total Programming:$13,957,158.00 Total Programming is currently 73.37% (must not exceed 150%) of Carryover Balance + Total Est. Revenue. $3,891,565.00 FY2020/21 Est. Revenue FY2023/24 Est. Revenue FY2024/25 Est. RevenueFY2022/23 Est. Revenue $3,198,957.00 Current Estimate Carryover Funds FY2021/22 Est. Revenue $3,774,993.00 Is Project in City's Non-motorized Transportation Plan? (Yes/No) Does Project have an ATP Component? (Yes/No) Is the Project on the City's Nexus Study List? (Public/DIF Share %)Estimated Total Project Cost Citywide Street Rehabilitation (Annual)-Industrial Road from Waterman Avenue to Steele Road, Pepper Avenue Rehabilitation from Baseline Road to Mill Street Co-op with City of Redland for Mountain View Avenue Resurfacing from -10 Freeway to the Mission Zanja Channel University Parkway & I-215 Improvements TotalNamed Projects: Sterling Avenue Rehabilitation from Pacific Street to Highland Avenue Co-op with City of Highland for Sixth Street from Fairfax Lane to Del Rosa Avenue, Elmwood Road from South end to Union Street – Slurry Seal, Ninth St. from 600’ east of Tippecanoe Ave. to 1,140’ east of Tippecanoe Av. – Mill & Overlay, Sterling Avenue from 6th Street to 352’ north of 7th Street – Mill & Overlay, Sixth St. from Sterling Ave. to 1,814’ east of Sterling Ave – Mill & Overlay, Sixth Street from Roberts Street to Victoria Avenue – Mill & Overlay, Jane Street from Rogers Lane to easterly terminus – Mill & Overlay, 17th Street from Valaria Drive to Lynwood Way – Remove & Replace, Rockford Avenue from Western Avenue to northerly terminus – Slurry Seal, Mansfield St. from 200’ west of Central Ave. to Central Ave. – Slurry Seal, Central Ave. from 75’ south of Fisher St. north of Mansfield St. – Slurry Seal, Orange Street from Clifton Avenue to Pacific Street – Slurry Seal, Pacific Street from Buckeye Street to Boulder Avenue – Remove & Replace, Atlantic Ave. from Palm Ave. to City Limits east of Seine Ave. – 2” AC Cap, Pacific Street Pavement Rehabilitation from Victoria Avenue to Palm Avenue, Pacific Street Pavement Rehabilitation from Palm Avenue to Church Avenue, Pacific Street Bikeway Improvements from Guthrie Street to Church Avenue, Tippecanoe Avenue Improvements from 9th Street to Vine Street, 3rd Street near Palm Avenue (SS19-00) Current Estimate Carryover Funds Current Estimate Carryover Funds Current Estimate Carryover Funds Current Estimate Carryover Funds Named Projects Total: Total Carryover + Estimate: (%) Named Projects to FY Est. Revenue:122.63%33.67%13.67%0.00%0.00% $3,922,978.00 $1,283,123.00 $501,057.00 $0.00 $0.00 Categorical Projects: Electrical Charges for Street Lights and Traffic Signals Categorical Projects Total: (%) Categorical Projects to FY Est. Revenue: Citywide Pavement Rehabilitation (Slurry / Crack Seal) 23.b Packet Pg. 666 Attachment: PW.2020-2025 MICIP.02.MICIP Report San Bernardino-Attachment 2 (6755 : Five-Year Capital Improvement Program FY 2020/21 to 23.b Packet Pg. 667 Attachment: PW.2020-2025 MICIP.02.MICIP Report San Bernardino-Attachment 2 (6755 : Five-Year Capital Improvement Program FY 2020/21 to REV FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25Chino5.62% $ 1,381,067 $ 1,310,748 $ 1,561,532 $ 1,501,882 $ 1,546,774 $ 1,594,538 7,515,473$ Chino Hills5.28% $ 1,297,046 $ 1,231,005 $ 1,466,532 $ 1,410,510 $ 1,452,671 $ 1,497,530 7,058,248$ Colton3.40% $ 836,229 $ 793,651 $ 945,500 $ 909,382 $ 936,564 $ 965,485 4,550,581$ Fontana13.28% $ 3,260,572 $ 3,094,554 $ 3,686,633 $ 3,545,804 $ 3,651,790 $ 3,764,558 17,743,340$ Grand Terrace0.79% $ 194,548 $ 184,642 $ 219,969 $ 211,567 $ 217,890 $ 224,619 1,058,687$ Highland3.49% $ 857,553 $ 813,889 $ 969,610 $ 932,571 $ 960,446 $ 990,105 4,666,623$ Loma Linda1.52% $ 374,136 $ 355,086 $ 423,025 $ 406,865 $ 419,027 $ 431,966 2,035,969$ Montclair2.48% $ 608,257 $ 577,287 $ 687,739 $ 661,467 $ 681,239 $ 702,276 3,310,007$ Ontario11.16% $ 2,740,764 $ 2,601,213 $ 3,098,901 $ 2,980,523 $ 3,069,613 $ 3,164,403 14,914,653$ Rancho Cucamonga11.23% $ 2,758,352 $ 2,617,906 $ 3,118,788 $ 2,999,650 $ 3,089,312 $ 3,184,710 15,010,365$ Redlands4.50% $ 1,104,482 $ 1,048,245 $ 1,248,805 $ 1,201,101 $ 1,237,002 $ 1,275,201 6,010,354$ Rialto6.71% $ 1,649,227 $ 1,565,254 $ 1,864,733 $ 1,793,500 $ 1,847,109 $ 1,904,148 8,974,744$ San Bernardino13.72% $ 3,370,576 $ 3,198,957 $ 3,811,011 $ 3,665,431 $ 3,774,993 $ 3,891,565 18,341,958$ Upland4.91% $ 1,206,598 $ 1,145,162 $ 1,364,265 $ 1,312,150 $ 1,351,371 $ 1,393,102 6,566,052$ Yucaipa3.43% $ 843,194 $ 800,261 $ 953,374 $ 916,955 $ 944,364 $ 973,526 4,588,480$ County/Valley8.46% $ 2,078,388 $ 1,972,564 $ 2,349,973 $ 2,260,204 $ 2,327,763 $ 2,399,644 11,310,147$ Total Valley Region 100.00% 24,560,990$ 23,310,424$ 27,770,391$ 26,709,562$ 27,507,928$ 28,357,376$ 133,655,681$ * Estimates for Local Pass-through Revenue updated April 2020. Includes effect of COVID-19 and 5% small business adjustment.Measure I Local Pass-through Program REVISED REVENUE ESTIMATES FOR FY2019/2020 TO FY2024/2025VALLEY SUBAREAPopulation Distribution Percentage Total FY20/21thru FY24/25 Valley Subarea Estimated Annual Local Pass-Through Amount*23.cPacket Pg. 668Attachment: PW.2020-2025 MICIP.03. Measure I Revenue Estimate.Attachment 3 (6755 : Five-Year Capital Population Revenue GenerationREV FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25Needles70.07% 73.45%120,014.71$ 113,903.95$ 113,903.95$ 122,122.39$ 117,662.70$ 121,391.61$ 588,984.61$ County/Colorado River29.93% 26.55%47,230.93$ 44,826.09$ 44,826.09$ 48,060.39$ 46,305.32$ 47,772.80$ 231,790.69$ Colorado River Subarea100.00% 100.00%167,245.65$ 158,730.04$ 170,182.78$ 163,968.02$ 169,164.42$ 174,693.17$ 836,738.43$ Twentynine Palms38.31% 22.77%405,964.06$ 385,293.69$ 485,650.54$ 464,971.16$ 476,688.30$ 489,170.22$ 2,301,773.91$ Yucca Valley 29.17% 64.67%623,775.55$ 592,014.92$ 746,216.13$ 714,441.67$ 732,445.39$ 751,624.21$ 3,536,742.32$ County/Morongo Basin32.52% 12.56%299,662.15$ 284,404.32$ 358,482.68$ 343,218.21$ 351,867.21$ 361,080.73$ 1,699,053.15$ Morongo Basin Subarea100.00% 100.00%1,329,401.76$ 1,261,712.93$ 1,590,349.36$ 1,522,631.04$ 1,561,000.90$ 1,601,875.15$ 7,537,569.38$ Barstow 42.42% 75.24%1,379,091.77$ 1,308,872.87$ 1,679,197.73$ 1,623,042.60$ 1,679,826.12$ 1,740,266.59$ 8,031,205.91$ County/North Desert 57.58% 24.76%965,126.37$ 915,985.26$ 1,175,148.78$ 1,135,849.87$ 1,175,588.55$ 1,217,886.45$ 5,620,458.90$ North Desert Subarea100.00% 100.00%2,344,218.13$ 2,224,858.13$ 2,854,346.52$ 2,758,892.47$ 2,855,414.67$ 2,958,153.03$ 13,651,664.82$ Big Bear Lake 10.44% 49.84%392,858.41$ 372,855.32$ 410,297.29$ 394,847.81$ 406,880.75$ 419,683.21$ 2,004,564.38$ County/Mountains 89.56% 50.16%910,675.79$ 864,307.12$ 951,100.46$ 915,287.37$ 943,180.65$ 972,857.73$ 4,646,733.31$ Mountains Subarea100.00% 100.00%1,303,534.19$ 1,237,162.44$ 1,361,397.75$ 1,310,135.17$ 1,350,061.39$ 1,392,540.93$ 6,651,297.69$ Adelanto8.73% 4.03%660,476.40$ 626,847.08$ 748,695.89$ 726,867.50$ 755,633.81$ 786,293.27$ 3,644,337.54$ Apple Valley18.25% 14.90%1,716,383.59$ 1,628,990.89$ 1,945,640.06$ 1,888,914.50$ 1,963,669.68$ 2,043,344.57$ 9,470,559.70$ Hesperia23.94% 23.58%2,460,404.88$ 2,335,129.03$ 2,789,039.90$ 2,707,724.83$ 2,814,885.03$ 2,929,097.54$ 13,575,876.33$ Victorville31.43% 51.86%4,313,313.97$ 4,093,693.99$ 4,889,441.11$ 4,746,888.38$ 4,934,749.97$ 5,134,974.91$ 23,799,748.37$ County/Victor Valley17.65% 5.63%1,205,880.23$ 1,144,480.71$ 1,366,949.03$ 1,327,095.34$ 1,379,616.11$ 1,435,593.32$ 6,653,734.52$ Victor Valley Subarea100.00% 100.00% 10,356,459.06$ 9,829,141.71$ 11,739,765.99$ 11,397,490.55$ 11,848,554.60$ 12,329,303.61$ 57,144,256.46$ Total Mt Desert Region15,500,858.79$ 14,711,605.25$ 17,716,042.40$ 17,153,117.25$ 17,784,195.98$ 18,456,565.89$ 85,821,526.77$ * Estimates for Local Pass-through Revenue updated April 2020. Includes effect of COVID-19 and 5% small business adjustment. Total FY20/21 through FY24/25 MOUNTAIN/DESERT SUBAREADistribution Percentage(50% Population & 50% Revenue Generation) Estimated Annual Local Pass-Through Amount*Measure I Local Pass-through Program REVISED REVENUE ESTIMATES FOR FY2019/2020 TO FY2024/2025Mountain/Desert Subareas23.cPacket Pg. 669Attachment: PW.2020-2025 MICIP.03. Measure I Revenue Estimate.Attachment 3 (6755 : Five-Year Capital 23.d Packet Pg. 670 Attachment: pw.2020-2025.MICIP.04 Location Map.Attachment 4 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for 23.d Packet Pg. 671 Attachment: pw.2020-2025.MICIP.04 Location Map.Attachment 4 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for 23.d Packet Pg. 672 Attachment: pw.2020-2025.MICIP.04 Location Map.Attachment 4 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for 23.d Packet Pg. 673 Attachment: pw.2020-2025.MICIP.04 Location Map.Attachment 4 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for 23.d Packet Pg. 674 Attachment: pw.2020-2025.MICIP.04 Location Map.Attachment 4 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for 23.d Packet Pg. 675 Attachment: pw.2020-2025.MICIP.04 Location Map.Attachment 4 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for 23.d Packet Pg. 676 Attachment: pw.2020-2025.MICIP.04 Location Map.Attachment 4 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for 23.d Packet Pg. 677 Attachment: pw.2020-2025.MICIP.04 Location Map.Attachment 4 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY 2024/25 for CITY OF SAN BERNARDINO MEASURE I CAPITAL IMPROVEMENT PLAN EXPENDITURE STRATEGY Fiscal Year 2020/2021 to 2024/2025 The Cit y of San Bernardino will continue to place emphasis on both its regional and sub-regional arterial roadwa y s ystem. At least fifty percent of the City's Measure I allocation will be earmarked for specific capital projects that are geared toward improving traffic flow and motorist convenience. Failing pavement surfaces will be rehabilitated and traffic striping modified as needed to accommodate increased traffic demand ; and intersection capacity will be improved with new and modified traffic signals. In addition to the above Capital Improvement Program, San Bernardino will continue to allocate up to fifty percent of its annual Measure I funds towards public works maintenance activities. Maintenance work will continue to include the Cit y's traffic signal s ystems, sidewalk and curb repair, and pavement repair and overlay on the local street system. 23.e Packet Pg. 678 Attachment: PW.2020-2025 MICIP.05. 5 Yr Expenditure Strategy.Attachment 5 (6755 : Five-Year Capital Improvement Program FY 2020/21 to FY Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Resolution Declaring Intent to Annex Territory Community Facilities District No. 2019-1 Recommendation Adopt Resolution No. 2020-144 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 4) and authorizing the levy of a special taxes therein. Background On June 5, 2019, the Mayor City Council approved Resolution No. 2019-081 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the "CFD No. 2019-1" or "District") for the purpose of levying special taxes on parcels of taxable property to provide certain services which are necessary to meet increased demands placed upon the City. Discussion On July 17, 2019, the Mayor and City Council adopted Resolution No. 2019 -178, establishing CFD No. 2019-1 pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (“Act”). CFD No. 2019 -1 allows for the levy of special taxes on parcels of taxable property for the purpose of providing certain services which are necessary to meet increased demands placed by development upon the City. Development projects are subject to conditions of approval that require projects to form/annex a maintenance district. These districts apply an annual fee or special tax upon properties within the District which provide the revenue to offset the cost of maintenance of the public improvements necessary to serve the development. The Developer has agreed to initiate and conduct the CFD annexation proceedings pursuant to the Act. To that end, the Developer has submitted a "Consent and Waiver" form, which is on file in the City Clerk's office that authorizes the City to (1) hold the election and declare election results; (2) shorten election time requirements; (3) waive analysis and arguments; (4) waive all notice requirements relating to the conduct of the election immediately following the public hearing. 24 Packet Pg. 679 6756 Page 2 The public facilities and services proposed to be financed within the territory to be annexed to the District are the following: 1. Maintenance of median landscaping and other public improvements installed within the public rights-of-way; and 2. Public lighting and appurtenant facilities, including street lights within public rights-of-way and traffic signals; and 3. Maintenance of streets, including pavement management, and provide street sweeping; and 4. City and County costs associated with the setting, levying and collection of the special tax, and in the administration of the District including the contract administration and for the collection of reserve funds. The proposed development includes approximately 2 8 gross acres of vacant residential property to include 119 detaching single-family residential lots. The property is located on the northeast intersection of Magnolia Avenue and Little League Drive, as shown in Attachment 2. This development will create a new Tax Zone No. 5 within CFD No. 2019-1, as shown in the boundary map and included in the Resolution of Intention as Exhibit “D”. In order to annex into CFD No. 2019 -1, a Resolution of Intention to annex property must be approved to identify the facilities to be maintained and establish the maximum special tax for this Tax Zone. The Resolution of Intention shall also set the date and time for the public hearing. The rate and method of apportionment of the special tax for this Tax Zone, (Tax Zone No. 5), is included as Exhibit “C” to the Resolution of Intention. The maximum annual special tax for this development has been calculated to be $401 per residential unit. This tax rate includes a Maximum Special Tax A of $344 per unit per year for maintenance services of public facilities and a Maximum Annual Special Tax B (Contingent) of $57 per unit per year. Special Tax B (Contingent) is for the maintenance and operation of the improvements described in Exhibit “B” attached hereto. If the Property Owners Association (POA) were to default of its obligation to maintain such improvements, the City would be able to collect funds to pay for those services. Annual Special Tax B (Contingent) rate is proposed to escalate each year at the greater of Consumer Price Index (CPI) or 2%. Attachment 3 attached to the staff report is a maintenance exhibit to illustrate which services are being maintained by the CFD and by the POA. In order to annex property to CFD No. 2019 -1 pursuant to the provisions of California Government Code Section 53311 et seq., the City must adopt a series of three statutorily required Resolutions and an Ordinance which are summarized below. Resolution declaring City intent to annex territory to Community Facilities District No. 2019-1 including the boundary of the area to be annexed and the rate and method of apportionment of special taxes within the annexation area (the special 24 Packet Pg. 680 6756 Page 3 tax applies only to properties within the annexation area). Resolution calling an election to submit to the qualif ied electors the question of levying a special tax within the area proposed to be annexed to the District. Resolution declaring the results of the election and directing the recording of the notice of special tax lien. Amend the Ordinance and order the levy and collection of special taxes in the District. With the adoption of the Resolution of Intention, the Public Hearing would be scheduled for August 5, 2020. 2020-2025 Strategic Targets and Goals Formation of this CFD is consistent with Key Targe t No 4a: Secure a long-term revenue source. Funding from district assessments will create sustainable financial support for ongoing maintenance of landscape and infrastructure associated with the district location. Fiscal Impact The individual property owners in the CFD will be responsible for annual payments of special taxes. Upon full completion of the development, it is estimated that there will be an annual collection of special tax revenues of approximately $40,921 to be used to pay for maintenance costs. On March 1 of each year, every taxable unit for which a building permit has been issued within the boundaries of the CFD will be subject to the special tax for the ensuing Fiscal Year. If the anticipated costs of maintaining the facilities in any given Fiscal Year, prior to build-out of the project, exceeds the special tax revenues available from parcels for which building permits have been issued, then the special tax may also be applied to property within recorded final subdivision maps, as well as other undeveloped property within the boundaries of the CFD. All costs associated with annexation into the CFD have been borne by the Developer. By annexing into the CFD, the costs of maintaining improvements located within the development will be financed through special taxes levied on the parcels within CFD No. 2019-1 and not through the City’s General Fund. Conclusion Adopt Resolution No. 2020-143 of the Mayor and City Council of the City of San Bernardino, California, declaring its intention to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, adopting a map of the area to be proposed (Annexation No. 4) and authorizing the levy of a special taxes therein. 24 Packet Pg. 681 6756 Page 4 Attachments Attachment 1 Resolution 2020-144; Exhibit A - Description of Territory; Exhibit B - Description of Authorized Services; Exhibit C - Rate and Method of Apportionment; Exhibit D - Annexation and Potential Annexation Boundary Maps; Exhibit E - Signed Petition, Waiver and Consent; Exhibit F - Notice of Public Hearing; Exhibit G - Special Election Ballot Attachment 2 Project/Location Map Attachment 3 CFD Landscape Maintenance Exhibit Ward: 5 Synopsis of Previous Council Actions: June 5, 2019 Mayor and City Council adopted Resolution No. 2019-81, a Resolution of Intention to form Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino (the “Resolution of Intention”), pursuant to the provisions of the “Mello - Roos Community Facilities Act of 1982”. July 17, 2019 Resolution No. 2019-178 was adopted establishing Community Facilities District No. 2019-1; Resolution No. 2019-179 was adopted declaring election results for Community Facilities District No. 2019-1; and first reading of Ordinance No. MC-1522 levying special taxes to be collected during FY 2019 -20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. August 7, 2019 Ordinance No. MC-1522 levying special taxes to be collected during FY 2019-20 to pay annual costs of maintenance, services and expenses with respect to Community Facilities District No. 2019-1. 24 Packet Pg. 682 RESOLUTION NO. 2020-144 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, DECLARING ITS INTENTION TO ANNEX TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) OF THE CITY OF SAN BERNARDINO, ADOPTING A MAP OF THE AREA TO BE PROPOSED (ANNEXATION NO. 4) AND AUTHORIZING THE LEVY OF A SPECIAL TAXES THEREIN WHEREAS, pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”), on June 5, 2019, the City Council (the “City Council”) of the City of San Bernardino (the “City”) approved Resolution No. 2019-081 establishing Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of California, defined the "CFD No. 2019-1", for the purpose of levying special taxes on parcels of taxable property therein for the purpose of providing certain services which are necessary to meet increased demands placed upon the City; and WHEREAS, the City Council has received a written instrument from the landowner in the CFD No. 2019-1 to initiate and conduct proceedings pursuant to the Act, to annex territory to CFD No. 2019-1 and consenting to the shortening of election time requirements, waiving analysis and arguments, and waiving all notice requirements relating to the conduct of the election; and WHEREAS, the City Council has been advised that certain property owners have requested that the area shown in Exhibit D be annexed territory to the boundaries of CFD No. 2019-1, that a rate and method of apportionment of the special tax to be levied therein be established; BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. Intent to Annex. The City Council hereby declares that it proposes and intends to conduct proceedings pursuant to Article 3.5 for the annexation to the Community Facilities District of the territory described in Exhibit A attached hereto. The City Council determines that the public convenience and necessity require that such territory be annexed to the Community Facilities District. SECTION 2. Name of the Community Facilities District. The name of the existing community facilities district is known as “Community Facilities District No. 2019-1 (Maintenance Services)”. SECTION 3. Description of Territory Proposed to be Annexed, Annexation Map. The territory proposed to be annexed are included within the boundaries within which property may annex to CFD No. 2019-1 and are more particularly described and shown on that certain map entitled “Boundaries – Potential Annexation Area Community Facilities District No. 2019-1 (Maintenance Services) of the City of San Bernardino, County of San Bernardino, State of 24.a Packet Pg. 683 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 (6756 : Resolution Declaring Intent to Annex Territory Community Resolution No. 2020-144 California,” as recorded on June 6, 2019 in Book 88 of Maps of Assessment and Community Facilities District, Page 33, and as Instrument No. 2019-0185395 in the official records of the County of San Bernardino. The territory proposed to be annexed to the CFD No. 2019-1 is described in Exhibit A attached hereto and by this reference made a part hereof. Such territory is also shown and described on the map thereof entitled "Annexation Map No. 4, Community Facilities District No. 2019-1 (Maintenance Services), City of San Bernardino, County of San Bernardino, State of California," which is on file with the City Clerk (the "Annexation Map") and attached hereto as Exhibit D. SECTION 4. Description of Authorized Services. The services proposed to be financed by CFD No. 2019-1 (the “Services”) are described in Exhibit B attached hereto. The cost of providing the Services includes “incidental expenses,” which include costs associated of CFD No. 2019-1, determination of the amount of special taxes, collection or payment of special taxes, or costs otherwise incurred in order to carry out the authorized purposes of CFD No. 2019-1. The Services authorized to be financed by CFD No. 2019-1 are in addition to those currently provided in the territory of CFD No. 2019-1 and do not supplant services already available within that territory. SECTION 5. Levy of Special Taxes. Except where funds are otherwise available, a special tax sufficient to pay the costs of the Services (including incidental expenses), secured by recordation of a continuing lien against all nonexempt real property in CFD No. 2019-1, will be levied annually within CFD No. 2019-1. The Rate and Method of Apportionment, and manner of collection of the special tax are specified in Exhibit C. SECTION 6. Adoption of Annexation Map. Pursuant to Section 3110.5 of the Streets and Highways Code, the City Council adopts the Annexation Map as the map of the area proposed to be annexed to the CFD No. 2019-1. Pursuant to Section 3111 of said Code, the City Clerk shall file the original of the Annexation map in his office and shall file a copy of the Annexation Map with the County Recorder of the County of San Bernardino no later than 15 days prior to the date of the hearing specified in Section 7 hereof. SECTION 7. Public Hearing. The City Council hereby fixes 7:00 p.m., or as soon thereafter as practicable, on Wednesday, August 5, 2020, in the City Council Chambers located at 201 North “E” Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the proposed annexation of the said territory to the CFD No. 2019-1. SECTION 8. Notice of Public Hearing. The City Clerk is hereby directed to publish, or cause to be published, a notice of said public hearing, in substantially the form attached hereto as Exhibit F, one time in a newspaper of general circulation published in the area of CFD No. 2019- 1. The publication of said notice shall be completed at least seven da ys prior to the date herein fixed for said hearing. Said notice shall contain the information prescribed by Section 53322 of the Act. SECTION 9. Mailing Ballots. In anticipation of its action on Wednesday August 5, 2020 to call the election on the annexation for the same date, pursuant to waiver of election time limits from the landowners, the City Council hereby authorizes the City Clerk to mail to each landowner in the territory proposed to be annexed to the CFD No. 2019-1 a ballot in substantially the form set 24.a Packet Pg. 684 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 (6756 : Resolution Declaring Intent to Annex Territory Community Resolution No. 2020-144 forth in Exhibit G hereto. A copy of the waiver and consent form signed by the property owner is attached hereto as Exhibit E and incorporated herein by this reference. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this 17th day of June 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 24.a Packet Pg. 685 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 (6756 : Resolution Declaring Intent to Annex Territory Community Resolution No. 2020-144 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO ) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-____, adopted at a regular meeting held on the 17th day of June 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ____ day of __________, 2020. ___________________________________ Genoveva Rocha, CMC, Acting City Clerk 24.a Packet Pg. 686 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 (6756 : Resolution Declaring Intent to Annex Territory Community EXHIBIT A   DESCRIPTION OF PROPOSED TERRITORY TO BE ANNEXED The City of San Bernardino Community Facilities District No. 2019-1 (Maintenance Services) (the “CFD No. 2019-1”) Annexation No. 4 is currently comprised of one parcel, located within the City boundaries. The property is identified by the following San Bernardino County Assessor's Parcel Numbers (APN). APN Owner Name 0261-181-16 TH Rancho Palma LLC 0261-181-17 TH Rancho Palma LLC     24.b Packet Pg. 687 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit A - Description of Proposed Territory to be Annexed (6756 EXHIBIT B DESCRIPTION OF AUTHORIZED SERVICES The services which may be funded with proceeds of the special tax of CFD No. 2019-1, as provided by Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing and/or replacing landscaped areas (may include reserves for replacement) in public street right-of-ways, public landscaping, public open spaces and other similar landscaped areas officially dedicated for public use. These services including the following: (a) maintenance and lighting of parks, parkways, streets, roads and open space, which maintenance and lighting services may include, without limitation, furnishing of electrical power to street lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities; maintenance of public signage; graffiti removal from and maintenance and repair of public structures situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or recreation program equipment or facilities situated on any park; and (b) maintenance and operation of water quality improvements which include storm drainage and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration basins, flood control channels, fossil fuel filters, and similar facilities. Maintenance services may include but is not limited to the repair, removal or replacement of all or part of any of the water quality improvements, fossil fuel filters within the public right-of-way including the removal of petroleum hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance, servicing; or both of the water quality basin improvements within flood control channel improvements; and (c) public street sweeping, on the segments of the arterials within the boundaries of CFD No. 2019-1; as well as local roads within residential subdivisions located within CFD No. 2019-1; and any portions adjacent to the properties within CFD No. 2019-1. In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may be expended to pay “Administrative Expenses,” as said term is defined in Exhibit B to this resolution of intention. The above services shall be limited to those provided within the boundaries of CFD No. 2019-1 or for the benefit of the properties within the boundaries of CFD No. 2019-1, as the boundary is expanded from time to time by anticipated annexations, and said services may be financed by proceeds of the special tax of CFD No. 2019-1 only to the extent that they are in addition to those provided in the territory of CFD No. 2019-1 before CFD No. 2019-1 was created. 24.c Packet Pg. 688 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit B - Description of Authorized Services (6756 : Resolution EXHIBIT C City of San Bernardino 1  Community Facilities District No. 2019‐1 (Maintenance Services)   RATE AND METHOD OF APPORTIONMENT OF SPECIAL TAX FOR   COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)  OF THE CITY OF SAN BERNARDINO    A Special Tax (the “Special Tax”) shall be levied on and collected from each Assessor’s Parcel (defined  below) in Community Facilities District No. 2019‐1 (Maintenance Services) (the “CFD No. 2019‐1” or  “CFD”; defined below), in each Fiscal Year, (defined below), commencing in the Fiscal Year beginning July  1, 2019, in an amount determined by the City Council of the City of San Bernardino, acting in its capacity  as the legislative body of CFD No. 2019‐1, by applying the rate and method of apportionment set forth  below.  All of the real property in CFD No. 2019‐1, unless exempted by law or by the provisions herein,  shall be taxed to the extent and in the manner provided herein.    A. DEFINITIONS    “Acre” or “Acreage” means the land area of an Assessor’s Parcel as shown on any Assessor’s Parcel  Map, or if the land area is not shown on the Assessor’s Parcel Map, the land area as shown on the  applicable Final Map, or if the area is not shown on the applicable Final Map, the land area shall be  calculated by the Administrator.    “Administrative Expenses” means the actual or reasonably estimated costs directly related to the  formation, annexation, and administration of CFD No. 2019‐1 including, but not limited to: the costs  of computing the Special Taxes and preparing the annual Special Tax collection schedules (whether  by the City or designee thereof or both); the costs to the City, CFD No. 2019‐1, or any designee thereof  associated with fulfilling the CFD No. 2019‐1 disclosure requirements; the costs associated with  responding to public inquiries regarding the Special Taxes; the costs of the City, CFD No. 2019‐1 or  any designee thereof related to an appeal of the Special Tax; and the City's annual administration fees  including payment of a proportional share of salaries and benefits of any City employees and City  overhead whose duties are related to the administration and third party expenses.  Administrative  Expenses shall also include amounts estimated or advanced by the City or CFD No. 2019‐1 for any  other administrative purposes of CFD No. 2019‐1, including attorney's fees and other costs related to  commencing and pursuing to completion any foreclosure of delinquent Special Taxes.    “Administrator” means the City Manager of the City of San Bernardino, or his or her designee.    “Approved Property” means all Assessor’s Parcels of Taxable Property that are included in a Final  Map that was recorded prior to the March 1 preceding the Fiscal Year in which the Special Tax is being  levied, and that have not been issued a building permit on or prior to the March 1 preceding the Fiscal  year in which the special tax is being levied.    “Assessor’s Parcel” means a lot or parcel of land that is identifiable by an Assessor’s Parcel Number  by the County Assessor of the County of San Bernardino.    “Assessor’s Parcel Map” means an official map of the Assessor of the County designating parcels by  Assessor’s Parcel Number.    “Assessor’s Parcel Number” means that identification number assigned to a parcel by the County  Assessor of the County.    24.d Packet Pg. 689 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 2  Community Facilities District No. 2019‐1 (Maintenance Services)   “Building Square Footage” or “BSF” means the floor area square footage reflected on the original  construction building permit issued for construction of a building of Non‐Residential Property and any  Building Square Footage subsequently added to a building of such Taxable Property after issuance of  a building permit for expansion or renovation of such building.    “Calendar Year” means the period commencing January 1 of any year and ending the following  December 31.     “CFD” or “CFD No. 2019‐1” means the City of San Bernardino Community Facilities District No. 2019‐ 1 (Maintenance Services).    “City” means the City of San Bernardino.     “Contingent Special Tax B Requirement” means that amount required in any Fiscal Year, if the POA  is unable to maintain the Service(s) to: (i) pay the costs of Services incurred or otherwise payable in  the Calendar Year commencing in such  Fiscal  Year;  (ii)  fund  an  operating  reserve  for  the  costs   of  Services  as determined by the Administrator; less a credit for funds available to reduce the annual  Special Tax B (Contingent) levy as determined by the Administrator.    “County” means the County of San Bernardino.    “Developed Property” means all Assessor’s Parcels of Taxable Property for which a building permit  for new construction has been issued on or prior to March 1 preceding the Fiscal Year in which the  Special Tax is being levied.    “Exempt Property” means all Assessors’ Parcels designated as being exempt from the Special Tax as  provided for in Section G.     “Final Map” means a subdivision of property by recordation of a final map, parcel map, or lot line  adjustment, pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.)  or recordation of a condominium plan pursuant to California Civil Code 1352 that creates individual  lots for which building permits may be issued without further subdivision.      “Fiscal Year” means the period from and including July 1st of any year to and including the following  June 30th.    “Land Use Category” or “LUC” means any of the categories contained in Section B hereof to which an  Assessor’s Parcel is assigned consistent with the land use approvals that have been received or  proposed for the Assessor’s Parcel as of March 1 preceding the Fiscal Year in which the Special Tax is  being levied.    “Maximum Special Tax” means either Maximum Special Tax A and/or Maximum Special Tax B  (Contingent), as applicable.    “Maximum Special Tax A” means the Maximum Special Tax A, as determined in accordance with  Section C below that can be levied in any Fiscal Year on any Assessor's Parcel of Taxable Property  within CFD No. 2019‐1.    24.d Packet Pg. 690 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 3  Community Facilities District No. 2019‐1 (Maintenance Services)   “Maximum Special Tax B (Contingent)” means the Maximum Special Tax B (Contingent), as  determined in accordance with Section C below that can be levied in any Fiscal Year on any Assessor's  Parcel of Taxable Property within CFD No. 2019‐1.    “Multi‐Family Residential Property” means any Assessor’s Parcel of residential property that consists  of a building or buildings comprised of attached Residential Units sharing at least one common wall  with another unit.   “Non‐Residential Property” or “NR” means all Assessor's Parcels of Taxable Property for which a  building permit(s) was issued for a non‐residential use.  The Administrator shall make the  determination if an Assessor’s Parcel is Non‐Residential Property.   “Property Owner’s Association” or “POA” means the property owner’s association or homeowner’s   association established to maintain certain landscaping within a Tax Zone.    “Proportionately” means for Taxable Property that is: (i) Developed Property, that the ratio of the  actual Special Tax levy to the Maximum Special Tax is the same for all Parcels of Developed Property  with the same Tax Zone, (ii) Approved Property, that the ratio of the actual Special Tax levy to the  Maximum Special Tax is the same for all Parcels of Approved Property with the same Tax Zone, and  (iii) Undeveloped Property that the ratio of the actual Special Tax levy per acre to the Maximum  Special Tax per acre is the same for all Parcels of Undeveloped Property with the same Tax Zone.    “Residential Unit” or "RU" means a residential unit that is used or intended to be used as a domicile  by one or more persons, as determined by the Administrator.    “Residential Property” means all Assessor’s Parcels of Taxable Property upon which completed  Residential Units have been constructed or for which building permits have been or may be issued for  purposes of constructing one or more Residential Units.    “Service(s)” means services permitted under the Mello‐Roos Community Facilities Act of 1982  including, without limitation, those services authorized to be funded by CFD No. 2019‐1 as set forth  in the documents adopted by the City Council at the time the CFD was formed.     “Single Family Residential Property” means any residential property other than Multi‐Family  Residential Property on an Assessor’s Parcel.  “Special Tax(es)” means the Special Tax A and/or Special Tax B (Contingent) to be levied in each Fiscal  Year on each Assessor’s Parcel of Taxable Property.    “Special Tax A” means the annual special tax to be levied in each Fiscal Year on each Assessor’s Parcel  of Taxable Property to fund the Special Tax A Requirement.    "Special Tax A Requirement" means for each Tax Zone, that amount to be collected in any Fiscal Year  to pay for certain costs as required to meet the needs for such Tax Zone of CFD No. 2019‐1 in both  the current Fiscal Year and the next Fiscal Year. The costs to be covered shall be the direct costs for  maintenance services including but not limited to (i) maintenance and lighting of parks, parkways,  streets, roads and open space, (ii) maintenance and operation of water quality improvements, (iii)  public street sweeping, (iv) fund an operating reserve for the costs of Services as determined by the  Administrator, and (v) Administrative Expenses. Under no circumstances shall the Special Tax A  Requirement include funds for Bonds.  24.d Packet Pg. 691 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 4  Community Facilities District No. 2019‐1 (Maintenance Services)   “Special Tax B (Contingent)” means the Special Tax B (Contingent) to be levied in each Fiscal Year on  each Assessor’s Parcel of Taxable Property to fund the Contingent Special Tax B Requirement, if  required.    "Taxable Property" means all Assessor’s Parcels within CFD No. 2019‐1, which are not Exempt  Property.    “Taxable Unit” means a Residential Unit, Building Square Footage, or an Acre. "Tax Zone" means a mutually exclusive geographic area, within which particular Special Tax rates may  be levied pursuant to this Rate and Method of Apportionment of Special Tax.  Appendix C identifies  the Tax Zone in CFD No. 2019‐1 at formation; additional Tax Zones may be created when property is  annexed into the CFD.    "Tax Zone 1" means the specific geographic area identified on the CFD Boundary Map as Tax Zone 1.    "Tract(s)" means an area of land; i) within a subdivision identified by a particular tract number on a  Final Map, ii) identified within a Parcel Map; or iii) identified within lot line adjustment approved for  subdivision.    “Undeveloped Property” means, for each Fiscal Year, all Taxable Property not classified as Developed  Property or Approved Property.    B. ASSIGNMENT TO LAND USE CATEGORIES  For each Fiscal Year, all Assessor’s Parcels of Taxable Property within CFD No. 2019‐1 shall be classified  as Developed Property, Approved Property, or Undeveloped Property, and shall be subject to the levy  of Special Taxes as determined pursuant to Sections C and D below. Assessor’s Parcels of Developed  Property and Approved Property shall be classified as either Residential Property or Non‐Residential  Property.  Residential Property shall be further classified as Single Family Residential Property or  Multi‐Family Residential Property and the number of Residential Units shall be determined by the  Administrator.    C. MAXIMUM SPECIAL TAX RATES  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Residential Property, all such Assessor’s  Parcels shall be assigned the number of Residential Unit(s) constructed or to be constructed thereon  as specified in or shown on the building permit(s) issued or Final Map as determined by the  Administrator.  For Parcels of undeveloped property zoned for development of single family attached  or multi‐family units, the number of Residential Units shall be determined by referencing the  condominium plan, apartment plan, site plan or other development plan, or by assigning the  maximum allowable units permitted based on the underlying zoning for the Parcel.  Once a single  family attached or multi‐family building or buildings have been built on an Assessor's Parcel, the  Administrator shall determine the actual number of Residential Units contained within the building  or buildings, and the Special Tax A levied against the Parcel in the next Fiscal Year shall be calculated  by multiplying the actual number of Residential Units by the Maximum Special Tax per Residential  Unit identified for the Tract below or as included in Appendix A as each Annexation occurs.  For purposes of determining the applicable Maximum Special Tax for Assessor’s Parcels of Developed  Property and Approved Property which are classified as Non‐Residential Property, all such Assessor’s  24.d Packet Pg. 692 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 5  Community Facilities District No. 2019‐1 (Maintenance Services)   Parcels shall be assigned the number of Building Square Footage or Acres as shown on the Final Map  as determined by the Administrator.  Once the Administrator determines the actual number of  Building Square Footage or Acres for the Assessor’s Parcels, the Special Tax A levied against the  Assessor’s Parcel in the next Fiscal Year shall be calculated by multiplying the number of Building  Square Footage or Acres by the Maximum Special Tax per Taxable Unit identified for the Tax Zone  below or as included in Appendix A as each Annexation occurs.  1.  Special Tax A  a. Developed Property  (i) Maximum Special Tax A   The Maximum Special Tax A for each Assessor’s Parcel of Developed Property shall be specific  to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1,  the rate and method adopted for the annexed property shall reflect the Maximum Special Tax  A for the Tax Zones annexed and included in Appendix A.  The Maximum Special Tax A for  Developed Property for Fiscal Year 2019‐2020 within Tax Zone 1 is identified in Table 1 below:  TABLE 1  MAXIMUM SPECIAL TAX A RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax A  1 TR 17170 Single Family Residential Property RU $961    (ii) Increase in the Maximum Special Tax A   On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Developed  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items)  for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the  preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category.  The Maximum Special Tax A that can be levied on an Assessor's Parcel  shall be the sum of the Maximum Special Tax A that can be levied for each Land Use Category  located on that Assessor's Parcel.  For an Assessor's Parcel that contains more than one land  use, the Acreage of such Assessor's Parcel shall be allocated to each type of property based  on the amount of Acreage designated for each land use as determined by reference to the  site plan approved for such Assessor's Parcel.  The Administrator's allocation to each type of  property shall be final.    b.  Approved Property  The Maximum Special Tax A for each Assessor’s Parcel of Approved  Property shall be specific to  each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the rate  and method adopted for the annexed property shall reflect the Maximum Special Tax A for the  Tax Zone annexed and included in Appendix A.  The Maximum Special Tax A for Approved property  Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 2 below:  24.d Packet Pg. 693 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 6  Community Facilities District No. 2019‐1 (Maintenance Services)   TABLE 2  MAXIMUM SPECIAL TAX A RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum  Special Tax A  1 TR 17170 Single Family Residential RU $961    On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Approved Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles  ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii)  by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax A for each Assessor’s Parcel of Undeveloped Property shall be specific  to each Tax Zone within the CFD.  When additional property is annexed into CFD No. 2019‐1, the  rate and method adopted for the annexed property shall reflect the Maximum Special Tax A for  the Tax Zone annexed and included in Appendix A.  The Maximum Special Tax A for Undeveloped  Property for Fiscal Year 2019‐20 within Tax Zone 1 is identified in Table 3 below:  TABLE 3  MAXIMUM SPECIAL TAX A RATES  UNDEVELOPED PROPERTY    Tax Zone Tracts Taxable Unit Maximum Special Tax A  1 TR 17170 Acre $4,338    On each July 1, commencing on July 1, 2020 the Maximum Special Tax A for Undeveloped Property  shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los Angeles  ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii)  by two percent (2.0%), whichever is greater.    2. Special Tax B (Contingent)  The City Council shall levy Special Tax B (Contingent) only in the event the POA defaults in its bligation  to maintain the Contingent Services, which default shall be deemed to have occurred, as determined  by the Administrator, in each of the following circumstances:    (a) The POA files for bankruptcy;  (b) The POA is dissolved;  (c) The POA ceases to levy annual assessments for the Contingent Services; or  (d) The POA fails to provide the Contingent Services at the same level as the City provides similar  services and maintains similar improvements throughout the City and within ninety (90) days  after written notice from the City, or such longer period permitted by the City Manager, fails  to remedy the deficiency to the reasonable satisfaction of the City Council.    a. Developed Property     (i) Maximum Special Tax B (Contingent)  24.d Packet Pg. 694 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 7  Community Facilities District No. 2019‐1 (Maintenance Services)    The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is  shown in Table 4 and shall be specific to each Tax Zone within the CFD.  When additional  property is annexed into CFD No. 2019‐1, the rate and method adopted for the annexed  property shall reflect the Maximum Special Tax B (Contingent) for each Tax Zones annexed  and included in Appendix A.  The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20  within Tax Zone 1 is identified in Table 4 below:  TABLE 4  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  DEVELOPED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    (ii) Increase in the Maximum Special Tax B (Contingent)   On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for  Developed Property shall increase by i) the percentage increase in the Consumer Price Index  (All Items) for Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of  the preceding Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    (iii) Multiple Land Use Categories   In some instances an Assessor's Parcel of Developed Property may contain more than one  Land Use Category.  The Maximum Special Tax B (Contingent) that can be levied on an  Assessor's Parcel shall be the sum of the Maximum Special Tax B (Contingent) that can be  levied for each Land Use Category located on that Assessor's Parcel.  For an Assessor's Parcel  that contains more than one land use, the Acreage of such Assessor's Parcel shall be allocated  to each type of property based on the amount of Acreage designated for each land use as  determined by reference to the site plan approved for such Assessor's Parcel.  The  Administrator's allocation to each type of property shall be final.    b.  Approved Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 5 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 5 below:  TABLE 5  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  APPROVED PROPERTY    Tax  Zone  Tract Land Use Category  Taxable  Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Single Family Residential Property RU $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Approved  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for  24.d Packet Pg. 695 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 8  Community Facilities District No. 2019‐1 (Maintenance Services)   Los Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding  Fiscal Year, or ii) by two percent (2.0%), whichever is greater.    c.  Undeveloped Property  The Maximum Special Tax B (Contingent) for each Assessor’s Parcel of Taxable Property is shown  in Table 6 and shall be specific to each Tax Zone within the CFD.  When additional property is  annexed into CFD No. 2019‐1, the rate and method adopted for the annexed property shall reflect  the Maximum Special Tax B (Contingent) for the Tax Zone annexed and included in Appendix A.   The Maximum Special Tax B (Contingent) for Fiscal Year 2019‐20 within the Tax Zone is identified  in Table 6 below:  TABLE 6  MAXIMUM SPECIAL TAX B (CONTINGENT) RATES  UNDEVELOPED PROPERTY    Tax Zone  Tracts Taxable Unit  Maximum Special   Tax B (Contingent)  1 TR 17170 Acre $0    On each July 1, commencing on July 1, 2020 the Maximum Special Tax B (Contingent) for Undeveloped  Property shall increase by i) the percentage increase in the Consumer Price Index (All Items) for Los  Angeles ‐ Riverside ‐ Orange County (1982‐84 = 100) since the beginning of the preceding Fiscal Year,  or ii) by two percent (2.0%), whichever is greater.    D. METHOD OF APPORTIONMENT OF ANNUAL SPECIAL TAX  1.  Special Tax A  Commencing with Fiscal Year 2019‐20 and for each following Fiscal Year, the Council shall determine  the Special Tax A Requirement and shall levy the Special Tax A on all Assessor’s Parcels of Taxable  Property until the aggregate amount of Special Tax A equals the Special Tax A Requirement for each  Tax Zone.  The Special Tax A shall be levied for each Fiscal Year as follows:    First: The Special Tax A shall be levied Proportionately on all Assessor’s Parcels of Developed  Property within each Tax Zone up to 100% of the applicable Maximum Special Tax to satisfy the Special  Tax A Requirement for such Tax Zone;    Second: If additional moneys are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first step has been completed, the Special Tax A shall be levied Proportionately on each  Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax A for  Approved Property;    Third: If additional monies are needed to satisfy the Special Tax A Requirement for a Tax Zone  after the first two steps has been completed, the Special Tax A shall be levied Proportionately on all  Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum Special  Tax A for Undeveloped Property.  2.  Special Tax B (Contingent)  Commencing with Fiscal Year in which Special Tax B (Contingent) is authorized to be levied and for  each following Fiscal Year, the City Council shall determine the Contingent Special Tax B (Contingent)  Requirement for each Tax Zone, if any, and shall levy the Special Tax on all Assessor’s Parcels of  24.d Packet Pg. 696 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 9  Community Facilities District No. 2019‐1 (Maintenance Services)   Taxable Property within such Tax Zone until the aggregate amount of Special Tax B (Contingent) equals  the Special Tax B ( Contingent) Requirement for such Tax Zone.  The Special Tax B (Contingent) Shall  be levied for each Fiscal Year as follows:    First: The Special Tax shall be levied Proportionately on all Assessor’s Parcels of Developed  Property for a Tax Zone up to 100% of the applicable Maximum Special Tax B (Contingent) to satisfy  the Contingent Special Tax B Requirement;    Second: If additional moneys are needed to satisfy the Contingent Special Tax B Requirement after  the first step has been completed, the Special Tax B (Contingent) shall be levied Proportionately on  each Parcel of Approved Property within such Tax Zone up to 100% of the Maximum Special Tax B  (Contingent) for Approved Property;    Third: If additional monies are needed to satisfy the Contingent Special Tax B Requirement after  the first two steps has been completed, the Special Tax B (Contingent) shall be levied Proportionately  on all Assessor’s Parcels of Undeveloped Property within such Tax Zone up to 100% of the Maximum  Special Tax B (Contingent) for Undeveloped Property.      E. FUTURE ANNEXATIONS  It is anticipated that additional properties will be annexed to CFD No. 2019‐1 from time to time.  As  each annexation is proposed, an analysis will be prepared to determine the annual cost for providing  Services.  Based on this analysis, the property to be annexed, pursuant to California Government Code  section 53339 et seq. will be assigned to the appropriate Maximum Special Tax rate for the Tax Zone  when annexed and included in Appendix A.    F. DURATION OF SPECIAL TAX   For each Fiscal Year, the Special Tax A shall be levied as long as the Services are being provided.  For each Fiscal Year, the Special Tax B (Contingent) shall be levied as long as the Contingent Services  are being provided.    G. EXEMPTIONS    The City shall classify as Exempt Property within CFD No. 2019‐1, any Assessor’s Parcels; (i) which are  owned by, irrevocably offered for dedication, encumbered by or restricted in use by any public entity;  (ii) with public or utility easements making impractical their utilization for other than the purposes set  forth in the easement; (iii) which are privately owned but are encumbered by or restricted solely for  public uses; or (iv) which is in use in the performance of a public function as determined by the  Administrator.     H. APPEALS   Any property owner claiming that the amount or application of the Special Taxes are not correct may  file a written notice of appeal with the City not later than twelve months after having paid the first  installment of the Special Tax that is disputed.  A representative(s) of CFD No. 2019‐1 shall promptly  review the appeal, and if necessary, meet with the property owner, consider written and oral evidence  regarding the amount of the Special Tax, and rule on the appeal.  If the representative’s decision  requires that the Special Tax for an Assessor’s Parcel be modified or changed in favor of the property  owner, a cash refund shall not be made, but an adjustment shall be made to the Special Tax on that  Assessor’s Parcel in the subsequent Fiscal Year(s).    24.d Packet Pg. 697 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 10  Community Facilities District No. 2019‐1 (Maintenance Services)      I. MANNER OF COLLECTION   The Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem  property taxes, provided, however, that CFD No. 2019‐1 may collect the Special Tax at a different time  or in a different manner if necessary to meet its financial obligations.     24.d Packet Pg. 698 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 11  Community Facilities District No. 2019‐1 (Maintenance Services)   APPENDIX A    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)                  COST ESTIMATE  Special Tax A Services ‐ The estimate breaks down the costs of providing one year's maintenance  services for Fiscal Year 2020‐21.  These services are being funded by the levy of Special Tax A for  Community Facilities District No. 2019‐1.  TAX ZONE 5   TRACT NO. 20006    Item Description Estimated Cost  1 Landscaping $22,133  2 Lighting $2,161  3 Streets $7,364  4 Parks $3,835  5 Graffiti $657  6 Reserves $1,155  7 Admin $3,615  Total  $40,920    Special Tax B Contingent Services – The estimate in the table below breaks down the costs of  providing one year’s contingent maintenance services for Fiscal Year 2020‐21. If necessary, these  services will be funded by the levy of Special Tax B (Contingent) for Community Facilities District  No. 2019‐1 Tax Zone 5.   TAX ZONE 5 (CONTINGENT SERVICES)   TRACT NO. 20006    Item Description Estimated Cost  1 Drainage $6,194  Total  $6,194    TAX ZONE 5  FY 2020‐21 MAXIMUM SPECIAL TAX RATES  DEVELOPED PROPERTY AND APPROVED PROPERTY     Land Use   Category  Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Single Family Residential RU $344 $57  Multi‐Family Residential RU $344 $57  Non‐Residential Property Acre $2,315 $385  24.d Packet Pg. 699 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 12  Community Facilities District No. 2019‐1 (Maintenance Services)   TAX ZONE 2  FY 2020‐21 MAXIMUM SPECIAL TAX RATES   UNDEVELOPED PROPERTY    Taxable   Unit  Maximum   Special Tax A  Maximum   Special Tax B  Acre $2,315 $385      24.d Packet Pg. 700 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 13  Community Facilities District No. 2019‐1 (Maintenance Services)   TAX ZONE SUMMARY      Annexation  Tax  Zone  Tract  APN  Fiscal  Year  Maximum  Special Tax A  Maximum  Special Tax B    Subdivider  Original 1 17170 2019‐20 $961 / RU $0 / RU Santiago Communities, Inc.  1 2 17329 2019‐20 $473 / RU $0 / RU JEC Enterprises, Inc.  2 3 PM 19814 2020‐21 $608 / Acre $0 / Acre GWS #4 Development, LLC  3 4 0266‐041‐39 2019‐20 $1,136/ Acre $0/ Acre Devore Storage Facility, LLC  4 5 TR 20006 2020‐21 $344/ RU $57/ RU TH Rancho Palma, LLC      ESCALATION OF MAXIMUM SPECIAL TAXES  On each July 1, commencing on July 1, 2021 the Maximum Special Tax shall increase by i) the  percentage increase in the Consumer Price Index (All Items) for Los Angeles ‐ Riverside ‐ Orange  County (1982‐84 = 100) since the beginning of the preceding Fiscal Year, or ii) by two percent  (2.0%), whichever is greater.  24.d Packet Pg. 701 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 14  Community Facilities District No. 2019‐1 (Maintenance Services)   APPENDIX B    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)           DESCRIPTION OF AUTHORIZED SERVICES    The services which may be funded with proceeds of the special tax of CFD No. 2019‐1, as provided by  Section 53313 of the Act, will include all costs attributable to maintaining, servicing, cleaning, repairing  and/or replacing landscaped areas (may include reserves for replacement) in public street right‐of‐ways,  public landscaping, public open spaces and other similar landscaped areas officially dedicated for public  use. These services including the following:  (a)    maintenance and lighting of parks, parkways, streets, roads and open space, which  maintenance and lighting services may include, without limitation, furnishing of electrical power to street  lights and traffic signals; repair and replacement of damaged or inoperative light bulbs, fixtures and  standards; maintenance (including irrigation and replacement) of landscaping vegetation situated on or  adjacent to parks, parkways, streets, roads and open space; maintenance and repair of irrigation facilities;  maintenance of public signage; graffiti removal from and maintenance and repair of public structures  situated on parks, parkways, streets, roads and open space; maintenance and repair of playground or  recreation program equipment or facilities situated on any park; and    (b)  maintenance and operation of water quality improvements which include storm drainage  and flood protection facilities, including, without limitation, drainage inlets, catch basin inserts, infiltration  basins, flood control channels, fossil fuel filters, and similar facilities.  Maintenance services may include  but is not limited to the repair, removal or replacement of all or part of any of the water quality  improvements, fossil fuel filters within the public right‐of‐way including the removal of petroleum  hydrocarbons and other pollutants from water runoff, or appurtenant facilities, clearing of inlets and  outlets; erosion repairs; and cleanup to improvements, and other items necessary for the maintenance,  servicing; or both of the water quality basin improvements within flood control channel improvements;  and    (c)  public street sweeping, on the segments of the arterials within the boundaries of CFD No.  2019‐1; as well as local roads within residential subdivisions located within CFD No. 2019‐1; and any  portions adjacent to the properties within CFD No. 2019‐1; and    In addition to payment of the cost and expense of the forgoing services, proceeds of the special tax may  be expended to pay “Administrative Expenses,” as said term is defined in the Rate and Method of  Apportionment.   The above services shall be limited to those provided within the boundaries of CFD No. 2019‐1 or for the  benefit of the properties within the boundaries of CFD No. 2019‐1, as the boundary is expanded from time  to time by anticipated annexations, and said services may be financed by proceeds of the special tax of  CFD No. 2019‐1 only to the extent that they are in addition to those provided in the territory of CFD No.  2019‐1 before CFD No. 2019‐1 was created.                24.d Packet Pg. 702 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution City of San Bernardino 15  Community Facilities District No. 2019‐1 (Maintenance Services)     APPENDIX C    CITY OF SAN BERNARDINO  COMMUNITY FACILITIES DISTRICT NO. 2019‐1 (MAINTENANCE SERVICES)  PROPOSED BOUNDARIES AND POTENTIAL ANNEXATION AREA BOUNDARIES    24.d Packet Pg. 703 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit C - Rate and Method of Apportionment (6756 : Resolution 5IRVINGTON AVEMAGNOLIA AVECABLECREEKCHANNELLITTLE LEAGUE DR0261-181-170261-181-16ANNEXATION MAP NO. 4COMMUNITY FACILITIES DISTRICT NO. 2019-1(MAINTENANCE SERVICES)CITY OF SAN BERNARDINOCOUNTY OF SAN BERNARDINO, STATE OF CALIFORNIASHEET 1 OF 1 SHEETI HEREBY CERTIFY THAT THE WITHIN MAP SHOWING PROPOSEDBOUNDARIES OF COMMUNITY FACILITIES DISTRICT 2019-1(MAINTENANCE SERVICES) FOR THE CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, WASAPPROVED BY THE CITY COUNCIL OF THE CITY OF SANBERNARDINO AT A REGULAR MEETING THEREOF, HELDON THE ____ DAY OF ____________________, 20 ____. BY ITS RESOLUTION NO. ____________________ _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO FILED IN THE OFFICE OF THE CITY CLERK THIS _____ DAY OF________, 20 ____. _________________________________________ CITY CLERK, CITY OF SAN BERNARDINO CFD 2019-1TAX ZONE 5^_THIS ANNEXATION MAP CORRECTY SHOWS THE LOT ORPARCEL OF LAND INCLUDED WITHIN THE BOUNDARIES OFTHE COMMUNITY FACILITIES DISTRICT. FOR DETAILSCONCERNING THE LINES AND DIMENSIONS OF LOTS ORPARCEL REFER TO THE COUNTY ASSESSOR MAPS FORFISCAL YEAR 2019-20. -LEGEND ANNEXATION AREA BOUNDARYPARCEL LINECITY BOUNDARYXXXX-XXX-XX ASSESSOR PARCEL NUMBER 5 TAX ZONETHIS MAP SHOWS THE BOUNDARIES OF AREAS TO BEANNEXED TO COMMUNITY FACILITIES DISTRICT NO. 2019-1(MAINTENANCE SERVICES), OF THE CITY OF SANBERNARDINO, COUNTY OF SAN BERNARDINO, STATE OFCALIFORNIA. THE BOUNDARIES OF WHICH COMMUNITY FACILITIESDISTRICT ARE SHOWN AND DESCRIBED ON THE MAPTHEREOF WHICH WAS PREVIOUSLY RECORDED ONJUNE 6, 2019 IN BOOK 88 OF MAPS OF ASSESSMENTAND COMMUNITY FACILITIES DISTRICT AT PAGE 32 ANDAS INSTRUMENT NO. 2019-0185323 IN THE OFFICE OF THECOUNTY RECORDER OF THE COUNTY OF SAN BERNARDINO,STATE OF CALIFORNIA. THIS MAP WAS FILED UNDER DOCUMENT NUMBER_____________, THIS ____ DAY OF _______, 20 ____, AT_____ M. IN BOOK ___ OF __________ AT PAGE ____, ATTHE REQUEST OF _____________________________IN THE AMOUNT OF $_________ BOB DUTTON ASSESSOR-RECORDER-CLERK COUNTY OF SAN BERNARDINO BY:________________________________ DEPUTY RECORDER 24.ePacket Pg. 704Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit D - Boundary Maps 24.ePacket Pg. 705Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit D - Boundary Maps PETITION TO THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO REQUESTING ANNEXING TERRITORY INTO COMMUNITY FACILITIES DISTRICT NO. 2019-1 OF PROPERTY THE CITY OF SAN BERNARDINO AND A WAIVER WITH RESPECTS TO CERTAIN PROCEDURAL MATTERS UNDER THE MELLO-ROOS COMMUNITY FACILITIES ACT OF 1982 AND CONSENTING TO THE LEVY OF SPECIAL TAXES THEREON TO PAY THE COSTS OF SERVICES TO BE PROVIDED BY THE COMMUNITY FACILITIES DISTRICT 1. The undersigned requests that the City Council of the City of San Bernardino, initiate and conduct proceedings pursuant to the Mello-Roos Community Facilities Act of 1982 (the “Act”) (Government Code Section 53311 et seq.), to annex territory into Community Facilities District No. 2019-1 (Maintenance Services) (the “Community Facilities District”) of the property described below and consents to the annual levy of special taxes on such property to pay the costs of services to be provided by the Community Facilities District. 2. The undersigned requests that the community facilities district provide any services that are permitted under the Act including, but not limited to, all necessary service, operations, administration and maintenance required to keep landscape lighting, street lighting, flood control facilities, ground cover, shrubs, plants and tree, irrigation systems, graffiti removal, sidewalks and masonry walls, fencing entry monuments, tot lot equipment and associated appurtenant facilities within the district in a healthy, vigorous and satisfactory working condition. 3. The undersigned hereby certifies that as of the date indicated opposite its signature, it is the owner of all the property within the proposed boundaries of the Community Facilities District described in Exhibit A hereto and as shown on the map Exhibit B hereto. 4. The undersigned requests that a special election be held under the Act to authorize the special taxes for the proposed community facilities district. The undersigned waives any requirement for the mailing of the ballot for the special election and expressly agrees that said election may be conducted by mailed or hand-delivered ballot to be returned as quickly as possible to the designated election official, being the office of the City Clerk and the undersigned request that the results of said election be canvassed and reported to the City Council at the same meeting of the City Council as the public hearing on the creation of the Community Facilities District or at the next available meeting. 5. Pursuant to Sections 53326(a) and 53327(b) of the Act, the undersigned expressly waives all applicable waiting periods for the election and waives the requirement for analysis and arguments relating to the special election, and consents to not having such materials provided to the landowner in the ballot packet, and expressly waives any requirements as to the form of the ballot. The undersigned expressly waives all notice requirements relating to hearings and special elections (except for published notices required by the Act), and whether such requirements are found in the California Elections Code, the California Government Code or other laws or procedures, including but not limited to any notice provided for by compliance with the provisions of Section 4101 of the California Elections Code. 6. The undersigned hereby consents to and expressly waives any and all claims based on any irregularity, error, mistake or departure from the provisions of the Act or other laws of the State and any and all laws and requirements incorporated therein, and no step or action in any proceeding relative to annexing territory into Community Facilities District No. 2019-1 of the portion of the incorporated area of the City of San Bernardino or the special election therein shall be invalidated or affected by any such irregularity, error mistake or departure. DocuSign Envelope ID: 1AEB409F-BB80-4C80-B1E6-140ED3117F8F 24.f Packet Pg. 706 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit E - Petition (6756 : Resolution Declaring Intent to Annex IN WITNESS WHEREOF, I hereunto set my hand this ____ day of __________, 20___. TH RANCHO PALMA, LLC a Delaware limited liability Company By: TH Rancho Palma, LLC By:_____________________ Name: Richard P. Douglass Title: Authorized Agent OWNER'S PROPERTY: TRACT MAP OR PARCEL MAP NO. or PROJECT NO. 20006 OWNER'S MAILING ADDRESS: 450 Newport Center Dr, Suite 300 Newport Beach, CA 92660 FILED IN THE OFFICE OF THE CITY CLERK OF THE CITY COUNCIL OF THE CITY OF SAN BERNARDINO THIS ____ DAY OF __________, 20___. ______________________________ City Clerk of the City Council of the City of San Bernardino 7 April 20 DocuSign Envelope ID: 1AEB409F-BB80-4C80-B1E6-140ED3117F8F 24.f Packet Pg. 707 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit E - Petition (6756 : Resolution Declaring Intent to Annex Acknowledgment Regarding Property to be Included into Community Facilities District No. _____ The developer/property owner of Tract No. 20006 and Assessor’s Parcel Nos. 0261-181-16-0000, 0261-181- 17-0000 hereby acknowledges that: If the landscaping, drainage, lighting and eligible public improvements within the Community Facilities District No. ____ the maintenance areas of Assessor’s Parcel Nos. 0261-181-16-0000, 0261-181-17-0000, which are to be included in the Community Facilities District No. ____ of the City of San Bernardino are completed prior to the levy and collection of special taxes upon property within said tract for the maintenance of such landscape and improvements, the developer/property owner will continue to be responsible for and will maintain the landscaping, drainage, lighting, and eligible public improvements within such maintenance areas at its sole expense, and the City will not assume responsibility for the maintenance of such landscaping, drainage, lighting and eligible public improvements until such time as the City is able to collect such special taxes to pay the costs of the maintenance of such landscaping, drainage, lighting, and eligible public improvements. DATED: OWNER: ___________________ ________________________________ Richard P. Douglass ________________________________ (Signature) ________________________________ Authorized Agent TH Rancho Palma LLC DocuSign Envelope ID: 1AEB409F-BB80-4C80-B1E6-140ED3117F8F 4/7/2020 24.f Packet Pg. 708 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit E - Petition (6756 : Resolution Declaring Intent to Annex EXHIBIT F NOTICE OF PUBLIC HEARING ON INTENTION TO ANNEX TERRITORY TO AN EXISTING COMMUNITY FACILITIES DISTRICT 2019-1 (MAINTENANCE SERVICES) (ANNEXATION NO. 4) NOTICE IS HEREBY GIVEN that the City Council of the City of San Bernardino on June 17, 2020, adopted its Resolution No. 2020-___, in which it declared its intention to annex territory to existing Community Facilities District No. 2019-1 (Maintenance Services) (the "CFD No. 2019-1"), and to levy a special tax to pay for certain maintenance services, all pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982, Chapter 2.5, Part 1, Division 2, Title 5 of the California Government Code. The resolution describes the territory to be annexed and describes the rate and method of apportionment of the proposed special tax. No change in the tax levied in the existing CFD No. 2019-1 is proposed. NOTICE IS HEREBY FURTHER GIVEN that the City Council has fixed 7:00 p.m., or as soon thereafter as practicable, Wednesday, August 5, 2020 at the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, as the time and place when and where the City Council will conduct a public hearing on the annexation of territory to CFD No. 2019-1. At the hearing, the testimony of all interest persons for or against the annexation of the territory or the levying of the special taxes will be heard. If and to the extent participation in the August 5, 2020 meeting must occur by teleconference, videoconference, or other electronic means authorized by the Ralph M. Brown Act or an Executive Order of the Governor of California, the means and methods for participating the meeting shall be posted on the Agenda for said meeting, which shall be posted at least 72 hours prior to the meeting on the City of San Bernardino (www.sbcity.org), and outside of the Bing Wong Auditorium of the Norman F. Feldheym Public Library at 555 W. 6th Street, San Bernardino, California, 92418. A copy of the Agenda will be made available upon request to the San Bernardino City Clerk's office at 909-384-5002. DATED: ____________, 2020 _________________________________________ City Clerk of the City of San Bernardino PUB: _______________, 2020   24.g Packet Pg. 709 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit F - Notice of Public Hearing (6756 : Resolution Declaring EXHIBIT G CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 4 (August 5, 2020) This ballot is for the use of the authorized representative of the following owner of land within Community Facilities District No. 2019-1 (Maintenance Services) (“CFD No. 2019-1”) of the City of San Bernardino: Name of Landowner Number of Acres Owned Total Votes TH Rancho Palma, LLC 28.34 29 According to the provisions of the Mello-Roos Community Facilities Act of 1982, and resolutions of the City Council (the “Council”) of the City of San Bernardino (the “City”), the above-named landowner is entitled to cast the number of votes shown above under the heading “Total Votes,” representing the total votes for the property owned by said landowner. The City has sent the enclosed ballot to you so that you may vote on whether or not to approve the special tax. This special tax ballot is for the use of the property owner of the parcels identified below, which parcels are located within the territory proposed to form the CFD No. 2019-1, City of San Bernardino, County of San Bernardino, State of California. Please advise the City Clerk, at (909) 384-5002 if the name set forth below is incorrect or if you are no longer one of the owners of these parcels. This special tax ballot may be used to express either support for or opposition to the proposed special tax. To be counted, this special tax ballot must be signed below by the owner or, if the owner is not an individual, by an authorized representative of the owner. The ballot must then be delivered to the City Clerk, either by mail or in person, as follows: Mail Delivery: If by mail, place ballot in the return envelope provided, and mail no later than July 22, 2020, two calendar weeks prior to the date set for the election. Mailing later than this deadline creates the risk that the special tax ballot may not be received in time to be counted. Personal Delivery: If in person, deliver to the City Clerk at any time up to 7:00 p.m. on August 5, 2020, at the Clerk’s office at 201 N. “E” Street, Bldg A, City of San Bernardino, CA 92401. However delivered, this ballot must be received by the Clerk prior to the close of the public meeting on August 5, 2020. Very truly yours, Genoveva Rocha, CMC, Acting City Clerk 24.h Packet Pg. 710 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit G - Ballot (6756 : Resolution Declaring Intent to Annex   TO CAST THIS BALLOT, PLEASE RETURN THIS ENTIRE PAGE. OFFICIAL SPECIAL TAX BALLOT Name & Address of Property Owner: Assessor’s Parcel Number(s): TH Rancho Palma, LLC Attn: Richard P. Douglass 450 Newport Center Drive, Suite 300 Newport Beach, CA 92660 0261-181-16 0261-181-17 CITY OF SAN BERNARDINO COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA COMMUNITY FACILITIES DISTRICT NO. 2019-1 (MAINTENANCE SERVICES) AN “X” OR OTHER MARK WILL CAST ALL VOTES ASSIGNED TO THIS BALLOT SPECIAL TAX BALLOT MEASURE MARK “YES” OR “NO” WITH AN “X”: Shall the City Council of the City of San Bernardino be authorized to levy a special tax on an annual basis at the rates and apportioned as described in Exhibit B to the Resolution Declaring its Intention to Annex territory to Community Facilities District No. 2019-1 (Maintenance Services) adopted by the City Council on June 17, 2020 (the “Resolution”), which is incorporated herein by this reference, within the territory identified on the map entitled “Annexation Map No. 4 of Community Facilities District No. 2019-1 (Maintenance Services) City of San Bernardino” to finance certain services as set forth in Section 4 to the Resolution (including incidental expenses), and shall an appropriation limit be established for the Community Facilities District No. 2019-1 (Maintenance Services) in the amount of special taxes collected? YES _________ NO _________ Certification for Special Election Ballot The undersigned is an authorized representative of the above-named landowner and is the person legally authorized and entitled to cast this ballot on behalf of the above-named landowner. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct and that this declaration is executed on ____________, 20__.        TH Rancho Palma, LLC, a Delaware limited liability company By: Richard P. Douglass Authorizing Agent Trumark Homes Signature Print Name Title   24.h Packet Pg. 711 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 1 - Exhibit G - Ballot (6756 : Resolution Declaring Intent to Annex PROJECT MAP CFD NO. 2019-1 (MAINTENANCE SERVICES) ANNEXATION NO. 4 - TAX ZONE 5   24.iPacket Pg. 712Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 2 - Project Location Map (6756 : PARCEL 1PARCEL 2MAINTENANCE EXHIBIT 24.j Packet Pg. 713 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 3 - CFD Landscape Maintenance Exhibit (6756 : Resolution Declaring Intent to Annex Territory Community Facilities District No. 2019-1) MAINTENANCE EXHIBIT 24.j Packet Pg. 714 Attachment: PW. CFD 2019-1, Annexation No. 4 - Resolution - Attachment 3 - CFD Landscape Maintenance Exhibit (6756 : Resolution Declaring Intent to Annex Territory Community Facilities District No. 2019-1) Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Cooperative Agreement with the City of Highland and SB County for ATP Cycle 5 Grant Program Recommendation Adopt Resolution No. 2020-113 of the Mayor and City Council of the City of San Bernardino, California, approving a Cooperative Agreement with the City of Highland and San Bernardino County for the submission of a Grant Application to the Active Transportation Cycle 5 Grant Program for the Highland/San Bernardino Bi -City Bikeway and Walkway Connector (Project) and authorizing the Director of Finance to record a budget adjustment in Local Circulation Development Impact Fee (DIF) Fund No. 263 in the amount of $23,000 in support of the application preparation. Background The Active Transportation Program was created by Senate Bill 99 in 2013 and subsequently expanded to Senate Bill 1 (SB 1) in April 2017 to encourage increased use of active modes of transportation, such as walking and biking. On March 26, 2020, the California Department of Transportation announced the next rounds of the Active Transportation Program (ATP) Cycle 5. The amount of funding available for the cycle is $440 million. The grant is intended to increase the proportion of walking and biking trips to reduce greenhouse emissions, enhance public health , and provide benefits to disadvantage communities. The purpose of ATP funding is to encourage increased use of active modes of transportation and to achieve the following goals: Increase the proportion of trips accomplished by biking and walking Increase safety and mobility for non-motorized users Advance the active transportation efforts of regional agencies to achieve greenhouse gas (GHG) reduction goals Enhance public health Ensure that disadvantaged communities fully share in the benefits of the program Provide a broad spectrum of projects to benefit many types of active transportation users 25 Packet Pg. 715 6774 Page 2 The cities of San Bernardino and Highland, in partnership with San Bernardino County, have been working together to establish a regional active transportation project to improve active transportation options between schools within the San Bernardino City Unified School District. The ATP Cycle 5 Grant Program provides an opportunity for the agencies to leverage funding to support the regional project. Discussion The project is located within the San Bernardino City Unified School District (SBCUSD). The SBCUSD includes a total of 72 schools. This project will provide direct connection among twenty-two of those schools including fourteen elementary schools, two middle schools, four high schools, one continuation school, and one special education school. The proposed ATP 5 project application will provide multi-agency participation improvements as follows: o Improved efficiency of multi-modal transportation system o Improved connectivity with California State University San Bernardino throughout the City of San Bernardino o Improvement to nine routes listed in the SBCTA Non -Motorized Transportation Plan o Construction of 12 miles of continuous bikeways/walkways o Incorporate road diet and modern traffic safety improvements along the route The City of Highland is the lead agency on this project. Highland is requesting that the attached Cooperative Agreement, establishing the responsibilities of both the City of San Bernardino and San Bernardino County, be approved by the City. The preliminary cost estimates for the full project is $17,532,805. Through the ATP Cycle 5 Grant Program $1,284,903 of the project costs are estimated to be eligible for reimbursement. Non-eligible for pavement rehabilitation is estimated in the amount of $4,503,774. The proposed Cooperative Agreement is requested to financially support the preparation and submission of the ATP Cycle 5 Grant Program in a collective amount of $50,000, of which $23,000 is the City of San Bernardino’s cost share. This agreement does not commit any of the agencies to any work or resources beyond the preparation and submission of the grant application. The application due date for ATP Cycle 5 is June 15, 2020. The SBCUSD is in support of this project. In addi tion, Southern California Association of Governments (SCAG) Metropolitan Planning Organization (MPO), which represents 6 counties and 191 cities, as well as San Bernardino County Transportation Authority, have indicated their support this project. 2020-2025 Key Strategic Targets and Goals This project aligns with Key Target No. 1c: Create a framework for spending decisions. By partnering with the City of Highland and County of San Bernardino, the City is able to take advantage of shared costs for grant p reparation and submission. If the project is awarded funding, it will provide the City with an opportunity to comprehensively evaluate 25 Packet Pg. 716 6774 Page 3 the fiscal impacts and determine the level of priority for moving forward with the project expenditure decision. Fiscal Impact No General Fund impact. Funding for the grant application submission will require an appropriation in the amount of $23,000 from Local Circulation DIF Fund No. 263 fund balance to Highland/San Bernardino Bi-City Bikeway and Walkway Connector (Project) Fund No. 263-160-8752-5502. The current available fund balance in the Local Circulation DIF Fund is $159,100. No General Fund appropriations are required for the grant application work. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, adopt Resolution No. 2020-113, approving a Cooperative Agreement with the City of Highland and San Bernardino County for the submission of a Grant Application to the Active Transportation Cycle 5 Grant Program for the Highland/San Bernardino Bi- City Bikeway and Walkway Connector (Project) and authorizing the Director of Finance to record a budget adjustment in Local Circulation Development Impact Fee (DIF) Fund No. 263 in the amount of $23,000 in support of the application preparation. Attachments Attachment 1 Resolution No. 2020-113; Exhibit A - Agreement Ward: 1, 2, 4, 5, 7 Synopsis of Previous Council Actions: None 25 Packet Pg. 717 RESOLUTION NO. 2020-113 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A COOPERATIVE AGREEMENT WITH THE CITY OF HIGHLAND AND SAN BERNARDINO COUNTY FOR SUBMISSION OF A GRANT APPLICATION TO THE ACTIVE TRANSPORTATION CYCLE 5 GRANT PROGRAM FOR THE HIGHLAND/SAN BERNARDINO BI- CITY BIKEWAY AND WALKWAY CONNECTOR (PROJECT) AND AUTHORIZING THE DIRECTOR OF FINANCE TO RECORD A BUDGET ADJUSTMENT IN LOCAL CIRCULATION DEVELOPMENT IMPACT FEE (DIF) FUND NO. 263 IN THE AMOUNT OF $23,000 IN SUPPORT OF THE APPLICATION PREPARATION WHEREAS, the City of Highland, the City of San Bernardino and the County of San Bernardino (“Parties”) wish to work cooperatively in the preparation of a grant application to secure funding from the Cycle 5 Active Transportation Program (ATP) for development and construction of a bikeway and walkway facilities project entitled Highland/San Bernardino Bi- City Bikeway and Walkway Connector (Project); and WHEREAS, the total cost of the project is preliminarily estimated at $ 17,532,805, of which, $12,849,031 is eligible for grant reimbursements through the ATP Cycle 5 Grant Program; and WHEREAS, the Parties desire to enter into a Cooperative Agreement (“Agreement”) to financially support the preparation and submission of the ATP Cycle 5 Grant Program in a collective amount of $50,000, of which $23,000 is the City of San Bernardino’s cost share; and WHEREAS, this Agreement does not commit any of the Parties to any work or resources beyond the preparation and submission of the grant application. 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, on behalf of the City, Cooperative Agreement with the City of Highland and San Bernardino County, incorporated and attached herein as Exhibit “A”. SECTION 3. The Director of Finance is hereby authorized and directed to record a budget adjustment in the amount of $23,000 from Local Circulation Fund (Fund 263) for the City of San Bernardino’s share of the preparation of an ATP - Cycle 5 application. 25.a Packet Pg. 718 Attachment: PW.Third-Party Coop Agreement for ATP Cycle 5.Att1 - Resolution (6774 : Cooperative Agreement with the City of Highland and Resolution No. 2020-113 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 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 Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney 25.a Packet Pg. 719 Attachment: PW.Third-Party Coop Agreement for ATP Cycle 5.Att1 - Resolution (6774 : Cooperative Agreement with the City of Highland and Resolution No. 2020-113 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk 25.a Packet Pg. 720 Attachment: PW.Third-Party Coop Agreement for ATP Cycle 5.Att1 - Resolution (6774 : Cooperative Agreement with the City of Highland and 1 AGREEMENT between City of Highland, City of San Bernardino and County of San Bernardino for GRANT APPLICATION to the Active Transportation Cycle 5 Grant Program to fund development of the HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR This AGREEMENT is made by and between the City of Highland (HIGHLAND), the City of San Bernardino (SAN BERNARDINO) and the County of San Bernardino (COUNTY), sometimes individually referred to as a PARTY and, collectively referred to as the PARTIES. Whereas, HIGHLAND, SAN BERNARDINO and COUNTY wish to work cooperatively in the preparation of a GRANT APPLICATION to secure funding from the Cycle 5 Active Transportation Program (ATP) for development and construction of a bikeway and walkway facilities project entitled HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR (PROJECT); and Whereas, the project description, scope and location are shown in Attachments “A” and “B”; Whereas, HIGHLAND will be the Lead Agency and SAN BERNARDINO and COUNTY will be Partnering Agencies in the PROJECT; and Whereas, the PARTIES desire to implement this effort on a cost-shared basis in a manner deemed most efficient and effective to the PARTIES; Whereas, the PROJECT includes bikeway and walkway components that are eligible for grant reimbursements and pavement rehabilitation that is not eligible for grant reimbursements; and Whereas, a preliminary cost estimate indicates that development of the portion of the PROJECT that is eligible for grant reimbursements may cost $12,849,031, the non-eligible portion which consists of pavement rehabilitation may cost $4,503,774, for a total preliminary cost estimate of $17,532,805; and Whereas, assuming a 10% match to the grant eligible portion of PROJECT, the estimated local match cost would be approximately $1,284,903, ($461,107 HIGHLAND, $705,979 SAN BERNARDINO, $117,818 COUNTY); and Whereas, the non-eligible portion of the PROJECT funded by 100% local funds for pavement rehabilitation in the motorized vehicular travel lanes, would be approximately $4,503,774 ($2,158,991 HIGHLAND, $1,972,949 SAN BERNARDINO, $371,834 COUNTY); and Whereas, the total estiamted development cost of the PROJECT to the PARTIES (grant eligible and non-eligible) would be $5,788,678 (HIGHLAND $2,620,098, SAN BERNARDINO $2,678,928, and COUNTY $489,652); and Whereas, based on total estimated development costs (eligible and non-eligible), HIGHLAND’s proportional share of the HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR is 45%, SAN BERNARDINO’s proportional share is 46%, and the COUNTY’s proportional share is 9%; and 25.b Packet Pg. 721 Attachment: PW.Third-Party Coop Agreement for ATP Cycle 5.Att1A - Agreement (6774 : Cooperative Agreement with the City of Highland and 2 Now therefore, in consideration of the mutual covenants contained herein, the PARTIES agree as follows: Section 1 – Purpose. The purpose of this agreement is to formalize a commitment by the PARTIES to financially support preparation of the ATP Cyle 5 Grant Application. This is a cost-sharing Agreement only, and does not commit any of the PARTIES to any work or resources beyond preparation of the grant application which is due June 15, 2020 and as outlined herein. Section 2 – Administration. This Agreement will be administered by HIGHLAND, by designee of the City Manager. HIGHLAND will manage preparation of the Grant Application and provide progress reports to the other PARTIES. HIGHLAND will retain consultants to provide support data, organize stakeholders, lead public outreach efforts, prepare and submit final grant application documents as required by the grant program, be the single point of contact with the grant program administrator, and be responsible for obtaining and/or submitting all forms, reports, correspondence, etc., either from or to the grant program as may become necessary, and include SAN BERNARDINO and COUNTY in the PROJECT’s development team meetings and related communications on the Grant Application. Section 3 Funding – Each Party hereby commits to provide funding as set forth below: (a) City of Highland $22,500 (b) City of San Bernardino $23,000 (c) County of San Bernardino $4,500 The PARTIES acknowledge that final Grant Application costs may ultimately exceed the current estimate of costs. Any additional administrative cost resulting from PROJECT scope of work changes shall not exceed 10% of the estimate herein, and be borne by each Party in proportion to where the work actually lies (based on jurisdiction). SAN BERNARDINO AND COUTY will pay its proportional share of actual time-and-material of administrative costs within 30 days of invoice receipt, even if grant funding is denied. Section 3 – Termination. Except as set forth above, this Agreement may be terminated or modified only by unanimous written consent of each Party signed hereto. Section 4 – Term of Agreement. This Agreement is effective upon execution of the Agreement by the PARTIES through December 31, 2020. In Witness Whereof, the PARTIES have signed this Agreement as of the day and year written below. City of Highland __________________________________________________________ Joseph Hughes, City Manager Date City of San Bernardino __________________________________________________________ John Valdivia , Mayor Date County of San Bernardino __________________________________________________________ Gerry Newcombe, Director of Public Works Date 25.b Packet Pg. 722 Attachment: PW.Third-Party Coop Agreement for ATP Cycle 5.Att1A - Agreement (6774 : Cooperative Agreement with the City of Highland and ATTACHMENT “A” PROJECT DESCRIPTION GRANT APPLICATION preparation to the ATP for grant funding to develop the HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR, including meetings, public outreach, data collection, communications, consultations, mapping, exhibits, cost estimating, data analysis, grant writing, submittals, program coordination, and any and all efforts directly related to the HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR GRANT APPLICATION(S). The HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR is intended to close the gaps between the non-motorized transportation networks in the cities of Highland and San Bernardino (see attached Vicinity Map), and will include bikeway and/or sidewalk improvements along the following alignments in the Cities of Highland and San Bernardino and the County of San Bernardino. 1. Northpark Blvd (University Drive to Electric Avenue) 2. Electric Avenue (Northpark Blvd to Mountain View Avenue) 3. Mountain View Avenue (Electric Avenue to Parkdale Drive) 4. Parkdale Drive (Mountain View Avenue to Valencia Avenue) 5. Valencia Avenue (Parkdale Drive to 21st Street) 6. 21st Street (Valencia Avenue to Perris Hill Park Road) 7. Perris Hill Park Road (21st Street to Pacific Street) 8. Pacific Street (Perris Hill Park Road to Del Rosa Drive) 9. Pacific Street (Del Rosa Drive to Boulder Avenue) 10. Del Rosa Drive (3rd Street to Pacific Street) 11. Palm Avenue (Base Line to Piedmont Drive) PROJECT SCOPE The PROJECT involves preparation of a GRANT APPLICATION to the ATP for grant funding to develop the HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR, including: Meetings, public outreach, data collection, communications, consultations, mapping, exhibits, cost estimating, data analysis, grant writing, submittals, program coordination, and any and all efforts directly relatated to the HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR GRANT APPLICATION). AGENCY SHARES BASED ON TOTAL PROJECT COST AGENCY Eligible Project Cost Non-Eligible Pavement Rehab TOTAL COST Total Project Share % COSB 705,979$ 1,972,949$ 2,678,928$ 46.28% SBCo 117,818$ 371,834$ 489,652$ 8.46% COH 461,107$ 2,158,991$ 2,620,098$ 45.26% ATP 11,564,128$ -$ 11,564,128$ TOTALS:12,849,031$ 4,503,774$ 17,352,805$ 25.b Packet Pg. 723 Attachment: PW.Third-Party Coop Agreement for ATP Cycle 5.Att1A - Agreement (6774 : Cooperative Agreement with the City of Highland and ATTACHMENT “B” PROJECT VICINITY MAP HIGHLAND/SAN BERNARDINO BI-CITY BIKEWAY AND WALKWAY CONNECTOR Legend: Existing/Funded Bikeway Proposed Bikeway/Walkway 25.b Packet Pg. 724 Attachment: PW.Third-Party Coop Agreement for ATP Cycle 5.Att1A - Agreement (6774 : Cooperative Agreement with the City of Highland and Page 1 Consent Calendar City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Kris Jensen, Director of Public Works Subject: Purchase and Sale Agreement for 337 & 339 West 40TH Street Recommendation Adopt Resolution No. 2020-117 of the Mayor and City Council of the City of San Bernardino, California, authorizing the City Manager to execute a Partial Purchase and Sale Agreement with Bryan Henley and Sharland L. Henley for the property located at 337 & 339 West 40th Street. Background This project consists of the widening of West 40th Street from Johnson Street to Electric Avenue to provide two through lanes in each direction and a two -way left-turn lane (Attachment 2 - Location Map). The project includes right-of-way (ROW) acquisition, undergrounding overhead utility lines, pavement widening, pavement rehabilitation, signing and striping. On July 19, 2017, the Mayor and City Council adopted Res olution No. 2017-131 approving an agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design for the widening of West 40th Street from Johnson Street to Electric Avenue. Design and right-of-way acquisition for the widening of West 40th Street from Johnson Street to Electric Avenue was approved as part of the FY 2018/19 Capital Improvement Program. The environmental component of the project was completed on April 24, 2018, and the Plans Specifications & Estimate (PS&E) are 95% completed. As part of the PS&E, Engineering Resources of Southern California, Inc., was required to identify necessary ROW , full and partial takes for this project. A total of 15 parcels were identified to complete this project. On March 21, 2018, the Mayor and City Council adopted Resolution No. 2018 -75 adopting a Mitigated Negative Declaration (MND), approving a Mitigation Monitoring and Reporting Program (MMRP). On September 5, 2018, the Mayor and City Council adopted Resolution No. 2018-248 approving an agreement with Paragon Partners, Ltd to acquire the right -of-way for this project. 26 Packet Pg. 725 6773 Page 2 Discussion The subject property, located at 337 & 339 West 40th Street, San Bernardino, California (Property), consists of approximately 24,832 square feet of land and is improved with two single-family residences and a single tenant retail tenant, 664, 520, and 875 square feet in size, respectively. A small portion of the property is required for the construction of the City's capital improvement project West 40th Street Widening from Johnson Street to Electric Avenue (Project). The Project requires acquisition of a permanent easement for roadway purposes, approximately 2,919 square feet in size, from the subject property. Valbridge Pr operty Advisors completed an appraisal report dated January 31, 2019, which established the Fair Market Value of the permanent easement at $200,250, which includes compensation for site improvements and severance damages. On June 17, 2019, The City of San Bernardino (City) approved the amount of just compensation and authorized the initiation of formal negotiations to acquire the permanent easement. On June 27, 2019, a written offer to purchase in the amount of $200,250 was presented to the property owner, Bryan Henley (Owner). Per the construction plans, the Project will require the removal of the property’s site improvements, including a portion of the asphalt-paved parking lot (five parking spaces), one large tree, an 8” concrete block wall, and a portion of concrete and asphalt-paved driveways. Additionally, acquisition of the permanent roadway easement will require the demolition of the 520 square foot single-family house located on the property in order to allow for replacement of the five parking spaces located within the permanent easement area. Demolition of the single-family home will result in the loss in value to the remainder property. The Owner reviewed the offer and appraisal and contested that the offer did not adequately compensate for the loss of value associated with the demolition of the single-family house located on the property. Moreover, the Owner contended that real estate values for similar homes in the area have increased since the appraisal’s date of value. Lastly, the owner provided a lease agreement for the 520 square foot house on the property, which illustrated an increase in the monthly rent from $800 to $1,000 since the appraisal was completed. As expressed by the owner, the house was re -leased to a new tenant upon expiration of the former tenant’s lease agreement. Based upon the change in market conditions, the owner presented staff with a counter offer in the amount of $250,000. Staff consulted with Valbridge Property Advisors to evaluate the effect on the just compensation amount associated with the increase in rental income for the 520 square foot house. It was determined that the increase in the rental income equated to an equivalent increase in valuation of $40,000; suggesting a counter offer in the amount of $240,250. In response, staff prepared the attached Purchase and Sale Agreement (Agreement) and presented it to the owner on December 30, 2019; which was reviewed, accepted, and signed by the owner. Additionally, the owner is waiving his rights to reimbursement of up to $5,000 for an independent appraisal. 26 Packet Pg. 726 6773 Page 3 Paragon Partners has reviewed the owner’s counter offer in the amount of $240,250 for the permanent easement and believes the counter offer to be fair and reasonable, and in the public’s best interest. Staff recommends that the City of San Bernardino approve an administrative settlement in the amount of $240,250 and proceed with consummating the Agreement attached hereto. Upon the City’s review, approval and signature of the Agreement, Staff will forward it to First American Title and Escrow Company, which will commence the escrow period for acquisition of the property rights required for the Project. 2020-2025 Key Strategic Targets and Goals Purchase of this property aligns with Key Target No. 1e: Create an asset management plan as it will allow the City to acquire right-of-way needed to move forward with implementation of the West 40th Street Widening project as identified in the City’s 5 - year Capital Improvement Plan. Fiscal Impact This project is being reimbursed by the San Bernardino County Transportation Authority (SBCTA) as part of the Valley Major Street Program. The West 40th Street Widening Project is one of the four projects in the City of San Bernardino approved for reimbursement under the Valley Major Street Program under the City’s Capital Project Needs Assessment (CPNA). The reimbursement rate is 67.6%. Regional Circulation DIF funding in the amount of $3,122,206.09 was previously approved by the Mayor and City Council for the West 40th Street Widening From Johnson Street to Electric Avenue (account 264-160-7160-5504) and $2,622,340.09 remains available for this project. Purchase of the property located at 337 & 339 W 40 th Street in the amount of $240,250 will be paid from these available budgets. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California, provide direction to staff regarding the right -of-way acquisition for West 40th Street Widening (“Project”) and adopt Resolution No. 2020 -117 authorizing the City Manager to execute a Partial Purchase and Sale Agreement with Bryan Henley and Sharland L. Henley for the property located at 337 & 339 W . 40th Street. Attachments Attachment 1 Resolution 2020-117; Exhibit “A” - Sale Agreement Attachment 2 Location Map Ward: 4 Synopsis of Previous Council Actions: July 19, 2017 Mayor and City Council adopted Resolution No. 2017-131 approving an agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design. 26 Packet Pg. 727 6773 Page 4 March 21, 2018 Mayor and City Council adopted Resolution No. 2018-75 approving a Mitigated Negative Declaration (MND), adopting a Mitigation Monitoring and Reporting Program (MMRP), and authorizing the Director of Community Development or designee to file a Notice of Determination (NOD) with the Clerk of the Board of Supervisors of San Bernardino County for the widening of West 40th Street from Johnson Street to Electric Avenue. September 5, 2018 Mayor and City Council adopted Resolution No. 2018-248 approving an agreement with Paragon Partners, Ltd to provide right-of-way acquisition services. 26 Packet Pg. 728 RESOLUTION NO. 2020-117 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE A PARTIAL PURCHASE AND SALE AGREEMENT WITH BRYAN HENLEY AND SHARLAND L. HENLEY FOR THE PROPERTY LOCATED AT 337 & 339 WEST 40TH STREET WHEREAS, pursuant to the street widening project of 40th street between Johnson street and Electric Avenue, the City of San Bernardino requires the a small portion of the property located at 337 & 339 W 40th Street; and WHEREAS, the parcels to be acquired are known as Assessor’s Parcel 0271-051-11 and 0271-051-12 and is more fully described in Exhibit “A”, attached hereto and made a part hereof; and WHEREAS, on July 19, 2017, the Mayor and City Council adopted Resolution No. 2017-131 approving an agreement with Engineering Resources of Southern California, Inc. to provide environmental and civil engineering design for the widening of 40th Street from Johnson Street to Electric Avenue (SS04-014); and WHEREAS, on September 5, 2018, the Mayor and City Council adopted Resolution No. 2018-248 approving an agreement with Paragon Partners, Ltd to provide Right-of-Way Acquisition Services for the widening of 40th Street from Johnson Street and Electric Avenue (SS04-014); and WHEREAS, the City and property owner have reached an agreement on the terms and purchase price for parcels to be. 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 on behalf of the City of San Bernardino to execute the Partial Fee Acquisition Purchase and Sale Agreement and Joint Escrow Instructions to conclude the purchase of said parcels for the amount of $240,250 attached hereto as Exhibit A. The City Manager is authorized to execute any additional documents necessary to effectuate the transaction. SECTION 3. The City Council finds that a Mitigated Negative Declaration (MND) was adopted for this project satisfying the requirements of the California Environmental Quality Act (CEQA), and the actions contemplated by this Resolution are within scope of the previously adopted MND. 26.a Packet Pg. 729 Attachment: PW.Purchase ansd Sale Agreement 337 & 339 W 40th Street.01.Attachment 1.Resolution (6773 : Purchase and Sale Agreement for Resolution No. 2020-117 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 Acting City Clerk this ___ day of __________, 2020. __________________________________ John Valdivia, Mayor City of San Bernardino Attest: __________________________________ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: __________________________________ Sonia Carvalho, City Attorney 26.a Packet Pg. 730 Attachment: PW.Purchase ansd Sale Agreement 337 & 339 W 40th Street.01.Attachment 1.Resolution (6773 : Purchase and Sale Agreement for Resolution No. 2020-117 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. _____, adopted at a regular meeting held at the ___ day of _______, 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. ______________________________ Genoveva Rocha, CMC, Acting City Clerk 26.a Packet Pg. 731 Attachment: PW.Purchase ansd Sale Agreement 337 & 339 W 40th Street.01.Attachment 1.Resolution (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 732 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 733 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 734 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 735 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 736 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 737 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 738 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 739 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 740 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 741 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 742 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 743 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 744 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 745 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 746 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 747 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 748 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 749 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 750 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 751 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 752 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 753 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 754 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 755 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 756 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 757 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 758 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 759 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 760 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 761 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 762 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 763 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 764 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 765 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 766 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 767 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 768 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 769 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 770 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 771 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 772 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for 26.b Packet Pg. 773 Attachment: PW.Purchase and Sale Agreement 337 & 339 W 40th Street.01A. Exhibit A.Agreement (6773 : Purchase and Sale Agreement for Location Map 337 – 339 40 th Street , San Bernardino, CA. Property Location 26.c Packet Pg. 774 Attachment: PW.Purchase and sale Agreement 337 & 339 W 40th Street.02.Attachment 2.Location Map