Beaumont City Council
December 3, 2024

CITY COUNCIL CLOSED & REGULAR SESSION
AGENDA

Beaumont Financing Authority
Beaumont Successor Agency (formerly RDA)
Beaumont Utility Authority
Beaumont Parking Authority
Beaumont Public Improvement Authority
Community Facilities Districts: 93-1, 2016-1, 2016-2, 2016-3, 2016-4, 2019-1, 2021-1, 2022-1, and 2023-1

Tuesday, December 3, 2024
Closed Session: 5:00 PM Regular Meeting: 6:00 PM
550 E. Sixth Street, Beaumont, CA
Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packets are available for public inspection in the City Clerk’s office at 550 E. 6th Street during normal business hours.

MEETING PARTICIPATION NOTICE
This meeting will will be recorded for live streaming as well as open to public attendance. Please use the following link during the meeting for live stream access: beaumontca.gov/livestream Public comments will be accepted using the following options.

1. Written comments will be accepted via email and will be read aloud during the corresponding item of the meeting. Public comments shall not exceed three (3) minutes unless otherwise authorized by City Council. Comments can be submitted anytime prior to the meeting as well as during the meeting up until the end of the corresponding item. Please submit your comments to:
[email protected] with "Public Comment" in the subject line.

2. Phone-in comments will be accepted by joining a conference line prior to the corresponding item of the meeting. Public comments shall not exceed three (3) minutes unless otherwise authorized by City Council. Please use the following phone number to join the call (951) 922 - 4845.

3. In-person comments are accepted by notifying the City Clerk using a provided Request to Speak Form prior to the start of the Public Comment Period. Public comments shall not exceed three (3) minutes unless otherwise authorized by City Council.

In compliance with the American Disabilities Act, if you require special assistance to participate in this meeting, please contact the City Clerk's office using the above email or call (951) 572 - 3196.

Notification 48 hours prior to a meeting will ensure the best reasonable accommodation.

Pages

CLOSED SESSION
A.CALL TO ORDER
Mayor Fenn, Mayor Pro Tem Lara, Council Member Voigt, Council Member White, Council Member Martinez
B.PUBLIC COMMENTS REGARDING CLOSED SESSION
B.1 Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8
Property: Approximately 30 acres of vacant land described as APN 404- 140-007.

Agency Negotiator: City Manager Elizabeth Gibbs or her designee.

Negotiating Parties: City of Beaumont as potential purchaser and Silva Family Trust and Bianchi Properties Limited as potential seller.

Under negotiation: Price and Terms.

B.2 Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8
Property 105 6th street, Beaumont CA. Agency Negotiator: City Manager Elizabeth Gibbs or her designee; Negotiating Parties: City of Beaumont at potential Lessor; Potential Tenants include: 1. WeBrew Coffee; 2. Chicken Republic; 3. Cornerstone BBQ; 4. Hops & Spokes Brewing. Under Negotiation: Price and Terms.

B.3 Conference with Legal Counsel – Anticipated Litigation – Potential Initiation of litigation pursuant to Government Code Section 54956.9(d)(4):

Two Potential Cases.

C.ADJOURNMENT TO CLOSED SESSION

REGULAR SESSION
D.CALL TO ORDER
Mayor Fenn, Mayor Pro Tem Lara, Council Member Voigt, Council Member White, Council Member Martinez
Report out from Closed Session
Action on any Closed Session Items
Action of any Requests for Excused Absence
Invocation
Pledge of Allegiance
Adjustments to the Agenda
Conflict of Interest Disclosure
E.ANNOUNCEMENTS / RECOGNITION / PROCLAMATIONS /

CORRESPONDENCE
F.PUBLIC COMMENT PERIOD (ITEMS NOT ON THE AGENDA)
Any one person may address the City Council on any matter not on this agenda.

If you wish to speak, please fill out a “Public Comment Form” provided at the back table and give it to the City Clerk. There is a three (3) minute time limit on

public comments. There will be no sharing or passing of time to another person.

State Law prohibits the City Council from discussing or taking actions brought up by your comments.

G.CONSENT CALENDAR
Items on the consent calendar are taken as one action item unless an item is pulled for further discussion here or at the end of action items. Approval of all Ordinances and Resolutions to be read by title only.

G.1 Ratification of Warrants 7
Recommended Action:

Ratify Warrants dated:

November 15, 2024
November 22, 2024
G.2 Approval of Minutes 34
Recommended Action:

Approve Minutes dated November 19, 2024.

G.3 Freeway Agreement for State Highway Route 60 42
Freeway Agreement between the State of California and the City of Beaumont for State Highway Route 60 (SR-60), from Jack Rabbit Trail to State Highway Route 10 (I-10).

Recommended Action:

Authorize the City Manager to execute a Freeway Agreement between the State of California and the City of Beaumont for State Highway Route 60, from Jack Rabbit Trail to State Highway Route 10.

G.4 A Resolution of the City Council of the City of Beaumont Accepting the Offer of Dedication For Lots 2, 6 and 7 of Tract Map 34862-1 48 Accept the Offer of Dedication and File a Certificate of Acceptance for APN Nos. 408-110-044, 408-110-028 and 408-110-027.

Recommended Action:

Waive the Full Reading and Adopt by Title Only, “A Resolution of the City Council of the City of Beaumont Accepting the Offer of Dedication for Lot 2 of Tract Map 34862-1 (APN No. 408-110-044)”; and
Authorize City staff to file the Certificate of Acceptance with the County Recorder’s Office.

G.5 2024 City of Beaumont Financial Policies for GASB 87 and 96 61 Establish a materiality level for GASB 87 and GASB 96.

Recommended Action:

Review and approve the 2024 City of Beaumont Financial Policies for GASB 87 and 96.

G.6 Update to the City of Beaumont Financial Management Policy 67 Update to the Development Impact Fee section of the City of Beaumont Financial Management Policy.

Recommended Action:

Approve update to the City of Beaumont Financial Management Policy.

G.7 City of Beaumont Sponsorship and Donation Policy 82 Sponsorship and Donation Policy to support the City of Beaumont’s Adopted Strategic Plan Target #1 Communications/Relationships Goal #2 Develop Funding Sources for Community Events.

Recommended Action:

Approve City of Beaumont Sponsorship and Donation Policy.

G.8 Approval of Supplemental Agreement for 2024-2025 Community Development Block Grant (CDBG) Program
89 This report seeks City Council approval of the 2024-2025 CDBG Program Supplemental Agreement, funding the Pedestrian Sidewalk Safety Improvement Project Phase II and activities by local nonprofit organizations.

Recommended Action:

Approve the Supplemental Agreement for the 2024-2025 CDBG Program; and
Authorize the City Manager to execute the agreement and return required documentation to the County of Riverside.

H.YOUTH COUNCIL REPORT
Beaumont Youth Council Report Out and City Council Direction I.PUBLIC HEARINGS
Approval of all Ordinances and Resolutions to be read by title only.

I.1 Continuation of a Public Hearing of Request to Appeal Notice of Finding Under Development Agreement
134
Tri Pointe Homes has requested an appeal of the City Manager’s Notice of Finding Under Development Agreement dated August 17, 2004.

Recommended Action:

Continue the Request to Appeal Notice of Finding Under Development Agreement dated August 17, 2004, to the City Council Meeting of December 17, 2024.

I.2 Minor Plot Plan PP2024-0048 Plotting, Architecture and Floors Plan for Tract Map No. 32850 (APN:421-110-014)
135
Conduct a public hearing and consideration of a request for the approval of a Minor Plot Plan (PP) to develop Tract Map No. 32850 into 95 Single Family Residential Lots with four (4) Plan Types, and one (1) park site.

The subject property is 29.32-acres and is located west of Manzanita Park Road and south of Brownie Way in the Residential Single-Family Zone.

Recommended Action:

Continue PP2024-0048 without discussion to December 17, 2024, City Council meeting.

J.ACTION ITEMS

Approval of all Ordinances and Resolutions to be read by title only.

J.1 Truck Route Viability 138
Presentation on the viability of existing roads along the designated truck routes.

Recommended Action:

Receive and file.

J.2 Potrero Extension Benefit Area 144
Discussion on the infrastructure needed to support future development within the Potrero Extension Benefit Area.

Recommended Action:

Receive and file.

J.3 Indemnification Agreement for Fourth Street and Potrero Boulevard 155 Indemnification Agreement between the County of Riverside and the City of Beaumont various right-of-way dedications near Potrero Boulevard and Fourth Street.

Recommended Action:

Authorize the Mayor to execute an Indemnification Agreement between the County of Riverside and the City of Beaumont for Various Right-of- way Dedications near Potrero Boulevard and Fourth Street.

J.4 Approval of Trustee Requisition 003 for Reimbursement of Bond Proceeds in the Amount of $8,863,651.89
226
Tri Pointe Homes has submitted a request of Community Facilities District 93-1 Improvement Area 17D bond proceeds to reimburse for completed improvement costs totaling $7,452,415.96 and reimbursement of development impact fees of $1,411,235.93 for a total of $8,863,651.89.

Recommended Action:

Approve the City Manager to sign Requisition 003 to send to Trustee for disbursement of bond proceeds to the City of Beaumont for reimbursement of costs to Tri Pointe Homes IE-SD Inc.

J.5 Approval of Tri Pointe Homes Community Facilities District 93-1 Improvement Area 17D PayGo Funds Reimbursement Request
262
Tri Pointe Homes IE-SD, Inc. has submitted a request for the Community Facilities District 93-1 Improvement Area 17D PayGo funds to reimburse TUMF Fees paid in the amount of $214,799.45.

Recommended Action:

Approve Tri Pointe Homes 17D PayGo Funds Reimbursement Request in the amount of $214,799.45.

K.LEGISLATIVE UPDATES AND DISCUSSION
L.ECONOMIC DEVELOPMENT UPDATE
Economic Development Committee Report Out and City Council Direction M.CITY TREASURER REPORT

Finance and Audit Committee Report Out and City Council Direction M.1 Treasurer Reports 268
N.CITY CLERK REPORT
O.CITY ATTORNEY REPORT
P.CITY MANAGER REPORT
Q.FUTURE AGENDA ITEMS
Assessment for the need for additional community center(s) (April)• Annexation Agreement with the County (Future)•
Public Works Project Update (January)•
City Sponsored Candidate Forum (February)•
Revisit Sanctuary City Definition and Clarification (April)• Strategic Plan Update (December)•
R.COUNCIL REPORTS
Martinez
White
Voigt
Lara
Fenn
S.ADJOURNMENT
The next regular meeting of the Beaumont City Council, Beaumont Financing Authority, the Beaumont Successor Agency (formerly RDA), the Beaumont Utility Authority, the Beaumont Parking Authority and the Beaumont Public Improvement Agency is scheduled for Tuesday December 17, 2024, at 6:00 p.m. unless otherwise posted.

1 CITY COUNCIL CLOSED & REGULAR SESSION

MINUTES

November 19, 2024
Closed Session: 5:00 PM Regular Meeting: 6:00 PM
550 E. Sixth Street, Beaumont, CA
_____________________________________________________________________

CLOSED SESSION
A. CALL TO ORDER at 5:07 p.m.

Present: Mayor Fenn, Council Member Voigt, Council Member White, Council Member Martinez

Absent: Mayor Pro Tem Lara

B. PUBLIC COMMENTS REGARDING CLOSED SESSION
No comments

B.1 Conference with Real Property Negotiators Pursuant to Government Code Section 54956.8
Property: Approximately 6.26 acres of vacant land described as North of West 4th street and South of SR 60 and East of Beaumont Crossroads Logistics with APN 424-010-007.

Agency Negotiator: City Manager Elizabeth Gibbs or her designee.

Negotiating Parties: City of Beaumont as potential Purchaser and LASSEN DEVELOPMENT PARTNERS, LLP, a Delaware limited liability partnership as seller.

Under negotiation: Price and Terms.

No reportable action.

B.2 Conference with Legal Counsel – Anticipated Litigation – Potential Initiation of litigation pursuant to Government Code Section 54956.9(d)(4):

2 Two Potential Cases.

No reportable action.

C. ADJOURNMENT TO CLOSED SESSION

REGULAR SESSION
D. CALL TO ORDER at 6:18 p.m.

Present: Mayor Fenn, Mayor Pro Tem Lara, Council Member Voigt, Council Member White, Council Member Martinez

Absent: Mayor Pro Tem Lara
Report out from Closed Session
Action on any Closed Session Items
Action of any Requests for Excused Absence
Invocation
Pledge of Allegiance
Adjustments to the Agenda
Conflict of Interest Disclosure

E. ANNOUNCEMENTS / RECOGNITION / PROCLAMATIONS /

CORRESPONDENCE
E.1 National Apprenticeship Week
E.2 Popular Annual Financial Reporting and Annual Comprehensive Financial Report Awards
E.3 Western Riverside Council of Governments Vehicle Miles Traveled Presentation

F. PUBLIC COMMENT PERIOD (ITEMS NOT ON THE AGENDA)
Any one person may address the City Council on any matter not on this agenda.

If you wish to speak, please fill out a “Public Comment Form” provided at the back table and give it to the City Clerk. There is a three (3) minute time limit on public comments. There will be no sharing or passing of time to another person. State Law prohibits the City Council from discussing or taking actions brought up by your comments.

T. Flinn - Concerns with overgrown trees affecting street sweeping, asked for street sweeping schedule signs.

3 D. Rose - Owner of Marla's gave an update to status of the restaurant. Shared interest in the Grace building.

G. CONSENT CALENDAR
Items on the consent calendar are taken as one action item unless an item is pulled for further discussion here or at the end of action items. Approval of all Ordinances and Resolutions to be read by title only.

Motion by Council Member White
Second by Council Member Martinez
Approved by a 4-0 vote

Absent: Mayor Pro Tem Lara
G.1 Ratification of Warrants
Ratify Warrants dated:

October 25, 2024
November 1, 2024
November 8, 2024
G.2 Approval of Minutes
Approve Minutes dated November 5, 2024.

G.3 Performance Bond Exoneration
Performance and payment bond exoneration for sewer improvements associated with Tract Map No. 27971-11 and for street improvements associated with Parcel Map No. 33681.

Authorize City staff to issue a Bond Exoneration Letter for Performance and Payment Bonds and Accept Maintenance Security for (Project / Bond Number / Improvement / Maintenance Bond Number):
• Tract Map No. 27971-11 / 1154356 / Sewer / 1154356M
• Parcel Map No. 33681 / 4479793 / Street /4479793M
G.4 FY2024-2025 1st Quarter Budget Update and Financial Status Report Receive and file a report on the status of the City’s budget and financial status as of September 30, 2024.

Receive and file report and approve attached budget amendments.

G.5 FY2024-2025 1st Quarter Cash and Investment Report

4 Receive and file the 1st quarter cash and investment report.

Receive and file report.

G.6 CalPERS Pension Funding Update
Receive and file CalPERS Pension Funding Update.

Receive and file report.

G.7 Side Letters Increasing the Cafeteria Plan for Police Managers and the Manager Professional Technical Unit
Authorize the City Manager to sign side letters with Police Managers and Manager Professional Technical Units increasing the cafeteria plan.

Authorize the City Manager to sign Side Letter #4 with the Police Managers and Manager Professional Technical Unit.

G.8 Downtown Façade Improvement Program – Funding Agreement Update – 960 Beaumont Avenue
Revision of an approved funding agreement ED2023-0004 for façade improvements at the property located at 960 Beaumont Avenue.

Approve the revised funding agreement (ED2023-0004) for façade improvements to the property located at 960 Beaumont Avenue.

H. YOUTH COUNCIL REPORT
Beaumont Youth Council Report Out and City Council Direction Report out from Member Dailin Brown

I. PUBLIC HEARINGS
Approval of all Ordinances and Resolutions to be read by title only.

I.1 Public Hearing to Award of Fiscal Year 2025-26 Community Development Block Grant (CDBG) Funds
Annual review of applications and award of CDBG funding for the upcoming fiscal year.

Public Hearing opened at 6:59 p.m.

B. Miller - Representing Voices for Children asked for continued support from Council.

G. Sinatra - Representing the Boys and Girls Club asked for continued support from Council.

Public Hearing closed at 7:06 p.m.

5 Motion by Council Member White
Second by Council Member Voigt
Hold a public hearing; and
To approve and authorize staff to submit a CDBG application for the City of Beaumont Pedestrian Project in the amount of $128,350 and give authority to the City Manager to reduce or increase the amount funded to the projects based on the final amount of funding available to the City of Beaumont; and
Approve and authorize staff to submit a CDBG application for Voices for Children in the amount of $10,000 and the remaining amount to the Boys & Girls Club of San Gorgonio Pass, subject to the conditions of the CDBG program as provided by Riverside County EDA.

Approved by a 4-0 vote.

Absent: Mayor Pro Tem Lara

J. ACTION ITEMS
Approval of all Ordinances and Resolutions to be read by title only.

J.1 Special Event Fee Waiver
Consideration of Special Event Fee Waiver Request made by Beaumont Cherry Valley Recreation and Park District. Strategic Plan Target #5 – Quality of Life/Well-Being, Priority Level 2, Goal #5 Increase community events, arts and culture.

S. Salzman - Representing BCVRPD requested fee waiver for Winterwish.

Motion by Council Member Voigt
Second by Council Member Martinez
Waive the full reading and adopt by title only, a Resolution of the City of Beaumont Authorizing the Waiver of the Major Event Permit Application Deposit and Associated City Fees for the Annual Beaumont Cherry Recreation and Park District Annual Winterfest Event”
Approved by a 4-0 vote.

Absent: Mayor Pro Tem Lara

6 J.2 Authorize a Budget Adjustment, Changes to Position Allocation and Changes to Uniform Compensation Plan
Staff requests a budget adjustment and authorization for the positions of Community Development Director and Economic Development Director.

Motion by Council Member Voigt
Second by Mayor Fenn
Approve a budget adjustment of $31,157 to department 1350.

Approve the addition of one Economic Development Director.

Approve a budget adjustment of $147,185 to department 1235.

Approved by a 4-0 vote.

Absent: Mayor Pro Tem Lara

J.3 Donation Agreement for 6.26 Acres of Real Property
Donation Agreement between Lassen Development Partners, LLLP, and the City of Beaumont for 6.26 Acres of real property located in the County of Riverside (APN:424-010-007).

Public Comment
B. McDonald - Donating the property to the City, spoke to the agreement being presented.

Motion by Council Member Voigt
Second by Mayor Fenn
Authorize the City Manager to execute a Donation Agreement between Lassen Development Partners, LLLP, and the City of Beaumont for 6.26 Acres of real property located in the County of Riverside (APN:424-010-007).

Approved by a 4-0 vote.

Absent: Mayor Pro Tem Lara

J.4 Planning Project and Building Permit Tracking
Analysis of project and permit tracking with suggestions to reduce processing times and establish measurable results.

Presentation given by staff. Direction from Council to implement communication aspects.

Discussion and direction to staff.

7 J.5 City Council Meeting Dates for 2025
A review of holidays and conferences in 2025 to avoid a conflict of schedule.

Motion by Council Member Voigt
Second by Mayor Fenn
Approve the list of meeting cancellations and direct the City Clerk’s Office to post cancellation notices for each.

Approved by a 4-0 vote.

Absent: Mayor Pro Tem Lara

J.6 Approval of City Attorney Invoices for the Month of October 2024 City Attorney recused for this item.

Motion by Council Member Voigt
Second by Council Member White
Approve invoices in the amount of $144,268.26
Approved by a 4-0 vote.

Absent: Mayor Pro Tem Lara

K. LEGISLATIVE UPDATES AND DISCUSSION

L. ECONOMIC DEVELOPMENT UPDATE
L.1 Billboard Contract Update

M. CITY TREASURER REPORT
No report

N. CITY CLERK REPORT
No report

O. CITY ATTORNEY REPORT

8 P. CITY MANAGER REPORT
Thanked staff for the response to the recent gas leak in the City. Announced upcoming December events.

Q. FUTURE AGENDA ITEMS
• Assessment for the need for additional community center(s) (April) • Annexation Agreement with the County (Future)
• Development Impact Fee Review Policy (January)
- Asked for a Public Works project update
- City sponsored candidate forum
- Revisit Sanctuary City definition and clarification
- Strategic Plan update

R. COUNCIL REPORTS
Martinez – Attended the Veterans Day Parade and Memorial ribbon cutting, gave a report out from the Financial and Audit Committee, the Youth Council meeting and attended the Rotary Senior lunch.

White – Attended the Veterans Day Parade and Memorial ribbon cutting, and gave a report out from the RCTC meeting.

Voigt – Attended the Veterans Day Parade and memorial ribbon cutting.

Lara - Absent
Fenn - Attended the Mayor ’s breakfast, gave a report out from the TNOW meeting, hosted the last State of the City roadshow, attended the Community Clean Up event and the Sun Lakes Veteran Group event, and the Veterans day Parade and ribbon cutting.

S. ADJOURNMENT at 9:07 p.m.

The next regular meeting of the Beaumont City Council, Beaumont Financing Authority, the Beaumont Successor Agency (formerly RDA), the Beaumont Utility Authority, the Beaumont Parking Authority and the Beaumont Public Improvement Agency is scheduled for Tuesday December 3, 2024, at 6:00 p.m. unless otherwise posted.

Staff Report

TO: City Council
FROM: Robert L. Vestal, Public Works Director
DATE: December 3, 2024
SUBJECT: Freeway Agreement for State Highway Route 60

Description Freeway Agreement between the State of California and the City of Beaumont for State Highway Route 60 (SR-60), from Jack Rabbit Trail to State Highway Route 10 (I-10).

Background and Analysis:

On May 7, 2013, the City of Beaumont entered into an agreement with the State of California for maintenance and control of SR-60 from Jack Rabbit Trail to I-10.

The State of California, acting through the Department of Transportation (Caltrans), is requesting an updated agreement as part of the Potrero Int erchange project. The primary intent of the Freeway Agreement is to distinguish control and maintenance responsibilities between the City and the State. In summary, the City will control and maintain all city streets outside the State right-of-way and Caltrans will control and maintain all streets and highways within the State right-of-way.

City staff has no objections to the proposed Freeway Agreement.

Fiscal Impact:

All City-required maintenance associated with the Freeway Agreement will be paid from the Public Works Department’s operations budget as part of ongoing maintenance.

The estimated cost to prepare this report is $1,500.

Recommended Action:

Authorize the City Manager to execute a Freeway Agreement between the State of California and the City of Beaumont for State Highway Route 60, from Jack Rabbit Trail to State Highway Route 10.

Attachments:

A. SR60 Freeway Agreement

08-RIV-60-PM 27.9/30.5
In the City of Beaumont
On Route 60
From 0.1 mile west of Jack Rabbit Trail
To Route 10
1 of 3

FREEWAY AGREEMENT
THIS AGREEMENT, made and entered into on this _______________ day of _______________, 20____, by and between the STATE OF CALIFORNIA, acting by and through the Department of Transportation (herein referred to as STATE) and the CITY OF BEAUMONT (herein referred to as CITY),
WITNESSETH:

WHEREAS, the highway described above has been declared to be a freeway by Resolutions of the California Highway Commission on August 19, 1953 and August 16, 1955; and
WHEREAS, STATE and City of Beaumont have entered into a Freeway Agreement dated May 7, 2013, relating to that portion of State Highway Route 60 from Jack Rabbit Trail to State Highway Route 10; and
WHEREAS, a revised plan map for such freeway has been prepared showing the proposed plan of the STATE as it affects streets of the CITY; and WHEREAS, it is the mutual desire of the parties hereto to enter into a new Freeway Agreement in accordance with the revised plan of said freeway.

NOW, THEREFORE, IT IS AGREED:

1. This Agreement supersedes in its entirety said Freeway Agreement dated May 7, 2013.

2. CITY agrees and consents to the closing of CITY streets, relocation of CITY streets, construction of frontage roads and other local roads, and other construction affecting CITY streets, all as shown on the plan map attached hereto, marked Exhibit A, and made a part hereof by reference.

08-RIV-60-PM 27.9/30.5
In the City of Beaumont
On Route 60
From 0.1 mile west of Jack Rabbit Trail
To Route 10
2 of 3

3. The obligations of STATE and CITY with respect to the funding and construction of the freeway project will always be dealt with in separate Cooperative Agreement(s) between the parties, and any amendments thereto, or Encroachment Permits issued to CITY. The parties responsible for the construction of the freeway shall make any changes affecting CITY streets only in accordance with the plan map attached hereto, marked Exhibit A.

4. The obligations of STATE and CITY with respect to the acquisition of the rights of way required for the construction, reconstruction, or alteration of the freeway and CITY streets, frontage roads, and other local roads will always be dealt with in separate Cooperative Agreement(s) between the parties, and any amendments thereto or Encroachment Permits issued to CITY.

5. It is understood between the parties that the rights of way may be acquired in sections or units, and that both as to the acquisition of right of way and the construction of the freeway project, the obligations of STATE and CITY hereunder shall be carried out at such time and for such unit or units of the project as funds are budgeted and made lawfully available for such expenditures.

6. CITY will accept control and maintenance over each of the relocated or reconstructed CITY streets, any frontage roads, and other local roads constructed as part of the project, on receipt of written confirmation that the work thereon has been completed, except for any portion which is adopted by STATE as a part of the freeway proper. If acquired by STATE, CITY will accept title to the portions of such roads lying outside the freeway limits upon relinquishment by STATE.

7. This Agreement may be modified at any time by the mutual consent of the parties hereto, as needed to best accomplish, through STATE and CITY cooperation, the completion of the whole freeway project for the benefit of the people of the STATE and of the CITY.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized officers.

08-RIV-60-PM 27.9/30.5
In the City of Beaumont
On Route 60
From 0.1 mile west of Jack Rabbit Trail
To Route 10
3 of 3

STATE OF CALIFORNIA
Department of Transportation

TONY TAVARES
Director of Transportation THE CITY OF BEAUMONT By: By:

CATALINO A. PINING III ELIZABETH GIBBS
District Director City Manager
APPROVED AS TO FORM: APPROVED AS TO FORM:

Attorney (State) Attorney (City)

Staff Report

TO: City Council
FROM: Doug Story, Community Services Director
DATE December 3, 2024
SUBJECT: A Resolution of the City Council of the City of Beaumont, California Accepting the Offer of Dedication For Lots 2, 6 and 7 of Tract Map 34862- 1 (APN Nos. 408-110-044, 408-110-028 and 408-110-027)

Description Accept the Offer of Dedication and File a Certificate of Acceptance for APN Nos. 408-110-044, 408-110-028 and 408-110-027.

Background and Analysis:

In May of 2013, Tract Map 34862-1 was recorded and Pardee Homes hereby offered Lots 2, 6 and 7 to the City of Beaumont for landscape maintenance and detention basin purposes. Although these parcels were previously dedicated, shown on Tract Map No. 34862-1, they have not been formally accepted by the City at this time.

To complete the transfer process, per Tract Map No. 34862-1, the City Council may, by resolution, at any later date, and without further action by the subdivider, rescind its action and accept the parcel dedications. Subsequently, staff is recommending that the City Council adopt the resolution to formally accept the dedication of the parcels.

Additionally, the City must file a Certificate of Acceptance as required by Government Code Section 27281. The Certificate of Acceptance is a formal acknowledgment that the City accepts the property described in the deed. This document is required to be recorded alongside the deed to confirm the City’s legal ownership. By approving this action, the City will comply with statutory requirements and finalize the property acquisition process. Approval of this Certificate of Acceptance is necessary to finalize the City's acquisition of the property and to fulfill the legal requirements for recording the deed. Staff recommends that the City Council approve the Certificate of Acceptance and authorize its filing with the County Recorder’s Office.

Figure 1 – Satellite image depicting the detention basin and its surrounding parcels.

Fiscal Impact:

The ongoing maintenance costs for the properties have been accounted for in the Grounds Department budget for Fiscal Year 2024/2025, as well as in previous fiscal years. Acceptance of the Offer of Dedication has no other direct impact on the general fund at this time.

The cost to prepare this staff report is estimated to be $280.

Recommended Action:

Waive the Full Reading and Adopt by Title Only, “A Resolution of the City Council of the City of Beaumont, California Accepting the Offer of Dedication for Lots 2, 6 and 7 of Tract Map 34862-1 (APN Nos. 408-110-044, 408-110-028 and 408-110-027)”; and Authorize City staff to file the Certificate of Acceptance with the County Recorder’s Office.

Attachments:

A. Resolution
B. Tract Map 34862-1
C. Certificate of Acceptance
D. Offer of Dedication

RESOLUTION NO. 2024-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA, ACCEPTING THE OFFER OF DEDICATION FOR LOTS 2, 6 AND 7 OF TRACT MAP 34862-1 (APN NOS. 408-110-044, 408-110-028, 408-110-027).

WHEREAS, the detention basin, located on Oak Valley Parkway and Starlight, is a necessary infrastructure element for stormwater management in the City, and

WHEREAS, for the existing and future maintenance of the detention basin, parcels of land are required to be dedicated to the City of Beaumont, and

WHEREAS, parcel APN Nos. 408-110-044, 408-110-028 and 408-110-027 were previously dedicated but not accepted by the City as shown on Tract Map No. 34862-1, which is attached hereto, and

WHEREAS, per Tract Map No. 34862-1, the City Council may, by resolution, at any later date, and without further action by the subdivider, rescind its action and accept the parcel dedications.

NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED, AND FOUND by the City Council of the City of Beaumont, State of California:

THAT, the parcel APN Nos. 408-110-044, 408-110-028 and 408-110-027 for detention basin and maintenance purposes, as shown and described as Lots 2, 6 and 7 on Exhibit A, are accepted by the City Council of the City of Beaumont.

MOVED, PASSED, AND ADOPTED this __ day of December 2024.

AYES:

NOES:

ABSTAIN:

ABSENT:

By: __________ David Fenn, Mayor, City of Beaumont

ATTEST:

By: ___________ City Clerk

EXHIBIT “A’

When Recorded Return
Original To:

City of Beaumont
550 East 6th Street
Beaumont, CA 92223

NO RECORDING FEE REQUIRED PER
GOVERNMENT CODE SECTION 27383

CERTIFICATE OF ACCEPTANCE
NOTICE is hereby given that the CITY OF BEAUMONT, 550 East 6th Street, Beaumont, California, 92223, a municipal corporation, is the owner in fee of the properties hereinafter described. Said owner hereby ACCEPTS the maintenance of the following improvements:

Detention Basin and Landscape Maintenance for Lots 2, 6 and 7 of Tract Map 34862-1 (APN Nos. 408-110-044, 408-110-028 and 408-110-027).

on the property hereinafter described and that was COMPLETED prior to December 3, 2024, by the developer(s).

The property on which said work of improvement was completed in the City of Beaumont, County of Riverside, and State of California lying in Section(s) 02, Township 3 South, Range 1 West.

___________________ ______________________________
Date David Fenn,
Mayor of the City of Beaumont, CA

VERIFICATION:

I the undersigned am the Mayor of the City of Beaumont, the declaring of the foregoing Notice of Acceptance. I have read the said Notice of Acceptance and know the contents thereof: The same is true of my knowledge. I declare under penalty of perjury that the foregoing is true and correct.

___________________ ______________________________
Date David Fenn,
Mayor of the City of Beaumont, CA

STATE OF CALIFORNIA

COUNTY OF RIVERSIDE

On _________________ before me, ___________________________ Notary Public, personally appeared __________________, MAYOR OF THE CITY OF BEAUMONT, CALIFORNIA, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within the instrument and acknowledged to me that he executed the same in his authorized capacity and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instru ment.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

BY: _________________________________________ (SEAL)
NOTARY
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Staff Report

TO: City Council
FROM: Lisa Leach, CPA, Assistant Finance Director
DATE December 3, 2024
SUBJECT: 2024 City of Beaumont Financial Policies for GASB 87 and 96

Description Establish a materiality level for GASB 87 and GASB 96 Background and Analysis:

Financial policies provide guidelines for financial decision-making and are central to a strategic, long-term approach to financial management. Effective June 30, 2022, GASB 87 (Accounting for Leases) was adopted in the City’s Annual Comprehensive Financial Report (ACFR). This Standard establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Effective June 30, 2023, GASB 96 (Accounting for Subscription-Based Information Technology Arrangements) also was adopted in the City’s ACFR. This Standard establishes a single model for subscription-based software accounting based on the foundational principle that subscriptions are financings of the right to use information technology software alone or in combination with tangible capital assets.

The Finance department has determined that the cost to implement both GASB 87 and GASB 96 outweighs the benefits for implementing the standard on all transactions.

Best accounting practices allow cities to establish a materiality level, per transaction, to reduce the cost to implement pronouncements while ensuring that the Cit y’s ACFR does not omit material financial information. The Finance department is recommending the materiality level be set at the total contract level of $25,000 and up.

On November 18, 2024, the policies were presented to the Finance and Audit Committee and the committee reviewed and recommended they be forwarded to City Council for approval.

Fiscal Impact:

The estimated cost to prepare this report is $150.

Recommended Action:

Review and approve the 2024 City of Beaumont Financial Policies for GASB 87 and 96.

Attachments:

A. GASB 87 Financial Policy
B. GASB 96 Financial Policy

LEASE MATERIALITY POLICY

1. PURPOSE

The purpose of the Lease Materiality Policy is to establish the dollar threshold at which City of Beaumont accounts for leases for external financial reporting purposes.

2. ADOPTION AND REVIEW

This policy shall be reviewed periodically for recommended revisions in order to maintain the policy in a manner that reflects the ongoing financial goals of the City of Beaumont and compliance with Generally Accepted Accounting Principles (GAAP). Finance Department management shall adopt and revise the policy as necessary.

3. POLICY

3.1. In accordance with Governmental Accounting Standard Board (GASB) Statement No. 87, Leases, a lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transactions (i.e., buildings, land, vehicles, and equipment). Any contract that meets this definition should be accounted for under the lease guidance as identified in GASB Statement No. 87. Subject to certain provisions and exceptions noted in the guidance, leases are generally reported as follows in a government’s external financial statements:

3.1.1 Lessee: A lessee should recognize a lease liability and a lease asset at the commencement of the lease term. A lessee should reduce the lease liability as payments are made and recognize an outflow of resources (i.e., expense) for interest on the liability. The lessee should amortize the lease asset in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset.

3.1.2 Lessor: A lessor should recognize a lease receivable and a deferred inflow of resources at the commencement of the lease term. A lessor should recognize interest revenue on the lease receivable and an inflow of resource (i.e., revenue) from the deferred inflows of resources in a systematic and rational manner over the term of the lease.

3.2. Effective July 1, 2024, The City of Beaumont has established a materiality dollar threshold for determining the inclusion or exclusion of leases in the external financial statements, both as lessee and lessor. At the commencement of the lease term, City of

Beaumont will analyze the terms and provisions of the lease agreement (contract) in order to calculate the value of the underlying asset.

3.2.1 An individual lease agreement (contract) that generates a right-to-use underlying asset value calculated at greater than or equal to $25,000 will be included in the external financial statements.

3.2.2 A lease agreement (contract) with an underlying asset value less than $25,000 may be included in the external financial statements at the discretion of City of Beaumont Finance management should it be determined that its exclusion might otherwise cause the financial statements to be incomplete or misleading in some manner.

SUBSCRIPTION-BASED INFORMATION TECHNOLOGY

ARRANGEMENT (SBITA) MATERIALITY POLICY

1. PURPOSE

The purpose of the Subscription-Based Information Technology Arrangement (SBITA) Materiality Policy is to establish the dollar threshold at which the City of Beaumont accounts for SBITAs for external financial reporting purposes.

2. ADOPTION AND REVIEW

This policy shall be reviewed periodically for recommended revisions in order to maintain the policy in a manner that reflects the ongoing financial goals of the City of Beaumont and compliance with Generally Accepted Accounting Principles (GAAP). Finance Department management shall adopt and revise the policy as necessary.

3. POLICY

3.1. In accordance with Governmental Accounting Standard Board (GASB) Statement No. 96, Subscription-Based Information Technology Arrangements, a SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transactions. Any contract that meets this definition should be accounted for under the SBITA guidance as identified in GASB Statement No. 96.

3.2. Subject to certain provisions and exceptions noted in the GASB guidance, SBITAs are generally reported as a right-to-use subscription asset – an intangible asset – and a corresponding subscription liability in a government’s external financial statements:

3.3. Effective July 1, 2024, City of Beaumont has established a materiality dollar threshold for determining the inclusion or exclusion of SBITAs in the external financial statements. At the commencement of the SBITA term, City of Beaumont will analyze the terms and provisions of the agreement (contract) in order to calculate the fixed and fixed in-substance future payments to the end of the subscription term.

3.3.1 An individual agreement (contract) that generates future payments over the subscription term calculated at greater than or equal to $25,000 will be included in the external financial statements.

3.3.2 An agreement (contract) that generates future payments over the subscription term calculated at less than $25,000 may be included in the external financial statements at the discretion of City of Beaumont Finance Department

management should it be determined that its exclusion might otherwise cause the financial statements to be incomplete or misleading in some manner.

Staff Report

TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE December 3, 2024
SUBJECT: Update to the City of Beaumont Financial Management Policy

Description Update to the Development Impact Fee section of the City of Beaumont Financial Management Policy.

Background and Analysis:

The City Council approved a Development Impact Fee Nexus Study (Study) on November 5, 2024. During the discussion session of this process, it was requested by the City Council to bring back a policy to complete a Study every 5 -years rather than the required 8-years. City staff have added language in the City of Beaumont Financial Management Policy to reflect this request which is on pages 26-27 of the policy.

The Financial and Audit Committee reviewed the additional language to the policy on November 18, 2024, and recommended to move the policy forward to the City Council for approval.

Fiscal Impact:

The estimated cost to prepare this report is $160.

Recommended Action:

Approve update to the City of Beaumont Financial Management Policy.

Attachments:

A. Draft Updated City of Beaumont Financial Management Policy

City of Beaumont-Finance Department Policies and Procedures Manual 2024 17 Financial Management Policies

Introduction

The City of Beaumont is accountable to the community for the use of public dollars. Municipal resources will be used wisely to ensure adequate funding for the services, public facilities, and infrastructure necessary to meet the community’s present and future needs. Financial management policies serve as the blueprint to achieve the fiscal stability and accountability required to meet the City’s goals and objectives.

Scope

The City’s financial management policies apply to all personnel, departments, divisions, and offices of the City government as well as all associated accounting funds under the direct authority of the City of Beaumont. These accounting funds include, but are not limited to, the General Fund, Special Revenue Funds, Enterprise Funds, Internal Service Funds, Debt Service Funds, Capital Projects Funds, Private-Purpose Trust Funds and Agency Trust Funds. These financial management policies are also applicable to the City’s blended component units, including the Beaumont Utility Authority, Beaumont Parking Authority, Beaumont Financing Authority and Beaumont Public Improvement Authority.

Responsibility

The City Manager is ultimately responsible for the City’s implementation and compliance with these policies, unless the City Council authorizes exceptions. Under the direction of the City Manager, the Finance Director will review, develop, and implement a system of processes and procedures to ensure compliance with these policies throughout the entire organization. The City Manager will work with the Finance Director to ensure these policies are updated on a timely basis.

Financial Policy Goals

The objectives for comprehensive management policies are to:

4. Guide City Council and City Management decisions that have significant fiscal impact.

5. Support the planning for financial sustainability and long-term needs.

6. Maintain and protect City assets and infrastructure.

7. Set forth operating principles that minimize the financial risk in providing City services.

8. Optimize the efficiency and effectiveness of services to reduce the costs and improve service quality.

9. Employ balanced and fair revenue policies that provide adequate funding for desired programs.

10. Promote sound financial management by providing accurate and timely information on the City’s financial condition to the City Council and community.

City of Beaumont-Finance Department Policies and Procedures Manual 2024 18 11. Maintain and enhance the City’s credit ratings and prevent default on any municipal financial obligations.

12. Ensure the legal and ethical use of financial resources consistent with Council policy through an effective system of internal controls.

13. Promote cooperation and coordination within the City, and other governments and with the private sector in the financing and delivery of services.

14. Provide the appropriate level of accountability in the use of public resources.

Affiliated Agencies

If agencies have been created through Council action, intergovernmental agreements, and state and federal laws, they should be managed with the same financial standards as City agencies. To protect the City’s fiscal status and avoid an adverse effect on the City, affiliated agencies will be accountable for financial compliance and reporting standards as described in the City’s Financial Management Policies. The City may audit financial records or performance data to ensure funds are spent in accordance with Council directions and policies. Affiliated agencies include, but are not limited to, agencies created by Council action, agencies with leadership appointed by the City Council and agencies that receive a majority of funds from the City.

Annual Budget

The annual budget is the primary mechanism for the implementation of City Council policies and the achievement of their goals and objectives. The budget is a policy document, operations guide, financial plan and a communications device. It is the single most important means of setting spending policies and priorities of the City. It constitutes approval by the City Council of service levels and operating programs and provides resources to finance them. Expenditures must be kept within total appropriations for all Accounting Funds.

Budget Goals

The City will develop and implement a budget process that will:

1. Make prudent use of public resources.

2. Include financial forecast information for resources, uses and ending fund balances to ensure that the City is planning adequately for current and future needs.

3. Provide adequate opportunity for public review and input.

4. Provide adequate opportunity for City Council review and deliberations.

5. Provide information on accomplishments and service levels vis-a-vis community needs.

6. Comply with City Code, State of California Local Budget Law, bond covenants and other promulgations.

City of Beaumont-Finance Department Policies and Procedures Manual 2024 19 The City Manager will develop and present a proposed City budget to the Mayor and City Council for consideration and adoption. The City Manager’s proposed budget will opine on the short and long-term financial condition of the City, identify policy and financial and service issues, identify any use of one-time funds to support ongoing operations or key changes from previous years, identify funding requirements and sources of funds, provide supplemental information on programs and service areas, include budget and performance details for all City organizations and related recommendations to the City’s vision and goals.

The Finance Department will issue guidelines and rules for the preparation and review of the department budget requests to the Mayor and City Council, including a proposed annual budget process and calendar.

The proposed process and calendar will support community input and Council deliberations.

Budget Appropriations

All Accounting Funds are included in the annual budget and all revenues and other financing sources are appropriated by the City Council each fiscal year in the annual budget. All Accounting Funds included in the City’s annual audited financial statements are reviewed by the City’s independent certified public accountants. The accounting basis in the City’s annual budget is the same as the accounting basis used by the City’s annual audited financial statements. Annual operating budgets in the General Fund and Enterprise Funds are carefully reviewed to ensure that budget appropriations are conservative because the City feels government units’ function more efficiently under conservative budgets than where excess funds are made available.

Appropriations Limit

Under Article XIIIB of the California Constitution (the GANN Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations, the excess must be either refunded to the State Controller or returned to the taxpayers through revised tax rates, revised fee schedules or other refund arrangements.

Proposition 218

Proposition 218, approved by the voters in November 1996, regulates the City’s ability to impose, increase and extend taxes, assessments, and fees. Any new, increased, or extended taxes, assessments, and fees subject to the provisions of Proposition 218 maybe subject to a protest hearing process. Additionally, Proposition 218 provides that these taxes, assessments, and fees are subject to the voter initiative process and may be rescinded in the future by the voters. Therefore, the City’s ability to finance the services for which the taxes, assessments and fees are imposed may be significantly impaired. Under Proposition 218:

1. Revenues derived from a property related fee must not exceed the funds required to provide the proportionate cost of the property related service. (The total cost limitation)

2. Revenues derived from the fee must not be used for any purpose other than for that which the fee is imposed. (The proportional cost limitation)

3. Fees may not be imposed for a service unless the services is actually used by, or immediately available to, the owner of the property subject to the fee. Fees based on potential or future use of a service are not permitted and stand-by charges must be classified as assessment subject to the ballot protest and proportionality requirements for assessments. (The future services prohibition)

City of Beaumont-Finance Department Policies and Procedures Manual 2024 20 4. No fee or charge may be imposed for general governmental services, such as police, fire, ambulance, or libraries, where the service is available to the public in substantially the same manner as it is to property owners. (The general government service prohibition)

A public agency has the burden to prove compliance with these provisions if a fee is challenged in court.

Budget Control and Monitoring

The City Council appropriations and control points will be at the department level within each accounting fund. These City Council adopted appropriations and employee counts cannot be exceeded without City Council approval. The City Manager will have the authority to amend budgets within a departmental appropriation but changes in employee counts must be approved by the City Council. The Finance Department will maintain a system of tools for departments to manage their budgets and for financial monitoring and control of the City’s budget during the fiscal year. This system will provide the departments, Mayor and City Council with information on revenue, expenditures and budget performance at both the department and fund level. The system will include provisions for amending the budget during the year in order to comply with this policy and State of California budgetary statutes.

The City Manager, through the Finance Department, will periodically report to the City Council financial status reports on revenues and expenditures to date, and the estimated year-end fund balances. The City Manager will, on a quarterly basis, review all City financial operations, report to Council on financial results and recommend financial actions necessary to meet the adopted budget’s financial planning goals.

The mid-year budget monitoring report, audited financial statements, audit opinion and management letter will be presented to the Mayor and City Council for review and discussion as an action item on a City Council agenda. Any additional financial resources, whether additional projected revenues produced them or higher beginning fund balances, should be set aside for the next budget cycle. Any negative financial results should be highlighted, and a proposed plan of action should be provided to the Mayor and City Council for review and approval. General Fund discretionary resources that exceed budgeted amounts should be added to the General Fund contingency, except for funds allocated to infrastructure maintenance or replacement.

Review Council Actions

The City Manager, through the Finance Department, will review any proposed City Council actions. The objective of these reviews will be to ensure compliance with the City’s budget direction and identify financial and service issues for the Council. The Finance Department will identify financial and service issues for the City Council. The Finance Department will establish and issue procedures and forms to submit fiscal impact statements for proposed Council actions.

Additional Operating Budget Direction

1. Balanced Budget. Financial resources shall be equal to or exceed expenditures in each accounting fund. Each City fund must identify on-going financial resources that at least match expected ongoing requirements. One-time resources and non-recurring ending balances may either be applied to reserves or used to fund one-time expenditures; they will not be used to fund ongoing programs, except as provided in Section 2. Each year the Finance Director will provide the City Council with the amount of discretionary revenue that is estimated to be non-recurring for the

City of Beaumont-Finance Department Policies and Procedures Manual 2024 21 General Fund.

2. One-time Funds. One-time funds can be used for ongoing expenditures only as a plan for:
(1) Transitioning to a permanent funding source,
(2) leading to organized program elimination, or
(3) as part of verifiable plan to address an existing recessionary period. Scenario 3 should be documented in the City’s multi-year financial forecast.

3. General Discretionary Revenues. Unless otherwise explicitly stated by the Mayor and City Council, the City will not dedicate discretionary revenues for specific purposes in the General Fund.

This will preserve the ability of the Mayor and Council to determine the best use of available revenues to meet changing service requirements.

4. Transfers Between Funds. A schedule of all transfers between funds will be identified, explained, and appropriated in the Proposed and Adopted Budget. Any additional budget transfers between accounting funds will require City Council action.

5. Efficiency and Effectiveness. The City will optimize the efficiency and effectiveness of its services to reduce costs and improve service quality. The City will coordinate its service delivery with other applicable public and private service providers and seek the most cost-effective method for service delivery.

6. Self-Supporting/Full Cost Recovery Basis. The City will attempt to recover the costs of services providing a private benefit to users through the imposition of user fees and charges. The fees and charges will be based on cost accounting standards consistent with state or federal law when applicable. Fees and charges should include full costs i.e., direct, indirect, depreciation, interest charges, etc. and the Finance Director will ensure an annual user fee and charges schedule is regularly updated and approved by Council.

7. Recovery of Indirect or Overhead Costs. The City will endeavor to recover indirect or overhead costs through their allocation towards the calculation of user fees and charges or inter-fund charge.

However, a reasonable cost allocation methodology must be used consistent with Generally Accepted Accounting Principles (GAAP).

8. Contingencies. The City will budget a contingency account for each operating fund adequate to address reasonable but unforeseen requirements within the fiscal year.

9. Unexpended Appropriations at the End of the Fiscal Year. Unexpended appropriations cannot be used in subsequent fiscal years unless re-appropriated by the City Council.

Fund Balances

1. Definition and Purpose.

A. Governmental Funds. Accountants employ the term “Fund Balance” to describe the net assets of Governmental Funds calculated in accordance with generally accepted accounting principles (GAAP). Budget professionals commonly use this same term to describe the net assets of Governmental Funds calculated on a government’s budgetary basis. In both cases, “Fund Balance” is intended to serve as a measure of the financial resources available in a Governmental Fund. It is essential the City of Beaumont maintain adequate levels of fund balance to provide working capital,

City of Beaumont-Finance Department Policies and Procedures Manual 2024 22 mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) and to ensure stable tax rates. Fund balance levels are also a crucial consideration in long-term financial planning.

B. Enterprise and Fiduciary Funds. The “Cash and Investment Fund Balance” is that portion of fund equity that can be used for operating, capital and debt service expenditures, and is intended to serve as a measure of the financial resources available in an Enterprise Fund. It is essential the City of Beaumont maintain adequate levels of cash and investment fund balances to provide working capital, mitigate current and future risks (e.g., revenue shortfalls and unanticipated expenditures) and to ensure stable utility rates. Cash and investment fund balance levels are also a crucial consideration in long-term financial planning.

Credit rating agencies carefully monitor levels of fund balance in a government’s General Fund to evaluate a government’s continued creditworthiness. Those interested primarily in a government’s creditworthiness or economic conditions are likely to favor higher levels of fund balance. Opposing pressures often come from employee unions, taxpayers, and citizens’ groups, which may view high levels of fund balance as “excessive.”

2. Classification of Governmental Fund Balances.

Governmental Fund balances are classified into the following categories:

A. Nonspendable Fund Balances. Non-Spendable Fund Balances consist of items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

B. Restricted Fund Balances. Restricted Fund Balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributions, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

C. Committed Fund Balances. Committed Fund Balances encompass the portion of net fund resources, the use of which is constrained by limitations that the government imposes upon itself at its highest level of decision making, normally the governing body through City Council resolutions, etc., and that remain binding unless removed in the same manner.

D. Assigned Fund Balances. Assigned Fund Balances encompass the portion of net fund resources reflecting the government’s intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the City Manager for that purpose.

E. Unassigned Fund Balances. This category is for any balances that have no restrictions placed upon them.

3. Fund Balance Policy Considerations.

In establishing a policy governing the level of unrestricted (unreserved) fund balance in governmental funds and cash and investment fund balance in its Enterprise Funds, the City Council

City of Beaumont-Finance Department Policies and Procedures Manual 2024 23 takes into consideration the following factors:

A. The predictability of its revenues and the volatility of its expenditures (i.e., higher levels of unrestricted (unreserved) fund balance may be needed if significant revenue sources are subject to unpredictable fluctuations or if operating expenditures are highly volatile).

B. The availability of resources in other funds as well as the potential drain upon General Fund resources from other funds (i.e., the availability of resources in other funds may reduce the amount of unrestricted (unreserved) fund balance needed in the General Fund, just as deficits in other funds may require that a higher level of unrestricted (unreserved) fund balance be maintained in the General Fund.

C. Liquidity (i.e., disparity between financial resources actually become available to make payments and the average maturity of related liabilities may require that a higher level of resources be maintained.)

D. Designations (i.e., the City of Beaumont may wish to maintain higher levels of Unrestricted (unreserved) fund balance to compensate for any portion of unrestricted (unreserved) fund balance already designated for a specific purpose).

4. Fund Balance Policies.

A. General Fund Reserves or Ending Fund Balance Policy. Working Capital Reserve Requirement to remain at 16% of the operating budget. This allows sufficient cash flow throughout the year when revenue receipts are not timely to expenditures. Budget Stabilization Reserve set at $5M to provide city staff time to address an economic downturn without having to dip into the Working Capital Reserve. Emergency Disaster Reserve set at $1M to provide funds that may not be available within the budget to address unforeseen emergency disaster brought upon by nature or human. NOTE: The Government Finance Officers Association recommends, at a minimum, that general purpose governments, regardless of size, maintain unrestricted fund balance in their General Fund of no less than two months of regular General Fund of no less than two months of regular General Fund operating revenues or regular General Fund operating expenditures.

B. Enterprise Reserves or Ending Fund Balance. The City will show adequate progress towards increasing Enterprise Fund reserves or Unassigned Fund Balance ultimately to 25% of the Enterprise Fund Balance. The City has established a Repair and Replace Reserve. Any funds remaining from a budget year will first address any shortfalls in the operating reserve requirement.

Any surplus funds over the operating requirement will be placed in the Repair and Replace fund to meet ongoing capital maintenance needs.

These fund balances will be maintained for the following purposes:

a) Provide sufficient working capital to meeting daily cash needs to avoid using short-term debt instruments.

b) Provide a reserve to absorb emergency expenditures caused by natural disasters such as fire, flood, or earthquake.

c) Cover any unanticipated deficit resulting from a shortfall in actual revenues in a given budget year or unanticipated cuts by the State Legislature and Governor of City revenues.

City of Beaumont-Finance Department Policies and Procedures Manual 2024 24 When expenditures are incurred for purposes for which both restricted and unrestricted fund balances are available, the City’s policy is to apply restricted fund balances first, then unrestricted fund balances as they are needed.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses unrestricted resources in the following order: committed, assigned, and unassigned.

When the unrestricted (unreserved) fund balance of the General Fund exceeds the amount needed for the above purposes, the City Manager through the Finance Department will bring an item to Council for options of use that meet the strategic goals that have been established within the budget process.

Restricted (reserved) fund balances in the General Fund, Special Revenue Funds, and Capital Projects Funds will be separated out and identified in the City’s accounting records, financial statements, budgets, and audit reports. This same policy is followed with respect to restricted amounts in the cash and investment balances of the Enterprise Funds. The purpose of this policy is to show the City Council, staff, and the public what funds in these balances are unrestricted and what funds are to be used for specific purposes.

Fund Management

Creation of new funds or elimination of existing funds shall be done by the Finance Department or City Council action. A review and report by the Finance Department will be required prior to City Council action. The Finance Department will conduct an annual review and, as part of the budget, explain the purpose of each fund and assess if each fund is needed.

Departments or programs that are primarily funded by user fees and charges should be segregated into their own funds or fund accounts to assist in cost accounting and ensuring fees and charges are recovering an adequate portion of costs.

Enterprise Funds

Budgets for Enterprise Funds will include the required level of debt service coverage for the fund and a description of the relationship between operating budgets and construction budgets.

Financial Planning Goals

The City of Beaumont will prepare long-range financial plans to guide the Mayor and City Council in adopting the City budget and to assist the City Council in ensuring the delivery of needed services through inevitable economic cycles. The financial plans will help the Mayor, Council and community evaluate the financial impact of all programs within the regional and local economic conditions. The plans will also assist in coordinating funding needs among enterprise, special revenue, and General Fund functions.

Financial planning and budgeting will be based on the following principles:

1. Revenue estimates will be prepared on a conservative basis to minimize the possibility that economic fluctuations could surprise the City and jeopardize ongoing serve delivery during the fiscal year.

2. Expenditure estimates will anticipate needs that are reasonably predicable.

City of Beaumont-Finance Department Policies and Procedures Manual 2024 25 3. Forecasts will rely on a common set of basic economic assumptions that will be established, updated, and distributed by the Finance Department.

Financial Plans and Forecasts

Prior to the initiation of the annual budget process, the Finance Department will prepare an annual City financial assessment report. This report will include a comprehensive overview of the City’s financial condition.

Five-year financial forecasts and plans will be prepared annually for the General Fund, General Fund departments, major Enterprise Funds, Special Revenue Funds, and other funds that materially affect the City. Plans will be based on current service levels and funding sources, as well as anticipated changes to service levels and funding. If appropriate, the plans will identify additional resources needed to continue current service levels or identified service adjustments.

General Fund departments will forecast and monitor their own revenues and expenditures. The Finance Department will assist departments in developing appropriate systems, will retain fiscal oversight responsibility for the entire City and will publish regular financial status reports on revenues and expenditures.

Enterprise Fund and Special Revenue Fund forecasts will identify any impact on rates. The forecasts will discuss how standards for debt service coverage and operating reserves are established and maintained.

Departments that manage Enterprise and Special Revenue Funds will prepare and coordinate with the Finance Department on the presentation of regular status reports on revenues and expenditures.

Capital and Other Asset Plans

The departments that are responsible for major infrastructure and utility improvements will complete 10 or 20-year master plans to support growth and replacement needs. The master plans must support and reconcile with the City’s major planning documents.

The City will annually prepare a Citywide five-year Capital Improvements Plan (CIP) that provides the Mayor and City Council with an overview of the condition of its infrastructure. It should include prioritized department needs for capital replacement, additions, and major maintenance, along with the potential impacts of not funding certain projects. The plan will include estimated project costs and operating costs and will identify funding sources. Staff will ensure the proposed funding is in fact an eligible source under state law. It will highlight what projects are fully funded and which ones are not.

The City will annually adopt a Capital Budget that will include estimated resources and capital expenditures based on the first year of the current Capital Improvements Plan. Other major asset categories critical to service delivery such as facilities, fleet and technology will also have master plans to ensure their timely replacement.

The City will identify and include full costs of future maintenance needs and operating costs of new capital improvements and equipment prior to funding as part of the Capital Budget.

In general, all assets will be maintained at a level that protects capital investment and minimizes future maintenance and replacement costs. A high priority will be placed on maintenance where deferring maintenance will result in greater costs to restore or replace neglected facilities such as roads. Each

City of Beaumont-Finance Department Policies and Procedures Manual 2024 26 department with major capital assets will maintain accurate information on the condition and lifespan of its major assets to assist in long-term planning, such as a pavement management index. Each department with major capital assets will develop replacement costs data for major assets to assist in City asset management and investment decisions.

Maintenance and operations of major capital assets should be given priority over acquisition of new assets.

Revenue Goals

1. The City will maximize and diversify its revenue base to raise sufficient revenue to support essential City services and to maintain services during periods of declining economic activity. The City’s overall revenue structure will be designed to recapture some of the financial benefits resulting from City economic and community development investments. Revenue collection efforts that produce positive net income for City service delivery will be the highest budget priority.

2. Departments that primarily or exclusively operate with non-General Fund revenue will minimize reliance on General Fund support for discrete programs that are not supported with fees.

Revenue Collections

The City will use all cost-effective means available to collect revenues due.

The Finance Department is responsible for ensuring all Accounts Receivable are properly pursued and accounted for, which includes an aging of each receivable and the development of a bad debt policy. The Finance Department will ensure, on an annual basis, that a report is provided to the City Council on the condition of the City’s collection efforts and any accounts receivable and the development of a bad debt policy. The Finance Department will ensure, on an annual basis, that a report is provided to Council on the condition of the City’s collection efforts and whether any accounts receivable should be written off.

The Mayor and City Council must approve any fee waivers.

Development Impact Fee Revenues

The City seeks to recover some of the cost of growth through development impact fees on new developments in the City of Beaumont. As Beaumont’s population grows, the demand for the expansion of public infrastructure and the purchase of capital equipment needed to serve new development in the City increases.

State law allows (State Mitigation Fee Act, Government Code 66000 et. seq.) and fairness dictates that the new residents creating the need for expanded infrastructure and additional equipment capital costs should make a contribution to their acquisition in the form of development impact fees. Development impact fees are collected by the City of Beaumont for the expansion of public infrastructure and facilities and the purchase of capital equipment needed for new development in the City. All development impact fees are deposited in separate special revenue and expenditure accounts in a separate Special Revenue Fund specifically designated for the particular development impact fee. Development impact fees can only be spent for capital purchases due to growth and are not used for salary or maintenance or operation expenditures.

California Government Code Section 65940.1 and Section 66016.5 require cities, counties, and special districts to update development impact fee information which includes:

City of Beaumont-Finance Department Policies and Procedures Manual 2024 27 Nexus Studies – Local agencies must prepare and adopt an impact fee nexus study to establish the legal and policy basis for adopting or increasing development impact fees. Nexus studies must be updated at least once every eight years. The City of Beaumont will make all attempts to update the nexus study at least every five-years.

Unfunded Mandates

The City will oppose state or federal actions that mandate expenditures that the Mayor and City Council consider unnecessary and unfunded. The City will pursue intergovernmental funding to support the incremental cost of such mandates.

Debt Management

Public borrowing through lease-purchase agreements, general obligation (GO) bonds, revenue bonds, certificates of participation (COP) or other legal debt instruments may be in the public’s best interest.

However, the City will pursue policies that will not saddle the City and its residents with excessive public debt and will carefully scrutinize any public borrowing proposals. Therefore, the City Council, City Manager or other staff members must use debt in a wise and judicious manner. Where public borrowing is considered appropriate by the City Council. It will be done in compliance with California law and in accordance with the following policies:

1. Debt is limited to equipment purchases and major capital projects. It is not used for general operating expenses. It is the policy of the City to maintain cash balances at a sufficient level for general operating costs (those items normally funded in the City’s annual operating budget and having a useful life of less than one year). Short-term securities may be issued in cases where the City’s normal cash flow has been disrupted as a result of natural disaster or unexpected delays in the receipt of federal or state revenues.

2. The maturity date for any debt does not exceed the reasonable expected useful life of the equipment or capital improvement being financed.

3. When practical, the City will develop, authorize, and issue revenue, special fee or other self- supporting debt instruments instead of incurring long term obligations payable from General Fund revenues.

4. Coverage for revenue bonds or special fee debt instruments shall be determined based on advice of the City’s Municipal Advisor, Bond Counsel and Underwriters in a manner to best align with the City’s financing goals of achieving the lowest cost of borrowing, financial flexibility and security for bond owners.

5. The City will maintain good communication with the public and City Council regarding its financial condition.

6. The City will regularly evaluate its adherence to its debt policies. The City will promote effective communications with bond rating agencies and others in the bond marketplace based on full disclosure.

7. The City will adhere to its Beaumont amended and restated disclosure procedures.

Formatted: Font: Bold

City of Beaumont-Finance Department Policies and Procedures Manual 2024 28 To the extent feasible, debt issuances will be packaged and planned to minimize issuance fees and interest rates.

Risk Management

The City will maintain adequate levels of insurance and implement a risk management program for public liability, workers’ compensation, and related exposures. The program will emphasize avoidance of risk whenever possible, funding for losses which cannot be avoided and transfer of risk to third parties whenever appropriate.

The risk management program will include the systematic and continuous identification of loss perils and exposures, the analysis of these in terms of frequency and severity probabilities, the appropriate application of sound risk control procedures and the financing of potential claims and administration costs within the City budget.

The City will use outside claims administrators.

As part of the annual budget process, staff will segregate and report to the Mayor and City Council the past results of the risk management program, its relative financial status and plans for the future. Resources will be established to fund open claims liabilities, incurred but not reported (IBNR) claims and a catastrophic reserve or insurance as annual recommended by an independent actuary, or as authorized by Generally Accepted Accounting Principles (GAAP).

Interest Earnings

The Finance Department will assign interest earnings and expenses to the appropriate accounting fund based on available cash balances consistent with generally accepted accounting principles (GAAP).

Investment policies will be reviewed annually and brought to the Mayor and Council for approval.

Independent Audits

Staff will regularly use competitive processes to select and rotate new independent auditors that will be responsible for the annual audit of financial records in accordance with state and federal guidelines and generally accepted auditing standards.

The Comprehensive Annual Financial Report (CAFR) or audited financial statements along with the Management Letter and responses from management, will be completed and shared with the City Council.

Internal Control

The City Manager, through the Finance Director, will be responsible for implementing and maintaining a comprehensive system of internal controls that provides reasonable assurance that the City is operating in a way that is consistent with the desires of the City Council. Separation of duties, administrative policies and procedures, accounting and reporting tools and an overall organizational culture will be designed and encouraged to ensure the public’s assets are protected and the City’s business practices are in compliance

City of Beaumont-Finance Department Policies and Procedures Manual 2024 29 with state and federal law, sound ethical principles, best management practices and City Council policy.

Budget Adoption Procedures

Budgetary procedures for the City have been established by the City Council, which require the legal adoption of a budget for all Accounting Funds. The following are the administrative procedures followed by the City in its budgetary process. (Please also see Figure 1.)

1. Budget Preparation. Department heads meet with employees and prepare proposed operating and capital budgets, as well as department goals and performance standards for the coming fiscal year based on guidance provided by the Finance Director, City Manager and City Council. The department heads submit these proposed budgets along with proposed goals and performance standards to City Manager no later than March 1. The Finance Director and City Manager takes information prepared by department heads and prepares the proposed budget for the coming fiscal year for the City Council.

2. Budget Presentation. During the month of May, the City Manager, authorized by the City Council to act as the Budget Officer, submits a proposed operating and capital budget for all Governmental, Proprietary, Fiduciary Funds and other accounting funds to the City Council for the subsequent fiscal year. The budget documents illustrate proposed financing sources along with the proposed operating and capital budget expenditures.

3. Budget Work Meetings. The Finance and Audit Committee will hold one or more public meetings to review the long-term fiscal forecast and the City Council will hold one or more public budget work meetings to review the proposed annual budget.

Figure 1
Annual Budget Calendar
Annual Budget Event Time Comments

Department heads submit proposed
operating and capital budgets, goals
and performance standards to City
Manager.

March 1
City Manager and Finance Director take
information prepared by department heads and
prepare the proposed budget for coming fiscal
year.

City Manager presents proposed
budget to City Council.

May and June
Proposed operating and capital budgets for all
Accounting Funds are distributed to public, press
and City Council. Copies are available for public
review at City Hall and on City website.

City Council reviews budget in work
meetings
May and June City Council conducts reviews during work
meetings.

Public Hearing

June
Public is invited to comment on proposed annual
budget. City Council makes final budget changes.

City Manager incorporates changes made by City
Council into final budget document.

City of Beaumont-Finance Department Policies and Procedures Manual 2024 30 Budget Adoption by City Council

June 30
Final budget is adopted by the City Council.

Since City revenues are highly dependent upon
the actions of the State Legislature, final budget
adoption may be delayed in any given year until
state budget is adopted.

4. Budget Public Hearing. A public hearing is held to receive comments on all aspects of the proposed budget. A notice in the local newspaper precedes the hearing. This notice is given at least ten days before the hearing and includes the time, date and place of the hearing. All budget documents are required to be available at least seven days prior to the public hearing.

5. Budget Adoption. A final budget is adopted by the City Council for the subsequent fiscal year beginning July 1. Since city revenues are highly dependent upon the actions of the State Legislature, final budget adoption may be delayed in any given year until the Governor and State Legislature adopt a state budget.

Staff Report

TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE December 3, 2024
SUBJECT: City of Beaumont Sponsorship and Donation Policy

Description Sponsorship and Donation Policy to support the City of Beaumont’s Adopted Strategic Plan Target #1 Communications/Relationships Goal #2 Develop Funding Sources for Community Events.

Background and Analysis:

The City of Beaumont’s Adopted Strategic Plan Sponsorship Target #1 Communications/Relationships Goal #2 Develop Funding Sources for Community Events. City staff has drafted a Sponsorship and Donation Policy to guide the acceptance, management, and acknowledgement of donations from individuals, organizations, and businesses. This policy aligns with the City’s mission to receive support in a transparent and accountable manner, benefitting community services and programs.

The Financial and Audit Committee reviewed the policy on November 18, 2024, and recommended to move it forward to the City Council for approval.

Fiscal Impact:

The estimated cost to prepare this report is $225.

Recommended Action:

Approve City of Beaumont Sponsorship and Donation Policy.

Attachments:

A. City of Beaumont Sponsorship and Donation Policy

DONATION ACCEPTANCE POLICY
Approved xxxxx

PURPOSE
The purpose of this document is to establish a policy that is consistent with the City’s strategic goals for actively seeking sponsorships and donations in a transparent and accountable manner from individuals, community groups, charitable organizations, and businesses who wish to make sponsorships and donations to the City of Beaumont. Additionally, this policy will provide for uniform criteria and procedures to guide the review and acceptance of such sponsorships and donations, confirm that the City has adequate resources to administer sponsorships and donations, and ensure that the City appropriately acknowledges the generosity of the donor.

DEFINITIONS
Donation or Gift shall mean a monetary contribution, personal property, real property, equipment, tangible items, or any other asset that the City has accepted and for which the donor has not received any legal consideration in return. For purposes of this Policy, the terms “donation” and “gift” shall be synonymous.

Donor shall mean a person or legal entity that proposes or provides a donation to the City.

Endowment shall mean monetary donations that are restricted by the respective donor to the extent that only earnings, and not principal, may be expended by the City for the donor’s designated or intended purposes. Such donations are restricted donations in the sense that the donor-specified purpose is to preserve the purpose of the initial donation.

In-kind donations shall mean a non-cash contribution of goods, services, or other tangible assets made to the city.

Restricted Donation shall mean monetary donations whose expenditure is restricted to a Donor- specified purpose, which may identify a particular City department, program, project, or other purpose as the beneficiary of the donation. For example: such donations may include the funds directed to support a public art initiative or to support construction of a skate park.

Sponsorship shall mean a business relationship where one party (the sponsor) provides financial support, goods, or services to another party (City event or program) in exchange for specific promotional benefits.

Unrestricted Donation shall mean a donation made to the City by a donor without any limitations or restrictions being placed upon its use.

GENERAL GUIDELINES

1. Donations do not become the property of the City until accepted by the City in a manner consistent with this Policy.

2. In the event that any City employee, volunteer, or elected official is offered a restricted donation on behalf of the City, that City employee, volunteer, or elected official shall direct the donor to provide such restricted donation directly to the Finance Department for processing. The Finance Department shall notify the City Manager’s Office immediately with receipt of donation.

3. The City Manager’s Office shall be responsible for authorizing acceptance of restricted donations.

4. In the event that any City employee, volunteer, or elected official is offered an unrestricted donation, they may receive the donation on behalf of the City and are required to bring the donation to the Finance Department for deposit.

5. In order to efficiently accept, expend, and account for funds donated to the City:
a. The City Manager ’s Office shall be responsible for authorizing acceptance of unrestricted donations up to the amount of $30,000 (or equivalent value), except in the case of donations made towards the City’s K9 program, with which those donations are automatically accepted. b. The City Council shall be responsible for authorizing acceptance of unrestricted donations exceeding the amount of $30,000 (or equivalent value).

6. All donations will be evaluated by the City prior to acceptance to determine whether the donation is consistent with the corresponding department or program’s mandate; is in the City’s best interest; and is consistent with applicable City laws, policies, ordinances, and resolutions.

7. The City has no obligation to accept any donation proposed by a donor. The City reserves the right to decline any donation if, upon review, acceptance of the donation is determined in the sole discretion of the City to not be in the best interests of the City.

8. The City does not provide legal, accounting, tax or other such advice to donors. Each donor is ultimately responsible for ensuring the donor’s proposed donation meets and furthers the donor’s charitable, financial, and estate planning goals. As such, each donor is encouraged to meet with a professional advisor before making any donation to the City.

9. On behalf of the City and depending on the amount of an individual donation, the City Manager, or the City Council must determine whether an expenditure of City funds, either a direct outlay of City funds or the use of City employees and materials, is associated with or required by acceptance of that individual donation prior to acceptance.

10. The donation must be used for official City business, and not for political activities or other personal business. Donations may not confer a personal benefit to any City employee or City official.

11. No undue public benefit or similar advantage is to accrue to the donor or to any person affiliated with, related to, or closely connected to the donor because of the donation.

12. A donor may restrict a donation for a particular City department, location or purpose, but not designate the City official who may use the donation.

13. If required, the City will report a donation made to the City to the Fair Political Practices Commission (FPPC) in accordance with the timelines and directives described in title 2, section 18944 of the California Code of Regulations.

14. If a donation to the City is made at an elected City official’s behest from a single source in a calendar year, and the donation meets or exceeds the amount established by the FPPC, the elected City official must file a FPPC Form 803 with the City Clerk disclosing this information.

15. The City department or office administering the donation is responsible for acknowledging receipt of and thanking, on behalf of the City, the donors of donations.

16. The City shall comply with all applicable laws and regulations of the Internal Revenue Service regarding the acceptance of donations.

17. The City department or office administering the donation shall work with the Finance Director or his or her designee to determine the appropriate accounting for the donation.

18. Donors are required to advise the City if the donor is making a donation to the City on a date that falls within thirty (90) days from when the donor, or the donor’s organization or company, was, is, or plans to be involved with an application for a City permit or planning approval or with responding to an active City solicitation for goods and/or services.

POLICY
Unrestricted Donations of Monetary or Tangible Items
All donations to the City shall immediately be submitted for consideration for acceptance. City staff shall review every donation and determine if the benefits to be derived warrant acceptance of the donation.

A. Unrestricted monetary donations will be deposited into the City’s Other Special Revenue Fund.

Council Notification: The Finance Department shall notify the City Council on an annual basis of all accepted and rejected monetary donations received and processed.

Restricted Donations of Monetary or Tangible Items
The City Manager’s Office with the support of the Executive staff will determine whether to accept or reject the donation based on whether the donation:
• is in the City’s best interest and is consistent with applicable City ordinances, resolutions, and policies;
• has any special restrictions and if so, if those restrictions are acceptable to the City; • obligates the City to make an immediate or initial City expenditure which has not been included in the approved City budget; or
• creates a new, one-time or an on-going general maintenance obligation for the City.

Donations of Real Property
The City Council shall be responsible for authorizing acceptance of donations of real property.

The City Manager’s Office shall administer the donation of real property, in conjunction with any other City departments deemed appropriate.

Donations of Trust and Endowment Funds
The Finance Department shall administer donations of trust and endowment funds in accordance with Generally Accepted Accounting Principles applying the relevant Governmental Accounting Standards Board pronouncements.

In general, endowments exist to invest resources for the purpose of generating income. As such, in order for a donation to be considered for the establishment of an endowment fund at the request of the donor, the City in its sole discretion shall apply minimum dollar amount thresholds in keeping with the best interests of the City.

Sponsorships
City sponsorships must align with the agency’s mission and will be presented and evaluated in a non-discriminatory manner.

The City will ensure that all sponsorship opportunities are publicly advertised and accessible to a wide range of potential sponsors.

Sponsorship agreements should be formalized through written contracts that outline the terms, benefits, and obligations of both parties.

Sponsorship revenues must be used in accordance with applicable laws, budgets, and restrictions, and should support the intended program, event, or service.

The sponsorship will be deposited with the Finance Department and accounted for in accordance with Generally Accepted Accounting Principles.

If the sponsorship involves programs funded by federal or state grants, the city will comply with additional regulations such as the Uniform Guidance for federal funds, to ensure no conflicts with grant conditions or objectives.

City of Beaumont Donation Acknowledgement Form
Finance Department
550 E 6th St
Beaumont, CA 92223
Phone: 951-572-3236

DONOR INFORMATION
Company/Individual:

Contact person:

Address:

City/State/Zip:

Phone: Email:

DONATION INFORMATION
Amount of Monetary Donation:

Stated Purpose for Donation:

Description of Gift or In-Kind Donation:

Valuation of Gift or In-Kind Donation:

Any Donor-Specified Restrictions on the Use of the Donation:

Donor Signature: Date Accepted: Signature of City Representative:

Thank you for your donation to the City of Beaumont.

The City Manager’s Office/Finance Department will be in touch with you shortly.

Your generosity is appreciated.

Staff Report

TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE December 3, 2024
SUBJECT: Approval of Supplemental Agreement for 2024-2025 Community Development Block Grant (CDBG) Program

Description This report seeks City Council approval of the 2024-2025 CDBG Program Supplemental Agreement, funding the Pedestrian Sidewalk Safety Improvement Project Phase II and activities by local nonprofit organization s.

Background and Analysis:

The activities outlined in this agreement reflect the priorities identified by the City Council during its meeting on December 5, 2023. Based on the Council's direction, staff applied for funding for the Pedestrian Sidewalk Safety Improvement Project Phase II and two nonprofit-led initiatives: the Court Appointed Special Advocate (CASA) Program and Camp Kids.

The agreement details the allocation of the City’s CDBG entitlement funds, totaling $151,223, with $131,223 allocated to the Pedestrian Sidewalk Safety Improvement Project Phase II and $20,000 administered by the County for nonprofit activities. These projects were selected to address critical community needs and align with the City’s goals for improving infrastructure and supporting local services.

The agreement also specifies the City’s obligations for compliance, project implementation, and reporting under the CDBG program, ensuring alignment with federal guidelines.

Fiscal Impact:

The City has been allocated $151,223 in CDBG entitlement funds for the 2024 -2025 program year, with $131,223 designated for City-administered activities. The County will administer the remaining $20,000 for countywide programs. There is no additional cost to the City’s General Fund as these activities are fully funded through CDBG allocations.

The estimated cost to prepare this report is $175.

Recommended Action:

Approve the Supplemental Agreement for the 2024-2025 CDBG Program; and Authorize the City Manager to execute the agreement and return required documentation to the County of Riverside.

Attachments:

A. Supplemental Agreement for 2024-2025 CDBG Program
B. Supplemental Agreement Scope of Work (Exhibit A)

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File No.: 5.BEA.51-24, 0.262-24, 0.271-24

SUPPLEMENTAL AGREEMENT FOR THE USE OF
2024-2025 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS

This Supplemental Agreement (“Agreement”) is entered into by and between the COUNTY OF RIVERSIDE, a political subdivision of the State of California, herein called, "COUNTY," and the CITY OF BEAUMONT, a political subdivision of the State of California, herein called "CITY." COUNTY and CITY are collectively referred to as “Parties” and individually as “Party.” The COUNTY and CITY mutually agree as follows:

1. GENERAL. COUNTY and CITY have executed a Cooperation Agreement, dated August 1, 2023 (“Cooperation Agreement”), whereby CITY elected to participate with COUNTY, which has qualified as an "Urban County" for purposes of receiving Community Development Block Grant (CDBG) funds (“CDBG”), and to assist and undertake essential community development and hou sing assistance activities pursuant to the Housing and Community Development Act of 1974, Title 1, as amended, Public Law 93-383 hereinafter referred to as "Act." Said Cooperation Agreement, dated August 1, 2023, is incorporated herein by reference and made a part of this Agreement as if each and every provision was set forth herein.

2. PURPOSE. CITY has been allocated $151,223 in CDBG Entitlement funds for the 2024- 2025 CDBG program year. CITY promises and agrees to undertake and assist with the community development activities, within its jurisdiction, by utilizing the sum of $131,223 CDBG Entitlement Funds, as specifically identified in Exhibit(s) A, B, and C, attached hereto, and are incorporated herein by this reference, for the following project(s) (collectively, the “Projects”):

A) 5.BEA.51-24 Pedestrian Sidewalk Safety Improvement Project Phase II, $131,223.

CITY has allocated the remaining $20,000 from its 2024-2025 CDBG allocation to certain activities identified below, hereinafter referred to as “County-wide Activities,” that will be directly administered by COUNTY:

B) 0.262-24 Court Appointed Special Advocate (CASA) Program $10,000 C) 0.271-24 Camp Kids $10,000

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3. TERM OF AGREEMENT. The term of this Agreement for the implementation of the Project(s) shall be for a period of one (1) year from July 1, 2024, to termination on June 30, 2025.

4. COMPLETION SCHEDULE. CITY shall proceed consistent with the completion schedule set forth in Exhibit(s) A, B, and C, attached hereto and incorporated herein.

5. EXTENSION OF TIME. In the event the Project(s) are not substantially completed by the time set forth in the applicable completion schedule(s) due to a force majeure event (See Section 40 below), the COUNTY may consider extending the schedule for the completion of the project(s). Times of performance for other activities may also be extended in writing by COUNTY. If substantial progress toward completion in conformance with the completion schedule, as determined by COUNTY in its discretion, of the project(s) not made during the term of this Supplemental Agreement, COUNTY may suspend or terminate this Supplemental Agreement pursuant to the termination procedures set forth in the section titled "Termination," and the entitlement funds associated with the Project(s) may be reprogrammed by the COUNTY after appropriate notice is provided to the City.

6. LETTER TO PROCEED. CITY shall not initiate nor incur expenses for the CDBG- funded Projects or activities covered under the terms of this Supplemental Agreement as set forth in Exhibit(s) A, B, and C, attached hereto, prior to receiving written authorization from COUNTY to proceed.

7. NOTICES. Each notice, request, demand, consent, approval or other communication (hereinafter in this Section referred to collectively as “notices” and referred to singly as a “notice”) which the CITY or COUNTY is required or permitted to give to the other party pursuant to this Agreement shall be in writing and shall be deemed to have been duly and sufficiently given if: (a) personally delivered with proof of delivery thereof (any notice so delivered shall be d eemed to have been received at the time so delivered); or (b) sent by Federal Express (or other similar national overnight courier) designating early morning delivery (any notice so delivered shall be deemed to have been received on the next Business Day following receipt by the courier); or (c) sent by United States registered or certified mail, return receipt requested, postage prepaid, at a post office regularly maintained by the United States Postal Service (any notice so sent shall be deemed to have been received two days after mailing in the United States), addressed to the respective parties as follows:

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COUNTY CITY
Heidi Marshall, Director Elizabeth Gibbs, City Manager Riverside County HWS City of Beaumont
P.O. Box 1528 550 E 6th Street
Riverside, CA 92502 Beaumont, CA 92223

8. DISBURSEMENT OF FUNDS.

A. COUNTY's Board of Supervisors shall determine the final disposition and distribution of all funds received by COUNTY under the Act consistent with Sections 2 and 3 of this Supplemental Agreement. COUNTY, through its Department of Housing, and Workforce Solutions, shall make payment of the CDBG funds to CITY as set forth in the attached Exhibit(s) A, B, and C. It is the CITY’s responsibility to monitor all project activities set forth in the attached Exhibit(s) A, B, and C, and to ensure compliance with applicable federal regulations and the terms of this Supplemental Agreement.

B. CITY shall comply with timely drawdown of CDBG Entitlement funding by expeditiously implementing and completing the COUNTY-approved, CDBG-funded Projects. CITY acknowledges that CITY’s drawdown performance directly impacts the COUNTY’s overall program drawdown rate. If the CITY’s unobligated CDBG fund balance, as of January 31, 2025, exceeds one hundred and seventy-five percent (175%) of the CITY’s 2024-2025 CDBG allocation, the COUNTY may, in its sole discretion, take the necessary administrative actions to reduce the CITY’s CDBG fund balance. Necessary actions include, but are not limited to, reprogramming the excess CDBG fund balance to other eligible activities as selected by COUNTY. COUNTY may, in its sole and absolute discretion, authorize CITY in writing, prior to January 31, 2025, to exceed the CDBG fund balance requirement.

C. CITY shall comply with timely drawdown of CDBG funds by submitting monthly requests for reimbursement or other COUNTY approved reimbursement schedules. All disbursements of CDBG funds will be on a reimbursement basis and made within thirty (30) days after the COUNTY has received the CITY’s reimbursement request including documentation supporting expenditures.

D. All authorized obligations incurred in the performance of the Supplemental Agreement for projects eligible under the following CDBG regulations must be reported in writing to

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COUNTY no later than June 1, 2025:

1. Acquisition [24 Code of Federal Regulations (CFR) 570.201 (a)]

2. Clearance Activities [24 CFR 570.201 (d)]

3. Interim Assistance [24 CFR 570.201 (f)]

4. Code Enforcement [24 CFR 570.202 (c)]
All public service activities [24 CFR 570.201 (e)] and other eligible activities under this Supplemental Agreement must be implemented, completed, and obligations reported in writing to the COUNTY by the CITY no later than the completion schedules set forth in the attached Exhibits to this Supplemental Agreement. ”CFR” as used herein refers to the Code of Federal Regulations.

9. RECORDS AND INSPECTIONS.

A. CITY shall establish and maintain financial, programmatic, statistical, and other supporting records of its operations and financial activities in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Section 570.502 (a), as they relate to the acceptance and use of federal funds under this Agreement. Said records shall be retained for a period of four (4) years from the date that the activity or program funded with the CDBG Grant is closed out by the COUNTY and reported as complete in the Comprehensive Annual Performance and Evaluation Report (CAPER). Exceptions to the four (4) year retention period requirement, pursuant to 2 CFR 200.333 include, but not limited to, the following:
i. if any litigation, claim, or audit is started prior to the expiration of the four (4) year period;
ii. when the CITY is notified in writing by the COUNTY, HUD, or other Federal agency to extend the retention period;
iii. records for real property and equipment acquired with CDBG funds must be retained for four (4) years after final disposition; iv. when the records are transferred by the CITY to the COUNTY, HUD, or other Federal agency, the four (4) year period is not applicable.

B. CITY shall obtain an external audit in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR

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Section 200.500). Audits shall usually be performed annually but not less frequently than every two years. Nonprofit institutions and government agencies that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements, but records must be available for review by appropriate officials of the Federal grantor agency or subgranting entity. The audit report shall be submitted to the COUNTY within 180 days after the end of the COUNTY'S fiscal year.

C. CITY shall maintain a separate account for the CITY’S CDBG Entitlement funds received as set forth in Exhibit(s) A, B, and C, attached hereto.

D. Pursuant to 2 CFR 200.336, CITY shall, during the normal business hours, make available to COUNTY, the U.S. Department of Housing and Urban Development (HUD), or other authorized representative, for the examination and copying, all of its records and other materials with respect to matters covered by this Agreement and provide reasonable access to CITY staff for the purpose of interview and discussion related to the records and documents.

E. CITY shall not retain any program income as defined in 24 CFR 570.500. Said program income shall be used only for the activities that are the subject of this Agreement. Further, all provisions of this Agreement shall apply to such activities.

F. The CITY shall ensure that at least fifty-one percent (51%) of the persons benefiting from all CDBG-funded activities or projects designated as serving limited clientele [24 CFR 570.208(a)(2)(i)] are of low and moderate-income and meet the applicable household income guidelines.

The CITY shall provide the required income certification and direct benefit documentation, in writing, to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit(s) A, B, and C, attached hereto. In the event that CITY engages the services of a sub -contractor to implement CDBG-funded activities, the CITY must collect, in writing, all required income certification and direct benefit documentation from subcontractors prior to submittal to the COUNTY pursuant to the reporting requirement of each activity as set forth in Exhibit(s) A, B, and C, attached hereto.

10. COMPLIANCE WITH LAWS. CITY shall comply with all applicable federal, state, and local laws, regulations, and ordinances and any amendments thereto and the federal regulations and guidelines now or hereafter enacted pursuant to the Act. More particularly, CITY is to comply with those regulations found in the Uniform Administrative Requirements, Cost Principles, and Audit

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Requirements for Federal Awards (2 CFR Part 200), and 24 CFR Part 570. CITY is to abide by the provisions of the Community Development Block Grant Manual, prepared by COUNTY and cited in the above-mentioned Cooperation Agreement. CITY shall comply, if applicable, with Section 3 of the Housing & Urban Development Act of 1968 (12 U.S.C.A. Section 1701u), as amended, a copy of which is attached hereto as Exhibit “S”, and incorporated herein by this reference. CITY shall adhere to the regulations as set forth in Exhibit “R”, attached hereto and incorporated herein by this reference, pertaining to inherently religious activities. CITY shall comply with the Additional Federal Requirements, if applicable, attached hereto as Exhibit “AFR”, and incorporated herein by this reference.

11. COOPERATION WITH HOUSING ACTIVITIES. CITY shall cooperate with COUNTY in undertaking essential community development and housing assistance activities, specifically urban renewal and public assistance housing, and shall assist COUNTY in implementing and undertaking the goals and strategies identified in the 2024-2029 Five Year Consolidated Plan, pursuant to 24 CFR Part 91 and other requirements of the Community Development Block Grant Program.

12. LEAD AGENCY FOR COMPLIANCE WITH THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT (CEQA). Pursuant to Title 14 CCR Section 1501(d), the CITY is designated as the lead agency for the projects that are the subject matter of this Supplemental Agreement.

13. HOLD HARMLESS AND INDEMNIFICATION. In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon pu blic entities solely by reason of such entities being parties to an agreement as defined by Section 895 of the Code, the Parties hereto, pursuant to the authorization contained in Section 895.4 and 895.6 of the Code, agree that each Party shall be liable for any damages including, but not limited to, claims, demands, losses, liabilities, costs and expenses including reasonable attorneys’ fees, resulting from the negligent or wrongful acts or omissions of their employees or agents in the performance of this Agreement, and each Party shall indemnify, defend and hold harmless the other Parties from such claims, demands, damages, losses or liabilities for their negligence.

The hold harmless and indemnification obligations set forth herein shall survive the termination

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and expiration of this Agreement. In the event there is conflict between this clause and California Civil Code Section 2782, this clause shall be interpreted to comply with Civil Code 2782. Such interpretation shall not relieve the CITY from indemnifying the Indemnitees to the fullest extent allowed by law.

14. INSURANCE. Without limiting or diminishing the CITY’s obligation to indemnify or hold the COUNTY harmless, CITY shall procure and maintain or cause to be maintained, at its sole cost and expense, the following insurance coverage’s during the term of this Agreement. As respects to the insurance section only, the COUNTY herein refers to the County of Riverside, its Agencies, Districts, Special Districts, and Departments, their respective directors, officers, Board of COUNTY OF RIVERSIDE Supervisors, employees, elected or appointed officials, agents, or representatives as Additional Insureds
a. Workers’ Compensation:

If the CITY has employees as defined by the State of California, the CITY shall maintain statutory Workers' Compensation Insurance (Coverage A) as prescribed by the laws of the State of California. Policy shall include Employers’ Liability (Coverage B) including Occupational Disease with limits not less than $1,000,000 per person per accident. The policy shall be endorsed to waive subrogation in favor of the County of Riverside.
b. Commercial General Liability:

Commercial General Liability insurance coverage, including but not limited to, premises liability, contractual liability, products and completed operations liability, personal and advertising injury, and cross liability coverage, covering claims which may arise from or out of CITY’S performance of its obligations hereunder. Policy shall name the County of Riverside as Additional Insured. Policy’s limit of liability shall not be less than $2,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit.b.1 Sexual Abuse or Molestation (SAM) Liability:

If the work will include contact with minors, and the Commercial General Liability policy is not endorsed to include affirmative coverage for sexual abuse or molestation, Vendor/Contractor shall obtain and maintain a policy covering Sexual Abuse and Molestation with a limit no less than $2,000,000

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per occurrence or claim.
c. Vehicle Liability:

If vehicles or mobile equipment are used in the performance of the obligations under this Agreement, then CITY shall maintain liability insurance for all owned, non -owned or hired vehicles so used in an amount not less than $1,000,000 per occurrence combined single limit. If such insurance contains a general aggregate limit, it shall apply separately to this agreement or be no less than two (2) times the occurrence limit. Policy shall name the County of Riverside as Additional Insured. d. General Insurance Provisions - All lines:
(i). Any insurance carrier providing insurance coverage hereunder shall be admitted to the State of California and have an A M BEST rating of not less than A: VIII (A:8) unless such requirements are waived, in writing, by the County Risk Manager. If the County’s Risk Manager waives a requirement for a particular insurer such waiver is only valid for that specific insurer and only for one policy term.
(ii). The CITY must declare its insurance self-insured retentions. If such self- insured retentions exceed $500,000 per occurrence such retentions shall have the prior written consent of the County Risk Manager before the commencement of operations under this Agreement. Upon notification of self-insured retention unacceptable to the COUNTY, and at the election of the Country’s Risk Manager, CITY’S carriers shall either; 1) reduce or eliminate such self-insured retention as respects this Agreement with the COUNTY, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses. (iii). CITY shall cause CITY’S insurance carrier(s) to furnish the County of Riverside with either 1) a properly executed original Certificate(s) of Insurance and certified original copies of Endorsements effecting coverage as required herein, and 2) if requested to do so orally or in writing by the County Risk Manager, provide original Certified copies of policies including all Endorsements and all attachments thereto, showing such insurance is in full force and effect. Further, said Certificate(s) and policies of insurance shall contain the covenant of the insurance carrier(s) that thirty (30) days written notice shall be given to the County of Riverside prior to any material

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modification, cancellation, expiration or reduction in coverage of such insurance. In the event of a material modification, cancellation, expiration, or reduction in coverage, this Agreement shall terminate forthwith, unless the County of Riverside receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage’s set forth herein and the insurance required herein is in full force and effect. CITY shall not commence operations until the COUNTY has been furnished original Certificate (s) of Insurance and certified original copies of endorsements and if requested, certified original policies of insurance including all endorsements and any and all other attachments as required in this Section. An individual authorized by the insurance carrier to do so on its behalf shall sign the original endorsements for each policy and the Certificate of Insurance.
(iv). It is understood and agreed to by the parties hereto that the CITY’S insurance shall be construed as primary insurance, and the COUNTY'S insurance and/or deductibles and/or self-insured retention’s or self-insured programs shall not be construed as contributory. (v). If, during the term of this Agreement or any extension thereof, there is a material change in the scope of services; or, there is a material change in the equipment to be used in the performance of the scope of or, the term of this Agreement, including any extensions thereof, exceeds five (5) years, the COUNTY reserves the right to adjust the types of insurance required under this Agreement and the monetary limits of liability for the insurance coverage’s currently required herein, if; in the County Risk Manager's reasonable judgment, the amount or type of insurance carried by the CITY has become inadequate.
(vi). CITY shall pass down the insurance obligations contained herein to all tiers of subcontractors working under this Agreement.
(vii). The insurance requirements contained in this Agreement may be met with a program(s) of self-insurance acceptable to the COUNTY. (viii). CITY agrees to notify COUNTY of any claim by a third party or any incident or event that may give rise to a claim arising from the performance of this Agreement.

15. INDEPENDENT CONTRACTOR. The CITY is, for purposes relating to this

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Supplemental Agreement, an independent contractor and shall not be deemed an employee of the COUNTY. It is expressly understood and agreed that the CITY (including its employees, agents and subcontractor’s) shall in no event be entitled to any benefits to which the COUNTY employees are entitled, including but not limited to overtime, any retirement benefits, worker's compensation benefits, and injury leave or other leave benefits. There shall be no employer-employee relationship between the parties; and the CITY shall hold the COUNTY harmless from any and all claims that may be made against the COUNTY based upon any contention by a third party that an employer-employee relationship exists by reason of this Supplemental Agreement. It is further understood and agreed by the parties that the CITY in the performance of this Supplemental Agreement is subject to the control or direction of the COUNTY merely as to the results to be accomplished and not as to the means and methods for accomplishing the results.

16. NONDISCRIMINATION. CITY shall abide by 24 CFR Sections 570.601 and 570.602 of Title 24 of the Code of Federal Regulations which requires that no person in the United States shall on the grounds of race, color, national origin, sex, sexual orientation, gender identity, or veterans status be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with Community Development funds.

CITY shall abide by and include in any subcontracts to perform work under this Supplemental Agreement, the following clause:
"During the performance of this Supplemental Agreement, CITY and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical disability, medical condition, marital status, veterans status, sexual orientation, gender identity, age (over 40) or sex. CITY and subcontractors shall insure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. CITY and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (California Government Code Section 12900 et seq.). The applicable regulations of the Fair Employment and Housing Commission are implementing California Government Code Section 12990 et seq., set forth in Chapter 1 of Division 4.1 of Title 2 of the California Administrative Code are incorporated into this Agreement by reference and made a part hereof as if set forth in full. CITY and its subcontractors

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shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement."

17. PROHIBITION AGAINST CONFLICTS OF INTEREST
A. CITY and its assigns, employees, agents, consultants, officers and elected and appointed officials shall become familiar with and shall comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and the CDBG regulations prohibiting conflicts of interest contained in 24 CFR 570.611.

B. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds.

C. No employee, officer or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved.

D. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decision-making process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ti es, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Grantee, the Subrecipient, or any designated public agency.

E. CITY understands and agrees that no waiver of exception can be granted to the prohibition against conflict of interest except upon written approval of HUD pursuant to 24 CFR 570.611(d). Any request by CITY for an exception shall first be reviewed by COUNTY to determine whether such request is appropriate for submission to HUD in the COUNTY’S sole and absolute discretion. In determining whether such request is appropriate for submission to HUD, COUNTY will consider the factors listed in 24 CFR 570.611(d)(2).

F. Prior to the distribution of any CDBG funding under this Supplemental

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Agreement, CITY shall provide COUNTY, in writing, a list of all employees, agents, consultants, officers and elected and appointed officials who are in a position to participate in a decision making process, exercise any functions or responsibilities, or gain inside information with respect to the CDBG activities funded under this Agreement. CITY shall also promptly disclose to COUNTY any potential conflict, including even the appearance of conflict that may arise with respect to the CDBG activities funded under this Supplemental Agreement.

G. Any violation of this Section 17 shall be deemed a material breach of this Supplemental Agreement, and the Supplemental Agreement shall be immediately terminated by the COUNTY.

18. LOBBYING. CITY certifies to the best of its knowledge and belief, that:
a. No federally-appropriated funds have been paid or will be paid, by or on behalf of the CITY, to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a m ember of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement.
b. If any funds other than federally-appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the CITY shall complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. c. CITY shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into.

19. TERMINATION.

A. CITY. CITY may not terminate this Agreement except upon express written

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consent of COUNTY, pursuant to 2 CFR 200.339 (a)(3).

B. COUNTY. Notwithstanding the provisions of Paragraph 19a above, COUNTY may suspend or terminate this Supplemental Agreement upon a ten (10) day written notice to CITY of action being taken and the reason for such action including, but not limited to, the following reasons:
(1) In the event CITY fails to perform the covenants herein contained at such times and in such manner as provided in this Supplemental Agreement; and (2) In the event there is a conflict with any federal, state or local law, ordinance, regulation or rule rendering any of the provisions of this Supplemental Agreement invalid or untenable; or
(3) In the event the funding from the Department of Housing and Urban Development referred to in Sections 1 and 2 above is terminated or otherwise becomes unavailable.

C. This Agreement may be terminated and/or funding suspended, in whole or in part, for cause in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200.339). Cause shall be based on the failure of the CITY to materially comply with either the terms or conditions of this Agreement. Upon suspension of funding, the CITY agrees not to incur any costs related thereto, or connected with, any area of conflict from which the COUNTY has determined that suspension of funds is necessary. CITY acknowledges that failure to comply with Federal statutes, regulations, or the terms and conditions of this Agreement may be considered by the COUNTY in evaluating future CDBG and non-CDBG funding applications submitted by CITY.

D. Upon suspension or termination of this Supplemental Agreement, CITY shall return any unencumbered funds which it has been provided by COUNTY. In accepting said funds, COUNTY does not waive any claim or cause of action it may have against CITY for breach of this Supplemental Agreement.

E. Reversion of Assets

1. Upon expiration or termination of this Supplemental Agreement, the CITY shall transfer to the COUNTY any CDBG funds on hand at the time of expiration of the Supplemental Agreement as well as any accounts receivable held by CITY which are attributable to the use of CDBG funds awarded pursuant to this Supplemental Agreement.

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2. Any real property under the CITY’S control that was acquired or improved in whole or in part with CDBG funds (including CDBG funds provided to the CITY in the form of a loan) in excess of $25,000 is either:
(i) Used to meet one of the National Objectives pursuant to 24 CFR 570.208 until five years after expiration of this agreement, or for such longer period of time as determined to be appropriate by the COUNTY; or
(ii) Not used in accordance with Clause (i) above, in which event the CITY shall pay the COUNTY an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for the acquisition of, or improvement to, the property.

20. PUBLICITY. Any publicity generated by CITY for the Projects funded pursuant to this Supplemental Agreement will make reference to the contribution of the COUNTY, the Department of Housing, and Workforce Solutions, and the Community Development Block Grant Program in making the project possible.

21. PROGRAM MONITORING AND EVALUATION. CITY and its subcontractors shall be monitored and evaluated in terms of its effectiveness and timely compliance with the provisions of this Supplemental Agreement and the effective and efficient achievement of the CDBG National Objectives as set forth in Exhibit(s)A, B, and C, attached hereto. Quarterly reports shall be due on the last day of the month immediately following the end of the quarter being reported. The quarterly written reports shall include, but shall not be limited to, the following data elements:

A. Title of program, listing of components, description of activities/operations.

B. The projected goals, indicated numerically, and also the goals achieved (for each report period). In addition, identify by percentage and description, the progress achieved towards meeting the specified goals and identify any problems encountered in meeting goals.

C. If the CDBG-funded activity meets a National Objective under 24 CFR 570.208 (a)(2)(i), CITY will report the following:
1) Total number of direct beneficiaries (clientele served) with median household incomes (MHI) at:
 Above 80% MHI

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 Between 50% and 80% MHI (Low-Income)
 Between 30% and 50% MHI (Very Low-Income)
 Less than 30% MHI (Extremely Low-Income)
2) Total number and percent (%) of the clientele served that have household incomes at or below 80% MHI
3) Racial ethnicity of clientele
4) Number of Female-Headed Households
D. CITY shall report, in writing, and cause its subcontractors to report, in writing, beneficiary statistics monthly to Housing and Workforce Solutions (HWS) on the pre-approved Direct Benefit Form and Self-Certification Form (certifying income, family size, and racial ethnicity) as required by HUD. Updated forms are to be provided to CITY by HWS should HUD implement changes during the term of this Supplemental Agreement. CITY and subcontractors will collect and provide all necessary data required by HUD pertaining to the Specific Outcome Indicators as identified in HUD’s Community Planning and Development (CPD) Outcome Performance Measurement System.

22. PRIOR AUTHORIZATION. CITY shall obtain COUNTY's written approval from HWS prior to implementing the following “high risk” activities funded with CDBG assistance:

A. Construction of public facilities (project plans and specifications); B. Acquisition of real property;
C. Historic Preservation;
D. Relocation; and
F. Economic Development

23. PRIOR COUNTY APPROVAL (CONSTRUCTION ACTIVITIES). CITY shall obtain COUNTY's written approval, through its HWS, of the project plans, specifications, and construction documents prior to CITY’S construction of same for all projects consisting of CDBG-funded construction activities. The COUNTY neither undertakes nor assumes nor will have any responsibility or duty to CITY or to any third party to review, inspect, supervise, pass judgment upon or inform CITY or any third party of any matter in connection with the development or con struction of the improvements, whether regarding the quality, adequacy or suitability of the plans, any labor, service,

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equipment or material furnished to the property, any person furnishing the same, or otherwise. CITY and all third parties shall rely upon its or their own judgment regarding such matters, and any review, inspection, supervision, exercise of judgment or information supplied to CITY or to any third party by the COUNTY in connection with such matter is for the public purpose of assisting with a community development and housing activity pursuant to the Act, and neither CITY (except for the purposes set forth in this Agreement) nor any third party is entitled to rely thereon. The COUNTY shall not be responsible for any of the work of construction, improvement, or development of the property.

It is the responsibility of CITY, without cost to COUNTY, to ensure that all applicable local jurisdiction land use requirements will permit development of the property and construction of the improvements and the use, operation, and maintenance of such Improvements in accordance with the provisions of this Agreement. Nothing contained herein shall be deemed to entitle Sponsor to any local jurisdiction or County permit or other local jurisdiction or County approval necessary for the development of the Property, or waive any applicable local jurisdiction or County requirements relating thereto. This Agreement does not (a) grant any land use entitlement to CITY, (b) supersede, nullify, or amend any condition which may be imposed by the local jurisdiction in connection with approval of the development described herein, (c) guarantee to CITY or any other party any profits from the development of the Property, or (d) amend any local jurisdiction or County laws, codes or rules.

City agrees and acknowledges that it is the responsibility of City to obtain a legal determination at City’s sole cost and expense, as to whether prevailing wages must be paid during construction of the Project. If the Project is subject to prevailing wages, then City shall be solely responsible to pay its contractors and subcontractors the required prevailing wage rate. City agrees to indemnif y, defend, and hold County harmless from and against any liability arising out of and related to City’s failure to comply with any and all Davis Bacon and or prevailing wage requirements.

24. PRIOR COUNTY APPROVAL (AQUISITION ACTIVITIES). CITY shall obtain COUNTY's written approval and authorization to proceed, through HWS, of all CDBG-funded real

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property acquisition activities.

25. REAL PROPERTY ACQUIRED OR PUBLIC FACILITY CONSTRUCTED WITH CDBG FUNDS. When CDBG funds are used, in whole or in part, by CITY to acquire real property or to construct a public facility, CITY will comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Section 200.311); National Environmental Policy Act of 1969 (42 U.S.C.A. §4321, et seq.); the California Environmental Quality Act (Cal. Pub. Resources Code §21000, et seq.); the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C.A. §4630, et seq.); and the COUNTY’s Five Year Consolidated Plan. In addition, the following is to occur:
a. Title to the real property shall vest in CITY;
b. The real property will be held by CITY, or the constructed facility will be maintained by the CITY, for a minimum period of five (5) years from the date the CDBG-funded activity is closed-out and reported as complete by the COUNTY through the Comprehensive Annual Performance and Evaluation Report (CAPER);
c. While held by CITY, the real property or the constructed facility is to be used exclusively for the purposes for which acquisition or construction was originally approved by COUNTY;
d. Written approval from COUNTY must be secured if the property or the facility is to be put to an alternate use that is consistent with the COUNTY’S Five-Year Consolidated Plan or the applicable federal regulations governing CDBG funds;
e. Should CITY desire to use the real property or the constructed facility, prior to the completion of the mandatory five-year period, for a purpose not consistent with applicable federal regulations governing CDBG funds or to sell the real property or facility, then:
(1) If CITY desires to retain title, CITY will reimburse COUNTY the amount that represents the percentage of current fair market value that is identical to the percentage that CDBG funds initially comprised of monies paid to acquire the property or construct the facility; or (2) If CITY sells the property or facility or is required to sell the property or

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facility, CITY shall reimburse COUNTY the amount that represents the percentage of proceeds realized by the sale that is identical to the percentage that CDBG funds initially comprised of monies paid to acquire the property or construct the facility. This percentage amount will be calculated after deducting all actual and reasonable cost of sale from the sale proceeds.

26. ENTIRE AGREEMENT. This Supplemental Agreement, including any attachments or exhibits hereto constitutes the entire Supplemental Agreement of the parties with respect to its subject matter and supersedes all prior and contemporaneous representations, proposals, discussions and communications, whether oral or in writing. No oral understanding or agreement not incorporated herein shall be binding on any of the parties hereto. Each of the attachments and exhibits attached hereto is incorporated herein by this reference.

27. SEVERABILITY. Each section, paragraph and provision of this Supplemental Agreement is severable from each other provision, and if any provision or part thereof is declared invalid, the remaining provisions shall remain in full force and effect.

28. EMPLOYMENT OPPORTUNITIES TO BE CAUSED BY PROJECT. CITY agrees to notify in writing, and to cause any subcontractor implementing CDBG-funded Projects to notify, in writing, the Riverside County Workforce Development Center of any and all job openings that are caused by the CDBG-funded Projects under this Supplemental Agreement.

29. MINISTERIAL ACTS. The Director of Housing and Workforce Solutions or designee(s) are authorized to take such ministerial actions as may be necessary or appropriate to implement the terms, provisions, and conditions of this Supplemental Agreement as it may be amended from time-to-time by COUNTY.

30. PROJECT ELIGIBILITY. As to CITY or its claimants, COUNTY shall bear no liability for any later determination by the United States Government, the U.S. Department of Housing and Urban Development, or any other person or entity that CITY is or is not eligible under 24 CFR Part 570 to receive CDBG entitlement funds from the COUNTY.

31. SOURCE OF FUNDING. CITY acknowledges that the source of funding pursuant to this Supplemental Agreement is Community Development Block Grant funds (CFDA 14.218), and the Grant Award Number is B-24-UC-06-0506.

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32. ASSIGNMENT. The CITY shall not make any assignment or transfer in any form with respect to this Supplemental Agreement, without prior written approval of the COUNTY.

33. INTERPRETATION AND GOVERNING LAW. This Supplemental Agreement and any dispute arising hereunder shall be governed by and interpreted in accordance with the laws of the State of California. This Supplemental Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Supplemental Agreement, all parties having been represented by counsel in the negotiation and preparation hereof.

34. WAIVER. Failure by a party to insist upon the strict performance of any of the provisions of this Supplemental Agreement by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s rights to insist and demand strict compliance by the other party with the terms of this Supplemental Agreement thereafter.

35. JURISDICTION AND VENUE: Any action at law or in equity arising under this Supplemental Agreement or brought by a party hereto for the purpose of enforcing, construing or determining the validity of any provision of this Supplemental Agreement shall be filed only in the Superior Court of the State of California, located in Riverside, California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court or jurisdiction

36. USE OF PROPERTY. Whenever federal CDBG funds or program income are used, in whole or in part, for the purchase of equipment or personal property, the property shall not be transferred from its originally funded use, by CITY or the CITY’S subcontractor implementing the CDBG-funded activity, for a period of five (5) years from the close-out date of the grant from which CDBG assistance was provided. The CITY shall maintain a current inventory for COUNTY monitoring and review.

37. AUTHORITY TO EXECUTE. The persons executing this Supplemental Agreement or exhibits attached hereto on behalf of the parties to this Supplemental Agreement hereby warrant and represent that they have the authority to execute this Supplemental Agreement and warrant and represent that they have the authority to bind the respective parties to this Supplemental Agreement to the performance of its obligations hereunder.

38. EFFECTIVE DATE. The effective date of this Supplemental Agreement is the date the

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parties sign the Supplemental Agreement. If the parties sign the Supplemental Agreement on more than one date, then the last date the Supplemental Agreement is signed by a party shall be the effective date.

39. COUNTERPARTS. This Supplemental Agreement may be signed by the different parties hereto in counterparts, each of which shall be an original but all of which together shall constitute one and the same agreement.

40. FORCE MAJEURE.

A. Performance by either party hereunder shall not be deemed to be in default where delays or defaults are due to war, insurrection, strikes, lock-outs, riots, floods, earthquakes, fires, casualties, acts of God, acts of the public enemy, epidemics, pandemic, quarantine restrictions, freight embargoes, lack of transportation, governmental restrictions or priority, litigation, unusually severe weather, inability to secure necessary labor, material or tools, delays of any contractor, sub -contractor or supplier, acts of the other party, acts or failure to act of a public or governmental agency or entity, or any causes beyond the control or without the fault of the party claiming an extension of time to perform.

B. An extension of time for any such cause (a “Force Majeure Delay”) shall be for the period of the enforced delay and shall commence to run from the time of the commencement of the cause, if notice by the party claiming such extension is sent to the other party within thirty (30) calendar days of knowledge of the commencement of the cause. Notwithstanding the foregoing, none of the foregoing events shall constitute a Force Majeure Delay unless and until the party claiming such delay and interference delivers to the other party written notice describing the event, its cause, when and how such party obtained knowledge, the date the event commenced, and the estimated delay resulting therefrom. Any party claiming a Force Majeure Delay shall deliver such written notice within thirty (30) calendar days after it obtains knowledge of the event.

41. MODIFICATION OF AGREEMENT. This Supplemental Agreement may be modified or amended only by a writing signed by the duly authorized and empowered representative of COUNTY and CITY respectively.

42. DIGITAL AND ELECTRONIC SIGNATURES. The parties agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions Act ((“CUETA”) Cal. Civ. Code §§ 1633.1 to 1633.17). The parties further agree that the

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electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to CUETA as amended from time to time. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.

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IN WITNESS WHEREOF, the COUNTY and the CITY have executed this Agreement as of the dates set forth below.

COUNTY OF RIVERSIDE, CITY OF BEAUMONT,
a political subdivision of the A general law city
State of California

BY: ____________________________ BY: _________________________ Juan Garcia, Name:

Deputy Director
Title:

Date: Date:

APPROVED AS TO FORM: ATTEST:

MINH C. TRAN

COUNTY COUNSEL

By: ____________________________ BY: _________________________ Paula S. Salcido, City Clerk
Deputy County Counsel

APPROVED AS TO FORM:

BY: __________________________
City Attorney

EXHIBIT "R"

24 C.F.R. § 5.109

Equal participation of faith-based organizations in
HUD programs and activities.

Effective: May 4, 2016

(a) Purpose.

Consistent with Executive Order 13279 (issued on December 12, 2002, 67 FR 77141), entitled “Equal Protection of the Laws for Faith–Based and Community Organizations,” as amended by Executive Order 13559 (issued on November 17, 2010, 75 FR 71319), entitled “Fundamental Principles and Policymaking Criteria for Partnerships With Faith–Based and Other Neighborhood Organizations,”, and further amended by Executive Order 13831 (issued on May 3, 2018, 83 FR 20715) entitled “Establishment of a White House Faith and Opportunity Initiative,” this section describes requirements for ensuring the equal participation of faith-based organizations in HUD programs and activities. These requirements apply to all HUD programs and activities, including all of HUD’s Native American Programs, except as may be otherwise noted in the respective program regulations in title 24 of the Code of Federal Regulations (CFR), or unless inconsistent with certain HUD program authorizing statutes.

b) Definitions. The following definitions apply to this section:

Direct Federal financial assistance means Federal financial assistance provided when a Federal Government agency or an intermediary, as defined in this section, selects the provider and either purchases services from tha t provider (i.e., via a contract) or awards funds to that provider to carry out an activity (e.g., via grant, sub -grant, sub-award, or cooperative agreement). The recipients of sub-grants or sub-awards that receive Federal financial assistance through State-administered programs (e.g., flow-through programs) are considered recipients of direct Federal financial assistance. In general, Federal financial assistance shall be treated as direct, unless it meets the definition of indirect Federal financial assistance.

Federal financial assistance means assistance that non–Federal entities receive or administer in the forms of grants, contracts, loans, loan guarantees, property, cooperative agreements, food commodities, direct appropriations, or other assistance, but does not include a tax credit, deduction, or exemption.

Indirect Federal financial assistance means Federal financial assistance provided when the choice of the provider is placed in the hands of the beneficiary, and the cost of that service is paid through a voucher, certificate, or other similar means of Government -funded payment. Federal financial assistance provided to an organization is considered indirect when the Government program through which the beneficiary receives the voucher, certificate, or other similar means of Government-funded payment is neutral toward religion meaning that it is available to providers without regard to the religious or non-religious nature of the institution and there are no program incentives that deliberately skew for or against religious or secular providers; and the organization receives the assistance as a result of a genuine, independent choice of the beneficiary.

Intermediary means an entity, including a nongovernmental organization, acting under a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that accepts Federal financial assistance and distributes that assistance to other entities that, in turn, carry out activities under HUD programs.

(c) Equal participation of faith-based organizations in HUD programs and activities.

Faith-based organizations are eligible, on the same basis as any other organization, to participate in any HUD program or activity, considering any permissible accommodations, particulary under the Religious Freedome Restoration Act. Neither the Federal Government, nor a State, tribal or local government, nor any other entity that administers any HUD program or activity, shall discriminate against an organization on the basis of the organization’s religious character, affiliation, or lack thereof, or on the basis of the organization’s religious exercise. For purposes of this part, to discriminate against an organization on the basis of the organization’s religious exercise means to disfavor an organization, including by failing to select an organization, disqualifying an organization, or imposing any condition or selection criterion that otherwise disfavors or penalizes an organization in the selection process or has such an effect:

(1) Because of conduct that would not be considered grounds to disfavor a secular organization; (2) Because of conduct that must or could be granted an appropriate accommodation in a manner consistent with RFRA (42 U.S.C. 2000bb through 2000bb-4) or the Religion Clauses of the First Amendment to the Constitution; or
(3) Because of the actual or suspected religious motivation of the organization's religious exercise. (4) In addition, decisions about awards of Federal financial assistance must be free from political interference or even the appearance of such interference and must be made on the basis of merit, not based on the organization's religious character, affiliation, or lack thereof, or based on the organization's religious exercise. Notices of funding availability, grant agreements, and cooperative agreements shall include language substantially similar to that in appendix A to this subpart, where faith-based organizations are eligible for such opportunities.

(d) Independence and identity of faith-based organizations.

(1) A faith-based organization that applies for, or participates in, a HUD program or activity supported with Federal financial assistance retains its autonomy, right of expression, religious character, authority over its governance, and independence, and may continue to carry out its mission, including the definition, development, practice, and expression of its religious beliefs. A faith-based organization that receives Federal financial assistance from HUD does not lose the protections of law.

(2) A faith-based organization that receives direct Federal financial assistance may use space (including a sanctuary, chapel, prayer hall, or other space) in its facilities (including a temple, synagogue, church, mosque, or other place of worship) to carry out activities under a HUD program without concealing, altering, or removing religious art, icons, scriptures, or other religious symbols. In addition, a faith -based organization participating in a HUD program or activity retains its authority over its internal governance, and may retain religious terms in its organization’s name, select its board members and employees on the basis of their acceptance of or adherence to the religious tenets of the organization consistent with paragraph (i) of this section), and include religious references in its organization’s mission statements and other governing documents.

(e) Explicitly religious activities.

If an organization engages in explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), the explicitly religious activities must be offered separately, in time or location, from the programs or activities supported by direct Federal financial assistance and participation must be voluntary for the beneficiaries of the programs or activities that receive direct Federal financial assistance. The use of indirect Federal financial assistance is not subject to this restriction. Nothing in this part restricts HUD’s authority under applicable Federal law to fund activities, that can be direct ly funded by the Government consistent with the Establishment Clause of the U.S. Constitution.

(f) Intermediary responsibilities to ensure equal participation of faith-based organizations in HUD programs.

If an intermediary - acting under a contract, grant, or other agreement with the Federal Government or with a State, tribal or local government that is administering a program supported by Federal financial assistance - is

given the authority to select a nongovernmental organization to receive Federal financial assistance under a contract, grant, sub-grant, sub-award, or cooperative agreement, the intermediary must ensure that such organization complies with the requirements of this section. If the intermediary is a nongovernmental organization, it retains all other rights of a nongovernmental organization under the program’s statutory and regulatory provisions.

(g) Nondiscrimination requirements.

Any organization that receives Federal financial assistance under a HUD program or activity shall not, in providing services with such assistance or carrying out activities with such assistance, discriminate against a beneficiary or prospective beneficiary on the basis of religion, religious belief, a refusal to hold a religious belief, or a refusal to attend or participate in a religious practice. However, an organization that participates in a program funded by indirect Federal financial assistance need not modify its program or activities to accommodate a beneficiary who chooses to expend the indirect aid on the organization's program and may require attendance at all activities that are fundamental to the program.

(h) No additional assurances from faith-based organizations.

A faith-based organization is not rendered ineligible by its religious nature to access and par ticipate in HUD programs. Absent regulatory or statutory authority, no notice of funding availability, grant agreement, cooperative agreement, covenant, memorandum of understanding, policy, or regulation that is used by HUD or a recipient or intermediary in administering Federal financial assistance from HUD shall require otherwise eligible faith-based organizations to provide assurances or notices where they are not required of similarly situated secular organizations. All organizations that participate in HUD programs or activities, including organizations with religious character or affiliations, must carry out eligible activities in accordance with all program requirements, subject to any required or appropriate accommodation, particularly under the Religious Freedom Restoration Act, and other applicable requirements governing the conduct of HUD-funded activities, including those prohibiting the use of direct financial assistance to engage in explicitly religious activities. No notice of funding availability, grant agreement, cooperative agreement, covenant, memorandum of understanding, policy, or regulation that is used by HUD or a recipient or intermediary in administering financial assistance from HUD shall disqualify otherwise eligible faith-based organizations from participating in HUD's programs or activities because such organization is motivated or influenced by religious faith to provide such programs and activities, or because of its religious character or affiliation, or on grounds that discriminate against an organization on the basis of the organization's religious exercise, as defined in this part.

(i) Exemption from Title VII employment discrimination requirements.

A religious organization’s exemption from the Federal prohibition on employment discrimination on the basis of religion, set forth in section 702(a) of the Civil Rights Act of 1964 (42 U.S.C. 2000e–1), is not forfeited when the organization participates in a HUD program. Some HUD programs, however, contain independent statutory provisions that impose certain nondiscrimination requirements on all grantees. Accordingly, grantees should consult with the appropriate HUD program office to determine the scope of applicable requirements.

(j) Acquisition, construction, and rehabilitation of structures.

Direct Federal financial assistance may be used for the acquisition, construction, or rehabilitation of structures only to the extent that those structures are used for conducting eligible activities under a HUD program or activity.

Where a structure is used for both eligible and explicitly religious activities (including activities that involve overt religious content such as worship, religious instruction, or proselytization), direct Federal financial assistance may not exceed the cost of the share of acquisition, construction, or rehabilitation attributable to eli gible activities in accordance with the cost accounting requirements applicable to the HUD program or activity. However,

acquisition, construction, or rehabilitation of sanctuaries, chapels, or other rooms that a HUD–funded faith-based organization uses as its principal place of worship, may not be paid with direct Federal financial assistance.

Disposition of real property by a faith-based organization after its use for an authorized purpose, or any change in use of the property from an authorized purpose, is subject to Government-wide regulations governing real property disposition (2 CFR part 200, subpart D) and the HUD program regulations, as directed by HUD.

(k) Commingling of Federal and State, tribal, and local funds.

If a State, tribal, or local government voluntarily contributes its own funds to supplement direct Federal financial assistance for an activity, the State, tribal or local government has the option to segregate those funds or commingle them with the direct Federal financial assistance. However, if the funds are commingled, the requirements of this section apply to all of the commingled funds. Further, if a State, tribal, or local government is required to contribute matching funds to supplement direct Federal financial assistance for an activity, the matching funds are considered commingled with the direct Federal financial assistance and, therefore, subject to the requirements of this section. Some HUD programs’ requirements govern any activity assisted under those programs. Accordingly, recipients should consult with the appropriate HUD program office to determine the scope of applicable requirements.

(l) Tax exempt organizations.

In general, HUD does not require that a recipient, including a faith-based organization, obtain tax-exempt status under section 501(c)(3) of the Internal Revenue Code to be eligible for funding under HUD programs. Many grant programs, however, do require an organization to be a nonprofit organization in order to be eligible for funding.

Notices of funding availability that require organizations to have nonprofit status will specifically so indicate in the eligibility section of the notice of funding availability. In addition, if any notice of funding availability requires an organization to maintain tax-exempt status, it will expressly state the statutory authority for requiring such status. Applicants should consult with the appropriate HUD program office to determine the scope of any applicable requirements. In HUD programs in which an applicant must show that it is a nonprofit organization but this is not statutorily defined, the applicant may do so by any of the following means:

(1) Proof that the Internal Revenue Service currently recognizes the applicant as an organization to which contributions are tax deductible under section 501(c)(3) of the Internal Revenue Code; (2) A statement from a State or other governmental taxing body or the State secretary of State certifying that - (i) The organization is a nonprofit organization operating within the State; and (ii) No part of its net earnings may benefit any private shareholder or individual;

(3) A certified copy of the applicant's certificate of incorporation or similar document that clearly establishes the nonprofit status of the applicant;
(4) Any item described in paragraphs (l)(1) through (3) of this section, if that item applies to a State of national parents organization, together with a statement by the State of parent or ganization that the applicant is a local nonprofit affiliate; or
(5) For an entity that holds a sincerely held religious belief that it cannot apply for a determination as an entity that is tax-exempt under section 501(c)(3) of the Internal Revenue Code, evidence sufficient to establish that the entity would otherwise qualify as a nonprofit organization under paragraphs (l)(1) through (4) of this section.

(m) Rule of construction.

Neither HUD nor any recipient or other intermediary receiving funds under any HUD program or activity shall construe these provisions in such a way as to advantage or disadvantage faith-based organizations affiliated with historic or well-established religions or sects in comparison with other religions or sects.

Credits

[69 FR 41717, July 9, 2004; 80 FR 75934, Dec. 7, 2015; 81 FR 19416, April 4, 2016; 85 FR 82315, Dec 17, 2020]

SOURCE: 61 FR 5202, Feb. 9, 1996; 61 FR 9041, March 6, 1996; 61 FR 9537, March 8, 1996; 61 FR 11113, March 18, 1996; 61 FR 13616, March 27, 1996; 61 FR 54498, Oct. 18, 1996; 70 FR 77743, Dec. 30, 2005; 73 FR 72340, Nov. 28, 2008; 75 FR 66258, Oct. 27, 2010; 77 FR 5674, Feb. 3, 2012; 80 FR 42352, July 16, 2015; 81 FR 19416, April 4, 2016; 81 FR 80798, Nov. 16, 2016; 81 FR 90657, Dec. 14, 2016, unless otherwise noted.

AUTHORITY: 12 U.S.C. 1701x; 42 U.S.C. 1437a, 1437c, 1437d, 1437f, 1437n, 3535(d); Sec. 327, Pub.L. 109– 115, 119 Stat. 2936; Sec. 607, Pub.L. 109–162, 119 Stat. 3051 (42 U.S.C. 14043e et seq.); E.O. 13279, 67 FR 77141, 3 CFR, 2002 Comp., p. 258; and E.O. 13559, 75 FR 71319, 3 CFR, 2010 Comp., p. 273.; 29 U.S.C. 794, 42 U.S.C. 1437a, 1437c, 1437c–1(d), 1437d, 1437f, 1437n, 3535(d), and Sec. 327, Pub.L. 109–115, 119 Stat. 2936; 42 U.S.C. 3600–3620; 42 U.S.C. 5304(b); 42 U.S.C. 12101 et seq.; 42 U.S.C. 12704–12708; E.O. 11063, 27 FR 11527, 3 CFR, 1958–1963 Comp., p. 652; E.O. 12892, 59 FR 2939, 3 CFR, 1994 Comp., p. 849.

EXHIBIT “S”

Economic Opportunities for Low- and Very Low-Income Persons

CONTRACT REQUIREMENTS
24 CFR Part 75

RIVERSIDE COUNTY

Section 75.1 Purpose

This part establishes the requirements to be followed to ensure the objectives of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) (Section 3) are met. The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent.

Section 75.3 Applicability

(a) General applicability. Section 3 applies to public housing financial assistance and Section 3 projects, as follows:

(1) Public housing financial assistance. Public housing financial assistance means:

(i) Development assistance provided pursuant to section 5 of the United States Housing Act of 1937 (the 1937 Act);

(ii) Operations and management assistance provided pursuant to section 9(e) of the 1937 Act;

(iii) Development, modernization, and management assistance provided pursuant to section 9(d) of the 1937 Act; and

(iv) The entirety of a mixed-finance development project as described in 24 CFR 905.604, regardless of whether the project is fully or partially assisted with public housing financial assistance as defined in paragraphs (a)(1)(i) through (iii) of this section.

(2) Section 3 projects. (i) Section 3 projects means housing rehabilitation, housing construction, and other public construction projects assisted under HUD programs that provide housing and community development financial assistance when the total amount of assistance to the project exceeds a threshold of $200,000. The threshold is $100,000 where the assistance is from the Lead Hazard Control and Healthy Homes programs, as authorized by Sections 501 or 502 of the Housing and Urban Development Act of 1970 (12 U.S.C. 1701z-1 or 1701z-2), the Lead-Based Paint Poisoning Prevention Act (42 U.S.C 4801 et seq.); and the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.). The project is the site or sites together with any building(s) and improvements located on the site(s) that are under common ownership, management, and financing.

(ii) The Secretary must update the thresholds provided in paragraph (a)(2)(i) of this section not less than once every 5 years based on a national construction cost inflation factor through Federal Register notice not subject to public comment. When the Secretary finds it is warranted to ensure compliance with Section 3, the Secretary may adjust, regardless of the national construction cost factor, such thresholds through Federal Register notice, subject to public comment.

(iii) The requirements in this part apply to an entire Section 3 project, regardless of whether the project is fully or partially assisted under HUD programs that provide housing and community development financial assistance.

(b) Contracts for materials. Section 3 requirements do not apply to material supply contracts.

(c) Indian and Tribal preferences. Contracts, subcontracts, grants, or subgrants subject to Section 7(b) of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5307(b)) or subject to tribal preference requirements as authorized under 101(k) of the Native American Housing Assistance and Self-Determination Act (25 U.S.C. 4111(k)) must provide preferences in employment, training, and business opportunities to Indians and Indian organizations, and are therefore not subject to the requirements of this part.

(d) Other HUD assistance and other Federal assistance. Recipients that are not subject to Section 3 are encouraged to consider ways to support the purpose of Section 3.

Section 75. 5 Definitions.

The terms HUD, Public housing, and Public Housing Agency (PHA) are defined in 24 CFR part

5. The following definitions also apply to this part:

1937 Act means the United States Housing Act of 1937, 42 U.S.C. 1437 et seq.

Contractor means any entity entering into a contract with:

(1) A recipient to perform work in connection with the expenditure of public housing financial assistance or for work in connection with a Section 3 project; or

(2) A subrecipient for work in connection with a Section 3 project.

Labor hours means the number of paid hours worked by persons on a Section 3 project or by persons employed with funds that include public housing financial assistance.

Low-income person means a person as defined in Section 3(b)(2) of the 1937 Act.

Material supply contracts means contracts for the purchase of products and materials, including, but not limited to, lumber, drywall, wiring, concrete, pipes, toilets, sinks, carpets, and office supplies.

Professional services means non-construction services that require an advanced degree or professional licensing, including, but not limited to, contracts for legal services, financial

consulting, accounting services, environmental assessment, architectural services, and civil engineering services.

Public housing financial assistance means assistance as defined in §75.3(a)(1).

Public housing project is defined in 24 CFR 905.108.

Recipient means any entity that receives directly from HUD public housing financial assistance or housing and community development assistance that funds Section 3 projects, including, but not limited to, any State, local government, instrumentality, PHA, or other public agency, public or private nonprofit organization.

Section 3 means Section 3 of the Housing and Urban Development Act of 1968, as amended (12 U.S.C. 1701u).

Section 3 business concern means:

(1) A business concern meeting at least one of the following criteria, documented within the last six-month period:

(i) It is at least 51 percent owned and controlled by low- or very low-income persons;

(ii) Over 75 percent of the labor hours performed for the business over the prior three- month period are performed by Section 3 workers; or

(iii) It is a business at least 51 percent owned and controlled by current public housing residents or residents who currently live in Section 8-assisted housing.

(2) The status of a Section 3 business concern shall not be negatively affected by a prior arrest or conviction of its owner(s) or employees.

(3) Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern. Section 3 business concerns are not exempt from meeting the specifications of the contract.

Section 3 project means a project defined in §75.3(a)(2).

Section 3 worker means:

(1) Any worker who currently fits or when hired within the past five years fit at least one of the following categories, as documented:

(i) The worker's income for the previous or annualized calendar year is below the income limit established by HUD.

(ii) The worker is employed by a Section 3 business concern.

(iii) The worker is a YouthBuild participant.

(2) The status of a Section 3 worker shall not be negatively affected by a prior arrest or conviction.

(3) Nothing in this part shall be construed to require the employment of someone who meets this definition of a Section 3 worker. Section 3 workers are not exempt from meeting the qualifications of the position to be filled.

Section 8-assisted housing refers to housing receiving project-based rental assistance or tenant- based assistance under Section 8 of the 1937 Act.

Service area or the neighborhood of the project means an area within one mile of the Section 3 project or, if fewer than 5,000 people live within one mile of a Section 3 project, within a circle centered on the Section 3 project that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census.

Small PHA means a public housing authority that manages or operates fewer than 250 public housing units.

Subcontractor means any entity that has a contract with a contractor to undertake a portion of the contractor's obligation to perform work in connection with the expenditure of public housing financial assistance or for a Section 3 project.

Subrecipient has the meaning provided in the applicable program regulations or in 2 CFR 200.93.

Targeted Section 3 worker has the meanings provided in §§75.11, 75.21, or 75.29, and does not exclude an individual that has a prior arrest or conviction.

Very low-income person means the definition for this term set forth in section 3(b)(2) of the 1937 Act.

YouthBuild programs refers to YouthBuild programs receiving assistance under the Workforce Innovation and Opportunity Act (29 U.S.C. 3226).

Subpart C—Additional Provisions for Housing and Community Development Financial Assistance
§75.19 Requirements.
(a) Employment and training. (1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure that employment and training opportunities arising in connection with Section 3 projects are provided to Section 3 workers within the metropolitan area (or nonmetropolitan county) in which the project is located.
(2) Where feasible, priority for opportunities and training described in paragraph (a)(1) of this section should be given to:

(i) Section 3 workers residing within the service area or the neighborhood of the project, and (ii) Participants in YouthBuild programs.
(b) Contracting. (1) To the greatest extent feasible, and consistent with existing Federal, state, and local laws and regulations, recipients covered by this subpart shall ensure contracts for work awarded in connection with Section 3 projects are provided to business concerns that provide economic opportunities to Section 3 workers residing within the metropolitan area (or nonmetropolitan county) in which the project is located.
(2) Where feasible, priority for contracting opportunities described in paragraph (b)(1) of this section should be given to:
(i) Section 3 business concerns that provide economic opportunities to Section 3 workers residing within the service area or the neighborhood of the project, and (ii) YouthBuild programs.
§75.21 Targeted Section 3 worker for housing and community development financial assistance. (a) Targeted Section 3 worker. A Targeted Section 3 worker for housing and community development financial assistance means a Section 3 worker who is:
(1) A worker employed by a Section 3 business concern; or (2) A worker who currently fits or when hired fit at least one of the following categories, as documented within the past five years:
(i) Living within the service area or the neighborhood of the project, as defined in §75.5; or (ii) A YouthBuild participant.
(b) [Reserved]
§75.23 Section 3 safe harbor.
(a) General. Recipients will be considered to have complied with requirements in this part, in the absence of evidence to the contrary if they:
(1) Certify that they have followed the prioritization of effort in §75.19; and (2) Meet or exceed the applicable Section 3 benchmark as described in paragraph (b) of this section.
(b) Establishing benchmarks. (1) HUD will establish Section 3 benchmarks for Section 3 workers or Targeted Section 3 workers or both through a document published in the FEDERAL REGISTER. HUD may establish a single nationwide benchmark for Section 3 workers and a single nationwide

benchmark for Targeted Section 3 workers, or may establish multiple benchmarks based on geography, the nature of the Section 3 project, or other variables. HUD will update the benchmarks through a document published in the FEDERAL REGISTER, subject to public comment, not less frequently than once every 3 years. Such notice shall include aggregate data on labor hours and the proportion of recipients meeting benchmarks, as well as other metrics reported pursuant to §75.25 as deemed appropriate by HUD, for the 3 most recent reporting years. (2) In establishing the Section 3 benchmarks, HUD may consider the industry averages for labor hours worked by specific categories of workers or in different localities or regions; averages for labor hours worked by Section 3 workers and Targeted Section 3 workers as reported by recipients pursuant to this section; and any other factors HUD deems important. In establishing the Section 3 benchmarks, HUD will exclude professional services from the total number of labor hours as such hours are excluded from the total number of labor hours to be reported per §75.25(a)(4). (3) Section 3 benchmarks will consist of the following two ratios:
(i) The number of labor hours worked by Section 3 workers divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year. (ii) The number of labor hours worked by Targeted Section 3 workers as defined in §75.21(a), divided by the total number of labor hours worked by all workers on a Section 3 project in the recipient's program year.
§75.25 Reporting.
(a) Reporting of labor hours. (1) For Section 3 projects, recipients must report in a manner prescribed by HUD:
(i) The total number of labor hours worked;
(ii) The total number of labor hours worked by Section 3 workers; and (iii) The total number of labor hours worked by Targeted Section 3 workers. (2) Section 3 workers' and Targeted Section 3 workers' labor hours may be counted for five years from when their status as a Section 3 worker or Targeted Section 3 worker is established pursuant to §75.31.
(3) The labor hours reported under paragraph (a)(1) of this section must include the total number of labor hours worked on a Section 3 project, including labor hours worked by any subrecipients, contractors and subcontractors that the recipient is required, or elects pursuant to paragraph (a)(4) of this section, to report.
(4) Recipients reporting under this section, as well as subrecipients, contractors and subcontractors who report to recipients, may report labor hours by Section 3 workers, under paragraph (a)(1)(ii) of this section, and labor hours by Targeted Section 3 workers, under paragraph (a)(1)(iii) of this section, from professional services without including labor hours from professional services in the

total number of labor hours worked under paragraph (a)(1)(i) of this section. If a contract covers both professional services and other work and the recipient or contractor or subcontractor chooses not to report labor hours from professional services, the labor hours under the contract that are not from professional services must still be reported.
(5) Recipients may report their own labor hours or that of a subrecipient, contractor, or subcontractor based on the employer's good faith assessment of the labor hours of a full-time or part- time employee informed by the employer's existing salary or time and attendance based payroll systems, unless the project or activity is otherwise subject to requirements specifying time and attendance reporting.
(b) Additional reporting if Section 3 benchmarks are not met. If the recipient's reporting under paragraph (a) of this section indicates that the recipient has not met the Section 3 benchmarks described in §75.23, the recipient must report in a form prescribed by HUD on the qualitative nature of its activities and those its contractors and subcontractors pursued. Such qualitative efforts may, for example, include but are not limited to the following:
(1) Engaged in outreach efforts to generate job applicants who are Targeted Section 3 workers. (2) Provided training or apprenticeship opportunities.
(3) Provided technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching).
(4) Provided or connected Section 3 workers with assistance in seeking employment including:
drafting resumes, preparing for interviews, and finding job opportunities connecting residents to job placement services.
(5) Held one or more job fairs.
(6) Provided or referred Section 3 workers to services supporting work readiness and retention (e.g., work readiness activities, interview clothing, test fees, transportation, child care). (7) Provided assistance to apply for/or attend community college, a four-year educational institution, or vocational/technical training.
(8) Assisted Section 3 workers to obtain financial literacy training and/or coaching. (9) Engaged in outreach efforts to identify and secure bids from Section 3 business concerns. (10) Provided technical assistance to help Section 3 business concerns understand and bid on contracts.
(11) Divided contracts into smaller jobs to facilitate participation by Section 3 business concerns. (12) Provided bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns.

(13) Promoted use of business registries designed to create opportunities for disadvantaged and small businesses.
(14) Outreach, engagement, or referrals with the state one-stop system as defined in Section 121(e)(2) of the Workforce Innovation and Opportunity Act. (c) Reporting frequency. Unless otherwise provided, recipients must report annually to HUD under paragraph (a) of this section, and, where required, under paragraph (b) of this section, on all projects completed within the reporting year in a manner consistent with reporting requirements for the applicable HUD program.
§75.27 Contract provisions.
(a) Recipients must include language applying Section 3 requirements in any subrecipient agreement or contract for a Section 3 project.
(b) Recipients of Section 3 funding must require subrecipients, contractors, and subcontractors to meet the requirements of §75.19, regardless of whether Section 3 language is included in recipient or subrecipient agreements, program regulatory agreements, or contracts.

Subpart D—Provisions for Multiple Funding Sources, Recordkeeping, and Compliance
§75.29 Multiple funding sources.
(a) If a housing rehabilitation, housing construction or other public construction project is subject to Section 3 pursuant to §75.3(a)(1) and (2), the recipient must follow subpart B of this part for the public housing financial assistance and may follow either subpart B or C of this part for the housing and community development financial assistance. For such a project, the following applies:
(1) For housing and community development financial assistance, a Targeted Section 3 worker is any worker who meets the definition of a Targeted Section 3 worker in either subpart B or C of this part; and
(2) The recipients of both sources of funding shall report on the housing rehabilitation, housing construction, or other public construction project as a whole and shall identify the multiple associated recipients. PHAs and other recipients must report the following information:
(i) The total number of labor hours worked on the project; (ii) The total number of labor hours worked by Section 3 workers on the project; and (iii) The total number of labor hours worked by Targeted Section 3 workers on the project. (b) If a housing rehabilitation, housing construction, or other public construction project is subject to Section 3 because the project is assisted with funding from multiple sources of housing and community development assistance that exceed the thresholds in §75.3(a)(2), the recipient or recipients

must follow subpart C of this part, and must report to the applicable HUD program office, as prescribed by HUD.
§75.31 Recordkeeping.
(a) HUD shall have access to all records, reports, and other documents or items of the recipient that are maintained to demonstrate compliance with the requirements of this part, or that are maintained in accordance with the regulations governing the specific HUD program by which the Section 3 project is governed, or the public housing financial assistance is provided or otherwise made available to the recipient, subrecipient, contractor, or subcontractor. (b) Recipients must maintain documentation, or ensure that a subrecipient, contractor, or subcontractor that employs the worker maintains documentation, to ensure that workers meet the definition of a Section 3 worker or Targeted Section 3 worker, at the time of hire or the first reporting period, as follows:
(1) For a worker to qualify as a Section 3 worker, one of the following must be maintained:
(i) A worker's self-certification that their income is below the income limit from the prior calendar year;
(ii) A worker's self-certification of participation in a means-tested program such as public housing or Section 8-assisted housing;
(iii) Certification from a PHA, or the owner or property manager of project-based Section 8- assisted housing, or the administrator of tenant-based Section 8-assisted housing that the worker is a participant in one of their programs;
(iv) An employer's certification that the worker's income from that employer is below the income limit when based on an employer's calculation of what the worker's wage rate would translate to if annualized on a full-time basis; or
(v) An employer's certification that the worker is employed by a Section 3 business concern. (2) For a worker to qualify as a Targeted Section 3 worker, one of the following must be maintained:
(i) For a worker to qualify as a Targeted Section 3 worker under subpart B of this part:
(A) A worker's self-certification of participation in public housing or Section 8-assisted housing programs;
(B) Certification from a PHA, or the owner or property manager of project-based Section 8- assisted housing, or the administrator of tenant-based Section 8-assisted housing that the worker is a participant in one of their programs;
(C) An employer's certification that the worker is employed by a Section 3 business concern; or

(D) A worker's certification that the worker is a YouthBuild participant. (ii) For a worker to qualify as a Targeted Section 3 worker under subpart C of this part:
(A) An employer's confirmation that a worker's residence is within one mile of the work site or, if fewer than 5,000 people live within one mile of a work site, within a circle centered on the work site that is sufficient to encompass a population of 5,000 people according to the most recent U.S. Census; (B) An employer's certification that the worker is employed by a Section 3 business concern; or (C) A worker's self-certification that the worker is a YouthBuild participant. (c) The documentation described in paragraph (b) of this section must be maintained for the time period required for record retentions in accordance with applicable program regulations or, in the absence of applicable program regulations, in accordance with 2 CFR part 200. (d) A PHA or recipient may report on Section 3 workers and Targeted Section 3 workers for five years from when their certification as a Section 3 worker or Targeted Section 3 worker is established. §75.33 Compliance.
(a) Records of compliance. Each recipient shall maintain adequate records demonstrating compliance with this part, consistent with other recordkeeping requirements in 2 CFR part 200. (b) Complaints. Complaints alleging failure of compliance with this part may be reported to the HUD program office responsible for the public housing financial assistance or the Section 3 project, or to the local HUD field office.
(c) Monitoring. HUD will monitor compliance with the requirements of this part. The applicable HUD program office will determine appropriate methods by which to oversee Section 3 compliance. HUD may impose appropriate remedies and sanctions in accordance with the laws and regulations for the program under which the violation was found

EXHIBIT A
File No.: 5.BEA.51-24

SUPPLEMENTAL AGREEMENT

SCOPE OF WORK
(NON-PUBLIC SERVICE)

I. GENERAL INFORMATION

CITY NAME: City of Beaumont UEI #: R8CSKWJ1NDK5

ADDRESS: 550 E. 6th Street

Beaumont, CA 92223

PROGRAM CONTACTS: Elizabeth Gibbs, City Manager

PHONE: (951) 769-8520 FAX: (951) 769-8526

E-MAIL: [email protected]

PROJECT NAME: Pedestrian Sidewalk Safety Improvements Project Phase II

PROJECT LOCATION: Various locations within the City of Beaumont

LEVEL OF ENVIRONMENTAL CLEARANCE: CATEGORICAL EXCLUSION

CDBG ELIGIBILITY CODE: 570.201 (c)

PROJECT FUNDING SUMMARY: $ 131,223

Project to be administered by County (HWS) on behalf of City: YES NO

II. SCOPE OF SERVICE

A. Activities

City will be responsible for administering a 2024-2025 Community Development Block Grant for the Pedestrian Sidewalk Safety Improvements Project II in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program:

Activity #1 The City of Beaumont will use CDBG funds to continue sidewalk improvements to improve pedestrian safety. Improvements include, but are not limited to, lighting, sidewalk installation, and curb and gutter repairs. CDBG funds will be used for design and engineering, construction, project management, and other related costs.

EXHIBIT A
File No.: 5.BEA.51-24

B. National Objective

All activities funded with CDBG funds must comply with one of more of the CDBG program’s National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity(ies) carried out under this Agreement will meet the following National Objective:

National Objective Criteria: 570.208 (a)(1)(i)

CFR Reference: Low Mod Area

C. Levels of Accomplishment – Goals and Performance Measures

The City agrees to implement and complete the following activity(ies):

Activity #1 Design and engineering, construction, and project management expenses.

CPD OUTCOME PERFORMANCE MEASUREMENT

Objectives (select one): Creating Suitable Living Environments Providing Decent Affordable Housing
Creating Economic Opportunities

Outcome (select one): Availability/Accessibility
Affordability
Sustainability (promoting livable or viable communities)

D. City Capacity

By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds.

City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City or subrecipient’s performance under this Agreement.

Any changes in the above items are subject to the prior approval of the County.

E. Performance Monitoring

The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated.

EXHIBIT A
File No.: 5.BEA.51-24

F. Program Budget

It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $131,223 Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient’s financial management system in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City.

Line Item CDBG Granted
Funds
Total of Non-
CDBG Funds
Total Activity/Project
Budget
Notes
Design/Engineering Costs

Project Administration Costs

Construction Costs

X

Acquisition Costs

Relocations Costs

Capital Equipment Costs

Code Enforcement

Clearance

Interim Assistance

Indirect Costs:

TOTAL CDBG BUDGET $131,223 $131,223

EXHIBIT A
File No.: 5.BEA.51-24

G. Total Amount of Non- CDBG Leveraging

TYPE SOURCE AMOUNT SOURCE AMOUNT SOURCE AMOUNT TOTAL

FEDERAL

STATE/LOCAL

PRIVATE
OTHER
TOTAL: ____$0.00
III. ADMINISTRATIVE REQUIREMENTS

A. Accounting Standards

The City agrees to comply with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.

B. Cost Principles

The City shall administer its program in conformance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200).

These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.

C. Documentation and Record Keeping

1. Records to be Maintained

The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506 that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:

I Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program;
iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance;
v. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program;
vi. Financial records as required by 24 CFR 570.502, and 2 CFR 200; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.

EXHIBIT A
File No.: 5.BEA.51-24

2. Records Retention

The City shall retain all CDBG-related financial records, supporting documents, contracts, and agreements for a period of four (4) years. The retention period begins on the date of the submission of the County’s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported for the final time. The City will retain all National Objective documentation, including low-moderate income certification, ethnicity, and other pertinent data for a period of four (4) years after submission of the County’s annual performance and evaluation report to HUD.

Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the four-year period, then such records must be retained until completion of the actions and resolution of all issues.

3. Client Data

The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request.

4. Disclosure

The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County’s or City’s responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.

5. Close-outs

The City’s obligation to the County shall not end until all close-out requirements are completed.

Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income.

6. Audits & Inspections

All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Controller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits the Single Audit Act, and the Office of Management and Budget (OMB) Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance).

EXHIBIT A
File No.: 5.BEA.51-24

IV. PROJECT IMPLEMENTATION AND SCHEDULE

Unless pre-approved by County, City will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below:

Tasks / Milestone Start Date Completion Date
Complete CDBG Training September 2024 September 2024 Implement Project Activities Upon Notification from HWS Execute Supplemental Agreement September 2024 January 2025 & Notice to Incur Cost
Tasks / Milestone Start Date Completion Date
Submit Quarterly Performance Reports to County October 2024 Through June 2026 County Monitoring of City Program/Performance To be determined by Program Manager Specific Project Activities

1. City executes Supplemental Agreement; receives Authorization to Incur Cost letter

2. City prepares final construction documents (incorporating Special Federal Provisions) for HWS review and approval

3. HWS authorizes City to advertise for bids

4. HWS reviews and approves bidding process

5. City awards construction contract

6. City and HWS conduct “pre-construction meeting”

7. HWS authorizes City to issue “Notice to Proceed”
City Submits Reimbursement Requests
Monthly Submittal
Other Schedule To be determined by Program Manager

CDBG-funded Project Complete June 15, 2026

V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS

The City must follow proper procurement and construction policies and procedures of the City and CDBG regulations. Construction shall commence using CDBG funding with a Notice to Proceed.

A pre-construction meeting is required. The City must contact the CDBG Program Manager for review before submitting RFP, construction activity, or cost without prior written approval. The County must be contacted 10 (ten) days in advance for attendance of the Pre-Construction meeting.

Original signed Certified payrolls are to be submitted on a weekly basis to the HWS -CDBG program manager once construction starts.

Staff Report

TO: City Council
FROM: Elizabeth Gibbs, City Manager
DATE December 3, 2024
SUBJECT: Continuation of a Public Hearing of Request to Appeal Notice of Finding Under Development Agreement

Description Tri Pointe Homes has requested an appeal of the City Manager’s Notice of Finding Under Development Agreement dated August 17, 2004.

Background and Analysis:

On November 26, 2024 via written request, Tri Pointe Homes requested that City Council continue the public hearing to December 17, 2024. On going discussions continue between the City and Tri Pointe and by continuing the public hearing, both parties will have further opportunities to meet and confer.

Fiscal Impact:

Staff estimates the cost to prepare this staff report is approximately $187. There is no fiscal impact.

Recommended Action:

Continue the Request to Appeal Notice of Finding Under Development Agreement dated August 17, 2004, to the City Council Meeting of December 17, 2024.

Staff Report

TO: City Council
FROM: Carole Kendrick, Interim Community Development Director DATE December 3, 2024
SUBJECT: Minor Plot Plan PP2024-0048 Plotting, Architecture and Floors Plan for Tract Map No. 32850 (APN:421-110-014)

Description Conduct a public hearing and consideration of a request for the approval of a Minor Plot Plan (PP) to develop Tract Map No. 32850 into 95 Single Family Residential Lots with four (4) Plan Types, and one (1) park site. The subject property is

29.32-acres and is located west of Manzanita Park Road and south of Brownie Way in the Residential Single-Family Zone.

Background and Analysis:

The item was advertised in an effort to streamline the process. Staff is requesting a continuance without discussion of PP2024-0048 to provide an updated resubmittal of the entitlement package. The fourth amendment to the Settlement Agreement has been fully executed as of November 27, 2024.

Public Notice and Communications:

Property owners located within a 300-foot radius of the project site were notified of the public hearing on November 23, 2024, with a 10-day hearing notice in addition to a public notice in the Press Enterprise (see Attachment A). No comments have been received to date, and any comments received prior to the time of the scheduled City Council hearing will be provided to the Council at the time of the meeting.

Fiscal Impact:

The estimated cost to prepare this staff report is approximately $50.

Recommended Action:

Continue PP2024-0048 without discussion to December 17, 2024, City Council meeting.

Attachments:

A. Proof of Publication

PP2024-0048 Manzanita - Page 2 of 2

Staff Report

TO: City Council
FROM: Robert L. Vestal, Public Works Director
DATE: December 3, 2024
SUBJECT: Truck Route Viability

Description Presentation on the viability of existing roads along the designated truck routes.

Background and Analysis:

This item was requested by Council Member Voigt to provide information on the viability of existing roads along the designated truck routes.

Pavements are engineered to carry the truck traffic loads expected during the pavement design life. Truck traffic, which includes transit vehicles, trucks and truck-trailer vehicles, is the primary factor affecting pavement design life and its serviceability. Passenger cars and pickups are considered to have negligible effect when determining traffic loads that damage the pavement.

Pavement design life for new construction and reconstructed roads should be a minimum of 20 years. However, pavement design life varies depending on the structural section, traffic volume, and loading.

STRUCTURAL SECTION

The structural section of a road consists of a subbase or subgrade course, base course, and asphalt surface course.

Subgrade

The subgrade is the native soil, scarified to a minimum depth of six inches and compacted to a relative compaction of 90%. The best soil for roads is a mix of gravel and sand due to its inherent strength and stability. The worst soil for roads is silts and clays due to its ability to expand when exposed to moisture. Beaumont has a high percentage of clay.

Base Course
The base course consists of angular rock and sand with a specific grading (mix). It is placed directly over the subgrade and compacted to a relative compaction of 95%. The thickness is based on the empirical formula. A general rule of thumb is that the base course should be approximately twice the thickness of the asphalt course.

Asphalt Surface Course

The Hot Mix Asphalt (HMA) consists of a mixture of asphalt binder and a graded aggregate ranging from coarse to very fine particles. The binder is a Performance Graded (PG) system. Performance grading is based on the concept that asphalt binder properties should be related to the conditions under which the binder is used. PG asphalt binders are selected to meet expected climatic conditions as well as traffic speed and volume adjustments.

Therefore, the PG system uses a common set of tests to measure physical properties of the binder that can be directly related to field performance of the pavement at its service

temperatures. For example, a binder identified as PG 64-10 must meet performance criteria at an average seven-day maximum pavement temperature of 64°C and also at a minimum pavement temperature of –10°C. Beaumont historically used a PG 64-10 but has recently switched to a PG70-10 binder for better hot weather performance.

The asphalt surface is placed on top of the base course and is compacted to a density of 95% of a sample, which is compacted via a specific standardized test. The thickness is based on the empirical formula.

GENERAL PLAN AND RIVERSIDE COUNTY TRANSPORTATION DEPARTMENT (RCTD) STANDARDS

The City’s 2040 General Plan- Mobility plan classifies the roads within the City as Local, Collector, Secondary, Major, and Arterials. For each classification, the RCTD standards provide a corresponding TI value and minimum structural sections. These values are useful for planning and analysis purposes and establishing minimum design standards.

The following table is from Section 8.05, RCTD standards:

RESULTS

City staff analyzed record plans and obtained the design structural section thicknesses for each Truck Route segment. The thicknesses were then compared to the corresponding road classification, TI, and minimum thicknesses. The following table shows the results:

Street Classification Asphalt
Thickness
Base
Thickness
Meets
Minimum
1st Street Major 2.5" 8" NO
4th Street Major 4.5" 10" YES
Beaumont Avenue Collector 5" 6" YES
Cherry Avenue Secondary 5" 7" YES
Luis Estrada Road Local 4" 8" YES
Oak Valley Parkway Arterial 5" 11" YES
Pennsylvania Avenue Major 6" 15" YES
Potrero Avenue Arterial 4.5" 10" NO
Veile Avenue Arterial 2.5" 4" NO

The results indicate that First Street, Potrero Avenue, and Veile Avenue do not meet the minimum asphalt thickness. One solution is to mill the existing streets and place a thicker overlay to meet the desired thickness. However, with Veile Avenue and First Street, there is a concern that the minimum base thickness is not sufficient due to the streets receiving increased truck traffic in the future.

Therefore, City staff is recommending that future projects that will impact truck routes with truck traffic be conditioned to explore the structural sections of the affected roads via core drilling and provide thickness recommendations. Additionally, each project will be required to contribute a fair share to the repair based on its impact versus the cumulative truck traffic. The City will then develop a CIP project to perform the work.

Figure 1 - Truck Routes

Fiscal Impact:

The estimated cost to prepare this staff report is $1,500.

There is no fiscal impact associated with this report.

Recommended Action:

Receive and file.

Staff Report

TO: City Council
FROM: Robert L. Vestal, Public Works Director
DATE: December 3, 2024
SUBJECT: Potrero Extension Benefit Area

Description Discussion on the infrastructure needed to support future development within the Potrero Extension Benefit Area.

Background and Analysis:

City staff is seeing significant interest in development occurring west of Pennsylvania Avenue and south of I-10. The area is referred to as the Potrero Extension Benefit Area due to the need for Potrero Blvd to extend east to support the proposed projects . Most of the proposed development occurs outside the City boundary and is requesting to annex into the City. The following is a list of some of the projects in the pre-entitlement and entitlement phases:

 Lilac Logistics - Industrial Facility (158,112 SF)
 Inland Harbor – 5 Industrial Buildings (1,145,183 SF)  Orbis Beaumont Heights - 5 Warehouse Buildings (5,275,306 SF)  79 North – Warehouse Facility (404,200 SF)
 Beaumont Hills Commerce Center - Industrial development (204.7 AC), Commercial Development (36.8 AC), Employment District (23.9 AC), Traditional Neighborhood (64.8 AC), and Public Facilities (20.8 AC)  Project Mustang – Warehouse Building (457,444 SF)
 Potrero Interchange Industrial Warehouse – Warehouse (577,920 SF)  Legacy Highlands – Industrial (12,192,480 SF), Commercial (134,200 SF)

Figure 1 - Potrero Extension Benefit Area (Proposed Development)

There is very little infrastructure within the Potrero Extension Benefit Area capable of supporting major development. Currently, each project is submitting an entitlement package and proposing infrastructure that only benefits the individual project and does not consider the development of the area. The City’s 2040 General Plan - Mobility plan provides an illustrative road network in the influence area but is not sufficient to provide a cohesive master plan. Similarly, the Sewer Master Plan does not consider this area with enough detail to develop an optimized sewer network and strategic lift stations.

NEXUS STUDY

City staff engaged Fehr and Peers, using on-call services, to perform a focused nexus study and infrastructure delivery plan for the Potrero Extension Benefit Area. The study will consider roadway alignments, connection points, cost estimates, and other facto rs

to ensure the area's efficient development. The Nexus study will also identify the rough proportionality of the fee to the developments contributing to facility needs.

Similarly, Wastewater is currently advertising for a focused sewer study to optimize sewer facilities and lift station locations.

Having master-planned facilities for streets and sewers will enable staff to ensure that each project proposes the appropriate facilities in the appropriate locations. Below is an exhibit showing a conflict in street alignments due to a lack of cohesive master-planned facilities.

Figure 2 - Road Alignment Conflict

FUTURE FUNDING

In addition to providing cohesive master-planned facilities, City staff is exploring options to fund the design and construction of the facilities. The intent is to have development or the City design and construct entire backbone facilities. City staff will bring a future item to discuss the options and obtain direction.

Fiscal Impact:

The estimated cost to prepare this staff report is $1,500.

There is no fiscal impact associated with this item.

Recommended Action:

Receive and file.

Attachments:

A. Industrial Projects Exhibit
B. Industrial Projects with Infrastructure Overlay Exhibit C. Nexus Study Scope and Fee

Esri, NASA, NGA, USGS, FEMA, Esri Community Maps Contributors, Loma Linda University, UC Riverside, County of Riverside, California State Parks, Esri, TomTom, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, US Census Bureau, USDA, USFWS ¯
Project Name
79 North
AA Fence
ASM Beaumont Investors
Beaumont Hills Commerce Center
Inland Harbor
Legacy Highlands
Lilac Logistics
Orbis Beaumont Heights
Orchard Logistics
Project Mustang
CityBoundary
Sphere_Of_Influence
0 0.7 1.40.35 Miles Created By: Bradley Barnhart
Date: Oct 3 2024Page 148 of 270

Esri, NASA, NGA, USGS, FEMA, Esri Community Maps Contributors, Loma Linda University, UC Riverside, County of Riverside, California State Parks, Esri, TomTom, Garmin, SafeGraph, GeoTechnologies, Inc, METI/NASA, USGS, Bureau of Land Management, EPA, NPS, US Census Bureau, USDA, USFWS ¯
Project Name
79 North
AA Fence
ASM Beaumont Investors
Beaumont Hills Commerce Center
Inland Harbor
Legacy Highlands
Lilac Logistics
Orbis Beaumont Heights
Orchard Logistics
Project Mustang
CityBoundary
Sphere_Of_Influence
0 0.7 1.40.35 Miles Created By: Bradley Barnhart
Date: Oct 3 2024
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60 - MORENO VALLEY FREEWAY
BIO-RETENTION680'868'W67
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1 PROSPERITY WAY
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3750 University Avenue | Suite 225 | Riverside, CA 92501 | (951) 274-4800 | Fax (949) 859-3209 www.fehrandpeers.com Updated September 27, 2024
Robert Vestal
Director of Public Works | City Engineer
City of Beaumont
550 E. 6th Street Beaumont, CA 92223

Subject: South of SR 60 Roadway Infrastrcuture Delivery Plan and Fee Program Nexus Study
P23-2244-OC
Dear Robert:

This proposal reflects our recent phone conversations with City staff and our concerns related to delivering needed infrastructure in the City concurrent with industrial development in the referenced area of the City. Specifically, as we have started working with the City to review development applications generally located south of SR-60 and west of SR-79, we have realized the following:

1. The City is processing more than 30 million sq. ft. of industrial/warehousing development in this area.

2. Warehousing development trip generation can vary significantly depending on the client, with uses like High-Cube Transload and Short-Term Storage Warehouse generating daily trips at a rate of 1.4 trips per 1,000 sq. ft.; whereas General Light Industrial or High-Cube Fulfillment Center Warehouse – Sort generate between 4.87 and 6.44 trips per 1,000 sq. ft. Given that most of the studies we have seen come through utilize the lower end of the trip rate range, it is imperative to understand how roadway capacity needs may change with more trip intensive land uses. 3. The City’s General Plan identified three key roadway connections to serve this general area.

These facilities are: a. The Potrero interchange (e.g. add ramp connections from the overcrossing to SR- 60) – recent funding of the interchange ramps will deliver this project sooner; however, there is only so much traffic this interchange can support and understanding how its capacity constrains may or may affect operations on Potrero and other streets needs to be understood b. The extension of Potrero to the east, connecting it to SR-79 (and eventually over to the other portion of Potrero east of SR-79) c. A new east/west roadway generally paralleling Potrero to the south d. The Beaumont Avenue interchange has limited capacity and routing trucks and passenger cars to it will increase the deficiency at that location

4. Although the traffic studies we have seen to-date have all followed the City’s guidelines and generally identify spot improvements at various locations, none of them look at

City of Beaumont

identifying when each of these key infrastructure connections would be required to serve the proposed development. Additionally, none identify the final roadway alignment for the Potrero connection to SR-79 nor do they identify the best alignment for the new east-west roadway located south of Potrero.

5. The traffic studies assume much of this infrastructure is completed in the future without identifying how that infrastructure will be funded. As such, conceptual cost estimates for the identified roadway alignments would be helpful so that the City can start identifying a mechanism for funding and delivering the infrastructure (such as an updated transportation impact fee program or a road and bridge benefit district (RBBD)). 6. The City would benefit from a fee program/nexus study to determine new development’s fair share contributions toward these projects.

The purpose of this proposal is to provide the City with services to help answer key questions noted above. Fehr & Peers has included Mark Thomas & Company to our team to assist in identifying alignment for the two east-west roadways noted above and to develop cost estimates for the proposed infrastructure.

Our proposed scope of work is described in detail below:

SCOPE OF WORK
TASK 1 – KICK OFF MEETING
The Fehr & Peers team will attend a kick-off meeting at the City with City staff. At this meeting, we will work with staff to better understand what development applications the City has received in the general study area and get a better understanding of any geometric layouts already developed for the facilities noted above. Fehr & Peers will also review any approved or submitted traffic studies in the area to better understand the availability of count data in the area.

We will work with the City to identify if they have a mechanism for controlling the tenants of the facilities after they are entitled. Specifically, if the traffic study assumed a trip generation rate of High-Cube Transload but the actual tenant is a High-Cube Fulfillment Center Warehouse – Sort, does the City have a mechanism to reassess infrastructure needs or obtain increased funding to deal with transportation needed infrastructure that would be required for the increased trips.

TASK 2 – CAPACITY MODEL ASSESSMENT
Fehr & Peers will develop a capacity model to assist in assessing the roadway capacity infrastructure.

We propose to initially look at roadway segment capacity to assist with answering some of the bigger questions of when development would occur.

City of Beaumont

As we build the capacity model, we will work with staff to pre-build in traffic from entitled projects. We will propose to then set up specific zones for proposed projects so that we can test different development yields (e.g. 25%, 50%, 75%, and 100%) that we will use to test when specific segments approach capacity and identify key facilities needed to address those capacity issues. We will also build into the assessment a two-step process; one using rates we are seeing used in the submitted traffic studies and another where more intensive uses (like Light Industrial or Fulfillment Center Warehouse – Sort) and how those assumptions change the results of the infrastructure needs.

Fehr & Peers will use some combination of a refined RIVCOM model and/or a sub-area refined trip assignment model to assist in developing the roadway network. We will use trip generation information using ITE and/or WRCOG trip rates including PCE conversion estimates to review roadway capacity at a PCE level.

Fehr & Peers will also utilize two sources for estimating the distribution of trips to/from this area. First, we will use the RIVCOM travel demand model to assist with trip distribution estimates, but we also propose to use big data (Streetlight) to assist with this effort. Streetlight data will be used to estimate origin/distribution and trip routing for both passenger car and heavy vehicles from already developed industrial areas in the City. This will provide valuable information that will ensure that the trip distribution and trip assignment assumptions used reflect current demands in the study area. Please note that Streetlight data is available for no cost through the SCAG data portal and we have already pulled that data for our use in the City’s truck route study. Once the number of trips, distribution of trips, and routing of trips have been refined, we will include that information into our capacity assessment. Our goal would be to identify the number of trips that could be accommodated from the study area using the existing infrastructure (on a roadway segment basis) and start identifying when subsequent infrastructure would be required. These trips will be “backed into” the development utilizing the bookends of trip generation noted above to assist in planning this infrastructure in the City.

TASK 3 – ROADWAY ALIGNMENT DEVELOPMENT
Mark Thomas & Company will lead the roadway alignment assessment. scope proposes to utilize available data from Riverside County (such as contours), an assumed roadway cross-section, an assumed roadway design speed, existing utility information, and available right-of-way information to identify a potential alignment for connecting Potrero road in the study area and the best alignment for the future east-west roadway south of Potrero identified in the City’s General Plan.

Once the alignments are identified, they will share that information with City staff to confirm the appropriateness of the alignment.

In addition to developing the alignments, Mark Thomas & Company will also complete a cost estimate for each facility (including review of the Potrero interchange). This will include a planning-level cost estimate, but will include assumptions for roadway costs, right-or-way estimates,

City of Beaumont

engineering and design considerations, major drainage considerations, and a description of needed permits and environmental considerations needed to progress the projects.

TASK 4 – DOCUMENTATION
Fehr & Peers will work with the City on the most appropriate form of documentation but believe a memorandum summarizing the results of the traffic work, alignment strip maps, and planning cost estimates would be appropriate for the City to review and approve our work on Tasks 1-3.

TASK 5 – NEXUS STUDY
Fehr & Peers will utilize the information in Tasks 1-4 to develop a nexus study for this effort. The nexus study will utilize information from the City’s General Plan along with estimates of development that will contribute traffic to these facilities.

Fehr & Peers will utilize the information to establish the following key components associated with impact fee programs, including:

• Rough proportionality of the fee related to the development contributing to the facility needs.
• Identification of any existing deficiencies and fair share calculations reflecting new development’s fair share contribution toward those facilities. • Establishment of a metric to be used for the fee program calculation. That could be trips, passenger car equivalent trips, vehicles miles of travel, or other metric that normalizes the fee charged to new development. • Establishment of an approach to address AB 602 requirements with the City. AB 602 requires the City to incorporate projects into their capital improvement program, update the fee every eight years, and to assure that any housing projects incorporated into the fee program address whether unit size should be accounted for in the impact fee program. • Preparation of a proposed fee schedule that can be utilized for this fee using typical land uses that would occur in the area. • Draft and final nexus studies to be used by City staff.

SCHEDULE AND FEE
The Fehr & Peers team proposes to complete Tasks 1-5 within 20 weeks following our receipt of a work order for this effort. We will complete this effort on a time-and-materials basis for a not-to- exceed amount of $252,560,458 ($105,292) of which is Mark Thomas’s effort for this project).

City of Beaumont

We look forward to our continued work with the City of Beaumont. If you have any questions, please call me directly at 949-308-6312.

Sincerely,

FEHR & PEERS

Jason D. Pack, P.E. Principal

Staff Report

TO: City Council
FROM: Robert L. Vestal, Public Works Director
DATE: December 3, 2024
SUBJECT: Indemnification Agreement for Fourth Street and Potrero Boulevard

Description Indemnification Agreement between the County of Riverside and the City of Beaumont various right-of-way dedications near Potrero Boulevard and Fourth Street.

Background and Analysis:

The City of Beaumont acquired various right-of-way within the County of Riverside to support the construction of Potrero Interchange—Phase I. Additionally, right-of-way was acquired to support the extension of Fourth Street, west of Prime Drive.

The Indemnification Agreement resolves and clarifies that the City can use the property as public right-of-way and maintain all public improvements associated with the right-of- way.

Figure 1 - Right-of-Way Along Potrero Blvd

Figure 2 - Right-of-way Along Fourth Street
Fiscal Impact:

The estimated cost to prepare this report is $750.

All City-required maintenance associated with the Indemnification Agreement will be paid from the Public Works Department’s operations budget as part of ongoing maintenance. No additional improvements are proposed for maintenance.

Recommended Action:

Authorize the Mayor to execute an Indemnification Agreement between the County of Riverside and the City of Beaumont for Various Right-of-way Dedications near Potrero Boulevard and Fourth Street.

Attachments:

A. Indemnification Agreement

INDEMNIFICATION AGREEMENT
This INDEMNIFICATION AGREEMENT (Agreement) is made by and between the COUNTY OF RIVERSIDE, a political subdivision of the State of California, (COUNTY) and the CITY OF BEAUMONT, a municipal corporation, (CITY) relating to the CITYS indemnification of the COUNTY under the terms set forth herein:

RECITALS
WHEREAS, certain offers of dedication were made and accepted by CITY for that certain real property described in the Irrevocable Right of Way Offers of Dedication and Grant Deeds set forth in Exhibit A, attached hereto and incorporated herein by this reference (ACCEPTED PROPERTY); and, WHEREAS, the ACCEPTED PROPERTY is located within the
unincorporated territory of the County of Riverside; and, WHEREAS, COUNTY and CITY disagree as to whether CITY had the authority to accept the offers of dedication within the unincorporated territory of the County of Riverside and nothing herein shall be construed as COUNTY accepting CITYs position; and,
WHEREAS, CITYs acceptance of the ACCEPTED PROPERTY and its use as a public right of way (PUBLIC RIGHT OF WAY) exposes the COUNTY to potentially costly and time consuming claims, actions and proceedings and calls into question who is responsible and liable for the maintenance of the ACCEPTED PROPERTY and PUBLIC RIGHT OF WAY improvements; and,

WHEREAS, the CITY and COUNTY are attempting to work together in good faith to address CITYs acceptance of the ACCEPTED PROPERTY and the consequences thereto, including but not limited to the use of the ACCEPTED PROPERTY as a PUBLIC RIGHT OF WAY, by means of CITY bearing the cost and expense of any and all claims, actions and proceedings brought against COUNTY related to the ACCEPTED PROPERTY and use of the ACCEPTED PROPERTY as a PUBLIC RIGHT OF WAY as well as the responsibility and liability for the maintenance of the ACCEPTED PROPERTY and PUBLIC RIGHT OF WAY improvements; and,
WHEREAS, this Agreement is entered into by the COUNTY and CITY to establish specific terms concerning CITYS indemnification obligation and maintenance obligation for the ACCEPTED PROPERTY including, but not limited to, the use of the ACCEPTED PROPERTY as a PUBLIC RIGHT OF WAY and the maintenance of the PUBLIC RIGHT OF WAY improvements.

NOW, THEREFORE, it is mutually agreed between COUNTY and CITY as follows:

1. Recitals. The foregoing recitals are true and correct and are incorporated herein by reference.

2. Indemnification. CITY agrees to indemnify and hold harmless the County of Riverside, its Agencies, Districts, Special Districts and Departments, their respective directors, officers, Board of Supervisors, elected and appointed officials, officers, employees, agents and representatives (individually and collectively hereinafter referred to as INDEMNITEES) from and against any and all actions, damages, claims, losses, expenses, costs, obligations and liabilities whatsoever, based or asserted upon or in any way arising out of or relating to, in whole or in part, the ACCEPTED PROPERTY, including but not limited to the use of the ACCEPTED PROPERTY as a PUBLIC RIGHT OF WAY, the maintenance of the ACCEPTED PROPERTY and PUBLIC RIGHT OF WAY improvements, including but not limited to property damage, bodily injury or death or any other element

of any kind or nature (including without limitation any associated costs, damages, and expenses and an award of attorneys fees and costs incurred or arising out of the above-referenced claim, action or proceeding brought against the COUNTY).

CITY shall defend the INDEMNITEES at its sole expense and bear all related costs and fees (including, but not limited to, attorney fees, cost of investigation, defense and settlements or awards), in any claim, action or proceeding brought against the INDEMNITEES.

3.Defense Cooperation and Costs. CITY and the COUNTY shall cooperate in all aspects of any claim, action or proceeding subject to this Agreement. Nothing contained in this Agreement, however, shall be construed to limit the discretion of COUNTY, in the interest of the public welfare, to settle, defend, appeal or to decline to settle or to terminate or forego defense or appeal of any claim, action or proceeding. It is also understood and agreed that all litigation pleadings are subject to review by COUNTYs Office of County Counsel.

4.Representation and Payment for Legal Services Rendered.

COUNTY shall have the right to approve or disapprove the counsel retained by CITY to defend INDEMNITEES as required herein. CITY shall pay the attorneys fees and costs of the legal firm retained by CITY to represent the INDEMNITEES as required herein. Failure by CITY to pay such attorneys fees and costs may be treated by COUNTY as a default of CITYs obligations under this Agreement.

5.Payment for COUNTYs Costs. Payment for COUNTYs costs related to any claim, action or proceeding shall be made on a reimbursable basis.

Costs include without limitation any associated costs, fees, damages, and expenses incurred by the COUNTY, including but not limited to, the Office of County Counsel, Riverside County Transportation and Land Management Agency and the Riverside County Clerk of the Board associated with the claim, action or proceeding.

COUNTY shall be paid in accordance with an invoice submitted by COUNTY to CITY on a monthly basis. CITY shall pay the invoice within thirty (30) days from the date of receipt of the invoice.

6.Notices. For all purposes herein, notices shall be effective when personally delivered, delivered by commercial overnight delivery service, or sent by certified or registered mail, return receipt requested, to the appropriate address set forth below:

COUNTY:
_____________________
_____________________
_____________________
CITY:
550 E. Sixth Street
Beaumont, CA 92223

7.Default and Termination. This Agreement is not subject to termination, except by mutual agreement or as otherwise provided herein. In the event of a default of CITYs obligations under this Agreement, COUNTY shall provide written notification to CITY of such alleged default specifically describing the alleged default and CITY shall have thirty (30) days (ten (10) days for monetary defaults) after receipt of written notification to cure any such alleged default or such longer period of time if a non-monetary default is not capable of being cured within thirty (30) days provided that it is diligently cured thereafter. If CITY fails to cure such alleged default within the specified time period or otherwise reach agreement with the COUNTY on a resolution of the alleged default, COUNTY may, in its sole discretion, take any action it deems necessary, including without limitation, settle the claim, action or proceeding at CITYs sole expense.

In the event of a default of this Agreement, CITY shall remain responsible for any costs and attorneys fees awarded by the Court or as a result of settlement and other expenses incurred by the COUNTY related to the claim, action, proceeding or settlement.

8.Maintenance. CITY shall be responsible and liable for the maintenance of the ACCEPTED PROPERTY and PUBLIC RIGHT OF WAY improvements, including all costs and expense thereof. CITY may fulfill its maintenance obligations hereunder where appropriate by engaging contractors or arranging for private developers to perform such duties; however, CITY shall be liable for the acts or omissions of any said contractors or private developers. CITY shall require any such contractor or private developer to make written application to COUNTY for an encroachment permit prior to performing any work. Both CITY and COUNTY agree, COUNTY shall have no liability, responsibility, or obligation whatsoever for the ACCEPTED PROPERTY and PUBLIC RIGHT OF WAY improvements.

9.Non-Exclusive Remedy. The rights and remedies of COUNTY provided for in this Agreement shall not be the exclusive rights or remedies of COUNTY for CITYs acceptance of the ACCEPTED PROPERTY, including but not limited to the use of the ACCEPTED PROPERTY as a PUBLIC RIGHT OF WAY, the maintenance of the ACCEPTED PROPERTY and PUBLIC RIGHT OF WAY improvements, or CITYs default of this Agreement. COUNTY hereby reserves all other rights and remedies, defenses, or causes of action it may have against the CITY, whether in law or equity, for CITYs acceptance of the ACCEPTED PROPERTY, including but not limited to the use of the ACCEPTED PROPERTY as a PUBLIC RIGHT OF WAY, the maintenance of the ACCEPTED PROPERTY and PUBLIC RIGHT OF WAY improvements, or CITYs default of this Agreement.

10.Complete Agreement/Governing Law. This Agreement
represents the complete understanding between the parties with respect to matters set forth herein. This Agreement shall be construed in accordance with the laws of the State of California.

11.Successors and Assigns. The obligations specific herein shall be made and are binding on the successors in interest of the CITY, whether the succession is by agreement, by operation of law or by any other means.

12.Amendment and Waiver. No modification, waiver, amendment, or discharge of this Agreement shall be valid unless the same is in writing and signed by all parties.

13.Severability. If any term, provision, covenant, or condition of this Agreement is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this Agreement shall not be affected thereby, and each term, provision, covenant, or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

14.Interpretation. The parties have been advised by their respective attorneys, or if not represented by an attorney, represent that they had an opportunity to be so represented in the review of this Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be applied in interpreting this Agreement.

15.Captions and Headings. The captions and section headings used in this Agreement are inserted for convenience of reference only and are not intended to define, limit, or affect the construction or interpretation of any term or provision hereof.

16.Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by a party hereto for the purpose of enforcing, construing, or determining the validity of any provision of this Agreement shall be filed in the Courts of Riverside County, State of California, and the parties hereto waive all provisions of law providing for the filing, removal or change of venue to any other court or jurisdiction.

17.Counterparts; Electronic Execution. This Agreement may be executed in any number of counterparts, each of which will be an original, but all of which together will constitute one instrument. Each party to this Agreement agrees to the use of electronic signatures, such as digital signatures that meet the requirements of the California Uniform Electronic Transactions

Act ((CUETA) Cal. Civ. Code §§ 1633.1 to 1633.17), for executing this Agreement.

The parties further agree that the electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record pursuant to the CUETA as amended from time to time. The CUETA authorizes use of an electronic signature for transactions and contracts among parties in California, including a government agency. Digital signature means an electronic identifier, created by computer, intended by the party using it to have the same force and effect as the use of a manual signature, and shall be reasonably relied upon by the parties. For purposes of this section, a digital signature is a type of "electronic signature" as defined in subdivision (i) of Section 1633.2 of the Civil Code.

18.Effective Date. The effective date of this Agreement is the date the parties sign the Agreement. If the parties sign the Agreement on more than one date, then the last date the Agreement is signed by a party shall be the effective date.
[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have duly caused this Agreement to be executed by their authorized representatives as of the date written.

COUNTY:

COUNTY OF RIVERSIDE, a political
subdivision of the State of California
By:
___________________________
Chuck Washington
Chair, Board of Supervisors
Dated:
_________________________
ATTEST:

Kimberly A. Rector
Clerk of the Board
By:___________________________
_
Deputy

APPROVED AS TO FORM
Minh C. Tran
County Counsel
By:___________________________
_
CITY:

CITY OF BEAUMONT, a municipal
corporation
By:
___________________________
David Fenn
Mayor
Dated: ________________________
ATTEST:

Elaine Morgan
City Clerk
By:___________________________
_

APPROVED AS TO FORM
City Attorney
By:___________________________
_
Deputy County Counsel

EXHIBIT A
The following Irrevocable Right of Way Offers of Dedication and Grant Deeds are to be attached behind this page.
•Exhibit A1 Irrevocable Right of Way Offer of Dedication (Caltrans Parcel #21982-1) Instrument number 2014-0447476 (Slope Easement) •Exhibit A2 - Irrevocable Right of Way Offer of Dedication (Caltrans Parcel #21979-1 and #21979-2) Instrument number 2014-0447477 (Road, Drainage, Public Utility and Public Services Purposes)
•Exhibit A3 - Irrevocable Right of Way Offer of Dedication (Caltrans Parcel #21979-5) Instrument number 2014-0447478 (Slope Easement) •Exhibit A4 Irrevocable Right of Way Offer of Dedication Instrument number 2016-0227312 (Slope Easement)
•Exhibit A5 Irrevocable Right of Way Offer of Dedication Instrument number 2016-0227343 (Slope Easement)
•Exhibit A6 Irrevocable Right of Way Offer of Dedication Instrument number 2016-0227375 (Slope Easement)
•Exhibit A7 Grant Deed (Caltrans Parcel #21978-5) Instrument number 2017-0244840
•Exhibit A8 Grant Deed (Caltrans Parcel #21978-1 and #21978-2) - Instrument number 2017-0244842

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Staff Report

TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE December 3, 2024
SUBJECT: Approval of Trustee Requisition 003 for Reimbursement of Bond Proceeds in the Amount of $8,863,651.89

Description Tri Pointe Homes has submitted a request of Community Facilities District 93-1 Improvement Area 17D bond proceeds to reimburse for completed improvement costs totaling $7,452,415.96 and reimbursement of development impact fees of $1,411,235.93 for a total of $8,863,651.89.

Background and Analysis:

On October 15, 2024, the City Council approved the Acquisition Agreement in relation to the Community Facilities District No. 93-1 (Improvement Area 17D) pursuant to public facilities the City shall acquire with proceeds of bonds issued by the district and authorized the issuance of special tax bonds in an amount not to exceed $10,500,000.

As described in the Acquisition Agreement Section 2.3 Net Proceeds, the proceeds of the Bonds shall be deposited, held, invested, reinvested, and disbursed as provided in the Indenture. The net proceeds of the bonds will be set aside under the Indenture in the Acquisition and Construction Fund. Moneys in the Acquisition and Construction Fund shall be withdrawn therefrom in accordance with the provisions of the Indenture and/or acquisition of the Facilities (including payment of the Purchase Price of Discrete Components thereof), to reimburse Advances and to discharge the Owner’s obligation to pay the development impact fees, all as herein provided.

On November 4, 2024, Tri Pointe Homes IE-SD Inc. submitted a request for payment for the verified costs of facilities and reimbursement of development impact fees pursuant to the Settlement Agreement dated February 7, 2017. Per the City of Beaumont 2019-003 Restated Bond Accounting Policy, Trustee Notification documents are to be presented to the City Council for approval and the written requisition is to be signed by an authorized representative.

Fiscal Impact:

The 2024 Bonds are paid from special taxes levied in the District. There is no impact to the City’s General Fund.

The estimated cost to prepare this report is $306.

Recommended Action:

Approve the City Manager to sign Requisition 003 to send to Trustee for disbursement of bond proceeds to the City of Beaumont for reimbursement of costs to Tri Pointe Homes IE-SD Inc.

Attachments:

A. Written Requisition of City of Beaumont Community Facilities District No. 93-1

Staff Report

TO: City Council
FROM: Jennifer Ustation, Finance Director
DATE December 3, 2024
SUBJECT: Approval of Tri Pointe Homes Community Facilities District 93-1 Improvement Area 17D PayGo Funds Reimbursement Request

Description Tri Pointe Homes IE-SD, Inc. has submitted a request for the Community Facilities District 93-1 Improvement Area 17D PayGo funds to reimburse TUMF Fees paid in the amount of $214,799.45.

Background and Analysis:

As per the Settlement Agreement between the City of Beaumont and Tri Pointe Homes IE-SD, Inc (Tri Pointe Homes) formally known as Pardee Homes dated February 7, 2017, section 6 paragraph 1 states “Pardee is entitled to receive 100% of PayGo special taxes collected in and after fiscal year 2017/2018, to fund Project Costs until CFD No. 93-1 issues bonds.”

Section 5 of the Settlement Agreement states that “The City currently does not participate in the Transportation Uniform Mitigation Fee (“TUMF”) program administered by the Western Riverside Council of Government (“WRCOG”), but may elect to join the program in the future, in which case TUMF may be levied and collected with respect to future development in Sundance and Tournament Hills and shall also be dee med a “DIF” pursuant to this Agreement. In addition, if the City adds development impact fees that are applicable to Sundance and Tournament Hills and which may be reimbursed with the proceeds of special taxes and bonds of IA Nos. 8E, 8F, and 17D and CFD N os. 2016-2 and 2016-3, those, too, shall be deemed a DIF pursuant to which (i) the City shall identify capital improvements that are included in the DIF and/or TUMF program (each, a “DIF” improvement”), (ii) Pardee shall either design and construct the DIF improvements or advance funds to the City for the City’s design and construction of the DIF Improvements, (III) Pardee shall receive credits against DIFs and TUMF in an amount equal to the costs incurred by Pardee to the City of the DIF improvements and (iv) the costs incurred by Pardee and funds advanced by Pardee for the DIF improvements shall be reimbursed with the proceeds of special taxes and/or bonds of Nos. 8E, 8F and 17D and CFD Nos. 2016-2 and 2016-3.”

On March 20, 2020, the City Council approved an Improvement and Credit/Reimbursement Agreement Transportation Uniform Mitigation Fee between the City of Beaumont and Pardee Homes for the Oak Valley Interchange Project. The agreement in the amount of $6,390,000 allowed Pardee to deliver TUMF improvements by means of providing “the DIF” to the City to offset against Developer’s obligation to pay the applicable TUMF for the project in accordance with the TUMF Administrative Plan adopted by WRCOG.

Tri Pointe Homes has submitted a request to receive PayGo funds in the amount of the PayGo balance of $214,799.45 from CFD 93-1 IA 17D to reimburse TUMF costs in association with the TUMF Credit Agreement for the Oak Valley Interchange Project.

Fiscal Impact:

The $214,799.45 reimbursement of PayGo funds will reduce the 17D balance within the CFD Facilities Fiduciary Fund.

The estimated cost to prepare this report is $250.

Recommended Action:

Approve Tri Pointe Homes 17D PayGo Funds Reimbursement Request in the amount of $214,799.45.

Attachments:

A. Tri Pointe Homes Reimbursement Request

Beginning Fund Balance (unaudited)FY 2025 Budgeted RevenuesOctober ActivityFYTD 2025 Actual Receipts%FY 2025 Budgeted ExpendituresOctober ActivityFYTD 2025 Actual Disbursements%T/D Ending Fund Balance100 GENERAL FUND 41,960,431.31                   68,117,655.00      4,522,309.58      11,145,468.26      16% 72,866,079.00      3,132,719.78      15,268,496.03      21% 37,837,403.54      120 SELF INSURANCE 6,898,220.84                      ‐                           ‐                       63,208.45             0% 20,000.00              25,818.85            150,818.85           0% 6,810,610.44        200 GAS TAX 140,030.09                         1,565,135.00         155,513.88         477,758.27           31% 1,565,135.00          ‐                       463.33                   0% 617,325.03           201 SB1 2,712,032.90                     1,449,419.00         131,280.17         430,007.97           30% 2,349,111.00          ‐                        ‐                         0% 3,142,040.87        202 MEASURE A 2,310,642.29                     923,257.00            66,031.29            160,155.82           17% 1,534,800.00          ‐                        ‐                         0% 2,470,798.11        205 AQMD 248,371.12                         71,431.00               ‐                       21,964.83             31% 215,500.00            38,692.15            93,824.73             0% 176,511.22           210 PEG 42,675.23                           12,367.00              2,723.31              3,102.22                25%‐                           ‐                       2,586.00                0% 43,191.45             215 CDBG/GRANTS 91,549.17                           6,180,290.00         55,576.50            493,984.65           8% 10,410,816.00       ‐                         0% 585,533.82           220 COPS 530,104.40                         105,237.00            102,996.79         124,791.91           119% 343,467.00            15,897.10            20,498.41             6% 634,397.90           225 ASSET SEIZURES (STATE) 303,353.90                         2,944.00                 ‐                       21,224.61             0% 343,467.00            15,897.10            20,498.41             0% 304,080.10           230 ASSET SEIZURES (FEDERAL) 100,705.72                         597.00                     ‐                       17,824.45             0%‐                           ‐                         0% 118,530.17           240 OTHER FUNDS 522,798.79                         75,756.00              741.05                 93,135.68             123% 137,951.00            13,756.88            74,147.76             54% 541,786.71           250 CFD‐ADMIN 1,367,147.35                     1,366,197.00          ‐                       13,682.33             1% 1,713,672.00         33,267.68            365,565.88           21% 1,015,263.80        255 CFD‐MAINT SVCS 258,933.93                         4,811,910.00          ‐                       3,042.11                0% 5,346,769.00         73.90                     0% 261,902.14           260 CFD‐PUBLIC SAFETY 552,116.41                         1,589,899.00          ‐                       5,315.40                0% 1,587,924.00          ‐                         0% 557,431.81           500 GENERAL CAPITAL PROJECTS 51,057,566.07                   132,953,835.00    286,666.30         2,654,209.33        2% 171,430,230.00    1,529,083.59      4,860,790.32        3% 48,850,985.08      510 CFD CAPITAL PROJECTS 12,616,801.13                   2,127.00                 ‐                       119,583.39           0% 8,394,734.00          ‐                       1,141,860.07        0% 11,594,524.45      550 DIF 7,032.71                              ‐                           ‐                       66.52                     0%‐                           ‐                         0% 7,099.23                552 BASIC SERVICES DIF 1,193,509.06                     222,523.00            836.80                 107,315.69           48% 34,356.00              34,356.00             0% 1,266,468.75        554 GENERAL PLAN DIF 262,150.44                         22,475.00              81.30                   11,779.18             52%‐                           ‐                         0% 273,929.62           555 RECREATIONAL FACILITIES DIF 2,959,965.64                     349,589.00            1,305.76              177,632.20           51% 900,000.00             ‐                         0% 3,137,597.84        556 TRAFFIC IMPACT DIF 1,252,418.95                     135,510.00            496.40                 68,912.55             51% 1,155,712.00          ‐                         0% 1,321,331.50        558 RAILROAD CROSSING DIF 2,431,181.44                     164,743.00            533.45                 84,387.18             51% 126,387.00             ‐                       42,874.86             0% 2,472,693.76        559 POLICE FACILITIES DIF 2,087,989.95                     253,688.00            981.57                 132,324.15           52% 780,447.00             ‐                       108,390.28           0% 2,111,923.82        560 FIRE STATION DIF 1,701,881.57                     301,752.00            1,136.76              33,231.49             11% 914,321.00             ‐                       26,568.60             0% 1,708,544.46        562 ROAD AND BRIDGE DIF 15,420,454.39                   1,192,000.00         4,519.46              663,195.34           56% 11,266,029.00       ‐                       253,141.55           0% 15,830,508.18      566 EMERGENCY PREPAREDNESS DIF 1,129,129.20                     301,712.00            1,186.37              146,040.84           48%‐                           ‐                         0% 1,275,170.04        567 COMMUNITY PARK DIF 3,493,326.22                     1,090,088.00         4,274.04              39,773.24             4% 4,318,218.00          ‐                         0% 3,533,099.46        568 REGIONAL PARK DIF 1,894,922.68                     1,413.00                 ‐                       17,972.83             0% 1,842,925.00         963.68                   0% 1,911,931.83        569 NEIGHBORHOOD PARK DIF 4,396,488.78                     1,337,895.00         5,172.27              49,730.63             4% 1,349,000.00          ‐                         0% 4,446,219.41        570 PASS THROUGH DIF 5,570,397.73                      ‐                           ‐                         0% 6,362,815.00         32,757.50             0% 5,537,640.23        850 Beaumont Financing Authority 34,409,674.12                   3,079,842.00          ‐                       30,275.34             1% 3,079,842.00          ‐                        ‐                         0% 34,439,949.46      855 Beaumont Public Improvement Authorit 36,629,322.63                   3,153,743.00          ‐                       407.04                   0% 3,153,743.00          ‐                        ‐                         0% 36,629,729.67      TOTALS159,943,931.68                 224,601,444.00    5,344,363.05      17,380,821.52      8% 313,543,450.00    4,805,133.13      22,498,676.16      7% 154,858,834.54   GOVERNMENTAL FUNDSPage 268 of 270

Beginning Fund Balance  (unaudited)FY 2025 Estimated RevenuesOctober ActivityFYTD 2025 Actual Revenues%FY 2025 Budgeted ExpendituresOctober ActivityFYTD 2025 Actual Expenditures%T/D Ending Fund Balance564 RECYCLED WATER DIF 4,752,948.08           332,463.00        786.64             198,287.25          60% 1,943,687.00      ‐                     53,690.29           0% 4,897,545.04       600 INTERNAL SERVICE FUND 9,719,886.39           1,578,920.00      ‐                   59,223.56            4% 3,969,193.00     34,243.11         248,409.08        6% 9,530,700.87       700 WASTEWATER 7,598,525.02           14,830,049.00   265,331.89     3,188,563.87       22% 14,891,189.00   422,673.04       5,025,100.98     34% 5,761,987.91       705 WASTEWATER DIF 10,315,901.62         2,041,765.00     7,050.28          1,289,272.73       63% 8,162,910.00      ‐                     383,744.88        5% 11,221,429.47     710 WASTEWATER CAPITAL PRO102,999,422.07      15,630,847.00   3,739,053.45       24% 18,163,627.00   20,421.56         3,786,361.42     21% 102,952,114.10   750 TRANSIT (75,904.84)               3,278,071.00     71,049.58       1,102,970.89       34% 3,278,071.00     212,567.40       824,659.23        25% 202,406.82           755 Transit GASB 68 Fund 414,398.61               ‐                       ‐                    ‐                        0%‐                       ‐                      ‐                      0% 414,398.61           760 TRANSIT CAPITAL PROJECTS 4,997,496.25           21,739,637.00   3,231,521.20  3,269,720.08       15% 21,739,637.00   807,880.30       3,269,720.08     15% 4,997,496.25       TOTALS140,722,673.20      59,431,752.00   3,575,739.59  12,847,091.83    22% 72,148,314.00   1,497,785.41   13,591,685.96   19% 139,978,079.07   PROPRIETARY/ENTERPRISE FUNDSPage 269 of 270

Beginning Fund Balance (unaudited)FY 2025 Estimated RevenuesOctober ActivityFYTD 2025 Actual Revenues%FY 2025 Budgeted ExpendituresOctober ActivityFYTD 2025 Actual Expenditures%T/D Ending Fund Balance840 Community Facilities District(210,016,093.23)     20,753,937.00    ‐                       320,591.00          2% 20,144,790.00   8,250,000.00     8,250,000.00     0% (217,945,502.23)   860 Evidence 21,849.78                  ‐                       6,153.86             6,535.92               ‐                        ‐                        ‐                       28,385.70               TOTALS(209,994,243.45)     20,753,937.00   6,153.86             327,126.92          2% 20,144,790.00   8,250,000.00     8,250,000.00     41% (217,917,116.53)   PROPRIETARY/ENTERPRISE FUNDSPage 270 of 270