Calimesa City Council
November 4, 2024

Regular Meeting of the Calimesa City Council
Monday, November 4, 2024

CALL TO ORDER
ROLL CALL: MAYOR DAVIS, MAYOR PRO TEM HEWITT, COUNCIL MEMBER CERVANTEZ, COUNCIL MEMBER MANLY AND COUNCIL MEMBER MOLINA.

STAFF: CITY MANAGER KOLBOW, CITY ATTORNEY BARROW, DEPUTY CITY CLERK

BENSON, FINANCE DIRECTOR REID, PLANNING DIRECTOR LUCIA, INTERIM

PUBLIC WORKS DIRECTOR SHAKIR, CITY ENGINEER THORNTON, FIRE CHIEF O’CONNELL AND SHERIFF CAPTAIN NORTHRUP.

PLEDGE OF ALLEGIANCE

COMMUNICATIONS FROM THE PUBLIC
Pursuant to the Brown Act, this is the opportunity for members of the public to directly address the Council on any item within the Council’s subject matter jurisdiction. Please note that this is also the time in which members of the public may address the Council on any item on the Consent Calendar. This is not the time for City Council discussion of non-agenda items. After receiving public comments, Council Members, or staff, after being recognized by the Mayor, may briefly respond to statements made by the public or questions posed by the public. In addition, Council Members may ask questions for clarification or make a referral to staff for factual information to be reported back to the Council at a later meeting.

APPROVAL OF THE AGENDA, CONSENT CALENDAR AND WAIVER OF FULL READING OF ORDINANCES This is the time for the City Council to notify the public of any changes to the agenda; such as removal of an agenda item, rearrangement of the agenda, postponement of an agenda item or continuance of an item to a future meeting. This is also the time for the City Council to remove items from the Consent Calendar for individual consideration. Waiver of full reading of ordinances does not take policy action or approve or disapprove any ordinances on the agenda, it simply means that the entire text of the ordinance will not be read.

Regular Meeting of the Calimesa City Council
Meeting Agenda
Monday, November 4, 2024 – 6:00 p.m.

Norton Younglove Multipurpose Senior Center
908 Park Avenue, Calimesa, CA 92320
William Davis, Mayor  Wendy Hewitt, Mayor Pro Tem
Jeff Cervantez, Council Member  John Manly, Council Member  Linda Molina, Council Member Will Kolbow, City Manager  Quinn Barrow, City Attorney The Calimesa City Council will be conducting this meeting in the Norton Younglove Senior Center. Members of the public may attend this meeting in person at the Norton Younglove Senior Center, 908 Park Avenue, Calimesa, CA 92320, or the public may view the City Council meetings live at https://www.youtube.com/@calimesacity900/live beginning at 6:00 p.m.

Submission of Public Comments: Public comment will be allowed by completing a speaker slip and providing it to the City Clerk at the meeting. Please observe a time limit of three (3) minutes when giving your presentation. When called upon, please step forward to the microphone, state your name for the record, whom you represent and any statement you wish to make. Please be advised that you may not defer your three (3) minutes to another speaker.

In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office, (909) 795-9801. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Any public writings distributed by the City to at least a majority of the Council Members regarding any item on this regular meeting agenda will be made available at the public counter at City Hall located at 908 Park Avenue, Calimesa, CA 92320.

Regular Meeting of the Calimesa City Council
Monday, November 4, 2024

RECOMMENDATION: Move to approve the agenda and consent calendar Motion________________________ Second_______________________ Vote___________________________ CONSENT CALENDAR (Items 1 – 7)
The following items on the Consent Calendar are routine and customary items and are enacted by a single motion, with the exception of items previously removed during “Approval of the Agenda” for individual consideration. Any items removed shall be individually considered immediately after taking action on the Consent Calendar.

1. APPROVAL OF CITY COUNCIL ACTION MINUTES.
a) City Council action minutes of October 21, 2024 regular meeting

2. RECEIVE AND FILE CITY COMMISSION & BOARD MINUTES.
a) There are no minutes ready for approval at this time.

3. APPROVAL OF WARRANT REGISTERS.
a) Check Register Report with a total of $403,121.00 (Check Nos. 42660 to 42723). b) October 24, 2024 Payroll of $117,048.00.

4. TREASURER’S REPORT FOR THE MONTH ENDED SEPTEMBER 30, 2024 RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended September 30, 2024.

5. STATEMENT OF INVESTMENT POLICY.

RECOMMENDATION: That the City Council adopt Resolution No. 2024-60 a Resolution of the City Council of the City of Calimesa, California adopting a Statement of Investment Policy for Fiscal Year 2024-25.

6. FIRST AMENDMENT TO ANIMAL CONTROL FIELD AND SHELTER SERVICES AGREEMENT WITH COUNTY OF RIVERSIDE.

RECOMMENDATION: That the City Council approve the First Amendment to the Agreement for Animal Control Field and Shelter Services between the City of Calimesa and the County of Riverside

7. CONSULTING AGREEMENT WITH CIVISOCIAL.

RECOMMENDATION: That the City Council:

1. Approve the Agreement with Disrupter Media Consultants, Inc. (DBA CiviSocial) and authorize the Mayor to execute the contract on behalf of the City.

2. Adopt Resolution 2024-61, a Resolution of the City Council of the City of Calimesa, California, Amending the FY 2024-25 Budget to Include an Adjustment in the City Manager Professional Services Account in the General Fund..

SHERIFF CAPTAIN REPORT

FIRE CHIEF REPORT

Regular Meeting of the Calimesa City Council
Monday, November 4, 2024

BUSINESS ITEMS
8 HOME (HOME INVESTMENT PARTNERSHIPS PROGRAM) PROGRAM.

RECOMMENDATION: That the City Council direct staff as to the use of the HOME Program funds or support staff recommendation to transition the HOME funds to Tenant Based Rental Assistance Program for use throughout the County of Riverside.

9. CITYWIDE PAVEMENT REHIBILITATION PROJECT, CONSTRUCTION CONTRACT AWARD.

RECOMMENDATION: That the City Council:

1. Award a contract to Onyx Paving Company, Inc. in the amount of $1,555,000.00 for construction of the citywide pavement rehabilitation project; and

2. Authorize 10% construction contingencies in the amount of $155,500.00 for project change orders and $361,000 for project management, design and inspection services for a total project cost of $2,071,500 and

3. Approve the Plans and Specifications for construction of the citywide pavement rehabilitation project; and

4. Authorize the City Manager to execute minor change orders not exceeding the authorized construction contingencies

MAYOR & COUNCIL MEMBER REPORTING OF COUNTY & REGIONAL MEETINGS/CONFERENCES This is the time for general comments, announcements, reports on meetings attended at public expense as required by AB 1234, requests of staff, and other issues of concern to Council Members may be presented briefly at this time. The Council may not legally take action on any item presented at this time other than to direct staff to investigate a complaint or place an item on a future agenda unless (1) by a majority vote, the Council determines that an emergency situation exists, as defined by Government Code § 54956.5 or (2) by a four-fifths vote, the Council determines that there is a need for immediate action and the need for action arose subsequent to the agenda being posted as required by Government Code § 54954.2(b).

CITY MANAGER COMMENTS & REPORTS

ADJOURNMENT
Adjourn to the Regular Meeting of the City Council on Monday, November 18, 2024 at 6:00 p.m.

City Council Meeting
Agenda Report
Agenda Item No. 1
SUBJECT: APPROVAL OF CITY COUNCIL MEETING MINUTES
MEETING DATE: November 4, 2024
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the Regular City Council meeting of October 21, 2024.

ATTACHMENTS:

Attachment A: City Council action minutes of October 21, 2024 regular meeting.

City Council Meeting
Agenda Report
Agenda Item No. 2
SUBJECT: APPROVAL OF COMMISSION MEETING MINUTES
MEETING DATE: November 4, 2024
PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk There are no minutes ready for approval at this time

City Council Meeting
Agenda Report
Agenda Item No. 3
SUBJECT: APPROVAL OF WARRANT REGISTER
MEETING DATE: November 4, 2024
PREPARED BY: Celeste Reid, Finance Director
RECOMMENDATION: That the City Council approve the Warrant Register as presented.

SUMMARY: The attached Check Register Report for City Council’s approval is as follows:
a) Check Register Report with a total of $403,121.00 (Check Nos.42660-42723) b) October 24, 2024 Payroll of $117,048.00.

City Council Meeting
Agenda Report
Agenda Item No. 4
SUBJECT: TREASURER’S REPORT FOR THE MONTH ENDED SEPTEMBER 30, 2024
MEETING DATE: November 4, 2024
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council receive and file the Investment Report for the month ended September 30, 2024.

BACKGROUND: Pursuant to Council Resolution No. 2023-68 approved on November 6, 2023, the monthly Treasurer’s Report is hereby submitted. The report complies with the aforementioned Council resolution, as well as Government Code Section 53646.

DISCUSSION: The investment report provides information in accordance with the Investment Policy approved by Council Resolution No. 2023-68. Information includes the reporting of realized and unrealized gain and loss activity for the respective month of reporting. Generally, unrealized gains and losses are the day-to-day increases or decreases in an assets value. Until an investment is sold for cash, the gains or losses remain unrealized. Realized gains and losses reflect the results of selling of investments and are the difference between the cost basis and the market value as of the transaction date of sale. The City will continually have reportable changes of unrealized gain and loss activity between cost and market value as underlying investments are subject to the variability of market conditions. Staff evaluates investment options on an ongoing basis to ensure reasonable access to funds and reserves are set aside to maintain availability of cash position for general operations and capital assets.

Significant transactions during the month include transfer on September 4, 2024 from the LAIF Investment account of $750,000 to the General Fund checking account.

FISCAL IMPACT: Revenue of $10,604 of interest and dividend earnings was recognized for the CFD and Successor Agency funds.

ATTACHMENTS:

Attachment A: Treasurer’s Report for the month ended September 30, 2024.

City Council Meeting
Agenda Report
Agenda Item No. 5
SUBJECT: STATEMENT OF INVESTMENT POLICY
MEETING DATE: November 4, 2024
PREPARED BY: Celeste Reid, Finance Director and Treasurer RECOMMENDATION: That the City Council adopt Resolution No. 2024-60 a Resolution of the City Council of the City of Calimesa, California adopting a Statement of Investment Policy for Fiscal Year 2024-25.

BACKGROUND: Section 53646 of the Government Code of the State of California authorizes the Treasurer or the Chief Financial Officer of each local agency to annually render to the legislative body of the agency a Statement of Investment Policy at a public meeting.

The City’s current policy was adopted on November 6, 2023 and is to be updated annually, including renewal of the City Council’s annual delegation of investment authority to the City Treasurer.

Currently, the Finance Director serves as the City Treasurer. The Investment Policy is reviewed annually to ensure the policy meets the City’s needs and in compliance with all legal and government code requirements.

The City’s investments are currently invested with the Local Agency Investment Fund (LAIF) Staff evaluates investment options on an ongoing basis to ensure reasonable access to funds and reserves are set aside to maintain availability of cash position for general operations and capital projects.

FISCAL IMPACT: The investment instruments allowed in this policy are consistent with the City’s current investment in the Local Agency Investment Fund (LAIF) and meets the stated investment policy objectives of safety, liquidity and return.

ATTACHMENTS:

Attachment A: Resolution No. 2024-60
Attachment B: Annual Investment Policy

RESOLUTION NO. 2024-60

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CALIMESA, CALIFORNIA ADOPTING A STATEMENT OF
INVESTMENT POLICY FOR THE FISCAL YEAR 2024-25
WHEREAS, Government Code Section 53646(a)(2) requires a Statement of Investment Policy rendered annually to the City Council for consideration during a public meeting, and
WHEREAS, the recommended Investment Policy is attached and reflects reporting schedules in compliance Government Code Section 53646(b)(1).

WHEREAS, Government Code Section 53607 authorizes the City Council to annually delegate to the City Treasurer the authority to invest or reinvest funds of the City and its related entities, and to sell and exchange securities so purchased; and
WHEREAS, the City Council desires to renew the delegation of such investment authority to the City Treasurer.

THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CALIMESA, AS FOLLOWS:

Section 1. The Statement of Investment Policy attached as Exhibit “A” is hereby adopted.

Section 2. Pursuant to Government Code Section 53607, the City Council, on behalf of the City and its related entities for which the City Councilmembers serve as the governing body, hereby renews for one year its delegation to the City Treasurer the authority to invest and reinvest funds of the City and its related entities, including without limitation the authority to sell and exchange securities.

PASSED, APPROVED AND ADOPTED this 4
th day of November, 2024.
________________________________

WILLIAM DAVIS, MAYOR
ATTEST:
_________________________________________

DARLENE GERDES, CITY CLERK
Attachment 5A

CITY OF CALIMESA

STATEMENT OF

INVESTMENT POLICY
Updated November 4, 2024
Attachment 5B

2 TABLE OF CONTENTS
INTRODUCTION………………………………………………………….Page 3
PURPOSE/STANDARD OF CARE…………………………………..Page 3
OBJECTIVES ………..……………………………………………………Page 3
INVESTMENT PARAMETERS…..……………………………………...Page 5
SAFEKEEPING……………………………………………………..…….Page 8
RESPONSIBILITIES………………………………………………….….Page 9
REPORTING…………………………………………………………..….Page 10
ANNUAL REVIEW………………………………………………………..Page 12
GLOSSARY OF TERMS……………………………………………..….Page 12

3 INTRODUCTION
It is the policy of the City of Calimesa, the Successor Agency to the Calimesa Redevelopment Agency, and other related entities of the City for which the City Councilmembers serve as governing body (hereinafter collectively referred to as the “City”) to predicate their investment policies, procedures, and practices upon the limitations placed upon them by governing legislative bodies. Such policies, procedures, and practices shall embody the following three principles: (1) compliance with federal, state and local laws governing the investment of public monies under the City’s control; (2) protection of the principal monies entrusted to the City; (3) maximization of profit within the parameters of prudent risk management, as defined in this Statement of Investment Policy (“SOIP” or “Investment Policy”).

PURPOSE
To establish an overall policy and procedure for the management of the investment of unexpended funds.

STANDARD OF CARE
Prudence: Investment officials shall adhere to the “prudent investor” standard of Government Code Section 53600.3 when managing the City’s investment portfolio. The prudent investor standard provides that investments shall be made with the care, skill, prudence, and diligence under circumstances then prevailing, including but not limited to the general economic conditions and the anticipated needs of the City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal of capital and maintain the liquidity needs of the City.

OBJECTIVES
Temporarily idle or surplus funds of the City shall be invested in accordance with principles of sound treasury management and in accordance with provisions of California Government Code Sections 53600 et seq., the Municipal Code, and this Investment Policy.

A. Overall Risk Profile
The basic objectives of Calimesa's investment program are, in order of priority:

1. Safety of invested funds (i.e., to safeguard the principal of the funds);

2. Maintenance of sufficient liquidity to meet cash flow needs; and

3. Attainment of the maximum return possible consistent with the first two objectives.

B. Achievement of Objectives
The achievement of these objectives shall be accomplished in the manner described below:

1. Safety
The City shall ensure the safety of its invested funds by limiting credit and interest rate risks. Credit risk is the risk of loss due to the failure of the security issuer or backer.

Interest rate risk is the risk that the market value of portfolio securities will fall due to market conditions, such as an increase in general interest rates.

4 a. Credit Risk will be mitigated by:
(1) Limiting investments to the safest types of securities; (2) Pre-qualifying with an established procedure the financial institutions with which it will do business;
(3) Diversifying the investment portfolio so that the failure of any one issuer or backer will not place an undue financial burden on the City; and b. Interest rate risk will be mitigated by:
(1) Structuring the City's portfolio so that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation to meet those specific needs;
(2) Investing primarily in short-term securities; and
(3) Occasionally restructuring the portfolio to minimize the loss of market value and/or to maximize cash flows.
c. The physical security or safe-keeping of the City's investments is also an important element of safety. Detailed safekeeping requirements are defined in the section of this Investment Policy entitled "Safekeeping of Securities".

2. Liquidity
The City's financial portfolio must be structured in a manner which will provide that securities mature at approximately the same time as cash is needed to meet anticipated demands. Additionally, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets.

The specific percentage mix of different investment instruments and maturities is described herein.

3. Return
The investment portfolio shall be designed with the overall objective of obtaining a total rate of return throughout economic cycles, commensurate with investment risk constraints and cash flow needs.

C. Time Frame for Investment Decisions
The City's investment portfolio shall be structured to provide that sufficient funds from investments are available every month to meet the City's anticipated cash needs.

Subject to the safety provisions outlined above, the choice of investment instruments and maturities shall be based upon an analysis of anticipated cash needs, existing and anticipated revenues, interest rate trends and specific market opportunities. As a general rule, and subject to annual review by the Investment Committee, the average

5 maturity of the investment portfolio will not exceed three years, and no investment will have a maturity of more than five years from its date of purchase.

D. Definition of Unexpended Funds
Unexpended funds for the purpose of this Investment Policy are all City funds which are available for investment at any time, including the estimated checking account float, excepting those minimum balances required by the City's banks to compensate them for the cost of banking services.

Investment Parameters
A. Types of Investments Authorized
The City may invest unexpended funds through national or state-chartered banks, savings and loans, authorized broker/dealers (each of the foregoing as more specifically described in California Government Code Section 53601.5), and the State Local Agency Investment Fund ("LAIF").

No investments shall have a maturity greater than five years. An investment’s term or remaining maturity shall be measured from the settlement date to final maturity.

Investments shall not have a forward settlement date exceeding 45 days from the time of investment. Combined investments with maturities greater than one year shall not exceed 70% of the total portfolio. Funds may be invested only in the following:

1. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the full faith and credit of the United States are pledged for the payment of principal and interest.

2. The Local Agency Investment Fund (LAIF).

3. Collateralized and/or FDIC-insured demand deposits in nationally or state-chartered banks or state or federal associations (as defined by Section 5102 of the Financial Code) meeting the requirements of Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the California Government Code).

4. Certificates of deposit issued by a nationally or state-chartered bank or a state or federal association (as defined by Section 5102 of the Financial Code), maturing in two years or less, the total of which shall not exceed 15% of the total portfolio, and which shall be insured by each institution at the maximum amount required by regulations of the F.D.I.C. and any amount above the insured amount must be collateralized in accordance with State law.

5. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, the total of which shall not exceed 75% of the total portfolio. Purchases shall be limited to senior issues as detailed below:

6 a. Federal National Mortgage Association (Fannie Mae). b. Government National Mortgage Association (Ginnie Mae) in an amount not to exceed 20% of the total portfolio.
c. Federal Home Loan Mortgage Corporation (Freddie Mac). d. Federal Home Loan Bank (FHLB).
e. Federal Farm Credit Banks (FFCB).
f. Federal Agricultural Mortgage Corporation (FAMC or Farmer Mac). g. Tennessee Valley Authority (TVA).

6. Money market mutual funds. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et seq.), the total of which shall not exceed 5% of the total portfolio. To be eligible for purchase, the money market fund shall be a “AAA” rated Government or U.S.

Treasury money market fund. In addition, the company shall have met either of the following criteria: (A) Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. (B) Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years' experience managing money market mutual funds with assets under management in excess of five hundred million dollars ($500,000,000).

The percentage limitations listed above on the amount of the City’s portfolio that may be invested in each investment category or issuer apply at time of purchase.

B. Prohibited Investments and Activities
Investments by the City in securities permitted by the California Government Code, but not specifically approved by this Investment Policy are prohibited without the prior approval of the City Council.

As required by California Government Code Section 53601.6, the City shall not invest any funds in inverse floaters, range notes, mortgage derived interest-only strips or any security that could result in zero interest accrual if held to maturity.

No representative of the City is authorized to engage in margin transactions, derivatives, nor reverse repurchase agreements on behalf of the City.

While it may occasionally be necessary or strategically prudent of the City to sell a security prior to maturity to either meet unanticipated cash needs or to restructure the portfolio, this Investment Policy specifically prohibits trading securities for the sole purpose of speculating or taking an unhedged position on the future direction of interest rates. Specifically, "when, as and if issued" trading and open-ended portfolio restructuring transactions are prohibited.

7 C. Qualification of Brokers, Dealers and Financial Institutions United States Treasury issue transactions shall be conducted only with the Federal Reserve, or the bank providing banking services for the City, or broker/dealers currently authorized to provide investment services to the City.

The City Treasurer shall maintain a list of financial institutions and broker/dealers authorized to provide investment purchase and sale services to the City. The authorized financial institutions and broker/dealers shall meet the requirements of Government Code Section 53601.5, maintain an office in the State of California, and shall qualify under the Securities and Exchange Commission (“SEC”) Rule 15C3-1 (uniform net capital rule). If at any time the City Treasurer learns that a financial institution or broker/dealer does not maintain an office in the State of California or no longer meets the requirements of Government Code Section 53601.5 or qualifies under the SEC Rule 15C3-1, the Treasurer shall immediately notify the City Council and shall place the item on the next agenda. Annually, all authorized firms must supply the City Treasurer with a current audited financial statement and documents verifying compliance with Rule 15C3-1. This information shall be transmitted annually to the City Council not later than July 31.

Annually, the investment advisory firms shall provide to the City, a list of Investment Brokers approved by the investment advisory firms. For transactions executed by the investment advisory firms engaged by the City, the firms’ approved lists may be used, with the exception of any specific broker(s) that may be excluded by the City.

D. Collateralization Requirements
Uninsured time deposits with banks and savings and loans shall be collateralized in the manner prescribed by law (i.e., Government Code Section 53630 et seq.) for depositories accepting municipal investment funds.

E. Ethics & Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Such employees and investment officials shall disclose to the City Council and the City Manager any material financial interests in financial institutions that conduct business within this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio. Such employees and officers shall subordinate their personal investment transactions to those of the City, particularly with regard to the time of purchases and sales.

F. Pre-formatted Wire Transfers
Wherever possible, the City shall use pre-formatted wire transfers to restrict the transfer of funds to pre-authorized accounts only. Authorized City officials are the City Manager and the Director of Finance/City Treasurer. Wire transfers between brokers and/or security dealers are prohibited. Wire transfers directly between LAIF and the City’s safekeeping bank are permitted.

8 G. Notice of Investment Policy
The City shall send a copy of the current edition of this Investment Policy and enabling resolution upon opening an account and annually to all institutions which are approved to handle City investments. Receipt of the Investment Policy and authorizing resolution, including confirmation that it has been reviewed by persons handling the City's account, shall be acknowledged in writing within thirty days.

H. Investing Bond Proceeds
For the purpose of this section, "Bond Proceeds" shall include any notes, bonds or other instruments issued on behalf of the City, for which the members of the City Council serve as the governing body. Should the City elect to issue bonds for any purpose, the Indenture of Trust or Trust Agreement shall be the governing document specifying allowable investments for the proceeds of the issue as prescribed by law (i.e., Government Code Section 5922(d)). If the bond documents are silent as to the permitted investments, bond proceeds shall be invested in securities permitted by this Investment Policy. With respect to maximum maturities, if in the opinion of the City Treasurer matching the segregated investment portfolio of the bond reserve fund with the maturity schedule of an individual bond issue is prudent given current economic analysis, the Investment Policy authorizes extending beyond the five-year maturity limitation.

Safekeeping of Securities and Certificates of Deposit (CD) A. Safekeeping Agreement
The City shall contract with a state or national bank or trust company located within the State of California for the safekeeping of securities, other than CDs, LAIF, and money market mutual funds, which are owned by the City as part of its investment portfolio.

B. Handling of City-Owned Securities and Certificates of Deposit All CDs owned by the City shall be held by the City. The collateral for non-FDIC insured, nonnegotiable CDs purchased from a nationally or state-chartered bank or state or federal association (as defined by Section 5102 of the Financial Code) shall be held pursuant to a depository contract between the City and the issuer of the CD per Government Code Section 53649. Pursuant to Government Code Sections 53649, 53656, 53657, and 53659, such collateral shall be held by the Federal Home Loan Bank of San Francisco, or a trust company located within the State of California or a trust department of a bank located within the State of California, that has been authorized pursuant to Government Code Section 53657 by the Administrator of Local Agency Security designated under Government Code Section 53661 (currently, the State Commissioner of Financial Protection and Innovation) to act in such a capacity.

C. Security Transfers
All security transactions entered into by the City shall be conducted on a Delivery-VersusPayment (DVP) basis. DVP is delivery of securities with an exchange of money for the securities, and with an exchange of a signed receipt for the securities. Pursuant to Government

9 Code Section 53608, the City Council delegates to the City Treasurer the authority to deposit for safekeeping the City’s securities, and all securities, except CDs and money market funds, shall be held in an account in the City's name by a third-party custodian designated by the City Treasurer and meeting the requirements of Government Code Section 53608. LAIF accounts shall be held in the name of the City or related entity for which the members of the City Council serve as the governing body.

The authorization to release City securities shall be provided in writing signed by two authorized signatories. Authorized City officials are the City Manager/Director of Finance and the City Treasurer.

D. Verification of Certificates of Deposit Collateral
The collateral for non-FDIC insured certificates of deposits shall be an amount at least equal to the minimum specified in Government Code Section 53652 (currently ranging from 105% to 150% of the deposited funds, depending on the type of collateral). Per Government Code Section 53661, the Administrator of Local Agency Security designated thereunder (currently, the State Commissioner of Financial Protection and Innovation) will monitor the collateral held by the custodian of collateral pledged for local agency deposits.

Responsibilities
A. Responsibilities of the Finance Department
Subject to Government Code Section 53608 and the direction and supervision of the City Treasurer as the City Council’s delegate thereunder, the Finance Department is charged with responsibility for maintaining custody of all public funds and securities belonging to or under the control of the City and for the deposit and investment of those funds in accordance with principles of sound treasury management and with applicable laws and ordinances. However, duties related to day-to-day investment activities shall be performed by an official other than the person responsible for accounting for those investments.

B. Responsibilities of the Director of Finance
The Finance Director is appointed by the City Manager and is subject to his or her direction and supervision, subject to Government Code Section 53607 and the direction and the supervision of the City Treasurer as the City Council’s delegate thereunder with respect to investment authority. The Director of Finance is charged with responsibility for the conduct of all Finance Department functions, and the development of procedures to implement this Investment Policy as approved by the City Council.

C. Responsibilities of the City Manager
The City Manager is responsible for directing and supervising the Director of Finance. He or she is responsible further to keep the City Council fully advised as to the financial condition of the City.

D. Responsibilities of the City's Auditing Firm
The City's auditing firm's responsibilities shall include, but not be limited to, the examination and analyses of fiscal procedures and the examination, checking and verification of accounts

10 and expenditures. A review of the City's investment program is a part of the responsibility described above.

E. Responsibilities of the City Council
The City Council shall annually consider and adopt a written investment policy. As provided in that policy, the Council shall receive, review, and accept monthly and quarterly Investment Reports.

G. Responsibilities of the City Treasurer
Pursuant to Government Code Section 53607, the City Council delegates to the City Treasurer for a one-year period the authority to invest or to reinvest funds of the City, and to sell or exchange securities so purchased, and the City Treasurer shall be responsible to carry out all investment transactions. Such delegation may be annually renewed by the City Council pursuant to Government Code Section 53607.

Pursuant to Government Code Section 53608, the City Council has delegated to the City Treasurer the authority to deposit for safekeeping the City’s securities, and the City Treasurer shall be responsible for such safekeeping in accordance with applicable law, including but not limited to Government Code Section 53608 and, as to deposit accounts or non-negotiable certificates of deposit, Government Code Section 53630 et seq.

H. Responsibilities of Investment Advisors
The City Treasurer, as the City Council’s delegate of investment authority under Government Code Section 53607, may select a third party investment advisor to assist with the investment of City funds, provided that the City Treasurer exercises prudence in the selection of the investment advisor, imposes suitable safeguards to prevent abuse in the exercise of discretion by the investment advisor, and remains responsible for any investment decisions made by the investment advisor. Approved investment advisors shall provide the service within the following parameters:

1. All investments made on behalf of the City shall be accomplished in accordance with this Investment Policy.

2. All investment advisors must be explicitly authorized by the City Council.

3. All investment advisors must provide services within the scope of responsibility consistent with their contract with the City.

4. All investment advisors must be duly registered with the U.S. Securities & Exchange Commission.

Reporting
So long as the City Council’s annual delegation of investment authority to the City Treasurer pursuant to Government Code Section 53607 is effective, the City Treasurer shall make a monthly report of all investment transactions to the City Council.

The Director of Finance shall prepare a quarterly investment report containing the information required by Government Code Section 53646(b), including a succinct management summary that provides a

11 clear picture of the status of the current investment portfolio and all security transactions made over the past three months. This report shall be submitted to the City Council members within forty-five (45) days following the end of the quarter as contemplated by Government Code Section 53646(b)(1); provided, if the information required to be contained in the quarterly Investment Report (as described below) is not yet available from the applicable financial institutions, the quarterly Investment Report shall be submitted to the City Council members as soon as possible thereafter, not to exceed sixty (60) days following the end of the quarter.

The quarterly Investment Report shall include the following:

A. A listing of individual securities and deposits held at the end of the reporting quarter; B. The type of investment, issuer, date of maturity, par amount, cost and market value of marketable securities at the end of the quarter; provided, for City investments that have been placed in the State of California Local Agency Investment Fund or in FDIC-insured accounts of an eligible bank or savings and loan association, the Director of Finance may supply to the City Council the most recent statement(s) received from these institutions in lieu of the foregoing information.

C. All security transactions occurring during the quarter whether or not the transaction has been fully settled;
D. Interest or dividend income credited to the account. If interest or dividends are not paid as earned, the interest amounts receivable should be shown; E. Realized gains or losses on sales of investments;
F. Unrealized gains or losses during the period;
G. The nature of all such investments in the portfolio should be described; H. With respect to interest bearing investments, the Investment Report shall indicate the face rate of interest and the effective yield to the City based on its cost of the investment.

I. The following statement shall be included in each report prepared by the Director of Finance and signed by the City Treasurer:
“All City investments are shown above and conform to the City Investment Policy. All investment transactions during this period are included in this report. As City Treasurer of the City of Calimesa, I hereby certify that sufficient investment liquidity and anticipated revenue are available to meet the next six (6) months' estimated expenditures.” If the first sentence of the foregoing statement cannot be reasonably made, the City Treasurer shall include the disclosure statement required by J. below in lieu of such sentence. If the second sentence of the foregoing statement cannot be reasonably made, the City Treasurer

12 shall provide in lieu of such sentence an explanation as to why sufficient money will or may not be available for the next six months’ estimated expenditures.

J. If a discrepancy exists between any restrictions in the Investment Policy, when compared to the period reflected on the Quarterly Investment Report, the following disclosure statement shall be included on the Report:
“I hereby certify that this report accurately reflects all investments, including pooled investments, and is in compliance with California Government Code Sections 53640 through 53646, as amended, and is in conformity with the City of Calimesa Investment Policy, except for the following deviation(s):”
Annual Review
This Investment Policy shall be reviewed each year by the City Council to ensure its consistency with respect to the overall objectives of safety, liquidity, and yield. Proposed amendments to the Investment Policy shall be prepared and be forwarded to the City Council for consideration.

GLOSSARY OF INVESTMENT TERMS
AGENCIES: Federal agency and instrumentality securities.

ASKED: The price at which securities are offered.

BANKERS’S ACCEPTANCE (“BA”): A draft, bill, or exchange accepted by a bank or a trust company. Both the issuer and the accepting institution guarantee payment of the bill.

BID: The price offered by a buyer of securities (when one sells securities, one asks for a bid).

BROKER: A broker brings buyers and sellers together so that he can earn a commission.

CERTIFICATE OF DEPOSIT (“CD”): A time deposit with a specific maturity, as evidenced by a certificate. Large-denomination CDs are typically negotiable.

COLLATERAL: Securities, evidence of deposit, or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

COMPREHENSIVE ANNUAL FINANCIAL REPORT (“CAFR”): It includes combined statements for each individual fund and account group, that are prepared in conformity with GAAP. It also includes supporting schedules that are necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section.

COUPON: (a) The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value. (b) A certificate attached to a bond that evidences interest due on a payment date.

13 DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account.

DEBENTURE: A bond secured only by the general credit of the issuer.

DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities.

DERIVATIVES: (1) Financial instruments that are linked to, or derived from, the movement of one or more underlying indexes or securities, and may include a leveraging factor; or (2) financial contracts based upon a notional amount whose value is derived from an underlying index or security (e.g., interest rates, foreign exchange rates, equities, or commodities).

DISCOUNT: The difference between the acquisition cost of a security and its value at maturity, when quoted at lower than face value. A security that sells below original offering price shortly after sale, is also is considered to be at a discount.

DISCOUNT SECURITIES: Non-interest bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills).

DIVERSIFICATION: Dividing investment funds among a variety of securities that offer independent returns.

FEDERAL CREDIT AGENCIES: Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters).

FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”): A federal agency that insures bank deposits, currently up to $250,000 per depositor per insured bank.

FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations.

FEDERAL HOME LOAN BANKS (“FHLB”): Government-sponsored wholesale banks (currently 11 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members, who must purchase stock in their District Bank.

FEDERAL NATIONAL MORTGAGE ASSOCIATION (“FNMA” or “Fannie Mae”): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. Due to its federal charter, FNMA is considered a U.S. government-sponsored enterprise. It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a publicly-traded stockholder-owned corporation that has also been under the conservatorship of the Federal Housing Finance Agency (FHFA) since September 6, 2008The corporation’s purchases

14 include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages.

FNMA’s securities are also highly liquid and are widely accepted. For some securities issued by FNMA, FNMA provides guarantees as to the payment of principal and interest.

FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system.

GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (“GNMA” or “Ginnie Mae”): Mortgagebacked securities that influence the volume of affordable housing loans and that are guaranteed by GNMA. A security holder is protected by the full faith and credit of the U.S. Government. Underlying mortgages for Ginnie Mae securities include those issued, insured, or guaranteed by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), the U.S. Department of Agriculture’s Rural Development (RD), and the U.S. Department of Housing and Urban Development’s Office of Public and Indian Housing (PIH). The term “pass-throughs” is often used to describe Ginnie Maes.

LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable size can be done at those quotes.

LOCAL AGENCY INVESTMENT FUND (“LAIF”): Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment.

MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold.

MATURITY: The date upon which the principal or stated value of an investment becomes due and payable.

MONEY MARKET: The market in which short-term debt instruments (e.g., bills, commercial paper, banker’s acceptances) are issued and traded.

OFFER: The price asked by a seller of securities (when one buys securities, one asks for an offer).

See “Asked” and “Bid”.

PORTFOLIO: A collection of securities that an investor holds.

PRUDENT INVESTOR RULE: An investment standard. A fiduciary, such as a trustee, may invest in a security if it is one that would be bought by a prudent investor acting in like capacity, who is seeking reasonable income and preservation of capital. As to the City (including its related entities), the prudent investor standard is established by, and specifically described in, California Government Code Section 53600.3
RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price.

15 REPURCHASE AGREEMENT (“RP” OR “REPO”): A holder of securities sells them to an investor with an agreement to repurchase the securities at a fixed price on a fixed date. The security “buyer”, in effect, lends the “seller” money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions.

Exception: when the Fed is said to be doing RP, it is lending money (increasing bank reserves).

SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank‘s vaults and/or a customer custodial account (as to non-certificated securities) for protection.

SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution.

SECURITIES AND EXCHANGE COMMISSION: An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions.

SEC RULE 15c3-1: See “Uniform Net Capital Rule”.

TREASURY BILLS: A non-interest bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year.

TREASURY BONDS: Long-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 years.

TREASURY NOTES: Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years.

UNIFORM NET CAPITAL RULE: SEC requirement that member firms, as well as non-member broker-dealers in securities, maintain a maximum ratio of indebtedness-to-liquid capital of 15 to one.

Also called net capital rule and net capital ratio. Indebtedness covers all money that is owed to a firm, including margin loans and commitments to purchase securities (one reason that new public issues are spread among members of underwriting syndicates). Liquid capital includes cash and assets easily converted into cash.

YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

City Council Meeting
Agenda Report
Agenda Item No. 6
SUBJECT: FIRST AMENDMENT TO ANIMAL CONTROL FIELD AND

SHELTER SERVICES AGREEMENT WITH COUNTY OF

RIVERSIDE
MEETING DATE: November 4, 2024
PREPARED BY: Will Kolbow, City Manager
RECOMMENDATION: That the City Council approve the First Amendment to the Agreement for Animal Control Field and Shelter Services between the City of Calimesa and the County of Riverside.

BACKGROUND/DISCUSSION: In August 2022, the City of Beaumont, which had previously provided animal control services for the City of Calimesa, informed the City that they would not be able to provide services beyond June 30, 2023. As a result, the City explored several alternatives for animal control services and chose to contract with the County of Riverside. The Agreement for Animal Control Field and Shelter Services (Agreement) covered the period of July 1, 2023, through June 30, 2024.

Overall, the County’s services have been satisfactory, and no other viable options are available currently. Therefore, staff is recommending that the City Council approve an Amendment to the Agreement which extends the contract term to June 30, 2025. Despite the timing, the County continues to provide services under the Agreement while the Amendment goes through the approval process. If the City Council approves the Amendment, it will next go to the County Board of Supervisors for approval.

The Amendment also incorporates a 5% increase in hourly rates. The Agreement is based on actual usage only. Activity in the first year of the Agreement was far lower than budgeted; therefore, the City can absorb the increase in costs.

FISCAL IMPACT: In Fiscal Year 2023-24, the City budgeted $61,000 for animal control services.

However, FY 2023-24 actual expenditures are projected to be approximately $20,000. The Fiscal Year 2024-25 budgeted expenditures for animal control services are $36,000. Staff does not expect services levels to change significantly from the previous year’s activity; therefore, there is sufficient budget to cover the 5% increase in hourly rates.

ATTACHMENTS:

Attachment A: First Amendment to Agreement for Animal Control Field and Shelter Services

FIRST AMENDMENT TO AGREEMENT FOR

ANIMAL CONTROL FIELD AND SHELTER

SERVICES BETWEEN THE CITY OF CALIMESA

AND THE COUNTY OF RIVERSIDE

This First Amendment to the AGREEMENT FOR ANIMAL CONTROL FIELD AND SHELTER SERVICES between COUNTY OF RIVERSIDE, a political subdivision of the State of California, on behalf of its Department of Animal Services (“COUNTY”) and the CITY OF CALIMESA (“CITY”), herein referred to as the “First Amendment”, dated as of the Effective Date (defined herein), amends the Agreement as follows:

RECITALS
WHEREAS, COUNTY and CITY entered into that certain Agreement for Animal Control Field and Shelter Services between the City of Calimesa and the County of Riverside for the provision of Animal Control Field and Shelter Services for a term commencing July 1, 2023 through June 30, 2024 (“Agreement”); and
WHEREAS, the COUNTY’s Board of Supervisors ratified and approved the Agreement on August 29, 2023, in Minute Order 3.11; and
WHEREAS, the COUNTY has continuously provided the CITY with Animal Control Field and Shelter Services since July 1, 2023; and
WHEREAS, the Agreement authorizes amendments to the Agreement with the approval of the Board of Supervisors of COUNTY and City Council of CITY; and WHEREAS, COUNTY and CITY desire to extend the term of the Agreement until June 30, 2025; and
WHEREAS, COUNTY and CITY desire to amend the Agreement to reflect changes in the Riverside County Ordinance, County Code, Title 6, compensation, license fees and payment provisions.

NOW, THEREFORE, in consideration of the foregoing, COUNTY and CITY agree as follows:

1. Recitals – The recitals set forth above are true and correct and incorporated herein by reference.

2. Effective Date and Term. “The “Effective Date” of this First Amendment shall be July 1, 2024 and the term of the Agreement is hereby extended to and will now expire on June 30, 2025 unless terminated earlier as provided in Section 8, Termination thereof.”

3. Section 4 Personnel: Delete in its entirety and replace with the following:

In order for COUNTY to provide the full scope of services to CITY under this Agreement, within six (6) months following the Effective Date of this Agreement, CITY shall adopt the current verbatim language of the regulations, provisions, and rates found in Riverside County Ordinance Nos. 534 and 630 codified as Riverside County Code of Ordinances Title 6- Attachment 6A

FIRST AMENDMENT TO AGREEMENT FOR

ANIMAL CONTROL FIELD AND SHELTER

SERVICES BETWEEN THE CITY OF CALIMESA

AND THE COUNTY OF RIVERSIDE

Animals, and shall amend its CITY municipal code when COUNTY amends its Animal Control Ordinances, from time to time. CITY will revise its municipal code within sixty (60) days of the COUNTY’s notification. COUNTY shall provide the verbatim language to the CITY that shall be adopted into CITY’s municipal codes. Notwithstanding the foregoing, CITY retains all legislative authority pertaining to the regulation of animals within its jurisdiction.

4. Exhibit “A,” Exhibit “B” and Exhibit “C” of the Agreement are hereby removed in their entirety and replaced with Exhibit “A-1”, Exhibit “B-1,” and Exhibit “C-1” attached hereto and incorporated herein by this reference.

5. Entire Understanding. The First Amendment and the Agreement contain the entire understanding and agreement of the Parties. There are no oral or written representations, understandings, or ancillary covenants, undertakings or agreements that are not contained or expressly referred to within this First Amendment and Agreement.

6. Further Assurances. The Parties agree to execute such other documents and to take such other actions as may be necessary to further the purpose of this First Amendment.

7. Agreement in Full Force and Effect. Except as otherwise expressly modified herein, all other terms and conditions of the Agreement remain unmodified and in full force and effect.

8. Counterparts. This First Amendment may be executed in several counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.
[SIGNATURES ON FOLLOWING PAGE]

FIRST AMENDMENT TO AGREEMENT FOR

ANIMAL CONTROL FIELD AND SHELTER

SERVICES BETWEEN THE CITY OF CALIMESA

AND THE COUNTY OF RIVERSIDE

IN WITNESS WHEREOF, COUNTY and CITY have caused their duly authorized representatives to execute this First Amendment.

COUNTY OF RIVERSIDE CITY OF CALIMESA
By:

Chuck Washington, Chair
Board of Supervisors
ATTEST:

Kimberly Rector
Clerk of the Board
By:

By:

William Davis
Mayor
ATTEST:

Darlene Gerdes
City Clerk
By:

APPROVED AS TO FORM:

Minh Tran
County Counsel
By:

BRUCE G. FORDON
APPROVED AS TO FORM:

By:

Quinn Barrow
Deputy County Counsel City Attorney

CITY OF CALIMESA
EXHIBIT “A-1”

SCOPE OF ANIMAL CONTROL FIELD SERVICES
The County of Riverside (“COUNTY”), agrees to provide the following Animal Control Field Services for the City of Calimesa (“CITY”):

1. Provision of Field Services: The Animal Control Field Services to be provided by COUNTY for CITY within the corporate limits of CITY shall include the following activities:

1.1 Field Service Assistance: Respond to all calls for field service assistance pursuant to the priority of calls as described in this Exhibit “A-1” below.

1.2 Impoundment: County shall impound all animals found at large and collect and retain such impound fees as established by COUNTY’s Board of Supervisors.

1.3 Proper Care and Treatment: Provide humane care and treatment to any stray or abandoned animal in accordance with State law.

1.4 Animal Bites: Investigate reported bites by animals. COUNTY shall respond to all reported bites by dogs or by suspected rabid or wild animals. CITY shall be responsible for handling, whether directly or by its own legal counsel, administrative or criminal proceedings, including and without limitation, appeals and enforcement actions, arising hereunder; COUNTY shall reasonably facilitate and make Animal Control Officers available for such court proceedings.

1.5 Quarantine: Quarantine all animals suspected to be rabid and/or that have bitten a person as prescribed by the California Compendium of Rabies Control and Prevention, the California Department of Public Health, and COUNTY policy.

1.6 Nuisance Animal Complaints: Respond to and process nuisance complaints, including stray and barking animal complaints, as referenced in Riverside County Ordinance 630, codified at Title 6 of the Riverside County Municipal Code (“Title 6”).

CITY shall be responsible for handling, whether directly or by its own legal counsel, administrative or criminal proceedings, including and without limitation, appeals and enforcement actions, arising hereunder; COUNTY shall reasonably facilitate and make Animal Control Officers available for such court proceedings.

1.7 Dead Animals: Remove dead animals from the public right-of-way except in such cases where the animal is on a state highway within CITY limits. In such cases, COUNTY shall immediately (or as soon as practicable) notify the State of California Department of Transportation by telephone, facsimile, email or other means.

1.8 Return of Impounded Animals: Encourage the return of any lost/stray animal (impounded by field personnel) to the rightful owner in the field, subject to the payment of impound fees.

1.9 Kennels and Catteries: COUNTY shall inspect and issue permits to operate dog kennels and catteries within CITY pursuant to Title 6 and collect fees in connection therewith.

1.10 Issuance of Warnings and Citations: Enforce all appropriate provisions of Riverside County Ordinances, codified at Title 6 of the Riverside County Municipal Code, as necessary, including the issuance of warning notices or citations, for violations of the provisions of said Code. CITY shall be responsible for handling, whether directly or by its own legal counsel, administrative or criminal proceedings, including and without limitation, appeals and enforcement actions, arising hereunder;

COUNTY shall reasonably facilitate and make Animal Control Officers available for such court proceedings.

1.11 Service to Public: Provide service to the public on matters covered in this Agreement consistent with established policies and procedures that promote courteous and efficient service and good public relations. Other policies and procedures notwithstanding, COUNTY, in processing any type of complaint or request for service, shall indicate to the caller that a response can be expected as described in Section 5 below.

1.12 Complaints: The CITY and COUNTY shall designate a primary and alternate contact person for the purpose of addressing complaints. "Complaint" as used herein shall mean any dissatisfaction or problem in the performance of services under this contract. When a complaint is received that requires a response from either PARTY, the CITY and COUNTY representatives designated for addressing complaints shall meet and confer to investigate and address the complaint within a reasonable time period.

2. Shelter Care and Disposition Services: The COUNTY shall shelter CITY’s animals at the County Animal Shelter, or other COUNTY operated shelter at the COUNTY’s discretion.

3. Provision of Supplies, Vehicles and Radio Equipment: COUNTY shall provide animal control vehicle(s) and equip it with the appropriate animal control boxes mounted on the truck chassis and with an air conditioning unit mounted on the animal control truck boxes for use in the provision of services as set forth in this Agreement. Vehicles shall be replaced at the COUNTY’s discretion. The COUNTY shall fuel and maintain said vehicles. County shall also provide all other supplies, medications, pharmaceuticals, and equipment necessary for the efficient and effective operation of animal control field services provided herein.

4. Missing or Stolen Animals: COUNTY shall file a report with the appropriate law enforcement agency within twenty four (24) hours if an impounded animal is missing or suspected to have been stolen from an animal control vehicle or while in COUNTY’s custody. COUNTY shall indicate on the police report the circumstances of the animal's disappearance.

5. Priority of Field Services:

5.1 Definitions:

5.1.1 “Services” are those enforcement activities rendered by COUNTY pursuant to the relevant sections of Title 6, related State law, and where applicable, County of Riverside Ordinances, and are assembled for expediency into two categories: Emergency and Non-Emergency.

5.1.2 “Priority Ranking” refers to the order of priority with which a call will be handled. All calls shall go directly to the dispatcher or assigned clerical staff for relay to the Animal Control Officer. If a call is exceptional, as defined in Section 5.4 of this Exhibit “A-1”, it shall be referred to the supervisor for evaluation and processing.

5.1.3 “Regular Service Hours” are the hours of 7:30 am to 5:00 pm, Monday through Friday, Holidays excepted.

5.1.4 “Limited Service Hours” are the hours of 5:00 pm to 7:30 am, Monday through Friday, all day Saturday, Sunday and on holidays.

5.1.5 “Holidays” are as those days as established by the COUNTY and the CITY wherein the CITY or COUNTY is closed for service on a day that would otherwise be a regular service day.

5.2 Field service activities shall be performed daily and are generally based on both the Priority Ranking and on Limited Service Hours. All calls involving imminent danger will be responded to within sixty (60) minutes if reasonably possible, subject to considerations involving the time of day, traffic conditions, or other circumstances. An Animal Control Officer shall respond to animal medical emergencies and other emergencies involving danger to humans within thirty (30) minutes or less during Regular Service Hours, and within sixty (60) minutes or less during Limited Service Hours and on Holidays. CITY acknowledges that response time may be affected by traffic congestion or other hindering circumstances.

COUNTY shall provide a means for responding to calls for service that take place during Limited Service Hours which are of an emergent nature pursuant to this Exhibit “A-1”. Field service personnel shall be assigned to patrol and perform other service field tasks as defined by COUNTY and CITY.

5.3 Telephone service: The COUNTY shall answer all telephone calls for field services during Regular Service Hours. Calls shall be received by the COUNTY answering service during Limited Service Hours and on Holidays, as noted above.

Calls answered by the answering service will be handled on an emergency basis as outlined in this Exhibit “A-1”. The dispatcher and/or clerical support staff shall maintain a detailed record of all requests for service, both emergency and routine, received during Regular Service Hours and Limited Service Hours, including time and date, when the calls were answered, and the disposition of those calls. Records of these calls shall be maintained for at least thirty (30) days. The CITY and COUNTY agree that any incident reports to the COUNTY by residents or through emergency services involving a dangerous, aggressive, wild, injured or sick animal constitute an emergency and requires immediate action by the COUNTY pursuant to this Agreement. Calls for service received during Limited Service Hours that are not of an emergent nature shall be answered by an answering service and referred to call back on the next business day during phone center operational hours. These calls then be scheduled for response in accordance with this Exhibit “A-1”.

5.4 Calls considered as Emergencies to be handled Without Delay:

5.4.1 Animals endangering health or safety of the community.

5.4.2 Police Department requests forservice.

5.4.3 Sick or injured stray animals.

5.4.4 Animals in distress.

5.4.5 Humane investigations – life threatening. (Depending on immediate circumstance)

5.4.6 Venomous snakes

5.4.7 Dead animal removal, Summer months only between June 1 and August 31 during Regular Business Hours

5.5 Calls Considered as Non-Emergency to be handled during Regular Business Hours:

5.5.1 Pick-up confined, healthy, stray-animals.

5.5.2 Dead animal removal, between September 1 and May 31.

5.5.3 Quarantine investigations.

5.5.4 Leash law enforcement.

5.5.5 Nuisance animal investigations.

5.5.6 Permit investigations.

5.6 Exceptions:

The Director of Animal Control or the deputies of the Animal Control Director may, on a case-by-case basis, authorize variations of priority when circumstances require.

6. Quarterly Reports:

COUNTY shall furnish to the City Manager, or designee, quarterly and annual reports detailing field services provided that quarter. Upon reasonable notice to COUNTY, CITY may inspect any facility or records to verify the data contained in the reports.

CITY OF CALIMESA
EXHIBIT “B-1”

SCOPE OF ANIMAL SHELTERING SERVICES
The County of Riverside, on behalf of its Department of Animal Services (“COUNTY”), agrees to provide the following Animal Shelter Services for the City of Calimesa (“CITY”). All capitalized terms set forth herein are defined in Section “B-1” below.

A. COUNTY ANIMAL SHELTER LOCATION

1. Shelter Location: The COUNTY shall maintain CITY’s animals at the San Jacinto Valley Animal Campus (“Shelter”), or other shelter operated by COUNTY at COUNTY’s discretion.

The COUNTY shall be responsible for the operation and maintenance of its shelters and the care of the animals on a twenty-four (24) hour basis.

2. Shelter Hours of Operation: COUNTY shall maintain hours of operation at the Shelter to provide maximum public access to the animals, to the extent possible.

B. DEFINITIONS

1. Animal Shelter Services” shall include the following activities and services:
a. Impoundment, admittance, receipt of, care of, custody of and/or feeding of any and all stray animals.
b. Redemption, treatment, sale, adoption, and/or disposal of all animals. c. Counseling and advising animal owners.
d. Posting on Shelter’s website of photographs of all newly impounded animals and identifying each animal individually.
e. Ensuring that all dogs, four (4) months and older, released from the COUNTY to a resident of County of Riverside are licensed, microchipped, and spayed/neutered and, if not licensed, to sell license to the owner or other person taking custody of such dog. In accordance with COUNTY ordinances, require the micro-chipping of released animals at the owner’s expense. f. Humane euthanasia of animals as lawful and necessary, including the creation of a log detailing those animals that are euthanized and the reasons for such euthanasia on an animal-by-animal basis. This log shall include whether the animal was unhealthy and/or unsuitable for adoption. g. Proper disposal of dead animals at the rate as set forth in Exhibit “C-1”, Payment Provisions. h. “Care” includes, but is not limited to providing a safe, temporary refuge for any animal impounded, and providing needed medical services for injured/sick animals or transfer of animal to the appropriate agency.

2. “Adoptable Animal” shall mean an animal eight (8) weeks of age or older that at or subsequent to the time the animal is impounded or taken into possession, has manifested no sign of disease, injury, or congenital or hereditary condition that adversely affects the health or temperament of the animal, or that is likely to adversely affect the animal’s health in the future. Dogs declared “vicious” or “potentially dangerous” under State and/or local laws shall be deemed unadoptable.

3. “Treatable” shall mean an animal with a medical condition such as skin problems, bad flea or skin infestations, a broken limb, abscesses, or problems that may be treated with appropriate resources, holding space, treatment and/or time. “Treatable” shall also mean an animal with behavioral conditions that may be corrected with time and proper training, such as chasing animals/objects, food aggression,

etc.

4. “Untreatable Animal” shall mean any animal that is irremediably suffering from a serious illness or physical injury or behavioral condition and shall not be held for owner redemption or adoption.

5. “Impounded Animal” shall include animals found running at large, removed from private property, or that are taken into the shelter by COUNTY or law enforcement.

6. “Seized Animal” shall include animals that are confiscated under Penal Code 597.1 from an owner when ordered by a court of competent jurisdiction, whether the seizure was determined justified or not, when exigent circumstances exist.

C. SCOPE OF ANIMAL SHELTER SERVICES

1. Treatment of Animals: COUNTY shall provide adequate care and treatment of CITY’s animals whiles in custody of COUNTY to ensure that impounded animals are provided with humane and appropriate levels of care, including a clean environment, fresh water, adequate nutrition and appropriate medical care.

2. Level of Service Provided: COUNTY shall provide Animal Shelter Services as defined in this Agreement. COUNTY’s policies and procedures for Animal Shelter Services shall be based on standards and/or guidelines derived from reputable animal care organizations including, but not limited to, the Humane Society of the United States, American Humane Association and American Veterinary Medical Association.

3. Feeding Protocols: All animals shall be fed in amounts appropriate to meet their nutritional needs.

4. Disease Control and Sanitation: COUNTY shall maintain the Shelter in a clean and sanitary condition.

COUNTY’s policies and procedures may include beneficial standards and/or guidelines derived from reputable animal care organizations including, but not limited to, the Humane Society of the United States, American Humane Association and American Veterinary Medical Association.

5. Provision of Personnel and Supplies: COUNTY shall provide personnel, supplies, materials, medication, pharmaceuticals, and equipment, including forms and reports, to perform all aspects of the Animal Shelter Services described herein.

6. Holding Periods: COUNTY shall hold all stray-impounded animals, not otherwise owner identifiable, for the holding periods as required by State law.

7. Euthanasia: Humane euthanasia services shall be provided as required for impounded animals held at the Shelter for the lawful number of days, if such animal is not reclaimed by the animal’s owner and is deemed not adoptable by COUNTY. Untreatable Animals that are irremediably suffering from a serious illness or severe injury may not be held for owner redemption or adoption. Only euthanasia methods approved by the American Veterinary Medical Association shall be used. Records shall be kept for a period of not less than three (3) years on each euthanized animal shall include the following information:
breed; sex; color; weight; other distinguishing characteristics; date, time and location where animal was found; method of euthanasia, and reason for use of method.

8. Quarantine: COUNTY shall quarantine, as prescribed by the California Compendium of Rabies Control and Prevention, State law, and COUNTY policy, all animals suspected of being rabid, or involved in a bite investigation.

Impoundments and Quarantines: COUNTY shall house, feed and care for all animals impounded and/or

quarantined at the Shelter. Quarantined animals may be quarantined at the owner’s home or an alternate location.

9. Animals Surrendered by their Owners: Any pet surrendered by the owner to an Animal Control Officer and transported to the COUNTY shelter shall incur prevailing owner surrender charges. Such fees shall be collected from the owner and conveyed to the COUNTY, or be charged directly to the CITY at the established stray animal rate.
a. Animals Surrendered by their Owners: Owner Surrenders will be impounded on a case by case basis. Diversion programs will be offered to assist with pet retention. CITY shall direct their constituents to consult with COUNTY to surrender their pet. COUNTY will offer CITY’s constituents assistance through diversion programs.

10. Any pet surrendered by the owner to an Animal Control Officer and transported to the COUNTY shelter shall incur prevailing owner surrender charges. Such fees shall be collected from the owner and conveyed to the COUNTY, or be charged directly to the CITY at the established stray animal rate. CITY Animal Control Officers shall refer constituents requesting to surrender their animal to COUNTY for a diversion consultation. CITY shall not accept owner surrenders in the field prior to the constituent consulting the COUNTY.

11. Wildlife: COUNTY and CITY Animal Control Officers will work with constituents to ensure public safety while maintaining wildlife in the wild. COUNTY and CITY Animal Control Officers will triage wildlife reports to determine the appropriate response. Wildlife will be impounded if there is a public safety hazard, if the animal’s welfare is at risk, if the animal is injured or orphaned, if the animal has been involved in a bite, or involved in an animal cruelty investigation.

12. Vicious and Potentially Dangerous Dogs: Any dog declared or determined to be vicious or potentially dangerous and in custody of COUNTY either under impoundment or quarantine shall be deemed unsuitable for adoption and shall not be released except as required by State law or at the Director of Animal Services’ discretion.

13. Incoming Animal Identification: Incoming animals shall be checked immediately for collar tags and scanned for microchip by qualified Shelter staff within one (1) hour of arrival to the Shelter. Shelter staff shall make all attempts to notify owners within twenty-four (24) hours of an Impounded Animal delivered by CITY to COUNTY. Animal Control Officers shall attempt to return animals in the field prior to delivering the impounded animal to the shelter. Animal Control Officers shall scan animals in the field for microchips, call phone numbers on tags or research license numbers in an effort to reunite animals in the field.

14. Incoming Animal Examinations/Assessments: A cursory exam of an animal shall be performed within twelve (12) hours, except during Limited Service Hours when the examination will be performed within twenty-four (24) hours. Incoming animal assessment shall include the following:
a. A physical examination to determine if a medical condition exists which requires a veterinarian’s attention
b. Routine vaccinations and de-worming, as needed
c. External parasite treatment, as needed
d. Document the animal’s incoming weight
e. Scan for microchip identification
f. Establish unique identifier for the animal
g. Document any identifying features or abnormalities. The COUNTY shall properly document on an animal-by-animal basis that an examination/assessment has been performed.

15. Enforcement: Enforce all relevant provisions of CITY’s municipal code and State law as may be applicable to animals housed, kept or maintained at the Shelter.

16. Adoption: Animals identified as being available for adoption shall be up for adoption in the shelter or off-site location, or by posting online.

17. Spay and Neuter: COUNTY shall ensure that all dogs and cats adopted from the Shelter are spayed or neutered, or that adequate provisions are made for such spaying or neutering if COUNTY transfers any animals, or if an adopted animal is unable to receive spaying or neutering due to a medical condition.

In accordance with California Food and Agricultural (“F&A”) Code Sections 30503 and 31751.3, if veterinarian employed at the Shelter certifies that a dog or cat is too sick or injured to be spayed or neutered, the COUNTY shall collect a spay/neuter deposit from the adopter or purchaser and this deposit shall be deposited into a segregated fund maintained by the COUNTY. The deposit shall be fully refunded to the adopter or purchaser if proof of sterility is provided within thirty (30) business days from the date of surgery, at which the deposit is forfeited in accordance with F&A Code Sections 30503 and 31751.3. Spay and neuter deposits shall only be used by the COUNTY for canine and feline spay and neuter programs.

18. Microchipping: In accordance with California Food and Agricultural (“F&A”) Code Sections 31108.3 and 31752.1, COUNTY shall ensure that all dogs and cats being reclaimed, adopted, or transferred to a new owner are microchipped with current information prior to leaving the shelter.

19. Community Adoption Partners: COUNTY shall comply with F&A Code Sections 31108 and 31752 that provide that any stray dog or cat that is impounded “shall, prior to the euthanasia of that animal be released to a nonprofit, as defined in Section 501(c)(3) of the Internal Revenue Code, animal rescue or adoption organization if requested by the organization prior to the scheduled euthanasia of that animal.

The public or private shelter may enter into cooperative agreements with any animal organization or adoption organization. The public or private shelter or organization must be approved by COUNTY prior to the transfer of any animals. In addition to any required spay or neuter deposit, the public or private shelter, at its discretion, may assess a fee, not to exceed the standard adoption fee, for animals adopted or released.”

20. Foster Care Placement: Certain animals may be placed in COUNTY’s foster care placement program so to improve animal care, give certain animals a better chance of adoption, and lift the spirits and morale of staff and volunteers.

21. Community Cat Program (CCP): COUNTY shall determine a cat’s eligibility for the CCP. If it is determined that a cat is eligible, the cat will be spayed/neutered, vaccinated, and eartipped. Once cat has recovered, the cat will be returned to place of origin.

22. Drug Enforcement Agency (DEA): COUNTY shall comply with all Drug Enforcement Agency (DEA) regulations regarding storage, record-keeping, inventory, use, and disposal of all controlled substances.

23. Staffing and Volunteers: COUNTY shall recruit and supervise all necessary personnel for the office, kennel, veterinary and other areas of the Shelter. Staffing shall include any and all full or part-time personnel and shall include the recruitment, supervision and assignment of volunteers in suitable Shelterrelated activities. Personnel employed at the Shelter in the performance of Shelter-related activities shall be designated as COUNTY employees and any and all volunteers engaged in Shelter activities shall participate in activities designated by COUNTY and shall be under the auspices of COUNTY. Use of

volunteers at the Shelter shall be determined by COUNTY.

24. Missing Animals: COUNTY shall notify an appropriate law enforcement agency immediately of any animal missing from the Shelter that had previously been impounded and/or in protective custody.

25. CITY Access: COUNTY shall provide access of the entire Shelter to the authorized representatives of CITY during Regular Service Hours or at such other times upon written notice.

26. Livestock and Fowl Care: COUNTY shall provide food, care and shelter to livestock and fowl, either at the Shelter or at another location, when such animals cannot be cared for at the Shelter.

Costs of housing any livestock or fowl, regardless of Shelter location shall be charged to the owner of the animal, if known. If the animal’s owner wishes to redeem the animal, the owner shall first pay all applicable fees and charges at the Shelter; except as otherwise required by law, then and only, will the COUNTY authorize release of the animal. COUNTY shall notify CITY in writing when said expenses reach the amount of $5,000 or greater per incident. Such expenses shall not exceed the amount of $25,000 per incident unless authorized in writing by CITY.

27. Animal Disposal: COUNTY shall prohibit any animal whether dead or alive, which has been impounded, in custody, or in quarantine at the Shelter to be given away, disposed of, traded, sold or in any manner given over to another person, organization or entity for experimentation, regardless of purpose. COUNTY shall be responsible for the disposal of animal remains in its custody or control, subject to applicable State laws.

28. LICENSE FEES (Section 2 of Riverside County Ordinance 630): Licenses shall be issued upon payment of the license fees at the same rate as established in Section 2 of Riverside County Ordinance No. 630 and are subject to change as amended by COUNTY’s Board of Supervisors, from time to time.

29. RABIES VACCINATION CERTIFICATE DATA: Rabies vaccination certificates shall be collected from area veterinarians and downloaded into COUNTY’s database after the data has been scrubbed of inconsistencies. Reminders of licensing requirements shall be automatically generated and mailed to dog owners. Those owners who fail to comply may be subsequently issued administrative citations.

Remittance options include the web licensing portal on COUNTY’s website, www.rcdas.org. COUNTY shall verify dog license status when responding to requests for service or when responding to complaints.

COUNTY shall also provide an automated or manual verification system whereby owners can verify the status of their animal’s license by telephone.

30. COLLECTION OF LICENSE FEES: CITY authorizes COUNTY to issue and collect the fees for canine licenses and retain $11.92 per license on any and all canine license revenue generated by CITY residents during the term of the Agreement. All fees collected for canine licenses shall be accounted for by the COUNTY on a monthly basis and the COUNTY shall remit to CITY the net amount of license fees collected for each month. For purposes of this Agreement, the net amount of license fees shall mean the total amount of license fees collected in a month less the total of $11.92 per each canine license issued and shall be separate and apart from the monthly compensation rate due and payable by the CITY as required in Section 3. Compensation. CITY shall be responsible for a one-time conversion fee for new data entered into COUNTY’s licensing database.

D. COMPENSATION

1. Compensation for Animal Shelter Services: Additional compensation for Animal Shelter Services may be required. Additional costs for large animal sheltering are incurred at $21 per animal, per day for

horses and cattle, and $12.60 per animal, per day for swine, goats and sheep in accordance with COUNTY’s Animal Control Ordinances and shall be billed based on actual sheltering on a monthly basis.

2. Impound/Quarantine Fees: CITY shall be responsible for all costs associated with any and all animals seized within the CITY boundaries and brought to COUNTY which are held in Shelter, including facilities that have agreements with the COUNTY to provide additional shelter services under the supervision of the COUNTY. This includes, but is not limited to, animals held in association with any criminal prosecution of animal abuse and welfare cases, animals being held as evidence in a court filing, or rabies quarantine. The COUNTY agrees to assist the CITY in seeking reimbursement from the owner by providing invoices for all services provided. All services provided to each animal involved shall be charged as of the current date including but not limited to the following: IMP 1-collection; State Fine 1- collection, Board collection- all fees due; QT Board collection-if applicable; Rabies Vaccination collection- if applicable; DA2PPV collection; Bordatella collection; microchip collection; any and all medications provided to each animal; and personnel charges. All fees will be in accordance with the COUNTY’s current fee schedule.

3. Outreach Activities: CITY shall work with COUNTY to promote responsible pet ownership, lost and found animals, mutually agreeable animal welfare programs, Spay/Neuter Services, and through its own social media pages. If requested by CITY, the daily flat rates for vaccination clinics or spay/neuter clinics shall be billed based actual outreach days scheduled at the rates below:
a. Vaccination or Spay/Neuter Clinic: The cost includes staff, vaccinations and microchips, free to constituents with forty (40) animal cap per event. The clinics are billed on actual use.
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CITY OF CALIMESA
EXHIBIT “C-1”

PAYMENT PROVISIONS
City of Calimesa (“CITY”) shall compensate the County of Riverside (“COUNTY”) on a monthly basis arrears, with a monthly billing and accounting thereof by COUNTY to CITY those fees as established by the CITY’s Master Fee Schedule, as amended from time to time, and COUNTY’s Board of Supervisors’ fee schedule, as amended from time to time; relative to the services to be performed under this Agreement as follows:

Field and Shelter Services Estimate
Service Quantity Cost Annually Monthly
Estimated /On-Call
Usage* 48 $178.66/hour $8,575.68 $714.64
Animal Sheltering** 263 $35.81/day $9,418.03 $784.84
Wildlife Impounds ** 4 $144.90/per $579.60 $48.30
Deceased Animal Pick-Up
and Disposal**
13 $73.50/per $955.50 $79.63
O&M** 44 $10.96/impound $482.24 $40.19
License Processing*** 132 $11.92 per license $1,573.44 $131.12 Total Estimated Cost** $21,584.49/FY $1,798.72/month
* Actual cost may vary based on on-call usage.
* Overtime/stand-by field services $178.66 per hour (minimum of two (2) hours per call, with a two (2) hour charge per each call).
** Cost will fluctuate based on actual overtime, wildlife calls and deceased animal pickups. Optional Services are not included in the total.
**Rates are subject to change as adopted by the Board of Supervisors, as specified in Section 3 of this Agreement.
***License processing cost may vary based on number of licenses sold. COUNTY shall retain $11.92 for each license sold, and remaining balance of license will be credited back to the CITY on a monthly basis.

Sheltering:

Animal Sheltering costs at the San Jacinto Valley Animal Campus is $35.81 per kenneling day, and it would be billed based on actual usage. COUNTY shall provide CITY with a monthly invoice that includes actual impound statistics. The invoice will detail the number of animals impounded and the total number of kenneling days, plus all other applicable fees.

Operational and Maintenance (O&M):

O&M is charged at $10.96 per stray dog or cat impound.

Livestock and Other Impound Fees:

Large Animal Sheltering @ $21/animal (horses, ponies, cattle) per day of sheltering (additional cost billed on actual use)

Large Animal Sheltering @ $12.60/animal (swine, goats, sheep) per day of sheltering (additional cost billed on actual use)
Wildlife impound fee: $144.90 per impound
Deceased animal pickup fee: $73.50 per animal
Optional Services
Daily flat rates for shot clinics and/or spay and neuter bus services will be billed based on actual outreach days scheduled. Compensation accounts for full staff time to provide service for one day. The maximum time possible will be afforded for actual outreach activity; however actual outreach activity time will be reduced by travel and preparation time the day of the event.

Shot Clinic or Spay and Neuter Bus Services:
$3,000 per event flat rate billed actual use**
(The cost to provide 3 clinic services staff and one veterinarian for 9 hours, to be billed based on actual usage as requested by City.)

City Council Meeting
Agenda Report
Agenda Item No. 7
SUBJECT: CONSULTING AGREEMENT WITH CIVISOCIAL
MEETING DATE: November 4, 2024
PREPARED BY: Will Kolbow, City Manager
RECOMMENDATION: That the City Council:

1. Approve the Agreement with Disrupter Media Consultants, Inc. (DBA CiviSocial) and authorize the Mayor to execute the contract on behalf of the City.

2. Adopt Resolution 2024-61, a Resolution of the City Council of the City of Calimesa, California, Amending the FY 2024-25 Budget to Include an Adjustment in the City Manager Professional Services Account in the General Fund.

BACKGROUND: In October 2020, the City Council adopted the City’s Strategic Plan, which identified 19 goals within five target areas. Under the Public Engagement target, a goal was established to implement and expand upon social media and technology. This effort has been led by our Deputy City Clerk/Executive Assistant. The prevalence of social media has only increased in the four years since the Strategic Plan was adopted. This has led to both an increased demand for communication, as well as a troubling increase in misinformation which has led to misunderstandings. In order for the City to further its goals with community support, we need to increase our engagement and tell our story more fully so the public can see all of the great things we are doing and combat the misinformation.

DISCUSSION: Recently, staff has become aware of a new company called CiviSocial, offering a one-of-a-kind service to optimize the social media presence of local governments. The company was founded by Sam Toles, the former Chief Content Officer of Bleacher Report/House of Highlights, General Manager of Vimeo, Head of Digital for MGM Studios and most recently launched a new channel with some of YouTube superstar Mr. Beast’s team. He is also a former City Councilmember for the City of Cathedral City, so he has unique insight into local government.

CiviSocial focuses on identifying existing staff who already have a good understanding of various social media platforms and want to help tell our story, then empowering those individuals to enhance the City’s brand, thereby increasing our reach to engage our residents more fully.

Staff met with Mr. Toles to discuss CiviSocial’s services to determine if they were a good fit for the City of Calimesa. As part of this evaluation, staff participated in a survey to see who might be interested in participating in the program and who think we have a great story to tell, but too few people know about it. We were pleasantly surprised to learn that a majority of our City team wants

to participate in the program and help us engage our residents in the course of their day-to-day work, through both existing social media channels as well as those we have not tapped into yet.

The objective is to develop a stronger communications strategy that captures the city's voice, engages the community, and showcases the city's unique attributes. As more fully described in Attachment B, the services will consist of a kickoff meeting with the City Manager and Deputy City Clerk to explore the current status and strategy of the City’s social media. This will then be followed by five days of in-person, hands-on engagement at City Hall, which will consist of meetings with various stakeholders, development of an overall voice and story map for the City’s social media, tools and tactics to enhance social media effectiveness, training sessions on best practices, identifying potential content creators within the community and City staff, and training on creating effective and compelling social media content. After the in-person engagement, CiviSocial will deliver a presentation that will outline our new social media engagement strategy.

Based on this positive feedback, staff believes that CiviSocial will help us achieve our Strategic Plan goal of expanding our social media reach. We are excited to learn the tools necessary to tell our story and pleased that it will be a team approach. Therefore, staff recommends that the City Council approve the Agreement with CiviSocial and approve the one-time budget amendment to fund the services in the amount of $16,500, which consists of $13,500 for the services and $3,000 for consultant travel.

FISCAL IMPACT: With the approval of the Resolution to amend the Fiscal Year 2024-25 budget, sufficient appropriations in the amount of $16,500 will be available in the General Fund, City Manager’s Department budget.

ATTACHMENTS:

Attachment A: CiviSocial Consulting Agreement
Attachment B: Procurement Proposal for Calimesa Social Media Optimization Program Attachment C: Resolution 2024-61

CiviSocial Consulting Agreement
I. THE PARTIES. This Consulting Agreement ("Agreement") is made effective as of November 4, 2024, by and between:

Consultant: Disrupter Media Consultants, Inc (DBA CiviSocial) with a mailing address of 2408 NE 26th Terrace, Fort Lauderdale, FL 33305 ("Consultant"), and Client: The City of Calimesa with a mailing address of 908 Park Avenue, Calimesa, CA 92320 ("Client").

II. SERVICES. Consultant shall provide the services outlined on Schedule I (“Services”).

III. TERM. The Services shall commence on November 11, 2024 (unless another date is mutually agreed upon), and end at the completion of Services performed. The in-person portion of the engagement shall be scheduled for a period of 5 working days between November 11, 2024 and January 31, 2025, on dates mutually agreeable between the Consultant and Client.

IV. COMPENSATION. City shall compensate Consultant for the Services provided a flatfee maximum amount of Thirteen Thousand Five Hundred Dollars ($13,500).

V. PAYMENT METHOD. Consultant shall submit to City an invoice for the Services performed pursuant to this Agreement. City shall pay Consultant the amount set forth in section IV within 30-days of receiving all the “Deliverables” as outlined in Schedule I.

VI. RETAINER. The Client is: (check one)
☐ - Required to pay a Retainer. The Client is required to pay a Retainer in the amount of $__________ to the Consultant as an advance on future Services to be provided ("Retainer"). The Retainer is: (check one)
☐ - Refundable.
☐ - Non-Refundable.
☒ - Not required to pay a Retainer. The Client is not required to pay a Retainer before the Consultant is able to provide Services.

VII. CONTINGENCY. As part of the Consultant’s Pay: (check one) ☐ - There SHALL be a contingency-fee arrangement in accordance with: (check applicable)
☐ - ____% of _______________________________________________. ☐ - flat fee of $__________ for the following: _______________________ __________________________________________________________. ☒ - There SHALL NOT be a contingency-fee arrangement as part of this Agreement.

Attachment 7A

VIII. TRAVEL EXPENSES. Client shall reimburse Consultant an agreed upon amount for travel expenses which shall be payable as a one-time, non-refundable payment of Three Thousand Dollars ($3,000). In no event shall the amount exceed Three Thousand Dollars, unless otherwise approved in writing by Client in advance of Consultant procuring such travel expenses. The Client shall not pay or reimburse Consultant for any additional expenses during the engagement. The Client agrees to pay the Consultant’s Travel Expenses within forty-five (45) days of execution of this agreement.

IX. DISPUTES. If any dispute arises under this Agreement, the Consultant and the Client shall negotiate in good faith to settle such dispute. If the parties cannot resolve such disputes themselves, then either party may submit the dispute to mediation by a mediator approved by both parties, which each party sharing equally the costs of the mediator. If the parties cannot agree with any mediator or if either party does not wish to abide by any decision of the mediator, they shall submit the dispute to arbitration by any mutually acceptable arbitrator, or the American Arbitration Association (AAA). The costs of the arbitration proceeding shall be paid by both parties equally sharing the costs of arbitration.

Notwithstanding, the parties agree that the arbitrator may apportion costs equally or in accordance with any finding of fault or lack of good faith of either party. If either party does not wish to abide by any decision of the arbitrator, they shall submit the dispute to litigation. The jurisdiction for any dispute shall be administered in the County of Riverside, California.

X. LEGAL NOTICE. All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in-person or deposited in the United States Postal Service via Certified Mail with return receipt to the addresses set forth above.

XI. RETURN OF RECORDS. Upon termination of this Agreement, the Consultant shall deliver all records, notes, and data of any nature that are in the Consultant's possession or under the Consultant's control and that are of the Client's property or relate to Client's business.

XII. WAIVER OF CONTRACTUAL RIGHT. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.

XIII. INDEPENDENT CONTRACTOR STATUS. The Consultant, under the code of the Internal Revenue (IRS), is an independent contractor and neither the Consultant's employees or contract personnel are, or shall be deemed, the Client's employees. In its capacity as an independent contractor, the Consultant agrees and represents:
a.) Consultant has the right to perform Services for others during the term of this Agreement;
b.) Consultant has the sole right to control and direct the means, manner, and method by which the Services required under this Agreement will be performed; Consultant shall select the routes taken, starting and ending times, days of work, and order the work that performed;

c.) Consultant has the right to hire assistant(s) as subcontractors or to use employees to provide the Services under this Agreement. d.) Neither Consultant nor the Consultant's employees or personnel shall be required to wear any uniforms provided by the Client;
e.) The Services required by this Agreement shall be performed by the Consultant, Consultant's employees or personnel, and the Client will not hire, supervise, or pay assistants to help the Consultant;
f.) Neither the Consultant nor the Consultant's employees or personnel shall receive any training from the Client for the professional skills necessary to perform the Services required by this Agreement; and
g.) Neither the Consultant nor Consultant's employees or personnel shall be required by the Client to devote full-time to the performance of the Services required by this Agreement.

XIV. STATE AND FEDERAL LICENSES. The Consultant represents and warrants that all employees and personnel associated shall comply with federal, state, and local laws requiring any required licenses, permits, and certificates necessary to perform the Services under this Agreement.

XV. PAYMENT OF TAXES. Under this Agreement, the Client shall not be responsible for:
a.) Withholding FICA, Medicare, Social Security, or any other Federal or State withholding taxes from the Consultant's payments to employees or personnel or make payments on behalf of the Consultant;
b.) Making Federal and/or State unemployment compensation contributions on the Consultant's behalf; and
c.) Making payments of taxes incurred while performing the Services under this Agreement, including all applicable income taxes and, if the Consultant is not a business entity, all applicable self-employment taxes. Upon demand, the Consultant shall provide the Client with proof that such payments have been made.

XVI. EMPLOYEES’ COMPENSATION. The Consultant shall be solely responsible for the following:
a.) Employee Benefits. The Consultant understands and agrees that they are solely responsible and shall be liable to all benefits that are provided to their employees, including, but not limited to, retirement plans, health insurance, vacation time-off, sick pay, personal leave, or any other benefit provided. b.) Unemployment Compensation. The Consultant shall be solely responsible for the unemployment compensation payments on behalf of their employees and personnel. The Consultant shall not be entitled to unemployment compensation with the Services performed under this Agreement.
c.) Workers’ Compensation. The Consultant shall be responsible for providing all workers' compensation insurance on behalf of their employees. If the Consultant hires employees to perform any work under this Agreement, the Consultant agrees to grant workers' compensation coverage to the extent required by law. Upon

request by the Client, the Consultant must provide certificates proving workers' compensation insurance at any time during the performance of the Services.

XVII. INDEMNIFICATION. Consultant shall release, defend, indemnify, and hold harmless Client and its officers, agents, and employees from all suits, actions, or claims of any character, name, or description including reasonable Consultant fees, brought on account of any injuries or damage, or loss (real or alleged) received or sustained by any person, persons, or property, arising out of Services provided by Consultant under this Agreement or Consultant's failure to perform or comply with any requirements of this Agreement including, but not limited to any claims for personal injury, property damage, or infringement of copyright, patent, or other proprietary rights. Client reserves the right to retain whatever funds which would be due to the Consultant under this Agreement until such suits, action or actions, claim or claims for injuries or damages as aforesaid shall have been settled and satisfactory evidence to that effect furnished.

XVIII. INSURANCE. Consultant shall procure and maintain for the duration of the Agreement insurance in the form and amount set forth in Schedule II, against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Services hereunder by Consultant, its agents, representatives, or employees. The Client’s risk manager may, in writing, amend and/or waive the insurance provisions set forth in Schedule II in their discretion. In such case, the Consultant shall comply with the insurance provisions required by the Client’s Risk Manager.

XIX. CONFIDENTIALITY & PROPRIETARY INFORMATION. The Consultant acknowledges that it may be necessary for the Client to disclose certain confidential and proprietary information to the Consultant in order for the Consultant to perform their duties under this Agreement. The Consultant will not disclose or use, either during or after the term of this Agreement, any proprietary or confidential information of the Client without the Client's prior written permission except to the extent necessary to perform the Services on the Client's behalf.

XX. ASSIGNMENT AND DELEGATION. The Consultant may NOT assign rights and may delegate duties under this Agreement to other individuals or entities acting as a subcontractor ("Subcontractor").

XXI. GOVERNING LAW. This Agreement shall be governed under the laws in the State of California.

XXII. SEVERABILITY. This Agreement shall remain in effect in the event a section or provision is unenforceable or invalid. All remaining sections and provisions shall be deemed legally binding unless a court administers that any such provision or section is invalid or unenforceable, thus, limiting the effect of another provision or section. In such case, the affected provision or section shall be enforced as so limited.

XXIII. ADDITIONAL TERMS & CONDITIONS. The Intellectual Property of all materials provided under Consultant’s Services shall remain the sole property of Consultant.

Consultant hereby grants Client a free, perpetual license to Client to utilize Consultant’s

Intellectual Property in its ongoing civic operations. It is accepted and agreed that Consultants Intellectual Property (such as training materials) shall not be shared outside of the Client’s organization without prior written consent from Consultant.

Notwithstanding, Consultant acknowledges and agrees that Client is a public agency and is subject to the California Public Records Act (“Act”) and that some or all of Client’s Intellectual Property (“Materials”) provided by Consultant to Client may be disclosable thereunder. In the event a public records act request for Client’s Materials is received, Client shall use its best efforts to provide Consultant with written or verbal notice of such request, prior to compliance. However, nothing herein shall prevent Client from complying with the requirements of the Act. The provisions of this section shall survive the expiration or termination of this Agreement.

XXIV. ENTIRE AGREEMENT. This Agreement, along with any attachments or addendums, represents the entire agreement between the parties. Therefore, this Agreement supersedes any prior agreements, promises, conditions, or understandings between the Client and Consultant. This Agreement may be modified or amended if the amendment is made in writing and is signed by both parties.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates written hereunder.

Consultant's Signature: ___________________________ Date: October 28, 2024 G Samuel Toles, Founder
Client's Signature: ___________________________ Date: _________________ Print Name ___________________________

Schedule I: Services
The engagement will include +/- 2-weeks of preparatory pre-engagement work including an all-staff survey, a kick-off meeting with the City Manager and Communications team, and other fact-finding activities surrounding the city’s status and strategy across social media.

This will be followed by 5-working days of in-person, hands-on engagement in Calimesa which includes:
• Meetings with stakeholders, staff, and residents to gather insights and perspectives;
• Development of an overall voice and story map for the city's social media; • Providing guidance on tools and tactics to enhance social media effectiveness; • Training sessions on best practices and innovative content strategies; • Identifying potential content creators within the community and city staff; • Training on creating effective and compelling social media content; Deliverables:

At the conclusion of the 5-day in-person engagement, we will deliver a presentation with the following elements:
• The “Voice” of Your New Communications Strategy:
o Development of a unified and distinctive voice that reflects the city's identity.
• Identity and Story Plan for Formerly Hidden Creators:
o Crafting stories that highlight previously unrecognized contributors and creators.
• Process Outline:
o Recommended staffing assignments and estimated time commitments o Plan on Calendar, Cadence, and Clearance (and risk mitigation) o A template schedule outlining content creation, approval processes, and recommended posting and platform cadence.
• Overall Content Strategy and Recommendations on Implementation:
o Detailed content strategy including types of content, frequency, and themes.
o Practical recommendations for implementing the strategy effectively. • Platform-Specific Recommendations and Strategies:
o Tailored strategies for each social media platform used by Calimesa. o Best practices for maximizing engagement on each platform. • Recommended Engagement and Community Management Tactics:
o Strategies to foster community interaction and engagement. o Recommendations for fostering a positive online community. • Adaptability Guidelines Coupled with Risk Mitigation Tactics:
o Test-and-Learn strategy of rapid adaptation in response to feedback and analytics
o Risk mitigation plan; guardrails for newly empowered creators

• Tools recommendations for effective and efficient creation and distribution of content:
o List of available and recommended tools to optimize social media content creation
o List of of available and recommended tools to optimize social media content distribution
o User training on select tools through video links (coupled with prior handson training)

SCHEDULE II: INSURANCE REQUIREMENTS
A. Minimum Scope and Limits of Insurance. Consultant shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:

1. Commercial General Liability Insurance with a minimum limit of $1,000,000.00 per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of $1,000,000.00 per project or location. If Consultant is a limited liability company, the commercial general liability coverage shall be amended so that Consultant and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.

2. Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of $500,000.00 per accident for bodily injury and property damage. If Consultant does not use any owned, non-owned or hired vehicles in the performance of Services under this Agreement, Consultant shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under subparagraph A.1) of this Section.

3. Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of $1,000,000.00 per accident for bodily injury or disease. Consultant confirms it will have no employees while performing Services under this Agreement, and thus a workers’ compensation policy is not required, but Consultant shall execute a declaration that it has no employees.

B. Acceptability of Insurers. The insurance policies required under this Section shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide. Self insurance shall not be considered to comply with the insurance requirements under this Section.

C. Additional Insured. The commercial general and automobile liability policies shall contain an endorsement naming City and its elected and appointed officials, officers, employees, agents and volunteers as additional insureds. This provision shall also apply to any excess/umbrella liability policies.

D. Primary and Non-Contributing. The insurance policies required under this Section shall apply on a primary non-contributing basis in relation to any other insurance or selfinsurance available to City. Any insurance or self-insurance maintained by City, its elected and appointed officials, officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

E. Consultant’s Waiver of Subrogation. The insurance policies required under this Section shall not prohibit Consultant and Consultant’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against City.

F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

G. Cancellations or Modifications to Coverage. Consultant shall not cancel, reduce or otherwise modify the insurance policies required by this Section during the term of this Agreement. The commercial general and automobile liability policies required under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail 30 days’ prior written notice to City. If any insurance policy required under this Section is canceled or reduced in coverage or limits, Consultant shall, within two Business Days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

H. City Remedy for Noncompliance. If Consultant does not maintain the policies of insurance required under this Section in full force and effect during the term of this Agreement, or in the event any of Consultant’s policies do not comply with the requirements under this Section, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Consultant’s expense, the premium thereon. Consultant shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Consultant.

I. Evidence of Insurance. Prior to the performance of Services under this Agreement, Consultant shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section. The endorsements are subject to City’s approval. Consultant may provide complete, certified copies of all required insurance policies to City. Consultant shall maintain current endorsements on file with City’s Risk Manager. Consultant shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall furnish such proof at least two weeks prior to the expiration of the coverages.

J. Indemnity Requirements not Limiting. Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duty to indemnify City under Section 8 of this Agreement.

K. Subcontractor Insurance Requirements. Consultant shall require each of its subcontractors, if any, that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of these provisions.

Procurement Proposal for Calimesa Social Media Optimization Program Prepared by:

CiviSocial (a Division of Disrupter Media Consultants, Inc) 2408 NE 26th Terrace, Fort Lauderdale, FL 33305
Sam Toles, Founder and CEO
(323) 401 2587 (direct) – [email protected]
Prepared for:

City of Calimesa
908 Park Avenue
Calimesa, CA 92320
Attention: Will Kolbow, City Manager
October 21, 2024

1. Executive Summary
CiviSocial is pleased to submit this proposal to Calimesa for the purpose of enhancement of its community relations through optimizing social media storytelling. Our objective is to develop a stronger communications strategy that captures the city's voice, engages the community, and showcases the city's unique attributes. We will conduct a comprehensive 5-day in-person engagement to collaborate with stakeholders, sta], and residents, ensuring a well-rounded and e]ective strategy.

2. Scope of Services

1. The engagement will include +/- 2-weeks of preparatory pre-engagement work including an all-sta] survey, a kick-o] meeting with the City Manager and Communications team, and other fact-finding activities surrounding the city’s current status and strategy across social media.

2. This will be followed by 5-days of in-person, hands-on engagement in Calimesa which includes:

Attachment 7B

- Meetings with stakeholders, sta], and residents to gather insights and perspectives. - Development of an overall voice and story map for the city's social media. - Providing tools and tactics to enhance social media e]ectiveness. - Training sessions on best practices and innovative content strategies. - Identifying potential content creators within the community and city sta]. - Training on creating e]ective and compelling social media content.

3. Deliverables:

At the conclusion of the in-person engagement, we will deliver a presentation with the following elements:

1. The “Voice” of Your New Communications Strategy:
- Development of a unified and distinctive voice that reflects the city's identity.

2. Identity and Story Plan for Formerly Hidden Creators:
- Crafting stories that highlight previously unrecognized contributors and creators.

3. Process Outline:
- Recommended sta]ing assignments and estimated time commitments - Plan on Calendar, Cadence, and Clearance (and risk mitigation) - A template schedule outlining content creation, approval processes, and recommended posting and platform cadence.

4. Overall Content Strategy and Recommendations on Implementation:
- Detailed content strategy including types of content, frequency, and themes. - Practical recommendations for implementing the strategy e]ectively.

5. Platform-Specific Recommendations and Strategies:
- Tailored strategies for each social media platform used by Cathedral City. - Best practices for maximizing engagement on each platform.

6. Recommended Engagement and Community Management Tactics:
- Strategies to foster community interaction and engagement. - Recommendations for fostering a positive online community.

7. Adaptability Guidelines Coupled with Risk Mitigation Tactics:
- Test-and-Learn strategy of rapid adaptation in response to feedback and analytics - Risk mitigation plan; guardrails for newly empowered creators

8. Tools recommendations for e]ective and e]icient creation and distribution of content:
- List of available and recommended tools to optimize social media content creation - List of available and recommended tools to optimize social media content distribution - User training on select tools through video links (coupled with prior hands-on training)

4. Project Timeline
Phase Duration Key Activities
Pre-Engagement +/- 2-weeks Survey and onboarding
Engagement 5 Working Days Consulting and Training
Deliverables +/- 2 working days Creation of final deliverables

5. Fee Structure
The total fee for the proposed services is $16,500 which is broken down as follows:

Service Fee
Pre-engagement Included
Engagement and Deliverables $13,500 (inclusive of 10% discount) Travel reimbursement (flat) $3,000

6. Payment Schedule
Milestone Payment due
At time of scheduling engagement $3,000 (21 days from confirmation) Upon receipt of deliverables $13,500 (net 30 upon completion)

7. Conclusion
CiviSocial is committed to partnering with Calimesa in this e]ort to build deeper community connection through a better social media playbook. Our comprehensive approach, combining strategic development with hands-on training and implementation,

will lead to a more dynamic, positive and engaging social media presence for the city. We look forward to the opportunity to collaborate and drive impactful results for Calimesa.

For any questions or further discussion, please contact:

Sam Toles
(323) 401 2587
[email protected]
Thank you for considering our proposal.

Sincerely,
Sam Toles
Founder, CiviSocial

RESOLUTION 2024-61

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CALIMESA, CALIFORNIA, AMENDING THE FY 2024-25 BUDGET

TO INCLUDE AN ADJUSTMENT IN THE CITY MANAGER

PROFESSIONAL SERVICES ACCOUNT IN THE GENERAL FUND
WHEREAS, the City Council identified a strategic goal of implementing and expanding the City’s social media platform; and
WHEREAS, the need to provide information and tell the City’s story has increased in the four years since the City’s Strategic Plan was adopted; and WHEREAS, CiviSocial is a new service that will empower City staff to tell our story on existing and new social medial platforms; and
WHEREAS, the service was not available at the time of budget adoption and the need to combat misinformation cannot wait until the next budget cycle.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIMESA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:

The Fiscal Year 2024-25 General Fund Budget is hereby amended as follows:
• Increase appropriations in account 01-1200-7210 by $16,500.

PASSED, APPROVED, and ADOPTED this 4
th day of November 2024.
_____________________________________

WILLIAM DAVIS, MAYOR
ATTEST:
_________________________________

DARLENE GERDES, CITY CLERK
Attachment 7C

City Council Meeting
Agenda Report
Agenda Item No. 8
SUBJECT: HOME (HOME INVESTMENT PARTNERSHIPS PROGRAM)

PROGRAM
MEETING DATE: November 4, 2024
PREPARED BY: Will Kolbow, City Manager
Celeste Reid, Finance Director
Kelly Lucia, Planning Director
RECOMMENDATION: That the City Council direct staff as to the use of the HOME Program funds or support staff recommendation to transition the HOME funds to Tenant Based Rental Assistance Program for use throughout the County of Riverside.

BACKGROUND: The City of Calimesa received State HOME grant awards in 2007, 2012 and 2015 for the HOME program to facilitate an owner-occupied rehabilitation program. This program has provided loans to Calimesa residents with income-eligible households for home rehabilitations. The loan proceeds were used for home rehabilitations that included upgrades for roofs, electrical and plumbing systems, carbon monoxide detectors, ADA improvements, and energy efficient measures.

As of September 30, 2024, the fund has approximately $352,000 in cash position and outstanding loans due to be repaid of $551,586.

Michael Baker International managed the loan program for the City of Calimesa with respect to advertising and communication of the program, income eligibility verification, the project management and documentation of bidding construction contracts, building inspections and rehabilitations. The consultant informed the former City Manager that Micheal Baker International will no longer provide services in this capacity for the facilitation and management of the loan rehabilitation programs for the City of Calimesa. Consideration has been given to alternatives and the impacts of managing the program without the expertise of Michael Baker International. The discussion below provides for a broad overview of the HOME program options for consideration.

The programs are summarized, but additional information may be provided as requested by City Council.

DISCUSSION: City staff has contacted the HOME representatives from the State of California Grants division and the following HOME programs are available for consideration:
• Owner Occupied Rehabilitation Program (current program) – Loan or Grant • First-Time Homebuyer (FTHB) Program
• Tenant Based Rental Program

Owner-Occupied Rehabilitation Program
To maintain the program and provide a grant or loan for home rehabilitation, the City would utilize staff and a building inspector contractor. The average time frame to manage the program for one application may range from 80 to 160 hours of staff and consultant hours. The Owner-Occupied Rehabilitation program would require significant time dedicated to income verification, the expertise of a certified building inspector, and a lengthy selection process of construction contractors. In addition, the home rehabilitation improvements are mandated and predetermined by compliance regulations so the most crucial and code compliant elements including roof repair, and other structural requirements will be a priority over what is the homeowner would prefer to have completed. This program requires the home applicants reside in a home that has been deemed to be substandard or have code violations. This program is not a home improvement program.

Applicant must meet the requirements of this program which include:
• Must be owner-occupied
• Must be primary residence
• Must start as “substandard” – Health and Safety and/or Code Violations and must be made into Standard
• Limits General Property Improvements to 15% of project costs • HOME Test for Reconstruction approval required
The program does provide for administrative overhead reimbursement of approximately 19% of grant or loan balances to the City of Calimesa. However, if the grant or loan is not approved or an applicant decides not to follow through with the grant or loan, there is an impact to the General Fund. The City would not be entitled to receive any administrative cost reimbursement. As a result, there may be a significant outlay of staff time and consultant expenditures as estimated below in the fiscal impact section for staff and building inspectors for which there will be no reimbursement.

This will cause direct and variable amounts from the General Fund.

First Time Homebuyer Program
This program assists first time homebuyers in acquisition only for assistance with down payment and closing cost assistance. Requirements include the loan must cause borrower payment to be within debt-to-income ratio minimums and maximums. The County of Riverside, through the Department of Housing and Workforce Solutions, would be a sub-recipient of funds and would administer the program. At this time, the current available funding resources may impact only one applicant due to the cost of housing in Riverside County. This program inherently limits the impact to fewer participants than the other two options.

Tenant Based Rental Assistance Program
This program support rental subsidies, provides for security deposit assistance, utility deposit assistance and are based on income eligible requirements. To qualify for the program, a participant must document “rent reasonableness”, and there must be a Housing Quality Standards inspection of the unit cleared by a certified inspector, income eligibility must be referenced to adjusted gross income and a participant’s income must be certified annually. The County of Riverside, through the

Housing Authority, would be a sub-recipient of funds and would administer the program. The City Council has the option to restrict the eligible participants of the program to residents of Calimesa; however, the Housing Authority has recommended the use of the assistance not be restricted to residences in Calimesa but allowable County-wide. This is to ensure the practical nature of use of the funds as Calimesa is a relatively small community both in population and housing availability and there are facilities and property throughout Riverside County for which these funds may be used.

Staff respectfully recommends the City Council authorize the process to transition the available HOME program funds to assist in the Tenant Based Rental Assistance Program, this program could benefit the highest number of individuals, impact the City of Calimesa and County of Riverside and requires minimal use of staff resources and financial impact to the General Fund. To further the chances of the funds being used in Calimesa, staff would advertise the program on the City’s website and other communication channels. Staff may provide additional information as requested by City Council as needed for further direction.

FISCAL IMPACT: The City of Calimesa will have the following potential financial impacts (as estimated for the respective programs):

Owner Occupied Rehabilitation Program – Estimated costs may range from $10,300 to $19,800 per grant or loan applicant. If the applicants do not quality or follow through with the grant or loan, the costs of administrative expenditures would be provided from the General Fund. If five grants or loans do not qualify for administrative reimbursement, the potential impact to the General Fund could approximate $50,000 to $100,000.

First-Time Homebuyer Program – Estimated staff costs are $5,000 funding to be provided annually from the General Fund.

Tenant Based Rental Assistance Program - Estimated staff costs are $5,000 funding to be provided annually from the General Fund.

City Council Meeting
Agenda Report
Agenda Item No. 9
SUBJECT: CITYWIDE PAVEMENT REHIBILITATION PROJECT,

CONSTRUCTION CONTRACT AWARD
MEETING DATE: November 4th, 2024
PREPARED BY: Will Kolbow, City Manager
Michael Thornton, City Engineer
RECOMMENDATION: That the City Council:

1. Award a contract to Onyx Paving Company, Inc. in the amount of $1,555,000.00 for construction of the citywide pavement rehabilitation project; and

2. Authorize 10% construction contingencies in the amount of $155,500.00 for project change orders and $361,000 for project management, design and inspection services for a total project cost of $2,071,500 and

3. Approve the Plans and Specifications for construction of the citywide pavement rehabilitation project; and

4. Authorize the City Manager to execute minor change orders not exceeding the authorized construction contingencies
BACKGROUND: On March 15, 2021, staff presented the City’s recently completed Pavement Management Program study. In summary, the 41 miles of paved roadways exist inherited from the County when the City incorporated in 1990. During the March 15th meeting, staff indicated that the Pavement Condition Index (PCI) for 312 roadway segments ranged from 40 to 100 with an average

63. Street with PCI greater than 70 were not recommended for any rehabilitation by the PMP consultant. The study indicates that the cost to rehabilitate all of the streets in the City is estimated at more than $7.3 million.

On January 16, 2024, City staff presented Council with a list of potential areas to be incorporated as part of the second phase of the Citywide Pavement Rehabilitation Project. The selected areas are summarized below:
• 2nd Street – From County Line Road to Avenue L
• Fisher Court – From 2nd Street to End
• Alton Court – From 2nd Street to End
• Fremont Street – From County Line Road to Avenue L
• Avenue L – From Fremont Street to Approximately 400 Feet West • Holmes Street - From County Line Road to End
• 4th Street – From County Line Road to Avenue L

• Ponderosa Trail – From Mulberry Lane to Smokeridge Trail • Lone Star Cout – From Sandalwood Drive to End
• Nugget Court – From Sandalwood Drive to End
• Gold Spur Court – From Canyon View Drive to End
• Canyon View Drive – 3rd Street to End
In addition to the pavement work for the streets listed above, the Construction Documents included items for various ADA improvements, e.g., sidewalk, curb ramps, and spandrels, that were either damaged or out of compliance. The Constrution documents also included provisions for the repair of subgrade and pavement on Douglas Street and Avenue L due to trench failure over approximately 250 linear feet of storm drain line installed by Riverside County Flood Control.

The City issued a notice of inviting bids with an Engineer’s Estimate of $2.2 Million. On October 23, 2024, the City received the following six bids for project construction:

Bidder Total Amount
Onyx Paving Company $ 1,555,000.00
Matich Corporation $1,724,525.00
Calmex Engineering, Inc. $1,742,394.19
Vance Corporation $1,794,980.29
Hardy & Harper, Inc. $1,945,000.00
All American Asphalt $2,255,552.20
Bid details are shown on Attachment A. As Shown, Onyx Paving Company bid is the lowest responsive bid. Staff conferred with Onyx references to confirm qualifications. Staff recommends award to Onyx Paving Company.

It should be noted that the Project Management including the design and inspection services portion of the project, totaling $361,000 will be provided by TKE Engineering staff, whom the City contracts with for Engineering staff augmentation.

FISCAL IMPACT: City Council approved the Fiscal Year 2023-24 Budget that included $600,000 of Measure A funding for roadway rehabilitation projects, with an additional $1,122,000 allocation from the General Fund for the Pavement Management Program. Council also allocated a portion of its second tranche of ARPA funding of $350,432 to the Program. Total funding available for street pavement program is approximately $2,072,000, with total project costs of $2,071,500 ATTACHMENTS:

Attachment A: Bid Summary

Bid Schedule A
1 MOBILIZATION/ DEMOBILIZATION 1 LS $266,479.40 $266,479.40 $108,000.00 $108,000.00 $69,920.80 $69,920.80 $237,400.00 $237,400.00 $66,000.00 $66,000.00 $115,549.87 $115,549.87 2 TRAFFIC CONTROL AND SAFETY 1 LS $76,752.00 $76,752.00 $91,000.00 $91,000.00 $108,800.00 $108,800.00 $132,000.00 $132,000.00 $111,000.00 $111,000.00 $76,475.30 $76,475.30 3 STORM WATER POLLUTION PREVENTION PLAN, BEST MANAGEMENT PRACTICE AND NPDES REQUIREMENTS 1 LS $50,385.00 $50,385.00 $41,000.00 $41,000.00 $15,750.00 $15,750.00 $10,400.00 $10,400.00 $11,000.00 $11,000.00 $25,632.48 $25,632.48 4 GRIND (COLD-MILL) EXISTING ASPHALT CONCRETE PAVEMENT (1.5" MINIMUM) 252,278 SF $0.40 $100,911.20 $0.27 $68,115.06 $0.30 $75,683.40 $0.26 $65,592.28 $0.28 $70,637.84 $0.15 $37,841.70 5 GRIND (COLD-MILL) EXISTING ASPHALT CONCRETE PAVEMENT (2" MINIMUM) 71,443 SF $0.40 $28,577.20 $0.39 $27,862.77 $0.40 $28,577.20 $0.34 $24,290.62 $0.33 $23,576.19 $0.35 $25,005.05 6 SAWCUT AND REMOVE EXISTING ASPHALT BASE COURSE, AGGREGATE BASE AND/OR SUBGRADE (5.5" TOTAL SECTION REMOVAL) 106,220 SF $2.15 $228,373.00 $1.57 $166,765.40 $3.00 $318,660.00 $1.40 $148,708.00 $1.11 $117,904.20 $1.45 $154,019.00 7 PULVERIZE EXISTING ASPHALT CONCRETE PAVEMENT (7" TOTAL SECTION) AND REMOVE 3" OF PULVERIZED AC 58,489 SF $1.60 $93,582.40 $1.64 $95,921.96 $1.00 $58,489.00 $1.30 $76,035.70 $1.11 $64,922.79 $1.00 $58,489.00 8 SAWCUT AND REMOVE EXISTING PCC SPANDREL/CROSS GUTTER 5,185 SF $9.45 $48,998.25 $8.30 $43,035.50 $8.30 $43,035.50 $9.20 $47,702.00 $8.00 $41,480.00 $14.86 $77,049.10 9 SAWCUT AND REMOVE EXISTING PCC CURB RAMP 2,520 LF $15.70 $39,564.00 $4.15 $10,458.00 $4.10 $10,332.00 $4.60 $11,592.00 $4.00 $10,080.00 $10.65 $26,838.00 10 SAWCUT AND REMOVE EXISITNG ASPHALT CONCRETE DIKE 726 LF $2.55 $1,851.30 $17.00 $12,342.00 $12.60 $9,147.60 $4.90 $3,557.40 $6.00 $4,356.00 $6.91 $5,016.66 11 SAWCUT AND REMOVE EXISTING PCC DRIVEWAY 430 SF $3.85 $1,655.50 $6.25 $2,687.50 $5.00 $2,150.00 $9.60 $4,128.00 $6.00 $2,580.00 $10.10 $4,343.00 12 SAWCUT AND REMOVE EXISTING PCC SIDEWALK 320 SF $2.60 $832.00 $4.20 $1,344.00 $4.00 $1,280.00 $4.60 $1,472.00 $4.00 $1,280.00 $13.55 $4,336.00 13 REMOVE AND RECONSTRUCT CURB, GUTTER AND UNDERSIDEWALK DRAIN AT 540 SANDALWOOD DRIVE 1 LS $18,009.50 $18,009.50 $8,400.00 $8,400.00 $13,730.00 $13,730.00 $16,000.00 $16,000.00 $11,722.00 $11,722.00 $16,316.22 $16,316.22 14 CONSTRUCT 6" MISCELLANEOUS AGGREGATE BASE OVER 12" COMPACTED NATIVE 1,298 CY $132.00 $171,336.00 $71.00 $92,158.00 $98.00 $127,204.00 $66.00 $85,668.00 $66.00 $85,668.00 $74.38 $96,545.24 15 CONSTRUCT 1.5" MIN. ASHPALT CONCRETE BASE COURSE 1,642 TON $113.90 $187,023.80 $117.00 $192,114.00 $143.00 $234,806.00 $98.00 $160,916.00 $111.00 $182,262.00 $115.01 $188,846.42 16 CONSTRUCT 1.5" MINIMUM ASPHALT CONCRETE OVERLAY 3,098 TON $135.00 $418,230.00 $110.00 $340,780.00 $122.00 $377,956.00 $104.00 $322,192.00 $111.00 $343,878.00 $140.01 $433,750.98 17 CONSTRUCT 2" MINIMUM ASPHALT CONCRETE OVERLAY 951 TON $113.90 $108,318.90 $110.00 $104,610.00 $122.00 $116,022.00 $103.00 $97,953.00 $111.00 $105,561.00 $123.88 $117,809.88 18 CONSTRUCT PCC CURB RAMP PER RIVERSIDE COUNTY STD 403 CASE A 2,520 SF $19.25 $48,510.00 $21.00 $52,920.00 $15.00 $37,800.00 $10.70 $26,964.00 $20.00 $50,400.00 $20.87 $52,592.40 19 CONSTRUCT PCC SPANDREL/CROSS GUTTER 5,185 SF $29.25 $151,661.25 $21.00 $108,885.00 $30.50 $158,142.50 $20.40 $105,774.00 $20.00 $103,700.00 $26.55 $137,661.75 20 CONSTRUCT HOT MIX ASPHALT CONCRETE DIKE (TYPE D OR 6") 726 LF $25.50 $18,513.00 $30.00 $21,780.00 $19.00 $13,794.00 $15.50 $11,253.00 $18.00 $13,068.00 $12.01 $8,719.26 21 CONSTRUCT PCC DRIVEWAY 430 SF $10.50 $4,515.00 $17.00 $7,310.00 $18.00 $7,740.00 $14.00 $6,020.00 $16.00 $6,880.00 $15.76 $6,776.80 22 CONSTRUCT PCC SIDEWALK 320 SF $7.00 $2,240.00 $11.50 $3,680.00 $13.00 $4,160.00 $9.40 $3,008.00 $11.00 $3,520.00 $15.90 $5,088.00 23 ADJUST EXISTING WATER/GAS VALVE TO GRADE 32 EA $954.25 $30,536.00 $1,040.00 $33,280.00 $105.00 $3,360.00 $132.00 $4,224.00 $100.00 $3,200.00 $172.44 $5,518.08 24 ADJUST EXISTING SEWER MANHOLE TO GRADE 38 EA $1,272.25 $48,345.50 $1,615.00 $61,370.00 $1,330.00 $50,540.00 $1,570.00 $59,660.00 $1,300.00 $49,400.00 $1,765.95 $67,106.10 25 INSTALL TRAFFIC SIGNING AND STRIPING 1 LS $7,740.25 $7,740.25 $6,200.00 $6,200.00 $7,665.00 $7,665.00 $6,000.00 $6,000.00 $28,923.98 $28,923.98 $6,915.97 $6,915.97 BID SCHEDULE A SUBTOTAL $2,152,940.45 $1,702,019.19 $1,894,745.00 $1,668,510.00 $1,513,000.00 $1,754,242.26 Bid Schedule B
26 TRENCH REPAIR MOBILIZATION/ DEMOBILIZATION 1 LS $67,133.00 $67,133.00 $5,000.00 $5,000.00 $3,675.00 $3,675.00 $14,000.00 $14,000.00 $7,040.00 $7,040.00 $7,072.83 $7,072.83 27 STORM DRAIN TRENCH REPAIR TIME AND MATERIAL ALLOWANCE 1 AL $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 $25,000.00 28 CONSTRUCT PCC CURB RAMP PER RIVERSIDE COUNTY STD 403 CASE A 415 SF $25.25 $10,478.75 $25.00 $10,375.00 $52.00 $21,580.00 $41.00 $17,015.00 $24.00 $9,960.00 $20.88 $8,665.20 BID SCHEDULE A & B TOTAL $2,255,552.20 $1,742,394.19 $1,945,000.00 $1,724,525.00 $1,555,000.00 $1,794,980.29 City of Calimesa
Citywide Pavement Rehabilitation Project Phase 2
Bid Breakdown
ITEM No. DESCRIPTION OF CONSTRUCTION ITEMS QTY UNIT
Hardy & Harper

UNIT COST TOTAL
Calmex Engineering

UNIT COST TOTAL
All American Asphalt

UNIT COST TOTAL
Vance Corporation

UNIT COST TOTAL
Matich Corperation

UNIT COST TOTAL
Onyx Paving
Company

UNIT COST TOTAL
Attachment 9A