Colton City Council
November 19, 2024

1 CITY OF COLTON
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
Website: www.coltonca.gov

Mayor Frank J. Navarro
Council Members:

David J. Toro – District 1
Kelly J. Chastain – District 2
Dr. Luis S. Gonzalez – District 3
John R. Echevarria – District 4

City Treasurer Aurelio De La Torre

City Manager William R. Smith
City Attorney Carlos Campos
Chief Deputy City Clerk Stephanie M. Vargas

AGENDA

CITY COUNCIL,

COLTON UTILITY AUTHORITY, COLTON PUBLIC FINANCING AUTHORITY,

COLTON HOUSING AUTHORITY

REGULAR MEETING
TUESDAY, NOVEMBER 19, 2024 – 5:00 P.M.

CITY HALL, COUNCIL CHAMBERS
CLOSED SESSION - 5:00 p.m.

CLOSED SESSION CALLED TO ORDER

ROLL CALL
PUBLIC COMMENT - Closed Session
This is the portion of the meeting specifically set aside to invite your comments regarding Closed Session items and other general comments about matters not on the agenda; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. The Council is prohibited by law from discussing or taking immediate action on items during this public comment period.

Persons desiring to submit paperwork to the City Council Members shall provide a copy of any paperwork to the City Clerk for the Official Record.

Speakers will be limited to 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.

Please state your name and your City of Residence before providing your comment.

2 A. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code Section 54957.6
Agency Designated Representatives: Bill Smith, City Manager Employee Groups: Teamsters - General Employees
Teamsters - Mid-Manager Employee Association
International Brotherhood of Electric Workers, Local 47 - Electric Division International Brotherhood of Electric Workers, Local 47 - Water/Wastewater Division Colton Police Officers Association (CPOA)
Colton Police Management Association (CPMA)
Colton Police Dispatchers Association (CPDA)
Colton Police Civilian Employee Association (CPCA)
Colton Firefighters Association (CFA)
Confidential Employees Group
Executive Employees Group
B. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title - City Manager

CITY ATTORNEY ORAL REPORT ON CLOSED SESSION ACTIONS

RULES OF DECORUM

To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Generally, the City's rules of decorum prohibit comments or actions which willfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.

OPEN SESSION
6:00 P.M.

OPEN SESSION CALLED TO ORDER
INVOCATION Pastor Eric Strutz - The Door Church
FLAG SALUTE Veterans of Foreign Wars (VFW) Commander Bernie Moyeda

ROLL CALL

CEREMONIAL MATTERS
Presentations, Awards, Proclamations
 Proclamation - Small Business Saturday

MAYOR AND COUNCIL ITEMS

3 GIFT DISCLOSURES
Prior to rendering a decision in any proceeding involving a license, permit, contract or other entitlement pending before the City Council, any Council Member who has received been promised a gift or gifts aggregating $50.00 or more in value within the preceding twelve months from a party or participa nt in the proceeding shall disclose that fact either orally or in writing during open session. This disclosure shall be made part of the official public record of the proceeding, either as part of the minutes of the meeting or as a separate writing filed with the city. (CMC Section 2.04.030) AB 1234 ORAL REPORTS
Members of the City Council shall provide brief reports on meetings attended at the expense of the city. (GC Section 53232.3(d))

APPOINTMENTS

MAYOR AND COUNCIL DISCUSSION ITEMS

PUBLIC HEARINGS

To speak on public hearing items, it is requested that you obtain a card from the City Clerk and complete it by noting the agenda item number, as well as whether you are in favor, opposition or neither, and give it to the City Clerk. The applicant will be allowed 5 minutes to address the Council and all other persons will be allowed 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure. (1) Commercial Cannabis Ordinance No. O-18-24 - Waive Full Reading, Read by Title Only, and Pass the First Reading for Commercial Cannabis Ordinance, ORDINANCE NO. O-18-24. [Staff Person: Anthony Vega]

Mayor announces the Public Hearing Open.

City Clerk submits the Affidavit of Publication and reports on protests or objections thereto.

Staff Presentation.

Public Comment.

After hearing public comment, on motion by Councilmember __________, seconded by Councilmember _________, the Public Hearing is terminated.

MOTION __________ SECOND __________

4 BUSINESS ITEMS
There are no Business Items.

PUBLIC COMMENT Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Consent Calendar items and other general comments about matters not on the agenda; however, any matter that requires action will be referred to staff for investigation and report at a subsequent Council meeting. The Council is prohibited by law from discussing or taking immediate action on items during this public comment period.

Persons desiring to submit paperwork to the City Council Members shall provide a copy of any paperwork to the City Clerk for the Official Record.

Speakers will be limited to 3 minutes; provided, however, that the presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.

Please state your name and your City of Residence before providing your comment.

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the motion, unless councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

(2) Minutes - Approval of Minutes for the City Council Regular Meeting Held on November 05, 2024, on File in the Office of the City Clerk.
[Staff Person: Stephanie M. Vargas]
(3) Warrants - Approve US Bank voucher dated 09/25/2024 and totaling $67,513.14; replacement checks 215459 to 215460 totaling $4,431.36; voucher numbers 215461 to 215569 dated 10/17/2024 and totaling $1,108,608.17; vouchers numbers 215570 to 215690 dated 10/24/2024 and totaling $1,220,400.77 and payroll disbursement listing dated 09/14/2024 to 09/27/2024 and totaling $1,178,185.31. [Staff Person: Stacey Dabbs]
(4) City Treasurer's Report - Receive and File City Treasurer's Report for August 2024. [Staff Person: Aurelio De La Torre]
(5) Continued Funding Application - ECE Program - Approve and Adopt a Resolution Adopting the CA Department of Education FY25-26 Continued Funding Application for the Early Care and Education Division, RESOLUTION NO. R-113-24.
[Staff Person: Deb Farrar]
(6) Contract Amendment - JL Group, LLC - Approve Contract Amendment with JL Group, LLC for Professional Investigative Services.
[Staff Person: Tom Cody]
(7) Contract Award - Estate Design and Construction - Approve Award of Contract to Estate Design and Construction for the Water Department Restroom Project. [Staff Person: Robert DeLoach]

5 (8) Contract Award - CAT Tracking - Approve Contract Award to CAT Tracking for the Citywide Striping Project. [Staff Person: Robert DeLoach]
(9) Joint Community Facilities Agreement - CJUSD and Modern Pacific Homes, LLC - Approve and Adopt a Resolution of the City Council of the City of Colton, California Approving a Joint Community Facilities Agreement by and Between the Colton Joint Unified School District, Modern Pacific Homes, LLC, Colton Land and Tower, LLC, and the City of Colton, RESOLUTION NO. R-114-24. [Staff Person: Stacey Dabbs]
(10) Lease Agreement - Enterprise Fleet Management, Inc. - Approve Lease Agreement with Enterprise Fleet Management, Inc.
[Staff Person: Anthony Vega]
(11) Ongoing Emergency - AMPP - Affirm Ongoing Emergency at Agua Mansa Power Plant. [Staff Person: Charles Berry]
(12) Resolution - Lofy Park Concessions Building Improvements - Approve and Adopt a Resolution Accepting Donation to Improve Concessions Building at Max Lofy Park, RESOLUTION NO. R-112-24. [Staff Person: Deb Farrar]

MAYOR AND COUNCIL ORAL REPORTS AND COMMENTS
Comments from Mayor and Council on various issues and activities throughout the community. Comments shall be limited to 5 Minutes per speaker.

CITY MANAGER'S REPORTS

ADJOURNMENT

6 I, Stephanie Vargas, the Deputy City Clerk, hereby certify that a true and correct, accurate copy of the foregoing agenda was posted , at least seventy-two (72) hours prior to the meeting per Government Code 54954(a), at the following locations:

City of Colton City Hall 650 N. La Cadena Drive
City of Colton Website, www.coltonca.gov <http://www.coltonca.gov>

PROCEDURES FOR ADDRESSING CITY COUNCIL

For the O fficial Record, it is requested that you obtain a card from the Deputy City Clerk and complete it by noting a specific item number on the Agenda, if applicable, or you can identify the subject that you wish to address under the Public Comment portion of th e Agenda. The City Council encourages public input on all City issues within the Rules of Decorum. Speakers will be limited to the time periods provided on the Agenda; provided, however, that the presiding officer shall have certain discretion to extend o r limit time as provided for in the City Council Manual of Procedure.

RULES OF DECORUM

To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in the City Council Manual of Procedure. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public. Generally, the City's rules of decorum prohibit comments or actions which wi llfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.

NOTICE TO PUBLIC

Staff reports or other written documentation relating to each item referred to, on the Agenda, are available for public inspection at the following locations: Office of the City Clerk, 650 N. La Cadena Drive, Colton, CA; City of Colton Public Library, 656 9 th St., Colton, CA; or the City of Colton Internet Website, www.coltonca.gov. Any person having questions concerning any item on the Agenda may call the City Clerk at 370 -5191 to make inquiry concerning the nature of the item described on the Agenda. The City Clerk shall direct inquiries to the appropriate office.

All matters listed under the Consent Calendar are considered by the City Council to be routine and will all be enacted by one motion. There will be no separate discussion of these items prior to the time the City Council votes on the motion, unless co uncilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

7 In compliance with the American with Disabilities Act, if you need special assistance to participate in a City Meeting, please contact the City Clerk’s Office at 909-370-5001. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

LEGAL CHALLENGES

If you challenge in court any discussion or action taken concerning an item on this Agenda, you may be limited to raising only those issues you or someone else raised during the meeting or in written correspondence delivered to the City at or prior to the City's consideration of the item at the meeting.

MANUAL OF PROCEDURE

The City Council adopted its Manual of Procedure pursuant to Resolution No. R-41-18. Copies are available in the Office of the City Clerk.

ITEM NO. 1

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: ANTHONY VEGA, POLICE CHIEF
SUBJECT: WAIVE FULL READING, READ BY TITLE ONLY, AND PASS THE

FIRST READING FOR COMMERCIAL CANNABIS ORDINANCE,
ORDINANCE NO. O-18-24.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Review and conduct first reading by title only of Ordinance No. O-18-24 An Ordinance of the City Council of the City of Colton, California, Amending Portions of Chapter 5.54 Relating to Commercial Cannabis Businesses.

BACKGROUND

Beginning in 2017, the City Council initiated code amendments and policy changes to allow limited commercial cannabis uses in the City, as permitted by State law (Proposition 64).

On June 4, 2019, Ordinance No. 0-5-19 was adopted establishing a new chapter of the Municipal Code. Chapter 5.54 Commercial Marijuana Businesses outlining regulations for Commercial Marijuana Businesses.

On Dece mber 3, 2019, Ordinance No. O -17-19 was adopted amending Chapter 5.54 making numerous changes and replacing “marijuana” throughout the ordinance to “cannabis.”

On October 8, 2023, Assembly Bill 1684 passed amending Section 53069.4 of the California Government Code allowing local jurisdictions to adopt an ordinance imposing immediate administrative fines and penalties upon the property owner and upon each owner of the occupant business entity engaging in unlicensed commercial cannabis activity.

1.1 Packet Pg. 8
Staff Report to the Mayor and City Council
Commercial Cannabis Ordinance No. O-18-24
November 19, 2024

A review of the current Municipal Code Chapter 5.54 was completed to identify necessary changes and to seek ways to prevent and deter illegal cannabis cultivation.

ISSUES/ANALYSIS

Based on previous code compliance and criminal investigations, large scale commercial cannabis cultivation operations illegally house hundreds and in some cases, thousands of cannabis plants.

This degree of illegal cannabis cultivation poses many health and safety risks to persons and property. These operations can be extremely profit able making deterring the activity difficult.

To combat the emergence of illegal cannabis cultivation which has been challenging for many cities, an analysis of the ordinance was conducted by staff and the city’s legal counsel . During the review process, numerous amendments were brought forth that are essential to refining the ordinance. The revisions to the current ordinance include the following changes:

5.54.050 Definitions.
"Responsible Person" means each person committing the violation or causing a condition on a parcel of real property located within the City of Colton to violate the Colton Municipal Code; each person who has an ownership interest in that property; and each person who has an ownership interest in that property; and each person who although not an owner, nevertheless has a legal right or a legal obligation to exercise possession and control over that property. In the event that the person who commits the violation or causes the violating condition is a minor, then the minor’s parents or legal guardian shall be deemed the responsible party. In the event the violation or violating condition is most reasonably attributable to a business and not to an employee, then that business, to the extent it is a legal entity such that it can sue an d be sued in its own name, and each person who is an owner, member, or officer of that business shall be deemed responsible parties

“Violator” means any responsible person, including the landowner, lessee, tenant, or any other person who had possession or custody of the property.

5.54.150 Appeals.

4. In the event a written Notice of Appeal is timely filed, the decision made by the City Manager regarding the nonrenewal, suspension, revocation, or other appealed action, will remain in effect and no cannabi s activity may occur on the property until such time as the City Council or an appointed hearing officer or body has rendered a decision.

5.54.330 Personal Cannabis Cultivation.

A. Outdoor Cultivation.

1. It is hereby declared unlawful and a public nu isance for any person owning, leasing, occupying, or having charge or possession of any parcel upon which the person knows, or by exercising reasonable care of diligence, should know that such parcel is being used for outdoor cultivation of cannabis, regar dless of whether such cultivation is for medical, commercial, or personal uses.

1.1 Packet Pg. 9
Staff Report to the Mayor and City Council
Commercial Cannabis Ordinance No. O-18-24
November 19, 2024

2. A person may not plant, cultivate, harvest, dry, or process cannabis plants outdoors in any zoning district of the City. No use permit, building permit, variance, or any ot her permit or entitlement, whether administrative or discretionary, shall be approved or issued for any such use or activity.

B. Indoor Cultivation.

1. It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any parcel upon which the person knows, or by exercising reasonable care of diligence, should know that such parcel is being used for the cultivation of cannabis plants within a fully enclosed and secure structure on the parcel, except as provided in subsections (2) and (3) of this section.

2. A person may not plant, cultivate, harvest, dry, or process cannabis plants inside any enclosed structure within any zoning district of the City which is not either a private residen ce or an accessory structure to a private residence located upon the grounds of a private residence.

3. In accordance with Health and Safety Code section 11362.2, there shall be no more than six (6) plants of personal cannabis cultivation per residence, r egardless of the number of people who reside at the residence. The living plants and any cannabis produced by the plants must be kept within the person’s private residence and must be secure in a locked space and are not visible by normal unaided vision from a public place.

4. All personal cultivation must comply with all local ordinances and state regulations.

5.54.360 Responsibility for Violations.

Permittees, their Responsible Persons, managers, including the landowner, lessee, tenant, or any other person who had possession or custody of the property shall be responsible for violations of the laws of the State of California or of the City Code, whether committed by the permittee, or any employee or agent of the permittee, which violations occur on the premises of the commercial cannabis business whether or not the violations occur within the permittee's presence. Any act or omission of any employee constituting a violation of the provisions of this Chapter shall be deemed the act or omission of the perm ittee for purposes of determining whether the permit shall be revoked, suspended, or not renewed.

5.54.380 Violations and Penalties.

A. Any person who violates any provision of this Chapter is guilty of a misdemeanor and subject to the penalties of this Code.

B. It is unlawful for any Permittee of a commercial cannabis business, or its Responsible Person, manager or any other person employed by or working in concert with them or on their behalf, whether directly or indirectly, to continue to operate, con duct, or maintain a commercial cannabis business after the City -issued Commercial Cannabis Permit has been suspended or revoked, or not renewed, pursuant to a non -contested notice of decision issued by the City Manager, or after the issuance of a final order after an appeal hearing.

C. Any commercial cannabis business operated, or residential indoor cannabis cultivation conducted, or any other unpermitted cannabis activity conducted or maintained contrary to the provisions of this Chapter is unlawful and a public nuisance, and the City may, in addition to or in lieu of prosecuting a criminal action, commence an administrative or civil action(s) or

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Staff Report to the Mayor and City Council
Commercial Cannabis Ordinance No. O-18-24
November 19, 2024

proceeding(s), for the abatement, removal and enjoinment thereof, in the manner provided by law, and may take such other steps and may apply to such court or courts as may have jurisdiction to grant such relief to abate, cause cessation, or remove such commercial cannabis business and restrain and enjoin any person from operating, conducting or maintaining a commercial cannabis business contrary to the provisions of this Chapter.

D. In addition to penalties set forth in this Chapter of the City’s Code, an Administrative Citation may be issued by any employee authorized to issue such citations under this Code to any responsible person for any condition caused or permitted to exist in violation of any of the provisions of this Chapter as follows:

1. Each and every marijuana plant cultivated, manufactured, processed, stored, laboratory tested, labeled, retail sold, dis tributed, or transported in violation of the City of Colton’s Municipal Code shall be subject to immediate imposition of an administrative citation penalty of $1,000.00 per plant per day, which shall not exceed $10,000 per day the plant remains unabated p ast the abatement deadline set forth in the administrative citation.

2. A citation issued for a violation of zoning, building, plumbing, electrical, or other similar structural health and safety, or zoning requirements need not include a reasonable time fo r compliance in the citation when the violation exists as a result of, or to facilitate, the illegal cultivation, manufacturing, processing, storing, laboratory testing, labeling, retail, distribution, or transportation of marijuana.

3. This section shall not be construed to limit administrative fines or penalties that are imposed after notice and reasonable time to correct the violation. A reasonable time to correct a violation, under this Chapter, that does not create an immediate danger to health and sa fety shall be no less than five (5) days.

E. Each person shall be guilty of a separate offense for each and every day, or part thereof, during which a violation of this Chapter, or of any law or regulation referenced herein, is allowed, committed, continued, maintained or permitted by such person, and shall be punishable accordingly.

F. Whenever in this Chapter any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact of such act or omission.

G. Any violation of this Chapter shall be joint and several with strict liability imposed on any property owner without regard to any elements of mens rea, fault, negligence, or other wrongdoing.

H. The penalties set forth herein are cumulative and in addition to all other remedies, violations, and penalties set forth in this Chapter, the City's Code, or in any other ordinance, laws, rules or regulations of the City, County, or the State of California.

I. Administrative Hearing Requirements: Any Re sponsible Person who is a legal owner of the Subject Property may substantiate, before an administrative hearing officer, that all of the following are true, shall be given a reasonable period of time for the correction or remedy of the violation prior to the imposition of administrative fines or penalties:

1. A tenant is in possession of the property that is the subject of the administrative action.

2. The rental property owner or agent can provide evidence that the rental or lease agreement prohibits the commercial cannabis activity.

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Staff Report to the Mayor and City Council
Commercial Cannabis Ordinance No. O-18-24
November 19, 2024

3. The rental property owner or agent did not know the tenant was engaging in unlawful commercial cannabis activity and no complaint, property inspection, or other information caused the rental property owner or agent to hav e actual notice of the unlawful commercial cannabis activity.

FISCAL IMPACTS

At this time, staff does not foresee any fiscal impact.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. Proposition 64

2. Ordinance O-05-19

3. Ordinance O-17-19

4. Assembly Bill No. 1684

5. Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft)

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Attachment: Assembly Bill No. 1684 (4729 : Commercial Cannabis Ordinance No. O-18-24) ORDINANCE NO. O-18-24

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF COLTON, CALIFORNIA, AMENDING CHAPTER 5.54

COMMERCIAL CANNABIS BUSINESSES OF THE
COLTON MUNICIPAL CODE.

WHEREAS, the City of Colton, California, (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; WHEREAS, California Government Code section 65800 et seq. authorizes the adoption and administration of zoning laws, ordinances, rules and regulations by cities as a means of implementing the General Plan; and
WHEREAS, the City passed Ordinance No. 0-02-17 on March 21, 2017; WHEREAS, the City desires to strengthen all commercial cannabis cultivation activities regulations in the City to protect the health, safety, and welfare of its citizens and to reduce the potential for negative secondary effects of establishing commercial cultivation in Colton; WHEREAS, on November 8, 2016, California voters approved Proposition 64, titled the “Adult Use of Marijuana Act” (the “AUMA”) and enacted a state statutory scheme legalizing, controlling, and regulating the cultivation, processing, manufacturing, distribution, te sting, and sale of nonmedical (“adult-use” or “recreational”) cannabis, including cannabis products, for use by adults twenty-one (21) years of age and older;
WHEREAS, on June 27, 2017, Governor Brown signed Senate Bill 94, the “Medicinal and Adult -Use Cannabis Regulation and Safety Act” (“SB 94” or the “MAUCRSA”). SB 94 creates one state regulatory structure for medical and adult -use commercial cannabis activities, reconciling AUMA, with the Compassionate Use Act of 1996 (Proposition 215) and MCRSA (collectively referred to as “the Act”). SB 94 provided that a state license will not be approved for a business to engage in Commercial Cannabis Activity if the business activi ty violates any local ordinance or regulation;
WHEREAS, in preparation for the implementation of MAUCRSA, in November 2017, the three State licensing authorities charged with licensing and regulating commercial cannabis activities in California, the Bureau of Cannabis Control (“BCC”), the California Departmen t of Food and Agriculture (“CDFA”), and the California Department of Public Health (“CDPH”), commenced releasing emergency regulations, outlining the standards and licensing procedures for both medicinal and adult-use commercial cannabis, and began issuing licenses for such activities on January 1, 2018;
WHEREAS, on January 16, 2019, the Office of Administrative Law (OAL) officially approved state regulations for cannabis businesses across the supply chain. These new cannabis regulations took effect immediately; and

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) WHEREAS, in response to changes in state law, the City Council created a Prop. 64 Ad - hoc Committee (Ad -hoc Committee). The purpose of the Ad -hoc Committee is to explore the potential for certain commercial cannabis activities in the City; WHEREAS, on September 17, 2017, during a regular meeting of the City Council, the Ad-hoc Committee recommended that the City Council direct staff to prepare the necessary ordinance and program for the consideration of the Planning Commission and City Council, to allow for the commercial cultivation, manufacturing, distribution and testing of cannabis within limited areas in the City of Colton in accordance with the provisions of MAUCRSA and other applicable state laws;
WHEREAS, on May 7, 2019, the City Council approved an ordinance amending chapter

5.54 establishing permitting procedures for commercial cannabis cultivation, manufacturing, distribution, and testing businesses and adopting a change of zone to apply for cannabis candidate sites (“MCCS”); and
WHEREAS, on November 6, 2018, Colton residents approved Measure U. Measure U is a cannabis business tax to allow the city to impose a tax on cannabis businesses of up to twenty - five dollars ($25.00) per square foot for cultivation/processing and up to ten (10) percent of gross receipts for other businesses. Measure U would be a “general tax.” All revenues from this tax would be deposited into the city’s general fund and could be used for general city operations and services, including police enforcement, emergency response, parks, youth and senior services and street repair.

WHERAS, on October 8, 2023, Assembly Bill 1684 passed amending Section 53069.4 of the California Government Code allowing local jurisdictions to adopt an ordinance imposing immediate administrative fines and penalties upon the property owner and upon each owner of the occupant business entity engaging in unlicensed commercial cannabis activity. Prompting a review of the current Municipal Code Chapter 5.54.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON DOES ORDAIN AS FOLLOWS:

Incorporation of Recitals. The above recitals are true and correct and are incorporated herein by reference.

Chapter 5.54 of the Colton Municipal Code is hereby repealed and replaced in full by new Chapter

5.54 as follows:

Chapter 5.54 COMMERCIAL CANNABIS BUSINESSES

5.54.010. Purpose and Intent.

It is the purpose and intent of this Chapter to implement the provisions of the Medicinal

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) and Adult Use Cannabis Regulation and Safety Act ("MAUCRSA") to accommodate the needs of medically-ill persons and provide access to cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to adult-use of cannabis for persons over the age of 21 as authorized by the Control, Tax & Regulate the Adult Use of Marijuana Act ("AUMA" or "Proposition 64" passed by California voters in 2016), while imposing reasonable regulations on the use of land to protect the City's residents, neighborhoods, and businesses from disproportionately negative impacts. As such, it is the purpose and intent of this Chapter to regulate the cultivation, processing, manufacturing, testing, distribution and transportation of medicinal and adult-use cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of Colton and to enforce rules and regulations consistent with state law.

It is the further purpose and intent of this Chapter to require all commercial cannabis businesses operating in the City to obtain and renew annually a Commercial Cannabis Permit to operate within Colton and an annual City of Colton Business License.

Nothing in this Chapter is intended to authorize the possession, use, or provision of cannabis for purposes that violate state or federal law. The provisions of this Chapter are in addition to any other permits, licenses and approvals which may be required to conduct business in the City, and are in addition to any permits, licenses and approval required under state, county, or other law.
( Ord. No. O-17-19 , § 2, 12-3-2019)
Sec. 5.54.020 Legal Authority.

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of MAUCRSA, any subsequent state legislation and regulations regarding same, the City of Colton is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial medicinal and adult-use cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State of California, or any of its departments or divisions, shall be

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) the minimum standards applicable in the City of Colton to all Commercial Cannabis Activity. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.030 Commercial Cannabis Businesses Prohibited Unless Specifically Authorized by this Chapter.

Except as specifically authorized in this Chapter, commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, retail, distribution or transportation (other than as provided under California Business & Professions Code section 26090(e)), of cannabis or cannabis products is expressly prohibited.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.040 Compliance with Laws.

Nothing in this Chapter shall be construed as authorizing any actions that violate federal, state law or local law with respect to engaging in, or in the operation of, a commercial cannabis business. Nor shall this Chapter be construed as amending existing prohibitions on smoking tobacco or cannabis in public buildings and parks. It shall be the responsibility of the Permittees and Responsible Persons of a commercial cannabis business to ensure that a commercial cannabis business is, at all times, operating in a manner compliant with all applicable federal, state and local laws, including for as long as applicable, all state cannabis laws, any subsequently enacted state law or regulatory, licensing, or certification standards or requirements, and any specific, additional operating procedures or requirements which may be imposed as conditions of approval of a required license or permit.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.050 Definitions.

When used in this Chapter, the following words shall have the meanings ascribed to them as set forth herein. Any reference to California statutes includes any regulations promulgated thereunder, and is deemed to include any successor or amended version of the referenced statute or regulatory provision.
"A-License" is a license issued by the State of California under MAUCRSA for cannabis

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) or cannabis products that are intended for adults twenty-one years of age and over and who do not possess physician's recommendations.
"Applicant" shall include any individual or entity applying for a permit under this Chapter, and including any officer, director, partner, or other duly authorized representative applying on behalf of an entity.
"Business License" is the license issued by the City's Business License Division after payment of the business tax as set forth in Division 1 of Article VIII of Chapter 50 of the City of Colton City Code.
"Bureau" means the Bureau of Cannabis Control within the Department of Consumer Affairs, and shall have the same meaning as in Section 26001(e) of the Business and Professions Code, as same may be amended from time to time.
"Indoor" in relation to commercial cannabis cultivation uses, refers to industrial uses within industrial zones, where all commercial cannabis cultivation uses are required to take place within fully enclosed structure with solid walls and solid roof. "Cannabis" means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified, obtained from cannabis. "Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Chapter, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 of the California Health and Safety Code. Cannabis shall also have the same meaning as in Section 26001(f) of the Business and Professions Code, as same may be amended from time to time. "Cannabis Accessories" means any equipment, products or materials of any kind which

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body.

Cannabis accessories shall also have the same meaning as in Section 11018.2 of the Health and Safety Code, as same may be amended from time to time.
"Cannabis Products" means cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including but not limited to concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients. Cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or drug, as defined by Section 109925 of the Health and Safety Code.

Cannabis products shall also have the same meaning as in Section 11018.1 of the Health and Safety Code, as same may be amended from time to time.
"Canopy" means all areas occupied by any portion of a cannabis plant, inclusive of all vertical planes, whether contiguous or noncontiguous on any one site. "Caregiver" or "Primary Caregiver" has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. "City" shall mean the City of Colton, California.
"City Manager" shall mean the City Manager of the City, including his or her designee. "Code" shall mean the City of Colton City Code.
"Commercial Cannabis Activity" includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, or transportation of cannabis and cannabis products as provided for in MAUCRSA. Commercial cannabis activity shall also have the same meaning as in Section 26001(k) of the Business and Professions Code, as same may be amended from time to time.
"Commercial cannabis business" means any business or operation which engages in medicinal or adult-use Commercial Cannabis Activity.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) "Commercial Cannabis Permit" means the regulatory permit issued by the City to a commercial cannabis business, which is required before any Commercial Cannabis Activity may be conducted in the City, pursuant to this Chapter.
"Cultivation" is any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. Cultivation shall also have the same meaning as in Section 26001(1) of the Business and Professions Code, as same may be amended from time to time.

Whenever references to cultivation are made in this Chapter, permitted or licensed cultivation shall only be indoors, as outdoor cultivation is expressly prohibited. "Cultivation Site" means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

Cultivation site shall also have the same meaning as in Section 26001(m) of the Business and Professions Code, as same may be amended from time to time. Whenever references to a cultivation site are made in this Chapter, a permitted or licensed cultivation site shall only allow cultivation activities indoors, as outdoor cultivation is expressly prohibited. "Day Care Center" has the same meaning as in Section 1596.76 of the Health and Safety Code, as same may be amended from time to time.
"Distribution" means the procurement, sale, and transport of cannabis and cannabis products between licensees. Distribution shall also have the same meaning as in Section 26001(r) of the Business and Professions Code, as same may be amended from time to time. "Distributor" means a person holding a valid Commercial Cannabis Permit for distribution issued by the City and a valid state license for distribution, required by state law to engage in the business of purchasing cannabis from a licensed cultivator or cannabis products from a licensed manufacturer, for sale to a licensed retailer. "Edible Cannabis Product" means a cannabis product that is intended to be used, in whole or in part, for human consumption, and is not considered food. Edible cannabis product has the same meaning as Business and Professions Code section 26001. "Fire Chief" shall mean the Colton Fire Department Fire Chief, or his or her designee.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) "Greenhouse" means a permanent, enclosed structure not constructed of fabric, lightweight metal, or plastic employed for cultivation of cannabis that provides access to natural light.
"Law enforcement agency" refers to the agency charged with enforcing the pertinent laws in the City. The law enforcement agency for the City shall be the Colton Police Department.

Unless the provisions of the context otherwise require, whenever any provision of this Code makes reference to the law enforcement agency of the City, such shall be construed to mean, and deemed to constitute, that person holding the office of Chief of Police for the City and his or her authorized deputies or officers, performing law enforcement functions for the City. "Law enforcement officer" means any law enforcement officer of the City's law enforcement agency, or deputy of the Colton Police Department, authorized to enforce the City's laws, including those contained in this Chapter.
"License or State License" means a license issued by the State of California, or one of its departments or divisions, under MAUCRSA, and any subsequent State of California legislation regarding the same, to lawfully engage in Commercial Cannabis Activity. "Licensee" means any person holding a license issued by the State of California to conduct commercial cannabis business activities.
"Live plants" means living cannabis flowers and plants including seeds, immature plants, and vegetative stage plants.
"Manager" means any person(s) designated by the commercial cannabis business to act as the representative or agent of the commercial cannabis business in managing day-to-day operations with corresponding liabilities and responsibilities, or the person in apparent charge of the premises where the commercial cannabis business is located. Evidence of management includes, but is not limited to, evidence that the individual has the power to direct, supervise, or hire and dismiss employees, controls hours of operations, creates policy rules, or purchases supplies.
"M-license" means a license issued by the state of California under MAUCRSA for

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) Commercial Cannabis Activity involving medicinal cannabis. "Manufacture" means to compound, blend, extract, infuse, or otherwise make or prepare a cannabis product. Manufacture shall also have the same meaning as in Section 26001(ag) of the Business and Professions Code, as same may be amended from time to time. "Manufactured cannabis" means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application.
"Manufacturer" means a licensee that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or re-labels its container. A manufacturer may also be a person that infuses cannabis in its products but does not perform its own extraction. Manufacturer shall also have the same meaning as in Section 26001 (ah) of the Business and Professions Code, as same may be amended from time to time.
"Manufacturing site" means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or re-labels its container, and is owned and operated by a person issued a valid Commercial Cannabis Permit for manufacturing from the City and, a valid state license as required for manufacturing of cannabis products.
"Medicinal cannabis or medicinal cannabis product" refers to cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215) or the Medical Cannabis Program Act of 2003, found at Sections 11362.5 and 11362.71 et seq. of the Health and Safety Code, by a medicinal cannabis patient in California

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) who possesses a valid and current identification card issued by a California licensed physician's recommendation.
"Microbusiness" means licensees who engage in these three following commercial cannabis activities: indoor cultivation of less than 10,000 square feet, manufacturing (level 1, type 6), and distribution, as defined within this Chapter. "Neighborhood Compatibility" reflects the plans of the commercial cannabis business to take specific actions to avoid becoming a nuisance, due to odor, loitering, excessive light at night, and the degree of diligence with which the business will maintain a clean property (this includes both waste disposal and general maintenance).
"Operation" means any act for which a license is required under the provisions of the Act, or any commercial transfer of cannabis or cannabis products. Operation shall also have the same meaning as in Section 26001 (ak) of the Business and Professions Code, as same may be amended from time to time.
"Owner" means any of the following, or a group or combination of any of the following acting as a unit:
(1) A person with an aggregate ownership interest of ten percent or more in the person applying for a City Commercial Cannabis Permit, whether a partner, shareholder, principal, member, or the like, unless the interest is solely a security, lien, or encumbrance. (2) The chief executive officer of a nonprofit or other entity. (3) A member of the board of directors of a nonprofit.
(4) An individual who will be participating in the direction, control, or management of the person applying for a City Commercial Cannabis Permit. "Patient or qualified patient" means the same definition as California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health & Safety Code Section 11362.5. "Permittee" means any person to whom a current and valid City-issued commercial Cannabis Business Permit has been issued.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) "Person" means any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit or entity, and the plural as well as the singular. "Premises" means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant where the commercial cannabis business will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one Permittee.
"Purchaser" means the customer who is engaged in a transaction with a Permittee for purposes of obtaining cannabis or cannabis products.
"Regulations" means those regulations prescribed and issued by the State of California, through its respective departments and/or divisions, pursuant to Section 26013 of the Business and Professions Code, including those regulations as found in the California Code of Regulations (including, Title 3, Division 8; Title 16, Division 42; and Title 17, Division 1), as same may be amended from time to time, to implement, interpret, administer and enforce the Act, and providing licensing and enforcement criteria for commercial cannabis activities and businesses. "Responsible Person" means each person committing the violation or causing a condition on a parcel of real property located within the City of Colton to violate the Colton Municipal Code; each person who has an ownership interest in that property; and each person who has an ownership interest in that property; and each person who although not an owner, nevertheless has a legal right or a legal obligation to exercise possession and control over that property. In the event that the person who commits the violation or causes the violating condition is a minor, then the minor’s parents or legal guardian shall be deemed the responsible party. In the event the violation or violating condition is most reasonably attributable to a business and not to an employee, then that business, to the extent it is a legal entity such that it can sue and be sued in its own name, and each person who is an owner, member, or officer of that business shall be deemed responsible parties.
"Sell," "sale," or "to sell" includes any transaction whereby, for any consideration or

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) gross receipt, whether actual or intangible, title to cannabis or cannabis products are transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a Customer to the Licensee from whom the cannabis or cannabis product was purchased. "State law" means all laws of the State of California, which includes, but are not limited to, all rules, regulations, and policies adopted by State of California agencies, departments, divisions, and regulatory entities, as same may be amended from time to time. "Testing Laboratory" means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:
(1) Accredited by an accrediting body that is independent from all other persons involved in Commercial Cannabis Activity in the state.
(2) Licensed by the State of California.

Testing laboratory shall also have the same meaning as in Section 26001 (at) of the Business and Professions Code, as same may be amended from time to time. "Topical Cannabis" means a product intended for external application and/or absorption through the skin. A topical cannabis product is not considered a drug as defined by Section 109925 of the California Health and Safety Code.
"Transport" means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting Commercial Cannabis Activity authorized by law and which may be amended or repealed by any subsequent State of California legislation regarding the same. “Violator” means any responsible person, including the landowner, lessee, tenant, or any other person who had possession or custody of the property. "Youth and Recreation Center" means any public or private facility that is primarily used to host recreation or social activities for minors, including, but not limited to, private youth membership organizations or clubs, social service teenage club facilities, video arcades where 10

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business, or similar amusement park facilities. It shall also include a park, playground or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball or any similar facility located on a public or private school grounds, or on city, county or state parks. Parks with organized youth-oriented programs are also youth and recreation centers for purposes of this Chapter. This definition shall not include any private martial arts, yoga, ballet, music or similar studio of this nature nor shall it include any private athletic training facility or pizza parlor, dentist office or doctor's office primarily serving children.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.060 Commercial Cannabis Permit Required to Engage in Commercial Cannabis Business.

A. No person may engage in any commercial cannabis business or in any Commercial Cannabis Activity within the City unless the person (a) has a valid Commercial Cannabis Permit from the City, (b) has a valid State of California Seller's Permit, and (c) is in compliance with all applicable state and local laws and regulations pertaining to the commercial cannabis business and commercial cannabis activities, including the duty to obtain any required state licenses, business license obtained and all taxes paid and all other applicable laws including without limitation zoning and fire codes.

B. The classification and type of commercial cannabis businesses allowed for by this Chapter are the indoor cultivation, manufacturing, testing, distribution, a microbusiness of medicinal and adult-use cannabis and cannabis products, and the ancillary transportation and out of town deliver services of cannabis or cannabis products.

C. In addition to all other applicable zoning regulations and the requirements of all required state and local permits, no Commercial Cannabis Permit will be valid if the proposed commercial cannabis business is located within a six-hundred-foot radius of a school providing

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) instruction in kindergarten or any grades one through twelve, a day care center, or a youth and recreation center with primary youth and recreation center activities, which is in lawful existence at the time a successful application was submitted to the City. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.070 Commercial Cannabis Businesses Permitted only in Cannabis Candidate Overlay Sites.

Commercial Cannabis Businesses shall only be permitted to operate within Cannabis Candidate Overlay Sites as described in Chapter 18.06.060. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.080 Maximum Number and Type of Commercial Cannabis Businesses Authorized; Application Process.

A. The City Council, by resolution, may determine the maximum number of commercial cannabis businesses by category that may be permitted to operate in the City. In its discretion, the City Council may increase or decrease the maximum number of permits that may be issued in any category of Commercial Cannabis Activity. This section is only intended to establish the procedure to set the maximum number of commercial cannabis businesses that may be issued permits to operate in the City under each category of commercial cannabis activities.

Nothing in this Chapter requires that the City authorize any or all of the commercial cannabis businesses that submit an application to the City.

B. The process for issuing Commercial Cannabis Permits to qualified cannabis businesses is meant to result in qualified businesses that will operate in accordance with state and local law, be successful, contribute positively to the community and local economy, and avoid secondary adverse impacts. Toward that objective, the application process includes these three phases:

1. PHASE ONE: Application submittal. This includes submitting complete information, obtaining a zoning clearance to verify the proposed location is permissible, completed Livescan and background check information (state and federal database), and

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) processing fees.

2. PHASE TWO: Initial scoring of application.

3. PHASE THREE: Selection Committee Interview, final ranking and permit issuance.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.090 Initial Commercial Cannabis Permit Application and Scoring.

A. The City Manager may establish additional submittal requirements for an application for a Commercial Cannabis Permit. The following information shall be included in any application for a Commercial Cannabis Permit:

1. Name of Applicant.

2. Business Trade Name (if applicable) of the applicant.

3. Identification of Owner(s) (full name, primary phone number, social security number or individual taxpayer identification number, date and place of birth, email address, and mailing address for the primary owner submitting the Application).

4. For each person that is an "owner" of the applicant. a. Percentage of interest held in the applicant entity by the owner; b. Whether the owner has an ownership or financial interest, as defined in section 6003 of the Bureau of Cannabis Control Regulations, in any other commercial cannabis business licensed under the AUMA or MAUCRSA;
c. A copy of the owner's government-issued identification, acceptable forms are a document issued by a federal, state, county, or municipal government that includes the name, date of birth, physical description, and picture of the owner, such as a driver's license; d. A detailed description of the owner's criminal convictions, if applicable. A conviction for this purpose means a plea or guilty verdict of guilty or a conviction following a plea of nolo contendere. Convictions dismissed under Penal Code section 1203.4 or equivalent non-California law must be disclosed. Convictions dismissed under Health & Safety Code section 11361.8 or equivalent non-California law must be disclosed. Juvenile Adjudications and

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) traffic infractions under $300 that did not involve alcohol, dangerous drugs, or controlled substances do not need to be included. For each conviction, provide: (1) the date of conviction; (2) dates of incarceration, if applicable; (3) dates of probation, if applicable; (4) dates of parole, if applicable; (5) a detailed description of the offense for which the owner was convicted; and (6) a statement of rehabilitation for each conviction written by the owner that demonstrates the owner's fitness for consideration;
e. If applicable, a detailed description of a commercial cannabis license, revocation of a commercial cannabis license, or sanctions for unlicensed Commercial Cannabis Activity by a licensing authority or local agency against the applicant or a business entity in which the applicant was an owner or officer within the three (3) years immediately preceding the date of the application;
f. If applicable, a detailed description if the City issued the applicant a notice or citation for unlicensed Commercial Cannabis Activity, or if the applicant was a defendant in a civil or criminal proceeding filed by the City or the People of the State of California, for allowing, causing, or permitting unlicensed commercial cannabis activities within the City's jurisdiction;
g. An attestation of each owner as follows: "Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact or omission may be cause for rejection or denial of this application, or revocation of any Commercial Cannabis Permit or any permit, license or approval issued in reliance thereon."

5. Primary Contact: The contact information for the applicant's designated primary contact person, including the name, title, phone number, and email address of said individual.

6. Nature of Operations: Identification of whether the applicant seeks to operate a cannabis cultivation site, manufacturing site, testing laboratory, distribution site, or microbusiness non-retail facility; the specific State license category under which the applicant will seek to operate; and the number of employees anticipated.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24)

7. Qualifications and Experience of Applicants and Owners: The application shall include information concerning any special business or professional qualifications or licenses of the applicants and owners, and the years of relevant and related experience, that would add to the number or quality of services that facility would provide, or otherwise demonstrates the applicants' and owners' capacity to operate a successful commercial cannabis facility in compliance with applicable laws and regulations.

8. Disclosure of Lobbying Activity: If applicant contracted, employed or in any manner paid or will pay any person for influencing or attempting to influence an elected official, appointed official or any employee of the City, shall fully disclose the name of individuals and organization(s) performing lobbying services.

9. The physical address of the proposed location, as well as the San Bernardino County Assessor Parcel Number and property owner's consent. a. Evidence of the applicant's right to use and occupy the property. If owned by applicant, a grant deed or a copy of title for the property. If not owned by applicant, a document from the landowner or the landowner's agent stating the applicant has the right to occupy the property and acknowledges that the applicant may use the property to potentially conduct a commercial cannabis business for which the applicant is applying, plus any lease agreement. b. A complete and detailed diagram, such as a site plan, of the premises, as well as a map showing the premises' location within the City, which comply with the following:

1. Shows the boundaries of the property and the proposed premises to be utilized, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, bathrooms, windows, doorways, and common or common shared entryways, and a brief statement of the principal activity to be conducted therein;

2. Map identifying any schools (K-12), day care, or youth and recreation center facilities and any commercial cannabis business located within six hundred feet of the property lines of the proposed location. If the proposed location is not within 600 feet of any such uses, identify on the map the closest such use, and the distance in feet between that use and the

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) property line of the proposed location;
c. Identifies all commercial cannabis activities that will take place in each area of the premises, and identification of limited access areas; d. The location of all proposed security cameras with a number assigned to each for identification purposes;
e. The diagram shall be clear, legible, and to scale, and shall not include any highlighting, and the markings on the diagram shall be in blue-and-white print; and f. If the proposed premises include only a portion of a property, the diagram must be labeled indicating which part of the property is the proposed premises and what the remainder will be used for.

10. Description of Operating Procedures: Applications shall include a detailed description of the applicant's proposed operating procedures for each commercial cannabis activity, including an explanation for how the business will comply with the operating regulations of this Code and state law. The application must include copies of any applicable policies or manuals of the applicant and address each of the following, if applicable:
a. Transportation Procedures: A description of the procedure for transporting cannabis and cannabis products, including whether or not the applicant will be transporting cannabis or cannabis products or contracting for transportation services. b. Inventory Procedures:

1. A description of the applicant's procedure for receiving shipments of inventory;

2. Where the applicant's inventory will be stored on the premises and how records of the inventory will be maintained; and

3. Procedure for performing inventory reconciliation and for ensuring that inventory records are accurate.
c. Non-Laboratory Quality Control Procedures:

1. Procedures for preventing the deterioration of cannabis or cannabis products held by the applicant;

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24)

2. Procedures for ensuring that cannabis and cannabis products are properly packaged and labeled; and

3. Procedure for ensuring that an independent licensed testing laboratory samples and analyzes cannabis and cannabis products held by the applicant. d. Security Procedures: All applicants shall propose sufficient security measures to deter and prevent the unauthorized access or entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the commercial cannabis business. Except as may otherwise be determined by the City Manager or his/her designee, security procedures shall include, but shall not be limited to, all of the following:

1. Preventing individuals from remaining on the premises of the commercial cannabis business if they are not engaging in an activity directly related to the permitted operations of the commercial cannabis business.

2. Establishing limited access areas accessible only to authorized commercial cannabis business personnel.

3. Except for live growing plants which are being cultivated at a cultivation operation, all cannabis and cannabis products shall be stored in a secured and locked vault or vault equivalent. All safes and vaults shall be compliant with Underwriter Laboratories burglary- resistant and fire-resistant standards. All cannabis and cannabis products, including live plants that are being cultivated, shall be kept in a manner as to prevent diversion, theft, and loss.

4. Arranging for professional installation of a 24-hour security surveillance cameras (CCTV) of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within the commercial cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. Procedures for how the applicant will ensure that the security surveillance camera's footage is remotely accessible to law enforcement, and that it is compatible with the City's software and hardware. In addition, procedures on how remote and real-time, live

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) access to the video footage from the cameras will be provided to law enforcement. Procedures for ensuring video recordings are maintained for a minimum of ninety calendar days, and procedures to make them available to law enforcement upon request. Procedures to ensure video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the commercial cannabis business. In addition to surveillance cameras, each commercial cannabis business shall have access control and intrusion detection alarm systems designed to protect the inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories.

5. A description of where sensors will be installed to detect entry and exit from all secure areas. These sensors shall be monitored in real-time by a security company licensed by the State of California Bureau of Security and Investigative Services.

6. Each commercial cannabis business shall arrange for professional installation of panic buttons in the premises, with immediate notification to the Colton Police Department dispatch.

7. Each commercial cannabis business shall have a professionally installed, maintained, and monitored alarm system, with the required City alarm permit as required by this Colton City Code Section 9.30, et seq. that is monitored in real-time by a security company licensed by the State of California Bureau of Security and Investigative Services.

8. A description of the physical security features and improvements that will be installed within the interior of the building, and in full compliance with all applicable Building and Safety and Fire Code requirements (Use of wrought iron on any interior or exterior door, window or opening is prohibited) and any applicable zoning requirements.

9. Procedures for establishing a plan to have security personnel on-site twenty-four hours a day, or alternative security as authorized by the Colton Police Department. Description or documentation showing that the proposed security personnel are licensed by the State of California Bureau of Security and Investigative Services. The security personnel shall be subject to prior review and approval by the Chief of Police or his/her designee, with such approval not to

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) be unreasonably withheld. Firearms may be carried by security personnel while on duty if authorized by the Chief of Police. The commercial cannabis business shall submit to the City and the Police Department the names and contact information of security personnel, with copies of state-issued licenses and/or permits, governmentally issued identification form, and photographs of uniforms and badges. Acknowledgement from applicant indicating that it shall be responsible for providing this confirming information to law enforcement, with updating information within seven calendar days of a change in security personnel, agents, or representatives.

10. Procedures on how each applicant shall have the capability to remain secure during a power outage and ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

11. Entrance areas are to be locked at all times and under the control of a designated responsible party that is either: (a) an employee of the commercial cannabis business; or (b) a licensed security professional.

12. Identification of a designated security representative/liaison to the City, who shall be reasonably available to meet with City staff, as well as law enforcement regarding any security related measures and/or operational issues.

13. A storage and transportation plan, describing in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, (including the use of child- safe cannabis containers) and any currency.

14. Each commercial cannabis business shall have an accounting software system in place to provide point of sale data as well as audit trails or both product and cash, where applicable.

15. An affirmative commitment that the applicant will cooperate with the City whenever the City Manager, or his or her designee, makes a request, upon reasonable notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this subsection.

16. A description and plan of how the applicant will notify the Police Department

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) within 24 hours after discovering any of the following:
(a) Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by law enforcement. (b) Diversion, theft, loss, or any criminal activity involving the commercial cannabis business or any agent or employee of the commercial cannabis business. (c) The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the commercial cannabis business.
(d) Any other breach of security.
(e) Testing Laboratories (only): For applicants seeking to operate a testing laboratory, describe operating procedures as required by the applicable state law and regulations, with references to the applicable state law or regulation requiring same.

17. Each commercial cannabis business shall demonstrate to the Chief of Police, City Manager, or their designee, compliance with the state's track and trace system for cannabis and cannabis products, as soon as it is operational.

11. For applicants with twenty or more employees, the applicant shall attest that the applicant will enter into a labor peace agreement and will abide by the terms of the agreement, and the applicant shall provide a copy thereof to the City. The Labor Peace Agreement shall include the following provisions: (1) Prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant's business; (2) Applicant agrees not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant's employees; (3) The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant's employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24)

12. Seller's Permit: The applicant shall provide a valid seller's permit number issued by the California Department of Tax and Fee Administration, if applicable. If the applicant has not yet received a seller's permit, the applicant shall attest that the applicant is or will before commencing operations, apply for a seller's permit.

13. Indemnification Agreement: To the fullest extent permitted by local, state and/or federal law, the City shall not assume any liability whatsoever with respect to having issued a Commercial Cannabis Permit or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any Commercial Cannabis Permit, the applicant is to execute a separate Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the Commercial Cannabis Permit, the Commercial Cannabis Permittee's Commercial Cannabis Activities, and any action taken by the Cannabis Permittee. The Indemnification Agreement shall include the defense of the City and reimbursement of all fees, costs and expenses incurred by the City related to any action arising from the Agreement.

14. Payment of Application Fee: Each applicant shall pay the applicable fee(s) pursuant to this Chapter.

B. Background Check. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes City authorities to access state and local summary criminal history information for employment, licensing, or certification purposes; and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, manager, supervisor, employee, contract employee or who otherwise works in a commercial cannabis business must submit fingerprints and other information deemed necessary by the Colton Police Department, or the City's law enforcement agency, for a background check. No person shall be issued a permit to operate a commercial cannabis business unless they have first cleared the background check, as determined by the City, the Colton Police Department. A fee for the cost of the background investigation, which

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) shall be the actual cost to the City to conduct the background investigation, as it deems necessary and appropriate, shall be paid at the time the application for a Commercial Cannabis Permit is submitted.

C. The City Manager may adopt any procedure(s) to supplement the initial application process. The City Manager is authorized to prepare the necessary applications, forms, adopt any necessary rules to the application, regulations and processes, and solicit applications.

D. Any Applicant whose 'ownership' includes a person with a past plea or verdict of guilty or a conviction following a plea of nolo contendere for operating a non-licensed cannabis business shall be disqualified from receiving a Commercial Cannabis Permit. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.095 Evidence of Cannabis Employee Background Check Required.

A. Any person who is an employee or who otherwise works within a commercial cannabis business must be legally authorized to do so under applicable state law.

B. Commercial cannabis business owners and operators shall be required to provide the Chief of Police with evidence of the completion of a criminal background check for all persons in their employ.

C. The criminal background checks completed by commercial cannabis business employers must at a minimum identify the following:

1. Whether the individual applying for employment has ever been convicted of a violent felony as defined by California Penal Code 667.5, or equivalent offenses in other states;

2. Whether the individual applying for employment has ever been convicted of a crime involving dishonesty, fraud or deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in California Penal Code Sections 186.11, 470, 484, and 504a, respectively; or equivalent offenses in other states; or

3. Whether the individual applying for employment has ever been convicted of the illegal use, possession, transportation, distribution or similar activities related to controlled substances, as defined in the Federal Controlled Substances Act, not including cannabis-related

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) offenses for which the conviction occurred after the passage of the Compassionate Use Act of 1996.

D. Evidence of a conviction of any the offenses enumerated in Section 5.54.095(c) shall be grounds for denial of employment. Employers who wish to hire an individual notwithstanding this rule shall apply to the Chief of Police, who at his/her sole discretion may issue a written waiver.

E. Violation of this section shall be grounds for immediate suspension of the business' operating permit, pending a hearing before the Community Development Director and the Chief of Police within 30 days for a final determination of the status of the permit. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.100 Application Review, Scoring, and Selection Process; Permit Issuance.

A. Phase One. Once the City determines that a complete and timely initial application has been submitted, the application will be subjected to review and initial scoring. A total of one thousand points are available in the initial scoring (Phase Two).

B. Phase Two. The initial review and scoring is done by the team of professionals assigned by the City Manager. The applications will be evaluated on the following criteria:

1. Business Plan (five hundred points).
a. Operations and financial pro forma (one hundred points). b. Qualifications of principals (one hundred points).
c. Air Quality Plan, Environmental mitigation plan and benefits (two hundred points).
d. Local enterprise: Business owned or operated by a Colton resident (twenty-five points).
e. Public benefits (seventy-five points) Community contributions and involvement.

2. Safety and Security Plan (two hundred points).

3. Neighborhood Compatibility (two hundred points).

4. Labor and employment plan (one hundred points).

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) C. Applicants who score a minimum of eighty percent or eight hundred points in Phase Two are eligible to undergo the interview process of Phase Three.

D. Phase Three. Phase Three is an interview. The applicant shall be provided a reasonable opportunity to present its application at the interview.

E. Notwithstanding anything in this Chapter to the contrary, the City reserves the right to reject any or all applications, at any time in the review process, if it determines it would be in the best interest of the City, taking into account the health, safety and welfare of the community.

F. The City Manager's decision as to the selection of the prevailing candidates shall be final.

G. Being issued a Notice of Selection does not constitute a land use entitlement and does not satisfy the requirements of securing a technical permits for all construction and structural alterations, including building, electrical, plumbing, and mechanical permits, undergoing and passing all building and fire intermittent and final inspections, and securing any other required permits, licenses, or reviews as may be necessary by the relevant departments or government agencies in charge of said permits. Nor does it guarantee that the plans submitted via the application process meet the standards or requirements in the Colton Zoning Ordinance, or any building or fire codes, laws, rules or regulations, or any other permit requirement from other local or state departments or agencies.

H. Applicants shall have no right to a Commercial Cannabis Permit until a permit is actually issued, and then only for the duration of the permit's term. Each applicant assumes the risk that, at any time prior to the issuance of a permit, the City Council may terminate or delay the program created under this Chapter.

I. If an application is denied at any phase, in the event that the City is receiving new applications, a new application may not be filed for one year from the date of the denial.

J. Prior to operating a commercial cannabis business, each person awarded a Commercial Cannabis Permit shall be required to pay a permit fee established by resolution of

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) the City Council, to cover the costs of administering the Commercial Cannabis Permit program created in this Chapter.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.110 Expiration of commercial cannabis permits.

Each Commercial Cannabis Permit issued pursuant to this Chapter shall expire one year after the date of its issuance. Commercial Cannabis Permits may be renewed as provided in this Chapter.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.120 Revocation of Permits.

A. The following are grounds for revocation of a Commercial Cannabis Permit:

1. Failure of a permittee to comply with any requirement imposed by the provisions of this Code, including but not limited to any rule, regulation, condition or standard adopted pursuant to this Chapter, or any term or condition imposed on the Commercial Cannabis Permit, or any provision of state law;

2. Revocation of a state license held by a Responsible Person or permittee of a Commercial Cannabis Permit issued by the City;

3. If the Permittee, its owner(s), manager(s) or a Responsible Person, within the past three years has been sentenced or had a judgment issued in a criminal or civil court proceeding, or has been sanctioned or fined for, enjoined from, or found guilty of or pled guilty or no contest to a charge for engaging in a Commercial Cannabis Activity in the state without the necessary permits and approvals from the applicable state or local jurisdictions;

4. Conviction within the past ten years of the Permittee, its owner(s) or manager(s), or a Responsible Person, including a plea of guilty or no contest, to any the following offenses shall be grounds for revocation of a Commercial Cannabis Permit issued by the City:
a. A violent felony, as specified in Section 667.5(c) of the Penal Code. b. A serious felony, as specified in Section 1192.7(c) of the Penal Code. c. A felony involving fraud, deceit, or embezzlement.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) d. A felony for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.
e. A felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.
f. A felony or misdemeanor involving the illegal possession for sale, sale, manufacture, transportation, or cultivation of a controlled substance occurring after January 1, 2016.

B. If the City Manager determines that a ground for revocation of a Commercial Cannabis Permit exists, the City Manager shall serve written notice of revocation to the Permittee or Responsible Person. The notice may be served on the recipient either personally or by certified first class mail to the address listed on the application. The notice must state the grounds for revocation, the effective date of the decision, and that the permittee has a right to an evidentiary appeal hearing to challenge the revocation decision.

C. The permittee may appeal a revocation decision within 15 days of the date of the notice of revocation. To exercise the right to appeal, the permittee must file with the City Clerk written basis for the appeal, including evidence relating to the grounds for revocation, and the applicable appeal fee. The appeal will be heard by the City Council in accordance with Section

5.54.140. If no timely appeal is filed, the City Manager's decision will be final 15 days after the date on the notice of revocation. If a timely appeal is filed in accordance with this Chapter, then the effective date of the notice is stayed until a decision is made after the hearing on the appeal. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.130 Renewal Applications.

A. An application for renewal of a Commercial Cannabis Permit and renewal fee shall be filed with the City Manager's office prior to, but not more than one hundred twenty days before, the expiration date of an active and current permit.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) B. The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Chapter.

C. Any permittee submitting a renewal application less than sixty calendar days before permit expiration may be required to pay a late renewal application fee, as established by resolution of the City Council.

D. To ensure on-going compliance with the initial screening criteria, the renewal application may be required to contain all the information required for new applications.

E. An application for renewal of a Commercial Cannabis Permit may be denied if any of the following exists:

1. Any of the grounds for denial of an application or revocation of a permit

2. The Commercial Cannabis Permit is suspended or revoked at the time of the renewal application submittal.

3. The commercial cannabis business has not been in regular and continuous operation in the four months prior to the renewal application.

4. The permittee fails or is unable to renew its State of California license.

5. The permittee made a false, misleading, or fraudulent statement or omission of fact in the renewal application.

F. The City Manager is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager is authorized to impose additional conditions to a renewal permit, if it is determined to promote compliance with state or local laws and regulations or otherwise to preserve the public health, safety or welfare. Appeals of the decision of the City Manager shall be handled pursuant to the provisions of Section 5.54.110 of this Chapter.

G. If a renewal application is denied, the permittee may file a new application pursuant to this Chapter no sooner than one year from the date of the rejection and only if and when the City is receiving new applications.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.140 Effect of State License Suspension, Revocation, or Termination.

A. Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a commercial cannabis business to operate within the City, unless and until the State of California, or its respective department or division, reinstates or reissues the State license.

B. Should the State of California, or any of its departments or divisions, revoke or terminate the license of a commercial cannabis business operating in the City, such revocation or termination shall also revoke or terminate the ability of a commercial cannabis business to operate within the City.

C. Permittee shall notify the City Manager in writing within five days of suspension or revocation of a license issued by the State of California, or by any of its departments or divisions.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.150 Appeals.

A. Notice of and Time to Appeal and Effect of Timely Appeal.

1. A permittee of a commercial cannabis business may appeal a decision of the City Manager made pursuant to this Chapter to suspend, revoke, condition, or not renew a permit.

Appeals are made by filing with the City Clerk a written Notice of Appeal within fifteen calendar days from the date of service of the notice issued by the City Manager of his or her decision.

Date of service shall mean the date when a notice or written decision was personally delivered to the permittee or the date when the notice was sent by certified, first class mail. Unsuccessful applicants have no right of appeal.

2. The Notice of Appeal shall be in writing and signed by the person making the appeal ("appellant"), or his or her legal representative, and shall contain the following:
a. Name, address, and telephone number of the appellant. b. Specify the decision, action, or a particular part thereof, made by the City

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) Manager that is the subject of the appeal.
c. Include a true and correct copy of the notice of decision issued by the City Manager which is the subject of the appeal.
d. State with specificity the reasons and grounds for making the appeal, including, but not limited to, a statement of facts upon which the appeal is based in sufficient detail to enable the City Council, or any appointed hearing officer, to understand the nature of the controversy, the basis of the appeal, and the relief requested. e. All documents or other evidence pertinent to the appeal that the appellant requests the considered at the appeal hearing.
f. An appeal fee, as established by resolution of the City Council.

3. Failure to file a timely Notice of Appeal constitutes a waiver of the right to appeal rendering the City Manager's notice of revocation, nonrenewal, suspension and/or other action final and binding. If no appeal is timely filed in the event of a decision of nonrenewal, the Commercial Cannabis Permit shall expire at the conclusion of the term of the permit. If no appeal is timely filed in the event of a decision of suspension or revocation, the suspension or revocation shall become effective upon the expiration of the period for filing a written Notice of Appeal.

4. In the event a written Notice of Appeal is timely filed, the decision made by the City Manager regarding the nonrenewal, suspension, revocation, or other appealed action, will remain in effect and no cannabis activity may occur on the property until such time as the City Council or an appointed hearing officer or body has rendered a decision. .

B. Review by City Council; Appeal Hearing and Proceedings.

1. The City Council or its appointed hearing officer or body will decide timely appeals. The appellant(s) listed on the written Notice of Appeal shall be notified in writing of the date, time, and location of the hearing at least ten calendar days before the date of the hearing.

2. All requests by an appellant to continue a hearing must be submitted to the City Clerk in writing no later than three business days before the date scheduled for the hearing. The

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) City Council or its appointed hearing officer or body may continue a hearing for good cause or on its own motion.

3. The City Council shall preside over the hearing on appeal, or at the City Council's discretion, the City Council may appoint a hearing officer or body to conduct the hearing.

4. At the date, time and location set forth in the notice of appeal hearing, the City Council, or its appointed hearing officer or body, shall hear and consider the testimony and any documentary evidence properly submitted for consideration.

5. Appeal hearings are informal, and formal rules of evidence and discovery do not apply. However, rules of privilege shall be applicable to the extent they are permitted by law, and irrelevant, collateral, undue, and repetitious testimony may be excluded. The City Manager's decision will be upheld only if a preponderance of the evidence supports the nonrenewal, suspension, or revocation.

C. Final Decision.

1. Following the conclusion of the appeal hearing, the City Council, or its appointed hearing officer or body, shall determine if any ground exists for the nonrenewal, suspension or revocation of a Commercial Cannabis Permit or other action subject to appeal under this Chapter. If the City Council, or its appointed hearing officer or body, determines that no grounds for denial, nonrenewal, suspension, revocation, or other action exist, the City Manager's notice of decision shall be deemed vacated. If the City Council, or its appointed hearing officer or body, determines that one or more of the reasons or grounds enumerated in notice of decision exists, the City Manager's decision may be affirmed or modified.

2. The decision of the City Council, or its appointed hearing officer or body, is the final administrative decision and subject to judicial review within the time limits set forth in California Code of Civil Procedure Section 1094.6.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.160 Commercial Cannabis Permit—Non-assignable and Non-transferable.

A. A Commercial Cannabis Permit issued under this Chapter is valid only as to the

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) permittee and approved location and is non-transferable to other persons, projects or locations.

B. No Commercial Cannabis Permit may be sold, transferred or assigned by a permittee, or by operation of law, to any other person, persons, or entities. Any such sale, transfer, or assignment, or attempted sale, transfer, or assignment shall be deemed to constitute a voluntary surrender of such permit and such permit shall thereafter be null and void, except as set forth in this Chapter.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.170 Change in Location of Commercial Cannabis Business.

No permittee shall change the location of the commercial cannabis business specified in the Commercial Cannabis Permit until any such change of location is approved by the City Manager. The proposed location shall meet all the requirements under this Code, including but not limited to this Chapter and the Colton Zoning Ordinance. The proposed location shall be reviewed and evaluated using the same review criteria and procedure as used and relied on under the initial application process, including a public meeting. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.180 Changes in Ownership of Commercial Cannabis Business.

A. No permittee shall transfer ownership or control of a commercial cannabis business unless and until the proposed new owner submits all required application materials and pays all applicable fees, and the proposed new owner independently meets the requirements of this Chapter such as to be entitled to the issuance of an original Commercial Cannabis Permit.

B. A substantial change in the ownership of a permittee business entity (changes that result in a change of 51% or more of the original ownership), must be approved by the City Manager after completion of the application process under this Chapter, including evaluation under any applicable review criteria used and relied upon during the original review and selection process.

C. A permittee may change the form of business entity without applying for a new Commercial Cannabis Permit provided that either:

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24)

1. The ownership of the new business entity is the same as the original permit holder business entity; or

2. If the original permittee is an unincorporated association, mutual or public benefit corporation, agricultural or consumer cooperative corporation and subsequently transitions to or forms a new business entity as allowed under the MAUCRSA, provided that the Board of Directors (or in the case of an unincorporated association, the individual(s) listed on the City permit application) of the original permittee entity are the same as the new business entity.

D. Although a new Commercial Cannabis Permit is not required in the two circumstances listed in this subsection (C), the permittee shall notify the City in writing of the change within ten calendar days of the change and obtain an amendment to the original Commercial Cannabis Permit.

E. No permittees may avail themselves of the provisions of this section if the City Manager, or his or her designee, has notified the permittee that the Commercial Cannabis Permit has been or may be suspended, revoked, or not renewed.

F. Failure to comply with this section is grounds for revocation of a Commercial Cannabis Permit.

G. Any attempt to transfer a Commercial Cannabis Permit either directly or indirectly in violation of this section is hereby declared void and such a purported transfer is a ground for revocation of the permit.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.190 Change in Ownership when the Permittee is a Partnership or Corporation.

A. One or more proposed partners in a partnership granted a Commercial Cannabis Permit may make application to the City Manager, together with the fee established by the City Council, to amend the original application, providing all information as required for partners in the first instance and, upon approval thereof, the transfer of the interests of one or more partners to the proposed partner or partners may occur. If the permittee is a partnership and one or more of the partners should die, one or more of the surviving partners may acquire, by purchase or

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) otherwise, the interest of the deceased partner or partners without effecting a surrender or termination of such permit, and in such case, the Commercial Cannabis Permit, upon notification to the City Manager, shall be placed in the name of the surviving partners.

B. If the Commercial Cannabis Permit is issued to a corporation, stock may be sold, transferred, issued, or assigned to stockholders who have been named on the application. If fifty- one percent or more of any stock is sold, transferred, issued, or assigned to a person not listed on the application as a stockholder, the permit shall be deemed terminated and void; provided, however, the proposed stock purchaser transferee may submit to the City Manager, together with the fee established by the City Council, an application to amend the original application providing all information as required for stockholders in the first instance under this Chapter, and, upon approval thereof, the transfer may then occur.

C. All changes in ownership as described in this section, with the exception of transfers occurring due to death of a partner or stockholder, must be submitted to the City within thirty calendar days, along with any organizational documents reflecting the changes. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.200 Changes in Name Only.

A. The permittee shall advise the City Manager within fifteen calendar days of all changes of name or designation under which the business is to be conducted. The change of name or designation shall be accompanied by a non-refundable fee established by resolution of the City Council to defray the costs of reissuance of the Commercial Cannabis Permit.

B. No permittee shall operate, conduct, manage, engage in, or carry on the business of a commercial cannabis business under any name other than the name of the commercial cannabis business specified in the permit.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.210 Alterations to approved facility.

All required City approvals, plan approvals, and permits must be obtained before causing, allowing, or permitting alterations to or extensions or expansions of the existing building(s),

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) structure(s), or portions thereof, approved as a location for a commercial cannabis business.

Alterations, extensions, or expansions shall comply with all applicable laws, regulations and standards, including those concerning building and fire safety, as well as occupancy. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.220 City Business License.

Prior to commencing operations, a Permittee of a commercial cannabis business shall obtain a City business license, in accordance with Colton City Code Section 5.02, et seq. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.230 Permits and Inspections Prior to Commencing Operations.

Prior to commencing operations, a commercial cannabis business shall be subject to a mandatory inspection of the premises and must obtain approval of a conditional use permit and all required building permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. The permittee shall also obtain all required Building Safety Department approvals, Fire Department approvals, Health Department approvals and any other permit or approval required by this code or applicable law. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.240 Limitations on City's Liability.

A. To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a Commercial Cannabis Permit or otherwise approving the operation of any commercial cannabis business. As a condition to the approval of any Commercial Cannabis Permit, the applicant shall be required to meet all of the following conditions before they can receive the Commercial Cannabis Permit:

1. They must execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend at the applicant's sole cost and expense, and hold harmless the City, and its officers, officials, employees, representatives, attorneys, and agents from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to the City's issuance of the Commercial Cannabis Permit, the City's decision to approve

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) the operation of the commercial cannabis business or activity; the process used by the City in making its decision to issue, approve or deny a permit; or the alleged violation of any federal, state or local laws by the commercial cannabis business or any of its officers, employees or agents.

2. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City's Risk Manager.

3. Reimburse the City for all costs and expenses, including but not limited to attorney fees and costs and court costs, which the City may be required to pay as a result of any legal challenge related to the City's approval of the applicant's Commercial Cannabis Permit, or related to the City's approval of the applicant's Commercial Cannabis Activity. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder.

B. The terms and provisions as enumerated in this section related to indemnification and limitation on the City's liability shall be an explicit term of a Commercial Cannabis Permit that an applicant and a permittee shall agree to in order for same to be valid. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.250 Records and Recordkeeping.

A. Each owner and operator of a commercial cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis, or at any time upon reasonable request of the City, each commercial cannabis business shall file a sworn statement detailing the commercial cannabis business' revenue and number of sales during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross revenues for each month, and all applicable taxes paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business' operations conducted by an independent certified public accountant. Each permittee shall be subject to a regulatory compliance review and

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) financial audit as determined by the City Manager, or his or her designee.

B. Each owner and operator of a commercial cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the commercial cannabis business, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by the commercial cannabis business. The register required by this paragraph shall be provided to the City Manager upon request.

C. All records collected by a permittee pursuant to this Chapter shall be maintained for a minimum of seven years and shall be made available by the permittee to the agents or employees of the City upon request, except that private medical records shall be made available only pursuant to a properly executed search warrant, subpoena, or court order.

D. Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPAA) regulations, each commercial cannabis business shall allow City officials to have access to the business's books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four hours after receipt of the City's request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City's software and hardware. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.260 Restriction on Alcohol and Tobacco Sales, Dispensing or Consumption.

No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco products on or about the premises of a commercial cannabis business. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.270 Fees and Charges.

A. All related fees and charges associated with the operation of a commercial cannabis business as referenced or determined by this Chapter shall be established by Resolution

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) of the City Council, which may be amended from time to time.

B. No person may commence or continue any Commercial Cannabis Activity in the City, without timely paying in full all fees and charges required for the operation of a Commercial Cannabis Activity, and as mandated by this Chapter.

C. All commercial cannabis businesses authorized to operate under this Chapter shall pay all sales tax, use tax, business tax and other applicable taxes, and all license, registration, and other fees required under federal, state and local law. Each commercial cannabis business shall cooperate with the City with respect to any reasonable request to audit the commercial cannabis business' books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of fees, costs or taxes required to be paid during any period.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.280 Operating Requirements Applicable to all Commercial Cannabis Businesses.

A. No commercial cannabis business may be located within a six-hundred-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, a day care center, or a youth and recreation center, which is in lawful existence at the time a successful application for a Commercial Cannabis Permit was submitted to the City. The distance specified in this section shall be the horizontal distance measured in a straight line from the property line of the school or other protected use to the closest property line of the lot on which the commercial cannabis business is located, without regard to intervening structures.

B. Commercial cannabis businesses may operate only during the hours established by resolution of the City Council and as specified in the Commercial Cannabis Permit issued by the City.

C. Cannabis shall not be consumed by anyone on the premises of any commercial cannabis business, unless explicitly authorized by a City ordinance, resolutions, rules, regulations or pursuant to explicit terms of a Commercial Cannabis Permit.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) D. No cannabis or cannabis products shall be visible from the exterior of any property issued a Commercial Cannabis Permit or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time.

E. Each commercial cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City. The commercial cannabis business shall ensure that such information is compatible with the City's record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager prior to being used by the permittee.

F. All cannabis and cannabis products sold, tested, distributed or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the State of California and local regulations.

G. No physician shall be permitted in any commercial cannabis business at any time for the purpose of evaluating patients for the issuance of a medicinal cannabis recommendation or medicinal cannabis identification card where applicable.

H. All commercial cannabis operators shall have a manager on the premises at all times during hours of operation.

I. Each commercial cannabis business shall provide the City Manager with the name, telephone number (both landline and mobile) of an on-site manager or owner to whom emergency notice may be provided at any hour of the day.

J. Signage and Notices:

1. In addition to the requirements otherwise set forth in this section, business identification signage for a commercial cannabis business shall conform to the requirements of state law and the City Code, including, but not limited to, the requirements for a City sign permit

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) and applicable zoning laws regulating signs.

2. Each commercial cannabis business premises shall be visibly posted with clear and legible notices indoors indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited.

K. Persons under the age of twenty-one years shall not be allowed on the premises of a commercial cannabis business, except if pertaining to sales of cannabis for medicinal use. It shall be unlawful and a violation of this Chapter for any person to employ any person at a commercial cannabis business who is not at least twenty-one years of age.

L. Odor control devices and techniques shall be incorporated in all commercial cannabis businesses to ensure that odors from cannabis are not detectable off-site. Commercial cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. As such, commercial cannabis businesses must install and maintain the following equipment, or any other equipment which the City Engineer, Public Works Director or Building Official determines is a more effective method or technology:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;

2. An air system that creates negative air pressure between the commercial cannabis business's interior and exterior, so that the odors generated inside the commercial cannabis business are not detectable on the outside of the commercial cannabis business.

M. The original Commercial Cannabis Permit issued by the City pursuant to this Chapter, the City issued business license, and the state-issued Seller's Permit shall be posted inside the commercial cannabis business in a location readily-visible to any City, County or State

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) employee, official, or agent authorized to enforce the City's Code, or applicable cannabis-related laws.

N. The permittee of a commercial cannabis business shall prohibit loitering by persons outside on the premises, and is required to enforce this prohibition within its premises and adjacent public areas, including cooperating with the City's law enforcement agency dispatched to enforce same. The placement and use of no loitering signs shall be included as part of any submittal and depicted on a business or operational plan.

O. Prior to the operation of a commercial cannabis business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits and approvals from the relevant City or County department or division which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate.

P. Permittees shall adhere to all applicable operating procedures, including those submitted as part of the initial application process, and pursuant to those established in applicable State of California laws, regulations, and policies.

Q. Permittees must comply with all applicable local, state and federal laws and regulations pertaining to persons with disabilities.

R. No commercial cannabis business may discriminate or exclude patrons in violation of local, state and federal laws and regulations.

S. Each commercial cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the commercial cannabis business can be provided. Each commercial cannabis business shall also provide this information to all businesses and residences located within four hundred feet of the commercial cannabis business.

T. The owner, manager, and community relations representative from each commercial cannabis business holding a Commercial Cannabis Permit shall, if requested by the City Manager, attend a quarterly meeting with the interested parties to discuss costs, benefits,

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) and other community issues arising as a result of implementation of this Chapter. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.290 Additional operating requirements for cultivation facilities.

A. The cultivation of all cannabis must occur indoors, and outdoor cultivation is prohibited. Cultivation should not occur in any temporary greenhouse structures. Any greenhouse structure that is not of a permanent nature, i.e. is constructed of fabric, metal or plastic, is prohibited. All cultivation shall occur in secure structures constructed in accordance with the California Building Code.

B. From a public right-of-way, there should be no exterior evidence of cannabis cultivation except for any signage authorized by this code.

C. The general public is not permitted on the cannabis cultivation licensed premises except for the agents, applicants, managers, employees, and volunteers of the cannabis cultivation permittee and agents or employees of the City.

D. A permittee shall only be allowed to cultivate the square feet of canopy space permitted by state law and in the permit issued for the premises.

E. Cannabis cultivation shall be conducted in accordance with state and local laws related to electricity, water usage, water quality, discharges, and similar matters.

F. Permittee shall comply with all applicable federal, state and local laws and regulations regarding use and disposal of pesticides and fertilizers.

G. Pesticides and fertilizers shall be properly labeled and stored to avoid contamination through erosion, leakage or inadvertent damage from pests, rodents or other wildlife.

H. The cultivation of cannabis shall at all times be operated in such a way as to ensure the health, safety, and welfare of the public, the employees working at the commercial cannabis business, neighboring properties, and the end users of the cannabis being cultivated; to protect the environment from harm to waterways, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) I. Prior to transportation, a cannabis cultivation licensee shall package and seal all cannabis or cannabis products in tamper-evident packaging and use a unique identifier, such as a batch and lot number or bar code, to identify and track the cannabis or cannabis products.

J. All applicants for a Commercial Cannabis Permit pertaining to cannabis cultivation shall submit the following in addition to the information generally otherwise required for a commercial cannabis permit:

1. A cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel; a description of the cultivation activities and schedule of activities during each month of growing and harvesting; or an explanation of growth cycles and anticipated harvesting schedules for all- season harvesting.

2. A description of a legal water source, irrigation plan, and projected water use.

3. Identification of the source of electrical power and plan for compliance with applicable Building Codes and related codes.

4. Plan for addressing odor and other public nuisances that may derive from the cultivation site.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.300 Additional Operating Requirements for Cannabis Manufacturing Businesses.

A. From a public right-of-way, there should be no exterior evidence of cannabis manufacturing except for any signage authorized by this chapter.

B. The general public is not permitted on the cannabis manufacturing premises except for the agents, applicants, managers, employees, and volunteers of the cannabis manufacturing licensee and agents or employees of the City.

C. All cannabis manufacturing shall comply with the standards set by state law.

D. Cannabis Manufacturing Facilities may use heat, screens, presses, steam

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) distillation, ice water, and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts.

E. Cannabis Manufacturing Facilities may use food grade glycerin, ethanol, and propylene glycol solvents to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere.

F. Cannabis Manufacturing Facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.

G. No volatile manufacturing of cannabis shall be permitted in the City. Volatile manufacturing means using any solvent that is or produces a flammable gas or vapor that, when present in the air is sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.310 Additional operating requirements for cannabis distribution.

A. From a public right-of-way, there should be no exterior evidence of Cannabis Distribution except for any signage authorized by this chapter.

B. The general public is not permitted on the Cannabis Distribution licensed premises except for the agents, applicants, managers, employees, and volunteers of the Cannabis Distribution licensee and agents or employees of the City.

C. Permittee for cannabis distribution shall only procure, sell, or transport cannabis or cannabis products that are packaged and sealed in tamper-evident packaging using unique identifiers, such as batch and lot numbers or bar codes, to identify and track the cannabis or cannabis products.

D. Permittee shall maintain a database and provide a list of the individuals and vehicles authorized to conduct transportation on behalf of the cannabis distribution business pursuant to Commercial Cannabis Permit issued by the City.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) E. Individuals authorized to conduct transportation on behalf of the cannabis distribution business shall have a valid California Driver's License.

F. Individuals transporting cannabis or cannabis products on behalf of the cannabis distribution business pursuant to a Commercial Cannabis permit shall maintain a physical copy of the transportation request and invoice and shall make them available upon request of agents or employees of the City requesting documentation.

G. During transportation, the individual conducting transportation on behalf of the cannabis distribution business shall maintain a copy of the Commercial Cannabis Permit and shall make it available upon the request of agents or employees of the City requesting documentation.

H. Cannabis or cannabis products shall be transported only in a vehicle that is (i) insured at or above the legal requirement in California, (ii) capable of securing (locking) the cannabis or cannabis products during transportation, and (iii) capable of being temperature controlled if perishable cannabis products are being transported ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.320 Additional Operating Requirements for Cannabis Testing.

A. Cannabis testing shall take place within an enclosed locked structure.

B. From a public right-of-way, there should be no exterior evidence of cannabis testing except for any signs authorized by this Chapter.

C. All cannabis testing shall be performed in accordance with state law.

D. Permittee shall adopt a standard operating procedure using methods consistent with general requirements established by the International Organization for Standardization, specifically ISO/IEC 17025, to test cannabis or cannabis products, and shall operate in compliance with state law at all times.

E. Permittee shall be accredited by a body that is a signatory to the International Laboratory Accreditation Cooperation Mutual Recognition Arrangement.

F. Permittee shall establish standard operating procedures that provide for adequate

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) chain of custody controls for samples transferred to the testing laboratory for testing.

G. Permittee shall destroy the remains of samples of any cannabis or cannabis product upon completion of analyses. Destruction shall be done in a manner compliant with state law.

H. Any testing that requires the use of solvents for extraction must comply with Section 68-31 (manufacturing requirements)
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.325 Additional Operating Requirements for Out-of-City Delivery Services.

Prior to commencing operations, a delivery service operating from outside the city shall comply with the following requirements:

1. Obtain from the City a permit authorizing the delivery of cannabis and cannabis products within the City limits. A copy of this permit shall be retained by all drivers.

2. The retail business operating the delivery service shall provide the City Manager or his/her designee with evidence of a valid state license for a commercial cannabis business on whose authorization the delivery service is performing the delivery function.

3. The retail business operating the delivery service shall furnish to the City Manager or his/her designee the year, make, model, color, license plate number, and numerical Vehicle Identification Number (VIN) for any and all vehicles that will be used to deliver cannabis goods.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.326 Permissible Delivery Locations and Customers.

Cannabis delivery businesses located outside of the City permitted to engage in delivery of cannabis and cannabis products inside the City of Colton are subject to the following requirements:

A. A licensed cannabis business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

B. A licensed cannabis business shall comply with all requirements of state and local

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) law pertaining to the cannabis permit and all subsequent policies, procedures and regulations which may be amended by the City Manager or his or her designee from time to in order to enforce this Chapter.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.330 Personal Cannabis Cultivation.

A. Outdoor Cultivation.

1. It is hereby declared unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any parcel upon which the person knows, or by exercising reasonable care of diligence, should know that such parcel is being used for outdoor cultivation of cannabis, regardless of whether such cultivation is for medical, commercial, or personal uses.

2. A person may not plant, cultivate, harvest, dry, or process cannabis plants outdoors in any zoning district of the City. No use permit, building permit, variance, or any other permit or entitlement, whether administrative or discretionary, shall be approved or issued for any such use or activity.

B. Indoor Cultivation.

1. It is hereby declared to be unlawful and a public nuisance for any person owning, leasing, occupying, or having charge or possession of any parcel upon which the person knows, or by exercising reasonable care of diligence, should know that such parcel is being used for the cultivation of cannabis plants within a fully enclosed and secure structure on the parcel, except as provided in subsections (2) and (3) of this section.

2. A person may not plant, cultivate, harvest, dry, or process cannabis plants inside any enclosed structure within any zoning district of the City which is not either a private residence or an accessory structure to a private residence located upon the grounds of a private residence.

3. In accordance with Health and Safety Code section 11362.2, there shall be no more than six (6) plants of personal cannabis cultivation per residence, regardless of the number

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) of people who reside at the residence. The living plants and any cannabis produced by the plants must be kept within the person’s private residence and must be secure in a locked space, and are not visible by normal unaided vision from a public place.

4. All personal cultivation must comply with all local ordinances and state regulations.

( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.340. Promulgation of Regulations, Standards and Other Legal Duties.

A. The City Manager may promulgate additional or supplemental operating requirements applicable to all commercial cannabis businesses to promote the public's safety, welfare or health.

B. The City Manager may establish additional rules, regulations, policies and standards consistent with this Chapter governing the application review and approval process; the issuance, denial or renewal of Commercial Cannabis Permits; the ongoing operation of commercial cannabis businesses and the City's oversight of them; and concerning any other subject determined to carry out the intent and purposes of this Chapter, including without limitation, establishing time periods to solicit applications pursuant to this Chapter, and corresponding deadlines for timely submittals of applications to the City.

C. Additional rules, regulations, policies and standards shall be published on the City's website and maintained and available to the public in the Office of the City Clerk.

D. Rules, regulations, policies, and standards promulgated by the City Manager shall become effective upon date of publication. Commercial cannabis businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.350 Fees Deemed Debt to City.

The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) a debt to the City that is recoverable in any manner authorized by this Code, state law, or in any court of competent jurisdiction.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.360 Responsibility for Violations.

Permittees, their Responsible Persons,managers, including the landowner, lessee, tenant, or any other person who had possession or custody of the property shall be responsible for violations of the laws of the State of California or of the City Code, whether committed by the permittee, or any employee or agent of the permittee, which violations occur on the premises of the commercial cannabis business whether or not the violations occur within the permittee's presence. Any act or omission of any employee constituting a violation of the provisions of this Chapter shall be deemed the act or omission of the permittee for purposes of determining whether the permit shall be revoked, suspended, or not renewed. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.370 Inspections.

A. The City Manager, Police Chief, Fire Marshal and their designees charged with enforcing the provisions of the City Code may enter the location of a commercial cannabis business at any time during regular business hours, without notice, and inspect the location of any commercial cannabis business as well as any recordings and records required to be maintained pursuant to this Chapter or under applicable provisions of state law.

B. It is unlawful for any person having responsibility over the operation of a commercial cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law.

It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this Chapter or under state or local law.
( Ord. No. O-17-19 , § 2, 12-3-2019)

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24)

5.54.380 Violations and Penalties.

A. Any person who violates any provision of this Chapter is guilty of a misdemeanor and subject to the penalties of this Code.

B. It is unlawful for any Permittee of a commercial cannabis business, or its Responsible Person, manager or any other person employed by or working in concert with them or on their behalf, whether directly or indirectly, to continue to operate, conduct, or maintain a commercial cannabis business after the City-issued Commercial Cannabis Permit has been suspended or revoked, or not renewed, pursuant to a non-contested notice of decision issued by the City Manager, or after the issuance of a final order after an appeal hearing.

C. Any commercial cannabis business operated, or residential indoor cannabis cultivation conducted, or any other unpermitted cannabis activity conducted or maintained contrary to the provisions of this Chapter is unlawful and a public nuisance, and the City may, in addition to or in lieu of prosecuting a criminal action, commence an administrative or civil action(s) or proceeding(s), for the abatement, removal and enjoinment thereof, in the manner provided by law, and may take such other steps and may apply to such court or courts as may have jurisdiction to grant such relief to abate, cause cessation, or remove such commercial cannabis business and restrain and enjoin any person from operating, conducting or maintaining a commercial cannabis business contrary to the provisions of this Chapter.

D. In addition to penalties set forth in this Chapter of the City’s Code, an Administrative Citation may be issued by any employee authorized to issue such citations under this Code to any responsible person for any condition caused or permitted to exist in violation of any of the provisions of this Chapter as follows:

1. Each and every marijuana plant cultivated, manufactured, processed, stored, laboratory tested, labeled, retail sold, distributed, or transported in violation of the City of Colton’s Municipal Code shall be subject to immediate imposition of an administrative citation penalty of $1,000.00 per plant per day, which shall not exceed $10,000 per day the plant remains unabated past the abatement deadline set forth in the administrative citation.

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2. A citation issued for a violation of zoning, building, plumbing, electrical, or other similar structural health and safety, or zoning requirements need not include a reasonable time for compliance in the citation when the violation exists as a result of, or to facilitate, the illegal cultivation, manufacturing, processing, storing, laboratory testing, labeling, retail, distribution, or transportation of marijuana.

3. This section shall not be construed to limit administrative fines or penalties that are imposed after notice and reasonable time to correct the violation. A reasonable time to correct a violation, under this Chapter, that does not create an immediate danger to health and safety shall be no less than five (5) days.

E. Each person shall be guilty of a separate offense for each and every day, or part thereof, during which a violation of this Chapter, or of any law or regulation referenced herein, is allowed, committed, continued, maintained or permitted by such person, and shall be punishable accordingly.

F. Whenever in this Chapter any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact of such act or omission.

G. Any violation of this Chapter shall be joint and several with strict liability imposed on any property owner without regard to any elements of mens rea, fault, negligence, or other wrongdoing.

H. The penalties set forth herein are cumulative and in addition to all other remedies, violations, and penalties set forth in this Chapter, the City's Code, or in any other ordinance, laws, rules or regulations of the City, County, or the State of California.

I. Administrative Hearing Requirements: Any Responsible Person who is a legal owner of the Subject Property may substantiate, before an administrative hearing officer, that all of the following are true, shall be given a reasonable period of time for the correction or remedy of the violation prior to the imposition of administrative fines or penalties:

1. A tenant is in possession of the property that is the subject of the administrative action.

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24)

2. The rental property owner or agent can provide evidence that the rental or lease agreement prohibits the commercial cannabis activity.

3. The rental property owner or agent did not know the tenant was engaging in unlawful commercial cannabis activity and no complaint, property inspection, or other information caused the rental property owner or agent to have actual notice of the unlawful commercial cannabis activity.
( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.390 Effect on Other Ordinances.

Except as designated in this Chapter, the provisions of this Chapter shall control for regulation of commercial cannabis businesses as defined herein if other provisions of the Code conflict therewith. This Chapter shall not, however, relieve any person of his or her duty to comply with such laws if additional obligations, duties, or prohibitions are imposed thereby. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.400 Retaliation/Whistleblower Protection.

It shall be unlawful for a permittee of a commercial cannabis business, or its Responsible Person, manager or any other person employed by the permittee, to discriminate in any manner or take adverse action against any Employee in retaliation for exercising rights protected under this section. These rights include, but are not limited to: the right to file a complaint or inform any person about any party's alleged noncompliance with this chapter; and the right to inform any person of his or her potential rights under this section and to assist him or her in asserting such rights. Protections under this section shall apply to any Employee who mistakenly, but in good faith, alleges noncompliance with this chapter. Taking adverse action against an Employee within ninety days of the Employee's exercise of rights protected under this section shall raise a rebuttable presumption of having done so in retaliation for the exercise of such rights. ( Ord. No. O-17-19 , § 2, 12-3-2019)

5.54.410 Revolving Door Prohibition.

A. A local elected official, appointed official or any former employee of the City

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) shall not for a period of one year after leaving that office, position or employment, act as an agent or attorney for, consultant or otherwise represent, for compensation , any other person, by making any oral or written communication to the City Council, or any committee, subcommittee, Board, Commission or present member thereof, or any officer or employee of the City, if the appearance or communication is made for the purpose of influencing administrative or legislative action, or influencing any action or proceeding involving issuance, amendment, awarding, or revocation of a permit, license, grant or contract, or the sale or purchase of goods or property, as described in this Chapter.

B Subdivision (A) does not apply to an individual who is, at the time of the appearance or communication, an elected official, a board member, officer, or employee of another local government agency or an employee or representative of a public agency and is appearing or communicating on behalf of that agency.
( Ord. No. O-17-19 , § 2, 12-3-2019)

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24)

5.54.420 Process integrity provision.

All permit applicants listed on the application or any persons lobbying on their behalf shall comply with the Process Integrity Standards adopted by separate Resolution of the City Council. Failure to abide by the Process Integrity Standards may result in disqualification from an existing cannabis permit review process or revocation if it is later determined that the applicant or any person associated with the application or any third party lobbying on their behalf has violated the standards.
( Ord. No. O-17-19 , § 2, 12-3-2019)

SECTION 3. CEQA. Based on the entire record before the City Council, and all written and oral evidence presented to the City Council, the City Council hereby finds that this Ordinance is exempt from review under the California Environmental Quality Act (“CEQA”), pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Co de of Regulations, Title 14, Article 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. The City Council hereby declares that it would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof. By enacting this Ordinance, the City ordains that nothing herein shall be deemed to conflict with or duplicate federal or state law, or otherwise or to license any activity that is prohibited thereunder except as mandated by such laws.

SECTION 5. Certification; Publication. The City Clerk shall certify the passage of this Ordinance and shall cause the same to be entered in the book of original ordinances of said City;

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24) shall make a minute passage and adoption thereof in the records of the meeting at which time the same is passed and adopted; and shall, within fifteen (15) days after the passage and adoption thereof, cause the same to be published as required by law, in a local newspaper of general circulation and which is hereby designated for that purpose.

SECTION 6. Effective Date. This Ordinance shall become effective thirty (30) days from and after its adoption.

PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the _____ day of ____________ 2024, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

______________________________________
FRANK J. NAVARRO, MAYOR

ATTEST:

________________________________________

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Attachment: Ordinance O-18-24 - Revision of Chapter 5.54 (Final Draft) (4729 : Commercial Cannabis Ordinance No. O-18-24)

ITEM NO. 2

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STEPHANIE VARGAS, CHIEF DEPUTY CITY CLERK
SUBJECT: APPROVAL OF MINUTES FOR THE CITY COUNCIL REGULAR MEETING HELD ON NOVEMBER 05, 2024, ON FILE IN THE
OFFICE OF THE CITY CLERK.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Approval of Minutes for the City Council Regular Meeting held on November 05, 2024.

BACKGROUND

Minutes for the City Council Regular Meeting held on November 05, 2024.

FISCAL IMPACTS

None

ATTACHMENT

1. Draft Minutes 11-05-2024
2 Packet Pg. 221
November 5, 2024 Regular City Council Meeting 1 -

CITY COUNCIL/COLTON UTILITY AUTHORITY/

COLTON PUBLIC FINANCING AUTHORITY AND COLTON HOUSING AUTHORITY

REGULAR MEETING MINUTES

November 5, 2024

Regular Meeting held on the above -given date at 6 :00 p.m. in the Council Chamber of City Hall, with Mayor Navarro presiding.

INVOCATION: Pastor Johnny De La Rosa – Echoes of Love Ministries FLAG SALUTE: Veterans of Foreign Wars (VFW) – Marine Veteran Bernie Moyeda

CITY COUNCIL ROLL CALL

Council Members Present Staff Present
Frank J. Navarro, Mayor William R. Smith, City Manager David J. Toro Carlos Campos, City Attorney
Kelly J. Chastain Stephanie M. Vargas, Chief Deputy City Clerk Dr. Luis S. González
John R. Echevarria, MPT

Council Members Absent
None

CEREMONIAL MATTERS
Presentations, Awards, Proclamations
 Presentation – Supervisor Joe Baca Jr.

San Bernardino County, Fifth District, Supervisor Joe Baca Jr presented a check to the City of Colton in the amount of $25,000 for the purpose of investing into Ken Hubbs Little League.

 Recognition – Fiesta Village 50th Anniversary Celebration Mayor Navarro shared a brief history of Fiesta Village’s history and then presented a recognition certificate to Fiesta Village’s General Manager, David Crandell, Assistant General Manager, Maria Young, and Executive Sales Coordinator, Karissa Mayorga.

 Recognition – 2023 Police Office of the Year – David Perez Police Chief, Anthony Vega, shared a brief history of Police Officer David Perez’s, career development and accomplishments and then recognized him by presenting him with the “2023 Police Officer of the Year” recognition certificate. Officer Perez accepted the certificate and proceeded to express his appreciation for being recognized.

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Attachment: Draft Minutes 11-05-2024 (4738 : Draft Minutes 11-05-24) November 5, 2024 Regular City Council Meeting 2 -
 Recognition – Hometown Heroes Program – New Military Banner Installation Heidi Strutz, Recreation Services Manager introduced Rudy C. Ramirez, who served in the United States Marine Corps, as the first recipient of a new Military Banner Installation. After inviting Rudy’s son, Mark Ramirez, to speak at the podium in order to share a brief history of Rudy’s many accomplishments, Heidi presented Rudy with a commemorative banner, which replicates the banner, which was recently installed, on Colton Ave, between C and D Street. Joe Baca Jr. also presented Rudy with a plaque of recognition on behalf of the County of San Bernardino.

Heidi proceeded to recognize the late Kenneth J. Koperski, who served in the United States Air Force and, more recently, served as a Councilmember for the City of Colton. Heidi presented Koeprski’s family with a commemorative banner, which replicates the installation of the new Memorial Military Banner which as been installed on 9th Street between E Street and D Street. Heidi invited Koperski’s grandson, Kyle Koperski, to the podium to share a brief history of Koperski’s history and accomplishments. Joe Baca Jr. also presented the Koperski family with a certificate of appreciation on behalf of the County of San Bernardino.

MAYOR AND COUNCIL ITEMS

POSSIBLE CONFLICT OF INTEREST DISCLOSURES FOR THE COUNCIL MEETING OF NOVEMBER 05, 2024.

GIFT DISCLOSURES
Mayor Navarro asked the members present if there were any agenda items that were a conflict of interest pursuant to CMC Section 2.04.030. None disclosed.

AB 1234 ORAL REPORTS
Mayor Navarro asked the members present if there were any brief reports on meetings attended at the expense of the City. (GC Section 53232.3(d).

Councilmember Chastain reported that she attended a League of CA Cities event in October 2024.

APPOINTMENTS
None

MAYOR AND COUNCIL DISCUSSION ITEMS
None

PUBLIC HEARINGS
None

BUSINESS ITEMS
None

***************************************************************************

PUBLIC COMMENT
The following community members addressed the Council: Heidi Strutz and Janel Ruiz.

***************************************************************************

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Attachment: Draft Minutes 11-05-2024 (4738 : Draft Minutes 11-05-24) November 5, 2024 Regular City Council Meeting 3 -

CONSENT CALENDAR
Mayor Navarro presents the Consent Calendar Items 1 through 8.

Motion and Second by CM González/ CM Toro to approve consent calendar Items 1 through 8.

Vote: Unanimous, Motion Passes

(1) Minutes - Approval of Minutes for the City Council Regular Meeting Held on October 15, 2024, on File in the Office of the City Clerk.

(2) Warrants - Approve voucher numbers 215076 to 215128 dated 09/26/2024 and totaling $91,865.42; vouchers numbers 215129 to 215210 dated 09/30/2024 and totaling $92,301.34; replacement checks 215213 to 215215 and totaling $3,068.31; vouchers numbers 215211 to 215342 dated 10/03/2024 and totaling $1,308,302.95; vouchers numbers 215343 to 215458 dated 10/10/2024 and totaling $801,209.62; wires dated 10/13/24 totaling $3,704,374.28 and payroll disbursement listing dated 08/31/2024 to 09/13/2024 and totaling $1,270,184.28.

(3) Contract Amendment - KOA Corporation (Lochner Company) - Approve Amendment No. 3 for the KOA Corporation Professional Service Agreement for the Reche Canyon Road Realignment to Hunts Lane Project.

(4) Contract Award - Performance Construction & Painting - Approve Contract Award to Performance Construction & Painting for the Library Restroom Remodel Project.

(5) Grant - Office of Traffic Safety (OTS) - Approve and Adopt a Resolution Accepting Office of Traffic Safety Grant for FY 24/25, RESOLUTION NO. R-111-24.

(6) Notice of Completion - Corporate Yard Block Wall Project - Approve Notice of Completion for the Corporate Yard Block Wall Project.

(7) Ongoing Emergency - AMPP - Affirm Ongoing Emergency at Agua Mansa Power Plant.

(8) Second Reading of Ordinance No. O-16-24 - Approve Second Reading of an Ordinance of the City Council of the City of Colton, Amending Resolution R-15-00 on Personnel Rules and Regulations for the City of Colton and Repealing in it's Entirety Ordinances and Resolutions Previously Referenced in Resolution R-15-00, ORDINANCE NO. O-16-24.

MAYOR AND COUNCIL ORAL REPORTS AND COMMENTS
Comments from Mayor, Council and City Treasurer on various issues and activities throughout the community.

CITY MANAGER'S REPORTS
None

CITY ATTORNEY REPORTS
City Attorney, Carlos Campos, reported that at the council meeting of October 1, 2024, under closed session Item No. A, in the case of Yasmin Mendoza v. City of Colton, the City Council authorized settlement. Carlos reported that the matter was settled for the amount of $94,500.

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ADJOURNMENT

At 6:45 p.m. Mayor Navarro adjourned the Regular Council Meeting in memory of Colton resident s, Delores Nunez who recently passed away. The Mayor called for a moment of silence in her honor.

__________________________
Stephanie M. Vargas, CMC, CPMC
Chief Deputy City Clerk

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ITEM NO. 3

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: APPROVE US BANK VOUCHER DATED 09/25/2024 AND
TOTALING $67,513.14; REPLACEMENT CHECKS 215459 TO 215460 TOTALING $4,431.36; VOUCHER NUMBERS 215461 TO 215569
DATED 10/17/2024 AND TOTALING $1,108,608.17; VOUCHERS
NUMBERS 215570 TO 215690 DATED 10/24/2024 AND TOTALING
$1,220,400.77 AND PAYROLL DISBURSEMENT LISTING DATED
09/14/2024 TO 09/27/2024 AND TOTALING $1,178,185.31.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Approve US Bank voucher dated 09/25/2024 and totaling $67,513.14; replacement checks 215459 to 215460 totaling $4,431.36; voucher numbers 215461 to 215569 dated 10/17/2024 and totaling $1,108,608.17; vouchers numbers 215570 to 215690 dated 10/24/2024 and totaling $1,220,400.77 and payroll disbursement listing dated 09/14/2024 to 09/27/2024 and totaling $1,178,185.31.

BACKGROUND

The California Government Code requires that the legislative body ratify all vouchers issued in the course of conducting City business.

ISSUES/ANALYSIS

All vouchers and related backup documentation have been reviewed by the City Treasurer.

FISCAL IMPACTS

3 Packet Pg. 226
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Warrants - Accounts Payable
November 19, 2024

None.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. Fund Number and Title Legend

2. Voucher lists

3. Payroll Registers
3 Packet Pg. 227
City of Colton
Fund Number and Title Legend
Fund Title Fund Title
100 GENERAL FUND 701 LLMD #2
150 TREASURERS ACCOUNT GROUP 702 LLMD #1
206 COMMUN ITY CHILD CARE 703 CFO 87-1 DEBT SERV ICE
209 DSF FLY CONSERVATION 704 CFO 87-1 CONSTRUCT ION
210 SPECIAL GAS TAX 707 CFO 88-1 DEBT SERV ICE
211 LIBRARY GRANT FUND 708 CFO 88-1 CONSTRUCTION
212 STATE TRAFFIC RELIEF FUND 709 DSF FLY CONSERVATION
213 S.Y.E.T .P. GRANT 722 STORM WATER
214 POLLUT ION REDUCT ION FUND 733 CFO 89-1 CONSTRUCT ION 215 COMMUNITY DEV ACT FUND 734 CFO 89-2 CONSTRUCT ION
216 CDBG HOUS ING REHAB FUND 744 CFO 89-1 DEBT SERV ICE 217 DRUG/GANG INTERVENTION 745 CFO 89-2 DEBT SERV ICE
218 MEASURE I FUND 750 AQUA MANSA CFO
219 STATE AID- CAPITAL PROJECTS 754 SB COUNTY HOSPITAL
220 Vi Tep 762 TRUST AND AGENCY
225 MISC GRANTS 766 DEFERRED COMPENSAT ION
240 HOST CITY FEES - CIP 781 CFO 90-1 DEBT SERVICE
247 Quimby In Lieu Fees 782 CFO 90-1 CONSTRUCT ION
248 PARK DEVELOPMENT FUND 850 Redeve lopment Obligation Retirement Fund 249 TRAFF IC IMPACT FUND 851 Successor Agency Administration 250 NEW FAC ILITIES DEVELOPMENT FEE 855 Hous ing Auth - RM PARK DEVELOPMENT 251 CIVIC CENTER DEVELOPMENT FEE 856 Housing Auth - RANCHO MED BOND PROCEEDS 252 FIRE FAC ILITY DEVELOPMENT FEE 857 LMI Asset Fund
253 POLICE FACILITY DEVELOPMENT FEE 864 Housing Auth - LOW/MOD BOND PROCEEDS 261 ASSET FORFEITURE 865 Housing Auth - RANCHO MED CHFA 326 AD 94-1 DEBT SERVICE 866 ECONOM IC DEVELOPMENT
332 1971 SEWER BONDS, A & C 867 Consolidation Proj_08 -09 350 PFA Debt Fund 870 Housing Auth - RM PARK OPERAT IONS 357 POB-Non Enterprise 871 Successor Agcy-RANCHO/M ILL PROJECT AREA 358 PENS ION OBLIGATION DEBT SERV ICE 872 Succe ssor Agcy-RANCHO/MILL DEBT SERV ICE 359 CORP YARD DEBT SERV ICE 873 Successor Agcy-RDA II PROJECT FUND 363 1978-2 ASSESSMENT DIST . 874 Housing Auth - LOW/MOD DEBT SERV ICE 364 WATER IMPRVMNT DIST A 875 Housing Auth - LOW/MOD BOND PROCEEDS 379 AD 1979-1 DEBT SERV ICE 876 Successor Agcy-SANTA ANA RIV BND PROCEED 427 AD 94-1 CONSTRUCT ION 877 Successor Agcy-SANTA ANA RIVER CIP 450 Capita l Improvement Project s 878 RDA FIXED ASSETS GROUP 451 Colton Crossing Fund 879 Successor Agcy-WEST VALLEY CIP 453 STREET IMPROVEMENTS PRGM 881 Successor Agcy-MT VERNON BOND PROCEEDS 457 CAP ITAL IMPROVEMENT 882 Successo r Agcy-MT VERNON CIP 469 EQU IPMENT REPLACEMENT 885 Successor Agcy -MT VERNON DEBT SERV ICE 520 ELECTR IC UTILITY 886 RDA ADM INISTRAT ION
521 WATER UTILITY 887 COOLEY RANCH - now 894
522 WAS TEWATER UTILITY 888 MT VERNON - now 882
523 SOLID WASTE 889 WEST VALLEY - now 879
524 CEMETERY 890 Successor Agcy-RDA - LONG TERM DEBT GRP 525 RECYCLING 891 Successo r Agcy-RDA I DEBT SERV ICE FUND 526 PUBLIC BENEFIT FUND 892 Successor Agcy-RDA I - CAP ITAL PROJECTS 527 WASTEWATER UTILITY - GRAND TERRACE 893 Successor Agcy -RDA II DEBT SERV ICE FUND 551 WATER DEVELOPMENT 894 Successor Agcy -COOLEY RANCH PRO JECT 552 SEWER DEVELOPMENT 895 Successor Agcy-COOLEY RANCH DEBT SERV 560 CEMETARY ENDOWMENT CARE 896 SANTA ANA RIVER - now 877 605 Facility & Equipment Maintenance Fund 897 Successor Agcy-SANTA ANA RIVER DEBT SVC 606 INFORMATION SERV ICES FUND 898 Housing Auth - LOW/MOD CAPITAL PROJECTS 607 INSURANCE FUND 899 Successor Agcy-WEST VALLEY PRJ - DBT SV 608 AUTOMOT IVE SHOP 941 GENERAL LONG -TERM DEBT
610 AUTOMOT IVE SHOPS 958 GENERAL FIXED ASSETS
990 GASB 34

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ITEM NO. 4

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: AURELIO DE LA TORRE, CITY TREASURER
SUBJECT: RECEIVE AND FILE CITY TREASURER'S REPORT FOR AUGUST 2024.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Receive and File City Treasurer’s Report for August 2024.

ATTACHMENT

1. Treasurer's Report August 2024
4 Packet Pg. 303

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ITEM NO. 5

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: DEB FARRAR, COMMUNITY SERVICES DIRECTOR
SUBJECT: APPROVE AND ADOPT A RESOLUTION ADOPTING THE CA DEPARTMENT OF EDUCATION FY25-26 CONTINUED FUNDING

APPLICATION FOR THE EARLY CARE AND EDUCATION
DIVISION, RESOLUTION NO. R-113-24.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

· Approve and Adopt Resolution R -113-24, the CA Depar tment of Education FY25 -26 Continued Funding Application for the Early Care and Education Division.

· Authorize City Manager to act as signatory for all contracts and amendments.

BACKGROUND

The City of Colton, Early Care and Education Di vision has two main components : the School Age Program ( CCTR) and the State Preschool Program ( CSPP). The CCTR is funded by the California Department of Social Services ( CDSS) for children in gr ades K thru 6 th, using the CDSS CCTR Contract to provide services for b efore, after, and all -day care on CJUSD closure days. The CSPP is funded by the California Department of Education (CDE) for younger children, ages 3 to 5 years. The CSPP operates 180 days a year, part -day, with the desired result of preparing you ng chil dren for elementary school, both in the classroom and the playground.

As Executive Director of the Program, the City Manager is the designated authority to sign the State contract.

Each Fiscal year, the City submits the “Continued Funding Application” (CFA) to CDE to renew the aforementioned CDE Contract. In previous years, Council (Board) Approval and a 5 Packet Pg. 314
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CDE Continued Funding Application - FY25-26 ECE Program November 19, 2024

Resolution were not required as a part of the CFA Packet. The signatory authority previously granted to the City Manager, who is the Executive Director of the Program, remains the same.

ISSUES/ANALYSIS

CDE now requires Council Approval and a signed Resolution authorizing the Executive Director/City Manager permission to sign the CFA, with the CFA submission , which is handled electronically. Additionally, contractors who apply for and are approved for Continued F unding will not need to sign and return a CSPP contract to provide services for FY 202 5–2026. CSPP contractors who apply for and are approved for Continued Funding through the CFA process will be automatically renewed in accordance with all applicable federal and state laws, as well as all CSPP Funding Terms and Conditions and Program Requirements that will be incorporated into the FY 2025–26 CSPP contract.

FISCAL IMPACTS

This is an administrative compliance action with no direct fiscal or GF impact.

The ECE Program uses Fund 206 -7200-7203 for expenditures and 206 -5776 for revenue for the State Preschool Program. The exact amount of the FY 2 5-26 CDE Contract for the CSPP is currently u nknown. However, historically, contracts match the Maximum Reimbursable Amount (MRA) from the previous FY. The CDE CSPP Contract for FY 24-25 is $947,092.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. R-113-24
5 Packet Pg. 315

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RESOLUTION NO. R-113-24

A RESOLUTION OF THE CITY COUNCIL ALLOWING THE SUBMISSION OF

THE CA DEPARTMENT OF EDUCATION -CONITUED FUNDING

APPLICATION (CDE -CFA) FOR THE EARLY CARE AND EDUCATION DIVISION OF THE COMMUNITY SERVICES DEPARTMENT FOR FY 25-26.

WHEREAS, the City of Colton , Early Childhood Education Division of the Co mmunity Services Department holds one (1) California Department of Education (CDE) Contract and one (1) California Department of Social Services (CDSS) Contract, thus considered a CDE and CDSS Funded Agency.

WHEREAS, The ECE Division submits the “Continued Funding Application” (CFA) every Fiscal Year to CDE to renew the aforementioned CDE Contract. In some previous years, Board Approval and a Resolution were neither required nor part of the CFA Packet. The signatory authority previously granted to the City Manager, who is the Executive Director of ECE was sufficient. Starting in FY 23-24, the CFA requirements changed. Now, Board Approval and a Resolution are required with the CFA submission.

WHEREAS, CDE requires Council Approval and a signed Resolution authorizing the City Manager/Executive Director permission to sign the CFA, with the CFA electronic submission.

Additionally, contractors who apply for and are approved for Continued Funding will not need to sign and return a CSPP contract to provide services for FY 2025–2026. CSPP contractors who apply for and are approved for Continued Funding through the CFA proc ess will be automatically renewed in accordance with all applicable federal and state laws, as well as all CSPP Funding Terms and Conditions and Program Requirements that will be incorporated into the FY 2025–26 CSPP contract.

NOW, THEREFORE, the City Council of the City of Colton does hereby resolve as follows:

Section 1: The staff report accompanying this Resolution is found to be true, adopted as findings, and incorporated into this resolution.

Section 2: The City Manager is approved to sign the CA Department of Education- Continued Funding Application for FY 2025-2026.

PASSED, APPROVED AND ADOPTED this 19th day of November 2024.

________________________________________

FRANK J, NAVARRO
Mayor
ATTEST:

STEPHANIE M. VARGAS
Deputy City Clerk

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ITEM NO. 6

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: TOM CODY, HUMAN RESOURCES DIRECTOR
SUBJECT: APPROVE CONTRACT AMENDMENT WITH JL GROUP, LLC FOR PROFESSIONAL INVESTIGATIVE SERVICES.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

1. Dispense with competitive bidding in accordance with Colton Municipal Code Section

3.08.140(E); and

2. Approve a $50,000 contract amendment with JL Group, LLC for Professional Workplace Investigation Services.

BACKGROUND

On July 1, 2024, the City entered into a not -to-exceed $50,000 contract with JL Group, LLC, for Personnel and Workplace Investigations for the 2024 -2025 fiscal year. JL Group is a pr emier Southern California workplace investigative firm that conducts workplace misconduct investigations for numerous public agencies and has worked with the City since 2021. Their investigators are mainly retired law enforcement professionals whose caree r work experience includes conducting workplace misconduct investigations. JL Group also has attorneys on its staff who can provide legal guidance throughout the investigation.

The City is committed to providing a work environment free of harassment, dis crimination, and/or retaliation for reporting employee misconduct. Therefore, it is Human Resources Department's obligation to investigate misconduct allegations. The purpose of investigations is not only to ensure a work environment free of employee mis conduct but to reduce liability exposure to the City by lawfully reacting to such allegations and investigating each matter 6 Packet Pg. 317
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November 19, 2024

thoroughly. The length and complexity of an investigation depend on many circumstantial factors, including subject matter and how many witnesses need to be interviewed.

ISSUES/ANALYSIS

Nine incidents were required to be investigated in the calendar years 2023/2024. The HR Director conducted five of these investigations, and outside investigative firms, such as the JL Group, have assisted the City with an assigned investigator to investigate the others. Depending on the circumstances of each case, these can be time -consuming exercises requiring multiple interviews, information gathering, and report writing. For that reason, and es pecially when the matter is more complex, an outside investigative firm is generally brought in to assist the City.

Our initial 2024/2025 fiscal year funds with the JL Group will soon be exhausted, and additional funds are necessary to finish the current ongoing work and need to be prepared if any further circumstances require their use. JL Group, LLC has served the City well since 2021, and the Human Resources Department wishes to continue to use them. The Department, therefore, requests an additional $5 0,000 for the current fiscal year in accordance with Colton Municipal Code section 3.08.140(E) to see these investigations through to the end of the 2024 -2025 fiscal year. It is in the City's best interest to remain with the JL Group LLC because of the qu ality of investigators they have on staff and their familiarity with the City’s business operations, policies and procedures.

FISCAL IMPACTS

Sufficient appropriations for the contract amendment are available in the adopted FY2024 -25 budget in General Fu nd Human Resources Professional Services Account Number 100 -6030- 6030-2350-0000-000.

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. JL Group Letter Agreement Amendment 11-19-24
6 Packet Pg. 318

AMENDMENT NO. ONE (1) TO

LETTER AGREEMENT

BETWEEN THE CITY OF COLTON
AND

JL GROUP, LLC

1. PARTIES AND DATE.

This Amendment No. One to the Letter Agreement is made and entered into this 19th day of November, 2024 by and between the City of Colton, a California municipal corporation (“City”) and JL Group, LLC, Personnel and Workplace Investigations (“Contractor”). City and Contractor are sometimes individually referred to herein as “Party” and collectively as “Parties.”

2. RECITALS.

2.1 Contractor. City and Contractor entered into a Letter Agreement dated July 1, 2024 (“Agreement”), whereby Contractor agreed to provide Personnel and Work place Investigation.

2.2 Amendment Purpose. City and Contractor now desire to amend the Agreement for the purposes of assisting the City with conducting personnel and workplace misconduct investigations. An additional $50,000 is added to the agreement for a not -to-exceed amount of $100,000 for the fiscal year 2024-2025.

2.3 Amendment Authority . This Amendment No. one is authorized pursuant to Section 12 of the Agreement.

3. TERMS.

3.1 Amendment. Section “Compensation” of the Agreement is hereby amended in its entirety to read as follows:

Compensation: Compensation shall be based on the actual a mount of time spent in adequately performing the Services and shall be billed at the hourly rate(s) described in the Contractor’s rate sheet, attached hereto as Exhibit “ C1,” and incorporated herein by reference. The annual compensation shall not exceed $100,000 without written approval of the City Manager .

Contractor’s invoices shall include a detailed description of the Services performed. Invoices shall be submitted to the City on a monthly basis as performance of the Services progresses. The City shall review and pay the approved charges on such invoices in a timely manner.

Exhibit “C” is hereby deleted in its entirety and replaced with Exhibit “C1” attached hereto and incorporated herein by reference.

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Attachment: JL Group Letter Agreement Amendment 11-19-24 (4734 : Contract Amendment - JL Group, LLC) 2 Exhibit “C1”
Compensation

The annual compensation not to exceed $100,000 annually. The rates below are for the following personnel conducting the investigations:

Investigator Fee $275 per hour
Attorney Fee $300 per hour

3.2 Continuing Effect of Agreement. Except as amended by this Amendment No.

One (1), all provisions of the Agreement shall remain unchanged and in full force and effect.

From and after the date of this Amendment No. One )1) , whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement as amended by this Amendment No. One (1).

3.3 Adequate Consideration. The Parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. One (1).

3.4 Severability. If any portion of this Amendment No. One (1) is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect

3.5 Counterparts. This Amendment No. One (1) may be executed in duplicate originals, each of which is deemed to be an original , but when taken together shall constitute but one and the same instrument.

[SIGNATURES ON FOLLOWING PAGE]

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Attachment: JL Group Letter Agreement Amendment 11-19-24 (4734 : Contract Amendment - JL Group, LLC) 3 SIGNATURE PAGE FOR AMENDMENT NO. ONE (1) TO

LETTER AGREEMENT

BETWEEN THE CITY OF COLTON

AND JL GROUP, LLC

IN WITNESS WHEREOF, the Parties have entered into this Amendment No. One (1) to the Letter Agreement as of the day and year first above written.

CITY OF COLTON

By: _________________________
William R. Smith
City Manager

Attest: _________________________
Stephanie Vargas
Chief Deputy City Clerk

JL GROUP, LLC

By: _________________________
Signature

_________________________
Jeffery Love

_________________________
Principal

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Attachment: JL Group Letter Agreement Amendment 11-19-24 (4734 : Contract Amendment - JL Group, LLC)

ITEM NO. 7

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: ROBERT DELOACH, INTERIM PUBLIC WORKS DIRECTOR SUBJECT: APPROVE CONTRACT AWARD TO CAT TRACKING FOR THE CITYWIDE STRIPING PROJECT.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

1. Award a contract for the FY 24/25 Citywide Striping Project to CAT Tracking, Inc. as the lowest responsive and responsible bidder in the amount of $85,250.

2. Authorize the City Manager to execute the contract agreement with CAT Tracking, Inc.

BACKGROUND

Pavement striping, markings and legends are very important component of traffic safety on city streets for motorist and pedestrians. Pavement striping includes centerline and edge markings, bicycle lane, stop bars, cross walk lines and hatched markings. Pavement marking and legends includes STOP and SIGNAL AHEAD markings, bicycle legends, and yield markings.

ISSUES/ANALYSIS

Several locations within the City of Colton are in dire need of pavement and legend restriping.

The project scope for the FY 24/25 Citywide Striping Project includes restriping of city streets with faded striping, marking and legends citywide especially in the downtown area.

In accordance with Colton Municipal Code (CMC) Section 3.08.060, staff solicited informal bids from four (4) striping companies on October 3, 2024, for the FY 24/25 Citywide Striping Project.

The City received two bids as follows:

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Staff Report to the Mayor and City Council
Contract Award - CAT Tracking
November 19, 2024

1. CAT Tracking, Inc. $85,250.00

2. Superior Pavement Markings, Inc. $90,150.00

Staff evaluated and reviewed each submitted bid. Staff recommends the award of striping contract to CAT Tracking, Inc. the lowest responsive and responsible bidder in the amount of $85,250.00.

FISCAL IMPACTS

Sufficient appropriations for the Citywide Striping Project are available in the FY2024-25 budget in the following Measure I capital improvement accounts:

Funding Source Account No. CAT Tracking
Contract
Measure I – FY24 Citywide Street &
Traffic Improvement
218-2422-6150-3890-0000-000 $20,651.32
Measure I – FY25 Citywide Street &
Traffic Improvement
218-2505-6150-3890-0000-000 $64,598.68
TOTAL $85,250.00

ALTERNATIVES

1. Provide alternative direction to staff.

ATTACHMENT

1. Exhibit A - Model Maintenance Services Agreement
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CITY OF COLTON

MAINTENANCE SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this 19th day of November, 2024 by and between the City of Colton, a municipal corporation organized under the laws of the State of California with its principal place of business at 650 North La Cadena Drive , Colton, California 92234, County of San Bernardino , State of California (“City”) and CAT Tracking, inc. , a Corporation with its principal place of business at 17 Commercial Ave. Riverside, CA 92507 (“Contractor”). City and Con tractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. RECITALS.

2.1 Contractor.

Contractor desires to perform and assume responsibility for the provision of certain maintenance services required by the City on the terms and conditions set forth in this Agreement.

Contractor represents that it is experienced in providing pavement striping services to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City.

Contractor shall not subcontract any port ion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

2.2 Project.

City desires to engage Contractor to render such services for the Citywide Striping FY 24/25 project (“Project”) as set forth in this Agreement.

3. TERMS.

3.1 Scope of Services and Term.

3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional pavement striping maintenance services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhib its attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from November 19, 2024 to June 30, 2025 , unless earlier terminated as provided herein.Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines. The Parties may, by mutual, written consent, extend the term of this Agr eement if necessary to complete the Services.

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3.2 Responsibilities of Contractor.

3.2.1 Control and Payment of Subordinates; Independent Contractor . The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee.

Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreeme nt on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment ins urance, disability insurance, and workers ’ compensation insurance.

3.2.2 Schedule of Services. Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “B” attached hereto and incorporated herein by reference. Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Contractor’s conformance with the Schedule, City shall respond to Contractor ’s submittals in a timely ma nner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.

3.2.3 Conformance to Applicable Requirements . All work prepared by Contractor shall be subject to the approval of City.

3.2.4 City’s Representative . The City hereby designates Robert DeLoach, Director of Public Works or his or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Agreement. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.

3.2.5 Contractor’s Representative. Contractor hereby designates Pam Follmer, President, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, tec hniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.

3.2.6 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, consultants and other staff at all reasonable times.

3.2.7 Standard of Care; Performance of Employees. Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represent s and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors

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shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.

3.2.8 Period of Performance. Contractor shall perform and complete all Services under this Agreement within the term set forth in Section 3.1.2 above ( “Performance Time”).

Contractor shall perform the Services in strict accordance with any completion schedule or Project milestones described in Exhibits “A” or “B” attached hereto, or which may be provided separately in writing to the Contractor. Contractor agrees that if the Services are not completed within the aforementioned Performance Time and/or pursuant to any such completion schedule or Project milestones developed pursuant to provisions of this Agreement, it is understood, acknowledged and agreed that the City will suffer damage Pursuant to Government Code Section 53069.85, Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum of Five Hundred Dollars ($500) per day for each and every calendar day of delay beyond the Performance Time or beyond any completion schedule or Project milestones established pursuant to this Agreement.

3.2.9 Disputes. Should any dispute arise respecting the true value of any work done, of any work omitted, or of any extra work which Contractor may be required to do, or respecting the size of any payment to Contractor during the performance of this Contract, Contractor shall continue to perform the Work while said dispute is decided by the City. If Contractor disputes the City’s decision, Contractor shall have such remedies as may be provided by law.

3.2.10 Laws and Regulations; Employee/Labor Certifications . Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. City is a public entity of the State of California subject to certain provisions of the Health & Safety Code, Government Code, Public Contract Code, and Labor Code of the State. It is stipulated and agreed that all provisions of the law applicable to the public contracts of a municipality are a part of this Agreement to the same extent as though set forth herein and will be complied with. These include but are not limited to the payment of prevailing wages, the stipulation that eight (8) hours’ labor shall constitute a legal day’s work and that no worker shall be permitted to work in excess of eight (8) hours dur ing any one calendar day except as permitted by law. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.

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3.2.10.1 Employment Eligibility; Contractor . By executing this Agreement, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control A ct of 1986, as may be amended from time to time. Such requirements and restrictions include, but are not limited to, examination and retention of documentation confirming the identity and immigration status of each employee of the Contractor.

Contractor also verifies that it has not committed a violation of any such law within the five (5) years immediately preceding the date of execution of this Agreement, and shall not violate any such law at any time during the term of the Agreement. Contractor shall avoid any violation of any such law during the term of this Agreement by participating in an electronic verification of work authorization program operated by the United States Department of Homeland Security, by participating in an equivalent federal work authorization program operated by the United States Department of Homeland Security to verify information of newly hired employees, or by some other legally acceptable method. Contractor shall maintain records of each such verification, and shall make them available to the City or its representatives for inspection and copy at any time during normal business hours. The City shall not be responsible for any costs or expenses related to Contractor’s compliance with the requirements provided for in Section 3.2.10 or any of its sub- sections.

3.2.10.2 Employment Eligibility; Subcontractors, Sub-subcontractors and Consultants. To the same extent and under the same conditions as Contractor, Contractor shall require all of its subcontractors, sub-subcontractors and consultants performing any work relating to the Project or this Agreement to make the same verifications and comply with all requirements and restrictions provided for in Section 3.2.10.1.

3.2.10.3 Employment Eligibility; Failure to Comply . Each person executing this Agreement on behalf of Contractor verifies that they are a duly authorized officer of Contractor, and understands that any of the following shall be grounds for the City to terminate the Agreement for cause: (1) failure of Con tractor or its subcontractors, sub -subcontractors or consultants to meet any of the requirements provided for in Sections 3.2.10.1 or 3.2.10.2; (2) any misrepresentation or material omission concerning compliance with such requirements (including in those verifications provided to the Contractor under Section 3.2.10.2); or (3) failure to immediately remove from the Project any person found not to be in compliance with such requirements.

3.2.10.4 Labor Certification . By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.

3.2.10.5 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non -discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

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3.2.10.6 Air Quality. Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the South Coast Air Quality Management District (SCAQMD) and/or California Air Resources Board (CARB). Although the SCAQMD and CARB limits and requirements are more broad, Contractor shall specifically be aware of their application to "portable equipment", which definition is considered by SCAQMD and CARB to include any item of equipment with a fuel -powered engine. Contractor shall indemnify City against any fines or penalties imposed by SCAQMD, CARB, or any other governmental or regulatory agency for violations of applicable laws, rules and/or regulations by Contractor, its subcontractors, or others for whom Contractor is responsible under its indemnity obligations provided for in this Agreement. (A) Contractor shall comply, and shall ensure all subcontractors comply, with all applicable terms of Title 13, California Code of Regulations Division 3, Chapter 9 (“Regulation”).
(B) Throughout the Project, and for three (3) years thereafter, Contractor shall make available for inspection and copying any and all documents or information associated with Contractor’s and subcontractors’ Fleet including, without limitation, the Certificate(s) of Rep orted Compliance (CRCs), fuel/refueling records, maintenance records, emissions records, and any other information the Contractor is required to produce, keep or maintain pursuant to the Regulation upon two (2) calendar days’ notice from the Commission. (C) Contractor shall be solely liable for any and all costs associated with complying with the Regulation as well as for any and all penalties, fines, damages, or costs associated with any and all violations, or failures to comply with the Regulation.

Contractor shall de fend, indemnify and hold harmless the Commission, its officials, officers, employees and authorized volunteers free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Regulation.

3.2.10.7 Water Quality.
(A) Management and Compliance . To the extent applicable, Contractor’s Services must account for, and fully comply with, all local, state and federal laws, rules and regulations that may impact water quality compliance, including, without limitation, all applicable provisions of the Fe deral Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000 -14950); laws, rules and regulations of the Environmental Pr otection Agency and the State Water Resources Control Board and the Santa Ana Regional Water Quality Control Board ; the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State. (B) Liability for Non -Compliance. Failure to comply with the laws, regulations and policies described in this Section is a violation of law that may subject Contractor or City to penalties, fines, or additional regulatory requirements. Contractor shall defend, indemnify and hold the Ci ty, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and against any and all fines, penalties, claims or other regulatory requirements imposed as a result of Contractor’s non-compliance with the laws, regulations and policies described in this Section,

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unless such non-compliance is the result of the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers. (C) Training. In addition to any other standard of care requirements set forth in this Agreement, Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them without impacting water quality in violation of the laws, regulations and policies described in this Section. Contractor further warrants that it, its employees and subcontractors will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in this Section as they may relate to the Services provided under this Agreement. Upon request, City will provide Contractor with a list of training programs that meet the requirements of this paragraph.

3.2.11 Insurance.

3.2.11.1 Time for Compliance . Contractor shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this Section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this Section.

3.2.11.2 Minimum Requirements . Contractor shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Contracto r, its agents, representatives, employees or subcontractors.

Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance . Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability :

Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. The policy shall not contain any exclusion contrary to the Agreement, including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 29); or (2) cross liability for claims or suits by one insured against another. (B) Minimum Limits of Insurance . Contractor shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease. Defense costs shall be paid in addition to the limits.

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(C) Notices; Cancellation or Reduction of Coverage . At least fifteen (15) days prior to the expiration of any such policy, evidence showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or materially reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, the City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by the City will be promptly reimbursed by Contractor or the City may withhold amounts sufficient to pay premium from Contractor payments. In the alternative, the City may suspend or terminate this Agreement.

3.2.11.3 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall include or be endorsed (amended) to state that: (1) using ISO CG forms 20 10 and 20 37, or endorsements providing the exact same coverage, the City of Colton, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insured with respect to the Services or ongoing and complete operations performed by or on behalf of the Contractor, including materials, parts or equipment furnished in connection with such work; and (2) using ISO form 20 01, or endorsements providing the exact same coverage, the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor ’s scheduled underlying coverage. Any excess insurance shall contain a provision that such coverage shall also apply on a primary and noncontributory basis for the benefit of the City, before the City’s own primary insurance or self -insurance shall be called upon to protect it as a named insured. Any insurance or self -insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way. Notwithstanding the minimum limits set forth in Section

3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to th e parties required to be named as additional insureds pursuant to this Section 3.2.11.3(A).
(B) Automobile Liability . The automobile liability policy shall include or be endorsed (amended) to state that: (1) the City, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its direct ors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor ’s scheduled underlying coverage. Any insurance or self -insurance maintained by the City, its directors, officials, officers, employees, agents, and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way.

Notwithstanding the minimum limits set forth in Section 3.2.11.2(B), any available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as additional insureds pursuant to this Section 3.2.11.3(B). (C) Workers’ Compensation and Employer’s Liability Coverage.

The insurer shall agree to waive all rights of subrogation against the City, its directors, officials,

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officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Contractor. (D) All Coverages . Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days (10 days for nonpayment of premium) prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents, and volunteers.

Any failure to comply with reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to the City, its officials, officers, employees, agents and volunteers, or any other additional insureds.

3.2.11.4 Separation of Insureds; No Special Limitations ; Waiver of Subrogation. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents, and volunteers.

All policies shall waive any right of subrogation of the insurer against the City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, or shall specifically allow Contractor or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against City, its officials, officers, employees, agents, and volunteers, or any other additional insureds, and shall require similar written express waivers and insurance clauses from each of its subcontractors.

3.2.11.5 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respe cts the City, its directors, officials, officers, employees, agents, and volunteers; or (2) the Contractor shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.

3.2.11.6 Subcontractor Insurance Requirements . Contractor shall not allow any subcontractors to commence work on any subcontract relating to the work under the Agreement until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. If requested by Contractor, the City may approve different scopes or minimum limits of insurance for particular subcontractors. The Contractor and the City shall be named as additional insureds on all subcon tractors’ policies of Commercial General Liability using ISO form 20 38, or coverage at least as broad.

3.2.11.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best ’s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City.

3.2.11.8 Verification of Coverage . Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a per son authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City re serves the right to require complete, certified copies of all required insurance policies, at any time.

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3.2.11.9 Reporting of Claims . Contractor shall report to the City, in addition to Contractor’s insurer, any and all insurance claims submitted by Contractor in connection with the Services under this Agreement.

3.2.12 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limi ted to: (A) adequate life protection and lifesaving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.

3.2.13 Bonds.

3.2.13.1 Performance Bond. If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Performance Bond in the amount of the total, not -to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

3.2.13.2 Payment Bond . If required by law or otherwise specifically requested by City in Exhibit “C” attached hereto and incorporated herein by reference, Contractor shall execute and provide to City concurrently with this Agreement a Payment Bond in the amount of the total, not-to-exceed compensation indicated in this Agreement, and in a form provided or approved by the City. If such bond is required, no payment will be made to Contractor until it has been received and approved by the City.

3.2.13.3 Bond Provisions . Should, in City ’s sole opinion, any bond become insufficient or any surety be found to be unsatisfactory, Contractor shall renew or replace the affected bond within 10 days of receiving notice from City. In the event the surety or Contractor intends to reduce or cancel a ny required bond, at least thirty (30) days prior written notice shall be given to the City, and Contractor shall post acceptable replacement bonds at least ten (10) days prior to expiration of the original bonds. No further payments shall be deemed due or will be made under this Agreement until any replacement bonds required by this Section are accepted by the City. To the extent, if any, that the total compensation is increased in accordance with the Agreement, the Contractor shall, upon request of the City, cause the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such increase to the City. To the extent available, the bonds shall further provide that no change or alte ration of the Agreement (including, without limitation, an increase in the total compensation, as referred to above), extensions of time, or modifications of the time, terms, or conditions of payment to the Contractor, will release the surety. If the Cont ractor fails to furnish any required bond, the City may terminate this Agreement for cause.

3.2.13.4 Surety Qualifications . Only bonds executed by an admitted surety insurer, as defined in Code of Civil Procedure Section 995.120, shall be accepted. The

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surety must be a California -admitted surety with a current A.M. Best ’s rating no less than A:VIII and satisfactory to the City. If a California -admitted surety insurer issuing bonds does not meet these requirements, the insurer will be considered qualified if it is in conformance with Section 995.660 of the California Code of Civil Procedure, and proof of such is provided to the City.

3.2.14 Accounting Records . Contractor shall maintain complete and accurate records with respect to all costs and expenses incurred under this Agreement. All such records shall be clearly identifiable. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agree ment for a period of three (3) years from the date of final payment under this Agreement.

3.2.15 Work Sites.

3.2.15.1 Inspection Of Site . Contractor shall visit sites where Services are to be performed and shall become acquainted with all conditions affecting the Services prior to commencing the Services. Contractor shall make such examinations as it deems necessary to determine the condition of the work sites, its accessibility to materials, workmen and equipment, and to determine Contractor’s ability to protect existing surface and subsurface improvements. No claim for allowances–time or money–will be allowed as to such matters after commencement of the Services.

3.2.15.2 Field Measurements . Contractor shall make field measurements, verify field conditions and shall carefully compare such field measurements and conditions and other information known to Contractor with the Contract Documents, including any plans, specifications, or scope of w ork before commencing Services. Errors, inconsistencies or omissions discovered shall be reported to the City immediately and prior to performing any Services or altering the condition.

3.2.16 Loss and Damage. Contractor shall be responsible for all loss and damage which may arise out of the nature of the Services agreed to herein, or from the action of the elements, or from any unforeseen difficulties which may arise or be encountered in the prosecution of the Services until the same is fully completed and accepted by City.

3.2.17 Warranty. Contractor warrants all Services under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship. Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufactu rer or supplier of equipment or m aterials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the Services or non-conformance of the Services to the Contract, commence and prosecute with due diligence all Services necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act sooner as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair and replace any portions of the work (or work of other contractors) damaged by its defective Services or which becomes damaged in the course of re pairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one year period, commencing with the date of

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acceptance of such corrected work. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcont ractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warra nty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non -conforming w ork and any work damaged by such work or the replacement or correction thereof at Contractor's sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand.

3.3 Fees and Payments.

3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit “C” attached hereto and incorporated herein by reference. The total compensation shall not exceed Eighty-Five Thousand Two -Hundred Fifty Dollars ($85,250.00) without written approval of City’s Manager. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.

3.3.2 Payment of Compensation . Contractor shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Contractor. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within 45 days of receiving such statement, review the statement and pay all approved charges thereon.

3.3.3 Deductions. City may deduct or withhold, as applicable, from each progress payment an amount necessary to protect City from loss because of: (1) stop payment notices as allowed by state law; (2) unsatisfactory prosecution of the Services by Contractor; (3) sums representing expenses, losses, or damages as determined by the City, incurred by the City for which Contractor is liable under the Agreement; and (4) any other sums which the City is entitled to recover from Contractor under the terms of the Agreement or pursuant to state law, including Section 1727 of the California Labor Code. The failure by the City to deduct any of these sums from a progress payment shall not constitute a waiver of the City's right to such sums.

3.3.4 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City.

3.3.5 Extra Work . At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Contractor shall not perform, nor be compensat ed for, Extra Work without written authorization from City’s Representative.

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3.3.6 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 16000, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and If the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor s hall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify and hold the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevaili ng Wage Laws. It shall be mandatory upon the Contractor and all subcontractors to comply with all California Labor Code provisions, which include but are not limited to prevailing wages (Labor Code Sections 1771, 1774 and 1775), employment of apprentices (Labor Code Section 1777.5), certified payroll records (Labor Code Sections 1771.4 and 1776), hours of labor (Labor Code Sections 1813 and 1815) and debarment of contractors and subcontractors (Labor Code Section 1777.1). The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3.3.7 Registration/DIR Compliance. If the Services are being performed as part of an applicable “public works” or “maintenance” project, and if the total compensation is $15,000 or more, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Contractor and all subcontractors performing such Services must be registered with the Department of Industrial Relations. Contractor shall maintain registration for the duration of the Project and require the same of any subcontractors, as applicable. This Project ma y also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Contractor’s sole responsibility to comply with all applicable registration and labor compliance requirements.

Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1. Any stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor that affect Contractor’s performance of Services, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liab ility arising out of stop orders issued by the Department of Industrial Relations against Contractor or any subcontractor.

3.4 Termination of Agreement.

3.4.1 Grounds for Termination . City may, by written notice to Contractor, terminate the whole or any part of this Agreement at any time and without cause by giving written notice to Contractor of such termination, and specifying the effective date thereof, at least seven (7) days bef ore the effective date of such termination. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contrac tor may not terminate this Agreement except for cause.

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3.4.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this A greement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.

3.4.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.

3.5 General Provisions.

3.5.1 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:

Contractor:

CAT Tracking, Inc.
17 Commercial Ave.

Riverside, CA 92507
Attn: Pam Follmer, President
City:

City of Colton
650 North La Cadena Drive
Colton, CA 92324
Attn: Robert DeLoach, Public Works
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.

3.5.2 Indemnification.

3.5.2.1 Scope of Indemnity . To the fullest extent permitted by law, Contractor shall defend, indemnify and hold the City, its officials, employees, agents and authorized volunteers free and harmless from any and all claims, demands, causes of action, suits, actions, proceedings, costs, expenses, liability, judgments, awards, decrees, settlements, loss, damage or injury of any kind, in law or equity, regardless of whether the allegations are false, fraudulent, or groundless, to property or persons, including wrongful death, (collectively, “Claims”) in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Contractor, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Contractor’s Services, the Project or this Agreement, including without limitation the payment of all e xpert witness fees, attorneys’ fees and other related costs and expenses. Notwithstanding the foregoing, to the extent required by Civil Code section 2782, Contractor’s indemnity obligation shall not apply to liability for damages for death or bodily injury to persons, injury to property, or any other loss, damage or expense arising from the sole or active negligence or willful misc onduct of the City or the City’s agents, servants, or

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independent contractors who are directly responsible to the City, or for defects in design furnished by those persons.

3.5.2.2 Additional Indemnity Obligations. Contractor shall defend, with counsel of City’s choosing and at Contractor’s own cost, expense and risk, any and all Claims covered by this section that may be brought or instituted against City or its officials, employees, agents and authorized volunteers . In addition, Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding. Contractor shall also reimburse City for the cost of any settlement paid by City or its officials, employees, agents and authorized volunteers as part of any such claim, suit, action or other proceeding. Such reimbursement shall include payment for City’s attorney’s fees and costs, including expert witness fees. Contractor shall reimburse City and its officials, employees, agents and authorized volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall survive expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by the City, its officials, employees, agents and authorized volunteers.

3.5.3 Governing Law; Government Code Claim Compliance . This Agreement shall be governed by the laws of the State of California. Venue shall be in San Bernardino County.

In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Contractor must comply with the claim procedures set forth in Government Code sections 900 et seq. pri or to filing any lawsuit against the City. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by Contractor. If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Contractor shall be barred from bringing and maintaining a valid lawsuit against the City.

3.5.4 Time of Essence. Time is of the essence for each and every provision of this Agreement.

3.5.5 City’s Right to Employ Other Contractors . City reserves right to employ other contractors in connection with this Project.

3.5.6 Successors and Assigns . This Agreement shall be binding on the successors and assigns of the parties.

3.5.7 Assignment or Transfer. Contractor shall not assign, hypothecate or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.

3.5.8 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its

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elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or descr ibe the scope, content or intent of this Agreement.

3.5.9 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.

3.5.10 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel or otherwise.

3.5.11 No Third Party Beneficiaries. Except to the extent expressly provided for in Section 3.5.7, there are no intended third party beneficiaries of any right or obligation assumed by the Parties.

3.5.12 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.

3.5.13 Prohibited Interests . Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor further agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic Interest with the City ’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employ ee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

3.5.14 Cooperation; Further Acts . The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.

3.5.15 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.

3.5.16 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.

3.5.17 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.

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3.5.18 Federal Provisions. When funding for the Services is provided, in whole or in part, by an agency of the federal government, Contractor shall also fully and adequately comply with the provisions included in Exhibit “D” (Federal Requirements) attached hereto and incorporated herein by reference (“Federal Requirements”). With respect to any conflict between such Federal Requirements and the terms of this Agreement and/or the provisions of state law, the more stringent requirement shall control.
[SIGNATURES ON NEXT PAGE]

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SIGNATURE PAGE FOR MAINTENANCE SERVICES AGREEMENT

BETWEEN THE CITY OF COLTON
AND CAT TRACKING, INC.

IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the 19th day of November, 2024.

CITY OF COLTON CAT Tracking, Inc.

Corporation

By: ____________________________ By: _________________________ Bill Smith Pam Follmer
City Manager President

Attest:

____
Stephanie Vargas
Deputy City Clerk

Approved as to Form:

______________________________
Best Best & Krieger LLP
City Attorney

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Exhibit A-1

EXHIBIT “A”

SCOPE OF SERVICES

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Exhibit B-1

EXHIBIT “B”

SCHEDULE OF SERVICES
NOVEMBER 19, 2024 – JUNE 30, 2025

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Exhibit C-1

EXHIBIT “C”

COMPENSATION
EIGHTY-FIVE THOUSAND TWO-HUNDRED FIFTY DOLLARS ($85,250.00)

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Exhibit D-1

EXHIBIT “D”

FEDERAL REQUIREMENTS

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ITEM NO. 8

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: ROBERT DELOACH, INTERIM PUBLIC WORKS DIRECTOR SUBJECT: APPROVE AWARD OF CONTRACT TO ESTATE DESIGN AND

CONSTRUCTION FOR THE WATER DEPARTMENT RESTROOM
PROJECT.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Award a contract for the Water Department Restroom Project to Estate Design and Construction, as the lowest responsive and responsible bidder, for $151,547.00.

BACKGROUND

The Water Department Office, a 2,500 -square-foot facility located at the City’s Corporate Yard, was originally constructed in 1981. Currently, 1,200 square feet is allocated for storage and workshop use, while the remaining 1,300 square feet serves as office space, including a single restroom shared by 18 staff members, both male and female.

The proposed project aims to convert the 1,200 -square-foot storage area into a multi -stall restroom and locker roo m area, establish a dedicated break room, and retain a functional workshop. This renovation will include the installation of new walls, flooring, plumbing fixtures, partitions, electrical systems, and HVAC.

ISSUES/ANALYSIS

In accordance with Colton Muni cipal Code (CMC) Section 3.08.090, a request for Notice Inviting Formal Bids was published in The Press Enterprise on September 17, 2024, and September 24, 2024. A mandatory Pre -Bid Meeting and Job Walk was held on September 26, 8 Packet Pg. 346
Staff Report to the Mayor and City Council
Contract Award - Estate Design and Construction
November 19, 2024

2024. On October 17, 2024, four (4) Bids were received from known contractors in Southern California as follows:

BIDDER TOTAL BID AMOUNT
Estate Design and Construction $ 151,547.00
Metro Builders and Engineering $ 285,058.15
Epsilon Engineering $ 308,370.00
MLC Construction Inc. $ 347,289.00

Staff reviewed and evaluated all bids. The low bidder, Estate Design and Construction , met all the bid requirements. Staff recommend awarding the contract to the lowest responsive and responsible bidder, Estate Design and Construction , for $151,547.00 for the Water Department Restroom Project.

FISCAL IMPACTS

The total amount for the construction of the Water Department Restroom Project including a 5% contingency is $159,124.40. Sufficient appropriations for the project are available in Water Utility Fund Capital Improvement Account #521-8100-8101-3890-0000.

ALTERNATIVES

1. Provide direction to staff.

ATTACHMENT

1. Exhibit A - Contract
8 Packet Pg. 347

CONTRACT
29 CONTRACT
THIS CONTRACT is made this 5th d ay of November, 2024, in the County of San Bernardino, State of Calif ornia, by and between the City o f Colton, her einafter called C ity, and Estate Design and Constructio n , hereinafter called Contr actor. The City and th e Contractor for the co nsiderations stated herein agree as follows:

ARTICLE 1. SCOPE OF WORK . The Contractor shall perform all Work within the time stipulated the Contract and shall provide all labor, materials, equi pment, tools, ut ility services, and transportation to complete all of the Work re quired in strict complian ce with the Contract Documents as specified in Article 5 below for the following Project:

WATER DEPARTMENT RESTROOM PROJECT
The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPL ETION. The Work shall be comm enced on the date stated in the City’s Notice to Pr oceed. The Contractor shall complete all Wo rk required by the Contract Documents within Eighty (80) W orking Days from the commencement date stated in the Notice to Proceed. By its signature hereun der, Contractor ag rees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE . The City shall pay to the C ontractor as full compensation for the performance of the Contra ct, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs.

ARTICLE 4. LIQUIDATED DAMAGES . In accordance with Government Code section 53069.85, it is agreed that the Contractor will pa y the City the sum of $1,000.00 for each and every calendar day of delay beyond the time pres cribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Artic le does not exclude recovery of other damages specified in the Contract Documents.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT. The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Contractor's Bid Forms
Contractor’s Certificate Regarding Workers’ Compensation Bid Bond

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CONTRACT
30 Designation of Subcontractors
Information Required of Bidders
Non-Collusion Affidavit form
Contract
Performance Bond
Payment (Labor and Materials) Bond
General Conditions
Special P
rovisions (or Special Conditions)
Technical Specifications
Greenbook Standard Specifications (Sections 1-9 Excluded) Addenda
Plans and Contract Drawings
Approved and fully executed change orders
Any other documents contained in or incorporated into the Contract The Contactor shall complete the Work in strict accordance with a ll of the Contract Documents.

All of the Contract Documents are intended to b e complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW . Each and every provision of law required to be included in these Contrac
t Documents shall be deemed to be included in these
Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not lim ited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Project.

ARTICLE 7. INDEMNIFICATION . Contractor shall provide inde mnification as set forth in the General Conditions.

ARTICLE 8. PREVAILING WAGES . Contractor shall be require d to pay the prevailing rate of wages in accordan
ce with the Labor Code which such rates shall be made available at Public Works Department or may be ob tained online at http//www.dir.ca .gov/dlsr. and which must be posted at the job site. If the Work involves fede ral funds or otherwise re quires compliance with the Davis-Bacon Fair Labor Standards Act, the Contractor and all its subcontractors shall comply with the higher of the state or federal prevailing wage rates.

IN WITNESS WHEREOF, this Contract has b een duly executed by the above-named parties, on the day and year above written.

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CONTRACT
31 CITY OF COLTON
By:

Signature
Name

Title
Attest:

City Clerk
Recommended By:

Signature
Name

Title
[NAME OF CONTRACTOR]
By:

Signature
Name
Title
License Number

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ITEM NO. 9

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: STACEY DABBS, FINANCE DIRECTOR
SUBJECT: APPROVE AND ADOPT A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF COLTON, CALIFORNIA APPROVING A JOINT

COMMUNITY FACILITIES AGREEMENT BY AND BETWEEN THE

COLTON JOINT UNIFIED SCHOOL DISTRICT, MODERN PACIFIC

HOMES, LLC, COLTON LAND AND TOWER, LLC, AND THE CITY
OF COLTON, RESOLUTION NO. R-114-24.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

Adopt a Resolution of the City Council of the City of Colton, California Approving a Joint Community Facilities Agreement by and Between the Colton Joint Unified School District, Modern Pacific Homes, LLC, Colton Land and Tower, LLC, and the City of Colton.

BACKGROUND

The Colton Joint Unified School District (the “School District”), Modern Pacific Homes, LLC and Colton Land and Tower, LLC (collectively the “Property Owners) have asked the City of Colton (the “City”) to participate in a joint community facilities agreement entitled “Joint Community Facilities Agreement Between Colton Joint Unified School District, The City of Colton, Modern Pacific Homes, LLC, and Colton Land and Tower, LLC (Community Facilities District No. 2024 -2)” (the “Agreement”) to finance certain public improvements of the City.

The subject property related to the Agreement is Tentative Tract Map No. 18233, consisting of Assessor Parcel Number 0163 -341-05, which is located with in the boundaries of the City and is being developed by Property Owners.

The School District, as the lead agency, has initiated proceedings to establish a community facilities district to be designated as “Community Facilities District No. 2024 -2 of the Colton 9 Packet Pg. 384
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November 19, 2024

Joint Unified School District, County of San Bernardino, State of California” (“CFD No. 2024 - 2”), for the purpose, among others, of financing through the sale of bonds or the levy of special taxes to pay for the design, construction, and/or acquisit ion of certain school facilities of the School District (the “School Facilities”), in satisfaction of the obligation of the Property Owners for the payment of certain school fees to the School District as required by California law, and for the purpose, among others, of financing through the sale of federally taxed bonds or the levy of special taxes to pay for the design, construction, and/or acquisition of certain public facilities of the City, as described in the Agreement (the “City Facilities”), in part ial satisfaction of the obligation of the Property Owners for the payment of certain development impact fees to the City.

DISCUSSION

By entering into the Agreement, the City will be entitled to a portion of the bond proceeds anticipated to be issued for the purposes of financing a portion of the City Facilities Property Owners are conditioned to provide. However, the City does not anticipate being able to utilize bond proceeds in compliance with federal tax requirements established for tax -exempt bonds.

As such, the City will only accept proceeds of bonds to finance City Facilities if they are issued on a federally taxable basis. The School District shall not issue bonds to finance City Facilities on a federally tax-exempt basis.

Following the City Council’s approval of the resolution this evening, the City Manager and City Finance Director (each, an “Authorized Officer”) are authorized to execute and deliver the Agreement on behalf of the City. Each Authorized Officer is authorized to consent to any such modifications of the Agreement as may be necessary to effectuate its purposes.

Exempt from CEQA

This action is not subject to the requirements of the California Environmental Quality Act (“CEQA”). The approval of the resolution is not a “project ” within the meaning of 14 CCR Section 15378 (“State CEQA Guidelines”) because it has no potential for resulting in direct or indirect physical change in the environment. The subsequent funding anticipated by the Agreement is exempt from CEQA pursuant to California Public Resources Code section 21080(b)(8) and State CEQA Guidelines section 15273(a) because such funding is necessary and reasonable to fund the public facilities required to be funded by the Property Owners.

FISCAL IMPACT

There is no immedi ate fiscal impact to the City as the costs of negotiating the Agreement was paid for through a deposit provided by the Property Owners. The future anticipated bond proceeds and special tax revenues proposed to be levied by CFD 2024 -2 will provide funding for required facilities to mitigate the impacts of new development.

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ALTERNATIVES

1. Provide alternative direction to City staff.

ATTACHMENT

1. Resolution R-114-24 JCFA with Colton Joint USD CFD No. 2024-2

2. CJUSD - CFD No. 2024-2 - JCFA (City of Colton)
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RESOLUTION NO. R-114-24

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON,

CALIFORNIA APPROVING A JOINT COMMUNITY FACILITIES

AGREEMENT BY AND BETWEEN THE COLTON JOINT UNIFIED

SCHOOL DISTRICT, MODERN PACIFIC HOMES, LLC, COLTON

LAND AND TOWER, LLC, AND THE CITY OF COLTON

WHEREAS, Modern Pacific Homes, LLC and Colton Land and Tower, LLC (collectively the “Property Owners) and the Colton Joint Unified School District (the “School Distric t”) have asked the City of Colton (the “City”) City Council (“City Council”) to participate in a joint community facilities agreement entitled “Joint Community Facilities Agreement Between Colton Joint Unified School District, The City of Colton, Modern Pacific Homes, LLC, and Colton Land and Tower, LLC (Community Facilities District No. 2024-2)” (the “Agreement”) to finance certain public improvements as further defined below; and
WHEREAS, the School District, as the lead agency, has initiated proceedings to establish a community facilities district to be designated as “Community Facilities District No. 2024 -2 of the Colton Joint Unified School District, County of San Bernardino, State of California ” (“CFD No. 2024-2”), pursuant to Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the California Government Code, commonly known as the “Mello-Roos Community Facilities Act of 1982 ” (the “Act”), for the purpose, among others, of financing through the sale of bonds or the levy of special taxes to pay for the design, construction , and/or acquisition of certain school facilities of the School District (the “School Facilities”), in satisf action of the obligation of the Property Owners for the payment of certain school fees to the School District as required by California law, and for the purpose, among others, of financing through the sale of federally taxed bonds or the levy of special taxes to pay for the design, construction , and/or acquisition of certain public facilities of the City (the “City Facilities”), in partial satisfaction of the obligation of the Property Owners for the payment of certain fees to the City; and WHEREAS, the City does not anticipate being able to utilize bond proceeds in compliance with federal tax requirements e stablished for tax -exempt bonds and as such the City will only accept proceeds of bonds to finance City Facilities if they are issued on a federally taxable basis ; and
WHEREAS, CFD No. 2024 -2 is proposed to encompass property located in Tentative Tract Map No. 18233, consisting of Assessor Parcel Number 0163-341-05, which is located within the boundaries of the City and is being developed by Property Owners; and WHEREAS, pursuant to Sections 53316.2 through 53316.6 of the Act, a community facilities district may finance facilities to be owned or operated by an entity other than the agency that created the district pursuant to a joint community facilities agreement if the legislative body of each entity adopts a resolution declaring that such a joint agreement would be beneficial to the residents of that entity; and
WHEREAS, there has been presented to the City Council a form of the Agreement to be entered into among the School District, Property Owners, and the City; and

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WHEREAS, the City C ouncil has determined that the proposed Agreement will be beneficial to the residents of the City.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:

SECTION 1. The foregoing recitals are all true and correct and are incorporated herein by this reference.

SECTION 2. The City Council hereby determines that the Agreement, attached hereto as Exhibit A and incorporated here in by this reference , by and between the School District, the Property Owners, and the City will be beneficial to the residents of the City.

SECTION 3. The Agreement is approved in the form submitted to the City Council at the meeting at which this Resolution is adopted and the City Manager and City Finance Director (each, an “Authorized Officer”) are authorized to execute and deliver the Ag reement on behalf of the City. Each Authorized Officer is authorized to consent to any such modifications of the Agreement as may be necessary to effectuate its purposes.

SECTION 4. The Deputy City Clerk to the City Council shall deliver an executed copy of the Agreement to the School District.

SECTION 5. This Resolution shall become effective immediately following its adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Colton, this 19th day of November, 2024 by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

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City of Colton
FRANK J. NAVARRO
Mayor

ATTEST:

STEPHANIE VARGAS
Deputy City Clerk

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EXHIBIT “A”

JOINT COMMUNITY FACILITIES AGREEMENT
(ATTACHED)

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JOINT COMMUNITY FACILITIES AGREEMENT BETWEEN

COLTON JOINT UNIFIED SCHOOL DISTRICT, THE CITY OF COLTON, MODERN

PACIFIC HOMES, LLC, AND COLTON LAND AND TOWER LLC
(COMMUNITY FACILITIES DISTRICT NO. 2024-2)
THIS JOINT COMMUNITY FACILITIES AGREEMENT (“Agreement”) is entered into as of the ____ day of ___________, 20 24 by and between COLTON JOINT UNIFIED SCHOOL DISTRICT, a school district of the State of California (the “School District”); MODERN PACIFIC HOMES, LLC, a California limited liability company (“Moder n Pacific”); COLTON LAND AND TOWER LLC, a Wyoming limited liability company (“Colton Land,” and collectively with Modern Pacific, the “Owners”); and THE CITY OF COLTON, a municipal corporation (the “City”). The foregoing named parties may be referred to h erein as either a “Party” or “Parties.”
R E C I T A L S :

A. Modern Pacific and Colton Land are the Owners of the property that is subject to, and upon the recording of final subdivision maps, will be within Tract No. 18233 in the City. The Owners have requested that the School District establish a community facilities district pursuant to the Mello-Roos Community Facilities Act of 1982, Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code (the “Mello-Roos Act”) to include such property (the “Property”), as described in Exhibit “A” attached hereto and incorporated herein by this reference , for the purpose of financing, with the proceeds of the sale of the bonds of the community facilities district (i) the design, construction and/or acquisition of certain school facilities of the School District (the “School Facilities ”), in satisfaction of the obligation of the Property and the Owners for the payment of school fees to the School District as required by Cali fornia law , and (ii) the design, construction and/or acquisition of certain public facilities of the City (the “City Facilities”) in partial satisfaction of the obligation of the Property and the Owners and their tract for the payment of certain fees to th e City. The City Facilities are described in Exhibit “B” attached hereto and incorporated herein by this reference.

B. Pursuant to Sections 53316.2, 53316.4 and 53316.6 of the Government Code, (i) a community facilities district may finance facilities to be owned or operated by an entity other than the agency that created the community facilities district pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to that section; (ii) a party to such an agre ement may use the proceeds of any bonds or other indebtedness issued pursuant to the Mello -Roos Act to provide facilities which that party is otherwise authorized by law to provide, even though another party to the agreement does not have the power to prov ide those facilities; and (iii) no local agency which is a party to a joint community facilities agreement shall have primary responsibility for formation of a community facilities district unless it is reasonably expected to have responsibility for provid ing facilities to be financed by a larger share of the proceeds of bonds of the community facilities district created pursuant to the agreement than any other local agency.

C. It is estimated that among the School District and the City, the School District will receive the largest share of the proceeds of the sale of the bonds of CFD No. 2024-2,

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and the School District is, therefore, the appropriate agency to have primary responsibility for formation of the proposed community facilities district.

D. The pur pose of this Agreement is to set forth the understandings of the School District, the CFD, the Owners, and the City with respect to the allocation of the proceeds of the sale of such Bonds for the design, construction and acquisition of the City Facilities.

NOW, THEREFORE, in consideration of the preceding recitals , incorporated herein by this reference, the mutual agreements and covenants hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Formation Proceedings . The Board of Education of the School District (the “Board of Education”) has conducted proceedings pursuant to the Mello -Roos Act for the formation of a community facilities district whi ch may be designated “Community Facilities District No. 2024-2 of the Colton Joint Unified School District, County of San Bernardino, State of California” (“CFD No. 2024-2”) and the issuance of bonds thereof.

2. Issuance of Bonds. In the event that bond s, or other securities, are issued by, or on behalf of , CFD No. 2024 -2 by the School District ("Bonds"), the School District , the CFD and the Owners shall determine the amount of Bond Proceeds to be deposited into the City Facilities Account and each subac count thereof. “Bond Proceeds” shall mean those funds generated by the sale of the Bonds of CFD No. 2024 -2 and investment earnings thereon, net of costs of issuance, reserve fund, capitalized interest, and funded administrative expenses. “City Facilities Account” shall mean the fund, account, or sub -account of CFD No. 2024 -2 (regardless of its designation within the Bond Resolution) into which a portion of the Bond Proceeds may be deposited to finance City Facilities and which may have subaccounts.

As Bond Proceeds are transferred to the City and reserved to fund City Facilities, the Owners shall receive a credit in the amount transferred against the payment of City Facilities.

CFD No. 2024-2 shall provide the City notice at least thirty (30) days in ad vance of Board of Education approval of Bond issuance of the approximate amount that CFD No. 2024-2 intends to deposit into the City Facilities Account . Nothing herein shall supersede the obligations of an owner (including the Owners) of the Property to m ake an advance or pay the City all applicable fees when due. The purpose of this Agreement is to provide a mechanism by which CFD No. 2024-2 may issue Bonds to provide a source of funds to finance City Facilities in lieu of payment of City fees. In the ev ent that Bond Proceeds, including investment earnings thereon, are not available or sufficient to satisfy the obligation, then the Owners or any successor in interest shall remain obligated to make an advance or pay City fees to the City as a condition to the Property.

The Board of Education of the School District, acting as the Legislative Body of CFD No. 2024 -2, shall, in its sole discretion, determine whether, when, under what circumstances, and to what extent the Bonds shall be issued. The Bonds sh all be issued only if all applicable requirements of State and Federal law and all School District policies have been satisfied or waived by the School District. In no event shall the City or the Owners have any right to compel CFD No. 2024-2 to issue the Bonds. If and when the School District determines it will issue Bonds, it shall take such actions necessary in its reasonable discretion and in

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accordance with the terms of the Rate and Method to ensure that the total effective tax rate for completed homes within CFD No. 2024 -2 does not exceed 2%. “Rate and Method” shall mean the Rate and Method of Apportionment of the Special Tax authorizing the levy and collection of special taxes within CFD No. 2024 -2 pursuant to proceedings undertaken for the formati on of CFD No. 2024-2.

The City does not anticipate being able to utilize the Bond proceeds in compliance with federal tax requirements established for tax -exempt bonds . As such, the City will only accept proceeds of Bonds to finance City Facilities if th ey are issued on a federally taxable basis. The School District shall not issue Bonds to finance City Facilities on a federally tax-exempt basis.

3. Disbursement for City Facilities.
(a) Upon the funding of the City Facilities, the School District or Ow ners shall notify the City of the amount of Bond proceeds to be reserved to fund City Facilities and the City may execute and submit a payment request, attached hereto as Exhibit “C” (“Payment Request”), for payment to the School District requesting disbursement of an amount equal to all advances from the City Facilities . Upon the City’s receipt of funds pursuant to such Payment Request, and subject to City approval, the Owners shall receive reimbursement from the City of the advances from the City. Moneys on deposit in the City Facilities Account shall be invested and disbursed at the direction of CFD No. 2024-2.
(b) From time to time following the funding of the City Facilities Account, the Owners may notify the City in writing and request a disbursemen t from the City Facilities Account to fund City Facilities by executing and submitting a Payment Request. Upon receipt of such Payment Request completed in accordance with the terms of this Agreement, CFD No. 2024-2 shall wire transfer or otherwise pay to the City such requested funds to the extent that Bond Proceeds are available in the City Facilities Account for such purpose. Upon such notice and the City’s receipt of such disbursement relating to City Facilities, and subject to City approval, Owners shall be deemed to have satisfied the applicable City Fees with respect to the number of dwelling units or lots for which the City Fees would otherwise have been required in an amount equal to such disbursement.
(c) The City agrees that prior to executing a nd submitting a Payment Request requesting payment of Bond proceeds from CFD No. 2024-2, it shall review and approve all costs included in such request and will disburse such amounts to pay the costs of the City Facilities following receipt of funds from C FD No. 2024-2 allocated to th e Property. In the event that the City does not disburse any Bond Proceeds received by it to third parties within a reasonable period of time from the receipt thereof, it will trace and report to CFD No. 2024-2 all earnings, if any, earned by the City, from the date of receipt of such Bond Proceeds by the City to the date of expenditure by the City for capital costs of the City Facilities. (d) The City agrees to maintain adequate internal controls over its payment function and to maintain accounting records in accordance with generally accepted accounting procedures as to receipt and expenditure/disbursement of Bond Proceeds for City Facilities. The City will, upon request, provide the School District and/or Owners with acc ess to the City’s

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records related to the City Facilities for purposes of assisting the School District in calculating the arbitrage rebate obligation of CFD No. 2024-2, if any. (e) The School District or CFD No. 2024-2 agrees to maintain full and accurate records in accordance with generally accepted accounting procedures of all amounts, and investment earnings, if any, expended from the City Facilities Account. The School District or CFD No. 2024-2 will, upon request, provide the City and/or the Owners wi th access to the School District’s or CFD No. 2024-2’s records related to the City Facilities Account. (f) Notwithstanding the foregoing, the School District and City acknowledge that the School District has the ultimate responsibility for issuance of t he Bonds, the administration of CFD No. 2024-2 and the federally tax-exempt status of any Bonds issued by CFD No. 2024-2. Accordingly, the Board of Education shall have ultimate responsibility for making all decisions with respect to the issuance of any B onds and the levy of any Special Taxes.

4. Responsibility and Indemnification . The School District shall have sole responsibility for the design, construction and acquisition of the School Facilities and the City shall have sole responsibility for the des ign, construction and acquisition of the City Facilities.

The School District agrees to indemnify and hold the City harmless from any and all liability of any nature whatsoever, including attorneys ’ fees and costs, with respect to the design, construction and acquisition of the School Facilities and the expenditure of the amounts of the proceeds of the Bonds which are deposited in the School Facilities Account pursuant to Section 3 above. The City agrees to indemnify and hold the School District harmless f rom any and all liability of any nature whatsoever, including attorneys’ fees and costs, with respect to the design, construction and acquisition of the City Facilities and the expenditure of the amounts of the proceeds of the Bonds which are deposited in the City Facilities Account pursuant to Section 3 above. The School District further agrees to defend, indemnify and hold the City harmless from any responsibility or liability, including attorneys ’ fees and costs, in the event of any challenge by any per son regarding (i) the School District ’s authority to issue and sell the Bonds , (ii) the legal sufficiency of the proceedings for the formation of CFD No. 2024-2, or (iii) the authority of the School District to levy special taxes on the land in CFD No. 202 4-2 to pay the principal of and interest on the Bonds.

The Owners agree to indemnify and hold the City, School District, CFD No. 2024-2, and their respective officers, employees, agents, and each and every one of them, harmless from any and all liability o f any nature whatsoever, including attorneys’ fees and costs, with respect to any act, failure to act, or omission of the Owners with respect to this Agreement.

5. Entire Agreement. This Agreement contains the entire agreement between the Parties with r espect to the matters provided for herein and supersedes all prior agreements and negotiations between the Parties with respect to the subject matter of this Agreement.

6. Amendment. This Agreement may be amended at any time by a subsequent written agreement signed on behalf of the Parties.

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7. Beneficiaries. No person or entity shall be deemed to be a third party beneficiary hereof, and nothing in this Agreement (either express or implied) is intended to confer upon any person or entity, other than the Sc hool District and the City any rights, remedies, obligations or liabilities under or by reason of this Agreement.

8. Counterparts. This Agreement may be executed in counterparts, each which shall be deemed an original, but all of which shall constitute but one agreement.

9. Notices. All written notices to be given hereunder shall be given to the Party entitled thereto at its address set forth below, or at such other address as such Party may provide to the other Parties in writing from time to time, namely:

To School District: Colton Joint Unified School District 1212 Valenica Drive
Colton, CA 92324
Email: [email protected]
Attn: Associate Superintendent of Business
Services
To CFD No. 2024-2:

CFD No. 2024-2
c/o Colton Joint Unified School District
1212 Valenica Drive
Colton, CA 92324
Email: [email protected]
Attn: Associate Superintendent of Business
Services

With Copies to: Atkinson, Andelson, Loya, Ruud & Romo
12800 Center Court Drive, Suite 300
Cerritos, CA 90703
Fax No.: (562) 653-3333
Email: [email protected]
Attn: Andreas Chialtas, Esq.

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To Owners: Modern Pacific Homes, LLC
PO Box 7538
Capistrano Beach, CA 92624
Telephone: ________________
Email: [email protected]
Attn: Scott McKhann

Colton Land and Tower LLC
PO Box 7538
Capistrano Beach, CA 92624
Telephone: ________________
Email: [email protected]
Attn: Scott McKhann

If to the City: City of Colton
650 N La Cadena Drive
Colton, Ca 92324
Telephone: (909) 370-5099
Email: ___________
Attn: ___________

Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the Party to whom it is addressed (a) if given by courier or delivery service or if personally served or delivered, upon delivery, (b) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, or (c) if given by any other means, upon delivery at the address specified in this Section.

10. California Law and Venue . This Agreement shall be governed and construed in accordance with the laws of the State of California. Venue shall be held exclusively in the County of San Bernardino.

11. Severability. If any part of this Agreement is held to be illegal or unenforceable by a court of competent jurisdiction, the remainder of this Agreement shall be given effect to the fullest extent reasonably possible.

12. Successors. This Agreement shall be binding upon and inure to the benefit of the successors of the Parties hereto.

13. Assignment. This Agreement may be assigned, in whole or in part, by the Owners to the purchaser of any parcel of land within the Property provided, however, such assignment shall not be effective unless and until the School District and the City have been notified, in writing, of such assignment.
[Signatures to appear on the following page.]

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Attachment: CJUSD - CFD No. 2024-2 - JCFA (City of Colton) (4737 : Joint CFD - CJUSD and Modern Pacific Homes, LLC) 7 Error! Unknown document property name.

IN WITNESS WHEREOF, the parties have executed this Agreement on the day and y ear first above written.

COLTON JOINT UNIFIED SCHOOL DISTRICT
By: _________________________________
President of the Board of Education
ATTEST:
______________________________
Clerk of the Board of Education

THE CITY OF COLTON
By: __________________________________
City Manager
ATTEST:
______________________________
City Clerk

MODERN PACIFIC HOMES, LLC,
a California limited liability company

By: ____________________________

Name: __________________________

Title: ____________________________

COLTON LAND AND TOWER LLC,
a Wyoming limited liability company

By: ____________________________

Name: __________________________

Title: ____________________________

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Attachment: CJUSD - CFD No. 2024-2 - JCFA (City of Colton) (4737 : Joint CFD - CJUSD and Modern Pacific Homes, LLC)

A-1

Error! Unknown document property name.

EXHIBIT “A”

DESCRIPTION OF THE PROPERTY

County of San Bernardino Assessor Parcel No. 0163-341-05

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C-1

Error! Unknown document property name.

EXHIBIT “B”

DESCRIPTION OF CITY FACILITIES

City Facilities . Consist of the acquisition, purchase, construction, expansion, improvement or rehabilitation of public improvements authorized to be financed with City of Colton development impact fees (“DIF”) including, but not limited to traffic facilities, police facilities, wastewater facilities, civic center facilities, fire station facilities, library facilities, parkland acquisition, and park facilities improvements and all appurtenances and ap purtenant work in connection with the foregoing, including the cost of engineering, planning, designing, materials testing, coordination, construction staking, construction management and supervision for such City Facilities, and any other expense incident al to the construction, acquisition, modification, expansion or rehabilitation of such City Facilities, all as permitted under the provisions of the Mello -Roos Community Facilities Act of 1982, as amended. The amount of the City Facilities will be based on the applicable fee schedule, which is subject to change.

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Attachment: CJUSD - CFD No. 2024-2 - JCFA (City of Colton) (4737 : Joint CFD - CJUSD and Modern Pacific Homes, LLC)

C-1
Error! Unknown document property name.

EXHIBIT “C”

FORM OF CITY PAYMENT REQUEST
PAYMENT REQUEST FORM – CITY FACILITIES ACCOUNT
[All such payments shall be made by check or wire transfer in accordance with payment instructions submitted with this form and the Fiscal Agent shall have no duty or obligation to authenticate such payment instructions or the authorization thereof.] ( ) PROGRESS PAYMENT
( ) FULL/FINAL PAYMENT
The Fiscal Agent is hereby requested to pay from the City Facilities Account , as established by Resolution No. _________ of the Board of Education of the District, adopted on ____________, 20__, and the Fiscal Agent Agreement dated as of _______________ 1, 2 0__, executed in accordance therewith, to the person, corporation, or other entity designated below as Payee, the sum set forth below such designation, in payment of the Project Costs for City Facilities Costs described below. The amount shown below is (i ) due and payable to the City for the [check as applicable]: [__] City Service Fees/ [__] City Facilities Costs) described below or (ii) payable to reimburse the Owner for (check as applicable: [__] City Service Fees/ [__] City Facilities Costs) advanced to City as described below and, in any case, has not formed the basis of any prior request for payment. Certification of Authorized Representatives of City and Owner are required to process this request- see Attachment #1.

Payee: __________________________________________________________________ Address: __________________________________________________________________

Amount: $_________________________________________________________________ Description of Project Costs for City Facilities Account or portion thereof accepted by Community Facilities District No. 2024-2 and authorized to be paid to the Payee: Attach documentation of amounts paid and identification of parcels. By requisitioning Bond Proceeds as described herein, City is not passing upon , determining or assuming the tax -exempt status of the Bonds for federal or California income tax purposes.

Project Costs: ____________________________________________________________ Executed by Authorized Representative for
Community Facilities District No. 2024-2**:
-EXHIBIT-
Signature ________________________________
Name: __________________________________
Title: ___________________________________
Dated: ______________________________
Payment Request No.: __________________
**This signature will constitute the School District’s written consent under the City Joint Community Facilities Agreement for the allocation of Bond Proceeds for Project Costs as provided in this and other duly -authorized Payment Request Forms for payment from the applicable account(s) of the City Facilities Account .

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Attachment: CJUSD - CFD No. 2024-2 - JCFA (City of Colton) (4737 : Joint CFD - CJUSD and Modern Pacific Homes, LLC)

C-2
Error! Unknown document property name.

ATTACHMENT NO. 1 TO EXHIBIT C

CERTIFICATION OF AUTHORIZED REPRESENTATIVES OF

OWNER AND CITY
The undersigned authorized representative of ____________________________ _______________________________, certifies the following: (a) The fee amounts listed in th e attached documentation are ( check [√] one ): [__] (i) due and payable to City for the City Fees described below; or [__] (ii) payable to reimburse the Owner for City Fees advanced to City; and, i n any case, has not formed the basis of any prior request for payment; and (b) the connection fees fund capital public facilities of City under the fee ordinances of City setting the fees.

Authorized Representative of Owner:
-EXHIBIT-
Signature:

Name:

Title:

Date:

The undersigned authorized representative of the City, certifies the following: (a) The fees amounts listed in the attached documentation are ( check [√] one): [__] (i) due and payable to City for the City Fees described below; or [__] (ii) payable to reimburse the Owner for City Fees advanced to City; and, in any case, has not formed the basis of any prior request for payment; and (b) the connec tion fees fund capital public facilities of City under the fee ordinances/resolutions of City setting the fees.

Authorized Representative of City
-EXHIBIT-

By:

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ITEM NO. 10

STAFF REPORT

DATE: NOVEMBER 19, 2024
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BILL SMITH, CITY MANAGER
PREPARED BY: ANTHONY VEGA, POLICE CHIEF
SUBJECT: APPROVE LEASE AGREEMENT WITH ENTERPRISE FLEET
MANAGEMENT, INC.

RECOMMENDED ACTION

Staff recommends that the City Council take the following action:

1. Approve a Master Equity Lease Agreement with Enterprise Fleet Management, Inc. for Ford, Explorer Police Interceptors and unmarked/administrative vehicles, and;

2. Approve the lease agreement of 6 vehicles for the use of the Police Department through the Enterprise Fleet Management Program, for the amount not to exceed $500,000 in accordance with Colton Municipal Code 3.08.140(C).

3. Exempt City Staff from Colton Municipal Code 3.08.150 (a) in accordance with the terms of the Enterprise Master Lease Agreement for fully depreciated vehicles.

BACKGROUND

The Colton Police Department manages twenty-four ( 24) vehicles assigned to the Patrol Division. To ensure efficient use of public fu nds and resources, staff explored multiple options for fleet replacement and maintenance. These options included maintaining the current purchase and repair approach, increasing vehicle purchases, or leasing. Additionally, staff contacted several surrounding cities who currently lease vehicles, including the cities of Redlands, Rialto, Coachella, Westminster and Corona.

After evaluating, the staff concluded that leasing both the patrol fleet and unmarked administrative vehicles would be the most effectiv e strategy for vehicle rotation and maintenance.
10 Packet Pg. 402
Staff Report to the Mayor and City Council
Lease Agreement - Enterprise Fleet Management, Inc.

November 19, 2024