Agenda packet — Colton City Council, December 16, 2025 (part 1 of 3)

City of Colton
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
City of Colton Website
Mayor Frank J. Navarro
Council Members:

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

City Clerk Isaac T. Suchil
City Treasurer Henry M. Razo

City Manager William R. Smith
City Attorney Carlos Campos

Agenda
City Council
Colton Utility Authority, Colton Public Financing Authority Colton Housing Authority
Regular Meeting
Tuesday, December 16, 2025 – 5:00 PM
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. If you wish to address the City Council regarding a Closed Session item, please fill out and submit a public comment card into the public comment card box BEFORE the meeting begins. During the public comment period, the City Clerk will call each speaker by name to approach the podium.

Please begin your public comment by stating your name and your city of residence, then proceed to share the rest of your public comment. You will have a time limit of 3 minutes to complete your public comment; however, the presiding officer does have the authority to exercise discretion to extend or limit time as provided for in the City Council Manual of Procedure.

It is important to remember that the Council is prohibited by law from discussing or taking immediate action on items during this public comment period; If any matter does require action, it will be referred to by staff for investigation and any report will be provided at a subsequent Council meeting.

If you would like to submit paperwork to the City Council members, you will also need to provide a copy to the City Clerk for the Official Record. ______________________________________________________________________________

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Closed Session
1) Public Employee Performance Evaluations
Job Titles: City Attorney & 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 Peter Tasaka – The Vineyard Church
Flag Salute
Veterans of Foreign Wars (VFW) – Bernie Moyeda
Roll Call
Ceremonial Matters
Presentations, Awards, Proclamations
• Retirement of K9 Boy and Introduction of K9 Brita
• Business Focus - House of Eggs
• Recognition - Amanda Estrada - Exceptional Athlete
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Mayor and Council Items
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 participant 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 submit your filled out public comment card into the public comment card box before the meeting begins. Once your name is called you may approach the podium. Please begin your public comment by stating your name and your city of residence; then proceed to share your public comment. The applicant will be allowed 5 minutes to address the Council, and all other people will be allowed 3 minutes. The presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.
1) Public Hearing - Right-of-Way Vacation - Time and Place Fixed to Consider a Public Hearing to Approve and Adopt a Resolution of the City Council of Colton, California, to Vacate Certain Portions of Right-of-Way, the Full Width of the Alley North of Valley Boulevard, from Mt. Vernon Avenue to 280 Feet West of Mt. Vernon Avenue, and Certain Portions of Right-of-way, Approximately 234 Square Feet, on the West Side of Mt. Vernon Avenue North of Valley Boulevard, Resolution No. R-96-25.

Staff Person: Chad Blais
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Business Items
To speak on business items, it is requested that you submit your filled out public comment card into the public comment card box before the meeting begins. Once your name is called you may approach the podium. Please begin your public comment by stating your name and your city of residence; then proceed to share your public comment. The applicant will be allowed 5 minutes to address the Council, and all other people will be allowed 3 minutes. The presiding officer shall have certain discretion to extend or limit time as provided for in the City Council Manual of Procedure.
1) Terrace Water Consolidation - Approve Authority to Apply for the Expedited Drinking Water Grant to Fund Consolidation with Terrace Water Company and Approve the Terrace Water Company and City of Colton Consolidation Agreement, Resolution No. R-92-25 & R- 100-25.

Staff Person: Chad Blais
Public Comment - Limit 3 Minutes
This is the portion of the meeting specifically set aside to invite your comments regarding Consent Calendar items or any other general subject. If you wish to address the City Council please fill out and submit a public comment card into the public comment card box BEFORE the meeting begins. During the public comment period, the City Clerk will call each speaker by name to approach the podium.

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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. 1) Minutes - Approval of Minutes for the City Council Regular Meeting Held on December 02, 2025, on File in the Office of the City Clerk.

City Clerk: Isaac T. Suchil
2) Warrants - Approve voucher numbers 222865 to 222949 dated 11/13/2025 and totaling $1,093,950.79; wires dated 11/17/2025 and totaling $6,239,493.65; voucher numbers 222950 to 223085 dated 11/20/2025 and totaling $11,714,649.26 and a payroll disbursement listing dated 10/11/2025 to 10/24/2025 and totaling $1,221,735.99.

Staff Person: Stacey Dabbs
3) Employment Agreement - Thomas Miller - Adopt a Resolution Approving an Employment Agreement with Thomas Miller, Resolution No. R-83-25.

Staff Person: Thomas Cody
4) Contract Award - DM Contracting - Approve Contract Award to DM Contracting for Pavement Patch Repairs for Water and Wastewater Projects.

Staff Person: Chad Blais
5) Contract Award - J. Peace Builders Inc. - Approve Award of Contract to J. Peace Builders, Inc. as the Lowest Responsive and Responsible Bidder for the Fire Station 214 Restroom Remodel Project in the Amount of $121,500.

Staff Person: Chad Blais
6) Franchise Fee Amendment - Approve a Resolution Restructuring the Franchise Fee Imposed on CR&R Relating to the Provision of Solid Waste Service as a Result of New Law and Taking Other Actions Reacting Thereto, Resolution No. R-101-25.

Staff Person: Carlos Campos
7) Notice of Completion - Asphalt Paving Project - Approve the Execution and Recordation of the Notice of Completion for the Fiscal Year 24/25 Asphalt Paving Project.

Staff Person: Chad Blais
8) Pre-Qualified List - On-Call Engineering - Approve List of Pre-Qualified Consulting Firms to Provide On-Call Engineering, Construction Management, and Inspection Services.

Staff Person: Chad Blais

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9) Purchase - Altec Industries, Inc. - Approve the Purchase of One Altec AT41M Articulating Telescopic Aerial Device.

Staff Person: Charles Berry
10) Second Reading of Ordinance No. O-10-25 - Approve Second Reading of an Ordinance of the City Council of the City of Colton, California, an Ordinance of the City Council of the City of Colton to Amend Section 10.60 Of Title 10 of the Colton Municipal Code, as they Pertain to Truck Routes in the City of Colton and Adoption of an Addendum to the Environmental Impact Report for the Colton 2013 General Plan Update Project (State Clearinghouse No. 2012031037): File Index Number Dap25-0024, Ordinance No. O-10-25.

Staff Person: Stephanie M. Vargas
11) Second Reading of Ordinance No. O-12-25 - Approve Second Reading of an Ordinance of the City Council of the City of Colton, California, to Adopt by Reference the 2025 California Building Code, Incorporating the "International Building Code, Volumes 1 and 2, 2021 Edition Including Appendices; the 2025 California Fire Code, Incorporating the "International Fire Code" 2024 Edition Including Appendices Thereto; the 2025 California Wildland-Urban Interface Code, Incorporating the “International Wildland-Urban Interface” 2024 Edition Including Appendices Thereto; the 2025 California Residential Code, Incorporating the "International Residential Code" 2025 Edition Including Appendices Thereto; the 2025 California Mechanical Code; Including Appendices Thereto; the 2025 California Plumbing Code, Incorporating the "California Plumbing Code", 2025 Edition, Including Appendices; the 2025 California Green Building Standards Code Including Appendices Thereto; 2025 California Energy Efficiency Standards Including Appendices Thereto; Adopting by Reference the Uniform Code for the Abatement of Dangerous Buildings, 1997 Edition; and the International Property Maintenance Code, 2021 Edition; with Appendices and Amendments Thereto; Together with Certain Amendments, Deletions, Additions, and Exceptions and are Hereby Adopted by Reference in Their Entirety And Amended In Chapters 15.04 15.06, 15.07, 15.08, 15.09, 15.10, 15.11, 15.12,

15.13, and 15.16 of Title 15 Herein, shall Comprise the Building and Construction Regulations of the City of Colton, Ordinance No. O-12-25.

Staff Person: Stephanie M. Vargas
______________________________________________________________________________________ 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
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I, Stephanie M. Vargas, the Chief Deputy City Clerk, hereby certify that a true and correct, accurate copy of the foregoing agenda was posted, at least 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
Procedures for Addressing City Council
For the Official Record, it is requested that you submit your filled out public comment card into the public comment card box before the meeting begins. Once your name is called by the City Clerk you may approach the podium to speak. Please begin your public comment by stating your name and your city of residence; then proceed to share your public comment. 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 or 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 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.

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 9th 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 Office at (909) 370-5001 to make inquiry concerning the nature of the item described on the Agenda. The City Clerk’s Office 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 councilmembers, staff or the public request that specific items be discussed and/or removed for separate discussions or action.

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

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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, with the latest updates being approved on November 2, 2021. Copies are available in the Office of the City Clerk.

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Item: 1.

Staff Report

Meeting Date: December 16, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Chad Blais, PW & Utility Services Director Item Name: Public Hearing - Right-of-Way Vacation - Time and Place Fixed to Consider a Public Hearing To Approve and Adopt a Resolution of the City Council of Colton, California, to Vacate Certain Portions of Right-of-Way, the Full Width of the Alley North of Valley Boulevard, from Mt. Vernon Avenue to 280 Feet West of Mt. Vernon Avenue, and Certain Portions of Right-of-way, Approximately 234 Square Feet, on the West Side of Mt. Vernon Avenue North of Valley Boulevard, Resolution No. R-96-25.

Recommended Action:

Staff recommends that the City Council take the following actions:

Adopt a Resolution Ordering the following actions:

1. Vacate certain portions of right-of-way, the full width of the Alley north of Valley Boulevard, from Mt. Vernon Avenue to 280 feet west of Mt. Vernon Avenue as described and depicted in Exhibit A and Exhibit B (“Alley Vacation”) and;

2. Preserve a Colton Water, Colton Wastewater (Sewer), AT&T, and Colton Electric Utility (CEU) Easement for the vacated right-of-way, the full width of the Alley north of Valley Boulevard, from Mt. Vernon Avenue to 280 feet west of Mt. Vernon Avenue as described and depicted in Exhibit A and Exhibit B (“Electric, AT&T, Water, and Sewer Easements”) and;

3. Vacate certain portions of right-of-way, approximately 234 square feet, on the west side of Mt. Vernon Avenue north of Valley Boulevard as described and depicted in Exhibit A and Exhibit B (“Street Vacation”) and;

4. Authorize a Grant of Utility Easement for certain portions of the vacated right-of-way on the west side of Mt. Vernon Avenue, north of Valley Boulevard as described and depicted in Exhibit A and Exhibit B (“Utility Easement”) from Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company, to San Bernardino County Transportation Authority (SBCTA) and;

5. Accept a Grant of Right-of-Way Dedication In-Fee for a new ‘L’ shaped alley, south of

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‘H’ Street and west of Mt. Vernon Avenue as described and depicted in Exhibit A and Exhibit B (“Alley Dedication In Fee for Public Right-of-Way Purposes”) from Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company and;

6. Accept a Grant of Right-of-Way Dedication (corner cutback) In-Fee, on the northwest corner of Valley Boulevard and Mt. Vernon Avenue as described and depicted in Exhibit A and Exhibit B (“Corner Dedication In Fee for Public Right-of-Way Purposes”) from Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company and;

7. Authorize a Grant a Utility Easement for certain portions of the vacated right-of-way within the Alley north of Valley Boulevard, west of Mt. Vernon Avenue as described and depicted in Exhibit A and Exhibit B (“Utility Easement”) from Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company to Spectrum Pacific West, LLC, a California limited liability company and;

8. Authorize a Grant of Temporary Construction Easement for certain portions of right-of- way within the Alley north of Valley Boulevard, west of Mt. Vernon Avenue as described and depicted in Exhibit A and Exhibit B (“Easement for Construction Purposes”) from Tabbaa Mardini Real Estate Investment, LLC, a California limited liability company to San Bernardino County Transportation Authority (SBCTA) and associated with the redevelopment of the existing Truck Stop Facility located on the northwest corner of Valley Boulevard and Mt. Vernon Avenue (File Index No. DAP-001- 641);

Background:

On June 8, 2021, the City of Colton Planning Commission approved a Modification of a Conditional Use Permit (DC-17-97) and Architectural and Site Plan Review to allow a replacement of an existing 2,000 square foot gas station canopy with a new 2,542 square foot canopy, demolish an existing 12,642 square foot truck wash building and replace with a new 1,869 square foot fueling canopy and establish 17 new fueling positions on the site, remodel the existing 3,575 square foot food mart building, relocate the existing truck scale, install 3 above ground diesel tanks, and Vacation of existing alley portion between the north and south portions of the site, and approximately 486 square feet of existing right-of-way area along the eastern frontage (Mt. Vernon Avenue) of the site on property measuring approximately 1.69 acres and Zoned C-2 (General Commercial) (Downtown Overlay). As part of the site redevelopment approval, Planning Commission Resolution No. R-19-21 recommended to the City Council to approve the request to vacate a portion of the existing alley for an area encompassing 5,600 square feet on properties totaling 1.69 gross acres located within the C-2 (General Commercial – Downtown Overlay) Zone intersecting at 791 E. Valley Boulevard (File Index No. DAP-001- 641).

The project redevelopment is ongoing and the legal descriptions and plat plans, included attached, of the various instruments which include dedications, vacations, easement preservations, and temporary construction easement granting are now ready to come before the City Council for formal approval.

The procedure to abandon a public street is set forth in Streets and Highways Code 8320 et seq.,

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and the first step was for City Council to adopt a Resolution of Intention, which they did on the scheduled City Council meeting of November 18, 2025.

Issues/Analysis:

City staff has reviewed Tabbaa Mardini Real Estate Investments, LLC’s request for the right-of- way vacations and is supportive of the request based on the Planning Commission’s determination of consistency with the General Plan as required and set forth in the Streets and Highways Code 8320 et seq. Subject to public comment and discussion, the City Council shall adopt Resolution No. R-96-25, a Resolution Ordering the Vacation and proposed abandonment of certain portions of Right-of-Way, the full width of the alley north of Valley Boulevard, from Mt. Vernon Avenue to 280 feet west of Mt. Vernon Avenue, and certain portions of right-of- way, approximately 234 square feet, on the west side of Mt. Vernon Avenue, north of Valley Boulevard, at the scheduled and publicly noticed City Council meeting of December 16, 2025.

Fiscal Impacts:

None at this time.

Alternatives:

Provide alternative direction to staff.

Attachments:

1. Resolution No. R-96-25 Conduct the PH

2. 1 ALLEY VACATION - Exhibits A & B

3. 2 ELECTRIC, AT&T, WATER & SEWER EASEMENTS - Exhibits A & B

4. 3 STREET VACATION - Exhibits A & B

5. 4 GRANT OF UTILITY EASEMENT - Exhibits A & B

6. 5 GRANT OF ROW IN FEE (ALLEY) FOR ROW PURPOSES - Exhibits A & B

7. 6 GRANT OF CORNER ROW DEDICATION IN FEE - Exhibits A & B

8. 7 GRANT OF UTILITY (SPECTRUM) EASEMENT - Exhibits A & B

9. 8 GRANT OF TEMPORARY CONSTRUCTION EASEMENT - Exhibits A & B

10. PowerPoint Presentation - Alley ROW Vacation (002)

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RESOLUTION NO. R-96-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON ORDERING

THE VACATION OF CERTAIN PORTIONS OF RIGHT-OF-WAY, THE FULL WIDTH OF THE ALLEY NORTH OF VALLEY BOULEVARD, FROM MT. VERNON AVENUE TO APPROXIMATELY 280 FEET WEST OF MT. VERNON AVENUE AND CERTAIN PORTIONS OF RIGHT-OF-WAY, APPROXIMATELY 234 SQUARE FEET, ON THE WEST SIDE OF MT. VERNON AVENUE, NORTH OF

VALLEY BOULEVARD, SUBJECT TO RESERVATION OF EASEMENTS FOR

UTILITY PURPOSES, PURSUANT TO CALIFORNIA STREETS AND HIGHWAYS CODE SECTION 8320 ET SEQ.

WHEREAS, the vacation of portions of certain right-of-way, the full width of the alley, north of Valley Boulevard from Mt. Vernon Avenue to approximately 280 feet west of Mt. Vernon Avenue in the City of Colton, and more specifically identified and described in Exhibit A and Exhibit B (“Alley Vacation”), with Reservations for utilities, as identified and described in Exhibit A and Exhibit B (“Electric, AT&T, Water, and Sewer Easements”), is acceptable to the City Engineer; and

WHEREAS, the vacation of portions of certain right-of-way, approximately 234 square feet, on the west side of Mt. Vernon Avenue, north of Valley Boulevard in the City of Colton, and more specifically identified and described in Exhibit A and Exhibit B (“Street Vacation”), is acceptable to the City Engineer; and

WHEREAS, Modification of Conditional Use Permit (DC-17-97) and Architectural and Site Plan Review, also known as File Index Number: DAP-001-641, to allow replacement of an existing gas station canopy with a new larger canopy, demolition of an existing truck wash building and replacement with a new fueling canopy, establish new fueling positions on the site, remodel the existing food mart building, relocation of the existing truck scale, and installation of 3 above ground diesel tanks was approved with the Vacation of the existing alley portion between the north and south portions of the site, and originally approximately 486 square feet of existing right-of-way area along the eastern frontage (Mt. Vernon Ave.) of the site on property measuring approximately 1.69 acres in Zoned C-2 (General Commercial) (Downtown Overlay) was approved by the City Planning Commission on June 08, 2025; and

WHEREAS, on November 18, 2025, the City Council initiated proceedings to consider the Proposed Vacations and Set a Public Hearing date for December 16, 2025, pursuant to the provisions of Section 8320 et seq., of the Streets and Highways Code of the State of California; and

WHEREAS, pursuant to Streets and Highways Code Section 8322, Notice of the Hearing of the Proposed Vacations was published for at least two successive weeks in The Press-Enterprise on December 06, 2025, and December 13, 2025, prior to the hearing, and pursuant to Streets and Highways Code Section 8323, on October 29, 2025, three (3) public notices of the Proposed Vacations were conspicuously posted along the line of the alley and street (eastern frontage of the site) proposed to be vacated not more than 300 feet apart along the proposed vacation area; and

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WHEREAS, on June 08, 2021, the Planning Commission adopted a resolution finding that the Proposed Vacation conforms to the City of Colton General Plan; and

WHEREAS, on December 16, 2025, the City Council held a public hearing pursuant to the provisions of the Public Streets, Highways, and Service Easements Vacation Law, to hear and consider all evidence from persons interested, with the order to incorporate into Part 3, Division 9 of the California Streets and Highways Code; and

WHEREAS, the City Council finds and determines that the Proposed Vacation area is unnecessary for present or prospective street use and the City Council further finds and determines that the public convenience and necessity require the reservation and exception of easements for the existing utilities.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Colton:

Section 1 Order. The City Council hereby orders, pursuant to the provisions of the Public Streets, Highways, and Service Easements Vacation Law, which is now incorporated in Part 3, Division 9 of the California Streets and Highways Code, the vacation of those portions of a public street and right-of-way known as “the full width of the alley north of Valley Boulevard, from Mt. Vernon Avenue to approximately 280 feet west of Mt. Vernon Avenue,” as more fully described and depicted in Exhibit A and Exhibit B (“Alley Vacation”), and those portions of public street and right-of-way known as “approximately 234 square feet on the west side of Mt. Vernon Avenue, north of Valley Boulevard adjacent to private property,” as more fully described and depicted in Exhibit A and Exhibit B (“Street Vacation”), attached hereto and incorporated herein by reference.

Section 2 Reservation. The City Council further declares its order to reserve, for the benefit of Colton Electric Utility (CEU), Colton Water, Colton Wastewater (Sewer), and AT&T and their successors, heirs, and assigns, an easement in, upon, over, and across the entire area proposed to be vacated, those portions of public street and right-of-way known as “the full width of the alley north of Valley Boulevard, from Mt. Vernon Avenue to approximately 280 feet west of Mt. Vernon Avenue,” as more fully described and depicted in Exhibit A and Exhibit B (“Alley Vacation”), to construct, place, operate, inspect, maintain, enlarge, repair, replace, and remove any existing and future facilities, and necessary fixtures and appurtenances, and said easement shall include rights of ingress and egress thereto.

Section 3 General Plan Consistency. The City Council hereby finds, based on the report from the Planning Commission issued as part of its adoption of Resolution No. R-19-21 on June 08, 2021, that vacation on the proposed portions of right-of-way, the full width of the alley, north of Valley Boulevard from Mt. Vernon Avenue to approximately 280 feet west of Mt.

Vernon Avenue and right-of-way, approximately 234 square feet, on the west side of Mt.

Vernon Avenue north of Valley Boulevard is consistent and in conformity with the General Plan of the City of Colton.

Section 4 Adoption. The City Clerk shall certify as to the adoption of this resolution hearing as required by law.

Section 5 Effective Date. This Resolution shall become effective upon its adoption.

Section 6 Certification. The City Clerk is directed to cause a certified copy of this Resolution, attested by the Clerk under seal, to be recorded with the San Bernardino County Recorder, pursuant to Streets and Highways Code section 8325.

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PASSED, APPROVED AND ADOPTED THIS 16 TH DAY OF DECEMBER 2025.

__________________________
FRANK J. NAVARRO
Mayor

ATTEST:

__________________________________
ISAAC T. SUCHIL
City Clerk

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THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COLTON INTHE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED ASFOLLOWS:A PORTION OF THAT CERTAIN 20.00 FOOT STRIP OF LAND LYING BETWEEN BLOCKS102 AND 103, MAP OF THE TOWN OF COLTON, IN THE CITY OF COLTON, COUNTY OFSAN BERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 9, PAGE37 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, ALSOBEING A PORTION OF FOURTEENTH STREET, CLOSED BY ORDINANCE OF THETRUSTEES OF THE CITY OF COLTON DATED JUNE 6, 1907, RECORDED IN BOOK "E",PAGE 274 OF MISCELLANEOUS RECORDS, RECORDS OF SAID COUNTY, AND MOREPARTICULARLY DESCRIBED AS FOLLOWS:BEGINNING AT THE SOUTHEAST CORNER OF LOT 9 OF SAID BLOCK 102, ALSOBEING ON THE EASTERLY 41.25 FOOT HALF WIDTH RIGHT-OF-WAY OF MT VERNONAVENUE; AS SHOWN ON SAID MAP;THENCE NORTH 80°22'14" WEST, A DISTANCE OF 278.38 FEET ALONG THE NORTHLINE OF SAID 20.00 FOOT STRIP OF LAND TO A POINT ON A LINE LYING 20.00 FEETEASTERLY AND PARALLEL WITH THE EASTERLY LINE OF LOT 1 OF BLOCK 103 OFSAID MAP OF THE TOWN OF COLTON;THENCE SOUTH 09°39'29" WEST, A DISTANCE OF 20.00 FEET ALONG SAID PARALLELLINE TO THE SOUTH LINE OF SAID 20.00 FOOT STRIP OF LAND;THENCE PARALLEL WITH THE NORTH LINE OF SAID 20.00 STRIP OF LAND, SOUTH80°22'14" EAST, A DISTANCE OF 281.87 FEET TO SAID RIGHT-OF-WAY LINE OF SAID MT.VERNON AVENUE;THENCE NORTH 00°15'09" WEST ALONG SAID RIGHT-OF-WAY LINE, A DISTANCE OF20.30 FEET TO THE POINT OF BEGINNING.THE ABOVE DESCRIBED VACATION OF LAND OF LAND CONTAINS 5,602 S.F., MOREOR LESS.SEE EXHIBIT "B" FOR A PLAT DEPICTING THE ABOVE DESCRIBED PROPERTY.THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION,IS IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYORS ACT.APN:0162-203-11(12)(13)(14)

LEGAL DESCRIPTIONALLEY VACATION
DATE:JOB NO.220688/19/2025INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT A

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S09°39'29"W20.00'

VALLEY BOULEVARD
MT. VERNON AVENUE
"H" STREET
60'
℄
℄
℄161514131211109
17181920212223242532
N80°22'14"W278.38'S80°22'14"E281.87'N00°15'09"W20.30'

41.25'
N80°22'31"W252.16'
N00°15'09"W
152.34'
N00°15'09"W
132.03'
N09°38'53"E129.07'
P.O.B. STREETVACATIONALLEY
LEGEND:AREA OF ALLEY VACATION±5,602 SF P.O.B POINT OF BEGINNING DATE:JOB NO.220688/19/2025
SCALE: 1" = 50'
INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT BALLEY VACATION

Page 16 of 430 ends

LEGAL DESCRIPTIONELECTRIC, AT&T, WATER, AND SEWER EASEMENTS DATE:JOB NO.2206810/23/2025INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING3816 STINEMAN CT. STE 201, LONG BEACH, CA 90808P (424) 344-2464 F (562) 372-3282

EXHIBIT A

Page 17 of 430 ends

S09°39'29"W20.00'

VALLEY BOULEVARD
MT. VERNON AVENUE
"H" STREET
60'
℄
℄
℄161514131211109
17181920212223242532
N80°22'14"W278.38'S80°22'14"E281.87'N00°15'09"W20.30'

41.25'
N80°22'31"W252.16'
N00°15'09"W
152.34'
N00°15'09"W
132.03'
N09°38'53"E129.07'
P.O.B. EASEMENT
ALLEY
LEGEND:AREA OF ELECTRIC, AT&T, WATER, AND SEWER EASEMENTS±5,602 SF P.O.B POINT OF BEGINNING DATE:JOB NO.2206810/23/2025
SCALE: 1" = 50'
INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING3816 STINEMAN CT. STE 201, LONG BEACH, CA 90808P (424) 344-2464 F (562) 372-3282

EXHIBIT BELECTRIC, AT&T, WATER, AND SEWER EASEMENTS

Page 18 of 430 ends

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COLTON INTHE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED ASFOLLOWS:A PORTION OF MT VERNON AVENUE LYING EAST OF LOT 25 IN BLOCK 102 OF THETOWN OF COLTON, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PERMAP RECORDED IN BOOK 9, PAGE 37 OF MAPS IN THE OFFICE OF THE COUNTYRECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS;BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 25 OF SAID BLOCK 102, SAIDPOINT ALSO BEING ON THE WEST RIGHT-OF-WAY LINE OF MT. VERNON AVENUE,WITH A HALF WIDTH OF 41.25 FEET;THENCE ALONG SAID RIGHT-OF WAY LINE, SOUTH 00°15'09" WEST A DISTANCE OF104.88 FEET TO A POINT TO A NON TANGENT CURVE, CONCAVE NORTHWESTERLYHAVING A RADIUS OF 32.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH59° 01' 59" WEST;THENCE NORTH ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 36° 55' 21" ANARC DISTANCE OF 20.62 FEET TO A POINT OF CURVE CHANGE CONCAVENORTHEASTERLY HAVING A RADIUS OF 696.00 FEET, A RADIAL LINE TO SAID POINTBEARS NORTH 82° 02' 40" EAST;THENCE NORTH ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 2° 20' 17" ANARC DISTANCE OF 28.40 FEET;THENCE NORTH 00° 15'21' WEST A DISTANCE OF 15.81 FEET TO THE PROLONGATIONOF THE NORTH LINE OF SAID LOT 25;THENCE ALONG THE PROLONGATION OF SAID LOT 25 NORTH 80° 22'30" WEST TOTHE POINT OF BEGINNING.THE ABOVE DESCRIBED DEDICATION OF LAND OF LAND CONTAINS 234 S.F., MOREOR LESS.SEE EXHIBIT "B" FOR A PLAT DEPICTING THE ABOVE DESCRIBED PROPERTY.THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION,IS IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYORS ACT.APN:0162-203-11(12)(13)(14)

LEGAL DESCRIPTIONSTREET VACATION
DATE:JOB NO.220688/19/2025INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT A

Page 19 of 430 ends

VALLEY BOULEVARD
MT. VERNON AVENUE
ALLEY

VALLEY BOULEVARD
"H" STREET
ALLEY60'
℄
℄
℄161514131211109
171819202122232425
N80°22'14"W278.38'S80°22'14"E281.87'

41.25'
N80°22'31"W252.16'
S00°15'09"E
104.88'N09°38'53"E129.07'
L=20.62', R=32.00Δ=36°55'21", T=10.68'N59°01'59"W (R)N82°02'40"E (R) L=40.84', R=696.00Δ=3°21'42", T=20.42'
N80°22'30"W1.05'
N00°15'21"W15.81'
P.O.B.

L=28.40', R=696.00Δ=2°20'17", T=14.20'
LEGEND:AREA OF VACATIONPARCEL A: ± 234 SF
DATE:JOB NO.220688/19/2025
SCALE: 1" = 50'
INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT BSTREET VACATION

Page 20 of 430 ends

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL THIS DEED AND, UNLESS
OTHERWISE SHOWN BELOW, MAIL TAX STATEMENT TO:

Name CITY OF COLTON

Street Address 160 S. 10TH ST.

City COLTON
State CA
Zip 92324

SPACE ABOVE THIS LINE FOR RECORDER’S USE

GRANT OF UTILITY EASEMENT

THIS GRANT OF UTILITY EASEMENT (this “Grant”) is made and entered into as of December 16, 2025 (the “Effective Date”), by and between Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company, (“Grantors”) and San Bernardino County Transportation Authority, a municipal corporation (“Grantee”).

RECITALS

Grantors hold a fee interest in certain real property located in the City of Colton, California (the “Property”), as more particularly described on Exhibit A and depicted on Exhibit B, attached hereto and made a part hereof by reference. Grantors have agreed to grant to Grantee an easement over the Property (the “Easement Area”), on the terms and conditions set forth in this Grant, for utility, street, highway, and other appurtenant purposes.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantors and Grantee hereby agree as follows:

1. Grantors hereby grants and conveys to Grantee, and , their successors and assigns, an easement for streets, highways, public utilities, and other appurtenant uses, together with the right to construct, use, maintain, alter, add to, repair, replace and/or remove, dedicate or declare the same for public use in, on, under, over and across the real property hereinafter described, situated in the City of Colton, County of San Bernardino, State of California, as described as follows:

See attached Exhibit “A” and Exhibit “B” (“Utility Easement”), attached hereto and made a part hereof by reference.

2. The Grantee, their successors and assigns, and their respective agents and employees shall have the right to maintain and replace the utility mains, and shall have free access to said underground and above ground utilities and every part thereof, at all times, for the purpose of exercising the right herein granted.

3. All improvements constructed or installed by Grantee in the Easement Area are, and shall remain, the property of Grantee and may be removed by Grantee at any time. Grantors shall have no right, title, or interest therein.

4. Grantee shall not dispose of any trash, rubbish, waste, or debris in the Easement Area. Grantee shall be solely responsible and liable for all other maintenance and repairs associated with Grantee’ use of the Easement Area.

Page 21 of 430 ends

5. Grantee agrees to indemnify, defend and hold harmless Grantors and their respective officers, employees and agents (collectively, the “Indemnified Parties”, and each individually, an “Indemnified Party”) against any and all losses, damages, expenses and other liabilities, including without limitation reasonable attorneys’ fees and any third party claims, to the extent pertaining to a third party claim for physical damage to property or physical injury to any person, to the extent resulting from or arising out of (i) any activities of Grantee on the Easement Area or (ii) any negligent act or deliberate act or omission on the part of Grantee or anyone else engaged in doing work for Grantee. This indemnification shall not apply to losses, damages, claims, expenses and other liabilities to the extent caused by any negligent or deliberate act or omission on the part of the Indemnified Party. Grantors shall indemnify, defend and hold harmless Grantee and their officers, employees and agents against any and all losses, damages, expenses and other liabilities, including without limitation reasonable attorneys’ fees and any third party claims, to the extent pertaining to a third party claim for physical damage to property or physical injury to any person, to the extent resulting from or arising out of (i) any activities of Indemnified Party on the Easement Area or (ii) any negligent act or deliberate act or omission on the part of Indemnified Party or anyone engaged in doing work for Indemnified Party. This indemnification obligation shall not be apply to Grantee’s discovery of any pre-existing adverse physical condition at the Easement Area, nor shall it alter or otherwise modify Grantors’ indemnity obligations under any other agreements executed by the Parties with respect to any other matters. This indemnification provision shall survive the termination of this Grant.

6. This Grant is made on an “as-is” basis, without any representations or warranties, express or implied. Grantors shall not be liable to Grantee for any loss, injury or other damage to Grantee or to Grantees’ interest in or about the Easement Area from any cause, except as expressly set forth in Section 5 above. Except as expressly set forth in Section 5 above, Grantee hereby waives all claims against Grantors for any such loss, injury or damage and the cost and expense of defending against claims relating thereto. Notwithstanding any other provision of this Grant to the contrary, in no event shall Grantors be liable to Grantee for any punitive or consequential damages or damages for loss of business by Grantee.

7. The terms, covenants, conditions and restrictions contained in this Grant will be enforceable as running covenants and as equitable servitudes in any manner provided by law or in equity; without limitation of the foregoing, the parties intend with this Grant to create covenants running with the land pursuant to Section 1468 of the Civil Code of the State of California. The land subject to this Grant will be held, conveyed, hypothecated, encumbered, leased, rented, used, occupied, and improved, subject to the terms, covenants, conditions, and restrictions contained in this Grant. All of the limitations, easements, uses, obligations, covenants, conditions and restrictions stated in this Grant will inure to the benefit of and be binding upon the respective owners, ground lease tenants, and easement holders of the land and their respective heirs, legatees, devises, executors, administrators, guardians, conservators, successors, licensors, and assigns, provided that once the owner of the Property has transferred its parcel by recorded conveyance, the transferring parcel owner will have no further personal liability under this Grant for events or occurrences arising after the recording of the conveyance.

8. In the event of any dispute arising out of or relating to this Grant or the breach or performance of it, the prevailing party shall be entitled to recover reasonable attorney’s fees incurred in connection therewith.

9. This Grant shall be governed by and construed in accordance with the laws of the State of California, without giving effect to its conflicts of law principles. The Parties hereby agree that any legal action or proceeding arising out of this Grant shall be brought in a state court of competent jurisdiction in San Bernardino County, California. By execution and delivery of this Grant, each of the Parties hereby irrevocably accepts and submits to the jurisdiction of such courts, generally and unconditionally, in connection with any such legal action or proceeding.

10. No modification or waiver of the terms or conditions hereof shall be binding upon the parties unless approved in writing by the Parties. The failure by any party to enforce its rights under this Grant on any occasion shall not operate as or be deemed to be a waiver of any future enforcement or exercise of such rights.

Page 22 of 430 ends

11. This Grant is intended to be the complete and exclusive statement of the agreement between the Parties with regard to Grantees’ use and occupancy of the Easement Area, and the Parties shall not be bound by any prior statements, special conditions, or agreements not expressed in this Grant.

12. This Grant may be executed in counterparts, each of which shall be an original and all of which, taken together, shall constitute one and the same instrument.

GRANTORS:

Tabbaa Mardini Real Estate Investments, LLC,
a California limited liability company

By: ___________________________________ Date: _____________________

Name: Lonnie Tabbaa
Title: Owner

By: ___________________________________ Date: _____________________

Name: Abdul Mardini
Title: Owner

SEE CALIFORNIA APPROVED NOTARIZATIONS ON THE NEXT PAGES

Page 23 of 430 ends

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COLTON INTHE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED ASFOLLOWS:A PORTION OF MT VERNON AVENUE LYING EAST OF LOT 25 IN BLOCK 102 OF THETOWN OF COLTON, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PERMAP RECORDED IN BOOK 9, PAGE 37 OF MAPS IN THE OFFICE OF THE COUNTYRECORDER OF SAID COUNTY, MORE PARTICULARLY DESCRIBED AS FOLLOWS;BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 25 OF SAID BLOCK 102, SAIDPOINT ALSO BEING ON THE WEST RIGHT-OF-WAY LINE OF MT. VERNON AVENUE,WITH A HALF WIDTH OF 41.25 FEET;THENCE ALONG SAID RIGHT-OF WAY LINE, SOUTH 00°15'09" WEST A DISTANCE OF104.88 FEET TO A POINT TO A NON TANGENT CURVE, CONCAVE NORTHWESTERLYHAVING A RADIUS OF 32.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 59°01' 59" WEST;THENCE NORTH ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 36°55' 21" ANARC DISTANCE OF 20.62 FEET TO A POINT OF CURVE CHANGE CONCAVENORTHEASTERLY HAVING A RADIUS OF 696.00 FEET, A RADIAL LINE TO SAID POINTBEARS NORTH 82° 02' 40" EAST;THENCE NORTH ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 2° 20' 17" ANARC DISTANCE OF 28.40 FEET;THENCE NORTH 00°15'21' WEST A DISTANCE OF 15.81 FEET TO THE PROLONGATIONOF THE NORTH LINE OF SAID LOT 25;THENCE ALONG THE PROLONGATION OF SAID LOT 25 NORTH 80°22'30" WEST TO THEPOINT OF BEGINNING.THE ABOVE DESCRIBED DEDICATION OF LAND OF LAND CONTAINS 234 S.F., MOREOR LESS.SEE EXHIBIT "B" FOR A PLAT DEPICTING THE ABOVE DESCRIBED PROPERTY.THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION,IS IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYORS ACT.APN:0162-203-11(12)(13)(14)

LEGAL DESCRIPTIONUTILITY EASEMENT
DATE:JOB NO.220688/18/2025INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT A

Page 24 of 430 ends

20'

VALLEY BOULEVARD
MT. VERNON AVENUE
ALLEY
N09°39'29"E150.06'
N80°22'31"W20.00'
S80°22'14"E20.00'
P.O.B. EASEMENTDEED

VALLEY BOULEVARD
"H" STREET
ALLEY
N09°39'29"E150.06'
S80°22'14"E20.00'60'
℄
℄
℄161514131211109
171819202122232425
N80°22'14"W278.38'S80°22'14"E281.87'
S09°39'29"W20.00'

41.25'
N80°22'31"W252.16'
N09°38'53"E129.07'
L=20.62', R=32.00Δ=36°55'21", T=10.68'N59°01'59"W (R)N82°02'40"E (R) L=40.84', R=696.00Δ=3°21'42", T=20.42'
N80°22'30"W1.05'
N00°15'21"W15.81'
P.O.B.

L=28.40', R=696.00Δ=2°20'17", T=14.20'
S00°15'09"E
104.88'LEGEND:AREA OF UTILITY EASEMENT: ± 234 SF P.O.B. POINT OF BEGINNING DATE:JOB NO.220688/18/2025
SCALE: 1" = 50'
INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT BUTILITY EASEMENT

Page 25 of 430 ends

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL THIS DEED AND, UNLESS
OTHERWISE SHOWN BELOW, MAIL TAX STATEMENT TO:

Name CITY OF COLTON

Street 160 S. 10TH ST.

Address

City COLTON
State CA
Zip 92324

SPACE ABOVE THIS LINE FOR RECORDER’S USE

GRANT OF RIGHT-OF-WAY IN-FEE
(New ‘L’ shape Alley, north of Valley Boulevard, approximately 280 feet west of Mt. Vernon Avenue)

THE GRANTOR(s) Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company, Hereby grants to the CITY OF COLTON, a municipality, its successors and assigns, portions of right-of-way In-Fee for streets, highways, sanitary sewer lines, domestic water lines, public utilities, and other appurtenant uses, together with the right to construct, use, maintain, alter, add to, repair, replace, remove, dedicate or declare the same for public use in, on, under, over and across the real property hereinafter described, situated in the City of Colton, County of San Bernardino, State of California, as described as follows:

See attached Exhibit “A” and Exhibit “B” (“Alley Dedication In Fee for Public Right-of-Way Purposes”), attached hereto and made a part hereof by reference.

GRANTOR(S):

Tabbaa Mardini Real Estate Investments, LLC,
a California limited liability company

By: ___________________________________ Date: _____________________

Name: Lonnie Tabbaa
Title: Owner

By: ___________________________________ Date: _____________________

Name: Abdul Mardini
Title: Owner

SEE CALIFORNIA APPROVED NOTARIZATIONS ON THE NEXT PAGES

Page 26 of 430 ends

CERTIFICATE OF ACCEPTANCE

This is to certify that the interests in real property conveyed by the Grant of Right-of-Way In-Fee for the New ‘L’ shape Alley, north of Valley Boulevard, approximately 280 feet west of Mt.

Vernon Avenue (“Alley D edication In Fee for Public Right -of-Way Purposes”) for streets, highways, sanitary sewer lines, domestic water lines, public utilities, and other appurtenant uses to which this Certificate of Acceptance is attached, dated _________, 2025 from Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company to the City of Colton, a municipal corporation, is hereby accepted by the order of City Council of the City of Colton on the 16th of December, 2025 and the CITY OF COLTON consents to recordat ion thereof by its duly authorized agent.

THE CITY OF COLTON, a municipal corporation

By: ______________________________________
Isaac T. Suchil
City Clerk

Dated: _________________

Page 27 of 430 ends

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COLTON INTHE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED ASFOLLOWS:A PORTION OF THAT CERTAIN STRIP OF LAND LYING BETWEEN BLOCKS 102 AND 103,MAP OF THE TOWN OF COLTON, IN THE CITY OF COLTON, COUNTY OF SANBERNARDINO, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 9, PAGE 37OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, BEING APORTION OF FOURTEENTH STREET, CLOSED BY ORDINANCE OF THE TRUSTEES OFTHE CITY OF COLTON DATED JUNE 6, 1907, RECORDED IN BOOK "E", PAGE 274 OFMISCELLANEOUS RECORDS, RECORDS OF SAID COUNTY, AND MORE PARTICULARLYDESCRIBED AS FOLLOWS:BEGINNING AT THE NORTHEAST CORNER OF LOT 1 OF SAID BLOCK 103, ALSOBEING ON THE SOUTHERLY 40 FOOT RIGHT-OF-WAY LINE OF H STREET; 20.00 FEETWIDE.THENCE SOUTH ALONG THE EAST LINE OF SAID LOT 1 OF BLOCK 103 SOUTH09°39'29" WEST, A DISTANCE OF 150.05 FEET, TO THE SOUTHEAST CORNER OF SAIDLOT 1;THENCE ALONG THE EASTERLY EXTENSION OF THE SOUTHERLY LINE OF SAID LOT 1,SOUTH 80°22'14" WEST, A DISTANCE OF 20.00 FEET;THENCE PARALLEL WITH THE EAST LINE OF SAID LOT 1, NORTH 09°39'29" EAST, ADISTANCE OF 150.06 FEET, TO SAID SOUTHERLY RIGHT-OF-WAY LINE OF H STREET;THENCE NORTH 80°22'31" WEST ALONG SAID RIGHT-OF-WAY LINE, 20.00 FEET TO THEPOINT OF BEGINNING.THE ABOVE DESCRIBED DEDICATION OF LAND OF LAND CONTAINS 3,001 S.F.,MORE OR LESS.SEE EXHIBIT "B" FOR A PLAT DEPICTING THE ABOVE DESCRIBED PROPERTY.THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION,IS IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYORS ACT.APN:0162-203-11(12)(13)(14)

LEGAL DESCRIPTION ALLEY DEDICATION IN FEE FOR PUBLIC RIGHT OF WAY PURPOSES DATE:JOB NO.2206811/4/2025INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT A

Page 28 of 430 ends

20'N09°39'29"E
150.06'
S09°39'29"W150.05'
N80°22'31"W20.00'
S80°22'14"E20.00'
40' P.O.B.

VALLEY BOULEVARD
MT. VERNON AVENUE
"H" STREET
40'
60'
℄
℄
℄161514131211109
17181920212223242532
N80°22'14"W278.38'S80°22'14"E281.87'N00°15'09"W20.30'

41.25'
N80°22'31"W252.16'
N00°15'09"W
152.34'
N00°15'09"W
132.03'
N09°38'53"E129.07'
ALLEY
LEGEND:AREA DEDICATION± 3,001 SF P.O.B POINT OF BEGINNING DATE:JOB NO.2206811/4/2025
SCALE: 1" = 50'
INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT BALLEY DEDICATION IN FEE FOR PUBLIC RIGHT OF WAY PURPOSES EASEMENT NOTE:THERE ARE NO EXISTING EASEMENTS OF RECORDTHAT AFFECT THE SUBJECT PROPERTY

Page 29 of 430 ends

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL THIS DEED AND, UNLESS
OTHERWISE SHOWN BELOW, MAIL TAX STATEMENT TO:

Name CITY OF COLTON

Street 160 S. 10TH ST.

Address

City COLTON
State CA
Zip 92324

SPACE ABOVE THIS LINE FOR RECORDER’S USE

GRANT OF RIGHT-OF-WAY IN-FEE
(Corner Cutback on the North West corner of Valley Boulevard and Mt.

Vernon Avenue)

THE GRANTOR(s) Tabbaa Mardini Real Estate Investment, LLC, a California limited liability company, Hereby grant to the CITY OF COLTON, a municipality, its successors and assigns, portions of right-of- way In-Fee for streets, highways, sanitary sewer lines, domestic water lines, public utilities, and other appurtenant uses, together with the right to construct, use, maintain, alter, add to, repair, replace, remove, dedicate or declare the same for public use in, on, under, over and across the real property hereinafter described, situated in the City of Colton, County of San Bernardino, State of California, as described as follows:

See attached Exhibit “A” and Exhibit “B” (“Corner Dedication In Fee for Public Right-of-Way Purposes”), attached hereto and made a part hereof by reference.

GRANTOR(S):

Tabbaa Mardini Real Estate Investments, LLC,
a California limited liability company

By: ___________________________________ Date: _____________________

Name: Lonnie Tabbaa
Title: Owner

By: ___________________________________ Date: _____________________

Name: Abdul Mardini
Title: Owner

SEE CALIFORNIA APPROVED NOTARIZATIONS ON THE NEXT PAGES

Page 30 of 430 ends

CERTIFICATE OF ACCEPTANCE

This is to certify that the interests in real property conveyed by the Grant of Right-of-Way In-Fee for the corner cutback, on the north west corner of Valley Boulevard and Mt. Vernon Avenue (“Corner Dedication In Fee for Public Right-of-Way Purposes”) for streets, highways , sanitary sewer lines, domestic water lines, public utilities, and other appurtenant uses to which this Certificate of Acceptance is attached, dated __________, 2025 from Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company to the City of Colton, a municipal corporation, is hereby accepted by the order of City Council of the City of Colton on the 16th of December, 20 25 and the CITY OF COLTON consents to recordation thereof by its duly authorized agent.

THE CITY OF COLTON, a municipal corporation

By: ______________________________________
Isaac T. Suchil
City Clerk

Dated: _________________

Page 31 of 430 ends

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COLTON IN THECOUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:A PORTION OF LOT 25, EXCEPTING THE SOUTHERLY 22 FEET THEREOF IN BLOCK 102, MAPOF THE TOWN OF COLTON, IN THE CITY OF COLTON, COUNTY OF SAN BERNARDINO, STATEOF CALIFORNIA, AS PER MAP RECORDED IN BOOK 9, PAGE 37 OF MAPS, IN THE OFFICE OFTHE COUNTY RECORDER OF SAID COUNTY, AND MORE PARTICULARLY DESCRIBED ASFOLLOWS:BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 25 OF SAID BLOCK 102, POINT ALSOBEING ON THE WESTERLY RIGHT-OF-WAY LINE OF SAID MT. VERNON AVENUE, HAVING AHALF WIDTH OF 41.25 FEET AS SHOWN ON SAID MAP;THENCE ALONG SAID RIGHT-OF WAY LINE, SOUTH 00°15'09" EAST A DISTANCE OF 104.88FEET TO THE TRUE POINT OF BEGINNING, SAID POINT BEING ALSO THE BEGINNING OF ANON TANGENT CURVE, CONCAVE NORTHWEST HAVING A RADIUS OF 32.00 FEET, A RADIALLINE TO SAID POINT BEARS NORTH 59°01'59" WEST;THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 38°47' 31"AN ARC DISTANCE 21.67 FEET TO A POINT OF CURVE CHANGE CONCAVE NORTHWESTERLYHAVING A RADIUS OF 112.00 FEET, A RADIAL LINE TO SAID POINT BEARS NORTH 20° 14' 28"WEST;THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14°03' 13"AN ARC DISTANCE OF 27.47 FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY LINE OFVALLEY BOULEVARD HAVING A HALF WIDTH OF 60.00 FEET AS SHOWN ON SAID MAP;THENCE SOUTH 80° 22' 00" EAST A DISTANCE OF 43.78 FEET TO THE SOUTH EAST CORNEROF SAID LOT 25, SAID POINT BEING ALSO ON THE WESTERLY RIGHT OF WAY LINE OF SAIDMT. VERNON AVENUE, THENCE NORTH 00° 15' 09" WEST ALONG SAID RIGHT OF WAY LINE ADISTANCE OF 27.15 FEET TO THE TRUE POINT OF BEGINNING.THE ABOVE DESCRIBED DEDICATION OF LAND OF LAND CONTAINS415 S.F., MORE OR LESS.SEE EXHIBIT "B" FOR A PLAT DEPICTING THE ABOVE DESCRIBEDPROPERTY.THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION,IS IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYORSACT.APN:0162-203-11(12)(13)(14)

LEGAL DESCRIPTIONCORNER DEDICATION IN FEE FOR PUBLIC RIGHT OF WAY PURPOSES DATE:JOB NO.2206811/3/2025INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT A

Page 32 of 430 ends

VALLEY BOULEVARD
MT. VERNON AVENUE
"H" STREET
60'
P.O.B.
℄
℄
℄161514131211109
171819202122232425
N00°15'09"W27.15'
S80°22'00"E43.78'
N80°22'14"W278.38'S80°22'14"E281.87'N00°15'09"W20.30'
L=27.47', R=111.99'Δ=14°03'13", T=13.80'

41.25'
N80°22'31"W252.16'
N00°15'09"W
152.34'
N00°15'09"W
104.88'N09°38'53"E129.07'
ALLEY
S20°14'28"E (R)
L=21.67', R=32.00Δ=38°47'31", T=11.27'
S06°11'49"E (R)
N59°01'59"W (R)T.P.O.B.LEGEND:AREA OF DEDICATION±415 SF P.O.B. POINT OF BEGINNING T.P.O.B. TRUE POINT OF BEGININNG (R) RADIAL DATE:JOB NO.2206810/20/2025
SCALE: 1" = 50'
INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT BCORNER DEDICATION IN FEE FOR PUBLIC RIGHT OF WAY PURPOSES EASEMENT NOTE:THERE ARE NO EXISTING EASEMENTS OF RECORDTHAT AFFECT THE SUBJECT PROPERTY

Page 33 of 430 ends

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL THIS DEED AND, UNLESS
OTHERWISE SHOWN BELOW, MAIL TAX STATEMENT TO:

Name CITY OF COLTON

Street Address 160 S. 10TH ST.

City COLTON
State CA
Zip 92324

SPACE ABOVE THIS LINE FOR RECORDER’S USE

GRANT OF UTILITY EASEMENT

THIS GRANT OF UTILITIES EASEMENT (this “Grant”) is made and entered into as of December 16, 2025 (the “Effective Date”), by and between Tabbaa Mardini Real Estate Investments, LLC, a Caliofornia limited liability company, (“Grantors”) and Spectrum Pacific West, LLC, a California limited liability company (“Grantees”).

RECITALS

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantors and Grantees hereby agree as follows:

1. Grantors hereby grant and convey to Grantees, and , their successors and assigns, an easement for streets, highways, public utilities, and other appurtenant uses, together with the right to construct, use, maintain, alter, add to, repair, replace and/or remove, dedicate or declare the same for public use in, on, under, over and across the real property hereinafter described, situated in the City of Colton, County of San Bernardino, State of California, as described as follows:

See attached Exhibit “A” and Exhibit “B” (“Utility Easement”), attached hereto and made a part hereof by reference.

2. The Grantees, their successors and assigns, and their respective agents and employees shall have the right to maintain and replace the utility mains, and shall have free access to said underground and above ground utility pipe(s) and every part thereof, at all times, for the purpose of exercising the right herein granted.

3. All improvements constructed or installed by Grantees in the Easement Area are, and shall remain, the property of Grantees and may be removed by Grantees at any time. Grantors shall have no right, title, or interest therein.

4. Grantees shall not dispose of any trash, rubbish, waste, or debris in the Easement Area. Grantees shall be solely responsible and liable for all other maintenance and repairs associated with Grantees’ use of the Easement Area.

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5. Grantees agree to indemnify, defend and hold harmless Grantors and their respective officers, employees and agents (collectively, the “Indemnified Parties”, and each individually, an “Indemnified Party”) against any and all losses, damages, expenses and other liabilities, including without limitation reasonable attorneys’ fees and any third party claims, to the extent pertaining to a third party claim for physical damage to property or physical injury to any person, to the extent resulting from or arising out of (i) any activities of Grantees on the Easement Area or (ii) any negligent act or deliberate act or omission on the part of Grantees or anyone else engaged in doing work for Grantees. This indemnification shall not apply to losses, damages, claims, expenses and other liabilities to the extent caused by any negligent or deliberate act or omission on the part of the Indemnified Party. Grantors shall indemnify, defend and hold harmless Grantees and their officers, employees and agents against any and all losses, damages, expenses and other liabilities, including without limitation reasonable attorneys’ fees and any third party claims, to the extent pertaining to a third party claim for physical damage to property or physical injury to any person, to the extent resulting from or arising out of (i) any activities of Indemnified Party on the Easement Area or (ii) any negligent act or deliberate act or omission on the part of Indemnified Party or anyone engaged in doing work for Indemnified Party. This indemnification obligation shall not be apply to Grantees’ discovery of any pre-existing adverse physical condition at the Easement Area, nor shall it alter or otherwise modify Grantors’ indemnity obligations under any other agreements executed by the Parties with respect to any other matters. This indemnification provision shall survive the termination of this Grant.

6. This Grant is made on an “as-is” basis, without any representations or warranties, express or implied. Grantors shall not be liable to Grantees for any loss, injury or other damage to Grantees or to Grantees’ interest in or about the Easement Area from any cause, except as expressly set forth in Section 5 above. Except as expressly set forth in Section 5 above, Grantees hereby waives all claims against Grantors for any such loss, injury or damage and the cost and expense of defending against claims relating thereto. Notwithstanding any other provision of this Grant to the contrary, in no event shall Grantors be liable to Grantees for any punitive or consequential damages or damages for loss of business by Grantees.

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12. This Grant may be executed in counterparts, each of which shall be an original and all of which, taken together, shall constitute one and the same instrument.

GRANTOR(S):

Tabbaa Mardini Real Estate Investments, LLC,
a California limited liability company

By: ___________________________________ Date: _____________________

Name: Lonnie Tabbaa
Title: Owner

By: ___________________________________ Date: _____________________

Name: Abdul Mardini
Title: Owner

SEE CALIFORNIA APPROVED NOTARIZATIONS ON THE NEXT PAGES

Page 36 of 430 ends

Page 37 of 430 ends

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RECORDING REQUESTED BY

AND WHEN RECORDED MAIL THIS DEED AND, UNLESS
OTHERWISE SHOWN BELOW, MAIL TAX STATEMENT TO:

Name CITY OF COLTON

Street Address 160 S. 10TH ST.

City COLTON
State CA
Zip 92324

SPACE ABOVE THIS LINE FOR RECORDER’S USE

GRANT OF TEMPORARY CONSTRUCTION EASEMENT (TCE)

THIS GRANT OF TEMPORARY CONSTRUCTION EASEMENT (this “Grant”) is made and entered into as of December 16, 2025 (the “Effective Date”), by and between Tabbaa Mardini Real Estate Investments, LLC, a California limited liability company, (“Grantors”) and San Bernardino County Transportation Authority, (“Grantee”).

RECITALS

Grantors hold a fee interest in certain real property located in the City of Colton, California (the “Property”), as more particularly described on Exhibit A and depicted on Exhibit B, attached hereto and made a part hereof by reference. Grantors have agreed to grant to Grantee a Temporary Construction Easement over the Property (the “Easement Area”), on the terms and conditions set forth in this Grant, for temporary construction, utility, street, highway, and other appurtenant purposes.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Grantors and Grantee hereby agree as follows:

1. Grantors hereby grant and convey to Grantee, and , their successors and assigns, a Temporary Construction Easement for temporary construction, streets, highways, public utilities, and other appurtenant uses, together with the right to temporarily construct, use, maintain, alter, add to, repair, replace and/or remove, dedicate or declare the same for public use in, on, under, over and across the real property hereinafter described, situated in the City of Colton, County of San Bernardino, State of California, as described as follows:

See attached Exhibit “A” and Exhibit “B” (“Temporary Easement for Construction Purposes”), attached hereto and made a part hereof by reference.

2. The Grantee, their successors and assigns, and their respective agents and employees shall have the right to maintain and replace the utility mains, and shall have free access to said underground and above ground utility pipe(s) and every part thereof, at all times, for the purpose of exercising the right herein granted for temporary construction purposes.

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5. Grantee agree to indemnify, defend and hold harmless Grantors and their respective officers, employees and agents (collectively, the “Indemnified Parties”, and each individually, an “Indemnified Party”) against any and all losses, damages, expenses and other liabilities, including without limitation reasonable attorneys’ fees and any third party claims, to the extent pertaining to a third party claim for physical damage to property or physical injury to any person, to the extent resulting from or arising out of (i) any activities of Grantee on the Easement Area or (ii) any negligent act or deliberate act or omission on the part of Grantee or anyone else engaged in doing work for Grantee. This indemnification shall not apply to losses, damages, claims, expenses and other liabilities to the extent caused by any negligent or deliberate act or omission on the part of the Indemnified Party. Grantors shall indemnify, defend and hold harmless Grantee and their officers, employees and agents against any and all losses, damages, expenses and other liabilities, including without limitation reasonable attorneys’ fees and any third party claims, to the extent pertaining to a third party claim for physical damage to property or physical injury to any person, to the extent resulting from or arising out of (i) any activities of Indemnified Party on the Easement Area or (ii) any negligent act or deliberate act or omission on the part of Indemnified Party or anyone engaged in doing work for Indemnified Party. This indemnification obligation shall not be apply to Grantee’ discovery of any pre-existing adverse physical condition at the Easement Area, nor shall it alter or otherwise modify Grantors’ indemnity obligations under any other agreements executed by the Parties with respect to any other matters. This indemnification provision shall survive the termination of this Grant.

6. This Grant is made on an “as-is” basis, without any representations or warranties, express or implied. Grantors shall not be liable to Grantee for any loss, injury or other damage to Grantee or to Grantee’ interest in or about the Easement Area from any cause, except as expressly set forth in Section 5 above. Except as expressly set forth in Section 5 above, Grantee hereby waives all claims against Grantors for any such loss, injury or damage and the cost and expense of defending against claims relating thereto. Notwithstanding any other provision of this Grant to the contrary, in no event shall Grantors be liable to Grantee for any punitive or consequential damages or damages for loss of business by Grantee.

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11. This Grant is intended to be the complete and exclusive statement of the agreement between the Parties with regard to Grantee’ use and occupancy of the Easement Area, and the Parties shall not be bound by any prior statements, special conditions, or agreements not expressed in this Grant.

12. This Grant may be executed in counterparts, each of which shall be an original and all of which, taken together, shall constitute one and the same instrument.

GRANTOR(S):

Tabbaa Mardini Real Estate Investments, LLC,
a California limited liability company

By: ___________________________________ Date: _____________________

Name: Lonnie Tabbaa
Title: Owner

By: ___________________________________ Date: _____________________

Name: Abdul Mardini
Title: Owner

SEE CALIFORNIA APPROVED NOTARIZATIONS ON THE NEXT PAGES

Page 41 of 430 ends

THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF COLTON INTHE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AND IS DESCRIBED ASFOLLOWS:A PORTION OF THAT CERTAIN STRIP OF LAND LYING IN BLOCK 102, MAP OF THETOWN OF COLTON, IN THE CITY OF COLTON, COUNTY OF SAN BERNARDINO, STATEOF CALIFORNIA, AS PER MAP RECORDED IN BOOK 9, PAGE 37 OF MAPS, IN THEOFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND MORE PARTICULARLYDESCRIBED AS FOLLOWS:BEGINNING AT THE SOUTHEAST CORNER OF LOT 9 OF SAID BLOCK 102, SAID POINTBEING ON THE WEST RIGHT-OF-WAY LINE OF MT. VERNON AVENUE, HAVING A HALFWIDTH OF 41.25 FEET,.THENCE NORTH 80°22'14" WEST ALONG THE SOUTH LINE OF SAID LOT 9, A DISTANCEOF 15.00 FEET;THENCE SOUTH 09°37'46" WEST, A DISTANCE OF 20.00 FEET TO THE NORTH LINE OFLOT 25 AS SHOWN ON SAID MAP;THENCE SOUTH 80°22'14" EAST ALONG SAID NORTH LINE OF SAID LOT 25, ADISTANCE OF 18.48 FEET, TO SAID WESTERLY RIGHT-OF-WAY LINE OF MT. VERNONAVENUE;THENCE NORTH 00°15'09" WEST ALONG SAID RIGHT-OF-WAY LINE OF MT. VERNONAVENUE, 20.30 FEET TO THE POINT OF BEGINNING.THE ABOVE DESCRIBED DEDICATION OF LAND OF LAND CONTAINS 335 S.F., MOREOR LESS.SEE EXHIBIT "B" FOR A PLAT DEPICTING THE ABOVE DESCRIBED PROPERTY.THIS DESCRIPTION WAS PREPARED BY ME OR UNDER MY DIRECTION,IS IN CONFORMANCE WITH THE PROFESSIONAL LAND SURVEYORS ACT.APN:0162-203-11(12)(13)(14)

LEGAL DESCRIPTIONTEMPORARY EASEMENT FOR CONSTRUCTION PURPOSES DATE:JOB NO.2206811/3/2025INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT A

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S09°37'46"W20.00'

VALLEY BOULEVARD
MT. VERNON AVENUE
"H" STREET
60'
℄
℄
℄161514131211109
17181920212223242532
N80°22'14"W278.38'S80°22'14"E281.87'N00°15'09"W20.30'

41.25'
N80°22'31"W252.16'
N00°15'09"W
152.34'
N00°15'09"W
132.03'
N09°38'53"E129.07'
P.O.B.

ALLEYS80°22'14"E18.48'
N80°22'14"W15.00'
LEGEND:AREA OF EASEMENT FOR CONSTRUCTION PURPOSES±335 SF P.O.B POINT OF BEGINNING DATE:JOB NO.2206811/3/2025
SCALE: 1" = 50'
INC
Waber ConsultantsPLANNING CIVIL ENGINEERING SURVEYING19210 S VERMONT AVE., GARDENA, CA 90248P (424) 344-2464 F (562) 372-3282

EXHIBIT B TEMPORARY EASEMENT FOR CONSTRUCTION PURPOSES

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Public Hearing (PH):

Alley & ROW Vacations
Valley Colton Truck Stop (VCTS)
Tabbaa Mardini Real Estate Investments,
LLC
NWC Valley Blvd. & Mt. Vernon Ave.
(791 E. Valley Blvd.)

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Planning Commission (PC) Approvals:
• June 08, 2021 – PC approved redevelopment of CVTS site and respective ROW Vacations’ conformance and consistency with the General Plan
• Vacation of Alley bisecting property
• Vacation of sliver of ROW on the east side of the site • Acceptance of Dedicated New ‘L’ shape Alley
• Acceptance of Dedicated corner cutback on the east side of the site • Reserve easements for Utility purposes including a TCE

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Streets & Highways § 8320 et seq
• Public Hearing (PH) was initiated
on November 18, 2025
• 15+ Days between Initiating
Proceedings and Conducting
Public Hearing
• PH Notice published on The
Press-Enterprise on 12/06 &
12/13
• PH Notice field posted onsite
since 10/29

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Vacation and Dedication areas

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Recommendation:
• Adopt Resolution No. R-96-25 Ordering the Vacation of:
• Certain Portions of Right-of-Way (ROW), the full width of the Alley north of Valley Blvd., from Mt. Vernon Ave. to approximately 280 ft. west of Mt.

Vernon Ave.; and
• Certain Portions of Right-of-Way (ROW), approximately 234 sq. ft., on the west side of Mt. Vernon Ave., north of Valley Blvd., subject to Reservation of Easements for Utility Purposes, Pursuant to the California Streets & Highways Code § 8320 et. seq.; and
• Accept multiple Grant of Right-of-Way Dedications ‘In-Fee’

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Questions?

Page 49 of 430 ends

Additional Informational Slides ahead…

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Sliver of ROW to be Vacated

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Corner Cutback Dedication

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CEU, Colton Water/Wastewater & AT&T Reserved Easements

Page 53 of 430 ends

Spectrum Utility Easement

Page 54 of 430 ends

Temporary Construction Easement (TCE)

Page 55 of 430 ends

Item: 1.

Staff Report

Meeting Date: December 16, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Chad Blais, PW & Utility Services Director Item Name: Terrace Water Consolidation - Approve Authority to Apply for the Expedited Drinking Water Grant to Fund Consolidation with Terrace Water Company and Approve the Terrace Water Company and City of Colton Consolidation Agreement, Resolution No. R-92-25 & R-100-25.

Recommended Action:

1. Approve a Consolidation Agreement between the City of Colton and Terrace Water Company

2. Adopt Resolution R-92-25

3. Adopt Resolution R-100-25

4. Authorize the City Manager, or designee, to submit and execute all documents required to apply for the State Water Resources Control Board Expedited Drinking Water Grant for the Terrace Water Consolidation Project

5. Approve the Notice of Exemption for the Terrace Water Consolidation Project under CEQA Guidelines Section 15302

Background:

Terrace Water Company (TWC) serves approximately 2,000 residents within an area located partly within the City and partly in unincorporated San Bernardino County. The service area lies entirely within the City’s Sphere of Influence.

TWC has experienced longstanding regulatory, technical, and operational deficiencies. In 2020, the State Water Resources Control Board issued a compliance order and a service connection moratorium after determining TWC could not meet Maximum Day Demand (MDD) requirements. Since 2021, TWC has relied entirely on the City of Colton for its potable water supply under emergency and non-emergency water transfer agreements, as TWC's groundwater wells are no longer operational or owned by the company.

With technical assistance from the State Water Resources Control Board, a formal Engineering

Page 56 of 430 ends

Report was completed in October 2024, concluding that a full consolidation with the City of Colton represents the only feasible long-term solution to restore regulatory compliance and reliable service. The City is the designated receiving water system under this consolidation framework.

Issues/Analysis:

The TWC Consolidation Project includes reconstruction and replacement and upgrading of water pipelines, valves, hydrants, and service laterals to integrate the Terrace system into the City’s water system. The purpose of the Project is to improve system reliability, maintain regulatory compliance, and provide adequate system pressures and fire flow, not to support system expansion or new development. Key infrastructure work includes:
• Installation of new water pipelines and appurtenances to serve Terrace customers; • Installation and reconnection of all existing laterals to meet current Americal Water Works Association standards;
• Installation of combination air/vacuum release valves and blow-offs; and, • Construction of new gate valves throughout the Terrace system

The project will modernize an aging and deficient system to provide compliant pressures, fire flow, and service reliability. The infrastructure improvements are not intended to support growth or new development.

Upon formal Transition Date established in the Consolidation Agreement, the City will fully assume ownership, operation, maintenance, regulatory compliance, repair, and replacement responsibility for the Terrace Water System. Terrace Water Company will permanently cease operations as a public water system and will surrender its domestic water supply permit.

Following construction completion, the City will own and operate the fully integrated expanded City water system. As part of the Consolidation Agreement,, upon completion of construction and so long as the City continues to provide service to the former Terrace service area, all adjudicated Terrace base and adjusted groundwater rights within the San Bernardino Basin will be transferred to the City. This transfer represents a permanent conveyance of water rights necessary to support long-term service reliability.

The official transition of billing and customer service responsibilities will occur on the Transition Date, which is defined as the first day of the month following sixty (60) days after State payment of applicable connection-related fees and completion of required transition conditions.

On the Transition Date:
• All Terrace customers will become customers of the City of Colton's water system; • The City will assume billing, customer service, collection, and account administration in accordance with the City of Colton's Water Rules and Customer Service Policy;

Page 57 of 430 ends

• Terrace will issue final bills and complete any remaining collection activity; • The existing Non-Emergency Water Agreement between the City and Terrace will terminate.

It is important to note that the transition of billing and service responsibilities will occur even if the physical construction of the system improvements has not yet been completed. During the interim construction period, the City will operate and maintain the existing Terrace system while construction proceeds.

Terrace Water Company is required to maintain insurance coverage on behalf of the City and its officers, employees, and agents for three (3) following the Transition Date. This insurance will cover liabilities arising from pre-existing conditions of the Terrace Water System and any claims related to former system operations.

The Consolidation Project is fully contingent upon the award of the State funding through the State Water Resources Control Board under the Expedited Drinking Water Grant Program. The City has no financial obligation to proceed with construction unless and until a Funding Agreement is executed by the State. Resolution R-100-25 establishes a per-connection charge of $4,560.81, which is applicable only within the Terrace service area. This charge is required by the State to offset the City's estimated $2.7 million infrastructure capacity burden associated with integrating Terrace customers into a system that was not originally sized for this demand. At a future date, if a Funding Agreement is awarded, the City Council will be asked to approve the final Funding agreement, authorize acceptance of the funds, and approve the construction phase of the project.

CEQA Determination
As documented in the attached “CEQA Analysis for the Terrace Consolidation Project,” staff has determined that the proposed Project is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 of Title 14 of the California Code of Regulations.

The Project meets the requirements of the CEQA Guidelines Section 15302 (Class 2) exemption because it would involve the replacement or reconstruction of existing utility systems and facilities with negligible expansion of capacity.

The Project would involve expanding the capacity of existing pipelines, which currently range in diameter from 4 to 18 inches, to a size of 8 to 16 inches. This expansion in capacity is intended only to provide adequate fire flow for commercial customers and would not provide additional capacity to serve new development. As a result, the expansion is considered negligible pursuant to CEQA Guidelines Section 15302(c).

Therefore, the Project is exempt from CEQA under CEQA Guidelines Section 15302. Further, as documented in the attached CEQA analysis, none of the exceptions to the use of this exemption identified in CEQA Guidelines Section 15300.2 apply.

Next Steps

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If the City Council approves the Consolidation Agreement between the City of Colton and Terrace Water Company, along with Resolution R-92-25 (Authorizing Resolution for the Expedited Grant Funding Program), Resolution R-100-25 (Reimbursable Charges for the Terrace Water Consolidation Project), and the CEQA categorical exemption, staff will move forward with the following actions:

Submit Grant Application
Staff will finalize and submit the Expedited Drinking Water Grant application package to the State Water Resources Control Board. This submittal will include the approved CEQA determination, the executed Consolidation Agreement, and supporting technical documentation.

State Review and Funding Recommendation
The State Water Board will review the City’s application to determine project eligibility and funding availability. During this period, City staff will continue coordination with the Terrace Water Company, County of San Bernardino, and the Division of Drinking Water to maintain project alignment with regulatory requirements and local service needs.

1. Funding Agreement Approval
If the City is awarded grant funding, the State will issue a Funding Agreement identifying the reimbursement amount, eligible project components, and conditions.

Staff will return to City Council to present the Funding Agreement for consideration and approval prior to acceptance of funds or initiation of any project expenditures.

2. Design Phase
Upon City Council approval of the Funding Agreement, the City will proceed with finalizing the design and engineering phase. This will include:
o Approving an agreement with MKN Engineering to finalize the detailed construction plans and specifications.
o Take the 90% plans and finalize and complete to 100%

3. Construction Bidding and Award
Once the design is complete, the City will advertise the project for competitive bid. The construction contract award will be brought back to the City Council for approval prior to execution.

4. Construction and Integration
Following contract award and authorization from the State to proceed, construction of the water system improvements will begin. Upon completion, the Terrace Water distribution system will be fully integrated into the City of Colton’s potable water system.

Terrace Consolidation Agreement
Staff and the City Attorney will finalize the Terrace Consolidation Agreement and incorporate

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any non-substantive revisions as needed. Should any substantive changes arise during finalization, the agreement will be returned to the City Council for review and approval.

Fiscal Impacts:

Approval of this item does not create a financial obligation for the City at this time. All construction and eligible project costs are anticipated to be fully funded by the State through the Expedited Drinking Water Grant Program. The reimbursable per-connection charges established under Resolution R-100-25 are required for State funding eligibility and are payable only upon grant award.

Alternatives:

1. Provide alternative direction to Staff.

Attachments:

1. Terrace Water - Consolidation Agreement - Draft (Final)

2. R-92-25 - Expedited Drinking Water Grant Funding Program

3. R-100-25 - Reimbursable Charge

4. CEQA - TWC Water System Consolidation Categorical Exemption Memo

5. PowerPoint Presentation - TWC Consolidation

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23152.08100\43590607.15

01455.0001 2026785.6

CONSOLIDATION AND WATER SERVICE AGREEMENT BETWEEN TERRACE

WATER COMPANY AND THE CITY OF COLTON
This Consolidation and Water Service Agreement (“Agreement”) is made and entered into as of [DATE], between (1) the City of Colton (“City”), a municipality, and (2) Terrace Water Company (“Terrace”), a California corporation, which are hereinafter sometimes individually referred to as a “Party” and collectively referred to as “Parties.” Background
A. Terrace Water Company (“Terrace”) is a mutual water company that serves an unincorporated area in San Bernardino County. Terrace’s service area is a fully developed residential area, bounded by Laurel Street on the north, Valley Boulevard on the south, Hermosa Avenue on the west, and Rancho Avenue on the east, as depicted in Exhibit “A” (“Terrace Service Area”). Terrace operates under Domestic Water Supply Permit No. 05-13-14P-002. Terrace’s water system (“Terrace Water System”) had served an estimated 2,000 customers (“Terrace Customers”) through 592 service connections and 13 commercial connections.

B. The City of Colton Water Department provides water to residents and businesses within the City of Colton (“City”). The City’s water system consists of 7 active wells, 3 main booster pumping plants, 6 water storage reservoirs, 2 pressure reducing facilities, and approximately 180 miles of water transmission and distribution pipelines (“City Water System”). This system produced about 7.3 million gallons of water per day in 2023. Its service area includes approximately 90% of the City (14 square miles) and about 0.8 square miles of unincorporated area in San Bernardino County.

C. Terrace and the City are parties subject to the Judgment entered by the Court on April 17, 1969, in Western Municipal Water District et al., v. East San Bernardino County Water District et al., Riverside County Superior Court Case No. 78426, as it may be modified. The Judgment also requires the Court to approve the successor to a party after notice to all parties and an opportunity for hearing.

D. Terrace formerly obtained its water from two groundwater wells (“Terrace Wells”); it had two storage tanks and a booster pump station.

E. The Parties entered into an Agreement Regarding the Transfer of Emergency Water from the City to Terrace, dated December 19, 2013 (“Emergency Water Agreement”), in which the City agreed to provide water to Terrace in the event of an emergency.

F. The Parties augmented the Emergency Water Agreement by entering into an Addendum to Agreement Regarding the Transfer of Emergency Water from the City to Terrace, dated June 2019 (“Non-Emergency Water Agreement”), in which the City agreed to provide Terrace non-emergency water following Terrace’s loss of production from its Well No. 2. In 2021, the Parties entered into the First

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23152.08100\43590607.15

01455.0001 2026785.6

Amendment to the Non- Emergency Water Agreement. The Parties entered into a Second Amendment to the Non-Emergency Water Agreement on March 4, 2025, per Resolution No. R-07-25.

G. On April 6, 2020, the State Water Resources Control Board (“Water Board”) issued Compliance Order No. 05_13_20R_002 to Terrace, determining that Terrace did not have adequate source capacity to meet the system’s highest 10- year Maximum Day Demand (“MDD”) at all times. In the Compliance Order, the Water Board stated that the water supply to Terrace from the City cannot be considered a permanent source for Terrace to meet the Water Board’s MDD requirements because the water transfer agreement does not have a specified minimum flow. In addition, the agreement can be terminated for any reason if the City provides Terrace with a 30-day written notice.

H. The Terrace Wells are no longer connected to the Terrace Water System. Since 2021, Terrace has relied on its connection to the City Water System as its only source of water for the Terrace service area.

I. On September 22, 2023, Terrace executed a grant deed to transfer to a third party the land on which the Terrace Wells are located, together with all improvements located on that land. Consequently, Terrace no longer owns or operates the Terrace Wells.

J. Terrace lacks the technical, managerial, and financial capacity to bring its water system into compliance. The Water Board provided technical assistance to allow Terrace to evaluate its compliance options. As part of this assistance, MKN & Associates, Inc. (“MKN”) prepared a final Engineering Report in October 2024.

In the Engineering Report, MKN recommended that Terrace consolidate with the City in order to address Terrace’s compliance issues. In the planned consolidation, the City will be the receiving water system and Terrace will be the subsumed water system.1
K. With funding assistance from the Water Board, the City has the ability to provide Terrace Customers with safe drinking water.

L. The City is willing to participate in the Consolidation Project. The City will apply for funding from the Water Board to finance the construction phase of this consolidation.

M. The City will construct the Consolidation Project as defined below. According to the Engineering Report, the construction of the Terrace Water Company Systems Improvement Project will take approximately eighteen months after the construction bid is awarded.

1 A receiving water system is a public water system that provides service to a subsumed system through consolidation. A subsumed water system is a public water system consolidated into a receiving water system. Cal.

Health & Safety Code § 116681(o), (r)

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23152.08100\43590607.15

01455.0001 2026785.6

N. The Engineering Report does not identify any land acquisition that would be required for this Consolidation Project.

O. Pursuant to the Safe and Affordable Fund for Equity and Resilience (“SAFER”) program and other funding sources, the Water Board may provide funding to cover the costs associated with the Consolidation Project, including the cost of constructing necessary infrastructure and any eligible costs, including, but not limited to, payment of connection fees and construction management.

P. Completion of the Consolidation Project is contingent upon the Water Board’s execution of a Funding Agreement that includes, at minimum, funding for the cost of construction and any eligible costs associated with the consolidation, including, but not limited to, those associated with connection fees and construction management/inspection services.

Q. As a result of this Agreement between Terrace and the City, the City will provide water service to Terrace Customers in the Terrace Service Area. Terrace will surrender its water supply permit and cease to operate as a public water system.

The Parties therefore agree as follows:

1. Purpose. This Agreement provides the terms for the water system consolidation of the Terrace Water System and the City Water System.

After the City secures funds for the Consolidation Project from the Water Board and the Consolidation Project is completed, the City will provide direct water service to the Terrace Customers within the Terrace Service Area under this Agreement. When the City provides this service, Terrace will surrender its existing water supply permit and will no longer operate as a public water system.

2. Definitions. The following terms are defined for the purposes of this Agreement:
a. Basin means the San Bernardino Basin Area.
b. City refers to the City of Colton.
c. City Water System means the City’s existing water distribution system, which primarily provides water to the City of Colton and its residents. d. Capacity Fee means the Citywide fee for the connection of new service lines to the City’s system as adopted by Ordinance No. O-04-25. e. Completion of Construction means the date that the City accepts the contractor’s Final Notice of Completion of Construction for all phases of the Terrace Water Company Systems Improvement Project.
f. Consolidation Project means the following:

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i. Obtaining all permits and easements necessary for construction, including, but not limited to, encroachment permits, agreements, and any necessary approvals from the appropriate Local Agency Formation Commission (“LAFCo”), County, State, and Federal agencies.
ii. Construction of infrastructure related to the consolidation of the City Water System with the Terrace Water System as described in the Engineering Report, including, but not limited to:

1. Constructing the Terrace Water Company Systems
Improvement Project which includes:
a. Construct new piping and appurtenances to serve
the Terrace Customers;
b. Reconnection of all Terrace’s residential and
commercial services, totaling approximately 610
connections to the new Expanded City Water
System;
c. Installation of new hydrants and laterals in the
Terrace Water System to meet American Water
Works Association standards;
d. Installation of new combination air/vacuum release
and blow offs as needed for the Terrace Water
System; and
e. Construction of gate valves as needed for the
Terrace Water System.

iii. Assessment of City Water Rate Capacity Fees and Supplemental Fees associated with the additional infrastructure contemplated in the Engineering Report for the Consolidation Project.
g. County means the County of San Bernardino.
h. Effective Date is the date that this Agreement has been signed by all the Parties.
i. Engineering Report means the Terrace Water Company Water System Improvements Engineering Report prepared by MKN & Associates, Inc., which is dated October 25, 2024 for the purposes of the Consolidation Project.

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j. Expanded City Water System means the City Water System after the construction of necessary infrastructure for the Terrace Water Company Systems Improvement Project, as described in Paragraph 2(e). k. Funding Agreement means the written agreement between the Water Board and the City that will set out the applicable terms regarding the Water Board’s award of funding to the City to finance the Consolidation Project.
l. Judgment means the judgment entered by the Court on April 17, 1969, in Western Municipal Water District et al., v. East San Bernardino County Water District et al., Riverside County Superior Court Case No. 78426, as it may be modified.
m. LAFCo means the San Bernardino County Local Agency Formation Commission.
n. Parties means each Party who is an intended signatory to this Agreement.

The Parties are the City of Colton (“City”) and Terrace Water Company (“Terrace”).
o. Reasonable Efforts means the attention and care required from the City to obtain funding from the Water Board to finance the Consolidation Project. p. State means the State of California and any associated agencies such as the Water Board.
q. Supplemental Fee means the cost per connection to be paid by the State for the purpose of the Consolidation Project to cover the costs associated with the Terrace Customer’s use of infrastructure not considered in the growth predictions is expected to cost the City $2.7 million dollars pursuant to the Engineering Report.
r. Terrace means the Terrace Water Company.
s. Terrace Base Water Rights means Terrace Water Company’s “base rights” and/or “adjusted rights” in the Basin under the Judgment. t. Terrace Customers means the people and businesses in the Terrace Service Area to which the Terrace Water System supplies water. u. Terrace Service Area means the area to which the Terrace Water Company supplies water.
v. Terrace Water System means the existing Terrace Water System’s distribution system.

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w. Terrace Wells means the two groundwater wells (Well No. 1 and Well No. 2) that formerly produced water for the Terrace Water System. Terrace no longer owns or operates the Terrace Wells.
x. Transition Date shall refer to the first day of the month following 60 days after the payment of the connection fees by the State and the transition conditions have been completed as outlined in Section 11. y. UEI means University Enterprise, Inc., a Technical Assistance Provider at California State University, Sacramento.
z. Water Board means the State Water Resources Control Board.

3. LAFCo Approval. Connection of the City Water System with the Terrace Service Area is ordinarily subject to review and approval by the San Bernardino County LAFCo. However, in order to qualify for the exemption from LAFCo’s review under California Government Code section 56133(e)(1), the City and the County of San Bernardino (“County”) entered into a Memorandum of Understanding (“MOU”) on January 28, 2025. As explained in the MOU, the City currently provides water to the Terrace Service Area and will continue to do so through this Consolidation Agreement. Moreover, the level of service provided by the City is consistent with the level of service contemplated by the County. After entering into the MOU, the County applied for an exemption from LAFCo’s review. On March 19, 2025, LAFCo approved the County’s application, which exempts the extension of the City’s water service to Terrace from further LAFCo review. Accordingly, the City will be able to provide water to the Terrace Service Area without entering into a separate out-of-agency service contract with Terrace.

4. Funding Agreement Application. The City agrees to act as both the applicant for and recipient of construction phase funding from the Water Board to pay for the costs of the Consolidation Project. Terrace agrees that the City will be allowed to apply to the Water Board for construction funds for the Consolidation Project on behalf of Terrace. Terrace shall not be responsible for the costs of construction for the Consolidation Project or future improvements, maintenance, repairs or operation of, including, but not limited to, full build-out of the Consolidation Project. The City, in its discretion, may rely upon a Technical Assistance provider such as UEI for assistance with the application process. This grant of agency to the City includes, without limitation, the ability to accept and spend available funds, including any funds that would otherwise be available to Terrace, and all incidental powers required to complete the Consolidation Project pursuant to the terms of the construction funding agreement with the Water Board (“Funding Agreement”). The City, as a

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condition of its receipt of funds under the Funding Agreement, agrees to comply with the applicable terms of the Funding Agreement.

5. Contingent on Funding. The City will use reasonable efforts to obtain Water Board funding for the Consolidation Project. However, the Water Board has discretion to determine whether to approve a Funding Agreement and whether to fund certain costs associated with the Consolidation Project. The Parties understand that completing the tasks for the Consolidation Project are contingent upon the City obtaining Water Board funding for eligible costs for the Consolidation Project. If funding in the amount required to cover such eligible costs is not obtained, this Agreement is void and the Parties will not be required to complete any part of the Consolidation Project.

6. Funding Agreement. If the Water Board approves a Funding Agreement for the Consolidation Project, the City will be responsible for the costs of the Consolidation Project. The City shall construct the infrastructure in accordance with the terms of the Funding Agreement between the City and the Water Board.

7. Management of Consolidation Project. The City will manage the Consolidation Project and will obtain all permits and easements necessary for construction of the Consolidation Project, including, but not limited to, encroachment permits, agreements, and necessary approvals from the appropriate City, County, State, and Federal agencies. Terrace agrees to cooperate with and, if requested, assist the City in discussions or negotiations with City, County, State, and Federal agencies.

8. Long-term Access to the Water Board, U.S. EPA, and State Auditor. The Parties represent and warrant that they will ensure that the Water Board, the U.S. Environmental Protection Agency (“U.S. EPA”), the State Auditor, and any authorized representative of the Water Board, U.S. EPA, or the State Auditor will have safe and suitable access to their properties at all reasonable times for the useful life of the infrastructure included in the Consolidation Project.

9. Estimated Completion of Construction. The construction phase of the Terrace Water Company Systems Improvement Project will commence as soon as practicable after the Water Board’s Final Budget Approval relating to the Funding Agreement between the Water Board and the City. The Engineering Report estimates that construction will take approximately one year to complete after a construction bid is awarded.

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10. Terrace Base Water Rights. After completion of the Terrace Water Company Systems Improvement Project, to the extent Terrace has a “base rights” or “adjusted rights” allocation under the Judgment, Terrace shall transfer to the City all of the Terrace Base Water Rights in the Basin pursuant to the Judgment as modified and administrated by the Watermaster, for so long as the City serves the area previously served by Terrace.

11. Activities Prior to Transition of Service. Upon execution of this Agreement, the Parties shall begin preliminary transition activities to facilitate the successful transfer of water service responsibilities from Terrace to the City. Those activities shall include but not be limited to the following:
a. Within sixty (60) days of the execution of this Agreement, Terrace shall provide the City with an electronic data file of all customer accounts, including service addresses, accountholder names, mailing addresses, current billing contact information, and meter information (meter type, size, meter number, date installed) to the extent available to Terrace. The format of the data file shall be in Excel file format with the required fields that are available to Terrace.
b. Within sixty (60) days of the execution of this Agreement, Terrace and the City shall confirm the Transition Date and thereafter Terrace shall begin performing outreach activities to the Terrace Customers. These outreach activities must alert Terrace Customers that future water bills will be coming from the City. Terrace will complete all outreach activities no later than forty-five (45) days prior to the Transition Date. c. Fifteen (15) days prior to the Transition Date, Terrace will provide the City will an updated electronic file that highlights any changes in customer or meter information.
d. The City shall use this data file to develop the preliminary customer accounts and billing route(s) for the Terrace customers and test the ability for staff to collect remote meter reads via City handheld devices. Terrace agrees to work with the City to address any meter reading issues identified as part of the testing of collecting meter reads. In the event the meter reading system utilized by Terrace through Ferguson Waterworks is compatible with the City’s system, the City shall implement such system and contract directly with Ferguson Waterworks for future meter reads.

Should the Ferguson Waterworks meter reading system not be transferable, the City shall implement an alternative meter reading system, including but not limited to through manual meter reads. e. City shall develop a formal letter for Terrace customers that will outline the reasons for the automatic transfer of customer accounts from Terrace to the City, subject to approval of the letter by Terrace. The letter will

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also include an explanation of when the new City service and billing will begin, when the final service and billing from Terrace with end, and the potential ramifications for failure to pay the City water bills. Terrace will review said letter and provide feedback as needed with the goal of the letter being mailed by the City at least 45 days prior to the Transition Date.

12. Transition of Service and Connection Fees. Parties acknowledge the official transition of services and responsibility from Terrace to the City will not occur until after the Water Board’s execution of the Funding Agreement, and upon payment of applicable connection fees by the State in accordance with the City’s Water Rate and Capacity Fee structure and the supplemental fee associated with the additional infrastructure contemplated in the Engineering Report for the Consolidation Project that is not part of the Terrace Water Company Systems Improvement Project. Should the Water Board elect to deny approval of the Funding Agreement, this Consolidation Agreement shall terminate. On the Transition Date:
a. Terrace Customers shall become customers of the City Water System; b. The City shall assume providing potable water service and billing for water services;
c. Terrace shall discontinue all operational and customer service responsibilities;
d. Terrace will mail the final bill for services and continue any collections on previous billing that remains unpaid;
e. Terrace shall provide/update the message on the Terrace customer service line to inform customers to contact the City regarding any service or billing issues. The City will provide the appropriate phone number and/or email to direct customer issues;
f. The City shall assume all billing, customer service, and account administration responsibilities as of the transition of service date; g. The Non-Emergency Water Agreement between Terrace and the City will be terminated;
h. Terrace shall provide the City a statement showing which customers’ accounts are in good standing such that their payment obligations remain current and those that are not in good standing. The City acknowledges that Terrace does not hold any customer security deposits and, as such, no such security deposits remain available to transfer to the City.

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i. Terrace will maintain insurance until the Transition Date through its current policy with Cal Water Insurance on behalf of the City and its directors, officers, agents, consultants, and employees to cover any and all claims, causes of action, demands, injuries, damage, liabilities, losses, cost of expenses (including, but not limited to, reasonable attorney fees and court costs) brought by Terrace Customers for harms relating to or caused by the Existing Terrace Service System; and on the Transition Date, the City shall procure and maintain its own policy for similar coverage. j. The physical construction and connection of infrastructure under the Consolidation Project shall occur after Transition Date and shall not delay or condition the transfer of service responsibilities under this Agreement.

13. Water Usage Fees and Customer Accounts. After the Transition Date, each Terrace Customer shall be deemed a customer of the City Water System. In accordance with the City’s applicable Water Rate Fees and Regulations and applicable law, Terrace Customers will pay the City for the monthly water usage fees and charges applicable for the water service. A copy of the City’s current Water Rate Fees and Regulations is attached as Exhibit “B”. Terrace Customers shall enjoy all the rights, benefits, and privileges of current customers of the City Water System and shall be subject to the same Water Rate Fees and Regulations as current customers of the City Water System. The Parties recognize that the City may find it necessary to raise its water usage fees and charges periodically in accordance with the City’s Water Rate Fees and Regulations applicable at that time and in accordance with all relevant state and local laws.

14. Ownership, Operation, and Maintenance. Upon the transition of service, the City shall assume ownership of the Terrace Water System and shall be responsible for the operation, maintenance, repair, and replacement of all components of the Terrace Water System. On the Transition Date, the City shall also assume responsibility for the delivery of potable water to Terrace Customers in accordance with the California Safe Drinking Water Act.

Terrace shall cooperate with the State on the surrender or other termination of its water supply permit following the Transition Date. Terrace shall not perform operational, billing, customer service, maintenance, or repair activities after the Transition Date.

The Parties acknowledge that construction activities associated with the Consolidation Project will likely occur after the Transition Date, and the City shall operate and maintain the Terrace Water System during the construction period. The City shall manage, coordinate, and perform all work associated with the Consolidation Project in accordance with the Funding Agreement. Terrace

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shall have no obligation to provide services or personnel to assist during such construction activities. However, Terrace remains available to provide limited assistance for thirty (30) days after the Transition Date to assist with transferring institutional knowledge or information of the Terrace Water System to the City.

After Completion of Construction, the City will own and be solely responsible for the operation, maintenance, repair, and replacement of the Expanded City Water System. The City agrees to maintain the infrastructure of the Expanded City Water System in perpetuity.

General Provisions

15. Water Board Review. The Parties agree that the Water Board’s review or approval of the Consolidation Project is for administrative purposes only, including conformity with application criteria, eligibility criteria, and the Funding Agreement, and expressly not for the purposes of design defect review or construction feasibility, and does not relieve the City of its responsibility to properly plan, design, construct, operate, and maintain the Consolidation Project.

16. Third Party Beneficiaries. The Water Board and the parcels previously served by Terrace Water Company are intended third-party beneficiaries of this Agreement with the right and standing to seek enforcement of the entire Agreement or any portion thereof and will retain that status for the term of this Agreement.

17. Notices (general). All notices and other communications required or permitted under this Agreement shall be in writing and addressed to the individuals identified in this provision, and will be deemed duly served, given, or delivered:
a. On the date of service, if served personally on the person to receive the notice;
b. On the date deposited with U.S. mail if delivered by first-class mail with postage prepaid and addressed to the relevant Party at the address set forth in this Paragraph below; or
c. On the date of transmission if delivered electronically, showing the date and time transmitted, to the email address set forth in this Paragraph below and showing the date and time transmitted.

TERRACE WATER COMPANY:

Laura Corral-Flores
1095 ½ Stevenson Street

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Colton, CA 92324
Email: [email protected]
CITY:

Public Works and Utility Services Director
City of Colton
160 S. 10th Street
Colton, CA 92324
Email: [email protected]

18. Notices (in case of property transfer). Terrace must notify the City in writing when the property undergoes a transfer in ownership prior to the completion of the Consolidation Project. Notification must be made by depositing a written notice in the U.S. Mail, postage prepaid, addressed as follows:

Public Works and Utility Services Director
City of Colton
160 S. 10th Street
Colton, CA 92324
Email: [email protected]

19. Integration. This Agreement states the entire agreement between the Parties and supersedes all prior negotiations and agreements related to the Consolidation Project.

20. Governing Law & Venue. This Agreement shall be interpreted in accordance with the laws of the State of California. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in San Bernardino County Superior Court.

21. Assignment and Delegation. No Party may assign or transfer its respective rights or obligations under this Agreement without the express written consent of the other Party.

22. Severability. If any provision of this Agreement is illegal or unenforceable, that provision is severed from this Agreement and the other provisions remain in force.

23. Waiver. No provision of this Agreement may be waived unless the waiver is in writing and signed by all Parties. If a Party declines to enforce a breach of any provision of this Agreement by the other Party, that non-breaching Party’s inaction will not constitute a continuing waiver, and it will not waive any subsequent breach of any provision of this Agreement.

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24. Amendments. This Agreement may be amended only by the mutual consent of the Parties in an agreement in writing.

25. Counterparts. This Agreement may be executed in one or more counterparts, each of which is an original, and all of which constitute a single agreement.

26. Term of Agreement. This Agreement will become effective upon its execution.

If the City obtains funding from the Water Board for the Consolidation Project, this Agreement will remain in effect for perpetuity.

27. Headings. The section headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

28. Joint Efforts. This Agreement is the result of the Parties’ joint efforts and negotiations. The Agreement shall be interpreted to reflect that each Party participated equally in the drafting of the Agreement.

29. Authorization. All signatories to this Agreement are authorized to bind the Parties.

To evidence the Parties’ agreement to this Agreement, the Parties have executed and delivered it on the dates set out below. The Effective Date of this Agreement will be the date that the Agreement is signed by the last Party to agree to it (as indicated by the date associated with that Party’s signature).

TERRACE WATER COMPANY

Dated: Signature:

Name: Laura Corral-Flores
Title: President of Terrace Water Company

Dated: Signature:

Name: Yvette Bynum
Title: Secretary of Terrace Water Company

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A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF [ ]
On ______________ ___, 20__ before me, [ ], Notary Public, personally appeared [ ], who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature:

(Seal)

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THE CITY OF COLTON

Dated: Signature:

Name: William R. Smith
Title: City Manager/Executive Director
Colton Utility Authority

Dated: Signature:

Name: Isaac T. Suchil
Title: City Clerk

Dated: Signature:

Name: Carlos Campos
Title: City Attorney – Best Best & Krieger
LLP

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

WITNESS my hand and official seal.

Signature: (Seal)

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EXHIBIT A
Figure 1-1: Terrace Water Company Service Area Boundary

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1 RESOLUTION NO.: R-92-25

A RESOLUTION OF THE CITY OF COLTON AUTHORIZING A

REPRESENTATIVE TO APPLY FOR A FINANCIAL ASSISTANCE

FROM THE STATE WATER RESOURCES CONTROL BOARD FOR THE

PLANNING, DESIGN, AND CONSTRUCTION OF THE TERRACE

WATER COMPANY CONSOLIDATION PROJECT PURSUANT TO AN

EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT GUIDELINES SECTION 15302
WHEREAS, Terrace Water Company (“Terrace”) is a mutual water company that serves an unincorporated area in San Bernardino County. Terrace’s service area is a nearly fully developed residential area, bounded by Laurel Street on the north, Valley Boulevard on the south, Hermosa Avenue on the west, and Rancho Avenue on the east, (“Terrace Service Area”). Terrace operates under Domestic Water Supply Permit No. 05-13-14P-002. Terrace’s water system (“Terrace Water System”) had served an estimated 2,000 customers (“Terrace Customers”) through 592 service connections and 13 commercial connections.

WHEREAS, the City of Colton Water Department provides water to residents and businesses within the City of Colton (“City”). The City’s water system consists of 7 active wells, 3 main booster pumping plants, 6 water storage reservoirs, 2 pressure reducing facilities, and approximately 180 miles of water transmission and distribution pipelines (“City Water System”).

This system produced about 7.3 million gallons of water per day in 2023. Its service area includes approximately 90% of the City (14 square miles) and about 0.8 square miles of unincorporated area in San Bernardino County.

WHEREAS, Terrace and the City are parties subject to the Judgment entered by the Court on April 17, 1969, in Western Municipal Water District et al., v. East San Bernardino County Water District et al., Riverside County Superior Court Case No. 78426, as it may be modified.

The Judgment also requires the Court to approve the successor to a party after notice to all parties and an opportunity for hearing.

WHEREAS, Terrace formerly obtained its water from two groundwater wells (“Terrace Wells”); it had two storage tanks and a booster pump station.

WHEREAS, Terrace and the City (the “Parties”) entered into an Agreement Regarding the Transfer of Emergency Water from the City to Terrace, dated December 19, 2013 (“Emergency Water Agreement”), in which the City agreed to provide water to Terrace in the event of an emergency.

WHEREAS, The Parties augmented the Emergency Water Agreement by entering into an Addendum to Agreement Regarding the Transfer of Emergency Water from the City to Terrace, dated June 2019 (“Non-Emergency Water Agreement”), in which the City agreed to provide Terrace non-emergency water following Terrace’s loss of production from its Well No. 2. In 2021, the Parties entered into the First Amendment to the Non-Emergency Water Agreement. The Parties entered into a Second Amendment to the Non-Emergency Water Agreement on March 4, 2025, per Resolution No. R-07-25.

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2 WHEREAS, on April 6, 2020, the State Water Resources Control Board (“Water Board”) issued Compliance Order No. 05_13_20R_002 to Terrace, determining that Terrace did not have adequate source capacity to meet the system’s highest 10-year Maximum Day Demand (“MDD”) at all times. In the Compliance Order, the Water Board stated that the water supply to Terrace from the City cannot be considered a permanent source for Terrace to meet the Water Board’s MDD requirements because the water transfer agreement does not have a specified minimum flow.

In addition, the agreement can be terminated for any reason if the City provides Terrace with a 30- day written notice.

WHEREAS, Terrace Wells are no longer connected to the Terrace Water System. Since 2021, Terrace has relied on its connection to the City Water System as its only source of water for the Terrace service area.

WHEREAS, Terrace lacks the technical, managerial, and financial capacity to bring its water system into compliance. The Water Board provided technical assistance to allow Terrace to evaluate its compliance options. As part of this assistance, MKN & Associates, Inc. (“MKN”) prepared a final Engineering Report in October 2024. In the Engineering Report, MKN recommended that Terrace consolidate with the City in order to address Terrace’s compliance issues. In the planned consolidation, the City will be the receiving water system and Terrace will be the subsumed water system.

WHEREAS, with funding assistance from the Water Board, the City has the ability to provide Terrace Customers with safe drinking water.

WHEREAS, according to the Engineering Report, providing Terrace Customers with safe drinking water will require at minimum, but not exclusively, the following system upgrades for the City Water System: Construct the Terrace Water Company Water System Improvements Project, which includes a) construction of new piping and appurtenances to serve the Terrace Customers, b) reconnection of Terrace’s water services to the new expanded City Water System, c) installation of new hydrants and laterals in the Terrace Water System to meet American Water Works Association standard, d) installation of new combination air/vacuum release and blow offs as needed for the Terrace Water System, and e) construction of gate valves as needed for the Terrace Water System. According to the Engineering Report, the construction of the infrastructure described in this Paragraph will take approximately one two years after the construction bid is awarded.

WHEREAS, the Terrace Water Company Water System Improvements Project, the work by the City to connect the Terrace Customers to the City water system, and the costs associated with the Terrace Customer’s use of infrastructure not considered in the growth predictions constitutes the Consolidation Project that is eligible for funding from the State.

WHEREAS, the City is willing to provide Terrace Customers with safe drinking water.

The City will apply for funding from the Water Board to finance the construction phase of this project.

WHEREAS, pursuant to the Safe and Affordable Fund for Equity and Resilience (“SAFER”) program and other funding sources, the Water Board may provide funding to cover

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3 the costs associated with the Consolidation Project, including the cost of constructing necessary infrastructure and any eligible costs, including, but not limited to, payment of connection fees and construction management.

WHEREAS, in order to receive funding from the SAFER program and other funding sources, the City must designate someone to be authorized and directed to sign and file, for and on behalf of the entity, a financial assistance application for a financial assistance agreement from the State Water Resources Control Board for the planning, design, and construction of the expedited drinking water grant funding program project.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON,

CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

The construction of a new well facility, a separate and independent project, was approved by the City in 2022, pursuant to a categorical exemption from the California Environmental Quality Act (“CEQA”) as specified in Title 14 of the California Code of Regulations (“CEQA Guidelines”) Section 15302. Further, the City finds that the Terrace Water Company Water System Improvements Project is exempt from CEQA pursuant to CEQA Guidelines Section 15302 and none of the exemptions contained in CEQA Guidelines section 15300.2 have application.

The City Manager (the “Authorized Representative”) or designee is hereby authorized and directed to sign and file, for and on behalf of the City, a financial assistance application for a financial assistance agreement from the State Water Resources Control Board for the planning, design, and construction of the Consolidation Project.

This Authorized Representative, or his/her designee, is designated to provide the assurances, certifications, and commitments required for the financial assistance application, including executing a financial assistance agreement from the State Water Resources Control Board and any amendments or changes thereto.

The Authorized Representative, or his/her designee, is designated to represent the City in carrying out the City’s responsibilities under the financial assistance agreement, including certifying disbursement requests on behalf of the City and compliance with applicable state and federal laws.

CERTIFICATION
I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the City of Colton held on (Date).

PASSED AND ADOPTED this _____ day of _______, 2025, by the following vote:

AYES:

NOES:

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4 ABSENT:

ABSTAIN:

Frank J. Navarro
Mayor
ATTEST:

Isaac T. Suchil
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP

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1 RESOLUTION NO.: R-100-25

A RESOLUTION OF THE CITY OF COLTON TO ADOPT, PURSUANT
TO AN EXEMPTION UNDER CEQA GUIDELINES SECTION 15273 A

REIMBURSABLE CHARGE FOR THE TERRACE CONSOLIDATION

PROJECT
WHEREAS, Terrace Water Company (“Terrace”) is a mutual water company that serves an unincorporated area in San Bernardino County. Terrace’s service area is a fully developed residential area, bounded by Laurel Street on the north, Valley Boulevard on the south, Hermosa Avenue on the west, and Rancho Avenue on the east, (“Terrace Service Area”). Terrace operates under Domestic Water Supply Permit No. 05-13-14P-002. Terrace’s water system (“Terrace Water System”) had served an estimated 2,000 customers (“Terrace Customers”) through 592 service connections and 13 commercial connections.

WHEREAS, Terrace formerly obtained its water from two groundwater wells (“Terrace Wells”); it had two storage tanks and a booster pump station.

WHEREAS, on April 6, 2020, the State Water Resources Control Board (“Water Board”) issued Compliance Order No. 05_13_20R_002 to Terrace, determining that Terrace did not have adequate source capacity to meet the system’s highest 10-year Maximum Day Demand (“MDD”) at all times. In the Compliance Order, the Water Board stated that the water supply to Terrace from the City cannot be considered a permanent source for Terrace to meet the Water Board’s MDD requirements because the water transfer agreement does not have a specified minimum flow.

In addition, the agreement can be terminated for any reason if the City provides Terrace with a 30- day written notice.

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23152.08100\44401899.1
2 WHEREAS, Terrace Wells are no longer connected to the Terrace Water System. Since 2021, Terrace has relied on its connection to the City Water System as its only source of water for the Terrace service area.

WHEREAS, according to the Engineering Report, providing Terrace Customers with safe drinking water will require a minimum, but not exclusively, the following system upgrades for the City Water System: construct the Terrace Water Company Water System Improvements Project, which includes a) construction of new piping and appurtenances to serve the Terrace Customers, b) reconnection of Terrace’s residential commercial services to the new expanded City Water System, c) installation of new hydrants and laterals in the Terrace Water System to meet American Water Works Association standard, d) installation of new combination air/vacuum release and blow offs as needed for the Terrace Water System, and e) construction of gate valves as needed for the Terrace Water System. According to the Engineering Report, the construction of the infrastructure described in this Paragraph will take approximately two years after the construction bid is awarded.

WHEREAS, the City’s forecasted water needs did not include the addition of Terrace Customers into the City’s system.

WHEREAS, the costs associated with the Terrace Customer’s use of infrastructure not considered in the growth predictions is expected to cost the City $2.7 million dollars pursuant to the Engineering Report.

WHEREAS, pursuant to the Safe and Affordable Fund for Equity and Resilience (“SAFER”) program and other funding sources, the Water Board may provide funding to cover the costs associated with the Consolidation Project, including the cost of constructing necessary infrastructure and any eligible costs, including, but not limited to, payment of connection fees and construction management.

WHEREAS, the City is required to set the cost per connection associated with the reduction in future capacity in order for this cost to be covered under SAFER program.

Page 82 of 430 ends

23152.08100\44401899.1
3 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON,

CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

For the purpose of the Terrace Consolidation Project and acquiring funds from the State to adequately cover the City’s costs for the Terrace Consolidation, the City hereby determines that there is an additional $4,560.81 charge per connection in the Terrace Service Area. This charge is only applicable to the Terrace Service Area during the Consolidation Project. Additionally, this charge is only to be paid per connection if the Terrace Consolidation is funded by State grant or other funding sources.

The additional charge is exempt under Section 15273 of the CEQA Guidelines and Public Resources Code section 21080(b)(8) because the increased charges are for the purpose of meeting operational and maintenance expenses of the aforementioned services. The documents and materials that constitute the record of proceedings on which these findings have been based are located at 650 N La Cadena Drive, Colton, CA 92324. The custodian for these records is the City Clerk.

CERTIFICATION
I do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the City of Colton held on (Date).

PASSED AND ADOPTED this _____ day of _______, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Page 83 of 430 ends

23152.08100\44401899.1
4 Frank J. Navarro
Mayor
ATTEST:

Isaac T. Suchil
City Clerk
APPROVED AS TO FORM:

Best Best & Krieger LLP

Page 84 of 430 ends

Rincon Consultants, Inc.

11801 Pierce Street, Suite 200

Riverside, California 92505

(951) 405
-
0979

w w w. r in co n co ns
u ltan
ts. co m

October 24,

2025

Project No:
23 -
15207

Kevin Saleh, P.E., Principal Engineer

MKN & Associates

16310 Bake Parkway

Irvine, California 92618

Via email:
[email protected]

Subject:

CEQA Categorical Exemption Memorandum for the
Terrace Water Company Water
System

Improvements
Project, Colton, San Bernardino County, California

Dear
Mr.

Saleh
:

This memorandum provides an analysis to support the determination by the
City of Colton

(the lead
agency) that the proposed
Terrace Water Company
(TWC)
Water System

Improvements Project
(project)
is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302

of
Title 14 of the California Code of Regulations.

Project Location

The project site consists of a series of public roadway rights -
of
-
way in the
service area of TWC
, which
encompasses approximately 0.4 square mile in southwestern San Bernardino County. The project site specifically includes the public roadway rights
-
of
-
way of North Cypress Avenue, North Rancho Avenue,
Kelly Lane, Walnut Cove, North Tejon Avenue, Nort
h Latham Street, Grand Avenue, West H Street,
West G Street, West F Street, West C Street, West B Street, Edgehill Drive, West Olive Street, Orange Street, West

Stevenson Street, and West Laurel Street. The project site includes portions of the city of Colton and unincorporated San Bernardino County and is generally bounded by West Laurel Street to the north, North Rancho Avenue to the east, West Valley Boulevard

to the south, and Union Pacific
railroad tracks to the west. The project site is surrounded by the city of Colton to the north, west, and east. The project site is located exclusively within public rights -
of
-
way and does not include private
properties.

Figure

1 shows the project site

in a

regional context
,

and
Figure

2 shows the project site at
a local scale.

Project
Background

TWC is a
community
public water system

that
serves an approximately 0.4
-
square
-
mile area that
includes portions of the city of Colton and unincorporated San Bernardino County .

TWC serves a
population of approximately 2,000 people with 592 residential water connections and 13 commercial connections and operates under Domestic Water Supply Permit No. 05 -
13 -
14 -
P
-
002, issued by the
State Water Resources Control Board (SWRCB) in Janu
ary 2014. TWC’s existing water supply system
consists of two groundwater wells with wellhead chlorination facilities, two wa ter storage tanks, a
booster pump station, approximately two miles of 16
-
inch
-
diameter steel transmission pipeline, and a
local distribution system that consists of approximately six miles of pipelines of various materials and sizes. Both groundwater wells

were drilled in the mid
-
1900s and rebuilt in 2014

(MKN & Associates,
Inc. 2024).

Page 85 of 430 ends

MKN & Associates

CEQA Categorical Exemption Memorandum for the

Terrace Water Company Water System Improvements Project

2 Figure

1 Regional Project Location

Page 86 of 430 ends

MKN & Associates

CEQA Categorical Exemption Memorandum for the

Terrace Water Company Water System Improvements Project

3 Figure

2 Project Site Location

Page 87 of 430 ends

MKN & Associates

CEQA Categorical Exemption Memorandum for the

Terrace Water Company Water System Improvements Project

4 In 2013, TWC signed an emergency water transfer agreement with the City of Colton (City) because water supplies from its two groundwater wells were declining. The agreement allows TWC to receive water from the City on an as
-
available, as
-
needed basis via a
n eight
-
inch emergency interconnection
near the intersection of Stevenson Street and Tejon Avenue in Colton. Water supply from TWC’s production wells continued to decline, and in April 2020, SWRCB issued Compliance Order No. 05 -
13 -
20R
-
002 to TWC for not ha
ving enough water supply to meet source capacity and maximum day demand. By 2021, one of TWC’s groundwater wells was completely dry, and the other was taken offline because it was low
-
producing. Both groundwater wells and water storage tanks have been phys ically
disconnected from the TWC system, and TWC relies entirely on water supplies provided by the City through the emergency interconnection. However, this emergency interconnection cannot be considered a permanent source for TWC to meet SWRCB requirement s
.
1 In addition to water supply challenges, TWC’s existing water system faces aging infrastructure issues.

Portions of the transmission pipeline are estimated to be over 60 years old, and portions of the local distribution system are over 40 years old. TWC’s w
ater system has experienced a number of issues
such as pipe leaks, inoperable valves, and frequent need for maintenance. The existing water system also faces reliability challenges because 1) the entire system relies on a single aging transmission pipeline
; 2) sewer lines cross over the water distribution lines at multiple locations and do not meet minimum separation requirements; and 3) the local distribution system is not sized to provide adequate fire flow to commercial customers. Furthermore, the TWC wa ter system is at risk of water
contamination from corrosion and infiltration of pollutants due to the aging infrastructure .
2 TWC has received funding and technical assistance from SWRCB through University Enterprises, Inc. to identify and design a project to resolve its source capacity and reliability issues. Based on the Terrace Water Company Water System Improvements Engineering Report

prepared by MKN &
Associates, Inc. in 2024, TWC has determined the most feasible option to address its Compliance Order is to consolidate TWC’s water system with the City’s existing water system .
3 Project
Description

The
proposed
project involves replacing and upgrading
TWC
and the City
’s
water distribution system,
including pipelines, valves, hydrants, and other appurtenances; and relocating all residential and commercial service connections to the new
distribution system.

As shown

in Figure 2,
e
xisting
pipelines, which vary in diameter from
4 to
18 inches, would be replaced with
8 -
, 10
-
, 12
-

or
16 -
inch
ductile iron pipe, totaling approximately 30,000 linear feet of new pipeline. The new water distribution pipelines would require underground isolation valves, blow -
offs, and aboveground
comb
ination
air/vacuum

valve assembl
ies
, which would typically not be greater than 3
0 inches in height. In
addition, the project involves replacing gate valves throughout the distribution system and replacing approximately
50 fire hydrants in TWC
’s

and the City’s

service area. Once distribution pipeline
installation is complete, service connections between the local distribution system and

existing TWC
and the City’s
customers would be replaced. Existing distribution pipelines within public rights -
of
-
way
would
be abandoned in place.

TWC’s existing water storage tanks, wells, and pump station would be transferred to the City; these components are likely to be abandoned in place, and demolition of these components is not proposed as part of this project. In addition, the existing steel transmission pipeline would be abandoned in
place.

1 MKN & Associates. 2024. Terrace Water Company Water System Improvements Engineering Report.

2 Ibid.

3 Ibid.

Page 88 of 430 ends

MKN & Associates

CEQA Categorical Exemption Memorandum for the

Terrace Water Company Water System Improvements Project

5 The project would provide water supply to existing TWC customers and is not intended to accommodate additional growth. As part of the project, TWC would reimburse the City for a portion of the City’s drinking water facilities improvement projects that woul d be used by TWC customers,
including the City’s recently
-
completed, new six
-
million
-
gallon water storage tank and new groundwater
well.

Construction

Construction of the project would occur over approximately one year and would commence as early as June 2025. Construction activities would occur between the hours of 7:00 a.m. through 5:00 p.m., Monday through Friday. Construction activities would general ly involve demolishing existing paved
surfaces, open
-
cut trenching, installing pipelines and appurtenances (e.g., fire hydrants, valves), backfilling, re
-
paving the roadway surface, and final site restoration. Approximately 80 to 100 linear feet of pipelin
e would be installed any given day during construction, and the project would involve approximately four acres of ground disturbance in total. Approximately 15,600 cubic yards of soil material would be exported from the project site,
4 and approximately 15,200 cubic yards of fill material would be imported for backfill.
5 The maximum depth of disturbance would be approximately seven feet below ground surface. No groundwater dewatering, tree trimming, or vegetation removal would be required.

Pipeline installation would require limited, temporary lane closures at locations where new pipelines are under construction. The project contractor(s) would be required to implement traffic control measures in conformance with the requirements of the Work

Area Traffic Control Handbook and the
California Manual on Uniform Traffic Control Devices.

Post
-
Completion Testing and Disinfection

After completion of construction, the new pipelines would be disinfected and pressure tested with potable water prior to operation. Once testing and disinfection is complete, the water would be treated to neutralize residual chlorine and would be discharge
d into the City’s storm drain system. Discharge
of dechlorinated water would be required to comply with the requirements of the City’s National Pollutant Discharge Elimination System permit (Order No. R8 -
2010
-
0036,
National Pollutant
Discharge Elimination
System
No. CAS618036).

Operations

Once operational, the City would integrate TWC’s new water distribution system in their annual maintenance activities, which include valve exercising and hydrant flushing (anticipated to occur once every one to two years). Due to the size of the City’s ove rall existing water system and the limited size
of the proposed project, it is not anticipated the proposed project would require a substantial increase in maintenance activities. The new water distribution pipelines are expected to have a service life of approximately 50 to 80 years and would reduce maintenance activities as compared to TWC’s existing, aging system. Project operation would not require increased consumption of electricity or new City employees. The proposed project also does not include new

permanent sources of light/glare or new
equipment generating air pollution or noise.

4 The volume of soil export was estimated by calculating the volume of the pipeline trenches, assuming 30,000 linear feet of tr enches with
a width of approximately two feet and a depth of approximately seven feet. 30,000 feet * 2 feet * 7 feet = 420,000 cub ic feet or
approximately 15,600 cubic yards (conservatively rounded up).

5 The volume of fill material import was estimated by subtracting the size of the pipeline from the trench volume of 15,600 cub ic yards,
conservatively assuming 30,000 linear feet of eight
-
inch
-
diameter pipeline (i.e., four
-
inch pipeline radius). 30,000 cub
ic feet * (4
-
inch
pipeline radius)
2 * π = 10,472 cubic feet. 420,000 cubic feet
–

10,472 cubic feet = 410,000 cubic feet, or approximately 15,200 cubic yards (conservatively rounded up).

Page 89 of 430 ends

MKN & Associates

CEQA Categorical Exemption Memorandum for the

Terrace Water Company Water System Improvements Project

6 Exemption Analysis

Suitability of Use of Categorical Exemption

The project qualifies for a Categorical Exemption (CE) under CEQA.

Public Resources Code Section
21084 requires the
CEQA Guidelines

to include a list of classes of projects that have been determined not to have a significant effect on the environment and that are, therefore, exempt from CEQA (see CEQA Guidelines

Sections 15301 through 15333).

Categorically exempt

projects under CEQA fall into
several distinct categories; Class
2 appl
ies

to the project.

Section
15302

–

Replacement or Reconstruction

(Class 2)

Class
2 projects consist of
replacement or reconstruction of existing structures and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced, including but not li mited to:

Replacement or reconstruction of existing schools and hospitals to provide earthquake resistant structures which do not increase capacity more than 50 percent.

Replacement of a commercial structure with a new structure of substantially the same size, purpose, and capacity.

Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity.

Conversion of overhead electric utility distribution system facilities to underground ,

including
connection to existing overhead electric utility distribution lines where the surface is restored to the condition existing prior to the undergrounding.

The project meets the requirements of the Class 2 exemption because it
would involve

the
replacement or reconstruction of existing utility systems and

facilities with negligible expansion of
capacity

(item c listed above)
. The project
would consist of

replacing and upgrading existing water
pipelines, valves, hydrants, and service connections within TWC’s

current service area
and is not
intended to

accommodat
e

additional growth.

The
project would
involve expanding the capacity of
existing pipelines, which currently range in diameter from 4 to
18 inches, to a size of
8 to
16 inches.

This expansion in capacity would be intended to provide adequate fire flow for commercial customers and would not provide capacity to serve additional customers .

The City’s existing zoning adequacy
review process will ensure that this project would not provide capacity to serve additional customers.

If
a
ny future development

is proposed

in this area
,
an evaluation of the
sufficiency

of
existing
public
utilities

(
including water
)

to serve the development

is required
.

The

City would not be able to allocate

any of

the
slightly expanded

system capacity
from

this project to
serve
the
new development
in the
area
because doing so would
conflict with the zoning adequacy review process by resulting in

inadequate fire flow to existing commercial customers.

As a result
, this expansion in capacity would
be considered negligible

pursuant to CEQA Guidelines S
e
ction
15302(c)
.

Therefore, the Class
2 exemption is applicable.

Discussion of CEQA Guidelines 15300.2 Exceptions

Projects that are consistent with the categorical exemptions identified in

CEQA Guidelines
Sections
15301 through 15333 are not automatically exempt from CEQA review. Section 15300.2 (Exceptions) of the
CEQA Guidelines
outlines the cases in which projects that would normally be exempt from CEQA review would not be exempt. These exceptions are as follows:

Page 90 of 430 ends

MKN & Associates

CEQA Categorical Exemption Memorandum for the

Terrace Water Company Water System Improvements Project

7 a)

Location.

Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located
–

a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant. Therefore, these clas ses are considered to apply
in all instances, except where the project may impact an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal, state, or local age
ncies.

Cumulative Impact.

All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant.

Significant Effect.

A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.

Scenic Highways.

This does not apply to improvements which are required as mitigation by an adopted negative declaration or certified
Environmental Impact Report
.

Hazardous Waste Sites.

A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.

Historical Resources.

A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource.

The following sections address each one of the potential exceptions and demonstrate that none apply to the proposed project.

15300.2(a)

Location.

Classes 3, 4, 5, 6, and 11 are qualified by consideration of where the project is to be located
–

a project that is ordinarily insignificant in its impact on the environment may in a particularly sensitive environment be significant.

Therefore, these clas
ses are considered to apply in all instances, except where the project may impact an environmental resource of hazardous or critical concern where designated, precisely mapped, and officially adopted pursuant to law by federal,
State
, o
r local agencies.

The City does not propose to adopt a Class 3, 4, 5, 6, or Class 11 CE

for

the project. Therefore, this
exception does not apply.

15300.2(b)

Cumulative Impact.

All exemptions for these classes are inapplicable when the cumulative impact of successive projects of the same type in the same place, over time is significant.

The
project
would

involve replacing and upgrading the existing water distribution system, including pipelines, valves, hydrants, and interconnections. Due to the temporary and short -
term nature of the
construction period (approximately one year), the potential for cumulati ve impacts from the project is
low.

In addition
, based on a review of local capital improvement projects and major development plans in the area, there are no reasonably foreseeable future projects near the project site that would result in significant cum
ulative impacts when considered together with the project. 6 ,
7 Therefore, no

6 Colton, City of. 2024. Upcoming and Ongoing Projects. https://www.ci.colton.ca.us/869/Projects (accessed January 2025).

7 Colton, City of. 2024. Capital Improvement Program Project List for FY 24/25. https://www.ci.colton.ca.us/DocumentCenter/View/8324/CIP -

PROJECTS
-
FY
-
22 -
23 -
rev
-
04042023 (accessed January 2025).

Page 91 of 430 ends

MKN & Associates

CEQA Categorical Exemption Memorandum for the

Terrace Water Company Water System Improvements Project

8 significant cumulative impacts would result from successive projects in the same place over time , and
t
his exception does not apply to the proposed project.

15300.2(c)

Significant Effect.

A categorical exemption shall not be used for an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances.

This exception applies only when both unusual circumstances and a significant effect on the
environment

as a result of those unusual circumstances are shown (
Berkeley Hillside Preservation v
City of Berkeley

“
Berkeley Hillside
” (2015) 60 Cal.4th 1086, 1104)
.

As the Supreme Court explained
in
Berkeley Hillside
, the City’s determination whether this exception applies involves two distinct questions: (1) whether the project presents unusual circumstances, and (2) if the project presents unusual circumstances, whether there is a reasonable possibility that a signi ficant environmental
impact will result from thos
e unusual circumstances

(60 Cal.4th at 1098
)
.

The City considers the
second prong of this two
-
part test only if it first finds that some circumstance of the project is unusual.

If the City finds that the project does not present unusual circumstances, the exception is inapplicable, and the agency nee
d not reach the second prong of the two
-
part test.

Here, the City’s determination whether the proposed project presents unusual circumstances involves a factual inquiry. The City will weigh the relevant evidence to determine if those circumstances are unusual in comparison with other projects in the CEQA G uidelines Section 15302 concerning
the
replacement of aging
utility infrastructure
. The proposed project would
be
typical for other similar,
utility replacement

and upgrade

projects
in the City that have been approved pursuant to the CEQA Guidelines Section 15302 exemption
.

Alternately,
Berkeley Hillside

provides a second means to establish the unusual circumstances exception: through a showing that that the project will have a significant effect on the environment.

Here, there is no evidence that the proposed project will result in a significant effect on the environment.

Therefore, the exception under CEQA Guidelines Section 15003.2(c) does not apply to the proposed project.

15300.2(d)

Scenic Highways.

A categorical exemption shall not be used for a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state sce
nic highway. This does not apply to
improvements which are required as mitigation by an adopted negative declaration or certified EIR.

The nearest
officially
-
designated
state scenic
highway is
the segment of
State
Route 38

between the
South Fork Santa Ana River and the community of Sugar Loaf , which is approximately 30 miles
northeast of the project site.
8 The project site is not visible from
State Route

38 due to distance and
intervening
topography
.

Therefore, this exception does not apply to the proposed project.

15300.2(e)

Hazardous Waste Sites.

A categorical exemption shall not be used for a project located on a site which is included on any list compiled pursuant to Section 65962.5 of the Government Code.

A search of the California Department of Toxic Substances Control EnviroStor database and the State Water Resources Control Board GeoTracker database was conducted in January 2025
. There are no
active hazardous waste cleanup sites within one mile of the project site
, and
the project site is not

8 California Department of Transportation (CalTrans). California State Scenic Highway System Map. https://caltrans.maps.arcgis.com/apps/webappviewer/index.html?id=465dfd3d807c46cc8e8057116f1aacaa

(accessed January 2025).

Page 92 of 430 ends

MKN & Associates

CEQA Categorical Exemption Memorandum for the

Terrace Water Company Water System Improvements Project

9 included on the Cortese list of hazardous waste and substances sites .
9 ,

10 ,

11 There is one inactive,
former cleanup site within the project
site vicinity, which is

associated with a leaking underground
storage tank located at a gas station northwest of the intersection of N orth

Rancho Avenue and W
est

Olive Street. The case closure summary for this site indicates the storage tank was removed, approximately 177 tons of potentially contaminated soils were excavated from the site, and the corrective action undertaken protects public health for the site’s current land use.
12 The project would
not involve ground disturbance within the limits of
this listed

site
. I
n addition, potentially impacted soils
have been removed from the site. Accordingly, the project would not be located on a site which is
included on any list compiled pursuant to Section 65962.5 of the Government Code.

Therefore, this

exception does not apply to the proposed project.

15300.2(f)

Historical Resources.

A categorical exemption shall not be used for a project which may cause a substantial adverse change in the significance of a historical resource.

As detailed in the
Cultural Resources Assessment

prepared for the project
, there are no known
historical resources within or immediately adjacent to the project site .
13 As such, the project would not
result in a substantial adverse change in the significance of a historical resource.

Therefore
, this
exception does not apply to the proposed project.

Determination

Based on this analysis, the proposed project meets the qualifications of the Class 2 C
ategorical
E
xemption

(
CEQA Guidelines Section
15302
,
Replacement or Reconstruction)

and is exempt from
CEQA pursuant to CEQA Guidelines Article 19.

Sincerely,

Rincon Consultants, Inc.

Kayleigh Limbach

Rosalyn Prickett

Environmental Planner/Project Manager

Principal
,

Water Resources Planning

Attachments

Attachment
1 Biological Resources Memorandum

9 California Department of Toxic Substances Control. 2025. EnviroStor Database. https://www.envirostor.dtsc.ca.gov/public/map/?global_id=60002757 (accessed January 2025).

10 California State Water Resources Control Board. 2025. GeoTracker Database. https://geotracker.waterboards.ca.gov/map/?CMD=runreport&myaddress=Sacramento (accessed January 2025).

11 California Environmental Protection Agency. 2025. Cortese List Data Resources. https://calepa.ca.gov/sitecleanup/corteselist/

(accessed January 2025).

12 California State Water Resources Control Board. 1999. Case Closure Summary –

Leaking Underground Storage Tank Program,
F & S
Gas.
https://documents.geotracker.waterboards.ca.gov/regulators/deliverable_documents/2121397256/F%20&%20S%20Gas%20CCS.pdf (accessed January 2025).

13 Rincon Consultants, Inc. 2025.

Cultural Resources Assessment for the Terrace Water Company Water System Improvements Project, Colton, California
. March 12, 2025.

Page 93 of 430 ends

Attachment
1 Biological Resources Memorandum

Page 94 of 430 ends

Rincon Consultants, Inc.

11801 Pierce Street,

Suite
2 00

Riverside
, California 9
2505

951
-
405
-
0979

w w w. r in co n co ns
u ltan
ts. co m

March
1 3
, 2025

Project
No:
23 -
15207

Kevin Saleh, P.E. Principal Engineer

MKN & Associates

16310 Bake Parkway

Irvine, California 92618

Via email:
[email protected]

Subject:

Biological Resources Memorandum for the
Terrace W
ater Company

Water System
Improvements Project
,

Colton,

San Bernardino County, C
alifornia

Dear
Mr. Saleh
:

Rincon Consultants, Inc. (Rincon) has prepared this Biological Resources Memorandum for the proposed
Terrace Water Company

(TWC)

Water System Improvements Project (
project
). This
memorandum documents existing site conditions identified via desktop analysis and evaluates the potential
for the
project

to
adverse
ly

a
ffect regulated biological resources.

Project Location and Description

The
project

site consists of a series of public roadway rights
-
of
-
way in the T
WC

service area, which
encompasses approximately 0.4 square mile in southwestern San Bernardino County

(
Figure

1 )
. The
project

site specifically includes the public roadway rights
-
of
-
way of North Cypress Avenue, North
Rancho Avenue, Kelly Lane, Walnut Cove, North Tejon Avenue, Grand Avenue, West H Street, West G Street, West F Street, West C Street, West B Street, Edgehill Drive,

West Olive Street, Orange Street,
West Stevenson Street, and West Laurel Street. The
project

site includes portions of the city of Colton
and unincorporated San Bernardino County and is generally bounded by West Laurel Street to the north, N
orth Rancho Avenue to the east, West Valley Boulevard to the south, and Union Pacific railroad tracks to the west. The
project

site is surrounded by the

developed
/
urbanized

city of Colton to the
north, west, and east. The
project

site is located exclusively within public rights
-
of
-
way and does not
include private properties
. Vegetation communities present within the
project site
are predominantly
landscaped and ornamental

with developed land cover (
Figure

2 ).

The
project

involves replacing and upgrading TWC’s
and the City

of Colton
’s
water distribution system,
including pipelines, valves, hydrants, and other appurtenances ,
and relocating all residential and
commercial service connections to the new distribution system .

Existing pipelines, which vary in
diameter from
4 to
18 inches, would be replaced with
8 -
, 10
-
, 12
-

or
16 -
inch ductile iron pipe, totaling
approximately 30,000 linear feet of new pipeline.

In addition, the project involves replacing
approximately
50 fire hydrants in the TWC and the City’s service area.

The
project

would provide water
supply to existing TWC customers and is not intended to accommodate additional growth .

Existing
distribution pipelines within public rights
-
of
-
way would be abandoned in place.

Page 95 of 430 ends

MKN & Associates

Biological Resources Memorandum for the

Terrace Water Company Water System Improvements Project

2 Guiding Regulations and Requirements

Federal and state environmental regulations governing biological resources relevant to the proposed project

include

the federal Endangered Species Act (ESA), Clean Water Act, Migratory Bird Treaty Act

(MBTA)
, California Environmental Quality Act (CEQA), California Endangered Species Act (CESA), California Fish and Game Code

(CFGC)
, Porter
-
Cologne Water Quality Control Act,
and
San Bernardino
County
Code.

This report focuses on evaluating project compliance with all regulations and requirements mentioned
within this list.

Database and Literature Review

A literature review was conducted to establish the environmental and regulatory setting of the project

site and
100
-
foot buffer (study area). Specific literature reviewed for the analysis is provided in the References

section.

Databases reviewed included the California Department of Fish and Wildlife (CDFW) California Natural Diversity Data
b
ase (CNDDB)

(CDFW 2025), and the California Native Plant
Society (CNPS) Online Inventory of Rare and Endangered Plants of California (CNPS 2025). A nine -
quadrangle searc
h area (
Mint Canyon, Warm Springs Mountain, Green Valley, Sleepy Valley, Agua Dulce, Sunland, San Fernando, Oat Mountain,
and
Newhall

United State Geological Survey

7.5 -
minute
quadrangles) was used for both the CNDDB and CNPS queries to establish a list of special status species with potential to occur within or adjacent to the project

site
.

A
dditionally, Rincon completed a
n
evaluation of the potential
for

jurisdictional wetlands and non
-
wetland waters
to occur in the study
area
based on a review of aerial
imagery

and

the
United States Fish and Wildlife Service (
USFWS
)

National Wetlands Inventory (USFWS 202
5)
.

Special Status Species

For this analysis
,

the term “special status species” refers to the following:



Species listed as threatened or endangered under the federal E SA
; species that are under review
may be included if there is a reasonable expectation of listing within the life of the project



Species listed as candidate, rare, threatened, or endangered under C ESA

or
the
Native Plant
Protection Act



Species designated as Fully Protected, Species of Special Concern, or Watch List by the CDFW



Plants occurring on lists 1 through 2 of the C
NPS

California Rare Plant Rank system (CRPR
)

Special Status Plants

No special status plant species have been documented within the study area
.

H
owever,
the following

f
ive special status plant species have been reported within five miles

of the study area:



Marsh sandwort (
Arenaria paludicola
)
-

Federally Endangered, State Endangered
, CRPR 1B.1



Salt marsh bird’s
-
beak (
Chloropyron maritimum ssp. maritimum
)

Federally Endangered, State
Endangered
, CRPR 1B.2



Slender
-
horned spineflower (
Dodecahema leptoceras
)
-

Federally Endangered, State Endangered
,
CRPR 1B.1



Santa Ana River woollystar (
Eriastrum densifolium ssp. sanctorum
)
-

Federally Endangered, State
Endangered
, CRPR 1B.1



Gambel’s water cress (
Nasturtium gambelii
)
-

Federally Endangered, State Threatened
, CRPR 1B.1

Page 96 of 430 ends

MKN & Associates

Biological Resources Memorandum for the

Terrace Water Company Water System Improvements Project

3 No federal or state
-
listed plant species are expected to occur within the
study area
. The
project area

is composed of paved roadways
,
which is
a predominantly developed land cover,

and
lack
s
suitable
soils

a
nd necessary habitat parameters for
special status
plant species to occur.

Vegetation present
in the study area
consists of landscape and ornamental species.

Therefore, no
impacts
to special
status plants are anticipated to occur as a result of the proposed project.

Special Status Wildlife

No special status wildlife species have been documented within the study area; however,

o
ne
CDFW
Species of Special Concern

has been identified within five miles

the p
ocketed free
-
tailed bat
(
Nyctinomops femorosaccus
).

No special status wildlife species
, including the p
ocketed free
-
tailed bat
,

are expected to occur within the
study area

given its highly developed urban
nature

and lack of suitable
environmental conditions.

Therefore, no
impacts
to special status wildlife species are anticipated to
occur as

a result of the proposed project.

Nesting Birds

The
project

would
be
required to comply

with the
MBTA
and
CFGC
Section 3503. While common birds
are not designated as a special status species, destruction of their eggs, nests and nestlings is prohibited by federal and
state
law.

Therefore, with project compliance to the MBTA and CFGC Section 3503, no impacts are anticipated to occur to protected resources.

Riparian Habitat
and

Sensitive Natural Communities

The
study area
is within a developed urban area and is not located within a naturally
vegetated or open
space area. Vegetation present on

site is highly landscaped
,

consisting primarily of ornamental shrubs
and planted trees. Additionally, there is no riparian habitat on or near the project

site (USFWS 2025).

Therefore, the
project

would not have substantial adverse effects on riparian habitat or sensitive natural communities.

Jurisdictional Waters and Wetlands

The
study area

is within a
highly
urban
ized

area
, and n
o riparian habitat, wetlands
,

or water features
have been identified within the
study

area (USFWS 2025).

As a result, no state or federally protected
wetlands or other waters that may be considered jurisdictional by CDFW, the
United State
s

Army Corps
of Engineers, or
Santa Ana
Regional Water Quality Control Board occur on or adjacent to the project

site. Therefore, the proposed
project

would not directly or indirectly have a substantial adverse effect o
n
s
tate or federally protected wetlands or other jurisdictional waters , and no impact would occur
.

Native Wildlife Movement, Corridors,
and

Nurseries

Wildlife corridors are generally defined as connections between habitat areas that allow for physical and genetic exchange between isolated animal populations. Habitat linkages may serve as migration corridors wherein animals move away from an area
,

then subsequently return.

T
he
study

area is within
a highly developed urbanized environment, separated from open space areas by existing
development
and roadways

(
Figure

1 and
Figure

2 ).

The
study

area does not contain any habitat areas that would
support wildlife nurseries or movement. Trees within the study

area are surrounded by
existing urban
development and do not form natural communities, community linkages, or facilitate wildlife
movement
.

Therefore, the proposed
project

would
result in no impacts to native wildlife movement,
corridors, or nurseries
.

Page 97 of 430 ends

MKN & Associates

Biological Resources Memorandum for the

Terrace Water Company Water System Improvements Project

4 Local Policies
and

Ordinances

San Bernardino
County C
ode Section 88.01:

Plant Protection and Management Plan
regulates
impacts
to
and
establishes
protections
for

plants and trees
on

public and private
properties
.

Pursuant
to California Government Code Section 53091(e), zoning ordinances of a county do not apply to the location or construction of
facilities for the transmission of water

by a local agency
.

San Bernardino
County C
ode Section 88.01

is located within the Development Code, which serves as the zoning ordinance for San Bernardino County. As a project involving the construction of water conveyance facilities by a local agency, the project is not subject to compliance with San Bernardino
County C
ode
Section 8

8.01 .

Conservation Plans

The
study

area does not
occur within

the planning areas of
any
adopted
Habitat Conservation Plans or
Natural Community Conservation Plans
. Therefore, the
project

would not conflict with any
such plans
.

Conclusion

Based on the analysis, the proposed project is not anticipated to result in adverse effects on federal or state protected biological resources and would be consistent with the

federal ESA, Clean Water Act,
MBTA
, CEQA, CESA,
CFGC
, Porter
-
Cologne Water Quality Control Act, and San Bernardino County Code .

Sincerely,

Rincon Consultants, Inc.

Austin LeVesque

Brenna Vredeveld, MESc

Biologist

Senior Supervising Biologist

Attachments

Attachment 1

Figures

Page 98 of 430 ends

MKN & Associates

Biological Resources Memorandum for the

Terrace Water Company Water System Improvements Project

5 References

California Department of Fish and Wildlife (CDFW). 2025. California Natural Diversity Database, Rarefind V. 5.3.0 (accessed January 2025).

California Native Plant Society (CNPS), Rare Plant Program. 202 5 . Inventory of Rare and Endangered
Plants of California (online edition, v9.5). https://www.rareplants.cnps.org (accessed January
2025
).

United States Fish and Wildlife Service

(USF
W
S).
20 2

5. National Wetlands Inventory
.

http://www.fws.gov/wetlands

(
accessed

January

202
5 )
.

Page 99 of 430 ends

Attachment 1

Figures

Page 100 of 430 ends

MKN & Associates

Biological Resources Memorandum for the

Terrace Water Company Water System Improvements Project

1 -
1 Figure

1 Regional Location

Page 101 of 430 ends

MKN & Associates

Biological Resources Memorandum for the

Terrace Water Company Water System Improvements Project

1 -
2 Figure

2 Project Location

Page 102 of 430 ends

TERRACE WATER COMPANY

CONSOLIDATION
December 16, 2025
City of Colton Water Utilities – People First, Water Always

Page 103 of 430 ends

Background
• Terrace Water Company (Terrace) is a mutual water company that serves an unincorporated area in San Bernardino County that formerly obtained its water from two groundwater wells that became contaminated.
• Terrace serves about 2,000 residents through 592 residential connections and 13 commercial connections with a water demand averaging 300 to 400 AFY . • In December 2013, the City and Terrace entered into an Agreement regarding the transfer of emergency water from the City to Terrace.
• On April 6, 2020, the State Water Resources Control Board issued Compliance Order No. 05_13_20R_002 to Terrace, determining that Terrace did not have adequate source capacity.
• The SWRCB began working with the City and Terrace on a potential agreement to have the City take over as the water service provider for Terrace customers by consolidating Terrace service area into the City.

City of Colton Water Utilities – People First, Water Always

Page 104 of 430 ends

Page 105 of 430 ends

What Has Been Done
• State contracted with MKN & Associates, Inc. (MKN) to prepare a final Engineering Report in October 2024 which recommended…
– All existing water mainlines, service connections, hydrants, valves, etc. should be replaced as part of the consolidation.
– Terrace customers would need to buy-in to the City water system by paying applicable water capacity fees and capital costs related to the City providing the additional reservoir capacity, pumping capacity, and well capacity. • The SWRCB has grant funding assistance available to fund the capital improvements to provide Terrace customers with safe drinking water and buy-in fees required by the City.
• On January 28, 2025, the City and the County of San Bernardino entered into a MOU that indicated the City will continue to provide water to the Terrace service area
• On March 19, 2025, LAFCo approved the County’s application to allow the City to extend its service area to cover Terrace.

City of Colton Water Utilities – People First, Water Always

Page 106 of 430 ends

Page 107 of 430 ends

Recent Actions
City of Colton Water Utilities – People First, Water Always • City and Terrace have developed a Consolidation Agreement that outlines the parameters and conditions for the City to officially take over Terrace service area and customers.
• The Consolidation Agreement has a specific condition the City must be awarded the SWRCB Grant Fundings or the agreement is invalid.
• On October 10, 2025, the SWRCB provided the City a letter informing the City of Preliminary Funding Award Notification in the amount of $34,466,327. • The SWRCB has requested the City apply for the Grant Programs expedited application and review process as soon as possible in order to officially secure the funding.
• The State review process is expected to take 3 months for formal award notification.
• Official grant award and payment of upfront fees by the State will be an additional 6 months

Page 108 of 430 ends

Anticipated Project Budget
City of Colton Water Utilities – People First, Water Always • Preliminary Project Grant Award Notification - $34,446,327 • The overall construction related costs are estimated at $19,508,000 o Includes construction - $16,047,000
o Contingency (5%) - $803,000
o Administration, construction management, inspection - $2,408,000 o Engineering support - $250,000
• The Terrace buy-in water capacity fees is estimated at $7,004,559 • The Terrace capital improvement fee is estimated at $2,700,000 • Total project costs estimated at $29,212,559 which is within the projected State preliminary award of $34,446,327.
❖ Because the Terrace Consolidation will be fully funded by the State, there are No Financial Impacts or Rate Adjustments to existing Colton customers

Page 109 of 430 ends

Actions Required
• Approve the Consolidation Agreement between the City of Colton and Terrace Water Company.
• Adopt Resolution R-92-25 Authorizing the City Manager as the designee to sign and file the grant application on behalf of the City.
• Approve Resolution R-100-25 Imposing Additional Fees for Connection to the City System
• Imposes an additional connection fee that is associated to the infrastructure improvements that will be paid by the State
• Approve the Notice of Exemption for the Terrace Water Consolidation Project under CEQA Guidelines Section 15302 completed by Rincon Consultants, Inc.

City of Colton Water Utilities – People First, Water Always

Page 110 of 430 ends

Next Steps
• Staff will work with the SWRCB to complete and submit the grant application with all required backup documentation.
• After the Consolidation Agreement has been signed by both parties, the City will begin working with Terrace on the various administrative elements outlined in the agreement that will facilitate a smooth transition, such as:
– Obtaining the full list of Terrace customers and adding them to the City’s billing system and meter reading program.
– Conduct test reads of the Terrace system meters to makes sure the billing system functions properly.
• Once the SWRCB grant has been approved and upfront fees paid by the State… – City will begin extensive outreach to the Terrace customers to explain why the transition is happening and the timing of when the official transition in billing will occur.
– Work with MKN to finalize the construction plans and specs for bidding. – Bid the project and award the construction contract.

City of Colton Water Utilities – People First, Water Always

Page 111 of 430 ends

Page 112 of 430 ends

Item: 1.

Staff Report

Meeting Date: December 16, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Isaac T. Suchil, City Clerk
Item Name: Minutes - Approval of Minutes for the City Council Regular Meeting held on December 02, 2025, on File in the Office of the City Clerk.

Recommended Action:

Background:

Issues/Analysis:

Fiscal Impacts:

Alternatives:

Attachments:

1. 2025-12-02- Draft Minutes

Page 113 of 430 ends

City of Colton
City Hall, Council Chambers
650 N. La Cadena Drive
Colton, CA 92324
City of Colton Website
Mayor Frank J. Navarro
Council Members:

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

City Clerk Isaac T. Suchil
City Treasurer Henry M. Razo

City Manager William R. Smith
City Attorney Carlos Campos

Minutes
City Council
Colton Utility Authority, Colton Public Financing Authority Colton Housing Authority
Regular Meeting
Tuesday, December 2, 2025 – 5:00 PM
City Hall, Council Chambers

Closed Session
5:00 p.m.

Closed Session Called to Order
Closed Session meeting was called to order at 5:00 P.M. in the Council Chamber of City Hall, with Mayor Frank J. Navarro presiding.

Roll Call
Council members present were David J. Toro, Kelly Chastain, Luis S. Gonzalez, and Mayor Frank J. Navarro; CM Echevarria was absent and excused.

Staff present were William R. Smith, City Manager, Carlos Campos, City Attorney, and Stephanie M. Vargas, Chief Deputy City Clerk.

Public Comment - Closed Session
There were no public comments.

_____________________________________________________________________________________

Page 114 of 430 ends

Closed Session
City Attorney Carlos Campos announced the City Council would meet in Closed Session to discuss Items 1 and 2.
1) Conference with Legal Counsel - Existing Litigation
Pursuant to Government Code Section 54956.9 (d)(1)
Stephanie Moulas v. City of Colton
San Bernardino County Superior Court, Case No. CIVSB2401378 2) Public Employee Performance Evaluation
Job Titles: City Attorney & City Manager
City Attorney Oral Report on Closed Session Actions
City Attorney Campos announced that the City Council met in Closed Session and discussed Closed Session Items 1 and 2; direction was given but there was no reportable action.

Open Session

6:00 P.M.

Open Session Called to Order
Mayor Frank J. Navarro called Open Session to order at 6:00 P.M.

Invocation
Pastor Eric Strutz – The Door Church
Flag Salute
Veterans of Foreign Wars (VFW) Member – Bernie Moyeda
Roll Call
Council members present were David J. Toro, Kelly Chastain, Luis S. Gonzalez, and Mayor Frank J. Navarro; CM Echevarria was absent and excused.

Also present was the City Treasurer, Henry M. Razo.

Staff present were William R. Smith, City Manager, Carlos Campos, City Attorney, and Stephanie M. Vargas, Chief Deputy City Clerk.
_____________________________________________________________________________________

Page 115 of 430 ends

Ceremonial Matters
Presentations, Awards, Proclamations
• Recognition - 2024 Police Officer of the Year - Nilda Campos Police Chief, Anthony Vega, introduced 2024 Officer of the Year, Nilda Campos, to the City Council and highlighted the impressive list of accomplishments for which she was being recognized. Mayor Frank J. Navarro then read and presented a recognition certificate to Officer Campos on behalf of the City Council. Leanne Uribe, a representative for Vice Chair, County Supervisor, Joe Baca Jr.'s office, also presented a recognition certificate to Officer Nilda for her accomplishments. Officer Nilda accepted the certificates of recognition.

Mayor and Council Items
Gift Disclosures
None
AB 1234 Oral Reports
None
Appointments
None
Mayor and Council Discussion Items
Public Hearings
1) Public Hearing - Building Code Updates - Time & Place Fixed to Consider a Public Hearing to Introduce by Title Only and Waive the Full Reading of Ordinance O-12-25, an Ordinance of the City Council of the City of Colton, California, Adopting by Reference the 2025 California Building Code, Incorporating the "International Building Code, Volumes 1 and 2, 2021 Edition Including Appendices Thereto; the 2025 California Fire Code, Incorporating the "International Fire Code" 2024 Edition Including Appendices Thereto; the 2025 California Wildland-Urban Interface Code, Incorporating the “International Wildland-Urban Interface” 2024 Edition Including Appendices Thereto; the 2025 California Residential Code, Incorporating the "International Residential Code" 2025 Edition Including Appendices Thereto; the 2025 California Mechanical Code, Incorporating the "Uniform Mechanical Code", 2025 Edition; Including Appendices Thereto; the 2025 California Plumbing Code, Incorporating the "Uniform Plumbing Code", 2025 Edition, Including Appendices; Together with Certain Amendments, Deletions, Additions, and Exceptions, Ordinance No. O-12-25.

Page 116 of 430 ends

Staff Person: Heidi Duron
Public Hearing Opened
The Mayor announced the Public Hearing Open.

The City Clerk submitted the notice of Public Hearing (on file in the City Clerk's Office) and there were no letters of opposition received for this item.

Staff Presentation
Corrie Kates, Building Official, presented to Council an overview of the agenda Item.

Public Comment
There were no public comments.

Public Hearing Closed
A motion was made to Close the Public Hearing by CM Gonzalez, with a second by CM Chastain.

Roll Call Vote: Unanimous, Motion Passes with CM Echevarria being absent.

Council Discussion
Discernment and discussion between the Mayor and Council members present, with clarification provided by staff: Corrie Kates, Building Official; Heidi Duron, Director of Development Services; Jon Boggs, Fire Marshall; and Fire Chief Ray Bruno.

Motion/Vote
A motion was made to approve the Item by CM Gonzalez, with a second by MPT Toro.

Vote: Unanimous, Motion passes with CM Echevarria being absent. 2) General Plan Amendment & Municipal Code Amendment - Time and Place Fixed to Consider a Public Hearing to Waive Full Reading, and Read by Title Only and Introduce Ordinance No. O-10-25 Approving the Title 10 Municipal Code Amendment to Modify Listed Truck Routes in Compliance with AB 98, and to Approve and Adopt a Resolution to Approve a General Plan Amendment to the 2013 Mobility Element (File Index No. DAP25- 0024), Ordinance No. O-10-25. & Resolution No. R-93-25.

Staff Person: Heidi Duron
Public Hearing Opened
The Mayor announced the Public Hearing Open.

The City Clerk submitted the notice of Public Hearing (on file in the City Clerk's Office) and there were no letters of opposition received for this item.

Staff Presentation
Jolene Hayes, Fehr & Peers Consultant, presented to Council an overview of the agenda Item.

Page 117 of 430 ends

Public Comment
There were no public comments.

Public Hearing Closed
A motion was made to Close the Public Hearing by CM Gonzalez, with a second by CM Chastain.

Roll Call Vote: Unanimous, Motion Passes with CM Echevarria being absent.

Council Discussion
Discernment and discussion between the Mayor and Council members present, with clarification provided by staff: Joleene Hayes, Principal with Fehr & Peers; Heidi Duron, Director of Development Services; and William R. Smith, City Manager.

Motion/Vote
A motion was made to approve the Item by CM Gonzalez, with a second by CM Toro.

Roll Call Vote: Unanimous, Motion passes with CM Echevarria being absent.

Business Items
There were no Business items.
_____________________________________________________________________________ Public Comment - Limit 3 Minutes
There were no public comments.
_____________________________________________________________________________ Consent Calendar
Mayor Navarro presented the Consent Calendar Items 1 through 8.

Motion/Vote
A motion was made to approve the Consent Calendar by CM Chastain, with a second by MPT Toro.

Roll Call Vote: Motion Passed with CM Echevarria being absent and with CM Gonzalez voting no on Item #8.
1) Minutes - Approval of Minutes for the City Council Regular Meetings Held on November 04, 2025, and on November 18, 2025; on File in the Office of the City Clerk.

City Clerk: Isaac T. Suchil

Page 118 of 430 ends

2) Warrants - Approve voucher numbers 222525 to 222599 dated 10/29/2025 and totaling $91,809.21; voucher numbers 222600 to 222761 dated 10/30/2025 and totaling $1,574,808.69; voucher numbers 222762 to 222864 dated 11/06/2025 and totaling $652,237.76.

Staff Person: Stacey Dabbs
3) Agreement - Caltrans - Approve Agreement with Caltrans for the I-10/ Mt. Vernon Avenue Interchange Project and Other Interchanges within the City of Colton along the I- 10 Corridor.

Staff Person: Chad Blais
4) Authorized Positions List - Approve and Adopt a Resolution to Amend the Authorized Positions List to Add 3 Consumer Services Field Representatives I/II and Eliminate Two Water Distribution Operators I/II, Resolution No. R-95-25.

Staff Person: Charles Berry, Chad Blais
5) Continued Funding Application — California Department of Social Services (CDSS) - Approve a Resolution for the CDSS Continued Funding Application for the Early Childhood Education Program in the Community Services Department for Fiscal Year 2026-27, Resolution No. R-89-25.

Staff Person: Deb Farrar
6) Contract Award - Superb Engineering, Inc. - Approve Award of Contract to Superb Engineering, Inc. as the Lowest Responsive and Responsible Bidder for the C Street Slope Landscape Project in the Amount of $100,195.

Staff Person: Chad Blais
7) Purchase - Altec Industries, Inc. - Approve the Purchase of One Altec Upfitted Zero Emission Vehicle with Vehicle Mounted Traffic Arrow Board.

Staff Person: Charles Berry
8) Second Reading - Approve Second Reading of an Ordinance of the City Council of the City of Colton, California, Amending Colton Municipal Code Sections 2.12.030 and 2.12.050 Increasing City Council and Mayor Compensation, Ordinance No. O-11-25.

Staff Person: Stephanie M. Vargas

Page 119 of 430 ends

Mayor and Council Oral Reports and Comments
Comments from Mayor and Council on various issues and activities throughout the community can be viewed on our City of Colton Website (www.coltonca.gov).

City Manager's Reports
William R. Smith, City Manager, recognized and thanked Carrie Corrigan, Executive Assistant; Jessica Gallardo, Administrative Assistant; and Amme Taylor, Office Specialist II; for decorating the Council Chamber for Christmas.

Adjournment
Mayor Navarro adjourned the Regular Council Meeting at 07:13 PM.

_________________________
Stephanie M. Vargas, CMC, CPMC
Chief Deputy City Clerk
City of Colton

Page 120 of 430 ends

Item: 2.

Staff Report

Meeting Date: December 16, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Stacey Dabbs, Finance Director
Item Name: Warrants - Approve voucher numbers 222865 to 222949 dated 11/13/2025 and totaling $1,093,950.79; wires dated 11/17/2025 and totaling $6,239,493.65; voucher numbers 222950 to 223085 dated 11/20/2025 and totaling $11,714,649.26 and a payroll disbursement listing dated 10/11/2025 to 10/24/2025 and totaling $1,221,735.99.

Recommended Action:

Approve voucher numbers 222865 to 222949 dated 11/13/2025 and totaling $1,093,950.79; wires dated 11/17/2025 and totaling $6,239,493.65; voucher numbers 222950 to 223085 dated 11/20/2025 and totaling $11,714,649.26 and a payroll disbursement listing dated 10/11/2025 to 10/24/2025 and totaling $1,221,735.99.

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 Finance Director and City Manager.

Fiscal Impacts:

None.

Alternatives:

1. Provide alternative direction to staff.

Attachments:

Page 121 of 430 ends

1. Fund Number and Title Legend

2. Voucher lists

3. Payroll Registers

Page 122 of 430 ends

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: 3.

Staff Report

Meeting Date: December 16, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Thomas Cody, HR & Risk Management Director Item Name: Employment Agreement - Thomas Miller - Adopt a Resolution Approving an Employment Agreement with Thomas Miller, Resolution No. R-83-25.

Recommended Action:

Adopt Resolution No. R-83-25, which involves taking the following action in the order listed:

I. Appoints Thomas Miller as the Interim Assistant Director of Utility Operations pending the recruitment, selection, and employment of a permanent Assistant Director.

2 Authorizes the City Manager to enter into an Employment Agreement with Thomas Miller as Interim Assistant Director of Utility Operations.

Background:

The City's Interim Assistant Director of Utility Operations position is currently vacant, and staff is working to conduct a recruitment for a new Assistant Director. This recruitment is anticipated to take 3-4 months to complete. To ensure the continuity of operations and optimal succession planning, the City Manager intends to utilize an interim assignment of an Interim Assistant Director of Utility Operations, who will assist the department temporarily until a permanent assistant director is hired.

Thomas Miller has over 25 years of municipal administration of electric utilities.

As a CalPERS retiree, Mr. Miller can only work 960 hours in a fiscal year for CalPERS contracting agencies. Further, according to the City's published salary schedule, he cannot be paid more than what the City would otherwise pay a person filling the Assistant Director of Utility Operations position.

Under applicable law, the City Council must pass a resolution that makes certain findings before it can employ a CalPERS retiree on an interim basis. The attached resolution makes the requisite

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findings, authorizes the appointment of Thomas Miller as Interim Assistant Director of Utility Operations, and authorizes the City Manager to enter into an employment agreement with Mr.

Miller, a copy of which is enclosed herein for the City Council's review. Once approved and signed by the City Manager, a copy of the employment agreement will remain on file in the City Clerk's Office.

Issues/Analysis:

Given Mr. Miller's experience in the electric utilities' profession, this makes him ideally suited to serve in this role, until a permanent Assistant Director can be appointed.

Fiscal Impacts:

The Assistant Director of Utility Operations position is a budgeted and authorized full-time position, so no additional fiscal impact is associated with this action. Mr. Miller would be paid an hourly rate of $111.28 per hour, which is consistent with Step E in the adopted salary range for the Assistant Director of Utility Operations position. He would not be entitled to any benefits, vacation or holidays.

Alternatives:

1. City Council may provide alternative direction to staff.

Attachments:

1. Employment Contract - Thomas Miller 12-16-25 final (BBK Revised)-c1 TC final

2. 12-16-25 Resolution Appointing Interim Assistant Director of Utility Operations (BBK Revised)-c1 TC final

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AGREEMENT FOR

INTERIM PUBLIC WORKS & UTILITIES DIRECTOR

SERVICES

THIS AGREEMENT is made and entered into this 16th day of December 2025 by and between the City of Colton ("CITY") and Thomas Miller ("EMPLOYEE"). In consideration of the mutual covenants and agreements set forth herein, the Parties agree as follows:

RECITALS

This Agreement is made and entered into with respect to the following facts:

A. CITY seeks to engage EMPLOYEE on an interim basis to serve in the position of Interim Assistant Director of Utility Operations in accordance with the terms set forth in this Agreement; and

B. EMPLOYEE desires to accept employment as Interim Assistant Director of Utility Operations in consideration of and subject to the terms, conditions and benefits set forth in this Agreement; and

C. EMPLOYEE represents that he is a retired annuitant of CalPERS within the meaning of Government Code §§ 7522.56 and 21221(h) ("Statutes") and acknowledges that his compensation is statutorily limited as provided in Government Code § 2122l(h). EMPLOYEE acknowledges that he can work up to 960 hours, collectively, for the CITY, a State agency or other CalPERS contracting agencies (collectively "CalPERS Agencies") during the CITY's 2025-2026 fiscal year.

EMPLOYEE represents that he has not received unemployment compensation from any CalPERS Agencies during the 12-month period preceding the effective date of this Agreement. EMPLOYEE further represents that his CalPERS retirement date became effective prior to the 180-day period preceding the effective date of this Agreement; and

D. CITY has determined that it is necessary to hire EMPLOYEE, a retired annuitant, because the position of Interim Assistant Director of Utility Operations requires special skills, and EMPLOYEE, by virtue of his experience has those special skills.

NOW, THEREFORE, CITY and EMPLOYEE, in consideration of the mutual covenants and agreements herein contained, agree as follows:

1. DESIGNATION OF INTERIM ASSISTANT DIRECTOR OF UTILTY OPERATIONS.

In accordance with Resolution No. R-83-25, EMPLOYEE is appointed Interim Assistant Director of Utility Operations of the CITY under the terms of this Agreement.

2. POSITION AND DUTIES . EMPLOYEE has been appointed by the City Council as Interim Assistant Director of Utility Operations of the City to perform, on a basis set forth below, the duties and functions pertaining to the Interim Assistant Director of Utility Operations position, and to perform other legally permissible duties and such functions as the Electric Utility Director

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h
shall from time-to-time assign. The Electric Utility Director shall have the authority to determine the specific duties and functions, which EMPLOYEE shall perform under this Agreement and the means and manner by which EMPLOYEE shall perform those duties and functions. EMPLOYEE agrees to devote all of his business time, skill attention, and best efforts to the discharge of the duties and functions assigned to him by the Electric Utility Director.

3. TERM; TERMINATION AND AT-WILL STATUS.

This Agreement shall become effective upon the date executed by both EMPLOYEE and the City Manager, which date shall be the date first referenced above. EMPLOYEE shall commence the performance of his duties as the Interim Assistant Director of Utility Operations on Wednesday December 17, 2025, or at such later date as the parties hereto shall agree in writing (“Commencement Date"). This Agreement shall expire as of the first of the following to occur:

(i) Upon the employment commencement date of a permanent Assistant Director of Utility Operations employed by CITY; (ii) upon EMPLOYEE working his 960th hour for all CalPERS Agencies during fiscal year 2025-2026 or his 960th hour in any subsequent fiscal year; or (iii) upon termination of the Agreement by either EMPLOYEE or CITY as provided below.

EMPLOYEE acknowledges that he is an at-will, temporary employee of CITY who shall serve at the pleasure of the Electric Utility Director/City Manager at all times during the period of his service hereunder and shall be subject to termination by Electric Utility Director/City Manager at any time without advance notice and without cause. The terms of CITY's personnel rules, policies, regulations, procedures, ordinances, and resolutions regarding City Administrative Personnel (collectively "Personnel Policies"), as they may be amended or supplemented from time to time, shall not apply to EMPLOYEE, and nothing in this Agreement is intended to, or does, confer upon EMPLOYEE any right to any property interest in continued employment, or any due process right to a hearing before or after a decision by the Electric Utility Director/City Manager to terminate his employment. Nothing contained in this Agreement shall in any way prevent, limit or otherwise interfere with the right of CITY to terminate the services of EMPLOYEE and nothing in this Agreement shall prevent, limit or otherwise interfere with the right of EMPOYEE to resign at any time from this position with CITY.

4. COMPENSATION . The CITY agrees to provide the following compensation to EMPLOYEE for the services of Interim Assistant Director of Utility Operations :

CITY agrees to pay to EMPLOYEE for services rendered under this Agreement, the hourly rate of One Hundred Eleven Dollars and Twenty-eight Cents ($111.28). The City shall not pay for vacation or holidays, nor shall EMPLOYEE be entitled to any other fringe benefits.

5. ABUSE OF OFFICE . Pursuant to Government Code Sections 53243, 53243.1 and 53243.2, if EMPLOYEE is convicted of a crime involving an abuse of his/her office or position, all of the following shall apply: (1) if EMPLOYEE is provided with administrative leave pay pending an investigation, EMPLOYEE shall be required to fully reimburse City such amounts paid; (2) if City pays for the criminal legal defense of EMPLOYEE (which would be in its sole discretion, as it is generally not obligated to pay for a criminal defense), EMPLOYEE shall be required to fully reimburse City such amounts paid; and (3) if this Agreement is terminated, any Severance Pay and Severance Benefits related to the termination that EMPLOYEE may receive

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from City Hall, be fully reimbursed to City or void if not yet paid to EMPLOYEE. For purpose of this Section, abuse of office or position means either: (1) an abuse of public authority, including waste fraud, and violation of the law under color of authority; or (2) a crime against public justice including, but not limited to a crime described in Title 7 (commencing with Section 92) of Part 1 of the Penal Code.

Notwithstanding the above, it is understood that EMPLOYEE is a CalPERS retired annuitant employed pursuant to Government Code sections 7522.56 and 21221(h) and, accordingly, shall not receive any benefits, incentive, and compensation in lieu of benefits or any other forms of compensation in addition to the hourly rate set forth in Section 4 of this Agreement.

6. NOTICE. Notices required pursuant to this Agreement shall be given by personal service upon the party to be notified or by delivery of same to the custody of the United States Postal Service, or its lawful successor, postage prepared and addressed as follows:

CITY
City of Colton
650 North La Cadena Drive
Colton, CA 92324
Attention: William R. Smith, City Manager

EMPLOYEE
Thomas Miller
Address on File

7. HOURS OF WORK. EMPLOYEE shall devote the time necessary to adequately perform his duties as Interim Assistant Director of Utility Operations . The parties anticipate that EMPLOYEE will work a sufficient number of hours per week allocated between regular business hours and hours outside of regular business hours including, without limitation, attendance at regular and special City Council meetings, Utilities Commission meetings, community events and other CITY functions as the Director of Electric Utility/City Manager may direct. However, in no event shall EMPLOYEE be required to work in excess of 960 hours in fiscal year 2025-2026 and 960 hours per each subsequent fiscal year for CITY, including hours worked for other CalPERS Agencies during such fiscal years.

It is the intent of the parties to compensate EMPLOYEE only to the extent permitted under the Statutes and corresponding CalPERS regulations and policy statements. The Rate of Pay set forth above is based on the salary limitations established by CalPERS in accordance with Section 21221(h), which provides that the Rate of Pay shall be no less than the minimum or greater than the maximum hourly rate for the Assistant Director of Utility Operations position as listed on the City's publicly available pay schedule.

EMPLOYEE will comply with all applicable CalPERS regulations governing employment after retirement, including the recordation and reporting of all hours worked for CITY to CalPERS as may be required. CITY shall assist in any such reporting obligations to CalPERS.

Additionally, EMPLOYEE shall keep CITY continually appraised of any hours worked by EMPLOYEE for other CalPERS Agencies during the term of this Agreement.

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8. WAIVER. No waiver of any provision of this Agreement shall be deemed or shall constitute a waiver of any other provision whether or not similar, nor shall any such waiver constitute a continuing or subsequent waiver of the same provision. No waiver shall be binding, unless executed in writing by the party making the waiver.

9. ENTIRE AGREEMENT. This Agreement constitutes the entire Agreement of the parties considering the subject matter hereof and all prior agreements or understanding, oral or written, are hereby merged herein. This Agreement shall not be amended in any way except by a writing expressly purporting to be such an amendment, signed, and acknowledged by both of the parties thereto. If any portion or provision hereof is held to be unconstitutional, invalid, or unenforceable, the remainder of this Agreement or portion thereof shall be deemed severable and shall be effective and shall remain in full force and effect.

CITY OF COLTON

By: Date:

William R. Smith, City Manager

EMPLOYEE

By: Date:

Thomas Miller

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RESOLUTION NO. R-83-25

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLTON

APPOINTING THOMAS MILLER AS INTERIM ASSISTANT DIRECTOR OF

UTILITY OPERATIONS AND APPROVING EMPLOYMENT CONTRACT

WHEREAS, Government Code Section 21221(h) permits the City Council to appoint a California Public Employees’ Retirement System (“CalPERS”) retiree to a vacant position requiring specialized skills during recruitment for a permanent appointment, and provides that such appointment will not subject the retired person to reinstatement from retirement or loss of benefits so long as it is a single appointment that does not exceed 960 hours in a fiscal year; and

WHEREAS, the Colton Electric Utility has experienced significant administrative staff turnover in personnel recently and currently has multiple vacancies; and

WHEREAS, the City is actively recruiting to fill these vacancies; and

WHEREAS, to ensure the efficient continued operation of the City’s Electric Utility Department, the City Council desires to retain the services of Thomas Millar, a retired member of CalPERS, to serve as Interim Assistant Director of Utility Operations, effective Wednesday, December 17, 2025; and

WHEREAS, Thomas Miller has extensive experience in municipal employment with electric utilities; and

WHEREAS, pending the recruitment, selection, and employment of an Assistant Director of Utility Operations, the City desires to appoint Thomas Miller as Interim Assistant Director of Utility Operations, pursuant to the authority provided under Government Code Section 21221(h), to provide the leadership, managerial and organization skills necessary to help manage the City’s Electric Utility Department effectively and efficiently; and

WHEREAS, it is understood by Thomas Miller and the City that the combined total hours to be served by Thomas Miller in any fiscal year for all CalPERS employers shall not exceed the 960-hour limitation outlined in California Government Code Section 21221(h), unless authorized in-writing by CalPERS; and

WHEREAS, the City Council has reviewed a proposed employment agreement by and between Thomas Miller and the City of Colton.

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NOW THEREFORE, BE IT RESOLVED, DECLARED, DETERMINED AND ORDERED by the City Council of the City of Colton, California, as follows:

SECTION 1. As required by Government Code Section 21221(h), the City Council makes the following findings:

(A) All facts outlined in the Recitals to this Resolution are true and correct.

(B) Thomas Miller has the specialized skills needed to perform the work required as an Interim Assistant Director of Utility Operations until a permanent Assistant Director of Utility Operations is appointed and thereafter begins his or her service.

(C) It is in the best interests of the City of Colton to enter into an employment agreement with and to appoint Thomas Miller as Interim Assistant Director of Utility Operations for the City of Colton pursuant to the authority provided under Government Code Section 21221(h).

SECTION 2. Thomas Miller is hereby appointed as Interim Assistant Director of Utility Operations of the City of Colton in accordance with Government Code Section 21221(h) and with the provisions of the employment agreement on file with the City Clerk.

SECTION 3. The employment agreement with Thomas Miller, a copy of which is on file with the City Clerk, is hereby approved by the City Council of the City of Colton, and effective Wednesday, December 17, 2025.

SECTION 4. The City Manager is authorized to execute said agreement on behalf of the City of Colton, with such technical amendments as may be deemed appropriate by the City Manager and City Attorney.

PASSED, APPROVED AND ADOPTED this 16th day of December 2025.

______________________________
Frank Navarro, Mayor
ATTEST:

____________________________
Issac Suchil, City Clerk

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Item: 4.

Staff Report

Meeting Date: December 16, 2025
To: City Council
From: Bill Smith, City Manager
Prepared By: Chad Blais, PW & Utility Services Director Item Name: Contract Award - DM Contracting - Approve Contract Award to DM Contracting for Pavement Patch Repairs for Water and Wastewater Projects.

Recommended Action:

Staff recommends City Council:

1. Approve a Maintenance Service Agreement with DM Contracting to provide On-Call Pavement and Patch Repair for Water and Wastewater Projects for a term of one year at an annual cost of $500,000.

2. Authorize the City Manager to approve and execute up to two, one-year contract extensions at an annual cost of $250,000 each additional year.

Background:

The Water Utilities Division responds to a high volume of water and sewer service repairs each year, completing approximately 150 or more excavations across the City’s service area. These repairs are critical to maintaining the integrity of the City’s distribution and collection systems, addressing main breaks, service line leaks, and sewer deficiencies, and ensuring continued compliance with safety and regulatory standards.

Public Works crews provide critical services across the City, often responding to emergencies, routine maintenance needs, and project demands simultaneously. These teams continue to perform at a high level with the resources available to them, and their work is essential to maintaining safe and reliable street infrastructure. However, the variety and volume of responsibilities they manage require constant prioritization of immediate safety needs and core maintenance tasks. Because larger utility-related pavement restorations are highly specialized and labor-intensive, it is not always feasible to complete this work in-house given current equipment, staffing levels, and the technical demands of these repairs. This is not a reflection of

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staff performance, but rather the operational reality of a multi-service department with limited resources. To support our crews and maintain the community’s expectations for high-quality roadway restoration, the proposed contract supplements, not replaces, existing staff by providing dedicated paving resources specifically for larger, more complex water and sewer utility repairs.

After each utility repair, City utility crews complete the excavation work, make the necessary water or sewer repair, and place temporary cold-mix asphalt to reopen the roadway as quickly and safely as possible. While this approach restores immediate access for the public, permanent asphalt restoration requires specialized equipment, larger crews, and extended work windows that are difficult to accommodate given current staffing levels, operational priorities, and the department’s responsibility for a broad range of essential services across the City. As a result, temporary patches may remain in place longer than optimal, which can lead to accelerated roadway wear and generate concerns from residents.

Issues/Analysis:

To ensure trench cuts and utility repairs are restored in a timely, durable, and professional manner, the City solicited competitive bids in accordance with City procurement requirements for an annual pavement patching contract. Utilizing a dedicated contractor for these larger, more complex utility-related restorations will improve the speed and quality of permanent patching, reduce long-term roadway maintenance needs, and enhance overall safety for motorists, bicyclists, and pedestrians. Also, contracting these pavement repair services will ensure the costs for the repairs are borne by the respective utility and not the Street Divsion with uses general fund monies to repair street issues. In accordance with Colton Municipal Code section 3.08.110, a request for bids was solicited through the City’s bidding portal, Bidnet Direct. The bid was advertised on October 02, 2025, and closed on October 30, 2025. The City received and opened nine bids, as summarized below:

BID OPENING REPORT SUMMARY
Bidder Bid Amount

1. DM Contracting Co $ 146,190.60

2. LP Paving and Grinding $ 155,407.00

3. Paveco Construction, Inc. $ 182,499.25

4. MCC Equipment Rentals $ 194,362.00

5. Onyx Paving Company, Inc. $ 217,978.00

6. B-81 Paving, Inc. $ 224,957.55

7. GM Sager Construction Co. Inc. $ 244,024.00

8. Hardy & Harper Inc. $ 267,898.00

9. NPL Construction Co. $ 319,215.25

These bid totals reflect a lump-sum evaluation based on arbitrary quantities.. An arbitrary quantity was included for bid items 1.1 through 3.3 solely for the purpose of establishing comparable lump-sum pricing across all bidders.

As noted in the bid documents:

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“An arbitrary quantity has been provided for items 1.1–3.3 for the express purpose of evaluating bids on a lump sum basis. Unit pricing for asphalt repairs will be based upon the patch repair area of each location. Typical minimum asphalt repair areas are expected to be no less than 25 square feet, and multiple areas of repair may be provided on a monthly basis.”
Because actual patch sizes will vary throughout the year, the contractor will be paid based on unit pricing per square foot rather than the lump-sum bid amount. The lump-sum bid is used solely to determine the lowest responsive and responsible bidder.

In addition to the standard unit-price asphalt patching work, the bid also included two specific larger pavement restoration locations identified in the bid schedule. Because these locations have defined quantities and full-depth restoration requirements, they will be paid at the lump-sum prices provided in the contractor’s bid, rather than using the square-foot unit pricing that applies to typical patch repairs. Including these two locations in the bid ensured competitive pricing for the larger restoration areas while still allowing the remainder of the contract to operate on a unit- price, as-needed basis.

Following review, staff determined that DM Contracting Co. is the lowest responsive and responsible bidder. Although their evaluated bid amount is $146,190.60, staff recommends establishing a not-to-exceed annual contract of $500,000.00 to support the high volume of water and wastewater trench restorations completed throughout the year.

Fiscal Impacts:

There are sufficient appropriations available in the FY2025-26 adopted budget in the following accounts:

Water Utility 521-8100-8101-2350-0000-000 $400,000.00
Wastewater Utility 522-8200-8200-2350-0000-000 $100,000.00

For Fiscal Years 2026/27 and 2027/28, the total cost will be $250,000 per year. The total cost obligation to the City for the three-year term will total a not-to-exceed amount of $1,000,000.

Future years will be included in the annual department budget request.

Alternatives:

1. Provide alternative direction to staff.

Attachments:

1. DM Contracting Svcs Maint Svcs Agreement FY 25-26

2. City of Colton, On-Call PAvement and Patch Repair for Water and Wastewater Projects

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23152.04000\42402786.1

(BB&K 2024)

- 1 -

CITY OF COLTON

MAINTENANCE SERVICES AGREEMENT

1. PARTIES AND DATE.

This Agreement is made and entered into this __ day of __, 2025 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 DM Contracting, Inc. a Corporation with its principal place of business at 1065 Harber Drive, CA 92324 (“Contractor”). City and Contractor are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

2. RECITALS.

2.1 Contractor.

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

Contractor represents that it is experienced in providing maintenance services on paving and patch repairs to public clients, that it and its employees or subcontractors have all necessary licenses and permits to perform the Services in the State of California, and that is familiar with the plans of City. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.

2.2 Project; Colton Utility Authority.

City desires to engage Contractor to render such services for the On Call Pavement and Patch repairs for Water and Sewer projects (“Project”) as set forth in this Agreement. Contractor understands that the City has entered into a Utility System Management Agreement, dated as of September 1, 2000, with the Colton Utility Authority (“CUA”) for the maintenance, management and operation of its Water Enterprise and Wastewater Enterprise (“CUA Management Agreement”). To the extent that this Agreement is deemed to be a "material contract" under the CUA Management Agreement, City enters into this Agreement on behalf of the CUA and subject to the terms of the CUA Management 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 paving 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 exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.

3.1.2 Term. The term of this Agreement shall be from ______________, 2025 to June 30, 2026, unless earlier terminated as provided herein. Contractor shall complete the

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23152.04000\42402786.1

(BB&K 2024)

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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 Agreement if necessary to complete the Services. If the City chooses to extend the Agreement, the City will provide written notice to the Contractor thirty (30) days prior to the end of the Agreement term.

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 Agreement 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 insurance, 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 manner. 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 Chad Blais, Director of Public Works and Utility Services, 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 directions 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 David S.

Magana, 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, techniques, 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.

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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 represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors 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.

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 during 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,

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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.

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 Act 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 Contractor 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

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Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.

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 Reported 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 defend, 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 Federal 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 Protection 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 City, its directors, officials, officers, employees, volunteers and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from and

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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, 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 Contractor, 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 MINIMUM; 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 MINIMUM; 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 MINIMUM; 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 the 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 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 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 respects 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 subcontractors’ 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 person 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 reserves 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 limited 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 any 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 alteration 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 Contractor 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 Agreement 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 work 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 manufacturer or supplier of equipment or materials 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 repairing 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 subcontractors, 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 warranty 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 work 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 Five Hundred Thousand Dollars and Zero Cents ($500,000) without written approval of City’s City 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 compensated 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 shall 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 Prevailing 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 may 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 liability 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 before 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. Contractor 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 Agreement. 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:

DM Contracting, Inc.
1065 Harber Drive
Colton, CA 92324
Attn: David S. Magana

City:

City of Colton
650 North La Cadena Drive
Colton, CA 92324
Attn: Chad Blais, Director of Public Works
and Utility Services
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 expert 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

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Colton City CouncilDecember 16, 2025

Colton City Council
December 16, 2025