Agenda packet — Fontana City Council, March 25, 2025 (part 1 of 4)

Tuesday, March 25, 2025
2:00 PM
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
Regular Agenda
Ord. No.1966 Reso. No. 2025-018
Grover W. Taylor Council Chambers
City Council Meeting
Acquanetta Warren - Mayor
Peter A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine Key - City Clerk
Janet Koehler-Brooks, City Treasurer
1 City Council Meeting Regular Agenda March 25, 2025
Welcome to a meeting of the Fontana City Council.

Welcome to a meeting of the Fontana City Council. Meetings are held at the Grover W. Taylor Council Chambers 8353 Sierra Avenue Fontana, CA 92335. To address the Council, please fill out a card located at the entrance to the right indicating your desire to speak on either a specific agenda item or under Public Communications and give it to the City Clerk. Your name will be called when it is your turn to speak. In compliance with Americans with Disabilities Act of 1990 (42 USC § 12132), the Council Chambers is wheelchair accessible, and a portable microphone is available. Upon request, this agenda will be made available in appropriate alternative forms to persons with disabilities, as required by Section 12132 of the Americans with Disabilities Act of 1990. Any person with a disability who requires accommodation to participate in a meeting should direct such a request to the City Clerk ’s Office at ( 909) 350-7602 at least 48 hours before the meeting, if possible. Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the City Clerk’s Office.

Para traducción en Español, comuniquese con la oficina,“City Clerk” al (909) 350-7602.

The City of Fontana is committed to ensuring a safe and secure environment for its residents to engage with the government. No oversized bags or backpacks (size limit of 14”x14”x6”) will be allowed inside the Council Chambers. All bags are subject to search. Face masks are prohibited in the Council Chambers, but clear masks will be provided upon request to accommodate individuals with medical needs, ensuring their safety and well-being. Before entering the Council Chambers, you may be subject to a metal detector screening. The City Manager retains the discretion to grant any exemptions. Fontana aims to provide safe buildings for our community members, employees, and visitors.

PUBLIC COMMUNICATION - CLOSED SESSION:

This is an opportunity for citizens to speak to the City Council for up to 3 minutes on the following Closed Session. The Mayor and City Council reserve the right to adjust this time limit based on the number of speakers who wish to address the Mayor and City Council.

A. Public Communications - Closed Session
CLOSED SESSION:

A. 1:00 P.M. CLOSED SESSION
A. 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Gov. Code section 54956.8)
Property: 0191-161-18, 0191-161-13, 0191-161-17 ,
0191-161-28, 0191-161-29, 0191-161-02, 0191-162-18,
0191-162-19, 0191-162-20, 0191-162-21, 0191-162-22,
0191-162-23, 0191-162-24, 0191-162-25, 0191-162-26,
0191-162-27, 0191-162-44, 0191-162-14, 0191-162-13,
0191-162-40, 0191-162-39, 0191-162-09, 0191-162-08,
0191-162-05. All of which are located on Arrow Blvd and 25-0130

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2 City Council Meeting Regular Agenda March 25, 2025
Spring Street, between Nuevo Avenue and Juniper Avenue
in Fontana CA, 92335
City Negotiator: Matt Ballantyne, City Manager
Negotiating Party: Taylor Libolt Varner
Under Negotiation: Price and Terms of payment
CALL TO ORDER/ROLL CALL:

A. Call To Order/Roll Call:

INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

PROCLAMATION:

A. Proclamation
A. 1. Mayor Warren and City Council to proclaim April 2025 as National Donate Life Month (Elaine Jones, One Legacy
Ambassador, to accept).
25-0128
SPECIAL PRESENTATIONS:

A. Special Presentations
A. A. Presentation of APWA Project of the Year Award for Outstanding Roadway Capacity Improvement Project –
Sierra Avenue Widening.

B. Mayor Warren and City Council to swear in new Fontana Police Officers Regina Barajas, Tyler Burke, Dominic
Galvan, Mario Gonzalez, Sal Gonzalez, Billy Gustason,
Nicholas Martinez, Dylan Pon, Richard Stith & Brett
Swanson (Chief Michael Dorsey to present).

C. Mayor Warren and City Council to recognize Sergeants Travis Burnside and Casey Kirkland, Corporals John
Collopy, Garrett Gooselaw, Andrew Hackett, Taylor Hart, Tyler Pope, Buddy Porch, Matthew Rodgers and Bradley
Ubovich, Forensic Evidence Technicians Andrea Boone,
Jon-Paul Mitchell and Lisa Young, & Records Specialist II Roxana Ramirez as January 2025 Employees of the month
(Captain Burton to present).
25-0103
PUBLIC COMMUNICATIONS:

This is an opportunity for members of the public to address the City Council for up to three ( 3)

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3 City Council Meeting Regular Agenda March 25, 2025
minutes total on items either on the Agenda or items not on the Agenda, but within the City Council's jurisdiction. Note that Public Hearing items have individual and specific public input opportunities during the public hearing and testimony on those items will only be taken during the public hearing. The Council is prohibited by law from discussing or taking immediate action on non-agendized items. The Mayor and City Council reserve the right to adjust this time limit based on the number of speakers who wish to address the Mayor and City Council.

A. Public Communications
CONSENT CALENDAR:

All matters listed under CONSENT CALENDAR will be enacted by one motion in the form listed below. There will be no separate discussion on these items prior to the time Council votes on them, unless a member of the Council requests a specific item be removed from the Consent Calendar for discussion.

Approve Consent Calendar Items as recommended by staff.

A. Approval of Minutes 25-0132
Approve the minutes of the March 11, 2025, Regular City Council Meeting.

City Council Meeting Minutes 03-11-2025.pdfAttachments:

B. Purchase & Sale Agreement- Regional Homeless
Navigation Center
25-0025

1. Approve a Purchase & Sale Agreement for the purchase of building and associated land located at 11109 Jasmine Street, more specifically described as APN # 0238-111-53 in the amount of $11,664,510.

2. Authorize the City Manager to execute any documents necessary or appropriate to effectuate said approvals and/or agreement.

STANDARD OFFER, PSA, INSTRUCTIONS APN
0238-111-53 11109 JASMINE ST EXECUTED.pdf
Attachments:

C. American Rescue Plan Act Update 25-0079
Receive update and approve revisions to the American Rescue Plan Act (ARPA) Expenditure Plan, including the leveraged projects.

Attachment A
Attachment B
Attachments:

D. Amend Administrative Policy Purchasing 20-50 25-0087 Adopt Resolution 2025-018, of the City Council of the City of Fontana, amending Administrative Policy Section 20-50 (Purchasing Policies and Procedures Manual).

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4 City Council Meeting Regular Agenda March 25, 2025
Resolution 2025- Administrative Policy-c1 - FINAL.docx Purchasing Policy and Procedure Manual v3-25
Purchasing-Edits c2.docx
Attachments:

E. Acceptance of Housing and Homelessness Incentive Grant 25-0110

1. Accept grant funding from the County of San Bernardino Community Development & Housing Department in the amount of $500,000 in Housing and Homelessness Incentive Program HHHIP) Funds

F. Designation of Applicant's Agent Resolution For Non-State Agencies (Cal OES 130) for Public Assistance Program
25-0111
Approve Cal OES Form 130, Designation of Applicant’s Agent Resolution for Non-State Agencies, designating the City of Fontana’s authorized agents to provide required assurances and execute agreements for the purpose of obtaining disaster relief and emergency assistance for all open and future disasters for up to three (3) years following the date of approval.

OES-FPD-130.pdfAttachments:

G. Approve award and authorize a Agreement with JK Mosaic, LLC for Outdoor Public Artwork Services at the Downtown Parking Structure (DE-24-145-SQ)
25-0113

1. Award and authorize the City Manager to execute a Agreement with JK Mosaic, LLC for Outdoor Public Artwork Services at the Downtown Parking Structure in the amount of $134,353.41.

2. Approve and authorize the City Manager to execute any future amendments to the Agreement.

Professional Services Agreement - JK Mosaic LLC - DRAFT [03.12.25].pdf
Jennifer Kuhns - Mural Full Color Draft.pdf
Kuhns_Mural_Budget.pdf
Kuhns_Project_Milestones.pdf
Attachments:

H. Police Department Monthly Information Update 25-0114 Accept the Police Department monthly information update for January 2025.

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5 City Council Meeting Regular Agenda March 25, 2025
January 2025 Report for City Council Rev.pptxAttachments:

I. Accept and Approve Fontana City Council Priorities for 2025
25-0121
Approve Council Priorities for 2025
J. Award a Design-Build Contract for the Downtown West
Parking Structure Project (DE-24-132-SQ-01).
25-0124

1. Award and authorize the City Manager to enter into a Design-Build Contract with McCarthy Building Companies, Inc. for the Downtown West Parking Structure Project in the amount of $20,672,583.00 and authorize a contingency in the amount of $2,067,258.30 (Bid No. DE-24-132-SQ- 01).

2. Approve and authorize the City Manager to execute future individual Design-Build Contract Change Orders not exceeding the Contingency amount for the Downtown Parking Structure Project (DE-24-132-SQ-01).

3. Authorize the City Manager to execute any and all utility agreements, utility easement, and any related items on behalf of the City of Fontana for the Downtown West Parking Structure Project (Bid No. DE-24-132 -SQ-01).

Vicinity Map.pdf
[DRAFT] Design-Build Contract.pdf
Proposal (DE-24-132-SQ-01).pdf
Attachments:

K. Additional Fiscal Year 2024-25 Organizational Changes, Including New Classifications and Salary Ranges.
25-0125

1. Approve the additional recommended organizational changes including the establishment of four ( 4) new classifications, one ( 1) reclassification, and the addition of six (6) new positions to the 2024-25 Current Budget.

2. Adopt Resolution No. 2025-019, a resolution of the City Council of the City of Fontana, California, approving the updated salary table for the Teamsters Local 1932 City Hall Unit and the Management /Confidential salary tables, effective March 26, 2025.

Resolution Updating Salary Tables for City Hall Unit and Management/Confidential Group
Attachments:

L. Acceptance of a grant to Support Local Arts Events 25-0126 Authorize the City Manager or his designee to enter into a contract with the San Bernardino County Board of Supervisors to accept a contribution in the amount of $100,000 for the production and support costs of Local Arts Events at Stage Red.

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6 City Council Meeting Regular Agenda March 25, 2025
CON-CAO-04-08-25-BDF-D2-City of Fontana Support Local
Arts Events.pdf
Attachments:

PUBLIC HEARINGS:

To speak on Public Hearing Items, submit comments via e-mail at [email protected]. In the subject of your e-mail please indicate whether you are in favor or opposition of the item. Comments must be received no later than 12:00 P.M. on the day of the meeting. Comments of no more than three ( 3) minutes will be read into the record at the appropriate time during the meeting. If you challenge in court any action taken concerning a Public Hearing item, you may be limited to raising only those issues you or someone else raised at the Public Hearing described in this notice or in written correspondence delivered to the City at, or prior to, the Public Hearing.

All Public Hearings will be conducted following this format:
(a) hearing opened (e) oral - favor
(b) written communication (f) oral - opposition
(c) council/staff comments (g) hearing closed
(d) applicant comments (applicant not limited to 5 minutes) A. Quarterly Lien Action for Delinquent Sewer, Rubbish and Weed Abatement Accounts
25-0084

1. Authorize staff to complete and record lien notices against real property for those sewer accounts sixty days or more delinquent as described in Certified Lien List and direct staff to forward recorded liens to the County for collection.

2. Authorize staff to complete and record liens against real property for those rubbish accounts more than ninety days delinquent as described in the Certified Lien List and direct staff to forward recorded liens to the County for collection.

3. Adopt Resolution No. 2025-020, of the City Council of the City of Fontana adopting the statement of unpaid expenses for weed abatement and imposing a lien against real property for payment thereof.

Public Hearing Notice - Rubbish
Public Hearing Notice - Sewer
Public Hearing Notice - Weed Abatement
Weed Abatement Resolution March 2025
Attachments:

B. Public Hearing and Adoption of Housing and Urban
Development ( HUD) Planning Documents including the
Five-Year Consolidated Plan ( 2025-2029), the One-Year
25-0023

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7 City Council Meeting Regular Agenda March 25, 2025
Annual Action Plan ( 2025-2026), and the Analysis of
Impediments (2025-2029)

1. Adopt the draft Five-Year Consolidated Plan (2025-2029); and

2. Adopt the draft FY2025-26 Annual Action Plan for Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programming; and

3. Adopt the draft Analysis of Impediments to Fair Housing Choice (2025- 2029); and

4. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to ensure the City's timely receipt and execution of Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG) programs; and

5. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable, including but not limited to purchase agreements that may include acquisitions costs up to the full amount of the allocated funds, to facilitate the timely administration of the Community Development Block Grant (CDBG) Acquisition, Rehabilitation, and Rental Program including but not limited to property purchase agreements; and

6. Authorize the City Manager, or City Manager’s designee, to award and execute any construction contracts up to $200,000 to facilitate the timely administration of the Community Development Block Grant (CDBG) Acquisition, Rehabilitation, and Rental Program.
2025-2029 Consolidated Plan DRAFT v3.pdf
2025-2029 Analysis of Impediments DRAFT.pdf
Attachments:

C. Public Hearing and Adoption of Updated Citizen
Participation Plan for U .S. Department of Housing and
Urban Development (HUD) Grants
25-0075
Adopt the draft Citizen Participation Plan
2025 Citizen Participation Plan DRAFT.pdfAttachments:

D. Master Case (MCN) No. 24-073 and Municipal Code
Amendment (MCA) No. 24-006: Fontana Municipal Code
Amendments to Chapter 30 (Zoning and Development
Code) to modify Section No. 30-467 pertaining to accessory 25-0030

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8 City Council Meeting Regular Agenda March 25, 2025
dwelling units (ADUs) and junior accessory dwelling units (JADUs) to comply with State of California law, pursuant to a statutory exemption in accordance with California Public Resources Code section 21080.17

1. Determine that the proposed ordinance is statutorily exempt from the California Environmental Quality Act (“CEQA”) pursuant to California Public Resources Code section 21080.17 as CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Article 2 of Chapter 13 of Division 1 of Title 7 of the California Government Code, Which is California ’s ADU law and which also regulates JADUs, as defined by section 66313; and,

2. Read by title only and waive further reading of and introduce Ordinance No.1966, an Ordinance of the City of Council of the City of Fontana approving Master Case No. 24-073 and Municipal Code Amendment (MCA) No. 24-006 to amend Section 30-467 of Chapter 30 of the Municipal Code pertaining to accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) to comply with State of California law; and the reading of the title constitutes the first thereof.

Attachment No. 1 - Ordinance
Attachment No. 2 - Planning Commission Packet
Attachment No. 3 - Planning Commission Minutes of
January 21, 2025
Attachment No. 4 - Public Hearing Notice
Attachments:

NEW BUSINESS:

A. New Business
A. Adopt Ordinance No. 1967, Amending Chapters 16, 17, and 19 of the Fontana Municipal Code to make sections more
intuitive and to incorporate current best practices.
25-0094

1. Read by title only and waive the further reading of section 16-17 to allow the sale and consumption of beer and alcohol incidental to the purpose of a permit obtained for a designated area in a public park under sections 17 -5 and 19-3 of the FMC with approvals, including that of the city manager, as it pertains to tourism, community, and cultural events.

2. Read by title only and waive the further reading of section 17-5 to amend the requirements and timeframes for permits for meetings, assemblies, rallies, demonstrations and parades consisting of 50 or more individuals on a public street, sidewalk or other public place within the city to grant the City an appropriate amount of time to receive and review applications and to include additional methods of service for applicants to receive notice of the City’s decision on such applications.

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9 City Council Meeting Regular Agenda March 25, 2025

3. Read by title only and waive the further reading of Chapter 19, sections 19-1, 19-2, 19-3, and 19-35 to update references to the Parks, Community and Human Service Commission; prohibit any tournament or the charge of admission fees or associated fees in any publicly maintained park; increase the threshold of the number of people required for a permit under the chapter; amend the reservation procedure to provide an indemnity provision and to increase the timeframes for reservation requests for permits under the chapter; amend the conditions for denial to further clarify such conditions for permits under the chapter; and to update the duties of the parks, community and human services commission to bring the municipal code current.

Fontana - Ordinance - Amendment 16-17-19 Parks
Community and Human Services.-c1.docx
Sec._16_17.___Public_consumption_of_intoxicant_and_pos
session_of_open_container_of_alcoholic_beverage_prohibit ed-BBKfinal.docx
Sec._17_5.___Meetings__demonstrations_and_parades.
-BBKfinal.docx
Chapter_19___parks_and_community_services_prohibited_
acts_special_permits - BBKfinal.docx
Sec._19_35.___parks_community_and_human_services_co
mmission_duties - BBKfinal.docx
Attachments:

B. Discussion and Possible Action Regarding Appointment to the Parks, Community, and Human Services Commission
for a two-year term
25-0127
CITY MANAGER COMMUNICATIONS:

A. City Manager Communications
ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports
ADJOURNMENT:

A. Adjournment
Adjourn to the next Regular City Council Meeting on April 8, 2025, at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California.

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10 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0130 Agenda Date: 3/25/2025
Agenda #: A. Category: Closed Session
Closed Session
Tuesday, March 25, 2025
1:00 P.M.

City Hall - Executive Conference Room
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Phillip W. Cothran., Council Member
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Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0128 Agenda Date: 3/25/2025
Agenda #: A. Category: Proclamation
Proclamations
Tuesday, March 25, 2025
2:00 P.M.

Grover W. Taylor Council Chambers
City Council
Acquanetta Warren, Mayor
Peter Garcia, Mayor Pro Tem
John Roberts, Council Member
Jesus “Jesse” Sandoval, Council Member
Phillip W. Cothran., Council Member
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Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0103 Agenda Date: 3/25/2025
Agenda #: A. Category: Special Presentation
Special Presentation
Tuesday, March 25, 2025
Council Chambers
City Council
Acquanetta Warren, Mayor
Phillip W. Cothran. Mayor Pro Tam
John Roberts, Council Member
Jesse “Jesus” Sandoval, Council Member
Peter Garcia, Council Member
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Agenda #: A. Category: Special Presentation
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14 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0132 Agenda Date: 3/25/2025
Agenda #: A. Category: Consent Calendar
FROM:

City Clerk
SUBJECT:

Approval of Minutes
RECOMMENDATION:

Approve the minutes of the March 11, 2025, Regular City Council Meeting.

COUNCIL GOALS:
· Create and maintain a dynamic team by supporting the decisions of the majority once made.
· Create and maintain a dynamic team by communicating Goals and Objectives to all commissions and employees.

DISCUSSION:

The City Council will consider approval of the minutes of the March 11, 2025, Regular City Council Meeting. The draft minutes are attached to this report for Council review and approval.

FISCAL IMPACT:

None.

MOTION:

Approve staff recommendation.

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City of Fontana

8353 Sierra Avenue
Fontana, CA 92335

Minutes

Tuesday, March 11, 2025

2:00 PM

Grover W. Taylor Council Chambers

City Council Meeting

Acquanetta Warren - Mayor
Peter A. Garcia - Mayor Pro Tem
John B. Roberts - Council Member
Jesus "Jesse" Sandoval - Council Member
Phillip Cothran - Council Member
Germaine Key - City Clerk
Janet Koehler-Brooks, City Treasurer

Page 2 of 6 ends

CALL TO ORDER/ROLL CALL:

A. 2:00 P.M. Call To Order/Roll Call:

The Regular Meeting of the Fontana City Council was held in the Grover W. Taylor Council Chambers, 8353 Sierra Avenue, Fontana, CA 92335, on Tuesday, March 11, 2025.

Mayor Pro Tem Garcia called the Regular City Council Meeting to order at 2:01 p.m.

ROLL CALL:

PRESENT: Mayor Pro Tem Garcia, Council Members Cothran, Roberts, and Sandoval.

City Treasurer Janet Koehler-Brooks and City Clerk Germaine Key were also present.

ABSENT: Mayor Warren

INVOCATION/PLEDGE OF ALLEGIANCE:

A. Invocation/Pledge of Allegiance:

The invocation was given by Council Member Roberts, followed by the pledge of allegiance led by Council Member Cothran.

PUBLIC COMMUNICATIONS:

A. Public Communications
There were no public communications.

CONSENT CALENDAR:

Prior to the motion, the following occurred:

• City Council Item I:

Council Member Sandoval requested to pull this item for discussion.

Deputy City Manager Phillip Burum presented the staff report.

Council Member Sandoval inquired whether the proposed memorial would impact the existing John F. Kennedy Memorial. Deputy City Manager Burum clarified that the John F. Kennedy Memorial would remain unaffected.

Council Member Sandoval expressed appreciation for the project and thanked Senator Eloise Gomez Reyes for her support and funding of the memorial.

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Council Member Cothran asked whether the proposed landscaping would align with the existing design. Deputy City Manager Burum explained that the project’s drought -tolerant landscaping would be integrated with the surrounding landscape, and the existing non-functional turf would be replaced.

A. Approval of Minutes 25-0100
Approve the minutes of the February 20, 2025, Special City Council Meeting, February 25, 2025, Regular City Council Meeting and the March 4, 2025, Special City Council Meeting.

B. Master Case No. 24-092; Miscellaneous Project No. 24-011: 25-0029 Review of the 2024 General Plan Annual Progress Report
Based on the information in the staff report, staff recommends that the City Council direct staff to send the 2024 General Plan Annual Progress Report to the Governor’s Office of Planning and Research (OPR) and the State Department of Housing Community Development (HCD).

C. Implementation of Classification and Compensation Study and 25-0046 Ratification of the 2024 - 2027 Memorandum of Understanding for the Fontana Police Benefit Association.

Adopt Resolution No. 2025-017, a resolution of the City Council of the City of Fontana, California, approving the Memorandum of Understanding and the updated salary table between the Fontana Police Benefit Association and the City to establish terms of employment.

D. Accept Donation from Good Earth Plumbing & Rooter (2024 25-0054 Festival of Winter)
Accept donation from Good Earth Plumbing & Rooter in the amount of $5,000 for use towards the 2024 Festival of Winter.

E. Final Acceptance of the Construction of the Sierra Avenue 25-0065 Widening Project between Foothill Boulevard and Baseline Avenue
Accept as complete the work performed by Los Angeles Engineering, Inc. for the construction of the Sierra Avenue Widening Project (Bid No.

SB-86-DE-22).

F. Final Acceptance of the Construction of the Public Works 25-0066 Concrete Maintenance Project (PW-24-133-SB)
Accept as complete the work performed by We R Builders, Inc. for the Public Works Concrete Maintenance Project (PW-24-133-SB) and approve the final construction amount of $370,389.30.

G. Final Acceptance for the Construction of the Miller Park Fence 25-0074 Installation Project (Bid No. DE-24-08-SB)
18

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Accept as complete the work performed by Dash Construction Company, Inc. for the construction of the Miller Park Fence Installation Project (Bid No.

DE-24-08-SB).

H. Acceptance of Fontana’s Downtown Revitalization Grant 25-0077

1. Accept grant funding from the U.S. Department of Housing and Urban Development in the amount of $850,000 for Fontana’s Downtown Revitalization.

I. Award a Construction Contract for the First Responders 25-0080 Memorial Monument Project (Bid No. DE-25-76-SB)

1. Award bid and authorize the City Manager to execute a Construction Contract with Jergensen Construction, Inc. for the construction of the First Responders Memorial Monument Project in the amount of $1,209,000.00, and authorize a contingency in the amount of $120,900.00 (Bid No.

DE-25-76-SB).

2. Authorize the City M anager to execute any and all utility agreements, utility easements and any related items on behalf of the City of Fontana for the First Responders Memorial Monument Project (Bid No. DE-25-76-SB).

J. Business License Compliance Program - Home-based 25-0083 Businesses
Authorize the one-time waiver of penalties and prior year business license tax for home-based businesses or individuals who are brought into compliance with City Code Chapter 15-36 through the Business License Compliance Program - Home-based Businesses.

K. Award Bid for Synthetic Turf Sports Field Maintenance Services 25-0085

1. A ward Bid (SP-25-46-PW) and authorize the City Manager to execute a contract with FieldTurf USA, Inc. in the amount of $124,800.00 annually for two (2) years with three (3) 1-year renewals for Synthetic Turf Sports Field Maintenance Services.

2. Approve and authorize the City Manager to execute any future amendments to the contract.

L. Acceptance of 2024 Older Adults Home Modification Grant 25-0090 Program

1. Accept grant funding from the U.S. Department of Housing and Urban Development in the amount of $2 million for the Older Adults Home Modification Grant Program (OAHMP).
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M. Acceptance of Healthy Homes Production Grant Program 25-0092

1. Accept grant funding from the U.S. Department of Housing and Urban Development in the amount of $1,500,000 for the Healthy Homes Production Grant Program.

CITY MANAGER COMMUNICATIONS:

A. City Manager Communications

City Manager Matthew Ballantyne had no comments.

ELECTED OFFICIALS COMMUNICATIONS/REPORTS:

A. Elected Officials Communications/Reports
City Clerk Key extended birthday wishes to her grandson on his 17th birthday.

City Treasurer Koehler -Brooks wished her grandson, Mateo Richard Brooks, a happy first birthday.

Council Member Cothran wished his son a happy fourth birthday and expressed appreciation to the Police Benefits Association for attending the meeting.

Council Member Roberts had no comments.

Council Member Sandoval offered condolences to the family of Ray Allard and provided an update on his attendance at the recent WELLS Conference in Anaheim.

Mayor Pro Tem Garcia annou nced that the meeting would be adjourned in memory of Engineer Ray Allard, his father-in-law Manuel Galaviz, and Marisela Carrillo Galaviz.

Council Member Sandoval noted that Ms. Galaviz was the mother of a Community Services Department employee.

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ADJOURNMENT:

A. Adjournment
Mayor Pro Tem G arcia and the City Council led a moment of silence in memory of the following individuals:

1.Ray Allard

2.Manuel Galaviz Ortega

3.Marisela Carrillo Galaviz

Mayor Pro Tem Garcia adjourned the meeting at 2:14 p.m. to the Regular City Council Meeting on Tuesday, March 25, 2025, at 2:00 p.m. in the Grover W. Taylor Council Chambers located at 8353 Sierra Avenue, Fontana, California.

_____________________
Christina Rudsell, CMC
Chief Deputy City Clerk

THE FOREGOING MINUTES WERE ADOPTED AND APPROVED BY THE FONTANA CITY COUNCIL ON MARCH 25, 2025.

_______________________
Germaine Key
City Clerk
21 City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0025 Agenda Date: 3/25/2025
Agenda #: B. Category: Consent Calendar
FROM:

Development Services
SUBJECT:

Purchase & Sale Agreement- Regional Homeless Navigation Center RECOMMENDATION:

1. Approve a Purchase & Sale Agreement for the purchase of building and associated land located at 11109 Jasmine Street, more specifically described as APN # 0238-111-53 in the amount of $11,664,510.

2. Authorize the City Manager to execute any documents necessary or appropriate to effectuate said approvals and/or agreement.

COUNCIL GOALS:
· Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by promoting diverse range of housing projects and levels of affordability.
· Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by address Homelessness through proactive programs, including the efforts of the COAST and MET teams.
· Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.

DISCUSSION:

The City of Fontana has identified Homelessness and Homeless prevention as a top priority. The building, if purchased, will serve as a Regional Homeless Navigation Center. The acquisition consists of a parcel approximately 35,347-square foot freestanding industrial building situated on approximately 1.65 acres within the Jasmine Industrial Park project.

The City and the Seller have negotiated a Purchase Agreement with the following proposed deal- points:
· The City of Fontana would acquire the property for the price of $11,664,510. · The City of Fontana and Seller, Jasmine Street, LLC, will equally split any/all escrow fees as appropriate.
· The City will have 90 days from the opening of escrow to complete its due diligence on the subject property to confirm the suitability and condition of the property for the city’s intended use.
· The City will have a ninety-day financing period to complete all wire-transfers and documents City of Fontana Printed on 3/19/2025Page 1 of 2
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necessary for the close of escrow after approval of the feasibility review. o The City is in the process of finalizing its due diligence on the agreed upon contingencies, including completing the appraisal of the property, Phase I environmental, and building inspection.

Approval of the Purchase Agreement and acquisition of the subject property is a crucial step in the City’s efforts to combat homelessness in the city.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is estimated to be $12,000,000 (including escrow costs, acquisition fees, and related expenses) and was included in the FY 24-25 2nd Quarter Budget Report in Org 60230000.8310.

MOTION:

Approve staff recommendation.

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ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, Cantor Fitzgerald & Co. (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

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All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 04/12/2022 | 06:32 Parties agreed to: Troy Lindstrom, Mark Kegans
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Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

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To withdraw your consent with Cantor Fitzgerald & Co.

To inform us that you no longer wish to receive future notices and disclosures in electronic format you may:
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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0079 Agenda Date: 3/25/2025
Agenda #: C. Category: Consent Calendar
FROM:

Finance
SUBJECT:

American Rescue Plan Act Update
RECOMMENDATION:

Receive update and approve revisions to the American Rescue Plan Act (ARPA) Expenditure Plan, including the leveraged projects.

COUNCIL GOALS:
· Operate in a businesslike manner by improving services through the effective use of technology.
· Practice sound fiscal management by producing timely and accurate financial information. · Practice sound fiscal management by living within our means while investing in the future. · Practice sound fiscal management by emphasizing capital formation. · Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.

DISCUSSION:

Background
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021, providing additional relief to address the continued impact of COVID-19 on the economy, public health, state and local governments, individuals, and businesses. ARPA funding of $1.9 trillion provided for $362 billion in flexible fiscal aid to state and local governments in America under the State & Local Fiscal Recovery Funds (SLFRF). The City of Fontana was allocated $50.3 million in ARPA SLFRF funds. The U.S.

Department of the Treasury issued an Interim Final Rule in May 2021, and the Final Rule in January 2022, to implement the Coronavirus State and Local Fiscal Recovery Funds established under ARPA.

On March 8, 2022, the City Council approved the original ARPA Expenditure Plan (Plan). On September 13, 2022, the City Council subsequently approved a revised Plan which properly categorized existing projects per the Final Rule and eliminated projects that were determined to be ineligible. As all projects were determined eligible in concept for ARPA funding, staff has worked City of Fontana Printed on 3/19/2025Page 1 of 5
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diligently with the City Attorney’s office and HdL ECONSolutions ensuring that all project details met ARPA Final Rule requirements. All projects have received a final legal determination as to their eligibility. An Updated ARPA plan is presented to Council as needed to ensure proper allocation of funds.

Current Plan
The current Plan reflects expenditures in four primary Federal Eligible Use Categories. As the U.S.

Department of Treasury (Treasury) continues to refine reporting requirements, the table below reflects the current budget in the updated categories per the Treasury reporting requirements.

Recommended Plan - Revisions
The revisions proposed for the current Plan budget reflect no change in total appropriation.

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Plan revisions being proposed with this item include adjustments to the following projects:
· Leveraged Project: Support Government Employment (hiring above the pre-pandemic baseline): Current allocation is $9.1 million and an increase of $735,325 million is recommended as a result of leveraging projects.
· Leveraged Project: Fontana 311: Project has been reevaluated and determined to use $54,090 less than anticipated. The project is recommended to be reduced by this amount. · Leveraged: The Homelessness Prevention Resources and Care Center is recommended to be increased by $581,430 due to additional expenditures being identified. · Leveraged: The Park Improvements project is being recommended to be reduced by $1,064,007 and will be leveraged by the General Fund. Required adjustments were included in the Mid-Year Budget Report
· Leveraged: The Administration budget is recommended to be reduced by $198,568 and will be leveraged by the General Fund. Required adjustments were included in the Mid-Year Budget Report.
· The Fiber to City Facilities had a correction of a $90 decrease in the budget.

Recommended Plan - Leveraged Projects
The original Plan as recommended by Council included $18.0 million of projects in the Revenue Loss category of which only had $10.0 million of available funding per the standard allowance in the Final Rule. As a result, the Revenue Loss category was over appropriated by $8.0 million and the projects in this category were not eligible under any other category. As such, $8.0 million of ARPA eligible projects needed to be identified in the General Fund and the funding for these projects switched to ARPA thus making available General Fund for the projects. These projects included the Police Department helicopter ($3.0 million) and various pavement rehabilitation projects ($5.0 million) which City of Fontana Printed on 3/19/2025Page 3 of 5
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will be funded through the General Fund as a result of the leveraged projects below which were previously funded by the General Fund and will now be funded through ARPA.

Additionally, two projects have been reduced in ARPA and will be funded by General Fund or a different source. As a result, there was an increase in the budget for the Support Government Employment project.

Leveraged Projects below:
· Support Government Employment - Hiring Above the Pre-Pandemic Baseline ($9,107,438):

Per the Treasury Final Rule, the City may hire above the pre-pandemic baseline and use SLFRF funds to pay for payroll and covered benefits associated with the recipient increasing its number of budgeted FTEs up to 7.5 percent above its pre-pandemic baseline. All costs associated with new positions approved by Council can be considered for this leveraged project, including by not limited to the new Police Department positions added in 2021-22 and 2022-23. This amount is being increased by $735,325 million to accommodate additional leveraged projects.
· Accela and Fontana 311 projects have been identified as eligible projects. These two projects have been reduced and have been reallocated to the Support Government Employment - Hiring Above the Pre-Pandemic Baseline leveraged project. · Homelessness Prevention Center and Park Improvements are recommenced to be reduced and leveraged for the amounts of $1.5 million, and $1.06 million respectively. Any required expenditures will be funded from a different source.

Recommended Plan Summary
The recommended Plan below reflects all changes discussed above:

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Plan Update
As of the last report, all Plan projects had been reviewed and based upon the scope of each project, deemed eligible by HdL and the City Attorney. Since the last report, all projects have been reviewed by City Attorney’s office in detail with the projects having been fully approved. As of December 31, 2024, $39.4 million has been expended. Staff is recommending the reallocation of any unused project balances to other approved projects in the interim reporting period. Attachment B provides a brief update on each project.

FISCAL IMPACT:

There is no net fiscal impact associated with the approval of this item. Approval of this item reallocates ARPA funding within the expenditure plan as detailed in Attachment A.

MOTION:

Adopt staff recommendation.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0087 Agenda Date: 3/25/2025
Agenda #: D. Category: Consent Calendar
FROM:

Finance
SUBJECT:

Amend Administrative Policy Purchasing 20-50
RECOMMENDATION:

Adopt Resolution 2025-018, of the City Council of the City of Fontana, amending Administrative Policy Section 20-50 (Purchasing Policies and Procedures Manual).

COUNCIL GOALS:
· Operate in a businesslike manner by correcting problems immediately. · Create and maintain a dynamic team by supporting the decisions of the majority once made. · Create and maintain a dynamic team by promoting stability and predictability by providing consistent policy direction.

DISCUSSION:

The City’s current purchasing practices are governed by both Fontana Municipal Code (FMC) and the Administrative Policy - Purchasing Section 20-50. As a best practice, finance and related policies should be periodically reviewed to ensure that the policies and practices employed are not only in compliance with applicable laws but also to minimize risk, to ensure that the policies mirror actual business practices, and ensure that the procurement of goods and services are conducted in an open and competitive environment.

The Purchasing Policy was last updated in December of 2022, and City staff have conducted a review and have identified areas that need to be updated based on current business practices and the California Public Contract Code (PCC) 22032 that was amended effective January 1, 2025.

Notable areas of to be amended include:
· Section 3.1.6 Exceptions - Established procurement of professional services and advise in financial, economic, account, legal or administrative matters. · Section 3.2.1 Public Works Projects - Increased the bid limit Pursuant to PCC 22032 from $60,000 to $75,000 negotiated contract and from $200,000 to $220,000 for informal bidding.

The proposed changes will improve the efficiency of the City’s purchasing processes by providing clear and detailed guidance to staff.

FISCAL IMPACT:

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No Fiscal Impact
MOTION:

Approve staff recommendation
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53 1 of 2

RESOLUTION NO. 2025-018

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA ,

CALIFORNIA AMENDING MULTIPLE SECTIONS OF THE PURCHASING POLICIES AND PROCEDURES MANUAL TO REFLECT THE CITY’S

CURRENT PURCHASING PROCEDURES AND TO ENSURE COMPLIANCE
WITH STATE LAW.

WHEREAS, the City Council of the City of Fontana (“City Council”) has adopted a Purchasing Policies and Procedurals Manual (“Purchasing Policy”) that outlines the rules and regulations governing the City of Fontana’s (“City”) purchasing operations; and

WHEREAS, the Purchasing Policy requires an update to reflect the City's current purchasing procedures and to ensure compliance with local, state, and federal laws.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fontana, California as follows:

Section 1. Recitals. The above recitals are true, correct and by this reference incorporated herein.

Section 2 . Adoption. City Council hereby adopts the amendment to the Purchasing Policy as detailed in Exhibit A that is attached hereto and incorporated herein by this reference.

Section 3. Effective Date. This Resolution shall become effective immediately upon its adoption.

Section 4. Severability. If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

Section 5. Certification. The City Clerk shall certify to the adoption of this Resolution.

Section 6. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Resolution is based are located at the City Clerk’s office located at 8353 Sierra Avenue, Fontana, CA 92335. The custodian of records is the City Clerk.

54 Resolution No. 2025-018
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APPROVED AND ADOPTED this 25th day of March 2025.

READ AND APPROVED AS TO LEGAL FORM:

________________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on the 25th day of March, 2025, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

________________________________
City Clerk of the City of Fontana

________________________________
Mayor of the City of Fontana

ATTEST:

________________________________
City Clerk
55 Purchasing Policies and
Procedures Manual

REVISED: March 25, 2025
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1.0 General Purchasing Policy

PURPOSE

The purpose of this policy is to provide the City of Fontana a means of assuring continuity and uniformity in its purchasing operation, and to define the authority for the purchasing function, and responsibilities for purchasing supplies, services, and equipment for the City.

This policy ensures that the City of Fontana ’s (the City) purchasing procedures and processes are in compliance with Fontana Municipal Code (FMC) – Chapter 10 - Article V. Purchasing, federal, state, and local laws, and it ensures appropriate stewardship of the City’s assets, integrity when acquiring goods and services, and accountability to its citizens.

POLICY

Purchases and contracts for goods and services made on behalf of the City shall be made in compliance with procurement laws and regulations, and with the highest ethical standards, including appropriate stewardship of the City’s resources when acquiring goods and services.

1.1 Approval of Purchases and Contracts for Goods, Services, and Public Works Projects

All purchases and contracts for goods and services are under the control and direction of the City Manager. The City Council, City Manager, Deputy City Manager, and Department Heads are authorized to bind the City to contractual agreements for Goods, Services, and Public Works Projects.

1.1.1 Delegation of Approval Authority

Pursuant to Resolution No. 2022 -035, t he Approval Authority applicable for the purchase of G oods, Services, and Public Works Projects shall be delegated as follows:

Award by City Manager. The City Manager may make purchases or contracts for Goods, Services, and Public Works Projects in an amount up to One Hundred Thousand ($100,000) Dollars. Contracts that exceed $100,000 are subject to review and approval by the City Council.

Award by Deputy City Manager. The Deputy City Manager may make purchases or contracts for Goods, Services, and Public Works Projects in an amount up to Fifty Thousand ($50,000) Dollars.

Award by Department Heads. Department Heads may make purchases or m a y m a k e p u r c h a s es o r c o n t r a c t s f o r G o o d s , S e r v i c e s. P u b l i c W o r k s P r o j e c t s i n a m o u n t up to Twenty-Five Thousand ($25,000) Dollars.

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The following chart outlines the respective Approval Authority limits as described in this Section 1.1.1:

Authorized Official

Limit
Department Head <$25,000.00
Deputy City Manager <$50,000.00
City Manager <$100,000.00
City Council >$100,000.00

1.1.2 Delegation of Authority for Purchase Orders

The Purchasing Manager has b e e n delegated authority to issue purchase orders for all purchases on forms approved by the Chief Financial Officer of the Department of Finance. Prior to the issuing a purchase order, the Purchasing Manager shall ensure that the requesting department has sufficient funds to purchase the goods and services and that the request has been approved in accordance with the purchasing approval authority above.

1.2 Procurement Law

Contracts for goods and services must comply with federal, state, and local laws. The primary governing authorities are determined by the source of funds being used, jurisdiction, and the governing body incorporated into the contract.

1.2.1 Municipal Contract Law

Cities have governing authority to enter contracts for goods and services to carry out its necessary functions, including those expressly granted and those implied by necessity. Cities also have specific statutory authority to contract for special services, including financial, economic, accounting, engineering, legal, and administrative functions.

Public Works Contracts are governed by the State of California. The law relating to Public Works Contract for the City is found primarily in the California Public Contract Code (PCC) and secondarily in the California Government Code (GC), Labor Code (LAB), and Civil Code (CIV).

The City’s contract templates, and standard terms and conditions incorporate all applicable statutory requirements from the State of California and the City’s Municipal Code. All terms and conditions are incorporated and binding for all contracts and purchase orders using City’s resources.

1.2.2 Government Grant Law

The primary governing authority for grants is the terms and conditions of the individual grant and the agency- specific provisions imposed by the awarding agency. Federal grants are governed by the Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200), also known as the Uniform Guidance. Contracts for goods and services using federal grants include various terms and conditions, including individual grant terms and conditions, program 58 1-4
provisions, agency-specific provisions, and the City’s terms and conditions. All levels of terms and conditions are incorporated and binding. However, when there is a conflict, the order of precedence determines which terms and conditions prevail. For more details regarding federal grants, see Section 6.0 - Federal Emergency and Grant Procurement Procedures.

The City’s contract templates, and Government Grant provisions incorporate all applicable statutory requirements from the federal government and the City’s Municipal Code. All terms and conditions are incorporated and binding for all contracts and purchase orders under federal grants.

1.3 Ethics

City Employees shall always uphold the highest level of ethical conduct in performing purchasing activities on behalf of the City. At a minimum, City Employees shall comply with the standards set forth in Fontana Administrative Policy 15-01 – Conflict of Ethics, the Political Reform Act, GC sections 8100 et seq., the Fair Political Practices Commission (FPPC) regulations, GC section 1090, and the Anti-Kickback Enforcement Act of 1986.

1.3.1 Personal Conflict of Interest

City Employees are prohibited from soliciting or accepting any gift, money, favor, entertainment, hospitality, loan or any other item of value for the performance of an act which the City Employee is expected or required to render in the course and scope of City employment, regardless of whether the item of value is for the City Employee or for someone else.

A non-exclusive list of examples of gratuities which, if received, would violate this policy is as follows:

 Beverages and/or meals;

 “Tips” whether in the form of cash or merchandise;

 Discounts on personal purchases for goods and/or services; and

 Gifts.

In general, if a City Employee would not have been offered a Gratuity but for the fact of being employed and serving in the capacity as a City Employee, then acceptance of any item of value is prohibited. Even if acceptance of a Gratuity is allowed under this policy, the City Employee shall comply with all reporting requirements under state and local law.

NOTE: Unsolicited gifts which cannot be reasonably returned (such as perishable foods, candy, or flowers) must be shared at large with all City Employees and the public or provided to a nonprofit charitable organization for use.

1.3.2 Disciplinary Action

Failure to obey the foregoing policies will result in appropriate disciplinary action and may result in discharge from City employment.

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ROLES AND RESPONSIBILITIES

City Manager
All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer

The Chief Financial Officer is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the competitive procurement process while ensuring appropriate stewardship of the City’s assets.

Department Heads

Department Heads are responsible for holding their City Employees accountable for the purchasing activities they make on behalf of the City and to ensure that they comply with all purchasing policies and procedures.

Purchasing Manager

The Purchasing Manager has the authority and responsibility to carry out his or her job responsibilities, including the enforcement of purchasing policies and any guidelines promulgated by the City Manager as determined by the Chief Financial Officer of the Finance Department and approved by the City Manager.

City Employees

City Employees are responsible for understanding their liabilities and obligations when they communicate with vendors and contractors. City Employees are prohibited from making promises to vendors and contractors and signing contracts for goods and services on behalf of the City unless they have expressed authority to do so in accordance with the City’s Municipal Code. In the event a City Employee negotiates terms and conditions of a contract for goods and services, the City Employee must consult with the Purchasing Manager prior to making any commitments to a vendor or contractor.

DEFINITIONS

Approval Authority – means the City Council, City Manager, Deputy City Manager, or Department Head with the authority to approve a particular contract or purchase.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Department Head – a director of a department within the City.

Ethics – moral principles governing or influencing conduct, including fairness, integrity, and transparency in the City’s purchasing activities.

General Services - mean furnishing of labor, time, or effort by a contractor for non-professional services as the City may, from time to time, find necessary and proper for the functioning of the City. Examples include, but are not limited to, janitorial, uniform cleaning, maintenance and other services which do not require any unique skill, special background or training.

Goods – mean any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.

Gratuity – anything of more than nominal value given in exchange for more than the market value of that which is provided.
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Maintenance Services– mean the furnishing of labor, time, or effort by a vendor, including but not limited to: as defined in PCC Section 22002, Maintenance is: (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) Minor repainting; (3) Resurfacing of streets and highways at less than one inch; (4) Landscape Maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; (5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Professional Services – as defined means the services of attorneys, architects, auditors, consultants, engineers, specialized printers or other individuals or firms possessing a high degree of professional, unique, specialized, or technical skill or expertise.

Public Project or Public Works Project – as defined in PCC Section 22002, a Public Project/Public Works Project is: (1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; (2) Painting or repainting of any publicly owned, leased, or operated facility; (3) In the case of a publicly owned utility system, “Public Project/Public Works Project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Public Works Contract – an agreement for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.

Services – means general services, maintenance services, or professional services.

Uniform Guidance – The Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) is Federal legislation that governs the Federal grant process from pre-award to post-award administration.

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2.0 Purchasing Goods and Services Policy

PURPOSE

This policy is to ensure that City Employees are purchasing Goods and Services in compliance with the City of Fontana’s (the City) policies and procedures, federal, state, and local laws, while obtaining favorable pricing and terms that are most advantageous to the City.

POLICY

This policy ensures that contracts and purchases for Goods and Services are in accordance with all requirements outlined in the Fontana Municipal Code (FMC) – Chapter 10 - Article V. Purchasing, California Public Contract Code (PCC), the California Uniform Public Construction Cost Accounting Act (CUPCAA), and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles Competitive Requirements (Uniform Guidance).

2.1 Purchasing Mechanisms

The following purchasing mechanisms must be used when purchasing Goods and Services on behalf of the City:

2.1.1 Purchase Order (PO)

The preferred mechanism to use to purchase Goods and one-time Services is by a Purchase Order (PO). To purchase by a PO, the Requestor from the department must submit a Requisition through the City’s Enterprise Resource Planning ( ERP) System. The Requestor must ensure that all supporting documentation is attached to the Requisition, including a quotation or proposal, and a Competitive Source Selection Justification or a Non-Competitive Source Selection Justification if applicable. The PO mechanism is used in the following instances:

 One-time purchases of various goods and services when required information about the purchase is known, including estimated costs, quantities, delivery schedules, and accounting distributions.

 Annual Purchase Orders are for a repetitive nature, or when an exact dollar amount is unknown for the Fiscal Year.

 Multi-Year Purchase Orders that are a firm price agreement with a vendor for specific commodities or services for a per-determine period of time. Purchasing, in cooperation with the using department, will identify the need for a multi -year purchase order after examining past usage. Multi -year purchase orders are established through competitive bidding depending on the dollar value. Multi-year purchase orders are usually based on specific items or services, definite or indefinite quantities to be ordered as needed, over the contract period.

 POs must be used to encumber funds once a contract has been executed. After a contract has been executed and created in ERP System, the department will submit a Requisition to create a PO that is linked to the contract to encumber the funds.
.
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2.1.2 Purchasing Card (P-Card)

Authorized Cardholders can purchase low-value goods and services, in accordance with the Purchasing-Card Policy 20-55 (Administrative Policy).

2.1.3 Request for Check/Pay Voucher

The Request for Check/Pay Voucher mechanism to purchase Goods and Services is only used for certain types of purchases for which a PO is not required, or competitive bidding is not required. Any purchase for goods and services submitted by the Request for Check/Pay Voucher must adhere to the comprehensive listing of allowable exemptions can be ac cessed City’s intranet of the Purchasing’s CityNet Page. One-time purchases of supplies, services, and equipment of $3,000 or less, require a Request for Check/Pay Voucher. FMC 10-145

2.1.4 Petty Cash

Petty Cash may only be used for unplanned purchases totaling amount of $100.00 for supplies, mileage advance or reimbursement, parking and must adhere to the Petty Cash Policy 20-16 (Administrative Policy).

2.2 Requisitions

Requisitions authorize the Purchasing Manager to make purchases on behalf of the requesting department. Prior to submitting a Requisition through the ERP System, the Requestor must ensure the following:

 Requisitions must include all relevant information for the purchase, including the vendor/vendor’s contact information (e.g., contact person, company name and address, email address, and phone number), an attached written quote or proposal from the vendor, and any other relevant documents that may be useful to the PurchasingDivision.); and

 Requisitions must include the appropriate attachments (e.g., staff reports, competitive quotes or proposals and a Competitive Source Selection Justification for competitive purchases, or a Non-Competitive Source Selection Justification for noncompetitive purchases) to meet the Competitive Threshold requirements for purchases that exceed $10,000 as outlined in Section 2.4 Competition.

2.2.1 Purchase Order Change Order

In the event the department wants to modify an existing PO that changes the price, quantity, period of performance, or terms and conditions, the Requestor must submit a Purchase Order Change Order (“Change Order”) through the ERP System . The Change Order will be reviewed , but not limited to price reasonableness, cardinal changes, and or other factors for the changes. The Requestor must ensure the following when submitting a Change Order:

 If the Change Order amount causes the total amount of the PO to exceed $10,000, then the Requestor will need to include the appropriate attachments, including a Non-Competitive Source Selection Justification to meet the Competitive Threshold requirements as outlined in Section 2.4 Competition;

 If the Change Order is for an existing PO that already exceeds $10,000, then at the Purchasing Manager’s discretion, may request a Non-Competitive Source Selection Justification that addresses the changes to the PO; and

 Change Order, as required, may include a revised quote or proposal that reflects the modifications of the contract or Purchase Order, including a revised statement of work (SOW), budget, quantities, prices, period of performance, or any other revised terms and conditions.

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2.3 Unauthorized Orders

Unauthorized Orders are those for which a Requisition is submitted after Goods or Services were received without a Purchase Order (e.g., reimbursements and invoice for receipt of goods and services without a PO). Unauthorized Orders present a significant risk to the City, including entering into contractual agreements without the appropriate terms and conditions incorporated into the contract or Purchase Order, increased risk and liability to the City, and limited recourse in the event of a dispute with a vendor. Unauthorized Orders are not acceptable. However, in the event of an emergency or a circumstance where an Unauthorized Order is unavoidable, the City Manager or designee will permit the transaction.

If an Unauthorized Order is submitted to Purchasing Division , the Requisition must comply with all the requirements outlined in Section 2.2. Requisitions and Section 2.4 Competition. In addition, reimbursements must have proof of payment documentation attached to the Requisition, including receipts, invoices, or credit card statements.

2.4 Competition

The City’s competitive purchasing requirements are to ensure that all contracts and purchases for goods and services are conducted in a manner that provides full and open competition consistent with FMC –Section 10 - Article V.

Purchasing , PCC, CUPCAA, and Uniform Guidance. The competitive purchasing requirements promote transparency, stimulate competition, prevent favoritism, and secure the best value of goods and services for the City.

This is further described in Section 3.0 Bidding Procedure.

2.5 Documentation

All non-public works purchases that exceed $10,000 require the following supporting documentation:

 Competitive Source Selection Justification o r Non-Competitive Source Selection Justification or

 Bid Tabulation for Evaluated Procurements must be included as a separate document which details the evaluation criteria.

All purchases that exceed $100,000 require the following supporting documentation:

 A Staff Report that has been approved by the City Council which justifies the rationale of the source selection (e.g., competitive, or noncompetitive).

2.6 Environmentally Preferable Purchases

The City of Fontana in order to comply with SB 1383 to purchase recycled content and environmentally preferred products whenever practicable, in accordance with the Administrative Policy 20-31.

2.7 Federal Grant Requirements

All purchases fully funded or partially funded by a Federal Grant require the following:

 Government Funded Grant Provisions incorporated and binding for all POs and contracts;

 Equipment Screening for all equipment purchases that exceed $10,000;

 Certification of Debarment is required for all purchases that are equal to or exceed $25,000;

 Certification of Anti-Lobbying is required for all purchases that equal or exceed $100,000;

 Independent Cost Estimate prior to issuing a solicitation for purchases that exceed $100,000; and 64 2-4

 Cost Price/Analysis for purchases that exceed $100,000 some form of analysis should be performed.

Purchase Threshold Federal Grants

> $10,000

• Equipment Screening

> $25,000

• Certification of Debarment

> $100,000
• Certification of Anti-Lobbying
• Independent Cost Estimate prior to issuing a solicitation  Cost/Price Analysis

2.8 Purchase of Consumable Items

The City allows the purchase of food, beverages and/or other related consumable goods for certain official city programs and events. However, the purchase of food, beverage and/or other consumable goods for events such as staff meetings, holidays, birthdays, or re tirements parties is generally prohibited unless: (1) the purchase is authorized by the City Manager or (2) the event falls within one of the following exceptions:
 City Council and Commission meetings

 Public Groundbreaking

 Outside interview panels for employment

 In-house training when employees are required to participate in the training program

 Inter-departmental meetings

 Community Services Department Programs

 Volunteer Work Programs

ROLES AND RESPONSIBLITIES

City Manager
All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer
The Chief Financial Officer is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the competitive procurement process while ensuring appropriate stewardship of the City’s assets.

Department Heads
Department Heads are responsible for holding their employees accountable for the purchasing activities they make on behalf of the City and to ensure that they comply with all purchasing policies and procedures.

Purchasing Manager
Purchasing Manager is responsible for ensuring that all contracts and purchases for goods and services are conducted in a manner that provides full and open competition, appropriate documentation, including source justifications, Cost/Price Analysis, and the rationale of purchasing decisions. In addition, Purchasing Manager shall 65 2-5
minimize the risk to City by assisting the Requestors by selecting the appropriate contract types, ensuring that vendors comply with our insurance requirements, and making prudent business decisions with the assistance of the City Attorney when vendors take exceptions to City’s terms and conditions.

Requestor
The Requestor must ensure that Requisitions are complete and accurate, including detailed itemized lines of the goods and services being purchased, correct funding sources, and correct expenditure types. Prior to submitting a Requisition to Purchasing, the Requestor is responsible for ensuring that all the appropriate supporting documentation is attached to the Requisition.

DEFINITIONS

As used in this policy:

Annual Purchase Order – a term contract or basic agreement between the City and a vendor to address recurring low-value purchases of goods and services for a specific period.

Bid Tabulation – a summary of the results of proposals or quotes submitted by suppliers to be evaluated based on a set of evaluation criteria.

California Uniform Public Construction Cost Accounting Act (CUPCAA) – the Uniform Public Construction Cost Accounting Act (Act), enacted in 1983 under Public Contract Code section 22000 et seq., allows local agencies to perform public project work of up to $75,000 with their own workforces if the agencies elect to follow the cost accounting procedures set forth in the Cost Accounting Policies and Procedures Manual by the California Uniform Construction Cost Accounting Commission.

Cardholders – an authorized individual who may make purchases for goods and services on behalf of the City with a P-Card.

City Council – the City Council serves as the legislative branch of City of Fontana Government and consists of a Mayor and four Council Members, all nonpartisan.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Competitive Source Selection Justification – a summary of all the quotes or proposals received for a specific requirement and the rationale behind the selection of a successful vendor.

Competitive Threshold – a dollar threshold that requires competition, either by Informal or Formal Competition.

Cost/Price Analysis – a review to determine and evaluate the cost elements of a vendor’s proposal to determine how well the proposed costs represent what the cost of the contract should be, including price reasonableness.

Factors to be considered in determining price reasonableness include commodity markets, price lists, price quotations, negotiated pricing, input costs, transaction costs, relational costs, and landed costs.

Certification of Compliance to Anti-Lobbying – a certificate required by Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part200) to ensure that vendors have not and will not lobby public officials with Federal funds.

Certification Regarding Debarment, Suspension, Proposed Debarment, and Other Responsibility Matters – a certificate required by Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) to ensure that vendors have not been suspended or debarred from doing business with the Federal Government.

Encumbrance – an amount of money that one is required to spend on a stated item or service in the future or the amount of money that remains on a Purchase Order after invoicing. 66 2-6

Enterprise Resource Planning System – the system through which the City manages its day-to-day business activities including accounting, payroll, purchasing and other financial activities.

Equipment Screening – a screening process of ensuring, either prior to an equipment purchase or concurrently with the equipment purchase, that the same or equivalent piece of equipment is not in excess or otherwise available to share.

Evaluated Procurement – an award based on evaluated criteria other than the lowest price.

Fiscal Year – a one-year period to report the City’s financial information.

Federal Grant – an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States.

Formal Competition – a formal solicitation, including Request for Information (RFI), Sealed Bids, Request for Qualifications (RFQ), and Request for Proposals (RFP) that is publicly advertised online.

General Services - mean furnishing of labor, time, or effort by a contractor for non -professional services as the City may, from time to time, find necessary and proper for the functioning of the City. Examples include, but are not limited to, janitorial, uniform cleaning, maintenance and other services which do not require any unique skill, special background or training.

Goods – mean any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.

Informal Competition – an informal solicitation to vendors either by email or online for a Request for Qualifications (RFQ), Quotes, or Request for Proposal (RFP).

Independent Cost Estimate – documentation, in an organized effort, to gather cost and pricing data for targeted markets. Market research is used to support the Independent Cost Estimate.

Micro-Purchase – a purchasing method that does not require competition for purchases that, in the aggregate, do not exceed $10,000.

Multi-Purchase Order – is a firm price agreement with a vendor for specific commodities or services for a pre - determined period of time.

Non-Competitive Source Selection Justification – a documented justification that underlines the reasons why only one source was solicited for a requirement, including that the item is only available through a single source, the purchase is being done through a cooperative purchasing agreement, the price obtained from the vendor is the same price that was offered to another public agency, the emergency for the requirement will not permit a delay from a competitive solicitation, it is a follow-on purchase, or after solicitation to a number of sources, competition was determined inadequate.

OMB Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) (Uniform Guidance) – Federal legislation that governs the Federal financial assistance (grants and cooperative agreements) process from pre-award to close-out. 67 2-7

Petty Cash – Amount of City cash, kept on hand, to pay for minor or incidental expenses more particular described in Petty Cash Policy 20-16 (Administrative Policy).

Purchasing Card (P-Card) – a City credit card issued to an individual by Purchasing Office to purchase Goods and Services on behalf of the City. P-Cards are also used for travel expenses.

Purchase Order (PO) – a commercial document and first official offer issued by Purchasing Office to a seller, indicating types, quantities, agreed prices for Goods and Services, and the terms and conditions of the offer.

Purchase Order Change Order or Change Order – a Purchase Order Change Order /Change Order in ERP System that is used by the department to initiate a modification to an existing Purchase Order.

Requisition – a document generated through the ERP System to notify the Purchasing D i v i s i o n of Goods and Services needed by a department. It is a formal authorization to purchase Goods and Services on behalf of the department.

Purchasing Office – a division within the Department of Finance responsible for ensuring compliance with the City’s purchasing policies and procedures.

Request for Check/Pay Voucher – a method to purchase Goods and Services when certain types of purchases do not require a formal Purchase Order or where negotiation adds no value. Request for Check/Pay Vouchers are used for reimbursements, per-diems, travel, and miscellaneous items.

Request for Information (“RFI”) - a solicitation document used to obtain general information about products, services, or suppliers. It is an information request, not binding on either the supplier or the City, and is often used prior to s pecific requisitions for items. The purpose of an RFI is to gain familiarity with the current market for a particular supply or service and to gather information in a formal, structured, and comparable way.

Request for Proposal (“RFP”) - is a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time and approach to work are important factors when evaluating proposals. RFPs are project specific and preparation requires general knowledge of the project. It is expected that interested parties would do a limited amount of work to develop a quality proposal.

Request for Qualification (“RFQ”) - is a document that solicits firms to submit information about their qualification and capabilities to perform the type of work associated with a proposed project. The preparation of an RFQ generally does not require specific project knowledge or scope. An RFQ may be used as a pre -qualification step to engaging a service provider. If an RFQ is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent RFP process. An RFQ will contain specific reference to selection criteria.

Requestor – a City Employee that submits Requisitions through ERP System to make purchases on behalf of the City.

Services – means general services, maintenance services, or professional services.

Staff Report – a report prepared by staff and presented to the City Council for approval of some action taken by the department.

Unauthorized Order – Unauthorized Orders are those for which a Requisition was submitted after a purchase for Goods and Services was placed with an individual’s own financial resources or without a Purchase Order.

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GOVERNMENT FUNDED GRANT PROVISIONS

A. If this Purchase Order/Contract is funded under a U.S. Government grant the following provisions as contained in Appendix II of the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; Final Rule (2 CFR Part 200, et al) are part of this Order. If any conflict arises between the provisions of these Government Funded Grant Provisions and any other provisions of this Purchase Order/Contract, the Government Funded Grant Provisions shall prevail.

1. Equal Employment Opportunity (E.O. 11246 as amended by E.O. 11375 and supplemented by 41 CFR part 60).

2. For construction with Federal funds: the Davis-Bacon Act (40 U.S.C. 3141-3148) as supplemented by 29 CFR part 5.

3. Copeland “Anti-Kickback” Act (40 U.S.C. 3145 and 29 CFR part 3).

4. Where applicable, the Contract Work Hours and Safety Standards Act (40 U.S.C. 3701- 3708) as supplemented by 29 CFR part 5.

5. For non-profit organizations and small business, patent rights will be governed by 37 CFR part 401,“Rights to Inventions Made by Non-Profit Organizations and Small Business Firms under Government Grants, Contracts and Cooperative Agreements.”

6. The Clean Air Act (42 U.S.C. 7401-7671q.) and the Federal Water Pollution Control Act (33 U.S.C. 1251-1387.), as amended.

7. Mandatory standards and policies relating to energy efficiency contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6201).

8. When applicable, this Order is subject to Debarment and Suspension (E.O.s 12549 and 12689) as provided in 2 CFR part 180.

9. The BYRD Anti-Lobbying Amendment (31 U. S. C. 1352): awards of $100,000.00 or more will file the required certification.

B. Other Provisions

1. The Federal awarding agency, the Comptroller General of the United States, or any of their duly authorized representatives, shall be provided with access to documents, papers and records directly pertinent to a specific program for audits, examinations, excerpts and transcriptions.
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3.0 Bidding Procedure

PURPOSE

This procedure is to ensure that City Employees are purchasing Goods and Services in compliance with the City of Fontana’s (the City) policies and procedures, federal, state, and local laws, while obtaining favorable pricing and terms that are most advantageous to the City.

PROCEDURE

This procedure ensures that contracts and purchases for goods and services are in compliance with all bidding requirements outlined in the Fontana Municipal Code ( F M C ) – Chapter 10 - A r t i c l e V . P u r c h a s i n g, California Public Contract Code (PCC), the California Uniform Public Construction Cost Accounting Act (CUPCAA), and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles competitive requirements (Uniform Guidance).

3.1 Purchasing Methods

The following purchasing methods must be used when acquiring Goods and Services on behalf of the City in accordance with the Purchasing Method and Cost Threshold Matrix:

3.1.1 Micro-Purchase

Purchasing by the Micro-Purchase method must be used when acquiring Goods and Services when the aggregate dollar amount does not exceed $10,000. To the extent practicable, the City shall distribute Micro- Purchases equitably among qualified vendors. Micro -Purchases may be awarded without soliciting competitive quotations or proposals if the City considers the price to be fair and reasonable.

3.1.2 Small Purchase

The Small Purchase method is an Informal Competition procedure for relatively simple and informal procurements of Goods, Services, property, and Public Projects. The Small Purchase method shall be used for Goods, Services, and property when the proposed purchase amount is between $10,000 to $100,000 at fair and reasonable price. The Small Purchase method shall be used for Public Projects that are between $75,000 and $220,000.

 Purchases of Goods and Services. If the Small Purchase method is used, the Requestor may informally solicit three (3) competitive vendors either written or via email request for quotations or proposals for goods and services. Once the Requestor solicits at least three quotations or proposals, a Competitive Source Selection Justification, documenting the rationale of the selection, must be filled out, and submitted with the Requisition for departmental and Purchasing Division approval.

 Maintenance. If the Small Purchase method is used for Maintenance contracts, then the appropriate solicitation type would be determined by the basis of selection. If the basis of selection is the lowest responsive and responsible bidder, then the Requestor shall use the same Informal Competition procedures as for Public Projects (Section 3.2.2 – Informal Competition Procedures for Public Projects (contracts that exceed $75,000 but less than or equal to $220,000). If the basis of selection is based on an Evaluated Procurement, 70 3-2
then the Requestor may informally solicit three (3) competitive vendors either written or via email request for quotations or proposals for such Maintenance services.

 Public Projects. If the Small Purchase method is used for Public Projects, Informal Competition procedures shall be used in accordance with CUPCAA and Section 3.2.2.

3.1.3 Sealed Bid

The Sealed Bid method is a formal advertisement online that is publicly solicited, and a firm fixed-price contract is awarded to the responsive and responsible bidder whose bid, conforms with all the material terms and conditions of the Invitation for Bid (IFB) and is the lowest price. This method must be used for all Public Projects that exceed $220,000. This method should also be used for Goods that exceed $100,000 for such purchases that cannot be used for the Competitive Proposal or Noncompetitive Proposal method.

 Conditions for Sealed Bid Method. The following conditions should be present for the Sealed Bid method to be feasible:

1. A complete, adequate, and realistic specification or purchase description is available;

2. Two or more responsible bidders are willing and able to compete effectively; and

3. The purchase lends itself to a firm fixed-price contract and the selection of the successful bidder can be made based on price.

 Requirements for Sealed Bid Method. The following requirements shall be used for the Sealed Bid method:

1. All IFBs for Public Works Projects must use Formal Competition procedures in accordance with CUPCAA and Section 3.2.3 Formal Competition Procedures for Public Projects (contracts that exceed $220,000);

2. An Independent Cost Estimate or Engineer’s Estimate must be developed prior to issuing the IFB;

3. IFBs must be solicited from an adequate number of known bidders, providing sufficient response time prior to the date set for opening the bids;

4. The IFBs, which include any specifications and pertinent attachments, must define the items or services for the bidder to properly respond;

5. All bids will be opened at the time and place prescribed in the IFB whether opened publicly at the City or opened electronically on the city’s online bid system;

6. A firm fixed-price contract award will be made in writing to the lowest responsive and responsible bidder; and

7. Any or all bids may be rejected if there is a sound documented reason.

8. City Council shall award sealed bids.

3.1.4 Sealed Proposal

The Sealed Proposal method is a formal advertisement online, Request for Proposal (RFP), that is publicly solicited for Services, , to award either a firm fixed-price, cost-reimbursement, or time-and-materials type contract when the source selection is based on an Evaluated Procurement. The Sealed Proposal method must be used for all purchases exceeding $100,000.
 Requirements for Sealed Proposal Method. The following requirements shall be used for the Sealed Proposal method:
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1. RFPs must be publicized online and identify all evaluation factors and their relative importance. Any response to publicized RFPs must be considered to the maximum extent practical;

2. Proposals must be solicited from an adequate number of qualified vendors;

3. An Independent Cost Estimate must be used for all purchases that exceed $100,000;

4. An Evaluation Committee must be established for all purchases that exceed $100,000 of at least three individuals. The Evaluation Committee must have a written method for conducting technical evaluations of the proposals received and for selecting the successful vendor;

5. Contracts must be awarded to the responsible vendor whose proposal is most advantageous to the City, with price and other factors considered; and

6. The City may use the Qualified Proposal method for Qualifications-Based Selection (QBS) of Architectural/Engineering (A/E) Professional Services whereby vendors’ qualifications are evaluated and the most qualified vendor is selected, subject to negotiation of a fair and reasonable price. The method, where price is not used as a selection factor, can only be used in procurement of A/E Professional Services. QBS cannot be used to purchase other types of services through A/E vendors as a potential source to perform the proposed service.

7. City Council shall award sealed proposals.

3.1.5 Non-Competitive Proposal

The Non-Competitive Proposal method may be used only when one or more of the following circumstances apply:

 Single Source/Sole Source. No competitive advantage would be gained from competitive pricing, such as when equipment, goods, materials, supplies, personal property, or services are unique and are only available from one source;

 Cooperative Purchasing Agreement. The product or service required is being purchased under a cooperative purchasing agreement;

 Same Price Purchased by Another Public Agency. The product or service required was awarded a bid by another public agency that has purchasing procedures substantially similar to those that the City would have been required to use, and the vendor offers the same or better price(s) to the City that it offered to the other agency;

 Unique Services. Services from Attorneys, Entertainers, Music Artists, Amusement Party Rentals, Medical Professionals, Storage Facilities, Class Instructors, Counseling, and Motivational Speakers.

 Emergency. The product or service required is due to an emergency, determined by the City Manager, which could not have been anticipated and critical need precludes any form of competition. (Purchases more than $100,000 must be presented at the next regular City Council meeting for ratification by the City Council. Please attach supporting documentation and approval from City Manager); and

 Bidding impractical. When the City Council determines by that bidding would be impractical, inefficient, or otherwise not in the best interest of the City, provided that the City Council shall state the basis for its determination in the resolution.

 Budgeted non-commodity items. Budgeted non-commodity items such as debt service payments, deposits, dues, insurance premiums, legal advertising, memberships, publications, self-insurance claim payments, benefits services provider, seminar registration, subscriptions and travel expenses.

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 Real property. Real property purchases and leases, utility services and related charges, work or services performed by another public agency.

 Other Circumstances. The following circumstances permit the use of the Non-Competitive Proposal method and shall be documented in the Non-Competitive Source Selection Justification:

1. A purchase that is a follow-on procurement, where the non-competitive purchase is placed with an incumbent vendor, either by a separate new contract or by a supplemental contract, to continue or augment a City program to maintain continuity of that program, where such placement was necessitated by prior procurement decisions;

2. A purchase under a grant where the awarding agency expressly authorizes the Non-competitive Proposal method in response to a written request from the City;

3. After solicitation of several vendors, competition is determined inadequate;

4. When the Design-Build project delivery method is used; and

5. For renewable energy and energy efficiency projects.

3.1.6 Exceptions

Competitive bidding is not required for procurement of professional services that advise in financial or legal matters if such persons are specially trained, experienced, and competent to perform the professional services required. Such services often:

1. Require specialized expertise and professional judgment; and

2. Are based on qualifications, reputation, and experience.

In these instances, the City may proceed with direct negotiations for these services.

3.2 Bidding Procedures for Public Projects

The following bidding procedures apply to all Public Projects and are in compliance with PCC, CUPCAA, and Uniform Guidance.

3.2.1 Public Works Projects $75,000 or less

Public Projects with an estimated cost of $75,000 or less may be performed by City Employees by force ac- count or else may be awarded by negotiated contract or by purchase order without competitive bidding.

3.2.2 Informal Competition Procedures for Public Projects (contracts that exceed $75,000 but less than or equal to $220,000)

Public Projects that exceed $75,000 but less than or equal to $220,000 shall be solicited in accordance with the CUPCAA Cost Accounting Policies and Procedures Manual, including the following:

1. IFBs are to be sent via online bid system to the trade journals specified by the Commission:

The IFB must be published in each of the following two trade journals:

73 3-5

The IFB must be published in at least two of the following three trade journals:

2. The IFB must be sent ten (10) days before the bids are due;

3. Bidders must send all required bid documents, including all applicable certifications and Bid Bonds; and

4. The award must go to the lowest responsive and responsible bidder.

3.2.3 Formal Competition Procedures for Public Projects (contracts that exceed $220,000)

Public Projects that exceed $220,000 shall be solicited in accordance with the CUPCAA Cost Accounting Policies and Procedures Manual, including the following:

1. IFBs are prepared with general terms with a time and place to submit bids;

2. IFBs must be published at least 14 calendar days before the date of opening the bids in a newspaper printed and published in the jurisdiction of the City.; and

3. IFBs must be sent electronically to all construction trade journals specified by the Commission pursuant to PCC Section 22036 at least 15 calendar days before the date of opening the bids.

3.3 Surety Bond Requirements

Surety Bonds, including Bid Bonds, Performance Bonds, and Payment Bonds are established to protect the best interests of the City. All Surety Bond requirements must be stated in all solicitations, if required, and the City, at its discretion, may waive the requirement for Surety Bonds subject to compliance with state and federal laws.

3.3.1 Public Projects

Construction Bidboard (eBidboard)
11662 El Camino Real
San Diego, CA 92130
Phone: 800-479-5314
E-mail: [email protected]
Website: www.ebidboard.com
Dodge Data & Analytics
830 Third Avenue, 6th Floor
New York, NY 10022 Phone:
877-784-9556
E-mail: [email protected]
Website: www.construction.com
Southern California Builders Association
732 N. Diamond Bar Blvd, @224 Diamond
Bar, CA 91765
Phone: 909-396-1451
E-mail: [email protected]
Website: www.socalbuilders.org
BidAmerica
41085 Elm Street
Murrieta, CA 92562
Phone: 909-677-4819
E-mail: [email protected]
Website: www.bidamerica.com
Associated General Contractors of
America
San Diego Chapter, Inc.
6212 Ferris Square
San Diego, CA 92121
Phone : 858-558-7444
E-mail : [email protected]
Website : www.agcsd.org
74 3-6
All Public Projects that exceed $75,000 require the following Surety Bonds:

1. Bid Bond equal to ten percent (10%) of the bid price;

2. Performance Bond equal to one hundred percent (100%) of the bid price; and

3. Payment Bond equal to one hundred percent (100%) of the bid price.

75 3-7

3.3.2 Non-Public Projects

Surety Bonds may be required for Non-Public Projects as determined by the City Manager, City Attorney, Risk Manager and/or the Department Head. All Maintenance contracts that exceed $25,000 may require the following Surety Bonds:

1. Bid Bond equal to ten percent (10%) of the bid price (The Bid Bond only applies if the basis of selection is the lowest responsive and responsible bidder by using the Sealed Bid method. The Bid Bond would not be required if the basis of selection is based on an Evaluated Procurement by using the Competitive Proposal or Non-Competitive Proposal methods);

2. Performance Bond equal to one hundred percent (100%) of the proposed price; and

3. Payment Bond equal to one hundred percent (100%) of the proposed price.

3.4 Licensing

3.4.1 City Business License Requirements

All vendors that perform Services, or Public Project work are required to obtain a City Business License upon award of a contract if the following applies:

1. The vendor has a place of business in the City;

2. The vendor will perform services within the City; or

3. The vendor performs services with other businesses or customers within the City;

3.4.2 Contractor License Requirements

 Solicitations and Contracts. All solicitations and plans for Public Projects or Maintenance Services (if applicable) must specify the classification of the contractor’s license requirements. The vendors must include their license numbers in the construction contract, subcontracts, solicitations for subcontracts, and advertisements for bids.

 Failure to Have Contractor’s License. A bid submitted by a vendor for a Public Project who is not properly licensed must be considered nonresponsive and be rejected by the City. However, if a bid submitted by a vendor is not properly licensed for contracts funded fully or partially by a federal agency, the bid does not become invalid, but the vendor must be properly licensed at the time the contract is awarded.

 Verification of Contractor’s License. Except for contracts fully or partially funded by a federal agency, the City must verify that the contractor was properly licensed at the time it submitted its bid, before awarding a contract or before issuing a purchase order.

3.5 Local Business Preference

Businesses within the City may take advantage of the City’s local business preference for City contracts in accordance with FMC 10-151. The local business preference in awarding contracts does not apply to Public Projects, emergencies, or contracts that are funded by a federal award.

3.5.1 Qualified Local Businesses

To be a Qualified Local Business the vendor must satisfies the following:

1. It has maintained its primary office, distribution point or place of business within the City;

2. It has secured all necessary licenses to conduct business in the City and it has paid all fees and taxes 76 3-8
imposed by the City;

3. It meets all other qualifications required to perform the contract for which its bid has been submitted.

ROLES AND RESPONSIBILITIES

City Manager

All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer

The Chief Financial Officer of Finance is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the competitive procurement process while ensuring appropriate stewardship of the City’s assets.

Department Heads

Purchasing Manager

Purchasing Manager is responsible for ensuring that all solicitations for goods and services are conducted in a manner that provides full and open competition; assisting Department Heads and Requestors with selecting the appropriate solicitation types; and facilitating the administration of solicitations and contracts for goods and services.

Requestor

The Requestor must ensure to provide the Purchasing Division with detailed information regarding the solicitation within a reasonable time prior to advertising. The Requestor shall include detailed information, including the name of the project, the due date of the solicitation, project duration or contract period, any required licenses or certifications, a detailed scope of work, a list of detailed items or equipment, and detailed specifications and requirements.

DEFINITIONS
As used in this procedure:

Bid Bond – a Surety Bond issued by a vendor to the City, to provide guarantee, that the lowest responsive and responsible bidder will undertake the contract under the terms and conditions at which the vendor submitted its bid.

California Public Contract Code (PCC) – State of California Statutes that clarify laws regarding the public competitive bidding requirements to eliminate favoritism, fraud, and corruption in the awarding of public contracts.

California Uniform Public Construction Cost Accounting Act (CUPCAA) – The Uniform Public Construction Cost Accounting Act (Act), enacted in 1983 under Public Contract Code section 22000 et seq., allows local agencies to perform Public Project work of up to $75,000 with their own workforces if the agencies elect to follow the cost accounting procedures set forth in the Cost Accounting Policies and Procedures Manual by the California Uniform Construction Cost Accounting Commission.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff. 77 3-9

Sealed Proposal – a purchasing method by Request for Proposals (RFP) (publicized online, identify all evaluation factors, etc.) from an adequate number of qualified sources with a written method for conducting technical evaluations and for selecting recipients; qualifications-based procurement for architectural/engineering services and professional service agreements.

Competitive Source Selection Justification – a summary of all the quotes or proposals received for a specific requirement and the rationale behind the selection of a successful vendor.

Design-Build – a project delivery method used in the construction industry where the City would solicit a Design- Build Team, which consists of a general contractor that will provide construction management and construction for a project that subcontracts an architectural/engineering firm to perform the design portion of the project.

Evaluated Procurement – An award based on evaluated criteria other than the lowest price.

Formal Competition – A formal solicitation, including Request for Information (RFI), Invitation for Bids (IFB), Request for Qualifications (RFQ), and Request for Proposals (RFP) that is publicly advertised.

General Services - mean furnishing of labor, time, or effort by a contractor for non -professional services as the City may, from time to time, find necessary and proper for the functioning of the City. Examples include, but are not limited to, janitorial, uniform cleaning, maintenance and other services which do not require any unique skill, special background or training.

Goods – mean any and all supplies, materials, articles, equipment, apparatus, vehicles, things, or property, other than real property, furnished to be used by the City.

Informal Competition – An informal solicitation to vendors either written or by email for a Quote, Request for Qualifications (RFQ) or Request for Proposal (RFP).

Independent Cost Estimate – Documentation, in an organized effort, to gather cost and pricing data for targeted markets. Market research is used to support the Independent Cost Estimate.

Instructional Services –services provided by an individual with the necessary credentials to teach specific classes to the City of Fontana residents.

Local Business Preference Application – a City application form for vendors to participate in the local business preference program to submit a Preference Bid.

Maintenance Services – mean the furnishing of labor, time, or effort by a vendor, including but not limited to: (1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes; (2) Minor repainting; (3) Resurfacing of streets and highways at less than one inch; (4) Landscape Maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems; (5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Micro-Purchase – a purchasing method that does not require competition for purchases that, in the aggregate, do not exceed $10,000.

Non-Competitive Proposal – a purchasing method by soliciting only one source and may be used only when one or more of the following circumstances apply: (1) Single or sole source; (2) Cooperative purchasing agreement; (3) Same price purchased by another public agency for the same product or service; (4) Emergency determined by the City Manager; and (5) Other reasons that can be justified depending upon the nature of the purchase.

Non-Competitive Source Selection Justification – A documented justification that underlines the reasons why only one source was solicited for a requirement, including that the item is only available through a single source, the 78 3-10
purchase is being done through a cooperative purchasing agreement, the price obtained from the vendor is the same price that was offered to another public agency, the emergency for the requirement will not permit a delay from a competitive solicitation, it is a follow-on purchase, or after solicitation to a number of sources, competition was determined inadequate.

Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) (Uniform Guidance) – Federal legislation that governs the federal financial assistance (grants and cooperative agreements) process from pre-award to close-out.

Payment Bond – a Surety Bond issued by a vendor to the City, to provide guarantee, that its subcontractors and material suppliers on a project will be paid, including labor and material bonds.

Performance Bond – a Surety Bond issued by a vendor to the City, to provide guarantee, that the vendor will complete a project that is acceptable to the City.

Online Bid System – a software/license package used by the City that includes a comprehensive e-procurement tool to facilitate the solicitation and contracting process for the City.

Preference Bid – the amount of the bid computed after reducing the original bid by a factor equal to as much as five percent (1%) of the original bid amount.

Purchasing Method and Cost Threshold Matrix – a guide created to help City Employees with their purchasing and contracting needs for goods and services.

Qualifications-Based Selection (QBS) – a basis of a competitive selection of architectural and engineering services under which the highest qualified professional or firm is selected based on qualifications, including knowledge, skill, experience, and other project-specific factors, rather than solely on price.

Qualified Local Business – a business which applies for local business preference and satisfies all requirements.

Requestor – a City Employee that submits Requisitions through Munis to make purchases on behalf of the City.

Request for Information (“RFI”) - a solicitation document used to obtain general information about products, services, or suppliers. It is an information request, not binding on either the supplier o r the City, and is often used prior to specific requisitions for items. The purpose of an RFI is to gain familiarity with the current market for a particular supply or service and to gather information in a formal, structured, and comparable way.

Request for Qualification (“RFQ”) - is a document that solicits firms to submit information about their qualification and capabilities to perform the type of work associated with a proposed project. The preparation of an RFQ generally 79 3-11
does not require specific project knowledge or scope. An RFQ may be used as a pre -qualification step to engaging a service provider. If an RFQ is required, only those candidates who successfully respond to it and meet the qualification criteria will be included in the subsequent RFP process. An RFQ will contain specific reference to selection criteria.

Sealed Bid – a purchasing method by Sealed Bids (formal advertising). Bids are publicly solicited, and a firm fixed- price contract (lump sum or unit price) is awarded to the lowest responsible bidder whose bid conforms with all the material terms and conditions of the Invitation for Bid (IFB).

Services – means general services, maintenance services, or professional services.

Small Purchase – a purchasing method that is simple and informal that requires competition, including written price or rate quotations from at least 3 sources.

Surety Bond – a Surety Bond serves the purpose of guaranteeing the vendor’s performance of a contract for a Public Project

80 Purchasing Method and Cost Threshold Matrix

PURCHASING METHOD NON-PUBLIC WORKS PUBLIC WORKS
Micro-Purchase ≤$10,000 ≤$75,000
Small Purchase Use when between $10,000 to $100,000 Use when between $75,000 to $220,000 Sealed Bid (IFB) Use when greater than $100,000 Use when greater than $220,000 Sealed Proposal/Qualification (RFP/RFQ) Use when greater than $100,000 Does not apply to Public Projects Non-Competitive Proposal Use when greater than $10,000 Only use for Public Project emergencies Micro-Purchase
 a purchasing method that does not require competition for purchases that, in the aggregate, do not exceed $10,000  required by the Federal Acquisition Regulation (FAR) and Office of Management and Budget (OMB) Uniform Guidance for purchases less than the Micro-Purchase Threshold (MPT) (currently set at $10,000)

Small Purchase
 a purchasing method that is simple and informal that requires competition, including written price or rate quotations from at least 3 sources or provide justification  required by FAR and OMB Uniform Guidance for purchases that exceed the MPT but are less than the Simplified Acquisition Threshold (SAT) (currently set at $250,000)

Sealed Bid
 purchasing by Sealed Bids (formal advertising online / Public Projects online and newspaper). Bids are publicly solicited, and a firm fixed-price contract (lump sum or unit price) is awarded to the lowest responsible bidder whose bid conforms with all the material terms and conditions of the Invitation for Bid (IFB).

Sealed Proposal/Qualification
 a purchasing method by Request for Proposals/Qualifications (RFP/RFQ) (publicized online, identify all evaluation factors, etc.) from an adequate number of qualified sources with a written method for conducting technical evaluations and for selecting recipients; qualifications may be-based procurement for architectural/engineering services and professional service agreements.

Noncompetitive Proposal
 purchasing method by soliciting only one source and may be used only when one or more of the following circumstances apply:
o single or sole source
o cooperative purchasing agreement
o same price purchased by another public agency for the same product or service o entertainer, music artists, class instructor, counseling, and motivational speaker o emergency determined by the City Manager

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4-1

4.0 Prevailing Wages Policy

PURPOSE

This policy is to provide guidance to City Employees to ensure that the City of Fontana (the City) is compliant with all federal, state, and local Prevailing Wage Laws.

POLICY

This policy ensures that contracts and purchases for goods and services are compliant with all Prevailing Wage Laws in accordance with California Public Contract Code (PCC), California Uniform Public Construction Cost Accounting Act (CUPCAA), California Labor Code (LAB), and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles competitive requirements (Uniform Guidance).

4.1 General Requirements

The State labor law requires payment of Prevailing Wages on “Public Works” contracts that exceed $1,000. The LAB defines “Public Works” differently than the PCC and CUPCAA. There may be circumstances in which public bidding or other statutory Public Works requirements are not required but payment of Prevailing Wages is required.

Regardless if a Public Works contract is publicly solicited or not, the City’s contracts require all contractors and its subcontractors to pay Prevailing Wages and maintain certified payroll records evidencing such payment of Prevailing Wages.

4.1.1 Bidding

All contractors and subcontractors must be registered with the California Department of Industrial Relations (DIR) before bidding on, being listed on a bid for, or performing any work on a Public Works contract. If a contractor and its subcontractors are not registered with the DIR when the prime contractor submits its bid, then the City must reject the bid as nonresponsive. The DIR registration requirement does not apply to the following:

1. A Public Works contract of $25,000 or less when the work is for construction, alteration, demolition, installation, or repair work; or

2. Work performed on a Public Works contract of $15,000 or less when the contract is for Maintenance.

4.1.2 Awarding

The City must provide notice to DIR within thirty (30) days of award and failure to do so will result in a civil penalty of $100 per day, not to exceed $10,000. The City must register public works projects with DIR within 3 days of awarding the contract for the following Public Works contracts:
82 4-2

1. A Public Works contract of $25,000 or more when the work is for construction, alteration, demolition, installation, or repair work; or

2. Work performed on a Public Works contract of $15,000 or more when the contract is for Maintenance.

4.2 Applicability of Prevailing Wages

Public and private projects that are paid for in whole or in part out of public funds are subject to Prevailing Wages.

Prevailing Wages do not apply to work performed by the City’s employees with its on forces. Since the definition of “Public Works” is very broad, the Prevailing Wage Decision Tree and the following should assist City Employees with determining the applicability of Prevailing Wages.

4.2.1 “Public Works”

As defined in LAB, Public Works includes the following:

1. Construction, alteration, demolition, installation, repair, or maintenance work done under contract and paid for in whole or in part out of public funds, and tree removal work done in the execution of any such work (construction includes work performed during the design and preconstruction phases of construction, including but not limited to inspection and land surveyors’ work, as well as post- construction phases of construction, including but not limited to all cleanup work at the jobsite);

2. Work done for certain special districts (e.g., irrigation, utility, reclamation, and improvement districts);

3. Street, sewer, or other improvement work done under the direction and supervision or by the authority of any charter or general law city;

4. The laying of carpet paid for out of public funds;

5. Public transportation demonstration projects;

6. Hauling refuse from a Public Works site to an outside disposal location;

7. Hauling and delivery of ready-mixed concrete to carry out a Public Works contract; and

8. Maintenance which is defined as the following:

• Routine, recurring and usual work for the preservation, protection and keeping of any publicly owned or publicly operated facility (plant, building, structure, ground facility, utility system or any real property) for its intended purposes in a safe and continually usable condition for which it has been designed, improved, constructed, altered or repaired.

• Carpentry, electrical, plumbing, glazing, touchup painting, and other craft work designed to preserve the publicly owned or publicly operated facility in a safe, efficient and continuously usable condition for which it was intended, including repairs, cleaning and other operations on machinery and other equipment permanently attached to the building or realty as fixtures.

• Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and services of irrigation and sprinkler systems.

Exceptions to the “Public Works” definition which are excluded from Prevailing Wages are the following:

1. Janitorial or custodial services of a routine, recurring or usual nature; 83 4-3

2. Protection of the sort provided by guards, watchmen, or other security forces; and

3. Landscape maintenance work by “sheltered workshops.”

4.2.2 Paid in Whole or Part with Public Funds

Prevailing Wages may apply to projects done under contract, even otherwise private projects, when the City pays money or its equivalent, performs construction work, transfers assets for less than their market price, pays project costs (such as bond costs), makes credits, reduces or waives fees, or permits repayment on a contingent basis. The definition of paid for in whole or in part out of public funds excludes certain construction or rehabilitation of affordable housing units for low- or moderate-income people. As defined in LAB, “paid for in whole or in part out of public funds” includes the following:

1. Payment of money or the equivalent by a public agency to or on behalf of the Public Works contractor, subcontractor, or developer;

2. Performance of construction work in execution of the project;

3. Transfer of an asset of value for less than the fair market price;

4. Fees, costs, rents, insurance or bond premiums, loans, interest rates, or other obligations normally required in the execution of the contract that are paid, reduced, charged at less than fair market value, waived, or forgiven;

5. Money loaned by the state to be repaid on a contingent basis; or

6. Credits that are applied against repayment obligations.

4.2.3 Exemptions

An exemption from Prevailing Wages is for the following circumstances:

1. Private residential projects on private property that are not built according to an agreement with the City or any other public agency;

2. When the City requires a private developer to perform construction, alteration, demolition, installation, or repair work on a Public Work of improvement as a condition of regulatory approval of an otherwise private project, and the City contributes no more money or its equivalent than required to perform the public improvement work, and the City maintains no proprietary interest in the overall project, Prevailing Wage requirements apply only to the public improvement work;

3. Public agency reimbursements to private developers for costs normally allowed by the public, or direct or indirect public subsidies to a private development project that are de minimis in the context of the project, do not in themselves make an otherwise private development project subject of Prevailing Wages; and

4. Construction or rehabilitation of privately owned residential projects that meet certain specified conditions are also exempt from Prevailing Wages.

4.3 Federal Requirements and Davis-Bacon Act

In accordance with the Uniform Guidance, all construction contracts awarded by the City as a Prime Recipient or a Subrecipient of more than $2,000 must include a provision for compliance with the Davis-Bacon Act (40 USC 3141 et seq.), and as supplemented by Department of Labor regulations. (29 CFR pt 5). .
84 4-4

4.4 Conflicting Provisions

The City is not exempt from complying with existing State Public Works requirements when expending federal funds. However, unless a federal requirement conflicts with a state requirement, the City will be required to comply with both requirements. For example:

1. If a contract is subject to both the Davis-Bacon Act and State Prevailing Wage Laws, then the contractor will be required to pay the higher of the two wages. However, the Davis-Bacon Act might not apply to a particular federally funded contract, but the City will still be required to comply with State Prevailing Wage Laws.

ROLES AND RESPONSIBILITIES

City Manager

All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer

The Chief Financial Officer is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the procurement process while ensuring appropriate stewardship of the City’s assets.

Department Heads

Department Heads are responsible for holding their employees accountable for reporting Public Works contracts to the DIR to ensure compliance with Prevailing Wage Laws.

Purchasing Manager

Purchasing Manager is responsible for ensuring that all solicitations for goods and services are conducted in a manner that provides full and open competition and in compliance with Prevailing Wage Laws; assisting Department Heads and City Employees with selecting the appropriate solicitation types; and facilitating the administration of solicitations and contracts for goods and services.

Departments/City Employees

The Departments/City Employees must ensure to provide the Purchasing Divisionwith detailed information regarding the scope of work to assist in the determination whether a particular project is subject to Prevailing Wages or not. Once the determination has been decided and a contract is awarded, the Department/City Employee is responsible for registering the project with the DIR within thirty (30) days of award.

DEFINITIONS

As used in this policy:

California Department of Industrial Regulations (DIR) – a state agency that enforces and codifies California Labor Statutes.

California Labor Code (LAB) – State of California statutes that clarify laws regarding labor laws.

California Uniform Public Construction Cost Accounting Act (CUPCAA) – the Uniform Public Construction Cost Accounting Act (Act), enacted in 1983 under Public Contract Code section 22000 et seq., allows local agencies to perform public project work of up to $75,000 with their own workforces if the agencies elect to follow the cost 85 4-5
accounting procedures set forth in the Cost Accounting Policies and Procedures Manual by the California Uniform Construction Cost Accounting Commission.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Davis-Bacon Act – a Prevailing Wage Law imposed by the federal government on federal awards that requires contractors and subcontractors to pay local Prevailing Wages on Public Works projects more than $2,000.

Maintenance – as defined in LAB, Maintenance includes the following: (1) Routine, recurring and usual work for the preservation, protection and keeping of any publicly owned or publicly operated facility (plant, building, structure, ground facility, utility system or any real property) for its intended purposes in a safe and continually usable condition for which it has been designed, improved, constructed, altered or repaired; (2) Carpentry, electrical, plumbing, glazing, touchup painting, and other craft work designed to preserve the publicly owned or publicly operated facility in a safe, efficient and continuously usable condition for which it was intended, including repairs, cleaning and other operations on machinery and other equipment permanently attached to the building or realty as fixtures; and (3) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and services of irrigation and sprinkler systems.

Prevailing Wages – hourly wages, benefits and overtime required to pay the labor force under the performance of a government contract for Public Works.

Prevailing Wage Laws – State and federal statutes that require contractors and subcontractors to pay Prevailing Wages.

Prevailing Wage Decision Tree – a guide for departments to use when deciding if Prevailing Wages would apply to a particular project or scope of work.

Prime Recipient – a non-federal entity that expends federal awards received directly from a federal awarding agency to carry out a federal program.

Public Works – as defined in LAB, Public Works includes the following: (1) Construction, alteration, demolition, installation, repair, or maintenance work done under contract and paid for in whole or in part out of public funds, and tree removal work done in the execution of any such work (construction includes work performed during the design and preconstruction phases of construction, including but not limited to inspection and land surveyors’ work, as well as post-construction phases of construction, including but not limited to all cleanup work at the jobsite); (2) Work done for certain special districts (e.g., irrigation, utility, reclamation, and improvement districts); (3) Street, sewer, or other improvement work done under the direction and supervision or by the authority of any charter or general law city; (4) The laying of carpet paid for out of public funds; (5) Public transportation demonstration projects; (6) Hauling refuse from a Public Works site to an outside disposal location; (7) Hauling and delivery of ready-mixed concrete to carry out a Public Works contract; and (8) Maintenance.

PWC-100 Form – a form that fulfills the required Public Works project award notification as required by LAB sec. (replacing former DAS-13 notification) and 8 Cal. Code Reg. sec. 16451(a).

Subrecipient – a non-federal entity that receives a subaward from a pass-through entity to carry out part of a federal program.
86 Prevailing Wage Decision Tree

Exceptions

 Janitorial or custodial services of a routine, recurring or usual nature;

 Protection of the sort provided by guards, watchmen, or other security forces; and

 Landscape maintenance work by “sheltered workshops” where “sheltered workshops” are nonprofit organizations licensed by the Division of Labor Standards Enforcement (DLSE) employing mentally and/or physically handicapped workers.

4-6
87 5-1

5.0 City Contract Policy

PURPOSE

This policy is to ensure that City Employees are using the appropriate City Contract Templates in compliance with the City of Fon tana’s (the City) policies and procedures, federal, state, and local laws, and to provide guidance when selecting the appropriate contract template for goods and services.

POLICY

The City’s Attorney has developed several City Contract Templates for City Employees to use when acquiring goods and services for different types of contracts, including Public Projects, Professional Services, Instructional Services, and Special Events. The City Contract Templates define the parties’ responsibilities and terms and conditions that govern each contract.

5.1 City Contract Templates

The City Contract Templates must be used when entering into an agreement with a vendor, consultant, or contractor to provide goods and services to the City. Anytime a vendor, consultant, or contractor takes exceptions to the terms and conditions, the Purchasing Manager must be notified, and the City Attorney must review and approve prior to obtaining the Department Head, Deputy City Manager, and City Manager’s signature. All City Contract Templates can be found on the Purchasing’s CityNet intranet page.

5.2 Exceptions to City Contract Templates

City Employees must always use the City Contract Templates. However, there may be some circumstances where the City Contract Templates do not fit the purpose for a specific type of good or service.

5.2.1 Contracts for Goods and Services

The following goods and services are examples of when the City Contract Templates may not be the appropriate contract type: equipment leases/purchases, software licenses/renewals, software maintenance agreements, contracts with financial institutions, and complex construction contracts. Vendors that provide such goods and services require the City to agree to their terms and conditions. In these circumstances, the City Employee must notify the Purchasing Manager to assist in reviewing the terms and conditions to minimize the risk to the City.

Prior to obtaining the Department Head, Deputy City Manager, and City Manager’s signature, the City Attorney must review and approve all contracts when the City Contract Templates are not used.

5.2.2 Other Contractual Agreements

The City enters into many other contractual agreements other than goods and services for which the above City Contract Templates would not be appropriate, including multi-agency agreements with other public agencies, cooperative agreements, memorandums of understanding, easement acquisitions, right-of-way contracts, fiduciary agreements, bond purchasing agreements, development agreements, grants, and subawards.

5.2.3 Agreement Amendments

Amendments to agreements that pertain to, but not limited to scope, pricing, or other factors, should be reviewed 88 5-2

by the Purchasing Manager or designee for review and approval of contract modifications to ensure the proposed modifications are within the scope and terms.

89 5-3

ROLES AND RESPONSIBILITIES

City Manager

All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer

Department Heads

Department Heads are responsible for holding their employees accountable for the purchasing activities they make on behalf of the City and to ensure that they comply with all purchasing policies and procedures.

Purchasing Manager

Purchasing Manager is responsible for assisting departments with selecting the appropriate contract template, assisting with negotiating contracts to mitigate risk to the City, and to facilitate the contracting process to ensure compliance with the City’s policies and procedures.

City Employees

City Employees who acquire goods and services on behalf of the City must ensure that they use the appropriate City Contract Templates, seek assistance from the Purchasing Manager when necessary, and ensure all purchasing decisions are in compliance with the City’s policies and procedures.

DEFINITIONS

As used in this policy:

City Attorney – the attorney selected to represent the City of Fontana.

City Contract Templates – contract templates that are either developed or approved by the City Attorney.

City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Instructional Services –services provided by an individual with the necessary credentials to teach specific classes to the City of Fontana residents.

Professional Services –means the services of attorneys, architects, auditors, consultants, engineers, specialized printers or other individuals or firms possessing a high degree of professional, unique, specialized, or technical skill or expertise. "Professional services" also means Maintenance work.

Public Project/Public Works Project – as defined in PCC Section 22002, a Public Project/Public Works Project is: (1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; (2) Painting or repainting of any publicly owned, leased, or operated facility; (3) In the case of a publicly owned utility system, “Public Project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher.

Special Events – performing arts or other special events that take place on City property. 90 6-1

PURPOSE

The purpose of these Federal Emergency and Grant Procurement Procedures is to define the practices and policies governing the procurement of public works projects, services, and goods (i) in preparation of, during, and after an emergency that may be subject to federal funding or reimbursement; (ii) when using federal grant funds subject to the regulations set forth in the following sentence.

POLICY

These Federal Emergency and Grant Procurement Procedures are compliant with Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”).

6.1 Federally Declared Emergencies and Federal Grants; Procurement and Contracting Requirements

6.1.1 In the event of an emergency declared by the President of the United States, the City must comply with Federal procurement standards as a condition of receiving public assistance funding from the Federal Emergency Management Agency (FEMA) for contract costs for eligible work. FEMA funding is governed by the Uniform Guidance.

6.1.2 In addition, most federal grant funding is also subject to the Uniform Guidance. Federal grant compliance requires the grantee to conduct procurements in accordance with written procurement policies and procedures that comply with the requirements set forth in the Uniform Guidance. These procurement procedures shall be complied with in connection with utilization of federal grant funding by the City, in addition to any other specific grant requirements.

6.1.3 These procedures are in addition to and are not intended to replace or supersede the City’s other procurement requirements in this Policy or state law. In the case of a conflict between these procedures, the more stringent requirement shall govern, provided that the more stringent requirement would not violate a federal procurement requirement. In such case, for federally funded contracts, the federal requirement shall govern.

6.2 Conflicts of Interest

6.2.1 Standards of Conduct for Conflicts of Interest. No City Employee shall participate in selection, or in the award or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved. Such a conflict would arise when: City Employees; any member of their immediate family; their partner; or an organization which employs, or is about to employ, any of the above, has a financial or other interest in the firm selected for award. City Employees or agents will neither solicit nor accept gratuities, favors or anything of monetary value from contractors, potential contractors, or parties to sub-agreements. Such a conflict will not arise where the financial interest is not substantial or the gift is an unsolicited item of nominal intrinsic value. City Employees must follow applicable laws, rules, and regulations in regard to conflicts of interest including, but not limited to, the Political Reform Act, the prohibition against contractual conflicts of interest, and guidelines in the California Code of Regulations regarding acceptance of gifts.

6.2.2 Violations. Disciplinary actions to be applied for violations of the above standards are as follows:

6.0 Federal Emergency and
Grant Procurement
Procedures
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(1) The violation of these standards of conduct by City Employees will subject the violator to any disciplinary proceedings or action deemed appropriate by the City Manager. City Employees may correct a violation in any manner provided for under the Political Reform Act, and its implementing regulations.

(2) The violation of any of these standards of conduct by City Employees will require correction of the violation in any manner provided for under the Political Reform Act, and its implementing regulations.

(3) Contractors or subcontractors that violate these standards of conduct as relates to an active federally- funded procurement may be prohibited from bidding on the procurement, or may be subject to other action as deemed appropriate by the City Manager.

(4) Agents of the City that violate these standards of conduct as relates to federally-funded procurements may be prohibited from participation on behalf of the City on federally funded projects, or subject to other action as deemed appropriate by the City Manager.

6.3 Procurement Standards

6.3.1 Oversight. The City shall maintain administrative oversight of contractors to ensure that contractors perform in accordance with the terms, conditions and specifications of their contracts or purchase orders.

6.3.2 Economical Approach. The City must avoid acquisition of unnecessary or duplicative items.

Consideration should be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. The City will enter into state and local intergovernmental agreements or inter-entity agreements where appropriate for procurement or use of common or shared goods and services. If feasible and it reduces project costs, the City will explore using federal excess and surplus property in lieu of purchasing new equipment and property. When appropriate, the City will investigate using value engineering clauses in contracts for construction projects of sufficient size to offer reasonable opportunities for cost reductions.

6.3.3 Detailed Records. The City shall maintain records sufficient to detail the history of each procurement.

These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price.

6.3.4 Procurement Issues. The City alone shall be responsible, in accordance with good administrative practice and sound business judgment, for the settlement of all contractual and administrative issues arising out of procurements. These issues include, but are not limited to, source evaluation, protests, disputes and claims. Protest procedures or information on obtaining the procedures shall be included in the procurement documents.

6.4 Competition

6.4.1 Full and Open Competition. In order to ensure objective contractor performance and eliminate unfair competitive advantage, contractors that develop or draft specifications, requirements, statements of work, or invitations for bids or requests for proposals must be excluded from competing for such procurements. Some of the situations considered to be restrictive of competition include but are not limited to:

(1) Placing unreasonable requirements on firms in order for them to qualify to do business; (2) Requiring unnecessary experience and excessive bonding; (3) Noncompetitive pricing practices between firms or between affiliated companies; (4) Noncompetitive contracts to consultants that are on retainer contracts; (5) Organizational conflicts of interest, as further detailed herein; (6) Specifying only a “brand name” product instead of allowing “an equal” product to be offered and describing the performance or other relevant requirements of the procurement; and (7) Any arbitrary action in the procurement process.
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6.4.2 Organizational Conflicts of Interest. An unfair competitive advantage could result if a contractor were allowed to submit a bid or proposal for work described in a specification or statement of work that the contractor itself developed. For the purpose of eliminating a potential unfair competitive advantage, and in compliance with applicable state and federal laws and regulations, a contractor that develops or assists in developing specifications, requirements, statements of work, invitation for bids, and/or request for proposals for City procurement is excluded from competing for the resultant procurement, unless an appropriate waiver is issued by the City. All waivers will be assessed by the City on a case-by-case basis.

6.4.3 Geographical Preference. The City shall conduct procurements in a manner that prohibits the use of statutorily or administratively imposed in-state or local geographical preferences in the evaluation of bids or proposals, except in those cases where applicable federal statutes expressly mandate or encourage geographic preference. When contracting for architectural and engineering (A/E) services, geographic location may be a selection criteria provided its application leaves an appropriate number of qualified firms, given the nature and size of the project, to compete for the contract.

6.4.4 Procurement Transactions. The City shall require the following information for procurement transactions:

(1) A clear and accurate description of the technical requirements for the material, product or service to be procured. Such description shall not, in competitive procurements, contain features which unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary, shall set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. Detailed product specifications should be avoided if at all possible. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a brand name or equal description may be used as a means to define the performance or other salient requirements of procurement. The specific features of the named brand which must be met by offerors shall be clearly stated; and

(2) All requirements which the offerors must fulfill and all other factors to be used in evaluating bids or proposals.

6.4.5 Prequalification Lists. The City shall ensure that all prequalified lists, if used, of persons, firms or products which are used in acquiring goods and services are current and include enough qualified sources to ensure maximum open and free competition. The prequalification list may be used upon development of a procedure using the any prequalified listing. The City shall not preclude potential bidders from qualifying during the solicitation period.

6.5 Procurement Procedures

The thresholds below are federal thresholds. If City thresholds are lower, the more restrictive requirement shall govern, notwithstanding the provisions herein.

6.5.1 Micro-Purchases. Purchases within the micro-purchase threshold (e.g., currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the City considers the price to be reasonable. To the extent practicable, the City must distribute micro-purchases equitably among qualified suppliers.

6.5.2 Small Purchases. Purchases within the simplified acquisition threshold (e.g., currently set at purchases of $250,000 or less) shall not be required to be formally bid. Price quotations must be received from no less than three (3) sources.

6.5.3 Formal, Sealed Bidding.

(1) Bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the 93 6-4

responsible bidder whose bid, conforming to all the material terms and conditions of the invitation for bids, is the lowest in price. Formal, sealed bidding is required for purchases greater than the simplified acquisition threshold, which is currently set at $250,000, or as may be adjusted by the Federal Acquisition Regulation, pursuant to 48 CFR § 2.101.

(2) This is the preferred method for procuring construction, if a complete, adequate, and realistic specification or purchase description is available; two or more responsible bidders are willing and able to compete effectively and for the business; and the procurement lends itself to a firm-fixed-price contract and the selection of the successful bidder can be made principally on the basis of price.

(3) The City must publicly advertise the Invitation for Bids and publicly open all bids at the time and place prescribed in the invitation.

(4) Any contracts awarded pursuant to this procedure shall be to the lowest responsible bidder submitting a responsive bid and shall be for a firm fixed price. Any or all bids may be rejected if there is a sound documented reason.

6.5.4 Competitive Proposals

(1) When the nature of a procurement does not lend itself to formal, sealed bidding, the District may solicit competitive proposals. The technique of competitive proposals is normally conducted with more than one source submitting an offer, and either a fixed-price or cost-reimbursement type contract is awarded.

(2) A request for proposals (RFP) must be publicly advertised, and the District must solicit proposals from an adequate number of sources. The RFP must identify all evaluation factors and their relative importance; however, the numerical or percentage ratings or weights need not be disclosed.

(3) Evaluation factors that will be considered in evaluating proposals shall be tailored to each procurement and shall include only those factors that will have an impact on the selection decision.

a. The City’s procurement officer shall establish a formal evaluation committee, of at least two persons.

The size of an evaluation committee should be based on the size and complexity of the goods or services being procured and well balanced and represented by individuals involved with the procurement and/or affected by the goods or services being procured.

b. The evaluation committee will be charged with responsibility for evaluating proposals in accordance with the evaluation criteria in the solicitation, short listing firms, establishing a competitive range, and/or recommending a firm or firms for contract award.

(4) Any contract awarded based on the competitive proposal procurement process cannot be based exclusively on price or price-related factors.

(5) If a contract is awarded, it shall be to the responsible firm whose proposal is most advantageous to the City (“best value”), with price and other factors considered.

6.5.5 Competitive Proposals for A&E Services. The competitive proposal procedures above may be used for procurement of architect and engineering (A&E) services, provided that proposers must be evaluated based on competence and qualifications, without regard to price. For A&E procurements, price will not be used as a selection factor. The City will rank proposers based on qualifications only, and attempt to negotiate fair and reasonable compensation with the highest ranked proposer. If negotiations with the highest ranked proposer are unsuccessful, such negotiations will be terminated and the City will commence negotiations with the next highest ranked proposer. This process shall be continued with successive qualified proposers until agreement is reached that is determined to be fair and reasonable.

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6.5.6 Noncompetitive Procurements

(1) Contracts may be procured through a noncompetitive proposal only when:

a. The item is only available from a single source;
b. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation;
c. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the District; or
d. Competition is deemed inadequate after the solicitation of a number of sources.

6.5.7 Public Projects. Public projects shall be procured by the City’s formal contract bid procedures outlined by Section 3.0 Bidding Procedure, and the formal, sealed bidding in this section. If there is conflict between the foregoing, the more restrictive requirements shall apply.

6.5.8 Award.

(1) Responsible Contractor. The City shall award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Consideration will be given to such matters as contractor integrity, compliance with public policy, record of past performance, and financial and technical resources. The responsibility determination shall be documented and contained in the file.`

(2) Debarment and Suspension. In accordance with 2 CFR 200.213, in connection with the responsibility determination, a check of debarment and suspension using the System for Award Management (SAM), www.sam.gov, must be performed and documented in the procurement records prior to award.

6.6 Contracting with Small and Minority Firms, Women’s Business Enterprises, and Labor Area Surplus Firms

6.6.1 The City must take all necessary affirmative steps to ensure the use of minority businesses, women’s business enterprises, and labor surplus area firms when possible, as set forth at 2 CFR § 200.321 and detailed below. The City shall:

(1) Place qualified small and minority businesses and women's business enterprises on solicitation lists; (2) Assure that small and minority businesses, and women's business enterprises are solicited whenever they are potential sources;
(3) Divide total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women's business enterprises; (4) Establish delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women's business enterprises; (5) Use the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and (6) Require the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in paragraphs (1) through (5) of this section.

6.6.2 The City shall document the steps above, and any relevant findings applicable to any of the steps above in its procurement file.

6.7 Cost and Price

6.7.1 Cost or Price Analysis. The City shall perform a cost or price analysis in connection with every procurement action, including contract modifications, in excess of the simplified acquisition threshold. While the method and degree of analysis depend on the facts surrounding the particular procurement situation, the City 95 6-6

must, at a minimum, make independent estimates before receiving bids or proposals.

6.7.2 Profit. The City shall negotiate profit as a separate element of the price for each contract in which there is no price competition and in all cases where a cost analysis is performed as required by 2 CFR § 200.323(b).

6.7.3 Estimated Costs. Costs or prices based on estimated costs for contracts are allowable only to the extent that costs incurred or cost estimates included in negotiated prices would be allowable for the City under 2 CFR 200.400 et seq.

6.8 Payment Procedures

6.8.1 Method of Contracting. Contracts entered into pursuant to these procedures shall utilize only fixed- price, cost-reimbursement, or, to a limited extent, time and materials payment methods.

6.8.2 Prohibited Methods of Contracting. The City shall not use the cost plus a percentage of cost or percentage of construction cost methods of contracting for any work for which federal reimbursement will be sought.

6.8.3 Time and Materials (“T&M”) Contracts

(1) T&M contracts should be used rarely, and the use of T&M contracts should be limited to a reasonable time period (e.g., no more than 70 hours) based on circumstances during which the District cannot define a clear scope of work.

(2) The City shall only enter into a time and materials contract if all of the following apply:

a. The City has determined and documented in the project file that no other contract is suitable; b. The contract has a guaranteed maximum price that the contractor exceeds at its own risk; and c. The City provides a high degree of oversight to obtain reasonable assurance that the contractor is using efficient methods and effective cost controls.

(3) The City must define the scope of work as soon as possible to enable procurement of a more acceptable type of contract (i.e., non-T&M).

6.8.4 Separate Invoicing. All purchases made during a proclaimed emergency shall require separate invoicing from routine (i.e., non-emergency related) purchases. All invoices shall state the goods, services, or equipment provided and shall specify where the goods or services were delivered. All invoices shall specify the location(s) where the goods or services were used, if possible. Any invoice which fails to properly identify the emergency nature of the purchase and provide details as to the date(s) and location(s), as appropriate, shall not be paid until such errors are corrected by the vendor and re-submitted in correct form.

6.8.5 Auditing of Invoices for Debris Removal. All invoices for debris clearance and removal shall be audited prior to payment to the contractor. Contractors shall be notified of this requirement prior to the award of any contract for debris clearance and/or removal. Audits shall be in accordance with procedures for debris removal monitoring specified in FEMA’s Publication 325, Debris Management Guide.

6.9 Bonding Requirements

6.9.1 Bonding. For construction or facility improvement contracts or subcontracts exceeding the simplified acquisition threshold (See 2 CFR 200.88), the City shall require at a minimum:

(1) A bid guarantee from each bidder equivalent to five percent of the bid price. (2) A performance bond on the part of the contractor for 100 percent of the contract price. (3) A payment bond on the part of the contractor for 100 percent of the contract price.

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6.10 Procurement of Recovered Materials

6.10.1 For procurements covered under these procedures, the City and its contractors must comply with section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. In accordance with these requirements, the City shall only procure items designated in the guidelines of the Environmental Protection Agency (EPA) at 40 CFR part 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

6.10.2 This requirement applies to purchases of items when the purchase price of the item exceeds $10,000, or the value of the quantity acquired during the preceding fiscal year exceeded $10,000.

6.11 Contract Provisions

The City’s contracts shall contain the applicable provisions described in Appendix II to Part 200 – Contract Provisions for Non-Federal Entity Contracts Under Federal Awards.

ROLES AND RESPONSIBILITIES

City Manager

All purchases and contracts for goods and services are under the control and direction of the City Manager.

Chief Financial Officer

Department Heads

Purchasing Manager

DEFINITIONS

As used in this policy:

City Employee - a person employed by the City that earns a wage or salary, including elected officials, non -elected officials, executive staff, and non-executive staff.

Federal Emergency Management Agency (FEMA) - An agency of the United States Department of Homeland Security (DHS) with the primary purpose is to coordinate the response to a disaster that has occurred in the United States and that overwhelms the resources of local and state authorities.

Micro-Purchases - Purchases within the micro-purchase threshold (e.g., currently set at purchases of $10,000 or less but periodically adjusted for inflation) may be awarded without soliciting competitive quotations if the City considers 97 6-8

the price to be reasonable.

Political Reform Act - California law that is requires the detailed disclosure of the role of money in California politics.

This includes the disclosure of contributions and expenditures in connection with campaigns supporting or opposing state and local candidates and ballot measures as well as the disclosure of expenditures made in connection with lobbying the State Legislature and attempting to influence administrative decisions of state government.

Request for Proposal – is a document that solicits firms to submit a proposal to perform the scope of work associated with a proposed project. Cost is not the sole basis for selection in an RFP; other qualifications including experience, turnaround time and approach to work are important factors when evaluating proposals. RFPs are project specific and preparation requires general knowledge of the project. It is expected that interested parties would do a limited amount of work to develop a quality proposal.

Resource Conservation and Recovery Act - the principal federal law in the United States governing the disposal of solid waste and hazardous waste.

Small Purchases - Purchases within the simplified acquisition threshold (e.g., currently set at purchases of $250,000 or less) shall not be required to be formally bid
Uniform Guidance – The Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200) is Federal legislation that governs the Federal grant process from pre-award to post-award administration.

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PURPOSE

This policy is to ensure that City Employees are purchasing supplies and equipment in accordance with the City of Fontana’s (the City) policies and procedures, Federal, State, and local laws, while ensuring adequate control, appropriate use, and disposition.

POLICY

This policy ensures that acquisitions, internal controls, and disposition of supplies and equipment are in compliance with all requirements outlined in the (FMC 10 - 155 ), California Government Code (GC) and Office of Management and Budget (OMB) Uniform Administrative Requirements, Cost Principles Competitive Requirements (Uniform Guidance).

7.1 City Property

City Property consists of all supplies and equipment purchased for the City regardless of the dollar amount, including Fixed Assets.

7.2 Fixed Assets

Fixed Assets are tangible assets having a value equal to or greater than $5,000. Therefore, any supplies or equipment purchased that has a value of $5,000 or greater must be acquired, tagged, and disposed in accordance with this policy.

7.2.1 Acquiring Fixed Assets Under Grants

The City receives grants from various Federal, State, and local agencies to fund specific programs. All Fixed Assets acquired under a grant shall comply with the terms and conditions of the grant. All Fixed Assets fully funded or partially funded by a Federal Grant shall perform an Equipment Screening prior to purchasing which verifies the following:

 If prior written approval was obtained from the Federal awarding agency or pass-through to purchase the Fixed Asset;

 If the title of the Fixed Asset will vest in the Federal awarding agency, a pass-through, or the City; Description of the Fixed Asset;

 Source of funding (Federal Award Identification Number (FAIN)); and

7.3 Disposition of Surplus Property

Supplies, equipment, and Fixed Assets are considered Surplus Property if they are no longer being utilized by the City for reasons, including decreased use, poor condition, damaged beyond repair, and/or obsolescence. Once Surplus Property has been identified and a disposition method has been determined, the department will need to submit a Surplus Property Disposition Form to the Purchasing Manager. The Department Head will need to

7.0 Surplus Property Policy
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approve the disposition of all Surplus Property for their department regardless of the value. If the value of the Surplus Property is equal to or more than $5,000, the Purchasing Division will coordinate with Maintenance to transport the Surplus Property to dispose by one of the following disposition methods. Once the disposition is complete, the Purchasing Division will notify Accounting to update the asset record.

7.4 Transfer to Another Department

Departments can transfer Surplus Property from one department to another. The department transferring out the Surplus Property will need to submit a Surplus Property Disposition Form with the necessary approvals.

7.5 Trade-In

Surplus Property can be offered as a trade-in or a credit towards the acquisition of new supplies, equipment, or Fixed Assets.

7.6 Sell

Surplus Property may be offered for sale, and any sales must be directed and approved by the Purchasing Manager. All Surplus Property sales are “as is” with no warranty, guarantee, expressed or implied, as to the condition, utility or usability of the Surplus Property being sold. City Employees may not purchase Surplus Property. The following sale methods for Surplus Property may be used:

 Public Auction. the Purchasing Division may conduct public auctions, utilize public auction internet providers, or contract a public auctioneer company to sell Surplus Property on behalf of the City.

 Sealed Bids. the Purchasing Division may solicit sealed bids in which the highest responsible bidder will be sold the Surplus Property.

 Negotiated Sale. the Purchasing Division may negotiate a sale if there is only one known buyer available and willing to purchase the Surplus Property.

 Selling as Salvage. the Purchasing Division may sell Surplus Property as salvage if the value of the raw materials exceeds the value of the property.

7.7 Donate

Surplus Property may be donated to a non-profit organization or charitable group.

7.8 Scrap

If no other disposition method for Surplus Property is available, including transferring to a different department, trading in, selling, donating, and/or selling as salvage, then the Surplus Property may be thrown away.

7.9 Surplus Property Under Grants

If the City has Surplus Property that was acquired with grant funds, then the disposition of such property shall comply with the terms and conditions of the grant, regardless of the funding agency. All Fixed Assets fully funded or partially funded by a Federal Grant shall be disposed in accordance with the Federal awarding agency’s disposition instructions.

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ROLES AND RESPONSIBILITIES

City Manager
All sales and disposition of Surplus Property are under the control and direction of the City Manager.

Chief Financial Office

The Chief Financial Officer is responsible for recommending policy changes and updates to establish and maintain compliance with government laws and to oversee the Surplus Property process while ensuring appropriate stewardship of the City’s assets.

Department Heads

Department Heads are responsible for holding their employees accountable for the Surplus Property activities to ensure that they comply with the City’s purchasing policies and procedures.

Purchasing Manager

The Purchasing Manager is responsible for ensuring that the disposition of Surplus Property is conducted in a manner that is compliant with the City’s purchasing policies and procedures, Federal, State, and local laws.

Purchasing Division

The Purchasing D i v i s i o nwill review completed Surplus Property Disposition Forms, ensure the appropriate method of disposition. Once approved, the Purchasing Division will coordinate the disposition of the Surplus Property with Maintenance and notify Accounting if any asset records need to be updated.

Accounting

In coordination with the Purchasing Division, Accounting enters and maintains Fixed Asset records in accordance with the City’s purchasing policies and procedures.

Maintenance

In coordination with the Purchasing Division, Maintenance assists with the transportation of Surplus Property to and from departments within the City, or from City buildings to the yard for disposition.

City Employees

City Employees are responsible for adhering to this policy whenever purchasing Fixed Assets or disposing Surplus Property.

DEFINITIONS

As used in this policy:

Accounting – a division within the Department of Finance that performs accounting functions and reporting for the City.

Maintenance – a division within the Department of Public Works that is responsible for building maintenance services for the City.

City Property – consists of all supplies and equipment purchased for the City regardless of the dollar amount, including Fixed Assets.
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City Employee – a person employed by the City that earns a wage or salary, including elected officials, non-elected officials, executive staff, and non-executive staff.

Federal Grant – an award of financial assistance from a Federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States.

Fixed Asset – tangible assets having a value equal to or greater than $5,000.

Purchasing Division – a division within the Department of Finance responsible for ensuring compliance with the City’s purchasing policies and procedures.

Surplus Property – supplies, equipment, and Fixed Assets that are no longer being utilized by the City for reasons, including decreased use, poor condition, damaged beyond repair, and/or obsolescence.

Surplus Property Disposition Form – a form used whenever a department wants to transfer, trade-in, sell, donate, or scrap Surplus Property.

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City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0110 Agenda Date: 3/25/2025
Agenda #: E. Category: Consent Calendar
FROM:

Housing
SUBJECT:

Acceptance of Housing and Homelessness Incentive Grant
RECOMMENDATION:

1. Accept grant funding from the County of San Bernardino Community Development & Housing Department in the amount of $500,000 in Housing and Homelessness Incentive Program HHHIP) Funds

2. Authorize the City Manager, or City Manager’s designee, to execute and transmit any documents necessary or desirable to ensure the City’s timely submittal and execution of the Housing and Homelessness Incentive Program (HHIP)
COUNCIL GOALS:
· Provide a diverse range of housing types and levels of affordability while addressing homelessness in the community by addressing Homelessness through proactive programs, including the efforts of the COAST and MET teams.
· Concentrate on Inter-governmental relations by working cooperatively with neighboring jurisdictions.
· Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.

DISCUSSION:

The County of San Bernardino Community Development & Housing Department awarded the City of Fontana $500,000 in program assistance through the Housing and Homelessness Incentive Program (HHIP).

The Housing and Homelessness Incentive Program (HHIP) is a statewide voluntary incentive program administered by the California Department of Health Care Services (DHCS) that enables health plans to earn one-time incentive funds for improving health outcomes and access to whole person care services by addressing homelessness and housing insecurity as social drivers of health and health disparities. Molina Healthcare of California has allocated HHIP funds to San Bernardino County to fund eligible activities that prioritize gaps in local shelter infrastructure with an emphasis in funding the startup and continued operation of large-scale navigation centers.

The City of Fontana owns The Path, an Interim Housing Facility with 120 beds dedicated to serving individuals and families experiencing or at risk of homelessness. Operated by Symba Center, the Facility utilizes a medically based model of homeless care, employing a multi-disciplinary team and City of Fontana Printed on 3/19/2025Page 1 of 2
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File #: 25-0110 Agenda Date: 3/25/2025
Agenda #: E. Category: Consent Calendar
evidence-based practices to effectively meet the needs of its residents. To ensure the continued provision of critical services and operations, the City intends to use this two-year grant to support and sustain the Facility’s programs, offering ongoing assistance to those in need.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $500,000 of grant funding from the County of San Bernardino Housing and Homelessness Incentive Program (HHIP). Of this amount, $400,000 is included in the 2024-25 current budget and an additional budget adjustment will be included in the 2024-25 3rd Quarter Budget Report in the amount of $100,000 in project string 37600041-301-C.

MOTION:

Approve staff recommendation.

City of Fontana Printed on 3/19/2025Page 2 of 2
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THE INFORMATION IN THIS BOX IS NOT A PART OF THE CONTRACT AND IS FOR COUNTY USE ONLY

Community Development & Housing

Department Contract Representative Carrie Harmon
Telephone Number (909) 382-3983

Contractor City of Fontana
Contractor Representative Phillip Burum
Telephone Number (909) 350-6727
Contract Term April 8, 2025 - April 7, 2027
Original Contract Amount $500,000
Amendment Amount N/A
Total Contract Amount $500,000
Cost Center 6210002493

IT IS HEREBY AGREED AS FOLLOWS:

WHEREAS, the Housing and Homelessness Incentive Program (HHIP ) is a statewide voluntary incentive program administered by the California Department of Health Care Services (DHCS) that enables health plans to earn one-time incentive funds for improving health outcomes and access to whole person care services by addressing homelessness and housing insecurity as social drivers of health and health disparities; and WHEREAS, Molina Healthcare of California (Molina), a California health plan organization, has allocated HHIP funds to San Bernardino County (County) to fund eligible activities as specified in Contract No. 24-146; and WHEREAS, the 2024 Point-in-Time Count, conducted on January 25, 2024, found a substantial percentage of the County’s unsheltered homeless population was located in the City of Fontana; and WHEREAS, the Molina Healthcare of California San Bernardino Investment Plan prioritizes the establishment and ongoing operation of Navigation Centers serving individuals experiencing homelessness and assuring medically informed care to clients; and
WHEREAS, the City of Fontana (“Contractor”), a municipal corporation, owns an Interim Housing Facility located at 17133 Valley Blvd., City of Fontana (the “Facility”) a large regional shelter with 120 beds, serving individuals Contract Number

SAP Number

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and families who are experiencing homelessness or who are at risk of homelessness ; which is operated by Symba Center, a service provider that implements a medically -based model of homeless care utilizing a multi - disciplinary team and evidence based modalities to effectively serve the needs of the homeless population; and WHEREAS, Molina Healthcare of California has accepted the City of Fontana as an investment that meets the criteria in the approved investment plan; and
WHEREAS, Contractor wishes to accept from the County and the County wishes to grant to Contractor up to five hundred thousand dollars ($500,000) (the “HHIP Grant”) to fund the continuing operation of the Facility. The HHIP Grant will be evidenced by this Agreement and will be subject to the terms and conditions set forth in this Agreement; and

NOW, THEREFORE, the County and Contractor mutually agree to the following terms and conditions:

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TABLE OF CONTENTS

SECTION PAGE
A. DEFINITIONS 3
B. CONTRACTOR RESPONSIBILITIES 4
C. GENERAL CONTRACT REQUIREMENTS 11
D. TERM OF CONTRACT 20
E DEFAULT AND REMEDIES 20
F. COUNTY RESPONSIBILITIES 22
G. FISCAL PROVISIONS 22
H. INDEMNIFICATION AND INSURANCE REQUIREMENTS 22
I. RIGHT TO MONITOR AND AUDIT 26
J. CORRECTION OF PERFORMANCE DEFICIENCIES 26
K. NOTICES 26
L. ENTIRE AGREEMENT 27
M. ELECTRONIC SIGNATURES 27

ATTACHMENTS
EXHIBIT A – OPERATIONAL BUDGET
EXHIBIT B – SCOPE OF WORK
EXHIBIT C.1 – HMIS CLIENT DATA REPORT SAMPLE
EXHIBIT C.2 – HMIS DATA QUALITY REPORT SAMPLE
EXHIBIT D – EXPENDITURE REPORT
EXHIBIT E – DISBURSEMENT REQUEST / DRAW REQUEST

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A. DEFINITIONS

A.1 “Agreement” means this Housing and Homelessness Incentive Program Agreement.

A.2 "At Risk of Homelessness Household" means a household that is at risk of homelessness, as defined in Section 578.3 of Title 24 of the Code of Federal Regulation.

A.3 “Case Management” means services that assist an Eligible Participant to access needed medical, educational, social, prevocational, vocational, rehabilitative, or other community services. The service activities may include, but are not limited to, communication, coordination, and referral; monitoring service delivery to ensure access to service and the service delivery system; monitoring of individual progress.

A.4 "Eligible Participants" means Medi-Cal Managed Care Plan (MCP) Members as referred by Molina, Inland Empire Health Plan, or other MCP providers who are experiencing homelessness.

A.5 “Homeless” has same meaning as defined in Section 578.3 of Title 24 of the Code of Federal Regulations, as that section read on January 10, 2019.

A.6 “Homeless Management Information System (HMIS)” is a web-enabled database used by homeless service providers to capture information about the San Bernardino County persons they serve. The database tracks services provided to homeless individuals and families by the collaborative agencies. Services tracked i nclude: emergency, transitional, and permanent housing bed usage, employment, veteran’s status, as well as referrals to health and human service providers, or other relevant supportive service agencies. As required by the U.S. Department of Housing and Urb an Development, the Continuum of Care utilizes the captured information to make informed decisions in planning, homeless advocacy, and policy development that result in target services. HMIS also includes that use of a comparable database by a victim services provider or legal services provider that is permitted under Part 576 of Title 24 of the Code of Federal Regulations.

A.7 “Housing and Homelessness Incentive Program” (HHIP) is voluntary incentive program administered by the California Department of Health Care Services that allows health plans to earn incentive funds for making progress in addressing homelessness and housing insecurity and social determinants of health.

A.8 “The Facility” is a low barrier, service -enriched interim shelter focused on moving homeless individuals and families into permanent housing and is located at 17133 Valley Blvd., Fontana California.

A.9 “Operational Costs” refers to ongoing expenses directly attributable to the operation, maintenance, and administration of the Facility.

A.10 “Operational Budget” means the budget for Operational Costs, and Services approved by the County as of the date of this Agreement and attached to this Agreement as Exhibit A and incorporated herein by this reference.

A.11 “Parties” means the County and Contractor.

A.12 “Services” means the services and related expenses to be provided under the Scope of Work as detailed in Exhibit B.

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B. CONTRACTOR RESPONSIBILITIES

B.1 HHIP Grant. Upon satisfaction of the conditions set forth in this Agreement, the County grant s to the Contractor the HHIP funding in the amount not to exceed Five Hundred Thousand Dollars ($500,000) for the purposes set forth in this Agreement.

B.2 Use of HHIP Grant Funding.

B.2.1 Contractor shall use the HHIP Grant funds to fund the Scope of Work identified in Exhibit B.

B.2.2 Contractor shall use the HHIP Grant funds solely for the purpose of funding the Scope of Work consistent with the Operational Budget for expenses detailed in Exhibit A.

Contractor shall not use the HHIP Grant funds for any other purpose without the prior written consent of the County.

B.2.3 Contractor shall be in compliance with all applicable Federal, State, and local laws, required to perform this Contract. Contractor shall be required to repay the County in the event of non -compliance with any applicable law if the County is required to repay any amount of funds to the State or Molina as a result of Contractor’s non-compliance.

B.2.4 Any costs to be paid for with HHIP Grant funds must be eligible uses consistent with HHIP.

HHIP Grant funds may not be used for costs associated with activities in violation of any law or for any activities not consistent with HHIP.

B.2.5 Contractor shall not use HHIP Grant funds to supplant any other funds provided by the County to the Contractor under any other agreement. The Contractor shall include a term in every subaward and contract that prohibits the subrecipient or contractor from using HHIP Grant funds to supplant funding provided by the County directly or indirectly to the subrecipient or contractor.

B.2.6 County reserves the right to request additional information and clarification to determine the reasonableness and eligibility of all costs to be paid with HHIP Grant funds made available by this Agreement. If Contractor uses the HHIP Grant funds to pay for ineligible activities, Contractor shall be required to reimburse these funds to the County within thirty (30) days of the request.

B.3 Conditions Precedent to HHIP Grant Disbursement

B.3.1 Disbursements may not exceed the amount of the HHIP Grant.

B.3.2 The County shall not be obligated to make any disbursements of the HHIP Grant or take any other action under the Agreement unless the following conditions precedent are satisfied:

B.3.2.1 There exists no Default nor any act, failure, omission, or condition that would constitute an event of Default under this Agreement;

B.3.2.2 Item intentionally left blank.

B.3.2.3 Contractor has executed and delivered to County all documents, and policies required under this Agreement;
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B.3.2.4 Contractor has furnished the County with evidence of insurance meeting the requirements under this Agreement;

B.3.2.5 The County has approved any necessary updates to the Scope of Work and Operational Budget, if necessary;

B.3.2.6 The County has received a written Draw Request, in the form attached as Exhibit E, from Contractor including (1) certification that the proposed use of funds is consistent with the approved Operational Budget; (2) the amount of funds needed, and (3) where applicable, a copy of the bill or invoice covering a cost incurred or to be incurred.

B.3.2.7 The County will make best efforts to fund Draw Requests within thirty (30) days from receipt of a complete Draw Request.

B.4 Intentionally left blank

B.5 Intentionally left blank

B.6 Schedule of Performance. Contractor shall perform the tasks described in the Scope of Work in Exhibit B no later than the end date of this Agreement.

B.7 Intentionally left blank

B.8 Progress Reports.

B.8.1 From the date of commencement until the termination of the contract, Contractor shall provide the County with monthly progress reports. The progress reports must include a certification that the expenditures submitted to the County meet HHIP eligible expenses requirements. The County shall have no obligation to advance or pay Contractor with any funds other than HHIP funds the County receives from Molina. Contractor attests that by submitting a monthly expenditures report to the County that Contractor has completed all due diligence necessary and verified eligibility for HHIP Grant funding.

Contractor shall be required to re-pay the County for non-eligible expenditures that may be inadvertently processed by the County.

B.8.2 The Contractor shall provide any information reasonably requested by the County in connection with the services.

B.9 Approved Operational Budget . As of the date of this Agreement, the County has approved the Operational Budget set forth in Exhibit A.

B.9.1 CONTRACTOR agrees that no changes shall be made to CONTRACTOR’s Operational Budget without first obtaining prior approval. No more than the amounts specified in EXHIBIT A – Operational Budget may be spent for the separate cost categories specified in the budget sum mary. Any changes to this Contract must be requested by CONTRACTOR in writing through Community Development and Housing (“CDH”).

Changes to EXHIBIT A – Operational Budget must be approved by the CDH Director.

B.9.2 Any budget amendments must be requested by the CONTRACTOR in writing at least 60 days before contract expiration.
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B.10 Compliance with Agreement. Contractor shall comply with the terms of this Agreement, and any breach by Contractor under the County Grant Documents shall be considered a Default under this Agreement.

B.11 Financial Accountings and Audits. During the Term, from time to time as reasonably requested by the County, Contractor shall make available for examination during normal business hours to County all books, accounts, reports, files, and other papers or property with respect to all matters covered by this Agreement, and shall permit County to audit, examine, and make excerpts or transcripts from such records. County may make audits of any conditions relating to this Agreement.

B.12 Information. Contractor shall provide any information reasonably requested by the County in connection with the HHIP Grant, including (but not limited to) any information required by Molina in connection with Contractor's use of the HHIP Grant funding.

B.13 Intentionally left blank.

B.14 Intentionally left blank.

B.15 Fees and Taxes. Contractor shall be solely responsible for payment of all fees, assessments, taxes, charges, and levies imposed by any public authority or utility company with respect to the Services to the extent owed by Contractor and shall pay such charges prior to delinquency.

However, Contractor shall not be required to pay and discharge any such charge so long as: (a) the legality thereof is being contested diligently and in good faith and by appropriate proceedings; and (b) if requested by the County, Contractor deposits with the County any funds or other forms of assurance that the County in good faith from time to time determines appropriate to protect the County from the consequences of the contest being unsuccessful.

B.16 Notice of Litigation. Contractor shall promptly notify the County in writing of any litigation materially affecting Contractor or the Services and of any claims or disputes that involve a material risk of such litigation.

B.17 Nondiscrimination. Contractor covenants by and for itself and its successors and assigns that there will be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age (except for lawful senior housing in accordance with state and federal law), familial status, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the property, nor may Contractor or any person claiming under or through Contractor establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, occupants, sublessees or vendees in the property.

B.18 Transfer. This Agreement is entered into solely for the purpose of funding Services for the Facility.

The Contractor recognizes that the qualifications and identity of Contractor are of particular concern to the County. The Contractor further recognizes that it is because of such qualifications and identity that the County is entering into this Agreement with the Contractor and that limited Transfers are permitted only as provided in this Agreement.

B.19 Hazardous Materials.

B.19.1 Contractor shall keep and maintain the Property in compliance with, and may not cause or permit the Property to be in violation of, any federal, state or local laws, ordinances or regulations relating to industrial hygiene or to the environmental conditions on, under or 111

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about the Property including, but not limited to, soil and ground water conditions.

Contractor may not use, generate, manufacture, store or dispose of on, under, or about the Property or transport to or from the Property any flammable explosives, radioactive materials, hazardous wastes, toxic substances or related materials, including without limitation, any substances defined as or included in the definition of "hazardous substances," "hazardous wastes," "hazardous materials," or "toxic substances" under any applicable federal or state laws or regulations (collectively referred to hereinafter as "Hazardous Materials") except such of the foregoing as may be customarily used in the provision of Services.

B.19.2 Contractor shall immediately advise the County in writing if at any time it receives written notice of (i) any and all enforcement, cleanup, removal or other government or regulatory actions instituted, completed or threatened against Contractor or the Property pursuant to any applicable federal, state or local laws, ordinances, or regulations relating to any Hazardous Materials, ("Hazardous Materials Law"); (ii) all claims made or threatened by any third party against Contractor or the Property relating to damage, contribution, cost recovery compensation, loss or injury resulting from any Hazardous Materials (the matters set forth in clauses (i) and (ii) above are hereinafter referred to as "Hazardous Materials Claims"); and (iii) Contractor's discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Property or any part thereof to be classified as "border-zone property" under the provision of California Health and Safety Code, Sections 25220 et seq., or any regulation adopted in accordance therewith, or to be otherwise subject to any restrictions on the ownership, occupancy, transferability or use of the Property under any Hazardous Materials Law.

B.19.3 The County has the right to join and participate in, as a party if it so elects, any legal proceedings or actions initiated in connection with any Hazardous Materials Claims and to have its reasonable attorneys' fees in connection therewith paid by Contractor.

Contractor shall indemnify and hold harmless the County and its board members, supervisors, directors, officers, employees, agents, successors and assigns from and against any loss, damage, cost, expense or liability directly or indirectly arising out of or attributable to the use, generation, storage, release, threatened release, discharge, disposal, or presence of Hazardous Materials on, under, or about the Property including without limitation: (i) all foreseeable consequential damages; (ii) the costs of any required or necessary repair, cleanup or detoxification of the Property and the preparation and implementation of any closure, remedial or other required plans; and (iii) all reasonable costs and expenses incurred by the County in connection with clauses (i) and (ii), including but not limited to reasonable attorneys' fees and consultant's fees.

This indemnification applies whether or not any government agency has issued a cleanup order. Losses, claims, costs, suits, liability, and expenses covered by this indemnification provision include, but are not limited to: (1) losses attributable to diminution in the value of the Property; (2) loss or restriction of use of rentable space on the Property; (3) adverse effect on the marketing of any rental space on the Property; and (4) penalties and fines levied by, and remedial or enforcement actions of any kind issued by any regulatory agency (including but not limited to the costs of any required testing, remediation, repair, removal, cleanup or detoxification of the Property and surrounding properties). This obligation to indemnify will survive termination of this Agreement.

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B.19.4 Contractor hereby acknowledges and agrees that (i) this Section is intended as the County's written request for information (and Contractor's response) concerning the environmental condition of the Property as required by California Code of Civil Procedure Section 726.5, and (ii) each representation and warranty in this Agreement (together with any indemnity obligation applicable to a breach of any such representation and warranty) with respect to the environmental condition of the Property is intended by the Parties to be an "environmental provision" for purposes of California Code of Civil Procedure Section 736.

B.20 Maintenance and Damage. During the course of this Agreement, Contractor shall maintain the Facility in good repair and in a neat, clean and orderly condition. If there arises a condition in contravention of this requirement, and if Contractor has not cured such condition within thirty (30) days after receiving a County notice of such a condition, then in addition to any other rights available to the County, the County has the right to perform all acts necessary to cure such condition.

C. GENERAL CONTRACT REQUIREMENTS

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

C.2 Contract Amendments
Contractor agrees any alterations, variations, modifications, or waivers of the provisions of the Contract, shall be valid only when reduced to writing, executed and attached to the original Contract and approved by the person(s) authorized to do so on behalf of Contractor and County.

C.3 Contract Assignability
Without the prior written consent of the County, the Contract is not assignable by Contractor either in whole or in part.

C.4 Contract Exclusivity
This is not an exclusive Contract. The County reserves the right to enter into a contract with other Contractors for the same or similar services. The County does not guarantee or represent that the Contractor will be permitted to perform any minimum amount of work, or receive compensation other than on a per order basis, under the terms of this Contract.

C.5 Attorney’s Fees and Costs
If any legal action is instituted to enforce any party’s rights hereunder, each party shall bear its own costs and attorney’s fees, regardless of who is the prevailing party. This paragraph shall not apply to those costs and attorney ’s fees directly arising from a third -party legal action against a party hereto and payable under Indemnification and Insurance Requirements.

C.6 Background Checks for Contractor Personnel
Contractor shall ensure that its personnel (a) are authorized to work in the jurisdiction in which they are assigned to perform Services; (d) do not use legal or illegal substances in any manner which will impa ct their ability to provide Services to the County ; and (c) are not otherwise disqualified from performing the Services under applicable law. If requested by the County and not in violation of applicable law, Contractor shall conduct a background check , at Contractor’s sole expense, on all its personnel providing Services. If requested by the County, Contractor shall provide the results of the background check of each individual to the County. Such background check shall be in the form generally used by Contractor in its initial hiring of employees or contracting for Contractors or, as applicable, during the employment-screening process but must, at a minimum, have been performed within the preceding 12-month period. Contractor personnel who do not meet the County’s hiring criteria, in County’s sole discretion, shall not be assigned to 113

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work on County property or Services, and County shall have the right, at its sole option, to refuse access to any Contract personnel to any County facility.

C.7 Change of Address
Contractor shall notify the County in writing, of any change in mailing address within ten (10) business days of the change.

C.8 Choice of Law
This Contract shall be governed by and construed according to the laws of the State of California.

C. 9 Compliance with County Policy
In performing the Services and while at any County facilities, Contractor personnel (including Subcontractors) shall (a) conduct themselves in a businesslike manner; (b) comply with the policies, procedures, and rules of the County regarding health and safety, and personal, professional and ethical conduct; (c) comply with the finance, accounting, banking, Intern et, security, and/or other applicable standards, policies, practices, processes, procedures, and controls of the County; and (d) abide by all laws applicable to the County facilities and the provision of the Services, and all amendments and modifications to each of the documents listed in subsections (b), (c), and (d) (collectively, “County Policies”). County Policies, and additions or modifications thereto, may be communicated orally or in writing to Contractor or Contractor personnel or may be made avail able to Contractor or Contractor personnel by conspicuous posting at a County facility, electronic posting, or other means generally used by County to disseminate such information to its employees or Contractors. Contractor shall be responsible for the promulgation and distribution of County Policies to Contractor personnel to the extent necessary and appropriate.

County shall have the right to require Contractor’s employees, agents, representatives and Subcontractors to exhibit identification credentials issued by County in order to exercise any right of access under this Contract.

C.10 Confidentiality
Contractor shall protect from unauthorized use or disclosure the names and other identifying information concerning persons receiving Services pursuant to this Contract, except for statistical information not identifying any participant. Contractor shall not use or disclose any identifying information for any purpose other than carrying out the Contractor's obligations under this Contract, except as may otherwise be required by law. This provision will remain in force even after the termination of the Contract.

C.11 Primary Point of Contact
Contractor will designate an individual to serve as the primary point of contact for the Contract.

Contractor or designee must respond to County inquiries within two (2) business days. Contractor shall not change the primary contact without written acknowledgement to the County. Contractor will also designate a back-up point of contact in the event the primary contact is not available.

C.12 County Representative
The Director of Community Development and Housing (“CDH”) or his/her designee shall represent the County in all matters pertaining to the services to be rendered under this Contract, including termination and assignment of this Contract, and shall be the final authority in all matters pertaining to the Services/Scope of Work by Contractor. If this contract was initially approved by the San Bernardino County Board of Supervisors, then the Board of Supervisors must approve all amendments to this Contract.

C.13 Damage to County Property
Contractor shall repair, or cause to be repaired, at its own cost, all damages to County vehicles, facilities, buildings or grounds caused by the willful or negligent acts of Contractor or its employees 114

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or agents. Such repairs shall be made immediately after Contractor becomes aware of such damage, but in no event later than thirty (30) days after the occurrence. If the Contractor fails to make timely repairs, the County may make any necessary repairs. The Contractor, as determined by the County, shall repay all costs incurred by the County for such repairs, by cash payment upon demand, or County may deduct such costs from any amounts due to the Contractor from the County, as determined at the County’s sole discretion.

C. 14 Debarment and Suspension
Contractor certifies that neither it nor its principals o r Subcontractors is presently debarred , suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any federal department or agency. (See the following United States General Services Administration’s System for Award Management website https://www.sam.gov).

Contractor further certifies that if it or any of its Subcontractors are business entities that must be registered with the California Secretary of State, they are registered and in good standing with the Secretary of State.

C.15 Drug and Alcohol-Free Workplace
In recognition of individual ri ghts to work in a safe, healthful and productive workplace, as a material condition of this Contract, the Contractor agrees that the Contractor and the Contractor’s employees, while performing service for the County, on County property, or while using County equipment:

C.15.1 Shall not be in any way impaired bec ause of being under the influence of alcohol or an illegal or controlled substance.

C.15.2 Shall not possess an open container of alcohol or consume alcohol or possess or be under the influence of an illegal or controlled substance.

C.15.3 Shall not sell, offer, or provide alcohol or an illegal or controlled substance to another person, except where Contractor or Contractor’s employee who, as part of the performance of normal job duties and responsibilities, prescribes or administers medically prescribed drugs.

The Contractor shall inform all employees that are performing service for the County-on-County property, or using County equipment, of the County’s objective of a safe, healthful and productive workplace and the prohibition of drug or alcohol use or impairment from same while performing such service for the County.

The County may terminate for def ault or breach of this Contract and any other Contract the Contractor has with the County, if the Contractor or Contractor’s employees are determined by the County not to be in compliance with above.

C.16 Duration of Terms
This Contract, and all of its t erms and conditions, shall be binding upon and shall inure to the benefit of the heirs, executors, successors, and assigns of the respective parties, provided no such assignment is in violation of the provisions of this Contract.

C.17 Employment Discrimination
During the term of the Contract, Contractor shall not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, sexual orientation, age, or military and veteran status.

Contractor shall comply with Executive Orders 11246, 11375, 11625, 12138, 12432, 12250, 13672, Title VI and Title VII of the Civil Rights Act of 1964, the California Fa ir Employment and Housing Act and other applicable Federal, State and County laws and regulations and policies 115

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relating to equal employment and contracting opportunities, including laws and regulations hereafter enacted.

C.18 Environmental Requirements
In accordance with County Policy 11 -08, the County prefers to acquire and use products with higher levels of post-consumer recycled content. Environmentally preferable goods and materials must perform satisfactorily and be available at a reasonable price. The County requires Contractor to use recycled paper for any printed or photocopied material created as a result of this Contract. Contractor is also required to use both sides of paper sheets for reports submitted to the County whenever practicable.

To assist the county in meeting the reporting requirements of the California Integrated Waste Management Act of 1989 (AB 939), Contractor must be able to annually report the County’s environmentally preferable purchases. Contractor must also be able to report on environmentally preferable goods and materials used in the provision of their service to the County, utilizing a County approved form.

C.19 Improper Influence
Contractor shall make all reasonable efforts to ensure that no County officer or employee, whose position in the County enables him/her to influence any award of the Contract or any competing offer, shall have any direct or indirect financial interest resulting from the award of the Contract or shall have any relationship to the Contractor or officer or employee of the Contractor.

C.20 Improper Consideration
Contractor shall not offer (either directly or through an intermediary) any improper consideration such as, but not limited to cash, discounts, service, the provision of travel or entertainment, or any items of value to any officer, employee or agent of the County i n an attempt to secure favorable treatment regarding this Contract.

The County, by written notice, may immediately terminate this Contract if it determines that any improper consideration as described in the preceding paragraph was offered to any officer, employee or agent of the County with respect to the proposal and award process. This prohibition shall apply to any amendment, extension or evaluation process once a contract has been awarded.

Contractor shall immediately report any attempt by a County officer, employee or agent to solicit (either directly or through an intermediary) improper consideration from Contractor. The report shall be made to the supervisor or manager charged with supervision of the employee or the County Administrative Office. In the event of a termination under this provision, the County is entitled to pursue any available legal remedies.

C.21 Informal Dispute Resolution
In the event the County determines that service is unsa tisfactory, or in the event of any other dispute, claim, question or disagreement arising from or relating to this Contract or breach thereof, the parties hereto shall use their best efforts to settle the dispute, claim, question or disagreement.

To this effect, they shall consult and negotiate with each other in good faith and, recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties.

C.22 Legality and Severability
The parties’ actions under the Con tract shall comply with all applicable laws, rules, regulations, court orders and governmental agency orders. The provisions of this Contract are specifically made severable. If a provision of the Contract is terminated or held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall remain in full effect.

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C.23 Licenses, Permits and/or Certifications
Contractor shall ensure that it has all necessary licenses, permits and/or certifications required by the laws of Federal, State, County, and municipal laws, ordinances, rules and regulations. The Contractor shall maintain these licenses, permits and/or certifications in effect for the duration of this Contract. Contractor will notify County immediately of loss or suspension of any such licenses, permits and/or certifications. Failure to maintain a required license, permit and/or certification may result in immediate termination of this Contract.

C.24 Material Misstatement/Misrepresentation
If during the course of the administration of this Contract, the County determines that Contractor has made a material misstatement or misrepresentation or that materially inaccurate information has been provided to the County, this Contract may be immediately terminated. If this Contract is terminated according to this provision, the County is entitled to pursue any available legal remedies.

C.25 Mutual Covenants
The parties to this Contract mutually covenant to perform all of their obligations hereunder, to exercise all discretion and rights granted hereunder, and to give all consents in a reasonable manner consistent with the standards of “good faith” and “fair dealing”.

C.26 Nondisclosure
Contractor shall hold as confidential and use reasonable care to prevent unauthorized access by, storage, disclosure, publication, dissemination to and/or use by third parties of, confidential information that is either: (1) provided by the County to Contractor or an agent of Contractor or otherwise made available to Contractor or Contractor’s agent in connection with this Contract; or, (2) acquired, obtained, or learned by Contractor or an agent of Contractor in the performance of this Contract. For purposes of this provision, confidential information means any data, files, software, information or materials in oral, electronic, tangible or intangible form and however stored, compiled or memorialize and includes, but is not limited to, technology infrastructure, architecture, financial data, trade secrets, equipment specifications, user lists, passwords, research data, and technology data.

C.27 Notice of Delays
Except as otherwise provided herein, when either party has knowledge that any actual or potential situation is delaying or threatens to delay the timely performance of this contract, that party shall, within twenty-four (24) hours, give notice thereof, including all relevant information with respect thereto, to the other party.

C.28 Ownership of Documents
All documents, data, products, graphics, computer programs and reports prepared by Contractor pursuant to the Contract shall be considered property of the County upon payment for services (and products, if applicable). All such items shall be delivered to County at the completion of work under the Contract, subject to the requirements of Section D – Term of Contract. Unless otherwise directed by County, Contractor may retain copies of such items.

C.29 RESERVED

C.30 Air, Water Pollution Control, Safety and Health
Contractor shall comply with all air pollution control, water pollution, safety and health ordinances and statutes, which apply to the work performed pursuant to this Contract.

C.31 Records
Contractor shall maintain all records and books pertaining to the delivery of services under this Contract and demonstrate accountability for contract performance. All records shall be complete and current and comply with all Contract requirements. Failure to maintain a cceptable records 117

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shall be considered grounds for withholding of payments for invoices submitted and/or termination of the Contract.

All records relating to the Contractor’s personnel, consultants, Subcontractors, Services/Scope of Work and expenses pertaining to this Contract shall be kept in a generally acceptable accounting format. Records should include primary source documents. Fiscal records shall be kept in accordance with Generally Accepted Accounting Principles and must account for all funds, tangible assets, revenue and expenditures. Fiscal records must comply with the appropriate Office of Management and Budget (OMB) Circulars, which state the administrative requirements, cost principles and other standards for accountancy. The CONTRACTOR shall retain all documentation related to the services provided and all financial records associated with this Agreement for a period of five (5) years following the termination of this contract.

C.32 Relationship of the Parties
Nothing contained in this Contract shall be construed as creating a joint venture, partnership, or employment arrangement between the Parties hereto, nor shall either Party have the right, power or authority to create an obligation or duty, expressed or implied, on behalf of the ot her Party hereto.

C.33 Release of Information
No news releases, advertisements, public announcements or photographs arising out of the Contract or Contractor’s relationship with County may be made or used without prior written approval of the County.

C.34 Representation of the County
In the performance of this Contract, Contractor, its agents and employees, shall act in an independent capacity and not as officers, employees, or agents of the San Bernardino County.

C.35 Strict Performance
Failure by a party to insist upon the strict performance of any of the provisions of this Contract by the other party, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such party’s right to insist and demand strict compliance by the other party with the terms of this Contract thereafter.

C.36 Subcontracting
Contractor shall obtain County’s written consent, which County may withhold in its sole discretion, before entering into Contracts with or otherwise engaging any Subcontractors who may supply any part of the Services to County. At County’s request, Contractor shall provide information regarding the Subcontractor’s qualifications and a listing of a Subcontractor’s key perso nnel including, if requested by the County, resumes of proposed Subcontractor personnel. Contractor shall remain directly responsible to County for its Subcontractors and shall indemnify County for the actions or omissions of its Subcontractors under the terms and conditions specified in Section G. All approved Subcontractors shall be subject to the provision s of this Contract applicable to Contractor Personnel.

For any Subcontractor, Contractor shall:

36.1 Be responsible for Subcontractor compliance with the Contract and the subcontract terms and conditions; and

36.2 Ensure that the Subcontractor follows County’s reporting formats and procedures as specified by County.

36.3 Include in the Subcontractor’s subcontract substantially similar terms as are provided in Sections B. CONTRACTOR RESPONSIBILITIES and C. GENERAL CONTRACT REQUIREMENTS.

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Upon expiration or termination of this Contract for any reason, County will have the right to enter into direct Contracts with any of the Subcontractors. Contractor agrees that its arrangements with Subcontractors will not prohibit or restrict such Subcontractors from entering into direct Contracts with County.

C. 37 Subpoena
In the event that a subpoena o r other legal process commenced by a third party in any way concerning the Goods or Services provided under this Contract is served upon Contractor or County, such party agrees to notify the other party in the most expeditious fashion possible following receipt of such subpoena or other legal process. Contractor and County further agree to cooperate with the other party in any lawful effort by such other party to contest the legal validity of such subpoena or other legal process commenced by a third party as may be reasonably required and at the expense of the party to whom the legal process is directed, except as otherwise provided herein in connection with defense obligations by Contractor for County.

C.38 Termination for Convenience
The County reserves the right to terminate the Contract, for its convenience, with or without cause, with a thirty (30) day written notice of termination. Such termination may include all or part of the services described herein. Upon such termination, payment will be made to the Contractor for services rendered and expenses reasonably incurred prior to the effective date of termination.

Upon receipt of termination notice Contractor shall promptly discontinue services unless the notice directs otherwise. Contractor shall deliver promptly to County and transfer title (if necessary) all completed work, and work in progress, including drafts, documents, plans, forms, data, products, graphics, computer programs and reports.

C.39 Time of the Essence
Time is of the essence in performance of this Contract and of each of its provisions.

C.40 Venue
The parties acknowledge and agree that this Contract was entered into and intended to be performed in San Bernardino County, California. The parties agree that the venue of any action or claim brought by any party to this Contract will be the Superior Court of California, San Bernardino County, San Bernardino District. Each party hereby waives any law or rule of the court, which would allow them to request or demand a change of venue. If any action or claim concerning this Contract is brought by any third party and filed in another venue, the parties hereto agree to use their best efforts to obtain a change of venue to the Superior Court of California, San Bernardino County, San Bernardino District.

C.41 Conflict of Interest
Contractor shall make all reasonable efforts to ensure that no conflict of interest exists between its officers, employees, or Subcontractors and the County. Contractor shall make a reasonable effort to prevent employees, Contractor, or members of governing bodies from using their positions for purposes that are, or give the appearance of being, motivated by a desire for private gain for themselves or others such as those with whom they have family business, or other ties.

Officers, employees, and agents of cities, counties, districts, and other local agencies are subject to applicable conflict of interest codes and state law. In the event the County determines a conflict-of-interest situation exists, any increase in costs, associated with the conflict of interest situation, may be disallowed by the County and such conflict may constitute grounds for termination of the Contract. This provision shall not be construed to prohibit employment of persons with whom Contractor’s officers, employees, or agents have family, business, or other ties so long as the employment of such persons does not result in increased costs over those associated with the employment of any other equally qualified applicant.

C.42 Former County Administrative Officials
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Contractor agrees to provide, or has already provided , information on former San Bernardino County administrative officials (as defined below) who are employed by or represent Contractor.

The information provided includes a list of former County administrative officials who terminated County employment within the last five years and who are now officers, principals, partners, associates or members of the business. The information a lso includes the employment with or representation of Contractor. For purposes of this provision, “County administrative official” is defined as a member of the Board of Supervisors or such officer’s staff, County Executive Officer or member of such offic er’s staff, County department or group head, assistant department or group head, or any employee in the Exempt Group, Management Unit or Safety Management Unit.

C.43 Disclosure of Criminal and Civil Procedures
The County reserves the right to request the information described herein from the Contractor.

Failure to provide the information may result in a termination of the Contract . The County also reserves the right to obtain the requested information by way of a background check performed by an investigative firm. The Contractor also may be requested to provide information to clarify initial responses. Negative information discovered may result in Contract termination.

Contractor is required to disclose whether the firm, or any of its partners, principals, members, associates or key employees (as that term is defined herein), within the last ten years, has been indicted on or had charges brought against it or them (if still pending) or convicted of any crime or offense arising directly or indirectly from the conduct of the firm’s business, or whether the firm, or any of its partners, principals, members, associates or key employees, has within the last ten years, been indicted on or had charges brought against it or them (if still pending) or convicted of any crime or offense involving financial misconduct or fraud. If the response is affirmative, the Contractor will be asked to describe any such indictments or charges (and the status thereof), convictions and the surrounding circumstances in detail.

In addition, the Contractor is required to disclose whether the firm, or any of its partners, principals, members, associates or key employees, within the last ten years, has been the subject of legal proceedings as defined herein arising directly from the provision of services by the firm or those individuals. “Legal proceedings” means any civil actions filed in a court of competent jurisdiction, or any matters filed by an administrative or regulatory body with jurisdiction over the firm or the individuals. If the response is affirmative, the Contractor will be asked to describe any such legal proceedings (and the status and disposition thereof) and the surrounding circumstances in detail.

For purposes of this provision “key employees” includes any individuals providing direct service to the County. “Key employees” do not include clerical personnel providing service at the firm’s offices or locations.

C.44 Authority of Contractor.

Contractor warrants and represents to the County that it is a duly organized, validly existing California municipality and has the authority to own its property and carry on its business as now being conducted. Contractor warrants and represents that it has the full power to execute and deliver this Agreement and to accept the HHIP Grant funds contemplated hereunder, and to perform and observe the terms and provisions of the Agreement.

C.45 Force Majeure.
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In addition to specific provisions of this Agreement, performance by either Party shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lock -outs; riots; floods; earthquakes; fires; quarantine restrictions; or court order; or any other similar causes beyond the control or without the fault of the Party claiming an extension of time to perform. An extension of time for any cause will be deemed granted if notice by the Party claiming such extension is sent to the other within ten (10) days from the commencement of the cause and such extension of time is not rejected in writing by the other Party within ten (10) days of receipt of the notice. In no event shall the County be required to agree to cu mulative delays in excess of one hundred eighty (180) days.

C.46 Iran Contracting Act
IRAN CONTRACTING ACT OF 2010, Public Contract Code sections 2200 et seq. (Applicable for all Contracts of one million dollars ($1,000,000) or more). In accordance with Public Contract Code section 2204(a), the Contractor certifies that at the time the Contract is signed, the Contractor signing the Contract is not identified on a list created pursuant to subdivision (b) of Public Contract Code section 2 203 as a person (as defined in Public Contract Code section 2202(e)) engaging in investment activities in Iran described in subdivision (a) of Public Contract Code section 2202.5, or as a person described in subdivision (b) of Public Contract Code section 2202.5, as applicable.

Contractors are cautioned that making a false certification may subject the Contractor to civil penalties, termination of existing contract, and ineligibility to bid on a contract for a period of three (3) years in accordance with Public Contract Code section 2205.

C.47 RESERVED

C.48 Non-Liability of County Officials, Employees and Agents.

No member, official, employee or agent of the County shall be personally liable to Contractor in the event of any default or breach by the County.

C.49 Executive Order N-6-22 Russia Sanctions
March 4, 2022, Governor Gavin Newsom issued Executive Order N -6-22 (the EO) regarding Economic Sanctions against Russia and Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S. government in response to Russia’s actions in Ukraine (https://home.treasury.gov/policy-issues/financial-sanctions/sanctions-programs-and-country- information/ukraine-russia-related-sanctions), as well as any sanctions imposed under state law (https://www.dgs.ca.gov/OLS/Ukraine-Russia). The EO directs state agencies and their Contractors (including by agreement or receipt of a grant) to terminate contracts with, and to refrain from entering any new contracts with, individuals or entities that are determined to be a target of Economic Sanctions. Accordingly, should it be determined that Contractor is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for termination of this agreement. Contractor shall be provided advance written notice of such termination, allowing Contractor at least 30 calendar days to provide a written response. Termination shall be at the sole discretion of the County.

D. TERM OF CONTRACT

This Contract is effective as of April 8, 2025 and expires April 7, 2027, but may be terminated earlier in accordance with provisions of this Agreement.

E. DEFAULT AND REMEDIES.

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E.1 Events of Default. Each of the following shall constitute a “Default” by Contractor under this Agreement:

E.1.1 Failure to Comply with the HHIP Grant Agreement. Failure of Contractor to comply with the HHIP Grant Agreement, subject to all applicable notice and cure righ ts provided therein.

E.1.2 Breach of Covenants. Failure by Contractor to duly perform, comply with, or observe any of the conditions, terms, or covenants of this Agreement, and such failure having continued uncured for thirty (30) days after receipt of written notice thereof from the County to the Contractor, or if the breach cannot be cured within thirty (30) days, the Contractor shall not be in breach so long as Contractor is diligently undertaking to cure such breach and such breach is cured within ni nety (90) days or such other date agreed to by the County in writing at its sole and absolute discretion; provided, however, that if a different period or notice requirement is specified under any other section of this Section E, the specific provisions shall control.

E.1.3 Insolvency. A court having jurisdiction shall have made or entered any decree or order:
(1) adjudging Contractor to be bankrupt or insolvent; (2) approving as properly filed a petition seeking reorganization of Contractor or seeking any arrangement for Contractor under the bankruptcy law or any other applicable debtor's relief law or statute of the United States or any state or other jurisdiction; (3) appointing a receiver, trustee, liquidator, or assignee of Contractor in bankruptcy or insolvency or for any of thei r properties; or (4) directing the winding up or liquidation of Contractor if any such decree or order described in clauses (1) to (4), inclusive, shall have continued unstayed or undischarged for a period of ninety (90) days; or Contractor shall have admitted in writing its inability to pay its debts as they fall due or shall have voluntarily submitted to or filed a petition seeking any decree or order of the nature described in clauses (1) to (4), inclusive.

E.1.4 Assignment; Attachment. Contractor shall have assigned its assets for the benefit of its creditors or suffered a sequestration or attachment of or execution on any substantial part of its property, unless the property so assigned, sequestered, attached or executed upon shall have been returned or released within ninety (90) days after such event or, if sooner, prior to sale pursuant to such sequestration, attachment, or execution.

E.1.5 Suspension; Termination. Contractor shall have suspended its operation of the Facility.

E.1.6 Intentionally Left Blank.

E.1.7 Condemnation. The condemnation, seizure, or appropriation of all or the substantial part of the Property, by an entity other than the County.

E.1.8 Unauthorized Transfer. Any Transfer other than as permitted by Section B.18.

E.1.9 Representation or Warranty Incorrect. Any Contractor representation or warranty contained in this Agreement, or in any application, financial statement, certificate, or report submitted to the County in connection with this Agreement, proving to have inco rrect in any material respect when made and having a material adverse effect on the Facility

E.2 Remedies. The occurrence of any Default hereunder following the expiration of all applicable notice and cure periods will, either at the option of the County or automatically where so specified, relieve the County of any obligation to make or continue the HHIP Grant and shall give the County the right to proceed with any and all remedies in law or equity, including suit for recovery of any HHIP Grant funds which Contractor has not utilized in compliance with this Agreement:

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E.2.1 Repayment of HHIP Grant. The County may demand Contractor repay any portion of the HHIP Grant, pursuant to Section B.3. above, together with any accrued interest thereon, to become immediately due and payable. Contractor waives all right to presentment, demand, protest or notice of protest or dishonor. Contractor is liable to pay the County on demand all reasonable expenses, costs and fees (including, without limitation, reasonable attorneys’ fees) paid or incurred by the County in connection with the repayment of the HHIP Grant.

E.2.2 Specific Performance. The County has the right to mandamus or other suit, action or proceeding at law or in equity to require Contractor to perform its obligations and covenants under this Agreement or to enjoin acts on things that may be unlawful or in violation of the provisions of this Agreement.

E.3 Right of Contest. Contractor shall have the right to contest in good faith any claim, demand, levy, or assessment the assertion of which would constitute a Default hereunder. Any such contest shall be prosecuted diligently and in a manner unprejudicial to the County or the rights of the County hereunder.

E.4. Remedies Cumulative. No right, power, or remedy given to the County by the terms of this Agreement is intended to be exclusive of any other right, power, or remedy; and each and every such right, power, or remedy shall be cumulative and in addition to every other right, power, or remedy given to the County by the terms of any such instrument, or by any statute or otherwise against Contractor and any other person. Neither the failure nor any delay on the pa rt of the County to exercise any such rights and remedies shall operate as a waiver thereof, nor shall any single or partial exercise by the County of any such right or remedy preclude any other or further exercise of such right or remedy, or any other right or remedy.

F. COUNTY RESPONSIBILITIES

F.1 CDH shall provide technical assistance to Contractor.

F.2 CDH shall participate in evaluating the progress of the overall program.

F.3 CDH shall monitor Contractor on a regular basis in regard to compliance with contractual requirements.

G. FISCAL PROVISIONS
G.1 County shall pay Contractor upon contract execution for the services to be performed, products provided, or expenses incurred in accordance with EXHIBIT B SCOPE OF WORK. One hundred percent (100%) of HHIP funds allocated to Contractor, pursuant to this Contract, shall be expended by April 7, 2027 (“Disbursement Deadline”).

G.2 The maximum amount under this Agreement shall not exceed $500,000, all of which is funded by an allocation of Housing and Homelessness Incentive Program funds from Molina Healthcare Plan, a California health plan organization.

G.3 Contractor shall accept the funds from County via check or wire transfer directly deposited into the Contractor’s designated checking or other bank account. Contractor shall promptly comply with directions and accurately complete forms provided by County required to process payment.

G.4 Contractor shall accept all payments from County via check or wire transfer directly deposited into the Contractor’s designated checking or other bank account. Contractor shall promptly comply with directions and accurately complete forms provided by County required to process payments. 123

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G.5 Funds made available under this Agreement shall not supplant any federal, state or any governmental funds intended for services of the same nature as this Agreement. Contractor shall not claim reimbursement or payment from County for, or apply sums received from County with respect to that portion of its obligations that have been paid by another source of revenue.

Contractor agrees that it will not use funds received pursuant to this Agreement, either directly or indirectly, as a contribution or compensation for purposes of obtaining funds from another revenue source without prior written approval of the County.

H. INDEMNIFICATION AND INSURANCE REQUIREMENTS

H.1 Indemnification
The Contractor agrees to indemnify, defend (with counsel reasonably approved by County) and hold harmless the County and its authorized officers, employees, agents and volunteers from any and all claims, actions, losses, damages and/or liability arising out of this Contract from any cause whatsoever, including the acts, errors or omissions of any person and for any costs or expenses incurred by the County on account of any claim except where such indemnification is prohibited by law. This indemnificatio n provision shall apply regardless of the existence or degree of fault of indemnitees. The Contractor indemnification obligation applies to the County’s “active” as well as “passive” negligence but does not apply to the County’s “sole negligence” or “will ful misconduct” within the meaning of Civil Code section 2782.

H.2 Insurance
County and Contractor are authorized self -insured or partially self -insured public entities for purposes of Professional Liability, General Liability, Automobile Liability and Worker's Compensation and warrant that through their respective programs of self -insurance and insurance, they have adequate coverage or resources to protect against liabilities arising out of performance of the terms, conditions or obligations of this Agreement.

All policies, except for Worker’s Compensation, Errors and Omissions and Professional Liability policies shall contain additional endorsements naming the County and its officers, employees, agents and volunteers as additional named insured with re spect to liabilities arising out of the performance of services hereunder. The additional insured endorsements shall not limit the scope of coverage for the County to vicarious liability but shall allow coverage for the County to the full extent provided by the policy. Such additional insured coverage shall be at least as broad as Additional Insured (Form B) endorsement form ISO, CG 2010.11 85.

H.3 Waiver of Subrogation Rights
The Contractor shall require the carriers of required coverages to waive all rights of subrogation against the County, its officers, employees, agents, volunteers, Contractors and Subcontractors.

All general or auto liability insurance coverage provided shall not prohi bit the Contractor and Contractor’s employees or agents from waiving the right of subrogation prior to a loss or claim.

The Contractor hereby waives all rights of subrogation against the County.

H.4 Policies Primary and Non-Contributory
All policies req uired herein are to be primary and non -contributory with any insurance or self - insurance programs carried or administered by the County.

H.5 Severability of Interests
The Contractor agrees to ensure that coverage provided to meet these requirements is applicable separately to each insured and there will be no cross-liability exclusions that preclude coverage for suits between the Contractor and the County or between the County and any other insured or additional insured under the policy.

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H.6 Proof of Coverage
The Contractor shall furnish Certificates of Insurance to the County Department administering the Contract evidencing the insurance coverage at the time the Contract is execute d, additional endorsements, as required shall be provided prior to the commencement of performance of services hereunder, which certificates shall provide that such insurance shall not be terminated or expire without thirty (30) days written notice to the Department, and Contractor shall maintain such insurance from the time Contractor commences performance of services hereunder until the completion of such services. Within fifteen (15) days of the commencement of this contract, the Contractor shall furnish a copy of the Declaration page for all applicable policies and will provide complete certified copies of the policies and endorsements immediately upon request.

H.7 Acceptability of Insurance Carrier
Unless otherwise approved by Risk Management, insura nce shall be written by insurers authorized to do business in the State of California and with a minimum “Best” Insurance Guide rating of “A- VII”.

H.8 Deductibles and Self-Insured Retention
Any and all deductibles or self -insured retentions in excess of $10,000 shall be declared to and approved by Risk Management.

H.9 Failure to Procure Coverage
In the event that any policy of insurance required under this contract does not comply with the requirements, is not procured, or is canceled and not replaced, the County has the right but not the obligation or duty to cancel the contract or obtain insurance if it deems necessary and any premiums paid by the County will be promptly reimbursed by the Contractor or County payments to the Contractor will be reduced to pay for County purchased insurance.

H.10 Insurance Review
Insurance requirements are subject to periodic review by the County. The Director of Risk Management or designee is authorized, but not required, to reduce, waive or suspend an y insurance requirements whenever Risk Management determines that any of the required insurance is not available, is unreasonably priced, or is not needed to protect the interests of the County. In addition, if the Department of Risk Management determines that heretofore unreasonably priced or unavailable types of insurance coverage or coverage limits become reasonably priced or available, the Director of Risk Management or designee is authorized, but not required, to change the above insurance requirements to require additional types of insurance coverage or higher coverage limits, provided that any such change is reasonable in light of past claims against the County, inflation, or any other item reasonably related to the County’s risk.

Any change requiring additional types of insurance coverage or higher coverage limits must be made by amendment to this contract. Contractor agrees to execute any such amendment within thirty (30) days of receipt.

Any failure, actual or alleged, on the part of the County to monitor or enforce compliance with any of the insurance and indemnification requirements will not be deemed as a waiver of any rights on the part of the County.

H.11 The Contractor agrees to provide insurance set forth in accordance with the requirements herein.

If the Contractor uses existing coverage to comply with these requirements and that coverage does not meet the specified requirements, the Contractor agrees to amend, suppl ement or endorse the existing coverage to do so.

Without in anyway affecting the indemnity herein provided and in addition thereto, the Contractor shall secure and maintain throughout the contract term the following types of insurance with limits as shown:
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H.11.1 Workers’ Compensation/Employer’s Liability – A program of Workers’ Compensation insurance or a state-approved, self-insurance program in an amount and form to meet all applicable requirements of the Labor Code of the State of California, includin g Employer’s Liability with $250,000 limits covering all persons including volunteers providing services on behalf of the Contractor and all risks to such persons under this contract.

If Contractor has no employees, it may certify or warrant to the County that it does not currently have any employees or individuals who are defined as “employees” under the Labor Code and the requirement for Workers’ Compensation coverage will be waived by the County’s Director of Risk Management.

With respect to Contractors that are non-profit corporations organized under California or Federal law, volunteers for such entities are required to be covered by Workers’ Compensation insurance.

H.11.2 Commercial/General Liability Insurance – The Contractor shall carry General Liability Insurance covering all operations performed by or on behalf of the Contractor providing coverage for bodily injury and property damage with a combined single limit of not less than one million dollars ($1,000,000), per occurr ence. The policy coverage shall include:
a. Premises operations and mobile equipment.
b. Products and completed operations.
c. Broad form property damage (including completed operations). d. Explosion, collapse and underground hazards.
e. Personal injury.
f. Contractual liability.
g. $2,000,000 general aggregate limit.

H.11.3 Automobile Liability Insurance – Primary insurance coverage shall be written on ISO Business Auto coverage form for all owned, hired and non -owned automobiles or symbol 1 (any auto). The policy shall have a combined single limit of not less than one million dollars ($1,000,000) for bodily injury and property damage, per occurrence.

If the Contractor is transporting one or more non -employee passengers in performance of contract services, the automobile liability policy shall have a combined single limit of two million dollars ($2,000,0 00) for bodily injury and property damage per occurrence.

If the Contractor owns no autos, a non -owned auto endorsement to the General Liability policy described above is acceptable.

H.11.4 Umbrella Liability Insurance – An umbrella (over primary) or exc ess policy may be used to comply with limits or other primary coverage requirements. When used, the umbrella policy shall apply to bodily injury/property damage, personal injury/advertising injury and shall include a “dropdown” provision providing primary coverage for any liability not covered by the primary policy. The coverage shall also apply to automobile liability.

H.11.5 Professional Liability – Professional Liability Insurance with limits of not less than one million ($1,000,000) per claim and two million ($2,000,000) aggregate limits or

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Errors and Omissions Liability Insurance – Errors and Omissions Liability Insurance with limits of not less than one million ($1,000,000) and two million ($2,000,000) aggregate limits
or

Directors and Officers Insurance coverage with limits of not less than one million ($1,000,000) shall be required for Contracts with charter labor committees or other not-for-profit organizations advising or acting on behalf of the County.

If insurance coverage is provided on a “claims made” policy, the “retroactive date” shall be shown and must be before the date of the state of the contract work. The claims made insurance shall be maintained or “tail” coverage provided for a minimum of five (5) years after contract completion.

H.11.6 Reserved

H.11.7 Cyber Liability Insurance - Cyber Liability Insurance with limits of no less than $1,000,000 for each occurrence or event with an annual aggregate of $2,000,000 covering privacy violations, information theft, damage to or destruction of electronic information, intentional and/or unintentional release of private information, alteration of electronic information, extortion and network security. The policy shall protect the involved County entities and cov er breach response cost as well as regulatory fines and penalties.

Abuse/Molestation Insurance – Contractor shall have abuse or molestation insurance providing coverage for all employees for the actual or threatened abuse or molestation by anyone of any p erson in the care, custody, or control of any insured, including negligent employment, investigation and supervision. The policy shall provide coverage for both defense and indemnity with liability limits of not less than one million dollars ($1,000,000) with a two million dollars ($2,000,000) aggregate limit.

I. RIGHT TO MONITOR AND AUDIT

I.1 The County, shall have absolute right to review and audit all records, books, papers, documents, corporate minutes, and other pertinent items as requested, and shall have absolute right to monitor the performance of Contractor in the delivery of services p rovided under this Contract.

Contractor shall give full cooperation, in any auditing or monitoring conducted. Contractor shall cooperate with the County in the implementation, monitoring, and evaluation of this Contract and comply with any and all reporting requirements established by the County.

I.2 All records pertaining to services delivered and all fiscal, statistical and management books and records shall be available for examination and audit by County representatives for a period of five years after final payment under this Contract or until all pending County, State and Federal audits are completed, whichever is later.

J. CORRECTION OF PERFORMANCE DEFICIENCIES

J.1 Failure by Contractor to comply with any of the provisions, covenants, requirements or conditions of this Contract shall be a material breach of this Contract.

J.2 In the event of a non-cured breach, County may, at its sole discretion and in addition to any other remedies available at law, in equity, or otherwise specified in this Contract:
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b. Discontinue reimbursement to Contractor for and during the period in which Contractor is in breach, which reimbursement shall not be entitled to later recovery; and/or c. Withhold funds pending duration of the breach; and/or d. Offset against any monies billed by Contractor but yet unpaid by County those monies disallowed pursuant to Item “b” of this paragraph; and/or e. Terminate this Contract immediately and be relieved of the payment of any consideration to Contractor. In the event of such termination, the County may proceed with the work in any manner deemed proper by the County. The cost to the County shall be deducted from any sum due to the Contractor under this Contract and the balance, if any, shall be paid by the Contractor upon demand.
f. Require repayment of the HHIP grant for any ineligible expenditures.

K. NOTICES

All written notices provided for in this Contract or which either party desires to give to the other shall be deemed fully given, when made in writing and either served personally, or by facsimile, or deposited in the United States mail, postage prepaid, and addressed to the other party as follows:

San Bernardino County
Community Development and Housing
560 E. Hospitality Lane, Suite 200
San Bernardino, CA 62415-0043
Attn: Director

City of Fontana
8353 Sierra Ave.

Fontana, CA 92335
Attn: Matthew C. Ballantyne, City Manager

with copy to: Best, Best & Krieger, LLP
2855 E. Guasti Rd., Suite 400
Ontario, CA 91761
Attn: Ruben Duran, City Attorney

Notice shall be deemed communicated two (2) County working days from the time of mailing if mailed as provided in this paragraph.

L. ENTIRE AGREEMENT

This Contract, including all Exhibits and other attachments, which are attached hereto and incorporated by reference, and other documents incorporated herein, represents the final, complete and exclusive agreement between the parties hereto. Any prior agreement, promises, negotiations or representations relating to the subject matter of this Contract not expressly set forth herein are of no force or effect. This Contract is executed without reliance upon any promise, warranty or representation by any party or any representative of any party other than those expressly contained herein. Each party has carefully read this Contract and signs the same of its own free will.

M. ELECTRONIC SIGNATURES

This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, and such counterparts shall together constitute one and the same Agreement. The parties shall be entitled to sign and transmit an electronic signature of this Agreement (whether by facsimile, PDF or other mail transmission), which signature shall be binding on the party whose name is contained therein. Each party providing an electronic signature agrees to promptly execute and deliver to the other party an original signed Agreement upon request.

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IN WITNESS WHEREOF, San Bernardino County and the Contractor have each caused this Contract to be subscribed by its respective duly authorized officers, on its behalf.

FOR COUNTY USE ONLY
Approved as to Legal Form Reviewed for Contract Compliance Reviewed/Approved by Department

Suzanne Bryant, Deputy County Counsel Carrie Harmon, Director SAN BERNARDINO COUNTY City of Fontana
(Print or type name of corporation, company, contractor, etc.)

Dawn Rowe, Chair, Board of
Supervisors
(Authorized signature - sign in blue ink)
Dated:

Name

Matthew Ballantyne, City Manager
SIGNED AND CERTIFIED THAT A COPY OF THIS (Print or type name of person signing contract)

DOCUMENT HAS BEEN DELIVERED TO THE
CHAIRMAN OF THE BOARD Title City Manager
Lynna Monell
Clerk of the Board of Supervisors
San Bernardino County
(Print or Type)
By Dated:

Deputy
Address

8353 Sierra Avenue

Fontana, CA 92335
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Date Date Date

EXHIBIT A

OPERATIONAL BUDGET AND STAFFING PLAN
This Exhibit outlines the operational budget and staffing plan for the Path, funded by the HHIP grant. The details below represent the allocation and distribution of the funds and staffing structure as outlined in the contract.

1. Operational Budget

1.1 Grant Categories and Maximum Funding
The total HHIP funding available for the project is $500,000, which is allocated as follows:

Category Amount
Navigation Center $500,000

1.2 Administrative Costs
The total allocation for administrative costs is $0. All funding will be allocated to Direct Service Expenses.

1.3 Direct Client Assistance
The following outlines the cost and total number of units for each type of direct client assistance:

Category Unit Cost # of Individuals/Days Total
Emergency Shelter Bed Nights $92/night 30/180 $500,000

Subtotal Direct Assistance:
$500,000.00

1.4 Operating Expenses
The total bed fee cost includes the following operating expenses:
 Basic Needs and Transportation
 Medical Equipment
 Medical Supplies
 Maintenance and Janitorial
 Utilities/Communication
 Office Supplies
 Technology/CMS

1.5 Budget Summary

Category Amount Percentage
Direct Services Expenses $500,000 100%
Total Project Budget $500,00.00 100%

2. Staffing Plan

2.1 Key Personnel
The minimum staffing model for the Path under HHIP funding is outlined below.  Wellness Services Manager (0.2 FTE)
 Peer Supports (1.0 FTE)
 Case Managers/Housing Navigators (4.0 FTE)

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2.2 Training Requirements
The following training requirements are mandatory for all relevant personnel:
 Trauma-informed care by April 2025
 Cultural competency by April 2025
 HMIS data entry by April 2025
 CES protocols by April 2025
 Fair housing laws by April 2025
 Safety protocols by April 2025

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EXHIBIT B

1. SCOPE OF SERVICES
The Contractor will provide the following services to eligible clients, with each service aligned to meet the needs of those experiencing homelessness, as part of the Path program under the HHIP grant.

1.1 Eligible Program Components
Navigation Center
 Expand access for program members.
 Coordinate with other program components.

Health Services and Care Coordination
 Health screenings and assessments.
 Coordination with healthcare providers.
 Mental health service referrals.
 Substance use disorder treatment linkages.
 Medical respite care coordination.
 Medication management support.
 Healthcare enrollment assistance.
 Public health education.

Emergency Shelter Services
 Emergency bed night provision, including basic needs/utilities.  Crisis intervention.
 Basic needs assessment.
 Intake and screening.
 Temporary shelter placement.

Housing Navigation and Placement Services
 Conduct housing assessments for program participants.  Identify suitable housing opportunities.
 Facilitate housing applications and lease agreements.  Coordinate with property owners and managers.

Case Management
 Develop individualized housing stability plans.
 Provide ongoing support and monitoring.
 Connect clients to additional community resources.
 Document client progress and outcomes.

2. Performance Outcome Metrics
The Contractor will meet the following performance metrics to ensure the successful delivery of services.

These metrics are aligned with program goals and will guide the assessment of service effectiveness.

Priority Area 3: Service Delivery for MCP Members Experiencing Homelessness Engaged in Enhanced Care Management (ECM)

1. Members Receiving Housing-Related Community Supports:

A minimum of 27 members per year will receive housing-related community supports. A minimum of 30 people will receive shelter for up to 180 days over the term of the agreement.

2. Members Successfully Housed:

Of the minimum 27 members served, 14 will be successfully housed. A minimum of 30 people will 132

Revised3/5/25 Page 29 of 46

receive shelter for up to 180 days over the term of the agreement.

3. Members Maintaining Housing Stability:

Of the minimum 27 members served, 7 will maintain housing stability. A minimum of 30 people will receive shelter for up to 180 days over the term of the agreement.

Health Outcomes

1. Percentage of Clients Offered Connections to Primary Care:
90% of clients will be offered connections to primary care.

2. Number of Successful Healthcare Enrollments:
90% of eligible clients will successfully enroll in healthcare services.

3. Mental Health Service Engagement Rate for Individuals Experiencing Mental Health Challenges:
40% engagement rate for individuals with mental health challenges.

4. Substance Use Treatment Retention Rate for Individuals Experiencing Substance Use Disorder (SUD) Challenges:
40% retention rate in substance use treatment.

5. Reduction in Emergency Room Visits:

A 50% reduction in emergency room visits for program participants.

Emergency Shelter Metrics

1. Number of Emergency Bed Nights Provided:

A minimum of 7/daily bed nights will be provided.

2. Average Length of Shelter Stay:

The average length of shelter stay will be 180 days.

3. Exit to Permanent Housing Rate:
60% of clients exiting emergency shelter will transition to permanent housing.

4. Return to Shelter Rate:
30% of clients who exit shelter will return to shelter. (Note: This metric measures the rate at which individuals return to emergency shelter after exiting. A lower percentage indicates successful housing retention and effective case management.)

Housing Stability Metrics

1. Percentage of Clients Connected to Transitional and Permanent Housing:
60% of clients will be connected to either transitional or permanent housing.

2. Housing Retention Rate (6 Months):
80% of clients who transition to permanent housing will retain that housing for at least 6 months.

3. Average Time from Enrollment to Housing Placement:

The average time from program enrollment to housing placement will be 180 days.

3. Reporting Requirements
The Contractor shall provide the following reports to ensure transparency and measure program success:
 Quarterly Outcome Assessments: A comprehensive report on program outcomes based on the metrics provided in this Exhibit.
 Annual Program Evaluation: A detailed evaluation of the program's effectiveness and alignment with the goals outlined in the Scope of Services.
 Bed Fee Reporting Form: A monthly or quarterly report on the allocation and usage of bed fees, including occupancy rates and associated expenses.
 Client Demographic Data: Reports on client demographics, per HMIS (Homeless Management Information System) and CES (Coordinated Entry System) data records, to ensure proper tracking and monitoring of client services.
 Success Stories and Case Studies: Anecdotal reports highlighting successful client outcomes, including housing placements, health improvements, and other key milestones

4. Compliance Requirements
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The Contractor will adhere to the following compliance requirements to ensure proper documentation, quality assurance, and continuous improvement.

4.1 Program Documentation
 Maintain detailed client files.
 Document service delivery for each client.
 Maintain staff training records.
 Keep updated policies and procedures to reflect current practices and legal requirements.

4.2 Quality Assurance
 Conduct regular file audits to ensure accuracy and completeness of client records.  Collect and review client satisfaction surveys to assess service quality.  Perform periodic program outcome reviews to ensure the program is meeting its objectives.  Implement continuous quality improvement plans based on feedback and performance evaluations.

5. Timeline and Milestones
The following outlines the timeline and key milestones for the program's implementation. This section details the program’s phases and expected deliverables throughout the project duration.

5.1 Program Implementation

Program Implementation Tasks Start Date End Date
Month 1-2
• Staff hiring/activation and
training May 1, 2025 June 30, 2025
• System setup and protocols May 1, 2025 June 30, 2025
• Client engagement May 1, 2025 June 30, 2025
Month 3-24
• Full program implementation July 1, 2025 October 1, 2025 • Regular reporting and monitoring August 1, 2025 June 30, 2027 • Quarterly performance reviews August 1, 2025 June 30, 2027

5.2 Key Deliverables

 Monthly: HHIP Expenditure Reports
 Quarterly: Performance reports and Outcome assessments.  Annually: Program evaluation.
 Ongoing: Success stories and case studies.

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EXHIBIT C. 1

A. Homeless Management Information System (HMIS):

Contractor agrees to participate in the HMIS.

a. HMIS security policies and procedures and entering required Participant data on a regular and timely basis.
b. County retains the rights to the HMIS and case management software application used in the operations of this property. County will grant Contractor access to use the HMIS software for the term of this Agreement.
c. Contractor shall ensure that employees using HMIS for Participant intake capture all required data fields, as set forth in the County of San Bernardino CoC HMIS Policies and Procedures Manual, which is located on the County of San Bernardino website:
i. https://www.sbcounty.gov/uploads/sbchp/HMIS/resources/HMIS%20Policies%20Proced ures%20

d. Contractor must maintain a valid HMIS End User Agreement on file with the Contractor. Please contact the HMIS team through Office of Homeless Servic es at [email protected] .

B. PROGRAM REQUIREMENTS
Contractor shall adhere to the following:

B.1 Coordinated Entry System (CES)
a. The CES is a referral process that currently coordinates with the SBC CoC. All those participating with CES will need to apply to participate with the Homeless Management Information System (HMIS).
b. CONTRACTOR must notify the CES within 10 days of award of the HHIP funding by utilizing the online 211 Registration form located at: 211 Registration Form (wufoo.com) c. CONTRACTOR must work in collaboration with CES and SBC CoC to ensure the scr eening, assessment, and referral of HHIP participants are consistent with the eligible uses under HHIP. d. CONTRACTOR agrees to receive referrals from CES prior to providing services with the exception of individuals receiving emergency assistance. In such cases, immediate services can be provided, but individuals and/or families must be referred by Contractor to CES for assessment and prioritization within seventy -two (72) hours. CONTRACTOR understands that individuals and/or families may not be referred t o CONTRACTOR and may be referred to another service provider based upon the CES assessment.

B.2 Data Reporting
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a. CONTRACTOR will submit to the Office of Homeless Services (“OHS”) detailed reports containing information listed in EXHIBIT B – SCOPE OF WORK.
b. A report will be due forty -five (45) days after the date of expiration of this Contract or upon completion of Contract services. Reports should be submitted via File Transfer Program (FTP). c. CONTRACTOR shall submit additional reports as required by the State or COUNTY.

B.3 Monitoring
a. The COUNTY has the right to monitor the Contract during the Contract period to ensure accuracy of expenditure reports and compliance with applicable laws and regulations. b. CONTRACTOR agrees to furnish duly authorized representatives from the COUNTY and the State access to all financial records necessary to review or audit Contract services and to evaluate the cost, quality, and appropriateness of services.
c. If the State o r the COUNTY determines that all, or any part of, the payments made by the COUNTY to CONTRACTOR pursuant hereto are not eligible expenses in accordance with this Contract, said funds will be repaid by CONTRACTOR to the COUNTY. In the event such payment is not made on demand, the COUNTY may withhold future disbursements to CONTRACTOR until such disallowances are paid by CONTRACTOR. If disallowable expenses are not reimbursed within thirty (30) days of demand, the Contract will terminate without consultation at the COUNTY’s sole and absolute discretion.
d. If there is a conflict between a State audit of this Contract and a COUNTY audit of this Contract, the State audit shall take precedence.

B.4 Closeout
a. CONTRACTOR shall submit a closeout report including a narrative of the project outcomes, an inventory of all equipment and property acquired or improved by HHIP funds, and a final financial report, upon termination or completion of the services specified in this Contract. b. CONTRACTOR agrees to adhere to and comply with all the closeout procedures detailed below; including, but not limited to the following:

1. Disposition of program assets shall be determined by the COUNTY when the Contract is terminated.

2. CONTRACTOR shall submit within forty-five (45) days after the date of expiration of this Contract, all financial, performance, and other reports required by this Contract; and in addition, will cooperate in a program audit by the COUNTY.

3. Any unobligated/unexpended funds disbursed in advance to CONTRACTOR shall be returned to the COUNTY within thirty (30) days after the expiration of the Contract term, or in accordance with Section B.3.5.h, whichever occurs first. This obligation shall survive the termination of the Contract.

4. CONTRACTOR must account for any real and personal property acquired with HHIP funds.

5. Closeout will remain pending until all requirements are met and all outstanding issues with the CONTRACTOR have been resolved to the satisfaction of the COUNTY.

B.5 Homeless Management Information System
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The HMIS is a local database application used to collect client -level data and data on the provision of housing and services to homeless individuals and families and persons at risk of homelessness in the COUNTY. CONTRACTOR must ensure that data on all persons served are entered into the countywide HMIS. HMIS is managed and operated by OHS. HMIS technical and data standards are set forth in the Final 2024 HMIS Data Standards, on file with OHS. a. CONTRACTOR shall enter into a Memorandum of Understanding (MOU) with the HMIS Lead Agency where the CONTRACTOR agrees to share HMIS data with other HHIP funded agencies, unless prohibited by law.
b. CONTRACTOR is required to work with OHS staff to ensure the timely and accurate set-up of their HMIS program profile and to ensure the HMIS program profile is setup in a manner that accurately captures the data pertinent to CONTRACTOR’s program. CONTRACTOR’s program profile must be setup prior to CONTRACTOR submitting their first HHIP Disbursement Request form (see EXHIBIT E – HHIP DISBURSEMENT REQUEST).
c. CONTRACTOR shall submit a copy of HMIS reports (see EXHIBIT C.1 – HMIS CLIENT DATA REPORT SAMPLE) with the monthly expenditure reports. In the case of Domestic Violence service providers or other agencies prohibited from entering data into HMIS, documentation from the HMIS lead agency certifying that the CONTRACTOR is using a comparable database shall be delivered to the COUNTY. The contact information for the "HMIS Lead Agency" is:

Christopher Salazar, HMIS Lead
San Bernardino County
Office of Homeless Services
560 E. Hospitality Ln., Ste. 200
San Bernardino CA 92415-0044
[email protected]
Phone: 909-501-0610
d. CONTRACTOR must ensure all required data elements, as listed below, are entered into the HMIS system for HHIP participants, in a timely mann er, and is inputted no later than two (2) working days after program entry. Services rendered to clients must be entered into HMIS no later than two (2) working days from date of service(s). All clients who exit the program must have an updated status in HMIS within two (2) working days from actual exit date. Failure to meet the above data inputting requirements will constitute a violation of the terms and conditions of this Contract. CONTRACTOR will be notified by OHS, and if not rectified, the Contract m ay be terminated at the COUNTY’s sole and absolute discretion. e. In addition to the timely entry of HMIS data, CONTRACTOR is required to enter accurate and complete data. The COUNTY will ensure CONTRACTOR adheres to Data Quality Standards, as established by HUD, and data entry requirements, as set forth in the HMIS MOU and the OHS Policy Handbook. The Data Quality Standards assess the data quality and completeness of the following Data Elements entered:

1. Client Demographic Data
i. Name
ii. Social Security Number
iii. Date of Birth
iv. Race
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v. Ethnicity
vi. Gender
vii. Veteran Status

2. Universal Data
i. Disabling Condition
ii. Project Start Date
iii. Project Exit Date
iv. Destination
v. Relationship to Head of Household
vi. Client Location
vii. Housing Move-in Date
viii. Living Situation

3. Common Program Specific Data Elements
i. Income and Sources
ii. Non-Cash Benefits
iii. Health Insurance
iv. Disability Elements
v. Physical Disability
vi. Developmental Disability
vii. Chronic Health Condition
viii. HIV/AIDS
ix. Mental Health Problem
x. Substance Abuse
xi. Domestic Violence
xii. Contact
xiii. Date of Engagement
xiv. Bed-Night Date
xv. Housing Assessment Disposition
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4. Data Timeliness
i. Entry Timeliness
ii. Exit Timeliness
a. According to Data Quality Standards, CONTRACTOR is required to have a five -percent (5%) or less error rate to ensure data accuracy and less than a five -day lapse in timeliness for entry of data at time of client entry, services are rendered, and client exit. Any performance benchmarks not meeting these standards will be captured on CONT RACTOR’s HMIS Data Quality Report Sample (see EXHIBIT C.2 – HMIS DATA QUALITY REPORT). The report will be generated by CONTRACTOR and submitted month with expenditure reports. OHS will review reports and data deficiencies, if any, will be identified and discussed with CONTRACTOR to determine methods to remediate and/or improve data quality scores.
b. If CONTRACTOR continues to not meet data entry and data quality benchmarks, as established by HUD and set forth in the HMIS MOU and the OHS Policy Handbook, COUNTY may terminate Contract as set forth in Section I - CORRECTION OF PERFORMANCE DEFICIENCIES. c. CONTRACTOR agrees to provide the COUNTY and/or the State access to HMIS data collected and entered into HMIS, upon request, and to participate in any statewide data initiative as directed by the State including, but not limited to, a statewide data integration environment.

HHIP REPORTING REQUIREMENTS
C.1 Detailed reports
a. CONTRACTOR shall submit reports containing, at minimum, the following information:

1. Amount awarded to CONTRACTOR with activity(ies) identified.

2. Contract expenditures.

3. Unduplicated number of homeless persons and households served by HHIP funds.

4. Unduplicated number of persons and households at imminent risk of homelessness served by HHIP funds.

5. Number of instances of service.

6. Increases in capacity for new and existing programs.

7. Number of unsheltered homeless persons and homeless households becoming sheltered.

8. Number of homeless persons and homeless households entering permanent housing.

9. Number of homeless persons and households successfully exited from HHIP (i.e., in permanent housing) that remain in permanent housing 12 months post-exit from HHIP.

10. Number of persons and households at imminent risk of homelessness successfully exited from HHIP (i.e., in permanent housing) that remain in permanent housing 12 months post-exit from HHIP.

C.2 Reporting Breakdown by Activity
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a. CONTRACTOR will provide r eports with a breakdown for each activity (i.e. services, capital improvements, rental assistance, etc.) and program type (i.e. emergency shelter, rapid re - housing, outreach, etc.) for the supplemental reporting requirements listed above, when applicable. The same information will also be requested specifically for the following subpopulations, based on priorities defined by the U.S. Department of Housing and Urban Development (HUD):

1. Chronically homeless

2. Homeless veterans

3. Unaccompanied homeless youth

4. Homeless persons in families with children

Note: Counts by subpopulation will not be required in cases where that information is unavailable but is expected in cases where client information is entered in the Homeless Management Information System (HMIS).

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EXHIBIT C.2

HMIS CLIENT DATA REPORT SAMPLE

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EXHIBIT C.2

HMIS DATA QUALITY REPORT SAMPLE

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143

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EXHIBIT D

EXPENDITURE REPORT

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EXHIBIT E

DRAW REQUEST

145
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0111 Agenda Date: 3/25/2025
Agenda #: F. Category: Consent Calendar
FROM:

Administrative Services
SUBJECT:

Designation of Applicant's Agent Resolution (Cal OES 130) for Disaster Assistance RECOMMENDATION:

Approve Cal OES Form 130, Designation of Applicant’s Agent Resolution for Non-State Agencies, designating the City of Fontana’s authorized agents to provide required assurances and execute agreements for the purpose of obtaining disaster relief and emergency assistance for all open and future disasters for up to three (3) years following the date of approval.

COUNCIL GOALS:
· Improve public safety by minimizing impacts from disasters through emergency and disaster preparedness.
· Practice sound fiscal management by pursing grant opportunities. · Concentrate on Inter-governmental relations by pursuing financial participation from county, state and federal governments.

DISCUSSION:

In order to be eligible for potential assistance related to a proclaimed disaster, Cal OES Form 130, Designation of Applicant’s Agent Resolution for Non-State Agencies, is required to be approved before any disbursement of funding. The form may be effective for a specific disaster or for up to three (3) years.

Staff recommends the approval of the Cal OES Form 130 for a three-year term.

This action ensures the City remains prepared to receive disaster assistance funding without delay.

Without this designation, the City may face administrative obstacles that could impact its ability to secure timely financial support for response and recovery efforts.

The attached Cal OES Form 130 designates City of Fontana staff to act as the City’s authorized agents to provide required assurances and execute agreements necessary to obtain disaster assistance funding from the Federal Emergency Management Agency (FEMA) and the California Governor’s Office of Emergency Services (Cal OES).

FISCAL IMPACT:

There is no direct fiscal impact associated with the adoption of Cal OES Form 130. However, approval enables the City to seek disaster assistance through the State.

MOTION:

City of Fontana Printed on 3/19/2025Page 1 of 2
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146
File #: 25-0111 Agenda Date: 3/25/2025
Agenda #: F. Category: Consent Calendar
Approve staff recommendation.

City of Fontana Printed on 3/19/2025Page 2 of 2
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147

DESIGNATION OF APPLICANT'S AGENT RESOLUTION FOR NON-STATE AGENCIES

BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)

THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of A
uthorized Agent)
is hereby authorized to execute for and on behalf of the , (Name of Applicant)
a public ent
ity esta
blished under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining federal financial assistance for any existing or future grant program, including, but not limited to any of the following:
- Federally declared Disaster (DR), Fire Mitigation Assistance Grant (FMAG), California State Only Disaster (CDAA), Immediate Services Program (ISP), Hazard Mitigation Grant Program (HMGP), Building Resilient Infrastructure and Communities (BRIC), Legislative Pre-Disaster Mitigation Program (LPDM) , under
- Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.
- Flood Mitigation Assistance Program (FMA), under Section 1366 of the National Flood Insurance Act of 1968.
- National Earthquake Hazards Reduction Program (NEHRP) 42 U.S. Code 7704 (b) ((2) (A) (ix) and 42 U.S. Code 7704 (b) (2) (B) National Earthquake Hazards Reduction Program, and also The Consolidated Appropriations Act, 2018, Div. F, Department of Homeland Security Appropriations Act, 2018, Pub. L. No. 115-141 - California Early Earthquake Warning (CEEW) under C
A Gov Code – Gov, Title 2,
Div. 1, Chapter 7, Article 5, S
ections 8587.8, 8587.11, 8587.12
That the , a public entity established under the
(Name of Applicant)
laws of the State of California, hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state
disaster assistance the assurances and agreements required.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
Cal OES ID No: _____________
OES-FPD-130 Rev. 10-2022 Page 1 of 4 148
Please check the appropriate box below
This is a universal resolution a
nd is effective for all open and future
disasters/grants declared up to three (3) years following the date of approval.

This is a disa
ster/grant specific resolution and is effective for only disaster/grant number(s):

Passed and approved this __day of , 20
(Name and Title of Governing Bo
dy Representative)
(Name and Title of Governing Bod
y Representative)
(Name and Title of Governing Bo
dy Representative)

CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the a bove is a true and
(Name of Applicant)
correct copy of a resolution passed and approved by the (Governing Body)
of the on the day of , 20 .
(Name of Applicant)
(Signature) (Title)

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
OES-FPD-130 Rev. 10-2022 Page 2 of 4 149
Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted resolution is older than three (3) years from the last date of approval, is invalid, or has not been submitted.

When completing the Cal OES F
orm 130, Applicants should fill in the blanks on pages 1 and 2. The blanks are to be filled in as follows:

Resolution Section:

Governing Body: This is the group resp
onsible for appointing and approving the
Authorized Agents.

Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc.

Name of Applicant: The public entity establis
hed under the laws of the
State of California.

Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.

Authorized Agent: These are the individuals th
at are authorized by the Governing Body
to engage with the Federal Emergency Management Agency and the California Governor’s Office of Emergency Services regarding grants for which they have applied.

There are two ways of completing this section:

1. Titles Only: The titles of the Authorized Agents should be entered here, not their names. This allows the document to remain valid if an Authorized Agent leaves the position and is replaced by another individual. If “Titles Only” is the chosen method, this document must be accompanied by either a cover letter naming the Authorized Agents by name and title, or the Cal OES AA Names document. The supporting document can be completed by any authorized person within the Agency (e.g., administrative assistant, the Authorized Agent, secretary to the Director). It d
oes not require the Governing Body’s signature.

2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document, or their title changes.

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
OES-FPD-130 Rev. 10-2022 Page 3 of 4 150
Checking Universal or Disaster-Specific Box: A Universal resolution is effective for all past disasters and for those declared up to three (3) years following the date of approval. Upon expiration it is no longer effective for new disasters, but it remains in effect for disasters declared prior to expiration. It remains effective until the disaster goes through closeout unless it is superseded by a newer resolution.

Governing Body Representative: These are the names and titles of the approving Board Members.

Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents. A minimum of three (3) approving board members must be listed. If less than three are present, meeting minutes must be attached in order to verify a quorum was met.

Certification Section:

Name and Title: This is the individual in attendance who recorded the creation and approval of this resolution.

Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member. If a person holds two positions (such as City Manager and Secretary to the Board) and the City Manager is to be listed as an Authorized Agent, then that person could sign the document as Secretary to the Board (not City Manager) to eliminate “Self-Certification.”

STATE OF CALIFORNIA

CALIFORNIA GOVERNOR'S OFFICE OF EMERGENCY SERVICES

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

NON-STATE AGENCIES
OES-FPD-130 (Rev. 10-2022)

RECOVERY DIRECTORATE

FINANCIAL PROCESSING DIVISION
OES-FPD-130 Rev. 10-2022 Page 4 of 4 151
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0113 Agenda Date: 3/25/2025
Agenda #: G. Category: Consent Calendar
FROM:

Engineering
SUBJECT:

Approve award and authorize a Agreement with JK Mosaic, LLC for Outdoor Public Artwork Services at the Downtown Parking Structure (DE-24-145-SQ)
RECOMMENDATION:

1. Award and authorize the City Manager to execute a Agreement with JK Mosaic, LLC for Outdoor Public Artwork Services at the Downtown Parking Structure in the amount of $134,353.41.

2. Approve and authorize the City Manager to execute any future amendments to the Agreement.

COUNCIL GOALS:
· To operate in a businesslike manner by creating a memorable customer experience with every interaction.
· To promote economic development by pursuing business attraction, retention, and expansion. · To invest in the City’s infrastructure (streets, sewers, parks, etc.) by improving aesthetics of the community.

DISCUSSION:

As part of its Downtown revitalization objective, the City is committed to enhancing public spaces through the integration of public art. As part of this initiative, the City issued a Request for Qualification (RFQ) in February and June 2024, seeking qualified artists or firms to provide outdoor public artwork services. The RFQ aimed to secure artwork that aligns with the City’svision, reflects the community’s cultural identity, and enhances the aesthetic appeal of public spaces.

On February 8, 2024, the Request for Qualification was initially posted, receiving two (2) submissions. Due to the limited response, the RFQ was reposted on June 6, 2024, resulting in five (5) submissions. After evaluating these submissions, two (2) artists were interviewed; however, their qualifications did not fully align with the objectives of the project and the City’s procurement process.

Following the reposting, the City received a total of four (4) additional proposals. After thorough evaluations were conducted, JK Mosaic, LLC was identified as the most qualified entity based on artistic merit, experience, project feasibility, and alignment with the City’s objectives.

The scope of work under this agreement includes concept development, the fabrication of mosaic City of Fontana Printed on 3/19/2025Page 1 of 2
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File #: 25-0113 Agenda Date: 3/25/2025
Agenda #: G. Category: Consent Calendar
The scope of work under this agreement includes concept development, the fabrication of mosaic glasswork, and the installation of the artwork at the City’sDowntown Parking Structure. The contract amount for these services will not exceed $134,353.41 and is funded by Assemblymember Gomez Reyes’ Downtown Revitalization Grant. The work is anticipated to be completed by May 2026.

FISCAL IMPACT:

The fiscal impact associated with the approval of this item is $134,353.41 and is included under grant project #37600075-301-A-8113.

MOTION:

Approve staff recommendation.

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CITY OF FONTANA

PROFESSIONAL SERVICES AGREEMENT
(DE-24-145-SQ)

This Agreement is made and entered into as of xxxx, 2025 by and between the City of Fontana, a public agency organized and operating under the laws of the State of California with its principal place of business at 8353 Sierra Avenue, Fontana, California 92335 (“City”), and JK Mosaic, LLC, a Limited Liability Corporation with its principal place of business at 261 Porter Creek Road, Elma, Washington 98541 (hereinafter referred to as “Consultant”). City and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.

RECITALS
A. City is a public agency of the State of California and is in need of professional services for the following project:

Outdoor Public Artwork Services (hereinafter referred to as “the Project”).

B. Consultant is duly licensed and has the necessary qualifications to provide such services.

C. The Parties desire by this Agreement to establish the terms for City to retain Consultant to provide the services described herein.

AGREEMENT
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. Services.

Consultant shall provide the City with the services described in the Scope of Services attached hereto as Exhibit “A.”

2. Compensation.
a. Subject to paragraph 2(b) below, the City shall pay for such services in accordance with the Schedule of Charges set forth in Exhibit “B.” b. In no event shall the total amount paid for services rendered by Consultant under this Agreement exceed the sum of $134,353.41. This amount is to cover all printing and related costs, and the City will not pay any additional fees for printing expenses. Periodic payments shall be made within 30 days of receipt of an invoice which includes a detailed description of the work performed.

3. Additional Work.

If changes in the work seem merited by Consultant or the City, and informal consultations with the other party indicate that a change is warranted, it shall be processed in the following manner: a letter outlining the changes shall be forwarded to the City by Consultant with a statement of estimated changes in fee or time schedule. An amendment to this Agreement shall be prepared by the City and executed by both Parties before performance of such services, or 154

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the City will not be required to pay for the changes in the scope of work. Such amendment shall not render ineffective or invalidate unaffected portions of this Agreement.

4. Maintenance of Records.

Books, documents, papers, accounting records, and other evidence pertaining to costs incurred shall be maintained by Consultant and made available at all reasonable times during the contract period and for four (4) years from the date of final payment under the contract for inspection by City.

5. Term.

The term of this Agreement shall be from March 25, 2025 to May 31, 2025, unless earlier terminated as provided herein. The Parties may, by mutual, written consent, extend the term of this Agreement if necessary to complete the Project. Consultant shall perform its services in a prompt and timely manner within the term of this Agreement and shall commence performance upon receipt of written notice from the City to proceed (“Notice to Proceed”). The Notice to Proceed shall set forth the date of commencement of work.

6. Delays in Performance.
a. Neither City nor Consultant shall be considered in default of this Agreement for delays in performance caused by circumstances beyond the reasonable control of the non- performing party. For purposes of this Agreement, such circumstances include but are not limited to, abnormal weather conditions; floods; earthquakes; fire; epidemics; war; riots and other civil disturbances; strikes, lockouts, work slowdowns, and other labor disturbances; sabotage or judicial restraint.
b. Should such circumstances occur, the non-performing party shall, within a reasonable time of being prevented from performing, give written notice to the other party describing the circumstances preventing continued performance and the efforts being made to resume performance of this Agreement.

7. Compliance with Law.
a. Consultant shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local government, including Cal/OSHA requirements. b. If required, Consultant shall assist the City, as requested, in obtaining and maintaining all permits required of Consultant by federal, state and local regulatory agencies. c. If applicable, Consultant is responsible for all costs of clean up and/ or removal of hazardous and toxic substances spilled as a result of his or her services or operations performed under this Agreement.

8. Standard of Care
Consultant’s services will be performed in accordance with generally accepted professional practices and principles and in a manner consistent with the level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions. 155

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9. Assignment and Subconsultant
Consultant shall not assign, sublet, or transfer this Agreement or any rights under or interest in this Agreement without the written consent of the City, which may be withheld for any reason. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement. Nothing contained herein shall prevent Consultant from employing independent associates, and subconsultants as Consultant may deem appropriate to assist in the performance of services hereunder.

10. Independent Contractor
Consultant is retained as an independent contractor and is not an employee of City. No employee or agent of Consultant shall become an employee of City. The work to be performed shall be in accordance with the work described in this Agreement, subject to such directions and amendments from City as herein provided.

11. Insurance. Consultant shall not commence work for the City until it has provided evidence satisfactory to the City it has secured all insurance required under this section. In addition, Consultant shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section. a. Commercial General Liability
(i) The Consultant shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City. (ii) Coverage for Commercial General Liability insurance shall be at least as broad as the following:
(1) Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent. (iii) Commercial General Liability Insurance must include coverage for the following:
(1) Bodily Injury and Property Damage
(2) Personal Injury/Advertising Injury
(3) Premises/Operations Liability
(4) Products/Completed Operations Liability
(5) Aggregate Limits that Apply per Project
(6) Explosion, Collapse and Underground (UCX) exclusion deleted
(7) Contractual Liability with respect to this Agreement (8) Property Damage
(9) Independent Contractors Coverage
(iv) The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
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(v) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage. (vi) The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured. b. Automobile Liability
(i) At all times during the performance of the work under this Agreement, the Consultant shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
(ii) Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
(iii) The policy shall give City, its officials, officers, employees, agents and City designated volunteers additional insured status. (iv) Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.
c. Workers’ Compensation/Employer’s Liability
(i) Consultant certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.

(ii) To the extent Consultant has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, the Consultant shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Consultant shall require all subconsultants to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this section.

d. Professional Liability (Errors and Omissions)
At all times during the performance of the work under this Agreement the Consultant shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein.

This insurance shall be endorsed to include contractual liability applicable to this Agreement and shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant. “Covered Professional Services” as designated in the policy must 157

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specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. e. Minimum Policy Limits Required
(i) The following insurance limits are required for the Agreement:

Combined Single Limit
Commercial General Liability $1,000,000 per occurrence/ $2,000,000 aggregate for bodily injury, personal injury, and property
damage

Automobile Liability $1,000,000 combined single limit Employer’s Liability $1,000,000 per accident or disease Professional Liability $1,000,000 per claim and aggregate (errors and omissions)

(ii) Defense costs shall be payable in addition to the limits. (iii) Requirements of specific coverage or limits contained in this section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance. Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement. f. Evidence Required
Prior to execution of the Agreement, the Consultant shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
g. Policy Provisions Required
(i) Consultant shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that the Consultant shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, the Consultant shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.
(ii) The Commercial General Liability Policy and Automobile Policy shall each contain a provision stating that Consultant’s policy is primary insurance and that any 158

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insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.
(iii) The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Consultant shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Consultant shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
(iv) All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to provide a waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Consultant or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Consultant hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its subconsultants.
(v) The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability.

Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit the Consultant’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
h. Qualifying Insurers
(i) All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
(1) Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
i. Additional Insurance Provisions
(i) The foregoing requirements as to the types and limits of insurance coverage to be maintained by Consultant, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Consultant pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
(ii) If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, City may cancel this Agreement.
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(iii) The City may require the Consultant to provide complete copies of all insurance policies in effect for the duration of the Project. (iv) Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
j. Subconsultant Insurance Requirements. Consultant shall not allow any subcontractors or subconsultants to commence work on any subcontract until they have provided evidence satisfactory to the City that they have secured all insurance required under this section.

Policies of commercial general liability insurance provided by such subcontractors or subconsultants shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Consultant, City may approve different scopes or minimum limits of insurance for particular subcontractors or subconsultants.

12. Indemnification .
a. To the fullest extent permitted by law, Consultant shall defend (with counsel of City’s choosing), indemnify and hold the City, its officials, officers, employees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death, in any manner arising out of, pertaining to, or incident to any acts, errors or omissions, or willful misconduct of Consultant, its officials, officers, employees, subcontractors, consultants or agents in connection with the performance of the Consultant’s services, the Project or this Agreement, including without limitation the payment of all damages, expert witness fees and attorney’s fees and other related costs and expenses. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by Consultant, the City, its officials, officers, employees, agents, or volunteers.

b. If Consultant’s obligation to defend, indemnify, and/or hold harmless arises out of Consultant’s performance of “design professional” services (as that term is defined under Civil Code section 2782.8), then, and only to the extent required by Civil Code section 2782.8, which is fully incorporated herein, Consultant’s indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, and, upon Consultant obtaining a final adjudication by a court of competent jurisdiction, Consultant’s liability for such claim, including the cost to defend, shall not exceed the Consultant’s proportionate percentage of fault.

13. California Labor Code Requirements.
a. Consultant is aware of the requirements of California Labor Code Sections 1720 et seq. and 1770 et seq., which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects (“Prevailing Wage Laws”). 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, Consultant agrees to fully comply with such Prevailing Wage Laws. Consultant shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. It shall be mandatory upon the Consultant and all subconsultants to comply with all California Labor Code provisions, which 160

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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. b. If the services are being performed as part of an applicable “public works” or “maintenance” project, then pursuant to Labor Code Sections 1725.5 and 1771.1, the Consultant and all subconsultants performing such services must be registered with the Department of Industrial Relations. Consultant shall maintain registration for the duration of the Project and require the same of any subconsultants, as applicable. 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. c. This Agreement may also be subject to compliance monitoring and enforcement by the Department of Industrial Relations. It shall be Consultant’s sole responsibility to comply with all applicable registration and labor compliance requirements. Any stop orders issued by the Department of Industrial Relations against Consultant or any subcontractor that affect Consultant’s performance of services, including any delay, shall be Consultant’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Consultant caused delay and shall not be compensable by the City. Consultant 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 Consultant or any subcontractor.

14. Verification of Employment Eligibility.

By executing this Agreement, Consultant verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subconsultants and sub-subconsultants to comply with the same.

15. Reserved.

16. Laws and Venue.

This Agreement shall be interpreted in accordance with the laws of the State of California.

If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Bernardino, State of California. 17 Termination or Abandonment
a. City has the right to terminate or abandon any portion or all of the work under this Agreement by giving ten (10) calendar days written notice to Consultant. In such event, City shall be immediately given title and possession to all original field notes, drawings and specifications, written reports and other documents produced or developed for that portion of the work completed and/or being abandoned. City shall pay Consultant the reasonable value of services rendered for any portion of the work completed prior to termination. If said termination 161

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occurs prior to completion of any task for the Project for which a payment request has not been received, the charge for services performed during such task shall be the reasonable value of such services, based on an amount mutually agreed to by City and Consultant of the portion of such task completed but not paid prior to said termination. City shall not be liable for any costs other than the charges or portions thereof which are specified herein. Consultant shall not be entitled to payment for unperformed services, and shall not be entitled to damages or compensation for termination of work.
b. Consultant may terminate its obligation to provide further services under this Agreement upon thirty (30) calendar days’ written notice to City only in the event of substantial failure by City to perform in accordance with the terms of this Agreement through no fault of Consultant.
18 Documents. Except as otherwise provided in “Termination or Abandonment,” above, all original field notes, written reports, Drawings and Specifications and other documents, produced or developed for the Project shall, upon payment in full for the services described in this Agreement, be furnished to and become the property of the City.

19. Organization
Consultant shall assign Jennifer Kuhns as Project Manager. The Project Manager shall not be removed from the Project or reassigned without the prior written consent of the City.

20. Limitation of Agreement.

This Agreement is limited to and includes only the work included in the Project described above.

21. Notice

Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, certified mail, return receipt requested, postage prepaid, addressed to:

CITY:

City of Fontana
8353 Sierra Avenue
Fontana, California 92335
Attn: Mae Lynn Alcantara, Engineering Dept.

CONSULTANT:

JK Mosaic, LLC
261 Porter Creek Road
Elma, Washington 98541
Attn: Jennifer Kuhns

and shall be effective upon receipt thereof.

22. Third Party Rights
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Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the City and the Consultant.

23. Equal Opportunity Employment.

Consultant represents that it is an equal opportunity employer and that it shall not discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, sex, age or other interests protected by the State or Federal Constitutions. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

24. Entire Agreement
This Agreement, with its exhibits, represents the entire understanding of City and Consultant as to those matters contained herein, and supersedes and cancels any prior or contemporaneous oral or written understanding, promises or representations with respect to those matters covered hereunder. Each Party acknowledges that no representations, inducements, promises or agreements have been made by any person which are not incorporated herein, and that any other agreements shall be void. This Agreement may not be modified or altered except in writing signed by both Parties hereto. This is an integrated Agreement.

25. Severability
The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the remaining provisions unenforceable, invalid or illegal.

26. Successors and Assigns
This Agreement shall be binding upon and shall inure to the benefit of the successors in interest, executors, administrators and assigns of each Party to this Agreement. However, Consultant shall not assign or transfer by operation of law or otherwise any or all of its rights, burdens, duties or obligations without the prior written consent of City. Any attempted assignment without such consent shall be invalid and void.

27. Non-Waiver
None of the provisions of this Agreement shall be considered waived by either Party, unless such waiver is specifically specified in writing.

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

29. City’s Right to Employ Other Consultants
City reserves its right to employ other consultants, including engineers, in connection with this Project or other projects.

30. Prohibited Interests
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Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no director, official, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

[SIGNATURES ON FOLLOWING PAGE]
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SIGNATURE PAGE FOR PROFESSIONAL SERVICES AGREEMENT

CITY OF FONTANA

By:

Matthew C. Ballantyne
City Manager

VENDOR NAME

By:

Jennifer Kuhns
Mosaic Artist

Attest:

By:

Germaine McClellan Key
City Clerk

By:

Phillip Burum
Deputy City Manager

Approved as to form:

Best Best & Krieger LLP
City Attorney

_____________________________
Gia Kim
Public Works Director / City Engineer

IN COMPLIANCE WITH PURCHASING AND CONTRACT ADMINISTRATION POLICIES/PROCEDURES

___________________________________
Jessica Brown
Chief Financial Officer

Sid Lambert
Purchasing Manager

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EXHIBIT A
Scope of Services
-Attached Behind This Page-

166

ESTIMATE
JK Mosaic, LLC
261 Porter Creek Road
261 Porter Creek Rd.

Elma, Washington 98541
United States
Phone: 3604828024
Mobile: 360-870-0356
www.jkmosaic.com

BILL TO
City of Fontana
Estimate Number: 554
Estimate Date: January 9, 2025
Valid Until: February 8, 2025
Estimate Total
(USD):
$134,353.41
Items Quantity Price Amount
Labor
Artist and assistant labor
220.2 $300.00 $66,060.00
Glass
Glass from NW Art Glass purchase
225 $50.00 $11,250.00
Materials
Mesh, thinset, grout, etc.
225 $50.00 $11,250.00
Travel
Estimated travel expenses
1 $2,000.00 $2,000.00
Professional installation
Cost for custom installation averages $2500/day for
a 2-person crew
5 $2,500.00 $12,500.00
Design Fee
Artist fee and scaling/printing of template
1 $10,000.00 $10,000.00
Delivery
Transportation of items/crating/shipping
1 $1,500.00 $1,500.00
Contingency
approximately 10%
1 $12,000.00 $12,000.00

Page 1 of 2 ends

Fontana City CouncilMarch 25, 2025

Fontana City Council
March 25, 2025